Attached files
| file | filename |
|---|---|
| EX-32.1 - CERTIFICATION - 3D MAKERJET, INC. | f10k2020a1ex32-1_3dmakerjet.htm |
| EX-31.2 - CERTIFICATION - 3D MAKERJET, INC. | f10k2020a1ex31-2_3dmakerjet.htm |
| EX-31.1 - CERTIFICATION - 3D MAKERJET, INC. | f10k2020a1ex31-1_3dmakerjet.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A
☒ ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended July 31, 2020
☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
For the transition period from _________ to ________
Commission file number: 333-157783
| 3D MakerJet, Inc. |
| (Exact name of registrant as specified in its charter) |
| Nevada | 6770 | 26-4083754 | ||
| (State
or other jurisdiction of incorporation or organization) |
(Primary Standard Industrial Classification Number) |
(I.R.S.
Employer Identification No.) |
1185 Avenue of the Americas 3rd Floor New York, NY. 10036 |
32811 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number: (646) 768-8417
| Securities registered under Section 12(b) of the Exchange Act |
| Title of each class | Name of each exchange on which registered | |
| None | Not applicable |
| Securities registered under Section 12(g) of the Exchange Act: |
Title of each class
None
Indicate by check mark if 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 checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☐ 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). Yes ☐ No ☒
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) 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, a non-accelerated filer, a smaller 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 ☐ | 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 Exchange Act). Yes ☒ No ☐
State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter. Not available.
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date. 130,200,000 as of February 10, 2021.
TABLE OF CONTENTS
i
EXPLANATORY NOTE
This Amendment No. 1 on Form 10-K/A (this “Amendment”) to the Annual Report on Form 10-K for the fiscal year ended July 31, 2020 (the “Form 10-K”) of 3D Makerjet, Inc. is being filed solely for the purpose of furnishing Items 10, 11,12,13 and updating Note 6. with additional disclosure to the Form 10-K, which was not included in the original filing of the Form 10-Q with the Securities and Exchange Commission on February 17, 2021 (the “Original Filing Date”).
No other changes have been made to the Form 10-K. This Amendment speaks as of the Original Filing Date and does not reflect events that may have occurred subsequent to the Original Filing Date, and does not modify or update in any way the disclosures made in the Form 10-K.
Overview
We were formerly a Nevada corporation based out of Orlando, Florida. We intended to participate in cutting edge development and import and sell state of the art 3D printers, scanners, and ancillary equipment. Our mission was to provide individual and corporate customers with the most advanced and reliable cutting edge 3D printing technology in the most cost effective packages available in the marketplace at whatever level is appropriate for their needs. We want our business to be the “go to” vendor of 3D printers for individuals and businesses. Our focus was on the development of powderless metal and medical printers and printing technology.
The 3D printing industry is in its very early stages but is already getting more press and generating more excitement than almost any other technological development of recent years. It is not often that a new idea is constantly described as moving the goalposts for the way we actually live our lives. Amidst all the press and the hype, the reality of what the technology is capable of and the speed of its improvement is breathtaking.
We were committed to supplying the best plastic, medical, culinary, and powderless metal 3D printers in the industry, and we are supplied by one of the largest and most experienced 3D printing research, development, and manufacturing entities in the world. 3D MakerJet’s research and development partner and manufacturer, ZBOT / Guangzhou DNSPOWER Design Co. LTD, was founded in 2000, and is a leader in the 3D printing industry. A cutting-edge developer in the manufacturing sector, ZBOT won the coveted CDA National Design Award for its ZBOT 3D Printer, which is the platform of the 3D MakerJet printer line, making their 3D printer the only CDA winner at the Civilian level, reflecting the product’s superior quality, as well as the manufacturer's comprehensive strength, commitment, and capabilities.
We have been dormant since January 2016.
On July 14, 2020, as a result of a custodianship in Clark County, Nevada, Case Number: A-20-816260-B, Custodian Ventures LLC (“Custodian”) was appointed custodian of the Company. David Lazar is the managing member of Custodian.
On July 16, 2020, Custodian appointed David Lazar as the Company’s Chief Executive Officer, President, Secretary, Chief Financial Officer, Chief Executive Officer and Chairman of the Board of Directors.
On January 29, 2021, the Board of Directors of Company approved the change in the Company’s fiscal year end from July 31 to December 31. As required, the Company will file a transition report on Form 10-K covering the transition period with the Securities and Exchange Commission.
Employees
As of the date of this Current Report, the Company has no full-time employees.
The Company has no properties.
We are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.
