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CBDX Curative Biosciences Inc (CE)

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02 Dec 2024 - Closed
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Share Name Share Symbol Market Type
Curative Biosciences Inc (CE) USOTC:CBDX OTCMarkets Common Stock
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  0.00 0.00% 0.000001 0.00 00:00:00

Annual Report (10-k)

27/10/2016 1:14pm

Edgar (US Regulatory)


 

 

 

U. S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-K

 

ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended June 30, 2016

 

Commission File Number 333-59114

 

AMAIZE BEVERAGE CORPORATION

 

NEVADA   33-0730042

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification No.)

     
5042 Wilshire Blvd., #34708, Los Angeles, CA   90036
(Address of principal executive offices)   (Zip Code)

 

Issuer’s telephone number: (949) 287-3164

 

Securities registered under 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 [  ] No [X]

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes [  ] No [X]

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section13 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 website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T 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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (17 CFR 229.405) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statement incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.

 

 

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer or a smaller reporting company. See definition of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated file [  ] Accelerated filer [  ]
Non-accelerated filer [  ] Smaller reporting company [X]
(Do not check if a smaller reporting company)  

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes [  ] No [X]

 

The registrant’s revenues for its most recent fiscal year were $0

 

The aggregate market value of the registrant’s common stock held by non-affiliates based upon the closing sales price of the common stock on September 27, 2016 of $0.18 per share, as reported by the OTC Markets Pink Sheets was  approximately $635,756. Shares of common stock held by each of the current executive officers and directors and by each person who is known by the registrant to own 5% or more of the outstanding common stock have been excluded from this computation in that such persons may be deemed to be affiliates of the registrant. This determination of affiliate status is not a conclusive determination for other purposes.

 

The number of shares outstanding of the registrant’s only class of common stock, $0.001 par value per share, was 15,558,030 of September 30, 2016. The registrant has no outstanding non-voting common equity.

 

DOCUMENTS INCORPORATED BY REFERENCE

 

None

 

 

 

     
     

 

TABLE OF CONTENTS

 

PART I
     
Item 1. Description of Business 3
Item 1A. Risk Factors 7
Item 1B. Unresolved Staff Comments 12
Item 2. Description of Property 12
Item 3. Legal Proceedings 12
Item 4. Mine Safety Disclosures 12
     
PART II
     
Item 5. Market for Common Equity, Related Stockholder Matters and Small Business Issuer Purchases of Equity Securities 13
Item 6. Selected Financial Data 13
Item 7. Management’s Discussion and Analysis or Plan of Operation 14
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 17
Item 8. Financial Statements and Supplementary Data 18
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 19
Item 9A. Controls and Procedures 19
Item 9B. Other Information 20
     
PART III
     
Item 10. Directors, Executive Officers, and Corporate Governance 20
Item 11. Executive Compensation 22
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 24
Item 13. Certain Relationships and Related Transactions, and Director Independence 25
Item 14. Principal Accountant Fees and Services 26
Item 15. Exhibits and Financial Statement Schedules 27

 

  2  
 

 

PART I

 

ITEM 1. DESCRIPTION OF BUSINESS

 

General

 

Amaize Beverage Corporation, (“the Company”, “the Registrant”, “we”, “us” or “our”) develops and markets better-for-you 100% natural beverages. The Company’s goal is to successfully position a “better for you” portfolio of beverages as convenient, healthy solutions to support the lifestyles of today’s active health conscious consumers. We commenced sales of our packaged snack products in the third quarter ended March 31, 2011, although we made no sales during the twelve months ended June 30, 2016 or 2015. Our principal executive office address is 5042 Wilshire Blvd., Los Angeles, CA 90036 and our telephone number is (949) 287-3164.

 

Organization

 

Amaize Beverage Corporation is organized under the laws of the state of Nevada. The Board of Directors and the majority shareholders of the Company constituting a total of 9,327,859 shares of common stock (82.83%) approved as of June 26, 2015, in a written consent of the Board of Directors and the majority of the shareholders of the Company, a name change from “SnackHealthy, Inc.” to “Amaize Beverage Corporation”. The Company believes that its new name will better reflect the new direction of the Company’s business, that of developing and marketing beverages that provide sustenance and benefit to active and health-conscious consumers. The Company seeks to deliver these health benefits as it develops products that are all-natural, low-calorie and free from artificial sweeteners. On August 13, 2015, the Company has filed an amendment to its articles of incorporation (the “Amendment”) with the Secretary of State of the state of Nevada. The Amendment provides for the change of the Company name from SnackHealthy, Inc. to its current name, Amaize Beverage Corporation. The Company’s trading symbol was changed by FINRA to “BEVS”.

 

Business Overview

 

To more effectively facilitate the process of shifting to retail beverage distribution, in November 2013, Richard Damion joined our Company as the acting chief executive officer. He was then approved by the Board of Directors as the Company’s President and Chief Executive Officer in January 2014. On February 15, 2015, the Board of Directors of the Company appointed A.R. (Bud) Grandsaert, age 72, as the Company’s new President. Richard Damion resigned as the Company’s President as of that date; however, he remains the Company’s Chief Executive Officer and Director.

 

  3  
 

 

We determined during the first quarter of 2015 that we would transition out of our lower margin, perishable snack food product lines and have focused our resources solely on developing new healthy beverages. Amaize Beverage Corporation will continue to focus on developing its healthy beverage product line with a plan to sell to large retailers and club stores in the United States. The Company recently completed development of a unique “better for you” beverage with purple corn as its primary ingredient. Purple corn has historical roots of over thousands of years yet is newly rediscovered for its incredible health benefits. Leading research & development companies in the United States have been gathering data on its health benefits and working on integrating its benefits into a number of consumer products. The beverage, with super antioxidant status, is a unique blend of fruits and spices, offering extraordinary health benefits and great taste. Our initial portfolio design includes three beverage lines; Amaize™100% Natural Purple Corn Beverage, Amaizing Tea™ and Amaizing Lemonade™. We plan to launch our Amaize™ 100% Natural Purple Corn Drink ahead of our blended teas   and blended lemonades to establish our distribution network with a one of a kind product and to later, ‘red-carpet’ our tea and lemonade beverages through an established distribution system. The fact that the average American drinks over seven drinks per day allows plenty of opportunity to market a healthy drink, helping us to achieve our mission of providing a positive healthy delicious beverage . While there can be no assurance, management believes that this strategy will ultimately prove successful. The Company is currently seeking the necessary financing to pursue its business and growth plans, however, no assurances can be given that the Company will obtain the necessary financing.

 

We are a virtual company with a focus on staying lean through the use of cloud based technologies, maintaining low overhead, subcontracting services, creating sales through commissioned brokers, developing products through reputable co-packers and keeping little to no inventory except for use in sales and business development activities.

 

Industry wide factors that affect us include the increasing prevalence of obesity in adults and children and a growing demand for healthier foods and beverages worldwide.

 

  According to the World Health Organization (WHO), approximately 1.7 billion adults are overweight and 400 million are obese. By 2015, it is predicted that 2.3 billion adults will be overweight and more than 700 million will be obese. Obesity rates among children have also climbed, with more than 30 percent now overweight or obese.
     
 

According to the Centers for Disease Control and Prevention, over the last 30 years, obesity among American children ages 6 to 11 has more than doubled.

     
  Studies show that the most effective way to prevent obesity is to address it during childhood by instilling healthy habits which starts with the very basis of cutting back on sugary drinks, eating the right foods, and exercising daily.

 

Products

 

Our initial portfolio will consist of three beverage lines; Amaize™100% Natural Purple Corn Beverage, Amaizing Tea™ and Amaizing Lemonade™. We plan to launch our Amaize™ 100% Natural Purple Corn Drink ahead of our blended tea and blended lemonade beverages to establish our distribution network with a one of a kind product. We plan to ‘red-carpet’ our Tea and Lemonade beverages through an established distribution system in summer of 2017. The launch of these products is subject to the Company’s ability to obtain additional financing.

 

Benefits of Purple Corn in AMAIZE™

 

The beneficial properties of Purple Corn are promising. Current research supports, although it has not been scientifically proven, daily intake values of 300mg to maximize health benefits and nutritional supports for:

 

  Heart/Cardiovascular Health
     
  Colon Health
     
  Weight Management
     
  Brain Health
     
  Vision Health
     
  Antioxidant Defense System
     
  Healthy Inflammatory Response
     
  Promoting Collagen
     
  Maintaining Healthy Blood Sugar Levels

 

  4  
 

 

AMAIZE™ 100% NATURAL

 

Amaize is a uniquely delicious drink, rich is color and high in antioxidants. It is based on an ancient Peruvian drink made by brewing purple corn and adding tropical pineapple juice and apple juice. It offers many potential health benefits. Due to the high concentrations of natural purple pigments known as anthocyanins, Purple Corn is an antioxidant powerhouse. It protects cells from damage by free radicals, detoxifies, is a powerful anti-inflammatory and lowers blood pressure. Because Purple corn’s anthocyanins are stable when heated, we are able to harness their special properties.

 

AMAIZING LEMONADE

 

Amaizing Lemonade is a 100% Natural Lemonade blended with Purple Corn It is a refreshing take on one of America’s favorite beverages. We plan to extend the line to five distinct and great tasting flavors, offering significantly reduced calories without the use of artificial sweeteners or coloring. Amaizing Lemonade is being formulated to contain approximately 40% fewer calories than our competitors and will be the only all lemonade blended with purple corn in the marketplace.

 

The Lemonade Market

 

A brief review of the Lemonade market is in order. Lemonade, that quintessential summertime drink, is becoming a drink for all seasons. No longer resigned to backyard barbecues and ball games, the category has seen a surge in year-round consumption.

 

  Lemonade is America’s second favorite juice drink.
     
  89% of juice drinkers consume lemonade; 36% as a favorite.
     
  56% of all teenagers prefer lemonade in the juice category.
     
  The Lemonade single serve category in 2014 was estimated to be over $184M up 11% from 2013.

 

AMAIZING TEA

 

Somewhere between the pumped-up, sugar-saturated drinks and the tasteless waters, there is a need for a healthier alternative in the tea category. Our goal is to provide genuine natural taste without the artificially concocted sweeteners and preservatives designed to compensate for lack of taste. Amaizing Tea will allow people to enjoy the world’s second most popular drink the way hundreds of civilizations and nature intended it to be; a world of flavor freshly brewed and barely sweetened. We plan to blend tea from around the world with brewed purple corn with an added hint of honey or pure palm sugar. Finally, we will filter Amaizing Tea to produce a pure genuine taste that doesn’t need a disguise. Unlike most of the bottled teas in the marketplace, our formula for Amaizing Tea does not use bricks of tea dust, tea concentrate, or other artificial sweeteners or acids. The tea will have no bitter aftertaste or sugar kick, and will not leave a syrupy film on the drinker’s teeth.

 

Production and Manufacturing

 

Though it was a long and arduous “learning experience” finding the perfect way to brew the purple corn and blend it with the appropriate ingredients, we have developed unique brewing tools and techniques which will enable us to manufacture in an efficient and scalable manner to achieve our desired consistency. We plan to have our Amaize beverage line brewed and bottled at facilities selected based on numerous criteria including capacity, reputation, quality control, production efficiency and willingness to invest in a long-term partnership. The Company is currently seeking the necessary financing to pursue its production and manufacturing plans, however, no assurances can be given that the Company will obtain the necessary financing.

 

Target Market

 

Our primary targeted demographics are 30+ adults who want to feel young and lead active, healthy lives. Our mission and concept is supported by a growing consumer link between nutrition and wellness and the ever-growing need for convenient solutions. This fact ensures the product line does not just attract the huge “baby boomer” category but includes all health conscious consumers.

