SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
(Amendment No. 1)
Current Report
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 21, 2014
HIGH PERFORMANCE BEVERAGES COMPANY
(Exact name of registrant as specified in its charter)
|
Nevada
|
|
000-54973
|
|
27-3566307
|
|
(State of Incorporation)
|
|
(Commission File Number)
|
|
(IRS Employer Identification No.)
|
5137 E. Armor St., Cave Creek, AZ 85331
(Address of principal executive offices) (Zip code)
(602) 326-8290
(Registrant's telephone number, including area code)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
EXPLANATORY NOTE:
High Performance Beverages Company, a Nevada corporation, (the “Company”) is furnishing this Current Report on Form 8-K/A in order to amend the previously filed Current Report on Form 8-K dated March 24, 2014. This Form 8-K/A, Amendment No. 1 is being furnished to revise the disclosure under Item 4.02 “Non-Reliance on Previously Issued Financial Statements of an Audit Related Report or Completed Interim Review” to provide additional information as required by Item 4.02 of Form 8-K.
Item 4.02 Non-Reliance on Previously Issued Financial Statements or a Related Audit Report or Completed Interim Review.
On March 21, 2014, in the process of preparing its quarterly report on Form 10-Q for the quarter ended January 31, 2014, the Company’s management became aware that the Company’s financial statements in the annual report for the year ended July 31, 2012 erroneously did not give effect to shareholder advances for the payment of accounting fees and improperly treated shares issued for services as a liability as opposed to equity. In addition, the Company determined that during the fiscal year ended July 31, 2013, it had (1) erroneously excluded from the derivative liability valuation a contract entered into late in the fiscal year that allowed for the settlement of the Company’s financial obligations under the contract in the Company’s common stock, based upon the price of the Company’s stock at the time of settlement; and, (2) excluded the value of common stock to be issued for services performed from the financial statements resulting in an understatement of compensation expense. Accordingly, the Company’s management determined that the financial statements included in the annual reports for the years ended July 31, 2012 and 2013 cannot be relied on and instructed the Company’s Chief Financial Officer to restate such financial statements and file amendments to such financial statements as soon as practicable.
The Company’s Board of Directors, as well as its management have discussed the matters in this Current Report on Form 8-K with L.L. Bradford & Company, LLC, the Company’s independent public registered accounting firm.
The following tables summarize the effect of corrections on the consolidated financial statements as of the three months ended October 31, 2013:
|
Previously
Reported
|
Adjustments
|
Current
Restatement
|
||||||||||
|
Assets
|
||||||||||||
|
Current assets
|
|
|
||||||||||
|
Cash
|
$ | 23,960 | $ | - | $ | 23,960 | ||||||
|
Accounts receivable, net
|
- | - | - | |||||||||
|
Inventory
|
33,766 | - | 33,766 | |||||||||
|
Deferred loan costs
|
26,747 | - | 26,747 | |||||||||
|
Total current assets
|
84,473 | - | 84,473 | |||||||||
|
Total assets
|
$ | 84,473 | $ | - | $ | 84,473 | ||||||
|
Liabilities
|
||||||||||||
|
Accrued expenses
|
$ | 111,467 | $ | 16,417 | $ | 127,884 | ||||||
|
Senior secured convertible note payable
|
