0001556244-18-000170.txt : 20181116 0001556244-18-000170.hdr.sgml : 20181116 20181116154332 ACCESSION NUMBER: 0001556244-18-000170 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 30 CONFORMED PERIOD OF REPORT: 20180930 FILED AS OF DATE: 20181116 DATE AS OF CHANGE: 20181116 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ROCKETFUEL BLOCKCHAIN, INC. CENTRAL INDEX KEY: 0000823546 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-PREPACKAGED SOFTWARE [7372] IRS NUMBER: 901188745 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 033-17773-NY FILM NUMBER: 181189773 BUSINESS ADDRESS: STREET 1: 3651 LINDELL ROAD, SUITE D565 CITY: LAS VEGAS STATE: NV ZIP: 89103 BUSINESS PHONE: 424-256-8560 MAIL ADDRESS: STREET 1: 3651 LINDELL ROAD, SUITE D565 CITY: LAS VEGAS STATE: NV ZIP: 89103 FORMER COMPANY: FORMER CONFORMED NAME: B4MC GOLD MINES INC DATE OF NAME CHANGE: 20131115 FORMER COMPANY: FORMER CONFORMED NAME: HEAVENLY HOT DOGS INC DATE OF NAME CHANGE: 20100504 FORMER COMPANY: FORMER CONFORMED NAME: HEAVENLY HOT DOGS INC / DATE OF NAME CHANGE: 20011115 10-Q 1 rkfl180930_10q.htm 180930 RKFL FORM 10-Q IMSC Form 10K Template





UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-Q

 

(Mark One)

x  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2018

or

o  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from      to

Commission File Number: 033-17773-NY

 

ROCKETFUEL BLOCKCHAIN, INC.

(Exact name of registrant as specified in its charter)

 

Nevada

 

90-1188745

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

 

 

3651 Lindell Road, Las Vegas, Nevada

 

89103

(Address of principal executive offices)

 

(Zip Code)

 

(424) 256-8560

(Registrant’s telephone number, including area code)

 

B4MC Gold Mines, Inc.

(Former name, former address and former fiscal year, if changed since last report)

 

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

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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    No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company.  See the definitions 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

Emerging growth company      

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.      

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

As of November 16, 2018, there were 22,688,416 shares of the registrants Common Stock outstanding.









ROCKETFUEL BLOCKCHAIN, INC.

TABLE OF CONTENTS


 

 

Page

PART I

FINANCIAL INFORMATION

 

Item 1

Condensed Financial Statements

 

 

Condensed Balance Sheet at September 30, 2018 (unaudited) and March 31, 2018

3

 

Condensed Statements of Operations for the three and six months ended September 30, 2018 (unaudited)

4

 

Condensed Statements of Cash Flows for the six months ended September 30, 2018 (unaudited)

5

 

Notes to Condensed Financial Statements (unaudited)

6

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

10

Item 3

Quantitative and Qualitative Disclosures About Market Risk

12

Item 4

Controls and Procedures

12

PART II

OTHER INFORMATION

 

Item 1.

Legal Proceedings

13

Item 1A.

Risk Factors

13

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

13

Item 3

Defaults Upon Senior Securities

13

Item 4

Mine Safety Disclosures

13

Item 5

Other Information

13

Item 6

Exhibits

14

 

Signatures

15








2






ROCKETFUEL BLOCKCHAIN, INC.

Condensed Balance Sheets

(Unaudited)

 

 

September 30, 2018

 

March 31,

2018

ASSETS

 

 

 

Current assets:

 

 

 

  Cash

$

20,746 

 

$

300 

    Total current assets and total assets

$

20,746 

 

300 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

Current liabilities:

 

 

 

  Accounts payable and accrued expenses

$

22,706 

 

$

3,500 

  Advances payable to related parties

 

305 

    Total current liabilities and total liabilities

22,706 

 

3,805 

 

 

 

 

Stockholders’ deficit:

 

 

 

  Preferred stock; $0.001 par value; 50,000,000 and 0 shares authorized; and 0 shares issued and outstanding as of September 30, 2018 and March 31, 2018, respectively

 

  Common stock; $0.001 par value; 250,000,000 and 750,000,000 shares authorized; and 22,668,416 shares and 1,000 shares issued and outstanding as of September 30, 2018 and March 31, 2018, respectively

22,668 

 

  Additional paid-in capital

3,387,507 

 

250,299 

  Accumulated deficit

(3,412,135)

 

(253,805)

Total stockholders’ deficit

(1,960)

 

(3,505)

Total liabilities and stockholders’ deficit

$

20,746 

 

$

300 















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




3






ROCKETFUEL BLOCKCHAIN, INC.

Condensed Statements of Operations

(Unaudited)

 

 

 

 

 

Three Months Ended

September 30, 2018

 

Six Months Ended September 30, 2018

Revenues

$

 

$

 

 

 

 

Expenses:

 

 

 

  General and administrative

3,243,125 

 

3,284,325 

Loss from operations

(3,243,125)

 

(3,284,325)

Other Income:

 

 

 

  Forgiveness of debt

35,250 

 

35,250 

      Total other income

35,250 

 

32,250 

Net loss before provision for income taxes

(3,207,875)

 

(3,249,075)

Provision for income taxes

 

Net loss

$

(3,207,875)

 

$

(3,249,075)

 

 

 

 

Net loss per common share, basic and diluted

$

(0.14)

 

$

(0.27)

 

 

 

 

Weighted average common shares outstanding, basic and diluted

22,668,416 

 

11,855,321 















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




4







ROCKETFUEL BLOCKCHAIN, INC.

Condensed Statement of Cash Flows

(Unaudited)

 

 

 

Six Months Ended September 30, 2018

 

 

Cash flows from operating activities:

 

  Net loss

$

(3,249,075)

  Adjustment to reconcile net loss to net cash flows used in operating activities:

 

    Stock-based compensation

3,154,208 

    Changes in assets and liabilities:

 

      Accounts payable and accrued expenses

19,206 

        Net cash flows used in operating activities

(75,661)

Cash flows from financing activities:

 

  Repayment of related party advances

(305) 

  Effect of reverse-merger transaction on additional paid-in capital

96,412 

        Net cash flows provided by financing activities

96,107 

        Net change in cash

20,446 

        Cash at the beginning of period

300 

        Cash at the end of period

$

20,746 

 

 

Supplemental disclosure of cash flow information:

 

  Income taxes paid

$

 

 















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




5



ROCKETFUEL BLOCKCHAIN, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

SEPTEMBER 30, 2018

(UNAUDITED)


1.

Business

Business

RocketFuel Blockchain Company, a Nevada corporation (“RocketFuel” or the “Company”) was formed on January 12, 2018 for the purpose of bringing highly efficient check-out systems to eCommerce. These new check-out means based upon blockchain technology are designed to increase speed, security, and ease of use. Using RocketFuel’s technology, merchants can enable new impulse buying schemes that may be unavailable in present day eCommerce sites.

