PART II AND III 2 ex00.htm OFFERING CIRCULAR

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 1-A/A

 

( Amendment No. 2 )

 

Dated: June 5, 2023

 

REGULATION A OFFERING CIRCULAR UNDER THE SECURITIES ACT OF 1933

 

Labwire, Inc.
(Exact name of issuer as specified in its charter)

 

Nevada
(State of other jurisdiction of incorporation or organization)

 

6015 N 43rd Ave

Phoenix, AZ 85019

(928) 719-7747
(Address, including zip code, and telephone number,
including area code of issuer’s principal executive office)

 

Jeff Turner
897 W Baxter Dr.

South Jordan, UT 84095

801-810-4465
(Name, address, including zip code, and telephone number,
including area code, of agent for service)

 

5411

 

37-1501818

(Primary Standard Industrial
Classification Code Number)

 

(I.R.S. Employer
Identification Number)

 

This Preliminary Offering Circular shall only be qualified upon order of the Commission, unless a subsequent amendment is filed indicating the intention to become qualified by operation of the terms of Regulation A.

 

This amended Offering Circular is following the Offering Circular format described in Part II (a)(1)(ii) of Form 1-A/A. The amended Offering Circular expands the disclosures and discussion regarding the results of operations for Cessil Company, our newly acquired wholly owned and operating subsidiary.

 

 

 

 

 

 

PART II – PRELIMINARY OFFERING CIRCULAR - FORM 1-A/A: TIER I

  

An Offering statement pursuant to Regulation A relating to these securities has been filed with the Securities and Exchange Commission. Information contained in this Preliminary Offering Circular is subject to completion or amendment. These securities may not be sold nor may offers to buy be accepted before the Offering statement filed with the Securities and Exchange Commission is qualified. This Preliminary Offering Circular shall not constitute an offer to sell or the solicitation of an offer to buy nor may there be any sales of these securities in any state in which such offer, solicitation or sale would be unlawful before registration or qualification under the laws of any such state. We may elect to satisfy our obligation to deliver a Final Offering circular by sending you a notice within two business days after the completion of our sale to you that contains the URL where the Final Offering Circular or the Offering statement in which such Final Offering Circular was filed may be obtained.


 

 

PRELIMINARY OFFERING CIRCULAR

 

Dated: June 5, 2023

 

Subject to Completion

PURSUANT TO REGULATION A OF THE SECURITIES ACT OF 1933

 

Labwire, Inc.

6015 N 43rd Ave

Phoenix, AZ 85019 

 

800,000,000 Shares of Common Stock

at a price range of $0.005 to $0.02 per Share

Minimum Investment: $1,000

Maximum Offering: $16,000,000

 

See The Offering - Page 9 and Securities Being Offered - Page 29 for further details. None of the securities offered are being sold by present security holders. This Offering will commence upon qualification of this Offering by the Securities and Exchange Commission and will terminate 365 days from the date of qualification by the Securities and Exchange Commission, unless extended or terminated earlier by the Company.

 

PLEASE REVIEW ALL RISK FACTORS ON PAGES 3 THROUGH PAGE 17 BEFORE MAKING AN INVESTMENT IN THIS COMPANY. AN INVESTMENT IN THIS COMPANY SHOULD ONLY BE MADE IF YOU ARE CAPABLE OF EVALUATING THE RISKS AND MERITS OF THIS INVESTMENT AND IF YOU HAVE SUFFICIENT RESOURCES TO BEAR THE ENTIRE LOSS OF YOUR INVESTMENT, SHOULD THAT OCCUR.

 

THE UNITED STATES SECURITIES AND EXCHANGE COMMISSION DOES NOT PASS UPON THE MERITS OF OR GIVE ITS APPROVAL TO ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SELLING LITERATURE. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE COMMISSION; HOWEVER, THE COMMISSION HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED HEREUNDER ARE EXEMPT FROM REGISTRATION.

 

Because these securities are being offered on a “best efforts” basis, the following disclosures are hereby made:

 

 

 

Price to Public

 

 

Commissions (1)

 

 

Proceeds to 
Company (2)

 

 

Proceeds to 
Other Persons (3)

 

Per Share

 

$

TBD

 

 

$

             0

 

 

$

TBD

 

 

 

None

 

Minimum Investment

 

$

1,000

 

 

$

0

 

 

$

1,000

 

 

 

None

 

Maximum Offering

 

$

16,000,000

 

 

$

0

 

 

$

16,000,000

 

 

 

None

 

 

 

(1)

The Company has not presently engaged an underwriter for the sale of securities under this Offering.

 

(2)

Does not reflect payment of expenses of this Offering, which are estimated to not exceed $25,000.00 and which include, among other things, legal fees, accounting costs, reproduction expenses, due diligence, marketing, consulting, administrative services other costs of blue-sky compliance, and actual out-of-pocket expenses incurred by the Company selling the Shares. This amount represents the proceeds of the offering to the Company, which will be used as set out in “USE OF PROCEEDS TO ISSUER.”

 

(3)

There are no finder’s fees or other fees being paid to third parties from the proceeds. See ‘PLAN OF DISTRIBUTION.’

 

(4)

Assumes a maximum offering price of $0.02 per share.

 

This Offering (the “Offering”) consists of Common Stock (the “Shares” or individually, each a “Share”) that is being offered on a “best efforts” basis, which means that there is no guarantee that any minimum amount will be sold. The Shares are being offered and sold by Labwire, Inc., a Nevada corporation (the “Company”). We are offering up to 800,000,000 Shares being offered at a price to be determined after qualification pursuant to Rule 253(b). We have provided a bona fide estimate of $0.005-$0.02 per Share. This Offering has a minimum purchase of $1,000 per investor. We may waive the minimum purchase requirement on a case-by-case basis at our sole discretion. The Shares are being offered only by the Company on a best-efforts basis to an unlimited number of accredited investors and to an unlimited number of non-accredited investors subject to the limitations of Regulation A. Under Rule 251(d)(2)(i)(C) of Regulation A+, non-accredited, non-natural investors are subject to the investment limitation and may only invest funds which do not exceed 10% of the greater of the purchaser’s revenue or net assets (as of the purchaser’s most recent fiscal year end). A non-accredited, natural


person may only invest funds which do not exceed 10% of the greater of the purchaser’s annual income or net worth (please see below on how to calculate your net worth). The maximum aggregate amount of the Shares that will be offered is 800,000,000 Shares of Common Stock with a Maximum Offering of 16,000,000. There is no minimum number of Shares that needs to be sold in order for funds to be released to the Company and for this Offering to close.

 

Our Common Stock is currently quoted on the OTC Pink tier of the OTC Market Group, Inc. under the symbol “LBWR”. On April 3, 2023, the last reported sale price of our common stock was $0.0127.

 

The Shares are being offered pursuant to Regulation A of Section 3(b) of the Securities Act of 1933, as amended, for Tier 1 offerings. The Shares will only be issued to purchasers who satisfy the requirements set forth in Regulation A. The offering is expected to expire on the first of: (i) all of the Shares offered are sold; or (ii) the close of business 365 days from the date of qualification by the Commission, unless sooner terminated or extended by the Company’s CEO. Pending each closing, payments for the Shares will be paid directly to the Company. Funds will be immediately transferred to the Company where they will be available for use in the operations of the Company’s business in a manner consistent with the “USE OF PROCEEDS TO ISSUER” in this Offering Circular.

 

THIS OFFERING CIRCULAR DOES NOT CONSTITUTE AN OFFER OR SOLICITATION IN ANY JURISDICTION IN WHICH SUCH AN OFFER OR SOLICITATION WOULD BE UNLAWFUL. NO PERSON HAS BEEN AUTHORIZED TO GIVE ANY INFORMATION OR TO MAKE ANY REPRESENTATIONS CONCERNING THE COMPANY OTHER THAN THOSE CONTAINED IN THIS OFFERING CIRCULAR, AND IF GIVEN OR MADE, SUCH OTHER INFORMATION OR REPRESENTATION MUST NOT BE RELIED UPON.

 

PROSPECTIVE INVESTORS ARE NOT TO CONSTRUE THE CONTENTS OF THIS OFFERING CIRCULAR, OR OF ANY PRIOR OR SUBSEQUENT COMMUNICATIONS FROM THE COMPANY OR ANY OF ITS EMPLOYEES, AGENTS OR AFFILIATES, AS INVESTMENT, LEGAL, FINANCIAL OR TAX ADVICE.

 

GENERALLY, NO SALE MAY BE MADE TO YOU IN THIS OFFERING IF THE AGGREGATE PURCHASE PRICE YOU PAY IS MORE THAN 10% OF THE GREATER OF YOUR ANNUAL INCOME OR NET WORTH. DIFFERENT RULES APPLY TO ACCREDITED INVESTORS AND NON-NATURAL PERSONS. BEFORE MAKING ANY REPRESENTATION THAT YOUR INVESTMENT DOES NOT EXCEED APPLICABLE THRESHOLDS, WE ENCOURAGE YOU TO REVIEW RULE 251(d)(2)(i)(C) OF REGULATION A. FOR GENERAL INFORMATION ON INVESTING, WE ENCOURAGE YOU TO REFER TO WWW.INVESTOR.GOV (WHICH IS NOT INCORPORATED BY REFERENCE INTO THIS OFFERING CIRCULAR).

 

This Offering is inherently risky. See “Risk Factors” beginning on page 3.

 

Sales of these securities will commence within two calendar days of the qualification date and the filing of a Form 253(g)(2) Offering Circular AND it will be a continuous Offering pursuant to Rule 251(d)(3)(i)(F).

 

The Company is following the “Offering Circular” format of disclosure under Regulation A.

 

AN OFFERING STATEMENT PURSUANT TO REGULATION A RELATING TO THESE SECURITIES HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION. INFORMATION CONTAINED IN THIS PRELIMINARY OFFERING CIRCULAR IS SUBJECT TO COMPLETION OR AMENDMENT. THESE SECURITIES MAY NOT BE SOLD NOR MAY OFFERS TO BUY BE ACCEPTED BEFORE THE OFFERING STATEMENT FILED WITH THE COMMISSION IS QUALIFIED. THIS PRELIMINARY OFFERING CIRCULAR SHALL NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR MAY THERE BE ANY SALES OF THESE SECURITIES IN ANY STATE IN WHICH SUCH OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL BEFORE REGISTRATION OR QUALIFICATION UNDER THE LAWS OF SUCH STATE. THE COMPANY MAY ELECT TO SATISFY ITS OBLIGATION TO DELIVER A FINAL OFFERING CIRCULAR BY SENDING YOU A NOTICE WITHIN TWO BUSINESS DAYS AFTER THE COMPLETION OF THE COMPANY’S SALE TO YOU THAT CONTAINS THE URL WHERE THE FINAL OFFERING CIRCULAR OR THE OFFERING STATEMENT IN WHICH SUCH FINAL OFFERING CIRCULAR WAS FILED MAY BE OBTAINED.


 

NASAA UNIFORM LEGEND

 

FOR RESIDENTS OF ALL STATES: THE PRESENCE OF A LEGEND FOR ANY GIVEN STATE REFLECTS ONLY THAT A LEGEND MAY BE REQUIRED BY THAT STATE AND SHOULD NOT BE CONSTRUED TO MEAN AN OFFER OR SALE MAY BE MADE IN A PARTICULAR STATE. IF YOU ARE UNCERTAIN AS TO WHETHER OR NOT OFFERS OR SALES MAY BE LAWFULLY MADE IN ANY GIVEN STATE, YOU ARE HEREBY ADVISED TO CONTACT THE COMPANY. THE SECURITIES DESCRIBED IN THIS OFFERING CIRCULAR HAVE NOT BEEN REGISTERED UNDER ANY STATE SECURITIES LAWS (COMMONLY CALLED ‘BLUE SKY’ LAWS). THE ISSUER HAS FILED AN APPLICATION TO REGISTER THE SECURITIES BY QUALIFICATION IN THE STATES OF COLORADO, NEW YORK, WYOMING.

 

IN MAKING AN INVESTMENT DECISION INVESTORS MUST RELY ON THEIR OWN EXAMINATION OF THE PERSON OR ENTITY CREATING THE SECURITIES AND THE TERMS OF THE OFFERING, INCLUDING THE MERITS AND RISKS INVOLVED. THESE SECURITIES HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS DOCUMENT. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

  

NOTICE TO FOREIGN INVESTORS

 

IF THE PURCHASER LIVES OUTSIDE THE UNITED STATES, IT IS THE PURCHASER’S RESPONSIBILITY TO FULLY OBSERVE THE LAWS OF ANY RELEVANT TERRITORY OR JURISDICTION OUTSIDE THE UNITED STATES IN CONNECTION WITH ANY PURCHASE OF THE SECURITIES, INCLUDING OBTAINING REQUIRED GOVERNMENTAL OR OTHER CONSENTS OR OBSERVING ANY OTHER REQUIRED LEGAL OR OTHER FORMALITIES. THE COMPANY RESERVES THE RIGHT TO DENY THE PURCHASE OF THE SECURITIES BY ANY FOREIGN PURCHASER.

 

PATRIOT ACT RIDER

 

The Investor hereby represents and warrants that Investor is not, nor is it acting as an agent, representative, intermediary or nominee for, a person identified on the list of blocked persons maintained by the Office of Foreign Assets Control, U.S. Department of Treasury. In addition, the Investor has complied with all applicable U.S. laws, regulations, directives, and executive orders relating to anti-money laundering , including but not limited to the following laws: (1) the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56, and (2) Executive Order 13224 (Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism) of September 23, 2001.

 

NO DISQUALIFICATION EVENT (“BAD ACTOR” DECLARATION)

 

NONE OF THE COMPANY, ANY OF ITS PREDECESSORS, ANY AFFILIATED ISSUER, ANY DIRECTOR, EXECUTIVE OFFICER, OTHER OFFICER OF THE COMPANY PARTICIPATING IN THE OFFERING CONTEMPLATED HEREBY, ANY BENEFICIAL OWNER OF 20% OR MORE OF THE COMPANY’S OUTSTANDING VOTING EQUITY SECURITIES, CALCULATED ON THE BASIS OF VOTING POWER, NOR ANY PROMOTER (AS THAT TERM IS DEFINED IN RULE 405 UNDER THE SECURITIES ACT OF 1933) CONNECTED WITH THE COMPANY IN ANY CAPACITY AT THE TIME OF SALE (EACH, AN “ISSUER COVERED PERSON”) IS SUBJECT TO ANY OF THE “BAD ACTOR” DISQUALIFICATIONS DESCRIBED IN RULE 506(D)(1)(I) TO (VIII) UNDER THE SECURITIES ACT OF 1933 (A “DISQUALIFICATION EVENT”), EXCEPT FOR A DISQUALIFICATION EVENT COVERED BY RULE 506(D)(2) OR (D)(3) UNDER THE SECURITIES ACT. THE COMPANY HAS EXERCISED REASONABLE CARE TO DETERMINE WHETHER ANY ISSUER COVERED PERSON IS SUBJECT TO A DISQUALIFICATION EVENT.

 

Continuous Offering

 

Under Rule 251(d)(3) to Regulation A, the following types of continuous or delayed Offerings are permitted, among others: (1) securities offered or sold by or on behalf of a person other than the issuer or its subsidiary or a person of which the issuer is a subsidiary; (2) securities issued upon conversion of other outstanding securities; or (3) securities that are part of an Offering which commences within two calendar days after the qualification date. These may be offered on a continuous basis and may continue to be offered for a period in excess of 30 days from the date of initial qualification. They may be offered in an amount that, at the time the Offering statement is qualified, is reasonably expected to be offered and sold within one year from the initial qualification date. No securities will be offered or sold “at the market.” The Shares will be sold at a fixed price to be determined after qualification. We have provided a bona fide estimate of the price range of the Offering, pursuant to Rule 253(b)(2). The Offering Price will be filed by the Company via an offering circular supplement pursuant to Rule 253(c). The supplement will not, in the aggregate, represent any change from the maximum aggregate Offering Price calculable using the information in the qualified Offering statement. This information will be filed no later


than two business days following the earlier of the date of determination of such pricing information or the date of first use of the Offering Circular after qualification.

 

 Sale of these shares will commence within two calendar days of the qualification date, and it will be a continuous Offering pursuant to Rule 251(d)(3)(i)(F).

 

Subscriptions are irrevocable and the purchase price is non-refundable as expressly stated in this Offering Circular. The Company, by determination of the Board of Directors, in its sole discretion, may issue the Securities under this Offering for cash, promissory notes, services, and/or other consideration without notice to subscribers. All proceeds received by the Company from subscribers for this Offering will be available for use by the Company upon acceptance of subscriptions for Securities by the Company.

 

Forward Looking Statement Disclosure

 

This Form 1-A/A, Offering Circular, and any documents incorporated by reference herein or therein contain forward-looking statements and are subject to risks and uncertainties. All statements other than statements of historical fact or relating to present facts or current conditions included in this Form 1-A/A, Offering Circular, and any documents incorporated by reference are forward-looking statements. Forward-looking statements give the Company’s current reasonable expectations and projections relating to its financial condition, results of operations, plans, objectives, future performance, and business. You can identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. These statements may include words such as ‘anticipate,’ ‘estimate,’ ‘expect,’ ‘project,’ ‘plan,’ ‘intend,’ ‘believe,’ ‘may,’ ‘should,’ ‘can have,’ ‘likely’ and other words and terms of similar meaning in connection with any discussion of the timing or nature of future operating or financial performance or other events. The forward-looking statements contained in this Form 1-A/A, Offering Circular, and any documents incorporated by reference herein or therein are based on reasonable assumptions the Company has made in light of its industry experience, perceptions of historical trends, current conditions, expected future developments and other factors it believes are appropriate under the circumstances. As you read and consider this Form 1-A/A, Offering Circular, and any documents incorporated by reference, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (many of which are beyond the Company’s control) and assumptions. Although the Company believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect its actual operating and financial performance and cause its performance to differ materially from the performance anticipated in the forward-looking statements. Should one or more of these risks or uncertainties materialize or should any of these assumptions prove incorrect or change, the Company’s actual operating and financial performance may vary in material respects from the performance projected in these forward- looking statements. Any forward-looking statement made by the Company in this Form 1-A/A, Offering Circular or any documents incorporated by reference herein speaks only as of the date of this Form 1-A/A, Offering Circular or any documents incorporated by reference herein. Factors or events that could cause our actual operating and financial performance to differ may emerge from time to time, and it is not possible for the Company to predict all of them. The Company undertakes no obligation to update any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

 

About This Form 1-A/A and Offering Circular

 

In making an investment decision, you should rely only on the information contained in this Form 1-A/A and Offering Circular. The Company has not authorized anyone to provide you with information different from that contained in this Form 1-A/A and Offering Circular. We are offering to sell, and seeking offers to buy the Shares only in jurisdictions where offers and sales are permitted. You should assume that the information contained in this Form 1-A/A and Offering Circular is accurate only as of the date of this Form 1-A/A and Offering Circular, regardless of the time of delivery of this Form 1-A/A and Offering Circular. Our business, financial condition, results of operations, and prospects may have changed since that date. The statements contained herein as to the content of any agreements or other documents are summaries and, therefore, are necessarily selective and incomplete and are qualified in their entirety by the actual agreements or other documents.


