UNITED
STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549
FORM
10-K/A -1
x
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
the fiscal year ended: September 30, 2014
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE EXCHANGE ACT OF 1934
For
the transition period from _________ to _________
Commission
File Number: 333-129229
Breezer
Ventures Inc.
(Exact
Name of Registrant as Specified in its Charter)
Nevada
(State
of other jurisdiction of incorporation or organization)
N/A
(IRS
Employer Identification Number)
Room
1707, 17th Floor, CTS Center, 219 Zhong Shan Wu Road,
GuangZhou,
F4 510030
(Address
of principal executive offices)
949-419-6588
(Registrant's
telephone number)
Securities
registered pursuant to Section 12(b) of the Exchange Act: None
Securities
registered pursuant to Section 12(g) of the Exchange Act: None
Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.
Yes
o No x
Indicate
by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act.
Yes
o No x
Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act
during the preceding 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 past 90 days.
Yes
x No o
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 (Section 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
No X
Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not
be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in
Part III of this Form 10-K or any amendment to this Form 10-K: o
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" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act. (Check one):
Large
Accelerated Filer o
Accelerated
Filer o
Non-Accelerated
Filer o
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 aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price
at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day
of the registrant’s most recently completed second fiscal quarter.
As
of January 13, 2015, the aggregate value of voting and non-voting common equity held by non-affiliates was $124,600.
Indicate
the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date:
The
Issuer had 35,600,000 shares of Common Stock, par value $.001, outstanding as of January 13, 2015.
Explanatory
Note: This Amendment to the Company's Form 10-K for the fiscal year ended September 30, 2014 and filed with the Securities and
Exchange Commission on January 13, 2015 is being filed with the Auditor's Report which was not attached to the original filing.
The financial statements were revised to include an additional expense item of $320
and the amount of $108,754 was reclassified from Accounts Payable to Due to Related Parties. The impact of the changes affected
the balance sheet, statements of loss and deficit, statements of cash flow, the statements of the stockholders' deficit and the
notes to the financial statements. We have also amended ITEM 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations.
In addition, as required by
Rule 12b-15 of the Securities Exchange Act of 1934, this Amendment contains new certifications by our Chief Executive Officer
and our Chief Financial Officer, filed as exhibits hereto.
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TABLE
OF CONTENTS
ITEM
1: BUSINESS 4
ITEM
1A: RISK FACTORS 5
ITEM
1B: UNRESOLVED STAFF COMMENTS 10
ITEM
2: PROPERTIES 10
ITEM
3: LEGAL PROCEEDINGS 10
ITEM
4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 10
ITEM
5: MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 11
ITEM
6: SELECTED FINANCIAL DATA 11
ITEM
7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 12
ITEM
7A: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 13
ITEM
8: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 13
ITEM
9: CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 13
ITEM
9A: CONTROLS AND PROCEDURES 14
ITEM
9B: OTHER INFORMATION 15
ITEM
10: DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 16
ITEM
11: EXECUTIVE COMPENSATION 18
ITEM
12: SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 19
ITEM
13: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE 21
ITEM
14: PRINCIPAL ACCOUNTING FEES AND SERVICES 21
ITEM
15: EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 22
SIGNATURES
23
2
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SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
The
following cautionary statements identify important factors that could cause our actual results to differ materially from those
projected in forward-looking statements made in this Annual Report on Form 10-K (this "Report") and in other reports
and documents published by us from time to time. Any statements about our beliefs, plans, objectives, expectations, assumptions,
future events or performance are not historical facts and may be forward-looking. These statements are often, but not always,
made through the use of words or phrases such as "believes," "will likely result," "are expected to,"
"will continue," "is anticipated," "estimated," "intend," "plan," "projection,"
"outlook" and the like, constitute "forward-looking statements" within the meaning of Section 27A of the Securities
Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). However,
as we issue "penny stock," as such term is defined in Rule 3a51-1 promulgated under the Exchange Act, we are ineligible
to rely on these safe harbor provisions. Such forward-looking statements involve known and unknown risks, uncertainties and other
factors which may cause the actual results, performance or achievements of our Company to be materially different from any future
results, performance or achievements expressed or implied by such forward-looking statements. Given these uncertainties, readers
are cautioned to carefully read all "Risk Factors" set forth under Item 1A and not to place undue reliance on any forward-looking
statements. We disclaim any obligation to update any such factors or to announce publicly the results of any revisions of the
forward-looking statements contained or incorporated by reference herein to reflect future events or developments, except as required
by the Exchange Act. New factors emerge from time to time, and it is not possible for us to predict which will arise or to assess
with any precision the impact of each factor on our business or the extent to which any factor, or combination of factors, may
cause actual results to differ materially from those contained in any forward-looking statements.
Unless
otherwise provided in this Report, references to the "Company," the "Registrant," the "Issuer,"
"we," "us," and "our" refer to Breezer Ventures Inc.
3
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PART
I
ITEM
1: BUSINESS
Introduction
Breezer
Ventures Inc. was incorporated in the state of Nevada on May 18, 2005. To date, the Company has been actively involved in the
exploration and development of oil and gas leases in the state of Texas.
Plan
of Operations
The
company's management has been actively pursuing acquisitions of oil leases in the United States specifically in the Fort Worth
Basin area. The company has executed an asset purchase agreement (the "Agreement")
with Catalyst Capital Group, Inc., a California corporation whereby pursuant to the terms and conditions of that Agreement we
purchased Catalyst Capital Group Inc.'s undivided 13/16th interest in and to Firecreek Global, Inc.'s right, title and interest
in and to the following based on Firecreek Global, Inc.'s 93.75% working interest (for depths above 100 feet below the top of
the Ellenburger Formation) and 70.341796% net revenue interest in the ElmaJackson oil and gas. The Company believes
that given the current demand for oil and pressure on the price this could be a very successful venture.
Currently
in 2014, oil prices are approximately $75 per barrel and less than half of US oil consumption is imported. In 2014 70.5% of petroleum
consumption in the U.S. was for transportation. Approximately 2/3 of transportation consumption was gasoline.
Crude
oil is produced in 31 states and U.S. coastal waters. In 2014, 56% of U.S. crude oil production came from five states: Texas (26%)
Alaska (10%) California (9%) North Dakota (7%) Oklahoma (4%). As of 2010, about one-third of U.S. crude oil was produced from
wells located offshore in state and federally administered waters of the Gulf of Mexico. Although total U.S. crude oil production
generally declined between 1985 and 2008, it has been increasing since 2008. More cost effective drilling technology has helped
boost production, especially in North Dakota, Texas and the offshore Gulf of Mexico.
In
2011, the United States relied on net imports (imports minus exports) for about 45% of the petroleum that we used. About 100 countries
produce crude oil. The top five producing countries in 2011, and their share of total world production are Saudi Arabia (13%)
Russia (12%) United States (11%) Iran (5%) China (5%)
It
will be necessary for the Company to raise additional funds through the issuance of equity securities, through loans or debt financings.
There can be no assurance that the Company will be successful in raising the required capital or that actual cash requirements
will not exceed our estimates. We do not have any agreements in place for equity financing and or loan and debt financing. In
the event that the Company is unsuccessful in its financing efforts, the Company may seek to obtain short term loans. There can
be no assurance that we will be successful in finding financing, or even if financing is found, that we will be successful in
achieving profitable operations.
Compliance
with Environmental Laws
The
costs and effects of compliance with federal, state and local environmental laws were not material to our business during the
fiscal year ended September 30, 2014. At the present time, we have not yet determined what the costs of such compliance will be
for the current fiscal year.
Intellectual
Property
As
of the date of this Report, we do not own any intellectual property. We do not currently have any patents in regards to any proprietary
technology.
Where
You Can Find More Information
The
Company is and expects to remain a "reporting company." We will therefore be required to continue to file annual, quarterly
and other requisite filings with the U.S. Securities and Exchange Commission (the "SEC"). Members of the public may
read and copy any materials which we file with the SEC at the SEC's Public Reference Room at 100 F Street, N.E., Room 1580, Washington,
D.C. 20549. Members of the public may obtain additional information on the operation of the Public Reference Room by calling the
SEC at 1-800-SEC-0330. The SEC also maintains an internet site that contains reports, proxy and information statements, as well
as other information regarding issuers that file electronically with the SEC. This site is located at http://www.sec.gov.
You
may also request a copy of our filings at no cost, by writing or telephoning us at:
Breezer
Ventures Inc. Room 1707, 17th Floor, CTS Center, 219 Zhong Shan Wu Road,
GuangZhou,
F4 510030, telephone: 949-419-6588 Attention: Mr.
Tang Xu
ITEM
1A: RISK FACTORS
An
investment in our Company involves a substantial risk of loss. You should carefully consider the risks described below, before
you make any investment decision regarding our Company. We are discussing all known material risk factors.
The
following are all known material risks.
Risks
Related to Our Business Plans
Because
we have not yet commenced operations we face a high risk of business failure.
We
were incorporated on May 18, 2005 and to date have been involved primarily in organizational activities. As of the date of this
filing, we have not earned any revenues. Accordingly, you can evaluate our business, and therefore our future prospects, based
only on a limited operating history. Potential investors should be aware of the difficulties normally encountered by development
stage companies and the high rate of failure for such enterprises.
Oil
and gas prices are volatile and a substantial decrease in oil and gas prices would adversely affect our operations.
Oil
and gas prices historically have been volatile and will likely to continue to be volatile in the future. The prices for oil and
gas are subject to wide fluctuation in response to relatively minor changes in the supply of and demand for oil and gas, market
uncertainty, worldwide economic conditions, weather conditions, and political conditions in major oil producing regions. A significant
decrease in price levels for an extended period would negatively affect our operations and you could lose all or part of your
investment.
Title
to our oil and gas leases could be defective in which case we may not own the interest in a property to conduct operations which
would materially affect our business.
