Attached files
| file | filename |
|---|---|
| EX-32.2 - EXHIBIT 32.2 - ALTAIR INTERNATIONAL CORP. | atao0520form10kexh32_2.htm |
| EX-32.1 - EXHIBIT 32.1 - ALTAIR INTERNATIONAL CORP. | atao0520form10kexh32_1.htm |
| EX-31.2 - EXHIBIT 31.2 - ALTAIR INTERNATIONAL CORP. | atao0520form10kexh31_2.htm |
| EX-31.1 - EXHIBIT 31.1 - ALTAIR INTERNATIONAL CORP. | atao0520form10kexh31_1.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-K
☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED MARCH 31, 2019
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to ___________
COMMISSION FILE NO. 333-190235
ALTAIR INTERNATIONAL CORP.
(Exact name of registrant as specified in its charter)
Nevada
(State or Other Jurisdiction of Incorporation or Organization)
99-0385465
IRS Employer Identification Number
Altair International Corp.
6501 E. Greenway Pkwy #103-412
Scottsdale, AZ 85254
Tel. (760) 413-3927
(Address and telephone number of principal executive offices)
Securities registered pursuant to Section 12(b) of the Act: None
Securities registered pursuant to Section 12(g) of the Act: None
Indicate by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☑
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☑
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 shorter period that the registrant as required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ No ☑
Indicate by check mark whether the registrant has submitted electronically 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 (X 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☐ No ☑
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act. (Check one):
| Large accelerated filer ☐ | Accelerated filer ☐ |
| Non-accelerated filer ☐ | Smaller reporting company ☑ |
| Emerging growth company ☑ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period 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 Act) Yes ☑ No ☐
As of May 15, 2020, the registrant had 496,732,553 shares of common stock issued and outstanding. No market value has been computed based upon the fact that no active trading market has been established as of May 20, 2020.
TABLE OF CONTENTS
| PART 1 | ||||||||
| ITEM 1 | Description of Business | 4 | ||||||
| ITEM 1A | Risk Factors | 5 | ||||||
| ITEM 2 | Description of Property | 5 | ||||||
| ITEM 3 | Legal Proceedings | 5 | ||||||
| ITEM 4 | Mine Safety Disclosures | 5 | ||||||
| PART II | ||||||||
| ITEM 5 | Market for Common Equity and Related Stockholder Matters | 6 | ||||||
| ITEM 6 | Selected Financial Data | 6 | ||||||
| ITEM 7 | Management's Discussion and Analysis of Financial Condition and Results of Operations | 6 | ||||||
| ITEM 7A | Quantitative and Qualitative Disclosures about Market Risk | 8 | ||||||
| ITEM 8 | Financial Statements and Supplementary Data | 9 | ||||||
| ITEM 9 | Changes In and Disagreements with Accountants on Accounting and Financial Disclosure | 17 | ||||||
| ITEM 9A (T) | Controls and Procedures | 17 | ||||||
| PART III | ||||||||
| ITEM 10 | Directors, Executive Officers, Promoters and Control Persons of the Company | 17 | ||||||
| ITEM 11 | Executive Compensation | 18 | ||||||
| ITEM 12 | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 19 | ||||||
| ITEM 13 | Certain Relationships and Related Transactions | 19 | ||||||
| ITEM 14 | Principal Accountant Fees and Services | 19 | ||||||
| PART IV | ||||||||
| ITEM 15 | Exhibits | 20 | ||||||
FORWARD-LOOKING STATEMENTS
This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”) and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). These forward-looking statements are not historical facts but rather are based on current expectations, estimates and projections. We may use words such as “anticipate,” “expect,” “intend,” “plan,” “believe,” “foresee,” “estimate” and variations of these words and similar expressions to identify forward-looking statements. These statements are not guarantees of future performance and are subject to certain risks, uncertainties and other factors, some of which are beyond our control, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted. These risks and uncertainties include the following:
| · | The availability and adequacy of working capital to meet our requirements; |
| · | Actions taken or omitted to be taken by legislative, regulatory, judicial and other governmental authorities; |
| · | Changes in our business strategy or development plans; |
| · | The availability of additional capital to support capital improvements and development; |
| · | Other risks identified in this report and in our other filings with the Securities and Exchange Commission or the SEC; and |
| · | The availability of new business opportunities. |
This report should be read completely and with the understanding that actual future results may be materially different from what we expect. The forward looking statements included in this report are made as of the date of this report and should be evaluated with consideration of any changes occurring after the date of this Report. We will not update forward-looking statements even though our situation may change in the future and we assume no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
Use of Term
Except as otherwise indicated by the context hereof, references in this report to “Company,” “ATAO,” “we,” “us” and “our” are references to Altair International Corp. All references to “USD” or United States Dollars refer to the legal currency of the United States of America.
