UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2016 Commission file number 333-187544 TICKET CORP. (Exact name of registrant as specified in its charter) Nevada (State or other jurisdiction of incorporation or organization) 1135 Terminal Way, Suite 209 Reno, NV 89502 e-mail: ticketcorp1@yahoo.com (Address of principal executive offices, including zip code) Telephone (775) 352-3936 Fax (775) 201-8190 (Telephone number, including area code) Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the last 90 days. YES [X] NO [ ] Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (ss.232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). YES [X] NO [ ] Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer, "accelerated filer," "non-accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act. Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [X] Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES [ ] NO [X] State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date: 48,000,000 shares as of May 16, 2016 ITEM 1. FINANCIAL STATEMENTS TICKET CORP. (A DEVELOPMENT STAGE COMPANY) BALANCE SHEETS -------------------------------------------------------------------------------- Three Months Ended Year Ended March 31, 2016 December 31, 2015 -------------- ----------------- (Unaudited) (Audited) ASSETS CURRENT ASSETS Cash $ 5,900 $ 12,609 Accounts Receivable 11,656 1,866 Inventory -- -- Ticket Assignment Agreement 240,000 240,000 ---------- ---------- TOTAL CURRENT ASSETS 257,556 254,475 ---------- ---------- TOTAL ASSETS $ 257,556 $ 254,475 ========== ========== LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES CURRENT LIABILITIES: Accounts Payable $ 18,340 $ 2,915 Interest Payable 3,200 2,600 Due to Related Party 60,100 60,100 ---------- ---------- TOTAL CURRENT LIABILITIES 81,640 65,615 LONG TERM LIABILITIES: Note Payable - Shareholder 240,000 240,000 ---------- ---------- TOTAL LONG TERM LIABILITIES 240,000 240,000 ---------- ---------- TOTAL LIABILITIES 321,640 305,615 STOCKHOLDERS' EQUITY Common stock: authorized 100,000,000; $0.001 par value; 48,000,000 shares issued and outstanding at March 31, 2015 and December 31, 2014 34,500 34,500 Paid in capital 48,000 48,000 Deficit accumulated during the development stage (146,584) (133,640) ---------- ---------- TOTAL STOCKHOLDERS' EQUITY (64,084) (51,140) ---------- ---------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 257,556 $ 254,475 ========== ========== The accompanying notes are an integral part of these financial statements 2 TICKET CORP. (A DEVELOPMENT STAGE COMPANY) STATEMENTS OF OPERATIONS (Unaudited) -------------------------------------------------------------------------------- From Inception Three Months Ended Three Months Ended (January 17, 2013) to March 31, 2016 March 31, 2015 March 31, 2016 -------------- -------------- -------------- REVENUES $ 24,849 $ 65,000 $ 308,002 TOTAL REVENUES 24,849 65,000 308,002 ------------ ------------ ------------ COST OF GOODS SOLD Beta Test Expense -- -- 372 Merchant Account Fees 601 601 Purchases - Resale Tickets 16,031 30,918 199,726 ------------ ------------ ------------ TOTAL COST OF GOODS SOLD 16,632 30,918 200,699 ------------ ------------ ------------ GROSS PROFIT 8,217 34,082 107,303 ------------ ------------ ------------ OPERATING EXPENSES: General and administrative 20,562 2,645 250,687 Interest Expense 600 600 3,200 ------------ ------------ ------------ TOTAL EXPENSES 21,162 3,245 253,887 ------------ ------------ ------------ NET LOSS FOR THE PERIOD $ (12,944) $ 30,837 $ (146,584) ============ ============ ============ NET LOSS PER SHARE: BASIC AND DILUTED $ (0.000) $ 0.001 $ (0.003) ============ ============ ============ WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED 48,000,000 48,000,000 48,000,000 ============ ============ ============ The accompanying notes are an integral part of these financial statements 3 TICKET CORP. (A DEVELOPMENT STAGE COMPANY) STATEMENTS OF CASH FLOWS (Unaudited) -------------------------------------------------------------------------------- From Inception Three Months Ended Three Months Ended (January 17, 2013) to March 31, 2016 March 31, 2015 March 31, 2016 -------------- -------------- -------------- Operating activities: Net profit (loss) $ (12,944) $ 30,837 $ (146,584) Adjustment to reconcile net loss to net cash provided by operations: Changes in assets and liabilities: Accounts Receivable (9,790) (41,000) (11,656) Inventory -- -- -- Ticket Assignment Agreement -- -- (240,000) Accounts Payable 15,425 (10,058) 18,340 Note Payable - Rheingrover -- -- 60,100 Interest Payable 600 600 3,200 ---------- ---------- ---------- Net cash provided by operating activities (6,709) (19,620) (316,600) Financing activities: Note Payable - Shareholder -- -- 240,000 Capital stock -- -- 48,000 Additional Paid-in Capital -- -- 34,500 ---------- ---------- ---------- Net cash provided by financing activities -- -- 322,500 ---------- ---------- ---------- Net increase in cash (6,709) (19,620) 5,900 Cash, beginning of period 12,609 30,577 -- ---------- ---------- ---------- Cash, end of period $ 5,900 $ 10,957 $ 5,900 ========== ========== ========== Supplemental disclosure of cash flow information: Cash paid during the period Taxes $ -- $ -- $ -- Interest $ -- $ -- $ -- ========== ========== ========== The accompanying notes are an integral part of these financial statements 4 TICKET CORPORATION NOTES TO FINANCIAL STATEMENTS MARCH 31, 2016 (Unaudited) -------------------------------------------------------------------------------- NOTE 1. ORGANIZATION AND DESCRIPTION OF BUSINESS Ticket Corp. (the Company) was incorporated under the laws of the State of Nevada on January 17, 2013. The Company was formed to become a provider of tickets in the San Francisco Bay Area and a national provider of premium seats and entrance to concerts, sporting events, theatre and entertainment, including corporate and group ticketing, special events and promotions worldwide. The Company is in the development stage. Its activities to date have been limited to capital formation, organization, development of its business plan and limited revenue production. NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES BASIS OF ACCOUNTING The Company's financial statements are prepared using the accrual method of accounting. On November 1, 2014 the Board of Directors changed the year end of the Company from January 31 to December 31. BASIC LOSS PER SHARE ASC No. 260, "Earnings per Share", specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock. The Company has adopted the provisions of ASC No. 260. Basic net loss per share amounts is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted loss per share is the same as basic loss per share due to the lack of dilutive items in the Company. CASH EQUIVALENTS The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. USE OF ESTIMATES AND ASSUMPTIONS The preparation of financial statements in conformity with generally accepted accounting principles 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. In accordance with ASC No. 250 all adjustments are normal and recurring. INCOME TAXES Income taxes are provided in accordance with ASC No. 740, Accounting for Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss 5 TICKET CORPORATION NOTES TO FINANCIAL STATEMENTS MARCH 31, 2016 (Unaudited) -------------------------------------------------------------------------------- carry-forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. REVENUE The Company records revenue on the accrual basis when all goods and services have been performed and delivered, the amounts are readily determinable, and collection is reasonably assured. NOTE 3. RECENT ACCOUNTING PRONOUCEMENTS The Company has evaluated all the recent accounting pronouncements through the date the financial statements were issued and filed with the Securities and Exchange Commission and believe that none of them will have a material effect on the Company's financial statements. NOTE 4. GOING CONCERN The accompanying financial statements are presented on a going concern basis. The Company had limited operations during the period from January 17, 2013 (date of inception) to March 31, 2016. This condition raises substantial doubt about the Company's ability to continue as a going concern. Management believes that the Company's current cash of $5,900 plus current revenues is sufficient to cover the expenses they will incur during the next twelve months in a limited operations scenario. NOTE 5. RELATED PARTY TRANSACTIONS The sole officer and two directors of the Company may, in the future, become involved in other business opportunities as they become available, they may face a conflict in selecting between the Company and their other business opportunities. The Company has not formulated a policy for the resolution of such conflicts. As of March 31, 2016, $60,100 is owed to Russell Rhiengrover, CEO. $100 of the funds were loaned by him to the Company to open the bank account and is non-interest bearing with no specific repayment terms. $35,000 of the funds are the result of a 10% Convertible Note issued on September 3, 2015. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by September 3, 2016 or is convertible at the conversion price of $0.05 per common stock share. $25,000 of the funds are the result of a 10% Convertible Note issued on October 5, 2015. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by October 5, 2016 or is convertible at the conversion price of $0.05 per common stock share. 6 TICKET CORPORATION NOTES TO FINANCIAL STATEMENTS MARCH 31, 2016 (Unaudited) -------------------------------------------------------------------------------- On December 17, 2014 the Company signed a Promissory Note in the amount of $240,000 with Russell Rheingrover. The note has an annual interest of 1.00%. The maturity date of the note is March 13, 2018. The note is associated with an Assignment Agreement between the Company and Mr. Rheingrover wherein Mr. Rheingrover assigned all of his rights to the Stadium Builders License Agreement with the Santa Clara Stadium Authority to purchase and resell tickets to San Francisco 49er's games with a fair market value of $80,000 per year for three years. The company has accrued $3,200 in interest on the note as of March 31, 2016. NOTE 6. STOCK TRANSACTIONS On January 31, 2013, the Company issued a total of 33,000,000 shares of common stock to its sole officer Russell Rhiengrover for cash in the amount of $0.001 per share for a total of $33,000. The company's Registration Statement on Form S-1 was declared effective on July 25, 2014. In October 2014 the company sold 15,000,000 shares of common stock to 50 independent shareholders at a price of $0.033 per share for total proceeds of $49,500, pursuant to the Registration Statement. As of March 31, 2016 the Company had 48,000,000 shares of common stock issued and outstanding. NOTE 7. STOCKHOLDERS' EQUITY The stockholders' equity section of the Company contains the following classes of capital stock as of March 31, 2016: Common stock, $ 0.001 par value: 100,000,000 shares authorized; 48,000,000 shares issued and outstanding. NOTE 8. SUBSEQUENT EVENTS The Company evaluated all other events or transactions that occurred after March 31, 2016 up through date the Company issued these financial statements and found no subsequent event that needed to be reported. 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS The information contained in this prospectus, including in the documents incorporated by reference into this prospectus, includes some statements that are not purely historical and that are "forward-looking statements." Such forward-looking statements include, but are not limited to, statements regarding our Company and management's expectations, hopes, beliefs, intentions or strategies regarding the future, including our financial condition, results of operations, and the expected impact of the offering on the parties' individual and combined financial performance. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words "anticipates," "believes," "continue," "could," "estimates," "expects," "intends," "may," "might," "plans," "possible," "potential," "predicts," "projects," "seeks," "should," "will," "would" and similar expressions, or the negatives of such terms, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this prospectus are based on current expectations and beliefs concerning future developments and the potential effects on the parties and the transaction. There can be no assurance that future developments actually affecting us will be those anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the parties' control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements. RESULTS OF OPERATIONS We have generated $308,002 in revenues since our inception on January 17, 2013. Our cost of goods sold was $200,699 resulting in a gross profit of $107,303. During the period from inception to March 31, 2016, our operating expenses were comprised of general and administrative expenses of $250,687 and interest expense of $3,200, resulting in a Net Loss of $146,584. THREE MONTHS ENDED MARCH 31, 2016 AND 2015 We generated $24,849 and $65,000 in revenues for the three months ending March 31, 2016 and 2015, respectively. Our cost of goods sold was $16,632 and $30,918, resulting in a gross profit of $8,217 and $34,082, respectively. We incurred operating expenses of $21,162 and $3,245 for the three months ended March 31, 2016 and 2015, respectively. These expenses consisted of general operating expenses incurred in connection with the day to day operation of our business and the preparation and filing of our periodic reports. As of March 31, 2016, $60,100 is owed to Russell Rhiengrover, CEO. $100 of the funds were loaned by him to the Company to open the bank account and is non-interest bearing with no specific repayment terms. $35,000 of the funds are 8 the result of a 10% Convertible Note issued on September 3, 2015. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by September 3, 2016 or is convertible at the conversion price of $0.05 per common stock share. $25,000 of the funds are the result of a 10% Convertible Note issued on October 5, 2015. Under the terms of the note the principal sum and interest is to be repaid to Mr. Rheingrover by October 5, 2016 or is convertible at the conversion price of $0.05 per common stock share. As of March 31, 2016 the company had $11,656 in accounts receivable, $18,340 in accounts payable and $3,200 in interest payable. We received the initial equity funding of $33,000 from our sole officer, Russell Rheingrover, who purchased 33,000,000 shares of our common stock at $0.001 per share. The company's Registration Statement on Form S-1 was declared effective on July 25, 2014. In October 2014 the company sold 15,000,000 shares of common stock to 50 independent shareholders at a price of $0.033 per share for total proceeds of $49,500, pursuant to the Registration Statement. The company had 48,000,000 shares of common stock issued and outstanding as of March 31, 2016. The following table provides selected financial data about our Company for the period ended March 31, 2016. For detailed financial information, see the financial statements included in this report. Balance Sheet Data: 3/31/2016 ------------------- --------- Cash $ 5,900 Total assets $ 257,556 Total liabilities $ 321,640 Stockholder's equity $ (64,084) We are actively working to advance our business plan. We have generated $308,002 in revenue. We are an active development stage business. In order to implement the Company's business plan, the company has completed the following steps to date: 1. Purchased our domain name WWW.Ticketcorp.com in January 2013. 2. Retained a web designer as of February 2013 who has designed our company logo and website, which is currently an active website. 3. Built a database extension and electronic file system that allows us to store and search customer records. We intend to use this database to analyze our customer database to make selected recommendations for upcoming events. These were completed in April 2013. 9 4. Completed the design of its Mobile Live Event Application for use on iPhone and Android Phone operating systems. This application delivers an electronic ticket to customers' phones as well as performer videos, news and authentic merchandise. It allows scanners at event sites to scan the customers' phones and confirm the customers' valid ticket purchases for event entry without paper tickets. 5. Developed a feature for selling event merchandise through our Mobile Live Event Application. This allows us to send our customers a text code that allows them to purchase event merchandise without having to stand in line at post event sales booths. 6. Developed an additional software feature which allows us to analyze current customer purchases and recommend customized future additional services and products via their phones. 7. We retained a technology advisor. He was chosen for his knowledge in engineering and marketing in the mobile application industry. He will assist the company with its technology applications. 8. We have created and trademarked the product name for our app "Shindig" 9. We have developed a version of the app which is "skinable" in essence we can create a specific version of our app for an artist or team with the branding of "powered by Shindig. PLAN OF OPERATION FOR THE NEXT 12 MONTHS FIRST QUARTER Continue to execute on our Software Development of Shindig and Integration with our Website and adapting our software to work with multiple shopping carts. Complete user interface design for Shindig Complete logo design and graphics for application "Shindig" and "Powered by Shindig" Continue to cultivate and develop relationships with live event partners and merchandise. Continue to develop and execute relationships with live event and merchandising organizations in order to have authentic licensed apparel available through our applications. SECOND QUARTER Product Launch version 1.0 of mobile app shindig Marketing - Implement a social media marketing program in conjunction with a media launch and announcement of Shindig to plan to include partnership and performer announcements and press releases, contests and promotions, etc. to drive application downloads THIRD QUARTER Rollout the application with major artists and tours. Implement a build to order system with fulfillment partner MyLocker. 