It
is customary in the oil and gas industry that upon acquiring an interest in a property, that only a preliminary title investigation
be done at that time. We intend to follow this custom. If the title to the prospects should prove defective, we could lose the
costs of acquisition, or incur substantial costs for curative title work.
Operating
and environmental hazards on the properties where we operate could have a negative impact on our business.
We
may encounter hazards incident to the operation of oil and gas properties, such as accidental leakage of petroleum liquids and
other unforeseen conditions, if we participate in developing a well and, on occasion, substantial liabilities to third parties
or governmental entities may be incurred. We could be subject to liability for pollution and other damages or may lose substantial
portions of prospects or producing properties due to hazards which cannot be insured against or which have not been insured against
due to prohibitive premium costs or for other reasons. We currently do not maintain any insurance for environmental damages. Governmental
regulations relating to environmental matters could also increase the cost of doing business or require alteration or cessation
of operations in certain areas.
We
are a new business without significant resources. We have not yet commenced operations and we have no past performance which can
serve as an indicator of our future potential.
We
have not yet initiated a new business model and we have not yet commenced operations. We have no history upon which an evaluation
of our future success or failure can be made. Our most recent financial statements will therefore not provide sufficient information
to assess our future prospects. Our likelihood of success must be considered in light of all of the risks, expenses and delays
inherent in establishing a new business, including, but not limited to unforeseen expenses, complications and delays, established
competitors and other factors. Our ability to achieve and maintain profitability and positive cash flow is dependent upon raising
funds and our ability to generate revenues. We are unable to predict with any certainty when or if we will achieve profitability.
If we do not generate revenues or if our expenses increase at a greater rate than our revenues, we will not become profitable.
Even if we do become profitable, we may not be able to sustain or increase our profitability on a quarterly or annual basis.
We
only have losses to date and our auditors have issued an opinion expressing the uncertainty of our company to continue as a going
concern which may deter potential investors and lenders from providing financing.
Our
auditors issued an opinion in their audit report expressing uncertainty about the ability of our Company to continue as a going
concern. This means that there is substantial doubt that we can continue as an ongoing business without additional financing and/or
generating profits from our operations. The going concern uncertainty expressed in their audit opinion could make it more difficult
for us to secure additional financing on terms acceptable to us, if at all, and may materially and adversely affect the terms
of any financing that we may obtain. If our losses continue and we are unable to secure additional financing, we may ultimately
cease doing business or seek protection from creditors under applicable bankruptcy laws.
We
need to raise additional capital which may not be available to us or might not be available on favorable terms.
We
will need additional funds to implement our business plans. Our future capital requirements will depend on a number of factors,
including our ability to grow our revenues and manage our business. Our growth will depend upon our ability to raise additional
capital, possibly through the issuance of long-term or short-term indebtedness or the issuance of our equity securities in private
or public transactions.
If
we are successful in raising equity capital, because of the number and variability of factors that will determine our use of the
capital, our ultimate use of the proceeds may vary substantially from our current plans. We expect that our management will have
considerable discretion over the use of equity proceeds. Our shareholders may not agree with such uses, and the proceeds may be
used in a manner that does not increase our operating results or market value.
Indebtedness
may burden us with high interest payments and highly restrictive terms which could adversely affect our business.
Should
we borrow money to implement our business plans, we would be burdened with interest payments. A significant amount of indebtedness
could increase the possibility that we may be unable to generate sufficient revenues to service the payments on indebtedness,
when due, including principal, interest and other amounts. Agreements made in connection with any borrowings may contain significant
restrictions and covenants that, among other things, could limit our ability to make investments, pay dividends or make distributions
to our shareholders, repurchase or redeem indebtedness, grant liens on our assets, enter into transactions with our affiliates,
merge or consolidate with other entities or transfer all or substantially all of our assets, and restrict the ability of our subsidiaries
to pay dividends or to make other payments to us.
Our
ability to comply with any restrictions and covenants related to indebtedness in the future is uncertain and would be affected
by the levels of cash flow from our operations and events or circumstances beyond our control. Our failure to comply with any
of restrictions and covenants under indebtedness financing could result in a default under those facilities, and could cause all
of our existing indebtedness to be immediately due and payable. If any of our indebtedness were to be accelerated, we may not
be able to repay our indebtedness or borrow sufficient funds to refinance it. Even if we were able to obtain new financing, it
may not be on commercially reasonable terms or on terms that are acceptable to us. If any of our indebtedness is in default for
any reason, our business, financial condition and results of operations could be materially and adversely affected. In addition,
complying with any restrictions and covenants may also cause us to take actions that are not favorable to our shareholders and
may make it more difficult for us to successfully execute our business plan and compete against companies that are not subject
to such restrictions and covenants.
Our
sole officer has other professional responsibilities which could conflict with the interests of our shareholders.
Mr.
Tang Xu, our sole officer and director, has other professional responsibilities which could divert management time and create
potential conflicts of interest. These divided responsibilities may divert management time from our business and could create
potential conflicts of interest which could materially and adversely harm our business, financial condition and results of operations.
We
may be unable to secure appropriate insurance.
There
is no certainty we can secure adequate insurance coverage at an appropriate cost, and even if we do obtain such insurance, it
is impossible to insure against all the risks that we will face.
Our
insurance policies may also contain deductibles, limitations and exclusions which increase our costs in the event of a claim.
Furthermore insurance will not cover all costs, for instance, launch insurance often does not cover losses in revenues associated
with launch failures and delays. Claims which are in excess of or otherwise not covered by indemnity or insurance could harm our
financial condition and operating results.
Because
we do not maintain any insurance, if a judgment is rendered against us, we may have to cease operations.
We
do not maintain any insurance and do not intend to maintain insurance in the future. Because we do not have any insurance, if
we are made a party to a lawsuit, we may not have sufficient funds to defend the litigation. In the event that we do not defend
the litigation or a judgment is rendered against us, we may have to cease operations.
Securities
compliance may be expensive and time consuming for our management.
Compliance
with the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated there under, including, the Sarbanes-Oxley
Act of 2002 and related requirements will be costly and will place a significant burden on our management. At the present time,
we have only a limited history of operating with the internal controls and procedures required of a public company. We expect
to commence documenting, reviewing, and where appropriate, improving our internal controls and procedures and eventually being
subject to Section 404 of the Sarbanes-Oxley Act of 2002, which will require management assessments of the effectiveness of our
internal control over financial reporting. We cannot assure you that measures we have taken, or future measures we may take, will
enable us to provide accurate and timely financial reports, particularly if we are unable to hire additional personnel in our
accounting and financial department, or if we lose personnel in this area. Any failure to maintain an effective system of internal
controls, or any other problems with our financial systems or internal controls, could result in delays or inaccuracies in reporting
financial information or failure to comply with SEC reporting and other regulatory requirements. Any of these situations could
adversely affect our business and stock price.
Estimates
must be made in connection with the preparation of our financial reports. If changes must be made to financial reports, we could
be adversely affected.
We
follow accounting principles generally accepted in the United States in preparing our financial statements. As part of this work,
we must make many estimates and judgments which affect the value of the assets and liabilities, contingent assets and liabilities,
and revenue and expenses reported in our financial statements. We believe that our estimates and judgments are reasonable and
we make them in accordance with our accounting policies based on information available at the time. However, actual results could
differ from our estimates and this could require us to record adjustments to expenses or revenues that could be adversely material
to our financial position and results of operations.
A
Majority of our Common Stock is Owned by a Single Investor.
Ms.
Angeni Singh owns approximately 56.2% of our issued and outstanding shares.
This concentration of ownership could discourage a potential acquirer from making a tender offer or otherwise attempting to obtain
control of us, or could otherwise delay or prevent a change in control transaction or other business combination, which could
in turn have an adverse effect on the market price of our common shares. As long as this concentration of ownership persists,
it is unlikely that any other holder or group of holders of our common shares will be able to affect the way we are managed or
the direction of our business. The interests of the control group of shareholders could conflict with the interests of other shareholders.
In addition, we may adopt amendments to our organizational documents and applicable state law which have anti-takeover provisions
that could delay or prevent a change in control of our company.
We
will indemnify our officers and directors which could cause our capital resources to be used to defend and settle claims or legal
actions against them.
The
Company's By-Laws and the Nevada Revised Statutes, as amended contain provisions that limit the liability of directors for monetary
damages and provide for indemnification of officers and directors under certain circumstances. Such provisions may discourage
shareholders from bringing a lawsuit against directors for breaches of fiduciary duty, even though such action, if successful,
might otherwise have benefited our shareholders. According to such provisions, we are responsible for payment of costs of settlement
and damage awards against our officers or directors.
The
Nevada Revised Statutes provides that our directors and officers are generally not personally liable to us or our shareholders
or creditors for monetary damages for acts and omissions in his or her capacity as an officer or director unless it is proven
that such act or omission constituted a breach of fiduciary duty as a director or officer and such breach involved intentional
misconduct, fraud or a knowing violation of law.
In
addition to the indemnification provided for in the Company's By-Laws, we may enter into agreements to indemnify our directors
and officers. Under these agreements, we will be obligated to indemnify our directors and officers for expenses, attorneys' fees,
judgments, fines and settlement amounts incurred by any director or officer in any action or proceeding arising out of the director's
or officer's services as a director or officer of us, any of our subsidiaries or any other company or enterprise to which the
person provides services at our request. We believe that these provisions and agreements are necessary to attract and retain qualified
individuals to serve as directors and officers.
Our
sole officer and director is a citizen and resident of a country other than the United States. In the event our shareholders seek
legal remedies against such director and officer, the citizenship and residence of such individual may adversely affect the ability
of shareholders to seek recourse.
Service
of process and the collection of a judgment against an individual who is not a resident of the United States may take a greater
length of time, and may involve a greater level of complexity and expense than against a person who is located in the United States.