 

 

TABLE OF CONTENTS

 

 

Page

 

 

OFFERING SUMMARY, PERKS AND RISK FACTORS

13

Offering Circular Summary

13

The Offering

15

Investment Analysis

15

RISK FACTORS

15

DILUTION

21

PLAN OF DISTRIBUTION

22

USE OF PROCEEDS TO ISSUER

23

DESCRIPTION OF BUSINESS

23

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

25

DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES

27

COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS

28

SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS

29

INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS

30

DESCRIPTION OF SECURITIES

30

SECURITIES BEING OFFERED

30

DISQUALIFYING EVENTS DISCLOSURE

31

ERISA CONSIDERATIONS

32

SHARES ELIGIBLE FOR FUTURE SALE

33

INVESTOR ELIGIBILITY STANDARDS & ADDITIONAL INFORMATION ABOUT THE OFFERING

34

WHERE YOU CAN FIND MORE INFORMATION

35

SIGNATURES

37

INDEX TO EXHIBITS

III-1

PART F/S FINANCIAL STATEMENTS

F-1

 

i


 

OFFERING CIRCULAR SUMMARY, PERKS AND RISK FACTORS

 

OFFERING CIRCULAR SUMMARY

 

The following summary is qualified in its entirety by the more detailed information appearing elsewhere in this Offering Circular and/or incorporated by reference in this Offering Circular. For full offering details, please (1) thoroughly review this Form 1-A/A filed with the Securities and Exchange Commission (2) thoroughly review this Offering Circular and (3) thoroughly review any attached documents to or documents referenced in, this Form 1-A/A and Offering Circular.

 

Unless otherwise indicated, the terms “Labwire” “LBWR,” “the Company,” we,” “our,” and “us” are used in this Offering Circular to refer to Labwire, Inc. and its subsidiaries.

 

Business Overview

 

Labwire, Inc., a Nevada corporation, which operates primarily through its subsidiary, Cessil Company. Cessil is an Arizona based operator of several $0.99 cent stores.

 

For a further description of the Company and its plan of operations, see the section entitled “Description of Business” beginning on Page 13.

 

Issuer:

Labwire, Inc.

 

 

Type of Stock Offering:

Common Stock

 

 

Price Per Share:

To be determined after qualification. We have provided a bona fide estimate of the expected range of the price per share of $0.005-0.02.

 

 

Minimum Investment:

$1,000 per investor. We may waive the minimum purchase requirement on a case-by-case basis in our sole discretion.

 

 

Maximum Offering:

$16,000,000. The Company will not accept investments that would be, in aggregate, greater than the Maximum Offering amount.

 

 

Maximum Shares Offered:

800,000,000 Shares of Common Stock

 

 

Investment Amount Restrictions:

Generally, no sale may be made to you in this offering if the aggregate purchase price you pay is more than 10% of the greater of your annual income or net worth. Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(c) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.

 

 

Method of Subscription:

After the qualification by the SEC of the Offering Statement of which this Offering Circular is a part, investors can subscribe to purchase the Shares by completing the Subscription Agreement and sending payment by check, wire transfer, ACH, credit card, or any other payment method accepted by the Company.  Upon the approval of any subscription, the Company shall immediately deposit said proceeds into the bank account of the Company and may dispose of the proceeds in accordance with the Use of Proceeds.  Subscriptions are irrevocable and the purchase price is non-refundable.

 

 

Use of Proceeds:

See the description in the section entitled “USE OF PROCEEDS TO ISSUER” on page 12 herein.

 

 

Voting Rights:

The Shares have full voting rights.

 

 

Trading Symbols:

Our common stock is directly quoted on the OTC Pink tier of the OTC Market Group, Inc. under the symbol “LBWR”.

 

 

Transfer Agent and Registrar:

Pacific Stock Transfer Co. is our transfer agent and registrar in connection with the Offering.

 

 

Length of Offering:

Shares will be offered on a continuous basis until either (1) the maximum number of Shares are sold; (2) 365 days from the date of qualification by the Commission; (3) the Company in its sole discretion extends the offering beyond 365 days from the date of qualification by the Commission, or (4) the Company in its sole discretion withdraws this Offering.

 


 

 

The Offering

 

Common Stock Outstanding (1)

 

179,199,001 Shares

 

Common Stock in this Offering

 

  800,000,000 Shares

 

Stock to be outstanding after the offering (2)

 

979,199,001 Shares

 

 

 

(1)

As of the date of this Offering Circular.

 

(2)

The total number of Shares of Common Stock assumes that the maximum number of Shares are sold in this Offering. The Company may not be able to sell the Maximum Offering Amount. The Company will conduct one or more closings on a rolling basis as funds are received from investors.

 

Investment Analysis

 

There is no assurance the Company will be profitable, or that management’s opinion of the Company’s future prospects will not be outweighed by the unanticipated losses, adverse regulatory developments and other risks. Investors should carefully consider the various risk factors below before investing in the Shares.

 

RISK FACTORS

 

The purchase of the Company’s Common Stock involves substantial risks. You should carefully consider the following risk factors in addition to any other risks associated with this investment. The Shares offered by the Company constitute a highly speculative investment and you should be in an economic position to lose your entire investment. The risks listed do not necessarily comprise all those associated with an investment in the Shares and are not set out in any particular order of priority. Additional risks and uncertainties may also have an adverse effect on the Company’s business and your investment in the Shares. An investment in the Company may not be suitable for all recipients of this Offering Circular. You are advised to consult an independent professional adviser or attorney who specializes in investments of this kind before making any decision to invest. You should consider carefully whether an investment in the Company is suitable in the light of your personal circumstances and the financial resources available to you.

 

The discussions and information in this Offering Circular may contain both historical and forward- looking statements. To the extent that the Offering Circular contains forward-looking statements regarding the financial condition, operating results, business prospects, or any other aspect of the Company’s business, please be advised that the Company’s actual financial condition, operating results, and business performance may differ materially from that projected or estimated by the Company in forward-looking statements. The Company has attempted to identify, in context, certain of the factors it currently believes may cause actual future experience and results may differ from the Company’s current expectations.

 

Before investing, you should carefully read and carefully consider the following risk factors:

 

Risks Related to the Company and Its Business

 

We have a limited operating history.

 

Our operating history is limited. There can be no assurance that our proposed plan of business can be realized in the manner contemplated and, if it cannot be, shareholders may lose all or a substantial part of their investment. There is no guarantee that we will ever realize any significant operating revenues or that our operations will ever be profitable.

 

We are dependent upon management, key personnel, and consultants to execute our business plan.

 

Our success is heavily dependent upon the continued active participation of our current management team, Shin Hwang and Bob Welty. The loss of any one of these individuals could have a material adverse effect upon our business, financial condition, or results of operations. Further, our success and the achievement of our growth plans depends on our ability to recruit, hire, train, and retain other highly qualified technical and managerial personnel. Competition for qualified employees among companies in our industry, and the loss of any of such persons, or an inability to attract, retain, and motivate any additional highly skilled employees required for the expansion of our activities, could have a materially adverse effect on our business. If we are unable to attract and retain the necessary personnel, consultants, and advisors, it could have a material adverse effect on our business, financial condition, or operations.

 


Although we are dependent upon certain key personnel, we do not have any key man life insurance policies on any such people.

 

We are dependent upon management in order to conduct our operations and execute our business plan; however, we have not purchased any insurance policies with respect to those individuals in the event of their death or disability. Therefore, should any of those key personnel, management, or founders die or become disabled, we will not receive any compensation that would assist with any such person’s absence. The loss of any such person could negatively affect our business and operations.

 

We are subject to income taxes as well as non-income-based taxes, such as payroll, sales, use, value-added, net worth, property, and goods and services taxes.

 

Significant judgment is required in determining our provision for income taxes and other tax liabilities. In the ordinary course of our business, there are many transactions and calculations where the ultimate tax determination is uncertain. Although we believe that our tax estimates will be reasonable: (i) there is no assurance that the final determination of tax audits or tax disputes will not be different from what is reflected in our income tax provisions, expense amounts for non-income based taxes and accruals and (ii) any material differences could have an adverse effect on our financial position and results of operations in the period or periods for which determination is made.

 

We are not subject to Sarbanes-Oxley regulation and lack the financial controls and safeguards required of public companies.

 

We do not have the internal infrastructure necessary, and are not required to complete an attestation about our financial controls that would be required under Section 404 of the Sarbanes-Oxley Act of 2002. There can be no assurances that there are no significant deficiencies or material weaknesses in the quality of our financial controls. We expect to incur additional expenses and diversion of management’s time if and when it becomes necessary to perform the system and process evaluation, testing, and remediation required in order to comply with the management certification and auditor attestation requirements.

 

Changes in employment laws or regulations could harm our performance.

 

Various federal and state labor laws govern the Company’s relationship with our employees and affect operating costs, including labor laws of non-USA jurisdictions. These laws may include minimum wage requirements, overtime pay, healthcare reform and the implementation of various federal and state healthcare laws, unemployment tax rates, workers’ compensation rates, citizenship requirements, union membership and sales taxes. A number of factors could adversely affect our operating results, including additional government-imposed increases in minimum wages, overtime pay, paid leaves of absence and mandated health benefits, mandated training for employees, changing regulations from the National Labor Relations Board and increased employee litigation including claims relating to the Fair Labor Standards Act.

 

Our bank accounts will not be fully insured.

 

The Company’s regular bank accounts and the escrow account for this Offering each have federal insurance that is limited to a certain amount of coverage. It is anticipated that the account balances in each account may exceed those limits at times. In the event that any of the Company’s banks should fail, we may not be able to recover all amounts deposited in these bank accounts.

 

Our business plan is speculative.

 

Our present business and planned business are speculative and subject to numerous risks and uncertainties. There is no assurance that the Company will generate significant revenues or profits.

 

The Company will likely incur debt.

 

The Company has incurred debt in the past and expects to incur future debt in order to fund operations. Complying with obligations under such indebtedness may have a material adverse effect on the Company and on your investment.

 

Our expenses could increase without a corresponding increase in revenues.

 

Our operating and other expenses could increase without a corresponding increase in revenues, which could have a material adverse effect on our financial results and on your investment. Factors which could increase operating and other expenses include but are not limited to (1) increases in the rate of inflation, (2) increases in taxes and other statutory charges, (3) changes in laws, regulations or government policies which increase the costs of compliance with such laws, regulations or policies, (4) significant increases in insurance premiums, and (5) increases in borrowing costs.

  


We may be unable to maintain or enhance our brand image.

 

It is important that we maintain and enhance the image of our brand. The image and reputation of the Company’s brand may be impacted for various reasons, including litigation. Such concerns, even when unsubstantiated, could be harmful to the Company’s image and the reputation of its brand. From time to time, the Company may receive complaints from customers regarding products purchased from the Company. The Company may in the future receive correspondence from customers requesting reimbursement. Certain dissatisfied customers may threaten legal action against the Company if no reimbursement is made. Any resulting litigation could be costly for the Company, divert management attention, and could result in increased costs of doing business, or otherwise have a material adverse effect on the Company’s business, results of operations, and financial condition. Any negative publicity generated as a result of customer complaints about the Company’s products could damage the Company’s reputation and diminish the value of the Company’s brand, which could have a material adverse effect on the Company’s business, results of operations, and financial condition, as well as your investment. Deterioration in the Company’s brand equity (brand image, reputation and product quality) may have a material adverse effect on its financial results as well as your investment.

 

Computer, website, or information system breakdown could negatively affect our business.

 

Computer, website and/or information system breakdowns as well as cyber security attacks could impair the Company’s ability to service its customers leading to reduced revenue from sales and/or reputational damage, which could have a material adverse effect on the Company’s financial results as well as your investment.

 

Changes in the economy could have a detrimental impact on the Company.

 

Changes in the general economic climate could have a detrimental impact on consumer expenditure and therefore on the Company’s revenue. It is possible that recessionary pressures and other economic factors (such as declining incomes, future potential rising interest rates, higher unemployment, and tax increases) may adversely affect customers’ confidence and willingness to spend. Any such events or occurrences could have a material adverse effect on the Company’s financial results and on your investment.

 

Additional financing may be necessary for the implementation of our growth strategy.

 

The Company may require additional debt and/or equity financing to pursue our growth and business strategies. These include but are not limited to enhancing our operating infrastructure and otherwise respond to competitive pressures. Given our limited operating history and existing losses, there can be no assurance that additional financing will be available, or, if available, that the terms will be acceptable to us. Lack of additional funding could force us to curtail substantially our growth plans. Furthermore, the issuance by us of any additional securities pursuant to any future fundraising activities undertaken by us would dilute the ownership of existing shareholders and may reduce the price of our Shares.

 

Our operating plan relies in large part upon assumptions and analyses developed by the Company. If these assumptions or analyses prove to be incorrect, the Company’s actual operating results may be materially different from our forecasted results.

 

Whether actual operating results and business developments will be consistent with the Company’s expectations and assumptions as reflected in its forecast depends on a number of factors, many of which are outside the Company’s control, including, but not limited to:

 

 

whether the Company can obtain sufficient capital to sustain and grow its business

 

our ability to manage the Company’s growth

 

whether the Company can manage relationships with key vendors and advertisers

 

demand for the Company’s products and services

 

the timing and costs of new and existing marketing and promotional efforts and/or competition

 

the Company’s ability to retain existing key management, to integrate recent hires and to attract, retain and motivate qualified personnel

 

the overall strength and stability of domestic and international economies

 

consumer spending habits

 

Unfavorable changes in any of these or other factors, most of which are beyond the Company’s control, could materially and adversely affect its business, results of operations and financial condition.

 

Our operations may not be profitable.

 

The Company may not be able to generate significant revenues in the future. In addition, we expect to incur substantial operating expenses in order to fund the expansion of our business. As a result, we may experience substantial negative cash flow for at least the foreseeable future and cannot predict when, or even if, the Company might become profitable.

 


We may be unable to manage our growth or implement our expansion strategy.

 

We may not be able to expand the Company’s product and service offerings, the Company’s markets, or implement the other features of our business strategy at the rate or to the extent presently planned. The Company’s projected growth will place a significant strain on our administrative, operational, and financial resources. If we are unable to successfully manage our future growth, establish and continue to upgrade our operating and financial control systems, recruit and hire necessary personnel or effectively manage unexpected expansion difficulties, our financial condition and results of operations could be materially and adversely affected.

 

Our business model is evolving.

 

Our business model is unproven and is likely to continue to evolve. Accordingly, our initial business model may not be successful and may need to be changed. Our ability to generate significant revenues will depend, in large part, on our ability to successfully market our products to potential users who may not be convinced of the need for our products and services or who may be reluctant to rely upon third parties to develop and provide these products. We intend to continue to develop our business model as the Company’s market continues to evolve.

 

The Company Needs to Increase Brand Awareness

 

Due to a variety of factors, our opportunity to achieve and maintain a significant market share may be limited. Developing and maintaining awareness of the Company’s brand name, among other factors, is critical. Further, the importance of brand recognition will increase as competition in the Company’s market increases. Successfully promoting and positioning our brand, products and services will depend largely on the effectiveness of our marketing efforts. Therefore, we may need to increase the Company’s financial commitment to create and maintain brand awareness. If we fail to successfully promote our brand name or if the Company incurs significant expenses promoting and maintaining our brand name, it will have a material adverse effect on the Company’s results of operations.

 

Our employees may engage in misconduct or improper activities.

 

The Company, like any business, is exposed to the risk of employee fraud or other misconduct. Misconduct by employees could include intentional failures to comply with laws or regulations, provide accurate information to regulators, comply with applicable standards, report financial information or data accurately or disclose unauthorized activities to the Company. In particular, sales, marketing and business arrangements are subject to extensive laws and regulations intended to prevent fraud, misconduct, kickbacks, self-dealing and other abusive practices. These laws and regulations may restrict or prohibit a wide range of pricing, discounting, marketing and promotion, sales commission, customer incentive programs and other business arrangements. Employee misconduct could also involve improper or illegal activities which could result in regulatory sanctions and serious harm to our reputation.

 

Limitation on director liability.

 

The Company may provide for the indemnification of directors to the fullest extent permitted by law and, to the extent permitted by such law, eliminate or limit the personal liability of directors to the Company and its shareholders for monetary damages for certain breaches of fiduciary duty. Such indemnification may be available for liabilities arising in connection with this Offering.

 

Risks Related to this Offering and Investment

 

We may undertake additional equity or debt financing that would dilute the shares in this offering.

 

The Company may undertake further equity or debt financing, which may be dilutive to existing shareholders, including you, or result in an issuance of securities whose rights, preferences and privileges are senior to those of existing shareholders, including you, and also reducing the value of Shares subscribed for under this Offering.

 

An investment in the Shares is speculative and there can be no assurance of any return on any such investment.

 

An investment in the Company’s Shares is speculative, and there is no assurance that investors will obtain any return on their investment. Investors will be subject to substantial risks involved in an investment in the Company, including the risk of losing their entire investment.

 

The Shares are offered on a “Best Efforts” basis, and we may not raise the Maximum Amount being offered.

 

Since we are offering the Shares on a “best efforts” basis, there is no assurance that we will sell enough Shares to meet our capital needs. If you purchase Shares in this Offering, you will do so without any assurance that we will raise enough money to satisfy the full Use Of Proceeds To Issuer which we have outlined in this Offering Circular or to meet our working capital needs.

 


If the maximum offering is not raised, it may increase the amount of long-term debt or the amount of additional equity we need to raise.

 

There is no assurance that the maximum number of Shares in this Offering will be sold. If the maximum Offering amount is not sold, we may need to incur additional debt or raise additional equity in order to finance our operations. Increasing the amount of debt will increase our debt service obligations and make less cash available for distribution to our shareholders. Increasing the amount of additional equity that we will have to seek in the future will further dilute those investors participating in this Offering.

 

We have not paid dividends in the past and do not expect to pay dividends in the future, so any return on investment may be limited to the value of our shares.

 

We have never paid cash dividends on our Shares and do not anticipate paying cash dividends in the foreseeable future. The payment of dividends on our Shares will depend on earnings, financial condition and other business and economic factors affecting it at such time that management may consider relevant. If we do not pay dividends, our Shares may be less valuable because a return on your investment will only occur if its stock price appreciates.

