UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2015
COMMISSION FILE NUMBER: 000-54958
GOLDEN EDGE ENTERTAINMENT, INC.
(Exact Name of Registrant as Specified in its Charter)
DELAWARE 45-2283057
(State of Incorporation) (I.R.S. Employer ID Number)
629 Neals Lane
Gallatin, Tennessee 37066
Tel: (770) 329-5298
(Address and telephone number of principal executive offices)
Copies to: Daniel C. Masters, Esq.
P. O. Box 66
La Jolla, California 92038
(858) 459-1133 Tel *** (858) 459-1103 - Fax
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 //
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 (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes /X/ No / /
Indicate by check mark whether the registrant is a large accelerated filer, anaccelerated filer, a non-accelerated filer or a smaller reporting company.
Large accelerated filer [ ] Accelerated Filer [ ]
Non-accelerated filer [ ] Smaller reporting company [X]
Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes / / No /x/
The number of Registrants shares of common stock, $0.0001 par value, outstanding as of November 23, 2015 was 17,580,000.
1 | Page
ITEM 1. FINANCIAL STATEMENTS
The un-audited quarterly financial statements for the period ended September 30, 2015, prepared by the company, immediately follow.
| | | | |
GOLDEN EDGE ENTERTAINMENT, INC.
|
BALANCE SHEETS
|
|
|
|
|
|
AS OF,
| | September 30, 2015
| | December 31, 2014
|
|
| (Unaudited)
|
| |
| | | | |
ASSETS
|
|
|
|
|
| | | | |
Current assets
|
|
|
|
|
Cash
| $
| 93
| $
| -
|
|
| |
| |
Total assets
| $
| 93
| $
| -
|
|
| |
| |
LIABILITIES AND STOCKHOLDERS' DEFICIT
| | | | |
|
| |
| |
Current liabilities
| | | | |
Accounts Payable
| $
| 12,476
| $
| 693
|
Promissory notes payable
| | 7,700
| | -
|
Derivative liability
|
| 6,907
|
| -
|
| | | | |
Total liabilities
| $
| 27,083
| $
| 693
|
| | | | |
Stockholders' equity
|
| |
| |
Common stock; $0.0001 par value,
| | | | |
100,000,000 shares authorized:
| $
| 1,758
| $
| 1,718
|
17,580,000 and 17,180,000 shares
| | | | |
issued and outstanding at September 30, 2015 and
|
| |
| |
December 31, 2014, respectively.
| | | | |
|
| |
| |
Additional paid - in capital
| | 107,138
| | 84,428
|
Accumulated Deficit
|
| (135,886)
|
| (86,839)
|
| | | | |
Stockholders' Deficit
|
| (26,990)
|
| (693)
|
| | | | |
Total liabilities and stockholders' deficit
| $
| 93
| $
| -
|
The accompanying notes are an integral parts of these unaudited condensed financial statements.
2 | Page
| | | | | | | | |
GOLDEN EDGE ENTERTAINMENT, INC.
|
STATEMENTS OF OPERATIONS
|
(Unaudited)
|
| | | | | | | | |
|
| Three months ended
|
| Three months ended
|
| Ninemonths ended
|
| NInemonths ended
|
| | September 30,
| | September 30,
| | September 30,
| | September 30,
|
|
| 2015
|
| 2014
|
| 2015
|
| 2014
|
| | | | | | | | |
Revenue
| $
| -
| $
| -
| $
| -
| $
| -
|
| | | | | | | | |
Cost of revenue
| $
| -
| $
| -
| $
| -
| $
| -
|
| | | | | | | | |
Gross profit
|
| -
|
| -
|
| -
|
| -
|
| | | | | | | | |
Operating expenses
| $
| 26,060
| $
| 2,150
| $
| 46,690
| $
| 10,761
|
Derivative expense
| | 1,993
| | -
| | 1,993
| | -
|
Change in fair value of derivative
| | 86
| | -
| | 86
| | -
|
Other expenses
| | 115
| | -
| | 115
| | -
|
Interest expense
| | 163
| | -
| | 163
| | -
|
| | | | | | | | |
Loss before income taxes
| $
| (28,417)
| $
| (2,150)
| $
| (49,047)
| $
| (10,761)
|
| | | | | | | | |
Income tax
|
| -
|
| -
|
| -
|
| -
|
| | | | | | | | |
Net loss
| $
| (28,417)
| $
| (2,150)
| $
| (49,047)
| $
| (10,761)
|
| | | | | | | | |
Loss per share
|
| |
| |
| |
| |
basic and diluted
| $
| (0.00)
| $
| (0.00)
| $
| (0.00)
| $
| (0.00)
|
|
| |
| |
| |
| |
Weighted average
| | | | | | | | |
number of common
|
| |
| |
| |
| |
shares outstanding
| | 17,580,000
| | 17,180,000
| | 17,389,524
| | 17,180,000
|
The accompanying notes are an integral parts of these unaudited condensed financial statements.
