10-K 1 form10-k.htm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K

 

[X] ANNUAL REPORT under SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended: December 31, 2015

 

[  ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from ______ to ______

 

Commission File No. 333-196075

 

Tech Foundry Ventures, Inc.

(Exact Name of Registrant as Specified in its Charter)

 

Nevada   46-5152859
(State or other Jurisdiction of
Incorporation or Organization)
  (I.R.S. Employer
Identification No.)

 

316 California Avenue, Suite 543, Reno, NV 89509

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (888) 909-5548

 

Common Stock, $0.0001 par value per share   None
(Title of Each Class)   (Name of Each Exchange on Which Registered)

 

Securities registered under Section 12(g) of the Exchange Act: Common Stock, $0.0001 par value

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [  ] No [X]

 

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

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [  ] [check “yes” if statement is accurate.]

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S−K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of the registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10−K or any amendment to this Form 10−K. [X]

 

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

 

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

 

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

 

The aggregate market value of the voting stock held by non-affiliates of the registrant as of February 26, 2016, based upon the last sale price of the common stock of such date: $95,000.

 

The number of shares of the registrant’s common stock issued and outstanding as of March 9, 2016 was 21,950,000.

 

 

 

 

 

 

table of contents

 

PART I
Item 1. Description of Business. 3
Item 1A. Risk Factors. 7
Item 1B. Unresolved Staff Comments. 23
Item 2. Properties. 23
Item 3. Legal Proceedings. 23
Item 4. Mine Safety Disclosures. 23
PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities. 23
Item 6. Selected Financial Data. 24
Item 7. Management’s Discussion and Analysis of Financial Conditions and Results of Operations. 24
Results of Operations 24
For the year ended December 31, 2015 compared to the period from February 27, 2014 (inception) through December 31, 2014 26
Off-Balance Sheet Arrangements 31
Recent Accounting Pronouncements 31
Item 7A. Quantitative and Qualitative Disclosures about Market Risk. 31
Item 8. Financial Statements and Supplementary Data. 31
Financial Statements 32
Report of Independent Registered Public Accounting Firm F-1
Balance Sheets F-3
Statements of Operations F-4
Statement of Stockholders’ Equity (Deficit) F-5
Statements of Cash Flow F-6
Notes to the Financial Statements F-7
Item 9. Controls and Procedures. 33
Item 9B. Other Information. 34
PART III
Item 10. Directors, Executive Officers and Corporate Governance. 34
Item 11. Executive Compensation 37
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. 37
Item 13. Certain Relationships and Related Transactions, and Director Independence. 38
Item 14. Principal Accountant Fees and Services. 39
PART IV
Item 15. Exhibits, Financial Statement Schedules. 40
CERTIFICATION PURSUANT TO SECTION 302 (a) OF THE SARBANES-OXLEY ACT OF 2002
CERTIFICATION PURSUANT TO SECTION 302 (a) OF THE SARBANES-OXLEY ACT OF 2002
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ENACTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

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CAUTIONARY NOTE ABOUT FORWARD-LOOKING STATEMENTS

 

The information contained in this Report includes some statements that are not purely historical and that are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and as such, may involve risks and uncertainties. These forward-looking statements relate to, among other things, expectations of the business environment in which we operate, perceived opportunities in the market and statements regarding our mission and vision. In addition, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. You can generally identify forward-looking statements as statements containing the words “anticipates,” “believes,” “continue,” “could,” “estimates,” “expects,” “intends,” “may,” “might,” “plans,” “possible,” “potential,” “predicts,” “projects,” “seeks,” “should,” “will,” “would” and similar expressions, or the negatives of such terms, but the absence of these words does not mean that a statement is not forward-looking.

 

Forward-looking statements involve risks and uncertainties that could cause actual results or outcomes to differ materially from those expressed in the forward-looking statements. The forward-looking statements contained herein are based on various assumptions, many of which are based, in turn, upon further assumptions. Our expectations, beliefs and forward-looking statements are expressed in good faith on the basis of management’s views and assumptions as of the time the statements are made, but there can be no assurance that management’s expectations, beliefs or projections will result or be achieved or accomplished.

 

In addition to other factors and matters discussed elsewhere herein, the following are important factors that, in our view, could cause actual results to differ materially from those discussed in the forward-looking statements: technological advances, impact of competition, dependence on key personnel and the need to attract new management, effectiveness of cost and marketing efforts, acceptances of products, ability to expand markets and the availability of capital or other funding on terms satisfactory to us. We disclaim any obligation to update forward-looking statements to reflect events or circumstances after the date hereof.

 

For a discussion of the risks, uncertainties, and assumptions that could affect our future events, developments or results, you should carefully review the “Risk Factors” set forth under “Item 1. Description of Business” below. In light of these risks, uncertainties and assumptions, the future events, developments or results described by our forward-looking statements herein could turn to be materially different from those we discuss or imply.

 

PART I

 

Item 1. Description of Business.

 

Organization

 

We were incorporated under the laws of the State of Nevada on February 27, 2014 with fiscal year end in December 31. On April 28, 2014, we filed a Certificate of Correction to our Articles of Incorporation to correct a typographical error in our Articles of Incorporation to state that the total number of authorized shares were 110,000,000, $0.0001 par value rather than 100,000,000, $0.001 par value. On March 3, 2016, our Board and majority shareholders approved an amendment to our Articles of Incorporation by adding Articles Twelve through Fourteen, which, in summary: (i) grants the board the right to amend, alter, change or repeal any provision in the Articles; (ii) authorizes the Board, without the consent of the shareholders, to adopt any recapitalization affecting the outstanding securities by effecting a forward or reverse splits of all of the outstanding securities, provided the recapitalization does not require any amendment to the Articles; and (iii) authorizes the Board to change our name without shareholder approval. We are a consulting service company, which provides management and consulting services to early and middle stage start-ups. From beginning operations in March 2014 to May 31, 2015, we had not been engaged by any start-ups to provide any services; however, in June 2015, we were engaged by our first client. In December 2015, we invested $65,000 in a mineral property interest and are required to invest an additional $435,000 over the next two years to maintain our interest. We have accumulated losses in the amount of $156,994 as of December 31, 2015. We have never been party to any bankruptcy, receivership or similar proceeding, nor have we undergone any material reclassification, merger, consolidation, purchase or sale of a significant amount of assets not in the ordinary course of business.

 

We have only recently commenced planned operations and have begun to generate minimal revenue. We will not be profitable until we derive sufficient revenues and cash flows from the sale of our consulting services or from our investment in our joint venture. Our chief executive officer and director, Jeffrey T. Cocks, is our only employee. Mr. Cocks will devote at least ten hours per week to us but may increase the number of hours as necessary.

 

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On February 28, 2014, we issued 21,000,000 shares of our $0.0001 par value common stock, valued at $0.0001 per share, to our 3 founders, which includes 7,000,000 common shares to our chief executive officer, Jeffrey Cocks and 7,000,000 common shares to our director, Michael Levine, and 7,000,000 common shares to BCIM Management, LP, in exchange for organizational services incurred in our formation, which our board of directors valued at $0.0001 per share, or $700, $700, and $700, respectively for preformation services rendered to develop our organization, business model and website. In January 2015, issued 850,000 shares of our common stock at a price of $0.10 per share for $85,000. During the year ended December 31, 2015, we incurred $89,788 in operational expenses and incurred a net loss of ($87,035). We anticipate our burn rate for overhead will be approximately $2,500 per month. We believe that our present capital is sufficient to cover our monthly burn rate for the next 12 months. We believe that we will require approximately $350,000 in cash to accomplish the goals set out in our plan of operation, which includes our joint venture investment. To the extent we are unable to accomplish our goals with the proceeds from the issuance of our common stock, then we intend to raise additional capital from investors through the sale of our common stock or from loans or advances from our founding shareholders.

 

Our principal business, executive and registered statutory office is located at 316 California Avenue, Suite 543, Reno, NV 89509 and our telephone number is (888) 909-5548, fax is (888) 909-1033 and email contact is info@techfoundryventures.com. Our URL address is www.techfoundryventures.com.

 

Business

 

We are an early stage company that commenced operations in March 2014. Until May 2015, our activities were limited to organizational and business development activities. In June 2015, we entered into our first consulting agreement. We intend to assist start-ups and development stage companies, as well as established companies, with consulting services focused on providing administrative support and consulting to entertainment, web and mobile technology companies. Our mission is to assist management in early stage companies with services designed to keep them focused on their core business ideas while provide the administrative support such as bookkeeping, payroll, website development and marketing strategies. We intend to focus our marketing efforts in the digital media, entertainment, music, consumer, Internet, and social networking industries and will look at investment opportunities as we encounter them. We will use the Internet as well as the services of an independent sales representative to market our services to start-up companies in California and Nevada with our initial efforts focused in Los Angeles. We also intend to market to service professionals. We have had limited operations and have limited financial resources having raised $85,000 in our initial public offering as of January 5, 2015. Our auditors indicated in their report on our financial statements (the “Report”) that “the Company’s lack of business operations and early losses raise substantial doubt about our ability to continue as a going concern.” From our inception to May 2015, we were devoted primarily to start-up, development and operational activities, which include:

 

  1. Formation of the Company;
     
  2. Development of our business plan;
     
  3. Evaluating various target industries to market our services;
     
  4. Research on marketing channels/strategies for our services;
     
  5. Secured our website domain www.techfoundryventures.com and beginning the development of our initial online website;
     
  6. Research on services and pricing of our services; and
     
  7. Signed non-disclosure agreements with a few third parties to exchange information on cooperative marketing efforts;
     
  8. Complete our initial public offering.

 

We are offering services to target companies with the mission to assist the founders develop their product and services and provide hands-on support services to reduce startup costs and accelerate time to market. Besides general administrative services, we offer services to assist with product development and design, corporate formation and structure. We also offer virtual office space, financial and accounting resources, marketing and branding services and legal guidance by partnering with law firms and accounting firms. By offering these services, we intend to enable our potential entrepreneurial clients the time to focus on developing their products and services so they are not consumed with administrative activities that will consume valuable time from their work schedules. We believe that the administrative and other consulting services will increase the value of our potential clients’ businesses thereby increasing the attractiveness for additional capital to enable them to bring their products and services to market. We are also evaluating various investment opportunities as we encounter them and, in December 2015, we entered into a joint venture agreement to acquire a 50% interest in a mining project, which is set forth in our Plan of Operation.

 

Our goal is to assist entrepreneurs by partnering with them and providing them with the assistance and tools to bring their ideas to market. We initially targeted businesses in Southern California and are now offering our services in Nevada.

 

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Market Opportunity

 

The entertainment, web and mobile technology industries are rapidly growing sectors of the U.S. economy, and companies building entertainment and social media applications have grown their user bases and revenues at unprecedented rates in recent years. We believe that an attractive opportunity exists for a public company focused on assisting these businesses in the early-stage of their existence and technological development will provide our opportunity, which can include:

 

  Global adoption of Internet infrastructure and the proliferation of mobile technology. The cost of Internet access continues to decline, facilitating an increasing number of Internet users and driving up time spent online. This trend is magnified by the proliferation of smartphones and mobile technology, resulting in users with perpetual access to the Internet. As the Internet becomes more accessible, more data is being transmitted online, requiring evolving applications and businesses to manage this flow of information.
     
  Dramatic shifts in the way people share and consume information. The growing usage and availability of the Internet results in an increasing number of human connections. As more people are connected, an increasing volume of information is being shared. The benefits of this information flow manifest themselves in more ways than simply interacting with friends, and the Internet is becoming an increasingly important tool in businesses’ marketing programs. Connectivity among humans, when harnessed by businesses, can drive marketing costs down to virtually zero. We believe that as more consumption occurs on the Internet, more mediums of efficiently disseminating information are required. This secular shift creates vast opportunities for companies creating and investing in these technologies.
     
  Declining costs to build web- and mobile-based technology. The cost of starting and operating an Internet-based business has dramatically declined over the last decade as a result of dropping hardware costs and maturing open-source software. This decline has resulted in a shift in the capabilities web technology founders look for in a partner. Increasingly, entrepreneurs are valuing business support, brand connections, marketing and product support over the level of funding available from a partner. This adaptation creates a large and growing opportunity for web-technology incubators providing comprehensive support services to entrepreneurs.
     
  Increasing focus on web-based technology and entertainment companies by the capital market. The explosive growth of social media and entertainment content companies has attracted significant capital from investors. By consulting with these businesses, we believe we will benefit from this heightened desire for social media and entertainment investments through greater subsequent financing and sale opportunities for our client companies.

 

Our Business Strategy

 

Our goal is to consult with digital media, entertainment, music, consumer, Internet, and social networking companies, as well as other companies, by providing administrative support, which will allow management to focus on their core business. We believe this will generate capital appreciation of the client companies and realized gains for their founders. We believe that by consulting with entrepreneurs at inception, we will generate client loyalty while we add value for our potential clients. The following are key elements of our strategy:

 

  Guide our clients through the challenges of early development. We intend to help provide our client companies with the human capital to cultivate their products and services and grow into profitability. We believe that our services will reduce time, costs and accelerate the time to bring the clients’ products and services to market through managerial assistance, marketing resources, and technological collaboration. As the client companies mature, we can advise them by providing strategic guidance, access to legal and accounting resources.
     
  Apply a structured consulting process to our deployment of personnel and consultants. Web-based technology is becoming increasingly capital-efficient, and our model is optimized to leverage this trend. By advising clients in the earliest stages of their lifecycles we believe that we will achieve returns with minimal expenditures. We intend to use web-based applications, such as QuickBooks Online, to enable us to assist our clients.
     
  Consult to diverse, innovative and dynamic clients. We believe that the low capital requirements to consult with our target clients, coupled with the short development timeline of technology and start-up companies, enable us to spread our resources across a wide spectrum of clients. Some companies will achieve positive cash flow, some will require further capital, and some will fail. By diversifying our target clients and industries, we believe we will mitigate risk and enhance the value of our clients.

 

We intend to provide managerial assistance to our clients and, to the extent available, offer our services for cash or contingent compensation. We will negotiate our fees on a case-by-case basis and intend to offer hourly rates, flat fees and contingent fees for our services. The managerial assistance means, among other things, we, through our directors, officers or employees, offer to provide, and, if accepted, do provide, significant guidance and counsel concerning the management, operations or business objectives and policies of our client.

 

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We will provide a variety of services to client companies, including the following:

 

  corporate formation and structure;
     
  product development and design;
     
  administrative functions and support;
     
  office space and related office services;
     
  marketing, branding and public relations
     
  formulating operating strategies and corporate goals;
     
  formulating intellectual property and other strategies;
     
  introductions to potential joint venture partners, suppliers and customers; and
     
  assisting in financial planning.

 

We intend to derive income from our clients for the performance of these services.

 

As of the date of this Report, we have 21,950,000 shares of $0.0001 par value common stock issued and outstanding, which is owned by 37 shareholders. We have 10,000,000 authorized shares of preferred stock of which none are issued. The aggregate market value of our common stock based on the offering price of $0.10 per share is $2,195,000. Our stockholders’ deficit as of our most recent December 31, 2015 audit is ($59,894).

 

Status Of Any Publicity Announced New Products And Services

 

We currently have no new publicly announced products or services.

 

Our Website

 

Our website is located at www.techfoundryventures.com and provides a description of our company along with our contact information including our address, telephone number and e-mail address.

 

Dependence On Customers

 

We believe the consulting business is diverse so we do not anticipate being dependent on one customer for our services.

 

Trademarks And Patents

 

We do not have any registered trademarks or patents; however, we may file for trademark protection in the future we deem it necessary.

 

Need For Any Government Approval Of Principal Products Or Services

 

We are also subject to federal, state and local laws and regulations generally applied to businesses, such as payroll taxes on the state and federal levels. We believe that we are in conformity with all applicable laws in California and the United States.

 

Research and Development

 

We have not spent any money on research and development activities.

 

Employees

 

At the present time, we do not have any employees other than our sole officer who devotes his time as needed to our business and expects to devote 10 hours per week in 2016.

 

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Legal Proceedings

 

We are not involved in any legal proceedings nor are we aware of any pending or threatened litigation against us. Neither our sole officer nor our directors is a party to any legal proceeding or litigation. None of our directors or our sole officer has been convicted of a felony or misdemeanor relating to securities or performance in corporate office.

 

Item 1A. Risk Factors.

 

We are subject to those financial risks generally associated with early stage enterprises. Since we have sustained losses since inception, we will require financing to fund our development activities and to support our operations and will independently seek additional financing. However, we may be unable to obtain such financing. We are also subject to risk factors specific to our business strategy and the consulting industry.

 

RISKS ASSOCIATED WITH OUR COMPANY AND INDUSTRY

 

Since we are a startup enterprise, have generated minimal revenues and have a limited operating history, an investment in the shares offered herein is highly risky and could result in a complete loss of your investment if we are unsuccessful in our business plans.

