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EX-32.1 - SECTION 906 CERTIFICATION - AMERITEK VENTURESex321sec906.htm
EX-31.1 - SECTION 302 CERTIFICATION - AMERITEK VENTURESex311sec302.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-K

 

 

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

For the fiscal year ended May 31, 2014

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: 000-54739

 

 
   
     

ATVROCKN

(Exact name of registrant as specified in its charter)

_________________

Nevada   27-4594495  
(State or Other Jurisdiction   (I.R.S. Employer  
  of Incorporation or Organization)   Identification No.)
             

 

1420 London Road, Suite 100, Duluth, MN       55805  
(Address of principal executive offices)   (Zip Code)
           

218-728-8553
(Registrant’s telephone number, including area code)

 

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

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.

Yes o No þ

 

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 þ No o

 

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

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. þ

 

Indicate by checkmark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to

this Form 10-K. [X]

 

 

Large accelerated filer o Accelerated filer o  
  Non-accelerated filer o Smaller Reporting Company þ
(Do not check if a smaller reporting company)      
               

 

 

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

 

The aggregate market value of the Company's common shares of voting stock held by non-affiliates of the Company at September 15, 2014, computed by reference to the last sale of $0.60 per-share price quoted on the OTC-BB was $300,000.

 

There were 66,500,000 shares of Common Stock issued and outstanding as of September 15, 2014.

 

 
 

 

 Table of Contents

ATVRockN

Index to Form 10-K

For the Year Ended May 31, 2014

 

PART I  
 

Page

Number

TITLE  
   
ITEM 1.  BUSINESS  2
ITEM1A. RISK FACTORS 13

 

ITEM1B. UNRESOLVED STAFF COMMENTS

 

ITEM 2. PROPERTIES

 

23

 

23

 

ITEM 3. LEGAL PROCEEDINGS

 

23

 

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

 

23

   
PART II  

 

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

 

24

 

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

 

25

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 29

 

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

 

30

ITEM 9A. CONTROLS AND PROCEDURES

 

ITEM 9B. OTHER INFORMATION

 

31

 

34

   
PART III  

 

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

 

34

 

ITEM 11. EXECUTIVE COMPENSATION

 

39

 

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 

40

 

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

 

42

 

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

 

43

   
PART IV  

 

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

44
   
SIGNATURES 46

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FORWARD-LOOKING STATEMENTS

 

This Annual Report on Form 10-K contains forward-looking statements. When used in this Annual Report on Form 10-K, the words "may," "could," "estimate," "intend," "continue," "believe," "expect" or "anticipate" and similar expressions identify forward-looking statements. Although we believe that our plans, intentions, and expectations reflected in any forward-looking statements are reasonable, these plans, intentions, or expectations may not be achieved. Our actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied, by the forward-looking statements contained in this Annual Report on Form 10-K. Important factors that could cause actual results to differ materially from our forward-looking statements are set forth in this Annual Report on Form 10-K. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the dates on which they are made. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth in this Annual Report on Form 10-K. Except as required by federal securities laws, we are under no obligation to update any forward-looking statement, whether as a result of new information, future events, or otherwise.

 

Although we believe that the expectations reflected in any of our forward-looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties. The factors impacting these risks and uncertainties include, but are not limited to:

 

· inability to raise additional financing for working capital;

· inability to identify new customers;

· deterioration in general or regional economic, market and political conditions;

· the fact that our accounting policies and methods are fundamental to how we report our financial condition and results of operations, and they may require management to make estimates about matters that are inherently uncertain;

· changes in accounting principles generally accepted in the United States of America (“U.S. GAAP”) or in the legal, regulatory and legislative environments in the markets in which we operate;

· inability to efficiently manage our operations;

· inability to achieve future operating results;

· our ability to recruit and hire key employees;

· the inability of management to effectively implement our strategies and business plans; and

· the other risks and uncertainties detailed in this report.

 

In this form 10-K references to "ATVRockN", "the Company", "we," "us," and "our" refer to ATVRockN.

 

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AVAILABLE INFORMATION

 

We file annual, quarterly and special reports and other information with the SEC. You can read these SEC filings and reports over the Internet at the SEC's website at www.sec.gov. You can also obtain copies of the documents at prescribed rates by writing to the Public Reference Section of the SEC at 100 F Street, NE, Washington, DC 20549 on official business days between the hours of 10:00 am and 3:00 pm. Please call the SEC at (800) SEC-0330 for further information on the operations of the public reference facilities. We will provide a copy of our annual report to security holders, including audited financial statements, at no charge upon receipt of a written request to us at ATVRockN, 1420 London Road, Suite 100, Duluth, MN 55805.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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PART I

 

Item 1. Business

 

History and Organization

 

We were incorporated on December 27, 2010 as ATVRockN, as a Nevada corporation. We consider ourselves to be an emerging growth company under applicable federal securities laws and will be subject to reduced public company reporting requirements. (See “Implications of Being an ‘Emerging Growth Company’ ” below in this Section. Under our original business plan, it was our intention to market a "housing molding" product to place audio equipment and lighting on 4-wheel drive vehicles such as All Terrain Vehicles (“ATV”) and Utility Terrain Vehicles (“UTV”). We did not manufacturer any units, we utilize the services of a contract manufacturer to make the unit for us. We had no material agreement with our contract manufacturer other than we pay them to produce product for us based on our needs. As we are undercapitalized, we were unable to produce the required housing molding(s) we believe would best sell in the ATV/UTV aftermarket.

 

Implications of Being an “Emerging Growth Company

 

As a public reporting company with less than $1.0 billion in revenue during our last fiscal year, we qualify as an “emerging growth company” under the Jumpstart our Business Startups Act of 2012, or the JOBS Act. An emerging growth company may take advantage of certain reduced reporting requirements and is relieved of certain other significant requirements that are otherwise generally applicable to public companies. In particular, as an emerging growth company we:

 

· are not required to obtain an attestation and report from our auditors on our management’s assessment of our internal control over financial reporting pursuant to the Sarbanes-Oxley Act of 2002;
   
· are not required to provide a detailed narrative disclosure discussing our compensation principles, objectives and elements and analyzing how those elements fit with our principles and objectives (commonly referred to as “compensation discussion and analysis);
   
· are not required to obtain a non-binding advisory vote from our stockholders on executive compensation or golden parachute arrangements (commonly referred to as the “say-on-pay,” “say-on-frequency” and “say-on-golden-parachute” votes);
   
· are exempt from certain executive compensation disclosure provisions requiring a pay-for-performance graph and CEO pay ratio disclosure;
   
·

may present only two years of audited financial statements and only two years of related Management’s Discussion & Analysis of Financial Condition and Results of Operations, or MD&A;

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· are eligible to claim longer phase-in periods for the adoption of new or revised financial accounting standards under §107 of the JOBS Act; and
   
· are exempt from any PCAOB rules relating to mandatory audit firm rotation and any requirement to include an auditor discussion and analysis narrative in our audit report.
   

 

We intend to take advantage of all of these reduced reporting requirements and exemptions, including the longer phase-in periods for the adoption of new or revised financial accounting standards under §107 of the JOBS Act. Our election to use the phase-in periods may make it difficult to compare our financial statements to those of non-emerging growth companies and other emerging growth companies that have opted out of the phase-in periods under §107 of the JOBS Act.

 

Certain of these reduced reporting requirements and exemptions were already available to us due to the fact that we also qualify as a “smaller reporting company” under SEC rules. For instance, smaller reporting companies are not required to obtain an auditor attestation and report regarding management’s assessment of internal control over financial reporting; are not required to provide a compensation discussion and analysis; are not required to a pay-for-performance graph or CEO pay ratio disclosure; and may present only two years of audited financial statements and related MD&A disclosure.

 

Under the JOBS Act, we may take advantage of these reduced reporting requirements and exemptions for up to five years after our initial sale of common equity pursuant to a registration statement declared effective under the Securities Act of 1933, or such earlier time that we no longer meet the definition of an emerging growth company. In this regard, the JOBS Act provides that we would cease to be an “emerging growth company” if we have more than $1.0 billion in annual revenues, have more than $700 million in market value of our common stock held by non-affiliates, or issue more than $1.0 billion of non-convertible debt over a three-year period. Furthermore, under current SEC rules we will continue to qualify as a “smaller reporting company” for so long as we (1) have a public float (i.e., the market value of common equity held by non-affiliates) of less than $75 million as of the last business day of our most recently completed second fiscal quarter; or (2) for so long as we have a public float of zero, have annual revenues of less than $50 million during our most recently completed fiscal year.

 

Investors should be aware that we will be subject to the "Penny Stock" rules adopted by the Securities and Exchange Commission, which regulate broker-dealer practices in connection with transactions in Penny Stocks. These regulations may have the effect of reducing the level of trading activity, if any, in the secondary market for our stock, and investors in our common stock may find it difficult to sell their shares.

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Business of Issuer

 

Management is currently seeking new business opportunities referred by various sources, including its officer/director, professional advisors, venture capitalists, members of the financial community, and others who may present unsolicited proposals.

 

 

Selection of a Business

 

ATVRockN anticipates that businesses for possible acquisition will be referred by various sources, including its officer/director, professional advisors, securities broker-dealers, venture capitalists, members of the financial community, and others who may present unsolicited proposals. ATVRockN will seek businesses from all known sources, but will rely principally on personal contacts of the officer/director and his affiliates, as well as indirect associations between him and other business and professional people. While it is not presently anticipated that ATVRockN will engage unaffiliated professional firms specializing in business acquisitions or reorganizations, such firms may be retained if management deems it in the best interest of the Company.

 

 

Process of Selection

 

ATVRockN will not restrict its search to any particular business, industry, or geographical location, and management reserves the right to evaluate and enter into any type of business in any location. It may participate in a newly organized business venture. On the other hand, it may select a more established company entering a new phase of growth or in need of additional capital to overcome existing financial problems.

 

In seeking a business venture, the decision of management will not be controlled by an attempt to take advantage of any anticipated or perceived appeal of a specific industry, management group, product, or industry, but will be based on the business objective of seeking long-term capital appreciation in the real value of ATVRockN.

 

 

Time Frame of the Selection Process

 

The period within which we may participate in a business on completion of this offering cannot be predicted and will depend on circumstances beyond our control, including the availability of businesses, the time required to complete our investigation and analysis of prospective businesses, the time required to prepare appropriate documents and agreements providing for our participation, and other circumstances. It is anticipated that the analysis of specific proposals and the selection of a business will take several months.

 

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Acquisition of a Business

 

In implementing a structure for a particular business acquisition, the Company may become a party to a merger, consolidation, or other reorganization with another corporation or entity; joint venture; license; purchase and sale of assets; or purchase and sale of stock, the exact nature of which cannot now be predicted. On the consummation of a transaction, it is likely that ATVRockN 's present management and shareholder will not be in control of the company. In addition, ATVRockN 's sole director may, as part of the terms of the acquisition transaction, resign and his vacancy under Nevada law, NRS 78.335(5) be replaced by new director without vote of our shareholders.