 

Product Launch

 

We plan to launch our initial beverage in the second quarter of 2017. The launch of our initial beverage is subject to the Company’s ability to obtain additional financing. Pre-marketing discussions with distributors are underway and some distributors have expressed interest in adding the Amaize brand to their line-up. We plan to use in-store sampling as a strategy to educate consumers. In addition, we plan to advertise via consumer websites, social media outlets and magazines. The Company is currently seeking the necessary financing to pursue its product launch, however, no assurances can be given that the Company will obtain the necessary financing.

 

Product Positioning

 

We plan to position our beverages as both an RTD stand-alone and a natural complement to food in an effort to broaden appeal. We believe we can benefit from the large and growing tea and lemonade markets reflected by the surging sales growth in both categories in North America and internationally. Our beverages, being all-natural, lower calorie, and “good for you”, will be in-line with our corporate mission to reach a large demographic by aiming to be the one of the healthiest, all-natural beverages in the marketplace.

 

  5  
 

 

Packaging and Pricing

 

We plan to have our line of products offered initially in a 16oz. plastic bottle to be followed up with an 8 oz. individual and a larger 32 oz. Club size. Our bottles, logos and labels will be designed in a very attractive contemporary style with packaging communicating the attributes of the beverages in several ways:

 

  By using contemporary designed bottles with spot labeling, (i.e. front and back instead of wraparound) our bottles evoke quality with more space for the consumer to see the color of our beverages. The rich color of our purple corn drink and our teas with a purple hue are very appealing to the eye.
     
  The beauty of our custom bottles are in their simplicity. Our packaging has no flashy slogans, advertising call-outs or marketing hype. The package helps condition the consumer’s mind for what they are about to experience.

 

The Company is currently seeking the necessary financing to pursue its packaging plans, however, no assurances can be given that the Company will obtain the necessary financing.

 

The retail price for our 16oz. Amaize™ is expected to be between $2.50 and $2.99, considerably less than Pom Wonderful which usually sells for $3.88. The retail price for a 16oz. teas and lemonades are expected to vary between $1.29 and $2.00 falling in the middle of the category on a pricing basis.

 

Market Opportunity

 

Explosive Growth in Ready-to-Drink (RTD) Tea and Bottled Water Markets

 

Although carbonated soft drinks still dominate the beverage market, in the past ten years Ready-To-Drink teas and bottled water have emerged as alternatives. Since 2009 the United States tea market has enjoyed 20% annual growth, with wholesale sales reaching over $10 billion last year. Individual tea consumption has risen to over 9 gallons per capita.

 

The Emergence of Tea Culture

 

Arizona Tea and Snapple have helped make tea accessible to a broader population. Now in the same way that gourmet coffees have become popular, consumers are beginning to develop an appreciation for finer teas. Over the last six years United States loose leaf tea sales have more than doubled. According to the Tea Council, there are over a thousand tea houses or tea parlors in the country, mostly opened within the last two or three years. These parlors focus almost exclusively on tea, products that go with tea as well as tea hardware. They carry names such as Teaism, TeaLuxe, Elixir Tonics and Teas, and Tea & Company. Even Lipton is opening a flagship tea bar in Pasadena, California. In addition to the burgeoning of tea cafes, tea culture is spreading in the form of tea magazines, tea-flavored ice cream, frozen tea ice bars, tea-scented perfume and bubble bath, tea jelly, tea calendars and even books about tea. The paperback Loving Tea was recently spotted as a “cash register book” at the bookstore, commanding prime space next to Dilbert and Chicken Soup for the Soul.

 

Rise of Cultural Creatives

 

Market research in the past three years has identified a consumer mindset which would seem to be particularly receptive to Amaize™ Beverages, calling them a core consumer element. A study by the market research firm American LIVES identified a subset of the population, roughly 44 million Americans, which they labeled “Cultural Creatives”. Among the key characteristics and values identified for this group below, make them ideal customers.

 

  Experiential consumers; they want to know where a product came from, how it was made, and who made it.
     
  Holistic; they view nature as sacred and form the core market for alternative health care and natural foods.
     
  Aggressive consumers of cultural products; love of things foreign and exotic.
     
  Desire for authenticity; favoring high integrity over high fashion.
     
  Disdainful of mainstream media and consumerist culture; too superficial, not enough attention to the full story.
     
  Attuned to global issues and whole systems; they have a sense of belonging to a global village.

 

  6  
 

 

Profile of Target Customer

 

When we combine these above trends and compare them with the demographics of the Cultural Creatives study as well as other market demographic information, we are able to develop a profile of our target customers:

 

  60% women, 40% men.
     
  Median age 42, with a range from 30-65.
     
  Likely to live near a concentrated urban area.
     
  Likely to have graduated college or have an advanced degree.
     
  Likely to currently be bottled water or RTD drinkers.
     
  Interested in running, hiking and outdoor healthy activities.
     
  Average family income $52,000.

 

Available Information

 

Our Internet website address is www.AmaizeBeverageCorp.com. We make available free of charge on our website our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K as soon as reasonably practical after we file such material with, or furnish it to, the Securities and Exchange Commission, or SEC. This information is also available in print to any shareholder who requests it, with any such requests addressed to Investor Relations, 5042 Wilshire Blvd., 34708, Los Angeles, California 90036. Certain of these documents may also be obtained by calling the SEC at 1-800-SEC-0330. The SEC also maintains an Internet website that contains reports, and other information regarding issuers that file electronically with the SEC at www.sec.gov.

 

Item 1A. RISK FACTORS

 

In addition to the other information in this Form 10-K, the following risk factors should be considered carefully in evaluating our business. Our business, financial condition or results of operations may be adversely affected by any of these risks. Additional risks and uncertainties, including risks that we do not presently know of or currently deem insignificant, may also impair our business, financial condition or results of operations.

 

Our performance may be impacted by general economic conditions and an economic downturn.

 

Recessionary pressures from an overall decline in U.S. economic activity could adversely impact our business and financial results. Economic uncertainty may reduce consumer spending in our sales channels and create a shift in consumer preference toward private label products. Shifts in consumer spending could result in increased pressure from competitors or customers to reduce the prices of some of our products and/or limit our ability to increase or maintain prices, which could lower our revenues and profitability. Instability in the financial markets may impact our ability or increase the cost to enter into credit agreements in the future. Additionally, it may weaken the ability of our customers, suppliers, distributors, banks, insurance companies and other business partners to perform in the normal course of business, which could expose us to losses or disrupt the supply of inputs we rely upon to conduct our business. If one or more of our key business partners fail to perform as expected or contracted for any reason, our business could be negatively impacted.

 

Volatility in the price or availability of the inputs we depend on, including raw materials, packaging, energy and labor, could adversely impact our financial results.

 

Our financial results could be adversely impacted by changes in the cost or availability of raw materials and packaging. Continued growth would require us to hire, retain and develop a highly skilled workforce and talented management team. Any unplanned turnover or our failure to develop an adequate succession plan for current positions could erode our competitiveness. In addition, our financial results could be adversely affected by increased costs due to increased competition for employees, higher employee turnover or increased employee benefit costs.

 

We operate in a highly competitive industry.

 

Price competition and industry consolidation could adversely impact our financial results. The sales of most of our products are subject to significant competition primarily through discounting and other price cutting techniques by competitors, many of whom are significantly larger and have greater resources than we do. In addition, there is a continuing consolidation in the beverage and snack food industries, which could increase competition. Significant competition increases the possibility that we could lose one or more major customers, lose existing product authorizations at customer locations, lose market share and/or shelf space, increase expenditures or reduce selling prices, which could have an adverse impact on our business or financial results.

 

  7  
 

 

Sales price increases initiated by us may negatively impact our financial results. Future price increases, such as those to offset increased ingredient costs, may reduce our overall sales volume, which could reduce revenues and operating profit. Additionally, if market prices for certain ingredients decline significantly below our contracted prices, customer pressure to reduce prices could lower revenues and operating profit.

 

The loss of key personnel could have an adverse effect on our financial results and growth prospects.

 

There are risks associated with our ability to retain key employees. If certain key employees terminate their employment, it could negatively impact sales, marketing or development activities. Further, management’s attention might be diverted from operations to recruiting suitable replacements and our financial condition, results of operations and growth prospects could be adversely affected. In addition, we may not be able to locate suitable replacements for key employees or offer employment to potential replacements on acceptable terms.

 

Efforts to execute and accomplish our strategic initiatives could adversely affect our financial results.

 

If we are unsuccessful due to our execution, unplanned events, ability to manage change or unfavorable market conditions, our financial performance could be adversely affected. If we pursue strategic acquisitions, divestitures, or joint ventures, we may incur significant costs and may not be able to consummate the transactions or obtain financing.

 

Concerns with the safety and quality of certain food and beverage products or ingredients could cause consumers to avoid our products.

 

We could be adversely affected if consumers in our principal markets lose confidence in the safety and quality of certain products or ingredients. Negative publicity about these concerns, whether or not valid, may discourage consumers from buying our products or cause disruptions in production or distribution of our products and negatively impact our business and financial results.

 

If our products become adulterated, misbranded or mislabeled, we might need to recall those items and we may experience product liability claims if consumers are injured or become sick.

 

Product recalls or safety concerns could adversely impact our market share and financial results. We may be required to recall certain of our products should they be mislabeled, contaminated or damaged. We also may become involved in lawsuits and legal proceedings if it is alleged that the consumption of any of our products causes injury or illness. A product recall or an adverse result in any such litigation could have an adverse effect on our operating and financial results. We may also lose customer confidence for our entire brand portfolio.

 

Disruption of our supply chain or information technology systems could have an adverse impact on our business and financial results.

 

Our ability to manufacture, distribute and sell products is critical to our success. Damage or disruption to our manufacturing or distribution capabilities or the supply and delivery of key inputs, such as raw materials, finished goods, packaging, labor and energy, could impair our ability to conduct our business. Examples include, but are not limited to, weather, natural disasters, fires, terrorism, pandemics and strikes. Certain warehouses and manufacturing facilities may be located in areas prone to tornadoes, hurricanes and floods. Any business disruption due to natural disasters or catastrophic events in these areas could adversely impact our business and financial results if not adequately mitigated. We also rely on a certain supplier for the manufacturing of one of our core branded products. Although we have secured back-up suppliers in the case of emergency, any damage or disruption to this supplier’s manufacturing or distribution capabilities could impair our ability to sell this product. Also, we increasingly rely on information technology systems to conduct our business. These systems can enhance efficiency and business processes but also present risks of unauthorized access to our networks or data centers. If unauthorized parties gain access to our systems, they could obtain and exploit confidential business, customer, or employee information and harm our competitive position. Further, these information systems may experience damage, failures, interruptions, errors, inefficiencies, attacks or suffer from fires or natural disasters, any of which could have an adverse effect on our business and financial results if not adequately mitigated by our security measures and disaster recovery plans.

 

Improper use or misuse of social media may have an adverse effect on our business and financial results.

 

Consumers are moving away from traditional means of electronic mail towards new forms of electronic communication, including social media. We support new ways of sharing data and communicating with customers using methods such as social networking. However, misuse of social networking by individuals, customers, competitors, or employees may result in unfavorable media attention which could negatively affect our business. Further, our competitors are increasingly using social media networks to market and advertise products. If we are unable to compete in this environment it could adversely affect our financial results.

 

  8  
 

 

Demand for our products may be adversely affected by changes in consumer preferences and tastes or if we are unable to innovate or market our products effectively.

 

We are a consumer products company operating in highly competitive markets and rely on continued demand for our products. To generate revenues and profits, we must sell products that appeal to our customers and consumers. Any significant changes in consumer preferences or any inability on our part to anticipate or react to such changes could result in reduced demand for our products and erosion of our competitive and financial position. Our success depends on the ability to respond to consumer trends, including concerns of consumers regarding health and wellness, obesity, product attributes and ingredients. In addition, changes in product category consumption or consumer demographics could result in reduced demand for our products. Consumer preferences may shift due to a variety of factors, including the aging of the general population, changes in social trends, changes in travel, vacation or leisure activity patterns, or negative publicity resulting from regulatory action or litigation against companies in the snack food industry. Any of these changes may reduce consumers’ willingness to purchase our products and negatively impact our financial results.

