UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM S-1/A2
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933
Solquest Corp
(Exact Name of registrant in its charter)
Nevada | 6770 | 27-0625383 |
(State or jurisdiction of incorporation or organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification No.) |
SolQuest Corp
5790 Rogers Street
Las Vegas, Nevada 89118
(702) 399.9575
(Address and telephone number of principal executive offices)
Michael Quinn Isley
President and Chief Executive Officers
5790 Rogers Street
Las Vegas, Nevada 89118
(702) 399.9575
(Name, address and telephone number of agent for service)
Copies to:
Ronald A. Davis
Green Thumb Capital
1401 Highway A1A
Suite 1401
Vero Beach, Florida 32963
(772) 584-3308
Fax: (772) 226.5557
Approximate date of proposed sale to the public: As soon as practicable after this Registration Statement becomes effective.
If any of the securities being registered are being offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box X.
If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act Registration Statement number of the earlier effective Registration Statement for the same offering. .
If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act Registration Statement number of the earlier effective Registration Statement for the same offering. .
If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act Registration Statement number of the earlier effective Registration Statement for the same offering. .
Indicate by a check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accredited filer or a smaller reporting company.
Large accelerated filer | . | Accelerated filer | . |
Non-accelerated filer | . | Smaller reporting company | X. |
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CALCULATION OF REGISTRATION FEE
Tile of each class of securities to be registered | Shares to be registered | Proposed maximum offering price per share(1) | Proposed maximum aggregate offering price | Amount of registration fee(2) |
Common Stock-New Issue | 2,000,000 | $0.05 | $100,000.00 | $5.80 |
Common Stock—Current Shareholders | 900,000 | $0.05 | $45,000.00 | $2.61 |
Total | 2,900,000 | $0.05 | $145,000.00 | $8.41 |
(1)This is an initial offering of securities by the registrant and no current trading market exists for our common stock. The Offering price of the common stock offered hereunder has been arbitrarily determined by the Company and bears no relationship to any objective criterion of value. The price does not bear any relationship to the assets, book value, historical earnings or net worth of the Company.
(2) Estimated only for purposes of calculating the registration fee pursuant to Rule 457.
The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.
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The information in this document is not complete and may be changed. The Company may not sell the securities offered by this document until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities, and the Company is not soliciting an offer to buy these securities, in any state or other jurisdiction where the offer or sale is not permitted.
Prospectus
Solquest Corp
2,900,000 Shares of Common Stock
$0.05 per share
Solquest Corp (“Solquest” or the "Company") is offering on a best-efforts basis a minimum of 400,000 and a maximum of 2,000,000 shares of its common stock at a price of $0.05 per share. In addition there are 900,000 shares of common stock being registered for sale by our officers and directors who is a selling shareholders. Mr. Isley is an underwriter for the purposes of this offering. The shares are intended to be sold directly through the efforts of Michael Quinn Isley, our officers and directors. The intended methods of communication include, without limitation, telephone and personal contacts. For more information, see the section titled "Plan of Distribution" herein.
The proceeds from the sale of the shares in this offering will be payable to Bank of the West - Trust Account fbo Solquest Corp. All subscription funds will be held in escrow in a non-interest bearing Trust Account at Bank of the West pending the achievement of the Minimum Offering and no funds shall be released to Solquest Corp until such a time as the minimum proceeds are raised. If the minimum offering is not achieved within 180 days of the date of this prospectus, all subscription funds will be returned to investors promptly without interest or deduction of fees. The Company shall have the right, in its discretion, to extend the initial offering period an additional 180 days. See the section entitled "Plan of Distribution” herein. Neither the Company nor any subscriber shall receive interest no matter how long subscriber funds might be held.
The offering may terminate on the earlier of: (i) the date when the sale of all 2,000,000 shares to be sold by the issuer is completed, (ii) anytime after the minimum offering of 400,000 shares of common stock is achieved, or (ii) 180 days from the effective date of this document, or any extension thereto.
Prior to this offering, there has been no public market for Solquest Corp's common stock. The Company is a development stage company which currently has limited operations and has not generated any revenue. Therefore, any investment involves a high degree of risk.
The Company is conducting a "Blank Check" offering subject to Rule 419 of Regulation C as promulgated by the U.S. Securities and Exchange Commission (the "S.E.C.") under the Securities Act of 1933, as amended (the "Securities Act").The net offering proceeds, after deduction for offering expenses and sales commissions, and the securities to be issued to investors must be deposited in an account (the "Deposited Funds" and "Deposited Securities," respectively). While held in the escrow account, the deposited securities may not be traded or transferred other than by will or the laws of descent and distribution, or pursuant to a qualified domestic relations order as defined by the Internal Revenue Code of 1986 as amended (26 U.S.C. 1 et seq.), or Title 1 of the Employee Retirement Income Security Act (29 U.S.C. 1001 et seq.), or the rules thereunder. Except for an amount up to 10% of the deposited funds otherwise releasable unde r Rule 419, the deposited funds and the deposited securities may not be released until an acquisition meeting certain specified criteria has been consummated and a sufficient number of investors reconfirm their investment in accordance with the procedures set forth in Rule 419. Pursuant to these procedures, a new prospectus, which describes an acquisition candidate and its business and includes audited financial statements, will be delivered to all investors. The Company must return the pro rata portion of the deposited funds to any investor who does not elect to remain an investor. Unless a sufficient number of investors elect to remain investors, all investors will be entitled to the return of a pro rata portion of the deposited funds (plus interest) and none of the deposited securities will be issued to investors. In the event an acquisition is not consummated within 18 months of the effective date of this prospectus, the deposited funds will be returned on a pro rata basis to all investors.
Until 90 days after the date funds and securities are released from the escrow or trust account pursuant to Rule 419, all dealers effecting transactions in the registered securities, whether or not participating in this distribution, may be required to deliver a prospectus.
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THIS INVESTMENT INVOLVES A HIGH DEGREE OF RISK. YOU SHOULD PURCHASE ONLY IF YOU CAN AFFORD A COMPLETE LOSS OF YOUR INVESTMENT. SEE THE SECTION ENTITLED “RISK FACTORS” HEREIN ON PAGE 6.
| Number of Shares | Offering Price | Underwriting Discounts & Commissions | Proceeds to the Company |
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Per Share | 1 | $0.05 | $0.00 | $0.05 |
Minimum | 400,000 | $20,000 | $0.00 | $20,000 |
Maximum | 2,000,000 | $100,000 | $0.00 | $100,000 |
This Prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.
NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED THESE SECURITIES, OR PASSED UPON THE ADEQUACY OR ACCURACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
Subject to completion, dated April__, 2010
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TABLE OF CONTENTS
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PART I – INFORMATION REQUIRED IN THE PROSPECTUS |
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| Summary Information and Risk Factors | 7 | |
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| Use of Proceeds | 15 | |
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| Determination of Offering Price | 15 | |
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| Dilution | 17 | |
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| Selling Shareholders | 17 | |
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| Plan of Distribution | 15 | |
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| Description of Securities to be Registered | 19 | |
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| Interests of Named Experts and Counsel | 20 | |
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| Information with Respect to the Registrant | 21 | |
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| Description of Business | 21 | |
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| Description of Property | 21 | |
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| Legal Proceedings | 21 | |
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| Market price and Dividends on the Issuer’s Common Stock | 22 | |
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| Management’s Discussion and Analysis of Financial Condition and Results of Operations | 22 | |
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| Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 26 | |
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| Directors, Executive Officers, Promoters and Control Persons | 26 | |
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| Executive Compensation | 28 | |
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| Security Ownership of Certain Beneficial Owners and Management | 28 | |
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| Certain Relationships and Related Transactions | 29 | |
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| Reports to Security Holders | 29 | |
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| Disclosure of Commission Position on Indemnification | 29 | |
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| Financial Statements – Audited Financial Statements dated July 29, 2009 | F-1 |
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PART I: INFORMATION REQUIRED IN PROSPECTUS
ITEM 3 - SUMMARY INFORMATION AND RISK FACTORS
SUMMARY INFORMATION AND RISK FACTORS
Rights and Protections Under Rule 419
Upon completion of this offering, 90% of the net proceeds of this offering will be placed in an escrow account until the completion of a merger or acquisition as detailed herein. Such escrowed funds may not be used for salaries or reimbursable expenses.
PROSPECTUS SUMMARY
The following summary is qualified in its entirety by detailed information appearing elsewhere in this prospectus ("Prospectus"). Each prospective investor is urged to read this Prospectus, and the attached Exhibits, in their entirety.
THE COMPANY
Business Overview
Solquest Corp ("Solquest" or the "Company"), incorporated in the State of Nevada on April 6, 2009, to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. The Company has been in the developmental stage since inception and has no operations to date. Other than issuing shares to its original shareholders, the Company never commenced any operational activities. The Company has had no operations to date and has received no revenues. The Company was organized to engage in the acquisition, development, operation and possible sale of solar power generation equipment and installation services to offer a broad range of local and regional, international, and enhanced services including but not limited to single family residences, multi-family apartments or condominiums and fixed (land) solar park service to individuals, business and residential customers. The Company will initially concentrate its services in the United States. Decisions as to what type and which business opportunities to participate in will be made by management of the Company ("Management"), which may, in most cases pursuant to the Company's by-laws and Articles of Incorporation and the Nevada General Corporation Law, act without the consent, vote or approval of the Company's shareholderss. The Company does not own and Management has not begun any services nor have any agreements or negotiations or discussions begun with providers of any such services. The offering herein is considered a "blind pool" or "blank check".
The Company was formed by Michael Quinn Isley and Chancey White, the initial directors, for the purpose of creating a corporation which could be used to consummate a merger or acquisition. Mr. Isley serves as President, , Treasurer and Directors. Chancy White is Secretary and Directors. The Company determined next to proceed with filing a Form S-1.
Mr. Isley, the President and Directors, elected to commence implementation of the Company's principal business purpose, described below under "Plan of Operation". As such, the Company can be defined as a "shell" company, whose purpose at this time is to locate and consummate a merger or acquisition with a private entity.
The proposed business activities described herein classify the Company as a "blank check" company. Many states have enacted statutes, rules and regulations limiting the sale securities of "blank check" companies in their prospective jurisdictions. Management does not intend to undertake any efforts to cause a market to develop in the Company's securities until such time as the Company has successfully implemented its business plan described herein. Accordingly, each current shareholders of the Company has executed and delivered a "lock-up" letter agreement, affirming that his/her respective shares of the Company's common stock until such time as the Company has successfully consummated a merger or acquisition and the Company is no longer classified as a "blank check" company. In order to provide further assurances that no trading will occur in the Company's securities until a merger or acquisition has been consummated, each current s hareholders has agreed to place his/her respective certificates until such time as legal counsel has confirmed that a merger or acquisition has been successfully consummated. However, while management believes that the procedures established to preclude any sale of the Company's securities prior to closing of a merger or acquisition will be sufficient, there can be no assurances that the procedures established herein will unequivocally limit any shareholders's from selling their respective securities before such closing.
As of the date of this prospectus, we have 9,000,000 shares of $0.001 par value common stock issued and outstanding.
Solquest Corp’s operations and corporate offices are located at 5790 Rogers Street, Las Vegas, Nevada 89118, with a telephone number of (702) 399-9575.
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Solquest Corp’s fiscal year end is April 30.
THE OFFERING
Solquest Corp is offering, on a best efforts, self-underwritten basis, a minimum of 400,000 and a maximum of 2,000,000 new issue shares of its common stock at a price of $0.05 per share in addition to 900,000 shares currently held by the existing shareholderss also at $0.05 per share. New issue offering refers to the shares offered for sale by the company. The proceeds from the sale of the shares in this offering will be payable to "Harold Gewerter, Esq. Ltd. Client Trust Account fob SolQuest Corp” and will be deposited in a non-interest bearing bank account at Bank of the West until the escrow conditions are met and thus no interest shall be paid to any investor or to the Company. In the event that any interest is earned on the funds in escrow it shall be for the benefit of the purchasers of securities in this offering. All subscription agreements and checks are irrevocable and should be delivered to Harold Gewerter, Esq. fbo Solquest Corp, at the address provid ed on the Subscription Agreement. Failure to do so will result in checks being returned to the investor who submitted the check. Solquest Corp’s escrow agent, Harold Gewerter, Esq., acts as legal counsel for Solquest Corp and therefore, may not be considered an independent third party. The proceeds from any sale by the selling shareholders will also be held in escrow but will not count towards computation of the minimum offering.
