Blackwell 3D Construction Corp 10-K for FY2018
Blackwell 3D Construction Corp. (BDCC)
About this 10-K
Blackwell 3D Construction Corp filed this 10-K on July 29, 2022, covering the fiscal year ended May 31, 2018 (FY2018).
Headline figures
Fiscal year ended May 31, 2018, as reported in this filing, compared with the same period a year earlier where the filing states it.
- Revenue
- $1836
- down 93.4% from $27.64K a year earlier
- Net loss
- $214.29K
- compared with a net loss of $493.41K a year earlier
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended May 31, 2018
Commission file number: 000-54452
| POWER AMERICAS RESOURCES GROUP LTD. (F/K/A BRISSET BEER INTERNATIONAL, INC.) |
| (Exact name of registrant as specified in its charter) |
| Nevada |
| 80-0778461 |
| (State or Other Jurisdiction of Incorporation or Organization) |
| (I.R.S. Employer Identification No.) |
370 Guy, Suite G9 Montreal A8 H31-1S6
(Address of principal executive offices)
917-403-1430
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Exchange Act: None
Securities registered pursuant to Section 12(g) of the Exchange Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Securities Act. Yes ☒ No ☐
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☒
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☐ No ☒
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☒
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
| Large accelerated filer | ☐ | Accelerated filer | ☐ |
| Non-accelerated filer | ☒ | Smaller Reporting company | ☒ |
|
|
| Emerging Growth company | ☒ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☒
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☒ No ☐
State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant's most recently completed second fiscal quarter. $0 based on the closing price of the common stock on November 30, 2021.
As of July 1, 2022, there were 9,863,000 shares of common stock outstanding.
Documents Incorporated by Reference: None
FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K contains forward-looking information. Forward-looking information includes statements relating to future actions, prospective products, future performance, or results of current or anticipated products, sales and marketing efforts, costs and expenses, interest rates, outcome of contingencies, financial condition, results of operations, liquidity, business strategies, cost savings, objectives of management of Power Americas Resources Group Ltd. (the “Company”, “BBI”, “us” or “we”) and other matters. Forward-looking information may be included in this Annual Report on Form 10-K or may be incorporated by reference from other documents filed with the Securities and Exchange Commission (the “SEC”) by the Company. One can find many of these statements by looking for words including, for example, “believes,” “expects,” “anticipates,” “estimates” or similar expressions in this Annual Report on Form 10-K or in documents incorporated by reference in this Annual Report on Form 10-K. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information or future events.
The Company has based the forward-looking statements relating to the Company's operations on management's current expectations, estimates and projections about the Company and the industry in which it operates. These statements are not guarantees of future performance and involve risks, uncertainties, and assumptions that we cannot predict. In particular, we have based many of these forward-looking statements on assumptions about future events that may prove to be inaccurate. Accordingly, the Company's actual results may differ materially from those contemplated by these forward-looking statements. Any differences could result from a variety of factors, including, but not limited to general economic and business conditions, competition, and other factors.
| 2 |
PART I
Item 1. Description of Business
Corporate Developments
Power Americas Resources Group Ltd. (the “Company”) was incorporated under the laws of the State of Florida on May 11, 2010, under the name Benefit Solutions Outsourcing Corp. The Company was initially formed to offer small and medium-sized businesses services that reduced invoicing expenses, sped up receipt of monies, and allowed authorization and recovery of paper drafts.
On April 4, 2014, the Company entered into an asset purchase agreement (the “Asset Purchase Agreement”) with Scenario A, a Quebec corporation (“Scenario A”), to purchase all of its assets relating to “Broken 7”, a craft beer to be brewed in Montreal, Quebec, Canada, for a purchase price of $25,000. The Asset Purchase Agreement relates to the Broken 7 trademark and recipe only. No other assets were acquired. $12,500 was paid at closing and $12,500 was to be paid 60 business days after the closing date of April 7, 2014. By letter agreement dated July 16, 2014, the parties agreed to extend the date on which the second payment of $12,500 was due to August 15, 2014. The Company made the final installment of $12,500 to Scenario A on August 14, 2014.
Effective July 24, 2014, the Company changed its state of incorporation from Florida to Nevada and its name from “Buckeye Oil & Gas, Inc.” to “Brisset Beer International, Inc.” by the merger of Buckeye Oil & Gas, Inc. with and into its wholly owned subsidiary, Brisset Beer International, Inc.
Until April 2014, the Company was engaged in the acquisition and exploration of oil and gas properties. Since its asset purchase in April 2014, the Company has abandoned its interests in its two oil and gas properties and is principally engaged in the development of a brewing, distribution, and marketing of craft-brewed beer business in the province of Quebec, Canada. Our craft beer consists of a single brand known as Broken 7, which we distribute to private retail stores, grocery chains and on-premise accounts across Quebec, Canada.
On November 10, 2014, the Company entered into a Service Agreement with Sandberg International Limited to provide investor relations for the Company. For such services, Sandberg International receives $500 per month, and on November 10, 2014, was issued 125,000 shares of common stock of the Company, Class A warrants to purchase 125,000 shares of common stock exercisable at $0.15 per share and a Class B warrant to purchase 125,000 shares of common stock exercisable at $0.25 per share. The agreement shall continue until either party notifies the other that it desires to terminate the agreement on 30 days' written notice.
| 3 |
On December 2, 2014 Biere Brisset International Inc., a Canadian corporation wholly-owned subsidiary by Company (“BBII”), entered into a five-year Manufacturing and Distribution Agreement (the “Distribution Agreement”) with 90127-2021 Quebec Inc., a Quebec company doing business as Breuvages Blue Spike (“Blue Spike”) pursuant to which Blue Spike has the exclusive right to manufacture, distribute and sell BBII's Broken 7 beer in certain designated networks in the following Canadian provinces and U.S. states: Newfoundland, Prince-Edward Island, New Brunswick, Nova Scotia, Quebec, Ontario, Maine, New Hampshire, Vermont, New York, Massachusetts, Connecticut, Rhode Island, New Jersey, Pennsylvania, Ohio, Michigan, Illinois, Indiana, Kentucky, West Virginia, Virginia, Washington DC, Delaware, Maryland. The Company granted Blue Spike a right of first refusal to act as exclusive agent for the distribution and sale of its products in other new territories.
On April 1, 2016, BBII amended the Distribution agreement (the “Amendment”) with Blue Spike to clarify certain of the business terms regarding the margins, pricing, and distribution networks.
Subject to Blue Spike's approval, the Company may sell products manufactured by Blue Spike in the Company's own distribution network. Products sold within the Company's own distribution network are subject to higher margins for the Company. The Company is responsible, at its expense, for the marketing and promotion of Broken 7, and has agreed to invest 25% of the gross margin of its products for marketing and advertising.
The Company granted Blue Spike a right of first refusal if the Company sells or transfers all or a portion of its rights in its brands. If the Company is sold during the term of the agreement, the Company is obligated to pay Blue Spike 2.5% of the purchase price for every $250,000 of product sales, up to $5 million but not to exceed 50% of the sale price. The agreement also provides for various payment returns to Blue Spike if the Company is sold when the agreement is no longer in effect, depending on when and why the agreement is no longer in effect. The agreement will automatically renew for an additional five-year term unless either party notifies the other of its intention not to renew 180 days prior to the expiration of the initial term.
On March 1, 2015, BBII entered into a five-year manufacturing and distribution agreement (the “CBB Agreement”) with La Compagnie de Biere Brisset, Inc. (“CBB”), a specialty brewer, to help bring to market and test new line extensions for beer brands owned by the Company. The CBB Agreement grants CBB the right to manufacture Broken 7 beer in accordance with certain minimum and production capacities set forth in the Agreement. Proceeds, if any, from the sale of BBI products will be retained by CBB as compensation for its services. Unless earlier terminated by BBII's bankruptcy, insolvency or sale of its business or assets or the gross misconduct or negligence of CBB, the Agreement will automatically renew for an additional five-year term unless either party notifies the other of its intention not to renew 180 days prior to the expiration of the initial term.
