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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

 

(Mark One)

 

x

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

 

 

For the quarterly period ended November 30, 2017

 

 

or

 

 

¨

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

 

 

 

For the transition period from  _____________ to ______________

 

 

Commission File Number 333-199818

 

SIRRUS CORP.

(Exact name of registrant as specified in its charter)

 

Nevada

 

81-4158931

(State or other jurisdiction of incorporation or organization)

 

(IRS Employer Identification No.)

 

11340 Lakefield Drive, Suite 200, Johns Creek, Georgia

 

30097

(Address of principal executive offices)

 

(Zip Code)

 

(888) 263-7622

(Registrant’s telephone number, including area code)

 

N/A

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

 

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

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, 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). x YES   ¨ NO

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a small reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

 

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

¨ (Do not check if a smaller reporting company)

Smaller reporting company

x

 

Emerging growth company

¨

 

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

 

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

  

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

730,533,560 common shares issued and outstanding as of January 15, 2018.

 

 
 
 
 

TABLE OF CONTENTS

 

PART I - FINANCIAL INFORMATION

 

 

Item 1.

Financial Statements

 

3

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition or Plan of Operation

 

14

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

19

 

 

Item 4.

Controls and Procedures

 

19

 

 

PART II - OTHER INFORMATION

 

 

Item 1.

Legal Proceedings

 

20

 

 

Item 1A.

Risk Factors

 

20

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

20

 

 

Item 3.

Defaults Upon Senior Securities

 

20

 

 

Item 4.

Mine Safety Disclosures

 

20

 

 

Item 5.

Other Information

 

20

 

 

Item 6.

Exhibits

 

21

 

 

SIGNATURES

 

22

  

 
2
 
Table of Contents

 

PART I - FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

SIRRUS CORP.

Consolidated Balance Sheets

(Unaudited)

 

 

 

November 30,

2017

 

 

August 31,

2017

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$ 25,737

 

 

$ 1,684

 

Total Current Assets

 

 

25,737

 

 

 

1,684

 

 

 

 

 

 

 

 

 

 

TOTAL ASSETS

 

$ 25,737

 

 

$ 1,684

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$ 316,928

 

 

$ 237,728

 

Accrued interest

 

 

7,237

 

 

 

4,823

 

Due to related parties

 

 

236,890

 

 

 

181,750

 

Short-term notes payable 

 

 

88,000

 

 

 

86,910

 

Convertible notes payable, net of unamortized debt discount of $81,815

 

 

12,435

 

 

 

4,027

 

Derivative liabilities

 

 

127,809

 

 

 

58,614

 

Total Current Liabilities

 

 

789,299

 

 

 

573,852

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS’ DEFICIT

 

 

 

 

 

 

 

 

Preferred stock, par value $0.00001 per share, 100,000,000 shares authorized, no shares issued and outstanding

 

 

-

 

 

 

-

 

Common stock, par value $0.00001 per share, 8,000,000,000 shares authorized, 1,430,533,560 shares issued and outstanding

 

 

14,305

 

 

 

14,305

 

Additional paid-in capital

 

 

60,304

 

 

 

60,304

 

Accumulated deficit

 

 

(838,171 )

 

 

(646,777 )

Total stockholders’ deficit

 

 

(763,562 )

 

 

(572,168 )

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$ 25,737

 

 

$ 1,684

 

 

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

 

 
3
 
Table of Contents

 

SIRRUS CORP.

Consolidated Statements of Operations

(Unaudited)

 

 

 

For the Three Months Ended

 

 

 

November30,

 

 

November 30,

 

 

 

2017

 

 

2016

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

General and administrative

 

$ 11,627

 

 

$ 10,052

 

Management fees

 

 

66,000

 

 

 

-

 

Professional fees

 

 

98,750

 

 

 

11,398

 

OPERATING LOSS

 

 

(176,377 )

 

 

(21,450 )

 

 

 

 

 

 

 

 

 

Other income (expenses)

 

 

 

 

 

 

 

 

Interest expense

 

 

(10,822 )

 

 

-

 

Fair value of derivative liability in excess of debt

 

 

(313,993 )

 

 

-

 

Change in fair value of derivative liability

 

 

309,798

 

 

 

-

 

Total other income (expenses)

 

 

(15,017 )

 

 

-

 

 

 

 

 

 

 

 

 

 

NET LOSS

 

$ (191,394 )

 

$ (21,450 )

 

 

 

 

 

 

 

 

 

Loss per Common Share - Basic and Diluted

 

$ (0.00 )

 

 

(0.00 )

Weighted Average Common Shares Outstanding - Basic and Diluted

 

 

1,430,533,560

 

 

 

1,430,533,560

 

 

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

 

 
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Table of Contents

 

SIRRUS CORP.
Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

For the Three Months Ended

 

 

 

November 30,

 

 

November 30,

 

 

 

2017

 

 

2016

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net loss

 

$ (191,394 )

 

$ (21,450 )

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Amortization of debt discount

 

 

8,408

 

 

 

-

 

Change in fair value of derivative liabilities

 

 

(309,798 )

 

 

-

 

Fair value of derivative liabilities in excess of debt

 

 

(313,993 )

 

 

-

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

 

79,200

 

 

 

632

 

Accrued interest

 

 

2,414

 

 

 

273

 

Due to related parties

 

 

55,140

 

 

 

-

 

Net cash used in operating activities

 

 

(42,037 )

 

 

(20,545 )

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from issuance of short term notes payable

 

 

13,140

 

