UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

 

FORM 10-Q

 

x

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

 

For the quarterly period ended: June 30, 2016

 

OR

 

¨

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: 000-55653

 

IHO-AGRO INTERNATIONAL, INC.

(Exact name of registrant as specified in its charter)

 

Nevada		98-1191860
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

 

3101 Portofino Point, Unit 04, Coconut Creek, FL 33066

(Address of principal executive offices)

 

(416) 854-2433

(Registrant's telephone number, including area code)

 

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 at the past 90 days. Yes ¨ No x

 

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 (section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ¨   No x

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer	¨	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	x

 

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

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock: As of August 15, 2016, there were 34,959,002 shares, $0.0001 par value per share, of common stock outstanding.

 

 

 

 

IHO-Agro International, Inc.

Form 10-Q

For the Quarterly Period Ended June 30, 2016

 

Table of Contents

 

PART I – FINANCIAL INFORMATION
ITEM 1.	FINANCIAL STATEMENTS (UNAUDITED)	3
ITEM 2.	MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	9
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	11
ITEM 4.	CONTROLS AND PROCEDURES	12
PART II – OTHER INFORMATION
ITEM 1.	LEGAL PROCEEDINGS	13
ITEM 1A.	RISK FACTORS	13
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	13
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	13
ITEM 4.	MINE SAFETY DISCLOSURES	13
ITEM 5.	OTHER INFORMATION	13
ITEM 6.	EXHIBITS	13

 

 

   

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

The Company’s unaudited interim consolidated financial statements for the three and nine month periods ended June 30, 2016 and for the comparable periods in the prior year form part of this quarterly report. They are prepared in accordance with United States generally accepted accounting principles.

 

 

IHO-Agro International Inc.

 

June 30, 2016

(Expressed in U.S. dollars)

(Unaudited)

 

	Index
Balance Sheets (Unaudited)	4
Statements of Operations (Unaudited)	5
Statements of Cash Flows (Unaudited)	6
Notes to the Unaudited Financial Statements	7

 

 

IHO-Agro International Inc.

Balance Sheets

(Expressed in U.S. dollars)

(Unaudited)

 

		June 30, 2016 $				September 30, 2015 $
ASSETS
Current Assets
Cash			3,313				33,753
Accounts receivable			41,225				11,076
Prepaid expenses with related party			50,368				70,433
Total current assets			94,906				115,262
Equipment, net of accumulated depreciation			1,275				1,913
Total Assets			96,181				117,175
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable and accrued liabilities			12,093				15,750
Due to shareholders			31,238				6,185
Total Current Liabilities			43,331				21,935
Stockholders’ Equity
Common stock, 40,000,000 shares authorized, $0.0001 par value, 34,959,002 shares issued and outstanding (September 30, 2015 - 34,409,002 shares)			3,496				3,441
Additional paid-in capital			714,963				550,018
Accumulated deficit			(665,609	)			(458,219	)
Total Stockholders’ Equity			52,850				95,240
Total Liabilities and Stockholders’ Equity			96,181				117,175

 

See accompanying notes to unaudited financial statements.

  

 

IHO-Agro International Inc.

Statements of Operations

(Expressed in U.S. dollars)

(Unaudited)

 

		Three Months Ended June 30,								Nine Months Ended June 30,
		2016				2015				2016				2015
		$				$				$				$
Revenue, net			-				2,397				58,556				2,397
Operating Expenses:
General and administrative			155,658				63,289				265,946				176,581
Total Operating Expenses			155,658				63,289				265,946				176,581
Net Loss			(155,658	)			(60,892	)			(207,390	)			(174,184	)
Net Loss Per Share, Basic and Diluted			(0.00	)			(0.00	)			(0.00	)			(0.01	)
Weighted Average Shares Outstanding, Basic and Diluted			35,244,716				34,624,878				34,529,987				33,695,207

 

See accompanying notes to unaudited financial statements.

  

 

IHO-Agro International Inc.