This may adversely affect the ability of shareholders to if they were to seek recourse against officers and directors and to recover
any judgments.
Risks
Related To Investing In Our Common Shares
You
may have difficulty selling our common shares and may therefore lose all or a significant portion of your investment.
Our
common shares trades on the OTC Bulletin Board. The stock price may be volatile. The market price of our common shares may be
subject to wide fluctuations in response to several factors including the following:
-
Our ability to execute our business plan and significantly grow our business;
-
Our ability to generate brand loyalty among target consumer segment car buyers;
-
Increased competition from competitors who offer competing services; and
-
Our financial condition and results of operations.
As
a result, our shareholders may find it more difficult to obtain accurate quotations concerning the market value of the stock.
Shareholders also may experience greater difficulties in attempting to sell our common shares than if they were listed on a self-regulated
national stock exchange.
We
do not anticipate paying cash dividends. This may deter certain investors and adversely affect our stock price.
We
have never paid any cash dividends on our common stock and we do not anticipate paying cash dividends in the foreseeable future.
We intend to retain any cash flow we generate for investment in our business. Accordingly, our common stock may not be suitable
for investors who are seeking current income from dividends. Any determination to pay dividends on our common stock in the future
will be at the discretion of our board of directors.
Because
the market for our common shares is limited, investors may not be able to resell their common shares. Investors should therefore
assume that any investment in our company will be illiquid for the foreseeable future.
Our
common shares trade on the Over-the-Counter-Bulletin-Board quotation system. Trading in our shares has historically been subject
to very low volumes and wide disparity in pricing. Investors may not be able to sell or trade their common shares because of thin
volume and volatile pricing with the consequence that they may have to hold your shares for an indefinite period of time.
There
are legal restrictions on the resale of the common shares offered, including penny stock regulations under the U.S. Federal Securities
Laws. These restrictions may adversely affect your ability to resell your stock.
We
anticipate that our common stock will continue to be subject to the penny stock rules under the Securities Exchange Act of 1934,
as amended. These rules regulate broker/dealer practices for transactions in "penny stocks." Penny stocks are generally
equity securities with a price of less than $5.00. The penny stock rules require broker/dealers to deliver a standardized risk
disclosure document that provides information about penny stocks and the nature and level of risks in the penny stock market.
The broker/dealer must also provide the customer with current bid and offer quotations for the penny stock, the compensation of
the broker/dealer and its salesperson and monthly account statements showing the market value of each penny stock held in the
customer's account. The bid and offer quotations and the broker/dealer and salesperson compensation information must be given
to the customer orally or in writing prior to completing the transaction and must be given to the customer in writing before or
with the customer's confirmation. In addition, the penny stock rules require that prior to a transaction, the broker and/or dealer
must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's
written agreement to the transaction. The transaction costs associated with penny stocks are high, reducing the number of broker-dealers
who may be willing to engage in the trading of our shares. These additional penny stock disclosure requirements are burdensome
and may reduce all of the trading activity in the market for our common stock. As long as the common stock is subject to the penny
stock rules, our shareholders may find it more difficult to sell their shares.
Our
future sales of our common shares could cause our stock price to decline.
There
is no contractual restriction on our ability to issue additional shares. We cannot predict the effect, if any, that market sales
of our common shares or the availability of shares for sale will have on the market price prevailing from time to time. Sales
by us of our common shares in the public market, or the perception that our sales may occur, could cause the trading price of
our stock to decrease or to be lower than it might be in the absence of those sales or perceptions.
If
we raise additional funds through the issuance of equity or convertible debt securities, your ownership will be diluted.
If
we raise additional funds through the issuance of equity or convertible debt securities, the percentage ownership held by existing
shareholders will be reduced and those shareholders may experience significant dilution. In addition, new securities may contain
certain rights, preferences or privileges that are senior to those of our common shares. Furthermore, any additional equity financing
may be dilutive to shareholders, and debt financing, if available, may involve restrictive covenants, which may limit our operating
flexibility with respect to certain business matters. If additional funds are raised through the issuance of equity securities,
the percentage ownership of our shareholders will be reduced, shareholders may experience additional dilution in net book value
per share and such equity securities may have rights, preferences or privileges senior to those of our shareholders.
Grants
of stock options and other rights to our employees may dilute your stock ownership.
The
Company may attract and retain employees in part by offering stock options and other purchase rights for a significant number
of common shares. The issuance of common shares could have the effect of reducing the percentage of ownership in us of our then
existing shareholders.
Our
stock price may be volatile and market movements may adversely affect your investment.
The
market price of our stock may fluctuate substantially due to a variety of factors, many of which are beyond our control, including,
economic, political, military and security developments in the United States and worldwide and general market conditions. The
stock markets in general have experienced substantial volatility that has often been unrelated to the operating performance of
particular companies. These broad market fluctuations may adversely affect the market price of our stock. Future sales of our
common shares by our shareholders could depress the price of our stock.
Absence
of equity research reports or unfavorable reports could adversely affect the price of our stock.
The
trading market for our common shares may rely in part on the research and reports that equity research analysts may publish about
us in the future and the industry segments in which we operate. The public price of our publicly traded common shares could decline
if one or more securities analysts downgrades investment in our common shares or if those analysts issue other unfavorable commentary
about our industry or other major participants in our industry, or if they cease publishing reports about us.
ITEM
1B: UNRESOLVED STAFF COMMENTS
Not
Applicable.
ITEM
2: PROPERTIES
Our
principal offices are located at 424 West Bakerview Road, Bellingham, Washington,
98226. We are presently utilizing office space provided at no cost by our sole
officer and director. We believe that our office space and facilities are sufficient to meet our present needs.
ITEM
3: LEGAL PROCEEDINGS
There
are no existing, pending or threatened legal proceedings involving Breezer Ventures Inc., or against any of our sole officer and
director as a result of their involvement with the Company.
ITEM
4: SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
There
were no matters submitted to a vote of security holders during the fourth quarter of the fiscal year ended September 30, 2014.
--------------------------------------------------------------------------------
PART
II
ITEM
5: MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
(a)
Market Information.
Our
shares are traded on the over-the-counter bulletin board operated by the National Association of Securities Dealers, Inc. under
the symbol "BRZV".
The
high and low bid prices for our common stock for the past two years for the periods indicated below are as follows:
National
Association of Securities Dealers OTC Bulletin Board(1)
Quarter
Ended |
High |
Low |
|
|
|
September 30, 2014 |
0.006 |
0.006 |
June 30, 2014 |
0.002 |
0.002 |
March 31, 2014 |
0.004 |
0.004 |
December 31, 2013 |
0.005 |
0.005 |
September 30, 2013 |
0.009 |
0.009 |
June 30, 2013 |
0.019 |
0.018 |
March 31, 2013 |
0.0125 |
0.0075 |
December 31, 2012 |
0.02 |
0.0075 |
September 30, 2012 |
0.005 |
0.005 |
(1)
Over-the-counter market quotations reflect inter-dealer prices without retail mark-up, mark-down or commission, and may not represent
actual transactions.
Our
common shares are issued in registered form. Empire Stock Transfer Inc., 1859 Whitney Mesa Dr. Henderson, NV 89014 (Telephone:
702.818.5898; Facsimile: 702.974.1444) is the registrar and transfer agent for our common shares
(b)
Holders.
As
of September 30, 2014, 35,600,000 common shares were issued and outstanding.
(c)
Dividends.
During
the period covered by this Report, we have not declared or paid cash dividends. The Company does not intend to pay cash dividends
on its common stock in the foreseeable future. We anticipate retaining any earning for use in our continued development. We are
not subject to any restrictions respecting the payment of dividends, except that they may not be paid to render us insolvent.
(d)
Securities authorized for issuance under equity compensation plans.
The
Company has never issued securities under and does not have any equity compensation plan.
Recent
Sales of Unregistered Securities; Use of Proceeds from Registered Securities
The
following sets forth information pertaining to all securities of the Company sold within the past four years which were not registered
under the Securities Act of 1933, as amended. In the three years ended September 30, 2014, September 30, 2013 and September 30,
2012 no unregistered securities were sold or issued by the Company.
ITEM
6: SELECTED FINANCIAL DATA
Pursuant
to permissive authority under Regulation S-K, Rule 301, we have omitted Selected Financial Data.
ITEM
7: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Introduction
This
Report contains forward-looking statements within the meaning of the U.S. federal securities laws. Actual results and the timing
of events could differ materially from those projected in forward-looking statements due to a number of factors, including those
described under "Item 1A Risk Factors" and elsewhere in this Annual Report. See "Special Note Regarding Forward-Looking
Statements."
Breezer
Ventures Inc. was incorporated in the state of Nevada on May 18, 2005. Breezer Ventures Inc. was incorporated in the state of
Nevada on May 18, 2005. To date, the Company has been actively involved in the exploration and development of oil and gas leases
in the state of Texas.
As
of the end of the period covered by this Report, our principal executive offices are located at Room
1707, 17th Floor, CTS Center, 219 Zhong Shan Wu Road, GuangZhou, PR of China ,F4 510030.
Our
fiscal year end is September 30th.
Results
of Operations
As
of the date of this annual report, we have not generated any revenues from our business activities.
Our
expenses were $10,529 and $31,801 for the years ended September 30, 2014 and 2013, respectively. The main expenses were consulting
and professional fees of $7,393 and interest expense in the amount of $3,136 for the year ended September 30, 2014, as compared
to consulting and professional fees of $28,703 and interest expense in the amount of $3,098 for the year ended September 30, 2013,
respectively.
The
Company has tax losses, which may be applied against future taxable income. The potential tax benefits arising from these loss
carry forwards expire between 2025 and 2028 and are offset by a valuation allowance due to the uncertainty of profitable operations
in the future. The net operating loss carry forward was $275,890 and $265,361 at September 30, 2014 and 2013, respectively.