On April 1, 2016, BBII amended the manufacturing and distribution agreement (the “Amendment”) with Blue Spike to clarify certain of the business terms regarding the margins, pricing, and distribution networks.
The Distribution Agreement and the CBB Agreement were terminated on March 2, 2018.
We are currently seeking acquisition partners we believe would be beneficial for the Company and our shareholders. To this end, we intent to begin the process of identifying sectors and industries that current management believes will provide the most long-term and short-term benefit to the existing and future shareholders of the Company. However, as of the date of this Report we have not identified any potential acquisition candidates or entered any negotiations relating to the same. Additionally, we intend to continue to take such corporate actions necessary to fulfil our reporting obligations with the SEC and undertaking other corporate actions necessary to continue and eventually grow the Company’s business operations, through the identification of suitable acquisition partners. We intend to update our shareholders during this process.
On March 16, 2022, our board of directors approved changing our corporate name from Brisset Beer International, Inc. to Power Americas Resources Group Ltd.
| 4 |
ITEM 1A. RISK FACTORS
Not applicable to smaller reporting companies.
Item 1B. Unresolved Staff Comments
There are no unresolved staff comments.
Item 2. Description of Properties
Corporate Office
We do not own any real property. Our head office is located at 265 Sunrise Highway, Suite 276, Rockville Centre, NY, 11570. We are able to use this office space free of charge as it is the office space, we share with the offices of other businesses owned by our principal executive officer. Management believes that our office space is suitable for our current needs.
Item 3. Legal Proceedings
There are no pending legal proceedings to which the Company is a party or in which any director, officer or affiliate of the Company, any owner of record or beneficially of more than 5% of any class of voting securities of the Company, or security holder is a party adverse to the Company or has a material interest adverse to the Company. The Company's properties are not the subject of any pending legal proceedings.
Item 4. Mine Safety Disclosures
The Company has no mining operations.
| 5 |
PART II
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
Market Information
There has been no market for our securities. Our common stock is quoted on the OTC Markets Pink Sheets under the symbol BBII. However, a market has not yet developed. There is no assurance that a trading market will develop, or, if developed, that it will be sustained.
Security Holders
As of May 1, 2022, there were approximately 46 holders of record of the Company's common stock.
Dividends
The Company has not declared or paid any cash dividends on its common stock, nor does it anticipate paying any in the foreseeable future. Furthermore, the Company expects to retain any future earnings to finance its operations and expansion. The payment of cash dividends in the future will be at the discretion of its Board of Directors and will depend upon its earnings levels, capital requirements, any restrictive loan covenants, and other factors the Board considers relevant.
Securities Authorized for Issuance under Equity Compensation Plans
The Company does not have any equity compensation plans.
Recent Sales of Unregistered Securities
None.
Purchases of Equity Securities by the Company
None
Item 6. Selected Financial Data
A smaller reporting company, as defined by Item 10 of Regulation S-K, is not required to provide the information required by this item.
Item 7. Management's Discussion and Analysis or Plan of Operation
Our Management's Discussion and Analysis contains not only statements that are historical facts, but also forward-looking statements which involve risks and uncertainties and assumptions. Because forward-looking statements are inherently subject to risks and uncertainties, our actual results may differ materially from the results discussed in the forward-looking statements. The following discussion and analysis of financial condition and results of operations of the Company is based upon, and should be read in conjunction with, the audited financial statements and related notes elsewhere in this Annual Report on Form 10-K.
| 6 |
Results of Operations for the Years Ended May 31, 2018, and 2017
Revenues
Revenue for the year ended May 31, 2018 decreased to $1,836 from $27,644 for the year ended May 31, 2017. The decrease was the result of the termination of our distribution agreement.
Operating Expenses
Operating expenses decreased to $169,164 for the year ended May 31, 2018 from $516,604 for the same period ended May 31, 2017. The decrease was the result of the termination of our distribution agreement.
Our operating expenses for the year ended May 31, 2018 consisted of selling, general and administrative expenses of $18,011, professional fees of $86,653, and Management and director fees of $64,500.
Our operating expenses for the year ended May 31, 2017 consisted of selling, general and administrative expenses of $454,973, professional fees of $16,052, and Management and director fees of $45,579.
Other Expenses
We had other expenses of $46,962 for the year ended May 31, 2018, as compared with other expenses of $4,445 for the year ended May 31, 2017. Interest expense increased as a result of the Company issuing additional debt.
Our other income for the year ended May 31, 2018 consisted primarily of interest expense, and a loss on derivative liability, and foreign exchange translation. Our other expenses for the year ended May 31, 2027 consisted of interest expense.
| 7 |
Net Loss
We recorded a net loss of $214,290 for the year ended May 31, 2018, as compared with a net loss of $485,913 for the year ended May 31, 2017.
Liquidity and Capital Resources
Going concern – The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has incurred cumulative net losses of $2,186,984 since its inception and requires capital for its contemplated operational and marketing activities to take place. The Company’s ability to generate the necessary funds through licensing of its core products or the ability to raise additional capital through the future issuances of common stock or debt is unknown. The obtainment of additional financing, the successful development of the Company’s contemplated plan of operations, and its transition, ultimately, to the attainment of profitable operations are necessary for the Company to continue operations. These factors, among others, raises substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements of the Company do not include any adjustments that may result from the outcome of these aforementioned uncertainties.
As of May 31, 2018, we had total current assets of $15,702. Our total current liabilities as of May 31, 2018 were $283,924. We had a working capital deficit of $268,222 as of May 31, 2018, compared with a working capital deficit of $46,432 as of May 31, 2017.
Operating activities used $56,021 in cash for the year ended May 31, 2018, as compared with $65,511 used for the year ended May 31, 2017. Our negative operating cash flow for May 31, 2018 and 2017 was largely the result of our net loss for the years.
Cash flows used by financing activities during the year ended May 31, 2018 provided $69,838, as compared with cash provided of $26,250 for the year ended May 31, 2017. Our positive financing cash flow for the years ended May 31, 2018 was largely a result of proceeds from convertible notes payable.
The features of the debt instruments and payables concerning our financing activities are detailed in the footnotes to our financial statements.
Based upon our current financial condition, we do not have sufficient cash to operate our business at the current level for the next twelve months. We intend to fund operations through increased sales and debt and/or equity financing arrangements, which may be insufficient to fund expenditures or other cash requirements. We plan to seek additional financing in a private equity offering to secure funding for operations. There can be no assurance that we will be successful in raising additional funding. If we are not able to secure additional funding, the implementation of our business plan will be impaired. There can be no assurance that such additional financing will be available to us on acceptable terms or at all.
Item 7A. Quantitative and Qualitative Disclosure About Market Risk
A smaller reporting company, as defined by Item 10 of Regulation S-K, is not required to provide the information required by this item.
| 8 |
Item 8. Financial Statements
|
|
| Gries & Associates, LLC
Certified Public Accountants 501 S. Cherry Street Suite 1100 Denver, Colorado 80246 |
Report of Independent Registered Public Accounting Firm
Board of Directors and Shareholders
Brisset Beer International, Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheet of Brisset Beer International, Inc. (the “Company”) as of May 31, 2018, and the related consolidated statement of operations, statement of stockholders’ deficit, and cash flows for the year ended, and the related notes and schedules (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of May 31, 2018, and the results of its operations and its cash flows for each of the years then ended, in conformity with accounting principles generally accepted in the United States of America.
Basis for Opinion
These financial statements are the responsibility of the entity’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits we are required to obtain an understanding of internal control over financial reporting but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.
Going Concern Uncertainty
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in note 2 to the financial statements, the Company has incurred losses since inception of $2,186,984. These factors create an uncertainty as to the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Emphasis of Matters-Risks and Uncertainties
The Company is not able to predict the ultimate impact that COVID -19 will have on its business. However, if the current economic conditions continue, the pandemic could have an adverse impact on the economies and financial markets of many countries, including the geographical area in which the Company plans to operate.
/s/ Gries & Associates, LLC
We have served as the Company's auditor since 2022.
Denver, CO
May 25, 2022
| blaze@griesandassociates.com
501 S. Cherry Street, Suite 1100, Denver, Colorado 80246 (O)720-464-2875 (M)773-255-5631 (F)720-222-5846 |
| 9 |
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders
Power Americas Resource Group Ltd. (f/k/a Brisset Beer International, Inc.)