 

While the actual terms of a transaction to which we may be a party cannot be predicted, it may be expected that the parties to the business transaction will find it desirable to structure the acquisition as a so-called "tax-free" event under sections 351 or 368(a) of the Internal Revenue Code of 1986. In order to obtain tax-free treatment under section 351 of the Code, it would be necessary for the owners of the acquired business to own 80% or more of the stock of the surviving entity. In that case, ATVRockN 's shareholders, including investors in this offering, would retain less than 20% of the issued and outstanding shares of the surviving entity. Section 368(a)(1) of the Code provides for tax-free treatment of certain business reorganization between corporate entities where one corporation is merged with or acquires the securities or assets of another.

 

Generally, we will be the acquiring corporation in such a business reorganization, and the tax-free status of the transaction will not depend on the issuing of any specific amount of stock of the surviving entity. Consequently, there is a substantial possibility that the shareholders of

ATVRockN, immediately prior to the transaction, would retain less than 50% of the issued and outstanding shares of the surviving entity. Therefore, regardless of the form of the business acquisition, it may be anticipated that the investors in this offering will experience a significant reduction in their percentage of ownership in the company.

 

Notwithstanding the fact that the Company is technically the acquiring entity in these circumstances, generally accepted accounting principles will ordinarily require that such a transaction be accounted for as if the Company had been acquired by the other entity owning the business and, therefore, will not permit a write-up in the carrying value of the assets of the other company.

 

The manner in which we participate in a business will depend on the nature of the business, our needs and desires and those of the other parties involved in the negotiations , the management of the business, and the relative negotiating strengths of ATVRockN and the other management team.

 

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We will participate in a business only after the negotiation and execution of appropriate written agreements. Although the exact terms of these agreements cannot be predicted, generally they will:

 

·         require specific representations and warranties by all of the parties involved,

·         specify certain events of default,

·         detail the terms of closing and the conditions which must be satisfied by each of the parties prior to it,

·         outline the manner of bearing costs if the transaction is not closed,

·         set forth remedies on default, and

·         include miscellaneous other terms.

 

Evaluation Criteria

 

Despite his non-experience as a professional business analyst, ATVRockN's sole officer/director, Hal B. Heyer, M.D. will carefully examine businesses for acquisition.

 

Management anticipates the selection of an acquired business will be complex and risky because of the competition for such business opportunities among all segments of the financial community. The nature of the Company's search for the acquisition of a business requires maximum flexibility since the Company will be required to consider various factors and divergent circumstances which may preclude meaningful direct comparison among the various business enterprises, product or services investigated. The management of the Company will have virtually unrestricted flexibility in identifying and selecting a prospective acquired business. Besides determining its fair market value, management will consider the following:

 

·         the acquired business' net worth;

·         the acquired business' total assets;

·         the acquired business' cash flow;

·         costs associated with effecting the business combination;

·         equity interest and possible management participation in the acquired business;

·         earnings and financial condition of the acquired business;

·         growth potential of the acquired business and the industry in which it operates;

·         experience and skill of management and availability of additional personnel of the acquired business;

·         capital requirements of the acquired business;

·         competitive position of the acquired business;

·         stage development of the product, process or service of the acquired business;

·         degree of current or potential market acceptance of the product, process or service of the acquired business; and

·         regulatory environment of the industry in which the acquired business operates.

 

These criteria are not intended to be exhaustive. As the Company’s sole officer/director searches through the candidates for acquisition, other factors he considers relevant may apply.

 

9

The time and costs required to select and evaluate an acquired business candidate, including conducting a due diligence review, and to structure and consummate the business combination, including negotiating relevant agreements and preparing requisite documents for filing in keeping with applicable securities laws and state corporate laws, cannot presently be stated with certainty.

 

Leverage

 

ATVRockN may be able to participate in a business involving the use of leverage. Leveraging a transaction involves the acquisition of a business through incurring indebtedness for a portion of the purchase price of that business, which is secured by the assets of the business acquired.

 

One method by which leverage may be used is to locate an operating business available for sale and arrange for the financing necessary to purchase it. Acquisition of a business in this fashion would enable us to participate in a larger venture than our limited funds would otherwise permit, or use less of our funds to acquire a business and thus commit our remaining funds to the operations of the business acquired.

 

The likelihood that we could obtain a conventional bank loan for a leveraged transaction would depend largely on the business being acquired and its perceived ability to generate sufficient revenues to repay the debt. Generally, businesses suitable for leveraging are limited to those with income-producing assets that are either in operation or can be placed in operation relatively quickly. We cannot predict whether it will be able to locate any such business. As a general matter it may be expected that ATVRockN will have few, if any, opportunities to examine businesses where leveraging would be appropriate, or to acquire financing with acceptable

terms.

 

Tax Considerations

 

As a general rule, Federal and state tax laws and regulations have a significant impact upon the structuring of business combinations. ATVRockN will evaluate the possible tax consequences of any prospective business combination and will endeavor to structure the business combination so as to achieve the most favorable tax treatment to itself, the acquired business, and our respective stockholders. The IRS or other appropriate state tax authorities may, however, attempt to re-characterize the tax treatment of a particular business combination.

 

 

 

 

 

 

 

 

 

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Form and Structure of Acquisition

 

Of the various methods and forms by which we may structure a transaction to acquire another business, management is likely to use, without limitation, one of the following forms:

 

·         a leveraged buyout transaction in which most of the purchase price is provided by borrowings from one or more lenders or from the sellers in the form of a deferred purchase price;

 

·         a merger or consolidation of the acquired corporation into or with the Company;

 

·         a merger or consolidation of the acquired business corporation into or with a subsidiary of the company organized to facilitate the acquisition (a "subsidiary merger"), or a merger or consolidation of such a subsidiary into or with the acquired corporation (a "reverse subsidiary merger");

 

·         an acquisition of all or a controlling amount of the stock of the acquired corporation followed by a merger of the acquired business into us;

 

·         an acquisition of the assets of a business by us or a subsidiary organized for such a purpose;

 

·         a merger or consolidation of the Company with or into the acquired business or such a subsidiary; or

 

·         a combination of any of the above.

 

 

The actual form and structure for a business combination may also be dependent upon numerous other factors pertaining to the acquired business and its stockholders, as well as potential tax accounting treatments afforded the business combination.

 

As part of an acquisition, we may choose to issue additional securities that could add numerous complications depending on whether or not these would need to be registered. Dilution, change of management, additional costs, time delays or depressed prices for our stock could result.

 

 

 

 

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Daily Operations

 

We expect to use attorneys and accountants as necessary, and do not anticipate a need to engage any full-time employees during the phase devoted to seeking and evaluating business opportunities. The need for employees and their availability will be addressed along with the decisions specific to acquiring or participating in a specific business opportunity.

 

Until an active business is commenced or acquired, we will have only one employee, our sole officer/director for day-to-day operations. We are unable to make any estimate as to the future number of employees, which may be necessary. If an existing business is acquired it is possible that we would hire its existing staff.

 

Competition

 

We will be involved in intense competition with other business entities, many of which will have a competitive edge over us by virtue of their more substantial financial resources and prior experience in business. We also face numerous other smaller companies at the same stage of development as we are.

 

 

Patents, Trademarks and Licenses

 

We do not have any trademarks, patents, or other intellectual property.

 

Based on the nature of our business, we do not expect to file any trademarks or patents.

 

 

Employees

 

ATVRockN currently has one employee, its sole officer/director. ATVRockN plans to utilize independent contractors on a part-time/as needed basis to assist in its development activities, marketing, and financial and accounting support.

 

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Item 1A. Risk Factors

 

 

RISK FACTORS RELATING TO OUR FINANCIAL CONDITION

 

1. WE HAVE NO OPERATING HISTORY AND LIMITED HISTORICAL FINANCIAL INFORMATION UPON WHICH YOU MAY EVALUATE OUR PERFORMANCE.

 

We have no operating history and we are subject to all risks inherent in a developing business enterprise. Our likelihood of success must be considered in light of the problems, expenses, difficulties, complications, and delays frequently encountered developing a business enterprise and the competitive environment in which we operate. You should consider, among other factors, our prospects for success in light of the risks and uncertainties encountered by companies that, like us, are in their early stages of research and business development. We may not be able to successfully address these risks and uncertainties or successfully implement our operating and acquisition strategies. If we fail to do so, it could materially harm our business to the point of having to cease operations and could impair the value of our preferred and common stock to the point that the investors may lose their entire investment. Even if we accomplish these objectives, we may not be able to generate positive cash flows or profits that we anticipate in the future.

 

 

2. Our auditors have made reference to the substantial doubt as to our ability to continue as a going concern, THERE IS NO ASSURANCE THAT WE WILL BE ABLE TO CONTINUE AS A GOING CONCERN.

 

Our financial statements included with this Annual Report for the year ended May 31, 2014 have been prepared assuming that we will continue as a going concern. Our auditors have made reference to the substantial doubt as to our ability to continue as a going concern in their audit report on our audited financial statements for the year ended May 31, 2014. Because the Company has been issued an opinion by our auditors that substantial doubt exists as to whether the Company can continue as a going concern, it may be more difficult for the Company to attract investors. Since our auditor's have raised a substantial doubt about our ability to continue as a going concern, this typically results greater difficulty to obtain loans than businesses that do not have a qualified auditors opinion. Additionally, any loans we might obtain may be on less advantageous terms. Our future is dependent upon our ability to obtain financing and upon future profitable operations from our business. We plan to seek additional funds through private placements of our preferred and common stock. You may be investing in a company that will not have the funds necessary to continue to deploy its business strategies. If we are not able to achieve sufficient revenues or find financing to cover our expenses, then we likely will be forced to cease operations and investors will likely lose their entire investment.

 

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3. WE MAY NOT BE ABLE TO ATTAIN PROFITABILITY WITHOUT ADDITIONAL FUNDING, WHICH MAY BE UNAVAILABLE.

 

For the period from inception (December 27, 2010) through the year end for May 31, 2014, we experienced a cumulative operating net loss of $(156,598) and when we include our interest expense and impairment of equipment, our cumulative net loss applicable to common shareholders was $(294,152). Our ability to continue to operate as a going concern is fully dependent upon the Company obtaining sufficient financing to continue its development and operational activities. The ability to achieve profitable operations is in direct correlation to our ability to generate revenues or raise sufficient financing. It is important to note that even if the appropriate financing is received, there is no guarantee that we will ever be able to operate profitably or derive any significant revenues from its operation. If we are unable to obtain additional funding, we may be forced to cease operations.

 

COMPANY RISK FACTORS

 

4. We are in a highly competitive market WITH a small number of business opportunities, there is a risk that we would be an insignificant participant among other companies with larger financial resources.

 

The Company is and will continue to be an insignificant participant in the business of seeking mergers with, joint ventures with and acquisitions of small private and public entities. A large number of established and well-financed entities, including venture capital firms, are active in mergers and acquisitions of companies that may be desirable target candidates for us.

 

Nearly all these entities have significantly greater financial resources, technical expertise and managerial capabilities than we do and, consequently, we will be at a competitive disadvantage in identifying possible business opportunities and successfully completing a business combination. Moreover, we will also compete in seeking merger or acquisition candidates with numerous other small public companies

 

 

5. The issuance of additional stock to consummate a business combination will reduce your percentage of ownership in the Company, and reduce the value of your shares.

 

Our primary plan of operation is based upon a business combination with a private company that, in all likelihood, would result in the issuance of our securities to the shareholders of the private company. The issuance of previously authorized and unissued common stock would result in reduction in percentage of shares owned by present and prospective shareholders of the

Company and may result in a change in control or management.