 

Our continued success also is dependent on product innovation, including maintaining a robust pipeline of new products, and the effectiveness of advertising campaigns, marketing programs and product packaging. Although we devote significant resources to meet this goal, there can be no assurance as to the continued ability to develop and launch successful new products or variants of existing products, or to effectively execute advertising campaigns and marketing programs. In addition, both the launch and ongoing success of new products and advertising campaigns are inherently uncertain, especially as to their appeal to consumers. Further, failure to successfully launch new products could decrease demand for existing products by negatively affecting consumer perception of existing brands, as well as result in inventory write-offs, trademark impairments and other costs, all of which could negatively impact our financial results.

 

Our distribution network relies on relationships with our distributors, and such reliance could affect our ability to efficiently and profitably distribute and market products, maintain existing markets and expand business into other geographic markets.

 

Our business relies upon a significant number of distribution relationships for the sale and distribution of our products. There can be no assurance that we will be able to mitigate the risks related to all or any of these factors in any of the current or prospective geographic areas of distribution. To the extent that any of these factors have an adverse effect on the relationships with consultants, companies or retailers in a particular geographic area and, thus, limit our ability to maintain and expand the sales market, revenues and financial results may be adversely impacted.

 

There also is no assurance that we will be able to maintain distribution relationships or establish and maintain successful relationships in new geographic distribution areas. There is the possibility that we will have to incur significant expenses to attract and maintain relationships in one or more geographic distribution areas in order to profitably expand geographic markets. The occurrence of any of these factors could result in a significant decrease in sales volume of our branded products and the products which we distribute for others and harm our business and financial results.

 

Continued success depends on the protection of our trademarks and other proprietary intellectual property rights.

 

We will maintain trademarks and other intellectual property rights, which are important to our success and competitive position, and the loss of or our inability to enforce trademark and other proprietary intellectual property rights could harm our business. We will devote substantial resources to the establishment and protection of our trademarks and other proprietary intellectual property rights on a worldwide basis. Efforts to establish and protect trademarks and other proprietary intellectual property rights may not be adequate to prevent imitation of products by others or to prevent others from seeking to block sales of our products. In addition, the laws and enforcement mechanisms of some foreign countries may not allow for the protection of proprietary rights to the same extent as in the United States and other countries.

 

New regulations or legislation could adversely affect our business and financial results.

 

Food and beverage production and marketing are highly regulated by a variety of federal, state and other governmental agencies. New or increased government regulation of the food and beverage industry, including but not limited to areas related to product safety, chemical composition, production processes, traceability, product quality, packaging, labeling, school lunch guidelines, promotions, marketing and advertising (particularly such communications that are directed toward children), product recalls, records, storage and distribution could adversely impact our results of operations by increasing production costs or restricting our methods of operation and distribution. These regulations may address food industry or society factors, such as obesity, nutritional and environmental concerns and diet trends.

 

  9  
 

 

A significant portion of our outstanding shares of common stock is controlled by a few individuals, and their interests may conflict with those of other stockholders.

 

The founder of the Company, Katherine T. West beneficially owns a majority of the outstanding common stock of the Company. Mrs. West currently serves as the Chairman of the Board. As a result, she may be able to exercise significant influence over the Company and certain matters requiring approval of its stockholders, including the approval of significant corporate transactions, such as a merger or other sale of the Company or its assets. This could limit the ability of other stockholders of the Company to influence corporate matters and may have the effect of delaying or preventing a third party from acquiring control of the Company. In addition, Mrs. West may have actual or potential interests that diverge from the interests of the other stockholders of the Company. Sales by Mrs. West, or other majority shareholders, of their shares into the public market, or the perception that such sales could occur, could cause the market price of our common stock to decline.

 

We may be unable to comply with our reporting and other requirements under federal securities laws.

 

As a publicly traded company, we are subject to the reporting requirements of the Securities Exchange Act of 1934, as amended, or the “Exchange Act” and the Sarbanes-Oxley Act of 2002, or the “Sarbanes-Oxley Act”. In addition, the Exchange Act requires that we file annual, quarterly and current reports. Our failure to prepare and disclose this information in a timely manner could subject us to penalties under federal securities laws, expose us to lawsuits and restrict our ability to access financing. The Sarbanes-Oxley Act requires that we, among other things, establish and maintain effective internal controls and procedures for financial reporting. From time to time we evaluate our existing internal controls in light of the standards adopted by the Public Company Accounting Oversight Board. It is possible that we or our independent registered public accounting firm may identify significant deficiencies or material weaknesses in our internal control over financial reporting in the future. Any failure or difficulties in implementing and maintaining these controls could cause us to fail to meet the periodic reporting obligations or result in material misstatements in our financial statements.

 

Section 404 of the Sarbanes-Oxley Act requires annual management assessments of the effectiveness of our internal control over financial reporting. Our failure to satisfy the requirements of Section 404 on a timely basis could result in the loss of investor confidence in the reliability of our financial statements, which in turn could have a material adverse effect on our business and our common stock.

 

We are, and in the future may be, subject to legal or administrative actions that could adversely affect our results of operations and our business.

 

We could incur substantial legal fees and other expenses in connection with legal or administrative matters, which could adversely affect our results of operations. These matters also may distract the time and attention of our officers and directors or divert our other resources away from our ongoing commercial and development programs. An unfavorable outcome in any of these matters could damage our business and reputation or result in additional claims or proceedings against us.

 

We have virtually no financial resources. Our independent registered auditors’ report includes an explanatory paragraph stating that there is substantial doubt about our ability to continue as a going concern.

 

We have decided to change our business strategy and as a result of that process which has not been completed yet, we have virtually no financial resources. Our independent registered auditors included an explanatory paragraph in their opinion on our financial statements as of and for the years ended June 30, 2016 and 2015 that states that Company losses from operations raise substantial doubt about its ability to continue as a going concern. We will seek additional financing in the future. Financing sought may be in the form of equity or debt financing from various sources as yet unidentified. Most, if not all of our efforts have been spent on our change of business strategy and developing our new healthy beverage business plan, however, we will seek necessary additional financing to pursue our business and growth plans. No assurances can be given that the Company will generate sufficient revenue or obtain the necessary financing to continue as a going concern.

 

Our internal controls may be inadequate, which could cause our financial reporting to be unreliable and lead to misinformation being disseminated to the public.

 

Our management is responsible for establishing and maintaining adequate internal control over our financial reporting. As defined in Exchange Act Rule 13a-15(f), internal control over financial reporting is a process designed by, or under the supervision of, the principal executive and principal financial officer and effected by the board of directors, management and other personnel, 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 and includes those policies and procedures that:

 

  pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Company;
     
  provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and/or directors of the Company; and
     
  provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.

 

  10  
 

   

Our internal controls may be inadequate or ineffective, which could cause our financial reporting to be unreliable and lead to misinformation being disseminated to the public. Investors relying upon this misinformation may make an uninformed investment decision.

 

The interests of shareholders may be hurt because we can issue shares of our common stock to individuals or entities that support existing management with such issuances serving to enhance existing management’s ability to maintain control of our company.

 

Our board of directors has authority, without action or vote of the shareholders, to issue all or part of the authorized but unissued common shares. Such issuances may be issued to parties or entities committed to supporting existing management and the interests of existing management which may not be the same as the interests of other shareholders. Our ability to issue shares without shareholder approval serves to enhance existing management’s ability to maintain control of our company.

 

Any market that develops in shares of our common stock will be subject to the penny stock regulations and restrictions pertaining to low priced stocks that will create a lack of liquidity and make trading difficult or impossible.

 

The trading of our securities is on the OTCBB as maintained by FINRA and the OTCQB as maintained by the OTC Markets. As a result, an investor may find it difficult to dispose of, or to obtain accurate quotations as to the price of our securities.

 

Rule 3a51-1 of the Exchange Act establishes the definition of a “penny stock,” for purposes relevant to us, as any equity security that has a minimum bid price of less than $5.00 per share or with an exercise price of less than $5.00 per share, subject to a limited number of exceptions which are not available to us. It is likely that our shares will be considered to be penny stocks for the immediate foreseeable future. This classification severely and adversely affects any market liquidity for our common stock.

 

For any transaction involving a penny stock, unless exempt, the penny stock rules require that a broker or dealer approve a person’s account for transactions in penny stocks and the broker or dealer receive from the investor a written agreement to the transaction setting forth the identity and quantity of the penny stock to be purchased. In order to approve a person’s account for transactions in penny stocks, the broker or dealer must obtain financial information and investment experience and objectives of the person and make a reasonable determination that the transactions in penny stocks are suitable for that person and that that person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks. The broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prepared by the SEC relating to the penny stock market, which, in highlight form, sets forth: the basis on which the broker or dealer made the suitability determination, and that the broker or dealer received a signed, written agreement from the investor prior to the transaction.

 

Disclosure also has to be made about the risks of investing in penny stock in both public offerings and in secondary trading and commissions’ payable to both the broker-dealer and the registered representative, current quotations for the securities and the rights and remedies available to an investor in cases of fraud in penny stock transactions. Additionally, monthly statements have to be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stocks.

 

Because of these regulations, broker-dealers may not wish to engage in the above-referenced necessary paperwork and disclosures and/or may encounter difficulties in their attempt to sell shares of our common stock, which may affect the ability of selling shareholders or other holders to sell their shares in any secondary market and have the effect of reducing the level of trading activity in any secondary market. These additional sales practice and disclosure requirements could impede the sale of our securities.

 

Because we are not subject to compliance with rules requiring the adoption of certain corporate governance measures, our stockholders have limited protection against interested director transactions, conflicts of interest and similar matters.

 

The Sarbanes-Oxley Act of 2002, as well as rule changes proposed and enacted by the SEC, the New York and American Stock Exchanges and the Nasdaq Stock Market, as a result of Sarbanes-Oxley, require the implementation of various measures relating to corporate governance. These measures are designed to enhance the integrity of corporate management and the securities markets and apply to securities that are listed on those exchanges or the Nasdaq Stock Market. Because we are not presently required to comply with many of the corporate governance provisions and because we chose to avoid incurring the substantial additional costs associated with such compliance any sooner than legally required, we have not yet adopted these measures.

 

  11  
 

 

Because none of our directors (currently two persons) are independent directors, we do not currently have an independent audit or a compensation committee. As a result, directors have the ability, among other things, to determine their own level of compensation. Until we comply with such corporate governance measures, regardless of whether such compliance is required, the absence of such standards of corporate governance may leave our stockholders without protections against interested director transactions, conflicts of interest, if any, and similar matters and investors may be reluctant to provide us with funds necessary to expand our operations.

 

We intend to comply with all corporate governance measures relating to director independence as and when required. However, we may find it very difficult or be unable to attract and retain qualified officers, directors and members of board committees required to provide for our effective management as a result of Sarbanes- Oxley Act of 2002. The enactment of the Sarbanes-Oxley Act of 2002 has resulted in a series of rules and regulations by the SEC that increase responsibilities and liabilities of directors and executive officers. The perceived increased personal risk associated with these recent changes may make it more costly or deter qualified individuals from accepting these roles.

 

Item 1B. UNRESOLVED STAFF COMMENTS

 

None.