Opinion on the Financial Statements
We have audited the accompanying balance sheet of Power Americas Resource Group Ltd. (f/k/a Brisset Beer International, Inc.) (“the Company”) as of May 31, 2017, and the related statements of operations, stockholders’ deficit, and cash flows for the year then ended, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of May 31, 2017, 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.
Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has incurred net losses and expects those losses to continue until it can achieve profitable operations. This factor raises substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to this matter is also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, 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.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
| We have served as the Company’s auditor since 2018.
Spokane, Washington | |
| September 14, 2018 | |
| 10 |
| Power Americas Resource Group Ltd. | ||||||||
| (formally Brisset Beer International, Inc.) Consolidated Balance Sheets (Audited) | ||||||||
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| May 31, |
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| May 31, |
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| 2018 |
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| 2017 |
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| ASSETS |
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| Current Assets |
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| Cash and cash equivalents |
| $ | 15,702 |
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| $ | 1,885 |
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| Trade and Other Receivables |
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| - |
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| 9,800 |
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| Total Current Assets |
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| 15,702 |
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| 11,685 |
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| TOTAL ASSETS |
| $ | 15,702 |
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| $ | 11,685 |
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| LIABILITIES AND STOCKHOLDERS' DEFICIT |
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| Current Liabilities |
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| Accounts payable and accrued liabilities |
| $ | 80,796 |
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| $ | 33,541 |
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| Accrued interest payable |
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| 3,287 |
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| - |
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| Accrued interest payable - related party |
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| 1,275 |
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| - |
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| Due to related parties |
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| 72,459 |
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| 20,308 |
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| Derivative liability |
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| 61,618 |
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| - |
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| Note payable |
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| 6,500 |
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| - |
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| Note payable - related parties |
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| 9,838 |
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| - |
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| Convertible note - related party |
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| 7,500 |
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| 4,268 |
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| Convertible notes, net of note discount $11,649 and $3,232 debt discount, respectively |
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| 40,651 |
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| - |
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| Total Current Liabilities |
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| 283,924 |
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| 58,117 |
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| STOCKHOLDERS' DEFICIT |
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| Common Stock, Par Value $0.0001, Authorized 500,000,000 shares, 9,863,000 shares issued and outstanding |
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| 986 |
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| 986 |
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| Additional paid in capital |
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| 1,917,776 |
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| 1,925,276 |
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| Accumulated other comprehensive income |
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| - |
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| 8,492 |
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| Accumulated deficit |
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| (2,186,984 | ) |
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| (1,981,186 | ) |
| Total STOCKHOLDERS' DEFICIT |
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| (268,222 | ) |
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| (46,432 | ) |
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| TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT |
| $ | 15,702 |
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| $ | 11,685 |
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The accompanying notes are an integral part of these financial statements.
| 11 |
| Power Americas Resource Group Ltd. (formally Brisset Beer International, Inc.) | ||||||||
| Consolidated Statements of Operations | ||||||||
| (Audited) |
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| Years Ended |
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| May 31, |
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| 2018 |
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| 2017 |
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| Revenues |
| $ | 1,836 |
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| $ | 27,644 |
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| Operating Expenses |
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| General and administration |
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| 18,011 |
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| 454,973 |
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| Professional fees |
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| 86,653 |
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| 16,052 |
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| Management and Director's Fees |
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| 64,500 |
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| 45,579 |
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| Total operating expenses |
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| 169,164 |
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| 516,604 |
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| Loss from operations |
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| (167,328 | ) |
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| (488,960 | ) |
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| Other (Expense) Income |
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| Interest expense |
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| (47,140 | ) |
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| (4,445 | ) |
| Interest expense - related party |
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| (1,141 | ) |
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| - |
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| Foreign exchange transaction gain |
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| 1,937 |
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| - |
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| Loss on change in derivative liability |
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| (618 | ) |
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| - |
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| Total other income (expense) |
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| (46,962 | ) |
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| (4,445 | ) |
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| Net loss before taxes |
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| (214,290 | ) |
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| (493,405 | ) |
| Provision for income taxes |
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| - |
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| - |
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| Net loss |
| $ | (214,290 | ) |
| $ | (493,405 | ) |
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| Other comprehensive income (loss) |
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| - |
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| 7,492 |
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| Comprehensive Loss |
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| (214,290 | ) |
|
| (485,913 | ) |
|
|
|
|
|
|
|
|
|
|
| Net Loss Per Common Share – Basic and Diluted |
| $ | (0.02 | ) |
| $ | (0.06 | ) |
|
|
|
|
|
|
|
|
|
|
| Weighted Average Common Shares Outstanding - Basic and Diluted |
|
| 9,863,000 |
|
|
| 8,419,671 |
|
The accompanying notes are an integral part of these financial statements.
| 12 |
| Power Americas Resource Group Ltd. (formally Brisset Beer International, Inc.) | ||||||||||||||||||||||||||||||||||||||||||
| Consolidated Statement of Stockholders' Deficit | ||||||||||||||||||||||||||||||||||||||||||
| (Audited) |
|
|
|
|
|
|
|
|
| Accumulated |
|
|
|
|
| |||||||||||
|
|
|
|
|
|
| Additional |
|
| other |
|
|
|
| Total |
| |||||||||
|
|
| Common Stock |
|
| Paid in |
|
| Comprehensive |
|
| Accumulated |
|
| Stockholder's |
| |||||||||
|
|
| Number of Shares |
|
| Amount |
|
| Capital |
|
| Income(Loss) |
|
| Deficit |
|
| Deficit |
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
| Balance - May 31, 2016 |
|
| 3,608,000 |
|
| $ | 361 |
|
| $ | 1,513,388 |
|
|
| 1,000 |
|
| $ | (1,487,781 | ) |
| $ | 26,968 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Common stock issued to two officers at $0.0005 per share, August 22, 2016 |
|
| 6,000,000 |
|
|
| 600 |
|
|
| 2,400 |
|
|
| - |
|
|
| - |
|
|
| 3,000 |
|
| Warrants issued to two officers, August 22, 2016 |
|
| - |
|
|
| - |
|
|
| 371,263 |
|
|
| - |
|
|
| - |
|
|
| 371,263 |
|
| Issuance of common stock for services |
|
| 150,000 |
|
|
| 15 |
|
|
| 14,985 |
|
|
| - |
|
|
| - |
|
|
| 15,000 |
|
| Exercise of warrants |
|
| 105,000 |
|
|
| 10 |
|
|
| 15,740 |
|
|
| - |
|
|
| - |
|
|
| 15,750 |
|
| Debt discount on convertible notes issued |
|
|
|
|
|
| - |
|
|
| 7,500 |
|
|
| - |
|
|
| - |
|
|
| 7,500 |
|
| Comprehensive income for the period |
|
| - |
|
|
| - |
|
|
| - |
|
|
| 7,492 |
|
|
| - |
|
|
| 7,492 |
|
| Net loss |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (493,405 | ) |
|
| (493,405 | ) |
| Balance - May 31, 2017 |
|
| 9,863,000 |
|
| $ | 986 |
|
| $ | 1,925,276 |
|
|
| 8,492 |
|
| $ | (1,981,186 | ) |
| $ | (46,432 | ) |
| Reclassification of debt discount to derivative liability |
|
|
|
|
|
|
|
|
|
| (7,500 | ) |
|
| (8,492 | ) |
|
| 8,492 |
|
|
| (7,500 | ) |
| Net loss |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (214,290 | ) |
|
| (214,290 | ) |
| Balance - May 31, 2018 |
|
| 9,863,000 |
|
| $ | 986 |
|
| $ | 1,917,776 |
|
|
| - |
|
| $ | (2,186,984 | ) |
| $ | (268,222 | ) |
The accompanying notes are an integral part of these financial statements.
| 13 |
Power Americas Resource Group Ltd.
(formally Brisset Beer International, Inc.)
