Our officer, director, control persons and affiliates do not intend to purchase any shares in this offering.
If applicable, the shares may not be offered or sold in certain jurisdictions unless they are registered or otherwise comply with the applicable securities laws of such jurisdictions by exemption, qualification or otherwise. We intend to sell the shares only in the states in which this offering has been qualified or an exemption from the registration requirements is available, and purchases of shares may be made only in those states.
In addition and without limiting the foregoing, we will be subject to applicable provisions, rules and regulations under the Exchange Act with regard to security transactions during the period of time when this Registration Statement is effective.
We will not use public solicitation or general advertising in connection with the offering. The shares will be offered at a fixed price of $0.0125 per share for the duration of the offering. There is no minimum number of shares required to be sold to close the offering. This offering will terminate upon the earlier to occur of (i) 90 days after this registration statement becomes effective with the Securities and Exchange Commission, or (ii) the date on which all 3,000,000 shares registered hereunder have been sold. We may, at our discretion, extend the offering for an additional 90 days. In any event, the offering will end within six months of this Registration Statement being declared effective
This is a direct participation offering since we, and not an underwriter, are offering the stock. We will receive all of the proceeds from such sales of securities and are bearing all expenses in connection with the registration of our shares.
The following table sets forth, as of the date of this prospectus, the total number of shares owned beneficially by our sole officer and director, and key employees, individually and as a group, and the present owners of 5% or more of our total outstanding shares. The stockholder listed below has direct ownership of her shares and possesses sole voting and dispositive power with respect to the shares.
(1) Based on 9,000,000 shares outstanding as of April 8, 2013.
(2) The person named above may be deemed to be a “parent” and “promoter” of our company, within the meaning of such terms under the Securities Act of 1933, Jocelyn Nicholas is the only “parent” and “promoter” of the company. We have no promoter as defined by item 405 of Regulation C .
For the period ended April 30, 2013, a total of 9,000,000 shares of common stock were issued to our sole officer and director, all of which are restricted securities, as defined in Rule 144 of the Rules and Regulations of the SEC promulgated under the Securities Act. Under Rule 144, the shares can be publicly sold, subject to volume restrictions and restrictions on the manner of sale, commencing one year after their acquisition. Under Rule 144, a shareholder can sell up to 1% of total outstanding shares every three months in brokers’ transactions. Shares purchased in this offering, which will be immediately resalable, and sales of all of our other shares after applicable restrictions expire, could have a depressive effect on the market price, if any, of our common stock and the shares we are offering.
Our sole officer and director will continue to own the majority of our common stock after the offering, regardless of the number of shares sold. Since he will continue control our company after the offering, investors in this offering will be unable to change the course of our operations. Thus, the shares we are offering lack the value normally attributable to voting rights. This could result in a reduction in value of the shares you own because of their ineffective voting power. None of our common stock is subject to outstanding options, warrants, or securities convertible into common stock.
The company is hereby registering 3,000,000 of its common shares, in addition to the 9,000,000 shares currently issued and outstanding. The price per share is $0.01 (please see “Plan of Distribution” above).
The 9,000,000 shares currently issued and outstanding were acquired by our sole officer and director for the period ended, April 30, 2013. We issued a total of 9,000,000 common shares for consideration of $9,000, which was accounted for as a purchase of common stock. The Company received $9,000 cash.
DESCRIPTION OF SECURITIES
Common Stock
The authorized common stock is two hundred and fifty million (250,000,000) shares with a par value of $0.0001. Shares of our common stock:
| | |
| · | have equal ratable rights to dividends from funds legally available if and when declared by our Board of Directors; |
| | |
| · | are entitled to share ratably in all of our assets available for distribution to holders of common stock upon liquidation, dissolution or winding up of our affairs; |
| | |
| · | do not have preemptive, subscription or conversion rights and there are no redemption or sinking fund provisions or rights; and |
| | |
| · | are entitled to one non-cumulative vote per share on all matters on which stockholders may vote. |
We refer you to our Bylaws, our Articles of Incorporation, and the applicable statutes of the State of Florida for a more complete description of the rights and liabilities of holders of our securities.
Non-Cumulative Voting
Holders of shares of our 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 that event, the holders of the remaining shares will not be able to elect any of our directors. After this offering is completed, present stockholders will own approximately 75% of our outstanding shares.
Cash Dividends
As of the date of this Prospectus, we have not declared or paid any cash dividends to stockholders. The declaration of any future cash dividend will be at the discretion of our Board of Directors and will depend upon our earnings, if any, our capital requirements and financial position, our general economic conditions, and other pertinent conditions. It is our present intention not to pay any cash dividends in the foreseeable future, but rather to reinvest earnings, if any, in our business operations.
INTEREST OFNAMED EXPERTS AND COUNSEL
No expert or counsel named in this Prospectus as having prepared or certified any part thereof or having given an opinion upon the validity of the securities being registered or upon other legal matters in connection with the registration or offering of our common stock was employed on a contingency basis or had or is to receive, in connection with the offering, a substantial interest, directly or indirectly, in us. Additionally, no such expert or counsel was connected with us as a promoter, managing or principal underwriter, voting trustee, director, officer or employee.
Angela Collette, Attorney and Counselor at Law, 28325 Utica Road, Roseville, Michigan 48066, (321) 507-7836, Atty4defense@aol.com, has passed upon certain legal matters in connection with the validity of the issuance of the shares of common stock.
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Messineo & Co, CPAs, LLC of 2451 North McMullen Booth Road, Ste. 309, Clearwater, FL 33759, (727) 421-6268, has audited our Financial Statements for the period April 8, 2013 (date of inception) through April 30, 2013 and to the extent set forth in its report, which are included herein in reliance upon the authority of said firm as experts in accounting and auditing. There were no disagreements related to accounting principles or practices, financial statement disclosure, internal controls or auditing scope or procedure from date of appointment as our independent registered accountant through the period of audit inception April 8, 2013 through April 30, 2013.
BUSINESS DESCRIPTION
Overview
As of the date of this Prospectus, we have not established any business operations and have not achieved any revenues. We have not commenced providing any services, have not created relationships with any potential customers, have not obtained a facility or achieving our business plan. Importantly, there is no guarantee that we will succeed in accomplishing any other goals. In order to accomplish these goals, we anticipate that we will require not less than $575,000 in financing in addition to the $37,500 ($612,500 in total) that we are seeking to raise through this offering. We have taken no steps to secure the disclosed additional financing that we will need to implement our business plan.
We were incorporated in the State of Florida on April 8, 2013, as a for-profit company with a fiscal year end of April 30, 2013.
We have not accomplished any of our intended efforts to date. We have not generated any revenues to date and our activities have been limited to organizational matters, the preparation of our business plan , and the preparation of the financial statements and other information presented in this Prospectus .. Our ability to establish operations is entirely dependent on our ability to raise sufficient financing to execute our business plan, however there is no guarantee that we will be successful in this regard. Furthermore, if we successfully establish operations, there is no guarantee that there will be significant market for our services or that we will achieve significant revenues, if at all.
We intend to open a Pilot Adult Day Care Center in the Sarasota County, Florida area. We intend to develop our business to cater to seniors who can no longer manage independently, or who are isolated and lonely. With life expectancy rising, more and more seniors will need assistance as they age. We intend to provide seniors with a program to socialize with others while still receiving needed care services. We intend to provide seniors with a non-residential facility that supports the health, nutritional, social support and daily living needs in a professionally staffed group setting enabling them to enjoy their day while receiving care and support they need. We plan to have our services to be supervised by registered and or licensed personnel. We intend the daily activities for our seniors to be tailored to be tailored to their needs by providing them with supervised activity.
Envoy Group Corp. feels that we can create a vibrant and social community for seniors to enjoy their day while receiving the care and support they need.
Envoy Group Corp. intends to provide a specially trained staff, to handle seniors complex health related needs. We anticipate that family care givers will have peace of mind knowing their aging parents or senior loved ones is spending the day in our intended safe, fun and social environment while receiving expert care.
There were 40.1 million Americans aged 65 or older in 2010 and 80.1 million Americans projected in 2050. (http://www.census.gov/prod/1/pop/p23-190/p23190-f.pdf). Envoy Group Corp. believes that as the population grays and lives longer, the demand and need for the care of the elderly will grow and rise in importance. Meeting their special needs is expected to be one of the fastest growing industry. It is Envoy Group Corp. belief that the elderly resist entering institutions full time, which means Envoy Group Corp. services is poised to assist the elderly as they continue to live at home.
We anticipate that families will consider Adult Day Care services for their parents and grandparents. We anticipate that the government may be willing to assist families with care giving at home.
Through our intended Adult Day Care Centers, we intend to create a caring and stress-free environment that combines educational, health and fitness , and emotional well-being spa services. We intend to utilize only the most qualified professional staff. All Registered Nurses, Physical Therapists, Nutritionist licensed by the state. We intend to develop a reputation by placing heavy emphasis on our Licensed/Certified professional staff and expert consultants. We intend to offer consumer numerous options and choices for service as well as counseling.
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Nursing Services
Envoy Group Corp. believes our Day Care Center will be staffed with the most qualified Registered and/or Licensed nurses in the field. We intend to provide specially certified and trained staff to work with issues related to aging seniors.
Nursing Services that are offered intend to include:
| |
· | Medication administration and/or oversight. |
· | Weight and vitals |
· | Diabetic care, feeding tubes, dressing changes |
· | And other intended services that are needed by seniors. |
Meals
Meals are the perfect time for friends to socialize, celebrate and sharing memories. Envoy Group Corp. feels our intended dining room and food may help turn each meal into a special event. We intend to offer a light breakfast, catered lunch and an afternoon snack. Special diets that are easily accommodated and intended to assist at mealtime.