 

We are a newly organized enterprise that was incorporated in February 27, 2014 and for the period from February 27, 2014 (inception) through December 31, 2015, we only generated $4,000 in revenues. We have a limited operating history upon which an evaluation of our future prospects can be made. From February 27, 2014 (inception) to December 31, 2015, we have incurred a net loss of ($156,994). Such prospects must be considered in light of the substantial risks, expenses and difficulties encountered by new entrants into the consulting industry. Our ability to achieve and maintain profitability and positive cash flow is highly dependent upon a number of factors, including our ability to offer services at prices that allow generate at a profit. Based upon current plans, we expect to incur operating expense in future periods as we incur expenses associated with our business. Further, we cannot guarantee that we will be successful in realizing future revenues or in achieving or sustaining positive cash flow at any time in the future. Any such failure could result in the possible closure of our business or force us to seek additional capital through loans or additional sales of our equity securities to continue business operations, which would dilute the value of any shares you purchase in this offering.

 

As a public company, we will have to comply with numerous financial reporting and legal requirements, including those pertaining to audits and internal control. The costs of this compliance could be significant. If our revenues are insufficient, and/or we cannot satisfy many of these costs through the issuance of our shares, we may be unable to satisfy these costs in the normal course of business that would result in our being unable to continue as a going concern.

 

Our independent registered auditors’ report includes an explanatory paragraph stating that there is substantial doubt about our ability to continue as a going concern.

 

Our auditor’s report on our December 31, 2015 financial statements express an opinion that substantial doubt exits as to whether we can continue as an ongoing business. Moreover, our officers may be unable or unwilling to loan or advance us any funds. See “Audited Financial Statements – Auditors Report.”

 

We had a net loss of ($87,035) for the year ended December 31, 2015. Our future is dependent upon our ability to obtain financing and upon future profitable operations from the sale of our services. We plan to seek additional funds through private placements of our common stock. Private placements of our common stock may involve substantial dilution to our existing shareholders. Our financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event we cannot continue in existence.

 

Key management personnel may leave us, which could adversely affect our ability to continue operations.

 

We are entirely dependent on the efforts of Jeffrey Cocks, our president and director, and Michael Levine, director. The loss of our officer and directors, or of other key personnel hired in the future, could have a material adverse effect on the business and its prospects. There is currently no employment contract by and between any office/director and us. Also, there is no guarantee that replacement personnel, if any, will help us to operate profitably. They have been, and continue to expect to be able to commit approximately 10 hours per week of their time, to the continued implementation of our business plan. If management is required to spend additional time with their outside employment, they may not have sufficient time to devote to us and we would be unable to continue to implement our business plan resulting in the business failure.

 

We do not maintain key person life insurance on our officer and directors.

 

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If we are unable to obtain additional funding our business operation will be harmed, and if we do obtain additional funding, our then existing shareholders may suffer substantial dilution.

 

We have limited financial resources. As of December 31, 2015, we had $39,027 in cash on hand and $104,937 in assets. From April 2014 to December 31, 2014, our initial three shareholders have advanced us $63,000 to cover our working capital expenses. We have raised $85,000 in our initial public offering. If we are unable to develop our business or secure additional funds our business would fail and our shares may be worthless. We may seek to obtain debt financing as well. There is no assurance that we will not incur debt in the future, that we will have sufficient funds to repay any indebtedness, or that we will not default on our debt obligations, jeopardizing our business viability. Furthermore, we may not be able to borrow or raise additional capital in the future to meet our needs, or to otherwise provide the capital necessary to conduct our business. There can be no assurance that financing will be available in amounts or on terms acceptable to us, if at all. The inability to obtain additional capital will restrict our ability to grow and may reduce our ability to continue to conduct business operations. If we are unable to obtain additional financing, we will likely be required to curtail our business plans and possibly cease our operations. Any additional equity financing may involve substantial dilution to our then existing shareholders.

 

General domestic and international economic conditions could have a material adverse effect on our operating results and common stock price and our ability to obtain additional financing.

 

As a result of the current economic downturn and macro-economic challenges currently affecting the economy of the United States and other parts of the world, some of the consulting services that we may desire to offer to clients could suffer delays or postponement until the economy strengthens, which could in turn effect our ability to obtain additional financing. We anticipate our revenues to be derived from the sale of our services, which could be suffer if customers are suffering from the economic downturn. During weak economic conditions, we may not experience any growth if we are unable to obtain financing to enable us to market and offer our services. If the domestic and/or international economy were to weaken, the demand for any consulting services we may desire to offer could decline, which could have a material adverse effect on our operating results and stock price.

 

Because Jeffrey Cocks, our officer and director and Michael Levine, our other director, reside outside of the United States, it may be difficult for an investor to enforce any right based on U.S. federal securities laws against Messers. Cocks and Levine, or to enforce a judgment rendered by a United States court against Messers. Cocks and Levine.

 

While our principal office and operations are located in the United States, Mr. Cocks, our officer and director and Mr. Levine, our other director, are non-residents of the United States. Therefore, it may be difficult to effect service of process on Messers. Cocks and Levine in the United States, and it may be difficult to enforce any judgment rendered against Messers. Cocks and Levine. As a result, it may be difficult or impossible for an investor to bring an action against Messers. Cocks and Levine in the event that an investor believes that such investor’s rights have been infringed under the U.S. securities laws, or otherwise. Even if an investor is successful in bringing an action of this kind, it is uncertain whether the laws of Canada may enable that investor able to enforce a judgment against the assets of Messers. Cocks and Levine. As a result, our shareholders may have more difficulty in protecting their interests through actions against our management, directors or major shareholders, compared to shareholders of a corporation whose officers and directors reside within the United States.

 

In the future we may seek additional financing through the sale of our common stock resulting in dilution to existing shareholders.

 

The most likely source of future financing presently available to us is through the sale of shares of our common stock. Any sale of common stock will result in dilution of equity ownership to existing shareholders. This means that, if we sell shares of our common stock, more shares will be outstanding and each existing shareholder will own a smaller percentage of the shares then outstanding, which will result in a reduction in the value of an existing shareholder’s interest. To raise additional capital, we may have to issue additional shares, which may substantially dilute the interests of existing shareholders. Alternatively, we may have to borrow large sums, and assume debt obligations that require us to make substantial interest and capital payments.

 

We cannot guarantee we will be successful in generating revenue in the future or be successful in raising funds through the sale of shares to pay for our business plan and expenditures. As of the date of this Report, we have earned minimal revenue. Failure to generate additional revenue will cause us to go out of business, which will result in the complete loss of your investment.

 

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We do not have any intellectual property and, if we develop any, may not be able to adequately protect it from infringement by third parties.

 

Our business plan is significantly dependent upon exploiting the consulting services we intend to offer to start-ups and other companies. We do not currently have any intellectual property although we believe that as we develop our systems and the way we consult, we will eventually develop trade secrets and other types of intellectual property. In the event that we develop intellectual property in the future, there can be no assurance that we will be able to control all of the rights for all of our future intellectual property or trade secrets that we may develop. We may not have the resources necessary to assert infringement claims against third parties who may infringe upon these future intellectual property rights. Litigation can be costly and time consuming and divert the attention and resources of management and key personnel. We cannot assure you that we can adequately protect any future intellectual property or successfully prosecute potential infringement of any future intellectual property rights. Also, we cannot assure you that others will not assert rights in, or ownership of, trademarks and other proprietary rights that we may obtain, or that we will be able to successfully resolve these types of conflicts to our satisfaction. Our failure to protect any future intellectual property rights may result in a loss of revenue and could materially adversely affect our operations and financial condition.

 

If the services we offer are not commercially successful and/or do not generate revenues, our business would fail.

 

Offering consulting services involves substantial risks, because it requires that we spend significant time and funds based entirely on our preliminary evaluation of the potential clients’ needs and our ability to receive adequate compensation for our services. It is impossible to predict the success of any services we may offer to potential clients and their perception of the value of our services. The ability of the services we offer to generate value to the potential clients and, in turn, to generate revenues will depend upon a variety of unpredictable factors, including:

 

  Clients’ demand for our services, which is always subject to change;
     
  the quality and availability of other consulting services competitively priced;
     
  the competition for services offered on the Internet, through other consultants or advisors; and
     
  the fact that many of the services we intend to offer are available in some form through other professionals and the Internet.

 

For any of these reasons, the services we intend to offer may not be commercially successful and our business may suffer or fail altogether resulting in a complete loss of any investment made in our common stock.

 

The service we provide might be more expensive to provide than we anticipate.

 

We expect that future financing that we may obtain will provide the capital required to expand our personnel and provide us the resources to offer additional or more sophisticated consulting services and potentially web based applications that provide some of the services we contemplate offering to potential clients. Expenses associated with acquiring or training personnel to provide the services to our potential customers could increase beyond projected costs because of a range of factors such as an escalation in compensation rates and other personnel working on consulting or software services or in the number of personnel required to work on the clients, or because of problems or difficulties with technology and equipment used by our personnel with customers. In addition, unexpected circumstances sometimes cause billings to exceed budget.

 

Competition in the consulting industry is strong. If we cannot successfully compete, our business may be adversely affected.

 

The marketplace in which we compete is intensely competitive and subject to rapid change. Our competitors include well-established enterprises. Some of these competitors are based globally. We anticipate that we will face additional competition from new entrants that may offer significant performance, price, creative or other advantages over those offered by us. Many of these competitors have greater name recognition and resources than us.

 

Additionally, potential competitors with established market shares and greater financial resources might introduce competing services. Thus, there can be no assurance that we will be able to compete successfully in the future or that competition will not have a material adverse affect on our operations. Increased competition could result in lower than expected operating margins or loss of the ability to attract customers, either of which would materially and adversely affect our business, results of operation and financial condition.

 

If we are unable to obtain customers for our services, our business will suffer and likely fail.

 

Because we lack the resources to advertise our services in traditional publications, we plan to enter into arrangements with other professional providers and independent contractors to market our services. As a result, we may be unable to secure marketing agreements before funds are spent on personnel or other forms of advertising. In addition, if we are unable to obtain marketing on acceptable terms, we may evaluate other alternatives, such as retaining third party marketers. We cannot provide any assurance that we will be able to secure any favorable marketing agreements, or if we were able to, under terms that would allow us to be profitable. If we are unable to obtain adequate marketing, we may not have the ability to generate revenue.

 

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We operate in a regulated industry and changes in regulations or violations of regulations may result in increased costs or sanctions that could reduce our revenues and profitability.

 

The consulting services industry is subject to a variety of federal and state laws and regulations related to the type of services that we could provide, the conduct of operations, and payment for services. If we fail to comply with the laws and regulations that are directly applicable to our business, we could suffer civil and/or criminal penalties or be subject to injunctions and delays in providing our services to clients.

 

Federal and state governments may regulate the services that we offer. Our ability to cost effectively provide these consulting services could be affected by such regulations. The implementation of unfavorable regulations or unfavorable interpretations of existing regulations by courts or regulatory bodies could require us to incur significant compliance costs, cause the development of the affected markets to become impractical and otherwise have a material adverse effect on our business, results of operations and financial condition.

 

Our officer and directors may have conflicts in allocating their time to our business

 

Our officer and directors are required to commit time to our affairs and, accordingly, may have conflicts of interest in allocating management time among various business activities including Mr. Cocks’ competing businesses. Mr. Levine’s current business in Canada is limited to music royalties, primarily the licensing of the rock group Triumph’s music rights; therefore, we do not believe that he presently has any conflicts with us. In the course of other business activities, they may become aware of business opportunities that may be appropriate for presentation to us, as well as the other entities with which they are affiliated. Messrs. Cocks and Levine have orally agreed that any business opportunities that they come across in the United States will be presented to our Company and that any opportunities that they come across in Canada will be made available to their other businesses.

 

Mr. Cocks has orally agreed to limit his responsibilities at West Isle Ventures, Ltd. to providing consulting services to Canadian companies in industries that we do not intend to pursue. West Isle Ventures, Ltd. has provided consulting services to companies in a variety of industries; however, Mr. Cocks will devote his efforts with us to consult with companies in the United States and with companies in our target industries. In an effort to resolve such potential conflicts of interest, our officers and sole director have agreed that any opportunities that they are aware of independently or directly through their association with us (as opposed to disclosure to them of such business opportunities by management or consultants associated with other entities) would be presented by them solely to us. Mr. Cocks is also a director of Nevada Canyon Gold, which is the entity whom we acquired the joint venture interest from in December 2015.

 

We cannot provide assurances that our efforts to eliminate the potential impact of conflicts of interest will be effective.

 

We are subject to the periodic reporting requirements of the Exchange Act that will require us to incur audit fees and legal fees in connection with the preparation of such reports. These additional costs could reduce or eliminate our ability to earn a profit.

 

We are required to file periodic reports with the SEC pursuant to the Exchange Act and the rules and regulations promulgated thereunder. In order to comply with these requirements, our independent registered public accounting firm will have to review our financial statements on a quarterly basis and audit our financial statements on an annual basis. Moreover, our legal counsel will have to review and assist in the preparation of such reports. The costs charged by these professionals for such services cannot be accurately predicted at this time because factors such as the number and type of transactions that we engage in and the complexity of our reports cannot be determined at this time and will have a major effect on the amount of time to be spent by our auditors and attorneys. However, the incurrence of such costs will obviously be an expense to our operations and thus have a negative effect on our ability to meet our overhead requirements and earn a profit. We may be exposed to potential risks resulting from any new requirements under Section 404 of the Sarbanes-Oxley Act of 2002. If we cannot provide reliable financial reports or prevent fraud, our business and operating results could be harmed, investors could lose confidence in our reported financial information, and the trading price of our common stock, if a market ever develops, could drop significantly.

 

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

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. As defined in Exchange Act Rule 13a-15(f), internal control over financial reporting is a process designed by, or under the supervision of, the principal executive and principal financial officer and effected by the board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

 

pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;

 

  provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of management and/or our directors; and

 

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  provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

 

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

 

Our board of directors has significant control over us and we have not established committees comprised of independent directors.

 

We have only two directors one of whom holds all of our officer positions. Accordingly, we cannot establish board committees comprised of independent members to oversee functions like compensation or audit issues. In addition, since we only have two directors, they have significant control over all corporate issues. We do not have an audit or compensation committee comprised of independent directors. Our two directors perform these functions and are not independent directors. Thus, there is a potential conflict in that our directors are also engaged in management and participate in decisions concerning management compensation and audit issues that may affect management performance.

 

Until we have a larger board of directors that would include some independent members, if ever, there will be limited oversight of our directors’ decisions and activities and little ability for minority shareholders to challenge or reverse those activities and decisions, even if they are not in the best interests of minority shareholders.

 

We will rely upon consultants for web-enhancements and the consultants may not complete the work within the set framework that is necessary to promote and attract clients effectively.

 

We are also dependent on a web consultant to further develop and expand our website to market our services. If the consultant does not fulfill his duties, we may have to find another consultant with specific expertise to enhance our website, which will delay our ability to sell our consulting services according to our business plan.

 

We currently have a website (www.techfoundryventures.com) that we believe will help us attract customers. We intend to use the website as a promotional tool for recruiting potential customers for our services.

 

We are an “emerging growth company,” and we cannot be certain if the reduced reporting requirements applicable to emerging growth companies will make our common stock less attractive to investors.

 

As an “Emerging Growth Company” under The Jobs Act, we are permitted to rely on exemptions from certain disclosure requirements

 

We qualify as an “emerging growth company” under the JOBS Act. As a result, we are permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long as we are an emerging growth company, we will not be required to:

 

  have an auditor report on our internal controls over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;
     
  provide an auditor attestation with respect to management’s report on the effectiveness of our internal controls over financial reporting;
     
  comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis);
     
  submit certain executive compensation matters to shareholder advisory votes, such as “say-on-pay” and “say-on-frequency;” and
     
  disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the Chief Executive’s compensation to median employee compensation.

 

In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.

 

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We will remain an “emerging growth company” for up to five years, or until the earliest of (i) the last day of the first fiscal year in which our total annual gross revenues exceed $1 billion, (ii) the date that we become a “large accelerated filer” as defined in Rule 12b-2 under the Securities Exchange Act of 1934, which would occur if the market value of our ordinary shares that is held by non-affiliates exceeds $700 million as of the last business day of our most recently completed second fiscal quarter or (iii) the date on which we have issued more than $1 billion in non-convertible debt during the preceding three year period. Even if we no longer qualify for the exemptions for an emerging growth company, we may still be, in certain circumstances, subject to scaled disclosure requirements as a smaller reporting company. For example, smaller reporting companies, like emerging growth companies, are not required to provide a compensation discussion and analysis under Item 402(b) of Regulation S-K or auditor attestation of internal controls over financial reporting.

 

Until such time, however, we cannot predict if investors will find our common stock less attractive because we may rely on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile.

 

Please see “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Critical Accounting Policies” on page 25 for a further discussion of this exemption.

 

RISKS RELATING TO OUR JOINT VENTURE AND THE GOLD MINING INDUSTRY

 

No known reserves.

 

The probability of a mining claim having the necessary quantity and quality of ores to result in a profitable mining operation is uncertain and our claims, even with large investments by us, may never generate a profit.

 

We are dependent upon the successful exploration of our mining property, and the discovery of valuable mineralization on the property, for success. All anticipated future revenues would come directly or indirectly from the Lapon Canyon Project (the “Property”). Should we fail to locate economically extractable mineralization on our property, or enter into an agreement to option and sell our interests to mining production Company, we will have no revenue and our business will fail.