On June 27, 2018, we consummated a transaction as contemplated by that certain Contribution Agreement made and entered into as of June 27, 2018 by and among B4MC Gold Mines, Inc. (“B4MC”), a Nevada corporation, and us. Pursuant to the Contribution Agreement, B4MC issued 17,001,312 shares of its $0.001 par value common stock to us in exchange for a 100% ownership interest in us resulting in 22,668,416 post-merger shares of B4MC common stock issued and outstanding. On September 25, 2018, B4MC changed its name to RocketFuel Blockchain, Inc.

On June 29, 2018, we filed a Current Report on Form 8-K with the Securities and Exchange Commission which fully describes the transaction set forth herein.

Our corporate headquarters are located in Las Vegas, Nevada.

2.

Interim Financial Statements and Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information pursuant to Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments (consisting only of normal recurring adjustments), which we consider necessary, for a fair presentation of those financial statements. The results of operations and cash flows for the three and six months ended September 30, 2018 may not necessarily be indicative of results that may be expected for any succeeding quarter or for the entire fiscal year. These condensed financial statements should be read in conjunction with our audited financial statements as of March 31, 2018 and for the period from January 12, 2018 (date of inception) through March 31, 2018, which are included in Exhibit 99.1 of our Current Report on Form 8-K as filed with the Securities and Exchange Commission (the “SEC”) on June 29, 2018.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments, which are evaluated on an ongoing basis, and that affect the amounts reported in our unaudited condensed financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments.

Our significant accounting policies are described in Note 3 to the audited financial statements as of March 31, 2018 and for the period from January 12, 2018 (date of inception) through March 31, 2018, which are included in Exhibit 99.1 of the Current Report of B4MC Gold Mines, Inc., our predecessor company, on Form 8-K as filed with the SEC on June 29, 2018.

3.

Going Concern

Our financial statements have been presented on the basis that we are a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. We incorporated our business on January 12, 2018. During the six months ended September 30, 2018, we have reported a net loss of $3,249,075 and negative cash flows of $75,661 from operating activities. As of September 30, 2018, we reported negative working capital of $1,960. As a result, management believes that there is substantial doubt about our ability to continue as a going concern.

Prior to June 27, 2018, management was engaged in efforts to identify and negotiate a transaction with a public



6



ROCKETFUEL BLOCKCHAIN, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

SEPTEMBER 30, 2018

(UNAUDITED)


company quoted on the OTC Markets having shell status where a contemplated transaction would be treated as a reverse merger. On June 27, 2018, we consummated a transaction as contemplated by that certain Contribution Agreement made and entered into as of June 27, 2018 by and among B4MC and us. Pursuant to the Contribution Agreement, B4MC issued 17,001,312 shares of its $0.001 par value common stock to us in exchange for a 100% ownership interest in us resulting in 22,668,416 post-merger shares of B4MC common stock issued and outstanding. We financed our efforts to consummate this reverse merger transaction through the issuance of equity securities. We will require additional financing in order to continue to develop our product and execute on our business plan. However, there can be no assurances that we will be successful in raising the additional capital necessary to continue operations and execute on our business plan.

4.

New Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on our accounting and reporting. We believe that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on our accounting or reporting or that such impact will not be material to our financial position, results of operations and cash flows when implemented.

5.

Related Party Transactions

As of September 30, 2018 and March 31, 2018, we reported $0 and $305, respectively, as an advance payable to related party.

6.

Income Taxes

We are required to file federal and state income tax returns in the United States. The preparation of these tax returns requires us to interpret the applicable tax laws and regulations in effect in such jurisdictions, which could affect the amount of tax paid by us. In consultation with our tax advisors, we base our tax returns on interpretations that are believed to be reasonable under the circumstances. The tax returns, however, are subject to routine reviews by the various federal and state taxing authorities in the jurisdictions in which we file tax returns. As part of these reviews, a taxing authority may disagree with respect to the income tax positions taken by us (“uncertain tax positions”) and, therefore, may require us to pay additional taxes. As required under applicable accounting rules, we accrue an amount for our estimate of additional income tax liability, including interest and penalties, which we could incur as a result of the ultimate or effective resolution of the uncertain tax positions. We account for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry-forwards 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. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized.

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

Income tax credit for the three and six months ended September 30, 2018 was $0 and $0, respectively. The effective tax rates for the six months ended September 30, 2018 was 21.0%. We have estimated our provision for income taxes in accordance with the Tax Act and guidance available as of the date of this filing but have kept the full valuation allowance.

The 2018 tax rate reflects the enactment of the Tax Cuts and Jobs Act of 2017 (the “Act”) which made significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017.

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a federal corporate tax



7



ROCKETFUEL BLOCKCHAIN, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

SEPTEMBER 30, 2018

(UNAUDITED)


rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of foreign earnings.

On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The deferred tax expense recorded in connection with the remeasurement of deferred tax assets is a provisional amount and a reasonable estimate at December 31, 2017 based upon the best information currently available. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Act. Any subsequent adjustment to these amounts will be recorded to current tax expense in the quarter of 2018 when the analysis is complete. The accounting is expected to be complete when the 2017 U.S. corporate income tax return is filed in 2018.

7.

Stockholders’ Deficit

Prior to August 8, 2018, we had 750,000,000 shares of our $0.001 par value common stock authorized. On August 8, 2018, our Board of Directors voted to amend our articles of incorporation whereby the authorized shares of our common stock were reduced to 250,000,000. Additionally, the Board authorized 50,000,000 shares of $0.001 par value preferred stock. On September 25, 2018, we filed a certificate of amendment to our articles of incorporation to effect such changes. On June 27, 2018, we consummated a transaction as contemplated by that certain Contribution Agreement made and entered into as of June 27, 2018 by and among B4MC and us. Pursuant to the Contribution Agreement, B4MC issued 17,001,312 shares of its $0.001 par value common stock to us in exchange for a 100% ownership interest in us resulting in 22,668,416 post-merger shares of B4MC common stock issued and outstanding. As of September 30, 2018 and March 31, 218, we had 22,668,416 shares and 1,000 shares of our common stock issued and outstanding.

8.

Stock-Based Compensation

On August 8, 2018, the Board and stockholders holding a majority of our voting power approved the “RocketFuel Blockchain, Inc., 2018 Equity Incentive Plan,” which plan enables us to make awards that qualify as performance-based compensation. We have reserved 2,000,000 shares of our common stock for issuance in connection with awards under the plan.

On August 8, 2018, our Board of Directors approved the grant of options to purchase 500,000 shares of our common stock to Mr. Bennett J. Yankowitz, our chief financial officer and a director, pursuant to an exemption under Section 4(a)(2) of the Securities Act of 1933, as amended. Pursuant to the terms of the option agreement, these options are exercisable immediately on the date of grant at an exercise price of $3.00 per share and are exercisable for a term of 10 years from the date of grant. In determining the fair value of the stock option, we will utilize the Black-Scholes pricing model utilizing the following assumptions: i) stock option exercise price of $3.00; ii) fair market value of our common stock of $8.50, which was based on available valuation factors made available to us during the period from the date of grant through the end of our fiscal quarter ending September 30, 2018; iii) expected term of option of 7 years; iv) expected volatility of our common stock of approximately 40%; v) expected dividend rate of 0.0%; and vi) risk-free interest rate of approximately 2.80%. As a result, we recorded stock-based compensation of $3,154,208 during each of the three and six months ended September 30, 2018.