3 | Page
| | | | | | | | |
GOLDEN EDGE ENTERTAINMENT, INC.
|
STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
| | For the
| | For the
| | | | |
|
| Nine months
|
| Nine months
|
| | ended
| | ended
|
|
| September 30,
|
| September 30,
|
| | 2015
| | 2014
|
OPERATING ACTIVITIES
|
|
|
|
|
Net loss
| $
| (49,047)
| $
| (10,761)
|
|
| |
| |
Adjustment to reconcile net income to
| | | | |
cash flows provided by operating activities:
|
| |
| |
Increase in payables
| | -
| | 600
|
Discount on convertible note
| | 450
| | -
|
Change in value of derivative liability
| | (86)
| | -
|
Derivative liability
|
| 1,993
|
| -
|
Changes in operating assets and liabilities:
| | | | -
|
Accrued liabilities
|
| 11,783
|
| -
|
| | | | -
|
Net cash used in operating activities
| $
| (34,907)
| $
| (10,161)
|
| | | | |
FINANCING ACTIVITIES
|
| |
| |
Proceeds from related party loan
| | 20,000
| | 7,801
|
Promissory notes payable
|
| 15,000
|
| -
|
| | | | |
Net cash provided by financing activities
| $
| 35,000
| $
| 7,801
|
| | | | |
Net variation in cash
| $
| 93
| $
| (2,360)
|
| | | | |
Cash, beginning of period
| $
| -
| $
| 2,360
|
| | | | |
Cash, end of period
| $
| 93
| $
| -
|
| | | | |
Noncash investing and financing transactions
| | | | |
Beneficial conversion discount on convertible notes
| $
| 5,000
| $
| -
|
Initial measurements of derivative liabilities
| $
| 1,993
| $
| -
|
The accompanying notes are an integral parts of these unaudited condensed financial statements.
4 | Page
GOLDEN EDGE ENTERTAINMENT, INC.
Notes to Financial Statements
September 30, 2015
(Unaudited)
NOTE 1. ORGANIZATION AND NATURE OF BUSINESS
Golden Edge Entertainment, Inc. (the Company or the Issuer) was organized under the name Retail Spicy Gourmet, Inc. under the laws of the State of Delaware on December 30, 2010. The name was changed to Golden Edge Entertainment, Inc. on February 26, 2013. The Company was established as part of the Chapter 11 reorganization of Spicy Gourmet Organics, Inc. (SGO). Under SGOs Plan of Reorganization, as confirmed by the U.S. Bankruptcy Court for the Central District of California, the Company was incorporated to: (1) receive and hold any interest which SGO had in the business of retail sales of imported spices; and (2) issue shares of its common stock to SGO's general unsecured creditors, to its administrative creditors, and to its shareholder.
On February 1, 2013 the Company resolved to enter the music production and distribution business. The Company intends to develop revenue by providing professional services to recording artists. Such services include production of recordings, management of the manufacture of CDs and internet uploading of music files, and management of the manufacture of promotional merchandise such as T-shirts and caps. As of December 31, 2013 had not yet realized any revenues from its planned operations. Activities have consisted primarily of formation, establishing relationships with studio owners, engineers, technicians, and manufacturers with whom the Company can contract for services, and administrative efforts related to registration under the 1934 Act.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying financial statements have been prepared in accordance with generally accepted accounting principles (GAAP) as promulgated in the United States of America.The Company is a development stage company as defined by section 915-10-20 of the FASB Accounting Standards Codification. The Company is still devoting substantially all of its efforts to establishing the business and its planned principal operations have not commenced. All losses accumulated since inception have been considered as part of the Company's development stage activities.
Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Earnings per share
The Company computes net income (loss) per share in accordance with the FASB Accounting Standards Codification (ASC). The ASC 260 Earnings Per Share specifies the computation, presentation and disclosure requirements for earnings (loss) per share for entities with publicly held common stock.
Basic net earnings (loss) per share amounts are computed by dividing the net earnings (loss) by the weighted average number of common shares outstanding. Common equivalent equity instruments such as 4,600,000 warrants were not included in the loss per share calculations because the inclusion would have been anti-dilutive. The 4,600,000 warrants were outstanding as of September 30, 2015.
Revenue recognition
The Company follows paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or
5 | Page
realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv)collectability is reasonably assured.
Cash and cash equivalent
Cash and cash equivalents include cash on hand and on deposit at banking institutions as well as all highly liquid short-term investments with original maturities of 90 days or less.
Derivative Financial Instruments
The Company evaluates all of its agreements to determine if such instruments have derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company uses the Black-Scholes-Merton option pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. As of September 30, 2015, the Companys only derivative financial instrument was an embedded conversion feature associated with a convertible line of credit due to the conversion price being a percentage of the market price of the Companys stock at the date of conversion.
Stock based compensation
The Company records stock-based compensation in accordance with the ASC 718 Shares-Based Compensation FASB Accounting Standards Classification using the fair value method. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for based on the fair value of the consideration received or the fair value of the equity instrument issued, whichever is more reliably measurable. Equity instruments issued to employees and the cost of the services received as consideration are measured and recognized based on the fair value of the equity instruments issued.
Income taxes
Income taxes are provided in accordance with the ASC 740 Income Tax FASB Accounting Standards Classification. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
Recently adopted accounting standards
In June 2014, the FASB issued ASU 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements. ASU 2014-10 eliminates the distinction of a development stage entity and certain related disclosure requirements, including the elimination of inception-to-date information on the statements of operations, cash flows and stockholders equity. The amendments in ASU 2014-10 will be effective prospectively for annual reporting periods beginning after December 15, 2014, and interim periods within those annual periods, however early adoption is permitted. The Company adopted ASU 2014-10 since the year ended December 31, 2014, thereby no longer presenting or disclosing any information required by Topic 915.
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entitys Ability to Continue as a Going Concern (ASU 2014-15). ASU 2014-15, which is effective for annual reporting periods ending after December 15, 2016, extends the responsibility for performing the
6 | Page
going-concern assessment to management and contains guidance on how to perform a going-concern assessment and when going-concern disclosures would be required under U.S. GAAP. The Company elected to adopt ASU 2014-15 effective with this financial statement. Managements evaluations regarding the events and conditions that raise substantial doubt regarding the Companys ability to continue as a going concern have been disclosed in this Note 2- Going Concern.
NOTE 3. GOING CONCERN
The Company sustained an accumulated deficit in the amount of $135,886 as of September 30, 2015 ($86,839December 31, 2014).The Companys continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations and/or obtain additional financing, as may be required.
The accompanying unaudited financial statements have been prepared assuming that the Company will continue as a going concern; however, the above condition raises substantial doubt about the Companys ability to do so. The financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. The officers and directors have committed to advancing certain operating costs of the Company.
NOTE 4. CONVERTIBLE NOTES PAYABLE
The Company received on July 15, 2015, a total of $10,000 by issuance of one convertible note for $10,000. The convertible note is to pay to the order of the holder the sum of the promissory note at the time and in the manner provided. This convertible promissory note bear interest from the date of issuance at the rate of 8% per annum. This note is payable one year from the date of issuance. It is convertible any time at a fixed price of $0.40 per share. Commencing on the demand date, all principal and accrued interest shall be payable by the Company upon demand by the investor.
On September 9, 2015, the Company issued a convertible line of credit to an investor that provides for a maximum borrowing of $50,000. During the quarter ended September 30, 2015, the Company borrowed $5,000 under this convertible line of credit. The convertible line of credit (i) is unsecured, (ii) bears interest at the rate of 8% per annum, and (iii) is due on September 9, 2016. The outstanding balance of under this convertible line of credit is convertible at any time at the option of the investor into shares of the Companys common stock that is determined by dividing the amount to be converted by 60% of the bid price on the day of conversion.