Activities
Envoy Group Corp. intends to create a custom program of individual and group activities that consider the whole person as an individual including, social, emotional, spiritual, physical, and creative needs.
Our intended activities will be innovative and different:
| |
· | Pet Therapy |
· | Trivia |
· | Outdoor picnics on our intended patio with gardening and barbecue |
· | Computers for memory enhancement or keeping in touch with grand children on Social Networks |
· | Dancing |
· | Arts & Crafts |
· | Bingo |
· | Guest Speakers |
· | Movies (On video or an outing at a theater) |
· | Music Therapy |
· | Baking and Cooking classes |
· | Current Events |
· | Knitting |
· | Birthday Parties |
· | Indoor golf putting green |
· | Bowling outings |
Salon And Spa Services:
Our intended center intends to have a Unisex Beauty Salon staffed by outside beauticians familiar with handling the special needs of seniors. Our Salon and Spa Services intends to include the following:
| |
· | Haircuts and styling |
· | Perms |
· | Hair coloring |
· | Facials |
· | Manicures |
· | Pedicures |
· | Massages |
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We intend to offer the following massages:
| |
· | Swedish Massage |
· | Chair Massage |
· | Deep Tissue Massage |
· | Holistic Massage |
· | Aromatherapy |
· | Trigger Therapy Massage |
· | Reflexology |
· | Lymphatic Drainage |
· | Sports Massage |
· | Neuromuscular Massage |
· | Myofascial Release |
· | Craniol Sacral Therapy |
· | Reiki Healing |
Transportation
Envoy Group Corp. intends to provide (if required) door to door transportation from our center in the morning and evening. We also intend to locate our center near retail and business centers so dropping off and picking up are convenient.
We intend over the next 18 months to establish an Adult Day Care Center services to provide an environment that sparks customer interest, excitement, education, health and fun. The company intends to supplement Ms. Nicholas, our sole Officer and Director experience by utilizing consultants in other specialties to create strategy and content. The intended Center will consist of an educational area, fitness area, spa service area, socialization area and cafeteria.
Ms. Jocelyn Nicholas, our President, CEO and Director, intends to use her 15 years of experience in the Salon and Spa industry where she has provided services to seniors in her place of business, assisted living facilities, hospitals, hospice, individual homes in the Sarasota County, FL region. Ms. Nicholas networks with other professionals that can provide additional support as consultants that will be required in the Adult Day Care Center.
We do not currently have any agreements in place with customers for the provision of our services, or any suppliers.
Once our intended pilot Adult Day Care Center is established, we intend to offer others the opportunity to franchise our future name and concept.
BUSINESS LOCATION
As we have no operations, we currently require only limited office space for the administration of our business. This space is currently provided to us free of charge at the office of our sole Officer and Director. If we raise sufficient capital to implement our business plan, we intend to establish our base of operations in the County of Sarasota, Florida and to market our services in and around that location. However, as of the date of this Prospectus, we have not identified any specific location for our planned operating facility and do not have sufficient financial resources to lease such a facility.
SALES and MARKETING STRATEGY
We intend to market our services by advertising in electronic and local print media, by networking and calling on local Hospitals, Doctors, RNs, Religious Institutions, Senior Citizen housing complexes and others. We also plan to attend and exhibit at local and regional relevant trade shows. Finally, we plan to establish a website through which we intend to market our services to potential customers.
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BUSINESS PLAN IMPLEMENTATION SCHEDULE
We have not established a schedule for the completion of specific tasks or milestones contained in our business plan. With the clear exception of the costs associated with this offering ($9,000 which is paid by us and not part of this offering) virtually all aspects of our business plan are scalable in terms of size, quality and effectiveness, and the timing of their execution must be concurrent or near concurrent. For example, we believe that any investment in our infrastructure and other requirements must be concurrent or near concurrent with any investment in marketing, facility, equipment or labor. What’s more, the scale and quality of our infrastructure, marketing strategies, and potential employees, consultants may vary according to the financing ultimately available to us, and will in turn have a corresponding impact on our capacity to generate revenue. Our management believes that investing in our business plan too incrementally would cause us to squander resources on inferior infrastructure, labor, consultants and marketing that would ultimately prevent us from undertaking efforts of sufficient scale or from establishing a competitive position in our industry. We anticipate that we will require approximately $575,000 in order to execute our business plan in a manner that would allow us to maximize our revenue potential and competitive position in our industry.
COMPETITION
We believe that the principal methods of competition in the company’s intended market are the traditional local and regional adult day care companies. Sarah Adult Day Services Inc, Canton, OH 44704 appears to be the largest in the USA and operates in 18 states. However, we believe that very few companies are focusing on this need. We believe that ENVOY GROUP CORP. intents to enter into this market place to address problems with solutions. The National traditional companies have the finances and resources to become major players in this market if they elect to do so. We believe that there is a huge growing need for new types of companies to enter into this market to provide adult day care services. However we believe, ENVOY GROUP CORP. Adult Day Care Center services may provide success in this market segment.
The following table estimates our costs to open the Adult Day Care Center:
| | | | |
USE OF PROCEEDS | | EST. BUDGET | |
Marketing & Brand Activities | | $ | 100,000 | |
Wages & Consulting Fees | | | 150,000 | |
Rent | | | 55,000 | |
Computers/Network | | | 15,000 | |
Web Design/Hosting | | | 10,000 | |
Equipment/Vehicle | | | 105,000 | |
Fixtures | | | 25,000 | |
Working Capital | | | 115,000 | |
TOTAL 18 MO. REQUIREMENT | | $ | 575,000 | |
Employees and Employment Agreements
As of April 8, 2013, we have no employees other than Ms. Nicholas, our sole officer and director. Ms. Nicholas has the flexibility to work on our business up to 10 to 25 hours per week. She is prepared to devote more time to our operations as may be required and we do not have any employment agreements with her.
We do not presently have pension, health, annuity, insurance, stock options, profit sharing, or similar benefit plans; however, we may adopt plans in the future. There are presently no personal benefits available to our sole director and officer.
During the initial implementation of our business plan, we intend to hire independent consultants to assist in the development and execution of our ENVOY GROUP CORP. business operation.
Government Regulations
We are unaware of and do not anticipate having to expend significant resources to comply with any local/ state and governmental regulations of the market. We are subject to the laws and regulations of those jurisdictions in which we plan to offer our services’ which are generally applicable to business operations, such as business licensing requirements, income taxes and payroll taxes. In general, the development and operation of our business is not subject to special ENVOY GROUP CORP. regulatory and/or supervisory requirements. The State of Florida requires basic licensing, inspections and monitoring, staffing ratios 1:6. The federal government basically relies on the States.
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Intellectual Property
We do not currently hold rights to any intellectual property and have not filed for copyright or trademark protection for our name or intended website.
Research and Development
Since our inception to the date of this Prospectus, we have not spent any money on research and development activities.
Reports to Security Holders
We intend to furnish annual reports to stockholders, which will include audited financial statements reported on by our Certified Public Accountants. In addition, we will issue unaudited quarterly or other interim reports to stockholders, as we deem appropriate or required by applicable securities regulations.
Any member of the public may read and copy any materials filed by us with the Securities and Exchange Commission at the Securities and Exchange Commission’s Public Reference Room at 100 F Street, N.E. Washington, D.C. 20549. Information on the operation of the Public Reference Room may be obtained by calling the Securities and Exchange Commission at 1-800-732-0330. The Securities and Exchange Commission maintains an internet website (http://www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the Securities and Exchange Commission.
DESCRIPTION OF PROPERTY
As our office space needs are limited at the current time, we are currently operating out of our sole director and officer’s office located at 3811 Alden Way, Sarasota, FL 34232. This space usage is donated free of charge by our sole director and officer.
JUMPSTART OUR BUSINESS STARTUPS ACT
In April 2012, the Jumpstart Our Business Startups Act (“JOBS Act”) was enacted into law. The JOBS Act provides, among other things:
Exemptions for emerging growth companies from certain financial disclosure and governance requirements for up to five years and provides a new form of financing to small companies;
Amendments to certain provisions of the federal securities laws to simplify the sale of securities and increase the threshold number of record holders required to trigger the reporting requirements of the Securities Exchange Act of 1934;
Relaxation of the general solicitation and general advertising prohibition for Rule 506 offerings;
Adoption of a new exemption for public offerings of securities in amounts not exceeding $50 million; and
Exemption from registration by a non-reporting company of offers and sales of securities of up to $1,000,000 that comply with rules to be adopted by the SEC pursuant to Section 4(6) of the Securities Act and exemption of such sales from state law registration, documentation or offering requirements.
In general, under the JOBS Act a company is an emerging growth company if its initial public offering (“IPO”) of common equity securities was effected after December 8, 2011 and the company had less than $1 billion of total annual gross revenues during its last completed fiscal year. A company will no longer qualify as an emerging growth company after the earliest of
(i) the completion of the fiscal year in which the company has total annual gross revenues of $1 billion or more,
(ii) the completion of the fiscal year of the fifth anniversary of the company’s IPO;
(iii) the company’s issuance of more than $1 billion in nonconvertible debt in the prior three-year period, or
(iv) the company becoming a “larger accelerated filer” as defined under the Securities Exchange Act of 1934.