 

ITEM 2. DESCRIPTION OF PROPERTIES

 

The Company gave up its leased office space in Florida in January 2014 and acquired a new office in California. The Florida leaseholder obtained a judgment in the amount of $181,968 for the remainder of the monthly lease payments through June 2016 pursuant to the terms of the lease agreement plus legal fees of $1,487. The Company has recorded the full amount of the judgment, however, it believes that when the facility is re-leased it may not have to pay the full amount. Upon the leaseholder’s execution of a new lease with a new tenant, the Company plans to file for the release of the amount of the judgment over and above the actual loss incurred by the leaseholder. There is no guarantee the property will be re-leased or that such a filing will be successful and that the Company will be able to mitigate its loss in this way.

 

In January 2014, the Company entered into the California lease at the rate of $1,439 per month but vacated this property in December 2014. There is no outstanding liability in respect of this lease.

 

In January 2015, the Company equipped itself to operate through cloud-based technologies. Our existing arrangement consists of mailing address services on a no contract, month-to-month basis and a la carte access to hosting facilities, virtual pbx telephone, conference space, cloud-based file sharing and file storage which is highly cost effective. Our current corporate address, 5042 Wilshire Blvd, # 34708, Los Angles, California, 90036 is a mailing address at an office center provided by a director at a cost of $150 per month and is adequate to meet our current requirements. The Company will seek suitable office space when needed.

 

The Company has not invested in any real property at this time, nor does the Company intend to do so. The Company has no formal policy with respect to investments in real estate or investments with persons primarily engaged in real estate activities.

 

ITEM 3. LEGAL PROCEEDINGS

 

In June 2013, a former officer of the Company filed a lawsuit against the Company and its President and directors alleging several counts, including a breach of contract and fiduciary duty, and seeking damages in the amount of $122,300 and other unspecified damages. On March 20, 2015 the court entered a final judgment in the amount of $200,761 comprised of the principal amount of $122,344 plus prejudgment interest from September 15, 2012 through the date of judgment in the amount of $54,421, costs in the amount of $773, and attorney’s fees of $23,222. A full provision for this liability has been recorded in our financial statements during the year ended June 30, 2015. The court dismissed the case against any party not listed in the final order and the case is now closed as to all parties (see Note 6 Commitments and Contingencies to the financial statements).

 

On July 24, 2014, A&M Acquisitions LLC, obtained a judgment against the Company, a director and former director for default of the remainder of the Florida office lease through July 2016 in the amount of $181,968 including attorney’s fees of $1,488 (see Note 6 Commitments and Contingencies to the financial statements). A full provision for this liability was recorded in our financial statements during the year ended June 30, 2014.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable to the Company.

 

  12  
 

 

PART II

 

ITEM 5. MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND SMALL BUSINESS ISSUER PURCHASES OF EQUITY SECURITIES PUBLIC MARKET

 

Our common stock trades on OTC Markets Pink Sheets (“OTC Pink”) under the symbol BEVS. Our common stock traded previously under the symbol SNAX which was its symbol since the reverse merger with Time Associates, Inc. on October 5, 2010. Our trading symbol was changed to BEVS in connection with our name change from SnackHealthy, Inc. to Amaize Beverage Corporation effective as of August 13, 2015. As of June 30, 2016 there were 229 holders of our common stock and the closing price of our common stock was $0.42 per share.

 

The Company did not effect any stock splits in fiscal years ended June 30, 2015 and June 30, 2016.  

 

    SHARE BID PRICE  
Fiscal 2015   High     Low  
Fourth quarter (06/30/15)   $ 1.75     $ 0.52  
Third quarter (03/31/15)   $ 1.99     $ 0.50  
Second quarter (12/31/14)   $ 2.85     $ 0.55  
First quarter (09/30/14)   $ 4.25     $ 1.86  

 

Fiscal 2016   High     Low  
Fourth quarter (06/30/16)   $ 0.53     $ 0.10  
Third quarter (03/31/16)   $ 0.75     $ 0.20  
Second quarter (12/31/15)   $ 0.79     $ 0.34  
First quarter (09/30/15)   $ 1.00     $ 0.40  

 

DIVIDENDS

 

The Company does not expect to pay any dividends at this time. The payment of dividends, if any, will be contingent upon the Company’s revenues and earnings, if any, capital requirements, and general financial condition. The payment of any dividends will be within the discretion of the Company’s Board of Directors and may be subject to restrictions under the terms of any debt or other financing arrangements that the Company may enter into in the future. The Company presently intends to retain all earnings, if any, for use in the Company’s business operations and accordingly, the Board does not anticipate declaring any dividends in the foreseeable future.

 

RECENT SALES OF UNREGISTERED SECURITIES

 

During the quarter ended June 30, 2016 there were no unregistered sales of equity securities of the Company. Information regarding all equity sales of unregistered securities during the other periods covered by this report have been previously included in the Company’s reports on Form 10-Q.

 

STOCK REPURCHASES

 

The Company did not make any stock repurchases.

 

ITEM 6. SELECTED FINANCIAL DATA

 

As a “smaller reporting company”, we are not required to provide the information required by this item.

 

  13  
 

 

ITEM 7 - MANAGEMENT’S DISCUSSION OF FINANCIAL CONDITION AND RESULTS OF OPERATION

 

Forward-Looking Statements

 

This document contains “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. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words “may,” “will,” “estimate,” “intend,” “continue,” “believe,” “expect” or “anticipate” and any other similar words. Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and to inherent risks and uncertainties, such as those disclosed or incorporated by reference in our filings with the Securities and Exchange Commission. Important factors that could cause our actual results, performance and achievements, or industry results to differ materially from estimates or projections contained in our forward- looking statements include, among others, the following:

 

  product liability claims;
     
  our relationship with, and our ability to influence the actions of, our distributors;
     
  adverse publicity associated with our industry, products or ingredients;
     
  improper action by our employees in violation of applicable law;
     
  changing consumer preferences and demands;
     
  loss or departure of any member of our senior management team which could negatively impact our distributor and/or buyer relations and operating results;
     
  the competitive nature of our business;
     
  regulatory matters governing our products, including potential governmental or regulatory actions concerning the safety or efficacy of our products or ingredients;
     
  risks associated with operating internationally and the effect of economic factors, including foreign exchange, inflation, pricing and currency devaluation risks;
     
  our dependence on increased penetration of existing markets;
     
  contractual limitations on our ability to expand our business;
     
  our reliance on our information technology infrastructure and outside manufacturers;
     
  the sufficiency of trademarks and other intellectual property rights;
     
  product concentration;
     
  our reliance on our management team;
     
  uncertainties relating to the application of transfer pricing, duties, value added taxes, and other tax regulations, and changes thereto;
     
  changes in tax laws, treaties or regulations, or their interpretation;
     
  any collateral impact resulting from the ongoing worldwide financial “crisis,” including the availability of liquidity to us, our customers and our suppliers or the willingness of our customers to purchase products in a recessionary economic environment; and;
     
  whether we will purchase any of our shares in the open markets or otherwise.

 

  14  
 

 

Additional factors that could cause actual results to differ materially from our forward-looking statements are set forth in this Annual Report on Form 10-K, including under the heading “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in our Consolidated Financial Statements and the related Notes.

 

Forward-looking statements in this Annual Report on Form 10-K speak only as of the date hereof, and forward- looking statements in documents attached that are incorporated by reference speak only as of the date of those documents. We do not undertake any obligation to update or release any revisions to any forward-looking statement or to report any events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, except as required by law.

 

OVERVIEW

 

As a development stage food and beverage company we have been primarily engaged in developing our infrastructure and product portfolio. We determined during the first quarter of 2015 that we would transition out of our lower margin, perishable snack food product lines and have focused our resources solely on developing our new healthy beverages. Amaize Beverage Corporation will continue to focus on developing its healthy beverage product line with a plan to sell to large retailers and club stores in the United States. The Company recently completed development of a unique “better for you” beverage with purple corn as its primary ingredient. The launch of these beverages is subject to the Company’s ability to obtain the necessary funding.

 

Significant Accounting Policies

 

For the Company’s significant accounting policies see “Footnote 2” to the accompanying June 30, 2016 audited financial statements.

 

  15  
 

 

Presentation

 

“Net sales,” reflect distribution allowances, handling and shipping income, represent what we collect and recognize as net revenues in our financial statements.

 

Our “gross profit” consists of net sales less “cost of sales,” which represents the prices we pay to our raw material suppliers and manufacturers of our products as well as costs related to product shipments to our warehouse and distribution center, duties and tariffs, expenses relating to shipment of products to customers and importers and similar expenses.

 

“Selling fees” consist of commissions, overrides and production bonuses.

 

Our “operating margins” consist of net sales, less cost of sales and selling fees.

 

“General and administrative expenses” represent our operating expenses, components of which include labor and benefits, sales and marketing events, professional fees, travel and entertainment, marketing, occupancy costs, communication costs, bank fees, depreciation and amortization and other miscellaneous operating expenses.

 

RESULTS OF OPERATIONS

 

Our results of operations for the periods below are not necessarily indicative of results of operations for future periods, which depend on numerous factors, including our ability to distribute our products through major retailers, open new markets, penetrate existing markets, and our ability to secure, develop and introduce new products.

 

For the Year Ended June 30, 2016 Compared to the Year Ended June 30, 2015

 

Revenue

 

The Company revised its sales method from a network marketing model using individual brand partners as distributors, to direct to consumer and retail store sales at the end of its fiscal year June 30, 2013. During this transition period the Company recognized no revenues in the years ended June 30, 2016 or 2015.

 

Cost of Revenues

 

The Company recognized no cost of sales in the years ended June 30, 2016 or 2015 as it recognized no sales during these periods.

 

Gross Profit

 

The Company recognized no gross profit in the years ended June 30, 2016 and 2015 due to the factors described above.

 

Selling Expenses

 

The Company incurred no selling expenses in the years ended June 30, 2016 and 2015.

 

General and Administrative Expenses

 

General and administrative expenses comprised the following for the year ended June 30, 2016 and 2015.

 

    GENERAL AND ADMINISTRATIVE  
    June 30, 2016     June 30, 2015  
Independent contractors   $ 1,454,983     $ 1,453,250  
Directors’ fees     4,500       90,000  
Professional fees     50,552       72,619  
Technology     71,243       11,697  
Product development     50,000       -  
Travel and entertainment     3,794       33,522  
Office expenses     2,365       18,640  
Telephone     876       4,283  
Rent     -       17,722  
Amortization     -       1,250  
Depreciation     2,848       2,848  
Other     -       (186 )
    $ 1,641,161     $ 1,705,645  

 

  16  
 

 

General and administrative expenses consist primarily of professional advisor fees, audit fees, technology and product development. Our general and administrative expenses for the year ended June 30, 2016 were $64,484 less than for the year ended June 30, 2015. The decrease was primarily due to the reduction in directors’ fees, professional fees, travel and entertainment, office expenses and rent, offset by increases in technology and product development.

 

Settlement of Liabilities with Equity

 

During the year ended June 30, 2015 the Company issued 3,178,650 shares of common stock valued at $1,589,325 in settlement of loans payable to a related party of $127,146 resulting in a non-cash loss on settlement of liabilities of $1,462,179.

 

During the year ended June 30, 2016 the Company issued 25,000 shares of common stock valued at $25,000 in settlement of loans payable to a related party of $8,575 resulting in a non-cash loss on settlement of liabilities $16,125. During the year ended June 30, 2016 the Company issued 476,461 restricted shares of common stock in payment of directors’ fees in the amount of $162,000.

 

Provision for Income Taxes

 

We incurred taxable losses; consequently, no liability for taxation was incurred during the years ended June 30, 2016 or 2015.

 

Net Loss

 

The net loss for the year ended June 30, 2016 was $1,657,286 as compared to $3,368,585 for the year ended June 30, 2015.

The variances between the periods primarily arose due to the non-cash loss on settlement of liabilities described above.