 

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6. There is a risk, we will not be able to identify any suitable business combinations.

 

We have no arrangement, agreement or understanding with respect to engaging in a merger with, joint venture with or acquisition of, a private or public entity. No assurances can be given that we will successfully identify and evaluate suitable business opportunities or that we will conclude a business combination. Management has not identified any particular industry or specific business within an industry for evaluation. We cannot guarantee that we will be able to negotiate a business combination on favorable terms.

 

 

7. Since we have not conducted any market research, there is a risk that merger or acquisition opportunities do not exist as this time.

 

We have neither conducted, nor have others made available to us, results of market research indicating that market demand exists for the transactions we contemplate. Moreover, we do not have, and do not plan to establish, a marketing organization. Even if demand is identified for a merger or acquisition, we cannot assure you that we will be successful in completing a business combination.

 

 

8. There can be no assurance of profitability, even once the acquisition has been accomplished.

 

We have not established a specific length of operating history or a specified level of earnings, assets, net worth or other criteria that we will require a target business opportunity to have achieved. Accordingly, we may enter into a business combination with a business opportunity having no significant operating history, losses, limited or no potential for earnings, limited assets, negative net worth or other characteristics that are indicative of development stage companies.

 

 

 

9. The requirement of audited financial statements may disqualify potential business opportunities.

 

Management believes that any potential business opportunity must provide audited financial statements for review for the protection of all parties to the business combination. One or more attractive business opportunities may choose to forego the possibility of a business combination with us, rather than incur the expenses associated with preparing audited financial

statements.

 

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10. The nature of our operations are highly speculative.

 

The success of our plan of operation will depend to a great extent on the operations, financial condition and management of the identified business opportunity. While management intends to seek business combination(s) with entities having established operating histories, we cannot assure you that we will be successful in locating candidates meeting that criteria. In the event we complete a business combination, the success of our operations may be dependent upon management of the successor firm or venture partner firm and numerous other factors beyond our control.

 

 

 

11. THERE MAY BE A POSSIBLE INABILITY TO FIND SUITABLE EMPLOYEES.

 

In order to implement our business plan, management recognizes that additional staff will be required. No assurances can be given that we will be able to find suitable employees that can support our needs or that these employees can be hired on favorable terms. We do not plan to hire any additional employees until our cash flows can justify the expense.

 

 

12. OUR MANAGEMENT AND PREFERRED SHAREHOLDER CONTROLS A LARGE BLOCK OF OUR COMMON STOCK THAT WILL ALLOW THEM TO CONTROL THE COMPANY.

 

As of September 15, 2014, our sole officer/director owns 99.2% of our currently issued and outstanding common stock. Our sole officer/director is able to elect all of the directors and continue to control the Company. Additionally, our registered preferred stock Series A shareholder owns 1,241,700 of Series A preferred shares that can be converted into 124,170,000 common shares or 64.8% of the outstanding shares upon conversion.

 

As a result, our sole officer/director and Series A preferred shareholder will have the ability to control substantially all matters submitted to our stockholders for approval including:

 

a)      election of our board of directors;

 

b)      removal of any of our directors;

 

c)      amendment of our Articles of Incorporation or bylaws; and

 

d)     adoption of measures that could delay or prevent a change in control or impede a merger, takeover or other business combination involving us.

 

 

16

 

 

 

 

As a result of their ownership and positions, these two individuals have the ability to influence all matters requiring shareholder approval, including the election of directors and approval of significant corporate transactions. In addition, the future prospect of sales of significant amounts of shares held by our director and executive officer could affect the market price of our preferred and common stock if the marketplace does not orderly adjust to the increase in shares in the market and the value of your investment in the Company may decrease. Management's stock ownership may discourage a potential acquirer from making a tender offer or otherwise attempting to obtain control of us, which in turn could reduce our stock price or prevent our stockholders from realizing a premium over our stock price.

 

Investors will own a minority percentage of the Company's common stock and will have minority voting rights. Investors will not have the ability to control either the vote of the Company's Shareholders or Board of Directors.

 

 

13. WE WILL INCUR INCREMENTAL COSTS AS A RESULT OF OPERATING AS A PUBLIC COMPANY.

 

Since we are a full reporting company with the U. S. Securities and Exchange Commission, we will incur additional legal, accounting and other expenses. Moreover, the Sarbanes-Oxley Act of 2002 (the "Sarbanes-Oxley Act"), as well as new rules subsequently implemented by the SEC, have imposed various new requirements on public companies, including requiring changes in corporate governance practices. There may be further increases if and when we are no longer an "emerging growth company." Moreover, these rules and regulations will increase our legal and financial compliance costs and will make some activities more time-consuming and costly. We project that the total incremental operating expenses of being a public company will be approximately $45,000 for 2015. The incremental costs are estimates, and actual incremental expenses could be materially different from these estimates. Unless we can generate sufficient revenues and profits, we may not be able to absorb the costs of being a public company.

 

 

 

 

 

 

 

 

 

 

 

17

 

 

 

 

 

14. As a result of operating as a public company, and our management will be required to devote substantial time to new compliance initiatives.

 

As a public company, we will incur significant legal, accounting and other expenses that we would not incur as a private company. There may be further increases if and when we are no longer an "emerging growth company". The Sarbanes-Oxley Act of 2002, the Dodd-Frank Act of 2010, and rules subsequently implemented and yet to be implemented by the U. S. Securities and Exchange Commission have imposed and will impose various new requirements on public companies. Our management and other personnel will need to devote a substantial amount of time to these new compliance initiatives. Moreover, these rules and regulations will increase our legal and financial compliance costs and will make some activities more time-consuming and costly, particularly after we are no longer an "emerging growth company." For example, we expect these new rules and regulations to make it more difficult and more expensive for us to obtain director and officer liability insurance, and we may be required to incur substantial costs to maintain the same or similar coverage.

 

In addition, the Sarbanes-Oxley Act requires, among other things, that we maintain effective internal control over financial reporting and disclosure controls and procedures. In particular, we must perform system and process evaluation and testing of our internal control over financial reporting to allow management, as required by Section 404 of the Sarbanes-Oxley Act. Compliance will require us to increase our general and administrative expense in order to pay added compliance personnel, outside legal counsel and consultants to assist us in, among other things, external reporting, instituting and monitoring a more comprehensive compliance function and board governance function, establishing and maintaining internal controls over financial

reporting in accordance with Section 404 of the Sarbanes-Oxley Act, and preparing and distributing periodic public reports in compliance with our obligations under the U.S. federal securities laws. We currently do not have an internal audit group, and we will evaluate the need to hire additional accounting and financial staff with appropriate public company experience and technical accounting knowledge. Moreover, if we are not able to comply with the requirements of Section 404 in a timely manner, the market price of our stock could decline.

 

However, for as long as we remain an "emerging growth company" as defined in the Jumpstart Our Business Startups Act of 2012, we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not "emerging growth companies" including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. We will remain an emerging growth company until the earliest of (a) the last day of our fiscal year during which we have total annual gross revenues of at least $1.0 billion; (b) the last day of our fiscal year ending after the fifth anniversary of the first sale of our common equity securities under an effective registration statement; (c) the date on which we have, during the previous three-year period, issued more than $1.0 billion in non-convertible debt; or (d) the date on which we are deemed to be a "large accelerated filer" under the Exchange Act.

18

 

 

 

15. We are an “emerging growth company” and our election to delay adoption of new or revised accounting standards applicable to public companies may result in our financial statements not being comparable to those of some other public companies. As a result of this and other reduced disclosure requirements applicable to emerging growth companies, our securities may be less attractive to investors.

 

We are an “emerging growth company,” as defined in the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, and we intend to take advantage of exemptions from certain reporting requirements available to “emerging growth companies” under that Act, including but not limited to not being required to comply with the auditor attestation requirements of Section 404(b) of the Sarbanes-Oxley Act of 2002 (relating to the effectiveness of our internal control over financial reporting), reduced disclosure obligations regarding executive compensation in our periodic reports and any proxy statements we may be required to file, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. In addition, Section 107 of the JOBS Act provides that an “emerging growth company” can delay the adoption of certain accounting standards until those standards would apply to private companies.

 

We are electing to delay such adoption of new or revised accounting standards and, as a result, we may not comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for other public companies that are not “emerging growth companies.” Consequently, our financial statements may not be comparable to the financial statements of other public companies. We may take advantage of these reporting exemptions until we are no longer an “emerging growth company.” In this regard, we will remain an “emerging growth company” for up to five years after the first sale of our common equity securities under an effective registration statement, although if the market value of our common stock that is held by non-affiliates exceeds $700 million as of any June 30 before that time, we would cease to be an “emerging growth company” as of the next following December 31.

 

We cannot predict if investors will find our securities less attractive due to our reliance on these exemptions. If investors were to find our securities less attractive as a result of our election, we may have difficulty raising funds in future offerings.

 

 

 

 

19

 
 

 

 

RISK FACTORS RELATING TO OUR PREFERRED AND COMMON STOCK.

 

16. OUR PREFERRED STOCK DOES NOT PAY ANY DIVIDENDS AND CAN BE CONSIDERED ILLIQUID.

 

We have one Series of Preferred Shares issued and outstanding as of May 31, 2014. Our registered preferred stock, par value $0.001, shall not be entitled to receive any dividends, shall not have any liquidation rights and shall not be entitled to (a) any voting rights or (b) notice of any meeting of the shareholders of the corporation. The registered preferred stock can be converted at the ratio of one hundred (100) shares of Common Stock for every one (1) share of the registered preferred stock converted; however, the conversion is limited whereby the beneficial owner cannot beneficially own in excess of 4.9% of the shares of the Common Stock outstanding immediately after giving effect to such conversion or exercise.

 

Management has no intention to apply to have any Series of the Company’s preferred stock listed or quoted on any exchange or inter-dealer quotation system. This will make ownership of our preferred shares very illiquid.

 

17. We have authorized and unissued shares Series A, B and C Preferred stock that may be issued in the future, which would dilute your ownership in the Company.

 

We have 5,000,000 preferred shares authorized for each of our Series A, B and C preferred stock. We currently have 1,250,000 shares of the registered Series A preferred stock issued and outstanding; no Series B preferred stock issued and outstanding and no Series C stock issued and outstanding. The Series C stock is undesignated at this time. Therefore, if each Series has 5,000,000 authorized, this gives the Board of Directors a great deal of discretion, in the future, to issue more shares in each Series, without shareholder approval. The issuance of more shares of any Series would dilute your ownership in the Company, which would mean your percent of ownership in the Company would decrease.

 

18. WE HAVE NEVER DECLARED DIVIDENDS ON OUR COMMON STOCK AND DO NOT PLAN TO DO SO IN THE FORESEEABLE FUTURE.

 

We intend to retain any future earnings to finance the operation and expansion of its business and do not anticipate paying any cash dividends in the foreseeable future. As a result, stockholders will need to sell shares of common stock in order to realize a return on their investment, if any. You should not rely on an investment in our Company if you require dividend income. The only possibility of any income to investors would come from any rise in the market price of your stock, which is uncertain and unpredictable.

 

A holder of common stock will be entitled to receive dividends only when, as, and if declared by the Board of Directors out of funds legally available therefore. We have never issued dividends on our common stock. Our Board of Directors will determine future dividend policy based upon our results of operations, financial condition, capital requirements, and other circumstances.