 

Mineral deposit estimates are imprecise and subject to error

 

Mineral deposit estimation calculations when made may prove unreliable. Assumptions made regarding the supporting data may prove inaccurate and unforeseen events may lead to further inaccuracies. Sample variability, mining and processing adjustments, environmental changes, metal price fluctuations, and law and regulation changes are all factors that could lead to deviances from any original estimations. The Lapon Canyon Project has no known ore reserves. Despite future investment in exploration activities, there is no guarantee our joint venture partner will locate a commercially viable ore deposit or reserve. Most exploration projects do not result in discovery of commercially viable and mineable ore deposits. With little capital available, it may have to limit its exploration, which decreases the chances of finding a commercially viable ore body. Even if potentially promising mineralization is identified, the Lapon Canyon Project may not be put into production due to many factors, including high extraction costs, low gold prices, or inadequate amount and reduced recovery rates. If the exploration activities do not suggest a commercially successful prospect, then our joint venture partner may altogether abandon plans to pursue efforts to develop the property.

 

The Joint Venture’s future operations may be adversely affected by future governmental and environmental regulations and permitting.

 

Environmental regulations may negatively affect the progression of operations and these regulations may become stricter in the future. In the U.S., all mining is regulated by Federal and State level government agencies. Obtaining licenses and permits from these agencies as well as an environmental impact study for each mining property must be completed before starting mining activities. These are expensive and affect the timing of operations. Pollution can be anticipated with mining activities. If our joint venture partners is unable to comply with current or future regulations, this may expose the joint venture to fines, penalties and litigation that could cause the joint venture business to fail.

 

Further, the laws, regulations, policies or current administrative practices of any government body, organization or regulatory agency in the U.S. or Nevada may be changed, applied or interpreted in a manner which will fundamentally alter the ability for the joint venture to carry on its business.

 

The actions, policies or regulations, or changes thereto, of any government body or regulatory agency, or other special interest groups, may have a detrimental effect on us. Any or all of these situations may have a negative impact on our joint venture’s ability to operate and/or its profitably.

 

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The Joint Venture is subject to inherent mining hazards and risks that may result in future financial obligations.

 

Risks and hazards associated with the mining industry may adversely affect the joint venture’s proposed operations such as but not limited to: political and country risks, industrial accidents, labor disputes, inability to retain necessary personnel or equipment, environmental hazards, unexpected geologic formations, cave-ins, landslides, flooding and monsoons, fires, explosions, power outages, processing problems. Personal injury and death could result as well as property damage, delays in mining, environmental damage, legal liability and monetary loss. The joint venture may not be able to obtain insurance to cover these risks at economically reasonable premiums. It does not carry any sort of insurance and may have difficulties obtaining such once operations start as insurance is generally sparse and cost prohibitive.

 

The joint venture’s financial performance depends on the successful operation of its proposed exploration activities on the Property, which are subject to various operational risks and our agreement to invest up to $500,000 over a two-year period in the joint venture.

 

There is no assurance our joint venture partner will be successful in its proposed mining activities. Our joint venture financial performance depends on the successful operation of its proposed exploration activities, which are being conducted by Walker River and partially (50%) paid for by us if we are able to fulfill the terms of our agreement with them, which requires us to invest $500,000 over a two-year period. The cost of operation and maintenance and the results of the proposed activities may be adversely affected by a variety of factors, including the following:

 

  Regular and unexpected maintenance and replacement expenditures;
     
  shutdowns due to the breakdown or failure of our equipment;
     
  labor disputes;
     
  the presence of hazardous materials on our planned project sites;
     
  catastrophic events such as fires, explosions, earthquakes, landslides, floods, releases of hazardous materials, severe storms or similar occurrences affecting our proposed exploration activities; and
     
  unforeseen results and problems inherent in mining and exploration activities.

 

Any of these events could significantly increase the expenses incurred in the joint venture’s planned exploration and could materially and adversely affect its business, financial condition, future results and cash flow, if any.

 

The joint venture’s proposed exploration is subject to substantial risks, including:

 

  unanticipated cost increases;
     
  shortages and inconsistent qualities of equipment, material and labor;
     
  work stoppages;
     
  inability to obtain permits and other regulatory matters; and
     
  failure by key suppliers, component manufacturers and vendors to timely and properly perform.

 

Any one of these risks, or other unanticipated factors, could give rise to delays and cost overruns. There can be no assurance that the joint venture will ever successfully complete its proposed exploration, or become profitable.

 

We do not expect positive cash flow from the future joint venture operations for the foreseeable future. If we are unable to obtain financing in the amounts and on terms deemed acceptable to us, we may be unable to continue our investment in the joint venture business and as a result the joint venture partner may be required to scale back or cease operations for the business.

 

We do not expect positive cash flow from future proposed joint venture operations for the foreseeable future. Completion of the exploration, permitting, and other work required before determining that a mineral deposit can be placed into production can take over 10 years in the best of circumstances. There is no assurance that actual cash requirements will not exceed the joint venture’s estimates. In particular, additional capital may be required in the event that:

 

  drilling, exploration and completion costs for the Lapon Canyon Project increase beyond our joint venture’s partner’s expectations; or
     
  it encounters greater costs associated with general and administrative expenses or other costs.

 

The occurrence of any of the aforementioned events could adversely affect its ability to meet its business plans.

 

We will depend almost exclusively on outside capital to pay for the continued exploration and development of the joint venture Property. If we are unable to raise sufficient funds to honor our agreement with WRR, then it may not have sufficient funds to explore the Property to the extent it may find necessary to determine the quantity and quality of any orders that may be in or on the Property, and most importantly, whether it can find a mining operation company to enter into a business venture with it. Such outside capital may include the sale of additional stock and/or commercial borrowing. We can provide no assurances that any financing will be successfully completed.

 

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Capital may not be available if and when necessary to meet these continuing development costs or, if the capital is available, that it will be on terms acceptable to us. The issuance of additional equity securities by us would result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

 

If we are unable to obtain financing in the amounts and on terms deemed acceptable to us, we may be unable to continue our interest in the joint venture business and as a result may be required to have our interest reduced or our joint venture partner may cease future operations for its business, the result of which would be that our stockholders would lose some or all of their investment.

 

As the joint venture Property is in the pre-exploration stage, there can be no assurance that our joint venture partner will identify commercially viable qualities and quantities of mineralization on the Property.

 

Exploration for mineralization is subject to a number of risk factors. Few properties that are explored are ultimately developed into producing mines. The Property is only in the pre-exploration stage and is without any identified economically extractable mineralization. Our joint venture partner may not establish commercially viable quantities and qualities of economically extractable mineralization on the Lapon Canyon Project (or on any future property it may acquire) and, even if it does, there is no guarantee that it will be able to interest a third-party mining company to enter into a business arrangement, e.g., option to purchase arrangement with it, which could cause the joint venture business to fail.

 

Because we anticipate the joint venture’s operating expenses will increase prior to it earning revenues, it may never achieve profitability and we may never achieve a return on our investment in it.

 

Prior to completion of the exploration stage, our joint venture partner anticipates that it will incur increased operating expenses without realizing any revenues. It therefore expects to incur significant losses into the foreseeable future. We recognize that if it is unable to generate significant revenues from the exploration of its mineral claims, it will not be able to earn profits or continue future proposed operations, which will adversely affect us. There is no history upon which to base any assumption as to the likelihood that it will prove successful, and it can provide no assurance that it will generate any revenues or ever achieve profitability. If it is unsuccessful in addressing these risks, our joint venture business will most likely fail.

 

Because of the inherent dangers involved in mineral exploration, there is a risk that our joint venture partner may incur liability or damages as it conducts its business.

 

The search for valuable mineralization involves numerous hazards. As a result, our joint venture partner may become subject to liability for such hazards, including pollution, cave-ins and other hazards against which it cannot insure or against which it may elect not to insure. At the present time it does not have any coverage to insure against these hazards. The payment of such liabilities may have a material adverse effect on its financial position and our investment in the joint venture.

 

If our joint venture partner’s exploration costs are higher than anticipated, then its exploration activities will be adversely affected.

 

Our joint venture partner is currently planning to commence exploration of the Property on the basis of estimated exploration costs. If its exploration costs are greater than anticipated, then it will not be able to carry out all of its planned exploration of the Property. Factors that could cause exploration costs to increase are: adverse weather conditions, difficult terrain and shortages of qualified personnel.

 

The price of gold is volatile and a decrease in gold prices could cause us to incur losses.

 

Our joint venture partner will be exploring primarily for gold on the Property. The profitability of gold exploration and production is directly related to the prevailing market price for gold. The market prices of metals, including the gold market, fluctuate significantly and are affected by a number of factors beyond our control, including, but not limited to, the rate of inflation, the exchange rate of the dollar to other currencies, interest rates, and global economic and political conditions. Price fluctuations in gold market from the time exploration is undertaken and the time production can commence can significantly affect the profitability of a mine. Accordingly, our joint venture partner may begin to explore for gold at a time when the price of gold or other related mineral make such exploration economically feasible and, subsequently, incur losses because prices have decreased. Adverse fluctuations of metals market prices or the continued decline in the gold market, generally, may force it to curtail or cease the joint venture business operations.

 

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The costs of compliance with environmental laws and of obtaining and maintaining environmental permits and governmental approvals required for construction and/or operation, which currently are significant, may increase in the future and could materially and adversely affect our business, financial condition, future results and cash flow; any non-compliance with such laws or regulations may result in the imposition of liabilities which could materially and adversely affect our business, financial condition, future results and cash flow.

 

Our joint venture mining partner is required to comply with numerous federal, state and local statutory and regulatory environmental standards and to maintain numerous environmental permits and governmental approvals required for construction and/or operation. Some of the environmental permits and governmental approvals that may be issued to the joint venture project may contain conditions and restrictions, including restrictions or limits on emissions and discharges of pollutants and contaminants, or may have limited terms. If it fails to satisfy these conditions or comply with these restrictions, or with any statutory or regulatory environmental standards, it may become subject to regulatory enforcement action and the operation of the projects could be adversely affected or be subject to fines, penalties or additional costs. In addition, it may not be able to renew, maintain or obtain all environmental permits and governmental approvals required for the continued operation or further development of the projects. As of the date of this report, our joint venture partner has not yet obtained certain permits and government approvals required for the commencement and successful operation of projects under construction or enhancement. Its failure to renew, maintain or obtain required permits or governmental approvals, including the permits and approvals necessary for operating projects under construction or enhancement, could cause its operations to be limited or suspended. Environmental laws, ordinances and regulations affecting it can be subject to change and such change could result in increased compliance costs, the need for additional capital expenditures, or otherwise adversely affect us.

 

Our joint venture partner could be exposed to significant liability for violations of hazardous substances laws because of the use or presence of such substances at its project.

 

Our joint venture partner’s proposed mining project is subject to numerous federal, state and local statutory and regulatory standards relating to the use, storage and disposal of hazardous substances. It will use propane and industrial lubricants and other substances at its project which are or could become classified as hazardous substances. If any hazardous substances are found to have been released into the environment at or by the project in concentrations that exceed regulatory limits, it could become liable for the investigation and removal of those substances, regardless of their source and time of release. If it fails to comply with these laws, ordinances or regulations (or any change thereto), it could be subject to civil or criminal liability, the imposition of liens or fines, and large expenditures to bring the project into compliance. Furthermore, in Nevada, it may be held liable for the cleanup of releases of hazardous substances at other locations where it arranged for disposal of those substances, even if it did not cause the release at that location. The cost of any remediation activities in connection with a spill or other release of such substances could be significant.

 

The joint venture operations are subject to permitting requirements which could require it to delay, suspend or terminate its operations on its mining property.

 

Our joint venture partner’s planned exploration activities on the Lapon Canyon Project, and other properties it may acquire, require permits from the BLM, and several other governmental agencies. It may be unable to obtain these permits in a timely manner, on reasonable terms or at all. If it cannot obtain or maintain the necessary permits, or if there is a delay in receiving these permits, its timetable and business plan for exploration of the Lapon Canyon Project will be adversely affected. It has no current plans to acquire any other property.

 

Our joint venture partner’s exploration activities may not be commercially successful, which could lead it to abandon its plans to seek a mining production company to develop or purchase it’s Property, and thereby lose the investment we made in the joint venture.

 

Our joint venture partner’s long-term success depends on its ability to identify commercially viable and mineable mineralization deposits on the Lapon Canyon Project that it can then, using its best business judgment, determine whether any such deposits can be developed into a commercially viable mining operation. Mineral exploration is highly speculative in nature, involves many risks and is frequently non-productive. These risks include unusual or unexpected geologic formations, and the inability to obtain suitable or adequate machinery, equipment or labor. The success of exploration is determined in part by the following factors:

 

  the identification of potential silver and/or gold mineralization based on evaluation of the host rock, alteration, structure, geochemistry and proper sampling;
     
  availability of government-granted operation permits;
     
  the quality of our management and our geological and technical expertise; and
     
  the capital available for exploration.

 

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Substantial expenditures are required to establish proven and probable reserves through drilling and analysis, to develop metallurgical processes to extract metal, and to develop the mining and processing facilities and infrastructure at any site chosen for mining. Whether a mineral deposit will be commercially viable depends on a number of factors, which include, without limitation, the particular attributes of the deposit, such as size, grade and proximity to infrastructure; metal prices, which fluctuate widely; and government regulations, including, without limitation, regulations relating to prices, taxes, royalties, land tenure, land use, importing and exporting of minerals and environmental protection. Our joint venture partner may invest significant capital and resources in exploration activities and abandon such investments if it is unable to identify commercially exploitable mineral deposits. The decision to abandon its Lapon Project may have an adverse effect on the market value of our securities and its and our ability to raise future financing. We cannot assure you that our joint venture partner will discover or acquire any mineralized material in sufficient quantities on the Property to justify commercial operations, or that it will be able to find a mining operator who is willing and able to enter into a business venture with it.

 

Actual capital costs, operating costs, production and economic returns may differ significantly from those our joint venture partner has anticipated and there are no assurances that its exploration activities will result in identification of commercially viable quantities and qualities of mineable ores.

 

Our joint venture partner’s estimated operating and exploration costs for the Lapon Canyon Project are based on limited information available to it and that it believes to be accurate. However, costs for labor, regulatory compliance, energy, mine and plant equipment and materials needed for exploration may significantly fluctuate. In light of these factors, actual costs related to its proposed budgeted exploration costs may exceed any estimates it may make. It does not have an operating history upon which it can base estimates of future operating costs related to Lapon Canyon Project, and it intends to rely upon its future economic feasibility of the Project and any estimates that may be contained therein. Studies derive estimates of cash operating costs based upon, among other things:

 

  anticipated tonnage, grades and metallurgical characteristics of the material to be mined and processed;
     
  anticipated recovery rates of gold and other metals from the material;
     
  cash operating costs of comparable facilities and equipment; and
     
  anticipated climatic conditions and availability of water.

 

Capital and operating costs, production and economic returns, and other estimates contained in feasibility studies may differ significantly from actual costs, and there can be no assurance that our actual capital and operating costs will not be higher than anticipated or disclosed.

 

A shortage of critical equipment, supplies, and resources could adversely affect our exploration activities.

 

Our joint venture partner is dependent on the availability of certain equipment, supplies and resources for it to carry out our mining exploration activities, including input commodities, drilling equipment and skilled labor. A shortage in the market for any of these factors could cause unanticipated cost increases and delays in delivery times, which could in turn adversely impact exploration schedules and costs.

 

Historical production at the Lapon Canyon Project may not be indicative of the potential for future development.

 

The Lapon Canyon Project is not in commercial production, and, since acquiring its interests, our joint venture partner has never recorded any revenues from commercial production at the Property. You should not rely on the fact that there were limited historical mining operations in the mining district surrounding its Property as an indication that it will ever find commercially mineable quantities and qualities of extractable mineralization on its Property or have future successful commercial operations on its Property. In fact, based on the information available to us, which we have reviewed, none of the historical mining operations were successful.

 

We currently do not have sufficient funds, nor does our joint venture partner intend in it’s proposed operations, to bring the Property into commercial operation or production, and it expects that it will require additional financing in the future.

 

Our joint venture partner does not currently have any proposed plans or sufficient capital for sustained operations, specifically including the mining, processing and production of minerals from any ores which may be identified during its exploration activities. Our future financing needs may be substantial if our joint venture partner encounters unexpected costs or delays at this early stage of exploration of the Property. If we are unable to raise sufficient funds to honor the financing obligation under our agreement, then we may lose our interest in the joint venture.

 

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Failure to obtain sufficient financing to satisfy our financial obligations under our joint venture agreement may result in the delay or indefinite postponement of exploration, drilling or other mining activities at the Lapon Canyon Project Furthermore, even if we raise sufficient additional capital, there can be no assurance that our joint venture partner will achieve success in its exploration activities. In addition, any future equity offering that we engage in or that our joint venture partner will offer, will further dilute our equity interest or joint venture interest and any future debt financing will require it or us to dedicate a portion of our cash flow, if any, to payments on indebtedness and will limit its or our flexibility in planning for or reacting to changes in our business.

 

We are strictly a joint venture partner that has acquired an exploration interest and have no intent or plans to engage in operations involving the mining, processing and/or production of minerals from orders, if any, which our joint venture partner may discover on its property during its exploration activities. In the event our joint venture partner’s exploration operations determine that it has ores which may warrant further mining operations, it is its intent to seek to identify a mining production company to purchase or option the joint venture interests in the property, which may have an interest and capability to conduct further mining operations on the property and enter into some type of business arrangement with such company relating to the Property.