9.

Legal Proceedings

We are not the subject of any pending legal proceedings; and to the knowledge of management, no proceedings are presently contemplated against us by any federal, state or local governmental agency. Further, to the knowledge of management, no director or executive officer is party to any action in which any has an interest adverse to us.

10.

Subsequent Events

We evaluated all events or transactions that occurred after the balance sheet date through the date when we issued these financial statements and, other than as described below, we did not have any material recognizable subsequent events during this period.



8



ROCKETFUEL BLOCKCHAIN, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

SEPTEMBER 30, 2018

(UNAUDITED)


On October 1, 2018, we entered into a corporate advisory agreement with a consultant (the “Consultant”), who is a non-related party, to provide business advisory services, including research distribution services. As compensation for these services, the Consultant received 12,500 shares of our common stock having a value of $120,312 based on a fair market value of $9.625 per share as quoted on the OTC Markets on the date of issuance.




9





Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains certain statements that are “forward-looking” within the meaning of the federal securities laws. These forward-looking statements and other information are based on our beliefs as well as assumptions made by us using information currently available.

The words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,” “should” and similar expressions, as they relate to us, are intended to identify forward-looking statements. Such statements reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions, and are not guaranties of future performance. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated, expected, intended or using other similar expressions. We are making investors aware that such forward-looking statements, because they relate to future events, are by their very nature subject to many important factors that could cause actual results to differ materially from those contemplated by the forward-looking statements contained in this Quarterly Report on Form 10-Q. Important factors that could cause actual results to differ from our predictions include those discussed under “Risk Factors,” “Management’s Discussion and Analysis” and “Business.” Although we have sought to identify the most significant risks to our business, we cannot predict whether, or to what extent, any of such risks may be realized, nor can there be any assurance that we have identified all possible issues which we might face. For all of these reasons, the reader is cautioned not to place undue reliance on forward-looking statements contained herein, which speak only as of the date hereof. We assume no responsibility to update any forward-looking statements as a result of new information, future events, or otherwise except as required by law. We urge readers to review carefully the risk factors described in this Quarterly Report and in the other documents that we file with the Securities and Exchange Commission. You can read these documents at www.sec.gov.

Overview

RocketFuel was formed on January 12, 2018 for the purpose of bringing highly efficient check-out systems to eCommerce.  We are currently developing innovative check-out systems based upon blockchain technology and designed to increase speed, security, and ease of use. We believe that users of RocketFuel’s systems will enjoy a seamless check-out experience compared to current online shopping solutions. We believe that with RocketFuel’s technology, online merchants will be able to implement new impulse buying schemes that are unavailable in present day eCommerce sites. During the period from January 12, 2018 (date of inception) and through September 30, 2018, we commenced research and development of our application and fulfillment monitoring system.

On June 27, 2018, we consummated the Business Combination and related transactions contemplated by the Contribution Agreement. Pursuant to the Contribution Agreement, B4MC issued 17,001,312 shares of its $0.001 par value common stock to the Sellers in exchange for a 100% ownership interest in us, resulting in 22,668,416 post-merger shares of B4MC common stock issued and outstanding.

On June 29, 2018, we filed a Current Report on Form 8-K with the Securities and Exchange Commission which fully describes the transaction set forth herein.

Critical Accounting Policies

Our significant accounting policies are described in Note 3 to the financial statements as of March 31, 2018 and for the period from January 12, 2018 (date of inception) through March 31, 2018, which are included in Exhibit 99.1 of our Current Report on Form 8-K. Our discussion and analysis of our financial condition and results of operations are based upon these financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We evaluate our estimates on an on an on-going basis. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. In the past, actual results have not been materially different from our estimates. However, results may differ from these estimates under different assumptions or conditions.



10





Results of Operations

We were incorporated on January 12, 2018. Accordingly, there are no prior period operations for comparative purposes.

For the Three Months Ended September 30, 2018

Revenues

We had no revenue generating operations during the three months ended September 30, 2018.

General and Administrative Expenses

General and administrative expenses for the three months ended September 30, 2018 were $3,243,125, which is primarily composed of approximately $60,000 in professional fees, $13,000 in regulatory fees and $3,154,208 of stock-based compensation for stock options granted to Mr. Bennett Yankowitz.

Other Income

Other income for the three months ended September 30, 2018 was $35,250 and represents the forgiveness of debt related to a vendor which was over accrued as of September 30, 2018.

For the Six Months Ended September 30, 2018

Revenues

We had no revenue generating operations during the six months ended September 30, 2018.

General and Administrative Expenses

General and administrative expenses for the six months ended September 30, 2018 were $3,284,325, which is primarily composed of approximately $101,000 in professional fees, $13,000 in regulatory fees and $3,154,208 of stock-based compensation for stock options granted to Mr. Bennett Yankowitz.

Other Income

Other income for the six months ended September 30, 2018 was $35,250 and represents the forgiveness of debt related to a vendor which was over accrued as of September 30, 2018.

Liquidity and Capital Resources

As of September 30, 2018, we had cash of $20,746.

During the six months ended September 30, 2018, we had net cash of $75,661 used in operating activities, which was composed of our net loss of $3,249,075 and offset by (i) the effect of stock-based compensation of $3,154,2018; and (ii) an increase in accounts payable and accrued expenses of $19,206 primarily for legal and accounting fees.

During the six months ended September 30, 2018, we had net cash of $96,107 provided by financing activities, which was composed of (i) the repayment of $305 of related party advances, and (ii) the adjustment of $96,412 to reflect the effect on additional paid-in capital of the reverse merger transaction.

Our financial statements have been presented on the basis that we are a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. We incorporated our business on January 12, 2018. During the six months ended September 30, 2018, we have reported a net loss of $3,249,075 and negative cash flows of $75,661 from operating activities. As of September 30, 2018, we reported negative working capital of $1,960. As a result, management believes that there is substantial doubt about our ability to continue as a going concern.

Prior to June 27, 2018, management was engaged in efforts to identify and negotiate a transaction with a public company quoted on the OTC Markets having shell status where a contemplated transaction would be treated as a reverse merger. On June 27, 2018, we consummated a transaction as contemplated by that certain Contribution Agreement made and entered into as of June 27, 2018 by and among B4MC Gold Mines, Inc. (“B4MC”), a Nevada corporation, and us. Pursuant to the Contribution Agreement, B4MC issued 17,001,312 shares of its $0.001 par value common stock to us in exchange for a 100% ownership interest in us resulting in 22,668,416 post-merger shares of B4MC common stock issued and outstanding. We financed our efforts to consummate this reverse merger transaction through the issuance of equity securities. We will require additional financing in order to continue to develop our product and execute on our business plan. However, there can be no assurances that we will be successful in raising the additional capital necessary to continue operations and execute on our business plan.