Liquidity
and Capital Resources
Cash
Requirements
The
Company's total current assets as of September 30, 2014 included a cash balance of $0. We anticipate that our current cash balance
will not satisfy our cash needs for the following twelve-month period. There can be no assurance that we will be successful in
finding financing, or even if financing is found, that we will be successful in proceeding with profitable operations.
It
is uncertain how much in additional funds we will require to commence operations over the next twelve months, as the Company is
presently exploring various potential business opportunities. As we do not have the funds necessary to cover any significant operating
expenses for the next twelve month period, we will be required to raise additional funds through the issuance of equity securities,
through loans or through debt financing. There can be no assurance that we will be successful in raising the required capital
or that actual cash requirements will not exceed the estimates we will make. In the event that the Company is unsuccessful in
its financing efforts, the Company may seek to obtain short term loans.
Our
auditors have issued a going concern opinion for the year ended September 30, 2014. This means that there is substantial doubt
that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills.
This is because we have not generated any significant revenues and no significant revenues are anticipated until our commercial
operations begin.
Our
company’s operations have been funded through an equity financing and a series of debt transactions, primarily with shareholders,
directors, and officers of our company. These related party debt transactions have operated as informal lines of credit since
the inception of our company, and related parties have extended credit as needed which our company has repaid at its convenience.
We anticipate that we will incur operating losses in the foreseeable future and we believe we will need additional cash to support
our daily operations while we are attempting to execute our business plan and produce revenues. If our related parties are unable
or unwilling to provide additional capital, we would likely require financing from third parties. There can be no assurance that
any additional financing will be available to us, on terms we believe to be favorable or at all. The inability to obtain additional
capital would have a material adverse effect on our operations and financial condition and could force us to curtail or discontinue
operations entirely and/or file for protection under bankruptcy laws.
As
of September 30, 2014, our total assets were $72,094,
which represented no change from our total assets of $72,094 as of September 30, 2013. Our total current liabilities as of September
30, 2014 were $ 242,522, which represented an increase from our total current liabilities of $235,129 as
of September 30, 2013. The Company has experienced a net loss of $10,529 and $31,801 for the years ended September 30, 2014 and
2013, respectively, and a net loss of $275,890 for the period from May 18, 2005 (Inception) to September 30, 2014.
The
Company has experience a net cash flows used in operating activities of $110,354 and net cash flows provided by financing activities
of $110,354 for the fiscal year ended September 30, 2014. Net cash flows provided by financing activities resulted from advances
from related parties in the amount of $110,354 for the fiscal year ended September 30, 2014.
The
Company has working capital deficit of $170,428 at September 30, 2014 as compared to $163,035 at September 30, 2013.
Critical
Accounting Policies
Refer
to Footnote #2 of Financial Statements incorporated in this Report.
Purchase
of Significant Equipment
As
of the end of the period covered by this Report, we did not intend to purchase any significant equipment over the twelve months
ending September 30, 2014.
Employees
Currently
our only employee is our sole officer and director. We do not expect any material changes in the number of employees over the
next 12 month period; however, this may change depending on the business model we may adopt. We may outsource contract employment
as needed.
Off
Balance Sheet Arrangements
As
of September 30, 2014, we did 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.
ITEM
7A: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We
did not have any operations which implicated market risk as of the end of the latest fiscal year.
ITEM
8: FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The
financial statements required to be filed pursuant to this Item 8 begin on page F-1 of this report.
ITEM
9: CONTROLS AND PROCEDURES
Management's
Report on Disclosure Controls and Procedures
Our
management has evaluated, under the supervision and with the participation of our chief executive officer and chief financial
officer, the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report pursuant
to Rule 13a-15(b) under the Securities Exchange Act of 1934 (the "Exchange Act"). Based on that evaluation, our chief
executive officer and chief financial officer have concluded that, as of the end of the period covered by this report, our disclosure
controls and procedures are not effective in ensuring that information required to be disclosed in our Exchange Act reports is
(1) recorded, processed, and summarized and reported with the time periods specified in the Securities and Exchange Commission's
rules and forms and (2) accumulated and communicated to our management, including our chief executive officer and chief financial
officer, as appropriate to allow timely decisions regarding required disclosure.
Management's
Report on Internal Control over Financial Reporting
Our
management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rule
13a-15(f) under the Securities Exchange Act, as amended). In fulfilling this responsibility, estimates and judgments by management
are required to assess the expected benefits and related costs of control procedures. The objectives of internal control include
providing management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use
or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit
the preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United
States. Our management assessed the effectiveness of our internal control over financial reporting as of September 30, 2014. In
making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway
Commission ("COSO") in Internal Control-Integrated Framework. Our management has concluded that, as of September 30,
2014, our internal control over financial reporting is not effective in providing reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with US generally accepted
accounting principles.
Management
concluded that the following three deficiencies are considered material weaknesses in internal controls:
-
Failure to properly record negative cash balance as a current liability
-
Failure to properly classify cash balance as other asset as cash was not maintained in bank account
-
Failure to properly record accrued expenses such as audit fees and consulting services related to fiscal year ending September
30, 2014.
-
Failure to properly disclose an Oil Lease exchange agreement entered by the Company in the footnote
This
annual report does not include an attestation report of our Company's registered public accounting firm regarding internal control
over financial reporting. Management's report was not subject to attestation by our Company's registered public accounting firm
pursuant to temporary rules of the Securities and Exchange Commission that permit our Company to provide only management's report
in this annual report.
Changes
in Internal Control Over Financial Reporting
There
was no change in the Company's internal control over financial reporting (as defined in Rule 13a-15(f) and 15d-15(f) under the
Securities Exchange Act of 1934) during the quarter ended September 30, 2014 that has materially affected or is reasonably likely
to materially affect the Company's internal control over financial reporting.
Inherent
limitations on effectiveness of controls
Internal
control over financial reporting has inherent limitations which include but is not limited to the use of independent professionals
for advice and guidance, interpretation of existing and/or changing rules and principles, segregation of management duties, scale
of organization, and personnel factors. Internal control over financial reporting is a process which involves human diligence
and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial
reporting also can be circumvented by collusion or improper management override. Because of its inherent limitations, internal
control over financial reporting may not prevent or detect misstatements on a timely basis, however these inherent limitations
are known features of the financial reporting process and it is possible to design into the process safeguards to reduce, though
not eliminate, this risk. Therefore, even those systems determined to be effective can provide only reasonable assurance with
respect to financial statement preparation and presentation. Projections of any evaluation of effectiveness to future periods
are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance
with the policies or procedures may deteriorate.
ITEM
9B: OTHER INFORMATION
None.
---------------------------------------------------------------------
PART
III
ITEM
10: DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CORPORATE GOVERNANCE
The
following table presents information with respect to our sole officer, director and significant employee as of September 30, 2014:
Name:
Tang Xu
Age:
50
Position:
President, Chief Executive Officer, Treasurer, Secretary and Director
Each
director serves until the next annual meeting of shareholders and until his/her successor shall have been elected and qualified.
Set
forth below is biographical information regarding the current sole officer, director and significant employee of the Company as
of the date of this Report.
Tang
Xu, President, Chief Executive Officer, Treasurer, Secretary and Director. Mr. Xu has served as an officer and director of the
Company since December 22, 2009. Mr. Xu is also the owner of Weisheng Electronics, a position he has held since 2000. Weisheng
Electronics is a distributor of household appliances, including computers, stereos, televisions, telephones, and cameras. Prior
to holding this position, Mr. Xu was the owner of Xinrong, an electronic component wholesale company. Mr. Xu received his bachelor
in physics from the University of Wuhan in 1987. Due to Tang Xu's past experience as the owner of two companies we believe he
has the qualifications to serve as director of the Company.
Involvement
in Certain Legal Proceedings
To
our knowledge, during the past ten years, no director, person nominated to become a director, executive officer, promoter or control
person of the company: (1) had any bankruptcy petition filed by or against any business of which such person was a general partner
or executive officer either at the time of the bankruptcy or within two years prior to that time; (2) was convicted in a criminal
proceeding or subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); (3) was the subject
of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently
or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type or business, securities or banking
activities; or (4) was found by a court of competent jurisdiction in a civil action or by the U.S. Securities and Exchange Commission
or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment
has not been reversed, suspended or vacated; (5) was found by a court of competent jurisdiction in a civil action or by the Commission
to have violated any Federal or State securities law; (6) was found by a court of competent jurisdiction in a civil action or
by the Commodity Futures Trading Commission to have violated any Federal Commodities law, and the judgement in such civil action
or finding By the commodity Futures Trading Commission has not been subsequently Reversed, suspended or vacated; (7) was the subject
of, or a party to, Any Federal or State judicial or administrative order, judgement, Decree or finding, not subsequently reversed,
suspended or vacated, Relating to an alleged violation of i Any Federal or State securities or commodities law or regulation;
or ii Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary
or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease- and-desist
order, or removal or prohibition order; or iii Any law or regulation prohibiting mail or wire fraud or fraud in connection with
any business entity; or (8) was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or
vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any
registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange,
association, entity or organization that has disciplinary authority over its members or persons associated with a member.
Section
16 (a) Beneficial Ownership Reporting Compliance
Section
16(a) of the Exchange Act requires our executive officers and directors, and persons who beneficially own more than 10% of our
equity securities, to file reports of ownership and changes in ownership with the Securities and Exchange Commission. Officers,
directors and greater than 10% shareholders are required by SEC regulation to furnish the Company with copies of all Section 16(a)
forms they file. Based solely on our review of the copies of such forms we received, we believe that during the year ended September
30, 2014, all such filing requirements applicable to our officers and directors were complied with, except that reports were filed
late by the following persons:
Name |
Number
of Late Reports |
Transactions
Not Timely Reported |
Known
Failures to File a Required Form |
|
|
|
|
Nomination
Process
As
of the date of this Report, we have not effected any material changes to the procedures by which our shareholders may recommend
nominees to our board of directors. Our board of directors does not have a policy with regards to the consideration of any director
candidates recommended by our shareholders. Our board of directors has determined that it is in the best position to evaluate
our Company's requirements as well as the qualifications of each candidate when the board considers a nominee for a position on
our board of directors. If shareholders wish to recommend candidates directly to our board, they may do so by sending communications
to the President of our Company at the address on the cover of this annual report.