Item 4. Mine Safety Disclosures
N/A
1
Item 5. Market for Registrant’s Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities
Market Information
Our Common Stock is quoted on the over the counter “pink sheets” under the trading symbol “MRJT.”
Transfer of our common stock may also be restricted under the securities or blue sky laws of certain states and foreign jurisdictions. Consequently, investors may not be able to liquidate their investments and should be prepared to hold the common stock for an indefinite period of time.
The following table sets forth the high and low bid quotations for our Common Stock as reported on the pink sheets for the periods indicated.
| Fiscal 2020 | $ High | $ Low | ||||||
| First Quarter -October 2019 | 0.0084 | 0.0036 | ||||||
| Second Quarter -January 2020 | 0.0065 | 0.0024 | ||||||
| Third Quarter-April 2020 | 0.0049 | 0.0017 | ||||||
| Fourth Quarter-July 2020 | 0.0014 | 0.0038 | ||||||
| Fiscal 2019 | $ High | $ Low | ||||||
| First Quarter-October 2018 | 0.0036 | 0.0012 | ||||||
| Second Quarter-January 2018 | 0.0030 | 0.0012 | ||||||
| Third Quarter-April 2019 | 0.0028 | 0.0012 | ||||||
| Fourth Quarter-July 2019 | 0.0086 | 0.0012 | ||||||
As of February 17, 2021 the closing price of our Common Stock was $0.04 per share.
Holders of Our Common Stock
As of February 17, 2021 we had 130,200,000 shares of our common stock issued and outstanding, held by twenty-nine (29) shareholders of record, with others holding shares in street name.
2
Dividends
There are no restrictions in our articles of incorporation or bylaws that prevent us from declaring dividends. The Nevada Revised Statutes, however, do prohibit us from declaring dividends where after giving effect to the distribution of the dividend:
| 1. | We would not be able to pay our debts as they become due in the usual course of business, or; |
| 2. | Our total assets would be less than the sum of our total liabilities plus the amount that would be needed to satisfy the rights of shareholders who have preferential rights superior to those receiving the distribution. |
We have not declared any dividends and we do not plan to declare any dividends in the foreseeable future.
Securities Authorized for Issuance under Equity Compensation Plans
We do not have any equity compensation plans.
Item 6. Selected Financial Data
A smaller reporting company is not required to provide the information required by this Item.
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. We intend such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and are including this statement for purposes of complying with those safe-harbor provisions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse effect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise. Further information concerning our business, including additional factors that could materially affect our financial results, is included herein and in our other filings with the SEC.
Plan of Operation
The Company’s current business objective is to seek a business combination with an operating company. We intend to use the Company’s limited personnel and financial resources in connection with such activities. The Company will utilize its capital stock, debt or a combination of capital stock and debt, in effecting a business combination. It may be expected that entering into a business combination will involve the issuance of restricted shares of capital stock. The issuance of additional shares of our capital stock:
| ● | may significantly reduce the equity interest of our stockholders; |
| ● | will likely cause a change in control if a substantial number of our shares of capital stock are issued, and most likely will also result in the resignation or removal of our present officer and director; and |
| ● | may adversely affect the prevailing market price for our common stock. |
3
Similarly, if we issued debt securities, it could result in:
| ● | default and foreclosure on our assets if our operating revenues after a business combination were insufficient to pay our debt obligations; |
| ● | acceleration of our obligations to repay the indebtedness even if we have made all principal and interest payments when due if the debt security contained covenants that required the maintenance of certain financial ratios or reserves and any such covenants were breached without a waiver or renegotiations of such covenants; |
| ● | our immediate payment of all principal and accrued interest, if any, if the debt security was payable on demand; and |
| ● | our inability to obtain additional financing, if necessary, if the debt security contained covenants restricting our ability to obtain additional financing while such security was outstanding. |
Going Concern
We were formed in January 2009. We have negative working capital, no cash on hand, have an accumulated deficit and have no sources of financing. While we are attempting to expand operations and produce revenues, our cash position may not be significant enough to support our daily operations. Management will seek funds from outside business contacts as needed. There can be no assurances to that our business plan will succeed.
Our ability to continue as a going concern is dependent upon our ability to further implement our business plan and generate revenues. The financial statements do not include any adjustments that might be necessary if we are unable to continue as a going concern.
Critical Accounting Policies
In December 2001, the SEC requested that all registrants list their most “critical accounting polices” in the Management Discussion and Analysis. The SEC indicated that a “critical accounting policy” is one which is both important to the portrayal of a company’s financial condition and results, and requires management’s most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effect of matters that are inherently uncertain. We do not believe that any accounting policies currently fit this definition.
Recently Issued Accounting Pronouncements
We do not expect the adoption of recently issued accounting pronouncements to have a significant impact on our results of operations, financial position, or cash flow.
