UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 1U
CURRENT REPORT
Pursuant Regulation A of the Securities Act of 1933
(non-required under Tier 1)
June 30, 2021
(Date of earliest event reported)
THE BEBOP CHANNEL CORPORATION
(Exact name of registrant as specified in its charter)
New York | 7812 | 84-2190936 |
(State of Incorporation ) | (Primary Standard Classification Code) | (IRS Employer Identification No.) |
Sue Veres Royal
Chief Operating Officer
178 Columbus Ave., P.O. Box 231143
New York, NY 10023
Telephone: 202-302-6703
Common Shares
(Title of each class of securities issued pursuant to Regulation A)
Item 9. Other Events
1. | Increase in Ownership Officers Directors |
CEO Steve Clemons’s ownership in the Company has increased from 5.7% to 10%, totalling 875,000 shares as of June 30, 2021.
2. | Material Partnership |
Company has entered into a partnership with Philip Morris International (PMI) regarding certain content and messaging on the The BeBop Channel platform; including certain branded imagery, messaging, and video advertisements, expected to begin being published on the platform at or around August 2021. This relationship has resulted in $350,000 in accounts receivable for the year ending June 30, 2021 to cover a forward looking six month period in fiscal year 2022. (See Financial Statements). Company views this partnership as a very positive development in it’s growth and visibility and in-line with Company’s mission to promote global conversations amongst artists and patrons.
3. | OTC Listing |
Company reasonably expects to gain clearance for its shares to be traded on the OTC Pink Markets in the current quarter, and is well into what it believes is the final comment period for its 211 filing.
4. | Financial Statements |
Annual and Semi-Annual statements for fiscal year ending June, 30, 2021. These statements are not required under Regulation A Tier 1, but are provided for transparency purposes.
FINANCIAL STATEMENTS
(UNAUDITED)
ANNUAL
Ending June 30, 2021
SEMI-ANNUAL
Ending December 31, 2020
TABLE OF CONTENTS
BALANCE SHEET ANNUAL | PAGE 2 | ||
OPERATING STATEMENT ANNUAL | PAGE 3 | ||
STATEMENT OF CASH FLOWS ANNUAL | PAGE 4 | ||
INVESTING ACTIVITIES ANNUAL | PAGE 5 | ||
FINANCING ACTIVITIES ANNUAL | PAGE 5 | ||
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT ANNUAL | PAGE 6 | ||
CHANGES IN SHAREHOLDER EQUITY ANNUAL | PAGE 7 | ||
NOTES TO FINANCIAL STATEMENTS ANNUAL | PAGES 8-9 |
BALANCE SHEET SEMI-ANNUAL | PAGE 10 | ||
OPERATING STATEMENT SEMI-ANNUAL | PAGE 11 | ||
STATEMENT OF CASH FLOWS SEMI-ANNUAL | PAGE 12 | ||
INVESTING ACTIVITIES SEMI-ANNUAL | PAGE 13 | ||
FINANCING ACTIVITIES SEMI-ANNUAL | PAGE 13 | ||
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT SEMI-ANNUAL | PAGE 14 | ||
CHANGES IN SHAREHOLDER EQUITY SEMI-ANNUAL | PAGE 15 | ||
NOTES TO FINANCIAL STATEMENTS SEMI-ANNUAL | PAGES 16-17 |
BALANCE SHEET
JULY 1, 2020 to JUNE 30, 2021
ASSETS | As of June 30, 2021 | |||
Cash On Hand | $ | 16,865.00 | ||
Film Library | $ | 1,720,000.00 | ||
Accounts Receivable | $ | 350,000.00 | ||
TOTAL ASSETS | $ | 2,086,865.00 | ||
LIABILITIES AND EQUITY | ||||
LIABILITIES | $ | 0.00 | ||
EQUITY | $ | 2,086,865.00 | ||
TOTAL EQUITY | $ | 2,086,865.00 | ||
TOTAL LIABILITIES AND EQUITY | $ | 2,086,865.00 |