 

 

28,000

 

Proceeds from issuance of convertible notes payable

 

 

65,000

 

 

 

-

 

Repayments of short term notes payable

 

 

(12,050 )

 

 

-

 

Net cash provided by financing activities

 

 

66,090

 

 

 

28,000

 

 

 

 

 

 

 

 

 

 

Net increase in cash and cash equivalents

 

 

24,053

 

 

 

7,455

 

Cash and cash equivalents - beginning of period

 

 

1,684

 

 

 

139

 

Cash and cash equivalents - end of period

 

$ 25,737

 

 

$ 7,594

 

 

 

 

 

 

 

 

 

 

Supplemental Cash Flow Disclosures

 

 

 

 

 

 

 

 

Cash paid for interest

 

$ -

 

 

$ -

 

Cash paid for income taxes

 

$ -

 

 

$ -

 

 

 

 

 

 

 

 

 

 

Non-cash financing transactions

 

 

 

 

 

 

 

 

Debt forgiven by previous related party

 

$ -

 

 

$ 17,319

 

Derivative from conversion feature

 

$ 65,000

 

 

$ -

 

Original issue discount and deferred financing cost

 

$ 3,000

 

 

$ -

 

 

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

 

 
5
 
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SIRRUS CORP.

Notes to the Consolidated Financial Statements

November 30, 2017

(Unaudited)

 

NOTE 1 - NATURE OF BUSINESS AND CONTINUANCE OF OPERATIONS

 

Sirrus Corp. (the “Company”) was formed on May 7, 2014 in Nevada. The Company was originally engaged in the business of designing, marketing and distributing electronic cigarettes (“e-cigarette”) in East Africa.

 

As of October 14, 2016, a change of control of the Company occurred, the Company now focuses on cyber security.

 

The Company has incurred a net loss of $191,394 during the three months ended November 30, 2017 and has an accumulated deficit of $838,171 as of November 30, 2017. Management intends to raise additional operating funds through equity and/or debt offerings. However, there can be no assurance management will be successful in its endeavors.

 

There are no assurances that the Company will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or bank financing necessary to support its working capital requirements. To the extent that funds generated from operations and any private placements, public offerings and/or bank financing are insufficient, the Company will have to raise additional working capital. No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company. If adequate working capital is not available to the Company, it may be required to curtail or cease its operations.

 

Due to uncertainties related to these matters, there exists a substantial doubt about the ability of the Company to continue as a going concern. The accompanying financial statements do not include any adjustments related to the recoverability or classification of asset-carrying amounts or the amounts and classification of liabilities that may result should the Company be unable to continue as a going concern.

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of Presentation

 

The accompanying unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the three months ended November 30, 2017 are not necessarily indicative of the results that may be expected for the year ending August 31, 2018. Notes to the unaudited interim financial statements that would substantially duplicate the disclosures contained in the audited financial statements for fiscal year 2017 have been omitted. This report should be read in conjunction with the audited financial statements and the footnotes thereto for the fiscal year ended August 31, 2017 included in the Company’s Form 10-K as filed with the Securities and Exchange Commission on December 15, 2017.

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Sirrus Security, Inc. a Georgia corporation. All significant intercompany transactions and balances have been eliminated in consolidation.

 

Use of Estimates

 

The preparation of financial statements in accordance 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 disclosures 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. Significant estimates include assumptions about the valuation and recognition of derivative liability, valuation allowance for deferred tax assets.

 

 
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Cash and Cash Equivalents

 

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents.

 

Basic Income (Loss) Per Share

 

Basic income (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income 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 for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as at November 30, 2017 and August 31, 2017.

 

Fair Value of Financial Instruments

 

The Company measures and discloses the estimated fair value of financial assets and liabilities using the fair value hierarchy prescribed by US generally accepted accounting principles. The fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.

 

The Company’s financial instruments consist primarily of cash, accounts payable and accrued expenses, loans payable, convertible notes and derivative liabilities. The carrying amounts of such financial instruments approximate their respective estimated fair value due to the short-term maturities and approximate market interest rates of these instruments.

 

The Black-Scholes option valuation model was used to estimate the fair value of a convertible promissory note issued to an investor. The model includes subjective input assumptions that can materially affect the fair value estimates. The expected volatility is estimated based on the most recent historical stock price of the Company. There were no transfers into or out of “Level 3” during the three months ended November 30, 2017 and year ended August 31, 2017.

 

The following table summarizes fair value measurements by level at November 30, 2017 and August 31, 2017 measured at fair value on a recurring basis:

 

November 30, 2017

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

None

 

$ -

 

 

$ -

 

 

$ -

 

 

$ -

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

$ -

 

 

$ -

 

 

$ 127,809

 

 

$

127,809

 

 

August 31, 2017

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

None

 

$ -

 

 

$ -

 

 

$ -

 

 

$ -

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

$ -

 

 

$ -

 

 

$ 58,614

 

 

$ 58,614

 

 

 
7
 
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Embedded Conversion Features

 

The Company evaluates embedded conversion features within convertible debt under ASC 815, Derivatives and Hedging, to determine whether the embedded conversion feature(s) should be bifurcated from the host instrument and accounted for as a derivative at fair value with changes in fair value recorded in income (loss). If the conversion feature does not require derivative treatment under ASC 815, the instrument is evaluated under ASC 470-20, Debt with Conversion and Other Options, for consideration of any beneficial conversion feature.