Off Balance Sheet Arrangements
As of July 31, 2020, there were no off balance sheet arrangements.
Item 7A. Quantitative and Qualitative Disclosures About Market Risk
A smaller reporting company is not required to provide the information required by this Item.
4
Item 8. Financial Statements and Supplementary Data
Index to Financial Statements Required by Article 8 of Regulation S-X:
| Financial Statements: |
5
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of 3D Makerjet, Inc.:
We were engaged to audit the accompanying balance sheets of 3D Makerjet, Inc. (“the Company”) as of July 31, 2020 and 2019 and the related statement of operations, stockholders’ equity (deficit) and cash flows for the years then ended. As described in the following paragraph, because the Company’s records were not sufficient, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements, and we do not express, an opinion on these financial statements.
Basis for Disclaimer Opinion:
We were not engaged as auditors of the Company until February of 2021 at which time much of the audit evidence necessary to provide a basis for an audit opinion had been destroyed or lost. We were unable to satisfy ourselves by other audit procedures concerning the assets and liabilities held at July 31, 2020 and 2019, as well as the revenues and expenses recognized for the year then ended. As a result of these matters, we were unable to determine whether any adjustments might have been found necessary in respect of recorded or unrecorded assets, liabilities, revenue and expenses.
We conducted our audits in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. Because of the matters described in the Basis for Disclaimer Opinion paragraph above, however, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion.
The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the Company's internal control over financial reporting. Accordingly, we express no such opinion.
Because of the significance of the matters described in the Basis for Disclaimer Opinion paragraph, we have not been able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion. Accordingly, we do not express an opinion on these financial statements.
Substantial Doubt about the Company’s Ability to Continue as a Going Concern
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company’s significant operating losses raise substantial doubt about its ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/ BF Borgers CPA PC
B F Borgers CPA PC
We have served as the Company's auditor since 2021
Lakewood, CO
February 16, 2021
F-1
Balance Sheets
(Unaudited)
| July 31, | July 31, | |||||||
| 2020 | 2019 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Total assets | $ | - | $ | - | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 173 | $ | - | ||||
| Notes payable related parties | 5,259 | - | ||||||
| Accounts payable and accrued liabilities | 232,227 | 232,227 | ||||||
| Convertible notes | 602,693 | 602,693 | ||||||
| Total current liabilities | 840,351 | 834,920 | ||||||
| Convertible notes | - | - | ||||||
| Notes payable -long term | 43,000 | 43,000 | ||||||
| Total Liabilities | 883,351 | 877,920 | ||||||
| Commitments and contingencies | - | - | ||||||
| Stockholders’ Deficit: | ||||||||
| Preferred stock: $0.001 par value 10,000,000 shares authorized, none issued and outstanding | - | - | ||||||
| Common stock, $0.001 par value, 300,000,000 shares authorized; 130,200,000 and 130,200,000 issued and outstanding as of July 31, 2020 and July 31, 2019 | 130,200 | 130,200 | ||||||
| Additional paid-in capital | 780,659 | 780,659 | ||||||
| Accumulated deficit | (1,794,210 | ) | (1,788,779 | ) | ||||
| Total stockholders’ equity | (883,351 | ) | (877,920 | ) | ||||
| Total liabilities and equity | $ | - | $ | - | ||||
The accompanying notes are an integral part of the consolidated financial statements.
F-2
Statements of Operations
(Unaudited)
| Year | Year | |||||||
| Ended | Ended | |||||||
| July 31, | July 31, | |||||||
| 2020 | 2019 | |||||||
| Revenue | $ | - | $ | - | ||||
| Cost of revenue | - | - | ||||||
| Gross profit | - | - | ||||||
| Operating expenses: | ||||||||
| General and administrative -related party | 5,431 | - | ||||||
| Total operating expenses | 5,431 | - | ||||||
| Income loss from operations | (5,431 | ) | - | |||||
| Other income (expense) | ||||||||
| Interest income (expense) | - | - | ||||||
| Other income (expense) | - | - | ||||||
| Total other income (expense) | - | - | ||||||
| Net loss | $ | (5,431 | ) | $ | - | |||
| Basic and diluted earnings (loss) per common share | $ | (0.00 | ) | $ | - | |||
| Weighted-average number of common shares outstanding: | ||||||||
| Basic and diluted | 130,200,000 | 130,200 | ||||||
The accompanying notes are an integral part of the consolidated financial statements.