2 |
OPERATING STATEMENT
JULY 1, 2020 to JUNE 30, 2021
(UNAUDITED)
INCOME | $ | 0.00 | ||
EXPENSES | ||||
APP DEVELOPER | $ | 8102.00 | ||
TRANSFER AGENT | $ | 3,450.00 | ||
PRODUCTION TALENT | $ | 600.00 | ||
PLATFORM/OFFICE EXPENSE | $ | 1635.19 | ||
INSURANCE | $ | 461.66 | ||
REGULATORY FEES | $ | 12,009.00 | ||
STATE/FEDERAL TAXES | $ | 53.65 | ||
ACCOUNTING | $ | 250.00 | ||
LEGAL FEES | $ | 1,496.00 | ||
ADVERTISING | $ | 1,590.40 | ||
MISC FEES | $ | 39.77 | ||
BANK FEES | $ | 656.61 | ||
EXPENSES EX CREDITS | $ | 30,343.68 | ||
BANK CREDITS | $ | 2,494.00 | ||
TOTAL NET EXPENSES | $ | 27,849.68 | ||
TOTAL EXPENSES | $ | 27,849.68 | ||
NET PROFIT | $ | (27,849.68 | ) |
3 |
STATEMENT OF CASH FLOWS
JULY 1, 2020 to JUNE 30, 2021
(UNAUDITED)
Cash at Beginning of Year | $ | 13,705.00 | ||||
OPERATIONS | ||||||
Cash receipts from | ||||||
Customers | $ | 0.00 | ||||
Other Operations | $0.00 | |||||
FINANCING | ||||||
Stock Sales | $ | 30,200.00 | ||||
Cash Paid for | ||||||
Inventory purchases | $ | 0.00 | ||||
General operating and administrative expenses | $ | 27,849.68 | ||||
Wage expenses | $ | $0.00 | ||||
Interest | $ | 0.00 | ||||
Income taxes | $ | 53.65 | ||||
Net Cash Flow From Operations | $ | 16,056.0 |
4 |
INVESTING ACTIVITIES
None.
FINANCING ACTIVITIES
JULY 1, 2020 to JUNE 30, 2021
Cash receipts from | ||||
Issuance of Stock | $ | 30,200.00 | ||
Borrowing | $ | 0.00 | ||
Cash paid for | ||||
Repurchase of stock treasury stock | $ | 0.00 | ||
Repayment of loans | $ | 0.00 | ||
Dividends | $ | 0.00 | ||
Net Cash Flow From Financing Activities | $ | 30,200.00 | ||
Net Increase in Cash | $ | (27,849.00 | ) | |
Cash at End of Year | $ | 2,351.00 |
5 |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
JULY 1, 2020 to JUNE 30, 2021
As of June 30, 2021 the Company has 8,737,041 shares of common stock ( 0 shares of preferred stock) issued and outstanding, which number of issued and outstanding shares of common stock used throughout this report.
Name and Address of Beneficial Owner | Shares of Common Stock Beneficially Owned | Common Stock Voting Percentage Beneficially Owned | Voting Shares of Preferred Stock | Preferred Stock Voting Percentage Beneficially Owned | Total Voting Percentage Beneficially Owned | |||||||||||
Executive Officers and Directors | ||||||||||||||||
Sue Veres Royal | 2,610,091 | 29.8 | % | NA | NA | 29.8 | % | |||||||||
Gregory Charles Royal | 2,587.500 | 29.6 | % | NA | NA | 29.6 | % | |||||||||
Steven Clemons | 875,000 | 10 | % | NA | NA | 10 | % |
6 |
STOCKHOLDERS’ EQUITY STATEMENT
JULY 1, 2020 to JUNE 30, 2021
(UNAUDITED)
Common Stock | Common Shares | Retained Earnings | Total | |
Beginning Balance | 0.00 | 8,737,041 | (6,282.33) | (6,282.33) |
Issued Shares for Cash This Year | $0.00 | 0 | 0.00 | $0.00 |
Net Income | 0.00 | 0.00 | ($27,849.00) | ($27,849.00) |
Ending Balance | $0.00 | 8,737,041 | ($34,131.33) | ($34,131.33) |
7 |
NOTES TO FINANCIAL STATEMENTS
ANNUAL JULY 1, 2020 to JUNE 30, 2021
Note 1. Accounts Receivable
The company has entered into a advertising partnership with Philip Morris International (PMI) in the amount of $350,000.00 covering a six month period and will co-brand certain content on The BeBop Channel platform commencing on or about August, 2021.