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The JOBS Act provides additional new guidelines and exemptions for non-reporting companies and for non-public offerings. Those exemptions that impact the Company are discussed below.
Financial Disclosure. The financial disclosure in a registration statement filed by an emerging growth company pursuant to the Securities Act of 1933 will differ from registration statements filed by other companies as follows:
(i) audited financial statements required for only two fiscal years;
(ii) selected financial data required for only the fiscal years that were audited;
(iii) executive compensation only needs to be presented in the limited format now required for smaller reporting companies. (A smaller reporting company is one with a public float of less than $75 million as of the last day of its most recently completed second fiscal quarter)
However, the requirements for financial disclosure provided by Regulation S-K promulgated by the Rules and Regulations of the SEC already provide certain of these exemptions for smaller reporting companies. The Company is a smaller reporting company. Currently a smaller reporting company is not required to file as part of its registration statement selected financial data and only needs audited financial statements for its two most current fiscal years and no tabular disclosure of contractual obligations.
The JOBS Act also exempts the Company’s independent registered public accounting firm from complying with any rules adopted by the Public Company Accounting Oversight Board (“PCAOB”) after the date of the JOBS Act’s enactment, except as otherwise required by SEC rule.
The JOBS Act also exempts an emerging growth company from any requirement adopted by the PCAOB for mandatory rotation of the Company’s accounting firm or for a supplemental auditor report about the audit.
Internal Control Attestation. The JOBS Act also provides an exemption from the requirement of the Company’s independent registered public accounting firm to file a report on the Company’s internal control over financial reporting, although management of the Company is still required to file its report on the adequacy of the Company’s internal control over financial reporting.
Section 102(a) of the JOBS Act exempts emerging growth companies from the requirements in §14A(e) of the Securities Exchange Act of 1934 for companies with a class of securities registered under the 1934 Act to hold shareholder votes for executive compensation and golden parachutes.
Other Items of the JOBS Act. The JOBS Act also provides that an emerging growth company can communicate with potential investors that are qualified institutional buyers or institutions that are accredited to determine interest in a contemplated offering either prior to or after the date of filing the respective registration statement. The Act also permits research reports by a broker or dealer about an emerging growth company regardless if such report provides sufficient information for an investment decision. In addition the JOBS Act precludes the SEC and FINRA from adopting certain restrictive rules or regulations regarding brokers, dealers and potential investors, communications with management and distribution of a research reports on the emerging growth company IPO.
Section 106 of the JOBS Act permits emerging growth companies to submit 1933 Act registration statements on a confidential basis provided that the registration statement and all amendments are publicly filed at least 21 days before the issuer conducts any road show. This is intended to allow the emerging growth company to explore the IPO option without disclosing to the market the fact that it is seeking to go public or disclosing the information contained in its registration statement until the company is ready to conduct a roadshow.
Election to Opt Out of Transition Period. Section 102(b)(1) of the JOBS Act exempts emerging growth companies from being required to comply with new or revised financial accounting standards until private companies (that is, those that have not had a 1933 Act registration statement declared effective or do not have a class of securities registered under the 1934 Act) are required to comply with the new or revised financial accounting standard.
The JOBS Act provides a company can elect to opt out of the extended transition period and comply with the requirements that apply to non-emerging growth companies but any such an election to opt out is irrevocable. The Company has elected not to opt out of the transition period.
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LEGAL PROCEEDINGS
We know of no materials, active or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceedings or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any beneficial shareholder are an adverse party or has a material interest adverse to us.
MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
Market Information
Our common stock is not traded on any exchange. We intend to apply to have our common stock quoted on the OTC Bulletin Board once this Prospectus has been declared effective by the SEC; however, there is no guarantee that we will obtain a listing.
There is currently no trading market for our common stock and there is no assurance that a regular trading market will ever develop. OTC Bulletin Board securities are not listed and traded on the floor of an organized national or regional stock exchange. Instead, OTC Bulletin Board securities transactions are conducted through a telephone and computer network connecting dealers. OTC Bulletin Board issuers are traditionally smaller companies that do not meet the financial and other listing requirements of a regional or national stock exchange.
To have our common stock listed on any of the public trading markets, including the OTC Bulletin Board, we will require a market maker to sponsor our securities. We have not yet engaged any market maker to sponsor our securities, and there is no guarantee that our securities will meet the requirements for quotation or that our securities will be accepted for listing on the OTC Bulletin Board. This could prevent us from developing a trading market for our common stock.
Holders
As of the date of this Prospectus there was one holder of record of our common stock.
Dividends
To date, we have not paid dividends on shares of our common stock and we do not expect to declare or pay dividends on shares of our common stock in the foreseeable future. The payment of any dividends will depend upon our future earnings, if any, our financial condition, and other factors deemed relevant by our Board of Directors.
Equity Compensation Plans
As of the date of this Prospectus we did not have any equity compensation plans.
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
This section of the prospectus includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: “believe”, “expect”, “estimate”, “anticipate”, “intend”, “project” and similar expressions, or words that, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this prospectus. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.
Our financial statements are stated in United States Dollars (USD or US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. All references to “common shares” refer to the common shares in our capital stock.
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Overview
We are a development-stage company, incorporated in the State of Florida on April 8, 2013, as a for-profit company, and an established fiscal year of April 30. We have not yet generated or realized any revenues from business operations. Our auditor has issued a going concerned opinion. This means there is substantial doubt that we can continue as an on-going business. Accordingly, we must raise cash from other sources other than loans we undertake.
From inception through April 30, 2013, our business operations have primarily been focused on developing our business plan. We have spent a total of approximately $ 2,598 on start-up costs. We have not generated any revenue from business operations. All cash currently held by us is the result of the sale of common stock to our sole director and officer.
The maximum proceeds from this offering ($37,500) will satisfy our basic subsistence level, cash requirements for up 12 months, including legal and accounting costs associated with this offering which is being paid by us and not part of this offering ($9,000) , the costs associated with our continuous disclosure obligations, incidental expenses, and the cost of implementing the investigative aspects of our business plan, including identifying and securing additional sources of financing, employees/consultants, supplies, infrastructure , marketing and customers. 75% of the possible proceeds from this offering ($28,125) will satisfy our basic, subsistence level cash requirements for up to 9 months, while 50% of the proceeds ($18,750) will sustain us for up to six months, and 35% of the proceeds ($13,125) will sustain for up to four and half months. Our budgetary allocations may vary, however, depending on the percentage of proceeds that we obtain from the offering. For example, we may determine that it is more beneficial to allocate funds toward securing potential financing opportunities in the short term rather than conserve funds to satisfy continuous disclosure requirements for a longer period. Nevertheless, if we are only successful in selling 35% or less of the shares being registered, we will dedicate all proceeds to satisfy our continuous disclosure requirements.
If we are unable to raise additional monies other than the proceeds of this offering, we only have enough capital to cover the above described expenses. The expenses of this offering include the preparation of this prospectus, the filing of this registration statement and transfer agent fees. Implementing the business and marketing plan includes preparing basic marketing materials, contacting potential sources of financing, investigative activity of suppliers, consultants, and infrastructure. Our continuous disclosure
requirements include costs of preparing quarterly financial statements, and reports on forms 10-Q, 10-K and 8-K. As of April 30, 2013, we had $8,908 cash on hand. This cash should cover the expenses of this offering,
PLAN OF OPERATIONS
We do not have adequate funds to satisfy our working capital requirements for the next twelve months. We will need to raise additional capital through this disclosed offering to continue our operations. We expect that after 18 months from the completion of this offering, we intend to implement our business and marketing plan. We believe we must raise a total of $612,500 ($575,000 in addition to the maximum proceeds of this offering) to pay for expenses associated with our development. $612,500 will be used to finance anticipated activities during our development plan as described below. All anticipated expenses are based on estimates made by our sole Officer and Director based on her experience in her industry on her personal research. These costs may vary considerably based on the current local, state, or national economic conditions.
Importantly, our business plan and allocation of proceeds may vary according to the amount of proceeds raised by the sale of securities hereunder and through other future financing efforts. The figures included in the below table show an increase in funds allocated to each category of expenses under our business plan in proportion to possible financing milestones (whether 35%, 50%, 75% or 100% of the $612,500 that we estimate we will require). Nevertheless, if our potential to raise capital appears exhausted, our management may decide to modify our business plan or to implement our business plan on a reduced scale and quality. This might entail the use of a smaller facility, used (equipment, vehicle, furniture and fixtures), less marketing, reduced personnel and consultants and insurance as well as general administrative expenses. A decision by our management to implement our business plan on a reduced scale and quality may occur at any juncture during the early stages of our business development, whether we have raised 35%, 50%, 75%, 100% of the proceeds that we are seeking to raise, In the opinion of the management, the consequences of implementing our business plan on a reduced quality and scale will be a reduction in our capacity to provide services and generate revenue, a critical decrease or deficiency in our working capital, and an increased likelihood that our business could fail. Moreover, even if our financing potential becomes exhausted before we are able to raise the funds that we are seeking to raise, there is no guarantee that we will be successful in implementing a scaled down version of our business, especially if we have not raised any of the $575,000 that we require in addition to the full capital raise of this prospectus hereunder. Other than the preparation of this prospectus, we have taken no steps to identify potential sources of financing and there is no guarantee that any financing will be available to us.