 

20

19. HOLDERS OF OUR PREFERRED AND COMMON STOCK HAVE A RISK OF POTENTIAL DILUTION IF WE ISSUE ADDITIONAL SHARES OF PREFERRED AND/OR COMMON STOCK IN THE FUTURE.

 

Although our Board of Directors intends to utilize its reasonable business judgment to fulfill its fiduciary obligations to our then existing stockholders in connection with any future issuance of our common stock, the future issuance of additional shares of our preferred and common stock would cause immediate, and potentially substantial, dilution to the net tangible book value of those shares of preferred and common stock that are issued and outstanding immediately prior to such transaction. Any future decrease in the net tangible book value of our issued and outstanding shares could have a material effect on the market value of the shares.

 

 

20. WE DO NOT HAVE INSURANCE AND, THEREFORE, LIABILITY WE INCUR COULD HAVE SUBSTANTIAL IMPACT ON OUR ABILITY TO CONTINUE AS A GOING CONCERN.

 

We have limited capital and, therefore, we do not currently have a policy of insurance against liabilities arising out of the negligence of our officer and director and/or arising from deficiencies in any of our business operations. Even assuming we obtained insurance, there is no assurance that such insurance coverage would be adequate to satisfy any potential claims made against us, our officers and directors, or our business operations or assets. Any such liability which might arise could be substantial and would likely exceed our total assets. However, our Articles of Incorporation and Bylaws provide for indemnification of officers and directors to the fullest extent permitted under Nevada law. Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officer and controlling persons, it is the opinion of the U. S. Securities and Exchange Commission that such indemnification is against public policy, as expressed in the Act, and is therefore, unenforceable.

 

21. IF WE FAIL TO MAINTAIN AN EFFECTIVE SYSTEM OF INTERNAL CONTROLS, WE MAY NOT BE ABLE TO ACCURATELY REPORT OUR FINANCIAL RESULTS OR PREVENT FRAUD AND AS A RESULT, INVESTORS MAY BE MISLED AND LOSE CONFIDENCE IN OUR FINANCIAL REPORTING AND DISCLOSURES, AND THE PRICE OF OUR PREFERRED AND COMMON STOCK MAY BE NEGATIVELY AFFECTED.

 

The Sarbanes-Oxley Act of 2002 requires that we report annually on the effectiveness of our internal control over financial reporting. A "significant deficiency" means a deficiency or a combination of deficiencies, in internal control over financial reporting that is less severe than a material weakness yet important enough to merit attention by those responsible for oversight of the Company's financial reporting. A "material weakness" is a deficiency or a combination of deficiencies in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.

 

21

 

As of May 31, 2014 management assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting. The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) lack of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; and (2) inadequate segregation of duties consistent with control objectives.

 

In addition, in connection with our on-going assessment of the effectiveness of our internal control over financial reporting, we may discover "material weaknesses" in our internal controls as defined in standards established by the Public Company Accounting Oversight Board, or the PCAOB. A material weakness is a significant deficiency, or combination of significant deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected.

 

Failure to provide effective internal controls may cause investors to lose confidence in our financial reporting and may negatively affect the price of our preferred and common stock. Moreover, effective internal controls are necessary to produce accurate, reliable financial reports and to prevent fraud. If we have deficiencies in our internal controls over financial reporting, these deficiencies may negatively impact our business and operations.

 

22. LOW-PRICED STOCKS MAY AFFECT THE RESELL OF OUR SHARES.

 

Penny Stock Regulation Broker-dealer practices in connection with transactions in "Penny Stocks" are regulated by certain penny stock rules adopted by the Securities and Exchange Commission. Penny stocks generally are equity securities with a price of less than $5.00 (other than securities registered on certain national securities exchanges or quoted on the NASDAQ system). The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the risk associated with the penny stock market. The broker-dealer must also provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction, and monthly account statements showing the market value of each penny stock held in the customer's account. In addition, the penny stock rules generally require that prior to a transaction in a penny stock; the broker-dealer must make a written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction. These disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for a stock that is subject to the penny stock rules.

 

 

 

 

 

22

 
 

 

 

 

Item 1B. Unresolved Staff Comments.

 

Not Applicable.

 

Item 2. Properties.

 

The Company's corporate headquarters are located at: 1420 London Road, Suite 100, Duluth, MN 55805. The Company does not own any real property. This administrative office is being provided at no cost by the Officer of the Company. The Officer will not seek reimbursement for providing this administrative space. Management believes that its current facilities are adequate for its needs through the next twelve months.

 

 

Item 3. Legal Proceedings.

 

From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

 

We are not presently a party to any material litigation, nor to the knowledge of management is any litigation threatened against us, which may materially affect us.

 

Item 4. Submission of Matters to a Vote of Security Holders.

 

No matters were submitted to the shareholders for the period ending May 31, 2014.

 

 

 

 

 

 

 

23

 
 

 

 

 

PART II

 

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

 

(a) Market Information

 

ATVRockN Common Stock, $0.001 par value, was cleared for quotation on the OTC-Bulletin Board on November 20, 2012, under the symbol: ATVK.

 

There have been a limited amount of trades of the Company’s stock since it was listed on the OTC-BB, there are no assurances that a market will ever develop for the Company's stock.

 

Year ended May 31, 2014

  High     Low  
First Quarter   $ 0.42     $ 0.32  
Second Quarter   $ 0.42     $ 0.42  
Third Quarter   $ 1.69     $ 0.60  
Fourth Quarter   $ 0.60     $ 0.60  
     

Year ended May 31, 2013

  High     Low  
First Quarter   $ n/a     $ n/a  
Second Quarter   $ 0.15*     $ 0.15  
Third Quarter   $ 0.20     $ 0.10  
Fourth Quarter   $ 0.60     $ 0.26  
     
                   

* The first trade of the Company’s stock took place on November 28, 2012.

 

 

(b) Holders of Common Stock

 

As of September 15, 2014, there are approximately thirty-six (36) holders of record of our Common Stock and three (3) holders of our Preferred Stock.

 

(c) Dividends

 

In the future we intend to follow a policy of retaining earnings, if any, to finance the growth of the business and do not anticipate paying any cash dividends in the foreseeable future. The declaration and payment of future dividends on the Common Stock will be the sole discretion of board of directors and will depend on our profitability and financial condition, capital requirements, statutory and contractual restrictions, future prospects and other factors deemed relevant.

 

(d) Securities Authorized for Issuance under Equity Compensation Plans

 

There are no outstanding grants or rights or any equity compensation plan in place.

 

 

24

(e) Recent Sales of Unregistered Securities

 

No shares was issued during the fiscal year ending May 31, 2014.

 

(f) Issuer Purchases of Equity Securities

 

We did not repurchase any of our equity securities during the year ended May 31, 2014.

 

 

Item 6. Selected Financial Data.

 

Not applicable.

 

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

 

Overview of Current Operations

 

We were incorporated on December 27, 2010 as ATVRockN, as a Nevada corporation. We consider ourselves to be an emerging growth company under applicable federal securities laws and will be subject to reduced public company reporting requirements. Management is currently seeking new business opportunities referred by various sources, including its officer/director, professional advisors, venture capitalists, members of the financial community, and others who may present unsolicited proposals.

 

 

RESULTS OF OPERATIONS

 

For the fiscal years ending May 31, 2014 and May 31, 2013, the Company recognized no revenues.

 

For the for the fiscal year ending May 31, 2014, the Company incurred total operating expenses of $51,642, which consists of $52,500 in professional fees; $532 in depreciation, $(1,800) in estimated payroll taxes and $410 in general and administrative. This compares to the fiscal year ending May 31, 2013, where the Company incurred total operating expenses of $55,613, which consisted of $10,000 in professional fees; $711 in depreciation, and $44,902 in general and administrative. For the fiscal year ending May 31, 2014, the Company had a loss applicable to common shareholders of $(66,560) or $(0.00) per common share basic and diluted for the year ended May 31, 2014 as compared to a loss applicable to common shareholders of $(60,613) or $(0.00) per common share for the year ended May 31, 2013.

 

During the year ended May 31, 2014, the Company used net cash of $(10,328) in operations, $5,328 was provided by investing activities and no cash was provided by or used in financing activities. During the year ended May 31, 2013, the Company used net cash of $(53,235) in operations, $52,702 was provided by investing activities and $5,000 was provided by financing activities.

25

 
 

 

Going Concern

 

Our ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and our ability to achieve and maintain profitable operations.

 

Therefore, management plans to raise equity capital to finance the operating and capital requirements of the Company. While the Company is devoting its best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be available for operations. These conditions raise substantial doubt about the Company's ability to continue as a going concern.

 

Summary of any product research and development that we will perform for the term of our plan of operation.

 

At this time, the Company has no product research nor development taking place, as such research is not required at this time.

 

Expected purchase or sale of plant and significant equipment

 

We do not anticipate the purchase or sale of any plant or significant equipment; as such items are not required by us at this time.

 

Significant changes in the number of employees

 

As of May 31, 2014, we have one employee who also serves as our sole officer/director. We are dependent upon our sole officer/director for our future business development. As our operations expand we anticipate the need to hire additional employees, consultants and professionals; however, the exact number is not quantifiable at this time.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

26

 
 

 

 

LIQUIDITY AND CAPITAL RESOURCES

 

As of May 31, 2014, the Company had no cash and cash equivalents on hand. At the same date, the Company had total current liabilities of $46,773.

 

Management intends to raise additional debt or equity financing to fund ongoing operations and for necessary working capital. However, there is no assurance that such financing plans will be successful or be obtained in amounts sufficient to meet the Company’s needs.

 

Notwithstanding, the Company anticipates generating losses and therefore may be unable to continue operations in the future. The Company anticipates it will require additional capital in order to develop its business. The Company may use a combination of equity and/or debt instruments or enter into a strategic arrangement with a third party. Management has yet to find a solution to its funding requirements.

 

Off-Balance Sheet Arrangements

 

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results or operations, liquidity, capital expenditures or capital resources that is material to investors.

 

Critical Accounting Policies and Estimates

 

Revenue Recognition: The Company recognizes revenue related to product sales when (i) persuasive evidence of the arrangement exists, (ii) shipment has occurred, (iii) the fee is fixed or determinable, and (iv) collectability is reasonably assured. For the period from December 27, 2010 (inception) to May 31, 2014, the Company recognized revenues of $11,165.

 

Recent Pronouncements

 

The Company's management has evaluated all the recently issued accounting pronouncements through the filing date of these financial statements and does not believe that any of these pronouncements will have a material impact on the Company's financial position and results of operations.

 

 

 

27

 
 

 

 

JOBS Act

 

On April 5, 2012, the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, was enacted. Section 107 of the JOBS Act provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933 for complying with new or revised accounting standards. This means that an “emerging growth company” can delay the adoption of certain accounting standards until those standards would apply to private companies. We are electing to delay such adoption of new or revised accounting standards and, as a result, we may not comply with new or revised accounting standards at the same time as other public reporting companies that are not “emerging growth companies.”