Note 2. Depreciation of Film Library
Depreciation of Film Library was not calculated in this financial report ending June 30,2021 because the library, which was acquired in February, 2020, has not yet been put to use in the manner intended by management i.e., made available to the broader public and AD Networks due to bandwidth limitations. We anticipate depreciation will commence sometime in our first quarter (July-September) 2021due to our soft launch of the platform with our branded partner We anticipate depreciation at a rate of 3.8% ($65,429.00) per year based upon The Bureau of Economic Analysis guidelines as our four year licensing agreement terms with filmmakers we anticipate will be extended into significant multi-year relationships. Our filmmakers, we expect, will provide significant Goodwill with respect to their titles remaining on our platforms at no cost well after their compensated licensing agreements are complete- in tandem with their future works we may display in connection with our future film festivals/
Note 3. Executive Stock Purchase Agreement for 40,000 Shares @ 1.00 per share.
COO Sue Veres Royal (the former CEO) entered into a stock purchase agreement in fiscal year 2020, to purchase 40,000 shares of Common stock @ $1,00 per share payable by February 1, 2021. As of June 30, 2021, the agreement has been satisfied in full.
8 |
Note 4. Veres Purchase Agreement Overpayment.
Veres inadvertently made an overpayment in the amount of $3,500 discovered during the preparation of these financial statements which was refunded to her in June, 2021 prior to the end of the fiscal year and which has been factored into this financial report.
Note 5. Steve Clemons Appointment and Share Issuance
On November 7, 2020 the Company appointed renowned journalist and DC Impresario Steve Clemons to the Board of Directors and named him CEO. Subsequently, and at various times throughout this accounting period, Clemons was gifted, in the aggregate, 875,000 shares for a 10% stake in the Company. The shares were gifted to him by Directors Susan Veres aka Sue Veres Royal and Gregory Charles Royal with 437,500 each. These shares reduced their holdings accordingly and resulted in no new issuance or dilution of shares by the Company. Veres Royal, the former CEO, was subsequently appointed COO.
Note 6. Film Library Asset and Valuation
The film library content was acquired through stock compensation of 2,407,500 shares, in the aggregate, for license agreements with 653 filmmakers lasting through December 2023; The fair value of the library was initially determined as result of a 409A valuation. However, that company conducting the valuation, as a matter of policy, does not provide for its reports to be cited in SEC filings. However.the report may be found independently of this Offering and these financial statements on our website at https://www.beboptv.com/409a-valuation . Additionally, the company concurs that a valuation of the library at $1,720,000 is appropriate and represents fair value and the company does not rely upon the third party valuation as the basis for its valuation in this Offering.
Note 7. Company as a Going Concern
That the company's operations are virtual; and that the founders currently receive no compensation, the company's cash balances and accounts receivable are sufficient to fund the company's current levels of operations for at least 36 months.