 

Derivative Financial Instruments

 

The Company does not use derivative instruments to hedge exposures to cash flow, market, or foreign currency risks. The Company evaluates all of its financial instruments, including convertible debentures, stock purchase warrants and stock options, to determine if such instruments are derivatives or contain features that qualify as embedded derivatives.

 

For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported as charges or credits to income (loss). For option-based simple derivative financial instruments, the Company uses the Black-Scholes option-pricing model to value the derivative instruments at inception and subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is re-assessed at the end of each reporting period.

 

Subsequent Events

 

The Company has evaluated all transactions from November 30, 2017 to the date that these financials were issued for disclosure consideration.

 

Recently Issued Accounting Pronouncements

 

In May 2014, the FASB issued guidance that requires companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods or services. It also requires enhanced disclosures about revenue, provides guidance for transactions that were not previously addressed comprehensively, and improves guidance for multiple-element arrangements. The guidance applies to any entity that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. In July 2015, the FASB delayed the effective date of this guidance by one year. The guidance is now effective for public companies for annual periods beginning after December 15, 2017, as well as interim periods within those annual periods using either the full retrospective approach or modified retrospective approach. The Company is currently evaluating the impacts of the new guidance on its financial statements.

 

In February 2016, Topic 842, Leases was issued to replace the leases requirements in Topic 840, Leases. The main difference between previous GAAP and Topic 842 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under previous GAAP. A lessee should recognize in the balance sheet a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. If a lessee makes this election, it should recognize lease expense for such leases generally on a straight-line basis over the lease term. The accounting applied by a lessor is largely unchanged from that applied under previous GAAP. Topic 842 will be effective for annual reporting periods beginning after December 15, 2018, including interim periods within those annual periods and is to be retrospectively applied. Earlier application is permitted. The Company is currently evaluating this guidance and the impact it will have on its financial statements.

 

 
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In November 2016, the Financial Accounting Standards Board (FASB) clarified the presentation and disclosure requirements of restricted cash. The amended standard requires entities to include restricted cash and restricted cash equivalents with cash and cash equivalents when reconciling beginning-of-period and end-of-period total cash. The amendments apply to all entities with restricted cash or restricted cash equivalents and are required to present a statement of cash flows. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The amendments are effective for public business entities for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. The Company is currently evaluating this guidance and the impact it will have on its financial statements.

 

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to reduce complexity in the accounting for employee share-based payment transactions. One of the simplifications relates to forfeitures of awards. Under current GAAP, an entity estimates the number of awards for which the requisite service period is expected to be rendered and base the accruals of compensation cost on the estimated number of awards that will vest. This ASU permits an entity to make an entity-wide accounting policy election either to estimate the number of forfeitures expected to occur or to account for forfeitures in compensation cost when they occur. This ASU is effective for annual periods beginning after December 15, 2016, including interim periods within those annual periods. Earlier application is permitted. The Company has adopted the standard and does not expect this standard to have a material impact on its financial statements and disclosures.

 

NOTE 3 - RELATED PARTY TRANSACTIONS

 

During the three months ended November 30, 2017 and 2016, the Company incurred management consulting expenses with two related parties for $66,000 and $0, respectively. As of November 30, 2017, the amount owed to these related parties was $236,890. There is no formal agreement between the parties. The Company incurs the expenses on a month-by-month basis dependent on services required as needed. Amounts paid to the parties during the three months ended November 30, 2017 and 2016 were $10,860 and $0, respectively. The consulting expenses were related to contract Chief Technical Officer and Chief Executive Officer duties. No other compensation was paid to officers of the Company.

 

NOTE 4 - PROMISSORY NOTES

 

As of November 30, 2017 and August 31, 2017, promissory notes consist of the following:

 

 

 

November 30,

 

 

August 31,

 

 

 

2017

 

 

2017

 

Promissory Note - originated in October 2016

 

$ 25,000

 

 

$ 25,000

 

 

 

 

 

 

 

 

 

 

Promissory Note - originated in November 2016

 

 

3,000

 

 

 

3,000

 

 

 

 

 

 

 

 

 

 

Promissory Note - originated in December 2016

 

 

-

 

 

 

3,810

 

 

 

 

 

 

 

 

 

 

Promissory Note - originated in January 2017

 

 

50,000

 

 

 

50,000

 

 

 

 

 

 

 

 

 

 

Promissory Note - originated in May 2017

 

 

-

 

 

 

100

 

 

 

 

 

 

 

 

 

 

Promissory Note - originated in June 2017

 

 

5,000

 

 

 

5,000

 

 

 

 

 

 

 

 

 

 

Promissory Note - originated in September 2017

 

 

2,000

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Promissory Note - originated in October 2017

 

 

3,000

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Less: current portion of notes payable

 

 

(88,000 )

 

 

(86,910 )

 

 

 

 

 

 

 

 

 

Long-term notes payable

 

$ -

 

 

$ -

 

 

 
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On October 14, 2016, the Company entered into a promissory note agreement for $25,000. The promissory note bears interest at 8%, and matured one year after issuance. As of November 30, 2017, an amount of $2,258 of interest was accrued. The note is unsecured, and currently in default.

 

On November 7, 2016, the Company entered into a promissory note agreement for $3,000. The promissory note bears interest at 8%, and matured one year after issuance. As of November 30, 2017, an amount of $255 of interest was accrued. The note is unsecured, and currently in default.

 

On December 9, 2016, the Company entered into a promissory note agreement for $3,810. The promissory note was non-interest bearing and matured in June 2017. On November 22, 2017, the loan was fully repaid.