 

If the development of one or more claims included in our Lapon Project is found to be economically feasible, such claims will be subject to all of the risks associated with establishing new mining operations.

 

If the development of one or more of our joint venture partner’s mining claims included in the Lapon Project is found to be economically feasible, and it is unable to enter into a business arrangement with a mining company that engages in mining operations and production, such development will require obtaining permits and financing, and the construction and operation of mines, processing plants and related infrastructure. As a result, the project will be subject to all of the risks associated with establishing new mining operations, including:

 

  the timing and cost, which can be considerable, of the construction of mining and processing facilities and related infrastructure;
     
  the availability and cost of skilled labor, mining equipment and principal supplies needed for operations, including explosives, fuels, chemical reagents, water, power, equipment parts and lubricants;
     
  the availability and cost of appropriate smelting and refining arrangements;
     
  the need to obtain necessary environmental and other governmental approvals and permits and the timing of the receipt of those approvals and permits;
     
  the availability of funds to finance construction and development activities;
     
  industrial accidents;
     
  mine failures, shaft failures or equipment failures;
     
  natural phenomena such as inclement weather conditions, floods, droughts, rock slides and seismic activity;
     
  unusual or unexpected geological and metallurgic conditions;
     
  exchange rate and commodity price fluctuations;
     
  high rates of inflation;
     
  potential opposition from non-governmental organizations, environmental groups or local groups, which may delay or prevent development activities; and
     
  restrictions or regulations imposed by governmental or regulatory authorities.

 

The costs, timing and complexities of developing the joint venture projects may be greater than anticipated. Cost estimates may increase significantly as more detailed engineering work is completed on a project. It is common in mining operations to experience unexpected costs, problems and delays during construction, development and mine start-up. We cannot provide assurance that activities will result in profitable mining operations at the mineral Property, or that we will derive financial benefits from such operations. Any one or more of these events identified above could have a material adverse effect on any revenues we may anticipate receiving from the Lapon Project.

 

Our joint venture partner’s operations involve significant risks and hazards inherent to the mining industry.

 

Our exploration operations will involve the operation of large pieces of drilling and other heavy equipment. Hazards such as fire, explosion, floods, structural collapses, industrial accidents, unusual or unexpected geological conditions, ground control problems, cave-ins, flooding and mechanical equipment failure are inherent risks in our operations. Hazards inherent to the mining industry can cause injuries or death to employees, contractors or other persons at our mineral Property, severe damage to and destruction of our property, plant and equipment and mineral Property, and contamination of, or damage to, the environment, and can result in the suspension of our exploration activities and any future development and production activities. While the Company aims to maintain best safety practices as part of its culture, safety measures implemented by us may not be successful in preventing or mitigating future accidents.

 

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In addition, from time to time we may be subject to governmental investigations and claims and litigation filed on behalf of persons who are harmed while at our Property or otherwise in connection with our operations. To the extent that we are subject to personal injury or other claims or lawsuits in the future, it may not be possible to predict the ultimate outcome of these claims and lawsuits due to the nature of personal injury litigation. Similarly, if we are subject to governmental investigations or proceedings, we may incur significant penalties and fines, and enforcement actions against us could result in the closing of certain of our mining operations. If claims and lawsuits or governmental investigations or proceedings are ultimately resolved against us, it could have a material adverse effect on our financial performance, financial position and results of operations. Also, if we conduct mining operations on property without the appropriate licenses and approvals, we could incur liability or our operations could be suspended.

 

The mining industry is very competitive.

 

The mining industry is very competitive. Much of our joint venture partner’s competition is from larger, established mining companies with greater liquidity, greater access to credit and other financial resources, newer or more efficient equipment, lower cost structures, more effective risk management policies and procedures and/or a greater ability than us to withstand losses. Our joint venture partner’s competitors may be able to respond more quickly to new laws or regulations or emerging technologies, or devote greater resources to the expansion or efficiency of their operations than it can. In addition, current and potential competitors may make strategic acquisitions or establish cooperative relationships among themselves or with third parties. Accordingly, it is possible that new competitors or alliances among current and new competitors may emerge and gain significant market share to our joint venture partner’s detriment. It may not be able to compete successfully against current and future competitors, and any failure to do so could have a material adverse effect on its business, financial condition or results of operations.

 

The title to some of the joint venture’s mineral Property may be uncertain or defective, thus risking the investment in such Property.

 

The mineral Property in which we have a joint venture interest, and which our joint venture partner may acquire in the future, if any, may be subject to prior recorded and unrecorded agreements, transfers or claims, and title may be affected by, among other things, undetected defects. A title defect on any of its mineral Property (or any portion thereof) could adversely affect its ability to mine the property and/or process the minerals that it mines.

 

Title insurance is generally not available for mineral Property and our joint venture partner’s ability to ensure that it has obtained secure claim to individual mineral Property or mining concessions may be severely constrained. We rely on title information and/or representations and warranties provided by our joint venture partner’s grantors. Any challenge to its title could result in litigation, insurance claims and potential losses, delay the exploration and development of a property and ultimately result in the loss of some or all of our joint venture partner’s interest in the property. In addition, if it mines on property without the appropriate title, it could incur liability for such activities.

 

If our joint venture partner obtains insurance, it may not provide adequate coverage.

 

Our joint venture business and operations are subject to a number of risks and hazards including, but not limited to, adverse environmental conditions, industrial accidents, labor disputes, unusual or unexpected geological conditions, ground control problems, cave-ins, changes in the regulatory environment, metallurgical and other processing problems, mechanical equipment failure, facility performance problems, fires and natural phenomena such as inclement weather conditions, floods and earthquakes. These risks could result in damage to, or destruction of, our mineral Property or exploration equipment, personal injury or death, environmental damage, delays in exploration, increased exploration costs, asset write downs, monetary losses and legal liability.

 

We do not currently have insurance and do not have any plans to obtain insurance. Our joint venture partner’s property and liability insurance may not provide sufficient coverage for losses related to these or other hazards. Insurance against certain risks, including those related to environmental matters or other hazards resulting from exploration, is generally not available to us or to other companies within the mining industry. In addition, we do not carry business interruption insurance relating to the joint venture Property. Accordingly, delays in returning to any future exploration could produce near-term severe impact to our business. Any losses from these events may cause the joint venture to incur significant costs that could have a material adverse effect on our financial performance, financial position and results of operations.

 

If we are unable to retain key members of management, our business might be harmed.

 

Our joint venture’s exploration activities and any future mining and processing activities depend to a significant extent on the joint venture agreement we have with Walker River Resources Corp. (TSX.V:WRR), and the continued service and performance of our Chief Executive Officer.

 

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Changes in the market price of gold, silver and other metals, which in the past has fluctuated widely, will affect the profitability of our joint venture operations and financial condition.

 

Our joint venture partner’s profitability and long-term viability depend, in large part, upon the market price of gold, copper, silver and other metals and minerals which may be produced from our mineral Property, and from which our joint venture may derive revenues under any agreement that we may enter into with a company that conducts mining operations on our Property. The market price of gold and other metals is volatile and is impacted by numerous factors beyond our control, including:

 

  sales by central banks and other holders, speculators and producers of gold and other metals in response to any of the below factors.
     
  the relative strength of the U.S. dollar and certain other currencies;
     
  interest rates;
     
  global or regional political, financial, or economic conditions;
     
  supply and demand for jewelry and industrial products containing metals; and
     
  expectations with respect to the rate of inflation;

 

A material decrease in the market price of gold and other metals could affect the commercial viability of our joint venture Property and any of our joint venture’s future anticipated development and production assumptions, if any. Lower gold prices could also adversely affect our joint venture’s ability to finance future development at all of its mining Property, all of which would have a material adverse effect on its financial condition and results of operations. There can be no assurance that the market price of gold and other metals will remain at current levels or that such prices will improve.

 

We will be relying our third party joint venture partner to perform all of the exploration work.

 

We will be relying on a third party, Walker River, our joint venture partner, to perform all of the exploration work on the Property subject of our Exploration Agreement. A management committee consisting of one Walker River representative and one of our representatives, will be formed, with Walker River having discretion to act in accordance with its judgment in the event of any failure of the 2 committee members to agree on any issue. In the event that Walker River does not exercise skill and competence in the conduct of its operations, or fails to performs satisfactory quality of mining activities, in a timely manner and at an acceptable cost, our interests in the Exploration Agreement and Property may be negatively impacted.

 

We are not a Company that engages in hands-on mining activities and must, therefore, rely on Walker River to conduct all of such activities, and specifically operations related to exploration. Walker River is the party that owns the Property and has entered into the Exploration Agreement with us, granting us the right to expend monies and earn an interest in the Property. Our anticipated future dependence upon Walker River to conduct the mining exploration activities in a professional manner, all seeking to establish data supporting the presence of valuable ores in sufficient qualities and quantities to make the Property viable as a target for a mining production Company to purchase the Property or enter into a form of agreement with Walker River and us. We, or our development partners, Walker River, may need to enter into additional agreements for the exploration activities. There can be no assurance that we or our partners can do so on favorable terms, if at all.

 

RISKS RELATED TO THE OWNERSHIP OF OUR SECURITIES

 

Investors may lose their entire investment if we fail to implement our business plan.

 

As a start up enterprise, we expect to face substantial risks, uncertainties, expenses and difficulties. We were formed on February 27, 2014. We have no demonstrable operations record, on which you can evaluate our business and prospects. We have recently commenced planned operations. As of the date of this Annual Report on Form 10-K, we have had only limited start-up operations and generated minimal revenues. We cannot guarantee that we will be successful in accomplishing our objectives. Taking these facts into account, our independent auditors have expressed substantial doubt about our ability to continue as a going concern in the independent auditors’ report to the financial statements included in Annual Report on Form 10-K. In addition, our lack of operating capital could negatively impact the value of our common shares and could result in the loss of your entire investment.

 

Participation is subject to risks of investing in micro capitalization companies.

 

Micro capitalization companies generally have limited product lines, markets, market shares and financial resources. The securities of such companies, if traded in the public market, may trade less frequently and in more limited volume than those of more established companies. Additionally, in recent years, the stock market has experienced a high degree of price and volume volatility for the securities of micro capitalization companies. In particular, micro capitalization companies that trade in the over-the-counter markets have experienced wide price fluctuations not necessarily related to the operating performance of such companies.

 

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There has not been any established trading market for our common stock although our common stock is quoted on the Pink Sheets. There can be no assurances as to whether

 

  (i) any market for our shares will develop;
     
  (ii) the prices at which our common stock will trade; or
     
  (iii) the extent to which investor interest in us will lead to the development of an active, liquid trading market. Active trading markets generally result in lower price volatility and more efficient execution of buy and sell orders for investors.

 

Our shares of common stock are quoted on the Pink Sheets and we are eligible with the Depository Trust Company (“DTC”) to permit our shares to trade electronically.

 

In addition, our common stock is unlikely to be followed by any market analysts, and there may be few institutions acting as market makers for our common stock. Either of these factors could adversely affect the liquidity and trading price of our common stock. Until our common stock is fully distributed and an orderly market develops in our common stock, if ever, the price at which it trades is likely to fluctuate significantly. Prices for our common stock will be determined in the marketplace and may be influenced by many factors, including the depth and liquidity of the market for shares of our common stock, developments affecting our business, including the impact of the factors referred to elsewhere in these Risk Factors, investor perception of us and general economic and market conditions. No assurances can be given that an orderly or liquid market will ever develop for the shares of our common stock.

 

Because of the anticipated low price of the securities being registered, many brokerage firms may not be willing to effect transactions in these securities. Purchasers of our securities should be aware that any market that develops in our stock would be subject to the penny stock restrictions.

 

Rule 3a51-1 of the Exchange Act establishes the definition of a “penny stock,” for purposes relevant to us, as any equity security that has a minimum bid price of less than $4.00 per share or with an exercise price of less than $4.00 per share, subject to a limited number of exceptions that are not available to us. It is likely that our shares will be considered to be penny stocks for the immediately foreseeable future. This classification severely and adversely affects any market liquidity for our common stock.

 

For any transaction involving a penny stock, unless exempt, the penny stock rules require that a broker or dealer approve a person’s account for transactions in penny stocks and the broker or dealer receive from the investor a written agreement to the transaction setting forth the identity and quantity of the penny stock to be purchased. In order to approve a person’s account for transactions in penny stocks, the broker or dealer must obtain financial information and investment experience and objectives of the person and make a reasonable determination that the transactions in penny stocks are suitable for that person and that that person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks.

 

The broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prepared by the SEC relating to the penny stock market, which, in highlight form, sets forth:

 

  the basis on which the broker or dealer made the suitability determination, and
     
  that the broker or dealer received a signed, written agreement from the investor prior to the transaction.

 

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

 

Because of these regulations, broker-dealers may not wish to engage in the above-referenced necessary paperwork and disclosures and/or may encounter difficulties in their attempt to sell shares of our common stock, which may affect the ability of selling shareholders or other holders to sell their shares in any secondary market and have the effect of reducing the level of trading activity in any secondary market. These additional sales practice and disclosure requirements could impede the sale of our securities, if and when our securities become publicly traded. In addition, the liquidity for our securities may decrease, with a corresponding decrease in the price of our securities. Our shares, in all probability, will be subject to such penny stock rules for the foreseeable future and our shareholders will, in all likelihood, find it difficult to sell their securities.

 

Our management believes that the market for penny stocks has suffered from patterns of fraud and abuse. Such patterns include:

 

  Control of the market for the security by one or a few broker-dealers that are often related to the promoter or issuer;

 

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  Manipulation of prices through prearranged matching of purchases and sales and false and misleading press releases;
     
  “Boiler room” practices involving high pressure sales tactics and unrealistic price projections by sales persons;
     
  Excessive and undisclosed bid-ask differentials and markups by selling broker-dealers; and
     
  Wholesale dumping of the same securities by promoters and broker-dealers after prices have been manipulated to a desired level, along with the inevitable collapse of those prices with consequent investor losses.

 

Transfer of our common stock may also be restricted under the securities or securities regulations laws promulgated by various states and foreign jurisdictions, commonly referred to as “Blue Sky” laws. Absent compliance with such individual state laws, our common stock may not be traded in such jurisdictions. Because the securities registered hereunder have not been registered for resale under the blue sky laws of any state, the holders of such shares and persons who desire to purchase them in any trading market that might develop in the future, should be aware that there may be significant state blue sky law restrictions upon the ability of investors to sell the securities and of purchasers to purchase the securities. These restrictions prohibit the secondary trading of our common stock. We currently do not intend to and may not be able to qualify securities for resale in at least 17 states which do not offer manual exemptions (or may offer manual exemptions) and require shares to be qualified before they can be resold by our shareholders. Accordingly, investors should consider the secondary market for our securities to be a limited one.

 

Because insiders control our activities, they may cause us to act in a manner that is most beneficial to them and not to outside shareholders, which could cause us not to take actions that outside investors might view favorably and which could prevent or delay a change in control.

 

Our three founders each own 21,000,000 common shares representing 96% of the outstanding common stock and our officer and directors hold approximately 64% of our outstanding common stock. As a result, they effectively control all matters requiring director and stockholder approval, including the election of directors, and the approval of significant corporate transactions, such as mergers and related party transactions. These insiders also have the ability to delay or perhaps even block, by their ownership of our stock, an unsolicited tender offer. This concentration of ownership could have the effect of delaying, deterring or preventing a change in control of our company that you might view favorably.

 

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

 

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

 

Our articles of incorporation provide for indemnification of officers and directors at our expense and limit their liability that may result in a major cost to us and hurt the interests of our shareholders because corporate resources may be expended for the benefit of officers and/or directors.

 

Our Articles of Incorporation at Article Nine provides for indemnification as follows: “Every person who was or is a party to, or is threatened to be made a party to, or is involved in any action, suit, or proceeding, whether civil, criminal, administrative, or investigative, by reason of the fact that he, or a person of whom he is the legal representative, is or was a Director or Officer of the Corporation, or is or was serving at the request of the Corporation as a Director or Officer of another Corporation, or as its representative in a partnership, joint venture, trust, or other enterprise, shall be indemnified and held harmless to the fullest extent legally permissible under the laws of the State of Nevada from time to time against all expenses, liability, and loss (including attorneys’ fees judgments, fines, and amounts paid or to be paid in settlement) reasonably incurred or suffered by him in connection therewith. Such right of indemnification shall be a contract right, which may be enforced in any manner desired by such person. The expenses of Officers and Directors incurred in defending a civil or criminal action, suit, or proceeding must be paid by the Corporation as they are incurred and in advance of the final disposition of the action, suit, or proceeding, upon receipt of an undertaking by or on behalf of the Director or Officer to repay the amount if it is ultimately determined by a court of competent jurisdiction that he is not entitled to be indemnified by the Corporation. Such right of indemnification shall not be exclusive of any other right which such Directors, Officers, or representatives may have or hereafter acquire, and, without limiting the generality of such statement, they shall be entitled to their respective rights of indemnification under any bylaw, agreement, vote of Stockholders, provision of law, or otherwise, as well as their rights under this Article. Without limiting the application of the foregoing, the Stockholders or Board of Directors may adopt bylaws from time to time with respect to indemnification, to provide at all times the fullest indemnification permitted by the laws of the State of Nevada, and may cause the Corporation to purchase and maintain insurance on behalf of any person who is or was a Director or Officer of the Corporation, or is or was serving at the request of the Corporation as a Director or Officer of another Corporation, or as its representative in a partnership, joint venture, trust, or other enterprise against any liability asserted against such person and incurred in any such capacity or arising out of such status, whether or not the Corporation would have the power to indemnify such person. The indemnification provided in this Article shall continue as to a person who has ceased to be a Director, Officer, Employee, or Agent, and shall inure to the benefit of the heirs, executors and administrators of such person.”