F-3
Statements of Changes in Shareholders Equity
(Unaudited)
| Additional | Total | |||||||||||||||||||||||||||
| Preferred Stock Series | Common stock | Paid-in | Accumulated | Stockholders’ | ||||||||||||||||||||||||
| Shares | Value | Shares | Value | Capital | Deficit | Equity | ||||||||||||||||||||||
| Balance, July 31, 2018 | - | $ | - | 130,200,000 | $ | 130,200 | $ | 780,659 | $ | (1,788,779 | ) | $ | (877,920 | ) | ||||||||||||||
| Net income (loss) | - | - | ||||||||||||||||||||||||||
| Balance, July 31, 2019 | - | - | 130,200,000 | $ | 130,200 | $ | 780,659 | $ | (1,788,779 | ) | $ | (877,920 | ) | |||||||||||||||
| Additional | Total | |||||||||||||||||||||||||||
| Preferred Stock Series | Common stock | Paid-in | Accumulated | Stockholders’ | ||||||||||||||||||||||||
| Shares | Value | Shares | Value | Capital | Deficit | Equity | ||||||||||||||||||||||
| Balance, July 31, 2019 | - | - | 130,200,000 | $ | 130,200 | $ | 780,659 | $ | (1,788,779 | ) | $ | (877,920 | ) | |||||||||||||||
| Net loss | (5,431 | ) | $ | (5,431 | ) | |||||||||||||||||||||||
| Balance, July 31, 2020 | - | - | 130,200,000 | $ | 130,200 | $ | 780,659 | $ | (1,794,210 | ) | $ | (883,351 | ) | |||||||||||||||
The accompanying notes are an integral part of the consolidated financial statements.
F-4
Statements of Cash flows
(Unaudited)
| Year | Year | |||||||
| Ended | Ended | |||||||
| July 31, | July 31, | |||||||
| 2020 | 2019 | |||||||
| Operating activities | ||||||||
| Net loss | $ | (5,431 | ) | $ | - | |||
| Net cash provided by (used in) operating activities | (5,431 | ) | - | |||||
| Cash flows from financing activities: | ||||||||
| Proceeds from related party advances | 5,431 | - | ||||||
| Net cash provided by (used in) financing activities | 5,431 | - | ||||||
| Net increase (decrease) in cash and cash equivalents | - | - | ||||||
| Cash and cash equivalents at beginning of period | - | - | ||||||
| Cash and cash equivalents at end of period | $ | - | $ | - | ||||
| Supplemental disclosure of cash flow information: | $ | - | $ | - | ||||
| Cash paid for interest | $ | - | $ | - | ||||
| Cash paid for income taxes | ||||||||
| Non cash financing activity | ||||||||
| Discount on convertible promissory notes due to beneficial conversion feature | ||||||||
| Acquisition of 3D Makerjet Asia with common stock, net of assets received | $ | - | $ | - | ||||
The accompanying notes are an integral part of the consolidated financial statements.
F-5
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS
3D MakerJet, Inc. (“3D MakerJet” or the “Company”), formerly known as American Business Change Agents, Inc., was incorporated under the laws of the State of Nevada on January 12, 2009. On May 4, 2014, the name of the Company was changed to 3D MakerJet, Inc. The Company had been developing a business plan focused on the sale of 3D printers, scanners, and ancillary equipment. 3D MakerJet, Inc. formerly known as American Business Change Agents, Inc., was incorporated under the laws of the State of Nevada on January 12, 2009.
On May 4, 2014, the name of the Company was changed to 3D MakerJet, Inc. the Company has been dormant since January 2016.
On July 14, 2020, as a result of a custodianship in Clark County, Nevada, Case Number: A-20-816260-B, Custodian Ventures LLC (“Custodian”) was appointed custodian of the Company. David Lazar is the managing member of Custodian.
On July 16, 2020, Custodian appointed David Lazar as the Company’s Chief Executive Officer, President, Secretary, Chief Financial Officer, Chief Executive Officer and Chairman of the Board of Directors.
On January 29, 2021, the Board of Directors of Company approved the change in the Company’s fiscal year end from July 31 to December 31. As required, the Company will file a transition report on Form 10-K covering the transition period with the Securities and Exchange Commission.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared in accordance with the Financial Accounting Standards Board (“FASB”) “FASB Accounting Standard Codification™” (the “Codification”) which is the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with generally accepted accounting principles (“GAAP”) in the United States.
Going Concern
The accompanying financial statements have been prepared assuming the Company will continue as a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business for the twelve months following the date of these financial statements. As of July 31, 2020 the Company had no cash and negative retained earnings of $1,794,201.