Audit
Committee and Audit Committee Financial Expert
We
do not have a standing audit committee at the present time. Our board of directors has determined that we do not have a board
member that qualifies as an "audit committee financial expert" as defined in Item 407(d)(5) of Regulation S-K, nor do
we have a board member that qualifies as "independent" as the term is used in Item 407 (a) of Regulation S-K. Our board
of directors is currently comprised of only one member and we believe that the functions of the audit committee can be adequately
performed by the board of directors.
Code
of Ethics
The
Company has adopted code of ethics for all of the employees, directors and officers which has been filed with the U.S. Securities
and Exchange Commission. The Company will provide to any person a copy of the Company's code of ethics, without charge, upon request.
Requests may be mailed to the Company's offices at: Room 1707, 17th Floor, CTS
Center, 219 Zhong Shan Wu Road, GuangZhou, P.R. of China, F4 510030.
ITEM
11: EXECUTIVE COMPENSATION
Executive
Compensation
The
following table sets forth the compensation paid to (i) our principal executive officer; (ii) each of our two most highly compensated
executive officers who were serving as executive officers; and (iii) up to two additional individuals for whom disclosure would
have been provided under but for the fact that the individual was not serving as our executive officer at the end of the year.
No disclosure is provided for any named executive officer, other than our principal executive officer, whose total compensation
does not exceed $100,000 for the respective fiscal year:
Summary
Compensation Table |
|
|
|
|
|
Long Term
Compensation |
|
Annual Compensation |
Awards |
Payouts |
|
|
|
|
|
|
|
|
|
Name and Principal Position |
Year (1) |
Salary($) |
Bonus ($) |
Restricted Stock Award(s)
($) |
Option Awards ($) |
Non-Equity Incentive
Plan and Compensation ($) |
Change in Pension Value
and Nonqualified Deferred Compensation Earnings ($) |
All Other Compensation
($) |
Tang Xu |
2014 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
2013 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
2012 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
2011 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
(2) President, Treasurer,
Secretary, Director. Chief Executive Officer |
2010 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
|
|
|
|
|
|
0 |
|
Shawn Sim (3) Former President,
Secretary , Chief Executive Officer |
2009 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Huaiqian Zhang (4) Former
President, Chief Executive Officer, Secretary, Treasurer |
2009 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Wei Xue Feng (5) Former
President, Secretary, Treasurer, Chief Executive Officer |
2009 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
|
2008 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
Angeni Singh (6) Former
President, Secretary and Treasurer |
2008 |
0 |
0 |
0 |
0 |
0 |
0 |
0 |
(1)
The Company's fiscal year ends on September 30th.
(2)
Tang Xu serves as officer and director of the Company. He was appointed on December 22, 2009.
(3)
Shawn Sim served as an officer and director of the Company from June 25, 2009 to December 22, 2009.
(4)
Huaiqian Zhang was appointed as an officer and director on January 26, 2009.
(5)
Wei Xue Feng was appointed as an officer and director on May 2, 2008 and resigned on January 26, 2009.
(6)
Angeni Singh resigned as an officer and director of the Company on May 1, 2008.
There
are no compensatory plans or arrangements with respect to our executive officers resulting from their resignation, retirement
or other termination of employment or from a change of control.
Outstanding
Equity Awards at Fiscal Year-End
As
at September 30, 2014, there were no unexercised options or stock that had not vested in regards to our executive officers, and
there were no equity incentive plan awards for our executive officers during the year ended September 30, 2014.
Options
Grants in the Year Ended September 30, 2014
During
the year ended September 30, 2014, no stock options were granted to our executive officers.
Aggregated
Options Exercised in the Year Ended September 30, 2014 and Year End Option Values
There
were no stock options exercised during the year ended September 30, 2014 and no stock options held by our executive officers at
the end of the year ended September 30, 2014.
Repricing
of Options/SARS
We
did not reprice any options previously granted to our executive officers during the year ended September 30, 2014.
Director
Compensation
Directors
of our Company may be paid for their expenses incurred in attending each meeting of the directors. In addition to expenses, directors
may be paid a sum for attending each meeting of the directors or may receive a stated salary as director. No payment precludes
any director from serving our Company in any other capacity and being compensated for such service. Members of special or standing
committees may be allowed similar reimbursement and compensation for attending committee meetings. During the year ended September
30, 2014, we did not pay any compensation or grant any stock options to our directors.
Indemnification
Under
the Bylaws of the corporation, we may indemnify an officer or director who is made a party to any proceeding, including a law
suit, because of his position, if he acted in good faith and in a manner he reasonably believed to be in our best interest. We
may advance expenses incurred in defending a proceeding. To the extent that the officer or director is successful on the merits
in a proceeding as to which he is to be indemnified, we must indemnify him against all expenses incurred, including attorney's
fees. With respect to a derivative action, indemnity may be made only for expenses actually and reasonably incurred in defending
the proceeding, and if the officer or director is judged liable, only by a court order. The indemnification is intended to be
to the fullest extent permitted by the laws of the State of Nevada.
Regarding
indemnification for liabilities arising under the Securities Act of 1933, which may be permitted to directors or officers under
Nevada 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.
ITEM
12: SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The
following table sets forth, as of the close of business on September 30, 2014, the total number of shares owned beneficially by
the Company's directors, officers and key employees, and any person (including any group) who is known to the Company to be the
beneficial owner of more than five percent of any class of the Company's voting securities. Except as otherwise indicated below,
each person named has sole voting and investment power with respect to the shares indicated. The percentage of ownership set forth
below reflects each holder's ownership interest in the 35,600,000 shares of the Company's common stock outstanding as of
September 30, 2014.
Amount
and Nature of Beneficial Ownership
|
Name and Address of Beneficial Owner |
Amount
and Nature of Beneficial Owner |
Percentage
of Class |
Five Percent Stockholder’s |
Angeni Singh (1) |
20,000,000 |
56.2% |
|
Catalyst
Capital Group
Address:
2498 West 41st, #232, Vancouver, BC, Canada, V6M2A7 |
5,000,000 |
14.0% |
Executive Officers and
Directors |
N/A |
0 |
0% |
All officers and directors
as group (1 person) |
N/A |
0 |
0% |
The
mailing address for each person is our address at Room 1707, 17th Floor,
CTS Center, 219 Zhong Shan Wu Road, GuangZhou, P.R. of China, F4 510030.
(1)
Includes options and warrants exercisable as of the date hereof or within 60 days hereafter. The Company is unaware of any pledges
of any shares, options or warrants by any of the individuals or entities listed above. The Company intends to make option grants
to certain officers and directors within the foreseeable future, however, no options or agreements pertaining to options have
been granted or entered into by the Company or such officers and directors as of the date hereof.
Potential
Changes in Control
To
the knowledge of management, there are no present arrangements or pledges of securities of the Company which may result in a change
in control of the Company.
Adverse
Interests
The
Company is not aware of any material proceeding to which any director, officer, or affiliate of the Company, or any owner of record
or beneficially of more than five percent of any class of the Company's voting securities, or security holder is a party adverse
to the Company or has a material interest adverse to the Company.
Equity
Plan Compensation Information
Our
Company does not currently have a stock option plan or other form of equity plan.
Certain
Relationships and Related Transactions
Refer
to Item 13: Certain relationships and related transactions and director independence of this Report.
Corporate
Governance
We
do not have a standing audit committee at the present time. Our board of directors has determined that we do not have a board
member that qualifies as an "audit committee financial expert" as defined in Item 407(d)(5) of Regulation S-K. We have
determined that Tang Xu is not an independent director as defined in Item 407(a) of Regulation S-K.
We
believe that our members of our board of directors are capable of analyzing and evaluating our financial statements and understanding
internal controls and procedures for financial reporting. The board of directors of our Company does not believe that it is necessary
to have an audit committee because we believe that the functions of an audit committee can be adequately performed by the board
of directors. In addition, we believe that retaining an independent director who would qualify as an "audit committee financial
expert" would be overly costly and burdensome and is not warranted in our circumstances given the early stages of our development
and the fact that we have not generated any revenues from operations to date.
Transactions
with Independent Directors
Refer
to Item 13: Certain relationships and related transactions and director independence of this Report.
ITEM
13: CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
Transactions
with related persons.
Mr.
Tang Xu, sole director, President, Treasurer, Secretary, Chief Executive Officer of the Company has advanced $38,730 to the Company
for working capital in prior years. Imputed interest at 8% in the amount of $3,136 has been included as an increase to additional
paid in capital for the period ended September 30, 2014. The amount remains outstanding as of September 30, 2014.
Catalyst
Capital Group, a shareholder and consultant of the Company, has
loaned $50,000 to the Company for the acquisition of Oil Lease Agreement and advanced $151,122 to the Company as working capital.
As of September 30, 2014, the outstanding balance owed by the Company to Catalyst Capital Group was $201,122 which is unsecured
and due on demand with no interest bearing.
ITEM
14: PRINCIPAL ACCOUNTANT FEES AND SERVICES
Audit
Fees
The
aggregate fees billed by our principal accountants, Jimmy P. Lee, CPA, P.C. for the audit of the Company's annual
financial statements and review of financial statements included in the Company's Form 10-Qs or services in connection with statutory
and regulatory engagements for the fiscal year ended September 30, 2014 and 2013 was $4,200 and $2,100.
