As filed with the Securities and Exchange Commission on April 13, 2015

Registration No.____________March 4, 2019

 

Registration No. 333- _________

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM S-1

 

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

 

My Cloudz, Inc.GRIDIRON BIONUTRIENTS, INC.

(Exact name of registrant as specified in its charter)

 

Nevada

2080

36-4797193

(State or Other Jurisdiction of

(Primary Standard Industrial

(IRS Employer

Incorporation or Organization)

Classification Number)

Identification Number)

NEVADA

(State or other jurisdiction of incorporation or organization)

GridIron BioNutrients, Inc.

1119 West 1st Ave., Ste. G

Spokane, Washington 99021

(800) 570-0438

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

 

7374Timothy Orr

(Primary Standard Industrial Classification Code Number)President and Chief Executive Officer

GridIron BioNutrients, Inc.

36-47971931119 West 1st Ave., Ste. G

(I.R.S. Employer Identification Number)Spokane, Washington 99021

430/23 Moo 12

Nongprue, Banglamung

Chonburi 20150 Thailand

66-090-124-4220(800) 570-0438

(Address, including zip code, and telephone number, including area code, of registrant’s principal executive offices)

112 North Curry Street

Carson City, Nevada 89703

(775) 882-1013

(Name, address, including zip code, and telephone number, including area code, of agent for service)

 

Copies to:

The Thomas E. Puzzo, Esq.

Law OfficeOffices of Timothy S. Orr,Thomas E. Puzzo, PLLC

4328 West Hiawatha Dr., STE 1013823 44th Ave. NE

Spokane, WA 99208Seattle, Washington 98105

(509) 462.2926 (direct phone)Telephone No.: (206) 522-2256

(509) 769.0303 (direct fax)

tim@jcapital.orgFacsimile No.: (206) 260-0111

 

Approximate date of proposed sale to the public: As soon as practicable and from time to time after the effective date of this registration statement

(Approximate date of commencement of proposed sale to the public)Registration Statement.

 

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to Rule 415 under the Securities Act of 1933, check the following box:box. x

 

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨

 

If this Form is a post-effective amendment filed pursuant to Rulerule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨

 

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b- 212b-2 of the Exchange Act. (Check one):

 

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

¨

x

Smaller reporting company

x

(Do not check if a smaller reporting company)Emerging growth company

x

 

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 Section 7(a)(2)(B) of the Exchange Act. ¨

 

CALCULATION OF REGISTRATION FEE

Calculation of Registration Fee

 

Title of each class of

securities to be registered

 Amount to be registered [3]  Proposed maximum offering price per unit  Proposed maximum aggregate offering price  Amount of registration fee 

 

        

Common

 

4,000,000

  

$

0.05 [1]

  

$

200,000

  

$

23.24 [2]

 

Title of Securities To Be Registered

 

Amount to be Registered

 

 

Proposed Maximum Offering

Price Per Share

 

 

Proposed Maximum Aggregate

Offering Price

 

 

Registration

Fee

 

Common Stock Underlying Series A Preferred Stock (1)

 

 

8,882,400(1)

 

$0.0427(3)

 

$379,278.48

 

 

$47.22

 

Common Stock Underlying Warrants

 

 

8,480,000(2)

 

$0.0427(3)

 

$362,096.00

 

 

$43.88

 

Total

 

 

17,362,400

 

 

 

 

 

 

$741,374.48

 

 

$91.10

 

_____________

(1)

Represents the number of shares of common stock offered for resale following the conversion of certain shares of Series A Preferred Stock issued to the Financing Stockholders in accordance with a Securities Purchase Agreement entered into on July 30, 2018 (the “Conversion Shares”).

(2)

Represents the number of shares of common stock offered for resale following the exercise of certain Warrants issued to the Financing Stockholders in accordance with a Securities Purchase Agreement entered into on July 3, 2018 (the “Warrant Shares,” collectively with the Conversion Shares, the “Shares”).

(3)

The Offering price has been estimated solely for the purpose of calculating the registration fee in accordance with Rule 457(c) of the Securities Act and is based upon the closing price of $0.0427 per share of the Registrant’s Common Stock on the OTCQB on March 1, 2019.