 

Liquidity and Capital Resources

 

The Company had a cash balance of $0 at June 30, 2016 and a working capital deficit as follows:

 

Total current assets   $ -  
Total current liabilities     (620,218 )
Working capital deficit   $ (620,218 )

 

The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and to successfully implement its business plan. Management believes that the actions presently being taken and the success of future operations may be sufficient to enable the Company to continue as a going concern, however, there can be no assurance that the raising of equity will be successful. Failure to achieve the needed equity funding could have a material adverse effect on the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Cash Flows

 

The following table summarizes selected items from our Condensed Consolidated Statements of Cash Flows for the years ended June 30, 2016 and June 30, 2015.

 

  June 30, 2016     June 30, 2015  
Net cash provided by (used in):                
Operating activities   $ (29,002 )   $ (65,350 )
Investment activities     -       -  
Financing activities     27,001       65,536  
Total decrease in cash   $ (2,001 )   $ 186.00  

 

During the years ended June 30, 2016 and 2015, the Company’s operating expenses in the amounts of $27,001 and $65,536were paid on its behalf by a shareholder. Accordingly, there was no movement in the Company’s own bank account during the year ended June 30, 2014 and only a nominal movement of $2,001 in the Company’s merchant account used to pay expenses.

 

Off Balance Sheet Arrangements

 

At June 30, 2016 the Company had no material off balance sheet arrangements as defined in Item 303(a)(4)(ii) of Regulation S-K.

 

ITEM 7A: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

As a Smaller Reporting Company, as defined by Rule 12b-2 of the Exchange Act and in Item 10 (f) (1) of Regulation S-K, we are electing scaled disclosure reporting obligations and therefore are not required to provide the information requested by this item.

 

  17  
 

 

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 

INDEX TO AUDITED FINANCIAL STATEMENTS

Amaize Beverage Corporation

 

Report of Independent Registered Public Accounting Firm F-1
   
Balance Sheets as of June 30, 2016 and 2015 F-3
   
Statements of Operations for the years ended June 30, 2016 and 2015 F-4
   
Statements of Changes in Stockholders’ Deficit for the years ended June 30, 2016 and 2015 F-5
   
Statements of Cash Flows for the years ended June 30, 2016 and 2015 F-6
   
Notes to Audited Financial Statements for the years ended June 30, 2016 and 2015 F-7

 

  18  
 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

Board of Directors

Amaize Beverage Corp.

(formerly SnackHealthy, Inc.)

Los Angeles, California

 

We have audited the accompanying consolidated balance sheets of Amaize Beverage Corp. (formerly Snackhealthy Inc) as of June 30, 2015 and the related consolidated statements of operations, changes in stockholders’ deficit and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

 

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

 

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Amaize Beverage Corp. (formerly SnackHealthy, Inc.) of June 30, 2015, and the consolidated results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

 

The accompanying consolidated 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 suffered recurring losses from operations and has a working capital deficit that raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

 
CUTLER & CO., LLC  
   
Wheat Ridge, formerly Arvada, Colorado  
November 5, 2015  

 

 

9605 West 49 th Ave. Suite 200 Wheat Ridge, Colorado 80033 ~ Phone 303-968-3281 ~ Fax 303-456-7488 ~
www.cutlercpas.com

 

F- 1
   

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

Board of Directors

Amaize Beverage Corporation

Los Angeles, California

 

We have audited the accompanying balance sheet of Amaize Beverage Corporation as of June 30, 2016 and the related statements of operations, changes in stockholders’ equity and cash flows for the year then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

 

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Amaize Beverage Corporation as of June 30, 2016 and the results of its operations and its cash flows for the year then ended 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 suffered losses and has not yet established a reliable, consistent and proven source of revenue to meet its operating costs on an ongoing basis and currently does not have sufficient available funding to fully implement its business plan. These factors raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

/s/ Pritchett, Siler and Hardy, P.C.  
   
Pritchett, Siler and Hardy, P.C.  
Farmington Utah  
October 26, 2016  

 

F- 2
   

 

Amaize Beverage Corporation

Balance Sheets

 

    June 30, 2016     June 30, 2015  
ASSETS                
Current Assets                
Cash   $ -     $ 2,001  
Total Current Assets     -       2,001  
                 
Property and Equipment                
Office equipment (net of accumulated depreciation)     5,113       7,961  
Total Fixed Assets     5,113       7,961  
                 
Total Assets   $ 5,113     $ 9,962  
                 
LIABILITIES AND STOCKHOLDERS’ DEFICIT                
Current Liabilities                
Accounts payable   $ 160,824     $ 123,496  
Accounts payable related party     16,500       8,875  
Accrued liabilities     6,545       6,545  
Directors’ fees     -       157,500  
Liability for lawsuit judgement     200,761       200,761  
Liability for lease judgement     181,968       181,968  
Payroll taxes     3,592       3,592  
Shareholder loans     50,028       23,027  
Total Current Liabilities     620,218       705,764  
                 
Total Liabilities     620,218       705,764  
                 
Commitments and Contingencies                
                 
Stockholders’ Deficit                
Preferred stock $0.001 par value 25,000,000 authorized No shares issued     -       -  
Common stock $0.001 par value 200,000,000 authorized 15,558,030 and 11,261,030 issued and outstanding at June 30, 2016 and June 30, 2015 respectively     15,558       11,261  
Additional paid-in capital     52,478,532       50,744,846  
Deficit accumulated     (53,109,195 )     (51,451,909 )
                 
Total Stockholders’ Deficit     (615,105 )     (695,802 )
                 
Total Liabilities and Stockholders’ Deficit   $ 5,113     $ 9,962  

 

The accompanying notes are an integral part of these audited financial statements.

 

F- 3
   

 

Amaize Beverage Corporation

Statements of Operations

 

    For the Year Ended     For the Year Ended  
    June 30, 2016     June 30, 2015  
             
Revenues   $ -     $ -  
                 
Operating Expenses                
                 
General and administrative expenses     1,641,161       1,705,645  
Liability for law suit judgement     -       200,761  
Loss on settlement of liabilities with equity related party     16,125       1,462,179  
Total Operating Expenses     1,657,286       3,368,585  
                 
Operating Loss     (1,657,286 )     (3,368,585 )
                 
Provision for Income Taxes     -       -  
                 
Net Loss   $ (1,657,286 )   $ (3,368,585 )
                 
Net Loss Per Share - Basic and Diluted   $ (0.12 )   $ (0.44 )
                 
Weighted Average Number of Common Shares Outstanding - Basic and Diluted     13,928,984       7,632,134  

 

The accompanying notes are an integral part of these audited financial statements

 

F- 4
   

 

Amaize Beverage Corporation

Statements of Changes in Stockholders’ Deficit

 

    Common Shares     Additional              
          Par Value     Paid-In     Deficit     Stockholders’  
    Shares     $0.001     Capital     Accumulated     Deficit  
Balance June 30, 2014     5,467,380     $ 5,467     $ 47,712,065     $ (48,083,324 )   $ (365,792 )
Common shares issued for services     115,000       45       199,205               199,250  
Common shares issued for services related party     2,500,000       2,570       1,247,430               1,250,000  
Common shares issued for settlement of liabilities related party     3,178,650       3,179       1,586,146               1,589,325  
Net loss for the year                             (3,368,585 )     (3,368,585 )
Balance June 30, 2015     11,261,030       11,261       50,744,846       (51,451,909 )     (695,802 )
Common shares issued for services     112,500       112       112,388               112,500  
Common shares issued for services related party     3,683,039       3,683       1,434,800               1,438,483  
Common shares issued for Directors’ fees     476,461       477       161,523               162,000  
Common shares issued for settlement of liabilities related party     25,000       25       24,975               25,000  
Net loss for the period                             (1,657,286 )     (1,657,286 )
Balance June 30, 2016     15,558,030     $ 15,558     $ 52,478,532     $ (53,109,195 )   $ (615,105 )

 

The accompanying notes are an integral part of these audited financial statements.

 

F- 5
   

 

Amaize Beverage Corporation

Statements of Cash Flows

 

    For the Year Ended June 30, 2016     For the Year Ended June 30, 2015  
Cash Flows from Operating Activities                
Net loss   $ (1,657,286 )   $ (3,368,585 )
Adjustments to reconcile net loss to net cash used in operating activities:                
Depreciation     2,848       2,848  
Amortization of websites and drink license     -       1,250  
Shares issued for accounts payable related party     8,875       -  
Loss on settlement of liabilities with equity related party     16,125       1,462,179  
Shares issued for services     112,500       199,250  
Shares issued for directors’ fees     162,000       -  
Shares issued for services related party     1,438,483       1,250,000  
Changes in operating assets and liabilities                
Decrease in deposits and prepaids     -       1,777  
Decrease in accrued liabilities     -       6,545  
Decrease in liability for lawsuit judgement     -       200,761  
Decrease in accounts payable     37,328       79,750  
Decrease in directors’ fees     (157,500 )     90,000  
Decrease in accounts payable related party     7,625       8,875  
Net Cash Used in Operations     (29,002 )     (65,350 )
                 
Cash Flows from Investing Activities     -       -  
Net Cash Provided by (Used In) Financing Activities     -       -  
                 
Cash Flows from Financing Activities                
Shareholder loans advanced     27,001       65,536  
Net Cash Provided by Financing Activities     27,001       65,536  
                 
Net Decrease in Cash     (2,001 )     186  
                 
Cash - Beginning of Period     2,001       1,815  
                 
Cash - Ending of Period   $ -     $ 2,001  
                 
Supplemental Disclosure                
Income taxes paid   $ -     $ -  
Interest paid   $ -     $ -  
                 
Supplemental Disclosure of Non-Cash Investing and Financing Activities                
Shares issued for services   $ 112,500     $ 199,250  
Shares issued for services related party   $ 1,438,483     $ 1,250,000  
Settlement of Directors’ fees for shares   $ 162,000     $ -  
Settlement of accounts payable with equity related party   $ 8,875     $ 127,146  
Loss on settlement of liabilities with equity related party   $ 16,125     $ 1,462,179  

 

The accompanying notes are an integral part of these audited financial statements.

 

F- 6
   

 

Amaize Beverage Corporation

NOTES TO AUDITED FINANCIAL STATEMENTS

For the years ended June 30, 2016 and 2015

 

Note 1. The Company

 

On October 4, 2013, Healthient, Inc. (“the Company”) changed its name to SnackHealthy, Inc. and dissolved its sole wholly-owned subsidiary SnackHealthy, Inc., a Nevada corporation. As of June 26, 2015, a majority of the shareholders of the Company representing not less than 9,327,859 shares of common stock (82.83%) consented in writing to change the Company’s name to Amaize Beverage Corporation. Such approval and consent constitute the approval and consent of a majority of the total number of shares of outstanding common stock and are sufficient under the Nevada General Corporation Law and the Company’s Bylaws to approve the above action. On August 13, 2015, Amaize Beverage Corporation, previously known as SnackHealthy, Inc., a Nevada corporation filed an amendment to its articles of incorporation (the “Amendment”) with the Secretary of State of the state of Nevada. The Amendment provided for the change of the Company’s name from SnackHealthy, Inc., to Amaize Beverage Corporation. The name change and the change of the Company’s trading symbol were subsequently declared effective by the Financial Industry Regulatory Authority as of August 19, 2015.

 

The Company has developed a healthy beverage product line containing a unique strain of purple corn which is high in antioxidant value. The beverages are all natural, low calorie, gluten free, and non-GMO. The Company plans to distribute and sell the beverages through large retailers and club stores in the United States.

 

Note. 2 Significant Accounting Policies

 

Basis of Presentation

 

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. The Company’s year-end is June 30.

 

Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities on the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

 

Cash and Cash Equivalents

 

The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents.

 

Financial Instruments

 

The carrying value of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and amounts due to related parties, as reported in the accompanying balance sheets, approximates fair value due to the short term nature of these financial instruments.