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| | | | | | | | | | | | |
ANTICIPATED | | IF 35% OF THE | | IF 50% OF THE | | IF 75% OF THE | | IF 100% OF THE |
ESTIMATED | | REQUIRED | | REQUIRED | | REQUIRED | | REQUIRED |
EXPENSES | | FINANCING IS | | FINANCING IS | | FINANCING IS | | FINANCING IS |
BUDGET $ | | RAISED | | RAISED | | RAISED | | RAISED |
| | | | | | | | | | | | |
Marketing & Brand Activities | | $ | 35,000 | | $ | 50,000 | | $ | 75,000 | | $ | 100,000 |
| | | | | | | | | | | | |
Wages & Consulting Fees | | | 52,500 | | | 75,000 | | | 112,500 | | | 150,000 |
| | | | | | | | | | | | |
Facility Rental | | | 19,250 | | | 27,500 | | | 41,250 | | | 55,000 |
| | | | | | | | | | | | |
Computers/Network | | | 5,250 | | | 7,500 | | | 11,250 | | | 15,000 |
| | | | | | | | | | | | |
Web Design/Hosting | | | 3,500 | | | 5,000 | | | 7,500 | | | 10,000 |
| | | | | | | | | | | | |
Equipment/Vehicle | | | 36,750 | | | 52,500 | | | 78,750 | | | 105,000 |
| | | | | | | | | | | | |
Fixtures | | | 8,750 | | | 12,500 | | | 18,750 | | | 25,000 |
| | | | | | | | | | | | |
Working Capital G&A/Public Company Reporting Requirements | | | 40,250 | | | 57,500 | | | 86,250 | | | 115.000 |
| | | | | | | | | | | | |
TOTAL | | $ | 201,250 | | $ | 287,500 | | $ | 431,250 | | $ | 575,000 |
Many of the developments enumerated are dependent on us securing additional financing even if we are able to sell all of the securities offered by this Prospectus. There can be no assurance that we will be able to sell all of the securities offered by this Prospectus or secure additional financing. If we are able to raise some, but not all funds required to undertake the developments In this event, we will likely focus on spending available funds assuring that we retain our reporting status with the SEC and developing our business to attract investors. To date, we have taken no steps to identify potential sources of financing required to implement our business plan and we have not entered into any agreement or arrangement in relation to such financing.
If we are unable to raise additional funds we will not be able to complete any of our anticipated business development. Due to the fact that many of the milestones are dependent on each other, if we do not raise any additional capital we will not be able to implement any facets of our business plan.
We intend to pursue capital through public or private equity financing and by borrowing from any available sources if required in order to finance our business activities. Our sole Officer and Director has not made any written or verbal commitment to provide additional financing to our Company. We cannot guarantee that additional funding will be available on favorable terms, if at all. If adequate funds are not available, then our ability to continue our operations may be significantly hindered.
We have not yet begun the development of any of our anticipated services and even if we do secure adequate financing, there can be no assurance that our services will be accepted by the marketplace and that we will be able to generate revenues.
Our sole Officer and Director will be responsible for business plan development. If we develop our services and are in a position to begin sales and marketing we intend to hire independent consultants as we deem necessary.
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Results of Operations
There is no historical financial information about us upon which to base an evaluation of our performance. We have incurred expenses of $92 on our operations as of April 30, 2013 and our only other activity consisted of the sale of 9,000,000 shares of our common stock to our sole director and officer for aggregate proceeds of $9,000.
We have not generated any revenues from our operations. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including the financial risks associated with the limited capital resources currently available to us for the implementation of our business strategies. (See “Risk Factors”). To become profitable and competitive, we must develop the business plan and execute the plan. Our management will attempt to secure financing through various means including borrowing and investment from institutions and private individuals.
Since inception, the majority of our time has been spent refining its business plan and preparing for a primary financial offering.
Our results of operations are summarized below:
| | | | |
| | April 8, 2013 (Inception) | |
| | To April 30, 2013 | |
| | (Audited) | |
Revenue | | | — | |
Cost of Revenue | | | — | |
Expenses | | $ | 92 | |
Net Loss - | | $ | (92 | ) |
Net Loss per Share - Basic and Diluted | | | (0.00 | ) |
Weighted Average Number Shares Outstanding - Basic and Diluted | | | 9,000,000 | |
Liquidity and Capital Resources
As of the date of this prospectus, we had yet to generate any revenues from our business operations. For the period ended April 30, 2013, we issued 9,000,000 shares of common stock to our sole officer and director for cash proceeds of $9,000.
Our current cash on hand is $6,402 which will be used to meet our current obligations. However, our current cash is not sufficient to meet the new obligations associated with being a company that is fully reporting with the SEC. Based on our disclosure above under “Use of Proceeds,” we anticipate that any level of capital raised above 35% will allow us minimal operations for a eighteen month period while meeting our state and SEC required compliance obligations. Nonetheless, even the sale of 100% of the securities in this offering will not provide sufficient capital to fully implement the business plan, but it will provide for vetting of the business plan to support pursuing investment capital.
Our current cash on hand is $6,402, which is allocated to cover the expenses associated with this offering. These funds are being paid by us and not from this offering. Accordingly, we anticipate that our current cash on hand is not sufficient to meet the new obligations associated with being a company that is fully reporting with the SEC. However, to the extent that we do not expend the entire cash on hand on this offering, the remaining cash will be allocated to cover these new reporting company obligations, and our “Use of Proceeds” would be adjusted accordingly. Nonetheless, based on our disclosure above under “Use of Proceeds,” which is based on utilizing the entire cash on hand for this offering, we anticipate that any level of capital raised above 35% will allow us minimal operations for a twelve month period while meeting our State and SEC required compliance obligations. Although, the sale of 100% of the securities in this offering will not provide sufficient capital to fully implement the business plan, it will provide for vetting of the business plan to support pursuing investment capital.
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We anticipate needing $575,000 (subsequent to this $37,500 capital raise) in order to effectively execute our business plan over the next eighteen months. Currently available cash is not sufficient to allow us to commence full execution of our business plan. Our business expansion will require significant capital resources that may be funded through the issuance of common stock or of notes payable or other debt arrangements that may affect our debt structure. Despite our current financial status we believe that we may be able to issue notes payable or debt instruments in order to start executing our business plan. However, there can be no assurance that we will be able to raise money in this fashion and have not entered into any agreements that would obligate a third party to provide us with capital.
Through April 30, 2013, we spent $92 on general and administrative operating expenses. We raised the cash amounts to be used in these activities from the sale of common stock to our sole officer and director. We currently have accrued liabilities of $2,500 and working capital of $6,402.
As of April 30, 2013 we had $8,908 cash on hand.
To date, the Company has managed to keep our monthly cash flow requirement low for two reasons. First, our sole officer does not draw a salary at this time. Second, the Company has been able to keep our operating expenses to a minimum by operating in space owned by our sole officer.
As of the date of this registration statement, the current funds available to the Company will not be sufficient to continue maintaining a reporting status. Management believes if the Company cannot maintain its reporting status with the SEC it will have to cease all efforts directed towards the Company. As such, any investment previously made would be lost in its entirety.
The Company currently has no external sources of liquidity such as arrangements with credit institutions or off-balance sheet arrangements that will have or are reasonably likely to have a current or future effect on our financial condition or immediate access to capital.
The Sole director and officer has made no commitments written or oral, with respect to providing a source of liquidity in the form of cash advances, loans and/or financial guarantees.
If the Company is unable to raise the funds partially through this offering the Company will seek alternative financing through means such as borrowings from institutions or private individuals. There can be no assurance that the Company will be able to keep costs from being more than these estimated amounts or that the Company will be able to raise such funds. Even if we sell all shares offered through this registration statement, we expect that the Company will seek additional financing in the future. However, the Company may not be able to obtain additional capital or generate sufficient revenues to fund our operations. If we are unsuccessful at raising sufficient funds, for whatever reason, to fund our operations, the Company may be forced to seek a buyer for our business or another entity with which we could create a joint venture. If all of these alternatives fail, we expect that the Company will be required to seek protection from creditors under applicable bankruptcy laws.
Our independent auditor has expressed doubt about our ability to continue as a going concern and believes that our ability is dependent on our ability to implement our business plan, raise capital and generate revenues. See Note 2 of our financial statements.
Recent Federal legislation, including the Sarbanes-Oxley Act of 2002, has resulted in the adoption of various corporate governance measures designed to promote the integrity of the corporate management and the securities markets. Some of these measures have been adopted in response to legal requirements. Others have been adopted by companies in response to the requirements of national securities exchanges, such as the NYSE or The NASDAQ Stock Market, on which their securities are listed. Among the corporate governance measures that are required under the rules of national securities exchanges are those that address board of directors’ independence, audit committee oversight, and the adoption of a code of ethics. Our Board of Directors is comprised of one individual who is also our executive officer. Our executive officer makes decisions on all significant corporate matters such as the approval of terms of the compensation of our executive officer and the oversight of the accounting functions.
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Although the Company has adopted a Code of Ethics and Business Conduct the Company has not yet adopted any of these other corporate governance measures and, since our securities are not yet listed on a national securities exchange, the Company is not required to do so. The Company has not adopted corporate governance measures such as an audit or other independent committees of our board of directors as we presently do not have any independent directors. If we expand our board membership in future periods to include additional independent directors, the Company may seek to establish an audit and other committees of our board of directors. It is possible that if our Board of Directors included independent directors and if we were to adopt some or all of these corporate governance measures, stockholders would benefit from somewhat greater assurances that internal corporate decisions were being made by disinterested directors and that policies had been implemented to define responsible conduct. For example, in the absence of audit, nominating and compensation committees comprised of at least a majority of independent directors, decisions concerning matters such as compensation packages to our senior officer and recommendations for director nominees may be made by a majority of directors who have an interest in the outcome of the matters being decided. Prospective investors should bear in mind our current lack of corporate governance measures in formulating their investment decisions.