 

We may not be able to obtain additional financing.

 

Even if we are successful in selling the maximum number of Shares in the Offering, we may require additional funds to continue and grow our business. We may not be able to obtain additional financing as needed, on acceptable terms, or at all, which would force us to delay our plans for growth and implementation of our strategy which could seriously harm our business, financial condition and results of operations. If we need additional funds, we may seek to obtain them primarily through additional equity or debt financing. Those additional financings could result in dilution to our current shareholders and to you if you invest in this Offering.

 

The offering price has been arbitrarily determined.

 

The offering price of the Shares has been arbitrarily established by us based upon our present and anticipated financing needs and bears no relationship to our present financial condition, assets, book value, projected earnings, or any other generally accepted valuation criteria. The offering price of the Shares may not be indicative of the value of the Shares or the Company, now or in the future.

 

The management of the Company has broad discretion in the application of proceeds.

 

The management of the Company has broad discretion to adjust the application and allocation of the net proceeds of this offering in order to address changed circumstances and opportunities. As a result of the foregoing, our success will be substantially dependent upon the discretion and judgment of the management of the Company with respect to the application and allocation of the net proceeds hereof.

 

An investment in our Shares could result in a loss of your entire investment.

 

An investment in the Company’s Shares offered in this Offering involves a high degree of risk and you should not purchase the Shares if you cannot afford the loss of your entire investment. You may not be able to liquidate your investment for any reason in the near future.

 

There is no assurance that we will be able to pay dividends to our Shareholders.

 

While we may choose to pay dividends at some point in the future to our shareholders, there can be no assurance that cash flow and profits will allow such distributions to ever be made.

 

Sales of a substantial number of shares of our stock may cause the price of our stock to decline.

 

If our shareholders sell substantial amounts of our Shares in the public market, Shares sold may cause the price to decrease below the current offering price. These sales may also make it more difficult for us to sell equity or equity related securities at a time and at a price that we deem reasonable or appropriate.

  

We have made assumptions in our projections and in Forward-Looking Statements that may not be accurate.

 

The discussions and information in this Offering Circular may contain both historical and “forward- looking statements” which can be identified by the use of forward-looking terminology including the terms “believes,” “anticipates,” “continues,” “expects,” “intends,” “may,” “will,” “would,” “should,” or, in each case, their negative or other variations or comparable terminology. You should not place undue reliance on forward-looking statements. These forward-looking statements include matters that are not historical facts. Forward-looking statements involve risk and uncertainty because they relate to future events and circumstances. Forward-looking statements contained in this Offering Circular, based on past trends or activities, should not be taken as a representation that such trends or activities will continue in the future. To the extent that the Offering Circular contains forward-looking statements regarding the financial condition,


operating results, business prospects, or any other aspect of our business, please be advised that our actual financial condition, operating results, and business performance may differ materially from that projected or estimated by us. We have attempted to identify, in context, certain of the factors we currently believe may cause actual future experience and results to differ from our current expectations. The differences may be caused by a variety of factors, including but not limited to adverse economic conditions, lack of market acceptance, reduction of consumer demand, unexpected costs and operating deficits, lower sales and revenues than forecast, default on leases or other indebtedness, loss of suppliers, loss of supply, loss of distribution and service contracts, price increases for capital, supplies and materials, inadequate capital, inability to raise capital or financing, failure to obtain customers, loss of customers, the risk of litigation and administrative proceedings involving the Company or its employees, loss of government licenses and permits or failure to obtain them, higher than anticipated labor costs, the possible acquisition of new businesses or products that result in operating losses or that do not perform as anticipated, resulting in unanticipated losses, the possible fluctuation and volatility of the Company’s operating results and financial condition, adverse publicity and news coverage, inability to carry out marketing and sales plans, loss of key executives, changes in interest rates, inflationary factors, and other specific risks that may be referred to in this Offering Circular or in other reports issued by us or by third-party publishers.

 

You should be aware of the long-term nature of this investment.

 

Because the Shares have not been registered under the Securities Act or under the securities laws of any state or non-United States jurisdiction, the Shares may have certain transfer restrictions. It is not currently contemplated that registration under the Securities Act or other securities laws will be effected. Limitations on the transfer of the Shares may also adversely affect the price that you might be able to obtain for the Shares in a private sale. You should be aware of the long-term nature of your investment in the Company. You will be required to represent that you are purchasing the Securities for your own account, for investment purposes and not with a view to resale or distribution thereof.

 

The Shares in this Offering have no protective provisions.

 

The Shares in this Offering have no protective provisions. As such, you will not be afforded protection by any provision of the Shares or as a Shareholder in the event of a transaction that may adversely affect you, including a reorganization, restructuring, merger or other similar transaction involving the Company. If there is a ‘liquidation event’ or ‘change of control’ the Shares being offered do not provide you with any protection. In addition, there are no provisions attached to the Shares in the Offering that would permit you to require the Company to repurchase the Shares in the event of a takeover, recapitalization or similar transaction.

 

You will not have a significant influence on the management of the Company.

 

Substantially all decisions with respect to the management of the Company will be made exclusively by the officers, directors, managers, or employees of the Company. You will have a very limited ability, if at all, to vote on issues of Company management and will not have the right or power to take part in the management of the Company and will not be represented on the board of directors or by the managers of the Company. Accordingly, no person should purchase Shares unless he or she is willing to entrust all aspects of management to the Company.

 

There is no guarantee of any return on your investment.

 

There is no assurance that you will realize a return on your investment or that you will not lose your entire investment. For this reason, you should read this Offering Circular and all exhibits and referenced materials carefully and should consult with your own attorney and business advisor prior to making any investment decision.

 

Our Subscription Agreement identifies the state of Nevada for purposes of governing law.

 

The Company’s Subscription Agreement for shares issued under this Offering contains a choice of law provision stating, “all questions concerning the construction, validity, enforcement and interpretation of the Offering Circular, including, without limitation, this [Subscription] Agreement, shall be governed by and construed and enforced in accordance with the laws of the State of Nevada.” As such, excepting matters arising under federal securities laws, any disputes arising between the Company and shareholders acquiring shares under this offering shall be determined in accordance with the laws of the state of Nevada. Furthermore, the Subscription Agreement establishes the state and federal courts located in Nevada as having jurisdiction over matters arising between the Company and shareholders.

  

These provisions may discourage shareholder lawsuits or limit shareholders’ ability to obtain a favorable judicial forum in disputes with the Company and its directors, officers, or other employees.

 


IN ADDITION TO THE RISKS LISTED ABOVE, BUSINESSES ARE OFTEN SUBJECT TO RISKS NOT FORESEEN OR FULLY APPRECIATED BY THE MANAGEMENT. IT IS NOT POSSIBLE TO FORESEE ALL THE RISKS THAT MAY AFFECT THE COMPANY. MOREOVER, THE COMPANY CANNOT PREDICT WHETHER THE COMPANY WILL SUCCESSFULLY EFFECTUATE THE COMPANY’S CURRENT BUSINESS PLAN. EACH PROSPECTIVE PURCHASER IS ENCOURAGED TO CAREFULLY ANALYZE THE RISKS AND MERITS OF AN INVESTMENT IN THE SECURITIES AND SHOULD TAKE INTO CONSIDERATION WHEN MAKING SUCH ANALYSIS, AMONG OTHER FACTORS, THE RISK FACTORS DISCUSSED ABOVE.

 

DETERMINATION OF OFFERING PRICE

 

The Offering Price will be determined after qualification pursuant to Rule 253(b). The Offering Price will be arbitrarily determined and is not meant to reflect a valuation of the Company.

 

DILUTION

 

The term ‘dilution’ refers to the reduction (as a percentage of the aggregate Shares outstanding) that occurs for any given share of stock when additional Shares are issued. If all the Shares in this Offering are fully subscribed to and sold, the Shares offered herein will constitute approximately 84.8% of the total Shares of common stock of the Company. The Company anticipates that, subsequent to this Offering, the Company may require additional capital and such capital may take the form of Common Stock, other stock or securities or debt convertible into stock. Such future capital raising, or conversion of existing convertible debt or Preferred Stock will further dilute the percentage ownership of the Shares sold herein by the Company.

 

If you purchase shares in this Offering, your ownership interest in our Common Stock will be diluted immediately, to the extent of the difference between the price to the public charged for each share in this Offering and the net tangible book value per share of our Common Stock after this Offering.

 

Our historical net tangible book value as of December 31, 2022, was $(22,754). Historical net tangible book value per share equals the amount of our total tangible assets, less total liabilities, divided by the total number of shares of our Common Stock outstanding, all as of the date specified. Net tangible book value per share is an estimate based on the net tangible book value as of December 31, 2022, and 179,199,001 shares of common stock outstanding as of the date of this Offering Circular.

 

The following table illustrates the per share dilution to new investors discussed above, assuming the sale of, respectively, 100%, 75%, 50% and 25% of the Shares offered for sale in this Offering (before deducting our estimated offering expenses of $25,000) at the maximum offering price of $0.02 per share:

 

Funding Level

100%

75%

50%

25%

Gross Proceeds

$         16,000,000

$         12,000,000

$           8,000,000

$       4,000,000

Offering Price

$                    0.02

$                    0.02

$                    0.02

$                0.02

Net Tangible Book Value per Share of Common Stock before this Offering

$          (0.000127)

$          (0.000127)

$          (0.000127)

$      (0.000127)

Increase in Net Tangible Book Value per Share Attributable to New Investors in this Offering

$            0.016444

$            0.015498

$            0.013900

$        0.010616

Net Tangible Book Value per Share of Common Stock after this Offering

$            0.016317

$            0.015371

$            0.013773

$        0.010489

Dilution per share to Investors in the Offering

$          (0.003683)

$          (0.004629)

$          (0.006227)

$      (0.009511)

 

  

There is no material disparity between the price of the Shares in this Offering and the effective cash cost to officers, directors, promoters, and affiliated persons for shares acquired by them in a transaction during the past year, or that they have a right to acquire.

 

PLAN OF DISTRIBUTION

 

We are offering a Maximum Offering of up to $16,000,000 in Shares of Common Stock. The Offering is being conducted on a best-efforts basis without any minimum number of shares or amount of proceeds required to be sold. There is no minimum subscription amount required (other than a per investor minimum purchase) to distribute funds to the Company. The Company will not initially sell the Shares through commissioned broker-dealers but may do so after the commencement of the offering. Any such arrangement will add to our expenses in connection with the offering. If we engage one or more commissioned sales agents or underwriters, we will supplement this Form 1-A/A to describe the arrangement. Subscribers have no right to a return of their funds. The Company may terminate the offering at any time for any reason at its sole discretion and may extend the Offering past the termination date of 365 days


from the date of qualification by the Commission in the absolute discretion of the Company and in accordance with the rules and provisions of Regulation A of the JOBS Act. None of the Shares being sold in this Offering are being sold by existing securities holders.

 

After the Offering Statement has been qualified by the Securities and Exchange Commission (the “SEC”), the Company will accept tenders of funds to purchase the Shares. No escrow agent is involved, and the Company will receive the proceeds directly from any subscription. You will be required to complete a subscription agreement in order to invest.

 

All subscription agreements and checks received by the Company for the purchase of shares are irrevocable until accepted or rejected by the Company and should be delivered to the Company as provided in the subscription agreement. A subscription agreement executed by a subscriber is not binding on the Company until it is accepted on our behalf by the Company’s Chief Executive Officer or by specific resolution of our board of directors. Any subscription not accepted within 30 days will be automatically deemed rejected. Once accepted, the Company will deliver a stock certificate to a purchaser within five days from request by the purchaser; otherwise, purchasers’ shares will be noted and held on the book records of the Company.

 

The Company, by determination of the Board of Directors, in its sole discretion, may issue the Securities under this Offering for cash, promissory notes, services, and/or other consideration without notice to subscribers.

 

At this time no broker-dealer registered with the SEC and a member of the Financial Industry Regulatory Authority (“FINRA”), is being engaged as an underwriter or for any other purpose in connection with this Offering. This Offering will commence on the qualification of this Offering Circular, as determined by the Securities and Exchange Commission and continue for a period of 365 days. The Company may extend the Offering for an additional time period unless the Offering is completed or otherwise terminated by us, or unless we are required to terminate by application of Regulation A of the JOBS Act. Funds received from investors will be counted towards the Offering only if the form of payment, such as a check or wire transfer, clears the banking system and represents immediately available funds held by us prior to the termination of the subscription period, or prior to the termination of the extended subscription period if extended by the Company.

 

This is an offering made under “Tier 1” of Regulation A, and the shares will not be listed on a registered national securities exchange upon qualification. Therefore, the shares will be sold only to a person if the aggregate purchase price paid by such person is no more than 10% of the greater of such person’s annual income or net worth, not including the value of his primary residence, as calculated under Rule 501 of Regulation D promulgated under Section 4(a)(2) of the Securities Act of 1933, as amended. In the case of sales to fiduciary accounts (Keogh Plans, Individual Retirement Accounts (IRAs) and Qualified Pension/Profit Sharing Plans or Trusts), the above suitability standards must be met by the fiduciary account, the beneficiary of the fiduciary account, or by the donor who directly or indirectly supplies the funds for the purchase of the shares. Investor suitability standards in certain states may be higher than those described in this Form 1-A/A and/or Offering Circular. These standards represent minimum suitability requirements for prospective investors, and the satisfaction of such standards does not necessarily mean that an investment in the Company is suitable for such people. Different rules apply to accredited investors.

 

Each investor must represent in writing that he/she/it meets the applicable requirements set forth above and in the Subscription Agreement, including, among other things, that (i) he/she/it is purchasing the shares for his/her/its own account and (ii) he/she/it has such knowledge and experience in financial and business matters that he/she/it is capable of evaluating without outside assistance the merits and risks of investing in the shares, or he/she/it and his/her/its purchaser representative together have such knowledge and experience that they are capable of evaluating the merits and risks of investing in the shares. Broker dealers and other people participating in the offering must make a reasonable inquiry in order to verify an investor’s suitability for an investment in the Company. Transferees of the shares will be required to meet the above suitability standards.

 

The shares may not be offered, sold, transferred, or delivered, directly or indirectly, to any person who (i) is named on the list of “specially designated nationals” or “blocked persons” maintained by the U.S. Office of Foreign Assets Control (“OFAC”) at www.ustreas.gov/offices/enforcement/ofac/sdn or as otherwise published from time to time, (ii) an agency of the government of a Sanctioned Country, (iii) an organization controlled by a Sanctioned Country, or (iv) is a person residing in a Sanctioned Country, to the extent subject to a sanctions program administered by OFAC. A “Sanctioned Country” means a country subject to a sanctions program identified on the list maintained by OFAC and available at www.ustreas.gov/offices/enforcement/ofac/sdn or as otherwise published from time to time. Furthermore, the shares may not be offered, sold, transferred, or delivered, directly or indirectly, to any person who (i) has more than fifteen percent (15%) of its assets in Sanctioned Countries or (ii) derives more than fifteen percent (15%) of its operating income from investments in, or transactions with, sanctioned persons or Sanctioned Countries.

 

OTC Markets Considerations

 

The OTC Markets is separate and distinct from the New York Stock Exchange and Nasdaq stock market or other national exchanges. Neither the New York Stock Exchange nor Nasdaq has a business relationship with issuers of securities quoted on the OTC Markets. The SEC’s order handling rules, which apply to New York Stock Exchange and Nasdaq-listed securities, do not apply to securities quoted on the OTC Markets.

 


Although other national stock markets have rigorous listing standards to ensure the high quality of their issuers and can delist issuers for not meeting those standards; the OTC Markets has no listing standards. Rather, it is the market maker who chooses to quote a security on the system, files the application, and is obligated to comply with keeping information about the issuer in its files.

 

Investors may have greater difficulty in getting orders filled than if we were on Nasdaq or other exchanges. Trading activity in general is not conducted as efficiently and effectively on OTC Markets as with exchange-listed securities. Also, because OTC Markets stocks are usually not followed by analysts, there may be lower trading volume than New York Stock Exchange and Nasdaq-listed securities.

 

USE OF PROCEEDS TO ISSUER

 

The Use of Proceeds is an estimate based on the Company’s current business plan. We may find it necessary or advisable to reallocate portions of the net proceeds reserved for one category to another, or to add additional categories, and we will have broad discretion in doing so.

 

The maximum gross proceeds from the sale of the Shares in this Offering are $16,000,000. The net proceeds from the offering, assuming it is fully subscribed, are expected to be approximately $15,975,000 after the payment of offering costs such as printing, mailing, marketing, legal and accounting costs, and other compliance and professional fees that may be incurred. The estimate of the budget for offering costs is an estimate only and the actual offering costs may differ from those expected by management.

 

The management of the Company has wide latitude and discretion in the use of proceeds from this Offering. Ultimately, the management of the Company intends to use substantially all of the net proceeds for general working capital and acquisitions. At present, management’s best estimate of the use of proceeds, at various funding milestones, is set out in the chart below. However, potential investors should note that this chart contains only the best estimates of the Company’s management based upon information available to them at the present time, and that the actual use of proceeds is likely to vary from this chart based upon circumstances as they exist in the future, various needs of the Company at different times in the future, and the discretion of the Company’s management at all times.

 

A portion of the proceeds from this Offering may be used to compensate or otherwise make payments to officers or directors of the issuer. The officers and directors of the Company may be paid salaries and receive benefits that are commensurate with similar companies, and a portion of the proceeds may be used to pay these ongoing business expenses.

