UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
WASHINGTON, D.C. 20549 |
FORM 20-F |
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file number: 000-50492 |
LiveReel Media Corporation |
(Exact name of Registrant as specified in its charter) |
Large accelerated filer [ ] | Accelerated filer [ ] | Non-accelerated filer [X] |
US GAAP [ ] | International Financial Reporting Standards as issued by the International Accounting Standards Board[ ] | Other [X] |
Page No. | |
Forward-Looking Statements | 5 |
Foreign Private Issuer Status and Currencies and Exchange Rates | 5 |
Part I | |
Item 1. Identity of Directors, Senior Management and Advisors | 6 |
Item 2. Offer Statistics and Expected Timetable | 6 |
Item 3. Key Information | 6 |
Item 4. Information on the Company | |
Item 5. Operating and Financial Review and Prospects | |
Item 6. Directors, Senior Management and Employees | |
Item 7. Major Shareholders and Related Party Transactions | |
Item 8. Financial Information | |
Item 9. The Offer and Listing | |
Item 10. Additional Information | |
Item 11. Quantitative and Qualitative Disclosures About Market Risk | |
Item 12. Description of Securities Other Than Equity Securities | |
Part II | |
Item 13. Defaults, Dividend Arrearages and Delinquencies | |
Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds | |
Item 15. Controls and Procedures | |
Item 16. Audit Committee, Code of Ethics, and Principal Accountant's Fees, and Services | |
Part III | |
Item 17. Financial Statements | |
Item 18. Financial Statements | |
Item 19. Exhibits | |
Signature |
- Future earnings and cash flow, |
- Expansion and growth of our business and operations, and |
- Our prospective operational and financial information. |
- | Fluctuations in prices of our products and services, | |
- | Potential acquisitions and other business opportunities, |
- | General economic, market and business conditions, and | |
- | Other risks and factors beyond our control. |
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Revenue | $ | - | $ | - | $ | - | $ | 4,901 | $ | 40,012 | ||||||||||
Net Loss | (161,139 | ) | (250,554 | ) | (232,527 | ) | (916,260 | ) | (788,811 | ) | ||||||||||
Net loss per Share (1) | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.07 | ) | (0.06 | ) | ||||||||||
Working Capital (Deficit) | (208,191 | ) | (64,844 | ) | 125,648 | 319,175 | 1,201,854 | |||||||||||||
Total Assets | 37,217 | 77,156 | 183,329 | 410,482 | 1,386,399 | |||||||||||||||
Capital Stock (2) | 7,880,660 | 7,880,660 | 6,728,846 | 6,656,265 | 6,656,265 | |||||||||||||||
Warrants (2) | - | - | 1,146,081 | 1,146,081 | 1,146,081 | |||||||||||||||
Shareholders' Equity (Deficit) | (208,191 | ) | (64,844 | ) | 125,648 | 319,175 | 1,201,854 | |||||||||||||
Weighted Average Number of Shares Outstanding | 23,521,744 | 21,227,300 | 14,696,744 | 13,721,744 | 13,721,744 | |||||||||||||||
(1) The inclusion of the Company’s stock options and share purchase warrants in the computation of diluted loss per share would have an anti-dilutive effect on loss per share and are therefore excluded from the computation. Consequently, there is no difference between basic loss per share and diluted loss per share. | ||||||||||||||||||||
(2) During the fiscal 2006, 6,193,600 warrants were issued in connection with various private placements and the acquisition of certain theatrical film properties. During the 2010 fiscal year, 3,900,000 options were exercised for gross proceeds of US$39,000. During fiscal 2011, 5,900,000 warrants were excercised at US $0.01 per warrant for gross proceeds of US$59,000 and 293,600 warrants expired during the fiscal 2011 year. |
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Revenue | $ | - | $ | - | $ | - | $ | 4,901 | $ | 40,012 | ||||||||||
Net Loss | (161,139 | ) | (250,554 | ) | (232,527 | ) | (916,260 | ) | (788,811 | ) | ||||||||||
Comprehensive Loss | (161,139 | ) | (250,554 | ) | (232,527 | ) | (916,260 | ) | (788,811 | ) | ||||||||||
Loss per Share | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.07 | ) | (0.06 | ) | ||||||||||
Total Assets | 37,217 | 77,156 | 183,329 | 410,482 | 1,386,399 | |||||||||||||||
Warrants (1) | - | - | 1,146,081 | 1,146,081 | 1,146,081 | |||||||||||||||
Shareholders' Equity (Deficit) | (208,191 | ) | (64,844 | ) | 125,648 | 319,175 | 1,201,854 | |||||||||||||
(1) During the fiscal 2006, 6,193,600 warrants were issued in connection with various private placements and the acquisition of certain theatrical film properties. During the 2010 fiscal year, 3,900,000 options were exercised for gross proceeds of US$39,000. | ||||||||||||||||||||
During the fiscal 2011 year, 5,900,000 warrants were exercised at US$0.01 per warrant for gross proceeds of US$59,000 and 293,600 warrants expiered during fiscal 2011 year. |
2014 | 2013 | 2012 | ||||||||||
Revenue | $ | - | $ | - | $ | - | ||||||
Net Loss | (125,820 | ) | (19,685 | ) | (161,139 | ) | ||||||
Net Loss per Share | (0.01 | ) | (0.00 | ) | (0.01 | ) | ||||||
Working Capital Deficit | (357,991 | ) | (232,171 | ) | (208,191 | ) | ||||||
Total Assets | 1,250 | 4,059 | 37,217 | |||||||||
Capital Stock | 7,880,660 | 7,880,660 | 7,880,660 | |||||||||
Contributed Surplus | 361,196 | 347,699 | 347,699 | |||||||||
Equity Component of Debt | - | 13,497 | 17,792 | |||||||||
Accumulated Deficit | (8,599,847 | ) | (8,474,027 | ) | (8,454,342 | ) | ||||||
Shareholders' Deficiency | (357,991 | ) | (232,171 | ) | (208,191 | ) | ||||||
Weighted Average Number of Shares Outstanding | 23,521,744 | 23,521,744 | 23,521,744 |
2014 | 2013 | 2012 | ||||||||||
Revenue | $ | - | $ | - | $ | - | ||||||
Net Loss | (125,820 | ) | (19,685 | ) | (161,139 | ) | ||||||
Comprehensive Loss | (125,820 | ) | (19,685 | ) | (161,139 | ) | ||||||
Loss per Share | (0.01 | ) | (0.00 | ) | (0.01 | ) | ||||||
Total Assets | 1,250 | 4,059 | 37,217 | |||||||||
Accumulated Deficit | (8,599,847 | ) | (8,474,027 | ) | (8,454,342 | ) | ||||||
Shareholders' Deficiency | (357,991 | ) | (232,171 | ) | (208,191 | ) |