 

On January 18, 2017, the Company entered into a promissory note agreement for $50,000. The promissory note bears interest at 8%, and matures one year after issuance. As of November 30, 2017, an amount of $3,463 of interest was accrued.

 

On May 31, 2017, the Company entered into a promissory note agreement for $1,100. The promissory note is non-interest bearing and matured in June 2017. In August 2017, a $1,000 loan repayment was made. On November 22, 2017, the loan was fully repaid.

 

On June 8, 2017, the Company entered into a promissory note agreement for $5,000. The promissory note is non-interest bearing and matured in July 2017. The note is currently in default.

 

On September 12, 2017, the Company entered into a promissory note agreement for $2,000. The promissory note bears interest at 7%, and matures in October 2017. As of November 30, 2017, an amount of $30 of interest was accrued. The note is currently in default.

 

On October 17, 2017, the Company entered into a promissory note agreement for $3,000. The promissory note bears interest at 7%, and matures in November 2017. As of November 30, 2017, an amount of $25 of interest was accrued. The note is currently in default.

 

On November 8, 2017, the Company entered into a promissory note agreement for $3,300. The promissory note is non-interest bearing with a maturity in December 2017. On November 22, 2017, the loan was fully repaid.

 

On November 17, 2017, the Company entered into a promissory note agreement for $4,840. The promissory note is non-interest bearing with a maturity in December 2017. On November 22, 2017, the loan was fully repaid.

 

NOTE 5 – CONVERTIBLE NOTES PAYABLE

 

Convertible notes payable consisted of the following at November 30, 2017 and August 31, 2017:

 

 

 

November 30

 

 

August 31

 

 

 

 

2017

 

 

 

2017

 

Convertible Note - July 2017

 

$ 26,250

 

 

$ 26,250

 

Convertible Note - November 2017

 

 

68,000

 

 

 

-

 

 

 

 

94,250

 

 

 

26,250

 

Less debt discount and debt issuance cost

 

 

(81,815

 

 

(22,223

 

 

 

12,435

 

 

 

4,027

 

Less current portion of convertible notes payable

 

 

(12,435

 

 

(4,027

Long-term convertible notes payable

 

$ -

 

 

$ -

 

 

 
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Table of Contents

 

The Company recognized amortization expense related to the debt discount and deferred financing fees of $8,408 and $0 for the three months ended November 30, 2017 and 2016, respectively, which is included in interest expense in the statements of operations.

 

10% Convertible Note – July 2017

 

On July 6, 2017, the Company issued a 10% Convertible Note in the principal amount of $26,250 for cash proceeds of $25,000 with $1,250 of financing costs. The 10% Convertible Note bears interest at the rate of 10% per annum and matures July 6, 2018. The holder is entitled to convert any portion of the outstanding and unpaid conversion amount into fully paid and non-assessable shares of common stock, upon the issuance date of the note. The conversion price is 50% of the lowest trading price of the common stock for the 20 trading days immediately prior to the applicable conversion date.

 

8% Convertible Note – November 2017

 

On November 20, 2017, the Company entered into a Securities Purchase Agreement with Adar Bays, a Florida limited liability company, providing for the purchase of seven (7) convertible notes in the aggregate principal amount of $230,000, with the first note being in the amount of $68,000 and the remaining six notes being in the amount of $27,000 each as Back-End Notes. Each note bears interest at the rate of 8% per annum and matures on November 20, 2018. The first note of $68,000 has been received by the Company on November 20, 2017, with cash received of $65,000, and $3,000 recorded as financing costs. The cash related to the remaining notes have not yet been received.

 

Each Back-End Note shall be paid for by an offsetting $27,000 promissory note issued to the Company by Adar on November 20, 2017, provided that prior to the conversion of each Back-End Note, Adar must have paid off an Adar Promissory Note in cash. The first Adar Promissory Note matures on January 20, 2018 with each additional note maturing one month thereafter until June 20, 2018, unless the Company does not meet the “current public information” requirement pursuant to Rule 144, in which case both Adar Back-End Notes and the Adar Promissory Notes may both be called. The Adar Promissory Notes are secured by the first note.

 

The above mentioned notes, at any time after 180 days, be converted all at a rate of 50% of the lowest closing bid price of the common stock as reported on the OTCQB, which the Company’s shares are traded, or any exchange upon which the common stock may be traded in the future, for the lower of (i) 20 prior trading days immediately preceding the issuance date of the Note or (ii) the 20 prior trading days including the day upon which a Notice of Conversion is received by the Company or its transfer agent.

 

NOTE 6. DERIVATIVE LIABILITIES

 

The embedded conversion options of the Company’s convertible debentures described in Note 5 contain conversion features that are accounted for as derivative liabilities. The fair value of these liabilities will be re-measured at the end of every reporting period and the change in fair value will be reported in the statement of operations as a gain or loss on derivative financial instruments.