 

  21 
 

 

We have been advised that, in the opinion of the SEC, indemnification for liabilities arising under federal securities laws is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification for liabilities arising under federal securities laws, other than the payment by us of expenses incurred or paid by a director, officer or controlling person in the successful defense of any action, suit or proceeding, is asserted by a director, officer or controlling person in connection with our activities, we will (unless in the opinion of our counsel, the matter has been settled by controlling precedent) submit to a court of appropriate jurisdiction, the question whether indemnification by us is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue. The legal process relating to this matter if it were to occur is likely to be very costly and may result in us receiving negative publicity, either of which factors is likely to materially reduce the market and price for our shares, if such a market ever develops.

 

We do not expect to pay cash dividends in the foreseeable future.

 

We have never paid cash dividends on our common stock. We do not expect to pay cash dividends on our common stock at any time in the foreseeable future. The future payment of dividends directly depends upon our future earnings, capital requirements, financial requirements and other factors that our sole director will consider. Since we do not anticipate paying cash dividends on our common stock, return on your investment, if any, will depend solely on an increase, if any, in the market value of our common stock.

 

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

 

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

 

Because our directors are not independent directors, we do not currently have independent audit or compensation committees. As a result, our directors have the ability, among other things, to determine their own level of compensation. Until we comply with such corporate governance measures, regardless of whether such compliance is required, the absence of such standards of corporate governance may leave our stockholders without protections against interested director transactions, conflicts of interest, if any, and similar matters and investors may be reluctant to provide us with funds necessary to expand our operations.

 

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

 

You may have limited access to information regarding our business because our obligations to file periodic reports with the SEC could be automatically suspended under certain circumstances.

 

We are subject to certain informational requirements of the Exchange Act, as amended and we will be required to file periodic reports (i.e., annual, quarterly and special reports) with the SEC which will be immediately available to the public for inspection and copying. Except during the year that our registration statement becomes effective, these reporting obligations may (in our sole discretion) be automatically suspended under Section 15(d) of the Exchange Act if we have less than 300 shareholders and do not file a registration statement on Form 8A. If this occurs after the year in which our registration statement becomes effective, we will no longer be obligated to file periodic reports with the SEC and your access to our business information would then be even more restricted. We will not be required to furnish proxy statements to security holders and our directors, officer and principal beneficial owners will not be required to report their beneficial ownership of securities to the SEC pursuant to Section 16 of the Exchange Act until we have both 500 or more security holders that are not accredited investors (or, alternatively, 2,000 or more total shareholders) and greater than $10 million in assets. This means that your access to information regarding our business will be limited. We intend to file the Form 8A.

 

  22 
 

 

We will incur ongoing costs and expenses for SEC reporting and compliance; without revenue we may not be able to remain in compliance, making it difficult for investors to sell their shares, if at all.

 

Securities already quoted on the Pink Sheets or OTCBB that become delinquent in their required filings will be removed following a 30 or 60 day grace period if they do not make their required filing during that time. In order for us to remain in compliance we will require future revenues to cover the cost of these filings, which could comprise a substantial portion of our available cash resources. If we are unable to generate sufficient revenues to remain in compliance it may be difficult for you to resell any shares you may purchase, if at all.

 

For all of the foregoing reasons and others set forth herein, an investment in our securities in any market that may develop in the future involves a high degree of risk.

 

Item 1B. Unresolved Staff Comments.

 

None.

 

Item 2. Properties.

 

We hold no real property. We do not presently own any interests in real estate. We moved our executive, administrative and operating offices in December 2015 to our sole officer and director, Jeffrey Cocks’ virtual office, located at 316 California Avenue, Suite 543, Reno, NV 89509. We do not have a written lease with the landlord and Mr. Cocks currently provides space us at no cost. Our officer and directors will work remotely from Canada and intend to visit the Reno office every six weeks.

 

Item 3. Legal Proceedings.

 

We are not a party to any legal proceedings.

 

Item 4. Mine Safety Disclosures.

 

Not applicable.

 

PART II

 

Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

 

The Company’s common stock is quoted on the Pink Sheets OTC Pink under the symbol TRYV and was not declared effective by FINRA until January 26, 2015.

 

Common Stock Currently Outstanding

 

As of December 31, 2015, we have 21,950,000 shares of our common stock outstanding.

 

Holders

 

As of the date of this Report, we had 37 stockholders of record of our common stock.

 

Dividends

 

We have not declared any cash dividends on our common stock since our inception and do not anticipate paying any dividends in the foreseeable future. We plan to retain future earnings, if any, for use in our business. Any decisions as to future payments of dividends will depend on our earnings and financial position and such other facts, as our Director deems relevant.

 

Transfer Agent

 

Globex Transfer, LLC is our independent stock transfer agent.

 

Recent Sales of Unregistered Securities

 

None.

 

  23 
 

 

Additional Information

 

Copies of our annual reports on Form 10−K, quarterly reports on Form 10−Q, current reports on Form 8−K, and any amendments to those reports, are available free of charge on the Internet at www.sec.gov. All statements made in any of our filings, including all forward-looking statements, are made as of the date of the document, in which the statement is included, and we do not assume or undertake any obligation to update any of those statements or documents unless we are required to do so by law.

 

Item 6. Selected Financial Data.

 

Not required under Regulation S-K for “smaller reporting companies.”

 

Item 7. Management’s Discussion and Analysis of Financial Conditions and Results of Operations

 

This Annual Report on Form 10−K contains forward-looking statements. Our actual results could differ materially from those set forth as a result of general economic conditions and changes in the assumptions used in making such forward-looking statements. The following discussion and analysis of our financial condition and results of operations should be read together with the audited consolidated financial statements and accompanying notes and the other financial information appearing else where in this Report. The analysis set forth below is provided pursuant to applicable Securities and Exchange Commission regulations and is not intended to serve as a basis for projections of future events. Refer also to “Risk Factors” and “Cautionary Note Regarding Forward Looking Statements” in Item 1 above.

 

The following is management’s discussion and analysis of financial condition and results of operations and is provided as a supplement to the accompanying unaudited financial statements and notes to help provide an understanding of our financial condition, results of operations and cash flows during the periods included in the accompanying unaudited financial statements.

 

In this Annual Report on Form 10-K, “Company,” “the Company,” “us,” and “our” refer to Tech Foundry Ventures, Inc., a Nevada corporation, unless the context requires otherwise.

 

We intend the following discussion to assist in the understanding of our financial position and our results of operations for the year ended December 31, 2015 and for the period from February 27, 2014 (inception) through December 31, 2014. You should refer to the Financial Statements and related Notes in conjunction with this discussion.

 

Results of Operations

 

General

 

We were incorporated under the laws of the State of Nevada on February 27, 2014 with fiscal year end in December 31. We are a start up enterprise that is a consulting service company, to provide management and consulting services to early and middle stage start-ups. We also evaluate and will make investments in opportunities that we believe will enhance shareholder value. From March 2014 to May 2015, we were not engaged by any start-ups to provide any services. In June 2015, we entered into a consulting agreement with our first client. In December 2015, we entered into a joint venture as discussed in our Plan of Operation. From February 27, 2014 (inception) to December 31, 2015, we have accumulated losses in the amount of $156,994. We have never been party to any bankruptcy, receivership or similar proceeding, nor have we undergone any material reclassification, merger, consolidation, purchase or sale of a significant amount of assets not in the ordinary course of business.

 

We have only recently commenced operations to any significant measure. As of the date of this Annual Report, we have had only limited operations and have only generated $4,000 in revenues. We will not be profitable until we derive sufficient revenues and cash flows from the sale of our consulting services. Our chief executive officer and director, Jeffrey A. Cocks, is our only employee. Our other director, Michael Levine and Mr. Cocks will devote at least ten hours per week to us but may increase the number of hours as necessary.

 

As of December 31, 2015, we had $39,027 in cash on hand and in the bank. Management does believe this amount will satisfy our cash requirements for the next twelve months. In the event that our cash is insufficient to satisfy our future cash requirements - primarily the working capital required for operations, our majority shareholders have orally agreed to provide additional capital in the form of advances. If we raise capital through the issuance of equity, the additional equity financings will likely be in the form of private placements of common stock. As of December 31, 2015, our related party advances from three of our shareholders was $63,000.

 

  24 
 

 

Management believes that if subsequent private placements are successful, we will generate sales revenue within the following twelve months thereof. However, additional equity financing may not be available to us on acceptable terms or at all, and thus we could fail to satisfy our future cash requirements.

 

If we are unsuccessful in raising the additional proceeds through a private placement offering, we will then have to seek additional funds through debt financing, which would be highly difficult for a new company with nominal assets to secure. Therefore, we are highly dependent upon the success of a future private placement offering and failure thereof would result in our having to seek capital from other resources such as debt financing, which may not even be available to us. However, if such financing were available, because we are a startup company with minimal operations to date, we would likely have to pay additional costs associated with high-risk loans and be subject to an above market interest rate. At such time these funds are required, management would evaluate the terms of such debt financing and determine whether the business could sustain operations and growth and manage the debt load. If we cannot raise additional proceeds via a private placement of our common stock or secure debt financing we would be required to cease business operations. As a result, investors in our common stock would lose all of their investment.

 

We have no current plans, preliminary or otherwise, to merge with any other entity.

 

At the present time, we are negotiating with various investors to obtain additional equity financing. There can be no assurance that we will be successful in obtaining additional capital from these negotiations. If are unable to raise additional capital, our majority shareholders may advance us funds or until we do raise the cash, or cease operations entirely. Other than as described in this paragraph and the preceding paragraphs, we have no other financing plans.

 

On December 17, 2015, the Company entered into an agreement with Nevada Canyon Gold Corporation, a Nevada corporation (“NCG”), to acquire all of NCG’s rights, titles and interests in and to an Exploration Agreement, dated September 15, 2015, with an Option to form a Joint Venture (the “Agreement”) with Walker River Resources Corp., a Canadian public company (TSX.V:WRR). WRR owns a 100% undivided interest in and to the Lapon Canyon Gold Property, which is the subject of the Agreement. The Lapon Canyon gold project consists of 36 claims (720 acres/292 hectares), situated about 60 kilometers south of Yerington, Nevada, in the Wasuk Range, within Mineral County. (the “Lapon Canyon Claims”).

 

The Agreement does not grant the Company an interest in or to the Lapon Canyon Claims, or any equity interest in WRR, but rather, grants the Company the right to earn up to an undivided 50% interest in the Lapon Canyon Claims by the expenditure of US$500,000, over a two-year period, in exploration expenses in a work program established and operated by WRR on the Lapon Canyon Claims and, thereafter, grants the Company an option to enter into a Joint Venture with WRR for further exploration and development of the Lapon Canyon Claims. The Agreement also grants the Company the first right of refusal to acquire an additional 20% interest in the Lapon Canyon Claims by the expenditure of additional finds and performance of additional tasks, all related to the venture.

 

Full consideration for all rights in and to the Agreement consisted of a payment of US$65,000.00 by us to NGC, which consisted of an initial cash deposit payment of $25,000, a second cash payment of $30,000 and the balance of $10,000 that we paid through the issuance of 100,000 of our restricted common shares at a price of $0.10. We have paid all the consideration.

 

We are a party to the Agreement by NCG’s assignment of all of its rights under the Agreement.

 

Jeffrey A. Cocks serves as an officer and director of both the Company and NGC.

 

Management does not plan to hire additional employees at this time. Our officer and directors will be responsible for the initial service sourcing.

 

Critical Accounting Policy and Estimates

 

Our financial statements and related public financial information are based on the application of accounting principles generally accepted in the United States (“GAAP”). GAAP requires the use of estimates; assumptions, judgments and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenues and expense amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.

 

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Our Management’s Discussion and Analysis of Financial Condition and Results of Operations section discusses our 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 management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments, including those related to revenue recognition, accrued expenses, financing operations, and contingencies and litigation. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The most significant accounting estimates inherent in the preparation of our financial statements include estimates as to the appropriate carrying value of certain assets and liabilities which are not readily apparent from other sources. In addition, these accounting policies are described at relevant sections in this discussion and analysis and in the notes to the financial statements included in this Annual Report on Form 10-K.

 

The following discussion of our financial condition and results of operations should be read in conjunction with our audited financial statements for the period from February 27, 2014 (inception) through December 31, 2014, together with notes thereto, which are included in this Annual Report on Form 10-K.

 

For the year ended December 31, 2015 compared to the period from February 27, 2014 (inception) through December 31, 2014

 

Revenues. Our revenues increased $4,000 for the year ended December 31, 2015 to $4,000, or 100%, from $0 for the period from February 27, 2014 (inception) through December 31, 2014. The increase is attributable to us entering into our first consulting agreement with our first client.

 

Operating expenses. Operating expenses include exploration expenses, general and administrative expenses, professional fees, stock-based compensation, and transfer agent and filing fees. In total, operating expenses increased $20,651 to $90,610 for the year ended December 31, 2015, or 29.52% from $69,959 for the period from February 27, 2014 (inception) through December 31, 2014. The components of operating expenses are discussed below.

 

Exploration expenses increased $25,579 to $25,579, or 100% for the year ended December 31, 2015 from $0 for the period from February 27, 2014 (inception) through December 31, 2014. The increase is due to our joint venture agreement with Nevada Canyon Gold.

 

General and administrative expenses increased $1,661 for the year ended December 31, 2015 to $14,110, or 13.34%, from $12,449 for the period from February 27, 2014 (inception) through December 31, 2014. This is primarily attributable to increases in travel and entertainment, and a franchise fee, and was offset but the reversal of rent expense during the year.

 

Accrued rent expense, included in general and administrative expenses, from February 27, 2014 (inception) through December 31, 2014 of $1,800 was reversed in the year ended December 31, 2015. The reversal was due to the landlord of the virtual office in Santa Monica, California not charging rent, which we had accrued.

 

Professional fees decreased $12,221, or 27.43%, to $32,339 for the year ended December 31, 2015 from $44,560 for the period from February 27, 2014 (inception) through December 31, 2014. This is primarily due to a $22,000 decrease in legal fees, which was offset by a $8,279 increase in accounting fees and a $1,500 increase in consulting fees.

 

Net Loss. Our net loss increased $17,076, or 24.41%, to $87,035 for the year ended December 31, 2015 compared to a net loss of $69,959 for the period from February 27, 2014 (inception) through December 31, 2014. The increase is primarily attributable to an increase in transfer agent and filing fees and exploration expenses, which is offset by a decrease in professional fees.

 

Liquidity and Capital Resources. For the year ended December 31, 2015, we raised $85,000 in capital from the issuance of shares of common stock in our initial public offering.

 

Our total assets are $104,937 as of December 31, 2015, consisting of $39,027 in cash and $910 in prepaid expenses. Our working capital deficit is $124,894 as of December 31, 2015.

 

Our total liabilities are $164,831 as of December 31, 2015, which includes current liabilities of $1,406 of accounts payable, $100,425 in notes payable, which includes $425 in accrued interest, and $63,000 in advances from shareholders.

 

Our total stockholders’ deficit is $59,894 as of December 31, 2015, and an accumulated deficit of $156,994 as of December 31, 2015.

 

We used $96,073 of cash in net cash used by operating activities for the year ended December 31, 2015, which included $(87,035) in net loss. Accounts payable increased the net loss by $9,463 and accrued interest expense decreased it by 425.

 

  26 
 

 

We had $55,000 of cash used by investing activities for the year ended December 31, 2015, which consisted of cash used to invest in our mineral property interest.

 

We had $108,500 in cash provided by financing activities for the year ended December 31, 2015, consisting of the deposit of $8,500 in subscription funds received, and $100,000 from the note payable.

 

We do not now have funds sufficient for pursuing our plan of operation, but we are in the process of trying to procure funds sufficient to fund our operations until we are able to finance our operations through cash flow. There can be no assurance that we will be able to procure funds sufficient for such purpose. If operating difficulties or other factors (many of which are beyond our control) delay our realization of revenues or cash flows from operations, we may be limited in our ability to pursue our business plan. Moreover, if our resources from obtaining additional capital or cash flows from operations, once we commence them, do not satisfy our operational needs or if unexpected expenses arise due to unanticipated pressures or if we decide to expand our business plan beyond its currently anticipated level or otherwise, we will require additional financing to fund our operations, in addition to anticipated cash generated from our operations. Additional financing might not be available on terms favorable to us, or at all. If adequate funds were not available or were not available on acceptable terms, our ability to fund our operations, take advantage of unanticipated opportunities, develop or enhance our business or otherwise respond to competitive pressures would be significantly limited. In a worst-case scenario, we might not be able to fund our operations or to remain in business, which could result in a total loss of our stockholders’ investment. If we raise additional funds through the issuance of equity or convertible debt securities, the percentage ownership of our stockholders would be reduced, and these newly issued securities might have rights, preferences or privileges senior to those of existing stockholders.

 

The Company had no formal long-term lines or credit or other bank financing arrangements as of December 31, 2015.