Consolidated Statements of Cash Flows
(Audited)
|
|
| Years Ended |
| |||||
|
|
| May 31, |
| |||||
|
|
| 2018 |
|
| 2017 |
| ||
| Cash Flows from Operating Activities: |
|
|
|
|
|
| ||
| Net loss |
| $ | (214,290 | ) |
| $ | (493,405 | ) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
| Units issued for services |
|
| - |
|
|
| 15,000 |
|
| Stock-based compensation |
|
| - |
|
|
| 371,263 |
|
| Amortization of debt discount |
|
| 43,883 |
|
|
| 4,268 |
|
| Gain(loss) on change in derivative liability |
|
| 618 |
|
|
| - |
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
|
|
| Accounts receivables |
|
| 9,800 |
|
|
| (4,358 | ) |
| Prepaid expense |
|
| - |
|
|
| 7,169 |
|
| Accounts payable and accrued liabilities |
|
| 47,426 |
|
|
| 14,244 |
|
| Accrued interest payable |
|
| 4,391 |
|
|
| - |
|
| Due to related parties |
|
| 52,151 |
|
|
| 20,308 |
|
| Net Cash Used in Operating Activities |
|
| (56,021 | ) |
|
| (65,511 | ) |
|
|
|
|
|
|
|
|
|
|
| Cash Flows from Financing Activities: |
|
|
|
|
|
|
|
|
| Proceeds from issuance of promissory notes |
|
| 16,338 |
|
|
| - |
|
| Proceeds from issuance of convertible debt |
|
| 53,500 |
|
|
| 7,500 |
|
| Proceeds from issuance of common stock |
|
| - |
|
|
| 18,750 |
|
| Net Cash Provided by Financing Activities |
|
| 69,838 |
|
|
| 26,250 |
|
|
|
|
|
|
|
|
|
|
|
| Effect of exchange rate changes on cash |
|
| - |
|
|
| 7,492 |
|
|
|
|
|
|
|
|
|
|
|
| Net Change in Cash and Cash Equivalents |
|
| 13,817 |
|
|
| (31,770 | ) |
| Cash and Cash Equivalents, beginning of period |
|
| 1,885 |
|
|
| 33,655 |
|
| Cash and Cash Equivalents, end of period |
| $ | 15,702 |
|
| $ | 1,885 |
|
|
|
|
|
|
|
|
|
|
|
| Supplemental Disclosure Information: |
|
|
|
|
|
|
|
|
| Cash paid for interest |
| $ | - |
|
| $ | - |
|
| Cash paid for income taxes |
| $ | - |
|
| $ | - |
|
|
|
|
|
|
|
|
|
|
|
| Non cash Investing and Financing Activities: |
|
|
|
|
|
|
|
|
| Discount to debt for beneficial conversion feature |
| $ | - |
|
| $ | 7,500 |
|
| 14 |
POWER AMERICAS RESOURCE GROUP LTD.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
MAY 31, 2018
NOTE 1 – NATURE OF BUSINESS AND OPERATIONS
Organization
Power Americas Resources Group Ltd. (the “Company”) was incorporated in the State of Florida on May 11, 2010 under the name Benefit Solutions Outsourcing Corp.
The Company was engaged in the marketing of a craft beer which was brewed, distributed, and marketed solely in Quebec, Canada until the change of control which occurred in March 2019, at which time it ceased business operations.
Going forward, the Company intends to seek, investigate and, if such investigation warrants, engage in a business combination with a private entity whose business presents an opportunity for its shareholders. The Company has no particular business combination in mind and has not entered into any negotiations regarding such a combination.
On February 11, 2019, pursuant to a Stock Purchase Agreement, dated November 21, 2017, by and among Stephan Pilon, Pol Brisset (the “Selling Stockholders”), and Redstone Ventures, LTD (the “Purchaser”), the Purchaser purchased an aggregate of 7,561,000 shares of common stock of Power Americas Resources Group Ltd., a Nevada corporation (the “Company”), from the Selling Stockholders for $0.00238 per share, or an aggregate purchase price of $18,000. The 7,561,000 shares of common stock purchase by the Purchaser from the Selling Stockholders represent approximately 76.66% of the outstanding 9,863,000 shares of common stock of the Company and constitute a change in control of the Company. The source of funds was working capital of the Purchaser. Mr. S. Polishetty has voting and dispositive control over the Purchaser.
There are no arrangements, known to the Company, including any pledge by any person of securities of the Company, the operation of which may at a subsequent date result in a change in control of the Company.
Change of Directors
On February 11, 2019, Pol Brisset resigned as the Secretary and member of the Board of Directors of the Company. Mr. Brisset’s resignation was not due to any disagreement with the Company or its management with respect to any matter relating to the Company’s operations, policies or practices.
Simultaneously with Messrs. Pilon’s and Brisset’s resignations from the Company, the Board of Directors of the Company appointed Kevin G. Malone as the President, Chief Executive Officer (Principal Executive Officer), Secretary and Treasurer (Principal Financial Officer) of the Company and as a member of the Company’s Board of Directors.
The accompanying financial statements have been prepared in U.S. dollars and in accordance with accounting principles generally accepted in the United States on a going concern basis.
| 15 |
Basis of Consolidation
These consolidated financial statements include the accounts of the Company and the wholly-owned subsidiaries, Biere Brisset International Inc. and Buckeye Oil & Gas. All material intercompany balances and transactions have been eliminated.
NOTE 2 – GOING CONCERN
The accompanying financial statements have been prepared in US dollars and in accordance with accounting principles generally accepted in the United States (“GAAP”) on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. The Company commenced its craft brewing activities in September 2014. During the year ended May 31, 2018, the Company has incurred net losses of $214,290 and accumulated deficit of $2,186,984, respectively. The Company expects losses to continue until it can achieve profitable operations from its craft beer operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern.
Our current operations have been funded entirely from capital raised from our private offering of securities, as well as additional funding through the issuance of convertible notes and stock issuances. We are entirely dependent on our ability to attract and receive additional funding from either the sale of securities or outside sources such as private investment or a strategic partner. We currently have no firm agreements or arrangements with respect to any such financing and there can be no assurance that any needed funds will be available to us on acceptable terms or at all. The inability to obtain sufficient funding of our operations in the future will restrict our ability to grow and reduce our ability to continue to conduct business operations. Our failure to raise additional funds will adversely affect our business operations, and may require us to suspend our operations, which in turn may result in a loss to the purchasers of our common stock. If we are unable to obtain necessary financing, we will likely be required to curtail our development plans which could cause us to become dormant. Any additional equity financing may involve substantial dilution to our then existing stockholders.
The Company's ability to continue as a going concern is dependent on its ability to brew, distribute, and market our craft beer and ultimately achieve profitable operations and to generate sufficient cash flow from financing and operations to meet its obligations as they become payable. Management may seek additional capital through a private placement and public offering of its common stock. Although there are no assurances that management's plans will be realized, management believes that the Company will be able to continue operations in the future.
NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates.
Cash and Cash Equivalents
For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes. The cash account that is held in Canadian Dollar, and foreign exchange transaction gain (loss) resulting from fluctuations in the currency exchange rate between U.S. dollar and Canadian dollar has been recorded in the statements of operations. Translation gain (loss) is reported as a component of other accumulated comprehensive income, which was nil during the year ended May 31, 2018 and 2017.
| 16 |
Foreign Currency
The functional currency of the Company at May 31, 2018 and May 31, 2017 is the Canadian dollar. Transactions that are denominated in a foreign currency are re-measured into the functional currency at the current exchange rate on the date of the transaction. Any foreign currency denominated monetary assets and liabilities are subsequently re-measured at current exchange rates, with gains or losses recognized as foreign exchange losses or gains in the statement of operations. Nonmonetary assets and liabilities are translated at historical exchange rates. Expenses are translated at average exchange rates during the period. Exchange gains and losses are included in statement of operations for the period.
Reclassifications
Certain prior year amounts have been reclassified for consistency with the current period presentation. These reclassifications had no effect on the reported results of operations.
Stock-based compensation
The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. This eliminates accounting for share-based compensation transactions using intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.