Audit-Related
Fees
The
aggregate fees billed by Jimmy P. Lee, CPA, P.C. for audit related services for the fiscal year ended September 30, 2014 and 2013,
and which are not disclosed in "Audit Fees" above, were $0.
Tax
Fees
The
aggregate fees billed by Jimmy P. Lee, CPA, P.C. for tax compliance, tax advice and tax planning for the fiscal year ended September
30, 2014 and 2013 was $0.
All
Other Fees
The
aggregate fees billed by the Company's principal accountants, Jimmy P. Lee, CPA, P.C. for services other than those described
above, for the year ended September 30, 2014 and 2013 was $0.
Audit
Committee Pre-Approval Policies
Our
Board of Directors reviewed the audit and non-audit services rendered by Jimmy P. Lee, CPA P.C. during the fiscal year ended September
30, 2014 and concluded that such services were compatible with maintaining the auditors' independence. All audit and non-audit
services performed by our independent accountants are pre-approved by our Board of Directors to assure that such services do not
impair the auditors' independence from us.
-------------------------------------------------------------------
PART
IV
ITEM
15: EXHIBITS AND FINANCIAL STATEMENT SCHEDULES
Financial
Statements.
The
Index to the Consolidated Financial Statements is found on page F-1 of this Report.
Exhibit
No. Description of Exhibits
Exhibit
31.1 Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002.
Exhibit
32.1 Certification of the Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
SIGNATURES
In
accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
BREEZER
VENTURES INC.
By:
/s/ Tang Xu
Name:
Tang Xu
Title:
Principal Executive Officer Principal Financial Officer and Principal Accounting Officer
Dated:
February 4, 2015
In
accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.
/s/
Tang Xu
Name:
Tang Xu
Title:
Director, Principal Executive Officer Principal Financial Officer and Principal Accounting Officer
Dated:
February 4, 2015
--------------------------------------------------------------------------------
Breezer
Ventures Inc.
(A
Development Stage Company)
For
the Fiscal Year ended September 30, 2014
INDEX
TO FINANCIAL STATEMENTS
Report
of Independent Registered Public Accounting Firm
F-1
Balance
Sheets for the fiscal years ended September 30, 2014 and 2013
F-2
Statements
of Operations for the fiscal year ended September 30, 2014 and 2013 and the period from May 18, 2005 (inception) through September
30, 2014
F-3
Statements
of Cash Flows for the fiscal year ended September 30, 2014 and 2013 and the period from May 18, 2005 (inception) through September
30, 2014
F-4
Statements
of Stockholder's Equity (Deficit) for the period from May 18, 2005 (inception) through September 30, 2014
F-5
Notes
to Financial Statements
F-6
------------------------------------------------------------------
F-1
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To
the Board of Directors and
Stockholders of Breezer Ventures Inc.
(A
Development Stage Company)
We
have audited the accompanying balance sheets of Breezer Ventures Inc. as of September 30, 2014 and 2013, and the related statements
of income, comprehensive income, stockholders’ equity, and cash flows for each of the years in the two-year period ended
September 30, 2014. Breezer Ventures Inc.’s management is responsible for these financial statements. Our responsibility
is to express an opinion on these financial statements based on our audits.
We
conducted our audits 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, assessing the accounting
principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide 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 Breezer
Ventures Inc. as of September 30, 2014 and 2013, and the results of its operations and its cash flows for each of the years in
the two-year period ended September 30, 2014, 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 3 to the financial statements, the Company has incurred accumulated deficits of $275,890 as of September 30, 2014. The
Company incurred a net loss of $10,529 and $31,801 for the years ended September 30, 2014 and 2013, respectively. The Company’s
ability to continue as a going concern is dependent upon its ability to raise additional funds through the issuance of equity
securities, through loans or debt financings. These factors raise substantial doubt about its ability to continue as a going concern.
Management’s plans concerning this matter are also described in Note 3. The accompanying financial statements do not include
any adjustments that might result from the outcome of this uncertainty.
/s/
Jimmy P. Lee, CPA P.C.
Jimmy
P. Lee CPA P.C.
Astoria,
New York
February
3, 2015
F-2
Breezer
Ventures Inc. |
(A
Development Stage Company) |
Balance
Sheet |
As
at September 30, 2014 & 2013 |
(Expressed
in U.S. Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30, 2014 |
|
September
30, 2013 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS |
|
|
|
|
|
|
Current
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash
and Cash Equivalents |
|
|
|
|
|
$ - |
|
$ - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Current
Assets |
|
|
|
|
|
|
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
in Oil Lease |
|
|
|
|
|
|
72,094 |
|
72,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS |
|
|
|
|
|
|
|
|
72,094 |
|
72,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES
AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
Accounts Payable
and Accrued Liabilities |
|
|
|
2,670 |
|
105,631 |
|
Due
to Related Parties |
|
|
|
|
|
|
|
239,852 |
|
129,498 |
TOAL CURRENT
LIABILITIES |
|
|
|
|
242,522 |
|
235,129 |
|
|
|
|
|
|
|
|
Commitments
& Contingencies |
|
|
|
|
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholder's
Deficit |
|
|
|
|
|
|
|
|
|
|
|
Preferred
Stock, $0.001 par value, 50,000,000 shares authorized, None issued and outstanding |
|
|
|
|
Common
Stock, $0.001 par value, 100,000,0000 shares |
|
|
|
|
|
|
|
authorized
35,600,000 issued and outstanding |
|
|
|
35,600 |
|
35,600 |
|
Additional
Paid-In Capital |
|
|
|
|
|
|
69,862 |
|
66,726 |
|
(Deficit)
accumulated during the development stage |
|
|
(275,890) |
|
(265,361) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Stockholders' Deficit |
|
|
|
|
|
(170,428) |
|
(163,035) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES AND STOCKHOLDERS' DEFICIT |
|
$ 72,094 |
$ |
$ 72,094 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See
accompanying summary of accounting policies and notes to financial statements |
F-3
Breezer
Ventures Inc. |
(A
Development Stage Company) |
Statements
of Operation |
For
Three Months and Year Ended as September 30, 2014 and 2013 |
and
From May 19, 2005 (Inception) to September 30, 2014 |
(Expressed
in U.S. Dollars) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From
May 19, 2005 |
|
|
|
|
|
|
|
|
|
|
For
Year Ended |
For
Year Ended |
|
(Inception)
to |
|
|
|
|
|
|
|
|
|
|
September
30, 2014 |
September
30, 2013 |
|
September
30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General
and Administration Expenses |
|
|
|
|
|
|
|
|
|
Consulting
and Professional fees |
|
|
|
|
$ 7,393 |
$ 28,703 |
|
$ 177,516 |
|
Training Costs |
|
|
|
|
|
|
- |
- |
|
5,000 |
|
Management
Fees |
|
|
|
|
|
|
- |
- |
|
6,000 |
|
Office Expense |
|
|
|
|
|
- |
- |
|
250 |
|
Rent |
|
|
|
|
|
|
|
- |
- |
|
44,000 |
|
Depreciation |
|
|
|
|
|
|
- |
- |
|
17,500 |
|
Other |
|
|
|
|
|
|
|
- |
- |
|
4,366 |
|
Interest |
|
|
|
|
|
|
|
3,136 |
3,098 |
|
21,258 |
Total
Expenses |
|
|
|
|
|
|
10,529 |
31,801 |
|
275,890 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Loss for the period |
|
|
|
|
|
$ (10,529) |
$ (31,801) |
|
$ (275,890) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Loss
per Common Share |
|
|
|
|
(0.00) |
(0.00) |
|
|
|
Basic
and diluted |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Share
Information |
|
|
|
|
|
|
|
|
|
Weighted
Average Number of Common Shares Outstanding |
|
|
|
|
|
|
|
Basic
and diluted |
|
|
|
|
|
35,600,000 |
35,600,000 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See
accompanying summary of accounting policies and notes to financial statements |
F-4
Breezer
Ventures Inc. |
(A
Development Stage Company) |
Statements
of Cash Flow |
For
Year ended September 30, 2014 and 2013 |
and
From May 19, 2005 (Inception) to September 30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From
May 19, 2005 |
|
|
|
|
|
|
|
For
Year Ended |
|
(Inception)
to |
|
|
|
|
|
|
|
September
30, 2014 |
September
30, 2013 |
|
September
30, 2014 |
|
|
|
|
|
|
|
|
|
|
|
Cash
Flows from Operating Activities |
|
|
|
|
|
|
Net
Loss for the Period |
|
|
$ (10,529) |
$ (31,801) |
|
$ (275,890) |
|
Adjustments
to reconcile net loss to cash used in operating activities |
|
|
|
|
|
|
|
Depreciation |
|
|
|
- |
- |
|
17,500 |
|
|
Imputed
Interest |
|
|
3,136 |
3,098 |
|
20,012 |
|
|
Shares
issued for investment |
|
|
|
|
5,000 |
Changes
in: |
|
|
|
|
|
|
|
|
Accounts
Payable and Accrued Liabilities |
|
(102,961) |
(12,065) |
|
2,670 |
Net
Cash Flows Used in Operating Activities |
|
(110,354) |
(40,768) |
|
(230,708) |
|
|
|
|
|
|
|
|
|
|
|
Cash
Flows from Investing Activities |
|
|
|
|
|
Investment
in Oil Lease |
|
- |
- |
|
(72,094) |
Purchase
of assets |
|
|
|
- |
- |
|
(17,500) |
Net
Cash Flows Used in Investing Activities |
|
- |
|
|
(89,594) |
|
|
|
|
|
|
|
|
|
|
|
Cash
Flows from Financing Activities |
|
|
|
|
|
|
Advances
from Related Parties |
|
110,354 |
40,768 |
|
239,852 |
|
Issuance
of Common Stock |
|
|
- |
|
|
80,450 |
Net
Cash Flows Provided from Financing Activities |
|
110,354 |
40,768 |
|
320,302 |
|
|
|
|
|
|
|
|
|
|
|
Net
Increase (Decrease) in Cash |