2012 | September | August | July | June | May | April | |||||||||||||
High for period | $ | 1.0299 | $ | 1.0139 | $ | 0.9986 | $ | 0.9825 | $ | 1.0164 | $ | 1.0197 | |||||||
Low for period | $ | 1.0099 | $ | 0.9938 | $ | 0.9790 | $ | 0.9599 | $ | 0.9663 | $ | 0.9961 |
2014 | September | August | July | June | May | April | |||||||||||||
High for period | $ | 0.9202 | $ | 0.9211 | $ | 0.9404 | $ | 0.9367 | $ | 0.9228 | $ | 0.9172 | |||||||
Low for period | $ | 0.8922 | $ | 0.9106 | $ | 0.9167 | $ | 0.9143 | $ | 0.9064 | $ | 0.9056 |
Year Ended June 30, | |||||
2012 | 2011 | 2010 | 2009 | 2008 | |
Average for the year | 0.9963 | 1.0013 | 1.0555 | 1.1662 | 1.0104 |
Year Ended June 30, | |||||
2014 | 2013 | 2012 | 2011 | 2010 | |
Average for the year | 0.9367 | 0.9735 | 0.9963 | 1.0013 | 1.0555 |
Year | Year | Year | ||||||||||
Ended | Ended | Ended | ||||||||||
June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenue | $ | - | $ | - | $ | - | ||||||
Expenses | (125,820 | ) | (128,154 | ) | (161,139 | ) | ||||||
Debt forgiveness | - | 75,929 | - | |||||||||
Write-down of production advances | - | 32,540 | - | |||||||||
Net loss for year | (125,820 | ) | (19,685 | ) | (161,139 | ) | ||||||
Accumulated Deficit at end of period | $ | (8,599,847 | ) | $ | (8,474,027 | ) | $ | (8,454,342 | ) |
1. | On May 28, 2014, Paul Sparkes was appointed a director of the Company following the resignation of Jeff Kehoe, who resigned on March 18, 2014. The Board currently consists of three directors, Henry Kneis, Michael Wekerle and Paul Sparkes. |
2. | On May 28, 2014, the Company entered into an amending agreement to its unsecured loan agreement with Difference Capital dated December 19, 2012 and its unsecured loan agreement with Difference Capital dated March 22, 2013, whereby the terms of such loans were amended to provide that the maturity date shall be three (3) banking days from receipt of written demand from Difference Capital. |
1. | On September 17, 2012, the Company entered into an unsecured loan agreement with Billidan Family Trust, a related party to the Company's largest shareholder, in the aggregate principal amount of $25,000. The loan has a term of 12 months maturing September 17, 2013, accrues interest at 12% per annum until maturity, and may be prepaid at any time upon payment of a penalty of $2,000. This note and all accrued interest was repaid in connection with the change of control of the Company and additional debt financing of the Company on March 22, 2013. |
2. | On December 19, 2012, the Company entered into an unsecured loan agreement with Difference Capital, an arms-length party at the time of entering the loan, in the aggregate principal amount of $50,000. The loan has a term of 12 months maturing December 19, 2013, bears interest at 12% per annum until maturity, and may be prepaid at any time without notice or penalty. By loan amending agreement dated May 28, 2014, the term of this unsecured loan was amended to provide that the maturity date is three (3) banking days from written demand from Difference Capital. |
3. | On March 22, 2013, the Company entered into an additional unsecured loan agreement in the principal amount of $150,000 with Difference Capital. The loan has a term of 12 months, bears interest at 12% per annum, payable on maturity or termination, as the case may be, and may be repaid in advance without penalty. By loan amending agreement dated May 28, 2014, the term of this unsecured loan was amended to provide that the maturity date is three (3) banking days from written demand from Difference Capital. |
Year ended June 30 | 2012 | 2011 | 2010 | |||||||||
in CDN $ | in CDN $ | in CDN $ | ||||||||||
Income | - | - | - | |||||||||
Expenses | (161,139 | ) | (250,554 | ) | (232,527 | ) | ||||||
Net loss for year | (161,139 | ) | (250,554 | ) | (232,527 | ) | ||||||
Deficit at end of year | (8,454,342 | ) | (8,293,203 | ) | (8,042,649 | ) |
4. | Following the change in control of the Company on March 22, 2013, the Company announced the appointment of Michael Wekerle and Henry Kneis who joined the board of directors following the resignation of Janice Barone and Diana van Vliet. In addition, Mr. Jason Meretsky resigned as Chief Executive Officer and was replaced by Michael Wekerle, and Steve Wilson, the Corporation’s Chief Financial Officer resigned and was replaced by Henry Kneis. |
5. | On March 22, 2013, Difference Capital entered into five separate stock purchase agreements with arms-length third parties whereby it acquired 20,648,150 common shares in the capital of the Company, representing approximately 87.8% of the issued and outstanding voting securities of the Company on a fully-diluted basis. |
6. | On June 10, 2013, the Company announced the appointment of Jeff Kehoe as a director of the Company following the resignation of Jason Meretsky. |
1. | On July 21, 2011 the Company entered into unsecured loan agreements with its largest shareholder, Mad Hatter Investments Inc., and another related entity, 1057111 Ontario Limited, in the aggregate principal amount of $50,000. The loans |
2. | On November |
Year | Year | Year | Year | Year | ||||||||||||||||
Ended | Ended | Ended | Ended | Ended | ||||||||||||||||
June 30, | June 30, | June 30, | June 30, | June 30, | ||||||||||||||||
2012 | 2011 | 2010 | 2009 | 2008 | ||||||||||||||||
Loss on investments | $ | - | $ | - | $ | - | $ | 854,858 | $ | - | ||||||||||
Consulting expenses | 52,500 | 165,000 | 92,500 | 60,000 | 60,000 | |||||||||||||||
Professional fees | 56,395 | 40,410 | 48,883 | 59,354 | 60,645 | |||||||||||||||
Office and general | 16,325 | 15,786 | 44,547 | 75,911 | 115,599 | |||||||||||||||
Foreign exchange loss (gain) | 312 | 8,220 | 33,851 | (175,838 | ) | 70,290 | ||||||||||||||
Shareholder information | 18,652 | 20,428 | 11,137 | 11,610 | 10,292 | |||||||||||||||
Bank charges and interest | 860 | 710 | 1,609 | 1,685 | 676 | |||||||||||||||
Accretion on debt | 16,095 | - | - | - | - | |||||||||||||||