Because the Company does not expect that existing operational cash flow will be sufficient to fund presently anticipated operations, this raises substantial doubt about the Company’s ability to continue as a going concern. Therefore, the Company will need to raise additional funds and is currently exploring alternative sources of financing. Recently in 2020 the Company was being funded by David Lazar who has extended interest-free demand loans to the Company. there can be no assurances that he will be able to continue doing so. Historically, the Company raised capital through private placements, to finance working capital needs and may attempt to raise capital through the sale of common stock or other securities and obtaining some short-term loans. The Company will be required to continue to so until its operations become profitable. Also, the Company has, in the past, paid for consulting services with its common stock to maximize working capital, and intends to continue this practice where feasible.
F-6
Use of Estimates
The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates relate to income taxes and contingencies. The Company bases its estimates on historical experience, known or expected trends, and various other assumptions that are believed to be reasonable given the quality of information available as of the date of these financial statements. The results of these assumptions provide the basis for making estimates about the carrying amounts of assets and liabilities that are not readily apparent from other sources. Actual results could differ from these estimates.
Cash and cash equivalents
The Company considers all highly liquid temporary cash investments with an original maturity of three months or less to be cash equivalents. On July 31, 2020 and July 31, 2019, the Company’s cash equivalents totaled $-0- and $-0- respectively.
Income taxes
The Company accounts for income taxes under FASB ASC 740, “Accounting for Income Taxes”. Under FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under FASB ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. FASB ASC 740-10-05, “Accounting for Uncertainty in Income Taxes” prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more-likely-than-not to be sustained upon examination by taxing authorities.
The amount recognized is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement. The Company assesses the validity of its conclusions regarding uncertain tax positions quarterly to determine if facts or circumstances have arisen that might cause it to change its judgment regarding the likelihood of a tax position’s sustainability under audit.
Net Loss per Share
Net loss per common share is computed by dividing net loss by the weighted average common shares outstanding during the period as defined by Financial Accounting Standards, ASC Topic 260, “Earnings per Share.” Basic earnings per common share (“EPS”) calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted earnings per common share calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding.
Recent Accounting Pronouncements
There are no recent accounting pronouncements that impact the Company’s operations.
NOTE 3 – DEBT
As of July 31, 2020, and July 31, 2019, the Company had $602,693 in convertible debt, net of discount outstanding. Additionally there was $43,000 in long term note payable outstanding.
F-7
Common Stock
The Company has authorized 300,0000,000 shares of $0.001 par value, common stock. As of July 31, 2020, and July 31, 2019, there were 130,200,000 and 130,200,000 shares of Common Stock issued and outstanding, respectively.
NOTE 4 – RELATED PARTY DEBT
As of July 31, 2020, Custodian Ventures had extended $5,259 in interest free demand loans to the Company compared to $-0- as of July 31, 2019
NOTE 5 – COMMITMENTS AND CONTINGENCIES
The Company did not have any contractual commitments as of July 31, 2020 and July 31, 2019.
NOTE 6 – SUBSEQUENT EVENTS
In accordance with SFAS 165 (ASC 855-10) management has performed an evaluation of subsequent events through the date that the financial statements were available to be issued and has determined that it does not have any material subsequent events to disclose in these financial statements with the exception of the following:
On July 14, 2020, as a result of a custodianship in Clark County, Nevada, Case Number: A-20-816260-B, Custodian Ventures LLC (“Custodian”) was appointed custodian of the “Company. David Lazar is the managing member of Custodian.
On July 16, 2020, Custodian appointed David Lazar as the Company’s Chief Executive Officer, President, Secretary, Chief Financial Officer, Chief Executive Officer and Chairman of the Board of Directors.
On September 24, 2020 the Company filed a Certificate of Designation in the state of Nevada for 10,000,000 shares of Series A Preferred Stock, par value $0.001. Each share of Preferred Stock is convertible into 30 shares of the Company’s common stock. These share were issued to Custodian Ventures in return for the continuing expert management services of David Lazar, and for a reduction of $10,000 in related party debt due to Custodian Ventures.
On January 29, 2021, the Board of Directors of the Company approved the change in the Company’s fiscal year end from July 31 to December 31.
F-8
Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure
On August 3, 2015, RBSM LLP resigned as our accountant. We have engaged Thayer O’Neal Company PLLC as our principal accountants effective August 3, 2015. The decision to change accountants was approved by our board of directors. For more information on the change in accountant, please see our Form 8-K filed with the Securities and Exchange Commission on August 19, 2015.
Item 9A. Controls and Procedures
Disclosure Controls and Procedures
We conducted an evaluation, with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, or the Exchange Act, as of July 31, 2020, to ensure that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities Exchange Commission’s rules and forms, including to ensure that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officer, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer have concluded that as of July 31, 2020, our disclosure controls and procedures were not effective at the reasonable assurance level due to the material weaknesses identified and described in Item 9A(b).