Statements of Cash Flows

(Expressed in U.S. dollars)

(Unaudited)

 

		Nine Months Ended June 30,
		2016				2015
		$				$
Operating Activities
Net loss			(207,390	)			(174,184	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation			638				425
Stock-based compensation			120,000				16,426
Changes in operating assets and liabilities
Prepaid expenses with related party			20,065				(70,249	)
Accounts receivable			(30,149	)			(7,876	)
Accounts payable and accrued liabilities			(3,657	)			1,900
Due to shareholder			19,563				(15,781	)
Net Cash Used In Operating Activities			(80,930	)			(249,339	)
Investing Activities
Purchase of equipment			-				(2,550	)
Net Cash Used In Investing Activities			-				(2,550	)
Financing Activities
Proceeds from note payable to related party			10,990				-
Payments on note payable to related party			(5,500	)			-
Proceeds from common stock issued or subscribed			45,000				42,495
Net Cash Provided By Financing Activities			50,490				42,495
Net Increase (Decrease) in Cash			(30,440	)			(209,394	)
Cash, Beginning of Period			33,753				275,984
Cash, End of Period			3,313				66,590
Supplemental Disclosures:
Interest paid			–				–
Income taxes paid			–				–

  

See accompanying notes to unaudited financial statements.

 

 

   

IHO-Agro International Inc.

Notes to the Financial Statements

June 30, 2016

(Expressed in U.S. dollars)

(Unaudited)

 

1.

Basis of Presentation

 

IHO-Agro International Inc. (the “Company”) was incorporated under the laws of the State of Nevada, U.S. on July 29, 2014. The Company’s principal business is the marketing and distribution of all natural mineral based fertilizers. The Company has limited operations. Since inception through June 30, 2016, the Company has generated $62,118 in revenue, net, and has accumulated losses of $665,609.

 

The interim unaudited financial statements as of June 30, 2016, and for the three and nine months ended June 30, 2016 and 2015, have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information on the same basis as the annual financial statements and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments necessary to present fairly the Company's financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period. They do not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company's audited financial statements and notes thereto for the year ended September 30, 2015 filed in a Form 10-K.

 

During the nine months ended June 30, 2016, 99.9% of the Company’s revenue was generated from a single customer. 85.6% of the accounts receivable as of June 30, 2016 was from this single customer. 100% of the accounts receivable as of September 30, 2015 was from a single customer.

 

All fertilizer to fulfill customer orders is manufactured and shipped by a single related party vendor, Industrias y Manufacturas Bionaturales S.A., which is owned by the Company’s sole officer and sole director.

 

Going Concern

 

The financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. The Company has generated minimal revenue since its inception and losses are anticipated in the development of its business. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management intends to finance operating costs over the next twelve months with existing cash on hand, accounts receivables due, and private placement of common stock. Our success is dependent upon commercializing our product and our ability to obtain adequate future financing. There can be no assurance that we will be able to obtain future financing or, if obtained, what the terms of such future financing may be, or that any amount that we are able to obtain will be adequate to support our working capital requirements until we achieve profitable operations. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

 

 

  

2.

Equipment

 

Equipment is stated at cost and is depreciated over their estimated useful lives on a three-year straight-line basis.

 

		Cost				Accumulated Depreciation				June 30, 2016  Net Carrying  Value				September 30, 2015  Net Carrying Value
Computer Equipment		$	2,550			$	1,275			$	1,275			$	1,913

  

3.

Related Party Transactions

 

(a)

Accounts payable as of June 30, 2016 includes $2,050 (September 30, 2015 - $1,150) of rent owed to a shareholder for the offices of the Company.

 

(b)

As of June 30, 2016, the Company had a balance of $5,490 owing to a significant shareholder for a shareholder loan. The loan is unsecured, due on demand and bears no interest.

 

(c)

As of June 30, 2016, the company also had a balance of $1,748 owed to another significant shareholder for reimbursement of company expenses paid on its behalf.

 

(d)

The Company entered into a management consulting agreement with the Company’s sole officer and director which commenced on July 29, 2014 for consulting and other services in support of the business operations. Pursuant to the agreement, the Company paid $2,500 per month for the first two months and $6,000 per month thereafter. In addition, the Company’s sole officer and director receives a $1,000 monthly car allowance. As of June 30, 2016, there is a balance of $24,000 (September 30, 2015 - $0) owed for these services.

 

(e)

All fertilizer shipped to customers was manufactured and shipped by a Panamanian entity called Industrias y Manufacturas Bionaturales S.A., which is owned by the Company's sole officer and director. The Company shall pay Industrias y Manufacturas Bionaturales S.A. a license fee of $5,000 per year and 5% of all sub-licensing revenue. The Company makes advance payments to this entity to cover future sales orders. As of June 30, 2016, the aggregate prepaid balance to this related party was $50,368 (September 30, 2015 - $70,433), after a $47,628 reduction for cost of goods sold on sales during the nine months ended June 30, 2016.