Stock based compensation | - | - | - | 33,581 | - | |||||||||||||||
Write-down of production advances | 426,884 | |||||||||||||||||||
Production advances | 57,060 | |||||||||||||||||||
Amortization of investment in film and television programs | 25,000 | |||||||||||||||||||
Promotion | 2,377 | |||||||||||||||||||
$ | 161,139 | $ | 250,554 | $ | 232,527 | $ | 921,161 | $ | 828,823 |
Year | Year | Year | ||||||||||
Ended | Ended | Ended | ||||||||||
June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Consulting expenses | $ | - | $ | 40,000 | $ | 52,500 | ||||||
Professional fees | 45,981 | 33,030 | 56,395 | |||||||||
Office and general | 13,707 | 11,289 | 16,325 | |||||||||
Shareholder information | 41,615 | 18,834 | 18,652 | |||||||||
Bank charges and interest | 320 | 1,095 | 860 | |||||||||
Financing costs | 24,197 | 15,307 | - | |||||||||
Accretion on convertible notes payable | - | 8,566 | 16,095 | |||||||||
Foreign exchange loss | - | 33 | 312 | |||||||||
$ | 125,820 | $ | 128,154 | $ | 161,139 |
As at June 30, | 2012 | 2011 | 2010 | |||||
# of warrants | Fair value | # of warrants | Fair value | # of warrants | Fair value | |||
Issued and outstanding at end of year | - | $ - | - | $ - | 6,193,600 | $1,146,081 |
ANNUAL COMPENSATION | LONG-TERM COMPENSATION | ||||||||
Awards | Payouts | ||||||||
Name and principal position | Year | Fee | Bonus | Other annual compensation | Securities under options/ SARs Granted (1) | Shares or units subject to resale restrictions | LTIP (2) payouts | All other compensation | |
($) | ($) | ($) | (#) | ($) | ($) | ||||
Jason Meretsky, CEO and Secretary | 2012 | 30,000 | - | - | - | - | - | - | |
2011 | 30,000 | - | - | - | - | - | - | ||
2010 | 7,500 | - | - | - | - | - | - | ||
Stephen Wilson, CFO | 2012 | 22,500 | - | - | - | - | - | - | |
2011 | 15,000 | - | - | - | - | - | - | ||
2010 | 55,000 | - | - | - | - | - | - |
Name and principal position | |||||||||
Salary ($) | Share- based awards ($) | Option- based awards ($) | Non-equity incentive plan compensation ($) | Pension value ($) | All other compensation ($) | Total compensation ($) | |||
Annual incentive plans | Long- term incentive plans | ||||||||
Michael Wekerle, Chief Executive Officer | 2014 2013 2012 | Nil Nil - | Nil Nil - | Nil Nil - | Nil Nil - | Nil Nil - | Nil Nil - | Nil Nil - | Nil Nil - |
Henry Kneis, Chief Financial Officer | 2014 2013 2012 | Nil Nil - | Nil Nil - | Nil Nil - | Nil Nil - | Nil Nil - | Nil Nil - | Nil Nil - | Nil Nil - |
Paul Sparkes, director | 2014 2013 2012 | Nil - - | Nil - - | Nil - - | Nil - - | Nil - - | Nil - - | Nil - - | Nil - - |
Jeff Kehoe, former director | 2014 2013 2012 | Nil Nil - | Nil Nil - | Nil Nil - | Nil Nil - | Nil Nil - | Nil Nil - | Nil Nil - | Nil Nil - |
· |
· | meeting at least annually with our external auditor; |
· | reviewing the adequacy of the system of internal controls in consultation with the chief executive and financial officer; |
· | reviewing any relevant accounting and financial matters including reviewing our public disclosure of information extracted or derived from our financial statements; |
· | establishing procedures for the receipt, retention and treatment of complaints received by us regarding accounting, internal controls or auditing matters and the confidential, anonymous submission by employees of concerns regarding questionable accounting or auditing matters; |
· | pre-approving all non-audit services and recommending the appointment of external auditors; and |
· | reviewing and approving our hiring policies regarding personnel of our present and former external auditor |
1. | 2006 Stock Option Plan, |
2. | 2006 Consultant Stock Compensation Plan, |
Option-Based Awards | Share-Based Awards | ||||||||||
Name | Held | Number of securities underlying unexercised options (#) | Option exercised price ($) | Option expiration date | Value of unexercised in-the-money options ($) | Number of shares | Market or payout value of | ($) | |||
Chief Executive Officer | 20,648,150 (1) | Nil | Nil | ||||||||
20,648,150 (1) | Nil | Nil |
(1) | Difference Capital holds 20,648,150 issued and outstanding Common Shares of the Company, representing 87.8% of the issued and outstanding shares. Each of Mr. Wekerle and Mr. Kneis are also a senior officer and/or director of Difference Capital, and accordingly, would be deemed to exercise control and direction over the shares held by Difference Capital. |
Name of shareholder | No. of shares held | % of issued shares |
Mad Hatter Investments Inc. (1) | 13,692,588 | 58.2% |
Snapper Inc. | 795,000 | 5.8% |
Name of shareholder | No. of shares held | % of issued shares |
Difference Capital Financial Inc. | 20,648,150 | 87.8% |
1. | On |
The Company |
3. | The Company accrued financing costs of $24,197 on the loans to Difference Capital during the year. |
1. | On May 28, 2014, the Company entered into an amending agreement to its unsecured loan agreement with Difference Capital dated December 19, 2012 and its unsecured loan agreement with Difference Capital dated March 22, 2013, whereby the terms of such loans were amended to provide that the maturity date shall be three (3) banking days from receipt of written demand from Difference Capital. |
2. | On May 28, 2014, the Company announced the appointment of Paul Sparkes as a director of the Company following the resignation of Jeff Kehoe who resigned on March 18, 2014. The Board currently consists of three directors, Henry Kneis, Michael Wekerle and Paul Sparkes. |
Fiscal year ended June 30 | High in US $ | Low in US$ | High in US $ | Low in US$ | |||||||||
2014 | 0.14 | 0.04 | |||||||||||
2013 | 0.19 | 0.04 | |||||||||||
2012 | 0. 08 | 0.02 | 0.08 | 0.02 | |||||||||
2011 | 0.02 | 0.01 | 0.02 | 0.01 | |||||||||
2010 | 0.02 | 0.01 | 0.02 | 0.01 | |||||||||
2009 | 0.08 | 0.01 | 0.08 | 0.01 | |||||||||
2008 | 0.06 | 0.02 | 0.06 | 0.02 | |||||||||
2007 | 1.70 | 0.06 | 1.70 | 0.06 | |||||||||
2006 | 2.15 | 0.61 | 2.15 | 0.61 | |||||||||
2005 (April 28, 2005 to June 30, 2005) | 0.65 | 0.54 | 0.65 | 0.54 |