PART I
ITEM 1. DESCRIPTION OF BUSINESS
Our Business
The Company is currently engaged in identifying and assessing new business opportunities.
The Company had previously planned to enter into license and distribution agreements for oral thin film nutraceutical products. This plan was abandoned in the 2017 fiscal year as the Company was unable to obtain the working capital required to bring the products to market.
Property Acquisitions
None.
Intellectual Property
The Company does not own any intellectual property and has yet to incur any expenses for research and development other than as disclosed herein.
Employees
As of the date of this Report, the Company has no full-time nor part-time employees. Our sole officer and director does not have a current agreement with the Company to serve in these capacities. We intend to increase the number of our employees and consultants to meet our needs as the Company grows.
WHERE YOU CAN GET ADDITIONAL INFORMATION
We file annual, quarterly and current reports, proxy statements and other information with the SEC. You may read and copy our reports or other filings made with the SEC at the SEC’s Public Reference Room, located at 100 F Street, N.W., Washington, DC 20549. You can obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. You can also access these reports and other filings electronically on the SEC’s web site, www.sec.gov.
| 4 |
ITEM 1A. RISK FACTORS
Not applicable to smaller reporting companies.
ITEM 2. DESCRIPTION OF PROPERTY
We do not own any real estate or other properties.
ITEM 3. LEGAL PROCEEDINGS
We are not currently involved in any legal proceedings and we are not aware of any pending or potential legal actions.
ITEM 4. MINE SAFETY DISCLOSURES
None.
| 5 |
PART II
ITEM 5. MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information
There is a limited public market for our common shares. Our common shares are quoted on the OTC Market under the symbol “ATAO” although there has been no active trading market in our shares since inception. Trading in stocks quoted on the OTC Market is often thin and is characterized by wide fluctuations in trading prices due to many factors that may be unrelated to a company’s operations or business prospects. We cannot assure you that there will be a market in the future for our common stock.
OTC Market securities are not listed or traded on the floor of an organized national or regional stock exchange. Instead, OTC Market securities transactions are conducted through a telephone and computer network connecting dealers in stocks. OTC Market issuers are traditionally smaller companies that do not meet the financial and other listing requirements of a regional or national stock exchange.
Number of Holders
As of May 15, 2020, 496,732,553 issued and outstanding shares of common stock were held by 73 shareholders of record.
Dividends
No cash dividends were paid on our shares of common stock during the fiscal year ended March 31, 2019. We have not paid any cash dividends since our inception and do not foresee declaring any cash dividends on our common stock in the foreseeable future.
Recent Sales of Unregistered Securities
None.
Purchase of our Equity Securities by Officers and Directors
None.
Other Stockholder Matters
None.
ITEM 6. SELECTED FINANCIAL DATA
Not applicable.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward looking statements. Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.
| 6 |
RESULTS OF OPERATIONS
We have incurred recurring losses to date. Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.
We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional funds through, among other things, the sale of equity or debt securities although no assurance can be given as to availability of funds or the terms thereof.
FISCAL YEAR ENDED MARCH 31, 2019 COMPARED TO FISCAL YEAR ENDED MARCH 31, 2018
Our net gain (loss) for the fiscal year ended March 31, 2019 was $(70,064) compared to $167,319 for the fiscal year ended March 31, 2018. During fiscal years ended March 31, 2019 and March 31, 2018, the Company did not generate any revenue.
During the fiscal year ended March 31, 2019, we incurred general and administrative expenses of $68,020 compared to $3,807 during the fiscal year ended March 31, 2018.
Expenses incurred during fiscal year ended March 31, 2019 compared to the fiscal year ended March 31, 2018 increased primarily due to increased legal and other professional fees. General and administrative expenses generally include corporate overhead and financial and administrative contracted services.
The weighted average number of shares outstanding was 288,350,127 for the fiscal year ended March 31, 2019 and 39,441,144 for the fiscal year ended March 31, 2018.
LIQUIDITY AND CAPITAL RESOURCES
FISCAL YEAR ENDED MARCH 31, 2019
As of March 31, 2019, our current assets were $2,281 and our total liabilities were $50,737. As of March 31, 2019, current assets were comprised of $136 in cash and $2,145 in advances and deposits. As of March 31, 2019, total liabilities were comprised of accounts payable of $5,200, interest payable of $1,372, loans payable to third parties of $14,165 and a promissory note due to a related party in the amount of $30,000. As of March 31, 2019, our total assets were comprised of $136 in cash and $2,145 in advances and deposits. Stockholders’ deficit was $895,882 as of March 31, 2019.
As of March 31, 2018, our current assets were $75 and our total liabilities were $78,467. As of March 31, 2018, current assets were comprised of $75 in cash. As of March 31, 2018, total liabilities were comprised of accounts payable of 17,948, interest payable of $1.354, loans payable to third parties of $14,165 and a promissory note due to a related party of $45,000. As of March 31, 2018, our total assets were comprised of $75 in cash. Stockholders’ deficit was $825,818 as of March 31, 2018.