Due to the variable conversion price associated with this convertible line of credit, the Company has determined that the conversion feature is considered derivative liabilities. The embedded conversion feature at the date of each draw was calculated to be $6,993, which is recorded as a derivative liability as of the date of issuance. The derivative liability was first recorded as a debt discount up to the face amount of the draws on convertible line of credit of $5,000 with the remaining $1,993 begin charge as a financing cost during the quarter ended September 30, 2015. The debt discount is being amortized over the term of the convertible line of credit. The Company recognized additional interest expense of $287 during the quarter ended September 30, 2015 related to the amortization of the debt discount.
NOTE 5. DERIVATIVE LIABILITY
The convertible line of credit discussed in Note 5has a variable conversion price which results in the conversion feature being recorded as a derivative liability.
The fair value of the derivative liability is recorded and shown separately under current liabilities. Changes in the fair value of the derivative liability is recorded in the statement of operations under other income (expense).
The Company uses the Black-Scholes-Merton option pricing model with the following assumptions to measure the fair value of derivative liability at September 30, 2015:
| | |
Stock price
|
| $0.46
|
Risk free rate
|
| 0.33%
|
Volatility
|
| 250%
|
Conversion/ Exercise price
|
| $0.276
|
Dividend rate
| | 0%
|
Term (years)
|
| 0.95
|
The following table represents the Companys derivative liability activity for the period ended September 30, 2015:
| | |
| Amount
|
|
|
|
Derivative liability balance, December 31, 2014
| $
| -
|
Issuance of derivative liability during the period ended September 30, 2015
|
| 6,993
|
Change in derivative liability during the period ended September 30, 2015
|
| (86)
|
Derivative liability balance, September 30, 2015
| $
| 6,907
|
NOTE 6. STOCKHOLDERS' EQUITY COMMON STOCK
The authorized share capital of the Company consists of 100,000,000 shares of common stock with $0.0001 par value, and 20,000,000 shares of preferred stock also with $0.0001 par value. No other classes of stock are authorized.
COMMON STOCK: As of September 30, 2015, there were a total of 17,580,000 common shares issued and outstanding.
The Companys first issuance of common stock, totaling 1,180,000 shares, took place on December 30, 2010 pursuant to the Chapter 11 Plan of Reorganization confirmed by the U.S. Bankruptcy Court in the matter of Spicy Gourmet Organics, Inc. (SGO). The Court ordered the distribution of shares in Retail Spicy Gourmet, Inc. to all general unsecured creditors of SGO, with these creditors to receive their pro rata share (according to amount of debt held) of a pool of 80,000 shares in the Company. The Court also ordered the distribution of 100,000 shares in the Company to the shareholders of SGO. The Court also ordered the distribution of 1,000,000 shares and 5,000,000 warrants in the Company to the administrative creditors of SGO, with these creditors to receive one share of common stock and five warrants in the Company for each $0.05 of SGOs administrative debt which they held. The warrants consisted of 1,000,000 A Warrants each convertible into one share of common stock at an exercise price of $3.00; 1,000,000 B Warrants each convertible into one share of common stock at an exercise price of $4.00; 1,000,000 C Warrants each convertible into one share of common stock at an exercise price of $5.00; 1,000,000 D Warrants each convertible into one share of common stock at an exercise price of $6.00; and 1,000,000 E Warrants each convertible into one share of common stock at an exercise price of $7.00. All warrants are exercisable at any time prior to November 19, 2015.
·
On June 30, 2011 the Company issued a total of 10,000,000 common shares to its officers and directors for cash totaling $5,000 or $0.0005 per share. On February 1, 2013 the Company issued 6,000,000 common shares to an officer for services.
·
On March 24, 2015 the Company issued a total of 400,000 common shares for the exercise of 400,000 warrants for a value of $0.05 per common share or a total 0f $20,000.
·
On March 24, 2015 the Company Board of Directors approved a conversion price for all the warrants outstanding changed to $0.05.