Off-Balance Sheet Arrangements
We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to our stockholders.
Inflation
The effect of inflation on our revenues and operating results has not been significant.
Significant Accounting Policies
Our financial statements are affected by the accounting policies used and the estimates and assumptions made by management during their preparation. A complete listing of these policies is included in Note 3 of the notes to our financial statements for the year ended April 30, 2013. We have identified below the accounting policies that are of particular importance in the presentation of our financial position, results of operations and cash flows, and which require the application of significant judgment by management.
The Company has elected to use the extended transition period for complying with new or revised financial accounting standards available under Section 102(b)(2)(B) of the Act. Among other things, this means that the Company’s independent registered public accounting firm will not be required to provide an attestation report on the effectiveness of the Company’s internal control over financial reporting so long as it qualifies as an emerging growth company, which may increase the risk that weaknesses or deficiencies in the internal control over financial reporting go undetected. Likewise, so long as it qualifies as an emerging growth company, the Company may elect not to provide certain information, including certain financial information and certain information regarding compensation of executive officers that would otherwise have been required to provide in filings with the SEC, which may make it more difficult for investors and securities analysts to evaluate the Company. As a result, investor confidence in the Company and the market price of its common stock may be adversely affected
Use of Estimates: The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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.
Research and Development Expenses: Expenditures for research and development will be expensed as incurred.
Earnings (Loss) Per Share: Basic loss per share is computed by dividing net loss attributable to common stockholders by the weighted average common shares outstanding for the period. Diluted loss per share is computed giving effect to all potentially dilutive common shares. Potentially dilutive common shares may consist of incremental shares issuable upon the exercise of stock options and warrants and the conversion of notes payable to common stock. In periods in which a net loss has been incurred, all potentially dilutive common shares are considered antidilutive and thus are excluded from the calculation. At April 30, 2013 the Company did not have any potentially dilutive common shares.
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CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND FINANCIAL DISCLOSURE
Messineo & Co, CPAs, LLC has audited our Financial Statements for the period from April 8, 2013 (date of inception) through April 30, 2013 and to the extent set forth in its report, which are included herein in reliance upon the authority of said firm as experts in accounting and auditing. There were no disagreements related to accounting principles or practices, financial statement disclosure, internal controls or auditing scope or procedure during the two fiscal years and interim period.
CODE OF BUSINESS CONDUCT AND ETHICS
On April 8, 2013 we adopted a Code of Ethics and Business Conduct which is applicable to our employees and which also includes a Code of Ethics for our CEO and principal financial officer and persons performing similar functions. A code of ethics is a written standard designed to deter wrongdoing and to promote
| | |
| · | honest and ethical conduct, |
| | |
| · | full, fair, accurate, timely and understandable disclosure in regulatory filings and public statements, |
| | |
| · | compliance with applicable laws, rules and regulations, |
| | |
| · | the prompt reporting violation of the code, and |
| | |
| · | accountability for adherence to the code. |
A copy of our Code of Business Conduct and Ethics has been filed with the Securities and Exchange Commission as an exhibit to this S-1 filing. Any person desiring a copy of the Code of Business Conduct and Ethics, can obtain one by going to Edgar and looking at the attachments to our this S-1 filing.
MANAGEMENT
Officer and Director
Our sole officer and director will serve until her successor is elected and qualified. Our officers are elected by the board of directors to a term of one (1) year and serve until their successor is duly elected and qualified, or until they are removed from office. The board of directors has no nominating, auditing or compensation committees.
The name, address, age and position of our president, secretary/treasurer, and director and vice president is set forth below:
| | | | |
NAME AND ADDRESS | | AGE | | POSITION(S) |
Jocelyn Nicholas 3811 Alden Way Sarasota, FL. 34232 | | 44 | | President, Secretary/ Treasurer, Principal Executive Officer, Principal Financial Officer and sole member of the Board of Directors |
The person named above has held her offices/positions since the inception of our company and is expected to hold her offices/positions until the next annual meeting of our stockholders.
Business Experience
JOCELYN NICHOLAS, SOLE OFFICER AND DIRECTOR
Ms. Nicholas is our founder and has served as our sole officer and director since our inception. She has over 15 years experience in the Spa field as a Message Therapist, Esthetician, Hair Stylist, and Nail Specialist. From 2002-2004 she was a Nail Technician and Hair Stylist for Allure Salon, Sarasota, FL, 2005-Present she is a Owner/Operator of Tranquil Moments, Sarasota, FL. Ms. Nicholas launched and managed Tranquil Moments Day Spa providing massage therapy, esthetician services, hair styling, manicures, pedicures specializing with clients of all ages. Ms. Nicholas also provided mobile spa services to assisted living facilities for the elderly. She received her hair styling and cosmetology degree from Capri School of Hair Design, 1987, Nail Specialist diploma from Fashion Fo c us, 1999, Massage Therapist diploma from Sarasota School of Massage Therapy, 2006 and Esthetician diploma from Sarasota County Technical Institute, 2012.
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CONFLICTS OF INTEREST
As of April 30, 2013, we have no employees. Ms. Nicholas, our founder, Sole officer and director, currently devotes 10 to 25 hours per week to our business as required from time to time without compensation. We have not entered into any formal agreement with Ms. Nicholas regarding the provision of her services to the Company.
Ms. Nicholas is not obligated to commit her full time and attention to our business and accordingly, she may encounter a conflict of interest in allocating her time between our operations and those of other businesses. Presently, Ms. Nicholas earns her livelihood as a owner of a Tranquil Moments Day Spa.
Although Ms. Nicholas is presently able to devote 10 to 25 hours per week to our business while maintaining her own livelihood, this may change. Also, if we require Ms. Nicholas to devote more than 10 to 25 hours per week to our business on a regular basis for an extended period, it is uncertain that she will be able to satisfy our requirements unless we have sufficient resources to compensate her for any lost income from her livelihood.
In general, officers and directors of a corporation are required to present business opportunities to the corporation if:
| | |
| · | the corporation could financially undertake the opportunity; |
| | |
| · | the opportunity is within the corporation’s line of business; and |
| | |
| · | it would be unfair to the corporation and its stockholders not to bring the opportunity to the attention of the corporation. |
COMMITTEES OF THE BOARD OF DIRECTORS
Our sole director has not established any committees, including an Audit Committee, a Compensation Committee or a Nominating Committee, or any committee performing a similar function. The functions of those committees are being undertaken by our sole director. Because we do not have any independent directors, our sole director believes that the establishment of committees of the Board would not provide any benefits to our company and could be considered more form than substance.
We do not have a policy regarding the consideration of any director candidates that may be recommended by our stockholders, including the minimum qualifications for director candidates, nor has our sole director established a process for identifying and evaluating director nominees. We have not adopted a policy regarding the handling of any potential recommendation of director candidates by our stockholders, including the procedures to be followed. Our sole director has not considered or adopted any of these policies as we have never received a recommendation from any stockholder for any candidate to serve on our Board of Directors.
Given our relative size and lack of directors and officers insurance coverage, we do not anticipate that any of our stockholders will make such a recommendation in the near future. While there have been no nominations of additional directors proposed, in the event such a proposal is made, all current members of our Board will participate in the consideration of director nominees.
Our sole director is not an “audit committee financial expert” within the meaning of Item 401(e) of Regulation S-K. In general, an “audit committee financial expert” is an individual member of the audit committee or Board of Directors who:
| | |
| · | understands generally accepted accounting principles and financial statements, |
| | |
| · | is able to assess the general application of such principles in connection with accounting for estimates, accruals and reserves, |
| | |
| · | has experience preparing, auditing, analyzing or evaluating financial statements comparable to the breadth and complexity to our financial statements, |
| | |
| · | understands internal controls over financial reporting, and |
| | |
| · | understands audit committee functions. |
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Our Board of Directors is comprised of solely of Ms. Nicholas who was integral to our formation and who is involved in our day to day operations. While we would prefer to have an audit committee financial expert on our board of directors, Ms. Nicholas does not have a professional background in finance or accounting. As with most small, early stage companies until such time our company further develops its business, achieves a stronger revenue base and has sufficient working capital to purchase directors and officers insurance, the Company does not have any immediate prospects to attract independent directors. When the Company is able to expand our Board of Directors to include one or more independent directors, the Company intends to establish an Audit Committee of our Board of Directors. It is our intention that one or more of these independent directors will also qualify as an audit committee financial expert. Our securities are not quoted on an exchange that has requirements that a majority of our Board members be independent and the Company is not currently otherwise subject to any law, rule or regulation requiring that all or any portion of our Board of Directors include “independent” directors, nor are we required to establish or maintain an Audit Committee or other committee of our Board of Directors.
Wedo not have any independent directors and the Companyhas not voluntarily implemented various corporate governance measures, in the absence of which, stockholders may have more limited protections against interested director transactions, conflicts of interest and similar matters.
INDEMNIFICATION OF DIRECTORS AND OFFICERS
Title XXXVI, Chapter 607, of the Florida Statutes (the “Florida Business Corporation Act”) permits, but does not require, corporations to indemnify a director, officer or control person of the corporation for any liability asserted against her and liability and expenses incurred by her in his capacity as a director, officer, employee or agent, or arising out of her status as such, if he or she acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the corporation, and, unless the Articles of Incorporation provide otherwise, whether or not the corporation has provided for indemnification in its Articles of Incorporation. Our Articles of Incorporation have no separate provision for indemnification of directors, officers, or control persons.