 

4.

Common Stock

 

The Company has 40,000,000 common shares authorized with a par value of $ 0.0001 per share.

 

In November 2015 and December 2015, the Company issued an aggregate of 15 units for total proceeds of $45,000. Each unit consisted of 10,000 common shares and 5,000 share purchase warrants. Each whole share purchase warrant is exercisable at $0.60 per common share until the one-year anniversary of the first day that the common stock is traded on the OTCQB marketplace.

 

During the quarter ended June 30, 2016, the Company had the following issuances:

 

a)

In April 2016, the company issued 400,000 shares of common stock for service valued at 0.30 per common share.

 

 

5.

Share Purchase Warrants

 

Each Selling Shareholder has a warrant to purchase up to 50% of the shares owned with an exercise price of $0.60 per shares with the warrant termination on the one-year anniversary of the first day that the Common Stock is traded on the OTCQB marketplace.

 

A summary of the changes in the Company’s common share purchase warrants is presented below:

 

		Number				Weighted Average Exercise Price
Balance September 30, 2015			617,525			$	0.6
Issued			75,000				0.6
Balance June 30, 2016			692,525			$	0.6

 

As at June 30, 2016, the following common share purchase warrants were outstanding and exercisable:

 

Number of Warrants	Exercise Price	Expiry Date
692,525	$ 0.60	One year from the first day that the Common Stock is traded on the OTCQB marketplace

  

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

 

Forward-Looking Statements

 

This Quarterly Report on Form 10-Q contains forward-looking statements. For this purpose, any statements contained in this Report that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking information includes statements relating to future actions, prospective products, future performance or results of current or anticipated products, sales and marketing efforts, costs and expenses, interest rates, outcome of contingencies, financial condition, results of operations, liquidity, business strategies, cost savings, objectives of management, and other matters. You can identify forward-looking statements by those that are not historical in nature, particularly those that use terminology such as “may,” “will,” “should,” “expects,” “anticipates,” “contemplates,” “estimates,” “believes,” “plans,” “projected,” “predicts,” “potential,” or “continue” or the negative of these similar terms. The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking information to encourage companies to provide prospective information about themselves without fear of litigation so long as that information is identified as forward-looking and is accompanied by meaningful cautionary statements identifying important factors that could cause actual results to differ materially from those projected in the information.

 

These forward-looking statements are not guarantees of future performance and involve risks, uncertainties and assumptions that we cannot predict. In evaluating these forward-looking statements, you should consider various factors, including the following: (a) those risks and uncertainties related to general economic conditions, (b) whether we are able to manage our planned growth efficiently and operate profitable operations, (c) whether we are able to generate sufficient revenues or obtain financing to sustain and grow our operations, (d) whether we are able to successfully fulfill our primary requirements for cash, which are explained below under “Liquidity and Capital Resources”. We assume no obligation to update forward-looking statements, except as otherwise required under the applicable federal securities laws.

 

 

 Overview.

 

The Company was organized under the laws of the State of Nevada on July 29, 2014 and is a marketer and distributor of very unique all natural mineral based fertilizers. We do not produce the fertilizer. The Company strives to be environmentally friendly in the production of a fertilizer that we believe will reduce the worldwide dependence on chemical fertilizers and provide a safe and healthy alternative to help in the worldwide production of food.

 

In the fertilization process, there are more than 60 different minerals present in plant tissue. Farmers are well aware of the consequences of low levels of minerals in pastures, which is why animal feed is enriched with minerals. In most cases, the elements needed by a plant are also needed by animals. There are seven minerals needed in the diet of animals, and they are iron, copper, zinc, manganese, iodine, cobalt and selenium. If these elements are not present, the health of the animal is affected through slower development and depressed immune systems.

 

From inception to June 30, 2016, the Company had been undertaking development stage activities including the ongoing registration and certification of the product in various jurisdictions and countries, testing and lab work, travel and advertising, procuring agreements with qualified distribution and sales partners, accounting and administration work and production and manufacturing design.

 

The Company’s results of operations are affected by the following factors and/or circumstances: the dependence on its sole officer and director to manage operation requirements in a timely and efficient manner. This is somewhat offset by the assistance of other consulting personnel.

 

The Company’s financial condition is affected by the following factors and/or circumstances: the delay and/or inability to obtain product registration and certification in certain jurisdictions and countries that could delay or negate potential revenue. The inability to procure adequate quantities of product from the manufacturer or in a timely manner. Market conditions that would erode the selling price of fertilizer in the open market due to competition, supply and demand and increased input/raw material costs.