10 Also the company will launch customize merchandise program in conjunction with our fulfillment partners. Marketing - Public Relations Consultant to continue marketing plan to include stories and press releases, contests and promotions, and artist and tour announcements. FOURTH QUARTER Rollout our ability to deliver merchandise to the customer at their seat. Employ a manager of live events to manage the sub-contractors and ensure successful execution. The company should be driving a consistent and growing revenue stream for the app driven by: * eTicket sales * Sales of apparel and merchandise * Service fee for delivering merchandise at live events. Marketing - Public Relations Consultant to continue marketing plan to include stories and press releases, contests and promotions, etc. As we become successful in implementing this operational portion of the business plan and we continue to produce sales from the app or website, we intend to hire additional staff to handle increased demands, site monitoring, data entry, and customer support. There may be additional demands placed on the company for website development and a consequent need to broaden the management team. Depending on availability of funds and the opportunities available to the Company, we may hire marketing personnel to access additional sales and distribution channels. There is no guarantee that we will be able to obtain a substantial market share in this industry. LIQUIDITY AND CAPITAL RESOURCES Our assets at March 31, 2016 were $257,556 which included $5,900 in cash, $11,656 in accounts receivable and $240,000 in a Ticket Assignment Agreement. Management estimates our current monthly "burn rate" to be $7,000 and estimate our current cash and receivables will last until June 2016, if no additional revenues are realized. OFF-BALANCE SHEET ARRANGEMENTS We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors. 11 PART II. OTHER INFORMATION ITEM 4. CONTROLS AND PROCEDURES EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES Management maintains "disclosure controls and procedures," as such term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934 (the "Exchange Act"), that are designed to ensure that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission rules and forms, and that such information is accumulated and communicated to management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In connection with the preparation of this quarterly report on Form 10-Q, an evaluation was carried out by management, with the participation of the Chief Executive Officer and the Chief Financial Officer, of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) as of March 31, 2016. Based on that evaluation, management concluded, as of the end of the period covered by this report, that our disclosure controls and procedures were effective in recording, processing, summarizing, and reporting information required to be disclosed, within the time periods specified in the Securities and Exchange Commission's rules and forms. CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING As of the end of the period covered by this report, there have been no changes in the internal controls over financial reporting during the quarter ended March 31, 2016, that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting subsequent to the date of management's last evaluation. ITEM 6. EXHIBITS The following exhibits are included with this quarterly filing. Those marked with an asterisk and required to be filed hereunder, are incorporated by reference and can be found in their entirety in our Registration Statement on Form S-1, filed under SEC File Number 333-187544, at the SEC website at www.sec.gov: Exhibit No. Description ----------- ----------- 3.1 Articles of Incorporation* 3.2 Bylaws* 31.1 Sec. 302 Certification of Principal Executive Officer 31.2 Sec. 302 Certification of Principal Financial Officer 32.1 Sec. 906 Certification of Principal Executive Officer 32.2 Sec. 906 Certification of Principal Financial Officer 101 Interactive data files pursuant to Rule 405 of Regulation S-T 12 SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on this 16th day of May 2016. Ticket Corp., Registrant By: /s/ Russell Rheingrover -------------------------------------- Russell Rheingrover, CEO Principal Executive Officer, Secretary and Director By: /s/ Kristi Ann Nelson -------------------------------------- Kristi Ann Nelson CFO, Treasurer, Principal Financial Officer, Principal Accounting Officer and Director /s/ Russell Rheingrover Principal Executive Officer & Director May 16, 2016 --------------------------- -------------------------------------- ------------ Russell Rheingrover Title Date /s/ Kristi Ann Nelson Principal Financial Officer & Director May 16, 2016 --------------------------- -------------------------------------- ------------ Kristi Ann Nelson Title Date /s/ Kristi Ann Nelson Principal Accounting Officer & Director May 16, 2016 --------------------------- -------------------------------------- ------------ Kristi Ann Nelson Title Date 13