Regarding indemnification for liabilities arising under the Securities Act of 1933, which may be permitted to directors or officers under Florida law, we are informed that, in the opinion of the Securities and Exchange Commission, indemnification is against public policy, as expressed in the Act and is, therefore, unenforceable.
EXECUTIVE COMPENSATION
We have made no provisions for paying cash or non-cash compensation to our sole officer and director. No salaries are being paid at the present time, no salaries or other compensation were paid in cash, or otherwise, for services performed prior to April 8, , 2013 our date of inception, and no compensation will be paid unless and until our operations generate sufficient cash flows.
The table below summarizes all compensation awarded to, earned by, or paid to our named executive officer for all services rendered in all capacities to us for the period from inception April 8, 2013 through April 30, 2013.
Summary Compensation Table
| | | | | | | | | | | | | | | | | | |
Name | | | | | | | | | | | | Non-Equity | | Nonqualified | | | | |
and | | | | | | | | Stock | | Option | | Incentive Plan | | Deferred | | All Other | | |
principal | | | | Salary | | Bonus | | Awards | | Awards | | Compensation | | Compensation | | Compensation | | Total |
position | | Year | | ($) | | ($) | | ($) | | ($) | | ($) | | Earnings ($) | | ($) | | ($) |
Jocelyn Nicholas CEO | | 2013 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 | | 0 |
We have not paid any salaries to our sole director and officer as of the date of this Prospectus. We do not anticipate beginning to pay salaries until we have adequate funds to do so. There are no other stock option plans, retirement, pension, or profit sharing plans for the benefit of our officer and director other than as described herein.
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Outstanding Equity Awards at Fiscal Year-End
The table below summarizes all unexercised options, stock that has not vested, and equity incentive plan awards for each named executive officer as of April 30, 2013.
| | | | | | | | | | | |
| Option Awards | | Stock Awards |
Name | Number of Securities Underlying Unexercised Option (#) Exercisable | Number of Securities Underlying Unexercised Options (#) Unexercisable | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) | Option Exercise Price ($) | Option Expiration Date | Number of Shares or Units of Stock That Have Not Vested (#) | Market Value of Shares or Units of Stock That Have Not Vested ($) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (#) |
Jocelyn Nicholas | — | — | — | — | — | — | — | — | — |
There were no grants of stock options since inception to the date of this Prospectus.
We do not have any long-term incentive plans that provide compensation intended to serve as incentive for performance.
Our sole director has not adopted a stock option plan. We have no plans to adopt a stock option plan, but may choose to do so in the future. If such a plan is adopted, this may be administered by the board or a committee appointed by the board (the “Committee”). The committee would have the power to modify, extend or renew outstanding options and to authorize the grant of new options in substitution therefore, provided that any such action may not impair any rights under any option previously granted. We may develop an incentive based stock option plan for our officer and director and may reserve up to 10% of our outstanding shares of common stock for that purpose.
Options Grants during the Last Fiscal Year / Stock Option Plans
We do not currently have a stock option plan in favor of any director, officer, consultant or employee of our company. No individual grants of stock options, whether or not in tandem with stock appreciation rights known as SARs or freestanding SARs have been made to our Sole director and officer since our inception; accordingly, no stock options have been granted or exercised by our sole director and officer since we were founded.
Aggregated Options Exercises in Last Fiscal Year
No individual grants of stock options, whether or not in tandem with stock appreciation rights known as SARs or freestanding SARs have been made to our sole director and officer since our inception; accordingly, no stock options have been granted or exercised by our sole director and officer since we were founded.
Long-Term Incentive Plans and Awards
We do not have any long-term incentive plans that provide compensation intended to serve as incentive for performance. No individual grants or agreements regarding future payouts under non-stock price-based plans have been made to our sole director and officer or any employee or consultant since our inception; accordingly, no future payouts under non-stock price-based plans or agreements have been granted or entered into or exercised by our Sole director and officer or employees or consultants since we were founded.
Compensation of Directors
Our sole director is not compensated by us for acting as such. He is reimbursed for reasonable out-of-pocket expenses incurred. There are no arrangements pursuant to which our Sole director is or will be compensated in the future for any services provided as a director.
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We do not have any agreements for compensating our directors for their services in their capacity as directors, although such directors are expected in the future to receive stock options to purchase shares of our common stock as awarded by our board of directors.
Employment Contracts, Termination of Employment, Change-In-Control Arrangements
There are no employment contracts or other contracts or arrangements with our officer or director other than those disclosed in this report. There are no compensation plans or arrangements, including payments to be made by us, with respect to Ms. Nicholas that would result from her resignation, retirement or any other termination. There are no arrangements for directors, officers or employees that would result from a change-in-control.
Indebtedness of Directors, Senior Officers, Executive Officers and Other Management
Neither our sole director and officer nor any associate or affiliate of our company during the last two fiscal years is or has been indebted to our company by way of guarantee, support agreement, letter of credit or other similar agreement or understanding currently outstanding.
Director Compensation
The table below summarizes all compensation awarded to, earned by, or paid to our sole director for all services rendered in all capacities to us for the period from inception April 8, 2013 through April 30, 2013.
Director Compensation
| | | | | | | |
Name | Fees Earned or Paid in Cash ($) | Stock Awards ($) | Option Awards ($) | Non-Equity Incentive Plan Compensation ($) | Change in Pension Value and Non-Qualified Deferred Compensation Earnings ($) | All Other Compensation ($) | Total ($) |
Jocelyn Nicholas | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
At this time, we have not entered into any employment agreements with our sole officer and director. If there is sufficient cash flow available from our future operations, we may enter into employment agreements with our sole officer and director or future key staff members.
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
The following table sets forth, as of the date of this prospectus, the total number of shares owned beneficially by our Sole officer and director, and key employees, individually and as a group, and the present owners of 5% or more of our total outstanding shares. The table also reflects what her ownership will be assuming completion of the sale of all shares in this offering. The stockholder listed below has direct ownership of her shares and possesses sole voting and dispositive power with respect to the shares.
| | | | | | | |
Title of Class | | Name and Address of Beneficial Owner | | Amount and Nature of Beneficial Ownership | | Percent of Class | |
Common Stock | | Jocelyn Nicholas | | 9,000,000 | | 100 | % |
| | 3811 Alden Way. | | | | | |
| | Sarasota, FL 34232 | | | | | |
| | | | | | | |
| | All Officers and Directors as a Group | | 9,000,000 | | 100 | % |
| | (1 person) | | | | | |
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The following table sets forth the beneficial ownership table after the anticipated 100% completion of the offering.
After completion of the offering
| | | | | | | |
Title of Class | | Name and Address of Shareholders | | Amount and Nature of Shareholders Ownership | | Percent of Class | |
Common Stock | | Jocelyn Nicholas | | 9,000,000 | | 75 | % |
| | 3811 Alden Way | | | | | |
| | Sarasota, FL 34232 | | | | | |
| | | | | | | |
| | All other Shareholders | | 3,000,000 | | 25 | % |
Change in Control
We are not aware of any arrangement that might result in a change in control of our company in the future.
CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONS
On April 30, 2013 we issued 9,000,000 shares of our common stock to our sole director and officer at $0.001 per share for aggregate proceeds of $9,000.
There have been no other transactions since our inception April 8, 2013, or any currently proposed transactions in which we are, or plan to be, a participant and in which any related person had or will have a direct or indirect material interest.
Director Independence
We intend to quote our securities on the OTC Bulletin Board which does not have any director independence requirements. Once we engage further directors and officers, we plan to develop a definition of independence and scrutinize our Board of Directors with regard to this definition.
Legal Proceedings
We know of no material, active or pending legal proceedings against us, nor are we involved as a plaintiff in any material proceedings or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered beneficial shareholder are an adverse party or has a material interest adverse to us.
We intend to furnish annual reports to stockholders, which will include audited financial statements reported on by our Certified Public Accountants. In addition, we will issue unaudited quarterly or other interim reports to stockholders, as we deem appropriate or required by applicable securities regulations.
REPORTS TO SECURITY HOLDERS
As a result of this offering, we will become subject to the information and reporting requirements of the Exchange Act and, in accordance with this law, will file periodic reports, proxy statements and other information with the SEC. These periodic reports, proxy statements and other information will be available for inspection and copying at the SEC’s Public Reference Room at 100 F Street, NE, Washington DC 20549. If we fail to meet the Exchange Act’s reporting requirements we will lose our status as a reporting Issuer with the SEC. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. You can receive copies of these documents upon payment of a duplicating fee by writing to the SEC. The public may also read any materials filed by us with the SEC through the SEC’s website at www.sec.gov. In addition to documents related to the registration statement of which this prospectus forms a part, you may access our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act with the SEC free of charge at www.sec.gov.
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WHERE YOU CAN FIND MORE INFORMATION
We have filed with the Securities and Exchange Commission, 100 F Street NE, Washington, D.C. 20549, under the Securities Act of 1933 a registration statement on Form S-1 of which this prospectus is a part, with respect to the shares offered hereby. We have not included in this prospectus all the information contained in the registration statement, and you should refer to the registration statement and our exhibits for further information.