 

USE OF PROCEEDS

 

Assuming $0.02 Offering Price (Max)

 

10%

 

25%

 

50%

 

75%

 

100%

 

Acquisition Capital

 

$

960,000

 

$

2,400,000

 

$

4,800,000

 

$

7,200,000

 

$

9,600,000

 

R&D

 

$

320,000

 

$

800,000

 

$

1,600,000

 

$

2,400,000

 

$

3,200,000

 

General & Administrative Expense

 

$

112,000

 

$

280,000

 

$

560,000

 

$

840,000

 

$

1,120,000

 

Working Capital

 

$

112,000

 

$

280,000

 

$

560,000

 

$

840,000

 

$

1,120,000

 

Debt Repayment

 

$

48,000

 

$

120,000

 

$

240,000

 

$

360,000

 

$

480,000

 

Employee Compensation

 

$

48,000

 

$

120,000

 

$

240,000

 

$

360,000

 

$

480,000

 

Total

 

$

1,600,000

 

$

4,000,000

 

$

8,000,000

 

$

12,000,000

 

$

16,000,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assuming $0.0125 Offering Price (Mid)

 

10%

 

25%

 

50%

 

75%

 

100%

 

Acquisition Capital

 

$

600,000

 

$

1,500,000

 

$

3,000,000

 

$

4,500,000

 

$

6,000,000

 

R&D

 

$

200,000

 

$

500,000

 

$

1,000,000

 

$

1,500,000

 

$

2,000,000

 

General & Administrative Expense

 

$

70,000

 

$

175,000

 

$

350,000

 

$

525,000

 

$

700,000

 

Working Capital

 

$

70,000

 

$

175,000

 

$

350,000

 

$

525,000

 

$

700,000

 

Debt Repayment

 

$

30,000

 

$

75,000

 

$

150,000

 

$

225,000

 

$

300,000

 

Employee Compensation

 

$

30,000

 

$

75,000

 

$

150,000

 

$

225,000

 

$

300,000

 

Total

 

$

1,000,000

 

$

2,500,000

 

$

5,000,000

 

$

7,500,000

 

$

10,000,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assuming $0.005 Offering Price (Min)

 

10%

 

25%

 

50%

 

75%

 

100%

 

Acquisition Capital

 

$

240,000

 

$

600,000

 

$

1,200,000

 

$

1,800,000

 

$

2,400,000

 

R&D

 

$

80,000

 

$

200,000

 

$

400,000

 

$

600,000

 

$

800,000

 

General & Administrative Expense

 

$

28,000

 

$

70,000

 

$

140,000

 

$

210,000

 

$

280,000

 

Working Capital

 

$

28,000

 

$

70,000

 

$

140,000

 

$

210,000

 

$

280,000

 

Debt Repayment

 

$

12,000

 

$

30,000

 

$

60,000

 

$

90,000

 

$

120,000

 

Employee Compensation

 

$

12,000

 

$

30,000

 

$

60,000

 

$

90,000

 

$

120,000

 

Total

 

$

400,000

 

$

1,000,000

 

$

2,000,000

 

$

3,000,000

 

$

4,000,000

 

 

(1)$450,000 convertible promissory note issued to Alpharidge Capital LLC due 02/01/2025. The control person for Alpharidge Capital LLC is Frank Igwealor. 


 

The expected use of net proceeds from this Offering represents our intentions based upon our current plans and business conditions, which could change in the future as our plans and business conditions evolve and change. The amounts and timing of our actual expenditures, specifically with respect to working capital, may vary significantly depending on numerous factors. The precise amounts that we will devote to each of the foregoing items, and the timing of expenditures, will vary depending on numerous factors. As a result, our management will retain broad discretion over the allocation of the net proceeds from this Offering.

 

In the event we do not sell all the shares being offered, we may seek additional financing from other sources in order to support the intended use of proceeds indicated above. If we secure additional equity funding, investors in this Offering would be diluted. In all events, there can be no assurance that additional financing would be available to us when wanted or needed and, if available, on terms acceptable to us.

 

The allocation of the use of proceeds among the categories of anticipated expenditures represents management’s best estimates based on the current status of the Company’s proposed operations, plans, investment objectives, capital requirements, and financial conditions. No assurances can be provided that any milestone represented herein will be achieved. Future events, including changes in the economic or competitive conditions of our business plan or the completion of less than the total Offering amount, may cause the Company to modify the above-described allocation of proceeds. The Company’s use of proceeds may vary significantly in the event any of the Company’s assumptions prove inaccurate. We reserve the right to change the allocation of net proceeds from the Offering as unanticipated events or opportunities arise. Additionally, the Company may from time to time need to raise more capital to address future needs.

 

The Company reserves the right to change the use of proceeds set out herein based on the needs of the ongoing business of the Company and the discretion of the Company’s management. The Company may reallocate the estimated use of proceeds among the various categories or for other uses if management deems such a reallocation to be appropriate.

 

DESCRIPTION OF BUSINESS

 

Organization and History

 

The Company was incorporated on October 8, 2004, in the State of Nevada as Labwire, Inc. (LBWR). The Company was originally established as a drug testing and background investigation company. From 2009 to 2021, the Company had abandoned its business and failed to take steps to dissolve, liquidate and distribute its assets which resulted in its Nevada charter being revoked. The Company also failed to provide adequate current public information as defined in Rule 144, promulgated under the Securities Act of 1933, and was thus subject to revocation by the Securities and Exchange Commission pursuant to Section 12(k) of the Exchange Act. On December 22, 2020, a shareholder filed a petition for custodianship with the District Court, Clark County, Nevada and was appointed as the custodian of the Company on February 23, 2021.

 

On May 2, 2021, pursuant to a Securities Purchase Agreement (SPA) the Custodian granted to Alpharidge Capital, LLC., 15 Series A preferred shares (convertible at 1 into 200,000,000 common shares and voting rights of 60% of all votes) in exchange for $50,000 and an additional $12,000 to co‐fund the reinstatement of the Company with the State of Nevada. The Company also undertook to make all reasonable efforts to provide adequate current public information to meet the requirements under the Securities Act of 1933. On May 2, 2021, the Custodian appointed Robert E. Altermatt, who is associated with Alpharidge Capital, LLC., as the Company’s sole officer, secretary, treasurer, and director.

 

On May 5, 2021, the Company filed a Certificate of Revival with the Secretary State of the State of Nevada, which reinstated the Company’s charter and appointed a new Resident Agent in Nevada.

 

On March 16, 2022, the Company obtained a court summary judgment to cancel 120,000,000 shares of the Company’s issued and outstanding common stock. To facilitate the cancellation, the Company negotiated to reissue 9,000,000 to some of those whose shares were cancelled. The canceled shares were believed to be improperly issued by the previous management of the company.

 

Share Exchange Agreement

 

On 1/31/2023, Alpharidge Capital sold Fifteen (15) or 100% of Special 2021 Series A Preferred Stock issued and outstanding to Shin Hwang, Sole owner at Imperium Partners LLC.

 

On February 17th, 2023, Labwire acquired a 100% ownership interest in Cessil Company ("Cessil") pursuant to the Share Exchange Agreement of even date. The acquisition was fully executed and closed on February 18th, 2023 after the delivery of eighty million (80,000,000) shares of LBWR common stock to Mr. Jong Chung, Cessil’s sole owner, in exchange for all issued and outstanding shares of Cessil (the "Share Exchange").


On March 1, 2023, we retained Mr. Jong Chung as a consultant to manage Cessil operations. The consulting agreement has an initial term of 12 months. Mr. Chung receives a monthly fee in the amount of $10,000 in exchange for rendering the following services:

 

· Operate day-to-day operations.  

· Manage relationships with current and potential vendors.  

· Manage inventories to avoid any sold-out or to over-stocked conditions.  

· Manage employees to keep the operating cost consistent.  

· Negotiate with landlords for current and future locations.  

 

Cessil

 

is an early-stage discount retailer in the United States and currently operate two stores in Arizona as of June 1, 2023. Our business model revolves around offering a wide range of merchandise, including consumer products such as food, paper and cleaning products, health and beauty items, and pet supplies, as well as non-consumer products like seasonal merchandise, home decor and domestics, and basic apparel. Our product lineup includes renowned national brands. Our substantial growth and financial success can be attributed to the convenience of our store formats, strategic locations, and diverse selection of high-quality products at attractive prices. We recognize that our customer base is primarily comprised of value-conscious individuals, many of whom have low and/or fixed incomes. Consequently, we are committed to helping our customers maximize the value of their spending. It is important to note that our core customers are particularly sensitive to adverse economic conditions and tend to benefit at a slower pace from improving economic trends, especially during periods of inconsistency and uncertainty.

 

The economic factors that significantly impact our core customers include unemployment and underemployment rates, wage growth, changes in U.S. and global trade policies, and alterations to government assistance programs such as cost of living adjustments, unemployment benefits, and economic stimulus payments. Moreover, our customers are influenced by rising expenses that consume a significant portion of their household budgets, such as rent, healthcare, energy and fuel prices, and inflation impacting frequently purchased household products such as food. Unusual weather patterns or extreme weather events can also affect customer shopping behaviors. We remain committed to our long-term operating priorities which involve consistently improving performance while maintaining a customer-centric approach. These priorities encompass driving profitable sales growth, capitalizing on growth opportunities, strengthening our position as a low-cost operator, and investing in the development, empowerment, and inclusion of our diverse teams.

 

To achieve profitable sales growth, we focus on initiatives aimed at increasing customer traffic and the average transaction amount. We strive to provide everyday low prices while we secure our margins through cost plus strategies. We also focus on non-perishable items such as house décor, small appliance or kitchenware to reduce inventory write-offs. We consistently monitor product performance and rotate/replace inventory with upcoming seasonal items. Our store layouts have been designed with the end-consumer in mind and make every effort to ensure our highest demanded products are easily accessible to our customers. We have found these small efforts and adjustments help increase customer satisfaction and, thus, the number of return customers who shop in our stores.

 

In 2022, we experienced continued growth in average transaction amount and overall sales, primarily driven by inflation. We believe that our customers' behavior of stocking non-perishable items has positively impacted our operations. During the second half of the year, temporary supply chain issues caused shipment delays, resulting in some sold-out situations. However, we were able to purchase goods from vendors through liquidation sales, taking advantage of delayed shipments from overseas that led to a higher supply volume at lower prices. This allowed us to offset higher costs due to inflation.

 

We continue to keep costs down by purchasing off-season products from various vendors and major manufacturers. Seasonal items, particularly those related to holidays such as Christmas, become off-season products shortly after the holiday and they are often auctioned off at deeply discounted prices. We acquire these items and stock them for the following year. We also participate in auction sales where major manufacturers or retailers offer their unsold items at significantly reduced prices. With our extensive experience in operating dollar stores, we can reasonably estimate product turnover.

 

We remain committed to implementing and investing in strategic initiatives that will drive profitable sales growth with both new and existing customers and capture long-term growth opportunities. These opportunities include providing additional shopping access points and enhancing convenience for our customers through the development and leverage of digital tools and technology. For instance, we are in the testing stage of our e-commerce platform, DollarPoly, which will offer various products to consumers and evolve into a marketplace where independent dollar store operators can participate. DollarPoly aims to create a centralized network of discount stores where brick-and-mortar businesses can directly compete with online retailers.

 

Furthermore, we plan to develop our next location with a unique and modern design that increases foot traffic without the traditional perception of a dollar store. This includes employing a consistent color scheme and creating an iconic image associated with frugality. We recognize that consumers' purchase decisions are not solely based on brand or price, but also on the overall retail experience. Therefore, we are engaging with designing firms such as ROWE Creative Union to develop a new image that aligns with these principles.

 

Along our journey, we have faced various challenges that have impacted our business resulting in increased costs and disruptions. Global events like the COVID-19 pandemic have presented significant hurdles, including additional expenses related to transportation,


distribution, and payroll, as well as disruptions in our supply chain. While the global supply chain environment has shown signs of improvement, we experienced unforeseen delays in securing sufficient temporary warehouse space to meet our inventory needs in the second half of 2022. These delays and inefficiencies in our internal supply chain led to higher-than-anticipated costs, including fees for delayed shipping container returns, increased temporary storage and transportation costs, and labor expenses. However, we have made significant progress in acquiring additional temporary and permanent warehouse capacity, and we plan to further expand our capacity in 2023 to enhance overall supply chain efficiency.

 

Furthermore, although we observe some moderation in the inflation growth rate, we anticipate continued inflationary pressures in the near term. These pressures stem from higher input costs and persistently elevated energy and fuel prices, affecting not only us but also our vendors and customers. As a result, we expect higher commodity, transportation, and other costs, including product costs, which may exert ongoing pressure on our operating results. If these inflationary pressures lead to a recessionary environment, it could have adverse effects on our business, financial performance, and cash flows. We have implemented certain initiatives and plans to mitigate the challenges posed by inflation; however, the effectiveness of our mitigation efforts depend on various factors, including the scale and timing of cost increases. While we strive to offset these inflation-driven challenges, we cannot guarantee their success. Additionally, recent increases in market interest rates have negatively impacted our interest expenses associated with commercial paper notes and other indebtedness.

 

Our employees are a valuable competitive advantage, and we put efforts to maintain a strong relationship with each personnel. We believe in a business approach where our employee is our customer.

 

Subsidiaries and Affiliate Companies

 

Labwire Inc. acquired Cessil Company in February 2023 as a wholly owned subsidiary. Cessil Company is a discount convenience store offering consumer products at discounted rates in a dollar store setting.

 

Company Overview and Plan of Operation

 

The Company operates 100% through Cessil Company offering products to our customers in discount and convenience stores as impulse purchases or last-minute buyers. Our products are distributed through our storefront locations. We plan to offer business consulting and marketing services with affiliate sales agents.  

 

Employees

 

As of the date of this Offering Circular, the Company has 5 employees, including its officers, of which 2 are full-time. There is no collective agreement between the Company and its employees. The employment relationship between employees and the Company is individual and standard for the industry.

 

Property

 

Our corporate offices are located at 6015 N 43rd Ave, Phoenix, AZ 85019. At this address, the Company occupies office premises sufficient for its current needs.

 

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Forward-Looking Statements

 

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are forward-looking statements. These forward-looking statements generally are identified by the words believes, project, expects, anticipates, estimates, intends, strategy, plan, may, will, would, will be, will continue, will likely result, and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on our operations and future prospects on a consolidated basis include but are not limited to changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.


 

Results of Operations

 

The years ended December 31, 2022, and 2021.

 

For the years ended December 31, 2022, and 2021, the Company generated revenues of $0 and $0, respectively.

 

Cost of goods sold for the years ended December 31, 2022, and 2021 was $0 and $0, respectively.

  

Operating expenses for the years ended December 31, 2022, and 2021 were $22,754 and $0, respectively.

 

Accrued Interest for the years ended December 31, 2022, and 2021 was $0 and $0, respectively.

 

Net Income for the years ended December 31, 2022, and 2021 was $(22,754) and $0, respectively.

 

Liquidity and Capital Resources

 

Net cash provided by operating activities for the years ended December 31, 2022, and 2021 was $0 and $0, respectively.

 

Net cash provided by investing activities for the years ended December 31, 2022, and 2021 was $0 and $0, respectively.

 

Net cash provided by financing activities for the years ended December 31, 2022, and 2021 was $0 and $0, respectively.

 

As of December 31, 2022, we had $0 in cash to fund our operations.

 

Going Concern

 

The financial statements attached to this Offering Circular have been prepared assuming that the company will continue as a going concern which contemplates, among other things, the realization of assets and the satisfaction of liabilities in the normal course of business. For the 12 months ended December 31, 2022, the Company has incurred a net loss of $22,754 from operations. It used cash in operations of $0. We had an accumulated deficit of $825,873 as of December 31, 2022. It is management’s opinion that these matters raise substantial doubt about the Company’s ability to continue as a going concern for a period of twelve months from the issuance date of this report. The ability of the Company to continue as a going concern is dependent upon management’s ability to further implement its business plan and raise additional capital as needed from the sales of stock or issuance of debt. The Company will begin to raise capital through private placements of common stock and is planning an offering of common stock under Regulation A. Additionally the Company has been implementing cost-cutting measures and restructuring or setting up payment plans with vendors and service providers and has restructured some obligations. The accompanying financial statements do not include any adjustments that might be required should the Company be unable to continue as a going concern.

 

Critical Accounting Policies

 

The discussion and analysis of the Company’s financial condition and results of operations are based upon the Company’s condensed financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, and expenses. In consultation with the Company’s Board of Directors, management has identified in the accompanying financial statements the accounting policies that it believes are key to an understanding of its financial statements. These are important accounting policies that require management’s most difficult, subjective judgments.

 

Recently Issued Accounting Pronouncements

  

The Company does not believe that any other recently issued effective pronouncements, or pronouncements issued but not yet effective, if adopted, would have a material effect on the accompanying financial statements.

 

Off-Balance Sheet Arrangements

 

As of the date of this Offering Circular, there were no off-balance sheet arrangements.

 

Subsequent Material Events

 

On February 17, 2023, the Company acquired Cessil and commenced operations as a holding/management company of $0.99 discount stores. The transaction between the Company and Cessil was structured as a share exchange whereby the Company issued 80,000,000 shares of its common stock in exchange for all shares issued and outstanding of Cessil. Upon closing, Cessil became a wholly owned and operating subsidiary of the Company.


Results of Operations for Cessil Company

 

The following contains results of operations data for fiscal years 2022 and 2021, and the dollar and percentage variances among those years:

 

Net Sales . Net sales in 2022 was $1,423,416 which was increased by 4.4% over $1,363,584 in 2021. Sales in same-stores increased 4.4%, primarily due to an increase in average transaction amount. Average sales per square foot in 2022 were $142.

 

Gross Profit.  The gross profit in 2022 was $615,978 which was increased by 9.8% over $561,077 in 2021 primarily due to a product mix on a higher margin items.

 

Selling, General & Administrative Expense (“SG&A”).  SG&A in 2022 was $571,860 which was increased by 4.7% over $546,249 in 2021. As a percentage of sales, it was flat year over year at 40%. SG&A were increased due to employee compensation and benefits.

 

Operating Profit. Operating profit increased to $44,118 in 2022 from $14,828 in 2021 due to a higher gross profit while SG&A was consistent with the previous year.

 

Impact of Inflation

 

In 2022 and 2021, we experienced increases in product and labor costs due in part to higher rates of inflation, particularly to the global supply chain as well as our own internal supply chain. In 2022, higher rates of inflation affected the costs of building materials for maintenance.

 

Liquidity and Capital Resources

 

Current Financial Condition

We currently have $94,007 in cash and $273,847 in inventories. We believe that our financial condition in operating existing locations is sufficient, but we will need additional capital for expansion.

 

Cash Flows

Cash flows from operating activities. We generated approximately $49,000 of cash flows from operating activities in 2022, a decrease of $39,000 compared to 2021 because of reduction in payables.

 

Cash flows from investing activities . There was no change in Cash Flow from Investing Activities.

 

Cash flows from financing activities . We incurred a cash outflow of $81,226 due to the distribution to the member as well as a debt payment.

 

Financial Risk Management

 

We do not have a financial derivatives or contracts that may impact our operations.

 

Interest Rate Risk

 

We do not have a debt or payable with a variable interest rate. Hence, we currently do not have an interest rate risk that would directly impact our operations.

 

Dollar Store Industry Trends

 

The dollar store industry has proven to be recession resistant. As a result, the market trend of the industry is very consistent year over year. While poor economic conditions tend to generate a temporary increase in demand within the dollar store industry, the normalized market trend is flat. Post-pandemic, we believe the demand trend will be similar to pre-pandemic conditions; although, recent hyperinflation has increased the number of new customers while repeating customers stayed the same.