|
- |
- |
|
- |
|
|
|
|
|
|
|
|
|
|
|
Cash
and Cash Equivalents, Beginning of Period |
|
- |
- |
|
- |
Cash
and Cash Equivalents, End of Period |
|
$ - |
$ - |
|
$ - |
|
|
|
|
|
|
|
|
|
|
|
Supplementary
Information |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes Paid |
|
|
|
$ - |
$ - |
|
$ - |
|
Interest Paid |
|
|
|
$ - |
$ - |
|
$ - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See
accompanying summary of accounting policies and notes to financial statements |
F-5
Breezer
Ventures Inc. |
(A
Development Stage Company) |
Statements
of Stockholders' Equity (Deficit) |
From
May 19, 2005 (Inception) to September 30, 2014 |
|
|
|
|
|
|
|
Common
Stock |
Common
Stock |
Additional |
Deficit
Accumulated During the |
Total
Stockholder's |
|
Shares |
Amount |
Paid
In Capital |
Development
Stage |
Equity
(Deficit) |
|
|
|
|
|
|
Balances - May 18, 2005 |
- |
- |
- |
- |
- |
|
|
|
|
|
|
Founder's shares issued |
5,000,000 |
5,000 |
- |
- |
5,000 |
Shares issued for cash |
2,650,000 |
2,650 |
49,850 |
- |
52,500 |
|
|
|
|
|
|
Net Loss |
- |
- |
- |
(36,871) |
(36,871) |
|
|
|
|
|
|
Balance, September 30,
2005 |
7,650,000 |
7,650 |
49,850 |
(36,871) |
20,629 |
|
|
|
|
|
|
Net Loss |
- |
- |
- |
(23,688) |
(23,688) |
|
|
|
|
|
|
Balances - September
30, 2006 |
7,650,000 |
7,650 |
49,850 |
(60,559) |
(3,059) |
|
|
|
|
|
|
Imputed interest on shareholder
loan |
|
|
1,055 |
|
1,055 |
|
|
|
|
|
|
Net Loss |
- |
- |
- |
(23,267) |
(23,267) |
|
|
|
|
|
|
Balances - September
30, 2007 |
7,650,000 |
7,650 |
50,905 |
(83,826) |
(25,271) |
|
|
|
|
|
|
Imputed interest |
|
|
1,915 |
|
1,915 |
|
|
|
|
|
|
Net Loss |
- |
- |
- |
(31,168) |
(31,168) |
|
|
|
|
|
|
Balances - September
30, 2008 |
7,650,000 |
7,650 |
52,820 |
(114,994) |
(54,524) |
|
|
|
|
|
|
Issuance of stock dividend |
22,950,000 |
22,950 |
|
(22,950) |
|
Imputed interest |
|
|
1,438 |
|
1,438 |
|
|
|
|
|
|
Net Loss |
- |
- |
- |
(13,664) |
(13,664) |
|
|
|
|
|
|
Balances - September
30, 2009 |
30,600,000 |
30,600 |
54,258 |
(151,608) |
(66,750) |
|
|
|
|
|
|
Imputed interest |
|
|
3,136 |
|
3,136 |
|
|
|
|
|
|
Net
Loss |
|
|
|
(12,273) |
(12,273) |
|
|
|
|
|
|
Balances-September 30,
2010 |
30,600,000 |
30,600 |
57,394 |
(163,881) |
(75,887) |
|
|
|
|
|
|
Investment into oil lease |
5,000,000 |
5,000 |
|
|
5,000 |
|
|
|
|
|
|
Imputed interest |
|
|
3,136 |
|
3,136 |
|
|
|
|
|
|
Net
Loss |
|
|
|
(36,520) |
(36,520) |
|
|
|
|
|
|
Balances-September 30,
2011 |
35,600,000 |
35,600 |
60,530 |
(200,401) |
(104,271) |
|
|
|
|
|
|
Imputed interest on shareholder
loan |
|
|
3,098 |
|
3,098 |
|
|
|
|
|
|
Net
Loss |
|
|
|
(33,159) |
(33,159) |
|
|
|
|
|
|
Balances-September 30,
2012 |
35,600,000 |
35,600 |
63,628 |
(233,560) |
(134,332) |
|
|
|
|
|
|
Imputed interest |
|
|
3,098 |
|
3,098 |
|
|
|
|
|
|
Net
Loss |
|
|
|
(31,801) |
(31,801) |
|
|
|
|
|
|
Balances-September 30,
2013 |
35,600,000 |
35,600 |
66,726 |
(265,361) |
(163,035) |
|
|
|
|
|
|
Imputed interest |
|
|
3,136 |
|
3,136 |
|
|
|
|
|
|
Net
Loss |
|
|
|
(10,529) |
(10,529) |
|
|
|
|
|
|
Balances-September 30,
2014 |
35,600,000 |
$ 35,600 |
$ 69,862 |
$ (275,890) |
$ (170,428) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
See
accompanying summary of accounting policies and notes to financial statements |
F-6
Breezer
Ventures Inc.
(A
Development Stage Company)
NOTES
TO FINANCIAL STATEMENTS
Note
1 |
Incorporation
and Operating Activities |
Breezer
Ventures Inc. (the “Company” or “Breezer”) was incorporated on May 18, 2005, under the laws of the State
of Nevada, U.S.A. Operations, as a development stage company started on that date.
We
are operating as an independent emerging natural resources company. The Company’s focus is on the acquisition, exploration,
development and production of oil, natural gas and minerals. We believe that the world has entered a commodities super cycle caused
by globalization and the industrialization of large emerging countries and regions such as India, China and the Middle East. Our
objective is to find, acquire and develop natural resources at the lowest cost possible and recycle our cash flows into new projects
yielding the highest returns with controlled risk.
Note
2 |
Summary
of Significant Accounting Policies |
Basis
of Presentation
The
Company follows accounting principles generally accepted in the United States of America. In the opinion of management,
all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results
of operations for the periods presented have been reflected herein.
Revenue
Recognition
Revenue
is recognized when it is realized or realizable and earned. Breezer considers revenue realized or realizable and earned when persuasive
evidence of an arrangement exists, services have been provided, and collectability is reasonably assured. The Company has not
commenced any operations since inception to generate any revenues.
Use
of Estimates
The
preparation of financial statements in accordance with generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and disclosures 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 materially differ from these estimates.
Reclassification
Certain
amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications
had no effect on reported net income or losses.
Development
Stage Company
The
Company complies with the FASB Accounting Standards Codification (ASC) Topic 915 Development Stage Entities and the Securities
and Exchange Commission Exchange Act 7 for its characterization of the Company as development stage.
Impairment
of Long Lived Assets
Long-lived
assets are reviewed for impairment in accordance with ASC Topic 360, "Accounting for the Impairment or Disposal of Long-lived
Assets". Under ASC Topic 360, long-lived assets are tested for recoverability whenever events or changes in circumstances
indicate that their carrying amounts may not be recoverable. An impairment charge is recognized or the amount, if any, which the
carrying value of the asset exceeds the fair value.
Foreign
Currency Translation
Our
functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies
are translated in accordance with ASC Topic 830, "Foreign Currency Translation" using the exchange rate prevailing at
the balance sheet date. Gains and losses arising on settlement of foreign currency denominated transactions or balances are included
in the determination of income. We have not, to the date of these financial statements, entered into derivative instruments to
offset the impact of foreign currency fluctuations.
Fair
Value of Financial Instruments
The
respective carrying value of certain on-balance sheet financial instruments approximate their fair values. These financial
statements include cash, receivables, advance receivable, cheques issued in excess of cash, accounts payable and property obligations
payable. Unless otherwise noted, it is management's opinion that the Company is not exposed to significant interest, currency
or credit risks arising from these financial instruments. Unless otherwise noted, fair values were assumed to approximate
carrying values for these financial instruments since they are short term in nature and their carrying amounts approximate fair
values or they are receivable or payable on demand.
Income
Taxes
The
company recognizes income taxes using an asset and liability approach. Future income tax assets and liabilities are computed
annually for differences between the financial statements and bases using enacted tax laws and rates applicable to the periods
in which the differences are expressed to affect taxable income.
Basic
and Diluted Net Loss Per Common Share
Basic
and diluted net loss per share calculations are calculated on the basis of the weighted average number of common shares outstanding
during the year. The per share amounts include the dilutive effect of common stock equivalents in years with net income. Basic
and diluted loss per share is the same due to the anti-dilutive nature of potential common stock equivalents.
Stock
Based Compensation
The
Company accounts for stock-based employee compensation arrangements using the fair value method in accordance with the provisions
of ASC Topic 718 Compensation – Stock Compensation. The company accounts for the stock options issued to non-employees in
accordance with the provisions of ASC Topic 718, Compensation-Stock Compensation.
Cash
and Cash Equivalents
For
purposes of the statement of cash flows, the Company considers all highly liquid investments purchased with an original maturity
of three months or less to be cash equivalents. As of September 30, 2014 and 2013, there were no cash equivalents.
Property,
Plant and Equipment
Property,
plant and equipment consist of furniture and equipment recorded at cost, with amortization provided over the estimated useful
life of the asset, 5 years, straight-line.
Investment
in Oil Lease
All
direct costs related to the acquisition of oil lease rights are capitalized. Exploration costs are charged to operations in the
period incurred until such time as it has been determined that an oil lease has economically recoverable reserves, at which time
subsequent exploration costs and the costs incurred to develop an oil lease are capitalized.
The
Company reviews the carrying values of its oil lease rights whenever events or changes in circumstances indicate that their carrying
values may exceed their estimated net recoverable amounts. An impairment loss is recognized when the carrying value of those assets
is not recoverable and exceeds its fair value. As of September 30, 2014, management has determined that there is no impairment
in value for the purchase of the oil lease right purchased in April 2011.