In the Registration Statement, certain items of which are contained in exhibits and schedules as permitted by the rules and regulations of the Securities and Exchange Commission. You can obtain a copy of the Registration Statement from the Securities and Exchange Commission by mail from the Public Reference Room of the Securities and Exchange Commission at 100 F Street, NE, Washington, D.C. 20549, at prescribed rates. In addition, the Securities and Exchange Commission maintains a Web site at http://www.sec.gov containing reports, proxy and information statements and other information regarding registrants that file electronically with the Securities and Exchange Commission. The Securities and Exchange Commission’s telephone number is 1-800-SEC-0330 (1-800-732-0330). These SEC filings are also available to the public from commercial document retrieval services.
You should rely only on the information contained in this prospectus. No finder, dealer, sales person or other person has been authorized to give any information or to make any representation in connection with this offering other than those contained in this prospectus and, if given or made, such information or representation must not be relied upon as having been authorized by ENVOY GROUP CORP.. This prospectus does not constitute an offer to sell or a solicitation of an offer to buy any of the securities offered hereby by anyone in any jurisdiction in which such offer or solicitation is not authorized or in which the person making such offer or solicitation is not qualified to do so or to any person to whom it is unlawful to make such offer or solicitation.
STOCK TRANSFER AGENT
We have not engaged the services of a transfer agent at this time. However, within the next twelve months we anticipate doing so. Until such a time a transfer agent is retained, we will act as our own transfer agent.
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DEALER PROSPECTUS DELIVERY OBLIGATION
Until a date, which is 90 days after the date of this prospectus, all dealers that effect transactions in these securities whether or not participating in this offering, may be required to deliver a prospectus. This is in addition to the dealers’ obligation to deliver a prospectus when acting as underwriters and with respect to their unsold allotments or subscriptions.
[back cover of prospectus]
ENVOY GROUP CORP.
(A Development Stage Entity)
INDEX TO FINANCIAL STATEMENTS
| | |
| | Page |
| | |
Report of Independent Registered Public Accounting Firm | | F-2 |
| | |
Balance Sheet at April 30, 2013 | | F-3 |
| | |
Statement of Operation for the period April 8, 2013 (date of inception) through April 30, 2013 | | F-4 |
| | |
Statements of Changes in Shareholders’ Equity for the period April 8, 2013 (date of inception) through April 30, 2013 | | F-5 |
| | |
Statements of Cash Flows for the period April 8, 2013 (date of inception) through April 30, 2013 | | F-6 |
| | |
Notes to Financial Statements | | F-7 |
F-1
| |
Messineo & Co, CPAs LLC 2451 N McMullen Booth Rd Ste. 309 Clearwater, FL 33759-1362 T: (727) 421-6268 F: (727) 674-0511 | |
Report of Independent Registered Public Accounting Firm
Board of Directors and Stockholders
ENVOY GROUP CORP.
Sarasota, FL.
We have audited the accompanying balance sheet of ENVOY GROUP CORP. (a development stage entity) as of April 30, 2013 and the related statement of operations, stockholder’s equity and cash flows for the period from April 8, 2013 (date of inception) through April 30, 2013. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as, evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of ENVOY GROUP CORP. (a development stage entity) as of April 30, 2013 and the results of its operations and its cash flows for the period from April 8, 2013 (date of inception) through April 30, 2013 in conformity with accounting principles generally accepted in the United States of America.
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has incurred a loss, has not generated revenue, has not emerged from the development stage, and may be unable to raise further equity. These factors raise substantial doubt about its ability to continue as a going concern. Management’s plans regarding those matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Messineo & Co, CPAs, LLC
Clearwater, Florida
May 13, 2013
F-2
ENVOY GROUP CORP.
(A Development Stage Company)
Balance Sheet
| | | | |
| | April 30, 2013 | |
ASSETS | |
| | | |
CURRENT ASSETS | | | |
Cash and cash equivalents | | $ | 8,908 | |
Total current assets | | | 8,908 | |
| | | | |
TOTAL ASSETS | | $ | 8,908 | |
| | | | |
LIABILITIES AND STOCKHOLDER’S EQUITY | |
| | | | |
CURRENT LIABILITIES | | | | |
Accounts payable & Accrued liabilities | | $ | — | |
Total liabilities | | | — | |
| | | | |
STOCKHOLDER’S EQUITY | | | | |
Capital Stock(Note 4) | | | | |
Authorized: | | | | |
250,000,000 common shares, $0.0001 par value. | | | | |
Issued and outstanding shares: | | | | |
9,000,000 common shares. | | $ | 900 | |
Additional paid-in capital | | | 8,100 | |
Deficit accumulated during the development stage | | | (92 | ) |
Total Stockholder’s Equity | | | 8,908 | |
| | | | |
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY | | $ | 8,908 | |
See accompanying auditors’ report and notes to the financial statements.
F-3
ENVOY GROUP CORP.
(A Development Stage Company)
Statement of Operations
| | | | |
| | For the Period | |
| | from Inception | |
| | April 8, 2013 | |
| | through | |
| | April 30, 2013 | |
| | | |
REVENUES | | $ | — | |
| | | | |
EXPENSES | | | | |
General & Administrative | | $ | 92 | |
Professional Fees | | | — | |
| | | | |
Loss Before Income Taxes | | $ | (92 | ) |
| | | | |
Provision for Income Taxes | | | — | |
| | | | |
Net Loss | | $ | (92 | ) |
| | | | |
PER SHARE DATA: | | | | |
| | | | |
Basic and diluted loss per common share | | $ | (0.00 | ) |
| | | | |
Basic and diluted weighted average common shares outstanding | | | 9,000,000 | |
See accompanying auditors’ report and notes to the financial statements.
F-4
ENVOY GROUP CORP.
(A Development Stage Company)
Statement of Stockholder’s Equity
| | | | | | | | | | | | | | | | | | |
| | | | | | | | | Deficit | | | |
| | | | | | | | | Accumulated | | | |
| | | | | | | Additional | | During the | | | |
| | Common Stock | | Paid-in | | Development | | | |
| | Shares | | | Amount | | Capital | | Stage | | Total | |
| | | | | | | | | | | | |
Inception – April 8, 2013 | | | — | | | $ | — | | $ | — | | $ | — | | $ | — | |
| | | | | | | | | | | | | | | | | |
Common shares issued to Founder for cash at $0.001 per share, April 8, 2013 | | | 9,000,000 | | | | 900 | | | 8,100 | | | — | | | 9,000 | |
| | | | | | | | | | | | | | | | | |
Loss for the period from inception on April 8, 2013 to April 30, 2013 | | | — | | | | — | | | — | | | (92 | ) | | (92 | ) |
| | | | | | | | | | | | | — | | | | |
Balance – April 30, 2013 | | | 9,000,000 | | | $ | 900 | | $ | 8,100 | | $ | (92 | ) | $ | 8,908 | |
See accompanying auditors’ report and notes to the financial statements.
F-5
ENVOY GROUP CORP.
(A Development Stage Company)
Statement of Cash Flows
| | | | |
| | For the Period | |
| | From Inception | |
| | April 8, 2013 | |
| | through | |
| | April 30, 2013 | |
OPERATING ACTIVITIES | | | | |
| | | | |
Net Loss | | $ | (92 | ) |
| | | | |
Changes in Operating Assets and Liabilities: | | | | |
Increase (decrease) in accounts payable and accrued liabilities | | | — | |
Net cash used in operating activities | | | (92 | ) |
| | | | |
INVESTING ACTIVITIES | | | | |
Capital Stock | | | 9,000 | |
Net cash provided by financing activities | | | 9,000 | |
| | | | |
| | | | |
INCREASE IN CASH AND CASH EQUIVALENTS | | | 8,908 | |
| | | | |
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD | | | — | |
| | | | |
CASH AND CASH EQUIVALENTS AT END OF PERIOD | | $ | 8,908 | |
| | | | |
Supplemental Cash Flow Disclosures: | | | | |
| | | | |
Cash paid for: | | | | |
Interest expense | | $ | — | |
Income taxes | | $ | — | |
See accompanying auditors’ report and notes to the financial statements.
F-6
ENVOY GROUP CORP.
(A Development Stage Company)
Notes to Audited Financial Statements
For the Period from April 8, 2013 (Date of Inception) through April 30, 2013
NOTE 1. NATURE OF BUSINESS
ENVOY GROUP CORP. (the “Company”), a Florida corporation, was formed to develop an ENVOY GROUP CORP. It is the company’s intent to develop a service to provide ADULT DAYCARE CENTER business. The Company was incorporated on April 8, 2013 (Date of Inception) with its corporate headquarters located in Sarasota, Florida and its year-end is April 30, 2013.
NOTE 2. GOING CONCERN
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. For the period ended April 30, 2013, the Company had no operations. As of April 30, 2013, the Company has not emerged from the development stage. In view of these matters, the Company’s ability to continue as a going concern is dependent upon the Company’s ability to begin operations and to achieve a level of profitability. The Company intends on financing its future development activities and its working capital needs largely from the sale of public equity securities with some additional funding from other traditional financing sources, including term notes until such time that funds provided by operations are sufficient to fund working capital requirements. The financial statements of the Company do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.
NOTE 3. SIGNIFICANT ACCOUNTING POLICIES
The significant accounting policies followed are:
USE OF ESTIMATES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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.
FINANCIAL INSTRUMENTS
The Company’s balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization.
CASH AND CASH EQUIVALENTS
All cash, other than held in escrow, is maintained with a major financial institution in the United States. Deposits with this bank may exceed the amount of insurance provided on such deposits. Temporary cash investments with an original maturity of three months or less are considered to be cash equivalents.
DEFERRED INCOME TAXES AND VALUATION ALLOWANCE
The Company accounts for income taxes under FASB ASC 740 “Income Taxes.” Under the asset and liability method of FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under FASB ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.