11





Commitments

We do not have any long-term commitments at September 30, 2018.

Off-Balance Sheet Arrangements

At September 30, 2018, we did not have any transactions, obligations or relationships that could be considered off-balance sheet arrangements.


Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4.

Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Based on an evaluation under the supervision and with the participation of our management, our principal executive officer and principal financial officer have concluded that our disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act were not effective as of September 30, 2018 to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is (i) recorded, processed, summarized and reported within the time periods specified in the SEC rules and forms and (ii) accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. Based on this evaluation, our management concluded that, as of September 30, 2018, our internal control over financial reporting was not effective due to (i) insufficient segregation of duties in the finance and accounting functions due to limited personnel; and (ii) inadequate corporate governance policies. In the future, subject to working capital limitations, we intend to take appropriate and reasonable steps to make improvements to remediate these deficiencies.

Changes in Internal Control Over Financial Reporting

There have not been any changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) under the Exchange Act) during the fiscal period to which this report relates that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.




12





PART II.

OTHER INFORMATION

Item 1.

Legal Proceedings

We are not the subject of any pending legal proceedings; and to the knowledge of management, no proceedings are presently contemplated against us by any federal, state or local governmental agency. Further, to the knowledge of management, no director or executive officer is party to any action in which any has an interest adverse to us.

Item 1A.

Risk Factors

There have not been any material changes from the risk factors previously disclosed under Item 2.01 – RISK FACTORS which are included in our Current Report on Form 8-K which was filed with the Securities and Exchange Commission on June 29, 2018.

Item 2.

Unregistered Sales of Equity Securities

None.

Item 3.

Defaults Upon Senior Securities

None.

Item 4.

Mine Safety Disclosures

Not applicable.

Item 5.

Other Information

None.



13





Item 6.

Exhibits


Exhibit No.

 

Description

31.1

 

Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2

 

Certification of the Principal Financial and Accounting Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1

 

Certification of the Chief Executive Officer Pursuant to 18 U.S.C. 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

32.2

 

Certification of the Chief Financial Officer Pursuant to 18 U.S.C. 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 Document.

101.CAL

 

XBRL Taxomony Extension Calculation Linkbase Document.

101.LAB

 

XBRL Taxonomy Extension Label Linkbase Document.

101.PRE

 

XBRL Taxonomy Extension Presentation Linkbase Document.

101.DEF

 

XBRL Taxonomy Extension Definition Linkbase Document.








14





SIGNATURES

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


 

RocketFuel Blockchain, Inc.

 

By:

/s/ Gert Funk

 

 

Gert Funk

President

(Principal Executive Officer)

 

 

 

 

 

 

By:

/s/ Bennett J. Yankowitz

 

 

Bennett J. Yankowitz

Chief Financial Officer

(Principal Financial and Accounting Officer)

 

 

 

Dated:  November 16, 2018

 

 





15


EX-31.1 2 rkfl10q_ex31z1.htm EX 31.1 U



Exhibit 31.1

CERTIFICATION


I, Gert Funk, hereby certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q of B4MC Gold Mines, Inc. (the “Company”);

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

4.

The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.

Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.

Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and

5.

The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):

a.

All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.


Date: November 16, 2018

 

 

 

/s/ Gert Funk

 

Gert Funk

 

Chief Executive Officer

 

(Principal Executive Officer)

 






















EX-31.2 3 rkfl10q_ex31z2.htm EX 31.2 U



Exhibit 31.2

CERTIFICATION


I, Bennett J. Yankowitz, hereby certify that:

1.

I have reviewed this Quarterly Report on Form 10-Q of B4MC Gold Mines, Inc. (the “Company”);

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;

4.

The Company’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:

a.

Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the Company is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.

Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.

Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the Company’s fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting; and

5.

The Company’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):

a.

All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and

b.

Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s internal control over financial reporting.


Date: November 16, 2018

 

 

 

/s/ Bennett J. Yankowitz

 

Bennett J. Yankowitz

 

Chief Financial Officer

 

(Principal Financial and Accounting Officer)

 






















EX-32.1 4 rkfl10q_ex32z1.htm EX 32.1 U

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of B4MC Gold Mines, Inc., a Nevada corporation (the “Company”), on Form 10-Q for the period ended September 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gert Funk, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 16, 2018

 

 

 

/s/ Gert Funk

 

Gert Funk

 

Chief Executive Officer

 


This certification accompanies each report of the Company on Form 10-Q and Form 10-K pursuant to §906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by §906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.




EX-32.2 5 rkfl10q_ex32z2.htm EX 32.2 U

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the Quarterly Report of B4MC Gold Mines, Inc., a Nevada corporation (the “Company”), on Form 10-Q for the period ended September 30, 2018, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Bennett J. Yankowitz, Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge:

(1)

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)

The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: November 16, 2018

 

 

 

/s/ Bennett J. Yankowitz

 

Bennett J. Yankowitz

 

Chief Financial Officer

 


This certification accompanies each report of the Company on Form 10-Q and Form 10-K pursuant to §906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of §18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by §906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.