Cash Flows from Operating Activities
We did not generate positive cash flows from operating activities in the year ended March 31, 2019. For the fiscal year ended March 31, 2019 net cash flows used in operating activities were $84,939 consisting of a net loss of $70,064, decreases of $12,748 in accounts payable and $2,145 in advances and deposits and an increase in interest payable of $18.
We did not generate positive cash flows from operating activities in the year ended March 31, 2018. For the fiscal year ended March 31, 2018 net cash flows used in operating activities were $7,448 consisting of a net gain of $167,319, decreases of $3,642 in accounts payable and $244,717 in the fair value of derivative liabilities, increases of $12,722 in interest payable and $124,287 in debt discount and a $63,417 gain on conversion of debt.
Cash Flows from Financing Activities
We have financed our operations primarily from either advances from shareholders or the issuance of equity and debt instruments.
For the year ended March 31, 2019 cash was provided by common stock issuances of $100,000.
For the year ended March 31, 2018 no cash was provided from financing activities.
| 7 |
PLAN OF OPERATION AND FUNDING
We expect that working capital requirements will continue to be funded through a combination of our existing funds, advances from shareholders and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.
Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next six months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) developmental expenses associated with a start-up business); (ii) acquisition of assets; and (iii) sales and marketing expenses. We intend to finance these expenses with further issuances of securities and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.
MATERIAL COMMITMENTS
As of the date of this Annual Report, we do not have any material commitments.
PURCHASE OF SIGNIFICANT EQUIPMENT
As of the date of this Annual Report, we do not anticipate the purchase of any significant equipment.
OFF-BALANCE SHEET ARRANGEMENTS
As of the date of this Annual Report, we do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.
GOING CONCERN
The independent auditors' report accompanying our March 31, 2019 and March 31, 2018 financial statements contains an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Not applicable to smaller reporting companies.
| 8 |
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
| Report of Independent Registered Public Accounting Firm | F–1 |
| Balance Sheets | F–2 |
| Statements of Operations | F–3 |
| Statement of Stockholders’ Equity | F–4 |
| Statements of Cash Flows | F–5 |
| Notes to the Financial Statements | F–6 |
| 9 |
MICHAEL GILLESPIE & ASSOCIATES, PLLC
CERTIFIED PUBLIC ACCOUNTANTS
10544 ALTON AVE NE
SEATTLE, WA 98125
206.353.5736
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors & Stockholders’
Altair International Corp.
Opinion on the Financial Statements
We have audited the accompanying balance sheets of Altair International Corp. as of March 31, 2019 and 2018 and the related statements of operations, changes in stockholder’s deficit, cash flows, and the related notes (collectively referred to as “financial statements”) for the periods then ended. In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of March 31, 2019 and 2018 and the results of its operations and its cash flows for the periods then ended, in conformity with accounting principles generally accepted in the United States of America.
Going Concern
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note #2 to the financial statements, although the Company has limited operations it has yet to attain profitability. This raises substantial doubt about its ability to continue as a going concern. Management’s plan in regard to these matters is also described in Note #2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
/S/ MICHAEL GILLESPIE & ASSOCIATES, PLLC
We have served as the Company’s auditor since 2017.