Our principal executive officers do not expect that our disclosure controls or internal controls will prevent all error and all fraud. Although our disclosure controls and procedures were designed to provide reasonable assurance of achieving their objectives and our principal executive officers have determined that our disclosure controls and procedures are effective at doing so, a control system, no matter how well conceived and operated, can provide only reasonable, not absolute assurance that the objectives of the system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented if there exists in an individual a desire to do so. There can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.
Management Report on Internal Control Over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rules 13a-15(f) and 15d-15(f) promulgated under the Exchange Act, as amended, as a process designed by, or under the supervision of, our principal executive and principal financial officer and effected by our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles in the United States and includes those policies and procedures that:
| § | Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect our transactions and any disposition of our assets; |
| § | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and |
| § | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements. |
Because of its inherent limitations, internal control over financial reporting may not prevent or detect all misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
6
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of our annual or interim financial statements will not be prevented or detected on a timely basis. Our management assessed the effectiveness of our internal control over financial reporting as of July 31, 2020. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework. Based on this assessment, Management identified the following two material weaknesses that have caused management to conclude that, as of July 31, 2020, our disclosure controls and procedures, and our internal control over financial reporting, were not effective at the reasonable assurance level:
| 1. | We do not have written documentation of our internal control policies and procedures. Written documentation of key internal controls over financial reporting is a requirement of Section 404 of the Sarbanes-Oxley Act as of the year ending July 31, 2020. Management evaluated the impact of our failure to have written documentation of our internal controls and procedures on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness. |
| 2. | We do not have sufficient segregation of duties within accounting functions, which is a basic internal control. Due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of our failure to have segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness. |
| 3. | Effective controls over the control environment were not maintained. Specifically, a formally adopted written code of business conduct and ethics that governs our employees, officers, and directors was not in place. Additionally, management has not developed and effectively communicated to employees its accounting policies and procedures. This has resulted in inconsistent practices. Further, our Board of Directors does not currently have any independent members and no director qualifies as an audit committee financial expert as defined in Item 407(d)(5)(ii) of Regulation S-K. Since these entity level programs have a pervasive effect across the organization, management has determined that these circumstances constitute a material weakness. |
To address these material weaknesses, management performed additional analyses and other procedures to ensure that the financial statements included herein fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented. Accordingly, we believe that the financial statements included in this report fairly present, in all material respects, our financial condition, results of operations and cash flows for the periods presented.
Remediation of Material Weaknesses
To remediate the material weakness in our documentation, evaluation and testing of internal controls we plan to engage a third-party firm to assist us in remedying this material weakness once resources become available.
We intend to remedy our material weakness with regard to insufficient segregation of duties by hiring additional employees in order to segregate duties in a manner that establishes effective internal controls once resources become available.
Changes in Internal Control over Financial Reporting
No change in our system of internal control over financial reporting occurred during the period covered by this report, the fiscal year ended July 31, 2020, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
None
7
Item 10. Directors, Executive Officers and Corporate Governance
The following table contains information with respect to our current executive officer and director:
Name |
Age |
Principal Positions With Us | ||
| David Lazar | 30 | President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Director |
David Lazar
David Lazar, 30, has been CEO and Chairman of the Company since May 16, 2018. David Lazar is a private investor. Mr. Lazar has been a partner at Zenith Partners International since 2013, where he specializes in research and development, sales, and marketing. From 2014 through 2015, David was the Chief Executive Officer of Dico, Inc., which was then sold to Peekay Boutiques. Since February of 2018, Mr. Lazar has been the managing member of Custodian Ventures LLC, where he specializes in assisting distressed public companies. Since March 2018, David has acted as the managing member of Activist Investing LLC, which specializes in active investing in distressed public companies. David has a diverse knowledge of financial, legal and operations management; public company management, accounting, audit preparation, due diligence reviews and SEC regulations.