All subscription funds will be held in escrow pending the achievement of the Minimum Offering after which no funds shall be released to Solquest Corp until such a time as the escrow conditions are met (see the section titled "Plan of Distribution" herein) other than 10% which may only be released to Solquest upon completion of the offering. (see the section titled "Plan of Distribution" herein). The offering may terminate on the earlier of: (i) the date when the sale of all 2,000,000 shares being sold by the issuer is completed, (ii) anytime after the minimum offering of 400,000 shares of common stock is achieved at the discretion of the Board of Directors, or (ii) 180 days from the effective date of this document, or any extension thereto at the discretion of the Board of Directors and which extension any subscribers will be notified of in writing a minimum of 30 days prior to the beginning of such extension.
If the Minimum Offering is not achieved within 180 days of the date of this prospectus, all subscription funds will be returned to investors promptly without interest (since the funds are being held in a non interest bearing account) or deduction of fees unless the Company extends the offering period an additional 180 days in which case the funds will be returned promptly at the end of the second 180 day period . The escrow holder will confirm with the officers and directors of the company the amount held in escrow to determine if the minimum offering has been met. The Company will cause to be issued stock certificates attributable to shares of common stock purchased within ninety (90) days of the close of the offering and will within 5 days of issuance cause such shares to be delivered to the escrow agents account at Bank of the West.
Mr. Isley and Ms. White , our officers and directors may not purchase shares covered by this registration statement.
The Company is conducting a "Blank Check" offering subject to Rule 419 of Regulation C as promulgated by the U.S. Securities and Exchange Commission (the "S.E.C.") under the Securities Act of 1933, as amended (the "Securities Act").The net offering proceeds, after deduction for offering expenses and sales commissions, and the securities to be issued to investors must be deposited in an escrow account (the "Deposited Funds" and "Deposited Securities," respectively). While held in the escrow account, the deposited securities may not be traded or transferred other than by will or the laws of descent and distribution, or pursuant to a qualified domestic relations order as defined by the Internal Revenue Code of 1986 as amended (26 U.S.C. 1 et seq.), or Title 1 of the Employee Retirement Income Security Act (29 U.S.C. 1001 et seq.), or the rules thereunder. Except for an amount up to 10% of the deposited funds otherwise releasab le under Rule 419, the deposited funds and the deposited securities may not be released until an acquisition meeting certain specified criteria has been consummated and a sufficient number of investors reconfirm their investment in accordance with the procedures set forth in Rule 419. Pursuant to these procedures, a new prospectus, which describes an acquisition candidate and its business and includes audited financial statements, will be delivered to all investors. The Company must return the pro rata portion of the deposited funds to any investor who does not elect to remain an investor. Unless a sufficient number of investors elect to remain investors, all investors will be entitled to the return of a pro rata portion of the deposited funds (plus interest) and none of the deposited securities will be issued to investors. In the event an acquisition is not consummated within 18 months of the effective date of this prospectus, the deposited funds will be returned on a pro rata basis to all investors.
The reconfirmation offer must commence within five business days after the effective date of the post-effective amendment. The post effective amendment will contain information about the acquisition/merger candidate including their financials. The reconfirmation is for the protection of the investors as investors will have an opportunity to review information on the merger/acquisition entity and to have their subscriptions canceled and payment refunded or reconfirm their subscriptions. Pursuant to Rule 419, the terms of the reconfirmation offer must include the following conditions:
(1) The prospectus contained in the post-effective amendment will be sent to each investor whose securities are held in the escrow account within five business days after the effective date of the post-effective amendment;
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2) Each investor will have no fewer than 20, and no more than 45, business days from the effective date of the post-effective amendment to notify the Company in writing that the investor elects to remain an investor;
(3) If the Company does not receive written notification from any investor within 45 business days following the effective date, the pro rata portion of the Deposited Funds (and any related interest or dividends) held in the escrow account on such investor's behalf will be returned to the investor within five business days by first class mail or other equally prompt means;
(4) The acquisition(s) will be consummated only if investors having contributed 80% of the maximum offering proceeds elect to reconfirm their investments; and
(5) If a consummated acquisition(s) has not occurred within 18 months from the date of this prospectus, the Deposited Funds held in the escrow account shall be returned to all investors on a pro rata basis within five business days by first class mail or other equally prompt means.
The offering price of the common stock has been determined arbitrarily and bears no relationship to any objective criterion of value. The price does not bear any relationship to our assets, book value, historical earnings or net worth.
Solquest Corp has not presently secured a transfer agent but will identify one prior to the filing of an application for trading in order to facilitate the processing of stock certificates. The Company expects to seek quotations for its securities upon completion of the offering and a merger/acquisition and the reconfirmation offering.
The purchase of the common stock in this offering involves a high degree of risk. The common stock offered in this prospectus is for investment purposes only and currently no market for our common stock exists. Please refer to the sections entitled "Risk Factors" and "Dilution" before making an investment in this stock.
SUMMARY FINANCIAL INFORMATION
The following table sets forth summary financial data derived from our financial statements. The data should be read in conjunction with the financial statements, related notes and other financial information included in this prospectus.
Statements of operations data
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| Inception April 6, 2009 thru January 31, 2010 |
Revenue | $ | 2,000 |
Expenses: |
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General and administrative expenses |
| 22,087 |
Total Expenses |
| 22,087 |
Net Income (Loss) | $ | (22,087) |
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Balance sheets data
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| January 31, 2010 |
ASSETS |
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Current Assets |
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Cash | $ | 273 |
Total current assets |
| 273 |
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Total assets | $ | 273 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Liabilities |
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Current Liabilities | $ | 960 |
Non-Current Liabilities |
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Total Liabilities | $ | 960 |
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Stockholders’ Equity |
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Common stock |
| 21,400 |
(Deficit) accumulated during development stage |
| (22,087) |
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Total stockholder's equity |
| (687) |
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Total liabilities and stockholder's equity | $ | 273 |
RISK FACTORS
Investment in the securities offered hereby involves certain risks and is suitable only for investors of substantial financial means. Prospective investors should carefully consider the following risk factors in addition to the other information contained in this prospectus, before making an investment decision concerning the common stock. This section discloses all of the material risks of an investment in this Company.
OFFICES AND DIRECTORS. Solquest Corp’s operations depend on the efforts of Michael Quinn Isley and Chancey White, the officers and directors of the Company. They have no experience related to public company management, nor as a principal accounting officers. Because of this, the Company may be unable to offer and sell the shares in this offering, develop our business or manage our public reporting requirements. The Company cannot guarantee that it will be able overcome any such obstacles.
POTENTIAL CONFLICTS OF INTEREST. Michael Quinn Isley and Cancey White are involved in other employment opportunities and may periodically face a conflict in selecting between Solquest Corp and other personal and professional interests. The Company has not formulated a policy for the resolution of such conflicts should they occur. If the Company loses Michael Quinn Isley to other pursuits without a sufficient warning, the Company may, consequently, go out of business.
RULE 419 LIMITATIONS. Rule 419 requires that the securities to be issued and the funds received in this offering be deposited and held in an escrow account pending the completion of a qualified acquisition. Before the acquisition can be completed and before the funds and securities can be released, the Company will be required to update its registration statement with a post-effective amendment. After the effective date of any such post-effective amendment, the Company is required to furnish investors with the new prospectus containing information, including audited financial statements, regarding the proposed acquisition candidate and its business. Investors must decide to remain investors or require the return of their investment funds. Any investor not making a decision within 45 days of the effectiveness of the post effective amendment will automatically receive a return of his investment funds.
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Although investors may request the return of their funds in connection with the reconfirmation offering required, the Company's shareholderss will not be afforded an opportunity to approve or disapprove any particular transaction. See Risk Factor entitled "Conflicts of Interest."
NO AUDITED FINANCIAL STATEMENTS REQUIRED PRIOR TO BUSINESS COMBINATION. The Company shall not require the business combination target to provide audited financial statements until after the combination has been approved, thus there is the risk that the unaudited statements which are provided to the Company during its due diligence may contain errors that an audit would have found thus exposing the investors to the risk that the business combination target may not be as valuable as it appears during the combination approval process.
PROHIBITION TO SELL OR OFFER TO SELL SHARES IN ESCROW ACCOUNT. It shall be unlawful for any person to sell or offer to sell Shares (or any interest in or related to the Shares) held in the escrow account other than pursuant to a qualified domestic relations order or by will or the laws of descent and distribution. As a result, investors may be unable to sell or transfer their shares for a significant period of time.
DISCRETIONARY USE OF PROCEEDS; "BLANK CHECK" OFFERING. As a result of management's broad discretion with respect to the specific application of the net proceeds of this offering, this offering can be characterized as a "blank check" offering. Although substantially all of the net proceeds of this offering are intended generally to be applied toward effecting a Business Combination, such proceeds are not otherwise being designated for any more specific purposes. Accordingly, prospective investors will invest in the Company without an opportunity to evaluate the specific merits or risks of any one or more business combinations. There can be no assurance that determinations ultimately made by the Company relating to the specific allocation of the net proceeds of this offering will permit the Company to achieve its business objectives. See "Description of Business."
REGULATIONS CONCERNING "BLANK CHECK" ISSUERS. The ability to register or qualify for sale the Shares for both initial sale and secondary trading is limited because a number of states have enacted regulations pursuant to their securities or "blue sky" laws restricting or, in some instances, prohibiting, the sale of securities of "blank check" issuers, such as the Company, within that state. In addition, many states, while not specifically prohibiting or restricting "blank check" companies, may not register the Shares for sale in their states. Because of such regulations and other restrictions, the Company's selling efforts, and any secondary market which may develop, may only be conducted in those jurisdictions where an applicable exemption is available or a blue sky application has been filed and accepted or where the Shares have been registered.
NO OPERATING HISTORY OR REVENUE AND MINIMAL ASSETS. The Company has had no operating history nor any revenues or earnings from operations. The Company has no significant assets or financial resources. The Company will, in all likelihood, sustain operating expenses without corresponding revenues, at least until the consummation of a business combination. This may result in the Company incurring a net operating loss which will increase continuously until the Company can consummate a business combination with a profitable business opportunity. This may lessen the possibility of finding a suitable acquisition or merger candidate as such loss would be inherited on their financial statements. There is no assurance that the Company can identify such a business opportunity and consummate such a business combination.
SPECULATIVE NATURE OF COMPANY'S PROPOSED OPERATIONS. The success of the Company's proposed plan of operation will depend to a great extent on the operations, financial condition and management of the identified business opportunity. While management intends to seek business combinations with entities having established operating histories, there can be no assurance that the Company will be successful in locating candidates meeting such criteria. In the event the Company completes a business combination, of which there can be no assurance, the success of the Company's operations may be dependent upon management of the successor firm or venture partner firm and numerous other factors beyond the Company's control.
SCARCITY OF AND COMPETITION FOR BUSINESS OPPORTUNITIES AND COMBINATIONS. The Company is and will continue to be an insignificant participant in the business of seeking mergers with, joint ventures with and acquisitions of small private entities. A large number of established and well-financed entities, including venture capital firms, are active in mergers and acquisitions of companies which may be desirable target candidates for the Company. Nearly all such entities have significantly greater financial resources, technical expertise and managerial capabilities than the Company and, consequently, the Company will be at a competitive disadvantage in identifying possible business opportunities and successfully completing a business combination. Moreover, the Company will also compete in seeking merger or acquisition candidates with numerous other small public companies.
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NO AGREEMENT FOR BUSINESS COMBINATION OR OTHER TRANSACTION - NO STANDARDS FOR BUSINESS COMBINATION. The Company has no arrangement, agreement or understanding with respect to engaging in a merger with, joint venture with or acquisition of, a private entity. There can be no assurance the Company will be successful in identifying and evaluating suitable business opportunities or in concluding a business combination. Management has not identified any particular industry or specific business within an industry for evaluations. The Company has been in the developmental stage since inception and has no operations to date. Other than issuing shares to its original shareholders, the Company never commenced any operational activities. There is no assurance the Company will be able to negotiate a business combination on terms favorable to the Company. The Company has not established a specific length of operating history or a specified level of earnings, assets, net worth or other c riteria which it will require a target business opportunity to have achieved, and without which the Company would not consider a business combination in any form with such business opportunity. Accordingly, the Company may enter into a business combination with a business opportunity having no significant operating history, losses, limited or no potential for earnings, limited assets, negative net worth or other negative characteristics.