Seattle, Washington
May 20, 2020
| F-1 |
| ALTAIR INTERNATIONAL CORP. | ||||||||
| BALANCE SHEETS | ||||||||
| AUDITED | ||||||||
| March 31, 2019 | March 31, 2018 | |||||||
| ASSETS | ||||||||
| Current Assets | ||||||||
| Cash | $ | 136 | $ | 75 | ||||
| Advances and deposits | 2,145 | — | ||||||
| Total current assets | 2,281 | 75 | ||||||
| Total assets | $ | 2,281 | $ | 75 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
| Current Liabilities | ||||||||
| Accounts payable | $ | 5,200 | $ | 17,948 | ||||
| Loans payable | 14,165 | 14,165 | ||||||
| Interest payable | 1,372 | 1,354 | ||||||
| Promissory note due to related party | 30,000 | 45,000 | ||||||
| Total current liabilities | 50,737 | 78,467 | ||||||
| Total Liabilities | 50,737 | 78,467 | ||||||
| Stockholders' Equity (Deficit) | ||||||||
| Common Stock, $0.001 par value, 2,000,000,000 shares authorized; 496,732,553 shares issued and outstanding at March 31, 2019 (47,747,245 at March 31, 2018) | 496,733 | 47,747 | ||||||
| Additional paid-in-capital | 350,693 | 432,052 | ||||||
| Common Stock subscribed | — | 267,627 | ||||||
| Accumulated deficit | (895,882 | ) | (825,818 | ) | ||||
| Total stockholders' equity (deficit) | (48,456 | ) | (78,392 | ) | ||||
| Total liabilities and stockholders's equity (deficit) | $ | 2,281 | $ | 75 | ||||
| The accompanying notes are an integral part of these financial statements | ||||||||
| F-2 |
| ALTAIR INTERNATIONAL CORP. | ||||||||
| STATEMENTS OF OPERATIONS | ||||||||
| AUDITED | ||||||||
Year ended March 31, 2019 | Year ended March 31, 2018 | |||||||
| Expenses | ||||||||
| Total General and Administrative expenses | $ | 68,020 | $ | 3,807 | ||||
| Gain on conversion of debt | — | (63,417 | ) | |||||
| Derivative expense | — | (244,717 | ) | |||||
| Interest expense | 2,044 | 137,008 | ||||||
| Loss (gain) before income taxes | 70,064 | (167,319 | ) | |||||
| Income taxes | — | — | ||||||
| Net loss (gain) | $ | 70,064 | $ | (167,319 | ) | |||
| Loss (gain) per share - Basic | $ | 0.0002 | $ | (0.004 | ) | |||
| Weighted Average Shares - Basic | 288,350,127 | 39,441,144 | ||||||
| The accompanying notes are an integral part of these financial statements. | ||||||||
| F-3 |
| ALTAIR INTERNATIONAL CORP. | ||||||||||||||||||||||||
| STATEMENTS OF STOCKHOLDERS' DEFICIT | ||||||||||||||||||||||||
| AUDITED | ||||||||||||||||||||||||
| Number of Common Shares | Amount | Additional Paid-In-Capital | Capital Stock Subscribed | Accumulated Deficit | Total | |||||||||||||||||||
| Balance at March 31, 2016 | 29,947,000 | $ | 29,947 | $ | 271,850 | — | $ | (256,363 | ) | $ | 45,434 | |||||||||||||
| Common shares issued on conversion of Promissory Notes | 2,000,000 | 2,000 | 18,000 | — | — | 20,000 | ||||||||||||||||||
| Common shares issued for debt | 10,000 | 10 | 90 | — | — | 100 | ||||||||||||||||||
| Common stock subscribed | — | — | — | 30,000 | — | 30,000 | ||||||||||||||||||
| Net loss for the year ended March 31, 2017 | — | — | — | — | (736,774 | ) | (736,774 | ) | ||||||||||||||||
| Balance at March 31, 2017 | 31,957,000 | $ | 31,957 | $ | 289,940 | $ | 30,000 | $ | (993,137 | ) | $ | (641,240 | ) | |||||||||||
| Common shares issued on conversion of Promissory Notes | 15,790,245 | 15,790 | 142,112 | — | — | 157,902 | ||||||||||||||||||
| Common Stock subscribed | — | — | — | 237,627 | — | 237,627 | ||||||||||||||||||
| Net income for the year ended March 31, 2018 | — | — | — | — | 167,319 | 167,319 | ||||||||||||||||||
| Balance at March 31, 2018 | 47,747,245 | $ | 47,747 | $ | 432,052 | $ | 267,627 | $ | (825,818 | ) | $ | (78,392 | ) | |||||||||||
| Common shares issued for prior period subscriptions | 26,762,638 | 26,763 | 240,864 | (267,627 | ) | — | — | |||||||||||||||||
| Common shares issued for cash | 422,222,670 | 422,223 | (322,223 | ) | — | — | 100,000 | |||||||||||||||||
| Net loss for the year ended March 31, 2019 | — | — | — | — | (70,064 | ) | (70,064 | ) | ||||||||||||||||
| Balance at March 31, 2019 | 496,732,553 | $ | 496,732 | $ | 350,694 | $ | — | $ | (895,882 | ) | $ | (48,456 | ) | |||||||||||
| The accompanying notes are an integral part of these financial statements. | ||||||||||||||||||||||||
| F-4 |
| ALTAIR INTERNATIONAL CORP. | ||||||||
| STATEMENTS OF CASH FLOWS | ||||||||
| AUDITED | ||||||||
Year ended March 31, 2019 | Year ended March 31, 2018 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
| Net gain (loss) | $ | (70,064 | ) | $ | 167,319 | |||
| Adjustments to reconcile net loss to net cash used in operating activities | ||||||||
| Changes in: | ||||||||
| Advances and deposits | (2,145 | ) | — | |||||
| Accounts payable | (12,748 | ) | (3,642 | ) | ||||
| Interest payable | 18 | 12,722 | ||||||
| Fair value of derivative liabilities | — | (244,717 | ) | |||||
| Gain on conversion of debt | — | (63,417 | ) | |||||
| Debt discount | — | 124,287 | ||||||
| (84,939 | ) | (7,448 | ) | |||||
| CASH FLOW FROM FINANCING ACTIVITIES | ||||||||
| Proceeds from common stock subscriptions | 100,000 | — | ||||||
| Payments on Promissory Note due to related party | (15,000 | ) | — | |||||
| 85,000 | — | |||||||
| NET INCREASE IN CASH AND CASH EQUIVALENTS | 61 | (7,448 | ) | |||||
| CASH AND CASH EQUIVALENTS | ||||||||
| Beginning of year | 75 | 7,523 | ||||||
| End of year | $ | 136 | $ | 75 | ||||