Fiscal Quarter ended | High in US $ | Low in US$ | High in US $ | Low in US$ | ||||||||||
September 30, 2014 | 0.07 | 0.07 | ||||||||||||
June 30, 2014 | 0.07 | 0.05 | ||||||||||||
March 31, 2014 | 0.05 | 0.04 | ||||||||||||
December 31, 2013 | 0.14 | 0.04 | ||||||||||||
September 30, 2013 | 0.19 | 0.14 | ||||||||||||
June 30, 2013 | 0.19 | 0.04 | ||||||||||||
March 31, 2013 | 0.05 | 0.04 | ||||||||||||
December 31, 2012 | 0.06 | 0.05 | ||||||||||||
September 30, 2012 | 0.18 | 0.08 | 0.18 | 0.08 | ||||||||||
June 30, 2012 | 0.08 | 0.062 | 0.08 | 0.062 | ||||||||||
March 31, 2012 | 0.06 | 0.06 | 0.06 | 0.06 | ||||||||||
December 31, 2011 | 0.08 | 0.02 | 0.08 | 0.02 | ||||||||||
September 30, 2011 | 0.18 | 0.11 | 0.18 | 0.11 | ||||||||||
June 30, 2011 | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||||
March 31, 2011 | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||||
December 31, 2010 | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||||
September 30, 2010 | 0.0275 | 0.01 | 0.0275 | 0.01 | ||||||||||
June 30, 2010 | 0.006 | 0.006 | 0.006 | 0.006 | ||||||||||
March 31, 2010 | 0.015 | 0.006 | 0.015 | 0.006 | ||||||||||
December 31, 2009 | 0.08 | 0.08 | 0.08 | 0.08 | ||||||||||
September 30, 2009 | 0.01 | 0.01 | 0.01 | 0.01 | ||||||||||
June 30, 2009 | .015 | 0.015 | .015 | 0.015 | ||||||||||
March 31, 2009 | 0.08 | 0.012 | 0.08 | 0.012 | ||||||||||
December 31, 2008 | 0.08 | 0.012 | 0.08 | 0.012 | ||||||||||
September 30, 2008 | 0.02 | 0.01 | 0.02 | 0.01 | ||||||||||
June 30, 2008 | 0.03 | 0.02 | 0.03 | 0.02 | ||||||||||
March 31, 2008 | 0.04 | 0.03 | 0.04 | 0.03 | ||||||||||
December 31, 2007 | 0.06 | 0.04 | 0.06 | 0.04 | ||||||||||
September 30, 2007 | 0.06 | 0.06 | 0.06 | 0.06 | ||||||||||
June 30, 2007 | 0.11 | 0.10 | 0.11 | 0.10 | ||||||||||
March 31, 2007 | 0.15 | 0.10 | 0.15 | 0.10 | ||||||||||
December 31, 2006 | 0.50 | 0.12 | 0.50 | 0.12 | ||||||||||
September 30, 2006 | 1.70 | 0.30 | 1.70 | 0.30 | ||||||||||
June 30, 2006 | 0.85 | 2.15 | 0.85 | 2.15 | ||||||||||
March 31, 2006 | 1.20 | 0.20 | 1.20 | 0.20 | ||||||||||
December 31, 2005 | 0.65 | 0.35 | 0.65 | 0.35 | ||||||||||
September 30, 2005 | 0.61 | 0.56 | 0.61 | 0.56 |
Month | High in US $ | Low in US $ | |||||
September 2012 | $0.075 | $0.06 | |||||
August 2012 | $0.075 | $0.075 | |||||
July 2012 | $0.08 | $0.08 | |||||
June 2012 | $0.08 | $0.062 | |||||
May 2012 | $0.08 | $0.062 | |||||
April 2012 | $0.08 | $0.062 |
Month | High in US $ | Low in US $ | |||
September 2014 | 0.07 | 0.07 | |||
August 2014 | 0.07 | 0.07 | |||
July 2014 | 0.07 | 0.07 | |||
June 2014 | 0.07 | 0.05 | |||
May 2014 | 0.05 | 0.05 | |||
April 2014 | 0.05 | 0.05 |
(a) | acquisition of common shares by a person in the ordinary course of a person’s business as a trader or dealer in securities; |
(b) | acquisition of control of a Canadian corporation in connection with the realization of security granted for a loan or other financial assistance and not for any purpose related to the provisions of the ICA; and |
(c) | acquisition of control of a Canadian corporation by reason of an amalgamation, merger, consolidation or corporate reorganization following which the ultimate direct or indirect control in fact of the corporation, through the ownership of voting interests, remains unchanged. |
(a) | the value of the shares is derived principally from “real property” in Canada, including the right to explore for or exploit natural resources and rights to amounts computed by reference to production, |
(b) | the shareholder was resident in Canada for 120 months during any period of 20 consecutive years preceding the disposition, was resident in Canada at any time during the 10 years immediately preceding the disposition and the shares were owned by him when he ceased to be resident in Canada, or |
(c) | the shares formed part of the business property of a “permanent establishment” or pertained to a fixed base used for the purpose of performing independent personal services that the shareholder has or had in Canada within the 12 months preceding the disposition. |
June 30, 2012 | June 30, 2011 | June 30, 2014 | June 30, 2013 | ||||||||||||
Audit Fees | 15,000 | 18,500 | 13,000 | 15,000 | |||||||||||
Audit Related Fees | 2,500 | - | - | - | |||||||||||
Tax Fees | - | - | - | - | |||||||||||
All Other Fees | 1,500 | - | - | - |
Description of Document | Page No. |
Cover Sheet | F-1 |
Index | F-2 |
Independent Auditor's Report of | F-3 |
Consolidated Statements of Financial | F-4 |
Consolidated Statements of Operations and Comprehensive Loss for the Fiscal Years Ended June 30, | F-5 |
Consolidated Statements of Cash Flows for the Fiscal Years Ended June 30, | F-6 |
Consolidated Statements of Changes in Equity for the Fiscal Years Ended June 30, | F-7 |
Notes to the Consolidated Financial Statements |
1.1 | Application for Authorization to continue in another jurisdiction dated October 20, 2006.- Incorporated herein by reference to Exhibit 1.1 to the Company’s Registration Statement on Form 20-F filed on December 26, 2006. |
1.2 | Articles of Incorporation of the Company - Incorporated herein by reference to Exhibit 1.1 to the Company’s Registration Statement on Form 20-F filed on March 12, 2004. |
1.3 | By-Laws of the Company - Incorporated herein by reference to Exhibit 1.3 to the Company’s Registration Statement on Form 20-F filed on December 26, 2006. |
1.4 | Certificate of name change from Minedel Mining & Development Company Limited to Minedel Mines Limited - Incorporated herein by reference to Exhibit 1.3 to the Company’s Registration Statement on Form 20-F filed on March 12, 2004. |
1.5 | Certificate of name change from Minedel Mines Limited to Havelock Energy & Resources Inc. - Incorporated herein by reference to Exhibit 1.4 to the Company’s Registration Statement on Form 20-F filed on March 12, 2004. |
1.6 | Certificate of name change from Havelock energy & Resources Inc. to Municipal Ticket Corporation - Incorporated herein by reference to Exhibit 1.5 to the Company’s Registration Statement on Form 20-F filed on March 12, 2004. |