 

In addition, we intend to rely on other exemptions from reporting and disclosure requirements that are offered by the JOBS Act, including (i) an exemption from the need to provide an auditor’s attestation report on our system of internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act of 2002, and (ii) an exemption from the need to comply with any PCAOB requirement regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and our financial statements (auditor discussion and analysis). These exemptions will apply for a period of five years following our first sale of common equity securities under an effective registration statement or until we no longer qualify as an “emerging growth company,” whichever is earlier. For further information regarding disclosure and other exemptions available to us under the JOBS Act, please see “Prospectus Summary—The Company—Implications of Being an Emerging Growth Company.”

 

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

 

Not applicable.

 

Item 8. Financial Statements and Supplementary Data.

 

Index to Financial Statements

 

 

 

 

 

 

 

 

28

 

 

 
 

ATVRockN

Financial Statements

 

 

INDEX TO FINANCIAL STATEMENTS

       
Financial Statements:    
       
    Report of Independent Registered Public Accounting Firm F-1
       
    Balance Sheets as of May 31, 2014 and 2013 F-2
       
    Statements of Operations for the Years Ended May 31, 2014, May 31, 2013 and the Period from December 27, 2010 (“Inception”) to May 31, 2014

 

F-3

       
    Statements of Stockholders’ Deficit for the Period from December 27, 2010 (“Inception”) to May 31, 2014

 

F-4 

       
    Statements of Cash Flows for the Years Ended May 31, 2014, May 31, 2013 and the Period from December 27, 2010 (“Inception”) to May 31, 2014

 

F-5

       
  Notes to the Financial Statements F-6  
       
       
             

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

29

 

 
 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors and Stockholders of

ATVROCKN (A Development Stage Company)

Las Vegas, Nevada

 

We have audited the accompanying balance sheet of ATVROCKN (A Development Stage Company), as of May 31, 2014; the related statements of operations, stockholders’ deficit and cash flows for the year then ended; the related statement of operations, stockholders’ deficit and cash flows for the period from inception (December 27, 2010) to May 31, 2014. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit. We did not audit the financial statements of ATVROCKN for the period from inception to May 31, 2013. Such statements are included in the cumulative inception to May 31, 2014 totals of the statements of operations and cash flows and reflect total revenues and net loss of 100% and 77%, respectively, of the related cumulative totals. Those statements were audited by other auditors whose reports have been furnished to us, and our opinion, insofar as it relates to amounts for the period from inception to May 31, 2013, included in the cumulative totals, is based solely on the reports of the other auditors.

 

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

 

In our opinion, based on our audit and the reports of other auditors, the financial statements referred to above present fairly, in all material respects, the financial position of ATVROCKN, as of May 31, 2014, and the results of its operations and its cash flows for the year ended and for the period from inception to May 31, 2014, in conformity with accounting principles generally accepted in the United States of America.

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has earned no revenues in the year ended May 31, 2014, has negative working capital at May 31, 2014, has incurred recurring losses and recurring negative cash flow from operating activities, and has an accumulated deficit. These factors raise substantial doubt about its ability to continue as a going concern. Management’s plans concerning these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

/s/ Somerset CPA’s, P.C.

 

Indianapolis, Indiana

September 12, 2014

F-1

 

 
 

 

ATVROCKN

(A Development Stage Company)

Balance Sheets

 

        May 31, 2014   May 31, 2013
    ASSETS        
Current assets:        
  Cash and cash equivalents   $                            -   $             5,000
  Inventory   -   94
    Total current assets   -   5,094
             
Fixed assets:        
  Furniture and equipment   -   12,950
    Total fixed assets   -   12,950
TOTAL ASSETS   $                            -   $           18,044
             
    LIABILITIES AND STOCKHOLDERS' DEFICIT        
Current liabilities:        
  Accounts payable   $                  11,773   $             1,785
  Accrued expense - estimated payroll taxes   -   1,800
  Other accrued expenses   35,000   -
  Due to related party   -   14,265
  Accrued interest   -   6,361
  Secured note payable   -   25,000
    Total current liabilities   46,773   49,211
             
Stockholders' deficit:        
  Preferred stock Series B, $0.001 par value, 5,000,000 shares   -   25
    authorized, none and 25,000 issued and        
    outstanding as of 5/31/2014 and 5/31/2013,        
    respectively        
  Convertible preferred stock Series A, $0.001 par   1,250   1,250
    value, 5,000,000 shares authorized, 1,250,000        
    and 1,250,000 issued and outstanding as of        
    5/31/2014 and 5/31/2013, respectively        
  Preferred stock Series C, $0.001 par value, 5,000,000 shares   -   -
    authorized, none issued and outstanding as of        
    5/31/2014 and 5/31/2013, respectively        
  Common stock, $0.001 par value, 185,000,000 shares   66,500   66,500
    authorized, 66,500,000 and 66,500,000 issued and        
    outstanding as of 5/31/2014 and 5/31/2013,        
    respectively        
  Additional paid-in capital   179,629   128,650
  Deficit accumulated during development stage   (294,152)   (227,592)
    Total stockholders' deficit   (46,773)   (31,167)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT   $                            -   $           18,044

 

 

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

F-2

 

 

ATVROCKN

(A Development Stage Company)

Statement of Operations

 

      For the year ended May 31, 2014   For the year ended May 31, 2013   From Inception (December 27, 2010) to May 31, 2014
Revenue $                         -   $                         -   $               11,165
Cost of goods sold -   -   8,854
Gross profit -   -   $2,311
               
Expenses:          
  Professional fees 52,500   10,000   72,523
  Depreciation 532   711   1,775
  Estimated payroll taxes (1,800)   -   -
  General & administrative expenses 410   44,902   72,611
  Salaries -   -   12,000
    Total expenses 51,642   55,613   158,909
               
Operating loss $            (51,642)   $            (55,613)   $          (156,598)
               
Other Income (Expenses):          
  Amortization on original issue discount -   -   (25)
  Interest income (expense) (2,500)   (5,000)   (12,611)
  Impairment of equipment (12,418)     (12,418)
  Beneficial conversion feature of          
    convertible preferred stock -   -   (112,500)
    Total other income (expenses) (14,918)   (5,000)   (137,554)
               
Net loss applicable to          
  common shareholders $            (66,560)   $            (60,613)   $          (294,152)
               
Net loss per share - basic and diluted $                (0.00)   $                (0.00)    
               
Weighted average shares outstanding - basic 66,500,000   66,500,000    
               
Weighted average shares outstanding - diluted 191,500,000   191,500,000    

 

 

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

 

F-3

 

 

 
 

 

ATVROCKN

(A Development Stage Company)

Statements of Stockholders’ Deficit

 

                                Deficit    
                                Accumulated    
    Series B   Series A Convertible           Additional   During   Total
    Preferred Stock   Preferred Stock   Common Stock   Paid-In   Development   Stockholders'
    Shares   Amount   Shares   Amount   Shares   Amount   Capital   Stage   Equity
Inception, December 27, 2010   -   -   -   -   -   -   -   -   -
                                     
December 27, 2010 Contributed Capital   -   -   -   -   -   -   400   -   400
                                     
December 27, 2010 Founders' shares issued for cash at $0.001 per share   -   -   -   -   20,000,000   20,000   -   -   20,000
                                     
May 24, 2011 Series B Preferred shares issued at discount   25,000   25   -   -   -   -   -   -   25
                                     
May 31, 2011 Series A Preferred shares issued for cash at $0.01 per share   -   -   1,250,000   1,250   -   -   11,250   -   12,500
                                     
Deemed interest from beneficial conversion feature on Series A preferred stock   -   -   -   -   -   -   112,500   -   112,500
                                     
Net loss   -   -   -   -   -   -   -   (116,916)   (116,916)
                                     
Balance, May 31, 2011   25,000   25   1,250,000   1,250   20,000,000   20,000   124,150   (116,916)   28,509
                                     
Net loss   -   -   -   -   -   -   -   (50,063)   (50,063)
                                     
Balance, May 31, 2012   25,000   25   1,250,000   1,250   20,000,000   20,000   124,150   (166,979)   (21,554)
                                     
June 15, 2012 Shares issued for debt conversion   -   -   -   -   46,000,000   46,000   -   -   46,000
                                     
October 23, 2012, Common shares issued for cash at $0.01 per share   -   -   -   -   500,000   500   4,500   -   5,000
                                     
Net loss   -   -   -   -   -   -   -   (60,613)   (60,613)
                                     
Balance, May 31, 2013   25,000   25   1,250,000   1,250   66,500,000   66,500   128,650   (227,592)   (31,167)
                                     
Return of Series B Preferred shares in exchange for cancellation of debt   (25,000)   (25)   -   -   -   -   33,886   -   33,861
                                     
Forgiveness of accumulated cash advances from shareholder of Company   -   -   -   -   -   -   17,093   -   17,093
                                     
Net loss   -   -   -   -   -   -   -   (66,560)   (66,560)
                                     
Balance, May 31, 2014   -   -   1,250,000   1,250   66,500,000   66,500   179,629   (294,152)   (46,773)

 

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

 

F-4

 

 

 
 

 

ATVROCKN

(A Development Stage Company)

Statements of Cash Flows

 

      For the year ended May 31, 2014   For the year ended May 31, 2013   From Inception (December 27, 2010) to May 31, 2014
OPERATING ACTIVITIES          
Net loss (66,560)   (60,613)   (294,152)
Adjustment to reconcile net loss to net cash used in          
  operating activities:          
    Depreciation expense 532   710   1,775
    Conversion of beneficial interest -   -   112,500
    Impairment of fixed assets 12,418   -   12,418
  Changes in operating assets and liabilities:          
    Inventory 94   (94)   -
    Accounts payable 9,988   1,762   11,773
    Accrued interest -   5,000   -
    Accrued expenses 33,200   -   35,000
Net cash used in operating activities (10,328)   (53,235)   (120,686)
               
INVESTING ACTIVITIES          
Advances from shareholder 5,328   52,702    71,953
Cash paid for purchase of fixed assets -   -      (14,192)
Net cash provided by (used in) investing activities 5,328   52,702   57,761
               
FINANCING ACTIVITIES          
Proceeds from issuance of Series A preferred stock -   -   12,500
Proceeds from issuance of Series B preferred stock -   -   25
Proceeds from capital contributions -   -   400
Proceeds from issuance of common stock -   5,000   25,000
Proceeds from long term debt (related to series B preferred stock) -   -   25,000
Net cash provided by financing activities -   5,000   62,925
               
NET INCREASE (DECREASE) IN CASH (5,000)   4,467   -
CASH - BEGINNING OF THE PERIOD 5,000   533   -
CASH - END OF THE PERIOD -   $5,000   -
               
NON-CASH ACTIVITIES          
Conversion of debt -   46,000   46,000
Conversion of promissory note and advances from shareholder 50,979   -   50,979

 

 

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

 

F-5

 
 

 

ATVROCKN

(A Development Stage Company)

Notes to the Financial Statements

May 31, 2014

 

 

NOTE 1. General Organization and Business

 

The Company was organized on December 27, 2010 (Date of Inception) under the laws of the State of Nevada, as ATVRockN, and is a Development Stage Company.

 

 

NOTE 2. Summary of Significant Accounting Policies

 

Basis of Accounting

The financial statements and accompanying notes are prepared under full accrual of accounting in accordance with generally accepted accounting principles of the United States of America ("US GAAP").

 

Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.