| Supplemental disclosures of cash flow information | ||||||||
| Taxes paid | $ | — | $ | — | ||||
| Interest paid | $ | — | $ | — | ||||
| Non-Cash Financing and Investing Activities | ||||||||
| Capital Stock subscribed for | ||||||||
| Conversion of loans from third parties | $ | — | $ | 30,000 | ||||
| Conversion of Promissory Notes to third parties | — | 332,213 | ||||||
| Conversion of Promissory Note to related party | — | 39,373 | ||||||
| Accrued Interest on Promissory Notes | — | 23,943 | ||||||
| $ | — | $ | 425,529 | |||||
| Interest expense - debt discount in period | $ | — | $ | 124,287 | ||||
| Derivative Liability on issuance of Promissory Notes | $ | — | $ | — | ||||
| Reduction of derivative liability in period | $ | — | $ | 252,896 | ||||
| Reduction of derivative liability - mark to market on | ||||||||
| conversion of Promissory Notes | — | 55,239 | ||||||
| $ | — | $ | 308,135 | |||||
| The accompanying notes are an integral part of these financial statements. | ||||||||
| F-5 |
ALTAIR INTERNATIONAL CORP.
NOTES TO THE FINANCIAL STATEMENTS
MARCH 31, 2019 and MARCH 31, 2018
AUDITED
NOTE 1 - ORGANIZATION AND BUSINESS OPERATIONS
Organization and Description of Business
ALTAIR INTERNATIONAL CORP. (the “Company”) was incorporated under the laws of the State of Nevada on December 20, 2012. The Company’s physical address is 18934 N 92nd Way, Scottsdale, AZ 85255. The Company is in the development stage as defined under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 915-205 "Development-Stage Entities.”
The Company is currently engaged in identifying and assessing new business opportunities.
The Company previously planned to engage in the distribution of oral thin film nutraceutical products.
This plan was abandoned in the 2017 fiscal year due to a lack of working capital required to introduce the products to market.
Since inception (December 20, 2012) through March 31, 2019, the Company has not generated any revenue and has accumulated losses of $895,882.
In management’s opinion all adjustments necessary for a fair statement of the results for the interim periods have been made, and that all adjustments have been made to maintain the books in accordance with GAAP. Furthermore, sufficient disclosures have been made in order to ensure that the interim financial statements will not be misleading.
NOTE 2 - GOING CONCERN
These 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 incurred losses since inception resulting in an accumulated deficit of $895,882 as of March 31, 2019 and further losses are anticipated in the development of its business raising 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 obtaining 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 and loans from directors and/or private placement of common stock.
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company as of and for the years ending March 31, 2019 and 2018.
Cash and Cash Equivalents
For purposes of the statement of cash flows, the Company considers all highly liquid instruments purchased with an original maturity of three months or less to be cash equivalents.
The Company's bank accounts are deposited in insured institutions. The funds are insured up to $250,000. At March 31, 2019 the Company's bank deposits did not exceed the insured amounts.
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Basic and Diluted Income (Loss) Per Share
The Company computes loss per share in accordance with “ASC-260”, “Earnings per Share” which requires presentation of both basic and diluted earnings per share on the face of the statement of operations. Basic loss per share is computed by dividing net loss available to common shareholders by the weighted average number of outstanding common shares during the period. Diluted loss per share gives effect to all dilutive potential common shares outstanding during the period. Dilutive loss per share excludes all potential common shares if their effect is anti-dilutive.
Income Taxes
The Company follows the liability method of accounting for income taxes. Under this method, deferred income tax assets and liabilities are recognized for the estimated tax consequences attributable to differences between the financial statement carrying values and their respective income tax basis (temporary differences). The effect on deferred income tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
Fair Value of Financial Instruments
FASB ASC 820 "Fair Value Measurements and Disclosures" establishes a three-tier fair value hierarchy, which prioritizes the inputs in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market.
These tiers include:
Level 1: defined as observable inputs such as quoted prices in active markets;
Level 2: defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and
Level 3: defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
The carrying amounts of financial assets and liabilities, such as cash and accrued liabilities approximate their fair values because of the short maturity of these instruments.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Reclassifications
Certain reclassifications have been made to the prior period financial information to conform to the presentation used in the financial statements for the year ended March 31, 2019.