 

The Company has no current plans for the purchase or sale of any plant or equipment.

 

The Company has no current plans to make any changes in the number of employees.

 

Income Tax Expense (Benefit)

 

The Company has a prospective income tax benefit resulting from a net operating loss carryforward and startup costs that may offset any future operating profit.

 

Impact of Inflation

 

The Company believes that inflation has had a negligible effect on operations over the past quarter.

 

Capital Expenditures

 

The Company expended no amounts on capital expenditures for the year ended December 31, 2015.

 

Plan of Operation

 

We were incorporated in the State of Nevada on February 27, 2014. We have never declared bankruptcy, have never been in receivership, and have never been involved in any legal action or proceedings. From inception to November 2015, we did not make any significant purchase or sale of assets. On December 17, 2015, we entered into a joint venture agreement with Nevada Canyon Gold, which required a $65,000 investment from us. The investment consisted of $55,000 in cash and the issuance of 100,000 shares of restricted common stock valued at $0.10 per share, or $10,000. We are a start up company that has only generated $4,000 in revenues.

 

Our business strategy is to market our website (www.techfoundryventures.com) whereby potential companies will be able to review our services and engage us. We will develop our presence on e-commerce sites as Facebook, Twitter, LinkedIn and other sites. We are also focusing on expanding our referral network by targeting other advisors such as lawyers, accountants, insurance agents, financial planners and other service professionals.

 

The number of companies, which we will be able to provide services to will depend upon the success of our marketing efforts through our website and our referral network.

 

Our business is advising and consulting with start-up and development stage companies and companies by providing administrative support to their management so that management can focus on the core products and services and not be consumed by administrative details that consume their time. We intend to advise companies on their capital formation, consulting with jurisdictional selection, corporate governance, administrative duties, such as bookkeeping, accounting, regulatory compliance and reporting, valuation and other administrative tasks that entrepreneurs may not be familiar. We envision ourselves as mentors to empower companies to achieve their business growth objectives by providing the management team with financial and management guidance and partnering with them to help them succeed in the financial markets.

 

  27 
 

 

To the extent that our clients desire to become a public company, we will assist them and work closely with senior legal, auditing and technical advisors that have vast knowledge in the “Going Public” process and are well versed with regulatory requirements. We and the advisors we intend to work with will assist management understand the value of their assets and build a proper structure around those assets to help create a fair value for the company. We believe that by providing guidance and support to our potential clients and assisting them in structuring their company and valuation will allow them to grow their business and enable them to achieve the next stages of accessing capital to expand. We intend to partner and work with professional and technical advisors that have knowledge and expertise in advising start-up and development stage companies. To the extent that our potential clients request our assistance in seeking capital or accessing the capital markets, we intend to introduce them to the appropriate advisors who have the requisite expertise in the various areas that may require such expertise.

 

Our founders have access to strategic relationships with financial firms, investment bankers, brokers, individual and institutional investors as well as accountants and attorneys in North America and worldwide. In addition to providing administrative support to our clients’ management teams, we can offer to advise our clients on strategic transactions and provide a global understanding of how the capital markets work. Our founders have invested their capital in the public markets and have experience with public companies. We believe that a properly structured company eases the ability to attract the initial capital from brokers, private investors, angels, and institutional investors thereby allowing management the necessary capital to develop the Company. We believe that a properly structured, funded, and administered company with capable management allows us to get “the story” out to our many public and private investors. This process allows us to work with the investment community helping them understand the client company while simultaneously gaining exposure to investment capital. We intend to charge our clients an hourly rate to advise them but will not engage in activities that would require us to be licensed broker dealers or investment advisors.

 

We also intend to invest in opportunities that we believe will enhance our shareholders’ value. In December 2015, we invested $65,000 in a joint venture to acquire Nevada Canyon Gold’s 50% in an agreement, which is discussed in our Plan of Operation.

 

We may conduct limited research and development of additional services to offer. We do not expect to purchase or sell plant or significant equipment. Further we do not expect significant changes in the number of employees. Our plan of operations is as follows:

 

Establish our Office and Joint Venture (JV) Exploration Expenditures

 

Time Frame: 1st- 3rd months.

Material costs: minimum $2,500.

JV Expenditures: minimum $60,000.

 

In the first quarter of 2016 , we plan to set up a physical office in Reno, NV, where we currently operate from a virtual office that one of our directors provides to us without any expense on our part. We then intend to acquire the necessary equipment to continue operations. We plan to purchase or lease office equipment such as PC, telephones, fax, office supplies and furniture. Our sole officer and one of our directors, Jeffrey Cocks, will take care of our initial administrative duties. We believe that it will cost at least $2,500 to set up office and obtain the necessary equipment and stationery to continue operations. Mr. Cocks intends to visit the Reno office monthly. During the times Mr. Cocks not in Reno, NV, he will operate out of his residence in Canada.

 

Our Exploration Agreement with Walker River Resources (“WRR”) requires us to spend $500,000 in exploration expenses, over a two-year period, in a work program WRR established on the Lapon Canyon Claims, to earn up to an 50% undivided interest in the Lapon Canyon Claims During the first quarter of 2016, we estimate that we will spend approximately $60,000 in exploration expenses to fulfill our commitment under the Exploration Agreement.

 

Expand Our Website and Joint Venture (JV) Exploration Expenditures

 

Time Frame: 3rd-6th months.

Material costs: $3,000.

JV Expenditures: minimum $60,000.

 

When our office is set up, we intend to begin expanding our website. Our sole officer and one of our directors, Jeffrey Cocks, will be in charge of overseeing the expansion of our website and the services we intend to offer. The website expansion costs, including enhanced site design and implementation will be approximately $3,000. Updating and improving our website will continue throughout the lifetime of our operations.

 

  28 
 

 

Our Exploration Agreement with Walker River Resources (“WRR”) requires us to spend $500,000 in exploration expenses, over a two year period, in a work program WRR established on the Lapon Canyon Claims, to earn up to an 50% undivided interest in the Lapon Canyon Claims During the first quarter of 2016, we estimate that we will spend approximately $60,000 in exploration expenses to fulfill our commitment under the Exploration Agreement.

 

Negotiate agreements with potential referral sources and customers

 

Time Frame: 6th-12th months.

No material costs.

 

Now that our website is operational, we will continue to contact potential customers and referral sources. We will negotiate terms and conditions of collaboration. We are currently focused on local advisors such as attorneys, accountants, insurance agents and financial planners. We do not expect to compensate any referral sources and will offer reciprocal referrals to any source that is willing to refer us clients. Then we plan to expand our target market to other service providers and investment professionals such as brokers and investment bankers. This activity will be ongoing throughout our operations. Even though the negotiation with potential customers and referral sources will be ongoing during the life of our operations, we cannot guarantee that we will be able to find successful agreements, in which case our business may fail and we will have to cease our operations. We do not expect to enter into formal written agreements with our referral sources and intend for these agreements to be oral. We intend to enter into consulting agreements with our clients that will set forth the scope of services we agree to with these clients and provide for the hourly, contingent or flat rate billing arrangements.

 

In the future, when/if we have available resources, operating history and experience, we plan to contact larger referrals sources that have more established clients. However, we anticipate encountering many market barriers in becoming a service provider to clients of large established professionals. Our competitors have gained customer loyalty and brand identification through their long-standing advertising and customer service efforts. This creates a barrier to market entry by forcing us to spend time and money to differentiate our product in the marketplace and overcome these loyalties. The large established service providers may require capital investments in personnel. They also may have exclusive agreements with key franchises and others for the similar services. Considering our lack of operating history and experience in being a consulting firm to start-ups and development stage companies, we may never become a consultant to large established clients.

 

Ongoing Marketing Campaign and Joint Venture (JV) Exploration Expenditures

 

Time Frame: 6th - 12th months.

Material costs: $15,000-$25,000.

 

We intend to use marketing strategies, such as web advertisements, direct mailing, and phone calls to acquire potential customers. We also plan to attend trade shows in web, mobile and entertainment industry to showcase our services with a view to find new customers. We believe that we should begin to see results from our marketing campaign within 120 days from its initiation. We also will use Internet promotion tools on Facebook and Twitter to advertise our services. We intend to spend from $15,000-$25,000 on marketing efforts during the first year. Marketing is an ongoing matter that will continue during the life of our operations. Our campaign will consist of soliciting clients by offering to provide administrative support to management with an emphasis on relieving management from the details of administrative paperwork so they can focus on their creative efforts.

 

Even if we are able to obtain sufficient number of service agreements at the end of the twelve-month period, there is no guarantee that we will be able to attract and more importantly retain enough customers to justify our expenditures. If we are unable to generate a significant amount of revenue and to successfully protect ourselves against those risks, then it would materially affect our financial condition and our business could be harmed.

 

JV Expenditures: minimum $120,000.

 

Our Exploration Agreement with Walker River Resources (“WRR”) requires us to spend $500,000 in exploration expenses, over a two year period, in a work program WRR established on the Lapon Canyon Claims, to earn up to an 50% undivided interest in the Lapon Canyon Claims During the first quarter of 2016, we estimate that we will spend approximately $120,000 in exploration expenses to fulfill our commitment under the Exploration Agreement.

 

Hire a Salesperson or Independent Contractors

 

Time Frame: 8th-12th months.

Material costs: $12,000-24,000.

 

We anticipate hiring one salesperson in 2016 with good knowledge and broad connections in the consulting industry to introduce our services. The salesperson’s job would be to find new potential clients, and to set up agreements with customers and referral sources to engage our services. The negotiation of additional agreements with potential customers will be ongoing during the life of our operations.

 

  29 
 

 

In summary, during 1st-6th month we should have established our Reno office and further expanded our website. After this point we should be ready to start more significant operations and start selling our services. During months 6-12 we will be developing our marketing campaign. There is no assurance that we will generate any revenue in the first 12 months after completion our offering or ever generate any revenue.

 

Jeffrey Cocks, our president will be devoting approximately ten hours per week to our operations. Once we expand operations, and are able to attract more and more customers to use our services, Mr. Cocks has orally agreed to commit more time as required. Because Mr. Cocks will only be devoting limited time to our operations, our operations may be sporadic and occur at times which are convenient to him. As a result, operations may be periodically interrupted or suspended which could result in a lack of revenues and a cessation of operations. Mr. Cocks has orally agreed to limit his responsibilities at West Isle Ventures, Ltd. to providing consulting services to Canadian companies in industries that we do not intend to pursue. West Isle Ventures, Ltd. has provided consulting services to companies in a variety of industries; however, Mr. Cocks will devote his efforts with us to consult with companies in the United States and with companies in our target industries.

 

Estimated Expenses for the Next Twelve Months

 

The following provides an overview of our estimated expenses to fund our plan of operation for the next twelve months. To date, we have raised $85,000 from our initial public offering and $100,000 from the issuance of a nine-month Promissory Note:

 

Description  Expenses 
     
SEC reporting and compliance  $15,000 
Establishing and office   2,500 
Website expansion   3,000 
Marketing and advertising   25,000 
JV Expenditures   250,000 
Other expenses   54,000 
      
Total  $349,500 

 

We anticipate that the minimum capital necessary to fund our planned operations in this case for the 12-month period will be approximately $300,000 to $350,000 depending on the availability of funds and will be used for general administrative expenses, business development, marketing costs, continue to fund the exploration expenditures and fulfill our obligations under the Exploration Agreement with WRR and costs associated with being a publicly reporting company. As a result, we will need to seek additional funding in the near future, if necessary. The most likely source of this additional capital is through the sale of additional shares of common stock or advances from our sole officer and director, our other director or our shareholders. Mr. Cocks, our sole officer and director, Mr. Levine, our other director and BCIM Management, LP, have already advanced us $63,000 as of December 31, 2015. However, our existing shareholders have no firm commitment, arrangement or legal obligation to advance or loan funds to the Company.

 

If we are able to successfully complete the above goals within the estimated timeframes set forth and are able to raise proceeds additional proceeds that may be needed to secure additional personnel and marketing funds, those funds would be allocated as follows:

 

Our management may hire full or part- time employees or independent contractors over the next six (6) months depending on the amount of marketing they intend to devote to third parties; however, at the present, the services provided by our officer and directors appear sufficient at this time. We believe that our operations are currently on a small scale that is manageable by these two individuals and can be supplemented by engaging independent contractors. Our management’s responsibilities are mainly administrative at this early stage. While we believe that the addition of employees is not required over the next six (6) months, the professionals we plan to utilize may be independent contractors. We do not intend to enter into any employment agreements with any of these professionals. Thus, these persons are not intended to be employees of our company.

 

Our management does not expect to incur any material research costs in the next twelve months; we currently do not own any plants or equipment that we would seek to sell in the near future; we do not have any off-balance sheet arrangements; and we have not paid for expenses on behalf of our officer or directors. Additionally, we believe that this fact shall not materially change.

 

  30 
 

 

Recently Issued Accounting Pronouncements

 

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

 

We have implemented all new accounting pronouncements that are in effect and that may impact our financial statements and do not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on our financial position or results of operations.

 

Critical Accounting Policies

 

The preparation of financial statements and related notes requires us to make judgments, estimates, and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and related disclosure of contingent assets and liabilities.

 

An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimates that are reasonably likely to occur periodically, could materially impact the financial statements.

 

Financial Reporting Release No. 60 requires all companies to include a discussion of critical accounting policies or methods used in the preparation of financial statements. There are no critical policies or decisions that rely on judgments that are based on assumptions about matters that are highly uncertain at the time the estimate is made. Note 2 to the financial statements, included elsewhere in this prospectus, includes a summary of the significant accounting policies and methods used in the preparation of our financial statements.

 

Seasonality

 

We have not noted a significant seasonal impact in our business (or businesses like ours) although having just commenced operations it is too early to tell.

 

Off-Balance Sheet Arrangements

 

None.

 

Recent Accounting Pronouncements

 

We have adopted all recently issued accounting pronouncements. The adoption of the accounting pronouncements is not anticipated to have a material effect on our operations.

 

Item 7A. Quantitative and Qualitative Disclosures about Market Risk.

 

As a “smaller reporting company” as defined by Item 10 of Regulation S-K, we are not required to provide information required by this item.

 

Item 8. Financial Statements and Supplementary Data.

 

Our audited financial statements are set forth in this Annual Report beginning on page F-1.

 

  31 
 

 

TECH FOUNDRY VENTURES, INC.

 

FINANCIAL STATEMENTS

 

DECEMBER 31, 2015 AND 2014

 

INDEX TO FINANCIAL STATEMENTS

 

  PAGE
     
Financial Statements    
     
Reports of Independent Registered Public Accounting Firm   F-1
     
Balance Sheets as of December 31, 2015 and 2014   F-3
     
Statement of Operations for the year ended December 31, 2015 and for the period of February 27, 2014 (inception) to December 31,2014   F-4
     
Statement of Stockholders’ Equity (Deficit) for the year ended December 31, 2015 and for the period of February 27, 2014 (inception) to December 31,2014   F-5
     
Statements of Cash Flows for the year ended December 31, 2015 and for the period of February 27, 2014 (inception) to December 31,2014   F-6
     
Notes to Financial Statements   F-7

 

  32 
 

 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Stockholders and Board of Directors of Tech Foundry Ventures Inc.

 

We have audited the accompanying balance sheet of Tech Foundry Ventures Inc. (the “Company”) as at December 31, 2015 and the related statements of operations, stockholders’ deficit and cash flows for the year then. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

 

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

 

In our opinion, based on our audit, these financial statements present fairly, in all material respects, the financial position of the Company as at December 31, 2015 and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, to date the Company has reported losses since inception from operations and requires additional funds to meet its obligations and fund the costs of its operations. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in this regard are described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

   
  DALE MATHESON CARR-HILTON LABONTE LLP
  CHARTERED PROFESSIONAL ACCOUNTANTS

 

Vancouver, Canada

March 9, 2016

 

 

 

 F-1 
 

 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors and shareholders

Tech Foundry Ventures, Inc.

 

We have audited the accompanying balance sheet of Tech Foundry Ventures, Inc. (the “Company”) as of December 31, 2014, and their related statement of operations, statement of changes in stockholders’ equity and cash flows for the period from February 27, 2014 (inception) to December 31, 2014. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

 

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

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2014, and the results of their operations and their cash flows for the period February 27, 2014 (inception) through December 31, 2014, in conformity with accounting principles generally accepted in the United States of America.

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has had an accumulated deficit of $69,959 since inception to December 31, 2014, and the Company has had no revenue through December 31, 2014. These conditions, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

/s/ Anton & Chia LLP  
Newport Beach, CA  
March 30, 2015  

 

 F-2 
 

 

TECH FOUNDRY VENTURES, INC.

Balance Sheets

 

   December 31, 2015   December 31, 2014 
         
ASSETS          
Current Assets          
Cash  $39,027   $81,600 
Undeposited subscription funds   -    8,500 
Prepaid expenses   910    910 
    39,937    91,010 
Mineral property interest   65,000    - 
   $104,937   $91,010 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
Current Liabilities          
Accounts payable  $1,406   $10,869 
Subscription deposits   -    3,500 
Related party advances   63,000    63,000 
Note payable, net with accrued interest of $425   100,425    - 
    164,831    77,369 
           
Stockholders’ Equity (Deficit)          
Preferred Stock, Authorized 10,000,000 preferred shares, $0.0001 par, none issued and outstanding as of December 31, 2015 and 2014   -    - 
Common Stock; Authorized 100,000,000 common shares, $0.0001 par, 21,950,000 and 21,815,000 issued and outstanding as of December 31, 2015 and 2014, respectively   2,195    2,182 
Additional paid in capital   94,905    81,418 
Accumulated deficit   (156,994)   (69,959)
    (59,894)   13,641 
   $104,937   $91,010 

 

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

 

 F-3 
 

 

TECH FOUNDRY VENTURES, INC.