 

The Company uses Level 3 inputs for its valuation methodology for the derivative liabilities and embedded conversion option liabilities as their fair values were determined by using the Black-Scholes option pricing model based on various assumptions. The model incorporates the price of a share of the Company’s common stock (as quoted on NASDAQ), volatility, risk free rate, dividend rate and estimated life. Significant changes in any of these inputs in isolation would result in a significant change in the fair value measurement. As required, these are classified based on the lowest level of input that is significant to the fair value measurement. The following table shows the assumptions used in the calculations:

 

 
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Three Months

Ended

 

 

Three Months

Ended

 

 

 

November 30,

2017

 

 

November 30,

2016

 

Expected term

 

1 year

 

 

 

-

 

Expected average volatility

 

280% - 492%

 

 

 

-

 

Expected dividend yield

 

 

-

 

 

 

-

 

Risk-free interest rate

 

1.44% - 1.62%

 

 

 

-

 

 

The following table summarizes the derivative liabilities included in the balance sheet at November 30, 2017 and August 31, 2017:

 

Fair Value Measurements Using Significant Observable Inputs (Level 3)

 

 

 

Balance - August 31, 2016

 

$ -

 

 

 

 

 

 

Addition of new derivative liabilities upon issuance of convertible notes as debt discounts

 

 

25,000

 

 

 

 

 

 

Fair value of derivative liability in excess of debt

 

 

31,266

 

 

 

 

 

 

Loss on change in fair value of the derivative liabilities

 

 

2,348

 

Balance - August 31, 2017

 

$ 58,614

 

 

 

 

 

 

Addition of new derivative liabilities upon issuance of convertible notes as debt discounts

 

 

65,000

 

 

 

 

 

 

Fair value of derivative liability in excess of debt

 

 

313,993

 

 

 

 

 

 

Gain on change in fair value of the derivative liabilities

 

 

(309,798 )

Balance – November 30, 2017

 

$ 127,809

 

 

NOTE 7 – CAPITAL STOCK

 

Preferred Stock

 

The Company is authorized to issue an aggregate of 100,000,000 shares of preferred stock with a par value of $0.00001 per share. As at November 30, 2017 and August 31, 2017, no preferred shares had been issued.

 

Common Stock

 

On November 22, 2017, the Company executed a written consent to approve the increase of the Company’s total authorized common shares from 200,000,000 shares to 8,000,000,000 shares with par value of $0.00001 per share and the execution of a forward split at the rate of forty shares for every one share then issued and outstanding. The outstanding shares have been restated retroactively to reflect the forward split for all periods presented.

 

As at November 30, 2017 and August 31, 2017, the Company had 1,430,533,560 shares of common stock issued and outstanding.

 

 
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NOTE 8 – SUBSEQUENT EVENTS

 

Subsequent to November 30, 2017 and through the date that these financials were issued, the Company had the following subsequent events:

 

On December 7, 2017, the Board of Directors of the Company authorized 100,000,000 shares of a Series A Non-Convertible Preferred Stock and 100,000,000 shares of a Series B Convertible Preferred Stock.

 

On December 7, 2017, the Company entered into a Share Exchange Agreement (the “Exchange Agreement”) with Linux Labs Technologies, Inc., a Georgia corporation (“Linux”), of which the Company’s Chief Technology Officer and the Chief Executive Officer, President and Chairman of the Board of Directors having voting and dispositive control. Pursuant to the Exchange Agreement, Linux exchanged 500,000,000 shares of common stock of the Company for 100,000 shares of Series A Non-Convertible Preferred Stock and exchanged 200,000,000 shares of Common Stock of the Company for 2,000,000 shares of Series B Convertible Preferred Stock of the Company. The purpose of the transaction is for the Company to improve their capital structure. The approximate value of the shares issued to Linux was $980,000, based on 700,000,000 common shares valued at $0.0014 which is the historical trading value of Sirrus’ common shares on December 7, 2017.

 

On December 9, 2017, the Company entered into a promissory note agreement with IPOS-A LLC for $3,810. The promissory note is non-interest bearing and matures in January 2018.

 

On December 12, 2017, the Company entered into a Management Services Agreement with the President, CEO, Secretary and Treasurer of the Company. In consideration for her services, the Company has agreed to pay $180,000 per year, accruing in increments of $15,000 per month. The Company also agreed to determine a commission structure and a restricted stock grant within 90 days of the agreement, and shall continue to pay or reimburse the President for a health insurance plan. The term of the Management Services Agreement is for one year, commencing on the date of the agreement, and is automatically renewable for successive one year terms unless mutually agreed to in writing.

 

On December 12, 2017, the Company entered into a Management Services Agreement with the Chief Technology Officer of the Company. In consideration for his services, the Company has agreed to pay $120,000 per year, accruing in increments of $10,000 per month. The Company also agreed to determine a commission structure and a restricted stock grant within 90 days of the agreement, and shall continue to pay or reimburse the CTO for a health insurance plan. The term of the Management Services Agreement is for one year, commencing on the date of the agreement, and is automatically renewable for successive one year terms unless mutually agreed to in writing.

 

 
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Item 2. Management’s Discussion and Analysis of Financial Condition or Plan of Operation

 

FORWARD-LOOKING STATEMENTS

 

The information set forth in this Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended, and the Private Securities Litigation Reform Act of 1995, including, among others (i) expected changes in our revenue and profitability, (ii) prospective business opportunities and (iii) our strategy for financing our business. Forward-looking statements are statements other than historical information or statements of current condition. Some forward-looking statements may be identified by use of terms such as “believes”, “anticipates”, “intends” or “expects”. These forward-looking statements relate to our plans, liquidity, ability to complete financing and purchase capital expenditures, growth of our business including entering into future agreements with companies, and plans to successfully develop and obtain approval to market our product. We have based these forward-looking statements largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy and financial needs.

 

Although we believe that our expectations with respect to the forward-looking statements are based upon reasonable assumptions within the bounds of our knowledge of our business and operations, in light of the risks and uncertainties inherent in all future projections, the inclusion of forward-looking statements in this Quarterly Report should not be regarded as a representation by us or any other person that our objectives or plans will be achieved.