CONTINUED MANAGEMENT CONTROL, LIMITED TIME AVAILABILITY. While seeking a business combination, management anticipates devoting up to ten hours per month to the business of the Company. The Company's officers has not entered into a written employment agreement with the Company and is not expected to do so in the foreseeable future. The Company has not obtained key man life insurance on its officers and directors. Notwithstanding the combined limited experience and time commitment of management, loss of the services of this individual would adversely affect development of the Company's business and its likelihood of continuing operations. See "DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS."
CONFLICTS OF INTEREST OFFICERS AND DIRECTORS. The Company's officers and directors may in the future participate in other business ventures which compete directly with the Company. Additional conflicts of interest and non-arms length transactions may also arise in the future in the event the Company's officers and directors is involved in the management of any firm with which the Company transacts business. The Company's Board of Directors has adopted a resolution which prohibits the Company from completing a merger with, or acquisition of, any entity in which management serves as officers, directors or partner, or in which he or his family members own or hold any ownership interest. Management is not aware of any circumstances under which this policy could be changed while current management is in control of the Company. Michael Quinn Isley our officers and directors is as of the date of this prospectus not participating in any other blank check business ventures. See "DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS."
REPORTING REQUIREMENTS MAY DELAY OR PRECLUDE ACQUISITION. The Company will be required to provide certain information about significant acquisitions, including certified financial statements for the company acquired, covering one or two years, depending on the relative size of the acquisition. The time and additional costs that may be incurred by some target entities to prepare such statements may significantly delay or essentially preclude consummation of an otherwise desirable acquisition by the Company. Acquisition prospects that do not have or are unable to obtain the required audited statements may not be appropriate for acquisition so long as the reporting requirements of the 1934 Act are applicable.
LACK OF MARKET RESEARCH OR MARKETING ORGANIZATION. The Company has neither conducted, nor have others made available to it, results of market research indicating that market demand exists for the transactions contemplated by the Company. Moreover, the Company does not have, and does not plan to establish, a marketing organization. Even in the event demand is identified for a merger or acquisition contemplated by the Company, there is no assurance the Company will be successful in completing any such business combination.
LACK OF DIVERSIFICATION. The Company's proposed operations, even if successful, will in all likelihood result in the Company engaging in a business combination with only one business opportunity. Consequently, the Company's activities will be limited to those engaged in by the business opportunity which the Company merges with or acquires. The Company's inability to diversify its activities into a number of areas may subject the Company to economic fluctuations within a particular business or industry and therefore increase the risks associated with the Company's operations.
POSSIBLE INVESTMENT COMPANY ACT REGULATION. Although the Company will be subject to regulation under the Securities Exchange Act of 1933, management believes the Company will not be subject to regulation under the Investment Company Act of 1940, insofar as the Company will not be engaged in the business of investing or trading in securities. In the event the Company engages in business combinations which result in the Company holding passive investment interests in a number of entities, the Company could be subject to regulation under the Investment Company Act of 1940. In such event, the Company would be required to register as an investment company and could be expected to incur significant registration and compliance costs. The Company has obtained no formal determination from the Securities and Exchange Commission as to the status of the Company under the Investment Company Act of 1940 and, consequently, any violation of such Act would subject the Company to material a dverse consequences.
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PROBABLE CHANGE IN CONTROL AND MANAGEMENT. A business combination involving the issuance of the Company's common stock will, in all likelihood, result in shareholderss of a private company obtaining a controlling interest in the Company. Any such business combination may require management of the Company to sell or transfer all or a portion of the Company's common stock held by him, or resign as a member of the Board of Directors of the Company. The resulting change in control of the Company could result in removal of the present officers and directors of the Company and a corresponding reduction in or elimination of his participation in the future affairs of the Company.
REDUCTION OF PERCENTAGE SHARE OWNERSHIP FOLLOWING A BUSINESS COMBINATION. The Company's primary plan of operation is based upon a business combination with a private concern which, in all likelihood, would result in the Company issuing securities to shareholderss of such private company. The issuance of previously authorized and unissued common stock of the Company would result in reduction in percentage of shares owned by present and prospective shareholderss of the Company and would most likely result in a change in control or management of the Company.
DISADVANTAGES OF BLANK CHECK OFFERING. The Company may enter into a business combination with an entity that desires to establish a public trading market for its shares. A potential business combination candidate may find it more beneficial to go public directly rather than through a combination with a blank check company and the requirements of a post effective amendment and having to clear its application to trade using information provided by the Company rather than its own internal information.
FEDERAL AND STATE TAXATION OF BUSINESS COMBINATION. Federal and state tax consequences will, in all likelihood, be major considerations in any business combination the Company may undertake. Currently, such transactions may be structured so as to result in tax- free treatment to both companies, pursuant to various federal and state tax provisions. The Company intends to structure any business combination so as to minimize the federal and state tax consequences to both the Company and the target entity; however, there can be no assurance that such business combination will meet the statutory requirements of a tax-free reorganization or that the parties will obtain the intended tax-free treatment upon a transfer of stock or assets. A non-qualifying reorganization could result in the imposition of both federal and state taxes which may have an adverse effect on both parties to the transaction, reduce the future value of the shares and potentially discourage a business combina tion.
BLUE SKY CONSIDERATIONS MAY LIMIT SALES IN CERTAIN STATES. Because the securities registered hereunder have not been registered for resale under the blue sky laws of any state, and the Company has no current plans to register or qualify its shares in any state, the holders of such shares and persons who desire to purchase them in any trading market that might develop in the future, should be aware that there may be significant state blue sky restrictions upon the ability of new investors to purchase the securities which could reduce the size of the potential market. As a result of recent changes in federal law, non-issuer trading or resale of the Company's securities is exempt from state registration or qualification requirements in most states. However, some states may continue to attempt to restrict the trading or resale of blind-pool or "blank-check" securities. Accordingly, investors should consider any potential secondary market for the Company's securities to be a limited one.
NO ASSURANCE SHARES WILL BE SOLD The 2,000,000 Common Shares to be sold by the issuer are to be offered directly by the Company, and no individual, firm, or corporation has agreed to purchase or take down any of the shares. No assurance can be given that any or all of the Shares will be sold.
BUSINESS ANALYSIS BY NON PROFESSIONAL. Analysis of business operations will be undertaken by our officers and directors who is not a professional business analyst. Thus the depth of such analysis may not be as great as if undertaken by a professional which increases the risk that any merger or acquisition candidate may not continue successfully.
ARBITRARY OFFERING PRICE. The Offering Price of the Shares bears no relation to book value, assets, earnings, or any other objective criteria of value. They have been arbitrarily determined by the Company. There can be no assurance that, even if a public trading market develops for the Company's securities, the Shares will attain market values commensurate with the Offering Price.
NO ASSURANCE OF SUCCESSFUL MARKETING EFFORTS. One of the methods the Company will use to find potential merger or acquisition candidates will be to run classified ads in the Wall Street Journal and similar publications periodically seeking companies which are looking to merge with a public shell. Other methods included personal contacts and contacts gained through social networking. There is no evidence showing that these methods of identifying a suitable merger opportunity will be successful. Lack of identification and completion of a successful merger/acquisition will render the shares sold hereunder worthless.
NO PUBLIC MARKET FOR COMPANY'S SECURITIES. Prior to the Offering, there has been no public market for the Shares being offered. There can be no assurance that an active trading market will develop or that purchasers of the Shares will be able to resell their securities at prices equal to or greater than the respective initial public offering prices. The market price of the Shares may be affected significantly by factors such as announcements by the Company or its competitors, variations in the Company's results of operations, and general market conditions. Movements in prices of stock may also affect the market price in general. As a result of these factors, purchasers of the Shares offered hereby may not be able to liquidate an investment in the Shares readily or at all.
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SHARES ELIGIBLE FOR FUTURE SALE. All of the 9,000,000 Shares, which are held by management, have been issued in reliance on the private placement exemption under the Securities Act of 1933, as amended ("Act") (pending effectiveness of this registration statement). Such Shares will not be available for sale in the open market except in reliance upon Rule 144 under the Act. In general, under Rule 144 a person (or persons whose shares are aggregated) who has beneficially owned shares acquired in a non-public transaction for at least one year, including persons who may be deemed Affiliates of the Company (as that term is defined under the Act) would be entitled to sell such shares. This offering will make a substantial number of the Shares owned by management eligible for sale in the future which may adversely affect the market price of the Common Stock. Our officers and directors shares will remain bound by the affiliate resale restrictions enumerated in Rule 144 of the Securities Act of 1933.
SUBSCRIPTIONS IRREVOCABLE. Investors subscriptions are irrevocable and therefore the investor’s funds may be held in escrow for up to a year and then returned to the investor with minimal (if any) return.
Special Note Regarding Forward-Looking Statements
This prospectus contains forward-looking statements about our business, financial condition and prospects that reflect our management's assumptions and beliefs based on information currently available. We can give no assurance that the expectations indicated by such forward-looking statements will be realized. If any of our assumptions should prove incorrect, or if any of the risks and uncertainties underlying such expectations should materialize, the actual results may differ materially from those indicated by the forward-looking statements.
The key factors that are not within our control and that may have a direct bearing on operating results include, but are not limited to, acceptance of the proposed services that we expect to market, our ability to establish a substantial customer base, managements' ability to raise capital in the future, the retention of key employees and changes in the regulation of the industry in which we function.
There may be other risks and circumstances that management may be unable to predict. When used in this document, words such as, "believes," "expects," "intends," "plans," "anticipates," "estimates" and similar expressions are intended to identify and qualify forward-looking statements, although there may be certain forward-looking statements not accompanied by such expressions.
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ITEM 4 - USE OF PROCEEDS
Without realizing the minimum offering proceeds, the Company will not be able to commence planned operations and implement our business plan. Please refer to the section, herein, titled "Management's Discussion and Plan of Operation" for further information. In the case that the Offering does not reach the maximum and the total proceeds are less than those indicated in the table, we will have the discretion to apply the available net proceeds to various indicated uses within the dollar limits established in the table above.
The Company intends to use the proceeds from this offering as follows:
| Minimum |
| 50% of Maximum |
| Maximum |
| |||
Application Of Proceeds | $ | % of total | % of net proceeds | $ | % of total | % of net proceeds | $ | % of total | % of net proceeds |
|
|
|
|
|
|
|
|
|
|
Total Offering Proceeds | $20,000 | 100.00% |
| $20,000 | 100.00% |
| $40,000 | 100.00% |
|
Net Offering Proceeds | $18,000 | 90.00% | 100% | $50,000 | 90.00% | 100% | $100,000 | 90.00% | 100% |
Working Capital(1) - | $18,000 | 90.00% | 100% | $45,000 | 90.00% | 100% | $90,000 | 90.00% | 10% |
|
|
|
|
|
|
|
|
|
|
Total Use of Proceeds | $20,000 | 100.00% |
| $50,000 | 100.00% |
| $100,000 | 100.00% |
|
Notes:
(1) The category of General Working Capital may include, but not be limited to, printing costs, postage, communication services, overnight delivery charges, additional professional fees, consulting fees, and other general operating expenses.
ITEM 5 - DETERMINATION OF OFFERING PRICE
DETERMINATION OF OFFERING PRICE
The offering price of the common stock has been arbitrarily determined and bears no relationship to any objective criterion of value. The price does not bear any relationship to our assets, book value, historical earnings or net worth. No valuation or appraisal has been prepared for our business. We cannot assure you that a public market for our securities will develop or continue or that the securities will ever trade at a price higher than the offering price.