EX-101.CAL 6 rkfl-20180930_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE DOCUMENT EX-101.DEF 7 rkfl-20180930_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT EX-101.INS 8 rkfl-20180930.xml XBRL INSTANCE DOCUMENT 3154208 20746000 300000 20746000 300000 20746000 300000 22706000 3500000 305000 22706000 3805000 22706000 3805000 22668000 1000 3387507000 250299000 -3412135000 -253805000 -1960000 -3505000 20746000 300000 3243125 3284325 3243125 3284325 -3243125 -3284325 -35250 -35250 -35250 -35250 -3207875 -3249075 -3207875 -0.14 -0.27 -0.14 -0.27 22668416000 11855321000 22668416000 11855321000 -3249075 3154208 19206 -75661 -305 96412 96107 20446 300 20746 10-Q 2018-09-30 false RocketFuel Blockchain, Inc. 0000823546 rkfl --12-31 22668416 21605038 Non-accelerated Filer Yes 2018 Q3 <!--egx--><p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;margin-left:.25in;text-align:justify;text-indent:-.25in'><b><font style='font-weight:bold'>1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></b><b><font style='font-weight:bold'>Business</font></b></p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'><i><font style='font-style:italic'>Business</font></i></p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>RocketFuel Blockchain Company, a Nevada corporation (&#147;RocketFuel&#148; or the &#147;Company&#148;) was formed on January 12, 2018 for the purpose of bringing highly efficient check-out systems to eCommerce. These new check-out means based upon blockchain technology are designed to increase speed, security, and ease of use. Using RocketFuel&#146;s technology, merchants can enable new impulse buying schemes that may be unavailable in present day eCommerce sites.</p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>On June 27, 2018, we consummated a transaction as contemplated by that certain Contribution Agreement made and entered into as of June 27, 2018 by and among B4MC Gold Mines, Inc. (&#147;B4MC&#148;), a Nevada corporation, and us. Pursuant to the Contribution Agreement, B4MC issued 17,001,312 shares of its $0.001 par value common stock to us in exchange for a 100% ownership interest in us resulting in 22,668,416 post-merger shares of B4MC common stock issued and outstanding. On September 25, 2018, B4MC changed its name to RocketFuel Blockchain, Inc.</p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>On June 29, 2018, we filed a Current Report on Form 8-K with the Securities and Exchange Commission which fully describes the transaction set forth herein.</p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>Our corporate headquarters are located in Las Vegas, Nevada.</p> <!--egx--><p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;margin-left:.25in;text-align:justify;text-indent:-.25in'><b><font style='font-weight:bold'>2.</font></b><b><font style='font-weight:bold'>Interim Financial Statements and Basis of Presentation</font></b></p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (&#147;U.S. GAAP&#148;) for interim financial information pursuant to Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments (consisting only of normal recurring adjustments), which we consider necessary, for a fair presentation of those financial statements. The results of operations and cash flows for the three and six months ended September 30, 2018 may not necessarily be indicative of results that may be expected for any succeeding quarter or for the entire fiscal year. These condensed financial statements should be read in conjunction with our audited financial statements as of March 31, 2018 and for the period from January 12, 2018 (date of inception) through March 31, 2018, which are included in Exhibit 99.1 of our Current Report on Form 8-K as filed with the Securities and Exchange Commission (the &#147;SEC&#148;) on June 29, 2018.</p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments, which are evaluated on an ongoing basis, and that affect the amounts reported in our unaudited condensed financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments.</p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>Our significant accounting policies are described in Note 3 to the audited financial statements as of March 31, 2018 and for the period from January 12, 2018 (date of inception) through March 31, 2018, which are included in Exhibit 99.1 of the Current Report of B4MC Gold Mines, Inc., our predecessor company, on Form 8-K as filed with the SEC on June 29, 2018.</p> <!--egx--><p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;margin-left:.25in;text-align:justify;text-indent:-.25in'><b><font style='font-weight:bold'>3.</font></b><b><font style='font-weight:bold'>Going Concern</font></b></p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>Our financial statements have been presented on the basis that we are a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. We incorporated our business on January 12, 2018. During the six months ended September 30, 2018, we have reported a net loss of $3,249,075 and negative cash flows of $75,661 from operating activities. As of September 30, 2018, we reported negative working capital of $1,960. As a result, management believes that there is substantial doubt about our ability to continue as a going concern.</p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>Prior to June 27, 2018, management was engaged in efforts to identify and negotiate a transaction with a public company quoted on the OTC Markets having shell status where a contemplated transaction would be treated as a reverse merger. On June 27, 2018, we consummated a transaction as contemplated by that certain Contribution Agreement made and entered into as of June 27, 2018 by and among B4MC and us. Pursuant to the Contribution Agreement, B4MC issued 17,001,312 shares of its $0.001 par value common stock to us in exchange for a 100% ownership interest in us resulting in 22,668,416 post-merger shares of B4MC common stock issued and outstanding. We financed our efforts to consummate this reverse merger transaction through the issuance of equity securities. We will require additional financing in order to continue to develop our product and execute on our business plan. However, there can be no assurances that we will be successful in raising the additional capital necessary to continue operations and execute on our business plan.</p> <!--egx--><p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;margin-left:.25in;text-align:justify;text-indent:-.25in'><b><font style='font-weight:bold'>4.</font></b><b><font style='font-weight:bold'>New Accounting Pronouncements</font></b></p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on our accounting and reporting. We believe that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on our accounting or reporting or that such impact will not be material to our financial position, results of operations and cash flows when implemented.</p> <!--egx--><p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;margin-left:.25in;text-align:justify;text-indent:-.25in'><b><font style='font-weight:bold'>5.</font></b><b><font style='font-weight:bold'>Related Party Transactions</font></b></p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>As of September 30, 2018 and March 31, 2018, we reported $0 and $305, respectively, as an advance payable to related party.</p> <!--egx--><p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;margin-left:.25in;text-align:justify;text-indent:-.25in'><b><font style='font-weight:bold'>6.</font></b><b><font style='font-weight:bold'>Income Taxes</font></b></p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>We are required to file federal and state income tax returns in the United States. The preparation of these tax returns requires us to interpret the applicable tax laws and regulations in effect in such jurisdictions, which could affect the amount of tax paid by us. In consultation with our tax advisors, we base our tax returns on interpretations that are believed to be reasonable under the circumstances. The tax returns, however, are subject to routine reviews by the various federal and state taxing authorities in the jurisdictions in which we file tax returns. As part of these reviews, a taxing authority may disagree with respect to the income tax positions taken by us (&#147;uncertain tax positions&#148;) and, therefore, may require us to pay additional taxes. As required under applicable accounting rules, we accrue an amount for our estimate of additional income tax liability, including interest and penalties, which we could incur as a result of the ultimate or effective resolution of the uncertain tax positions. We account for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry-forwards 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. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized.</p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.</p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>Income tax credit for the three and six months ended September 30, 2018 was $0 and $0, respectively. The effective tax rates for the six months ended September 30, 2018 was 21.0%. We have estimated our provision for income taxes in accordance with the Tax Act and guidance available as of the date of this filing but have kept the full valuation allowance.</p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>The 2018 tax rate reflects the enactment of the Tax Cuts and Jobs Act of 2017 (the &#147;Act&#148;) which made significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017.</p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the &#147;Tax Act&#148;) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of foreign earnings.</p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>On December 22, 2017, Staff Accounting Bulletin No. 118 (&quot;SAB 118&quot;) was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The deferred tax expense recorded in connection with the remeasurement of deferred tax assets is a provisional amount and a reasonable estimate at December 31, 2017 based upon the best information currently available. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Act. Any subsequent adjustment to these amounts will be recorded to current tax expense in the quarter of 2018 when the analysis is complete. The accounting is expected to be complete when the 2017 U.S. corporate income tax return is filed in 2018.</p> <!--egx--><p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;margin-left:.25in;text-align:justify;text-indent:-.25in'><b><font style='font-weight:bold'>7.</font></b><b><font style='font-weight:bold'>Stockholders&#146; Deficit</font></b></p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>Prior to August 8, 2018, we had 750,000,000 shares of our $0.001 par value common stock authorized. On August 8, 2018, our Board of Directors voted to amend our articles of incorporation whereby the authorized shares of our common stock were reduced to 250,000,000. Additionally, the Board authorized 50,000,000 shares of $0.001 par value preferred stock. On September 25, 2018, we filed a certificate of amendment to our articles of incorporation to effect such changes. On June 27, 2018, we consummated a transaction as contemplated by that certain Contribution Agreement made and entered into as of June 27, 2018 by and among B4MC and us. Pursuant to the Contribution Agreement, B4MC issued 17,001,312 shares of its $0.001 par value common stock to us in exchange for a 100% ownership interest in us resulting in 22,668,416 post-merger shares of B4MC common stock issued and outstanding. As of September 30, 2018 and March 31, 218, we had 22,668,416 shares and 1,000 shares of our common stock issued and outstanding.</p> <!