As a result of these issuances there were a total 17,580,000 common shares issued and outstanding, and a total of 4,600,000 warrants to acquire common shares (at $0.05) issued and outstanding, at September 30, 2015.PREFERRED STOCK: The authorized share capital of the Company includes 20,000,000 shares of preferred stock with $0.0001 par value. As of September 30, 2015 no shares of preferred stock had been issued and no shares of preferred stock were outstanding.
NOTE 7- EARNINGS PER SHARE
The computation of earnings (loss) per share for the period ended September 30, 2015 and 2014 is as follow:
| | | | | | | | |
|
| Three months ended
|
| Threemonths ended
|
| Ninemonths ended
|
| Ninemonths ended
|
| | September 30,
| | September 30,
| | September 30,
| | September 30,
|
|
| 2015
|
| 2014
|
| 2015
|
| 2014
|
Net loss available
| | | | | | | | |
to common shareholders
| $
| (28,417)
| $
| (2,150)
| $
| (49,047)
| $
| (10,761)
|
| | | | | | | | |
Weighted number of common shares
|
| 17,580,000
|
| 17,180,000
|
| 17,389,524
|
| 17,180,000
|
| | | | | | | | |
Basic loss per share
| $
| (0.00)
| $
| (0.00)
| $
| (0.00)
| $
| (0.00)
|
For the period from inception (December 30, 2010) through September 30, 2015 there were 5,000,000 shares issuable upon exercise of warrants. The 5,000,000 warrants were not included in the loss per share calculations because the inclusion would have been anti-dilutive.
NOTE 8. INCOME TAXES
The Company has had no business activity and made no U.S. federal income tax provision since its inception on December 30, 2010.
NOTE 9. RELATED PARTY TRANSACTIONS
As set forth in Note 4 above, on February 1, 2013 the Company issued 6,000,000 common shares to its President for services. Also as set forth in Note 4 above, on June 30, 2011 the Company issued a total of 10,000,000 common shares to its two other officers and directors for cash totaling $5,000 or $0.0005 per share.
During the year ended December 31, 2014, an officer and director advanced $8,401 in multiple transactions to cover various expenses. The entire outstanding balance of related party liabilities was forgiven as of December 31, 2014.
The Company neither owns nor leases any real or personal property. The officers and directors for the Company are involved in other business activities and may, in the future, become involved in other business opportunities. If a specific business opportunity becomes available, such persons may face a conflict in selecting between the Company and their other business interests. The Company has not formulated a policy for the resolution of such conflicts.
NOTE 10. WARRANTS
On December 30, 2010 (inception), the Company issued 5,000,000 warrants exercisable into 5,000,000 shares of the Companys common stock. These warrants were issued per order of the U.S. Bankruptcy Court in the matter of Spicy Gourmet Organics, Inc. (SGO) to the administrative creditors of SGO. These creditors received an aggregate of 5,000,000 warrants consisting of 1,000,000 A Warrants each convertible into one share of common stock at an exercise price of $3.00; 1,000,000 B Warrants each convertible into one share of common stock at an exercise price of $4.00; 1,000,000 C Warrants each convertible into one share of common stock at an exercise price of $5.00; 1,000,000 D Warrants each convertible into one share of common stock at an exercise price of $6.00; and 1,000,000 E Warrants each convertible into one share of common stock at an exercise price of $7.00. All warrants are exercisable at any time prior to November 19, 2015. The gross value of $53,678 (or approximately $0.0107356 per warrant) were assigned to the warrants. As of the date of this report, 400,000 warrants have been exercised at $0.05. There is 4,600,000 warrants outstanding as of the date of this report at $0.05.
NOTE 11. SUBSEQUENT EVENTS
In October 2015, the Company borrowed additional $6,600 under the convertible line of credit dated September 9, 2015.
9 | Page
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
INTRODUCTION
The following discussion and analysis provides information which management of the Company believes to be relevant to an assessment and understanding of the Companys results of operations and financial condition. This discussion should be read together with the Companys financial statements and the notes to the financial statements, which are included in this report.