9 |
BALANCE SHEET
JULY 1, 2020 to DECEMBER 31, 2020
ASSETS | As of Dec 31, 2020 | |||
Cash On Hand | $ | 27,838.00 | ||
Film Library | $ | 1,720,000.00 | ||
Notes Receivable | $ | 5,000.00 | ||
TOTAL ASSETS | $ | 1,741,056.00 | ||
LIABILITIES AND EQUITY | ||||
LIABILITIES | $ | 0.00 | ||
EQUITY | ||||
TOTAL EQUITY | $ | 1,741,056.00 | ||
TOTAL LIABILITIES AND EQUITY | $ | 1,741,056.00 |
10 |
OPERATING STATEMENT
JULY 1, 2020 to DECEMBER 31, 2020
(UNAUDITED)
INCOME | $ | 0.00 | ||
EXPENSES | ||||
APP DEVELOPER | $ | 4,028.00 | ||
TRANSFER AGENT | $ | 2,279.00 | ||
PRODUCTION TALENT | $ | 0.00 | ||
PLATFORM/OFFICE EXPENSE | $ | 555.63 | ||
INSURANCE | $ | 265.70 | ||
REGULATORY FEES | $ | 3.451.00 | ||
STATE/FEDERAL TAXES | ||||
ACCOUNTING | $ | 250.00 | ||
LEGAL FEES | $ | 200.00 | ||
ADVERTISING | $ | 77.70 | ||
MISC FEES | $ | 39.77 | ||
BANK FEES | $ | 120.00 | ||
EXPENSES EX CREDITS | $ | 11,267.00 | ||
BANK CREDITS | $ | 200.00 | ||
TOTAL NET EXPENSES | $ | 11,067.00 | ||
TOTAL EXPENSES | $ | 11,067.00 | ||
NET PROFIT | $ | (11,067.00 | ) |
11 |
STATEMENT OF CASH FLOWS
JULY 1, 2019 to DECEMBER 31, 2020
(UNAUDITED)
Cash at Beginning of Year | $ | 13,705.00 | ||
OPERATIONS | ||||
Cash receipts from | ||||
Customers | $ | 0.00 | ||
Other Operations | $ | 0.00 | ||
FINANCING | ||||
Stock Sales | $ | 25,200.00 | ||
Cash Paid for | ||||
Inventory purchases | $ | 0.00 | ||
General operating and administrative expenses | $ | 11,067.00 | ||
Wage expenses | $ | 0.00 | ||
Interest | $ | 0.00 | ||
Income taxes | $ | 53.65 | ||
Net Cash Flow From Operations and Financing | $ | 27,838.00 |
12 |
INVESTING ACTIVITIES
None.
INVESTING ACTIVITIES
None.
FINANCING ACTIVITIES
JULY 1, 2019 to DECEMBER 31, 2020
Cash receipts from | ||||
Issuance of Stock | $ | 25,200.00 | ||
Borrowing | $ | 0.00 | ||
Cash paid for | ||||
Repurchase of stock treasury stock | $ | 0.00 | ||
Repayment of loans | $ | 0.00 | ||
Dividends | $ | 0.00 | ||
Net Cash Flow From Financing Activities | $ | 25,200.00 | ||
Net Increase in Cash | $ | (11,067.00 | ) | |
Cash at End of Period | $ | 14,133.00 |
13 |
SECURITY OWNERSHIP OF CERTAIN
BENEFICIAL OWNERS AND MANAGEMENT
JULY 1, 2019 to DECEMBER 31, 2020
As of December 31, 2020 the Company has 8,737,041 shares of common stock ( 0 shares of preferred stock) issued and outstanding, which number of issued and outstanding shares of common stock used throughout this report.