--egx--><p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;margin-left:.25in;text-align:justify;text-indent:-.25in'><b><font style='font-weight:bold'>8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></b><b><font style='font-weight:bold'>Stock-Based Compensation</font></b></p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>On August 8, 2018, the Board and stockholders holding a majority of our voting power approved the &#147;RocketFuel Blockchain, Inc., 2018 Equity Incentive Plan,&#148; which plan enables us to make awards that qualify as performance-based compensation. We have reserved 2,000,000 shares of our common stock for issuance in connection with awards under the plan.</p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>On August 8, 2018, our Board of Directors approved the grant of options to purchase 500,000 shares of our common stock to Mr. Bennett J. Yankowitz, our chief financial officer and a director, pursuant to an exemption under Section 4(a)(2) of the Securities Act of 1933, as amended. Pursuant to the terms of the option agreement, these options are exercisable immediately on the date of grant at an exercise price of $3.00 per share and are exercisable for a term of 10 years from the date of grant. In determining the fair value of the stock option, we will utilize the Black-Scholes pricing model utilizing the following assumptions: i) stock option exercise price of $3.00; ii) fair market value of our common stock of $8.50, which was based on available valuation factors made available to us during the period from the date of grant through the end of our fiscal quarter ending September 30, 2018; iii) expected term of option of 7 years; iv) expected volatility of our common stock of approximately 40%; v) expected dividend rate of 0.0%; and vi) risk-free interest rate of approximately 2.80%. As a result, we recorded stock-based compensation of $3,154,208 during each of the three and six months ended September 30, 2018.</p> <!--egx--><p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;margin-left:.25in;text-align:justify;text-indent:-.25in'><b><font style='font-weight:bold'>9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </font></b><b><font style='font-weight:bold'>Legal Proceedings</font></b></p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'>We are not the subject of any pending legal proceedings; and to the knowledge of management, no proceedings are presently contemplated against us by any federal, state or local governmental agency. Further, to the knowledge of management, no director or executive officer is party to any action in which any has an interest adverse to us.</p> <!--egx--><p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;margin-left:.25in;text-align:justify;text-indent:-.25in'><b><font style='font-weight:bold'>10.&nbsp;&nbsp; </font></b><b><font style='font-weight:bold'>Subsequent Events</font></b></p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;text-align:justify'><font style='background:white'>We evaluated all events or transactions that occurred after the balance sheet date through the date when we issued these financial statements and, other than as described below, we did not have any material recognizable subsequent events during this period.</font></p> <p style='margin-top:6.0pt;margin-right:0in;margin-bottom:6.0pt;margin-left:0in;text-indent:.25in;margin:0in;margin-bottom:.0001pt;text-indent:0in'><font style='background:white'>On October 1, 2018, we entered into a corporate advisory agreement with a consultant (the &#147;Consultant&#148;), who is a non-related party, to provide business advisory services, including research distribution services. As compensation for these services, the Consultant received 12,500 shares of our common stock having a value of $120,312 based on a fair market value of $9.625 per share as quoted on the OTC Markets on the date of issuance.</font></p> 0000823546 2018-09-30 0000823546 2017-06-30 0000823546 2018-01-01 2018-09-30 0000823546 2018-07-01 2018-09-30 0000823546 2018-03-31 0000823546 2018-04-01 2018-09-30 iso4217:USD xbrli:shares iso4217:USD shares $0.001 par value, 250,000,0000 shares authorized; 22,668,416 shares issued and outstanding as of 9/30/2018. $0.001 par value, 750,000,0000 shares authorized; 1,000 shares issued and outstanding as of 3/31/2018. EX-101.LAB 9 rkfl-20180930_lab.xml XBRL TAXONOMY EXTENSION LABELS LINKBASE DOCUMENT Business Description Shares used in computing net income (loss) per common share, diluted Total assets Total assets Legal Proceedings Stock-based Compensation Stockholders' Deficit Total current assets Total current assets Income Taxes Net income (loss) Net income (loss) Current liabilities Entity Well-known Seasoned Issuer Summary of Significant Accounting Policies Interim Financial Statements and Basis of Presentation Other (income) expense: General and administrative Total stockholders' equity Total stockholders' equity Accounts payable and accrued expenses Amendment Flag Notes Net cash flows provided by (used in) operating activities Net cash flows provided by (used in) operating activities Cash flows from operating activities Additional paid-in capital Total current liabilities Total current liabilities Document Fiscal Period Focus Document Type Income (loss) before provision for taxes Accumulated deficit Entity Central Index Key Document Period End Date Repayment of related party advances Income (loss) from operations Income (loss) from operations Expenses Document and Entity Information: Cash at beginning of period Cash at beginning of period Cash at end of period Net cash flows provided by (used in) financing activities Cash Current assets Entity Voluntary Filers Going Concern Net change in cash Shares used in computing net income (loss) per common share, basic Total expenses Effect of reverse merger transaction on additional paid-in capital Net income (loss) per common share, diluted Net income (loss) per common share, basic Total other (income) expense Total liabilities Total liabilities Increase (decrease) in accounts payable and accrued expenses Changes in assets and liabilities: Stockholders' equity Entity Registrant Name Related Party Transactions LIABILITIES AND STOCKHOLDERS' DEFICIT Entity Common Stock, Shares Outstanding Trading Symbol Forgiveness of debt Income Statement Total liabilities and stockholders' equity Total liabilities and stockholders' equity Advances payable to related parties Cash flows from financing activities Common stock Statement of Financial Position Document Fiscal Year Focus Current Fiscal Year End Date Entity Current Reporting Status Stock-based compensation Adjustments to reconcile net income (loss) to net cash flows used in operating activities: ASSETS Entity Public Float Subsequent Events Provision for income taxes Entity Filer Category EX-101.PRE 10 rkfl-20180930_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT EX-101.SCH 11 rkfl-20180930.xsd XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 000110 - Disclosure - Stockholders' Deficit link:presentationLink link:definitionLink link:calculationLink 000040 - Statement - Condensed Statements of Cash Flows link:presentationLink link:definitionLink link:calculationLink 000060 - Disclosure - Interim Financial Statements and Basis of Presentation link:presentationLink link:definitionLink link:calculationLink 000130 - Disclosure - Legal Proceedings link:presentationLink link:definitionLink link:calculationLink 000080 - Disclosure - Summary of Significant Accounting Policies link:presentationLink link:definitionLink link:calculationLink 000050 - Disclosure - Business Description link:presentationLink link:definitionLink link:calculationLink 000120 - Disclosure - Stock-based Compensation link:presentationLink link:definitionLink link:calculationLink 000070 - Disclosure - Going Concern link:presentationLink link:definitionLink link:calculationLink 000010 - Document - Document and Entity Information link:presentationLink link:definitionLink link:calculationLink 000090 - Disclosure - Related Party Transactions link:presentationLink link:definitionLink link:calculationLink 000020 - Statement - Condensed Balance Sheets link:presentationLink link:definitionLink link:calculationLink 000030 - Statement - Condensed Statements of Operations link:presentationLink link:definitionLink link:calculationLink 000140 - Disclosure - Subsequent Events link:presentationLink link:definitionLink link:calculationLink 000100 - Disclosure - Income Taxes link:presentationLink link:definitionLink link:calculationLink XML 12 R1.htm IDEA: XBRL DOCUMENT v3.10.0.1
Document and Entity Information - USD ($)
9 Months Ended
Sep. 30, 2018
Jun. 30, 2017
Document and Entity Information:    
Entity Registrant Name RocketFuel Blockchain, Inc.  
Document Type 10-Q  
Document Period End Date Sep. 30, 2018  
Trading Symbol rkfl  
Amendment Flag false  
Entity Central Index Key 0000823546  
Current Fiscal Year End Date --12-31  
Entity Common Stock, Shares Outstanding 22,668,416  
Entity Public Float   $ 21,605,038
Entity Filer Category Non-accelerated Filer  
Entity Current Reporting Status Yes  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q3  
XML 13 R2.htm IDEA: XBRL DOCUMENT v3.10.0.1
Condensed Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2018
Mar. 31, 2018
Current assets    
Cash $ 20,746 $ 300
Total current assets 20,746 300
Total assets 20,746 300
Current liabilities    
Accounts payable and accrued expenses 22,706 3,500
Advances payable to related parties   305
Total current liabilities 22,706 3,805
Total liabilities 22,706 3,805
Stockholders' equity    
Common stock 22,668 [1] 1 [2]
Additional paid-in capital 3,387,507 250,299
Accumulated deficit (3,412,135) (253,805)
Total stockholders' equity (1,960) (3,505)
Total liabilities and stockholders' equity $ 20,746 $ 300
[1] $0.001 par value, 250,000,0000 shares authorized; 22,668,416 shares issued and outstanding as of 9/30/2018.
[2] $0.001 par value, 750,000,0000 shares authorized; 1,000 shares issued and outstanding as of 3/31/2018.
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Condensed Statements of Operations - USD ($)
shares in Thousands
3 Months Ended 6 Months Ended
Sep. 30, 2018
Sep. 30, 2018
Expenses    
General and administrative $ 3,243,125 $ 3,284,325
Total expenses 3,243,125 3,284,325
Income (loss) from operations (3,243,125) (3,284,325)
Other (income) expense:    
Forgiveness of debt (35,250) (35,250)
Total other (income) expense (35,250) (35,250)
Income (loss) before provision for taxes (3,207,875) (3,249,075)
Net income (loss) $ (3,207,875) $ (3,249,075)
Net income (loss) per common share, basic $ (0.14) $ (0.27)
Net income (loss) per common share, diluted $ (0.14) $ (0.27)
Shares used in computing net income (loss) per common share, basic 22,668,416 11,855,321
Shares used in computing net income (loss) per common share, diluted 22,668,416 11,855,321
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Condensed Statements of Cash Flows - USD ($)
3 Months Ended 6 Months Ended
Sep. 30, 2018
Sep. 30, 2018
Cash flows from operating activities    
Net income (loss) $ (3,207,875) $ (3,249,075)
Adjustments to reconcile net income (loss) to net cash flows used in operating activities:    
Stock-based compensation 3,154,208 3,154,208
Changes in assets and liabilities:    
Increase (decrease) in accounts payable and accrued expenses   19,206
Net cash flows provided by (used in) operating activities   (75,661)
Cash flows from financing activities    
Repayment of related party advances   (305)
Effect of reverse merger transaction on additional paid-in capital   96,412
Net cash flows provided by (used in) financing activities   96,107
Net change in cash   20,446
Cash at beginning of period   300
Cash at end of period $ 20,746 $ 20,746
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Business Description
9 Months Ended
Sep. 30, 2018
Notes  
Business Description