 

 

The Company evaluated subsequent events that have occurred after the balance sheet date of December 31, 2022, and up through the date of this Offering Circular. There are two types of subsequent events: (i) recognized, or those that provide additional evidence with respect to conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements, and (ii) non-recognized, or those that provide evidence with respect to conditions that did not exist at the date of the balance sheet but arose subsequent to that date. The Company has determined that there are no additional events that would require adjustment to or disclosure in the attached financial statements.


 

 

 

 

 

DIRECTORS, EXECUTIVE OFFICERS AND SIGNIFICANT EMPLOYEES

 

Directors and Executive Officers

 

The following table sets forth regarding our executive officers, directors and significant employees, including their ages as of the date of this Offering Circular:

 

 

Name

 

Position

 

 

Age

 

Director or Officer Since

Shin Hwang

 

President CEO, Director

 

 

41

 

February 2023

Bob Welty

 

Independent Director

 

 

54

 

February 2023

 

*The address of each of the individuals listed above is: c/o Labwire, Inc., 8175 E Evans Rd #12542 Scottsdale AZ 85260.

 

Shin Hwang President/CEO/Director 

 

Shin Hwang is the President and Chief Executive Officer of the Company. As a CEO, his responsibilities include but not limited to executing the Company’s strategic corporate actions to maintain its capital structure, partnering with potential clients through various business solutions, generating revenue growth year over year basis, and acquiring and diversifying various assets to produce ongoing cash flow.

Mr. Hwang has extensive experience in management. From February 2019 to present, Mr. Hwang is a managing member of Imperium Partners, LLC which provides consulting services for the ecommerce industry. From June 2017 to January 2019, Mr. Hwang held the position of Chief Operating Officer with Flower Tech Ctr Inc., an e-commerce platform specializing in flowers and gifts. From October 2013 to May 2017, Mr. Hwang held the position of Director of Operations and co-founder at Precipio, Inc (NASDAQ: PRPO), a cancer diagnostic laboratory in New Haven, CT. From January 2012 to July 2016, Mr. Hwang was a Portfolio Manager at BR Consulting, where he managed the company's investment assets, including equities and real estate. Prior to BR Consulting, Mr. Hwang worked as a Director of Operations at Osiris Corporation, a global holding company based in New York, Boston, and Omaha.

Mr. Hwang began his career as a buy-side financial analyst at Cornwall Capital Management, a New York City-based private financial investment corporation. He respectively holds a B.A. in applied mathematics with an emphasis in statistics from the University of California at Berkeley.

Bob Welty Independent Director 

Bob Welty is the Director of our company. Mr. Welty is a veteran of the retail design industry with deep expertise gained from working with Fortune 500 and start-ups to bring their passion projects to life. Over his 25+ years of consulting Mr. Welty has partnered with top brands such as Target, CVS, Whole Foods, Samsung, Shinsegae, Starbucks, Walmart, and Lowe’s to name a few.

From May 2019 to present, Mr. Welty held the position of Creative Director & Partner at Verge Extended Realities. From July 2018 to present, Mr. Welty also held the position of Partner & Creative Director at ROWE Creative Union. From November 2002 to July 2018, Mr. Welty held the position of SVP in Experience Design department at WD Partners. Prior to WD Partners, Mr. Welty held the position of Creative Director at Chute Gerdeman over 10 years. He respectively holds a B.A. in design from Columbus College of Art & Design.

 

Board of Directors

 

Our board of directors currently consists of two directors, one of which is considered “independent” as defined in Rule 4200 of FINRA’s listing standards. We may appoint additional independent directors to our board of directors in the future, particularly to serve on committees should they be established.

 

We have no formal policy regarding board diversity. In selecting board candidates, we seek individuals who will further the interests of our stockholders through an established record of professional accomplishment, the ability to contribute positively to our collaborative culture, knowledge of our business and understanding of our prospective markets.

 

Committees of the Board of Directors

 

We may establish an audit committee, compensation committee, a nominating and governance committee and other committees to our Board of Directors in the future but have not done so as of the date of this Offering Circular. Until such committees are established, matters that would otherwise be addressed by such committees will be acted upon by the Board of Directors.

 


Compensation of Directors and Executive Officers

 

Executive and Director Compensation

 

We have no standard arrangement to compensate our directors for their services in their capacity. Directors are not paid for meetings attended. However, we intend to review and consider future proposals regarding board and executive compensation. All travel and lodging expenses associated with corporate matters are reimbursed by us, if and when incurred.

 

In February 2023, o ur current executive officer, Shin Hwang, began receiv ing a salary of $10,000 per month for services performed as an officer of the Company.

  

Summary Compensation Table

 

The following table represents information regarding the total compensation of our officers and directors for the year ended December 31, 2022.

 

 

Name

 

Position

 

Cash Compensation

 

 

Other Compensation

 

 

Total Compensation

 

Robert Altermatt

 

Former Officer/Director

 

$                           -

 

 

                            -

 

 

$                           -

 

Shin Hwang

 

President, CEO, Director

 

$

                         -

 

 

 

       -

 

 

$

                   -

 

Bob Welty

 

Independent Director

 

$

                   -

 

 

 

-

 

 

$

                   -

 

 

 

There are no other employment agreements between the Company and its executive officers or directors. Our executive officers and directors have the responsibility of determining the timing of remuneration programs for key personnel based upon such factors as positive cash flow, shares sales, product sales, estimated cash expenditures, accounts receivable, accounts payable, notes payable, and cash balances. At this time, management cannot accurately estimate when sufficient revenues will occur to implement this compensation, or the exact amount of compensation.

 

Stock Incentive Plan; Options; Equity Awards

 

We have not adopted any long-term incentive plan that provides compensation intended to serve as an incentive for performance. None of our executive officers or directors received, nor do we have any arrangements to pay out, any bonus, stock awards, option awards, non-equity incentive plan compensation, or non-qualified deferred compensation.

 

Limitation of Liability and Indemnification of Officers and Directors

 

Our Bylaws limit the liability of directors and officers of the Company to the maximum extent permitted by Nevada law. The Bylaws state that the Company shall indemnify and hold harmless each person who was or is a party or is threatened to be made a party to, or is otherwise involved in any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, by reason of the fact that such person is or was a director or an officer of the Company or such director or officer is or was serving at the request of the Company as a director, officer, partner, member, manager, trustee, employee or agent of another company or of a partnership, limited liability company, joint venture, trust or other enterprise.

 

The Company believes that indemnification under our Bylaws covers at least negligence and gross negligence on the part of indemnified parties. The Company also may secure insurance on behalf of any officer, director, employee or other agent for any liability arising out of his or her actions in connection with their services to us, regardless of whether our Bylaws permit such indemnification.

 

The Company may also enter into separate indemnification agreements with its directors and officers, in addition to the indemnification provided for in our Bylaws. These agreements, among other things, may provide that we will indemnify our directors and officers for certain expenses (including attorneys’ fees), judgments, fines and settlement amounts incurred by a director or executive officer in any action or proceeding arising out of such person’s services as one of our directors or officers, or rendering services at our request, to any of its subsidiaries or any other company or enterprise. We believe that these provisions and agreements are necessary to attract and retain qualified people as directors and officers.

 

There is no pending litigation or proceeding involving any of our directors or officers as to which indemnification is required or permitted, and we are not aware of any threatened litigation or proceeding that may result in a claim for indemnification.

 


For additional information on indemnification and limitations on the liability of our directors and officers, please review the Company’s Bylaws, which are attached to this Offering Circular.

 

SECURITY OWNERSHIP OF MANAGEMENT AND CERTAIN SECURITYHOLDERS

 

The following table sets forth information regarding beneficial ownership of our Stock as of the date of this Offering Circular.

 

Beneficial ownership and percentage ownership are determined in accordance with the rules of the Securities and Exchange Commission and include voting or investment power with respect to Shares of stock. This information does not necessarily indicate beneficial ownership for any other purpose.

 

Unless otherwise indicated and subject to applicable community property laws, to our knowledge, each Shareholder named in the following table possesses sole voting and investment power over their Shares of Stock. The percentage of beneficial ownership before the offering is based on 179,199,001 Shares of Common Stock outstanding as of the date of this Offering Circular. Percentage of beneficial ownership after the Offering assumes the sale of the Maximum Offering Amount.

 

Name and Position

 

Class

 

Shares
Beneficially
Owned Prior
to Offering

 

 

Shares
Beneficially
Owned
After Offering

 

 

 

 

 

Number

 

 

Percent

 

 

Number

 

 

Percent

 

Shin Hwang

 

Series A Preferred

 

 

15

 

 

 

100

%

 

 

15

 

 

 

100

%

 CEO/Director

 

Common Shares

 

 

45,000,000

 

 

 

25.1

%

 

 

45,000,000

 

 

 

4.59

%

Bob Welty

Independent Director

 

Common Shares

 

 

-

 

 

 

0

%

 

 

-

 

 

 

0

%

Jong Jin Chung

 

Common Shares

 

 

80,000,000

 

 

 

44.6

%

 

 

80,000,000

 

 

 

8.16

%

Controlling Shareholder/ Affiliate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Frank Igwealor

 

Common Shares

 

 

10,000,000

 

 

 

5.56

%

 

 

10,000,000

 

 

 

1.02

%

Beneficial Owner

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTEREST OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS

 

 

During the last two full fiscal years and the current fiscal year, there are no other transactions or proposed transactions involving the Company and a related party, in which the amount involved exceeds the lesser of $120,000 or one percent of the average of the Company’s total assets at year-end for its last three fiscal years.

 

DESCRIPTION OF SECURITIES

 

Common Stock

 

The holders of our common stock are entitled to one vote per share on all matters submitted to a vote of our stockholders. The holders of the common stock have the sole right to vote, except as otherwise provided by law, by our articles of incorporation, or in a statement by our board of directors in a Preferred Stock Designation.

 

In addition, such holders are entitled to receive ratably such dividends, if any, as may be declared from time to time by our board of directors out of legally available funds, subject to the payment of preferential dividends or other restrictions on dividends contained in any Preferred Stock Designation, including, without limitation, the Preferred Stock Designation establishing a series of preferred stock described above. In the event of the dissolution, liquidation or winding up of Labwire, Inc., the holders of our common stock are entitled to share ratably in all assets remaining after payment of all our liabilities, subject to the preferential distribution rights granted to the holders of any series of our preferred stock in any Preferred Stock Designation, including, without limitation, the Preferred Stock Designation establishing a series of our preferred stock described above.

 

The holders of the common stock do not have cumulative voting rights or preemptive rights to acquire or subscribe for additional, unissued or treasury shares in accordance with the laws of the State of Nevada. Accordingly, excluding any voting rights granted to any series of our preferred stock, the holders of more than 50 percent of the issued and outstanding shares of the common stock voting for the election of directors can elect all of the directors if they choose to do so, and in such event, the holders of the remaining shares of the common stock voting for the election of the directors will be unable to elect any person or persons to the board of directors. All outstanding shares of the common stock are fully paid and nonassessable.


  

The laws of the State of Nevada provide that the affirmative vote of a majority of the holders of the outstanding shares of our common stock and any series of our preferred stock entitled to vote thereon is required to authorize any amendment to our articles of incorporation, any merger or consolidation of Labwire, Inc. with any corporation, or any liquidation or disposition of any substantial assets of Labwire, Inc.

 

Preferred Stock

 

The Company is authorized to issue 1,000,000 shares of Preferred Stock par value of $0.001 per share. Total issued Preferred Stock is fifteen (15) shares designated as Series A Preferred (“Series A”).

 

Series A

 

The Series A Preferred shares (a) rank senior, with respect to liquidation, winding up or dissolution to all other classes of stock; (b) rank senior to any future designation of preferred stock; (c) maintain at least 60% of the voting interest of the Company on an as-converted and fully diluted basis; and (d) convert into 200,000,000 shares of common stock per Series A share.

 

SECURITIES BEING OFFERED

 

The Company is offering Shares of its Common Stock. Except as otherwise required by law, in the Company’s Articles of Incorporation or Bylaws, each Shareholder shall be entitled to one vote for each Share held by such Shareholder on the record date of any vote of Shareholders of the Company. The Shares of Common Stock, when issued, will be fully paid and non-assessable.

 

The Company does not expect to create any additional classes of Common Stock during the next 12 months, but the Company is not limited from creating additional classes which may have preferred dividend, voting and/or liquidation rights or other benefits not available to holders of its common stock.

 

The Company does not expect to declare dividends for holders of Common Stock in the foreseeable future. Dividends will be declared, if at all (and subject to the rights of holders of additional classes of securities, if any), at the discretion of the Company’s Board of Directors. Dividends, if ever declared, may be paid in cash, in property, or in shares of the capital stock of the Company, subject to the provisions of law, the Company’s Bylaws and the Certificate of Incorporation. Before payment of any dividend, there may be set aside out of any funds of the Company available for dividends such sums as the Board of Directors, in its absolute discretion, deems proper as a reserve for working capital, to meet contingencies, for equalizing dividends, for repairing or maintaining any property of the Company, or for such other purposes as the Board of Directors shall deem in the best interests of the Company.

 

Because this is a best-efforts offering, there is no minimum number of Shares that need to be sold in order for funds to be released to the Company and for this Offering to hold its first closing.

 

The minimum subscription that will be accepted from an investor is $1,000 (the ‘Minimum Subscription’).

 

A subscription for $1,000 or more in the Shares may be made only by tendering to the Company the executed Subscription Agreement (electronically or in writing) delivered with the subscription price in a form acceptable to the Company, via check, wire, credit or debit card, or ACH. The execution and tender of the documents required, as detailed in the materials, constitutes a binding offer to purchase the number of Shares stipulated therein and an agreement to hold the offer open until the Expiration Date or until the offer is accepted or rejected by the Company, whichever occurs first.

 

The Company reserves the unqualified discretionary right to reject any subscription for Shares, in whole or in part. The Company reserves the unqualified discretionary right to accept any subscription for Shares, in an amount less than the Minimum Subscription. If the Company rejects any offer to subscribe for the Shares, it will return the subscription payment, without interest or reduction. The Company’s acceptance of your subscription will be effective when an authorized representative of the Company issues you written or electronic notification that the subscription was accepted.

 

There are no liquidation rights, preemptive rights, conversion rights, redemption provisions, sinking fund provisions, impacts on classification of the Board of Directors where cumulative voting is permitted or required related to the Common Stock, provisions discriminating against any existing or prospective holder of the Common Stock as a result of such Shareholder owning a substantial amount of securities, or rights of Shareholders that may be modified otherwise than by a vote of a majority or more of the shares outstanding, voting as a class defined in any corporate document as of the date of filing. The Common Stock will not be subject to further calls or assessment by the Company. There are no restrictions on alienability of the Common Stock in the corporate documents other than those disclosed in this Offering Circular. The Company has engaged Pacific Stock Transfer Co. to serve as the transfer agent and registrant for the Shares. For additional information regarding the Shares, please review the Company’s Bylaws, which are attached to this Offering Circular.

 


Excepting matters arising under federal securities laws, any disputes between the Company and shareholders shall be governed in reliance on the laws of the state of Nevada. Furthermore, the Subscription Agreement for this Regulation A offering appoints the state and federal courts located in the state of Nevada as having jurisdiction over any disputes related to this Regulation A offering between the Company and shareholders.

 

Transfer Agent

 

Our transfer agent is Pacific Stock Transfer Co., 6725 Via Austi Parkway, Suite 300, Las Vegas, NV 89119. The transfer agent is registered under the Exchange Act and operates under the regulatory authority of the SEC and FINRA.

 

DISQUALIFYING EVENTS DISCLOSURE

 

Recent changes to Regulation A promulgated under the Securities Act prohibit an issuer from claiming an exemption from registration of its securities under such rule if the issuer, any of its predecessors, any affiliated issuer, any director, executive officer, other officer participating in the offering of the interests, general partner or managing member of the issuer, any beneficial owner of 20% or more of the voting power of the issuer’s outstanding voting equity securities, any promoter connected with the issuer in any capacity as of the date hereof, any investment manager of the issuer, any person that has been or will be paid (directly or indirectly) remuneration for solicitation of purchasers in connection with such sale of the issuer’s interests, any general partner or managing member of any such investment manager or solicitor, or any director, executive officer or other officer participating in the offering of any such investment manager or solicitor or general partner or managing member of such investment manager or solicitor has been subject to certain “Disqualifying Events” described in Rule 506(d)(1) of Regulation D subsequent to September 23, 2013, subject to certain limited exceptions. The Company is required to exercise reasonable care in conducting an inquiry to determine whether any such persons have been subject to such Disqualifying Events and is required to disclose any Disqualifying Events that occurred prior to September 23, 2013, to investors in the Company. The Company believes that it has exercised reasonable care in conducting an inquiry into Disqualifying Events by the foregoing persons and is aware of the no such Disqualifying Events.

 

It is possible that (a) Disqualifying Events may exist of which the Company is not aware and (b) the SEC, a court or other finder of fact may determine that the steps that the Company has taken to conduct its inquiry were inadequate and did not constitute reasonable care. If such a finding were made, the Company may lose its ability to rely upon exemptions under Regulation A, and, depending on the circumstances, may be required to register the Offering of the Company’s Common Stock with the SEC and under applicable state securities laws or to conduct a rescission offer with respect to the securities sold in the Offering.

 

ERISA CONSIDERATIONS

 

Trustees and other fiduciaries of qualified retirement plans or IRAs that are set up as part of a plan sponsored and maintained by an employer, as well as trustees and fiduciaries of Keogh Plans under which employees, in addition to self-employed individuals, are participants (together, “ERISA Plans”), are governed by the fiduciary responsibility provisions of Title 1 of the Employee Retirement Income Security Act of 1974 (“ERISA”). An investment in the Shares by an ERISA Plan must be made in accordance with the general obligation of fiduciaries under ERISA to discharge their duties (i) for the exclusive purpose of providing benefits to participants and their beneficiaries; (ii) with the same standard of care that would be exercised by a prudent man familiar with such matters acting under similar circumstances; (iii) in such a manner as to diversify the investments of the plan, unless it is clearly prudent not do so; and (iv) in accordance with the documents establishing the plan. Fiduciaries considering an investment in the Shares should accordingly consult their own legal advisors if they have any concern as to whether the investment would be inconsistent with any of these criteria.

 

Fiduciaries of certain ERISA Plans which provide for individual accounts (for example, those which qualify under Section 401(k) of the Code, Keogh Plans and IRAs) and which permit a beneficiary to exercise independent control over the assets in his individual account, will not be liable for any investment loss or for any breach of the prudence or diversification obligations which results from the exercise of such control by the beneficiary, nor will the beneficiary be deemed to be a fiduciary subject to the general fiduciary obligations merely by virtue of his exercise of such control. On October 13, 1992, the Department of Labor issued regulations establishing criteria for determining whether the extent of a beneficiary’s independent control over the assets in his account is adequate to relieve the ERISA Plan’s fiduciaries of their obligations with respect to an investment directed by the beneficiary. Under the regulations, the beneficiary must not only exercise actual, independent control in directing the particular investment transaction, but also the ERISA Plan must give the participant or beneficiary a reasonable opportunity to exercise such control and must permit him to choose among a broad range of investment alternatives.