FORWARD-LOOKING STATEMENTS
The discussion contained herein contains "forward-looking statements" that involve risk and uncertainties. These statements may be identified by the use of terminology such as "believes," "expects," "may," "should" or anticipates" or expressing this terminology negatively or similar expressions or by discussions of strategy. The cautionary statements made in this Form 10-Q should be read as being applicable to all related forward-looking statements wherever they appear in this Form 10-Q. Our actual results could differ materially from those discussed in this report.
BUSINESS AND PLAN OF OPERATION
Golden Edge Entertainment, Inc. (the Company or the Issuer) was organized under the name Retail Spicy Gourmet, Inc. under the laws of the State of Delaware on December 30, 2010. The name was changed to Golden Edge Entertainment, Inc. on February 26, 2013. The Company was established as part of the Chapter 11 reorganization of Spicy Gourmet Organics, Inc. (SGO). Under SGOs Plan of Reorganization, as confirmed by the U.S. Bankruptcy Court for the Central District of California, the Company was incorporated to: (1) receive and hold any interest which SGO had in the business of retail sales of imported spices; and (2) issue shares of its common stock to SGO's general unsecured creditors, to its administrative creditors, and to its shareholder in order to enhance their opportunity to recover from the bankruptcy estate.
On February 1, 2013 the Company resolved to enter the music production and distribution business. The Company is a development stage business that intends to develop revenue by providing professional services to recording artists. Such services include production of recordings, management of the manufacture of CDs and internet uploading of music files, and management of the manufacture of promotional merchandise such as T-shirts and caps. The Company has been in the development stage since its formation and has not yet realized any revenues from its planned operations.
DEPARTURE OF DIRECTORS OR PRINCIPAL OFFICERS; ELECTION OF DIRECTORS
In accordance with the disclosure below, there was a change in control and management of Golden Edge Entertainment Inc., a Delaware S corporation (the "Company").
In accordance with the terms and provisions of that certain stock purchase agreement dated October 2, 2014 (the "Stock Purchase Agreement") by and between Daniel C. Master, Attorney at Law, representing certain shareholders holding an aggregate of 17,065,000 shares of restricted common stock, representing approximately 99.3% of the Company's total issued and outstanding share of common stock (collectively, the "Seller"), and Tony Khoury, an individual representing certain buyers (collectively, the "Purchaser"), the Purchaser purchased from the Seller all of the 17,065,000 shares of common stock effective February 19, 2015. Of the 17,065,000 shares, Mr. Khoury holds of record 16,065,000 shares based on the transfer of 1,000,000 shares to two unrelated parties.
Further, in accordance with the terms and provisions of that certain warrant purchase agreement dated October 2, 2014 (the "Warrant Purchase Agreement") by and between Daniel C. Masters, Attorney at Law, representing certain warrant holders holding an aggregate of 5,000,000 warrants (collectively, the "Warrant Seller"), and an unrelated third party representing certain buyers (collectively, the "Warrant Purchaser"), the Warrant Purchaser purchased from the Warrant Seller all of the 5,000,000 warrants.
Thus, at the date of this report, there was a change in our control.
10 | Page
In accordance thereof, the Board of Directors also accepted the resignations of our officers and directors as follows: (i) Edgel Groves as the Chief Executive Officer, President and a member of the Board of Directors effective February 19, 2015; and (ii) Daniel Masters as the Secretary, Treasurer/Chief Financial Officer and a member of the Board of Directors effective February 19, 2015. Simultaneously, the Board of Directors appointed Tony Khoury as the President/Chief Executive Officer, Secretary, Treasurer/Chief Financial Officer and sole member of the Board of Directors.
Mr. Khoury has been involved as an experienced professional in the industry of sales and leasing for the past ten years. From approximately 2006 to present, Mr. Khoury has been a Director of Sales and leasing at TRAMS Property Management in Montreal, Quebec, which is a multi-national, vertically integrated real estate group offering third party real estate services in the United States.
Mr. Khoury is responsible for a team of sales people creating new marketing ideas, negotiating sales of properties and implementing new corporate strategies. From approximately 2004 through 2006, Mr. Khoury was a business broker for Sunbelt Business Brokers inToronto, Ontario, which is a large main street and lower middle market business intermediary firm. Mr. Khoury assisted in negotiations in Mergers and Acquisitions, assisted potential buyers to acquire businesses and analyzed financial records to help improve corporate growth. Mr.Khoury attended Vanier College in Montreal, Quebec.