NOTE 4 - LOAN ADVANCES
On April 10, 2018, the Company entered into a non-binding Memorandum of Understanding with Dr. Judy Pham wherein Dr. Pham agreed to provide up to $100,000 in equity financing to assist with a corporate reorganization including bringing the Company current in its regulatory filings. On completion of the reorganization and the issuance of capital stock in consideration for the funds advanced, Dr. Pham became the owner of 85% of the issued and outstanding common shares of the Company.
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NOTE 5 – LOANS PAYABLE
During the fiscal year ended March 31, 2016, the Company obtained a loan from a third party in the amount of $4,175. A further $9,990 was loaned to the Company in the 2017 fiscal year. This loan is non-interest bearing, is unsecured and has no fixed terms of repayment.
NOTE 6 – COMMON STOCK
On August 24, 2018 the Company filed an amendment to its Articles of Incorporation increasing the number of authorized common shares from 75,000,000 to 2,000,000,000 with a par value of $0.001 per share.
The Company had 31,957,000 common shares issued and outstanding at March 31, 2017.
During the twelve month period ended March 31, 2018, the Company received a notice for the conversion of $157,902 of a convertible note and issued 15,790,245 common shares to the note holder. The Company received further notices for the conversion of $237,627 of convertible Promissory Notes into 26,762,638 common shares. These shares were not issued from Treasury until April 19, 2018. The Company had 47,747,245 common shares issued and outstanding at March 31, 2018.
During the twelve month period ended March 31, 2019, the Company converted $100,000 in cash advances from a third party into 422,222,670 common shares. At March 31, 2019 there were 496,732,553 common shares issued and outstanding.
NOTE 7 – RELATED PARTY TRANSACTIONS
On September 29, 2017, a Promissory Note (the ‘Note’) in the principal amount of $45,000 was issued to the Company’s sole officer and director for loans made to the Company in prior periods. The Note is unsecured, and bears interest at 6% per annum. The Note matured on March 31, 2018. On June 29, 2018, the Company made a partial repayment of $15,000 on the Note. The balance of the Note was repaid through a cash payment of $20,000 and the issuance of 11,000,000 valued at $0.001 per share subsequent to the year end.
On April 10, 2018, the Company agreed to pay the sole officer and director of the company $2,500 per month for the provision of management and financial services. $22,500 has been paid and $5,000 remains payable pursuant to this agreement.
NOTE 8 – SUBSEQUENT EVENTS
Subsequent to March 31, 2019 the Company entered into the following material transactions:
| 1) | The Company issued three 8% Convertible Promissory Notes as follows: |
| Date | Holder | Amount |
| 5/11/2020 | Williams Ten LLC | $ 15,000 |
| 5/13/2020 | EROP Capital LLC | $ 20,000 |
| 5/18/2020 | Thirty 05 LLC | $ 15,000 |
| The Notes bear interest at the rate of 8% per annum and have terms of one year. The Notes have conversion rights allowing for the conversion of amounts due at $0.25 per share or 80% of the lowest closing bid price of the Company’s common stock in the 15 days prior to conversion. | ||
| 2) | On April 29, 2020 the Company entered into a General Services Agreement with Alan Smith, a director and the Company’s sole officer for the performance of duties of a CEO including the provision of management and financial services. The Agreement commenced May 1, 2020 and will remain in full force and effect until December 31, 2020. | |
| Under the terms of the Agreement, Alan Smith will receive the following compensation: |
| i) | A monthly fee of $2,500; |
| ii) | Payment of past fee accruals in cash in the amount $5,000; and |
| iii) | Settlement of the of the outstanding balance of the Promissory Note due to Alan Smith in the amount of $30,000 plus accrued interest through the payment of $20,000 in cash and the issuance of 11,000,000 common shares at $0.001 per share. |
In accordance with ASC 855-10, the Company has analyzed its operations from March 31, 2019 to May 20, 2020 and has determined that it has no other material subsequent events to disclose in these financial statements.
END OF NOTES TO FINANCIAL STATEMENTS
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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES.
Disclosure Controls and Procedures
Based on an evaluation as of the date of the end of the period covered by this report, our Chief Executive Officer and Chief Financial Officer, conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as required by Exchange Act Rule 13a-15. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of March 31, 2019 to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified by the SEC’s rules and forms.
Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in our reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to management, including our Chief Executive Officer and our Chief Financial Officer, to allow timely decisions regarding required disclosure.
Management’s Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate control over financial reporting (as defined in Rule 13a-15(f) promulgated under the Exchange Act. Our management assessed the effectiveness of our internal control over financial reporting as of March 31, 2019. In making this assessment management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the criteria in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013) (COSO). Our management has concluded that, as of March 31, 2019, our internal control over financial reporting is effective based on these criteria.