| MARKET | FROM | TO | ||||||||||||||||||
| NAME OF ISSUER | TRADED ON | POSITION(S) HELD | MM | YYYY | MM | YYYY | ||||||||||||||
| Rarus Technologies, Inc. (RARS) | OTCBB | CEO, Director | 01 | 2018 | 05 | 2018 | ||||||||||||||
| DRS, Inc. (DRSX) | CEO, Director | 07 | 2018 | 11 | 2018 | |||||||||||||||
| Energenx, Inc. (EENX) | OTC | CEO | 03 | 2018 | 07 | 2018 | ||||||||||||||
| Melt, Inc. (MLTC) | OTC | Director | 10 | 2018 | 03 | 2019 | ||||||||||||||
| Nevtah Capital Management Corporation (NTAH) | OTC – US | President, Chief Executive Officer & Secretary | 03 | 2019 | 05 | 2020 | ||||||||||||||
| Mediashift, Inc. (MSHFQ) | OTC | Chairman, President, CEO, CFO & Secretary | 03 | 2019 | 09 | 2019 | ||||||||||||||
| Sollensys Corp. (SOLS) | OTC Market | President, CEO, Secretary & Director | 12 | 2019 | 08 | 2020 | ||||||||||||||
| Foru Holdings, Inc (FORU) | OTC Markets | Chairman, President, CEO, CFO & Secretary | 03 | 2020 | Current | |||||||||||||||
| Superbox, Inc (SBOX) | OTC Markets | Chairman, President, CEO, CFO & Secretary | 03 | 2020 | Current | |||||||||||||||
| Petrone Worldwide, Inc (PFWIQ) | OTC Markets | Chairman, President, CEO, CFO & Secretary | 03 | 2020 | Current | |||||||||||||||
| Gushen, Inc (GSHN) | OTC – US | Chairman, President, CEO, CFO & Secretary | 03 | 2020 | 12 | 2020 | ||||||||||||||
| Reliance Global Group Inc. (RELI) | OTC | Director | 03 | 2020 | Current | |||||||||||||||
| GHAR, Inc. (GHAR) | OTC Markets | Chairman, President, CEO, CFO & Secretary | 03 | 2020 | Current | |||||||||||||||
| PhoneBrasil (PHBR) | OTC Markets | Chairman, President, CEO, CFO & Secretary | 08 | 2020 | 12 | 2020 | ||||||||||||||
| XXStream Entertainment, Inc. | OTC Markets | Chairman, President, CEO, CFO & Secretary | 07 | 2020 | 12 | 2020 | ||||||||||||||
| Adorbs Inc. | N/A | Chairman, President, CEO, CFO & Secretary | 07 | 2020 | Current | |||||||||||||||
| China Botanic Pharmaceutical, Inc(CBPI) | OTC Markets | Chairman, President, CEO, CFO & Secretary | 02 | 2021 | Current | |||||||||||||||
| C2E Energy Inc. (OOGI) | OTC Markets | Chairman, President, CEO, CFO & Secretary | 02 | 2021 | Current | |||||||||||||||
| Finotec (FTGI) | OTC Markets | Chairman, President, CEO, CFO & Secretary | 03 | 2020 | 01 | 2021 | ||||||||||||||
David Lazar was also the sole officer and director of Shentang International, Inc. (“Shentang”), which is a blank check company. On April 29, 2020, Plentiful Limited, a Samoan company, purchased 10,000,000 shares of Shentang’s preferred stock, par value $0.001 per share, representing 98% of the voting stock, from Custodian Ventures for $225,000. This concluded Mr. Lazar’s association with Shentang. A business combination has yet to occur. Shentang has not registered any offerings under the Securities Act.
8
David Lazar was also the sole officer and director of Guozi Zhongyu Capital Holdings (formerly Melt Inc.) (“Guozi”), which was a blank check company. On February 27, 2019, Zhicheng RAO, purchased 2,185,710,000 shares of Guozi’s common stock, par value $0.00001 per share, from Custodian Ventures for $325,000, representing 99% of the voting stock. This concluded Mr. Lazar’s association with Guozi. Guozi has not registered any offerings under the Securities Act.
David Lazar was also the sole officer and director of Cang Bao Tian Xia International Art Trade Center Inc. (formerly Zhongchai Machinery, Inc.) (“Cang”), which is a blank check company. On December 16, 2018, Xingtao Zhou and Yaqin Fu purchased 3,096,200 shares of common stock and 10,000,000 shares (the “Shares”) of preferred stock, each par value $0.001 per share, representing approximately 99% of the voting capital, from Custodian Ventures for $375,000. This concluded Mr. Lazar’s association with Cang. A business combination has yet to occur. Cang has not registered any offerings under the Securities Act.
Except for GHAR, Inc, Adorbs, Inc. and Reliance Global Group Inc., Mr. Lazar took control of all of the companies listed by becoming the Court-appointed custodian through Custodian Ventures LLC and entity in which he is the managing member.
Term of Office
Our directors are appointed for a one-year term to hold office until the next annual general meeting of our shareholders or until removed from office in accordance with our bylaws. Our officers are appointed by our board of directors and hold office until removed by the board.
Family Relationships
There are no family relationships between or among the directors, executive officers or persons nominated or chosen by us to become directors or executive officers.