The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with ASC 718-10 and the conclusions reached by the ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by ASC 505-50
Concentration of Credit Risk
The Company has no off-balance-sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements. The Company maintains all of its cash balances with two financial institutions in the form of demand deposits.
Loss per Share
The Company follows ASC Topic 260 to account for the earnings per share. Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. During periods when common stock equivalents, if any, are anti-dilutive they are not considered in the computation.
Revenue Recognition
On June 1, 2017, the Company adopted Topic 606 using the modified retrospective method applied to those contracts which were not completed as of June 1, 2017. Results for reporting periods beginning after June 1, 2017 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting.
We did not have a cumulative impact as of June 1, 2017 due to the adoption of Topic 606 and there was not an impact to our consolidated statement of operations for the year ended May 31, 2018 as a result of applying Topic 606.
The Company recognizes revenue from its contracts with customers in accordance with ASC 606 – Revenue from Contracts with Customers. The Company recognizes revenues when satisfying the performance obligation of the associated contract that reflects the consideration expected to be received based on the terms of the contract.
Revenue related to contracts with customers is evaluated utilizing the following steps: (i) Identify the contract, or contracts, with a customer; (ii) Identify the performance obligations in the contract; (iii) Determine the transaction price; (iv) Allocate the transaction price to the performance obligations in the contract; (v) Recognize revenue when the Company satisfies a performance obligation.
Revenue from the Company's craft beer business is received in the form of commissions. The Company has contracted out services to a single supplier for brewing, labeling and distribution. The Company recognizes commission revenue based on a percentage of sales with fixed margins as negotiated with the contract brewer. Revenue is recorded at the time of delivery to the customer. Any receivables remaining unpaid forty-five days after invoicing by an unrelated party business will be charged to the Company. The unrelated party business undertakes to pay the said receivable account to the Company without delay once recovered, less the costs of collection and late penalty fees.
During the year ended May 31, 2018 and 2017, the Company recognized revenue of $1,836 and $27,644, respectively.
| 17 |
Income Taxes
Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry forwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
Fair Value of Financial Instruments
The Company measures fair value in accordance with ASC 820 - Fair Value Measurements. ASC 820 defines fair value and establishes a three-level valuation hierarchy for disclosures of fair value measurements. ASC 820 establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, ASC 820 establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by ASC 820 are:
Level 1 - Inputs are unadjusted, quoted prices in active markets for identical assets or liabilities at the measurement date.
Level 2 - Inputs (other than quoted market prices included in Level 1) are either directly or indirectly observable for the asset or liability through correlation with market data at the measurement date and for the duration of the instrument’s anticipated life.
Level 3 - Inputs reflect management’s best estimate of what market participants would use in pricing the asset or liability at the measurement date. Consideration is given to the risk inherent in the valuation technique and the risk inherent in the inputs to the model. Valuation of instruments includes unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.
As defined by ASC 820, the fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale, which was further clarified as the price that would be received to sell an asset or paid to transfer a liability (“an exit price”) in an orderly transaction between market participants at the measurement date
The reported fair values for financial instruments that use Level 2 and Level 3 inputs to determine fair value are based on a variety of factors and assumptions. Accordingly, certain fair values may not represent actual values of the Company’s financial instruments that could have been realized as of May 31, 2018 or that will be recognized in the future, and do not include expenses that could be incurred in an actual settlement. The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts receivable, receivables from related parties, prepaid expenses and other, accounts payable, accrued liabilities, and related party and third party notes payables approximate fair value due to their relatively short maturities. The Company’s notes payable to related parties approximates the fair value of such instrument based upon management’s best estimate of terms that would be available to the Company for similar financial arrangements at May 31, 2018 and 2017.
Financial assets and liabilities measured at fair value on a recurring basis are summarized below as of May 31, 2018:
|
|
| Level 1 |
|
| Level 2 |
|
| Level 3 |
|
| Total |
| ||||
| Liabilities |
|
|
|
|
|
|
|
|
|
|
|
| ||||
| Derivative Financial Instruments |
| $ | - |
|
| $ | - |
|
| $ | 61,618 |
|
| $ | 61,618 |
|
| 18 |
As of May 31, 2018, the Company’s stock price was $0.15, risk-free discount rate of 2.03% and volatility of 0.1%
The following table provides a summary of the changes in fair value, including net transfers in and/or out, of the derivative financial instruments, measured at fair value on a recurring basis using significant unobservable inputs:
|
|
| Amount |
| |
| Balance May 31, 2017 |
| $ | - |
|
| Debt discount originated from derivative liabilities |
|
| 61,000 |
|
| Change in fair market value of derivative liabilities |
|
| 618 |
|
| Balance May 31, 2018 |
| $ | 61,618 |
|
Recent Accounting Pronouncements
In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with “Conversion and Other Options” and ASC subtopic 815-40 “Hedging—Contracts in Entity’s Own Equity”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this standard on its consolidated financial statements.
In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes. This guidance will be effective for entities for the fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020 on a prospective basis, with early adoption permitted. We will do not expect the adoption of this guidance to have a material impact on our consolidated financial statements.
In August 2018, the FASB issued ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The ASU modifies the disclosure requirements in Topic 820, Fair Value Measurement, by removing certain disclosure requirements related to the fair value hierarchy, modifying existing disclosure requirements related to measurement uncertainty and adding new disclosure requirements, such as disclosing the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and disclosing the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. This ASU is effective for public companies for annual reporting periods and interim periods within those annual periods beginning after December 15, 2019. The Company is currently evaluating the effect, if any, that the ASU will have on its consolidated financial statements.
In June 2018, the FASB issued ASU 2018-07, Compensation-Stock Compensation (Topic 718), Improvements to Nonemployee Share-based Payments (“ASU 2018-07”). This ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The effective date for the standard is for interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted, but no earlier than the Company’s adoption date of Topic 606. Under the new guidance, the measurement of nonemployee equity awards is fixed on the grant date. The new guidance is required to be applied retrospectively with the cumulative effect recognized at the date of initial application. The Company is currently evaluating the effect ASU 2018-07 will have on the consolidated financial statements.
| 19 |
Management has considered all recent accounting pronouncements issued. The Company’s management believes that these recent pronouncements will not have a material effect on the Company’s financial statements.
NOTE 4 –PROMISSORY NOTES
Promissory notes payable at May 31, 2018 and May 31, 2017 consists of the following:
|
|
| May 31, 2018 |
|
| May 31, 2017 |
| ||
| Dated March 31, 2018 |
| $ | 6,500 |
|
| $ | - |
|
| Total promissory notes payable, gross |
|
| 6,500 |
|
|
| - |
|
| Less: current portion |
|
| - |
|
|
| - |
|
| Long-term promissory note payable |
| $ | 6,500 |
|
| $ | - |
|
On March 31, 2018, the Company issued a promissory note for proceeds of $6,500. The note matures on September 23, 2018 and accrues interest at 1.5% per quarter.
During the year ended May 31, 2018 and 2017, the Company recorded interest expense of $65 and $0, respectively.
NOTE 5 – CONVERTIBLE NOTES
Convertible notes payable at May 31, 2018 and May 31, 2017 consists of the following:
|
|
| May 31, 2018 |
|
| May 31, 2017 |
| ||
| Dated June 6, 2017 |
| $ | 11,000 |
|
| $ | - |
|
| Dated August 4, 2017 |
|
| 7,500 |
|
|
| - |
|
| Dated October 6, 2017 |
|
| 15,000 |
|
|
| - |
|
| Dated March 23, 2018 |
|
| 20,000 |
|
|
| - |
|
| Total convertible notes payable, gross |
|
| 53,500 |
|
|
| - |
|
| Less: Unamortized debt discount |
|
| (12,849 | ) |
|
| - |
|
| Total convertible notes |
| $ | 40,651 |
|
| $ | - |
|
On June 6, 2017, the Company issued a convertible promissory note for proceeds of $11,000. The note matures on December 6, 2017 and accrues interest at 8% per annum. The note is convertible in common stock at 50% discount to the lowest average 20-day trading price. At the Company's election, the convertible promissory note can also be settled by cash payment. The note has not yet been paid, the default interest rate is 15% per annum and is currently in default.