402,800 | - | 402,800 | |||||||||
|
Derivative Liability
|
452,912 | 687,585 | 1,140,497 | |||||||||
|
Total current liabilities
|
967,179 | 704,200 | 1,671,181 | |||||||||
|
Total liabilities
|
967,179 | 704,200 | 1,671,181 | |||||||||
|
Stockholders' deficit:
|
||||||||||||
|
Common stock
|
121,408 | (5,000 | ) | 116,408 | ||||||||
|
Stock subscription payable
|
315,600 | (61,361 | ) | 254,239 | ||||||||
|
Additional paid in capital
|
2,488,564 | 100,722 | 2,589,286 | |||||||||
|
Retained earnings from discontinued operations
|
6,944 | - | 6,944 | |||||||||
|
Accumulated deficit
|
(3,815,222 | ) | (738,363 | ) | (4,553,585 | ) | ||||||
|
Total stockholders' deficit
|
(882,706 | ) | (704,002 | ) | (1,586,708 | ) | ||||||
|
Total liabilities and stockholders' deficit
|
$ | 84,473 | $ | - | $ | 84,473 | ||||||
1
|
|
|
Previously
Reported
|
|
|
Adjustments
|
|
|
Current
Restatement
|
|
|||
|
Statement of Operations
|
||||||||||||
|
Revenue
|
|
$
|
373
|
|
|
$
|
-
|
|
|
$
|
373
|
|
|
Cost of goods sold
|
|
|
|
|
|
-
|
|
|
|
1,392
|
|
|
|
Gross profit
|
|
|
(1,019
|
)
|
|
|
-
|
|
|
|
(1,019
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General, administrative and other
|
|
|
77,606
|
|
|
|
4
|
|
|
|
77,610
|
|
|
Marketing
|
|
|
10,847
|
|
|
|
(1
|
)
|
|
|
10,846
|
|
|
Compensation
|
|
|
983,292
|
|
|
|
-
|
|
|
|
983,292
|
|
|
Total Operating Expenses
|
|
|
1,071,745
|
|
|
|
3
|
|
|
|
1,071,748
|
|
|
Loss from continuing operations
|
|
|
(1,072,764
|
)
|
|
|
(3
|
)
|
|
|
(1,072,767
|
)
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in derivative liability
|
|
|
210,482
|
|
|
|
687,585
|
|
|
|
898,067
|
|
|
Interest expense
|
|
|
209,268
|
|
|
|
-
|
|
|
|
209,268
|
|
|
Total Other (Income) Expense
|
|
|
419,750
|
|
|
|
687,585
|
|
|
|
1,107,335
|
|
|
Net loss
|
|
$
|
(1,492,514
|
)
|
|
$
|
(687,588
|
)
|
|
$
|
(2,180,102
|
)
|
|
Net loss per common share
|
|
$
|
(0.00
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.02
|
)
|
The following tables summarize the effect of corrections on the consolidated financial statements as of the year ended July 31, 2013:
|
Previously
Reported
|
Adjustments
|
Current
Restatement
|
||||||||||
|
Assets
|
||||||||||||
|
Current assets
|
|
|
|
|||||||||
|
Cash
|
$ | 3,920 | $ | - | $ | 3,920 | ||||||
|
Accounts receivable, net
|
- | - | - | |||||||||
|
Inventory
|
31,034 | - | 31,034 | |||||||||
|
Deferred loan costs
|
174,857 | - | 174,857 | |||||||||
|
Total current assets
|
209,811 | - | 209,811 | |||||||||
|
Total assets
|
$ | 209,811 | $ | - | $ | 209,811 | ||||||
|
Liabilities and Stockholders’ Deficit
|
||||||||||||
|
Liabilities:
|
||||||||||||
|
Accrued expenses
|
$ | 60,564 | $ | 16,415 | $ | 76,979 | ||||||
|
Convertible notes payable, net
|
270,000 | - | 270,000 | |||||||||
|
Derivative liability
|
242,430 | - | 242,430 | |||||||||
|
Total current liabilities
|
572,994 | 16,415 | 589,409 | |||||||||
|
Total liabilities
|
572,994 | 16,415 | 589,409 | |||||||||
|
Stockholders' deficit:
|
||||||||||||
|
Common stock
|
108,970 | (5,000 | ) | 103,970 | ||||||||
|
Stock subscription payable
|
282,220 | (61,381 | ) | 220,839 | ||||||||
|
Additional paid in capital
|
1,561,409 | 100,723 | 1,662,132 | |||||||||
|
Retained earnings from discontinued operations
|
6,944 | - | 6,944 | |||||||||
|
Accumulated deficit
|
(2,322,706 | ) | (50,777 | ) | (2,373,483 | ) | ||||||
|
Total stockholders' deficit
|
(363,183 | ) | (16,415 | ) | (379,598 | ) | ||||||
|
Total liabilities and stockholders' deficit
|