1.      Business

Business

RocketFuel Blockchain Company, a Nevada corporation (“RocketFuel” or the “Company”) was formed on January 12, 2018 for the purpose of bringing highly efficient check-out systems to eCommerce. These new check-out means based upon blockchain technology are designed to increase speed, security, and ease of use. Using RocketFuel’s technology, merchants can enable new impulse buying schemes that may be unavailable in present day eCommerce sites.

On June 27, 2018, we consummated a transaction as contemplated by that certain Contribution Agreement made and entered into as of June 27, 2018 by and among B4MC Gold Mines, Inc. (“B4MC”), a Nevada corporation, and us. Pursuant to the Contribution Agreement, B4MC issued 17,001,312 shares of its $0.001 par value common stock to us in exchange for a 100% ownership interest in us resulting in 22,668,416 post-merger shares of B4MC common stock issued and outstanding. On September 25, 2018, B4MC changed its name to RocketFuel Blockchain, Inc.

On June 29, 2018, we filed a Current Report on Form 8-K with the Securities and Exchange Commission which fully describes the transaction set forth herein.

Our corporate headquarters are located in Las Vegas, Nevada.

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Interim Financial Statements and Basis of Presentation
9 Months Ended
Sep. 30, 2018
Notes  
Interim Financial Statements and Basis of Presentation

2.Interim Financial Statements and Basis of Presentation

The accompanying unaudited condensed financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information pursuant to Rule 8-03 of Regulation S-X. Accordingly, these unaudited condensed financial statements do not include all of the information and disclosures required by U.S. GAAP for complete financial statements. In the opinion of management, the accompanying unaudited condensed financial statements include all adjustments (consisting only of normal recurring adjustments), which we consider necessary, for a fair presentation of those financial statements. The results of operations and cash flows for the three and six months ended September 30, 2018 may not necessarily be indicative of results that may be expected for any succeeding quarter or for the entire fiscal year. These condensed financial statements should be read in conjunction with our audited financial statements as of March 31, 2018 and for the period from January 12, 2018 (date of inception) through March 31, 2018, which are included in Exhibit 99.1 of our Current Report on Form 8-K as filed with the Securities and Exchange Commission (the “SEC”) on June 29, 2018.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and judgments, which are evaluated on an ongoing basis, and that affect the amounts reported in our unaudited condensed financial statements and accompanying notes. Management bases its estimates on historical experience and on various other assumptions that it believes are reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities and the amounts of revenues and expenses that are not readily apparent from other sources. Actual results could differ from those estimates and judgments.

Our significant accounting policies are described in Note 3 to the audited financial statements as of March 31, 2018 and for the period from January 12, 2018 (date of inception) through March 31, 2018, which are included in Exhibit 99.1 of the Current Report of B4MC Gold Mines, Inc., our predecessor company, on Form 8-K as filed with the SEC on June 29, 2018.

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Going Concern
9 Months Ended
Sep. 30, 2018
Notes  
Going Concern

3.Going Concern

Our financial statements have been presented on the basis that we are a going concern, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. We incorporated our business on January 12, 2018. During the six months ended September 30, 2018, we have reported a net loss of $3,249,075 and negative cash flows of $75,661 from operating activities. As of September 30, 2018, we reported negative working capital of $1,960. As a result, management believes that there is substantial doubt about our ability to continue as a going concern.