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ITEM 6 – DILUTION
DILUTION
"Dilution" represents the difference between the offering price of the shares of common stock and the net book value per share of common stock immediately after completion of the offering. "Net book value" is the amount that results from subtracting total liabilities from total assets. In this offering, the level of dilution is increased as a result of the relatively low book value of our issued and outstanding stock. Assuming all shares offered herein are sold, giving effect to the receipt of the maximum estimated proceeds of this offering net of the offering expenses, our net book value will be $90,000 or $0.0107035 per share. Therefore, the purchasers of the common stock in this offering will incur an immediate and substantial dilution of approximately $0.039297 per share while our present stockholders will receive an increase of $0.08733 per share in the net tangible book value of the shares they hold. This will result in a 78.59% dilution for purch asers of stock in this offering.
The following table illustrates the dilution to the purchasers of the common stock in this offering:
| Minimum |
| Maximum |
| Offering |
| Offering |
Offering Price Per Share | $0.05 |
| $0.05 |
Book Value Per Share Before the Offering | ($0.00007633) |
| ($0.00007633) |
Book Value Per Share After the Offering | $0.0020546 |
| $0.0090285 |
Net Increase to Original Shareholders | $0.002131 |
| $0.009105 |
Decrease in Investment to New Shareholders | $0.047945 |
| $0.040972 |
Dilution to New Shareholders (%) | 95.89% |
| 81.94% |
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ITEM 7 – SELLING SHAREHOLDERS
SELLING SHAREHOLDERS
|
| No. Of Shares |
| Percentage of Shares |
| No. of Shares |
| Percentage of Shares |
Name |
| Before Offering |
| Before Offering |
| After Offering |
| After Offering |
|
|
|
|
|
|
|
|
|
Michael Quinn Isley |
| 4,500,000 |
| 100% |
| 0 |
| 0% |
Chancey White |
| 4,500,000 |
| 100% |
| 0 |
| 0% |
*The selling shareholders has been deemed an underwriter.
ITEM 8 - PLAN OF DISTRIBUTION
PLAN OF DISTRIBUTION
There is no public market for our common stock. Our common stock is currently held by one shareholders. Therefore, the current and potential market for our common stock is limited and the liquidity of our shares may be severely limited. To date, we have made no effort to obtain listing or quotation of our securities on a national stock exchange or association. The Company has not identified or approached any broker/dealers with regard to assisting us to apply for such listing. The Company is unable to estimate when we expect to undertake this endeavor or that we will be successful. In the absence of listing, no market is available for investors in our common stock to sell their shares. The Company cannot guarantee that a meaningful trading market will develop or that we will be able to get our common stock listed for trading.
If the stock ever becomes tradable, the trading price of our common stock could be subject to wide fluctuations in response to various events or factors, many of which are beyond our control. As a result, investors may be unable to sell their shares at or greater than the price at which they are being offered.
This offering will be conducted on a best-efforts basis utilizing the efforts of Michael Quinn Isley, an officers and directors of the Company. Mr. Isley must sell all of the shares of the new issue offering prior to sale of any shares held by him. New issue offering refers to the shares offered for sale by the company. Potential investors include, but are not limited to, family, friends and acquaintances of Michael Quinn Isley. The intended methods of communication include, without limitation, telephone and personal contact. In their endeavors to sell this offering, they will not use any mass advertising methods such as the internet or print media. Every potential purchaser will be provided with a prospectus at the same time as the subscription agreement.
Funds received by the sales agent in connection with sales of our securities will be transmitted immediately into a escrow account until the minimum sales threshold is reached. There can be no assurance that all, or any, of the shares will be sold.
Michael Quinn Isley will not receive commissions for any sales originated on our behalf. We believe that Michael Quinn Isley is exempt from registration as a broker under the provisions of Rule 3a4-1 promulgated under the Securities Exchange Act of 1934. In particular, as to Michael Quinn Isley, he:
1. Is not subject to a statutory disqualification, as that term is defined in Section 3(a)39 of the Act, at the time of his or her participation; and
2. Is not to be compensated in connection with his participation by the payment of commissions or other remuneration based either directly or indirectly on transactions in securities; and
3. Is not an associated person of a broker or dealer; and
4. Meets the conditions of the following:
a. Primarily performs, or is intended primarily to perform at the end of the offering, substantial duties for or on behalf of the issuer otherwise than in connection with transactions in securities; and
b. Was not a broker or dealer, or associated persons of a broker or dealer, within the preceding 12 months; and
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c. Did not participate in selling an offering of securities for any issuer more than once every 12 months other than in reliance on paragraphs within this section, except that for securities issued pursuant to rule 415 under the Securities Act of 1933, the 12 months shall begin with the last sale of any security included within one rule 415 registration.
Michael Quinn Isley, an officers or directors, shall be deemed an underwriter for the purposes of this offering.
There can be no assurance that all, or any, of the shares will be sold. As of this date, we have not entered into any agreements or arrangements for the sale of the shares with any broker/dealer or sales agent. However, if we were to enter into such arrangements, we will file a post effective amendment to disclose those arrangements because any broker/dealer participating in the offering would be acting as an underwriter and would have to be so named herein.
In order to comply with the applicable securities laws of certain states, the securities may not be offered or sold unless they have been registered or qualified for sale in such states or an exemption from such registration or qualification requirement is available and with which we have complied. The purchasers in this offering and in any subsequent trading market must be residents of such states where the shares have been registered or qualified for sale or an exemption from such registration or qualification requirement is available. As of this date, we have not identified the specific states where the offering will be sold. We will file a pre-effective amendment indicating which state(s) the securities are to be sold pursuant to this registration statement.
The Company is conducting a "Blank Check" offering subject to Rule 419 of Regulation C as promulgated by the U.S. Securities and Exchange Commission (the "S.E.C.") under the Securities Act of 1933, as amended (the "Securities Act").The net offering proceeds, after deduction for offering expenses and sales commissions, and the securities to be issued to investors must be deposited in an escrow account (the "Deposited Funds" and "Deposited Securities," respectively). While held in the escrow account, the deposited securities may not be traded or transferred other than by will or the laws of descent and distribution, or pursuant to a qualified domestic relations order as defined by the Internal Revenue Code of 1986 as amended (26 U.S.C. 1 et seq.), or Title 1 of the Employee Retirement Income Security Act (29 U.S.C. 1001 et seq.), or the rules thereunder. Except for an amount up to 10% of the deposited funds otherwise releasab le under Rule 419, the deposited funds and the deposited securities may not be released until an acquisition meeting certain specified criteria has been consummated and a sufficient number of investors reconfirm their investment in accordance with the procedures set forth in Rule 419. Pursuant to these procedures, a new prospectus, which describes an acquisition candidate and its business and includes audited financial statements, will be delivered to all investors. The Company must return the pro rata portion of the deposited funds to any investor who does not elect to remain an investor. Unless a sufficient number of investors elect to remain investors, all investors will be entitled to the return of a pro rata portion of the deposited funds (plus interest) and none of the deposited securities will be issued to investors. In the event an acquisition is not consummated within 18 months of the effective date of this prospectus, the deposited funds will be returned on a pro rata basis to all investors.
The proceeds from the sale of the shares in this offering will be payable to Harold Gewerter, Esq. Trust Account fbo Solquest Corp ("Escrow Account") and will be deposited in a non-interest bearing bank account at Bank of the West until the escrow conditions are met. In the event that interest is earned on the deposit such interest shall be for the benefit of the purchasers from this offering. No interest will be paid to any shareholders or the Company. All subscription agreements and checks are irrevocable. All subscription funds will be held in the Escrow Account pending achievement of the Minimum Offering and no funds shall be released to Solquest Corp until such a time as the escrow conditions are met. The escrow agent will continue to receive funds and perform additional disbursements until either the Maximum Offering is achieved or a period of 180 days from the effective date of this offering expires (or an additional 180 days if so extended by the Company) , whichever event first occurs. Thereafter, this escrow agreement shall terminate. If the Minimum Offering is not achieved within 180 days of the date of this prospectus (or an additional 180 days if so extended by the Company), all subscription funds will be returned to investors promptly without interest or deduction of fees upon the expiration of 180 days or the second 180 days if such extension is extended . The fee of the Escrow Agent is $1,500.00. [See Exhibit 99(a)].
Investors can purchase common stock in this offering by completing a Subscription Agreement [attached hereto as Exhibit 99(b)] and sending it together with payment in full. All payments must be made in United States currency either by personal check, bank draft, or cashiers check. There is no minimum subscription requirement. All subscription agreements and checks are irrevocable. The Company expressly reserves the right to either accept or reject any subscription. Any subscription rejected will be returned to the subscriber within 5 business days of the rejection date. Furthermore, once a subscription agreement is accepted, it will be executed without reconfirmation to or from the subscriber. Once we accept a subscription, the subscriber cannot withdraw it.
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ITEM 9 - DESCRIPTION OF SECURITIES TO BE REGISTERED
COMMON STOCK
Solquest Corp is authorized to issue 100,000,000 shares of common stock, $0.0001 par value. The company has issued 4,000,000 shares of common stock to date held by one (1) shareholders of record.
The holders of Solquest Corp’s common stock:
1.
Have equal ratable rights to dividends from funds legally available therefore, when, as and if declared by the Board of Directors;
2.
Are entitled to share ratably in all of assets available for distribution to holders of common stock upon liquidation, Dissolution, or winding up of corporate affairs;
3.
Do not have preemptive, subscription or conversion rights and there are no redemption or sinking fund provisions or rights; and
4.
Are entitled to one vote per share on all matters on which stockholders may vote.
All shares of common stock now outstanding are fully paid for and non assessable and all shares of common stock which are the subject of this offering, when issued, will be fully paid for and non assessable.
The SEC has adopted rules that regulate broker/dealer practices in connection with transactions in penny stocks. Penny stocks generally are equity securities with a price of less than $5.00 (other than securities registered on certain national securities exchanges or quoted on the NASDAQ system, provided that current price and volume information with respect to transactions in such securities is provided by the exchange system). The penny stock rules require a broker/dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document prepared by the SEC that provides information about penny stocks and the nature and level of risks in the penny stock market. The broker/dealer also must provide the customer with bid and offer quotations for the penny stock, the compensation of the broker/dealer, and its salesperson in the transaction, and monthly account statements showing the market value of each penny stoc k held in the customer's account. In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from such rules, the broker/dealer must make a special written determination that a penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction. These heightened disclosure requirements may have the effect of reducing the number of broker/dealers willing to make a market in our shares, reducing the level of trading activity in any secondary market that may develop for our shares, and accordingly, customers in our securities may find it difficult to sell their securities, if at all.
The Company has no current plans to either issue any preferred stock or adopt any series, preferences or other classification of preferred stock.
PREEMPTIVE RIGHTS
No holder of any shares of Solquest Corp stock has preemptive or preferential rights to acquire or subscribe for any unissued shares of any class of stock or any unauthorized securities convertible into or carrying any right, option or warrant to subscribe for or acquire shares of any class of stock not disclosed herein.
NON-CUMULATIVE VOTING
Holders of Solquest Corp common stock do not have cumulative voting rights, which means that the holders of more than 50% of the outstanding shares, voting for the election of directors, can elect all of the directors to be elected, if they so choose, and, in such event, the holders of the remaining shares will not be able to elect any directors.
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CASH DIVIDENDS
As of the date of this prospectus, Solquest Corp has not paid any cash dividends to stockholders. The declaration of any future cash dividend will be at the discretion of the Board of Directors and will depend upon earnings, if any, capital requirements and our financial position, general economic conditions, and other pertinent conditions. The Company does not intend to pay any cash dividends in the foreseeable future, but rather to reinvest earnings, if any, in business operations.
REPORTS
After this offering, Solquest Corp will make available to its shareholderss annual financial reports certified by independent accountants, and may, at its discretion, furnish unaudited quarterly financial reports.
ITEM 10 - INTEREST OF NAMED EXPERTS AND COUNSEL
INTEREST OF NAMED EXPERTS AND COUNSEL
Harold Gewerter is legal counsel to the Company. Mr. Gewerter has provided an opinion on the validity of the common stock to be issued pursuant to this Registration Statement. Mr. Gewerter has also been retained as special counsel to our Company for purposes of facilitating our efforts in securing registration before the Commission and eventual listing on the OTCBB®.
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ITEM 11 - INFORMATION WITH RESPECT TO THE REGISTRANT
DESCRIPTION OF BUSINESS
Solquest Corp (the "Company"), was incorporated on April 6, 2009 under the laws of the State of Nevada, to engage in any lawful corporate undertaking, including, but not limited to, selected mergers and acquisitions. The Company has been in the developmental stage since inception and has no operations date. Other than issuing shares to its original shareholders, the Company never commenced any operational activities.