On August 4, 2017, the Company issued a convertible promissory note for proceeds of $7,500. The note matures on February 4, 2018 and accrues interest at 8% per annum. The note is convertible in common stock at 50% discount to the lowest average 20-day trading price. At the Company's election, the convertible promissory note can also be settled by cash payment. The note has not yet been paid, the default interest rate is 15% per annum and is currently in default.
On October 6, 2017, the Company issued a convertible promissory note for proceeds of $15,000. The note matures on April 6, 2018 and accrues interest at 8% per annum. The note is convertible in common stock at 50% discount to the lowest average 20-day trading price. At the Company's election, the convertible promissory note can also be settled by cash payment. The note has not yet been paid, the default interest rate is 15% per annum and is currently in default.
| 20 |
During the year ended May 31, 2018 and 2017, the Company recorded amortization of the note discount from beneficial conversion feature as interest expense of $40,651 and $0, respectively.
During the year ended May 31, 2018 and 2017, the Company recorded interest expense of $3,222 and $0, respectively.
NOTE 6 – RELATED PARTY TRANSACTIONS
Convertible notes
On February 17, 2017, the Company issued a convertible note for $7,500 proceeds. The Company recorded a debt discount related to the beneficial conversion feature of the note for $7,500. The note is convertible in common stock at 50% discount to the lowest average 20-day trading price and was due on August 17, 2017. At the Company's election, the convertible promissory note can also be settled by cash payment. The note has not yet been paid and is currently in default.
During the year ended May 31, 2018 and 2017, the Company recorded amortization of the note discount from beneficial conversion feature as interest expense of $4,268 and $3,232, respectively.
During the year ended May 31, 2018 and 2017, the Company recorded interest expense of $1,006 and $172, respectively.
NOTE 7 – STOCKHOLDERS’ EQUITY
Common Stock
The Company’s authorized common stock consists of 500,000,000 shares with par value of $0.0001. As of May 31, 2018 and May 31, 2017, the issued and outstanding shares of common stock was 9,863,000 and 9,863,000, respectively.
Issuance of Units
On August 22, 2016, we sold a total of 6,000,000 shares of common stock to Stephane Pilon and Pol Bisset for an aggregate of $3,000. Messrs. Pilon and Brisset also received Class A warrants to purchase an aggregate of 3,000,000 shares of our common stock at an exercise price of $0.05 per share and Class B warrants to purchase an aggregate of 3,000,000 shares of our common stock at an exercise price of $0.10 per share. Such warrants expire in five years from the date of issuance and are immediately exercisable on a cashless basis. The entire proceeds have been allocated to common shares.
On September 12, 2016, a private investor exercised warrants to purchase 105,000 shares of common stock for cash at an exercise price of $0.15 per share. The Company received proceeds of $15,750 from this exercise. The entire proceeds have been allocated to common shares.
During the year ended May 31, 2017, the Company issued 150,000 shares of common stock for services provided to the company.
Warrants
The following is a summary of warrants activity during the year ended May 31, 2018.
|
|
| Number of Shares |
|
| Weighted Average Exercise Price |
| ||
| Balance, May 31, 2016 |
|
| 6,317,500 |
|
|
| 0.18 |
|
|
|
|
|
|
|
|
|
|
|
| Warrants granted and assumed |
|
| 6,000,000 |
|
|
| 0.08 |
|
| Warrants expired |
|
| — |
|
|
| — |
|
| Warrants canceled |
|
| — |
|
|
| — |
|
| Warrants exercised |
|
| — |
|
|
| — |
|
|
|
|
|
|
|
|
|
|
|
| Balance, May 31, 2017 |
|
| 12,317,500 |
|
|
| 0.13 |
|
|
|
|
|
|
|
|
|
|
|
| Warrants granted and assumed |
|
| — |
|
|
| — |
|
| Warrants expired |
|
| — |
|
|
| — |
|
| Warrants canceled |
|
| — |
|
|
| — |
|
| Warrants exercised |
|
| — |
|
|
| — |
|
|
|
|
|
|
|
|
|
|
|
| Balance, May 31, 2018 |
|
| 12,317,500 |
|
|
| 0.13 |
|
| 21 |
NOTE 8 – INCOME TAXES
The Company provides for income taxes under ASC 740, “Income Taxes.” Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax basis of assets and liabilities and the tax rates in effect when these differences are expected to reverse. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.
The components of the Company’s deferred tax asset and reconciliation of income taxes computed at the statutory rate to the income tax amount recorded as of May 31, 2018 and May 31, 2017, are as follows:
|
|
| May 31, |
|
| May 31, |
| ||
|
|
| 2018 |
|
| 2017 |
| ||
| Net operating loss carryforward |
| $ | (2,186,984 | ) |
| $ | (1,981,186 | ) |
| Statutory tax rate |
|
| 21 | % |
|
| 34 | % |
| Deferred tax asset |
|
| (459,266 | ) |
|
| (673,603 | ) |
| Less: Valuation allowance |
|
| 459,266 |
|
|
| 673,603 |
|
| Net deferred asset |
| $ | - |
|
| $ | - |
|
As of May 31, 2018 and 2017, the Company had approximately $1.92 and $1.98 million in net operating losses (“NOLs”), respectively that may be available to offset future taxable income, which begin to expire between 2035 and 2038. NOLs generated in tax years prior to May 31, 2018 can be carryforward for twenty years, whereas NOLs generated after May 31, 2018 can be carryforward indefinitely. In accordance with Section 382 of the U.S. Internal Revenue Code, the usage of the Company’s net operating loss carry forwards is subject to annual limitations following greater than 50% ownership changes. Tax returns for the years ended 2018 through 2020 are subject to review by the tax authorities.
NOTE 9 – SUBSEQUENT EVENTS
On December 31, 2018, the Company issued a convertible promissory note for proceeds of $20,000. The note matures on June 30, 2019 and accrues interest at 8% per annum. The note is convertible in common stock at 50% discount to the lowest average 20-day trading price. The note has not yet been paid, the default interest rate is 15% per annum and is currently in default.
On February 15, 2019, the Company issued a convertible promissory note for proceeds of $20,000. The note matures on August 14, 2019 and accrues interest at 8% per annum. The note is convertible in common stock at 50% discount to the lowest average 20-day trading price. The note has not yet been paid, the default interest rate is 15% per annum and is currently in default.
On January 7, 2019, the promissory note issued to the Director of the Company of $7,338 was repaid
On February 11, 2019, the promissory note issued to the Director of the Company of $2,500 was repaid
On September 2, 2021, the Company issued a convertible promissory note for proceeds of $25,000. The note matures on December 2, 2021 and accrues interest at 8% per annum. The note is convertible in common stock at $0.01 per share. The note has not yet been paid and has the default interest rate of 15% per annum.
On November 12, 2021, the holders forgave the balances of certain convertibles notes issued on May 6, 2017, August 4, 2017, and October 6, 2017 amounting to $33,500.
On November 12, 2021, the holders of certain convertibles notes issued on July ,13, 2018, March 23, 2018, December 31, 2018 and February 15, 2019 assigned their balances to a new note holder. On the same date the new noteholder issued new notes in replacement of the assigned notes. Under the new notes the conversion feature was removed, the balances carry no interest and are due upon 10 days written notice.
Subsequent to quarter end, the Company issued various convertible notes amounting to $52,500 for general operating purposes. The notes carry a 10% interest rate and are due upon 10 days written notice.
On March 16, 2022, our board of directors approved changing our corporate name from Brisset Beer International, Inc. to Power Americas Resources Group Ltd.
| 22 |
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
On January 31, 2022, Power Americas Resources Group Ltd. (the “Company”) dismissed Fruci & Associates II, PLLC as Independent Registered Public Accountants. On January 31, 2022, the Board of Directors of the Company authorized the dismissal.
On January 31, 2022, the Company engaged Gries & Associates, LLC (“Gries”) as its new independent registered public accounting firm beginning with the fiscal quarter ending May 31, 2018. The change in the Company’s independent registered public accounting firm was approved by the board of directors.