CORPORATE GOVERNANCE AND MANAGEMENT
On March 23, 2015 Tony Khoury resigned as the Companys Chief Executive Officer and Chief Financial Officer. Mr. Khoury had not disputes with the Company and still remains as Chairman of the board, Secretary and Treasurer. In conjunction with the resignation of Mr. Khoury, Anthony Pavek was appointed Chief Executive Officer and President of the Company, and John Govoruhk was appointed Vice President and Chief Operating Officer of the Company.
Mr. Pavek, born 8/16/80 is the founder of HaloHD.com Inc., a rapidly growing film and video production company located in the Tampa bay area. He studied at Full Sail Real World Education in Winter Park, FL where he earned an Associate of Science in Film and Video. Mr. Pavek directed the production of the Zellwood Sweet Corn Festival, an annual concert held just outside of Orlando which draws approximately 30,000 fans on a yearly basis. He has also directed over 30 major country/rock/Christian artist concerts. Mr. Pavek graduated from Full Sail University in 2002 with an AS in film/video.
John Govoruhk, born 2/12/59 is a promoter and booking agent with over three decades of experience in the music industry. He started his own booking agency called Johnny Gs, an agency that eventually merged with Omni Talent. Working with Omni, Mr. Govoruhk handled numerous national bands, not only at the height of their glory, but in their early days as well. These acts included Jackyl, Quiet Riot, 38 Special, Lynyrd Skynyrd, Jefferson Starship, and Cheap Trick. In addition to owning a studio, he owned and operated a musical instruments business for over ten years as well. Within the last two years, he collaborated on shows for both Live Nation and AEG LIVE. John is founder of Crowd Pleaser Artist a promotional company, in business for last 5 years.
5,000,000 warrants to purchase shares of our common stock were also distributed to creditors of the Debtor as part of the confirmed Plan of Reorganization. The warrants consist of 1,000,000 "A Warrants" each convertible into one share of common stock at an exercise price of $3.00; 1,000,000 "B Warrants" each convertible into one share of common stock at an exercise price of $4.00; 1,000,000 "C Warrants" each convertible into one share of common stock at an exercise price of $5.00; 1,000,000 "D Warrants" each convertible into one share of common stock at an exercise price of $6.00; and 1,000,000 "E Warrants"
On March 24,2015, the board passed a resolution on electing to change the exercise price of Warrants A, B,C and D to $0.05 each.
11 | Page
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 2015 we had $93 in cash and no other assets, and as of December 31, 2014, our most recent year end, we had no cash and no other assets.
As of September 30, 2015 we had total liabilities of $27,083(December 31, 2014 - $693) consisting of accounts payable ($12,476),convertible notes payable ($7,700), and derivative liability ($6,907).
At September 30, 2015 we had an accumulated deficit of $135,886and as of December 31, 2014, our last audit date, we had a deficit of $86,839. We will, in all likelihood, continue to sustain operating expenses without corresponding revenues until we begin to produce recordings.
We are dependent upon our officers and shareholders to meet any expenses that may occur. Our president and other directors have agreed to provide the necessary funds, without interest, for the Company to comply with the Securities Exchange Act of 1934, as amended, provided that they are officers and directors of the Company when the obligation is incurred. All advances are interest-free.
RESULTS OF OPERATIONS
The Company has developed its business plan and has commenced marketing of its services but has realized no revenues to date. The Companys business plan calls for the Company to provide recording services to recording artists. It also calls for the Company to sell, on a special order, wholesale basis, CDs and promotional merchandise such as caps and T-shirts to recording artists. Recording artists typically sell such merchandise to their fans on a retail basis at concerts and through their own websites. This business model relieves the Company of the need to distribute, market, or sell such merchandise to the public. We may sell music that can be digitally downloaded from websites such as Apples iTunes, but this will involve no cost to the Company once recording is completed, and recording costs are paid by the music artists or other clients. To the extent that we sell music through sites such as iTunes it will most likely be on a revenue sharing basis with the recording artists; this will compensate the Company for organizing the upload of the music.