$ | 209,811 | $ | - | $ | 209,811 | ||||||
2
|
|
Previously
Reported
|
|
|
Adjustments
|
|
|
Current
Restatement
|
|
||||
|
Statement of Operations
|
||||||||||||
|
Revenues
|
|
$
|
55,143
|
|
|
$
|
-
|
|
|
$
|
55,143
|
|
|
Cost of goods sold
|
|
|
36,411
|
|
|
|
-
|
|
|
|
36,411
|
|
|
Gross profit
|
|
|
18,732
|
|
|
|
-
|
|
|
|
18,732
|
|
|
Operating expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
General, administrative and other
|
|
|
502,162
|
|
|
|
(220
|
)
|
|
|
501,942
|
|
|
Marketing
|
|
|
982,637
|
|
|
|
-
|
|
|
|
982,637
|
|
|
Product development
|
|
|
37,077
|
|
|
|
-
|
|
|
|
37,077
|
|
|
Compensation
|
|
|
313,007
|
|
|
|
50,997
|
|
|
|
364,004
|
|
|
Total Operating Expenses
|
|
|
1,834,886
|
|
|
|
50,777
|
|
|
|
1,885,660
|
|
|
Other expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
120,329
|
|
|
|
-
|
|
|
|
120,329
|
|
|
Change in derivative liability
|
|
|
242,430
|
|
|
|
-
|
|
|
|
242,430
|
|
|
Loss from continuing operations
|
|
|
(2,178,910
|
)
|
|
|
(50,777
|
)
|
|
|
(2,229,687
|
)
|
|
Discontinued operations, net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Net loss
|
|
$
|
(2,178,910
|
)
|
|
$
|
(50,777
|
)
|
|
$
|
(2,229,687
|
)
|
|
Net loss per common share
|
|
$
|
(0.02
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.02
|
)
|
The following tables summarize the effect of corrections on the consolidated financial statements as of the nine months ended April 30, 2013:
|
Previously
Reported
|
Adjustments
|
Current
Restatement
|
||||||||||
|
Assets
|
||||||||||||
|
Current assets
|
|
|
||||||||||
|
Cash
|
$ | 39,015 | $ | - | $ | 39,015 | ||||||
|
Prepaid expenses
|
37,042 | - | 37,042 | |||||||||
|
Inventory
|
26,587 | - | 26,587 | |||||||||
|
Deferred loan costs
|
316,977 | - | 316,977 | |||||||||
|
Total current assets
|
419,621 | - | 419,621 | |||||||||
|
Total assets
|
$ | 419,621 | $ | - | $ | 419,621 | ||||||
|
Liabilities:
|
||||||||||||
|
Accrued expenses
|
$ | 44,463 | $ | 16,415 | $ | 60,878 | ||||||
|
Senior secured convertible note payable
|
240,000 | - | 240,000 | |||||||||
|
Total current liabilities
|
288,463 | 16,415 | 300,878 | |||||||||
|
Derivative liability
|
118,133 | - | 118,133 | |||||||||
|
Total liabilities
|
402,596 | 16,415 | 419,011 | |||||||||
|
Stockholders' deficit: Common stock
|
103,970 | - | 103,970 | |||||||||
|
Stock subscription payable
|
282,220 | (61,361 | ) | 220,859 | ||||||||
|
Additional paid in capital
|
1,568,130 | 95,723 | 1,663,853 | |||||||||
|
Retained earnings from discontinued operations
|
6,944 | - | 6,944 | |||||||||
|
Accumulated deficit
|
(1,944,239 | ) | (50,777 | ) | (1,995,016 | ) | ||||||
|
Total stockholders' deficit
|
17,025 | (16,415 | ) | 610 | ||||||||
|
Total liabilities and stockholders' deficit
|
$ | 419,621 | $ | - | $ | 419,621 | ||||||
3
Statement of Operations
|
|
|
Previously
Reported
|
|
|
Adjustments
|
|
|
Current
Restatement
|
|
|||
|
Revenues
|
|
$
|
53,283
|
|
|
$
|
-
|
|
|
$
|
53,283
|
|
|
Cost of goods sold
|
|
|
35,499
|
|
|
|
-
|
|
|
|
35,499
|
|
| Gross Profit | ||||||||||||
|
Operating expenses
|
|
|
17,784
|
|
|
|
-
|
|
|
|
17,784
|
|
|
General, administrative and other
|
|
|
368,094
|
|
|
|
-
|
|
|
|
368,094
|
|
|
Marketing
|
|
|
970,379
|
|
|
|
-
|
|
|
|
970,379
|
|
|
Product development
|
|
|
37,019
|
|
|
|
-
|
|
|
|
37,019
|
|
|
Compensation
|
|
|
300,001
|
|
|
|
50,777
|
|
|
|
351,778
|
|
|
Total Operating Expenses
|
|
|
1,676,493
|
|
|
|
50,777
|
|
|
|
1,727,270
|
|
|
Other income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense and finance costs