 

The following events and uncertainties will have the following impact on future activities; Market conditions that would erode the selling price of fertilizer in the open market due to competition, supply and demand and increased input/raw material costs. The financial condition of the manufacturer could prevent its supply of product to the company.

 

Results of Operations

 

For the three months ended June 30th, 2016 versus June 30th, 2015

 

Revenue

 

The Company recognized $-0- revenue during the three months ended June 30, 2016, comparable with $2,397 sales from the same period last year.

 

Operating Expenses

 

During the three months ended June 30, 2016 and 2015, we incurred total operating expenses of $155,658 and $63,289, respectively. This decrease was mainly due to streamlining of operations and administrative cost savings in the areas of advertising, branding and marketing,legal and professional fees, registration and filing fees, equipment rentals, and business travel. Further, a consulting expense for marketing and sales efforts in the form of stock-based compensation totaled $120,000 during the quarter versus nil in the same period last year.

 

Net Loss

 

During the three months ended June 30, 2016 and 2015, we incurred a net loss of $155,658 and $60,892, respectively, an increase of $94,766. This increase was due mainly to streamlining of operations and administrative cost savings in the areas of advertising, branding and marketing, legal and professional fees, registration and filing fees, equipment rentals, and business travel. Further, a consulting expense for marketing and sales efforts in the form of stock-based compensation totaled $120,000 during the quarter versus nil in the same period last year. As we did not generate any revenues during the three months ended June 30, 2016, our net loss equaled our operating expenses.

 

For the nine months ended June 30th, 2016 versus June 30th, 2015

 

Revenue

 

The Company recognized $58,556 in revenue from the sale of IHO Bio fertilizer product during the nine months ended June 30, 2016, comparable with $2,397 sales from the same period last year. This increase was mainly due to a significant sale of IHO Bio fertilizer to a distribution partner.

 

Operating Expenses

 

During the nine months ended June 30, 2016 and 2015, we incurred total operating expenses of $265,946 and $176,581, respectively. This increase was mainly due to streamlining of operations and administrative cost savings in the areas of advertising, branding and marketing, legal and professional fees, supplies, business travel, and stock-based compensation. Further, consulting expense for marketing and sales efforts in the form of stock-based compensation totaled $120,000 during the nine months ended June 30,2016 versus 16,426 in the same period last year.

 

Net Loss

 

During the nine months ended June 30, 2016 and 2015, we incurred a net loss of $207,390 and $174,184, respectively. This decrease was mainly due to an increase in the sale of IHO Bio fertilizer, streamlining of operations and administrative cost savings in the areas of advertising, branding and marketing, legal and professional fees, supplies, business travel, and stock-based compensation. Further, consulting expense for marketing and sales efforts in the form of stock-based compensation totaled $120,000 during the nine months ended June 30,2016 versus 16,426 in the same period last year.

 

  

Liquidity and Capital Resources

 

The Company has incurred losses and cumulative negative cash flows from operations through to September 30, 2015 and for the nine months ended June 30, 2016. The Company does not expect to be profitable for the fiscal year ended September 30, 2016. The Company expects that general and administrative expense will continue to increase and, as a result, will need additional capital to fund our operations. The Company intends to finance its operations with cash on hand combined with (i.) an unknown number of proceeds from sales from distribution partners in fiscal 2016; and (ii) proceeds of sale from the Company’s common stock at $0.60 per share on the OTCQB marketplace.

 

We have funded our operations principally from the sale of common stock. As of June 30, 2016, we had $3,313 of cash on hand and $41,225 in receivables. The cost of doing business at the current rate is approximately $14,000 per month. At the current rate, the Company has resources to last until September 2016.

 

The Company’s liquidity will be affected by the following trends; demands, commitments, events or uncertainties; the increase in rent, advertising, testing and certification/license costs, commissions to sales and distribution partners and increase in consulting and professional fees as the company grows. Demands from purchases for open terms or longer credit terms could impact cash flow.

 

Additional funding may not be available on favorable terms, if at all. The Company intends to continue to fund its business by way of equity or debt financing and advances from related parties. In the event we seek to raise additional capital through the issuance of debt or its equivalents, this will result in increased interest expense. If we raise additional capital through the issuance of equity or convertible debt securities, the percentage ownership of our company held by existing shareholders will be reduced and those shareholders may experience significant dilution. In addition, new securities may contain certain rights, preferences or privileges that are senior to those of our common stock. We cannot provide any assurance that we will be able to raise the working capital as needed in the future on terms acceptable to us, if at all.