 

Earnings per Share

The basic earnings (loss) per share is calculated by dividing the Company's net income (loss) available to common shareholders by the weighted average number of common shares issued and outstanding during the year. The diluted earnings (loss) per share is calculated by dividing the Company's net income (loss) available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted as of the first year for any potentially dilutive debt or equity.

 

The Company has not issued any options or warrants or similar securities since inception.

 

Inventories

Inventories are stated at the lower of cost or market, using the average cost method. Cost includes materials, labor, and manufacturing overhead related to the purchase and production of inventories. We regularly review inventory quantities on hand, future purchase commitments with our suppliers, and the estimated utility of our inventory. If our review indicates a reduction in utility below carrying value, we reduce our inventory to a new cost basis through a charge to cost of revenue.

 

Revenue recognition

The Company applies the provision of FASB ASC 605, Revenue Recognition, which provides guidance on the recognition, presentation and disclosure of revenue in financial statements. ASC 605 outlines the basic criteria that must be met to recognize revenue and provides guidance for the disclosure of revenue recognition policies. The Company recognizes revenue related to product sales when (i) persuasive evidence of the arrangement exists, (ii) shipment has occurred, (iii) the fee is fixed or determinable, and (iv) collectability is reasonably assured. For the period from December 27, 2010 (inception) to May 31, 2014, the Company recognized revenues of $11,165.

 

F-6

 

 

ATVROCKN

(A Development Stage Company)

Notes to the Financial Statements

May 31, 2014

 

Dividends

The Company has not yet adopted any policy regarding payment of dividends. No dividends have been paid during the period shown.

 

Income Taxes

The provision for income taxes is the total of the current taxes payable and the net of the change in the deferred income taxes. Provision is made for the deferred income taxes where differences exist between the period in which transactions affect current taxable income and the period in which they enter into the determination of net income in the financial statements.

 

Fixed Assets

Furniture, fixtures and equipment are stated at cost less accumulated depreciation. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives, principally on a straight-line basis.

 

Year-end

The Company has selected May 31 as its year-end.

 

Advertising

Advertising is expensed when incurred. There have been no advertising costs incurred during the current period.

 

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

 

 

NOTE 3 - GOING CONCERN

 

These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business. As of May 31, 2014, the Company has recognized revenues of $11,165 and has accumulated operating losses of approximately $294,152 since inception. The Company's ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and its ability to achieve and maintain profitable operations.

 

F-7

 

 

 
 

 

ATVROCKN

(A Development Stage Company)

Notes to the Financial Statements

May 31, 2014

 

 

Management plans to raise equity capital to finance the operating and capital requirements of the Company. Amounts raised will be used to further development of the Company's products, to provide financing for marketing and promotion, to secure additional property and equipment, and for other working capital purposes. While the Company is putting forth its best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be available for operations.

 

These conditions raise substantial doubt about the Company's ability to continue as a going concern. These financial statements do not include any adjustments that might arise from this uncertainty.

 

 

NOTE 4 - SIGNIFICANT ACCOUNTING POLICIES

 

Use of Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Recent Accounting Pronouncements

The Company's management has evaluated all the recently issued accounting pronouncements through the filing date of these financial statements and does not believe that any of these pronouncements will have a material impact on the Company's financial position and results of operations.

 

 

NOTE 5 - STOCKHOLDERS' EQUITY AND CONTRIBUTED CAPITAL

 

Series B Preferred Stock

 

The Company is authorized to issue 5,000,000 shares of $0.001 par value Series B Preferred Stock. Series B Preferred Stock has liquidation and first position ownership rights on any assets owned by the Company. The Series B Preferred Stock has no voting rights and are not entitled to receive dividends. The holders of Series B Preferred Stock shall be entitled to interest payments on monies paid or loaned to the corporation for their Series B Preferred Shares and a first position in a security interest on any assets of the Company upon default of a loan to the Company, liquidation or dissolution of the Company. Further, the Company may call these shares at any time provided the holders of the Series B Preferred Stock are paid the amount of monies they paid for their Series B Preferred Stock along with any interest due. Upon the payment of principal and interest to the Series B Preferred Stock shareholders, the shares must be returned to the Company.

 

F-8

 

 

 
 

 

ATVROCKN

(A Development Stage Company)

Notes to the Financial Statements

May 31, 2014

 

On May 24, 2011, the Company issued 25,000 shares of its Series B Preferred Stock to a shareholder and former director upon execution of a Promissory Note for cash of $25,000 and a collateral security interest in the Company's molding tool. The loan was to accrue interest of $1,250 per quarter until the note is paid-in-full, with the first payment due on November 30, 2011. On January 28, 2014, the shareholder and former director forgave the debt owed and returned 25,000 shares of Series B Preferred Stock for cancellation. As of May 31, 2014, there is no Series B Preferred Stock outstanding.

 

Series A Preferred Stock

 

The Company is authorized to issue 5,000,000 shares of $0.001 par value Series A Preferred Stock, of which 1,250,000 shares are issued and outstanding. Series A Preferred Stock have no liquidation rights. Series A Preferred Stock shall not be entitled to receive any dividends nor are they entitled to any voting rights with respect to the Series A Preferred Stock. At any time and from time-to-time after the issuance of the Series A Preferred Stock, any holder may convert any or all of the shares of Series A Preferred Stock held by such holder at the ratio of one hundred (100) shares of Common Stock for every one (1) share of Series A Preferred Stock. However, the beneficial owner of such Series A Preferred Stock cannot convert their Series A Preferred stock where they will beneficially own in excess of 4.9% of the shares of the Common Stock.

 

On May 31, 2011, the Company issued 1,250,000 shares of its Series A Preferred Stock to shareholders in exchange for cash of $12,500. Each share of the Series A Preferred Stock can be exchanged for one hundred (100) shares of Common Stock of the Company. This Series A Preferred Stock was issued with a beneficial conversion feature totaling $112,500. This non-cash expense related to the beneficial conversion features of those securities and is recorded with a corresponding credit to paid-in-capital. If the issued and outstanding preferred stock were to be converted into common stock, and each beneficial owner held less than 4.9% of the stock, the common stock would be increased by 125,000,000 shares.

 

Series C Preferred Stock

 

The Company is authorized to issue 5,000,000 shares of $0.001 par value Series C Preferred Stock, of which no shares are issued and outstanding. The designation of these shares have yet to be determined by the Board of Directors.

 

F-8

 

 

 

 

 
 

 

ATVROCKN

(A Development Stage Company)

Notes to the Financial Statements

May 31, 2014

 

Common Stock

The Company is authorized to issue 185,000,000 shares of its $0.001 par value common stock, of which 66,500,000 shares are issued and outstanding.

 

On December 27, 2010, the Company issued 20,000,000 shares of its Common Stock to a founder for cash of $20,000.

 

On June 15, 2012, the Company issued 46,000,000 shares of its unregistered common stock to its sole officer/director in exchange for corporate advances he made to the Company since its inception on December 27, 2010 and for unpaid legal expenses he made on behalf of the Company. Since this is a considered an interested party transaction, under the Business Judgment Rule, the director abstained from voting, and asked each of the Company’s two other shareholders to approve this proposal. The shareholders approved this corporate action. Therefore, the issuance of shares in exchange for debt was approved by the Company’s Board of Directors and all disinterested shareholders. The shares were issued at a value of $0.001 per share, for a total debt conversion of $46,000.

 

On October 23, 2012, the Company issued 500,000 shares of registered common stock to 35 shareholders for cash of $5,000.

 

Contributed Capital

On December 27, 2010, a director of the Company contributed capital of $400 for incorporating fees.

 

On January 28, 2014, the holder of the 25,000 shares of the Company’s Series B Preferred Stock (a former director of the Company) forgave the debt owed to the Company and returned the 25,000 shares of Series B Preferred Stock for cancellation. The forgiveness of this promissory note as well as other cash advances that have been made to the Company resulted in a capital contribution in the amount of $50,979.

 

As of May 31, 2014, there have been no stock options or warrants granted.

 

 

F-9

 

 

 

 

 

 
 

 

ATVROCKN

(A Development Stage Company)

Notes to the Financial Statements

May 31, 2014

 

 

NOTE 6 - RELATED PARTY TRANSACTIONS

 

The Company does not lease or rent any property. Office services are provided without charge by a sole officer/director of the Company. Such costs are immaterial to the financial statements and, accordingly, have not been reflected therein. The sole officer/director of the Company is involved in other business activities and may, in the future, become involved in other business opportunities. If a specific business opportunity becomes available, Company’s sole office/director may face a conflict in selecting between the Company and their other business interests. The Company has not formulated a policy for the resolution of such conflicts.

 

On December 27, 2010, a former director of the Company contributed capital of $400 for incorporating fees.

 

On December 27, 2010, the Company issued 20,000,000 shares of its Common Stock to a founder for cash of $20,000.

 

During the year ended May 31, 2014, a former director of the Company advanced an additional $2,828 to the Company for working capital. These advances are unsecured, payable on demand and bears no interest. On January 28, 2014, a former director of the Company forgave the amount owed, leaving no unpaid balance as of May 31, 2014. The amounts that are included in the $50,979 which resulted in an increase in additional paid-in capital are as follows:

 

·         $25,000 promissory note along with $8,861 of interest that had accrued on promissory note;

 

·         $17,093 in advances of which $2,828 was advanced during the year ended May 31, 2014;

 

·         $25 of Series B Preferred Stock equity that was given back to the Company for cancellation

 

 

NOTE 7 - SECURED NOTE PAYABLE

 

On May 24, 2011, the Company issued 25,000 shares of its Series B Preferred Stock to a shareholder and former director upon execution of a promissory note for cash of $25,000 and an a collateral security interest in the Company's molding tool. The loan was to accrue interest of $1,250 per quarter until the note is paid-in-full, with the first payment due on November 30, 2011. On January 28, 2014, the shareholder and former director forgave the debt owed and returned 25,000 shares of Series B Preferred Stock for cancellation.

 

 

F-10

 

 

 

 

 
 

 

ATVROCKN

(A Development Stage Company)

Notes to the Financial Statements

May 31, 2014

 

 

NOTE 8 - FIXED ASSET DEPRECIATION

 

On May 25, 2011, the Company purchased a cast aluminum two-piece mold for $12,524, and on June 20, 2011 the Company purchased radio equipment for its display model for $385. Further, the Company paid for engraving of its logo into the mold for $855 on August 22, 2011, and a printing plate charge was incurred of $428. This equipment was placed into service on September 1, 2011. This equipment has a service life of 20 years. Depreciation has been calculated using the straight-line group depreciation method, whereby the cost of the fixed asset, minus the residual salvage value, is divided by the useful life of the fixed asset. Depreciation of $1,775 accumulated from the date the equipment was placed into service on September 1, 2011 to January 31, 2014. On January 31, 2014 the Company recorded an impairment charge associated with the remaining book value of the Company’s fixed asset balances in the amount of $12,418.

 

 

NOTE 9 - SUBSEQUENT EVENTS

 

The Company has evaluated subsequent events through the date the financial statements were available to be issued, with no subsequent events to report.

 

 

 

 

 

 

 

F-11

 

 

Item 9. Changes in and Disagreements With Accountants On Accounting and Financial Disclosure.