Item 9A. Controls and Procedures
Disclosure Controls and Procedures
The Company's management, including its chief executive officer and chief financial officer, carried out an evaluation of the effectiveness of the design and operation of its disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), as of May 31, 2018, the date of the Company's most recently completed fiscal year end. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer's management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Based upon our evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were not effective, as of May 31, 2018, in ensuring that material information that we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission rules and forms.
Management's Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting. As defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, internal control over financial reporting is a process designed by, or under the supervision of, a company's principal executive and principal financial officer, and effected by a company's 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.
The Company's internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records, that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the Company's assets; (2) 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 the Company's management and directors; and (3) 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.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
As of May 31, 2018, management assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in Internal Control-Integrated Framework of 2013 issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) and SEC guidance on conducting such assessments. Based on that evaluation under this framework, our management concluded that as of May 31, 2018, our internal control over financial reporting was not effective because of the following material weaknesses:
|
| ● | Due to our small number of employees and resources, we have limited segregation of duties, as a result of which there is insufficient independent review of duties performed. |
|
|
|
|
|
| ● | As a result of the limited number of accounting personnel, we rely on outside consultants for the preparation of our financial reports, including financial statements and management discussion and analysis, which could lead to overlooking items requiring disclosure. |
|
|
|
|
|
| ● | The Company's Board of Directors has two directors and does not have an audit committee or an independent audit committee financial expert. While not being legally obligated to have an audit committee or independent audit committee financial expert, it is the management's view that to have an audit committee, comprised of independent board members, and an independent audit committee financial expert is an important entity-level control over the Company's financial statements. |
| 23 |
A “material weakness” is a deficiency (within the meaning of the Public Company Accounting Oversight Board (PCAOB) auditing standard 5) or 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. Management has determined that a material weakness exists due to the items stated above, resulting from the Company's limited resources and personnel.
Management's Remediation Initiatives
In an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, if and when the Company obtains sufficient capital resources, management intends to hire personnel with sufficient U.S. GAAP knowledge and experience and to segregate appropriate duties among them. We also intend to appoint one or more independent members to our Board of Directors who shall also be appointed to a standing audit committee which will undertake the oversight in the establishment and monitoring of required internal controls and procedures such as reviewing and approving estimates and assumptions made by management. While we are actively seeking outside members, including candidates with accounting experience, we cannot provide any assurance that we will be successful. Given the size of our Company, lack of revenues and current lack of financing to continue with our business, it is unlikely that we will be able to hire any additional personnel or that anyone will agree to join our Board until general economic conditions and our own business prospects improve significantly.
This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the SEC that permit us to provide only management's report in this annual report.
Changes in Internal Controls
No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the fourth quarter ended May 31, 2018, that has materially affected, or is reasonably likely to materially affect, the Company's internal control over financial reporting.
Item 9B. Other Information
None
| 24 |
PART III
Item 10. Directors, Executive Officers, and Corporate Governance
Directors and Executive Officers
| Name |
| Position Held with the Company |
| Age |
| Date First Appointed |
| Stephane Pilon |
| President, Chief Executive Officer, Chief Financial Officer, Principal Accounting Officer, Treasurer, and Director |
| 40 |
| October 21, 2013 |
| Pol Brisset |
| Secretary and Director |
| 41 |
| June 2, 2011 |
Our directors are elected for a term of one year and serve until such director's successor is duly elected and qualified. Each executive officer serves at the pleasure of the Board.
Audit Committee and Financial Expert; Committees
The Company does not have an audit committee. We are not a “listed company” under SEC rules and are therefore not required to have an audit committee comprised of independent directors.
The Company has no nominating or compensation committees at this time. The entire Board participates in the nomination and audit oversight processes and considers executive and director compensation. Given the size of the Company and its stage of development, the entire Board is involved in such decision-making processes. Thus, there is a potential conflict of interest in that our directors and officers have the authority to determine issues concerning management compensation, nominations, and audit issues that may affect management decisions. We are not aware of any other conflicts of interest with any of our executive officers or directors.
Family Relationships
There are no family relationships among our directors or officers.
None of our directors or officers has been affiliated with any company that has filed for bankruptcy within the last ten years. We are not aware of any proceedings to which any of our officers or directors, or any associate of any such officer or director, is a party adverse to our company or has a material interest adverse to it. There are no agreements with respect to the election of directors. Other than as described below, we have not compensated our directors for service on our Board of Directors or reimbursed for expenses incurred for attendance at meetings of our Board of Directors.
Section 16(a) Beneficial Ownership Reporting Compliance
Section 16(a) of the Securities Exchange Act of 1934 requires officers and directors of the Company and persons who own more than ten percent of a registered class of the Company's equity securities to file reports of ownership and changes in their ownership with the Securities and Exchange Commission, and forward copies of such filings to the Company. During the fiscal year ended May 31, 2018, our officers, directors and persons who own more than ten percent of a registered class of our equity securities complied with all applicable Section 16(a) filing requirements.
Code of Ethics
The Company currently has not adopted a Code of Ethics applicable to its principal executive officer and principal accounting and financial officer because of its small size and limited resources and because management's attention has been focused on matters pertaining to raising capital and the operation of the business.
Potential Conflicts of Interest
Since we do not have an audit or compensation committee comprised of independent directors, the functions that would have been performed by such committees are performed by our directors. The Board of Directors has not established an audit committee and does not have an audit committee financial expert, nor has the Board established a nominating committee. The Board is of the opinion that such committees are not necessary since the Company has only two directors, and to date, such directors have been performing the functions of such committees. Thus, there is a potential conflict of interest in that our directors and officers have the authority to determine issues concerning management compensation, nominations, and audit issues that may affect management decisions. We are not aware of any other conflicts of interest with any of our executive officers or directors.
Involvement in Certain Legal Proceedings
There are no legal proceedings that have occurred within the past ten years concerning our directors, or control persons which involved a criminal conviction, a criminal proceeding, an administrative or civil proceeding limiting one's participation in the securities or banking industries, or a finding of securities or commodities law violations.
| 25 |
Item 11. Executive Compensation
The table below sets forth information concerning compensation paid, earned, or accrued by our chief executive officers (each a “Named Executive Officer”) for the last two fiscal years. No executive officer earned compensation in excess of $100,000 during fiscal 2018 or 2017.
SUMMARY COMPENSATION TABLE(1)
| Name and Principal Position |
| Fiscal Year |
| Salary ($) |
|
| All Other Compensation ($)(2) |
|
| Total ($) |
| |||
| Stephane Pilon President, Chief Executive Officer, Chief Financial Officer, Treasurer and Director |
| 2018 |
|
| - |
|
|
| - |
|
|
| - |
|
|
|
| 2017 |
|
| 45,579 | (3) |
|
| - |
|
|
| - |
|
|
|
| 2016 |
|
| 42,353 | (3) |
|
| - |
|
|
| - |
|
| Pol Brisset Secretary and Director |
| 2018 |
|
| - |
|
|
| - |
|
|
| - |
|
|
|
| 2017 |
|
| - |
|
|
| - |
|
|
| - |
|
|
|
| 2016 |
|
| - |
|
|
| - |
|
|
| - |
|
___________
| 1. | We have omitted certain columns in the summary compensation table pursuant to Item 402(a)(5) of Regulation S-K as no compensation was awarded to, earned by, or paid to any of the executive officers or directors required to be reported in that table or column in any fiscal year covered by that table. |
|
|
|
| 2. | The “All Other Compensation” column is used to disclose the aggregate amount of all compensation that the Company could not properly report in any other column of the Summary Compensation Table (with a limited exceptions). |
|
|
|
| 3. | Represents accrued salary. |
Outstanding Equity Awards
None.