|
|
|
(23,601
|
)
|
|
|
-
|
|
|
|
(23,601
|
)
|
|
Change in derivative liability
|
|
|
(118,133
|
)
|
|
|
-
|
|
|
|
(118,133
|
)
|
|
Loss from continuing operations
|
|
|
(1,785,231
|
)
|
|
|
(50,777
|
)
|
|
|
1,851,220
|
)
|
|
Discontinued operations, net
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Net loss
|
|
$
|
(1,785,231
|
)
|
|
$
|
(50,777
|
)
|
|
$
|
(1,851,220
|
)
|
|
Net loss per common share
|
|
$
|
(0.00
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.02
|
)
|
The following tables summarize the effect of corrections on the consolidated financial statements as of the six months ended January 31, 2013:
|
Previously
Reported
|
Adjustments
|
Current
Restatement
|
||||||||||
|
Assets
|
||||||||||||
|
Current assets
|
|
|
||||||||||
|
Cash
|
$ | 2,529 | $ | - | $ | 2,529 | ||||||
|
Prepaid expenses
|
10,861 | - | 10,861 | |||||||||
|
Inventory
|
53,377 | - | 53,377 | |||||||||
|
Deferred loan costs
|
452,221 | - | 452,221 | |||||||||
|
Total current assets
|
518,988 | - | 518,988 | |||||||||
|
Total assets
|
$ | 518,988 | $ | - | $ | 518,988 | ||||||
|
Liabilities:
|
||||||||||||
|
Accrued expenses
|
$ | 21,748 | $ | 32,830 | $ | 54,578 | ||||||
|
Senior secured convertible note payable
|
100,000 | - | 100,000 | |||||||||
|
Total current liabilities
|
121,748 | 32,830 | 154,578 | |||||||||
|
Total liabilities
|
121,748 | 32,830 | 154,578 | |||||||||
|
Stockholders' deficit: Common stock
|
97,560 | - | 94,150 | |||||||||
|
Stock subscription payable
|
510,000 | (61,361 | ) | 448,639 | ||||||||
|
Additional paid in capital
|
645,242 | 44,946 | 690,188 | |||||||||
|
Retained earnings from discontinued operations
|
6,944 | - | 6,944 | |||||||||
|
Accumulated deficit
|
(862,506 | ) | (16,415 | ) | (878,921 | ) | ||||||
|
Total stockholders' deficit
|
397,420 | (32,830 | ) | 364,410 | ||||||||
|
Total liabilities and stockholders' deficit
|
$ | 518,988 | $ | - | $ | 518,988 | ||||||
4
Statement of Operations
|
Previously
Reported
|
Adjustments
|
Current
Restatement
|
||||||||||
|
Revenue
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
|
Operating expenses
|
||||||||||||
|
General, administrative and other
|
175,673
|
-
|
175,673
|
|||||||||
|
Marketing
|
183,129
|
-
|
183,129
|
|||||||||
|
Product development
|
37,019
|
-
|
37,019
|
|||||||||
|
Compensation
|
314,500
|
-
|
314,500
|
|||||||||
|
Total Operating Expenses
|
710,321
|
-
|
710,321
|
|||||||||
|
Other income (expense)
|
||||||||||||
|
Interest expense and finance costs
|
(8,389
|
)
|
(8,389
|
)
|
||||||||
|
Loss from continuing operations
|
(718,710
|
)
|
-
|
(718,710
|
)
|
|||||||
|
Discontinued operations, net
|
-
|
-
|
-
|
|||||||||
|
Net loss
|
$
|
(718,710
|
)
|
$
|
-
|
$
|
(718,710
|
)
|
||||
|
Net loss per common share
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
|||
The following tables summarize the effect of corrections on the consolidated financial statements as of the three months ended October 31, 2012:
|
|
Previously
Reported
|
Adjustments
|
Current
Restatement
|
|||||||||
| Assets | ||||||||||||
|
Current assets:
|
||||||||||||
|
Cash
|
$
|
2,234
|
$
|
2,234
|
$
|
2,234
|
||||||
|
Total current assets
|
2,234
|
2,234
|
2,234
|
|||||||||
|
Total assets
|
$
|
2,234
|
$
|
2,234
|
$
|
2,234
|
||||||
|
Liabilities:
|
||||||||||||
|
Accrued expenses
|
$
|
9,539
|
$
|
16,415
|
$
|
25,954
|
||||||
|
Total current liabilities
|
9,539
|
16,415
|
25,954
|
|||||||||
|
Liability for Issuable Common Stock
|
203,361
|
(203,361
|
)