Statements of Operations

 

   For the year ended
December 31, 2015
   For the period from
February 27, 2014
(Inception) through
December 31, 2014
 
         
Revenue  $4,000   $- 
           
Operating expenses          
Exploration expenses   25,579    - 
General and administrative expenses   14,110    12,449 
Professional fees   32,339    44,560 
Stock-based compensation   -    2,100 
Transfer agent and filling fees   18,582    10,850 
    (90,610)   (69,959)
           
Other items          
Accrued interest expense   (425)   - 
           
Net and comprehensive loss  $(87,035)  $(69,959)
           
Net loss per common share - basic and diluted  $(0.00)  $(0.00)
           
Weighted average number of common shares outstanding basic and diluted   21,853,356    21,133,562 

 

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

 

 F-4 
 

 

TECH FOUNDRY VENTURES, INC.

Statement of Stockholders’ Equity (Deficit)

 

   Common Stock   Additional
Paid-in
   Accumulated     
   Shares   Amount   Capital   Deficit   Total 
Balance at February 27, 2014 (Inception)   -   $-   $-   $-   $- 
                          
Founders’ shares, issued for services rendered on February 28, 2014 at $0.0001 per share   21,000,000    2,100    -    -    2,100 
                          
Issuance of common stock at $0.10 per share   815,000    82    81,418    -    81,500 
                          
Net loss for the period   -    -    -    (69,959)   (69,959)
                          
Balances, December 31, 2014   21,815,000   $2,182   $81,418   $(69,959)  $13,641 
                          
Issuance of common stock at $0.10 per share   35,000    3    3,497    -    3,500 
                          
Issuance of common stock at $0.10 per share for mineral property interest   100,000    10    9,990    -    10,000 
                          
Net loss for the year   -    -    -    (87,035)   (87,035)
                          
Balances, December 31, 2015   21,950,000   $2,195   $94,905   $(156,994)  $(59,894)

 

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

 

 F-5 
 

 

TECH FOUNDRY VENTURES, INC.

Statements of Cash Flow

 

   For the year ended
December 31, 2015
   For the period from
February 27, 2014
(Inception) through
December 31, 2014
 
OPERATING ACTIVITIES          
Cash flows used in operating activities          
Net Loss  $(87,035)  $(69,959)
Adjustments to reconcile net income to net cash provided used for operations          
Stock-based compensation   -    2,100 
Accrued interest expense   425    - 
Changes in operating assets and liabilities          
Accounts payable   (9,463)   10,869 
Prepaid expenses   -    (910)
Net cash used by Operating Activities   (96,073)   (57,900)
           
INVESTING ACTIVITIES          
Acquisition of mineral property interest   (55,000)   - 
Net cash used by Investing Activities   (55,000)   - 
           
FINANCING ACTIVITIES          
Deposit of subscription funds received   8,500    - 
Issuance of common stock   -    73,000 
Subscription deposits received in advance   -    3,500 
Shareholder advances   -    63,000 
Note payable   100,000    - 
Net cash provided by Financing Activities   108,500    139,500 
           
Net cash (decrease) increase for period   (42,573)   81,600 
Cash, at beginning   81,600    - 
Cash, at end  $39,027   $81,600 
           
Supplemental cash flow information:          
Cash paid for interest  $-   $- 
Cash paid for income taxes  $-   $- 

 

During the year ended December 31, 2015, the Company issued 100,000 common shares at a value of $0.10 per share for the acquisition of its mineral property interest.

 

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

 

 F-6 
 

 

TECH FOUNDRY VENTURES, INC.

Notes to the Financial Statements

December 31, 2015

 

NOTE 1 - NATURE OF BUSINESS

 

 

Tech Foundry Ventures, Inc. (the “Company”) was incorporated under the laws of the state of Nevada on February 27, 2014. The Company has limited operations and is developing a business plan to provide consulting services to startup companies in Southern California and North America. The Company intends to service development stage enterprises that are seeking startup capital and offer a variety of services to them, which they normally would not be able to afford. The Company also intends to make investments in companies, and/or development stage assets, if it determines that an investment would be appropriate.

 

Going Concern

 

The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America (“US GAAP”) applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established a source of revenues to cover its operating costs and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

 

The outcome of these matters cannot be predicted with any certainty at this time and raise substantial doubt that the Company will be able to continue as a going concern. These financial statements do not include any adjustments to the amounts and classifications of assets and liabilities that may be necessary should the Company be unable to continue as a going concern. Management intends to obtain additional funding by borrowing funds, and/or a private placement of common stock.

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

 

Basis of Presentation

 

These financial statements and related notes are presented in accordance with US GAAP, and are presented in United States dollars.

 

Use of Estimates and Assumptions

 

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. The Company regularly evaluates estimates and assumptions related to the fair value of stock-based compensation, impairment of its interest in a mineral property, and deferred income tax asset valuation allowances. The Company bases its estimates and assumptions on current facts, historical experience and various other factors that it believes to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the accrual of costs and expenses that are not readily apparent from other sources. The actual results experienced by the Company may differ materially and adversely from the Company’s estimates. To the extent there are material differences between the estimates and the actual results, future results of operations will be affected.

 

Basis of Accounting

 

The Company’s financial statements are prepared using the accrual method of accounting, except for cash flow information. The Company has elected a December 31 fiscal year end.

 

 F-7 
 

 

Income Taxes

 

Income tax expense is based on pre-tax financial accounting income. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets, including tax loss and credit carry forwards, 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 that includes the enactment date. Deferred income tax expense represents the change during the period in the deferred tax assets and deferred tax liabilities. The components of the deferred tax assets and liabilities are individually classified as current and non-current based on their characteristics. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not some portion or all of the deferred tax assets will not be realized.

 

Loss per Share

 

The Company’s basic loss per share is calculated by dividing its net loss available to common stockholders by the weighted average number of common shares outstanding for the period. The Company’s dilutive loss per share is calculated by dividing its net loss available to common shareholders by the diluted weighted average number of shares outstanding during the period. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity.

 

Fair Value of Financial Instruments

 

The Company’s financial instruments include cash, accounts payable, related party advances, and note payable. All instruments are accounted for on a historical cost basis, which, due to the short maturity of these financial instruments, approximates fair value at December 31, 2015 and 2014 respectively.

 

Financial instruments measured at fair value are classified into one of three levels in the fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

 

  Level 1. Observable inputs such as quoted prices in active markets;
     
  Level 2. Inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and
     
  Level 3. Unobservable inputs in which there is little or no market data, which requires the reporting entity to develop its own assumptions.

 

Cash is measured at fair value using level 1 inputs.

 

Stock Based Compensation

 

For equity awards, such as stock options, total compensation cost is based on the grant date fair value and for liability awards, such as stock appreciation rights, total compensation cost is based on the settlement value. The company recognizes stock-based compensation expense for all awards over the service period required to earn the award, which is the shorter of the vesting period or the time period an employee becomes eligible to retain the award at retirement.

 

Mineral Property Interests

 

Costs of exploration and costs of carrying and retaining unproven properties are expensed as incurred. The Company considers mineral rights to be tangible assets and accordingly, the Company capitalizes certain costs related to the acquisition of mineral rights.

 

 F-8 
 

 

Revenue recognition

 

Revenue consists of service revenue generated from management and consulting services. Revenue is recognized when services have been delivered, the amount is fixed or determinable, collection is probable and cost incurred or to incur can be measured reliably.

  

Reclassification

 

Certain prior period numbers have been reclassified to conform with current year presentation.

 

Recent Accounting Pronouncements

 

The Company has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results of operations.

 

NOTE 3 – RELATED PARTY TRANSACTIONS

 

 

As at December 31, 2015 and 2014, the Company’s three shareholders had advanced $63,000 to fund working capital expenses. These advances are unsecured and do not carry an interest rate or repayment terms.

 

During the year ended December 31, 2015, the Company incurred $4,000 (2014 - $2,500) in professional fees to its President, CEO and CFO.

 

During the year ended December 31, 2015, the Company entered into a definitive agreement with Nevada Canyon Gold Corporation, a company with the President and CEO in common with the Company (Note 4).

 

NOTE 4 – MINERAL PROPERTY INTEREST

 

 

On December 17, 2015, the Company entered into a definitive agreement with Nevada Canyon Gold Corporation, a Nevada corporation (“NCG”), to acquire all of NCG’s rights, titles and interests in and to an exploration agreement with an option to form a joint venture with Walker River Resources Corp., a Canadian public company (“WRR”), dated September 15, 2015 (the “Agreement”). WRR owns a 100% undivided interest in and to the Lapon Canyon Gold Property, containing the Lapon Canyon claims, which is the subject of the Agreement.

 

The Agreement does not grant the Company an interest in or to the Lapon Canyon claims, or any equity interest in WRR, but rather, grants the Company the right to earn up to an undivided 50% interest in the Lapon Canyon claims by incurring expenditures of US$500,000, over a two-year period, in exploration expenses in a work program established and operated by WRR on the Lapon Canyon claims and, thereafter, grants the Company an option to enter into a joint venture with WRR for further exploration and development of the Lapon Canyon claims. The Agreement also grants the Company the first right of refusal to acquire an additional 20% interest in the Lapon Canyon claims by the expenditure of additional funds and performance of additional tasks, all related to the joint venture.

 

Full consideration for all rights in and to the Agreement consisted of the following: payment of US$65,000 by the Company to NGC, consisting of an initial cash payment of $25,000 deposit, a cash payment of $30,000 and the balance of $10,000 paid through the issuance of 100,000 common shares of the Company issued to NGC at a price of $0.10. All consideration has been fully paid as at December 31, 2015.

 

NOTE 5 – NOTE PAYABLE

 

 

During the year ended December 31, 2015, the Company loaned $100,000 from an unrelated party. The loan bears an interest rate of 5%, commencing on December 1, 2015. All outstanding principal and interest is due on July 31, 2016. During the year ended December 31, 2015, the Company accrued $425 in interest expense.

 

 F-9 
 

 

NOTE 6 – STOCKHOLDERS’ DEFICIT

 

 

The Company was formed with one class of common stock, $0.0001 par value and is authorized to issue 100,000,000 common shares and one class of preferred stock, $0.0001 par value and is authorized to issue 10,000,000 preferred shares. Voting rights are not cumulative and, therefore, the holders of more than 50% of the common stock could, if they chose to do so, elect all of the directors of the Company.

 

During the year ended December 31, 2015, the Company completed the following transactions:

 

  On January 5, 2015, the Company issued 35,000 shares of its common stock at a price of $0.10 per share for $3,500 to individuals pursuant to its registration statement on Form S-1. Proceeds of $3,500 were received in advance, during the period ended December 31, 2014.
     
  On December 17, 2015, the Company issued 100,000 shares of its common stock at a price of $0.10 per share for the acquisition of its mineral property interest (Note 4).

 

During the year ended December 31, 2015, the Company completed the following transactions:

 

  On February 27, 2014, the Company issued 21,000,000 shares of common stock to its founders, Jeffrey Cocks, Michael Levine and BCIM Management, LP. Jeffrey Cocks and Michael Levine are the Company’s directors and Jeffrey Cocks is the Company’s sole officer. The Company issued this stock to Mr. Cocks, Mr. Levine and BCIM Management, LP in exchange for $2,100 of services rendered to the Company in its formation at a price of $0.0001 per share.
     
  From October 30, 2014 to November 24, 2014, the Company issued 815,000 shares of its common stock at a price of $0.10 per share for $81,500 to individuals pursuant to its registration statement on Form S-1. Of the total proceeds, $73,000 was received during the period ended December 31, 2014, and the remaining $8,500 was received during the year ended December 31, 2015.

 

As at December 31, 2015, there are 21,950,000 shares of common stock outstanding.

 

NOTE 7 – REVENUE

 

 

During the year ended December 31, 2015, the Company provided consulting services to Walker River Resources Corp. in the amount of $4,000.

 

 F-10 
 

  

NOTE 8 – INCOME TAXES

 

 

A reconciliation of the expected income tax recovery to the actual income tax recovery is as follows:

 

   2015   2014 
Net loss  $(87,035)  $(69,959)
Statutory tax rate   34%   34%
Expected income tax recovery at statutory rate   (29,592)   (23,786)
Non-deductible expenditures   655    1,008 
Change in valuation allowance   28,937    22,778 
Total income tax expense  $-   $- 

 

The Company has the following deductible temporary differences:

 

   2015   2014 
Deferred income tax assets:          
Non-capital loss carry-forward  $51,715   $22,778 
Total deferred income tax assets   51,715    22,778 
Less: Valuation allowance   (51,715)   (22,778)
Net deferred income tax asset  $-   $- 

 

Realization of deferred tax assets is dependent upon sufficient future taxable income during the period that deductible temporary differences and carry-forwards are expected to be available to reduce taxable income. As the achievement of required future taxable income is uncertain, the Company recorded a valuation allowance.

 

The Company has non-capital losses of approximately $152,000, which expire between 2034 to 2035. Tax attributes are subject to review, and potential adjustment, by tax authorities.

  

 F-11 
 

 

Item 9. Controls and Procedures.

 

(a) Evaluation of Disclosure Controls and Procedures.

 

Disclosure controls and procedures are designed with an objective of ensuring that information required to be disclosed in our periodic reports filed with the Securities and Exchange Commission, such as this Annual Report on Form 10-K, is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission. Disclosure controls are also designed with an objective of ensuring that such information is accumulated and communicated to our management, including our chief executive officer, in order to allow timely consideration regarding required disclosures.

 

The evaluation of our disclosure controls by our principal executive officer included a review of the controls’ objectives and design, the operation of the controls, and the effect of the controls on the information presented in this Annual Report. Our management, including our chief executive officer, does not expect that disclosure controls can or will prevent or detect all errors and all fraud, if any. A control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Also, projections of any evaluation of the disclosure controls and procedures to future periods are subject to the risk that the disclosure controls and procedures may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our Chief Executive Officer and Principal Financial Officer, of the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934 as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures as of December 31, 2015 were not effective in timely alerting them to material information which is required to be included in our periodic reports filed with the SEC as of the end of the period covering this report and to ensure that information required to be disclosed by us in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. There have been no material changes in our internal controls over financial reporting or in other factors that could materially affect, or are reasonably likely to affect, our internal controls over financial reporting for the year ended December 31, 2015.

 

(b) Management’s Annual Report on Internal Control Over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting for the company in accordance with as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act. Our internal control over financial reporting is designed to provide reasonable assurance regarding the (i) effectiveness and efficiency of operations, (ii) reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, and (iii) compliance with applicable laws and regulations. Our internal controls framework is based on the criteria set forth in the Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

Management’s assessment of the effectiveness of the small business issuer’s internal control over financial reporting is for the year ended December 31, 2015. We believe that internal control over financial reporting is not effective. We have identified current material weaknesses considering the nature and extent of our current operations and any risks or errors in financial reporting under current operations. The Company does not have adequate segregation of duties in the handling of their financial reporting. This is caused by a very limited number of personnel.

 

This annual report does not include an attestation report of the company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the SEC that permit the Company to provide only management’s report in this annual report.

 

(c) Changes in internal controls.

 

There was no change in our internal control over financial reporting that occurred for the year ended December 31, 2015, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

  33 
 

 

Item 9B. Other Information.

 

Not applicable.

 

PART III

 

Item 10. Directors, Executive Officers and Corporate Governance.

 

Our director serves until his successor is elected and qualified. Our director elects our officers to a term of one (1) year and they serve until their successors are duly elected and qualified, or until they are removed from office. The board of directors has no nominating or compensation committees.

 

The name, address, age, and position of our present officers and director is set forth below:

 

Name   Age  

Title(s) 

         
Jeffrey Cocks   52   Chairman, Chief Executive Officer, Principal Executive Officer, Chief Financial Officer, Principal Financial Officer, Principal Accounting Officer and Secretary
         
Michael Levine   66   Director

 

The persons named above have held their offices/positions since February 28, 2014, and we expect them to hold their offices/positions at least until the next annual meeting of our shareholders.

 

Mr. Jeffrey Cocks, Chairman, President, Chief Executive Officer, Chief Financial Officer, Secretary

 

Jeffrey Cocks is our Chairman, Chief Executive Officer, Chief Financial Officer and Secretary and has served in that capacity since February 28, 2014. From August 1996 to the present, Mr. Cocks has served as the Chairman and Chief Executive Officer of West Isle Ventures, Ltd., a Canadian company that provides consulting services to start-ups and other companies. Mr. Cocks also serves on the board of directors and audit committees of Trinity Valley Energy Corp and Portola Resources Corp. both of which are traded on the Toronto Stock Exchange. Mr. Cocks has over 25 years of experience in consulting, sales, marketing, product development and branding as well as corporate compliance in the executive offices including overseeing his company’s accounting, compliance and finance departments and as a director of several public companies in both the United States and Canada. Mr. Cocks has a degree from Simon Frasier University in its securities program.