The Company was formed by Michael Quinn Isley, the initial directors, for the purpose of creating a corporation which could be used to consummate a merger or acquisition. Mr. Isley serves as President, Secretary, Treasurer and Directors. Mr. Isley determined next to proceed with filing a Form S-1.
Mr. Isley, the President and Directors, elected to commence implementation of the Company's principal business purpose, described below under “Plan of Operation". As such, the Company can be defined as a "shell" company, whose purpose at this time is to locate and consummate a merger or acquisition with a private entity.
The proposed business activities described herein classify the Company as a "blank check" company. Many states have enacted statutes, rules and regulations limiting the sale of securities of "blank check" companies in their respective jurisdictions. Management does not intend to undertake any efforts to cause a market to develop in the Company's securities until such time as the Company has successfully implemented its business plan described herein. Accordingly, each shareholders of the Company has executed and delivered a "lock-up" letter agreement, affirming that he/she will not sell his/her respective shares of the Company's common stock until such time as the Company has successfully consummated a merger or acquisition and the Company is no longer classified as a "blank check" company. In order to provide further assurances that no trading will occur in the Company's securities until a merger or acquisition has been consummated, each shareholders has agreed to place his/her respective stock certificate with the Company's legal counsel, who will not release these respective certificates until such time as legal counsel has confirmed that a merger or acquisition has been successfully consummated. However, while management believes that the procedures established to preclude any sale of the Company's securities prior to closing of a merger or acquisition will be sufficient, there can be no assurances that the procedures established herein will unequivocally limit any shareholders's ability to sell their respective securities before such closing.
Number of Total Employees and Number of Full Time Employees
Solquest Corp is currently in the development stage. During this development period, we plan to rely exclusively on the services of our officers and directors to establish business operations and perform or supervise the minimal services required at this time. We believe that our operations are currently on a small scale and manageable by us. There are no full or part-time employees. The responsibilities are mainly administrative at this time, as our operations are minimal.
DESCRIPTION OF PROPERTY
We use a corporate office located at 5790 Rogers Street, Las Vegas, Nevada 89118. Office space, utilities and storage are currently being provided free of charge at the present time at this address which is Mr. Isley’s residence. There are currently no proposed programs for the renovation, improvement or development of the facilities currently in use.
LEGAL PROCEEDINGS
To the best of our knowledge, Michael Quinn Isley, our officers and directors has not been convicted in a criminal proceeding.
To the best of our knowledge, Michael Quinn Isley, our officers and directors has not been permanently or temporarily enjoined, barred, suspended or otherwise limited from involvement in any type of business, securities or banking activities.
To the best of our knowledge, Michael Quinn Isley, our officers and directors has not been convicted of violating any federal or state securities or commodities law.
There are no known pending legal or administrative proceedings against the Company.
To the best of our knowledge, no officers, directors, significant employee or consultant has had any bankruptcy petition filed by or against any business of which such person was a general partner or executive officers either at the time of the bankruptcy filing or within two years prior to that time.
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MARKET PRICE OF AND DIVIDENDS ON THE ISSUER’S COMMON STOCK
Market Price
As of the date of this prospectus, there is no public market in Solquest Corp common stock. This prospectus is a step toward creating a public market for our stock, which may enhance the liquidity of our shares. However, there can be no assurance that a meaningful trading market will develop. Solquest Corp and its management make no representation about the present or future value of our common stock.
As of the date of this prospectus,
1.
There are no outstanding options or warrants to purchase, or other instruments convertible into, common equity of Solquest Corp;
2.
There are currently 9,000,000 shares of our common stock held by our officers and directors that are not eligible to be sold pursuant to Rule 144 under the Securities Act;
3.
Other than the stock registered under this Registration Statement, there is no stock that
has been proposed to be publicly offered resulting in dilution to the current shareholders.
All of the presently outstanding shares of common stock (4,000,000) are "restricted securities" as defined under Rule 144 promulgated under the Securities Act and may only be sold pursuant to an effective registration statement or an exemption from registration, if available. The SEC has adopted final rules amending Rule 144, which became effective on February 15, 2008. Pursuant to the new Rule 144, one year must elapse from the time a “shell company”, as defined in Rule 405, ceases to be a “shell company” and files Form 10 information with the SEC, before a restricted shareholders can resell their holdings in reliance on Rule 144. Form 10 information is equivalent to information that a company would be required to file if it were registering a class of securities on Form 10 under the Securities and Exchange Act of 1934 (the “Exchange Act”). Under the amended Rule 144, restricted or unrestricted securities, that were initially issued by a reporting or non-reporting shell company or an Issuer that has at anytime previously a reporting or non-reporting shell company as defined in Rule 405, can only be resold in reliance on Rule 144 if the following conditions are met: (1) the issuer of the securities that was formerly a reporting or non-reporting shell company has ceased to be a shell company; (2) the issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act; (3) the issuer of the securities has filed all reports and material required to be filed under Section 13 or 15(d) of the Exchange Act, as applicable, during the preceding twelve months (or shorter period that the Issuer was required to file such reports and materials), other than Form 8-K reports; and (4) at least one year has elapsed from the time the issuer filed the current Form 10 type information with the SEC reflecting its status as an entity that is not a shell company.
At the present time, the Company is classified as a “shell company” under Rule 405 of the Securities Act. As such, all restricted securities presently held by the founders of the Company may not be resold in reliance on Rule 144 until: (1) the Company files Form 10 information with the SEC when it ceases to be a “shell company”; (2) the Company has filed all reports as required by Section 13 and 15(d) of the Securities Act for twelve consecutive months; and (3) one year has elapsed from the time the Company files the current Form 10 type information with the SEC reflecting its status as an entity that is not a shell company.
HOLDERS
As of the date of this prospectus, Solquest Corp has 9,000,000 shares of $0.001 par value common stock issued and outstanding held by 1 shareholders of record.
DIVIDENDS
We have neither declared nor paid any cash dividends on either our preferred or common stock. For the foreseeable future, we intend to retain any earnings to finance the development and expansion of our business, and do not anticipate paying any cash dividends on our preferred or common stock. Any future determination to pay dividends will be at the discretion of the Board of Directors and will be dependent upon then existing conditions, including its financial condition, results of operations, capital requirements, contractual restrictions, business prospects, and other factors that the Board of Directors considers relevant.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This section must be read in conjunction with the Audited Financial Statements included in this prospectus.
22
PLAN OF OPERATION
Solquest Corp was incorporated on April 6, 2009.
The Registrant intends to seek to acquire assets or shares of an entity actively engaged in business which generates revenues, in exchange for its securities. The Registrant has no acquisitions in mind and has not entered into any negotiations regarding such an acquisition. Neither the Company's officers, directors, promoters nor any affiliates thereof have engaged in any preliminary contact or discussions with any representative of any other company regarding the possibility of an acquisition or merger between the Company and such other company as of the date of this registration statement.
While the Company will attempt to obtain audited financial statements of a target entity, there is no assurance that such audited financial statements will be available prior to the consummation of the merger/acquisition . The Board of Directors does intend to obtain certain assurances of value of the target entity's assets prior to consummating such a transaction. These assurances consist mainly of financial statements. The Company will also examine business, occupational and similar licenses and permits, physical facilities, trademarks, copyrights, and corporate records including articles of incorporation, bylaws and minutes if applicable. In the event that no such assurances are provided the Company will not move forward with a combination with this target. Further assurances must be provided that an audited statement would be provided within seventy-five days after closing of such a transaction. Closing documents relative thereto will include representations that the v alue of the assets conveyed to or otherwise so transferred will not materially differ from the representations included in such closing documents.
The Registrant has no full time employees. The Registrant's officers have agreed to allocate a portion of their time to the activities of the Registrant, without compensation. Management anticipates that the business plan of the Company can be implemented by our officers devoting approximately 10 hours per month to the business affairs of the Company and, consequently, conflicts of interest may arise with respect to the limited time commitment by such officers. See "DIRECTORS, EXECUTIVE OFFICERS"
The Company is filing this registration statement on a voluntary basis because the primary attraction of the Registrant as a merger partner or acquisition vehicle will be its status as an SEC reporting company. Any business combination or transaction will likely result in a significant issuance of shares and substantial dilution to present stockholders of the Registrant.
GENERAL BUSINESS PLAN
The Company's purpose is to seek, investigate and, if such investigation warrants, acquire an interest in business opportunities presented to it by persons or firms who or which desire to seek the perceived advantages of an Exchange Act registered corporation. The Company will not restrict its search to any specific business, industry, or geographical location and the Company may participate in a business venture of virtually any kind or nature. This discussion of the proposed business is purposefully general and is not meant to be restrictive of the Company's virtually unlimited discretion to search for and enter into potential business opportunities. Management anticipates that it will be able to participate in only one potential business venture because the Company has nominal assets and limited financial resources. See "Financial Statements." This lack of diversification should be considered a substantial risk to shareholderss of the Company because it will n ot permit the Company to offset potential losses from one venture against gains from another.
The Company may seek a business opportunity with entities which have recently commenced operations, or which wish to utilize the public marketplace in order to raise additional capital in order to expand into new products or markets, to develop a new product or service, or for other corporate purposes. The Company may acquire assets and establish wholly-owned subsidiaries in various businesses or acquire existing businesses as subsidiaries.
One of the methods the Company will use to find potential merger or acquisition candidates will be to run classified ads in the Wall Street Journal and similar publications periodically seeking companies which are looking to merge with a public shell. Other methods included personal contacts and contacts gained through social networking. There is no evidence showing that these methods of identifying a suitable merger opportunity will be successful.
The Company anticipates that the selection of a business opportunity in which to participate will be complex and extremely risky. Due to general economic conditions, rapid technological advances being made in some industries and shortages of available capital, management believes that there are numerous firms seeking the perceived benefits of a publicly registered corporation. Such perceived benefits may include facilitating or improving the terms on which additional equity financing may be sought, providing liquidity for incentive stock options or similar benefits to key employees, providing liquidity (subject to restrictions of applicable statutes) for all shareholderss and other factors. Business opportunities may be available in many different industries and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex.
23
The Company has, and will continue to have, no capital with which to provide the owners of business opportunities with any significant cash or other assets. However, management believes the Company will be able to offer owners of acquisition candidates the opportunity to acquire a controlling ownership interest in a publicly registered company without incurring the cost and time required to conduct an initial public offering. The costs of an initial public offering may include substantial attorney and auditor fees and the time factor can vary widely (could be as short as a month or take several years for example) and is unpredictable. A business combination with The Company may eliminate some of those unpredictable variables as the initial review process on a large active business could easily extend over a period of a year or more requiring multiple audits and opinions prior to clearance . On the other hand a business combination with the Company may raise other variables such as the history of the Company having been out of the targets control and knowledge. Thus they have to rely on the representations of the Company in their future filings and decisions. In addition, the additional step of a business combination may increase the time necessary to process and clear an application for trading. The owners of the business opportunities will, however, incur significant legal and accounting costs in connection with the acquisition of a business opportunity, including the costs of preparing Form 8-K's, 10-K's or 10-KSB's, agreements and related reports and documents. If an entity is deemed a Shell Company the 8-K which must be filed upon the completion of a merger or acquisition requires all of the information normally disclosed in the filing of a Form 10. Once deemed a Shell Company, Rule 144 imposes additional restrictions on securities sought to be sold or traded under Rule 144. The Securities Exchange Act of 1934 (the "34 Act"), specifically requires that any merge r or acquisition candidate comply with all applicable reporting requirements, which include providing audited financial statements to be included within the numerous filings relevant to complying with the 34 Act. Nevertheless, the officers and directors of the Company has not conducted market research and is not aware of statistical data which would support the perceived benefits of a merger or acquisition transaction for the owners of a business opportunity.