F-7
ENVOY GROUP CORP.
(A Development Stage Company)
Notes to Audited Financial Statements
For the Period from April 8, 2013 (Date of Inception) through April 30, 2013
RESEARCH AND DEVELOPMENT EXPENSES
Expenditures for research, development, and engineering of products are expensed as incurred. There has been no research and development cost incurred for the period April 8, 2013 (date of inception) through April 30, 2013.
COMMON STOCK
The Company records common stock issuances when all of the legal requirements for the issuance of such common stock have been satisfied.
NET INCOME (LOSS) PER COMMON SHARE
Net income (loss) per share is calculated in accordance with FASB ASC 260, “Earnings Per Share.” The weighted-average number of common shares outstanding during each period is used to compute basic earning or loss per share. Diluted earnings or loss per share is computed using the weighted average number of shares and diluted potential common shares outstanding. Dilutive potential common shares are additional common shares assumed to be exercised.
Basic net income (loss) per common share is based on the weighted average number of shares of common stock outstanding at April 30, 2013. As of April 30, 2013, the Company had no dilutive potential common shares.
REVENUE AND COST RECOGNITION
The Company has no current source of revenue; therefore the Company has not yet adopted any policy regarding the recognition of revenue or cost.
ADVERTISING
Advertising costs are expensed as incurred. There has been no advertising cost incurred for the three months ended April 30, 2013 or for the period April 8, 2013 (date of inception) through April 30, 2013.
RECENT ACCOUNTING PRONOUNCEMENTS
Except for rules and interpretive releases of the SEC under authority of federal securities laws and a limited number of grandfathered standards, the FASB Accounting Standards Codification™ (“ASC”) is the sole source of authoritative GAAP literature recognized by the FASB and applicable to the Company. Management has reviewed the aforementioned rules and releases and believes any effect will not have a material impact on the Company’s present or future financial statements.
NOTE 4. INCOME TAXES
The Company has not recognized an income tax benefit for its operating losses generated based on uncertainties concerning its ability to generate taxable income in future periods. The tax benefit for the periods presented is offset by a valuation allowance established against deferred tax assets arising from the net operating losses and other temporary differences, the realization of which could not be considered more likely than not. In future periods, tax benefits and related deferred tax assets will be recognized when management considers realization of such amounts to be more likely than not. For the period April 8, 2013 (date of inception) through April 30, 2013, the Company incurred losses of $92. The net operating loss, resulting from operating activities, result in deferred tax assets at the effective statutory rates. The deferred tax asset has been off-set by an equal valuation allowance.
F-8
ENVOY GROUP CORP.
(A Development Stage Company)
Notes to Audited Financial Statements
For the Period from April 8, 2013 (Date of Inception) through April 30, 2013
| | | | |
| | April 8, 2013 | |
| | (Date of Inception) | |
| | through | |
| | April 30, 2013 | |
Tax benefit at U.S. statutory rate | | $ | — | |
State income tax benefit, net of federal benefit. | | | — | |
| | | — | |
Valuation allowance | | | — | |
| | $ | — | |
The Company did not have any temporary differences for the period from April 8, 2013 (Date of Inception) through April 30, 2013.
NOTE 5. SHAREHOLDER’S EQUITY
COMMON STOCK
The authorized common stock of the Company consists of 250,000,000 shares with a par value of $0.0001. The Company issued 9,000,000 shares of our $.0001 par value common stock to Jocelyn Nicholas, our CEO and sole director, on April 8, 2013 for cash in the amount of $9,000 (per share price of $0.001).
There are no warrants or options outstanding to acquire any additional shares of common stock of the Company.
NOTE 6. RELATED PARTY TRANSACTIONS
On April 8, 2013, the Company sold 9,000,000 shares of common stock to its founder for $0.001 per share.
The officer and director of the Company is or may be involved in other business activities and may, in the future, become involved in other business opportunities that become available. He may face a conflict in selecting between the Company and other business interests. The Company has not formulated a policy for the resolution of such conflicts.
The Company does not own or lease property or lease office space. The office space used by the Company was arranged by the founder of the Company to use at no charge.
The above is not necessarily indicative of the amounts that would have been incurred had a comparable transaction been entered into with independent parties.
NOTE 7. COMMITMENTS AND CONTINGENCY
From time to time the Company may be a party to litigation matters involving claims against the Company. Management believes that there are no current matters that would have a material effect on the Company’s financial position or results of operations.
NOTE 8. SUBSEQUENT EVENTS
Management has evaluated subsequent events through May 17, 2013, the date the financial statements were available to be issued. Management is not aware of any significant events that occurred subsequent to the balance sheet date that would have a material effect on the financial statements thereby requiring adjustment or disclosure.
F-9
PART II. INFORMATION NOT REQUIRED IN THE PROSPECTUS
OTHER EXPENSES OF ISSUANCE AND DISTRIBUTION
The registrant will pay for all expenses incurred by this offering. Whether or not all of the offered shares are sold, these expenses are estimated as follows:
| | | | |
Securities and Exchange Commission registration fee | | $ | 5 | |
Federal Taxes | | $ | — | |
State Taxes and Fees | | $ | — | |
Listing Fees | | $ | — | |
Printing Fees | | $ | 495 | |
Transfer Agent Fees | | $ | 1,625 | |
Accounting fees and expenses | | $ | 2,625 | |
Legal fees and expenses | | $ | 4,250 | |
TOTAL | | $ | 9,000 | |
INDEMNIFICATION OF DIRECTORS AND OFFICERS
Title XXXVI, Chapter 607, of the Florida Statutes (the “Florida Business Corporation Act”) permits, but does not require, corporations to indemnify a director, officer or control person of the corporation for any liability asserted against her and liability and expenses incurred by her in her capacity as a director, officer, employee or agent, or arising out of her status as such, if he or she acted in good faith and in a manner he or she reasonably believed to be in, or not opposed to, the best interests of the corporation, and, unless the Articles of Incorporation provide otherwise, whether or not the corporation has provided for indemnification in its Articles of Incorporation. Our Articles of Incorporation have no separate provision for indemnification of directors, officers, or control persons.
Regarding indemnification for liabilities arising under the Securities Act of 1933, which may be permitted to directors or officers under Florida law, we are informed that, in the opinion of the Securities and Exchange Commission, indemnification is against public policy, as expressed in the Act and is, therefore, unenforceable.
RECENT SALES OF UNREGISTERED SECURITIES
During the last three fiscal years we have had the following issuances of unregistered securities:
| |
(a) | On April 8, 2013, we issued 9,000,000 shares to Ms. Jocelyn Nicholas, the Company’s founder, in exchange for cash of $9,000. We relied upon Section 4(2) of the Securities Act, which exempts from registration “transactions by an issuer not involving any public offering |
It is our belief Ms. Nicholas had such knowledge and experience in financial and business matters that she was capable of evaluating the merits and risks of the investment and therefore did not need the protections offered their shares under Securities and Act of 1933, as amended. Ms. Nicholas certified that she was purchasing the shares for their own accounts, with investment intent. This offering was not accompanied by general advertisement or general solicitation and the shares were issued with a Rule 144 restrictive legend.
EXHIBITS
The following exhibits are filed as part of this registration statement, pursuant to Item 601 of Regulation K. All exhibits have been previously filed unless otherwise noted.
| | |
EXHIBIT NO. | | DOCUMENT DESCRIPTION |
3.1 * | | Articles of Incorporation of ENVOY GROUP CORP. |
3.2 * | | Bylaws of ENVOY GROUP CORP. |
4.1 * | | Specimen Stock Certificate of ENVOY GROUP CORP. |
5.1 | | Opinion of Counsel. |
5.2 | | Opinion of Counsel. |
14.1 * | | Code of Ethics. |
23.1 | | Consent of Accountants. |
99.1 * | | Subscription Agreement ENVOY GROUP CORP. |
* previously filed
II-1
UNDERTAKINGS
The 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; |
| | |
| (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 SEC 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; and |
| | |
| (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; |
| |
2. | That for the purpose of determining liability under the Securities Act, each 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; and |
| |
4. | That, for the purpose of determining liability under the Securities Act of 1933 to any purchaser, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on 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 registration 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 registrant undertakes that in a primary offering of securities of the 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 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 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 registrant or used or referred to by the registrant; |
| | |
| (iii) | The portion of any other free writing prospectus relating to the offering containing material information about the registrant or its securities provided by or on behalf of the registrant; and |
| | |
| (iv) | Any other communication that is an offer in the offering made by the registrant to the purchaser. |
II-2
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 SEC such indemnification is against public policy as expressed in the Securities 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 director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer 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 indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.
SIGNATURES
Pursuant to the requirements of the Securities Act, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Sarasota, FL on July 25, 2013.
| | |
| | ENVOY GROUP CORP. |
| | |
| By: | /s/ Jocelyn Nicholas |
| | President, Chief Executive Officer, |
| | Chief Financial Officer, Principal |
| | Accounting Officer, Secretary, |
| | Treasurer, Director |
In accordance with the requirements of the Securities Act, this Prospectus has been signed by the following persons in the capacities and on the dates stated.
| | | | |
SIGNATURES | | TITLE | | DATE |
| | | | |
/s/ Jocelyn Nicholas | | President, Chief Executive Officer, | | July 25, 2013 |
Jocelyn Nicholas | | Chief Financial Officer, Principal | | |
| | Accounting Officer, Secretary, | | |
| | Treasurer, Director | | |
II-3