Involvement in Certain Legal Proceedings
To the best of our knowledge, during the past ten years, none of the following occurred with respect to a present or former director, executive officer, or employee: (1) any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; (2) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); (3) being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his or her involvement in any type of business, securities or banking activities; and (4) being found by a court of competent jurisdiction (in a civil action), the SEC or the Commodities Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.
Committees of the Board
Our company currently does not have nominating, compensation or audit committees or committees performing similar functions nor does our company have a written nominating, compensation, or audit committee charter. Our directors believe that it is not necessary to have such committees, at this time, because the functions of such committees can be adequately performed by the board of directors.
Our company does not have any defined policy or procedural requirements for shareholders to submit recommendations or nominations for directors. The board of directors believes that, given the stage of our development, a specific nominating policy would be premature and of little assistance until our business operations develop to a more advanced level. Our company does not currently have any specific or minimum criteria for the election of nominees to the board of directors and we do not have any specific process or procedure for evaluating such nominees. The board of directors will assess all candidates, whether submitted by management or shareholders, and make recommendations for election or appointment.
A shareholder who wishes to communicate with our board of directors may do so by directing a written request addressed to our CEO and director, David Lazar, at the address appearing on the first page of this annual report.
Code of Ethics
We have not adopted a Code of Ethics that applies our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.
9
Item 11. Executive Compensation
Mr. Lazar, the Company’s only Officer and Director received no compensation for his services
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
The following table sets forth, as of December 31, 2020 certain information as to shares of our voting stock owned by (i) each person known by us to beneficially own more than 5% of our outstanding voting stock, (ii) each of our directors, and (iii) all of our executive officers and directors as a group.
Unless otherwise indicated below, to our knowledge, all persons listed below have sole voting and investment power with respect to their shares of voting stock, except to the extent authority is shared by spouses under applicable law.
| Name and Address of Beneficial Owners of Common Stock | Title of Class | Amount and Nature of Beneficial Ownership(1) | % of Common Stock(2) | |||||||
| David Lazar | Common Stock | 50,000 shares | Less than 1 | % | ||||||
| Preferred Stock | 10,000,000 | (3) | 69.7 | % | ||||||
DIRECTORS
AND OFFICERS – TOTAL | 300,050,000 | 69.7 | % | |||||||
5% SHAREHOLDERS | ||||||||||
| Market Milestones, Inc. 297 Kingsbury Grade, MB 4470 Stateline (Lake Tahoe), NV 89449 | Common Stock | 72,600,000 Shares | 55.8 | % | ||||||
| Jason Zeng 160 Frederick St. Ste. 906 Toronto, ON Canada M5A4H9 | Common Stock | 26,000,000 Shares | 20.0 | % | ||||||
| (1) | Beneficial Ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Shares of common stock subject to options or warrants currently exercisable or convertible, or exercisable or convertible within 60 days of October 30, 2015 are deemed outstanding for computing the percentage of the person holding such option or warrant but are not deemed outstanding for computing the percentage of any other person. |
| (2) | Based upon 130,200,000 shares issued and outstanding on December 31 2020, plus the number of shares that such individual has the right to acquire within 60 days of such date. |
| (3) | The preferred is convertible to common at the rate of 30 to 1I |
10
Item 13. Certain Relationships and Related Transactions, and Director Independence
As of the date of this Report, Custodian Ventures had extended $15,345 in interest free demand loans to the Company.
Item 14. Principal Accounting Fees and Services
Audit Fees: Audit fees consist of fees billed for professional services rendered for the audit of our year-end financial statements and services that are normally provided in connection with statutory and regulatory filings. Fees incurred were $-0- and $-0- for the years ended July 31, 2020 and 2019.
Audit-Related Fees: Audit-related services consist of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of our financial statements and are not reported under “Audit Fees.” These services include attest services that are not required by statute or regulation and consultations concerning financial accounting and reporting standards and were not incurred for 2020 and 2019.
Tax Services Fees: Tax fees consist of fees billed for professional services for tax compliance. These services include assistance regarding federal, state, and local tax compliance. Tax fees were not incurred during the fiscal year ended July 31, 2020.
All Other Fees: Other fees, which were not incurred, would include fees for products and services other than the services reported above.
11
Item 15. Exhibits, Financial Statements Schedules
| (a) | Financial Statements and Schedules |
The following financial statements and schedules listed below are included in this Form 10-K.
Financial Statements (See Item 8)
| (b) | Exhibits |
12
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| 3D MakerJet, Inc. | ||
| Date: February 22, 2021 | By: | /s/ David Lazar |
| David Lazar | ||
| Title: | Chief Executive Officer and Director | |
13