The analysis of new business opportunities will be undertaken by, or under the supervision of, the officers and directors of the Company, who is not a professional business analyst. Management intends to concentrate on identifying preliminary prospective business opportunities which may be brought to its attention through present associations of the Company's officers and shareholders. In analyzing prospective business opportunities, management will consider such matters as the available technical, financial and managerial resources; working capital and other financial requirements; history of operations, if any; prospects for the future; nature of present and expected competition; the quality and experience of management services which may be available and the depth of that management; the potential for further research, development, or exploration; specific risk factors not now foreseeable but which then may be anticipated to impact the proposed activities of the Company ; the potential for growth or expansion; the potential for profit; the perceived public recognition or acceptance of products, services, or trades; name identification; and other relevant factors. Management will meet personally with management and key personnel of the business opportunity as part of his investigation. To the extent possible, the Company intends to utilize written reports and personal investigation to evaluate the above factors. The Company will not acquire or merger with any company for which audited financial statements cannot be obtained within a reasonable period of time after closing of the proposed transaction.
Management of the Company, while not experienced in matters relating to the new business of the Company, will rely upon his own efforts in accomplishing the business purposes of the Company. It is not anticipated that any outside consultants or advisors, other than the Company's legal counsel and accountants, will be utilized by the Company to effectuate its business purposes described herein. However, if the Company does retain such an outside consultant or advisor, any cash fee earned by such party will need to be paid by the prospective merger/acquisition candidate, as the Company has no cash assets with which to pay such obligation. There have been no discussions, understandings, contracts or agreements with any outside consultants and none are anticipated in the future. In the past, the Company's management has never used outside consultants or advisors in connection with a merger or acquisition.
The Company will not restrict its search for any specific kind of firms, but may acquire a venture which is in its preliminary or development stage, which is already in operation, or in essentially any stage of its corporate life. It is impossible to predict at this time the status of any business in which the Company may become engaged, in that such business may need to seek additional capital, may desire to have its shares publicly traded, or may seek other perceived advantages which the Company may offer. However, the Company does not intend to obtain funds in one or more private placements to finance the operation of any acquired business opportunity until such time as the Company has successfully consummated such a merger or acquisition. The Company also has no plans to conduct any offerings under Regulation S.
ACQUISITION OF OPPORTUNITIES
In implementing a structure for a particular business acquisition, the Company may become a party to a merger, consolidation, reorganization, joint venture, or licensing agreement with another corporation or entity. It may also acquire stock or assets of an existing business. On the consummation of a transaction, it is probable that the present management and shareholders of the Company will no longer be in control of the Company. In addition, the Company's directors may, as part of the terms of the acquisition transaction, resign and be replaced by new directors without a vote of the Company's shareholderss.
24
It is anticipated that the Company's principal shareholders may actively negotiate or otherwise consent to the purchase of a portion of their common stock as a condition to, or in connection with, a proposed merger or acquisition transaction at a price not to exceed $0.05 per share. Mr. Isley may not sell any shares at less than $0.05 per share even if other shareholderss are offered less than that amount. No transfer or sales of any shares held in escrow shall be permitted other than by will or the laws of descent and distribution, or pursuant to a qualified domestic relations order as defined by the Internal Revenue Code of 1986 as amended (26 U.S.C. 1 et seq.), or Title 1 of the Employee Retirement Income Security Act (29 U.S.C. 1001 et seq.), or the rules thereunder. Any and all such sales will only be made in compliance with the securities laws of the United States and any applicable state.
It is anticipated that any securities issued in any such reorganization would be issued in reliance upon exemption from registration under applicable federal and state securities laws. In some circumstances, however, as a negotiated element of its transaction, the Company may agree to register all or a part of such securities immediately after the transaction is consummated or at specified times thereafter. If such registration occurs, of which there can be no assurance, it will be undertaken by the surviving entity after the Company has successfully consummated a merger or acquisition and the Company is no longer considered a "shell" company. Until such time as this occurs, the Company will not attempt to register any additional securities. The issuance of substantial additional securities and their potential sale into any trading market which may develop in the Company's securities may have a depressive effect on the value of the Company's securities in the fut ure, if such a market develops, of which there is no assurance.
While the actual terms of a transaction to which the Company may be a party cannot be predicted, it may be expected that the parties to the business transaction will find it desirable to avoid the creation of a taxable event and thereby structure the acquisition in a so-called "tax- free" reorganization under Sections 368a or 351 of the Internal Revenue Code (the "Code").
With respect to any merger or acquisition, negotiations with target company management is expected to focus on the percentage of the Company which target company shareholderss would acquire in exchange for all of their shareholdings in the target company. Depending upon, among other things, the target company's assets and liabilities, the Company's shareholderss will in all likelihood hold a substantially lesser percentage ownership interest in the Company following any merger or acquisition. The percentage ownership may be subject to significant reduction in the event the Company acquires a target company with substantial assets. Any merger or acquisition effected by the Company can be expected to have a significant dilutive effect on the percentage of shares held by the Company's then-shareholderss.
The Company will participate in a business opportunity only after the negotiation and execution of appropriate written agreements. Although the terms of such agreements cannot be predicted, generally such agreements will require some specific representations and warranties by all of the parties thereto, will specify certain events of default, will detail the terms of closing and the conditions which must be satisfied by each of the parties prior to and after such closing, will outline the manner of bearing costs, including costs associated with the Company's attorneys and accountants, will set forth remedies on default and will include miscellaneous other terms.
As stated herein above, the Company will not acquire or merge with any entity which cannot provide independent audited financial statements within a reasonable period of time after closing of the proposed transaction. The Company will need to file such audited statements as part of its post effective amendment (reconfirmation). The Company is subject to all of the reporting requirements included in the 34 Act. Included in these requirements is the affirmative duty of the Company to file independent audited financial statements as part of its Form 8-K to be filed with the Securities and Exchange Commission upon consummation of a merger or acquisition, as well as the Company's audited financial statements included in its annual report on Form 10-K (or 10-KSB, as applicable). If such audited financial statements are not available at closing, or within time parameters necessary to insure the Company's compliance with the requirements of the 33 and 34 Act, or if the audited fin ancial statements provided do not conform to the representations made by the candidate to be acquired in the closing documents the Company will not proceed with the transaction or post effective amendment/reconfirmation offering . In the event that a previously approved target acquisition was later voided by management, shareholderss may be left without an operating company and thus the value of their shares would be greatly diminished.
The Company's officers and shareholders have verbally agreed that he will advance to the Company any additional funds which the Company needs for operating capital and for costs in connection with searching for or completing an acquisition or merger. He has also agreed that such advances will be made interest free without expectation of repayment. There is no dollar cap on the amount of money which he may advance to the Company. The Company will not borrow any funds from anyone for the purpose of repaying advances made by the shareholders, and the Company will not borrow any funds to make any payments to the Company's promoters, management or their affiliates or associates.
The Board of Directors has passed a resolution which prohibits the Company from completing an acquisition or merger with any entity in which the Company's Officers, Directors and principal shareholders or his affiliates or associates serve as officers or directors or hold any ownership interest. Management is not aware of any circumstances under which this policy, through their own initiative may be changed.
25
COMPETITION
The Company will remain an insignificant participant among the firms which engage in the acquisition of business opportunities. There are many established venture capital and financial concerns which have significantly greater financial and personnel resources and technical expertise than the Company. In view of the Company's combined extremely limited financial resources and limited management availability, the Company will continue to be at a significant competitive disadvantage compared to the Company's competitors.
OFF-BALANCE SHEET ARRANGEMENTS
We do not have any off-balance sheet arrangements.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
Since inception until the present time, the principal independent accounting for the Company has neither resigned (nor declined to stand for reelection) nor have been dismissed. The independent accountant for the Company is 3441 S Eastern Avenue, Suite 400, Las Vegas, Nevada 89140.
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS
Our directors is elected by the stockholders to a term of one year and serve until a successor is elected and qualified. Our officers is appointed by the Board of Directors to a term of one year and serve until a successor is duly elected and qualified, or until removed from office. Our Board of Directors does not have any nominating, auditing or compensation committees.
The following table sets forth certain information regarding our executive officers and directors as of the date of this prospectus:
Name | Age | Position | Period of Service(1) |
|
|
|
|
Michael Quinn Isley(2) | 43 | President, Treasurer, and Director | Inception – Current |
|
|
|
|
Chancey White(2) | 36 | Secretary, Director | Inception - Current |
Notes:
(1)Our directors will hold office until the next annual meeting of the stockholders, typically held on or near the anniversary date of inception, and until successors have been elected and qualified. At the present time, our officers was appointed by our directors and will hold office until resignation or removal from office.
(2)Michael Quinn Isley and Chancey White have outside interests and obligations to other than Solquest Corp. Theye intend to spend approximately 10 hours per week on our business affairs. At the date of this prospectus, Solquest Corp is not engaged in any transactions, either directly or indirectly, with any persons or organizations considered promoters.
BACKGROUND OF DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS
Michael Quinn Isley, President, Director, age 43, has extensive experience with start-up and development stage companies. In 1988 to 1990 Mr. Isley worked in the family business in Oil fields of South Texas working in several aspects of the oil business which included oil well operations, and oil and gas pipeline construction and maintenance. From 1990 to 1993 Mr. Isley worked for Handcraft Homes a custom home builder in San Antonio, Texas. From 1993 to 1996 Mr. Isley worked for the Dwight Thompson Ministry in Los Angeles. From 1996 to 1998 Mr. Isley worked for Emerald Asphalt and Concrete in Santa Ana, California. In 1998 Mr. Isley moved to Las Vegas Nevada and established Quinn Concrete Pumping one of southern Nevada’s leading concrete pumping companies. Quinn Pumping projects include many of the major developments in Las Vegas; such as the City Center, the Winn, Trump Tower, Caesars Palace, Venetian, Hoover Dan overpass, World Market Center , Turnberry and Foutain Bleu. As an entrepreneur Mr. Isley has been involved with the formation and funding of several companies in various industries. In 2004 Mr. Isley formed Keen Corp, a company with a patent pending steering design for ATV’s and water Craft. In 2002 Mr. Isley was a principle investor in Go Fast Auto Parts. In 2005 Mr. Isley was a principle investor in Dental Spas LLC. In 2005 Mr. Isley formed Nurpocon a concrete washout company which he sold in 2006. Mr. Isley attended Texas Tech University.
26
Chancey White, Secretary, Director, age 36, has extensive experience working with development stage and public companies. Mrs. White began her professional career in 1995 heading up public relations and overseeing the daily operations for the corporate offices of a publicly traded biotech company. In 1997 Mrs. White took over public relations, marketing strategies, and business development for The Effects Network, a privately held Nevada corporation providing specialty design and fabrications for the gaming, tourism, and entertainment industries. In 1998 Mrs. White became the director of business development for The Keith Companies, Inc. a NASDAQ listed engineering & consulting services firm based on the west coast. Additionally in 2001 Mrs. White became Vice President of Plise Development and Construction, LLC, a Nevada based company that specializes in the development and construction of professional/medical office, warehouse and retail space . From 2001 to 2006 Mrs. White was an associate of Vegas Commercial Real Estate, a full service real estate brokerage to retail, office and industrial developers including the sale, acquisition and leasing of property. From 2006 to 2008 Mrs. White served on the Board of Directors of Mobile Nation, Inc. overseeing its merger with AuraSource, Inc. In 2006 Mrs. White co-founded and launched Executive Health and Wellness Center a concierge medical center in Las Vegas. Mrs. White graduated from the University of Nevada, Las Vegas majoring in Communications Studies and Public Relations.
Board Committees
Solquest Corp has not yet implemented any board committees as of the date of this prospectus except for the audit committee.
Directors
The number of Directors of the Corporation shall be fixed by the Board of Directors, but in no event shall be less than one (1). Although we anticipate appointing additional directors, the Company has not identified any such person or any time frame within which this may occur.
[Balance of this Page Intentionally Left Blank]
27
EXECUTIVE COMPENSATION
The following table sets forth certain information regarding executive officers and directors of SolQuest as of the date of this prospectus:
Summary Compensation Table
Name and Principal Position | Fiscal Year | Salary | Bonus | Other Annual Compensation | Restricted Stock Award(s) | Securities Underlying Options/ SARs | LTIP Payouts | All Other Compensation |
|
|
|
|
|
|
|
|
|
Michael Quinn Isley Director, President | 2009 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Chancey White Secretary, Director | 2009 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Notes:
1.