 

Trustees and other fiduciaries making the investment decision for any qualified retirement plan, IRA or Keogh Plan (or beneficiaries exercising control over their individual accounts) should also consider the application of the prohibited transactions provisions of ERISA and the Code in making their investment decision. Sales and certain other transactions between a qualified retirement plan, IRA or Keogh Plan and certain persons related to it (e.g., a plan sponsor, fiduciary, or service provider) are prohibited transactions. The particular facts concerning the sponsorship, operations and other investments of a qualified retirement plan, IRA or Keogh Plan may cause a wide range of persons to be treated as parties in interest or disqualified persons with respect to it. Any fiduciary, participant or beneficiary considering an investment in Shares by a qualified retirement plan IRA or Keogh Plan should examine the individual


circumstances of that plan to determine that the investment will not be a prohibited transaction. Fiduciaries, participants or beneficiaries considering an investment in the Shares should consult their own legal advisors if they have any concern as to whether the investment would be a prohibited transaction.

 

Regulations issued on November 13, 1986, by the Department of Labor (the “Final Plan Assets Regulations”) provide that when an ERISA Plan or any other plan covered by Code Section 4975 (e.g., an IRA or a Keogh Plan which covers only self-employed persons) makes an investment in an equity interest of an entity that is neither a “publicly offered security” nor a security issued by an investment company registered under the Investment Company Act of 1940, the underlying assets of the entity in which the investment is made could be treated as assets of the investing plan (referred to in ERISA as “plan assets”). Programs which are deemed to be operating companies or which do not issue more than 25% of their equity interests to ERISA Plans are exempt from being designated as holding “plan assets.” Management anticipates that we would clearly be characterized as “operating” for the purposes of the regulations, and that it would therefore not be deemed to be holding “plan assets.”

 

Classification of our assets as “plan assets” could adversely affect both the plan fiduciary and management. The term “fiduciary” is defined generally to include any person who exercises any authority or control over the management or disposition of plan assets. Thus, classification of our assets as plan assets could make the management a “fiduciary” of an investing plan. If our assets are deemed to be plan assets of investor plans, transactions which may occur in the course of its operations may constitute violations by the management of fiduciary duties under ERISA. Violation of fiduciary duties by management could result in liability not only for management but also for the trustee or other fiduciary of an investing ERISA Plan. In addition, if our assets are classified as “plan assets,” certain transactions that we might enter into in the ordinary course of our business might constitute “prohibited transactions” under ERISA and the Code.

 

Under Code Section 408(i), as amended by the Tax Reform Act of 1986, IRA trustees must report the fair market value of investments to IRA holders by January 31 of each year. The Service has not yet promulgated regulations defining appropriate methods for the determination of fair market value for this purpose. In addition, the assets of an ERISA Plan or Keogh Plan must be valued at their “current value” as of the close of the plan’s fiscal year in order to comply with certain reporting obligations under ERISA and the Code. For purposes of such requirements, “current value” means fair market value where available. Otherwise, current value means the fair value as determined in good faith under the terms of the plan by a trustee or other named fiduciary, assuming an orderly liquidation at the time of the determination. We do not have an obligation under ERISA or the Code with respect to such reports or valuation although management will use good faith efforts to assist fiduciaries with their valuation reports. There can be no assurance, however, that any value so established (i) could or will actually be realized by the IRA, ERISA Plan or Keogh Plan upon sale of the Shares or upon liquidation of us, or (ii) will comply with the ERISA or Code requirements.

 

The income earned by a qualified pension, profit sharing or stock bonus plan (collectively, “Qualified Plan”) and by an individual retirement account (“IRA”) is generally exempt from taxation. However, if a Qualified Plan or IRA earns “unrelated business taxable income” (“UBTI”), this income will be subject to tax to the extent it exceeds $1,000 during any fiscal year. The amount of unrelated business taxable income in excess of $1,000 in any fiscal year will be taxed at rates up to 36%. In addition, such unrelated business taxable income may result in a tax preference, which may be subject to the alternative minimum tax. It is anticipated that income and gain from an investment in Shares will not be taxed as UBTI to tax exempt shareholders, because they are participating only as passive financing sources.

 

DIVIDEND POLICY

 

Subject to preferences that may be applicable to any then-outstanding shares of Preferred Stock, if any, and any other restrictions, holders of Common Stock are entitled to receive ratably those dividends, if any, as may be declared from time to time by our board of directors out of legally available funds. We and our predecessors have not declared any dividends in the past. Further, we do not presently contemplate that there will be any future payment of any dividends on Common Stock.

  

SHARES ELIGIBLE FOR FUTURE SALE

 

Prior to this Offering, there has been a limited market for our Common Stock on the OTC Markets. Future sales of substantial amounts of our Common Stock, or securities or instruments convertible into our Common Stock, in the public market, or the perception that such sales may occur, could adversely affect the market price of our Common Stock prevailing from time to time. Furthermore, because there will be limits on the number of shares available for resale shortly after this Offering due to contractual and legal restrictions described below, there may be resales of substantial amounts of our Common Stock in the public market after those restrictions lapse. This could adversely affect the market price of our Common Stock prevailing at that time.

 

Upon completion of this Offering, assuming the maximum number of shares of Common Stock offered in this Offering are sold, there will be 979,199,001 shares of our Common Stock outstanding.


 

Rule 144

 

In general, a person who has beneficially owned restricted shares of our Common Stock for at least twelve months, in the event we are a reporting company under Regulation A, or at least six months, in the event we have been a reporting company under the Exchange Act for at least 90 days before the sale, would be entitled to sell such securities, provided that such person is not deemed to be an affiliate of ours at the time of sale or to have been an affiliate of ours at any time during the 90 days preceding the sale. A person who is an affiliate of ours at such time would be subject to additional restrictions, by which such person would be entitled to sell within any three-month period only a number of shares that does not exceed the greater of the following:

 

 

1% of the number of shares of our Common Stock then outstanding; or

 

 

the average weekly trading volume of our Common Stock during the four calendar weeks preceding the filing by such person of a notice on Form 144 with respect to the sale;

 

provided that, in each case, we are subject to the periodic reporting requirements of the Exchange Act for at least 90 days before the sale. Rule 144 trades must also comply with the manner of sale, notice and other provisions of Rule 144, to the extent applicable.

 

INVESTOR ELIGIBILITY STANDARDS & ADDITIONAL INFORMATION ABOUT THE OFFERING

 

Investment Limitations

 

Generally, no sale may be made to you in this Offering if the aggregate purchase price you pay is more than 10% of the greater of your annual income or net worth (please see below on how to calculate your net worth). Different rules apply to accredited investors and non-natural persons. Before making any representation that your investment does not exceed applicable thresholds, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A+. For general information on investing, we encourage you to refer to www.investor.gov.

 

Because this is a Tier 1, Regulation A+ offering, most investors must comply with the 10% limitation on investment in the Offering. The only investor in this Offering exempt from this limitation is an “accredited investor” as defined under Rule 501 of Regulation D under the Securities Act. If you meet one of the following tests you should qualify as an accredited investor:

 

 

(i)

You are a natural person who has had individual income in excess of $200,000 in each of the two most recent years, or joint income with your spouse in excess of $300,000 in each of these years, and have a reasonable expectation of reaching the same income level in the current year;

 

 

 

 

(ii)

You are a natural person and your individual net worth, or joint net worth with your spouse, exceeds $1,000,000 at the time you purchase Shares (please see below on how to calculate your net worth);

 

 

 

 

(iii)

You are an executive officer or general partner of the issuer or a manager or executive officer of the general partner of the issuer;

 

 

 

 

(iv)

You are an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended, or the Code, a corporation, a Massachusetts or similar business trust or a partnership, not formed for the specific purpose of acquiring the Shares, with total assets in excess of $5,000,000;

 

 

(v)

You are a bank or a savings and loan association or other institution as defined in the Securities Act, a broker or dealer registered pursuant to Section 15 of the Exchange Act, an insurance company as defined by the Securities Act, an investment company registered under the Investment Company Act of 1940 (Investment Company Act), or a business development company as defined in that act, any Small Business Investment Company licensed by the Small Business Investment Act of 1958 or a private business development company as defined in the Investment Advisers Act of 1940;

  

 

(vi)

You are an entity (including an Individual Retirement Account trust) in which each equity owner is an accredited investor;

 

 

 

 

(vii)

You are a trust with total assets in excess of $5,000,000, your purchase of Shares is directed by a person who either alone or with his purchaser representative(s) (as defined in Regulation D promulgated under the Securities Act) has such knowledge and experience in financial and business matters that he is capable of evaluating the merits and risks of the prospective investment, and you were not formed for the specific purpose of investing in the Shares; or

 

 

 

 

(viii)

You are a plan established and maintained by a state, its political subdivisions, or any agency or instrumentality of a state or its political subdivisions, for the benefit of its employees, if such plan has assets in excess of $5,000,000.


 

Offering Period and Expiration Date

 

This Offering will start on the date on which the SEC initially qualifies this Offering Statement (the Qualification Date) and will terminate on the Termination Date.

 

Procedures for Subscribing

 

If you decide to subscribe for our Common Stock shares in this Offering, you should:

 

1.

Electronically receive, review, execute and deliver to us a Subscription Agreement; and

 

2.

Deliver funds directly to the Company’s designated bank account via bank wire transfer (pursuant to the wire transfer instructions set forth in our Subscription Agreement) or electronic funds transfer via wire transfer.

 

Any potential investor will have ample time to review the subscription agreement, along with their counsel, prior to making any final investment decision. We shall only deliver such subscription agreement upon request after a potential investor has had ample opportunity to review this Offering Circular.

 

Right to Reject Subscriptions. After we receive your complete, executed subscription agreement and the funds required under the subscription agreement have been transferred to our designated account, we have the right to review and accept or reject your subscription in whole or in part, for any reason or for no reason. We will return all monies from rejected subscriptions immediately to you, without interest or deduction.

 

Acceptance of Subscriptions. Upon our acceptance of a subscription agreement, we will countersign the subscription agreement and issue the shares subscribed at closing. Once you submit the subscription agreement, you may not revoke or change your subscription or request your subscription funds. All submitted subscription agreements are irrevocable.

 

Under Rule 251 of Regulation A+, non-accredited, non-natural investors are subject to the investment limitation and may only invest funds which do not exceed 10% of the greater of the purchaser’s revenue or net assets (as of the purchaser’s most recent fiscal year end). A non-accredited, natural person may only invest funds which do not exceed 10% of the greater of the purchaser’s annual income or net worth (please see below on how to calculate your net worth).

 

NOTE: For the purpose of calculating your net worth, it is defined as the difference between total assets and total liabilities. This calculation must exclude the value of your primary residence and may exclude any indebtedness secured by your primary residence (up to an amount equal to the value of your primary residence). In the case of fiduciary accounts, net worth and/or income suitability requirements may be satisfied by the beneficiary of the account or by the fiduciary, if the fiduciary directly or indirectly provides funds for the purchase of the Shares.

 

In order to purchase our Common Stock shares and prior to the acceptance of any funds from an investor, an investor will be required to represent, to the Company’s satisfaction, that such investor is either an accredited investor or is in compliance with the 10% of net worth or annual income limitation on investment in this Offering.

 

LEGAL MATTERS

 

Certain legal matters with respect to the shares of common stock offered hereby will be passed upon by Jeff Turner, JDT Legal, PLLC.

 

REPORTS

 

Following this Tier 1, Regulation A offering, we will be required to comply with certain ongoing disclosure requirements under Rule 257 of Regulation A, in addition to our reporting requirements under the OTC Pink Basic Disclosure Guidelines.

 

WHERE YOU CAN FIND MORE INFORMATION

 

We have filed with the SEC a Regulation A Offering Statement on Form 1-A/A under the Securities Act with respect to the shares of common stock offered hereby. This Offering Circular, which constitutes a part of the Offering Statement, does not contain all of the information set forth in the Offering Statement or the exhibits and schedules filed therewith. For further information about us and the common stock offered hereby, we refer you to the Offering Statement and the exhibits and schedules filed therewith. Statements contained in this Offering Circular regarding the contents of any contract or other document that is filed as an exhibit to the Offering Statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the Offering Statement. Upon the completion of this Offering, we will be required to file periodic reports, proxy statements, and other information with the SEC pursuant to the Securities Exchange Act of 1934. You may read and copy this information at the SEC’s Public Reference Room, 100 F Street, N.E., Room 1580, Washington, D.C. 20549. You may obtain


information on the operation of the Public Reference Room by calling the SEC on 1-800-SEC-0330. The SEC also maintains an Internet website that contains reports, proxy statements and other information about issuers, including us, that file electronically with the SEC. The address of this site is www.sec.gov.

 


SIGNATURES

 

Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A/A and has duly caused this Offering statement to be signed on its behalf by the undersigned, thereunto duly authorized, on June 5, 2023 .

 

LABWIRE, INC.

 

 

 

By:

/s/ Shin Hwang

 

 

Shin Hwang

 

 

CEO

 

 

June 5, 2023

 

 

 

This Offering statement has been signed by the following persons in the capacities and on the dates indicated. 

By:

/s/ Shin Hwang

 

 

Shin Hwang

 

 

Principal Executive Officer, Director

 

 

June 5, 2023

 

 

 

By:

/s/ Bob Welty

 

 

Bob Welty

 

 

Director

 

 

June 5, 2023

 

 

ACKNOWLEDGEMENT ADOPTING TYPED SIGNATURES

 

The undersigned hereby authenticate, acknowledge, and otherwise adopt the typed signatures above and as otherwise appear in this filing and Offering.

 

By:

/s/ Shin Hwang

 

 

Shin Hwang

 

 

CEO

 

 

June 5, 2023

 

 

 

 


PART III: EXHIBITS

 

Index to Exhibits

 

 

 

 

 

 

 

Incorporated by Reference

Exhibit No.

 

Description

 

Filed

Herewith (*)

 

Filing Type

 

Date Filed

2.1

 

Articles of Incorporation, as amended

 

 

 

1-A

 

04/21/203

2.2

 

Bylaws

 

 

 

1-A

 

04/21/2023

3.1

 

Series A Preferred Certificate of Designation

 

 

 

1-A

 

04/21/2023

4.1

 

Subscription Agreement

 

 

 

1-A

 

04/21/2023

6.1

 

Convertible Promissory Note dated 01/31/2023

 

 

 

1-A

 

04/21/2023

6.2

 

Consulting Agreement (Shin Hwang) dated 02/01/2023

 

 

 

1-A

 

04/21/2023

6.3

 

Consulting Agreement (Jong Jin Chung) dated 03/01/2023

 

 

 

1-A

 

04/21/2023

6.4

 

Cessil Company Share Exchange Agreement dated 02/17/2023

 

 

 

1-A/A

 

05/18/2023

12.1

 

Legal Opinion and Consent

 

 

 

1-A

 

04/21/2023

 

III-1

 

 


PART F/S: FINANCIAL STATEMENTS

 

TABLE OF CONTENTS

 

 

Unaudited Financial Statements of Labwire, Inc. for the Twelve Months Ended December 31, 2022

and Twelve Months Ended December 31, 2021

 

 

Page

Unaudited Condensed Consolidated Balance Sheets

F-2

Unaudited Condensed Consolidated Statements of Operations

F-3

Unaudited Condensed Consolidated Statement of Stockholders’ Deficit

F-4

Unaudited Condensed Consolidated Statements of Cash Flows

F-5

Notes to Unaudited Condensed Consolidated Financial Statements

F-6

 

 

Unaudited condensed financial statements of Cessil Corporation for the years ended December 31, 2022 and December 31, 2021; and Unaudited Pro Forma Condensed Financial Information as of December 31, 2022.

 

 

Page

Unaudited Condensed Consolidated Balance Sheets

F-13

Unaudited Condensed Consolidated Statements of Operations

F-14

Unaudited Condensed Consolidated Statement of Stockholders’ Deficit

F-15

Unaudited Condensed Consolidated Statements of Cash Flows

F-16

Notes to Unaudited Condensed Consolidated Financial Statements

F-17

Unaudited Pro Forma Condensed Financial Information

F-21

 

 

 

F-1


Labwire, Inc.

CONDENSED CONSOLIDATED BALANCE SHEETS

 (UNAUDITED) 

December 31,

 

 

2022

2021

ASSETS

-

-

LIABILITIES & EQUITY

 

 

Liabilities

 

 

Current Liabilities

-

-

Long Term Liabilities

-

-

Other Payable

22,753.86

-

Total Liabilities

22,753.86

-

 

Equity

 

 

 

Preferred stock, $.001 par value, 1,000,000 shares authorized, 15 issued and outstanding

 

 

Common Stock, $0.001 par value, 199,000,000 shares authorized, 44,199,001 and 155,199,001 issued and outstanding as at December

 

 

44,199.00

 

 

155,199.00

31, 2022 and 2021 respectively.

 

 

Additional Paid In Capital

781,674.00

670,674.00

Accumulated Deficits

(825,873.00)

(825,873.00)

Retained Earnings

(22,753.86)

 

 

Total Equity

 

(22,753.86)

 

0.00

TOTAL LIABILITIES & EQUITY

0.00

0.00

 

 

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

 

F-2


Labwire, Inc.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

December 31,

 

20222021 

 

Ordinary Income/Expense

Expense  

Advertising and Promotion                                                                                       621.00

Automobile Expense                                                                                                 347.00

Business Licenses and Permits: NV SoS

Bus. Licenses and Permits-Other

799.00

 

434.00

Community Outreach

737.00

Computer and Internet Expenses

294.97

Insurance Expense

168.00

Lease Expense

624.90

Office Supplies

795.00

Postage and Delivery

146.00

Accounting

1,500.00

Business Development

1,636.00

Investor Relations

805.00

Legal

2,051.00

OTC Markets

7,479.00

Professional Fees- Other

162.00

Stock Transfer Agents

417.00

Rent Expense

2,003.29

Telephone Expense

298.70

Training & Staff Development                                                                                 1,435

 

Total Expense

 

 

22,753.86

 

Net Income

 

 

(22,753.86)

 

 

NET COMPREHENSIVE LOSS

 

$

 

-

 

$

 

-

BASIC AND DILUTED LOSS PER SHARE:

Net loss per common share - basic and diluted

 

 

 

 

($0.0005) $

 

 

-

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

Basic44,199,001155,199,001 

 

 

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

F-3


Labwire, Inc.