 

(a) Dismissal of Seale & Beers, CPAs

 

On February 24, 2014 (the "Dismissal Date"), the Board of Directors of ATVRockN (the "Registrant") voted to dismiss Seale and Beers, CPAs, terminating its relationship as the Registrant's independent registered public accounting firm.

 

Seale& Beers, CPAs was the independent registered public accounting firm for the Registrant’s from December 27, 2010 until February 24, 2014. None of Seale & Beers reports on the Registrant’s financial statements from December 27, 2010 through February 24, 2014, (a) contained an adverse opinion or disclaimer of opinion, or (b) was modified as to uncertainty, audit scope, or accounting principles, or (c) contained any disagreements on any matters of accounting principles or practices, financial statement disclosure, or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of Seale & Beers, would have caused it to make reference to the subject matter of the disagreements in connection with its reports. None of the reportable events set forth in Item 304(a)(1)(iv) of Regulation S-K occurred during the period in which Seale & Beers served as the Registrant’s principal independent accountants.

 

However, the report of Seale & Beers, CPAs on the financial statements of the Registrant for the years ended May 31, 2013 and May 31, 2012 did not contain any adverse opinion or disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles, except that the reports indicated that there was a substantial doubt as to the Registrant’s ability to continue as a going concern and that the financial statements did not include any adjustments that might result from the outcome of this uncertainty.

 

The Registrant has provided Seale & Beers, CPAs with a copy of this disclosure and has requested that Seale & Beers furnish it with a letter addressed to the U.S. Securities and Exchange Commission stating whether it agrees with the above statements, and if not, stating the respects in which it does not agree. A copy of the letter from Seale & Beers, CPAs addressed to the U. S. Securities and Exchange Commission dated February 24, 2014 is filed as Exhibit 16.1 to this Current Report on Form 8-K.

 

(b) Engagement of Somerset CPAs, P.C.

 

On February 24, 2014 (the "Engagement Date"), the Registrant's Board of Directors approved the appointment of and engaged Somerset CPAs, P.C., 3925 River Crossing Parkway, Post Office Box 40368, Indianapolis, IN 46240-0368, as the Registrant's independent registered public accounting firm. During the Registrant's two most recent fiscal years, the subsequent interim periods thereto, and through the Engagement Date, neither the Registrant nor anyone on

 

30

 

its behalf consulted the Current Accountants regarding either (1) the application of accounting principles to a specified transaction regarding the Company, either completed or proposed, or the type of audit opinion that might be rendered on the Company's financial statements; or (2) any matter regarding the Company that was either the subject of a disagreement (as defined in Item 304(a)(1)(iv) of Regulation S-K and related instructions to Item 304 of Regulation S-K) or a reportable event (as defined in Item 304(a)(1)(v) of Regulation S-K).

 

Item 9A. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

Our disclosure controls and procedures, as defined in Rule 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act"), are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in rules and forms adopted by the SEC, and that such information is accumulated and communicated to management, including the Chief Executive Officer and the Chief Financial Officer, to allow timely decisions regarding required disclosures.

 

Management, with the participation of the Chief Executive Officer and the Chief Financial Officer, who is also the sole member of our Board of Directors, has evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Form 10-K. Based on such evaluation, the Chief Executive Officer and the Chief Financial Officer concluded that, as of May 31, 2014, our disclosure controls and procedures were not effective. Our disclosure controls and procedures were not effective because of the "material weaknesses" described below under "Management's annual report on internal control over financial reporting," which are in the process of being remediated as described below under "Management Plan to Remediate Material Weaknesses."

 

Management's Report on Internal Control over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting, as defined in rules promulgated under the Exchange Act, is a process designed by, or under the supervision of, our Chief Executive Officer and Chief Financial Officer and affected by our Board of Directors, management and other personnel to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with GAAP. Internal control over financial reporting includes those policies and procedures that:

 

 

 

31

 
 

 

 

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

 

· provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with GAAP, and that our receipts and expenditures are being made only in accordance with authorizations of our management and our Board of Directors; and

 

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

 

Because of its inherent limitations, a system of internal control over financial reporting can provide only reasonable, not absolute, assurance that the objectives of the control system are met and may not prevent or detect misstatements. Internal control over financial reporting is a process that involves human diligence and compliance and is subject to lapses in judgment and breakdowns resulting from human failures. Internal control over financial reporting also can be circumvented by collusion or improper override. Because of such limitations, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process, and it is possible to design into the process safeguards to reduce, though not eliminate, this risk. Further, over time control may become inadequate because of changes in conditions or the degree of compliance with the policies or procedures may deteriorate.

 

Our management assessed the effectiveness of our internal control over financial reporting as of May 31, 2014. In making its assessment, management used the criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO"). Based on its assessment, management has concluded that we had certain control deficiencies described below that constituted material weaknesses in our internal controls over financial reporting. As a result, our internal controls over financial reporting was not effective as of May 31, 2014.

 

 

 

 

 

 

 

 

32

 
 

 

 

A "material weakness" is defined under SEC rules as a deficiency, or a combination of deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of a company's annual or interim financial statements will not be prevented or detected on a timely basis by the company's internal controls. As a result of management's review of the investigation issues and results, and other internal reviews and evaluations that were completed after the end of fiscal year 2013 related to the preparation of management's report on internal controls over financial reporting required for this annual report on Form 10-K, management concluded that we had material weaknesses in our control environment and financial reporting process consisting of the following:

 

1) lack of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; and

 

2) insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements.

 

We do not believe the material weaknesses described above caused any meaningful or significant misreporting of our financial condition and results of operations for the fiscal year ended May 31, 2014. However, management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.

 

Management Plan to Remediate Material Weaknesses

 

Management is pursuing the implementation of corrective measures to address the material weaknesses described below. In an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we have initiated, or plan to initiate, the following series of measures:

 

We plan to appoint one or more outside directors to our board of directors who shall be appointed to an audit committee resulting in a fully functioning audit committee who will undertake the oversight in the establishment and monitoring of required internal controls and procedures such as reviewing and approving estimates and assumptions made by management when funds are available to us. Additionally, we will create written policies and procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements

 

 

 

33

 
 

 

 

We believe the remediation measures described above will remediate the material weaknesses we have identified and strengthen our internal control over financial reporting. We are committed to continuing to improve our internal control processes and will continue to diligently and vigorously review our financial reporting controls and procedures. As we continue to evaluate and work to improve our internal control over financial reporting, we may determine to take additional measures to address control deficiencies or determine to modify, or in appropriate circumstances not to complete, certain of the remediation measures described above.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the most recent fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

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

 

 

Changes in internal controls over financial reporting

 

There was no change in our internal controls over financial reporting that occurred during the period covered by this report, that has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

 

 

Item 9B. Other Information

 

None.

 

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PART III

 

Item 10. Directors, Executive Officers and Corporate Governance.

 

(a) Identification of Directors and Executive Officers.

 

The following table sets forth certain information regarding our current directors and executive officers. Our executive officers serve one-year terms.

 

Name Age Positions and Offices Held
Hal B. Heyer, M.D. 58 President, Secretary and Director

Appointed: January 27, 2014

 

B. Work Experience

 

Hal B. Heyer, M.D., Director, President, CEO/CFO, Secretary

 

1998- Present Anesthesiologist at Northshore Anesthesia , Duluth, MN

Medical Director, Lakewalk Surgery Center, Duluth, MN

 

Although Dr. Heyer's background in is the field of Anesthesiology, he has also been active in the business community. This includes, but not limited to his active part ownership in the following start-up businesses:

 

1)      Fasetto, a software company, Cloud storage offering secure and faster transfer of data

2)      Edsense, offering educational software programs

3)      BGR Mods, a gaming company

4)      Caliber II, consoles for X-Box, manufactured in China

5)      Magtech, manufacture of flameless heaters for oil rigs

6)      Clean Waste Systems Fargo, a medical and hazardous waste disposal using ozone degradation.

 

Education:

 

1974-1977 University of Minnesota, BS Degree.

1977-1981 Medical School of Medicine, Minneapolis, MN, MD Degree

1981-1982 Residency, internal Medicine, Abbott Northwestern

1982-1984 Anesthesiology, University of Minnesota Graduate School of Medicine

 

Medical Licensure:

 

Minnesota

 

Board Certification:

 

American Board of Anesthesiology

 

(b) Involvement in Certain Legal Proceedings.

 

Our director, executive officer and control person have not been involved in any of the following events during the past ten years and which is material to an evaluation of the ability or the integrity of our directors or executive officers:

 

1. any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;

 

2. any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offences);

 

3. being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities;

 

4. being found by a court of competent jurisdiction (in a civil action), the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;

 

5. any judicial or administrative proceedings resulting from involvement in mail or wire fraud or fraud in connection with any business entity;

 

6. Any judicial or administrative proceedings based on violations of federal or state securities, commodities, banking or insurance laws and regulations, or any settlement to such actions; and

 

7. Any disciplinary sanctions or orders imposed by a stock, commodities or derivatives exchange or other self-regulatory organization.

 

Section 16(a) Beneficial Ownership Reporting Compliance

 

Section 16(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), requires our executive officers and directors, and persons who beneficially own more than ten percent of our common stock, to file initial reports of ownership and reports of changes in ownership with the SEC. Executive officers, directors and greater than ten percent beneficial owners are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file. Based upon a review of the copies of such forms furnished to us and written representations from our executive officers and directors, we believe that as of the date of this report they were not current in their 16(a) reports.

 

 

36

 

Board of Directors

 

Our board of directors currently consists of one member. Our director serves one-year terms.

 

Audit Committee

 

The company does not presently have an Audit Committee. No qualified financial expert has been hired because the company is too small to afford such expense.

 

Committees and Procedures

 

1. The registrant has no standing audit, nominating and compensation committees of the Board of Directors, or committees performing similar functions. The Board acts itself in lieu of committees due to its small size.

 

2. The view of the board of directors is that it is appropriate for the registrant not to have such a committee because its directors participate in the consideration of director nominees and the board and the company are so small.

 

3. The members of the Board who acts as nominating committee is not independent, pursuant to the definition of independence of a national securities exchange registered pursuant to section 6(a) of the Act (15 U.S.C. 78f(a).

 

4. The nominating committee has no policy with regard to the consideration of any director candidates recommended by security holders, but the committee will consider director candidates recommended by security holders.

 

5. The basis for the view of the board of directors that it is appropriate for the registrant not to have such a policy is that there is no need to adopt a policy for a small company.

 

6. The nominating committee will consider candidates recommended by security holders, and by security holders in submitting such recommendations.

 

7. There are no specific, minimum qualifications that the nominating committee believes must be met by a nominee recommended by security holders except to find anyone willing to serve with a clean background.

 

8. The nominating committee's process for identifying and evaluation of nominees for director, including nominees recommended by security holders, is to find qualified persons willing to serve with a clean backgrounds. There are no differences in the manner in which the nominating committee evaluates nominees for director based on whether the nominee is recommended by a security holder, or found by the board.

 

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Code of Ethics

 

We have not adopted a Code of Ethics for the Board and any salaried employees.

 

 

Limitation of Liability of Directors

 

Pursuant to the Nevada General Corporation Law, our Articles of Incorporation exclude personal liability for our Directors for monetary damages based upon any violation of their fiduciary duties as Directors, except as to liability for any breach of the duty of loyalty, acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, or any transaction from which a Director receives an improper personal benefit. This exclusion of liability does not limit any right which a Director may have to be indemnified and does not affect any Director's liability under federal or applicable state securities laws. We have agreed to indemnify our directors against expenses, judgments, and amounts paid in settlement in connection with any claim against a Director if he acted in good faith and in a manner he believed to be in our best interests.