Prior to June 27, 2018, management was engaged in efforts to identify and negotiate a transaction with a public company quoted on the OTC Markets having shell status where a contemplated transaction would be treated as a reverse merger. On June 27, 2018, we consummated a transaction as contemplated by that certain Contribution Agreement made and entered into as of June 27, 2018 by and among B4MC and us. Pursuant to the Contribution Agreement, B4MC issued 17,001,312 shares of its $0.001 par value common stock to us in exchange for a 100% ownership interest in us resulting in 22,668,416 post-merger shares of B4MC common stock issued and outstanding. We financed our efforts to consummate this reverse merger transaction through the issuance of equity securities. We will require additional financing in order to continue to develop our product and execute on our business plan. However, there can be no assurances that we will be successful in raising the additional capital necessary to continue operations and execute on our business plan.

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Summary of Significant Accounting Policies
9 Months Ended
Sep. 30, 2018
Notes  
Summary of Significant Accounting Policies

4.New Accounting Pronouncements

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board or other standard setting bodies that may have an impact on our accounting and reporting. We believe that such recently issued accounting pronouncements and other authoritative guidance for which the effective date is in the future either will not have an impact on our accounting or reporting or that such impact will not be material to our financial position, results of operations and cash flows when implemented.

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Related Party Transactions
9 Months Ended
Sep. 30, 2018
Notes  
Related Party Transactions

5.Related Party Transactions

As of September 30, 2018 and March 31, 2018, we reported $0 and $305, respectively, as an advance payable to related party.

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Income Taxes
9 Months Ended
Sep. 30, 2018
Notes  
Income Taxes

6.Income Taxes

We are required to file federal and state income tax returns in the United States. The preparation of these tax returns requires us to interpret the applicable tax laws and regulations in effect in such jurisdictions, which could affect the amount of tax paid by us. In consultation with our tax advisors, we base our tax returns on interpretations that are believed to be reasonable under the circumstances. The tax returns, however, are subject to routine reviews by the various federal and state taxing authorities in the jurisdictions in which we file tax returns. As part of these reviews, a taxing authority may disagree with respect to the income tax positions taken by us (“uncertain tax positions”) and, therefore, may require us to pay additional taxes. As required under applicable accounting rules, we accrue an amount for our estimate of additional income tax liability, including interest and penalties, which we could incur as a result of the ultimate or effective resolution of the uncertain tax positions. We account for income taxes using the asset and liability method. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributed to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences and carry-forwards 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. A valuation allowance is established when necessary to reduce deferred tax assets to amounts expected to be realized.

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.

Income tax credit for the three and six months ended September 30, 2018 was $0 and $0, respectively. The effective tax rates for the six months ended September 30, 2018 was 21.0%. We have estimated our provision for income taxes in accordance with the Tax Act and guidance available as of the date of this filing but have kept the full valuation allowance.

The 2018 tax rate reflects the enactment of the Tax Cuts and Jobs Act of 2017 (the “Act”) which made significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21% effective for tax years beginning after December 31, 2017.

On December 22, 2017, the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a federal corporate tax rate decrease from 35% to 21% for tax years beginning after December 31, 2017, the transition of U.S international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of foreign earnings.

On December 22, 2017, Staff Accounting Bulletin No. 118 ("SAB 118") was issued to address the application of US GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Act. The deferred tax expense recorded in connection with the remeasurement of deferred tax assets is a provisional amount and a reasonable estimate at December 31, 2017 based upon the best information currently available. The ultimate impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Act. Any subsequent adjustment to these amounts will be recorded to current tax expense in the quarter of 2018 when the analysis is complete. The accounting is expected to be complete when the 2017 U.S. corporate income tax return is filed in 2018.

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Stockholders' Deficit
9 Months Ended
Sep. 30, 2018
Notes  
Stockholders' Deficit

7.Stockholders’ Deficit

Prior to August 8, 2018, we had 750,000,000 shares of our $0.001 par value common stock authorized. On August 8, 2018, our Board of Directors voted to amend our articles of incorporation whereby the authorized shares of our common stock were reduced to 250,000,000. Additionally, the Board authorized 50,000,000 shares of $0.001 par value preferred stock. On September 25, 2018, we filed a certificate of amendment to our articles of incorporation to effect such changes. On June 27, 2018, we consummated a transaction as contemplated by that certain Contribution Agreement made and entered into as of June 27, 2018 by and among B4MC and us. Pursuant to the Contribution Agreement, B4MC issued 17,001,312 shares of its $0.001 par value common stock to us in exchange for a 100% ownership interest in us resulting in 22,668,416 post-merger shares of B4MC common stock issued and outstanding. As of September 30, 2018 and March 31, 218, we had 22,668,416 shares and 1,000 shares of our common stock issued and outstanding.

XML 23 R12.htm IDEA: XBRL DOCUMENT v3.10.0.1
Stock-based Compensation
9 Months Ended
Sep. 30, 2018
Notes  
Stock-based Compensation

8.      Stock-Based Compensation

On August 8, 2018, the Board and stockholders holding a majority of our voting power approved the “RocketFuel Blockchain, Inc., 2018 Equity Incentive Plan,” which plan enables us to make awards that qualify as performance-based compensation. We have reserved 2,000,000 shares of our common stock for issuance in connection with awards under the plan.

On August 8, 2018, our Board of Directors approved the grant of options to purchase 500,000 shares of our common stock to Mr. Bennett J. Yankowitz, our chief financial officer and a director, pursuant to an exemption under Section 4(a)(2) of the Securities Act of 1933, as amended. Pursuant to the terms of the option agreement, these options are exercisable immediately on the date of grant at an exercise price of $3.00 per share and are exercisable for a term of 10 years from the date of grant. In determining the fair value of the stock option, we will utilize the Black-Scholes pricing model utilizing the following assumptions: i) stock option exercise price of $3.00; ii) fair market value of our common stock of $8.50, which was based on available valuation factors made available to us during the period from the date of grant through the end of our fiscal quarter ending September 30, 2018; iii) expected term of option of 7 years; iv) expected volatility of our common stock of approximately 40%; v) expected dividend rate of 0.0%; and vi) risk-free interest rate of approximately 2.80%. As a result, we recorded stock-based compensation of $3,154,208 during each of the three and six months ended September 30, 2018.

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Legal Proceedings
9 Months Ended
Sep. 30, 2018
Notes  
Legal Proceedings

9.      Legal Proceedings

We are not the subject of any pending legal proceedings; and to the knowledge of management, no proceedings are presently contemplated against us by any federal, state or local governmental agency. Further, to the knowledge of management, no director or executive officer is party to any action in which any has an interest adverse to us.

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Subsequent Events
9 Months Ended
Sep. 30, 2018
Notes  
Subsequent Events

10.   Subsequent Events

We evaluated all events or transactions that occurred after the balance sheet date through the date when we issued these financial statements and, other than as described below, we did not have any material recognizable subsequent events during this period.

On October 1, 2018, we entered into a corporate advisory agreement with a consultant (the “Consultant”), who is a non-related party, to provide business advisory services, including research distribution services. As compensation for these services, the Consultant received 12,500 shares of our common stock having a value of $120,312 based on a fair market value of $9.625 per share as quoted on the OTC Markets on the date of issuance.

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