 

Property and Equipment

 

Property and equipment are stated at cost and depreciated on the straight-line method over the estimated life of the asset, which is three to seven years.

 

Website Development Costs

 

The Company has adopted the provisions of FASB Accounting Standards Codification No. 350 Intangible-Goodwill and Other. Costs incurred in the planning state of websites are expensed, while costs incurred in the development stage are capitalized and amortized over the estimated three-year life of the asset. All website development costs have been fully amortized at June 30, 2016.

 

Other Assets

 

Our drink license was amortized over three years and is fully amortized at June 30, 2016.

 

F- 7
   

 

Long-Lived Assets

 

In accordance with ASC 350, the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both internally and externally, that may suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value.

 

Income Taxes

 

The Company accounts for income taxes under FASB Codification Topic 740-10-25 (“ASC 740-10-25”) Income Taxes. Under ASC 740-10-25, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under ASC 740-10-25, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

 

Revenue Recognition

 

Revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, products are shipped, which is when title and risk of loss pass to the customer and collectability of the amount is reasonably assured. Specifically, revenue is recognized when products are shipped, which is when title and risk of loss pass to the customer. The Company classifies selling discounts and rebates, if any, as a reduction of revenue.

 

Advertising Costs

 

The Company’s policy regarding advertising is to expense advertising when incurred. The Company incurred no advertising expenses during the years ended June 30, 2016 and 2015.

 

Stock-Based Compensation

 

In December 2004, the FASB issued FASB Accounting Standards Codification No. 718, Compensation – Stock Compensation . Under FASB Accounting Standards Codification No. 718, companies are required to measure the compensation costs of share-based compensation arrangements based on the grant-date fair value and recognize the costs in the financial statements over the period during which employees are required to provide services. Share-based compensation arrangements include stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. As such, compensation cost is measured on the date of grant at their fair value. Such compensation amounts, if any, are amortized over the respective vesting periods of the option grant. The Company applies this statement prospectively.

 

Equity instruments (“instruments”) issued to other than employees are recorded on the basis of the fair value of the instruments, as required by FASB Accounting Standards Codification No. 718. FASB Accounting Standards Codification No. 505, Equity Based Payments to Non-Employees defines the measurement date and recognition period for such instruments. In general, the measurement date is when either a (a) performance commitment, as defined, is reached or (b) the earlier of (i) the non-employee performance is complete or (ii) the instruments are vested. The measured value related to the instruments is recognized over a period based on the facts and circumstances of each particular grant as defined in the FASB Accounting Standards Codification.

 

Basic and Diluted Net Loss per Common Share

 

Net loss per common share is computed pursuant to FASB Accounting Standards Codification No. 260, Earnings per Share . Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed in the same way as for basic net loss.

 

Reclassifications

 

Certain amounts previously presented for prior year have been reclassified. The reclassifications had no effect on net loss, total assets, or stockholders’ deficit.

 

Recent Accounting Pronouncements

 

The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and does not believe the future adoption of any such pronouncements may be expected to cause a material impact on its financial condition or the results of its operations.

 

F- 8
   

 

Note 3. Going Concern

 

The financial statements have been prepared assuming that the Company will continue as a going concern which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company incurred a net loss of $1,657,286 for the year ended June 30, 2016 and accumulated losses of $553,109,195 since inception to June 30, 2016. Cash used in operations for the year ended June 30, 2016 approximated $29,000 and as of June 30, 2016, we had a working capital deficit of $620,218. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan.

 

Management believes that the actions presently being taken and the success of future operations will be sufficient to enable the Company to continue as a going concern, however, there can be no assurance that the raising of equity will be successful or that the Company will be able to achieve profitability. Failure to achieve the needed equity funding or establish profitable operations would have a material adverse effect on the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Note 4. Property and Equipment

 

The Company started the construction of several websites all of which have been completed and are being amortized over three years. Computers and furniture are being depreciated over three to seven years.

 

Property and equipment were as follows:

 

    June 30, 2016     June 30, 2015  
             
Office equipment   $ 22,165     $ 22,165  
Depreciation     17052       14,204  
Net book value   $ 5,113     $ 7,961  

 

Note 5. Commitments and Contingencies

 

Lease Commitments

 

The Company gave up its leased office space in Jupiter, Florida in January 2014, and acquired a new office in Newport Beach, California. The Florida leaseholder obtained a judgment in the amount of $181,968 for the remainder of the monthly lease payments through June 2016 pursuant to the terms of the lease agreement plus legal fees of $1,487. The Company has recorded the full amount of the judgment, however believes that when the facility is re-leased it may not have to pay the full amount. Upon the leaseholder’s execution of a new lease with a new tenant, the Company plans to file for the release of the amount of the judgment over and above the actual loss incurred by the leaseholder. There is no guarantee the property will be re-leased or that such a filing will be successful and that the Company will be able to mitigate its loss in this way.

 

In January 2014, the Company entered into a lease at the rate of $1,439 per month which ended December 2014. In January 2015, the Company was equipped to operate in a virtual environment. We believe that our existing arrangement which provides for virtual pbx telephone, à la carte conference space, address services, mail forwarding and hosting facilities to be highly cost effective and adequate to meet our current needs. The Company plans to seek suitable additional space when needed.

 

The Company has not invested in any real property at this time, nor does the Company intend to do so. The Company has no formal policy with respect to investments in real estate or investments with persons primarily engaged in real estate activities.

 

Legal

 

In June of 2013, a former officer of the Company filed a lawsuit against the Company and its President and directors alleging several counts, including a breach of contract and fiduciary duty, and seeking damages in the amount of $122,300 and other unspecified damages. On March 20, 2015 the court entered a final judgment in the amount of $200,761 comprised of the principal amount of $122,344 plus prejudgment interest from September 15, 2012 through the date of judgment in the amount of $54,421, costs in the amount of $773, and attorney’s fees of $23,222. The court dismissed the case against any party not listed in the final order and the case is now closed as to all parties. As of March 31, 2015 the Company had accrued in full for this liability of $200,761 in its financial statements.

 

F- 9
   

 

Note 6. Stockholders’ Deficit

 

The Company has authorized 200,000,000 shares of common stock with a par value of $0.001 and 25,000,000 shares of preferred stock with a par value of $0.001.

 

During the year ended June 30, 2015, the Company issued 115,000 shares of common stock for services valued at $199,250 and 2,500,000 shares of common stock for services to a related party valued at $1,250,000. Shareholder loans from a related party in the amount of $127,146 were settled by the issuance of 3,178,650 shares of common stock resulting in a non-cash loss on settlement of liabilities of $1,462,179.

 

During the year ended June 30, 2016 the Company issued 3,683,039 shares of common stock valued at $1,438,483 for services rendered by related parties, 112,500 shares of common for services valued at $112,500, 476,461 shares of common stock in payment of Directors’ fees valued at $162,000 and 25,000 shares of common stock in payment of an account payable to a related party valued at $25,000 resulting in a non-cash loss on settlement of liabilities of $16,125.

 

Non-Employee Stock Options and Warrants

 

The Company accounts for non-employee stock options and warrants under ASC 718, whereby option and warrant costs are recorded based on the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. Unless otherwise provided for, the Company covers option and warrant exercises by issuing new shares.

 

There were no warrants or stock options issued or outstanding during the years ended June 30, 2016 or 2015. All warrants issued in prior periods expired without being exercised.

 

Note 8. Loans from Directors and Shareholders

 

During the year ended June 30, 2015, the Company issued 3,178,650 shares of common stock valued at $1,589,325 to a related party in settlement of shareholder loans of $127,146 resulting in a non-cash loss of $1,462,179 on settlement of liabilities with equity.

 

During the year ended June 30, 2016 a related party advanced the Company loans in the amount of $20,506. As of June 30, 2016 the balance of loans outstanding was $50,028. The loans are non-interest bearing and due on demand.

 

Share valuations are determined by the closing quoted share price of the stock on the date the issuance is authorized by the Board of Directors.

 

Note 9. Income Taxes

 

The components of the deferred tax asset are as follows:

 

Deferred tax assets                
Net operating loss carry-forwards and other nominal temporary differences   $ 10,195,000     $ 9,860,000  
Valuation allowance     (10,195,000 )     (9,860,000 )
                 
Net deferred tax assets   $ -     $ -  

 

The Company had available approximately $50,975,000 at June 30, 2016 and $49,300,000 at June 30, 2015 of unused federal and Florida net operating loss carry-forwards that may be applied against future taxable income. These net operating loss carry-forwards expire through 2033. There is no assurance that the Company will realize the benefit of the net operating loss carry-forwards. ASC No. 740 requires a valuation allowance to be recorded when it is more likely than not that some or all of the deferred tax assets will not be realized.

 

Reconciliation of the differences between the statutory tax rate and the effective income tax rate is as follows at June 30, 2016 and June 30, 2015 respectively:

 

Statutory rate     15 %
State taxes, net of federal tax benefit     5 %
Effective tax rate     20 %

 

Note 10. Subsequent Events

 

On July 21, 2016 the Company’s Board of Directors authorized the issuance of 150,000 shares of common stock valued at $37,500 for services rendered by Company’s Chief Financial Officer.

 

The Company has evaluated subsequent events from June 30, 2016 through the date the financial statements were available to be issued and has determined that, other than as disclosed above, there have been no subsequent events after June 30, 2016 for which disclosure is required.

 

F- 10
   

 

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

 

ITEM 9A. CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

A system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-l5(e)) under the Securities Exchange Act of 1934,as amended [the “Exchange Act”]) are controls and other procedures that are designed to provide reasonable assurance that the information that the Company is required to disclose in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of the controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives, and management necessarily is required to use its judgment in evaluating the cost-benefit relationship of possible controls and procedures. In addition, the design of any system of controls is based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Moreover, over time, controls may become inadequate because of changes in conditions, or the degree of compliance with policies or procedures may deteriorate. Because of the inherent limitations in a control system, misstatements due to error or fraud may occur and not be detected. The Company’s Chief Executive Officer and Chief Financial Officer are responsible for establishing and maintaining disclosure controls and procedures for the Company, and have concluded that our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) were not effective as of the end of the period covered by this report, based on their evaluation of these controls and procedures required by paragraph (b) of Rules 13a-15(f) and 15d-15 (f), due to certain material weaknesses in our internal control over financial reporting as discussed below.

 

Internal Control over Financial Reporting

 

The Company’s management is responsible for establishing and maintaining adequate internal controls over financial reporting for the Company. Due to limited resources, Management conducted an evaluation of internal controls based on criteria established in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). The results of this evaluation determined that our internal control over financial reporting was ineffective as of June 30, 2016, due to material weaknesses. A material weakness in internal control over financial reporting is defined as a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness, yet important enough to merit attention by those responsible for oversight of our financial reporting.

 

Management’s assessment identified the following material weaknesses in internal control over financial reporting:

 

  The small size of our Company limits our ability to achieve the desired level of separation of internal controls and financial reporting. We currently do not have independent directors on our Board of Directors to review and oversee the financial policies and procedures of the Company.
     
  We do not have a functional audit committee since our Board of Directors acts as the audit committee.
     
  We have not achieved the desired level of documentation of our internal controls and procedures. When the Company obtains sufficient funding, this documentation will be strengthened through utilizing a third party consulting firm to assist management with its internal control documentation and further help to limit the possibility of any lapse in controls occurring.