 

We assume no obligation to update these forward-looking statements to reflect actual results or changes in factors or assumptions affecting forward-looking statements.

 

Our revenues and results of operations could differ materially from those projected in the forward-looking statements as a result of numerous factors, including, but not limited to, the following: the risk of significant natural disaster, the inability of the our company to insure against certain risks, inflationary and deflationary conditions and cycles, currency exchange rates, and changing government regulations domestically and internationally affecting our products and businesses.

 

You should read the following discussion and analysis in conjunction with the Financial Statements and Notes attached hereto, and the other financial data appearing elsewhere in this Quarterly Report.

 

US Dollars are denoted herein by “USD”, “$” and “dollars”.

 

As used in this quarterly report and unless otherwise indicated, the terms “we”, “us” and “our” mean Sirrus Corp., and our wholly-owned subsidiary, Sirrus Security, Inc. a Georgia corporation, unless otherwise indicated.

 

Overview

 

We were incorporated under the laws of the State of Nevada on May 7, 2014. Our original business plan was to seek to engage in the designing, marketing and distribution of electronic cigarettes (“e-cigarette”) in East Africa.

 

On October 14, 2016, the Company, Ahmed Guled (the “Selling Stockholder”) and Linux Labs Technologies, Inc., a Georgia corporation entered into a Stock Purchase Agreement, dated October 14, 2016. Ms. Sparrow Marcioni and Mr. Steven James share voting and dispositive control over Linux Labs on a 50/50 basis.

  

Pursuant to the Purchase Agreement, Linux Labs purchased 25 million shares of common stock of the Company held by the Selling Stockholder, representing approximately 69.90% of the issued and outstanding shares of the Company’s common stock, and the Indebtedness (as defined below) in consideration for an aggregate purchase price of $50,000, consisting of $10,000 in cash and $40,000 evidenced by a promissory note, dated October 14, 2016, in the principal amount of $40,000, bearing interest at the rate of 6% per annum, maturing on April 14, 2017 and secured by the Shares pursuant to a Stock Pledge Agreement dated October 14, 2016 between the Linux Labs and the Selling Stockholder. Pursuant to the Stock Purchase Agreement, $40,000 of the purchase price was allocated to the shares and $10,000 was allocated to purchase of the Indebtedness.

 

 
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Pursuant to a Debt Purchase Agreement, dated October 18, 2016, among the Company, Selling Stockholder and Linux Labs, Linux Labs purchased indebtedness owed the Selling Stockholder by the Company.

 

Upon the consummation of the Stock Purchase Agreement and the transactions contemplated thereby, there was a change in control of the Company.

 

As of October 14, 2016, a change of control of the Company occurred, new management was appointed and on October 18, 2016, the Company established a new wholly owned subsidiary, Sirrus Security Inc., a Georgia corporation. With the change of control and the formation of a wholly-owned subsidiary, the Company will now focus on cyber security.

 

On April 26, 2017, Sirrus Security, Inc. (“Sirrus Security”), a Georgia corporation and wholly-owned subsidiary of the Company entered into an Independent Contractor Agreement with American Academy Holdings LLC, a North Carolina limited liability company d/b/a Healthicity (“Healthicity”), pursuant to which Healthicity engaged Sirrus Security to perform the following services to Healthicity and its clients, including, but not limited to the following:

 

 

1.

Penetration Testing: Network Discovery, exploration, vulnerability Assessment & Reporting.

 

2.

Risk Analysis: Technical Assessment and configuration review and Security Testing and Evaluation

 

After the in-depth penetration and risk analysis, Sirrus Security will provide key findings to Healthicity, including a high level overview, an inventory of identified systems, ports, software versions, and vulnerabilities that may pose a risk, and a detailed report containing serious vulnerabilities with impacts, descriptions, and recommendations.

 

Healthicity may terminate the agreement at any time without cause effective upon five (5) working days’ prior written notice to Sirrus Security. In addition, Healthicity may terminate the agreement effective immediately if Sirrus Security is convicted of any crime or offense, fails or refuses to comply with the written policies or reasonable directive of Healthicity, is guilty of serious misconduct in connection with performance hereunder, violates HIPAA Privacy or materially breaches provisions of this agreement.

 

Under the Agreement, in connection with the services, Sirrus Security will have responsibilities with respect to the Use and/or Disclosure of Protected Health Information (“PHI”) as mandated by the Privacy Standards (45 C.F.R. Parts 160 and 164), Electronic Transactions Standards (45 C.F.R. Parts 160 and 162), and Security Standards (45 C.F.R. Parts 160, 162 and 164) promulgated under the Administrative Simplifications subtitle of the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) as well as the data breach notification requirements as promulgated under the American Recovery and Reinvestment Act of 2009 (“ARRA”).

 

The Company is currently evaluating the potential future economic benefit of the agreement and has yet to determine an accurate estimate of future revenues associated with the agreement. No revenues have been earned to date.

 

The agreement is still in effect as of the date of this filing, and the Company is continuing to work with the partner to complete the expected goals of the agreement.

 

On May 8, 2017, Sirrus Security entered into a Strategic Partnership Agreement with RelifyTime, LLC, a Nevada limited liability company (“Relify”), pursuant to which Relify has engaged Sirrus Security to develop and design a software applications program and hosting platform to be known as “Relify Time”.