Our directors will hold office until the next annual meeting of the stockholders, which shall be held in March of 2009, and until successors have been elected and qualified. Our officers were appointed by directors and will hold office until they resign or are removed from office.
2.
Mr. Michael Quinn Isley has obligations to entities other than SolQuest. We expect Mr. Isley to spend approximately 10 hours per week on our business affairs. At the date of this prospectus, SolQuest is not engaged in any transactions, either directly or indirectly, with any persons or organizations considered promoters.
3.
There has been no cash payment paid to the executive officer for services rendered in all capacities to us for the period ended April 30, 2009. There has been no compensation awarded to, earned by, or paid to the executive officer by any person for services rendered in all capacities to us for the fiscal period ending April 30, 2009. No compensation is anticipated within the next six months to any officer or director of the Company.
DIRECTORS' COMPENSATION
Our directors is not entitled to receive compensation for services rendered to Solquest Corp, or for each meeting attended except for reimbursement of out-of-pocket expenses. There are no formal or informal arrangements or agreements to compensate directors for services provided as a directors.
EMPLOYMENT CONTRACTS AND OFFICERS' COMPENSATION
Since Solquest Corp’s incorporation on April 6, 2009, we have not paid any compensation to any officers, directors or employee. We do not have employment agreements. Any future compensation to be paid will be determined by the Board of Directors, and, as appropriate, an employment agreement will be executed. We do not currently have plans to pay any compensation until such time as it maintains a positive cash flow.
STOCK OPTION PLAN AND OTHER LONG-TERM INCENTIVE PLAN
Solquest Corp currently does not have existing or proposed option or SAR grants.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The following table sets forth certain information as of the date of this offering with respect to the beneficial ownership of our common stock by all persons known to us to be beneficial owners of more than 5% of any such outstanding classes, and by each directors and executive officers, and by all officers and directors as a group. Unless otherwise specified, the named beneficial owner has, to our knowledge, either or majority voting and investment power.
The following table provides the names and addresses of each person known to SolQuest to own more than 5% of the outstanding common stock as of April 14, 2008, and by the Officers and Directors, individually and as a group. Except as otherwise indicated, all shares are owned directly.
28
Title of Class | Name and Address of Beneficial Owner | Amount of Beneficial Ownership | Percent of Class* |
Common Stock | Michael Quinn Isley(1) 5790 Rogers Street Las Vegas, Nevada 89118 | 4,500,000(2) | 50.00% |
Common Stock | Chancey White(1) 5790 Rogers Street Las Vegas, Nevada 89118 | 4,500,000(2) | 50.00% |
Footnotes
(1) The address of each executive officers one directors is c/o Solquest Corp, 5790 Rodgers Street, Las Vegas, Nevada 89118.
(2) As used in this table, "beneficial ownership" means the or shared power to vote, or to direct the voting of, a security, or the or share investment power with respect to a security (i.e., the power to dispose of, or to direct the disposition of a security).
(3)Assumes the sale of the maximum amount of this offering (2,000,000 shares of common stock). The aggregate amount of shares to be issued and outstanding after the offering is 11,000,000.
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
On or about April 6, 2009, Michael Quinn Isley and Chancy White, our officers and directors, paid for expenses involved with the incorporation of Solquest Corp with personal funds and performed services on behalf of Solquest Corp, in exchange for 4,500,000 shares of common stock each, par value $0.001 per share, which issuance was exempt from the registration provisions of Section 5 of the Securities Act under Section 4(2) of such same said act.
The price of the common stock issued to Michael Quinn Isley was arbitrarily determined and bore no relationship to any objective criterion of value. At the time of issuance, the Company was recently formed or in the process of being formed and possessed no assets.
Michael Quinn Isley and Chancey White, the company’s shareholders, officers and directors are the only promoters of the company.
REPORTS TO SECURITY HOLDERS
After this offering, Solquest will furnish shareholderss with audited annual financial reports certified by independent accountants, and may, in its discretion, furnish unaudited quarterly financial reports. After this offering, Solquest will file periodic and current reports with the Securities and Exchange Commission as required to maintain the fully reporting status.
The public may read and copy any materials Solquest files with the SEC at the SEC's Public Reference Room at 100 F Street, N.E. Washington D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at . Solquest’s SEC filings will also be available on the SEC's Internet site. The address of that site is: http://www.sec.gov
ITEM 12A – DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES
The Securities and Exchange Commission’s Policy on Indemnification
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers, and controlling persons of the company pursuant to any provisions contained in its Articles of Incorporation, Bylaws, or otherwise, Solquest Corp has been advised that, in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by Solquest of expenses incurred or paid by a directors, officers or controlling person of Solquest in the successful defense of any action, suit or proceeding) is asserted by such directors, officers or controlling person in connection with the securities being registered, Solquest will, unless in the opinion of Solquest legal counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdictio n the question whether indemnification is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
29
SOLQUEST CORP
(A Development Stage Company)
Financial Statements
January 31, 2010
F-1
SOLQUEST CORP.
(A Development State Company)
Balance Sheet
ASSETS |
| As of January 31, 2010 |
| As of April 30 2009 |
|
| (Unaudited) |
|
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
|
|
|
|
Cash | $ | 273 | $ | 2,738 |
Prepaid Expenses |
| - |
| 15,000 |
Total Current Assets |
| 273 |
| 17,738 |
|
|
|
|
|
Total Assets | $ | $ 273 | $ | 17,738 |
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY (Deficit) |
|
|
|
|
|
|
|
|
|
Current Liabilities |
|
|
|
|
Accounts Payable | $ | 960 | $ | - |
|
|
|
|
|
Total Liabilities | $ | 960 | $ | - |
|
|
|
|
|
Stockholders' Equity (Deficit) |
|
|
|
|
Common stock .001 par value; 20,000,000 shares authorized, |
|
|
|
|
9,000,000 shares issued and outstanding |
| 9,000 |
| 9,000 |
Additional paid in capital |
| 12,400 |
| 10,000 |
Deficit accumulated during the development stage |
| (22,087) |
| (1,262) |
Total stockholders' equity (Deficit) |
| (687) |
| 17,738 |
|
|
|
|
|
Total Liabilities and Stockholders' Equity (Deficit) | $ | 273 | $ | 17,738 |
The accompanying notes are an integral part of these financial statements
F-2
SOLQUEST CORP
(A Development Stage Enterprise)
Statements of Operations
For the Nine Month Period Ended January 31, 2010
and the period from April 16, 2009 (Inception) through January 31, 2010
|
| Three Months Ended January 31, 2009 |
| Nine Months Ended January 31, 2010 |
| Inception to January 31, 2010 |
|
|
|
|
|
|
|
Revenue | $ | - | $ | - | $ | - |
|
|
|
|
|
|
|
Operating Expenses |
|
|
|
|
|
|
Professional Fees |
| - |
| 18,500 |
| 19,000 |
General & Administrative |
| 40 |
| 4,325 |
| 5,087 |
Total Operating Expenses |
| 40 |
| 22,825 |
| 24,087 |
|
|
|
|
|
|
|
Miscellaneous Income (Expenses) |
|
|
|
|
|
|
Miscellaneous Income |
| - |
| 2,000 |
| 2,000 |
|
|
|
|
|
|
|
Net Loss | $ | (40) | $ | (20,825) | $ | (22,087) |
|
|
|
|
|
|
|
Basic & diluted loss per common share | $ | (0.00) | $ | (0.00) | $ | (0.00) |
|
|
|
|
|
|
|
Weighted average shares outstanding |
| 9,000,000 |
| 9,000,000 |
| 9,000,000 |
The accompanying notes are an integral part of these financial statements
F-3
Statements of Cash Flows
For Nine Months Ended January 31 2010
and the period from April 16, 2009 (Inception) through January 31, 2010
|
| Nine Months Ended January 31, 2010 |
| Inception to January 31, 2010 |
Cash flows from operating activities |
|
|
|
|
Net loss | $ | (20,825) | $ | (22,387) |
Changes in operating assets and liabilities: |
|
|
|
|
Prepaid expenses |
| 15,000 |
| - |
Accounts Payable |
| 1,020 |
| 1,560 |
Accrued Liabilities |
| - |
| - |
Net cash used in operating activities |
| (4,805) |
| (20,827) |
|
|
|
|
|
Net cash used in investing activities |
| 2,400 |
| 100 |
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
Proceeds from sale of stock |
| - |
| 21,000 |
Proceeds from financing activities |
| - |
| 21,000 |
|
|
|
|
|
Increase (decrease) in cash |
| (2,405) |
| 273 |
|
|
|
|
|
Cash at beginning of period |
| 2,678 |
| - |
|
|
|
|
|
Cash at end of period | $ | 273 | $ | 273 |
The accompanying notes are an integral part of these financial statements
F-4
SOLQUEST CORP.
(A development Stage Company)
Statement of Changes in Stockholders' Equity
For the Period of April 6, 2009 (Inception) to January 31, 2010
| Common Stock |
| Additional |
| Accumulated |
|
| ||
| Shares |
| Amount |
| Paid-In Capital |
| Deficit |
| Total |
|
|
|
|
|
|
|
|
|
|
Balance, April 6, 2009 (Inception) | - | $ | - | $ | - | $ | - | $ | - |
Common stock issued for cash at |
|
|
|
|
|
|
|
|
|
$0.00 par value, April 6, 2009 | 9,000,000 |
| 9,000 |
| 12,400 |
| - |
| 21,400 |
Net loss for period | - |
| - |
| - |
| (22,087) |
| (22,087) |
Balance, January 31, 2010 | 9,000,000 | $ | 9,000 | $ | 12,400 | $ | (22,087) | $ | (687) |
The accompanying notes are an integral part of these financial statements
F-5
SOLQUEST CORP.
(A Development Stage Company)
Notes to the Financial Statements
For the nine months ending January 31, 2010
Note 1 – Nature of Business & Basis of Presentation
SolQuest Corp. (the "Company" or “SolQuest”), a development stage enterprise, was incorporated in the State of Nevada on April 6, 2009. SolQuest is currently focusing on commercializing a selection of targeted solar products (amorphous thin film solar panels and ancillary products) and technologies for a wide range of applications including electrical power generation. As of the date of this prospectus, we have generated limited revenues from operations. We intend to enter into supply agreement(s) with manufacturers of solar
electric power products and technologies which directly convert sunlight into electricity. We are seeking solar cells that have a high conversion efficiency and offer these products to the mass market along with the installation of same.
These Condensed Interim Financial Statements have been prepared in accordance with instructions to Form 10-Q and Article 8 of Regulation S-X of the United States Securities and Exchange Commission (the “SEC”) and therefore, omit or condense certain footnotes and other information normally included in the Condensed Interim Financial Statements prepared in accordance with accounting principles generally accepted in the United States (the “U.S. GAAP”). In the opinion of the Company’s management, all adjustments (consisting of normal recurring accruals) considered necessary for fair Condensed Interim Financial Statement presentation have been made. The results of operations for an interim period may not give true indication of the results for the entire year.
The Company has elected an April 30 year end.
Estimates
The preparation of financial statements in conformity with U. S GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash
For the Statements of Cash Flows, all highly liquid investments with maturity of three months or less are considered to be cash equivalents. There were no cash equivalents as of January 31, 2010.
Cash deposits are held in reliable United States financial institutions and are insured up to $250,000 per depositor under the Federal Deposit Insurance Corporation (FDIC). At times, the Company may hold cash reserves in excess of insured amounts. As of January 31, 2010 the Company did not have any deposits in excess of insured amounts.
Revenue recognition
Revenue is recognized after persuasive evidence of an arrangement exists, after delivery of goods has occurred or services have been rendered, after the price is fixed or determinable, and after collectability is reasonably assured.
Note 2: Significant Accounting Policies
Income taxes
The Company accounts for income taxes in accordance with the requirements under U.S. GAAP, which requires an asset and liability approach to financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and the tax bases of assets and liabilities that will result in future taxable or deductible amounts, based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income.
Valuation allowances are established, when necessary, to reduce deferred income tax assets to the amount expected to be realized.
F-6
SOLQUEST CORP.