 

  19  
 

 

As a result of the material weaknesses in internal control over financial reporting described above, the Company’s management has concluded that, as of June 30, 2016, the Company’s internal control over financial reporting was not effective based on the criteria in Internal Control - Integrated Framework issued by the COSO. To date, the Company has not been able to establish an Audit Committee with an independent director due its limited financial resources. When the Company obtains sufficient funding, Management intends to add establish its Audit Committee and charge them with assisting the Company in addressing the material weaknesses noted above. The Company’s lack of current financial resources makes it impossible for the Company to hire the appropriate personnel needed to overcome these weaknesses and ensure that appropriate controls and separation of responsibilities of a larger organization exist. We also will continue to follow the standards for the Public Company Accounting Oversight Board (United States) for internal control over financial reporting to include procedures that:

 

  Pertain to the maintenance of records in reasonable detail accurately that fairly reflect the transactions and dispositions of the Company’s assets;
     
  Provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and the Board of Directors; and
     
  Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

 

Changes in Internal Control over Financial Reporting

 

Our management determined that there were no changes made in our internal controls over financial reporting during the fiscal year 2016 that have materially affected or are reasonably likely to materially affect our internal control over financial reporting. This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the Company to provide only management’s report in this annual report.

 

ITEM 9B. OTHER INFORMATION

 

None

 

PART III

 

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 

The present directors and executive officers of the Company, their ages, positions held in the Company and duration of service are as follows:

 

Name   Age   Position   Since
Richard Damion   73   Chief Executive Officer and Director   02/15/2015
Richard Damion   73   President and Director   01/28/2014 – 02/15/2015
Katherine West   46   Chief Executive Officer and Director   10/05/2010 – 01/28/2014
Katherine West   46   Chairman of the Board and Director   01/28/2014
William Lindberg   84   Chief Financial Officer   10/05/2010
A.R. Grandsaert   73   President   02/15/2015

 

The term of office of each director and executive officer ends at, or immediately after, the next annual meeting of shareholders of the Company unless otherwise indicated. Except as otherwise indicated, no organization by which any director of officer has been previously employed is an affiliate, parent, or subsidiary of the Company.

 

  20  
 

 

Executive Officers and Directors - Business Experience

 

The following is a brief account of the business experience during at least the past five years of each director and executive officer, including the principal occupation and employment during that period, and the name and principal business of the organization in which such occupation and employment were carried out.

 

Richard Damion – Director, Chief Executive Officer of Amaize Beverage Corporation and Former President of the Company

 

Mr. Damion has served as Chief Executive Officer of the Company since February, 2015 and in the role of President from January 2014 through February 2015. He is a seasoned business executive with over 30 years of public company experience in the food and beverage industry. He has founded several successful companies and has been involved in all aspects of the industry, including new product and label development, manufacturing, distribution, and marketing. Mr. Damion has more than 35 years of experience in manufacturing, sales and distribution of food and beverage products. From November of 2009 to November of 2013, he was a director of Newport Digital Technologies in Newport Beach, California; from 2008 to July 2009, he acted as the Chairman and Chief Executive Officer of said company. From 1995 until 2008, he served as the Chairman and Chief Executive Officer of International Food Products Group, Inc. in Newport Beach, California. As the founder and Chief Executive Officer of International Food & Beverage, Mr. Damion is recognized for being one of first to bring frozen pizza to the mass market. The “Mamma Mia” brand of frozen pizza became one of the largest institutional pizza makers in the country and was later sold to Sysco, an American multinational corporation. He founded Margaritas-To-Go, a company that created the first RTD (ready-to-drink) margarita, the brainchild of Mr. Damion. Margaritas-to-Go became one of the fastest growing brands by partnering with leading Tequila brands Sauza and Jose Cuervo. His previous experience also includes serving as the Chief Executive Officer of Pacific Snax, Inc., the creator of the well-known “Kettle Classics” brand of potato chips, “Pacific Lites” and several other innovative snack food brands.

 

Katherine West – Director, Chairman of the Board of Amaize Beverage Corporation Former President and Chief Executive Officer of the Company

 

Ms. West served as Chief Executive Officer of the Company from October 5, 2010 through January 28, 2014 at which time she was responsible for the oversight of the management team and entire day-to-day operations of Healthient, Inc. and its subsidiary, SnackHealthy, Inc. Beginning in January of 2014, Ms. West began serving in the capacity as the Chairman of the Board of Directors of SnackHealthy, Inc., now Amaize Beverage Corporation. She has extensive knowledge in direct sales, executive management and public company experience having served for Travelstar on the Board of Directors and having held the titles of Executive Vice President and Chief Financial Officer.

 

From 1998 to 2002, Ms. West served as the Chief Operating Officer of WMA & Associates the company that provided early stage financing and led the public offerings of Baby Genius and FreeRealTime.com. From 2002 to 2008, at Travelstar, Inc., Ms. West was a founder of the company and held various roles including Executive Vice President, Chief Financial Officer and also served on the Board of Directors. The company went public in 2004. As Executive Vice President she managed the day-to-day operations including 36 employees and over 500 travel agents. Under her leadership the company grew from a start-up to $80,000,000 in annual sales in just 4 years. Ms. West lives in Jupiter, Florida with her husband and their four children. Outside of her work at Amaize Beverage Corporation, Kathy enjoys taking care of her family, running and playing tennis.

 

William Lindberg - Chief Financial Officer

 

Mr. Lindberg is responsible for the Company’s finance functions, including tax, financial planning, treasury, accounting, procurement, and internal audit, and investor relations audit. His prior experience includes serving in executive financial positions at both public and private companies. Early in his career, Mr. Lindberg was a Certified Public Accountant at Arthur Andersen & Co. for approximately 20 years assigned to its offices in Montevideo, Buenos Aires, and Santiago.

 

A.R. Grandsaert – President

 

A.R. “Bud” Grandsaert was appointed President of Amaize Beverage Corporation in February, 2015 and brings to the Company over thirty years of executive sales and distribution management experience in the packaged goods industry. He has an extensive track record in the development of brands and in building beverage brand sales and distribution systems from the ground up. Early in his career, Bud was on the development team of Proctor & Gamble for the introduction of Pringles, the most successful extruded potato chip in history. Progressing through a number of managerial positions he became the National Sales Manager for Gallo Wine Company responsible for directing a national sales force and distribution team introducing over 40 new wine brands and types. He was later recruited by the John Morrell Meat Company to serve as the Vice President of Sales, and later teamed with Richard Damion at Pacific Snax in the development and launch of several innovative snack brands with national distribution.

 

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LIMITATION ON DIRECTORS’ LIABILITIES

 

Our certificate of incorporation limits, to the maximum extent permitted under Nevada law, the personal liability of directors and officers for monetary damages for breach of their fiduciary duties as directors and officers, except in circumstances involving wrongful acts, such as a breach of the director’s duty of loyalty or acts of omission which involve intentional misconduct or a knowing violation of law.

 

Nevada Law permits us to indemnify officers, directors or employees against expenses, including attorney’s fees, judgments, fines and amounts paid in settlement in connection with legal proceedings if the officer, director or employee acted in good faith and in a manner he reasonably believed to be in or not opposed to our best interest, and, with respect to any criminal act or proceeding, he had no reasonable cause to believe his conduct was unlawful. Indemnification is not permitted as to any matter as to which the person is adjudged to be liable unless, and only to the extent that, the court in which such action or suit was brought upon application that, despite the adjudication of liability, but in view of all the circumstances of the case, the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper. Individuals who successfully defend this type of action are entitled to indemnification against expenses reasonably incurred in connection therewith.

 

Our by-laws require us to indemnify directors and officers against, to the fullest extent permitted by law, liabilities which they may incur under the circumstances described in the preceding paragraph.

 

Section 16(a) of the Securities Exchange Act of 1934

 

As of the date of this report, we are not subject to Section 16(a) of the Securities Exchange Act of 1934, which 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.

 

Board Leadership Structure and Role on Risk Oversight

 

Ms. West and Mr. Damion currently serve as our principal executive officers and directors of the Company. We have determined this leadership structure was duly appropriate for us because of our small size, limited operations and resources. The Board will continue to evaluate our leadership structure and modify as deemed appropriate based on size, resources and operations of the Company. It is anticipated that our Board will establish procedures and guidelines to determine an appropriate role for members of the Board in risk oversight function of the Company.

 

CODE OF BUSINESS CONDUCT AND ETHICS

 

Our code of business conduct and ethics, as approved by our board of directors, can be obtained from the Company by writing a request to our corporate office.

 

We intend to satisfy the disclosure requirement under Item 10 of Form 8-K relating to amendments to or waivers from provisions of the code that relate to one or more of the items set forth in Item 406(b) of Regulation S-B, by describing on our Internet Website, within five business days following the date of a waiver or a substantive amendment, the date of the waiver or amendment, the nature of the amendment or waiver, and the name of the person to whom the waiver was granted.

 

Information on our Internet website is not, and shall not be deemed to be, a part of this report or incorporated into any other filings we make with the Securities and Exchange Commission.

 

ITEM 11. EXECUTIVE COMPENSATION

 

The following table sets forth information concerning the annual and long-term compensation for services rendered during the fiscal years ended June 30, 2016 and June 30, 2015 to our Company in all capacities as an employee by our Chief Executive Officer and our other executive officers whose aggregate cash compensation exceeded $100,000 (collectively, the “Named Executive Officers”) at any time during such years.

 

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Summary Compensation Table for 2016 and 2015 Fiscal Years

 

Name and Principal Position   Year    

Salary

($)

   

Bonus

($)

   

Stock Awards

($)(3)(4)

   

Option Awards

($)

 

All Other Compensation

($(2))

   

Total

($)

                                       
Richard Damion     2016       -       -       -     -     -     -
President and CEO (1)     2015       -       -       1,250,000     -     -     625,000
                                                 
Katherine West     2016       -       -       3,270,539     -     -     1,167,983
Chairman of the Board (2)     2015       -       -       -     -     -     -
                                                 
William Lindberg     2016       -       -       25,000     -     -      
Chief Financial Officer     2015       8,875       -       -     -     -     8,875
                                                 
A.R. Grandsaert     2016       -       -       12,500     -     -     12,500
President (4)     2015       -       -       -     -     -     -

 

  (1) Mr. Damion was appointed President and Chief Executive Officer in January 2014 and resigned his position as President in February 2015.
     
  (2) Ms. West resigned the position of President and Chief Executive Officer in January 2014 and became Chairman of the Board.
     
  (3) In the fiscal year ended June 30, 2015, Mr. Damion was issued 2,500,000 shares of common stock of the Company at the price per share of $0.50 per share.
     
  (4) Mr. Grandsaert was appointed as President of the Company in February, 2015.

 

OUTSTANDING EQUITY AWARDS

 

The table below shows all outstanding equity awards held by our named executive officers at the end of the fiscal year ended June 30, 2016.

 

OUTSTANDING EQUITY AWARDS AT

2015 FISCAL YEAR END

 

     

Option Awards

 
Name     Number of Securities Underlying Unexercised Options Exercisable       Number of Securities Underlying Unexercised Options Unexercisable       Grant Date       Option Exercise Price       Option Expiration Date  
      (#)       (#)               ($)          
Richard Damion     -       -       -       -       -  
Katherine West     -       -       -       -       -  
William Lindberg     -       -       -       -       -  
A.R. Grandsaert     -       -       -       -       -  

 

COMPENSATION OF DIRECTORS

 

The table below summarizes the compensation earned by directors for services during the fiscal year ended June 30, 2016. Please also see Item 13 Certain Relationships and Related Transactions and Note 8 to the Financial Statements.

 

For the Fiscal Year Ended June 30, 2016

 

Name  

Fees Earned or Paid in Cash

($)

   

Option Awards

($)

    All Other Compensation ($)     Total ($)  
                         
Richard Damion               45,000 (1)     45,000  
Katherine West                 45,000 (2)     45,000  

 

(1) The Company issued 132,353 shares of common stock to Mr. Damion for his services as a director valued at $45,000 pursuant to the Company’s 2010 Equity Compensation Plan, as amended.
   
(2) The Company issued 132,383 shares of common stock to Ms. West for her services as a director valued at $45,000 pursuant to the Company’s 2010 Equity Compensation Plan, as amended.