1.7 | Certificate of name change from Municipal Ticket Corporation to |
1.8 | Certificate of |
1.9 | Certificate of name change from Biolink Corp. to First Empire Entertainment.com Inc. - Incorporated herein by reference to Exhibit 1.8 to the Company’s Registration Statement on Form 20-F filed on March 12, 2004. |
1.10 | Certificate of name change from First Empire Entertainment.com Inc. to First Empire Corporation Inc. - Incorporated herein by reference to Exhibit 19 to the Company’s Annual Report on Form 20-F filed on March 12, 2004. |
1.11 | Certificate of name change from First Empire Corporation Inc. to Noble House Entertainment Inc. dated November 4, 2004 - Incorporated herein by reference to Exhibit 1.10 to the Company’s Annual Report on Form 20-F filed on December 1, 2005. |
1.12 | Articles of Amendment dated November 19, 2004 consolidating the common shares of the Company on the basis of one new common share in exchange for every two old common shares - Incorporated herein by reference to Exhibit 1.11 to the Company’s Annual Report on Form 20-F filed on December 1, 2005. |
1.13 | Certificate of name change from First Empire Music Corp. to Noble house Film & Television Inc. dated January 21, 2005 - Incorporated herein by reference to Exhibit 1.12 to the Company’s Annual Report on Form 20-F filed on December 1, 2005. |
1.14 | Certificate of name change from Noble House Film & Television Inc. to LiveReel Productions Corporation dated August 10, 2006 - Incorporated herein by reference to Exhibit 1.14 to the Company’s Registration Statement on Form 20-F filed on December 26, 2006. |
1.15 | Certificate of name change from Noble House Entertainment Inc. to LiveReel Media Corporation dated October 12, 2006 - Incorporated herein by reference to Exhibit 1.15 to the Company’s Registration Statement on Form 20-F filed on December 26, 2006. |
2.(a) | Specimen Common Share certificate - Incorporated herein by reference to Exhibit 2(a) to the Company’s Annual Report on Form 20-F filed on December 1, 2005. |
2.(b)(i) | Unsecured loan agreement with Mad Hatter Investments Inc. dated July 21, 2011 - Incorporated herein by reference to Exhibit 2(b)(i) to the Company’s Registration Statement on Form 20-F filed on November 25, 2011. |
2.(b)(ii) | Unsecured loan agreement with 1057111 Ontario Limited dated July 21, 2011 - Incorporated herein by reference to Exhibit 2(b)(ii) to the Company’s Registration Statement on Form 20-F filed on November 25, 2011. |
2.(b)(iii) | Secured loan agreement with Enthrive Inc. dated November15, 2011 - Incorporated herein by reference to Exhibit 2(b)(iii) to the Company’s Registration Statement on Form 20-F filed on November 25, 2011. |
2.(b)(iv) | Unsecured loan agreement with Billidan Family Trust dated September 17, 2012- Incorporated herein by reference to Exhibit 2(b)(iv) to the Company’s Registration Statement on Form 20-F filed on October 29, 2012. |
2.(b)(v) | Unsecured loan agreement with Difference Capital Funding Inc. (now Difference Capital Financing Inc.) dated December 19, 2012. |
2.(b)(vi) | Unsecured loan agreement with Difference Capital Funding Inc. (now Difference Capital Financing Inc.) dated March 22, 2013. |
2.(b)(vii) | Loan amending agreement with Difference Capital Financing Inc. dated May 29, 2014 with respect to the unsecured loan entered into on December 19, 2012. |
2.(b)(viii) | Loan amending agreement with Difference Capital Financing Inc. dated May 29, 2014 with respect to the unsecured loan entered into on March 22, 2013. |
4.(b) | Offer to Purchase dated November 30, 2004 regarding acquisition of film properties from Noble House Production Inc. - Incorporated herein by reference to Exhibit 1.12 to the Company’s Annual Report on Form 20-F filed on December 1, 2005. |
4.(c) | 2006 Consultant Stock Compensation Plan and 2006 Stock Option Plan - Incorporated |
11. | Code of Ethics. |
12 | The certifications required by Rule 13a-14(a) (17 CFR 240.13a-14(a)) or Rule 15d-14(a) (17 CFR 240.15d-14(a)) |
The Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. | |
14(a)(i) | Corporate Governance Charter - Incorporated herein by reference to Exhibit 14 (a)(i) to the Company’s Registration Statement on Form 20-F filed on December 26, |
Audit Committee Charter - Incorporated herein by reference to Exhibit 14 (a)(ii) to the Company’s Registration Statement on Form 20-F filed on December 26, |
Page | ||
Independent Auditor's Report of | F-1 | |
Consolidated Statements of Financial Position | F-2 | |
Consolidated Statements of Operations and Comprehensive Loss | F-3 | |
Consolidated Statements of Cash Flows | F-4 | |
Consolidated Statements of Changes in Equity | F-5 | |
Notes to | F-6 | |
to F-15 |
Toronto, Ontario | Chartered Accountants |
October | Licensed Public Accountants |
As at | Note | June 30, 2014 | June 30, 2013 | |||||||||
Assets | ||||||||||||
Current Assets | ||||||||||||
Cash | $ | 1,250 | $ | 20 | ||||||||
Other assets | - | 4,039 | ||||||||||
Total Assets | 1,250 | 4,059 | ||||||||||
Liabilities | ||||||||||||
Current Liabilities | ||||||||||||
Accounts payable and accrued liabilities | 6 | $ | 36,696 | $ | 27,041 | |||||||
Due to related party | 10 | 89,159 | - | |||||||||
Short-term loans payable | 7 | 233,386 | 209,189 | |||||||||
Total Liabilities | 359,241 | 236,230 | ||||||||||
Shareholders’ Deficiency | ||||||||||||
Capital stock | 8 | 7,880,660 | 7,880,660 | |||||||||
Contributed surplus | 361,196 | 347,699 | ||||||||||
Equity component of debt | - | 13,497 | ||||||||||
Accumulated deficit | (8,599,847 | ) | (8,474,027 | ) | ||||||||
Total Shareholders’ Deficiency | (357,991 | ) | (232,171 | ) | ||||||||
Total Liabilities and Shareholders’ Deficiency | $ | 1,250 | $ | 4,059 | ||||||||
Going Concern (Note 1) | ||||||||||||
Related Party Transactions (Note 10) |
June 30, | June 30, | July 1, | ||||||||||||||
Note | 2012 | 2011 | 2010 | |||||||||||||
(Note 2) | (Note 2) | |||||||||||||||