|
-
|
||||||||
|
Total liabilities
|
212,900
|
(186,946
|
)
|
25,954
|
||||||||
|
Stockholders' deficit: Common stock
|
94,150
|
-
|
94,150
|
|||||||||
|
Additional paid in capital
|
(22,709
|
)
|
44,946
|
22,237
|
||||||||
|
Stock subscription payable
|
-
|
142,000
|
142,000
|
|||||||||
|
Retained earnings from discontinued operations
|
6,944
|
-
|
6,944
|
|||||||||
|
Accumulated deficit
|
(289,051
|
)
|
-
|
(289,051
|
)
|
|||||||
|
Total stockholders' deficit
|
(210,666
|
)
|
186,946
|
(23,720
|
)
|
|||||||
|
Total liabilities and stockholders' deficit
|
$
|
2,234
|
$
|
-
|
$
|
2,234
|
||||||
5
Statement of Operations
|
Previously
Reported
|
Adjustments
|
Current
Restatement
|
||||||||||
|
Revenue
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
|
Operating expenses
|
||||||||||||
|
General, administrative and other
|
53,380
|
-
|
53,380
|
|||||||||
|
Marketing
|
43,131
|
-
|
43,131
|
|||||||||
|
Product development
|
21,744
|
-
|
21,744
|
|||||||||
|
Compensation
|
27,000
|
-
|
27,000
|
|||||||||
|
Total Operating Expenses
|
145,255
|
-
|
145,255
|
|||||||||
|
Loss from continuing operations
|
(145,255
|
)
|
-
|
(145,255
|
)
|
|||||||
|
Discontinued operations, net
|
-
|
-
|
-
|
|||||||||
|
Net loss
|
$
|
(145,255
|
)
|
$
|
-
|
$
|
(145,255
|
)
|
||||
|
Net loss per common share
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
|||
The following tables summarize the effect of corrections on the consolidated financial statements as of the year ended July 31, 2012:
|
|
Previously
Reported
|
Adjustments
|
Current
Restatement
|
|||||||||
| Assets | ||||||||||||
|
Assets
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
|
Total assets
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
|
Liabilities:
|
||||||||||||
|
Accrued expenses
|
$
|
4,050
|
$
|
32,830
|
$
|
36,880
|
||||||
|
Total current liabilities
|
4,050
|
32,830
|
36,880
|
|||||||||
|
Liability for Issuable Common Stock
|
61,361
|
(61,361
|
)
|
-
|
||||||||
|
Total liabilities
|
65,411
|
(28,531
|
)
|
36,880
|
||||||||
|
Stockholders' deficit: Common stock
|
94,150
|
-
|
94,150
|
|||||||||
|
Additional paid in capital
|
(22,709
|
)
|
44,946
|
22,237
|
||||||||
|
Retained earnings from discontinued operations
|
6,944
|
6,944
|
||||||||||
|
Accumulated deficit
|
(143,796
|
)
|
(16,415
|
)
|
(160,211
|
)
|
||||||
|
Total stockholders' deficit
|
(65,411
|
)
|
(28,531
|
)
|
(36,880
|
)
|
||||||
|
Total liabilities and stockholders' deficit
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
6
Statement of Operations
|
Previously
Reported
|
Adjustments
|
Current
Restatement
|
||||||||||
|
Revenue
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
|
Operating expenses
|
||||||||||||
|
General, administrative and other
|
49,820
|
16,415
|
66,235
|
|||||||||
|
Marketing
|
5,863
|
-
|
5,863
|
|||||||||
|
Product development
|
45,413
|
-
|
45,413
|
|||||||||
|
Compensation
|
20,000
|
-
|
20,000
|
|||||||||
|
Total Operating Expenses
|
121,096
|
16,415
|
137,511
|
|||||||||
|
Loss from continuing operations
|
(121,096
|
)
|
16,415
|
(137,511
|
)
|
|||||||
|
Discontinued operations, net
|
(25
|
)
|
-
|
(25
|
)
|
|||||||
|
Net loss
|
$
|
(121,121
|
)
|
$
|
16,415
|
$
|
(137,536
|
)
|
||||
|
Net loss per common share
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
|||
7
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
HIGH PERFORMANCE BEVERAGES COMPANY
|
||
|
Dated: April 25, 2014
|
By:
|
/s/ Toby McBride
|
|
Name: Toby McBride
|
||
|
Title: Chief Executive Officer
|
||
8