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (UNAUDITED)

 

Additional

 Preferred Stock  Common Stock Paid-inAccumulated 

# of Share

 

s

Amount

 

# of Shares

Amount

Capital

Deficit

 

TOTAL

 

 

Balance - January 1, 2018

 

 

-

 

 

$ -

 

 

 

155,199,001

 

 

$155,199

 

 

$ 658,174

 

 

$ (825,873)

 

 

 

$

Net Income(Loss) -

 

 

 

 

 

 

 

 

 

December 31, 2018

- -  

- -  

- 

 -  

 -  

 

 

Balance - January 1, 2019

 

 

-

 

$

-

 

 

155,199,001

 

 

$155,199$658,174 

 

 

$ (825,873)

 

 

$

 

Net Income(Loss) - December 31, 2020

 

 

- -  

 

 

- -  

 

 

- 

 

 

 -  

 

 

 -  

Balance - December 31, 2020

- $ -  

155,199,001 $155,199  

$658,174 

 $ (825,873)

 $ -  

 

 

Balance - January 1, 2020

 

 

-

 

$

-

 

 

155,199,001

 

 

$155,199$658,174 

 

 

$ (825,873)

 

 

$

Issuance of Shares

15

 

 

 

 

 

Net Income(Loss) -

 

 

 

 

 

 

December 31, 2021

 -  

- -  

- 

 -  

 -  

Balance - December 31, 2021

 15 $ -  

155,199,001 $155,199  

 $658,174

 $ (825,873)

$ -  

 

 

 

 

(111,000,00

 

 

 

 

 

Issuance of Shares

  

0) (111,000)  

111,000 

  

  

Net Income(Loss) -

December 31, 2022

 

 -  

 

- -  

 

- 

 

(22,754)  

 

(22,754)

Balance - December 31, 2022

 

 15 $ -  

 

44,199,001 $44,199  

 

 $781,674

 

 $ (827,689)

 

(22,754)

 

 

 

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

 

 

 

F-4


Labwire, Inc.

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

For the Year Ended December 31,

 

 

2022

2021

OPERATING ACTIVITIES

Net Income

 

 

(22,753.86)

 

Adjustments to reconcile Net Income to net cash provided by operations:

Other Payable

 

 

 

20,938.00

 

Related Party Payable

1,815.86

22,753.86

Net cash provided by Operating Activities

0.00

 

Net cash increase for period

0.00

 

Cash at end of period

0.00

 

 

 

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

 

 

 

F-5


Labwire, Inc.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022 (Unaudited)

 

NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS

Labwire, Inc. (the “Company”, “we”, “us” or “our”), a Nevada corporation, has a fiscal year end of December 31 and is listed on the OTC Pink Markets under the trading symbol LBWR. The Company had abandoned its business and failed to take steps to dissolve, liquidate and distribute its assets. It had also failed to meet the required reporting requirements with the Nevada Secretary of State, hold an annual meeting of stockholders and pay its annual franchise tax from 2009 to 2021 which resulted in its Nevada charter being revoked. The Company also failed to provide adequate current public information as defined in Rule 144, promulgated under the Securities Act of 1933, and was thus subject to revocation by the Securities and Exchange Commission pursuant to Section 12(k) of the Exchange Act. On December 22, 2020, a shareholder filed a petition for custodianship, with the District Court, Clark County, Nevada and was appointed as the custodian of the Company on February 23, 2021. The Company’s Nevada charter was reinstated on May 5, 2021, and all required reports were filed with the State of Nevada soon after. The Company remains active as of the date of this report and is currently taking steps to provide adequate current public information to meet the requirements under the Securities Act of 1933. The custodian was not able to recover any of the Company’s accounting records from previous management but was able to get the shareholder information hence the Company’s outstanding common shares were reflected in the equity section of the accompanying unaudited financial statements for fiscal Period Ended 2019 and 2018, and for the quarters ending September 30 and September 30, 2021.

The Company was incorporated in Nevada on October 8, 2004 as Labwire, Inc. (referred to herein as "the Company"). The Company was established as an employee screening company specializing in drug testing and background investigations.

 

The company incurred operating losses in 2008 and other previous years resulting in accumulated deficit of $837,403 as at December 31, 2008. By December 10, 2009, the Company filed Form 15‐12G with the SEC to terminate its reporting obligations under the 1934 Act. After their reports of July 7, 2010, the Company stopped all forms of making public report of its operation and financial results.

 

On November 30, 2020, International Venture Society, LLC, a shareholder of the Company, served a demand to the Company, at last address of record, to comply with the Nevada Secretary of State statues N.R.S. 78.710 and N.R.S.

78.150. On December 22, 2020, a petition was filed against the Company in the District Court of Clark County, Nevada, entitled “In the Matter of Labwire, Inc., a Nevada corporation” under case number A‐20‐826821‐C by International Venture Society, LLC, along with an Application for Appointment of Custodian, after several attempts to locate prior management and reinstate the Company’s Nevada charter, which had been revoked.

 

On February 23, 2021, the District Court of Clark County, Nevada entered an Order Granting Application for Appointment of International Venture Society, LLC (the “Order”), as Custodian of the Company. Pursuant to the Order, the International Venture Society, LLC (the “Custodian”) has the authority to take any actions on behalf of the Company, that are reasonable, prudent or for the benefit of pursuant to, including, but not limited to, issuing shares of stock and issuing new classes of stock, as well as entering in contracts on behalf of the Company. In addition, the Custodian, pursuant to the Order, is required to meet the requirements under the Nevada charter.

 

On May 2, 2021, pursuant to a Securities Purchase Agreement (SPA) the Custodian granted to Alpharidge Capital, LLC., 15 Series A preferred shares (convertible at 1 into 200,000,000 common shares, and voting rights of 60% of all votes) in exchange for $50,000 and additional $12,000 to co‐fund the reinstatement of the Company with the State of Nevada. Goldstein Franklin also undertook to make all reasonable efforts to provide adequate current public information to meet the requirements under the Securities Act of 1933.

On May 2, 2021, the Custodian appointed Robert E. Altermatt, who is associated to Alpharidge Capital, LLC., as the Company’s sole officer, secretary, treasurer and director.


The purchaser of the 15 Series A preferred shares has control of the Company through 60% voting rights over all classes of stock and the 15 Series A preferred shares are convertible into 3,000,000,000 (15 Series A preferred shares multiplied by 200,000,000) shares of the Company’s common stock. However, the court appointed control still remains with the Custodian until the Custodian files a petition with the District Court of Clark County, Nevada to relinquish custodianship and control of the Company.

On May 5, 2021, the Company filed a Certificate of Revival with the Secretary State of the State of Nevada, which reinstated the Company’s charter and appointed a new Resident Agent in Nevada.

On March 16, 2022, the Company obtained a court summary judgment to cancel 120,000,000 shares of the Company’s issued and outstanding common stock. To facilitate the cancellation, the Company negotiated to reissue 9,000,000 to some of those whose shares were cancelled. The canceled shares were believed to be improperly issued by previous management of the company.

On 1/31/2023, Alpharidge Capital sold Fifteen (15) or 100% of Special 2021 Series A Preferred Stock issued and outstanding to Shin Hwang, Sole owner at Imperium Partners LLC.

On February 16, 2023, LBWR purchase 100% interest in the Cessil Company, an operator of $0.99 store chain in Arizona.

 

NOTE 2 – BASIS OF PRESENTATION AND GOING CONCERN

Basis of Presentation

 

The Company has earned insignificant revenues from limited principal operations. Accordingly, the Company’s activities have been accounted for as those of a “Development Stage Enterprise” as set forth in Financial Accounting Standards Board Statement No. 7 (“SFAS 7”). Among the disclosures required by SFAS 7 are that the Company’s financial statements be identified as those of a development stage company, and that the statements of operations, stockholders’ equity (deficit) and cash flows disclose activity since the date of the Company’s inception.

Basis of Accounting

 

The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States. All intercompany transactions have been eliminated.

Going Concern

 

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business. The Company currently has no operations with an accumulated deficit of $825,873 as of September 30, 2022. The Company intends to commence operations as set out below and raise the necessary funds to carry out the aforementioned strategies. The Company cannot be certain that it will be successful in these strategies even with the required funding.

These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

NOTE 3 ‐ SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates

 

The preparation of financial statements in conformity with U.S. 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 consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.


Cash and Cash Equivalents

 

For purposes of the statement of cash flows, cash equivalents include demand deposits, money market funds, and all highly liquid debt instructions with original maturities of three months or less.

Financial Instruments

 

The FASB issued ASC 820‐10, Fair Value Measurements and Disclosures, for financial assets and liabilities. ASC 820‐10 provides a framework for measuring fair value and requires expanded disclosures regarding fair value measurements. ASC 820‐10 defines fair value as the price that would be received for an asset or the exit price that would be paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants on the measurement date. ASC 820‐10 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs, where available. The following summarizes the three levels of inputs required by the standard that the Company uses to measure fair value:

Level 1: Quoted prices in active markets for identical assets or liabilities 

Level 2: Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the related assets or liabilities. 

Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. 

 

Concentrations and Credit Risks

 

The Company’s financial instruments that are exposed to concentrations and credit risk primarily consist of its cash, sales and accounts receivable. The Company places its cash and cash equivalents with financial institutions of high credit worthiness. At times, its cash and cash equivalents with a particular financial institution may exceed any applicable government insurance limits. The Company’s management plans to assess the financial strength and credit worthiness of any parties to which it extends funds, and as such, it believes that any associated credit risk exposures are limited.

 

Foreign Currency Translation

 

The accounts of the Company are accounted for in accordance with the Statement of Financial Accounting Statements No. 52 (“SFAS 52”), “Foreign Currency Translation”. The financial statements of the Company are translated into US dollars as follows: assets and liabilities at year‐end exchange rates; income, expenses and cash flows at average exchange rates; and shareholders’ equity at historical exchange rate.

Monetary assets and liabilities, and the related revenue, expense, gain and loss accounts, of the Company are re‐ measured at year‐end exchange rates. Non‐monetary assets and liabilities, and the related revenue, expense, gain and loss accounts are re‐measured at historical rates. Adjustments which result from the re‐measurement of the assets and liabilities of the Company are included in net income.

Share‐Based Compensation

 

ASC 718, Compensation – Stock Compensation, prescribes accounting and reporting standards for all share‐based payment transactions in which employee services are acquired. Transactions include incurring liabilities, or issuing or offering to issue shares, options, and other equity instruments such as employee stock ownership plans and stock appreciation rights. Share‐based payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values. That expense is recognized in the period of grant.

The Company accounts for stock‐based compensation issued to non‐employees and consultants in accordance with the provisions of ASC 505‐50, Equity – Based Payments to Non‐Employees. Measurement of share‐based payment transactions with non‐employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share‐based payment transaction is determined at the earlier of performance commitment date or performance


completion date.

As of December 31, 2022 and 2021 respectively, there was $0.00 of unrecognized expense related to non‐vested stock‐ based compensation arrangements granted. There have been no options granted during the three months endedDecember 31, 2022 and 2021, respectively.

Income Taxes

 

The Company accounts for income taxes under ASC 740, Income Taxes. Under the asset and liability method of ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. 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. Deferred tax assets or liabilities were offset by a 100% valuation allowance, therefore there has been no recognized benefit as ofDecember 31, 2022 and 2021, respectively. Further it is unlikely with the change of control that the Company will have the ability to realize any future tax benefits that may exist.

Commitments and Contingencies

 

The Company follows ASC 450‐20, Loss Contingencies, to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated.

 

Earnings Per Share

 

Net income (loss) per share is calculated in accordance with ASC 260, Earnings Per Share. The weighted‐average number of common shares outstanding during each period is used to compute basic earnings or loss per share. Diluted earnings or loss per share is computed using the weighted average number of shares and diluted potential common shares outstanding. Dilutive potential common shares are additional common shares assumed to be exercised.

Basic net income (loss) per common share is based on the weighted average number of shares of common stock outstanding at December 31, 2022 and 2021. Due to net operating loss, there is no presentation of dilutive earnings per share, as it would be anti‐dilutive.

Forgiveness of Indebtedness

 

The Company follows the guidance of AS 470.10 related to debt forgiveness and extinguishment. Debts of the Company are considered extinguished when the statute of limitations in the applicable jurisdiction expires or when terminated by judicial authority such as the granting of a declaratory judgment. Debts to related parties or shareholders are treated as capital transactions when forgiven or extinguished and credited to additional paid in capital. Debts to non‐related parties are treated as other income when forgiven or extinguished.

Recent Accounting Pronouncements

 

We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe any of these pronouncements will have a material impact on the Company.

In August 2017, the FASB issued ASU No. 2017‐12, Derivatives and Hedging (Topic 815), which changes both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results, in order to better align an entity’s risk management activities and financial reporting for hedging relationships. The amendments expand and refine hedge accounting for both non‐financial and financial risk components and align the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. FASB ASU No. 2017‐12 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual reporting periods, with early adoption permitted. We are still evaluating the impact that this guidance will have on our financial position or results of operations, and we have not yet determined whether we will early


adopt FASB ASU No. 2017‐12.

In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016‐09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share‐Based Payment Accounting. This guidance changes how companies account for certain aspects of share‐based payments to employees. Among other things, under the new guidance, companies will no longer record excess tax benefits and certain tax deficiencies in additional paid‐in‐capital (“APIC”), but will instead record such items as income tax expense or benefit in the income statement, and APIC pools will be eliminated. Companies will apply this guidance prospectively. Another component of the new guidance allows companies to make an accounting policy election for the impact of forfeitures on the recognition of expense for share‐based payment awards, whereby forfeitures can be estimated, as required today, or recognized when they occur. If elected, the change to recognize forfeitures when they occur needs to be adopted using a modified retrospective approach. All of the guidance will be effective for the Company in the fiscal year beginning January 1, 2018. Early adoption is permitted. The Company is currently evaluating the impact of this guidance, if any, on its financial statements and related disclosures.

In February 2016, the FASB issued ASU No. 2016‐02, Leases (Topic 842), which establishes new accounting and disclosure requirements for leases. FASB ASU No. 2016‐02 requires lessees to classify most leases as either finance or operating leases and to initially recognize a lease liability and right‐of‐use asset. Entities may elect to account for certain short‐term leases (with a term of 12 months or less) using a method similar to the current operating lease model. The statements of operations will include, for finance leases, separate recognition of interest on the lease liability and amortization of the right‐of‐use asset and for operating leases, a single lease cost, calculated so that the cost of the lease is allocated over the lease term on a straight‐line basis. While we are in the early stages of our implementation process for FASB ASU No. 2016‐02, and have not yet determined its impact on our financial position or results of operations, these leases would potentially be required to be presented on the balance sheet in accordance with the requirements of FASB ASU No. 2016‐02. FASB ASU No. 2016‐02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual reporting periods, with early adoption permitted. FASB ASU No. 2016‐02 must be applied using a modified retrospective approach, which requires recognition and measurement of leases at the beginning of the earliest period presented, with certain practical expedients available.

In July 2015, the FASB issued ASU No. 2015‐11, Inventory (Topic 330): Simplifying the Measurement of Inventory. The guidance requires an entity to measure inventory at the lower of cost or net realizable value, which is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation, rather than the lower of cost or market in the previous guidance. This amendment applies to inventory that is measured using first‐in, first‐out (FIFO). This amendment is effective for public entities for fiscal years beginning after December 15, 2016, including interim periods within those years. A reporting entity should apply the amendments prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact of this guidance, if any, on its financial statements and related disclosures.

In May 2014, the FASB issued ASU No. 2014‐09, Revenue from Contracts with Customers (“ASU 2014‐09”), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014‐09 will replace most existing revenue recognition guidance in U.S. generally accepted accounting principles when it becomes effective. In July 2015, the FASB deferred the effective date of the standard by an additional year; however, it provided companies the option to adopt one year earlier, commensurate with the original effective date. Accordingly, the standard will be effective for the Company in the fiscal year beginning January 1, 2018, with an option to adopt the standard for the fiscal year beginning January 1, 2017. The Company is currently evaluating this standard and has not yet selected a transition method or the effective date on which it plans to adopt the standard, nor has it determined the effect of the standard on its financial statements and related disclosures.

NOTE 4 ‐ INCOME TAXES

Income taxes are provided based upon the liability method. Under this approach, deferred income taxes are recorded to reflect the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year‐end. A valuation allowance is recorded against deferred tax assets if management does not believe the Company has met the “more likely than not” standard imposed by accounting standards to allow recognition of such an asset.


 

Deferred tax assets/liabilities were as follows as of December 31, 2022 and 2021:

 

Description

 

Decembe 31, 2022

December 31, 2021

Net operating loss carry forward

 

827,689

825,873

Valuation allowance

 

(827,689)

(825,873)

Total

$ 

 

$ 

As of September 30, 2022, the Company expected no net deferred tax assets to be recognized, resulting from net operating loss carry forwards. Deferred tax assets were offset by a corresponding allowance of 100%.

The Company experienced a change in control during the year, and therefore no more than an insignificant portion of this net operating allowance will ever be used against future taxable income.

NOTE 5 – NOTES PAYABLE – RELATED PARTIES

The following notes payable were from related parties:

NOTE 6 – CONVERTIBLE NOTES PAYABLE

There were no convertible notes payable during the period:

NOTE 7 ‐ COMMITMENTS AND CONTINGENCIES

Risks and Uncertainties

 

The Company’s operations are subject to significant risks and uncertainties including financial, operational and regulatory risks, including the potential risk of business failure.

The Company has entered into no contracts during the year as follows:

Legal and other matters

In the normal course of business, the Company may become a party to litigation matters involving claims against the Company. The Company's management is unaware of any pending or threatened assertions and there are no current matters that would have a material effect on the Company’s financial position or results of operations.

NOTE 8 ‐ SUBSEQUENT EVENTS

Management has evaluated subsequent events through the date of filing the consolidated financial statements with OTC Markets, the date the consolidated financial statements were available to be issued. Management is not aware of any significant events that occurred subsequent to the balance sheet date that would have a material effect on the consolidated financial statements thereby requiring adjustment or disclosure, other than those noted below:

·On February 16, 2023, LBWR purchased 100% interest in the Cessil Company.  