 

As consideration for the development and use of the product, Relify has agreed to pay Sirrus Security a royalty fee in an amount equal to 40% of the gross profit (gross sales less cost of goods sold), commencing on the date when Relify first sells licensed services incorporating the Product until an aggregate of $500,000 has been paid to Sirrus Security.

 

 
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During the royalty period, Sirrus Security will provide maintenance and support for product. Any support and maintenance services, updates, versions or new releases after the expiration of the royalty period shall be contracted under a separate agreement between the parties to be executed no later than 30 days prior to the end of the royalty period.

 

At any time during the term of the agreement and up to one year thereafter, if Relify decides to sell the product to a third party, Sirrus Security will have a 30-day right of first refusal to acquire the product from Relify. At any time during the term of the agreement and one year thereafter, Relify shall grant Sirrus Security the right of first refusal for any financing transaction, expiring 14 days after notice is given.

 

Upon the completion of the royalty period, all intellectual property rights developed by Sirrus Security in connection with the provision of the services to Relify under the Agreement, or jointly by Sirrus Security or Relify, or by Sirrus Security pursuant to the specifications or instructions provided by Relify, shall belong exclusively to Relify. All pre-existing intellectual property rights shall remain the sole property of Sirrus Security. Notwithstanding anything contained in the Agreement, Sirrus Security shall be free to use any ideas, concepts, or know-how developed or acquired by Sirrus Security during the performance of the agreement to the extent obtained and retained by Sirrus Security’ personnel.

 

The agreement is still in effect as of the date of this filing, and the Company is continuing to work with the partner to complete the expected goals of the agreement.

 

The term of the agreement continues until the completion of the Royalty Period. The agreement may be terminated by either party upon written notice to the other, if the other party breaches any material obligation under the agreement and fails to cure such breach within 30 days of receiving notification. In the case of a termination of the agreement, Relify has agreed to pay Sirrus Security for all services rendered and work performed up to the effective date of the termination.

 

The agreement also contains customary indemnification and confidentiality provisions. Neither party may assign its rights or obligations under the agreement without the prior written consent of the other party.

 

We have not declared bankruptcy, been involved in receivership or any similar proceeding.

 

Our office is located at 11340 Lakefield Drive, Suite 200, Johns Creek, Georgia 30097 and our telephone number is (888) 263-7622. Our registered statutory office is located at 711 S. Carson Street, Suite 6, Carson City, Nevada 89701, (775) 882-4641. We do not own any property.

 

Results of Operations

 

Three Months Ended November 30, 2017 Compared to Three Months Ended November 30, 2016

 

We have not earned any revenues from inception through November 30, 2017.

 

 

 

Three Months

 

 

Three Months

 

 

 

 

 

Ended

 

 

Ended

 

 

 

 

 

November 30,

 

 

November 30,

 

 

 

 

 

2017

 

 

2016

 

 

Changes

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$ -

 

 

$ -

 

 

$ -

 

Operating Expenses

 

$ 176,377

 

 

$ 21,450

 

 

$ 154,927

 

Other Expenses

 

$ 15,017

 

 

$ -

 

 

$ 15,017

 

Net Loss

 

$ (191,394

 

$ (21,450

 

$ (169,944

 

 
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We incurred a net loss in the amount of $191,394 and $21,450 for the three months ended November 30, 2017 and 2016, respectively.

 

Operating expenses were $176,377 for the three months ended November 30, 2017, compared to $21,450 for the three months ended November 30, 2016, due to the increase in professional fees of $87,352 and management consulting fees of $66,000 incurred during the period.

 

Liquidity and Capital Resources

 

Working Capital

 

 

 

As of

 

 

As of

 

 

 

 

 

November 30,

 

 

August 31,

 

 

 

 

 

2017

 

 

2017

 

 

Changes

 

 

 

 

 

 

 

 

 

 

 

Current Assets

 

$ 25,737

 

 

$ 1,684

 

 

$ 24,053

 

Current Liabilities

 

$ 789,299

 

 

$ 573,852

 

 

$ 215,447

 

Working Capital (Deficiency)

 

$ (763,562 )

 

$ (572,168 )

 

$ (191,394 )

 

As of November 30, 2017, we had a working capital deficit of $763,562 compared to a working capital deficit of $572,168 as of August 31, 2017. As of November 30, 2017, we had current assets of $25,737 for cash and cash equivalents, as compared to current assets of $1,684 for cash and cash equivalents as of August 31, 2017. As of November 30, 2017, we had current liabilities of $789,299 composed of accounts payable and accrued liabilities of $316,928, accrued interest of $7,237, amounts due to related parties for consulting management fees of $236,890, short-term notes of $88,000, convertible notes of $12,435 and derivative liabilities of $127,809, as compared to current liabilities of $573,852 as of August 31, 2017, consisted of accounts payable and accrued liabilities of $237,728, accrued interest of $4,823, amount due to related parties for consulting management fees of $181,750, short-term notes of $86,910, convertible notes of $4,027 and derivative liabilities of $58,614

 

Cash Flows

 

 

 

Three Months

 

 

Three Months

 

 

 

 

 

Ended

 

 

Ended

 

 

 

 

 

November 30,

 

 

November 30,

 

 

 

 

 

2017

 

 

2016

 

 

Changes

 

 

 

 

 

 

 

 

 

 

 

Net cash used in operating activities

 

$ (42,037 )

 

$ (20,545 )

 

$ (21,492 )

Net cash provided by financing activities

 

$ 66,090

 

 

$ 28,000

 

 

$ 38,090

 

Net increase in cash and cash equivalents

 

$ 24,053

 

 

$ 7,455

 

 

$ 16,598

 

 

Cash Flow from Operating Activities

 

For the three months ended November 30, 2017, net cash used in operating activities was $42,037, related to our net loss of $191,394, increased by change in fair value of derivative of $309,798, and was reduced by amortization of debt discount of $8,408, fair value of derivative in excess of debt of $313,993, an increase of accounts payable and accrued liabilities of $79,200, an increase in accrued interest of $2,414 and an increase in due to related parties of $55,140.