Changes in Internal Control and Financial Reporting
There has been no change in our internal control over financial reporting identified in connection with our evaluation we conducted of the effectiveness of our internal control over financial reporting as of March 31, 2019, that occurred during our fourth fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by the Company’s registered public accounting firm pursuant to temporary rules of the SEC that permit the Company to provide only management’s report in this annual report
PART III
Item 10. Directors, Executive Officers and Corporate Governance
DIRECTORS AND EXECUTIVE OFFICERS
The name, age and titles of our executive officer and director is as follows:
| Name and Address of Executive | ||||||
| Officer and/or Director | Age | Position | ||||
| Alan M. Smith | 69 | President, Treasurer, Secretary and Director | ||||
| 6501 E. Greenway Pkwy #103-412 | (Principal Executive, Financial and Accounting Officer) | |||||
| Scottsdale, AZ 85254 | ||||||
| Leonard Lovallo | 38 | Director | ||||
| 32 Chalfonte Avenue | ||||||
| Pittsburgh, PA 15229 | ||||||
Effective October 16, 2014, Homero Giovanni Penaherrera Zavala (“Mr. Zavala”) resigned from his positions as the current President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Director of the Company. Mr. Zavala’s resignation was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies, practices, or otherwise.
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On October 16, 2014, Alan Smith (“Mr. Smith”) was appointed to serve as the Company’s President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer, and Director of the Company to serve until the next annual meeting or until his successor is duly appointed. On October 16, 2014, Mr. Smith accepted such appointment. As of March 31, 2019, Mr. Smith owned 5.12% of the outstanding shares of our common stock (43.98% as at March 31, 2018).
During the past five years, Alan Smith, as President and CEO of Evolution Equities Corporation, has provided independent financial consulting services to a variety of startup and development stage companies in the technology, resource and consumer products sectors. These services have included corporate reorganizations and restructuring, the development of internal systems and controls and assistance with financing in both the private and public markets. From March 2014, Mr. Smith has acted as an officer and director of Mountain High Acquisitions Corp. (MYHI), a publicly held Colorado corporation. Additionally, Mr. Smith has been an active investor in a number of startup ventures while managing his own personal equity portfolio. Mr. Smith is a Chartered Accountant and has provided audit, tax and financial consulting services to a wide variety of small to medium sized companies during his 35 year career. Mr. Smith obtained his Chartered Accountant designation in 1978 from the Institute of Chartered Accountants of Ontario. He was also a member of the Institute of Chartered Accountants of British Columbia from 1980 until his retirement in 1999. Additionally, Mr. Smith earned a Master’s Degree in Business Administration in 1975 from Queen’s University at Kingston, Ontario and a Bachelor of Applied Science (Civil Engineering) in 1973, also from Queen’s University.
During the past ten years, Mr. Smith has not been the subject to any of the following events:
1. Any bankruptcy petition filed by or against any business of which Mr. Smith was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time.
2. Any conviction in a criminal proceeding or being subject to a pending criminal proceeding.
3. An order, judgment, or decree, not subsequently reversed, suspended or vacated, or any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting Mr. Smith’s involvement in any type of business, securities or banking activities.
4. Found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Future Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.
5. Was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right to engage in any activity described in paragraph (f)(3)(i) of this section, or to be associated with persons engaged in any such activity;
6. Was found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated;
7. Was the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:
i. Any Federal or State securities or commodities law or regulation; or
ii.Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or
iii Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or
8. Was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.
AUDIT COMMITTEE
We do not have an audit committee financial expert. We do not have an audit committee financial expert because we believe the cost related to retaining a financial expert at this time is prohibitive. Further, because we have no operations at the present time, we believe the services of a financial expert are not warranted.
ITEM 11. EXECUTIVE COMPENSATION
The table below summarizes all compensation awarded to, earned by, or paid to our executive officers by any person for all services rendered in all capacities to us for the fiscal period from our incorporation on December 20, 2012 to March 31, 2019.