 

Mr. Michael Levine, Director

 

Michael Levine is a Director and has served in this capacity since February 28, 2014. From July 2004 to the present, Mr. Levine has served as the Chairman and President of TML Entertainment, Inc., a company that specializes in the exploitation and marketing of musical copyrights. From 2007 to 2012, Mr. Levine served as a director and audit committee member of Knightscove Media Corp., a Canadian entertainment company that specialized in the distribution, acquisition and creation of high quality live-action feature films and television productions for the whole family. Mr. Levine has served as an officer and director of a number of public and private companies in the United States and Canada and has experience with U.S. and Canadian reporting companies. From 1975 to 1993, Mr. Levine was the keyboardist and bassist for the Canadian power rock trio, Triumph. Mr. Levine is credited with much of the group’s success and produced the band’s early recordings. Triumph earned 16 gold and 9 platinum sales awards in Canada and the United States. Mr. Levine is a member of the Canadian Music Hall of Fame and the Canadian Music Industry Hall of Fame.

 

Possible Potential Conflicts

 

The OTCBB on which we have our shares of common stock quoted does not currently have any director independence requirements.

 

No member of management will be required by us to work on a full time basis. Accordingly, certain conflicts of interest may arise between us and our officer and director in that he may have other business interests in the future to which he devotes his attention, and he may be expected to continue to do so although management time must also be devoted to our business. As a result, conflicts of interest may arise that can be resolved only through his exercise of such judgment as is consistent with each officer’s understanding of his fiduciary duties to us. In the course of other business activities, they may become aware of business opportunities that may be appropriate for presentation to us, as well as the other entities with which they are affiliated. As such, there may be conflicts of interest in determining to which entity a particular business opportunity should be presented. In an effort to reduce or minimize any conflicts, Messrs. Cocks and Levine have orally agreed that any opportunities that are presented to them in the United States will be directed to the Company and that any opportunities presented to them in Canada will be available for their other business interests.

 

  34 
 

 

In an effort to resolve such potential conflicts of interest, our officers and sole director have orally agreed that any opportunities that they are aware of independently or directly through their association with us (as opposed to disclosure to them of such business opportunities by management or consultants associated with other entities) would be presented by them solely to us. Mr. Cocks has orally agreed to limit his responsibilities at West Isle Ventures, Ltd. to providing consulting services to Canadian companies in industries that we do not intend to pursue. West Isle Ventures, Ltd. has provided consulting services to companies in a variety of industries; however, Mr. Cocks will devote his efforts with us to consult with companies in the United States and with companies in our target industries. In December 2015, Mr. Cocks presented us with an opportunity to enter into a joint venture with Nevada Canyon Gold, a Nevada corporation. Mr. Cocks also serves as a director of Nevada Canyon Gold.

 

We cannot provide assurances that our efforts to eliminate the potential impact of conflicts of interest will be effective.

 

Currently we have two officers and directors and will seek to add additional officer(s) and/or director(s) as and when the proper personnel are located and terms of employment are mutually negotiated and agreed, and we have sufficient capital resources and cash flow to make such offers.

 

We cannot provide assurances that our efforts to eliminate the potential impact of conflicts of interest will be effective.

 

Code of Business Conduct and Ethics

 

On February 28, 2014, we adopted a Code of Ethics and Business Conduct which is applicable to our future employees and which also includes a Code of Ethics for our chief executive and principal financial officers and any persons performing similar functions. A code of ethics is a written standard designed to deter wrongdoing and to promote:

 

  honest and ethical conduct,
     
  full, fair, accurate, timely and understandable disclosure in regulatory filings and public statements,
     
  compliance with applicable laws, rules and regulations,
     
  the prompt reporting violation of the code, and
     
  accountability for adherence to the code.

 

A copy of our Code of Business Conduct and Ethics has been filed with the Securities and Exchange Commission as Exhibit 14.1 to our registration statement of which this prospectus is a part.

 

Board of Directors

 

Our directors hold office until the completion of their term of office, which is not longer than one year, or until a successor(s) have been elected. Our directors’ term of office expires on February 28, 2016. All officers are appointed annually by the board of directors and, subject to existing employment agreements (of which there are currently none), serve at the discretion of the board. Currently, directors receive no compensation for their role as directors but may receive compensation for their role as officers.

 

Involvement in Certain Legal Proceedings

 

During the past ten years, no present director, executive officer or person nominated to become a director or an executive officer of us:

 

  (1) had a petition under the federal bankruptcy laws or any state insolvency law filed by or against, or a receiver, fiscal agent or similar officer appointed by a court for the business or property of such person, or any partnership in which he was a general partner at or within two years before the time of such filing, or any corporation or business association of which he was an executive officer at or within two years before the time of such filing;
     
  (2) was convicted in a criminal proceeding or subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);

 

  35 
 

 

  (3) was subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from or otherwise limiting his involvement in any of the following activities:

 

  i. acting as a futures commission merchant, introducing broker, commodity trading advisor commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;
     
  ii. engaging in any type of business practice; or
     
  iii. engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of federal or state securities laws or federal commodities laws; or

 

  (4) was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of an federal or state authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described in paragraph (3) (i), above, or to be associated with persons engaged in any such activity; or
     
  (5) was found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and for which the judgment has not been reversed, suspended or vacated.

 

Committees of the Board of Directors

 

Concurrent with having sufficient members and resources, our board of directors will establish an audit committee and a compensation committee. We believe that we will need a minimum of five directors to have effective committee systems. The audit committee will review the results and scope of the audit and other services provided by the independent auditors and review and evaluate the system of internal controls. The compensation committee will manage any stock option plan we may establish and review and recommend compensation arrangements for the officers. No final determination has yet been made as to the memberships of these committees or when we will have sufficient members to establish committees. See “Executive Compensation” hereinafter.

 

We will reimburse all directors for any expenses incurred in attending directors’ meetings provided that we have the resources to pay these fees. We will consider applying for officers and directors’ liability insurance at such time when we have the resources to do so.

 

Summary Executive Compensation Table

 

The following table shows, for the year ended December 31, 2015 and for the period from February 27, 2014 (inception) to December 31, 2014, compensation awarded to or paid to, or earned by, our Chief Executive Officer (the “Named Executive Officer”) and directors.

 

SUMMARY COMPENSATION TABLE

 

Name and
principal
position (a)
 

Year

(b)

  

Salary

($)

(c)

  

Bonus

($)

(d)

  

Stock

Awards

($)

(e)

  

Option

Awards

($)

(f)

  

Non-Equity

Incentive

Plan

Compensation

($)

(g)

  

Nonqualified

Deferred

Compensation

Earnings

($)

(h)

  

All Other

Compensation

($)

(i)

  

Total ($)

(j)

 
Jeffrey Cocks, CEO, CFO  and Director(1)   2015    -    -    -    -    -    -    -    - 
    2014    -    -    -    -    -    -    700    700 
                                              
Michael Levine, Director(2)   2015    -    -    -    -    -    -    -    - 
    2014    -    -    -    -    -    -    700    700 

 

We have no formal employment arrangement with Mr. Cocks or Mr. Levine at this time. Mr. Cocks’ and Mr. Levine’s compensation has not been fixed or based on any percentage calculations. Mr. Cocks and Mr. Levine will make all decisions determining the amount and timing of their compensation and, for the immediate future, will not receive any compensation. The Company’s board will formalize Mr. Cocks’ compensation amount if and when his annual compensation exceeds $50,000.

 

  (1) Mr. Cocks received 7,000,000 shares of our common stock for organizational services, which our board of directors valued at $0.0001 per share, or $700, for preformation efforts. We do not intend on issuing any additional shares to Mr. Cocks for organizational services or for his activities as a director.
     
  (2) Mr. Levine received 7,000,000 shares of our common stock for organizational services, which our board of directors valued at $0.0001 per share, or $700, for preformation efforts. We do not intend on issuing any additional shares to Mr. Levine for his activities as a director.

 

  36 
 

 

Grants of Plan-Based Awards Table

 

We currently do not have any equity compensation plans. Therefore, none of our named executive officers received any grants of stock, option awards or other plan-based awards for the year ended December 31, 2015 and for the period from February 27, 2014 (inception) through December 31, 2014.

 

Outstanding Equity Awards at Fiscal Year-End Table

 

None. We do not have any equity award compensation plans.

 

Item 11. Executive Compensation

 

Summary Executive Compensation Table

 

The following table shows, for the fiscal year ended December 31, 2015 and for the period from February 27, 2014 (inception) through December 31, 2014, compensation awarded to or paid to, or earned by, our Chief Executive Officer (the “Named Executive Officer”).

 

SUMMARY COMPENSATION TABLE

 

Name and
principal
position (a)

   

Year

(b)

    

Salary

($)

(c)

    

Bonus

($)

(d)

    

Stock

Awards

($)

(e)

    

Option

Awards

($)

(f)

    

Non-Equity

Incentive

Plan

Compensation

($)

(g)

    

Nonqualified

Deferred

Compensation

Earnings

($)

(h)

    

All Other

Compensation

($)

(i)

    

Total ($)

(j)

 
Jeffrey A. Cocks CEO, CFO(1)   2015    -    -    -    -    -    -    -    - 
    2014    -    -    -    -    -    -    -    - 

 

We have no formal employment arrangement with Mr. Cocks at this time. Mr. Cocks’ compensation has not been fixed or based on any percentage calculations. Mr. Cocks will make all decisions determining the amount and timing of their compensation and, for the immediate future, will not receive any compensation. Mr. Cocks’ compensation amounts will be formalized if and when his annual compensation exceeds $50,000.

 

  (1) Mr. Cocks received 7,000,000 shares of our common stock for organizational services, which we valued at $700. We do not intend on issuing any additional shares to Mr. Cocks for organizational services or for his activities as a director.

 

Grants of Plan-Based Awards Table

 

We currently do not have any equity compensation plans. Therefore, none of our named executive officers received any grants of stock, option awards or other plan-based awards for the year ended December 31, 2015 and for the period from February 27, 2014 (inception) through December 31, 2014.

 

Outstanding Equity Awards at Fiscal Year-End Table

 

None. We do not have any equity award compensation plans.

 

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

 

The following table sets forth, as of the date of this prospectus, the total number of shares owned beneficially by our officers and directors, and key employees, individually and as a group, and the present owners of 5% or more of our total outstanding shares. The shareholders listed below have direct ownership of their shares and possess sole voting and dispositive power with respect to the shares. As of February 26, 2016, we had 21,950,000 shares of common stock outstanding of which 21,000,000 is held by 3 shareholders. There is not any pending or anticipated arrangements that may cause a change in control.

 

  37 
 

 

Title of Class  Name and Address of Beneficial Owner  Amount and Nature of Beneficial Owner  

Percent of Class 

 
              
Common Stock  Jeffrey Cocks   7,000,000    32.04%
Common Stock  Michael Levine   7,000,000    32.04%
Common Stock  BCIM Management, LP(1)   7,000,000    32.04%
   All Officers and Directors as a Group (2 persons)   21,000,000    96.12%

 

(1) Ron Tattum, has dispositive voting control over the shares owned by BCIM Management, LP.

 

Item 13. Certain Relationships and Related Transactions, and Director Independence.

 

Our promoters are Mr. Cocks, our chairman, chief executive officer, chief financial officer and secretary, and Mr. Levine, our director.

 

Our office and mailing address is 316 California Avenue, Suite 543, Reno, NV 89509.

 

On February 28, 2014, we issued 7,000,000 shares of our common stock to Jeffrey Cocks, our chief executive officer, chief financial officer, secretary and director and 7,000,000 shares of our common stock to Michael Levine, our director. These shares were issued in exchange for services our board of directors valued at $700 and $700, respectively or $0.0001 per share. During 2014, Messrs. Cocks, Levine and Tattum each advanced us $21,000 for a total of $63,000. These shareholder advances due not bear interest and they have orally agreed not to seek repayment until we are financial able to repay the advances.

 

Our officers and sole director are required to commit time to our affairs and, accordingly, may have conflicts of interest in allocating management time among various business activities. In the course of other business activities, they may become aware of business opportunities that may be appropriate for presentation to us, as well as the other entities with which they are affiliated. As such, there may be conflicts of interest in determining to which entity a particular business opportunity should be presented.

 

In an effort to resolve such potential conflicts of interest, our officers and directors have orally agreed that any opportunities that they are aware of independently or directly through their association with us (as opposed to disclosure to them of such business opportunities by management or consultants associated with other entities) would be presented by them solely to us.

 

On December 17, 2015, the Company entered into an agreement with Nevada Canyon Gold Corporation, a Nevada corporation (“NCG”), to acquire all of NCG’s rights, titles and interests in and to an Exploration Agreement, dated September 15, 2015, with an Option to form a Joint Venture (the “Agreement”) with Walker River Resources Corp., a Canadian public company (TSX.V:WRR). WRR owns a 100% undivided interest in and to the Lapon Canyon Gold Property, which is the subject of the Agreement. The Lapon Canyon gold project consists of 36 claims (720 acres/292 hectares), situated about 60 kilometers south of Yerington, Nevada, in the Wasuk Range, within Mineral County. (the “Lapon Canyon Claims”).

 

The Agreement does not grant the Company an interest in or to the Lapon Canyon Claims, or any equity interest in WRR, but rather, grants the Company the right to earn up to an undivided 50% interest in the Lapon Canyon Claims by the expenditure of US$500,000, over a two-year period, in exploration expenses in a work program established and operated by WRR on the Lapon Canyon Claims and, thereafter, grants the Company an option to enter into a Joint Venture with WRR for further exploration and development of the Lapon Canyon Claims. The Agreement also grants the Company the first right of refusal to acquire an additional 20% interest in the Lapon Canyon Claims by the expenditure of additional finds and performance of additional tasks, all related to the venture.

 

Full consideration for all rights in and to the Agreement consisted of a payment of US$65,000.00 by us to NGC, which consisted of an initial cash deposit payment of $25,000, a second cash payment of $30,000 and the balance of $10,000 that we paid through the issuance of 100,000 of our restricted common shares at a price of $0.10. We have paid all the consideration.

 

We are a party to the Agreement by NCG’s assignment of all of its rights under the Agreement.

 

Jeffrey A. Cocks serves as an officer and director of both the Company and NGC and Mr. Cocks provides us with our virtual office space for no cost.

 

We cannot provide assurances that our efforts to eliminate the potential impact of conflicts of interest will be effective.

 

  38 
 

 

There have been no other related party transactions, or any other transactions or relationships required to be disclosed pursuant to Item 404 of Regulation S-K.

 

With regard to any future related party transaction, we plan to fully disclose any and all related party transactions, including, but not limited to, the following:

 

  disclose such transactions in prospectuses where required;
     
  disclose in any and all filings with the Securities and Exchange Commission, where required;
     
  obtain disinterested directors’ consent; and
     
  obtain shareholder consent where required.

 

Item 14. Principal Accountant Fees and Services.

 

During the last two fiscal years, the Company’s independent auditors have billed for their services as set forth below. In addition, fees and services related to the audit of the financial statements of the Company for the years ended December 31, 2015, as contained in this Report, are estimated and included for the fiscal year ended December 31, 2015.

 

   December 31, 2015   December 31, 2014 
         
Audit Fees  $2,964   $2,500 
Audit-Related Fees  $7,875   $3,000 
Tax Fees  $-   $- 
All Other Fees  $-   $- 

 

Pre-Approval Policy

 

Our Director pre-approves all services provided by our auditors. Prior to the engagement of our auditor, for any non-audit or non-audit related services, our Director must conclude that such services are compatible with the independence of our auditors.

  

  39 
 

 

PART IV

 

Item 15. Exhibits, Financial Statement Schedules.

 

EXHIBITS

 

The following exhibits are filed as part of this registration statement, pursuant to Item 601 of Regulation S-K.

 

Exhibit Number   Description of Exhibits
3.1   Articles of Incorporation
3.1.1   Certificate of Correction to Articles of Incorporation
3.1.2**   Certificate of Amendment to Articles of Incorporation
3.2   Bylaws

14.1

10.01.1*

10.01.2*

 

Code of Ethics

Material Definitive Agreement, dated December 17, 2015

Material Definitive Exploration and Option Agreement, dated September 15, 2015

31.1**   Certification of the Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934*.
31.2**   Certification of the Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934*.
32.1**   Certification of the Chief Executive Officer pursuant to 18 U.S.C Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*.
32.2**   Certification of the Chief Financial Officer pursuant to 18 U.S.C Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002*.
   

_______________________________

 

101.INS**   XBRL Instance Document
101.SCH**   XBRL Taxonomy Extension Schema
101.CAL**   XBRL Taxonomy Extension Calculation Linkbase
101.DEF**   XBRL Taxonomy Extension Definition Linkbase
101.LAB**   XBRL Taxonomy Extension Label Linkbase
101.PRE**  

XBRL Taxonomy Presentation Linkbase

 

*   Previously filed.
**   Filed herewith.

 

  40 
 

 

SIGNATURES

 

 Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  TECH FOUNDRY VENTURES, INC.
   
March 15, 2016 /s/ Jeffrey A. Cocks
 

Jeffrey A. Cocks

Chairman and Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Accounting and Financial Officer)

 

In accordance with the Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

March 15, 2016 /s/ Jeffrey A. Cocks
 

Jeffrey A. Cocks

Chairman and Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Accounting and Financial Officer) and Sole Director

 

  41