 

 
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For the three months ended November 30, 2016, net cash used in operating activities was $20,545, reflecting our net loss of $21,450 for the period reduced by an increase in accounts payable and accrued liabilities of $632 and an increase in accrued interest of $273.

 

Cash Flow from Financing Activities

 

For the three months ended November 30, 2017, net cash provided by financing activities was $66,090, mainly attributed to proceeds from issuance of convertible notes payable of $65,000 and proceeds from issuance of short-term notes payable of $13,140, offset by repayment of short-term notes payable of $12,050.

 

For the three months ended November 30, 2016, net cash provided by financing activities was $28,000 for proceeds from issuance of short-term notes.

 

Going Concern

 

There is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay for our expenses. This is because we have not generated sufficient revenues to cover operating costs or raised enough funds. There is no assurance we will ever reach this point. Accordingly, we must raise sufficient capital from sources. We must raise cash to stay in business. In response to these problems, management intends to raise additional funds through public or private placement offerings. At this time, however, the Company does not have definitive plans to raise additional funds by way of the sale of additional securities.

 

Critical Accounting Policies

 

Use of Estimates

 

The discussion and analysis of our financial condition and results of operations is based upon the accompanying financial statements, which have been prepared in accordance with the accounting principles generally accepted in the United States of America and are expressed in United States Dollars. Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management’s application of accounting policies. We believe that understanding the basis and nature of the estimates and assumptions involved with the following aspects of our financial statements is critical to an understanding of our financial statements.

 

Revenue Recognition

 

Revenue from the sale of goods is recognized when the following conditions are satisfied:

 

·

Our company has transferred to the buyer the significant risks and rewards of ownership of the goods;

·

Our company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

·

The amount of revenue can be measured reliably;

·

It is probable that the economic benefits associated with the transaction will flow to the entity; and

·

The costs incurred or to be incurred in respect of the transaction can be measured reliably.

 

 
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Stock-Based Compensation

 

Compensation costs attributable to stock options or similar equity instruments granted are measured at the fair value at the grant date, and expensed over the expected vesting period. We did not grant any stock options during the three months ended November 30, 2017.

 

Recent Accounting Pronouncements

 

In August 2014, the Financial Accounting Standards Board issued Accounting Standards Update 2014-15, Presentation of Financial Statements - Going Concern. The Update provides U.S. GAAP guidance on management’s responsibility in evaluating whether there is substantial doubt about a company’s ability to continue as a going concern and about related footnote disclosures. For each reporting period, management will be required to evaluate whether there are conditions or events that raise substantial doubt about a company’s ability to continue as a going concern within one year from the date the financial statements are issued. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Our company is currently evaluating the effects of ASU 2014-15 on the financial statements.

 

Off-Balance Sheet Arrangements

 

We have no 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 of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

As a “smaller reporting company”, we are not required to provide the information required by this Item.

 

Item 4. Controls and Procedures

 

Management’s Report on Disclosure Controls and Procedures

 

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed 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.

 

As of the end of our three months 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), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our president (our principal executive officer, principal financial officer and principal accounting officer) concluded that our disclosure controls and procedures were not effective in providing reasonable assurance in the reliability of our reports as of the end of the period covered by this quarterly report.

 

Changes in Internal Control Over Financial Reporting

 

During the period covered by this report there were no changes in our internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 
19
 
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PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings

 

From time to time, we may become involved in litigation relating to claims arising out of its operations in the normal course of business. We are not involved in any pending legal proceeding or litigation and, to the best of our knowledge, no governmental authority is contemplating any proceeding to which we area party or to which any of our properties is subject, which would reasonably be likely to have a material adverse effect on us.

 

Item 1A. Risk Factors

 

As a “smaller reporting company”, we are not required to provide the information required by this Item.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

None.

 

Item 3. Defaults Upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

Not Applicable.

 

Item 5. Other Information

 

None.

 

 
20
 
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Item 6. Exhibits

 

The following exhibits are included as part of this report:

 

Exhibit

Number

 

Description

(31)

 

Rule 13a-14(a)/15d-14(a) Certification

31.1

 

Section 302 Certification under the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer

(32)

 

Section 1350 Certification

32.1

 

Section 906 Certification under the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer

101

 

Interactive Data Files

101.INS*

 

XBRL Instance Document

101.SCH*

 

XBRL Taxonomy Extension Schema Document

101.CAL*

 

XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF*

 

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB*

 

XBRL Taxonomy Extension Label Linkbase Document

101.PRE*

 

XBRL Taxonomy Extension Presentation Linkbase Document

 

* XBRL Information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

 

 
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SIGNATURES

 

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

SIRRUS CORP.

 

 

(Registrant)

 

 

 

 

 

Dated: January 16, 2018

 

/s/ Sparrow Marcioni

 

 

Sparrow Marcioni

 

 

President, Chief Executive Officer, Secretary,

Treasurer and Director

 

 

(Principal Executive Officer, Principal

Financial Officer and Principal Accounting Officer)

 

 

 

22