 

If we are unable to raise capital as needed, we are required to reduce the scope of our business development activities, which could harm our business plans, financial condition and operating results, or cease our operations entirely.

 

Going Concern

 

The Company has only begun to realize revenues and has incurred net losses since inception. In addition, at June 30, 2016, there is an accumulated deficit of $665,609. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

There can be no assurance that sufficient funds required during this year or thereafter will be generated from operations or available from external sources such as debt or equity financings, or other potential sources. The inability to generate cash flow from operations or to raise capital from external sources will force the Company to substantially curtail and cease operations, therefore, having a material adverse effect on its business. Furthermore, there can be no assurance that any funds, if available, will possess attractive terms or not have a significant dilutive effect on the Company’s existing stockholders. 

  

Off-Balance Sheet Arrangements

 

The Company has no off-balance sheet arrangements.

  

Inflation

 

We do not believe that inflation has had a material effect on our results of operations.

 

Critical Accounting Policies and Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to select appropriate accounting policies and to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 or revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Intangible Assets

 

Identifiable intangible assets with indefinite lives are not amortized, but instead are tested for impairment annually, or more frequently if circumstances indicate a possible impairment may exist. Intangible assets with estimable useful lives are amortized over their respective estimated useful lives, generally on a straight-line basis, and are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value may not be recoverable.

  

Share Based Payments

 

The Company recognizes compensation expense for all equity–based payments in accordance with ASC 718 “Share-based payments". Under fair value recognition provisions, the Company recognizes equity–based compensation net of an estimated forfeiture rate and recognizes compensation cost only for those shares expected to vest over the requisite service period of the award.

 

Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).

 

The Company accounts for share–based payments granted to non–employees in accordance with ASC 505, “Equity Based Payments to Non–Employees”. The Company determines the fair value of the stock–based payment as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty’s performance is complete.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

We do not hold any derivative instruments and do not engage in any hedging activities.

  

 

ITEM 4. CONTROLS AND PROCEDURES

  

Disclosure Controls and Procedures

 

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports files under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our president (our principal executive officer, principal financial officer and principal accounting officer) to allow for timely decisions regarding required disclosure.

 

At the end of the quarter covered by this report, we carried out an evaluation, under the supervision and with the participation of our president (our principal executive officer, principal financial officer and principal accounting officer) concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this quarterly report.  

  

Changes in Internal Control over Financial Reporting:

 

There were no changes in our internal control over financial reporting during the fiscal quarter ended June 30, 2016, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 

PART II – OTHER INFORMATION

  

ITEM 1. LEGAL PROCEEDINGS

 

We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our Company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

 

ITEM 1A. RISK FACTORS

 

We believe there are no changes that constitute material changes from the risk factors previously disclosed in our Annual Report on Form 10-K, filed with the SEC on January 13, 2016.

 

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

On April 26, 2016, the Company 400,000 shares of common stock to a consultant for service rendered at a fair value of $120,000 ($0.30/share), based upon the latest cash offer price.

 

The issuance of such securities was exempt from registration pursuant to Section 4(2) of the Securities Act and Regulation D promulgated thereunder.

 

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

 

There has been no default in the payment of principal, interest, sinking or purchase fund installment, or any other material default, with respect to any indebtedness of the Company.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5. OTHER INFORMATION

 

There is no other information required to be disclosed under this item which was not previously disclosed.

 

ITEM 6. EXHIBITS

 

Exhibit		Description
31.1		Section 302 Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 *		Section 906 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.
101.INS		XBRL Instance
101.SCH		XBRL Taxonomy Extension Schema
101.CAL		XBRL Taxonomy Extension Calculations
101.DEF		XBRL Taxonomy Extension Definitions
101.LAB		XBRL Taxonomy Extension Labels
101.PRE		XBRL Taxonomy Extension Presentation

 

 

* In accordance with SEC Release 33-8238, Exhibit 32.1 is being furnished and not filed.

 

 

SIGNATURES

 

In accordance with to requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

	IHO-Agro International, Inc.
Dated: August 15, 2016	By	/s/ Ioan Hossu
		Ioan Hossu
		President, Chief Executive Officer, Chief Financial Officer, and Treasurer