 

 

Nevada Anti-Takeover Law and Charter and By-law Provisions

 

The anti-takeover provisions of Sections 78.411 through 78.445 of the Nevada Corporation Law apply to ATVRockN. Section 78.438 of the Nevada law prohibits the Company from merging with or selling more than 5% of our assets or stock to any shareholder who owns or owned more than 10% of any stock or any entity related to a 10% shareholder for three years after the date on which the shareholder acquired the ATVRockN shares, unless the transaction is approved by ATVRockN 's Board of Directors. The provisions also prohibit the Company from completing any of the transactions described in the preceding sentence with a 10% shareholder who has held the shares more than three years and its related entities unless the transaction is approved by our Board of Directors or a majority of our shares, other than shares owned by that 10% shareholder or any related entity. These provisions could delay, defer or prevent a change in control of ATVRockN

 

 

 

 

 

 

 

 

 

 

 

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Item 11. Executive Compensation.

 

The following table sets forth summary executive compensation information for the fiscal year ended May 31, 2014.

 

Compensation

 

The following summary compensation table sets forth all compensation awarded to, earned by, or paid to the named executive officer paid by ATVRockN for the last completed fiscal year.

 

Summary Compensation Table

 

 

 

      Fiscal Year Salary Bonus Awards

Compen-

sation

Total
Name Principal Position

Ending

May 31

($) ($) ($) ($) ($)
                   
J. Chad Guidry Former 2014       0 0 0 0        0
Appointed:  12/27/2010 CEO/Director 2013       0 0 0 0       0
Resigned:  1/27/2014   2012 9,000 0 0 0 9,000
    2011 3,000 0 0 0 3,000

 

Hal B. Heyer, M. D. CEO/Director 2014       0 0 0 0        0
Appointed:  1/27/2014              

 

 

We do not maintain key-man life insurance for our executive officer/director. We do not have any long-term compensation plans or stock option plans.

 

As of the date hereof, there have been no grants of stock options to purchase our Common Stock made to the executive officer named in the Summary Compensation Table at September 15, 2014.

 

Stock Option Grants

 

We did not grant any stock options to the executive officers or directors from inception through fiscal year end May 31, 2014.

 

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Outstanding Equity Awards at Fiscal Year-Ending May 31, 2014

 

We did not have any outstanding equity awards from inception through fiscal year end May 31, 2014.

 

Option Exercises for Fiscal Year-Ending May 31, 2014

 

There were no options exercised by our named executive officer from inception through fiscal year end May 31, 2014.

 

Potential Payments upon Termination or Change in Control

 

We have not entered into any compensatory plans or arrangements with respect to our named executive officer, which would in any way result in payments to such officer because of his resignation, retirement, or other termination of employment with us or our subsidiaries, or any change in control of, or a change in his responsibilities following a change in control.

 

Director Compensation

 

We did not pay our directors any compensation during fiscal years ending May 31, 2013 or May 31, 2014.

 

 

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

 

The following table presents information, to the best of our knowledge, about the ownership of our common stock on September 15, 2014 relating to those persons known to beneficially own more than 5% of our capital stock and by our named executive officer and sole director.

 

Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and does not necessarily indicate beneficial ownership for any other purpose. Under these rules, beneficial ownership includes those shares of common stock over which the stockholder has sole or shared voting or investment power. It also includes shares of common stock that the stockholder has a right to acquire within 60 days after September 15, 2014 pursuant to options, warrants, conversion privileges or other right. The percentage ownership of the outstanding common stock, however, is based on the assumption, expressly required by the rules of the Securities and Exchange Commission, that only the person or entity whose ownership is being reported has converted options or warrants into shares of ATVRockN's common stock.

 

40

 

The percentages below are calculated based on 66,000,000 shares of our common stock issued and outstanding. We do not have any outstanding options, warrants or other securities exercisable for or convertible into shares of our common stock.

 

TITLE OF CLASS NAME OF BENEFICIAL OWNER AND POSITION AMOUNT AND NATURE OF BENEFICIAL OWNERSHIP PERCENT OF CLASS BEFORE CONVERSION(1) PERCENT OF CLASS AFTER CONVERSION(2)
Common Stock Hal B. Heyer, M.D. (3) 66,000,000 99.2% 34.4%
         
Ownership upon conversion of Shareholders'      
preferred stock        
         
Common Stock Legal Beagle Services (4) 124,170,000 0.0% 64.8%
Preferred Stock Legal Beagle Services(4)(5) 1,241,700  99.3%  99.3% 
         
DIRECTORS AND OFFICERS AS A GROUP      
  (1 person) 66,000,000 99.2% 34.4%

 

(1)   Percent of Class based on 66,500,000 shares before conversion of registered preferred stock.

(2)   Percent of Class based on 191,500,000 shares after conversion of the 1,250,000 registered preferred stock.

(3)   Hal B. Heyer, M.D., 1420 London Road, Suite 100, Duluth, MN 55805.

(4)   Legal Beagle Services, 10410 Trillium Court, Noblesville, IN 46060. Arden A. Johnson is beneficial owner who exercises the sole voting and dispositive powers with respect to the shares owned and has the ultimate voting control over the shares held this entity.

(5)   At any time and from time-to-time any holder of the Preferred Convertible shares may convert any or all of the shares of Series A Convertible Preferred Stock held by such holder at the ratio of one hundred (100) shares of Common Stock for every one (1) share of Series A Convertible Preferred Stock. However, the beneficial owner of such Series A Convertible Preferred Stock cannot not convert their Series A Convertible Preferred stock where they will beneficially own in excess of 4.9% of the shares of the Common Stock.

 

If Legal Beagle Services converts their registered preferred stock to common stock, they will own 65% of our common stock. This would result in a change of control of the Company.

 

We believe that all persons named have full voting and investment power with respect to the shares indicated, unless otherwise noted in the table. Under the rules of the Securities and Exchange Commission, a person (or group of persons) is deemed to be a "beneficial owner" of a security if he or she, directly or indirectly, has or shares the power to vote or to direct the voting of such security, or the power to dispose of or to direct the disposition of such security. Accordingly, more than one person may be deemed to be a beneficial owner of the same security. A person is also deemed to be a beneficial owner of any security, which that person has the right to acquire within 60 days, such as options or warrants to purchase our common stock.

 

41

 

 

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

 

Our sole officer/director is also our primary shareholder. Our sole officer/director controls 66,000,000 shares of our common stock, or 99.2% of our outstanding common stock.

 

The Company's Director has contributed office space for our use for all periods presented. There is no charge to us for the space, and the director will not seek compensation for the use of this space.

 

Our sole officer and director, Mr. Hal B. Heyer, M.D. can be considered a promoter of ATVRockN in consideration of his participation and managing of the business of the company since its incorporation.

 

Item 14. Principal Accountant Fees and Services.

 

Somerset CPAs, P.C. served as our principal independent public accountants for reporting fiscal year ending May 31, 2014 and Seale and Beers, CPAs served as our principal independent public auditors for the year ended May 31, 2013. Aggregate fees billed to us for the years ended May 31, 2014 and May 31, 2013 for audit fees were as follows:

 

    For Year Ended May 31,                For the Year Ended May 31,  
    2014   2013  
  (1)   Audit Fees (1)  $30,000   $10,000  
  (2)   Audit-Related Fees         
  (3)   Tax Fees         
  (4)   All Other Fees        

 

Total fees paid or accrued to our principal accountant

 

(1) Audit Fees include fees billed and expected to be billed for services performed to comply with Generally Accepted Auditing Standards (GAAS), including the recurring audit of the Company's financial statements for such period included in this Annual Report on Form 10-K and for the reviews of the quarterly financial statements included in the Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.

 

 

42

 

 

 

 

Audit Committee Policies and Procedures

 

We do not have an audit committee; therefore our sole director pre-approves all services to be provided to us by our independent auditor. This process involves obtaining (i) a written description of the proposed services, (ii) the confirmation of our Principal Accounting Officer that the services are compatible with maintaining specific principles relating to independence, and (iii) confirmation from our securities counsel that the services are not among those that our independent auditors have been prohibited from performing under SEC rules. In fiscal year ending May 31, 2014, all fees paid to Somerset CPAs, P.C. were unanimously pre-approved in accordance with this policy.

 

Less than 50 percent of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

43

 

 

PART IV

 

Item 15. Exhibits, Financial Statement Schedules.

 

The following information required under this item is filed as part of this report:

 

 

(a) 1. Financial Statements

 

  Page
   
   
Management's Report on Internal Control Over Financial Reporting 31

 

Report of Independent Registered Public Accounting Firm

 

F-1

Balance Sheets

 

F-2

 

Statements of Operations

 

F-3

 

Statements of Stockholders' Deficit

 

F-4

 

Statements of Cash Flows

 

F-5

 

 

 

(b) 2. Financial Statement Schedules

 

None.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

44

 

 
 

 

Item 6 – Exhibits

 

The following exhibits are filed as part of this registration statement:

        Incorporated by reference
  Exhibit Exhibit Description Filed herewith Form Period Ending Exhibit Filing Date
  3.1 Articles of Incorporation, as currently in effect   S-1    3.1 09/19/2011
  3.2 Bylaws, as currently in effect   S-1    3.2 09/19/2011
               
  10.1 Promissory Note between ATVRockN and Dan Berger dated May 23, 2011   S-1 Aug. 31, 2011 10.1 11/08/2011
  10.2 Addendum to Promissory Note for Callable and Convertible Preferred Shares Secured by Ownership Rights in Tooling Mold dated April 13, 2012   S-1 Feb. 29, 2012 10.2 04/26/2012
  23.1 Consent of Somerset CPAs, P.C. X        
  31.1 Certification of Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. X        
  32.1 Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002. X        
101 * The following materials from this Annual Report on Form 10-K for the year ended December 31, 2013, formatted in XBRL (eXtesible Business Reporting Language(:
    (1)     Consolidated Balance Sheets at May 31, 2014 and May 31, 2013.
    (2)     Consolidated Statements of Operations for the year ended May 31, 2014, May 31, 2013 and the period from December 27, 2010 (inception) to May 31, 2014.
    (3)     Consolidated Statements of Cash Flows for the year ended May 31, 2014, May 31, 2013 and the period from April 12, 2011 (inception) to May 31, 2014.
    (4)     Notes to the financial statements
                 

 

* Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

 

45

 
 

 

 

 

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 thereunto duly authorized.

 

 

 

ATVRockN

Registrant

 
     
     
Date:  September 15, 2014        /s/  Hal B. Heyer, M.D.  
  Name: Hal B. Heyer, M.D.  
   

Title: Chief Executive Officer, President,

Director, Principal Executive, Financial,

and Accounting Officer.

 

 

         

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons in the capacities and on the dates indicated.

 

 
         
Signature   Title   Date
     

/s/ Hal B. Heyer, M.D.

(Hal B. Heyer, M.D.)

  Chairman of the Board, President and Chief Executive Officer (Principal Executive and Financial and Accounting Officer)   Sept. 15, 2014
     

 

 

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