Unaudited financial statements of Cessil Corporation

for the years ended December 31, 2022, and December 31, 2021


CESSIL COMPANY

BALANCE SHEETS

(UNAUDITED)

 

 

 

As of December 31,

Notes

2022

2021

ASSETS

 

 

 

Current Assets

 

 

 

           Cash

4

94,007

126,216

           Inventory

5

273,847

278,847

           Other Assets

6

34,275

34,275

Total Current Assets

 

402,129

439,338

Non-Current Assets

 

 

 

           Fixed Assets

7

(0)

(0)

Total Non-Current Assets

 

(0)

(0)

TOTAL ASSETS

 

402,129

439,338

LIABILITIES & EQUITY

 

 

 

Current Liabilities

 

 

 

           Other Payables

8

18,024

36,997

Total Current Liabilities

 

18,024

36,997

Long Term Liabilities

 

 

 

           Loans

9

135,000

145,000

Total Long-Term Liabilities

 

135,000

145,000

Capital Stock

 

200,000

200,000

Retained Earnings

 

57,341

71,625

Shareholder Distribution

 

(71,226)

(91,770)

Current Income (Loss)

 

62,990

77,486

Total Equity

 

249,105

257,341

TOTAL LIABILITIES & EQUITY

 

402,129

439,338

 

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

F-13


 

CESSIL COMPANY

STATEMENTS OF PROFIT AND LOSS

(UNAUDITED)

 

 

 

 

For the Year Ended December 31,

 

 

 

2022

2021

Ordinary Income/Expense

 

 

 

Revenue

 

 

 

 

Sales

1,423,416

1,363,584

 

 

Cost of Goods Sold

(807,438)

(802,506)

 

 

 

 

 

 

Gross Profit

615,978

561,077

 

 

 

 

 

 

Operating Expenses

 

 

 

 

Auto Expense   

(10,279)

(10,172)

 

 

Bank Charges   

(25,622)

(23,974)

 

 

Employee compensation and benefits

(240,474)

(213,730)

 

 

Insurance - General  

(10,103)

(7,803)

 

 

Other

(19,766)

(19,654)

 

 

Rent

(150,411)

(159,822)

 

 

Repairs & Maintenance  

(3,121)

(5,671)

 

 

Sales Tax   

(94,449)

(89,527)

 

 

Utilities    

(17,635)

(15,895)

 

 

 

 

 

 

Total operating expenses  

(571,860)

(546,249)

 

 

 

 

 

 

Operating Income

44,118

14,828

 

Other Income (Expenses)

 

 

 

 

Sales - Lottery

20,862

17,899

 

 

Other Income (Expenses)

(1,991)

44,758

 

 

 

 

 

 

Total Other Income (Expense)  

18,872

62,658

 

 

 

 

 

 

Net Income

62,990

77,486

 

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

F-14


 

 

CESSIL COMPANY

STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

(UNAUDITED)

 

 

 

 

Shareholder Distribution

 

Retained Earnings

 

 

 

Common Stock

 

 

 

TOTAL

 

 

 

 

 

 

 

 

Balance - December 31, 2021

200,000

 

(91,770)

 

149,111

 

257,341

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) - December 31, 2022

 

 

 

 

62,990

 

62,990

 

 

 

 

 

 

 

 

Changes in Shareholder Distribution

 

 

20,544

 

 

 

20,544

 

 

 

 

 

 

 

 

Changes in Retained Earnings

 

 

 

 

(91,770)

 

(91,770)

 

 

 

 

 

 

 

 

Balance - December 31, 2022

200,000

 

(71,226)

 

120,331

 

249,105

 

 

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

F-15


 

CESSIL COMPANY

STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

For the Year Ended December 31,

2022

2021

Cash Flows from Operating Activities:

 

 

Net income(loss)

62,990

77,486

Adjustments to Reconcile Net Income:

 

 

Depreciation and amortization

-

-

Adjustment to Inventory

5,000

-

Changes in Changes in operating assets and liabilities:

 

 

Other Assets

-

-

Other Payables

(18,973)

10,439

Net Cash Used In Operating Activities

49,017

87,926

Cash Flows from Investing Activities:

 

 

Purchases of property and equipment

-

-

Net Cash Provided By Investing Activities

-

-

Cash Flows from Financing Activities:

 

 

Payment of long-term debt

(10,000)

-

Changes in Shareholder Distribution

20,544

(80,483)

Changes in Retained Earnings

(91,770)

891

 

 

 

Net Cash Used By Financing Activities

(81,226)

(79,592)

 

 

 

Net Change in Cash

(32,209)

8,333

Cash and Cash Equivalents - Beginning of Year

126,216

117,883

Cash and Cash Equivalents - End of Year

94,007

126,216

 

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

F-16


 

CESSIL COMPANY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

December 31, 2022 (Unaudited)

 

NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS

Cessil Company (the “Company”, “we”, “us” or “our”), an Arizona corporation, has a fiscal year end of December 31 and is a operator of discount retail stores in the United States.

On February 16, 2023, LBWR purchased 100% interest in the Cessil Company.

NOTE 2 – BASIS OF PRESENTATION AND GOING CONCERN

Basis of Presentation

The financial statements include the financial statements of the Company, and its wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated in consolidation.  

Basis of Accounting

The financial statements of the Company have been prepared on the cash‐basis of accounting, modified to record assets or liabilities with respect to cash transactions and events that provide a benefit or result in an obligation that covers a period greater than the period in which the cash transaction or event occurred. The modifications result in the recording of investments, inventories, capital assets, and related short‐term and long‐term obligations on the statement of financial position. This method of accounting represents a comprehensive basis of accounting other than accounting principles generally accepted in the United States of America (GAAP). This basis of accounting differs from GAAP primarily because certain revenue and related assets (such as accounts receivable and revenue for billed or provided services not yet collected, and other accrued revenue and receivables) have been recognized when received rather than when earned and certain expenses and related liabilities (such as accounts payable and expenses for goods or services received but not yet paid, and other accrued liabilities and expenses) have been recognized when paid rather than when the obligations were incurred.

Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the liquidation of liabilities in the normal course of business.

F-17


 

NOTE 4 - CASH

The following table lists the components of the cash as of December 31, 2022 and 2021:

 

As of

Description

31 December 2022

31 December 2021

 

 

 

Cash on Hand

2,377   

2,238   

Cash in Checking-Chase (0345)

529   

273   

Cash in Savings (8259)

82,039   

110,029   

Cash in Checking-Chase (6331)

5,368   

4,652   

Cash in Checking-Chase (4328)

3,695   

9,023   

 

 

 

TOTAL Cash

94,007   

126,216   

NOTE 5 – INVENTORY

Merchandise inventories at our distribution centers are stated at the lower of cost or net realizable value, determined on a cost basis.

NOTE 6 – OTHER ASSETS

The following table lists the components of the other assets as of December 31, 2022 and 2021:

 

As of

Description

31 December 2022

31 December 2021

 

 

 

Covenant Not Compete

10,000   

10,000   

A/A-Covenant Not Compete

(10,000)  

(10,000)  

Other Deposits

34,274   

34,274   

Organization Costs

4,096   

4,096   

Accumulated Amortization

(4,096)  

(4,096)  

 

 

 

TOTAL Other Assets

34,275   

34,275   

NOTE 7 – FIXED ASSETS

The following table lists the components of the fixed assets as of December 31, 2022 and 2021:

F-18


 

 

As of

Description

31 December 2022

31 December 2021

Furniture & Fixtures

4,302   

4,302   

Machinery & Equipment

9,689   

9,689   

Accumulated Depreciation

(13,992)  

(13,992)  

 

 

 

TOTAL Fixed Assets

-   

-   

NOTE 8 – OTHER PAYABLES

The following table lists the components of the other payables as of December 31, 2022 and 2021:

 

As of

Description

31 December 2022

31 December 2021

CC Payable-Citi 5896 (Ph)

3,696   

13,119   

CC Payable-Citi 1837 (Gl)

8,552   

15,676   

CC Payable-Amex Amazon 61000

464   

1,296   

FWT

1,675   

2,989   

FICA

1,667   

1,991   

Medicare

390   

466   

SWT

1,580   

1,460   

TOTAL Other Payables

18,024   

36,997   

NOTE 9 – LOANS

The following table lists the components of the loans as of December 31, 2022 and 2021:

 

As of

Description

31 December 2022

31 December 2021

 

 

 

N/P-Small Business

35,000   

35,000   

N/P-SBA Disaster Loan

100,000   

110,000   

 

 

 

TOTAL Long-Term Liabilities

35,000   

145,000   

 

F-19

 

NOTE 10 - COMMITMENTS AND CONTINGENCIES

Risks and Uncertainties

The Company’s operations are subject to risks and uncertainties including financial, operational and regulatory risks.


Legal and other matters

In the normal course of business, the Company may become a party to litigation matters involving claims against the Company. The Company's management is unaware of any pending or threatened assertions and there are no current matters that would have a material effect on the Company’s financial position or results of operations.

NOTE 8 - SUBSEQUENT EVENTS

Management has evaluated subsequent events through the date the financial statements were available to be issued. Except for the item listed below, management is not aware of any significant events that occurred subsequent to the balance sheet date that would have a material effect on the financial statements thereby requiring adjustment or disclosure.

·On February 16, 2023, LBWR purchased 100% interest in the Cessil Company.  

 

 

F-20


LABWIRE, Inc.

UNAUDITED

PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

 

 

Labwire, Inc. (the “Company”, “we”, “us” or “our”), was incorporated under the laws of the State of Nevada on October 8, 2004. The Company has a fiscal year end of December 31 and is listed on the OTC Pink Markets under the trading symbol LBWR.

On February 16, 2023, LBWR purchased 100% interest in the Cessil Company, an operator of $0.99 store chain in Arizona, in exchange for a total of 80,000,000 (eighty million) of LBWR’s common stock.

The following unaudited pro forma condensed combined financial statements have been prepared to give effect to the Acquisition. These unaudited pro forma combined financial statements are derived from the historical consolidated financial statements of the Company and Cessil Company. These financial statements have been adjusted as described in the notes to the unaudited pro forma condensed combined financial statements.

The unaudited pro forma condensed combined balance sheet combines the historical consolidated balance sheets of the Company and Cessil Company, has been prepared assuming the Acquisition closed on December 31, 2022, and includes preliminary adjustments to reflect the events that are directly attributable to the Acquisition and factually supportable. In addition, the unaudited pro forma condensed combined statement of operations combines the historical consolidated statements of operations of the Company and Cessil Company and has also been adjusted to give effect to pro forma events that are directly attributable to the Acquisition, factually supportable and expected to have a continuing impact on the combined results. The unaudited pro forma combined statement of operations has been prepared assuming the Acquisition closed on January 1, 2022.

The Company has prepared the unaudited pro forma combined condensed financial statements based on available information using assumptions that it believes are reasonable. These pro forma financial statements are being provided for informational purposes only and do not claim to represent the Company’s actual financial position or results of operations had the Acquisition occurred on that date specified nor do they project the Company’s results of operations or financial position for any future period or date. The actual results reported by the combined company in periods following the Acquisition may differ significantly from these unaudited pro forma combined condensed financial statements for a number of reasons. The pro forma financial statements do not account for the cost of any restructuring activities or synergies resulting from the Acquisition or other costs relating to the integration of the two companies, or other historical acquisitions that were undertaken by the Company.

The unaudited pro forma combined condensed financial statements were prepared using the acquisition method of accounting as outlined in Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 805, Business Combinations, with the Company considered the acquiring company. Based on the acquisition method of accounting, the consideration paid for Cessil Company is allocated to its assets and liabilities based on their fair value as of the date of the completion of the Acquisition. The purchase price allocation and valuation is based on preliminary estimates, subject to final adjustments and provided for informational purposes only.

These unaudited pro forma combined condensed financial statements should be read in conjunction with the Company’s historical consolidated financial statements and accompanying notes included in the Company’s Disclosure Statement Pursuant to the Pink Basic Disclosure Guidelines for the year ended December 31, 2022.

 

F-21


LABWIRE, Inc.

UNAUDITED

PRO FORMA CONDENSED COMBINED BALANCE SHEETS

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2022

 

 

Historical

 

 

 

Labwire Inc

Cessil Compnay

Pro Forma Adjustments

Notes

Pro Forma Combined

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

           Cash

-

94,007

-

 

94,007

 

           Inventory

-

273,847

-

 

273,847

 

           Other Assets

-

34,275

-

 

34,275

 

Total Current Assets

-

402,129

-

 

402,129

 

Non-Current Assets

 

 

 

 

 

 

           Fixed Assets

-

-

-

 

-

 

           Goodwill

-

-

750,895

(d)

750,895

 

Total Non-Current Assets

-

-

750,895

 

750,895

 

TOTAL ASSETS

-

402,129

750,895

 

1,153,024

 

LIABILITIES & EQUITY

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

           Other Payables

22,754

18,024

 

 

40,778

 

Total Current Liabilities

22,754

18,024

-

 

40,778

 

 

 

 

 

 

 

 

Long Term Liabilities

 

 

 

 

 

 

           Loans

-

135,000

-

 

135,000

 

Total Long-Term Liabilities

-

135,000

-

 

135,000

 

 

 

 

 

 

 

 

Capital Stock

-

200,000

(75,000)

(b) (c) (e)

125,000

 

Preferred Stock

44,199

-

-

 

44,199

 

Additional Paid-in

781,674

-

1,437,500

(b) (e)

2,219,174

 

Retained Earnings

(848,627)

120,331

(682,831)

(a) (c)

(1,411,127)

 

Shareholder Distribution

-

(71,226)

71,226

(c)

-

 

Total Equity

(22,754)

249,105

750,895

 

977,246

 

TOTAL LIABILITIES & EQUITY

-

402,129

750,895

 

1,153,024

 

 

F-22


 

 

LABWIRE, Inc.

UNAUDITED

PRO FORMA CONDENSED COMBINED STATEMENTS OF OPERATIONS

FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2022

 

 

 

Historical

 

 

 

 

Labwire Inc

Cessil Company

Pro Forma Adjustments

Notes

Pro Forma Combined

 

 

 

Ordinary Income/Expense

 

 

 

 

 

 

Revenue

 

 

 

 

 

 

 

Sales

-   

1,423,416   

-   

 

1,423,416   

 

 

Cost of Goods Sold

-   

(807,438)  

-   

 

(807,438)  

 

Gross Profit

-   

615,978   

-   

 

615,978   

 

Operating Expenses

 

 

 

 

 

 

 

Auto Expense   

(347)  

(10,279)  

-   

 

(10,626)  

 

 

Bank Charges   

-   

(25,622)  

-   

 

(25,622)  

 

 

Employee compensation and benefits

-   

(240,474)  

-   

 

(240,474)  

 

 

Insurance - General  

(168)  

(10,103)  

-   

 

(10,271)  

 

 

Other

(8,581)  

(15,970)  

-   

 

(24,551)  

 

 

Rent

(2,003)  

(150,411)  

-   

 

(152,414)  

 

 

Repairs & Maintenance  

(625)  

(3,121)  

-   

 

(3,746)  

 

 

Sales Tax   

-   

(94,449)  

-   

 

(94,449)  

 

 

Utilities    

-   

(17,635)  

-   

 

(17,635)  

 

 

Dues & Subscriptions  

(7,479)  

(261)  

-   

 

(7,740)  

 

 

Legal & Accounting  

(3,551)  

(3,535)  

(562,500)  

(a)  

(569,586)  

 

Total operating expenses  

(22,754)  

(571,860)  

(562,500)  

 

(1,157,114)  

 

Operating Income

(22,754)  

44,118   

(562,500)  

 

(541,136)  

 

Other Income (Expenses)

 

 

 

 

 

 

 

Sales - Lottery

-   

20,862   

-   

 

20,862   

 

 

Other Income (Expenses)

-   

(1,991)  

-   

 

(1,991)  

 

Total Other Income (Expense)  

-   

18,872   

-   

 

18,872   

 

Net Income

(22,754)  

62,990   

(562,500)  

 

(522,264)  

 

BASIC AND DILUTED LOSS PER SHARE:

 

 

 

 

 

 

      Net loss per common share basic and diluted

($0.0005)  

 

 

 

$ (0.0031)  

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

 

 

 

 

 

 

      Basic

44,199,001   

 

 

 

169,199,001   

   


F-23

 

LABWIRE, Inc.

NOTES TO UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS

DECEMBER 31, 2022

 

NOTE 1 – BASIS OF PRESENTATION

The unaudited pro forma condensed combined balance sheet as of December 31, 2022 combines the historical consolidated balance sheets of the Company and Cessil Company and has been prepared as if the Acquisition had occurred on December 31,2022. The unaudited pro forma combined statement of operations for the year ended December 31, 2022 combines the historical consolidated statement of operations of the Company and Cessil Company and has been prepared has been prepared as if the Acquisition closed on January 1, 2022. The unaudited pro forma condensed combined financial statements have also been adjusted to give effect to pro forma events that are directly attributable to the Acquisition, factually supportable and expected to have a continuing impact on the combined results.

NOTE 2 – PURCHASE PRICE

The acquisition of Cessil Company has been accounted for under the purchase method of accounting as outlined in Financial Accounting Standards Board Accounting Standards Codification (“ASC”) 805, Business Combinations, with the Company considered the acquiring company.

Under the purchase method of accounting, the purchase price is allocated to the assets acquired and liabilities assumed based on their estimated fair values.

The purchase price allocation and valuation are based on preliminary estimates, subject to final adjustments and provided for informational purposes only.

Cessil Company does not issue a capital stock as of the closing date, and it consists of member ownership under sole proprietorship.

Based upon information available at the time of preparing these Pro Forma financial statements, the aggregate purchase price is estimated to be $1,000,000 as follows (in Dollars):

Labwire common stock issued to Cessil’s owner (80,000,000 x $0.0125)

1,000,000

Total purchase price

1,000,000

 

F-24


The preliminary allocation of the purchase price is summarized below (in Dollars):

Fair value of assets

402,129

Liabilities assumed

(153,024)

Net assets acquired

249,105

Goodwill

750,895

Purchase price

1,000,000

In the unaudited pro forma combined balance sheet as of December 31, 2022, the excess of the aggregate purchase price over the estimated fair value of the tangible and intangible assets and liabilities in the amount of approximately $750,895 was classified as goodwill.

NOTE 3 – PRO FORMA ADJUSTMENTS

There were no inter-company balances or transactions between the Company and Cessil Company prior to the acquisition date.

The pro forma adjustments included in the unaudited pro forma condensed combined financial statements are as follows:

a)Adjustment to account for the direct transaction costs estimated at $562,500. 

b)Adjustment to account for the issuance of 80,000,000 LBWR’s common stock in the name of Mr. Jong Chung received as a compensation for the acquisition of his business, Cessil Company. 

c)Adjustment to eliminate Cessil’s historical stockholders’ equity. 

d)Adjustment to record goodwill resulting from the Acquisition. 

e)Adjustment to account for the issuance of 45,000,000 LBWR’s common stock in the name of Mr. Shin Hwang as a compensation for the transaction costs. 

 

F-25