 

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The Company reimburses each Director for reasonable expenses such as travel and out-of-pocket expenses in attending meetings of the Board of Directors.

 

EMPLOYMENT AGREEMENTS, TERMINATION OF EMPLOYMENT AND CHANGE-IN-CONTROL ARRANGEMENTS

 

There are no employment agreements with the Company’s key employees at this time. As of June 30, 2016 the employment agreements for Mr. Damion, the Company’s Chief Executive Officer and Katherine West, the Company’s Executive Vice President had not been finalized.

 

EQUITY COMPENSATION PLAN INFORMATION

 

In fiscal year 2011, the Company adopted its 2010 Equity Compensation Plan (the “Plan”) which was registered on the registration statement on Form S-8. The Company registered 8,500,000 shares of its common stock. The Plan was amended in January 2012, and the Company registered an additional 12,000,000 shares of its common stock. Pursuant to the Plan, the Company issued a total of 6,762,143 shares of its common stock to employees, as that term is defined under the Plan. As of October 26, 2012, the Plan was amended, and the Company registered an additional 2,000,000 shares of its common stock. As of June 30, 2013, there were no shares of common stock remaining for issuance under the Plan. The Plan was amended in November 2013, in which the Company registered an additional 1,000,000 shares of its common stock. As of June 30, 2014, there were 708,459 shares of common stock remaining for issuance under the Plan. This amount does not include an additional amount of 1,000,000 shares which was approved by the Company in September, 2013, and which amount has not been registered on Form S-8 at this time. As of June 30, 2016, there were no shares remaining to be issued under the plan.

  

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 

The following table sets forth certain information with respect to beneficial ownership of our common stock by: (i) each person known by us to be the beneficial owner of more than 5% of our common stock; (ii) each of our current directors; (iii) each of our executive officers set forth in the Summary Compensation Table; and all current directors and executive officers as a group. Except as otherwise indicated, the address for each person is 5042 Wilshire Blvd., 34708, Los Angeles, California 90036. Beneficial ownership is determined in accordance with the rules of the SEC and includes voting or investment power with respect to the securities. Except as otherwise indicated in the footnotes to the table, and subject to community property laws, where applicable, the persons and entities identified in the table below have sole voting and investment power with respect to all shares beneficially owned. The number of shares of common stock outstanding used in calculating the percentage for each listed person includes shares of common stock underlying options or warrants held by such person that are exercisable within 60 calendar days of June 30, 2016 but excludes shares of common stock underlying options or warrants held by any other person. Percentage of beneficial ownership is based on 15,558,030 shares of common stock issued and outstanding as of June 30, 2016.

 

      Beneficial Ownership of
Common Stock
(1)
      Percentage of
Ownership
 
 
Katherine West
Director, Chairman of the Board of Directors
Former CEO and President
    9,463,553 (2)     61. %
                 
Richard Damion
Director, CEO, and Former President
    2,500,000 (3)     16 %
                 
William Lindberg Chief Financial Officer     0       0.00 %
                 
A.R. Grandsaert
President
    12,500       0.00 %
TOTAL     12,026,053       77 %

 

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  (1) Beneficial ownership is determined in accordance with rules and regulations of the Securities and Exchange Commission. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, shares of common stock subject to options or warrants held by that person that are currently exercisable or exercisable within 60 days after June 30, 2016 are deemed outstanding, but are not deemed outstanding for computing the percentage of any other person.
     
  (2) Ms. West holds 2,515,822 of her shares of common stock in Northeast Capital Group, LLC. and 6,892,075 of her shares of common stock in Panacea Holdings, Inc., the companies she owns and controls. The total amount of Ms. West’s holdings also includes 910 shares of common stock held by her husband.
     
  (3) Mr. Damion holds 2,500,000 of his shares of common stock in RRD, LLC. a company he owns and controls.

 

Securities Authorized for Issuance under Equity Compensation Plans

 

Equity Compensation Plan Information

 

The following table furnishes information with respect to the Company's equity compensation plan as of June 30, 2016:

 

Plan Category    

Number of securities to be

issued upon exercise of

outstanding options,

warrants, and rights

     

Weighted-average

exercise price of

outstanding options,

warrants, and rights

     

Number of securities

remaining available for

future issuance under

equity compensation

plans

 
Equity compensation plans approved by security holders (1)     -     $ -       -  
Equity compensation plans not approved by security holders     -     $ -       -  
                         
Total     -     $ -       -  

 

  (1) The Company's Board of Directors and its shareholders adopted and approved the 2010 Equity Compensation Plan in the amount of 8,500,000 shares of common stock in October, 2010 (the "Plan"). The Plan was amended and the authorized amount of the shares issuable under the Plan was subsequently increased for an additional issuance of 12,000,000 in January, 2012, an additional 2,000,000 shares in October, 2012 and an additional 2,000,000 shares in September, 2013. Our shareholders approved all the amendments to the Plan to authorize the additional shares in September, 2013.

 

Additional information regarding equity compensation can be found in the notes to the financial statements.

 

Non-Cumulative Voting

 

The holders of our shares of common stock do not have cumulative voting rights, which means that the holders of more than 50% of such outstanding shares, voting for the election of Directors, can elect all of the Directors to be elected, if they so choose. In such event, the holders of the remaining shares will not be able to elect any of our Directors.

 

Transfer Agent

 

The transfer agent for the Company’s common stock is Interwest Transfer Company, Inc., 1981 Murray Holladay Road, Suite 100, Salt Lake City, Utah 84117. Their telephone number is (801) 272-9294 and their website is www.interwesttc.com.

 

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

 

During the year ended June 30, 2016 the Company issued 25,000 shares of common stock valued at $25,000 in settlement of loans in the amount of $8,575 payable to a related party.

 

During the year ended June 30, 2015 the Company issued 3,178,650 shares of common stock valued at $1,589,325 in settlement of loans in the amount of $127,146 payable to a related party.

 

The Company had shareholder loans of $50,028 at June 30, 2016 which are non-interest bearing and due on demand.

 

Other than disclosed in the Financial Statements, there were no transactions for the fiscal year ended June 30, 2016, nor are there any current proposed transactions, or series of the same, to which the Company is a party, in which the amount exceeds $120,000 and in which, to the knowledge of the Company, any director, executive officers, nominee, five percent shareholders of any member of the immediate family of the foregoing person, have or will have a direct or indirect material interest.

 

  25  
 

 

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

 

The following tables present fees for professional audit services rendered for the years ended June 30, 2016 and 2015:

 

Pritchett, Siler & Hardy PC

1438 North Highway 89

Suite 130

Farmington, UT 84025

 

    2016  
Audit Fees: (1)   $ 5,500  
Audit-Related Fees: (2)     4,500  
Tax Fees: (3)      
All Other Fees: (4)      
Total   $ 10,000  

 

 

(1)

 

 

Audit Fees: Fees for professional services performed by Pritchett, Siler & Hardy PC for the audit of our annual financial statements and services that are normally provided in connection with statutory and regulatory filings or engagement, such as the filing of Form S-8 for the year ended June 30, 2016.
     
  (2) Audit-Related Fees: Fees for the review of Form 10-Q for the first, second, and third quarters of the year ended June 30, 2016.
     
  (3) Tax Fees: Pritchett, Siler & Hardy PC did not provide any professional services with respect to tax compliance, such as preparation and filing of original and amended returns for us and our consolidated subsidiaries, refund claims, payment planning, tax audit assistance and tax work stemming from “Audit-Related” items.
     
  (4)

All Other Fees: Cutler & Co., LLC did not provide other permissible work for us that did not meet the above category descriptions.

 

Culter & Co., LLC.

9605 West 49th Avenue

Suite 200

Wheat Ridge, Colorado 80033

 

    2015  
Audit Fees: (1)   $ 5,000  
Audit-Related Fees: (2)     4,500  
Tax Fees: (3)      
All Other Fees: (4)      
Total   $ 9,500  

 

  (1) Audit Fees: Fees for professional services performed by Cutler & Co., LLC. for the audit of our annual financial statements and services that are normally provided in connection with statutory and regulatory filings or engagement, such as the filing of Form S-8 for the year ended June 30, 2015.
     
  (2) Audit-Related Fees: Fees for the review of Form 10-Q for the first, second, and third quarters of the year ended June 30, 2015.
     
  (3) Tax Fees: Cutler & Co., LLC. did not provide any professional services with respect to tax compliance, such as preparation and filing of original and amended returns for us and our consolidated subsidiaries, refund claims, payment planning, tax audit assistance and tax work stemming from “Audit-Related” items.
     
  (4) All Other Fees: Cutler & Co., LLC did not provide other permissible work for us that did not meet the above category descriptions.

  

  26  
 

  

PRE-APPROVAL POLICY

 

Our Board of Directors is responsible for approving all Audit, Audit-Related, Tax and Other Non-Audit Services. The Board of Directors approves all auditing services and permitted non-audit services, including all fees and terms to be performed for us by our independent auditor at the beginning of the fiscal year. Any additional non-audit services contemplated by the Company after the beginning of the fiscal year are submitted to the Audit Committee chairman for pre-approval prior to engaging the independent auditor for such services. Such interim pre-approvals are reviewed with the full Audit Committee at its next meeting for ratification.

 

PART IV

 

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 

  Exhibit No.   Description of Document
       
  2.1   Agreement and Plan of Merger of Time Lending, California, Inc.*
  3.1   Articles of Incorporation of Time Lending, California, Inc.*
  3.2   Articles of Incorporation of Tenth Street, Inc.*
  3.3   Articles of Incorporation of Time Marketing Associates, Inc.*
  3.4   Articles of Incorporation of Time Management, Inc.*
  3.5   Articles and Certificate of Merger of Registrant*
  3.6   Bylaws of Registrant*
  3.7   Amendment to the Articles of Incorporation dated August 2, 2005*
  3.8   Certificate of Designation.*
  3.9   Amendment to the Articles of Incorporation dated August, 2011.*
  3.10   Amendment to the Articles of Incorporation dated September, 2012.*
  3.11   Amendment to the Articles of Incorporation dated October, 2013*
  3.12   Amendment to the Articles of Incorporation dated August, 2015*
  10.2   Lease Agreement*
  10.3   Guaranty of Michael Pope*
  10.4   Guaranty of Thomas Van Wagoner*
  10.5   Demand Promissory Note (Michael Pope)*
  10.6   Demand Promissory Note (Philip La Puma)*
  10.7   Asset Sale and Purchase Agreement*
  10.8   Share Exchange Agreement between Time Financial Services, Inc. and Interruption Television, Inc.*
  10.9   Voting Agreement (Tenth Street, Inc.)*
  10.10   Voting Agreement (Time Management, Inc.)*
  10.11   Voting Agreement (Time Marketing Associates, Inc.)*
  10.12   Broker Agreement*
  10.13   Letter of Intent with Nationwide Security Mortgage*
  21   Subsidiaries of Registrant
  31.1   Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act
  31.2   Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act
  32.1   Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Ss. 1350 adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

* Previously filed with the Commission

 

  27  
 

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) 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.

 

  Amaize Beverage Corporation
     
Date: October 27, 2016 By: /s/ Richard Damion
    Richard Damion
    Chief Executive Officer
     
  By: /s/ William Lindberg
    William Lindberg
    Chief Financial Officer

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

SIGNATURE   TITLE   DATE
         
/s/ Richard Damion   CHIEF EXECUTIVE OFFICER   October 27, 2016
Richard Damion   (PRINCIPAL EXECUTIVE OFFICER)    
         
/s/ William Lindberg   CHIEF FINANCIAL OFFICER   October 27, 2016
William Lindberg   (PRINCIPAL FINANCIAL OFFICER)    
         
/s/ Katherine West   DIRECTOR   October 27, 2016
Katherine West        

 

  28  
 

 

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