SUMMARY COMPENSATION TABLE
Summary Compensation Table
| Name and | Year | Salary | Bonus | Stock | Option | Non-Equity Incentive | All Other | Total | ||||||||||||||||||||||||
| Principal | ($) | ($) | Awards | Awards | Plan | Compensation | ($) | |||||||||||||||||||||||||
| Position | ($) | ($) | Compensation | ($) | ||||||||||||||||||||||||||||
| ($) | ||||||||||||||||||||||||||||||||
| Homero Giovanni | 2012 | |||||||||||||||||||||||||||||||
| Penaherrera Zavala, | 2013 | -0- | -0- | -0- | -0- | -0- | -0- | -0- | ||||||||||||||||||||||||
| President, Secretary | 2014 | |||||||||||||||||||||||||||||||
| and Treasurer | ||||||||||||||||||||||||||||||||
| Alan Smith, | 2014 | -0- | -0- | -0- | -0- | -0- | -0- | -0- | ||||||||||||||||||||||||
| President | 2015 | -0- | -0- | -0- | -0- | -0- | -0- | -0- | ||||||||||||||||||||||||
| Secretary and | 2016 | -0- | -0- | -0- | -0- | -0- | -0- | -0- | ||||||||||||||||||||||||
| Treasurer | 2017 | -0- | -0- | -0- | -0- | -0- | $ | 26,585 | $ | 26,585 | ||||||||||||||||||||||
| 2018 | -0- | -0- | -0- | -0- | -0- | $ | 6,765 | $ | 6,765 | |||||||||||||||||||||||
| 2019 | -0- | -0- | -0- | -0- | -0- | $ | 22,500 | $ | 22,500 | |||||||||||||||||||||||
On April 29, 2020 the Company entered into a contract with Alan Smith for the provision of CEO services from May 1, 2020 to December 31, 2020. The contract calls for payment of a monthly $2,500 fee and settlement of current amounts payable to Mr. Smith. See Subsequent Event note.
As of March 31, 2019, we had no pension plans or compensatory plans or other arrangements which provide compensation in the event of a termination of employment or a change in our control.
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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The following table provides certain information regarding the ownership of our common stock, as of the date of the filing of this annual report by:
| • | each of our executive officers; | ||
| • | each director; | ||
| • | each person known to us to own more than 5% of our outstanding common stock; and | ||
| • | all of our executive officers and directors and as a group. |
| Title of Class | Name and Address of Beneficial Owner | Amount and Nature of Beneficial Ownership | Percentage | |||||
| Common Stock | Alan
Smith 6501 E Greenway Pkwy #103-412 Scottsdale, AZ 95254 | 34,984,063 shares of common stock (direct) | 6.84 | % | ||||
| Common Stock | Leonard Lovallo 32 Chalfonte Avenue Pittsburgh, PA 15229 | 4,000,000 shares of common stock (direct) | 0.78 | % | ||||
| All officers and directors | 38,984,063 shares of common stock | 7.62 | % | |||||
The percent of class is based on 511,732,553 shares of common stock issued and outstanding as of the date of this annual report.
ITEM 13. CERTAIN RELATIONSHIPS, RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
During the year ended March 31, 2019, we had not entered into any transactions with our sole officer or director, or persons nominated for these positions, beneficial owners of 5% or more of our common stock, or family members of these persons wherein the amount involved in the transaction or a series of similar transactions exceeded the lesser of $120,000 or 1% of the average of our total assets for the last three fiscal years except as noted below.
On September 29, 2016, the Company issued a Convertible Promissory Note in the principal amount of $84,373.25 to Evolution Equities Corporation (“Evolution”), a related company, as consideration for $84,373.25 in expenses paid on behalf of the Company in the period from October 14, 2014 to September 28, 2016. This Convertible Promissory Note had an interest rate of 6.00% per annum and a one-year term. The Holder was entitled to convert any or all of the principal amount of this Note and any accrued interest, late fee, and extension fee, if applicable, into such number of shares of the Company’s shares of common stock, par value $.001 (the “Common Stock”) as obtained by dividing the entire principal amount of this Note plus any accrued interest by $0.01 per share. On September 29, 2017, Evolution converted $39,373 of principal and $5,062 of accrued interest into 4,443,565 shares of common stock. A new non-convertible unsecured, 6% promissory note for the remaining principal balance of $45,000 was issued. The new note had a term of eighteen months.
Alan Smith, the Company’s sole director, is not independent under the rules of the NASDAQ stock market or Rule 10A-3 of the Exchange Act.
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES
During the fiscal year ended March 31, 2019, we incurred approximately $24,250 in fees to our principal independent accountants for professional services rendered in connection with the audit of our financial statements and for the quarterly reviews of our financial statements.
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ITEM 15. EXHIBITS
The following exhibits are filed as part of this Annual Report.
Exhibits:
| Number | Description | ||
| 3.01 | Articles of Incorporation - Filed with the SEC on July 29, 2013 as part of our Registration Statement on Form S-1. | ||
| 3.02 | Bylaws - Filed with the SEC on July 29, 2013 as part of our Registration Statement on Form S-1. | ||
| 31.1 | Certification of Principal Executive Officer and Principal Financial Officer, pursuant to SEC Rules 13a-14(a) and 15d-14(a), adopted pursuant Section 302 of the Sarbanes Oxley Act of 2002 | ||
| 32.1 | Certification of Chief 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 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 |
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| ALTAIR INTERNATIONAL CORP. | |
| Dated: May 20, 2020 |
By: /s/Alan M. Smith Alan M. Smith, President, Secretary and Treasure |
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