(A Development Stage Company)
Notes to the Financial Statements
For the nine months ending January 31, 2010
Income Taxes (continued)
The Company accounts for uncertainty in income taxes in accordance with the requirements under U.S. GAAP, which creates a single accounting and disclosure model for uncertain tax positions, provides guidance on the minimum threshold that a tax uncertainty is required to meet before it can be recognized in the financial statements and applies to all tax positions taken by a company, both those deemed to be routine as well as those for which there may be a high degree of uncertainty. During the three month period ended September 30, 2009, the Company recognized no adjustments for uncertain tax positions.
Stock–Based Compensation
The Company accounts for stock-based compensation by recognizing the fair value of compensation cost for all stock awards over the service period (generally equal to the vesting period). This compensation cost is determined using option pricing models intended to estimate the fair value of the awards at the grant date. An offsetting increase to stockholders’ equity is recorded equal to the amount of the compensation expense charge. The Company has not granted or issued any stock-based compensation instruments since inception.
Earnings (loss) per Share
The Company accounts for earnings (loss) per share in accordance with the requirements under U.S. GAAP, which requires dual presentation of basic and diluted loss per share for all periods presented. Basic loss per share excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of common stock shares outstanding during the period. Diluted loss per share reflects the potential dilution that could occur if option, warrants or other contracts to issue common stock were exercised or converted into common stock. Since inception, the Company has no dilutive potential common stock.
Fair Value of Financials Instruments
The carrying amount of the Company’s assets and liabilities approximate fair value as presented in the accompanying condensed interim balance sheets due to their short-term maturities.
Recent Accounting Pronouncements
On July 1, 2009 the Financial Accounting Standards Board (“FASB”) launched the Accounting Standards Codification (“ASC”), also known collectively as the “Codification”. The Codification is considered the single source of authoritative U.S. accounting and reporting standards, except for additional authoritative rules and interpretive releases issued by the SEC. The Codification was developed to organize U.S. GAAP pronouncements by topic so that users can more easily access authoritative accounting guidance. It is organized by topic, subtopic, section, and paragraph, each of which is identified by a numerical designation. The Company adopted this statement on July 1, 2009.
The Company adopted ASC 855, “Subsequent Events,” in the second quarter of 2009. This standard, which was issued by FASB in May 2009, establishes general standards for accounting for and disclosing events that occur after the balance sheet date, but before the financial statements are issued or are available to be issued. The Company has evaluated subsequent events through March 10, 2010, which represents the date these financial statements are issued. The results of our evaluation are described further in Note 8, “Subsequent Events.”
The following are additional accounting standards issued during 2009 that could have an impact on our Company in future periods.
ASC 320, “Investments in Debt and Equity Securities,” issued in April 2009, amends the other-than-temporary impairment guidance for debt securities to make the guidance more operational and to improve the presentation and disclosure of other-than-temporary impairments on debt and equity securities in the financial statements.
ASC 825, “Financial Instruments,” issued in April 2009, requires disclosures about fair value of financial instruments, whether recognized or not recognized in the statement of financial position, for interim reporting periods of publicly traded companies as well as in annual financial statements.
F-7
SOLQUEST CORP.
(A Development Stage Company)
Notes to Financial Statements
For the nine months ending January 31, 2010
Recent Accounting Pronouncements(Continued)
ASU 2009-17 (ASC Topic 810), “Improvements to Financial Reporting by Enterprises Involved with Variable Interest Entities,” which was issued in June 2009 and is effective as of January 1, 2010, amends existing consolidation guidance for variable interest entities and requires a company to perform a qualitative analysis when determining whether it must consolidate a variable interest entity. This analysis identifies the primary beneficiary of a variable interest entity as the company that has both the power to direct the activities of a variable interest entity that most significantly impact the entity’s economic performance and either the obligation to absorb losses or the right to receive benefits from the entity that could potentially be significant to the variable interest entity.
ASU 2009-05, “Measuring Liabilities at Fair Value,” issued in August 2009, provides guidance on measuring the fair value of liabilities under ASC 820, “Fair Value Measurements and Disclosures.” The ASU clarifies that the quoted price for the identical liability, when traded as an asset in an active market, is also a Level 1 measurement for that liability when no adjustment to the quoted price is required. In the absence of a Level 1 measurement, an entity must use a valuation technique that uses a quoted price or another valuation technique consistent with the principles of Topic 820. The ASU is effective for the first interim or annual reporting period beginning after ASU’s issuance.
Note 3 – Stockholders Equity
Common Stock
The authorized common stock of the Company consists of 20,000,000 shares with par value of $0.001. On
April 6, 2009, the Company sold a total of 9,000,000 shares at a selling price of $.002111 per share for a total cash consideration of $19,000.
Note 4 – Income Taxes
The Company did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. The Company provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carry-forwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carry-forward period.
The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences for the periods presented are as follows:
Income tax provision at the Federal statutory rate |
| 35% |
Effect of operating losses |
| -35% |
|
| 0% |
Net deferred tax assets consist of the following:
|
| From Inception |
Net operating loss carry forward: | $ | 22,087 |
Valuation allowance |
| (22,087) |
Net deferred tax asset | $ | -------- |
The Company did not pay any income taxes during the period ended December 31, 2009.
The net federal operating loss carry forward will expire in 2027. This carry forward may be limited upon the consummation of a business combination under IRC Section 381.
F-8
SOLQUEST CORP.
(A Development Stage Company)
Notes to the Financial Statements
For the nine months ending January 31, 2010
Note 5 – Related Party Transactions
The Company neither owns nor leases any real or personal property. An officer or resident agent of the corporation provides office services without charge. Such costs are immaterial to the financial statements and accordingly, have not been reflected therein. The officers and directors for the Company are involved in other business activities and may, in the future, become involved in other business opportunities. If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interest. The Company has not formulated a policy for the resolution of such conflicts.
Note 6 – Warrants and Options
There are no warrants or options outstanding to acquire any additional shares of common stock of the Company.
Note 7 – Subsequent Events
No events have occurred subsequent to March 10, 2010 which would require disclosure herein to make them not misleading.
Note 8 – Going Concern
As shown in the accompanying financial statements, as is typical of companies going through the development stage, the Company incurred little activity since inception other than the issuance of stock for the period April 6, 2009 (Inception) through January 31, 2010. The Company is currently in the development stage, and there is no guarantee whether the Company will be able to generate enough revenue and/or raise capital to support current operations and generate anticipated sales. This raises substantial doubt about the Company's ability to continue as a going concern. Management believes that the Company's capital requirements will depend on many factors including the success of the Company's service development efforts. Management's plans include marketing of their services and establishment of key management personnel to support the business plan. With the business plan being followed, Management believes along with working capital being raised that the operations and sales will make the Company a viable entity over the next twelve months.
The financial statements do not include any adjustments relating to the recoverability or classification of recorded assets and liabilities that might result should the Company be unable to continue as a going concern.
F-9
PART II: INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 13 - OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
The following table sets forth the costs and expenses payable by Solquest in connection with the sale of the common stock being registered. Solquest has agreed to pay all costs and expenses in connection with this offering of common stock. Joshua A. Isley is the source of the funds for the costs of the offering. Mr. Isley has no agreement in writing to pay the expenses of this offering on behalf of Solquest and thus such agreement to do so is not enforceable. The estimated expenses of issuance and distribution, assuming the maximum proceeds are raised, are set forth below.
Legal and Professional Fees | $ | 3,500 |
Accounting Fees | $ | 2,500 |
Escrow Fees | $ | 1,500 |
Registration Fee | $ | 8.41 |
|
|
|
Total | $ | 7,509 |
ITEM 14 - INDEMNIFICATION OF DIRECTORS AND OFFICERS
Solquest Corp's Articles of Incorporation and Bylaws provide for the indemnification of a present or former directors or officers to the fullest extent permitted by Nevada law, against all expense, liability and loss reasonably incurred or suffered by the officers or directors in connection with any action against such officers or directors .
ITEM 15 - RECENT SALES OF UNREGISTERED SECURITIES
During the past three years, Solquest Corp issued the following unregistered securities in private transactions without registering the securities under the Securities Act:
About April, 2009, Michael Quinn Isley, our officers and directors, paid for expenses involved with the incorporation of the Company with personal funds on behalf of the Company and provided services, in exchange for 4,500,000 shares of common stock of the Company, each, par value $0.001 per share.
At the time of the issuance, Michael Quinn Isley and Chancey White were in possession of all available material information about us, as they are the only officers and directors. On the basis of these facts, Solquest Corp claims that the issuance of stock to its founding shareholders qualifies for the exemption from registration contained in Section 4(2) of the Securities Act of 1933. Solquest believes that the exemption from registration for these sales under Section 4(2) was available because:
·
Michael Quinn Isley is an executive officer of Solquest and thus had fair access to all material information about Solquest before investing;
·
Chancey White is an executive officer of Solquest and thus had fair access to all material information about Solquest before investing;
·
There was no general advertising or solicitation; and
·
The shares bear a restrictive transfer legend.
All shares issued to Michael Quinn Isley and Chancey White were at a par price per share of $0.001. The price of the common stock issued to them was arbitrarily determined and bore no relationship to any objective criterion of value. At the time of issuance, Solquest was recently formed or in the process of being formed and possessed no assets.
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ITEM 16 - EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
INDEX OF EXHIBITS
Exhibit No. | Name/Identification of Exhibit |
|
|
3 | Articles of Incorporation & Bylaws by Reference |
a) | Articles of Incorporation by Reference |
b) | Bylaws adopted on July 28, 2009 by Reference |
|
|
5 | Opinion on Legality |
| a) Opinion of Harold Gewerter, Esq. by Reference |
|
|
23.1 | Consent of Independent Auditor |
|
|
10 | Additional Exhibits by Reference |
| a) Escrow Agreement |
| b) Subscription Agreement |
ITEM 17 - UNDERTAKINGS
UNDERTAKINGS
a. The undersigned registrant hereby undertakes:
1. To file, during any period in which offers or sales are being made, a post-effective amendment to this registration statement:
i. To include any prospectus required by section 10(a)(3) of the Securities Act of 1933;
ii. To reflect in the prospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement.
iii. To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;
Provided however, That:
A. Paragraphs (a)(1)(i) and (a)(1)(ii) of this section do not apply if the registration statement is on Form S-8, and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement; and
B. Paragraphs (a)(1)(i), (a)(1)(ii) and (a)(1)(iii) of this section do not apply if the registration statement is on Form S-3 or Form F-3 and the information required to be included in a post-effective amendment by those paragraphs is contained in reports filed with or furnished to the Commission by the registrant pursuant to section 13 or section 15(d) of the Securities Exchange Act of 1934 that are incorporated by reference in the registration statement, or is contained in a form of prospectus filed pursuant to Rule 424(b) that is part of the registration statement.
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2. That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
3. To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.
4. That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser:
i. If the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registra tion statement or made in any such document immediately prior to such date of first use.
5. That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities: The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:
i. Any preliminary prospectus or prospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;
ii. Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned registrant or used or referred to by the undersigned registrant;
iii. The portion of any other free writing prospectus relating to the offering containing material information about the undersigned registrant or its securities provided by or on behalf of the undersigned registrant; and
iv. Any other communication that is an offer in the offering made by the undersigned registrant to the purchaser.
Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a directors, officers or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such directors, officers or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indem nification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.
a. The undersigned registrant hereby undertakes that:
1. For purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus filed as part of this registration statement in reliance upon Rule 430A and contained in a form of prospectus filed by the registrant pursuant to Rule 424(b) (1) or (4) or 497(h) under the Securities Act shall be deemed to be part of this registration statement as of the time it was declared effective.
2. For the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.
II-3
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the Registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto authorized in the City of Vero Beach, state of Florida on April 1, 2010.
Solquest Corp |
(Registrant) |
|
By:Michael Quinn Isley |
Michael Quinn Isley, President |
Pursuant to the requirements of the Securities Act of 1933, this registration statement has been signed b the following persons in the capacities and on the dates indicated.
Signature | Title | Date |
|
|
|
/s/Michael Quinn Isley | President and Director | April 1, 2010 |
Michael Quinn Isley | Chief Executive Officer |
|
|
|
|
/s/Michael Quinn Isley | Treasurer | April 1, 2010 |
Michael Quinn Isley | Chief Accounting Officers |
|
|
|
|
/s/ Chancey White | Secretary and Director | April 1, 2010 |
Chancey White |
|
|
II-4