Assets | ||||||||||||||||
Current Assets | ||||||||||||||||
Cash | $ | 13,771 | $ | 8,596 | $ | 144,006 | ||||||||||
Other assets | 6 | 23,446 | 68,560 | 39,323 | ||||||||||||
Total Assets | 37,217 | 77,156 | 183,329 | |||||||||||||
Liabilities | ||||||||||||||||
Current Liabilities | ||||||||||||||||
Accounts payable and accrued liabilities | 7 | $ | 147,105 | $ | 142,000 | $ | 57,681 | |||||||||
Convertible notes payable | 8 | 98,303 | - | - | ||||||||||||
Total Liabilities | 245,408 | 142,000 | 57,681 | |||||||||||||
Shareholders' Equity (Deficiency) | ||||||||||||||||
Capital stock | 9 | 7,880,660 | 7,880,660 | 6,728,846 | ||||||||||||
Contributed surplus | 347,699 | 347,699 | 293,370 | |||||||||||||
Equity component of debt | 8 | 17,792 | - | - | ||||||||||||
Warrants reserve | 10 | - | - | 1,146,081 | ||||||||||||
Accumulated deficit | (8,454,342 | ) | (8,293,203 | ) | (8,042,649 | ) | ||||||||||
Total Shareholders' Equity (Deficiency) | (208,191 | ) | (64,844 | ) | 125,648 | |||||||||||
Total Liabilities and Shareholders' Equity | $ | 37,217 | $ | 77,156 | $ | 183,329 | ||||||||||
Going Concern (Note 1) | ||||||||||||||||
Related Party Transactions (Note 13) | ||||||||||||||||
Commitments and contingencies (Note14) | ||||||||||||||||
Subsequent event (Note 16) |
For the years ended | Note | June 30, 2014 | June 30, 2013 | |||||||||
Revenue | $ | - | $ | - | ||||||||
Expenses | ||||||||||||
Consulting | 10 | - | 40,000 | |||||||||
Professional fees | 10 | 45,981 | 33,030 | |||||||||
Shareholders information | 41,615 | 18,834 | ||||||||||
Office and general | 13,707 | 11,289 | ||||||||||
Financing costs | 10 | 24,197 | 15,307 | |||||||||
Accretion on convertible notes payable | - | 8,566 | ||||||||||
Bank charges | 320 | 1,095 | ||||||||||
Foreign exchange loss | - | 33 | ||||||||||
125,820 | 128,154 | |||||||||||
Other income | ||||||||||||
Debt forgiveness | - | (75,929 | ) | |||||||||
Write-down of production advances | - | (32,540 | ) | |||||||||
- | (108,469 | ) | ||||||||||
Net loss and comprehensive loss | $ | (125,820 | ) | $ | (19,685 | ) | ||||||
Net loss per share – basic and diluted | 9 | $ | (0.01 | ) | $ | (0.00 | ) | |||||
Weighted average number of shares outstanding | 23,521,744 | 23,521,744 |
For the Years Ended June 30, | |||||||||||
Note | 2012 | 2011 | |||||||||
(Note 2) | |||||||||||
Revenue | |||||||||||
Interest income | $ | - | $ | - | |||||||
$ | - | $ | - | ||||||||
Expenses | |||||||||||
Professional fees | 13 | 56,395 | 40,410 | ||||||||
Consulting | 13 | 52,500 | 165,000 | ||||||||
Shareholders information | 18,652 | 20,428 | |||||||||
Office and general | 16,325 | 15,786 | |||||||||
Accretion on debt | 16,095 | - | |||||||||
Bank charges and interest | 860 | 710 | |||||||||
Foreign exchange loss | 312 | 8,220 | |||||||||
161,139 | 250,554 | ||||||||||
Net loss and comprehensive loss | $ | (161,139 | ) | $ | (250,554 | ) | |||||
Net loss per share - | |||||||||||
basic and diluted | 11 | $ | (0.01 | ) | $ | (0.01 | ) | ||||
Weighted average number of | |||||||||||
shares outstanding | 23,521,744 | 21,227,300 |
For the Years Ended June 30, | |||||||||||||||||
2012 | 2011 | ||||||||||||||||
(Note 2) | |||||||||||||||||
For the years ended | Note | June 30, 2014 | June 30, 2013 | ||||||||||||||
Cash flows from operating activities | |||||||||||||||||
Net loss for the year | $ | (161,139 | ) | $ | (250,554 | ) | $ | (125,820 | ) | $ | (19,685 | ) | |||||
Adjustment for non-cash items: | |||||||||||||||||
Accretion on convertible note payable | 16,095 | - | |||||||||||||||
Accrued interest | 24,197 | 9,189 | |||||||||||||||
Accretion on convertible notes payable | 8,566 | ||||||||||||||||
Forgiveness of debt | (75,929 | ) | |||||||||||||||
Write-down of production advances | (32,540 | ) | |||||||||||||||
Changes in working capital items: | |||||||||||||||||
Other assets | 45,114 | (29,237 | ) | 4,039 | 19,407 | ||||||||||||
Accounts payable and accrued liabilities | 5,105 | 84,319 | 9,655 | (11,595 | ) | ||||||||||||
(94,825 | ) | (195,472 | ) | (87,929 | ) | (102,587 | ) | ||||||||||
Cash flows from financing activities | |||||||||||||||||
Note payable | 100,000 | - | |||||||||||||||
Exercise of warrants | - | 60,062 | |||||||||||||||
Proceeds from shares issued to | |||||||||||||||||
exercise stock options | - | - | |||||||||||||||
Due to related party | 89,159 | - | |||||||||||||||
Proceeds from short-term loans | - | 225,000 | |||||||||||||||
Repayment of short-term loans | - | (25,000 | ) | ||||||||||||||
Repayment of notes payable | - | (111,164 | ) | ||||||||||||||
100,000 | 60,062 | 89,159 | 88,836 | ||||||||||||||
Increase (decrease) in cash | 5,175 | (135,410 | ) | 1,230 | (13,751 | ) | |||||||||||
Cash, beginning of year | 8,596 | 144,006 | 20 | 13,771 | |||||||||||||
Cash, end of year | $ | 13,771 | $ | 8,596 | $ | 1,250 | $ | 20 |
Number of Shares | Share Capital | Warrants Reserve | Contributed Surplus | Equity Component of Debt | Accumulated Deficit | Shareholders' Equity (Deficiency) | ||||||||||||||||||||||
Balance July 1, 2010 | 17,621,744 | $ | 6,728,846 | $ | 1,146,081 | $ | 293,370 | $ | - | $ | (8,042,649 | ) | $ | 125,648 | ||||||||||||||
Net loss for the year | - | $ | - | $ | - | $ | - | $ | - | $ | (250,554 | ) | $ | (250,554 | ) | |||||||||||||
Value of warrants exercised | - | $ | 1,091,752 | $ | (1,091,752 | ) | $ | - | $ | - | $ | - | $ | - | ||||||||||||||
Shares issued on exercise of warrants | 5,900,000 | $ | 60,062 | $ | - | $ | - | $ | - | $ | - | $ | 60,062 | |||||||||||||||
Value of warrants expired | - | $ | - | $ | (54,329 | ) | $ | 54,329 | $ | - | $ | - | $ | - | ||||||||||||||
Balance June 30, 2011 | 23,521,744 | $ | 7,880,660 | $ | - | $ | 347,699 | $ | - | $ | (8,293,203 | ) | $ | (64,844 | ) | |||||||||||||
Equity component of debt issued | - | $ | - | $ | - | $ | - | $ | 17,792 | $ | - | $ | 17,792 | |||||||||||||||
Net loss for the year | - | $ | - | $ | - | $ | - | $ | - | $ | (161,139 | ) | $ | (161,139 | ) | |||||||||||||