Name and Address of Beneficial Owner | Shares of Common Stock Beneficially Owned | Common Stock Voting Percentage Beneficially Owned | Voting Shares of Preferred Stock | Preferred Stock Voting Percentage Beneficially Owned | Total Voting Percentage Beneficially Owned | |||||||||||||
Executive Officers and Directors | ||||||||||||||||||
Sue Veres Royal | 2,922,591 | 33.4 | % | NA | NA | 33.4 | % | |||||||||||
Gregory Charles Royal | 2,900,000 | 33.1 | % | NA | NA | 33.1 | % | |||||||||||
Steven Clemons | 250,000 | .028 | % | NA | NA | .028 | % |
14 |
STOCKHOLDERS’ EQUITY STATEMENT
JULY 1, 2020 to DECEMBER 31, 2020
(UNAUDITED)
Common Stock | Common Shares | Retained Earnings | Total | |
Beginning Balance | 0.00 | 8,737,041 | (6,282,33) | (6,282.33) |
Issued Shares for Cash This Period | $0.00 | 0 | 0.00 | $0.00 |
Net Income | 0.00 | 0.00 | ($11,067.00) | ($11,067.00) |
Ending Balance | $0.00 | 8,737,041 | ($17,349.33) | ($17,349.33) |
15 |
NOTES TO FINANCIAL STATEMENTS
SEMI-ANNUAL JULY 1, 2019 to DECEMBER 31, 2020
Note 1.
Left Blank
Note 2. Depreciation of Film Library
Depreciation of Film Library was not calculated in this financial report ending June 30,2021 because the library, which was acquired in February, 2020, has not yet been put to use in the manner intended by management i.e., made available to the broader public and AD Networks due to bandwidth limitations. We anticipate depreciation will commence sometime in our first quarter (July-September) 2021due to our soft launch of the platform with our branded partner We anticipate depreciation at a rate of 3.8% ($65,429.00) per year based upon The Bureau of Economic Analysis guidelines as our four year licensing agreement terms with filmmakers we anticipate will be extended into significant multi-year relationships. Our filmmakers, we expect, will provide significant Goodwill with respect to their titles remaining on our platforms at no cost well after their compensated licensing agreements are complete- in tandem with their future works we may display in connection with our future film festivals/
Note 3. Executive Stock Purchase Agreement for 40,000 Shares @ 1.00 per share.
COO Sue Veres Royal (the former CEO) entered into a stock purchase agreement in fiscal year 2020, to purchase 40,000 shares of Common stock @ $1,00 per share payable by February 1, 2021. Cash amounts of $10,000.00 were remitted in Fiscal year ending June 2020. $25000.00 has been remitted in this period ending December 31, 2020 with the remaining balance of $5000 to be paid by February 2021.
Note 4.
Left Blank
Note 5. Steve Clemons Appointment and Share Issuance
On November 7, 2020 the Company appointed renowned journalist and DC Impresario Steve Clemons to the Board of Directors and named him CEO. Subsequently, Clemons was gifted, in the aggregate, 250,000 shares in the Company. The shares were gifted to him by Directors Susan Veres aka Sue Veres Royal and Gregory Charles Royal with 125,000 each. These shares reduced their holdings accordingly and resulted in no new issuance or dilution of shares by the Company. Veres Royal, the former CEO, was subsequently appointed COO.
16 |
Note 6. Film Library Asset and Valuation
The film library content was acquired through stock compensation of 2,407,500 shares, in the aggregate, for license agreements with 653 filmmakers lasting through December 2023; The fair value of the library was initially determined as result of a 409A valuation. However, that company conducting the valuation, as a matter of policy, does not provide for its reports to be cited in SEC filings. However, the report may be found independently of this Offering and these financial statements on our website at https://www.beboptv.com/409a-valuation . Additionally, the company concurs that a valuation of the library at $1,720,000 is appropriate and represents fair value and the company does not rely upon the third party valuation as the basis for its valuation in this Offering.
Note 7. Company as a Going Concern
That the company's operations are virtual; and that the founders currently receive no compensation, the company's cash balances and anticipated accounts receivable in Q4, the Company believes will be sufficient to fund the company's current levels of operations for at least 36 months.
SIGNATURES
/s/ Sue Veres Royal | ||
Name: Sue Veres Royal | ||
Title: COO, The BeBop Channel Corporation | ||
Dated: 06/30/2021 |
17 |