At
such time as commercial production may commence, depletion of each oil lease will be provided on a unit-of-production basis using
estimated proven and probable recoverable reserves as the depletion base. In cases where there are no proven or probable reserves,
depletion will be provided on the straight-line basis over the expected economic life of the oil lease.
The
Company had no operating properties at September 30, 2014, but the Company’s oil leases will be subject to standards for
oil lease reclamation that is established by various governmental agencies. For these non-operating leases, the Company accrues
costs associated with environmental remediation obligations when it is probable that such costs will be incurred and they are
reasonably estimable. Costs of future expenditures for environmental remediation are not discounted to their present value. Such
costs are based on management's current estimate of amounts that are expected to be incurred when the remediation work is performed
within current laws and regulations.
It
is reasonably possible that due to uncertainties associated with defining the nature and extent of environmental contamination,
application of laws and regulations by regulatory authorities, and changes in remediation technology, the ultimate cost of remediation
and reclamation could change in the future. The Company continually reviews its accrued liabilities for such remediation and reclamation
costs as evidence becomes available indicating that its remediation and reclamation liability has changed.
The
Company recognizes the fair value of a liability for an asset retirement obligation in the period in which it is incurred, if
a reasonable estimate of fair value can be made. The associated asset retirement costs are capitalized as part of the carrying
amount of the associated long-lived assets and depreciated over the lives of the assets on a units-of-production basis. Reclamation
costs are accreted over the life of the related assets and are adjusted for changes resulting from the passage of time and changes
to either the timing or amount of the original present value estimate on the underlying obligation.
Any
and all costs associated with exploration, development, and rehabilitation in connection with all wells are capitalized on the
balance sheet and will amortized when the well comes into commercial production.
Recent
Accounting Pronouncements
Breezer
does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its results of operations,
financial position or cash flow.
The
company's financial statements have been prepared on a going concern basis, which contemplates the realization of assets and settlement
of liabilities and commitments in the normal course of business for the foreseeable future. Since inception, the Company has accumulated
losses aggregating to $275,890 and has insufficient working capital to meet operating needs for the next twelve months as of September
30, 2014, all of which raise substantial doubt about the company's ability to continue as a going concern.
The
Company does not have the necessary funds to cover the anticipated operating expenses over the next twelve months. It will be
necessary for the company to raise additional funds through the issuance of equity securities, through loans or debt financings.
There can be no assurance that the Company will be successful in raising the required capital or that actual cash requirements
will not exceed our estimates. We do not have any agreements in place for equity financing and or loan and debt financing. In
the event that the Company is unsuccessful in its financing efforts, the Company may seek to obtain short term loans.
The
company’s management has been actively pursuing acquisitions of oil leases in the United States specifically in the Fort
Worth Basin area. In pursuing this business plan we executed our first asset purchase as described below.
Note
4 Investment in Oil Lease
On
April 7, 2011, we executed an asset purchase agreement (the "Agreement") with Catalyst Capital Group, Inc., a California
corporation whereby pursuant to the terms and conditions of that Agreement we purchased Catalyst Capital Group, Inc.'s undivided
13/16th interest in and to Firecreek Global, Inc.'s right, title and interest in and to the following (based on Firecreek Global,
Inc.'s 93.75% working interest (for depths above 100 feet below the top of the Ellenburger Formation) and 70.341796% net revenue
interest in the ElmaJackson oil and gas; (i) Well #6 (API# 42-059-04612) together with the proration units designated for such
well by the Texas Railroad Commission and the rights and appurtenances incident to such well (such well and the associated proration
units and rights and appurtenances, arising from the working Interests, hereinafter referred to as the "Initial Well");
(ii) Firecreek's rights in, to and under, and obligations arising from, agreements relating to the Lease to the extent the same
are applicable to the Initial Well; (iii) Firecreek's interest in fixtures and personal property used solely in connection with
the operation of the Initial Well; and (iv) Firecreek's interest in books, files, data and records in Seller's possession to the
extent the same relate to the Initial Well provided that possession of same will remain with Firecreek; and the right and option
based on certain terms and conditions to acquire a 13/16th interest in and rehabilitate certain other wells.
As
consideration, Catalyst Capital Group, Inc. was provided with 5,000,000 restricted common shares of our company and a one-time
payment of $50,000 plus 15/16th of any excess total rehabilitation cost associated with Well #6, payable
to Catalyst capital Group, Inc, pursuant to the terms listed in the Agreement.
The
5,000,000 shares issues to Catalyst were issued at par value which equates to a value of $5,000.
Catalyst
Capital Group Inc. loaned $50,000 to the Company during the period ended September 30, 2011, which is unsecured, with no specific
terms of repayment.
At
September 30, 2014, the investment in the oil lease was recorded at $72,094. This investment is comprised of $5,000 in common
stock, a one-time payment of $50,000 plus $17,094 in rehabilitation costs associated
with well #6. The total purchase price paid is $55,000.
On
July 24, 2012, the Company entered into an agreement with Firecreek Global Inc. to exchange its entire interest in Well #6 for
an undivided 13/16th interest in Wells #27 and #30 and to Firecreek Global, Inc.'s right, title and interest in
and to the following (based on Firecreek Global, Inc.'s 93.75% working interest (for depths above 100 feet below the top of the
Ellenburger Formation) and 70.341796% net revenue interest in the ElmaJackson oil and gas; (i) together with the proration units
designated for such wells by the Texas Railroad Commission and the rights and appurtenances incident to such well (such well and
the associated proration units and rights and appurtenances, arising from the working Interests, hereinafter referred to as the
"Initial Well"); (ii) Firecreek's rights in, to and under, and obligations arising from, agreements relating to the
Lease to the extent the same are applicable to the Initial Well; (iii) Firecreek's interest in fixtures and personal property
used solely in connection with the operation of the Initial Well; and (iv) Firecreek's interest in books, files, data and records
in Seller's possession to the extent the same relate to the Initial Well provided that possession of same will remain with Firecreek;
and the right and option based on certain terms and conditions to acquire a 13/16th interest in and rehabilitate certain other
wells.. This was a straight exchange with no further consideration changing hands.
The
Company is not able to present financial statements and pro forma financial information of the oil and gas property acquired by
the Company as there is no financial information available pertaining to value, historic or otherwise, from the Acquiree (Firecreek
Global, Inc.). The Acquiree has further advised that the oil and gas well the Company purchased has a nil value on their records
as the well was abandoned and plugged.
Note
5 |
Property,
Plant and Equipment |
Property,
Plant and Equipment consists of furniture and equipment, which is being depreciated over 5 years.
The
Company has tax losses, which may be applied against future taxable income. The potential tax benefits arising from these
loss carry forwards expire between 2025 and 2028 and are offset by a valuation allowance due to the uncertainty of profitable
operations in the future. The net operating loss carry forward was $275,890 and $265,361 at September 30, 2014 and 2013, respectively.
Note
7 |
Related
Party Transaction |
Due
to the issuance of 5,000,000 shares to Catalyst Capital Group Inc during the period ended September 30, 2011, Catalyst Capital
Group Inc. is considered a related-person as defined in Instruction 1.b.i to item 404(a) of Regulation S-K. As
of September 30, 2014, the outstanding balance owed by the Company to Catalyst Capital Group was $201,122 which is unsecured and
due on demand with no interest bearing. Catalyst Capital Group has loaned $50,000 to the Company for the acquisition of Oil Lease
Agreement (Refer to Note 4) and advanced $151,122 to the Company as working capital.
As
of September 30, 2014, the outstanding balance owed by the Company to Mr. Tang Xu, CEO of the Company, was $38,730 for working
capital purposes. Imputed interest at 8% in the amount of $3,136 and $3,098 has been included as an increase to additional paid
in capital for the period ended September 30, 2014 and 2013, respectively.
Note
8 Subsequent Events
On
October 15, 2014, the Company sold their entire interests in the Elma Jackson Oil and Gas Leases for $95,000 pursuant to a buy-out
agreement with Firecreek Global, Inc. The offer remained open until November 1, 2014 and was automatically withdrawn.
Exhibit
31.1 OFFICER'S CERTIFICATION PURSUANT TO SECTION 302
I,
Tang Xu, certify that:
1.
I have reviewed this annual report on Form 10-K/A of Breezer Ventures Inc.;
2.
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect
to the period covered by this report;
3.
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all
material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods
presented in this report;
4.
The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures(as
defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act
Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a)
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision,
to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by
others within those entities, particularly during the period in which this report is being prepared;
(b)
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed
under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of
financial statements for external purposes in accordance with generally accepted accounting principles;
(c)
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on
such evaluation; and
(d)
Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrant's
most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected,
or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
5.
The registrants other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over
financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing
the equivalent functions):
(a)
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which
are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information;
and
(b)
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's
internal control over financial reporting.
February 4, 2015
By:
/s/ Tang Xu
Title: Principal Executive
Officer and Principal Financial Officer
Exhibit
32.1 CERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In
connection with the Annual Report of Breezer Ventures Inc. on Form 10-K/A for the year ended September 30, 2014 as filed with the
Securities and Exchange Commission on the date hereof (the Report), I, Tang Xu, Principal Executive Officer and Principal Financial
Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, to my knowledge that:
(1)
The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended;
and
(2)
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations
of the Company.
Date:
February 4, 2015
By:
/s/ Tang Xu
Name:
Tang Xu
Title: Principal Executive Officer and Principal Financial
Officer
----------------------------------------------------------
Breezer Ventures (CE) (USOTC:BRZV)
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から 11 2024 まで 12 2024
Breezer Ventures (CE) (USOTC:BRZV)
過去 株価チャート
から 12 2023 まで 12 2024