GOING CONCERN
The accompanying unaudited financial statements are presented on a going concern basis. The company's financial condition raises substantial doubt about the Company's ability to continue as a going concern. The Company has little cash and no other material assets and it has no operations or revenues from operations. It is relying on advances from officers and directors to meet its limited operating expenses.
OFF-BALANCE SHEET ARRANGEMENTS
We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.
12 | Page
ITEM 4. CONTROLS AND PROCEDURES
EVALUATION OF DISCLOSURE CONTROLS AND PROCEDURES
Our management team, under the supervision and with the participation of our principal executive officer and our principal financial officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as such term is defined under Rule 13a-15(e) promulgated under the Exchange Act, as of the last day of the fiscal period covered by this report, September 30, 2015. The term disclosure controls and procedures means our controls and other procedures that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to management, including our principal executive and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Based on this evaluation, our principal executive officer and our principal financial officer concluded that, as of September 30, 2015, our disclosure controls and procedures were effective at a reasonable assurance level. A control system cannot provide absolute assurance, however, that the objectives of the control system are met, and no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within a company have been detected.
CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING
There have been no changes in our internal control over financial reporting during the period ended September 30, 2015 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
13 | Page
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
None.
ITEM 1A. RISK FACTORS
There have been no material changes to the risks to our business from those described in our most recent Form 10-K as filed with the SEC on May 19, 2015.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. REMOVED AND RESERVED
ITEM 5. OTHER INFORMATION
None.
ITEM 6. - EXHIBITS
No.
Description
31.1
Certification of Chief Executive Officer required by Rule 13a-14(a) or Rule 15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2
Certification of Chief Financial Officer required by Rule 13a-14(a) or Rule15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1
Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2
Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101
The following materials from the Companys Quarterly Report on Form 10-Q for the quarter ended September 30, 2015, formatted in XBRL (eXtensible Business Reporting Language); (i) Balance Sheets at September 30, 2015and December 31, 2014, (ii) Statement of Operations for the three months and nine months period ended September 30, 2015 and 2014, (iii) Statement of Cash Flows for the threemonths and ninemonths period ended September 30, 2015 and 2014, and (iv) Notes to Financial Statements.
14 | Page
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: November 23, 2015 GOLDEN EDGE ENTERTAINMENT, INC.
By: /s/
Anthony Pavek
--------------------------------------
President and Director
By: /s/
Anthony Pavek
--------------------------------------
Secretary, Treasurer and Director
15 | Page
EXHIBIT 31.1
CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a)
I, Anthony Pavek, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Golden Edge Entertainment, Inc. (the Registrant");
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 Registrant's other certifying officer 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 we 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 Registrant's 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;
5. The Registrant's other certifying officer 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 Registrant's board of directors (or persons performing the equivalent function):
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.
Date: November 23, 2015
/s/ Anthony Pavek
---------------------------
Anthony Pavek
Chief Executive Officer
EXHIBIT 31.2
CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a)
I, Anthony Pavek, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Golden Edge Entertainment, Inc. (the Registrant");
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 Registrant's other certifying officer 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 we 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 Registrant's 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;
5. The Registrant's other certifying officer 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 Registrant's board of directors (or persons performing the equivalent function):
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.
Date: November 23, 2015
/s/ Anthony Pavek
---------------------------
Chief Accounting Officer
EXHIBIT 32
Certification
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code)
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code), each of the undersigned officers of Golden Edge Entertainment, Inc., a Delaware corporation, does hereby certify, to such officers knowledge, that the Quarterly Report on Form 10-Q for the fiscal year ended December 31, 2013 of Golden Edge Entertainment, Inc. fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)) and that information contained in such report fairly presents, in all material respects, the financial condition and results of operations of Golden Edge Entertainment, Inc.
Dated: November 23, 2015
/s/ Anthony Pavek
---------------------------
Anthony Pavek
Chief Executive Officer
Chief Accounting Officer
The foregoing certification is furnished solely pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Subsections (a) and (b) of Section 1350, Chapter 63 of Title 18, United States Code) and is not being filed as part of the Form 10-K or as a separate disclosure document.
Luminar Media (PK) (USOTC:LRGR)
過去 株価チャート
から 11 2024 まで 12 2024
Luminar Media (PK) (USOTC:LRGR)
過去 株価チャート
から 12 2023 まで 12 2024