Compensation of Directors
No compensation has been paid to any of our directors in consideration for services rendered in their capacities as directors during fiscal year 2018.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
The following table lists, as of the date of this Annual Report, the number of shares of common stock of the Company beneficially owned by (i) each person or entity known to the Company to be the beneficial owner of more than 5% of the outstanding common stock; (ii) each executive officer and director of the Company; and (iii) all officers and directors as a group. Information relating to beneficial ownership of common stock by our principal stockholders and management is based upon information furnished by each person using “beneficial ownership” concepts under the rules of the Securities and Exchange Commission. Under these rules, a person is deemed to be a beneficial owner of a security if that person has or shares voting power, which includes the power to vote or direct the voting of the security, or investment power, which includes the power to vote or direct the voting of the security. The person is also deemed to be a beneficial owner of any security of which that person has a right to acquire beneficial ownership within 60 days. Under the Securities and Exchange Commission rules, more than one person may be deemed to be a beneficial owner of the same securities, and a person may be deemed to be a beneficial owner of securities as to which he or she may not have any pecuniary beneficial interest. Except as noted below, each person has sole voting and investment power.
| 26 |
The percentages below are calculated based on 9,863,000 shares of common stock which are issued and outstanding as of the date of this Annual Report.
| Name of Beneficial Owner |
| Number of Shares Beneficially Owned |
|
| Percentage |
| ||
| Directors and Officers: |
|
|
|
|
|
| ||
| Stephane Pilon -President, Chief Executive, Chief Financial Officer, Treasurer, and Director (Principal Executive, Financial, and Accounting Officer) |
|
| 3,750,000 |
|
|
| 38.02 | % |
|
|
|
|
|
|
|
|
|
|
| Pol Brisset -Secretary and Director |
|
| 3,811,000 |
|
|
| 38.63 | % |
|
|
|
|
|
|
|
|
|
|
| All officers and directors as a group (2 persons) |
|
| 7,561,000 |
|
|
| 76.66 | % |
|
|
|
|
|
|
|
|
|
|
| 5% Stockholders: |
|
|
|
|
|
|
|
|
| None |
|
|
|
|
|
|
|
|
Item 13. Certain Relationships and Related Transactions, and Director Independence
Related Party Transactions
None of the directors or executive officers of the Company, nor any person who owned of record or was known to own beneficially more than 5% of the Company’s outstanding shares of its common stock, nor any associate or affiliate of such persons or companies, has any material interest, direct or indirect, in any transaction that has occurred during the past two fiscal years, or in any proposed transaction, which has materially affected or will affect the Company.
With regard to any future related party transaction, we plan to fully disclose any and all related party transactions in the following manner:
| ● | Disclosing such transactions in reports where required; | |
| ● | Disclosing in any and all filings with the SEC, where required; | |
| ● | Obtaining disinterested directors’ consent; and, | |
| ● | Obtaining shareholder consent where required. |
Director Independence
For purposes of determining director independence, we have applied the definitions set out in NASDAQ Rule 5605(a)(2). The OTCBB on which shares of the Company’s Common Stock are quoted does not have any director independence requirements. The NASDAQ definition of “Independent Director” means a person other than an Executive Officer or employee or any other individual having a relationship, which, in the opinion of the Board of Directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.
According to the NASDAQ definition, we have no independent directors.
Item 14. Principal Accounting Fees and Services
On January 31, 2022, the Company engaged Gries & Associates, LLC (“Gries”) as its new independent registered public accounting firm beginning with the fiscal quarter ending May 31, 2018. The change in the Company’s independent registered public accounting firm was approved by the board of directors.
Fees billed to the Company by its independent registered public accounting firm Gries & Associates, LLC, Certified Public Accountants, 501 S. Cherry Street Ste 1100 Denver, Colorado 80246, for the fiscal years ending May 31, 2018, and 2017, are set forth below:
|
|
| Fiscal year ended May 31, |
| |||||
|
|
| 2018 |
|
| 2017 |
| ||
| Audit Fees |
| $ | 5,000 |
|
| $ | - |
|
| Audit Related Fees |
|
| - |
|
|
| - |
|
| Tax Fees |
|
| - |
|
|
| - |
|
| All Other Fees |
|
| - |
|
|
| - |
|
| 27 |
Item 15. Exhibits
| EXHIBIT NUMBER |
|
DESCRIPTION |
|
|
|
|
|
|
| |
|
|
| |
| Certification of Principal Executive Officer pursuant to Rule 13a-14(a)/15d-14(a)(3) | ||
|
|
| |
| Certification of Principal Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)(3) | ||
|
|
| |
|
|
| |
|
|
| |
| 101.INS* | XBRL Instance Document | |
|
|
| |
| 101.SCH* | XBRL Schema Document | |
|
|
| |
| 101.CAL* | XBRL Calculation Linkbase Document | |
|
|
| |
| 101.DEF* | XBRL Definition Linkbase Document | |
|
|
| |
| 101.LAB* | XBRL Label Linkbase Document | |
|
|
| |
| 101.PRE* | XBRL Presentation Linkbase Document |
____________
|
| (1) | Previously filed as an Appendix to the Company's Information Statement on Schedule 14C filed with the SEC on June 24, 2014. |
|
| (2) | Previously filed as Exhibit 4.1 to Registration Statement, filed with the Securities and Exchange Commission on July 1, 2010, file no. 333-167917 |
|
| (3) | Filed Herewith |
* Filed Herewith. Pursuant to Regulation S-T, this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections.
| 28 |
SIGNATURES
In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
| Power Americas Resources Group Ltd. |
| |
|
|
|
| |
| Date: July 29, 2022 | By: | /s/ Kevin Malone |
|
|
| Name: | Kevin Malone |
|
|
| Title: | Chief (Principal) Executive Officer, Chief Financial Officer (Principal Accounting Officer) and Director |
|
In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
|
| Power Americas Resources Group Ltd. |
| |
|
|
|
| |
| Date: July 29, 2022 | By: | /s/ Kevin Malone |
|
|
| Name: | Kevin Malone |
|
|
| Title: | Chief (Principal) Executive Officer, Chief Financial Officer (Principal Accounting Officer) and Director |
|
| 29 |
EXHIBIT 31.1
CERTIFICATION
I, Kevin Malone, certify that:
| 1. | I have reviewed this Annual Report on Form 10-K of POWER AMERICAS RESOURCES GROUP LTD. for the year ended May 31, 2018; |
|
|
|
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
|
|
|
| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
|
|
|
| 4. | I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have: |
|
| (a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others, particularly during the period in which this report is being prepared; |
|
|
|
|
|
| (b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
|
|
|
|
|
| (c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
|
|
|
|
|
| (d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. | I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function): |
|
| a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
|
|
|
|
|
| b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
|
| Power Americas Resources Group Ltd. |
| |
|
|
|
| |
| Date: July 29, 2022 | By: | /s/ Kevin Malone |
|
|
| Name: | Kevin Malone |
|
|
| Title: | Chief (Principal) Executive Officer, Chief Financial Officer and Director |
|
EXHIBIT 31.2
CERTIFICATION
I, Kevin Malone, certify that:
| 1. | I have reviewed this Annual Report on Form 10-K of POWER AMERICAS RESOURCES GROUP LTD. for the year ended May 31, 2018; |
|
|
|
| 2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
|
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| 3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
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| 4. | I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have: |
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| (a) | designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant is made known to us by others, particularly during the period in which this report is being prepared; |
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| (b) | designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
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| (c) | evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
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| (d) | disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
| 5. | I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent function): |
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| a) | all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
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| b) | any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
| Date: July 29, 2022 |
| /s/ Kevin Malone |
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| Kevin Malone |
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| Chief Financial Officer (principal financial and accounting officer) |
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EXHIBIT 32.1
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Annual Report of POWER AMERICAS RESOURCES GROUP LTD. (the “Company”) on Form 10-K for the year ended May 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kevin Malone, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 906 of the Sarbanes-Oxley Act of 2002, that:
| (1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and |
| (2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
| Date: July 29, 2022 |
| /s/ Kevin Malone |
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| Kevin Malone |
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| Chief Executive Officer (principal executive officer) |
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EXHIBIT 32.2
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
In connection with the Annual Report of POWER AMERICAS RESOURCES GROUP LTD. (the “Company”) on Form 10-K for the year ended May 31, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Kevin Malone, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 906 of the Sarbanes-Oxley Act of 2002, that:
| (1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and |
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| (2) | The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company. |
A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.
| Date: July 29, 2022 |
| /s/ Kevin Malone |
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| Kevin Malone |
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| Chief Executive Officer (principal executive officer) |
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