Balance June 30, 2012 | 23,521,744 | $ | 7,880,660 | $ | - | $ | 347,699 | $ | 17,792 | $ | (8,454,342 | ) | $ | (208,191 | ) |
Number of Shares | Share Capital | Contributed Surplus | Equity Component of Debt | Accumulated Deficit | Shareholders’ Equity (Deficit) | |||||||||||||||||||
Balance, July 1, 2012 | 23,521,744 | $ | 7,880,660 | $ | 347,699 | $ | 17,792 | $ | (8,454,342 | ) | $ | (208,191 | ) | |||||||||||
Change in equity component of debt | - | - | - | (4,295 | ) | - | (4,295 | ) | ||||||||||||||||
Net loss for the year | - | - | - | - | (19,685 | ) | (19,685 | ) | ||||||||||||||||
Balance, June 30, 2013 | 23,521,744 | $ | 7,880,660 | $ | 347,699 | $ | 13,497 | $ | (8,474,027 | ) | $ | (232,171 | ) | |||||||||||
Change in equity component of debt | - | - | 13,497 | (13,497 | ) | - | - | |||||||||||||||||
Net loss for the year | - | - | - | - | (125,820 | ) | (125,820 | ) | ||||||||||||||||
Balance, June 30, 2014 | 23,521,744 | $ | 7,880,660 | $ | 361,196 | $ | - | $ | (8,599,847 | ) | $ | (357,991 | ) |
1. | NATURE OF OPERATIONS AND GOING CONCERN |
(a) | Statement of Compliance |
(b) | Basis of Presentation |
Shareholders' Equity (Deficiency) | June 30, | July 1, | ||||||||
2011 | 2010 | |||||||||
As previously reported under GAAP | $ | (64,844 | ) | $ | 125,648 | |||||
IFRS Adjustments | - | - | ||||||||
As reported under IFRS | $ | (64,844 | ) | $ | 125,648 |
Net Loss | June 30, | |||||
2011 | ||||||
As previously reported under GAAP | $ | (250,554 | ) | |||
IFRS Adjustments | - | |||||
As reported under IFRS | $ | (250,554 | ) |
(e) | Financial instruments (continued) |
Financial assets: | Classification: | |
Cash | FVTPL | |
Other assets | Other financial assets | |
Financial liabilities: | Classification: | |
Amounts payable and accrued liabilities | Other financial liabilities | |
Other financial liabilities | ||
Short-term loans payable | Other financial liabilities |
(g) | Income taxes |
(h) | Significant accounting judgements and estimates |
New standards not yet adopted |
June 30, | June 30, | July 1, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||||
Financial assets: | ||||||||||||||
FVTPL | ||||||||||||||
Cash | $ | 13,771 | $ | 8,596 | $ | 144,006 | ||||||||
Other assets | 23,446 | 68,560 | 39,323 | |||||||||||
Total | $ | 37,217 | $ | 77,156 | $ | 183,329 | ||||||||
Financial liabilities: | ||||||||||||||
Other financial liabilities | ||||||||||||||
Accounts payable and | ||||||||||||||
accrued liabilities | $ | 147,105 | $ | 142,000 | $ | 57,681 | ||||||||
Convertible notes payable | 98,303 | - | - | |||||||||||
Total | $ | 245,408 | $ | 142,000 | $ | 57,681 |
June 30, 2014 | June 30, 2013 | |||||||
Financial assets: | ||||||||
FVTPL | ||||||||
Cash | $ | 1,250 | $ | 20 | ||||
Other assets | - | 4,039 | ||||||
Total | $ | 1,250 | $ | 4,059 | ||||
Financial liabilities: | ||||||||
Other financial liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 36,696 | $ | 27,041 | ||||
Due to related party | 89,159 | - | ||||||
Short-term loans payable | 233,386 | 209,189 | ||||||
Total | $ | 359,241 | $ | 236,230 |
June 30, 2014 | June 30, 2013 | |||||||
Accounts payable | $ | - | $ | 10,091 | ||||
Accrued liabilities | 36,696 | 16,950 | ||||||
Total | $ | 36,696 | $ | 27,041 |
a) | Authorized: Unlimited number of common shares |
June 30, | June 30, | July 1, | ||||||||||||
2012 | 2011 | 2010 | ||||||||||||
Taxes recoverable | $ | 13,207 | $ | 53,359 | $ | 24,831 | ||||||||
Deposits and prepayments | 10,239 | 15,201 | 14,492 | |||||||||||
$ | 23,446 | $ | 68,560 | $ | 39,323 |
b) | Issued: |
June 30, 2014 | June 30, 2013 | ||||||||||||||||
Common | Common | ||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||
Beginning of year | 23,521,744 | $ | 7,880,660 | 23,521,744 | $ | 7,880,660 | |||||||||||
End of year | 23,521,744 | $ | 7,880,660 | 23,521,744 | $ | 7,880,660 |
June 30, | June 30, | July 1, | |||||||||||||
2012 | 2011 | 2010 | |||||||||||||
Accounts payable | $ | 77,565 | $ | 85,310 | $ | 5,141 | |||||||||
Accrued liabilities | 37,000 | 24,150 | 20,000 | ||||||||||||
Production advances | (a) | 32,540 | 32,540 | 32,540 | |||||||||||
$ | 147,105 | $ | 142,000 | $ | 57,681 |
b) | During the year ended June 30, 2013, consulting fees included $25,000 paid to the former Chief Executive Officer and $15,000 paid to the former Chief Financial Officer of the Company. No consulting fees were paid to any related parties during the year ended June 30, 2014. |
c) | Financing costs during the year ended June 30, 2014 included $24,197 (2013 – $9,189) payable to Difference Capital. |
d) | During the year ended June 30, 2013, consulting fees of $60,000 owed to the former largest shareholder, Mad Hatter Investments Inc., for various consulting services rendered were forgiven. |
e) | Legal fees in 2013 include $17,078 paid to a law firm affiliated with the former Chief Executive Officer for legal services provided during the year. |
f) | During the year ended June 30, 2013, legal fees of $15,929 owed to an unrelated law firm for legal services provided to the Company were paid by the |
June 30, 2014 | June 30, 2013 | |||||||
Canadian statutory income tax rates | 26.50% | 26.50% | ||||||
Income tax recovery at statutory income tax rates | $ | (33,342 | ) | $ | (5,217 | ) | ||
Increase (decrease) in taxes resulting from: | ||||||||
Temporary difference | (1,265 | ) | (1,265 | ) | ||||
Other permanent differences | - | (28,735 | ) | |||||
Benefit of tax losses not recognized | 34,607 | 35,217 | ||||||
Provision for income taxes | $ | - | $ | - |
June 30, 2014 | June 30, 2013 | |||||||
Amounts related to tax loss carry forwards | $ | 989,510 | $ | 954,795 | ||||
Share issuance costs | 2,531 | 3,796 | ||||||
Deferred tax assets not recognized | (922,041 | ) | (958,591 | ) | ||||
$ | - | $ | - |
2015 | 151,000 | |||||
2016 | 448,000 | |||||
2027 | 536,000 | |||||
2028 | 868,000 | |||||
2029 | 911,000 | |||||
2030 | 260,000 | |||||
2031 | 251,000 | |||||
2032 | 153,000 | |||||
2033 | 25,000 | |||||
2034 | 131,000 | |||||
$ | 3,734,000 |
Overview | 3 | |
Summary of Results | 3 | |
Number of Common Shares | 5 | |
Business Environment | 6 | |
Risk Factors | 6 | |
Forward Looking Statements | 9 | |
Business Plan and Strategy | 9 | |
Results of Operations | 11 | |
Liquidity and Capital Resources | 14 | |
Working Capital | 14 | |
Key Contractual Obligations | 15 | |
Off Balance Sheet Arrangements | 15 | |
Transactions with Related Parties | 15 | |
Financial and Derivative Instruments | 15 | |
Critical Accounting Estimates | 16 | |
Evaluation of Disclosure Controls and Procedures | 16 | |
Outlook | 16 | |
Current Outlook | 16 | |
Public Securities Filings | 16 |
Selected consolidated data | ||||||||||||
Year ended June 30 ($) | 2014 | 2013 | 2012 | |||||||||
Revenue | - | - | - | |||||||||
Net loss for year | (125,820 | ) | (19,685 | ) | (161,139 | ) | ||||||
Loss per share | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.01 | ) | |||
Working capital deficit | (357,991 | ) | (232,171 | ) | (208,191 | ) | ||||||
Total assets | 1,250 | 4,059 | 37,217 | |||||||||
Capital stock | 7,880,660 | 7,880,660 | 7,880,660 | |||||||||
Contributed surplus | 361,196 | 347,699 | 347,699 | |||||||||
Equity component of debt | - | 13,497 | 17,792 | |||||||||
Accumulated deficit | (8,599,847 | ) | (8,474,027 | ) | (8,454,342 | ) | ||||||
Shareholders' deficiency | (357,991 | ) | (232,171 | ) | (208,191 | ) |
Quarters ended | June 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sept. 30, 2013 | June 30, 2013 | March 31, 2013 | Dec. 31, 2012 | Sept. 30, 2012 | ||||||||
Total Revenue | - | - | - | - | - | - | - | - | ||||||||
Earnings (Loss) from continuing operations | (25,659) | (25,606) | (28,492) | (46,063) | 6,466 | 52,170 | (56,073) | (22,248) | ||||||||
Net loss per share - basic and diluted | 0.00 | 0.00 | 0.00 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 |
· | our lack of substantial operating history; |
· | the success of the film projects in which we have interests; |
· | the impact of competition; |
· | the enforceability of legal rights; |
· | the volatility of the entertainment industry. |
Year | Year | Year | ||||||||||
Ended | Ended | Ended | ||||||||||
June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Revenue | $ | - | $ | - | $ | - | ||||||
Expenses | (125,820 | ) | (128,154 | ) | (161,139 | ) | ||||||
Debt forgiveness | - | 75,929 | - | |||||||||
Write-down of production advances | - | 32,540 | - | |||||||||
Net loss for the year | (125,820 | ) | (19,685 | ) | (161,139 | ) | ||||||
Accumulated deficit | $ | (8,599,847 | ) | $ | (8,474,027 | ) | $ | (8,454,342 | ) |
Liability | ||||||
Component | ||||||
Liability component as at July 1, 2010 and June 30, 2011 | $ | - | ||||
Fair value of all debt components on recognition | 82,208 | |||||
Increase and accretion to fair value | 16,095 | |||||
Liability component as at June 30, 2012 | $ | 98,303 |
June 30, 2012 | June 30, 2011 | ||||||||||||||||
Common | Common | ||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||
Beginning of year | 23,521,744 | $ | 7,880,660 | 17,621,744 | $ | 6,728,846 | |||||||||||
Shares issued upon | |||||||||||||||||
exercise of warrants | - | 5,900,000 | 60,062 | ||||||||||||||
Value of warrants exercised | - | - | 1,091,752 | ||||||||||||||
End of year | 23,521,744 | $ | 7,880,660 | 23,521,744 | $ | 7,880,660 |
As at June 30, | As at June 30, | ||||||||||||||||
2012 | 2011 | ||||||||||||||||
# of warrants | Fair value | # of warrants | Fair value | ||||||||||||||
Issued and outstanding at beginning of year | - | $ | - | 6,193,600 | $ | 1,146,081 | |||||||||||
Value of Warrants excercised | (5,900,000 | ) | (1,091,752 | ) | |||||||||||||
Value of Warrants expired | (293,600 | ) | (54,329 | ) | |||||||||||||
Balance end of year | - | - | - | - |
2012 | 2011 | 2010 | |||||||||||
Amounts related to tax loss and credit carry forwards | $ | 922,000 | $ | 883,000 | $ | 874,000 | |||||||
Net future tax assets | 922,000 | 883,000 | 874,000 | ||||||||||
Less: Valuation allowance | (922,000 | ) | (883,000 | ) | (874,000 | ) | |||||||
$ | - | $ | - | $ | - |
Income tax recovery at statutory income tax rate | $ | (45,522 | ) | $ | (70,782 | ) | $ | (72,083 | ) | ||||
Tax effect of: | |||||||||||||
Permanent differences and other | 2,360 | - | (8,645 | ) | |||||||||
Change in valuation allowance | 43,162 | 70,782 | 80,728 | ||||||||||
Income Tax Recovery | $ | - | $ | - | $ | - |
Year | Year | Year | ||||||||||
Ended | Ended | Ended | ||||||||||
June 30, | June 30, | June 30, | ||||||||||
2014 | 2013 | 2012 | ||||||||||
Consulting expenses | $ | - | $ | 40,000 | $ | 52,500 | ||||||
Professional fees | 45,981 | 33,030 | 56,395 | |||||||||
Shareholders information | 41,615 | 18,834 | 18,652 | |||||||||
Office and general | 13,707 | 11,289 | 16,325 | |||||||||
Financing costs | 24,197 | 15,307 | - | |||||||||
Accretion on convertible notes payable | - | 8,566 | 16,095 | |||||||||
Bank charges and interest | 320 | 1,095 | 860 | |||||||||
Foreign exchange loss | - | 33 | 312 | |||||||||
$ | 125,820 | $ | 128,154 | $ | 161,139 |
2015 | 204,000 | ||
2016 | 503,000 | ||
2027 | �� 536,000 | ||
2028 | 868,000 | ||
2029 | 911,000 | ||
2030 | 260,000 | ||
2031 | 251,000 | ||
2032 | 153,000 | ||
$ 3,686,000 |
(a) |
(b) | Financing costs included $24,197 payable to Difference Capital on the short-term loans during the year ended June 30, |
(c) |
Financial and Derivative Instruments The Company’s excess cash, if any, is held at a Canadian chartered bank and bears interest at various rates on monthly balances. Credit risk is minimized as all cash amounts are held with a large bank, which have acceptable credit ratings determined by a recognized rating agency. The carrying value of cash, accounts payable and accrued liabilities, and amounts due to related parties approximate their fair values due to the short-term maturities of these instruments. The Company never entered into and did not have at the end of the years ended June 30, 2014 and 2013, any foreign currency hedge contracts. |