 

[1] No exchangeIn the event of stock splits, stock dividends, or over-the-counter market exists for My Cloudz, Inc.similar transactions involving the Registrant’s common stock. The offering price has been arbitrarily determined and bears no relationshipstock, the number of Shares registered shall, unless otherwise expressly provided, automatically be deemed to assets, earnings,cover the additional securities to be offered or any other valuation criteria. No assurance can be given that the shares offered hereby will have a market value or that they may be sold at this, or at any price.

[2] Fee calculated in accordance with Rule 457(o) of the Securities Act of 1933, as amended “Securities Act” (Estimated for the sole purpose of calculating the registration fee).

[3] Pursuantissued pursuant to Rule 416 promulgated under the Securities Act of 1933, as amended the securities being registered hereunder include such indeterminate number of additional shares of common stock as may be issued after the date hereof as a result of stock splits, stock dividends or similar transactions.(the “Securities Act”).

 

The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which specifically states that thethis Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration Statement shall become effective on such date as the Commission, acting pursuant to said Section 8(a), may determine.

 

We are an “Emerging Growth Company” as defined in the Jumpstart Our Business Startups Act (“JOBS Act”), and will therefore be subject to reduced public company reporting requirements. Investing in our securities involves a high degree of risk. See Risk Factors, beginning on page 7.

 

2

THE INFORMATION IN THIS PROSPECTUS IS NOT COMPLETE AND MAY BE CHANGED. THE SELLING STOCKHOLDERS MAY NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS PROSPECTUS IS NOT AN OFFER TO SELL THESE SECURITIES AND IT IS NOT SOLICITING OFFERS TO BUY THESE SECURITIES IN ANY STATE WHERE THE OFFER OR SALE OF THESE SECURITIES IS NOT PERMITTED.

SUBJECT TO COMPLETION DATED ______________________, 2015

 

PRELIMINARY PROSPECTUS

SUBJECT TO COMPLETION ON MARCH __, 2019

My Cloudz, Inc.GRIDIRON BIONUTRIENTS, INC.

Up to 4,000,000 Share of Common Stock17,362,400 SHARES OF COMMON STOCK

 

We are selling upThis prospectus relates to 4,000,000 sharesthe resale of Shares of our common stock, par value $0.001 per share. Prior to this Offering, no public market has existed forshare, by the selling security holders (the “Selling Security Holders”), including (i) 8,882,400 shares of common stock issuable upon the exercise of My Cloudz, Inc. Upon completioncertain shares of this Offering, we will attempt to have the shares quoted on the Over the Counter-Bulletin Board ("OTCBB"Series A Preferred Stock (the “Conversion Shares”), operated by FINRA (Financial Industry Regulatory Authority). There is no assurance thatand (ii) 8,480,000 shares of common stock issuable upon the Shares will ever be quoted on the OTCBB. To be quoted on the OTCBB, a market maker must apply to make a market in our common stock. Asexercise of the date of this Prospectus, we have not made any arrangement with any market makers to quote our shares.outstanding warrants (the “Warrants”).

 

The offering isSelling Security Holders may sell all or a portion of the shares of common stock being made on a self-underwritten, “best efforts” basis. The shares will be sold on our behalf by our President, Sommay Vongsa. Heoffered pursuant to this Prospectus at the prevailing market prices at the time of sale or at negotiated prices. We will not receive any commissions or proceeds for sellingfrom the shares on our behalf. There is no minimum number of shares required to be purchased by each investor.

Allsale of the shares of common stock offered by the Selling Security Holders. We may receive gross proceeds of up to $1,110,300 is all of the shares of Series A Preferred Stock are converted by the Selling Security Holders, and up to $1,399,200 if all of the Warrants are exercised for cash by the Selling Security Holders. The proceeds will be used for working capital or general corporate purposes. We will bear all costs associated with this registration.

The total amount of shares of Common Stock which may be sold pursuant to this Prospectus would constitute approximately 13% of the Company’s issued and outstanding Common Stock as of March 1, 2019, assuming that the Selling Security Holders will sell all of the shares offered for sale.

Our common stock is quoted on the OTCQB under the symbol “GMVP.” The shares of our common stock registered hereunder are being registeredoffered for sale hereby will be soldby Selling Security Holders at a price per share of $0.05 for the duration of the offering. Assuming all shares being offered are sold, we will receive $200,000 in gross proceeds. There is no minimum amount we are required to raise from this offering and any funds received will be immediately available to us. There is no guarantee that this offering will successfully raise enough funds to institute our business plan. Additionally, there is no guarantee that a public market will ever develop and you may be unable to sell your shares.

Shares Offered by

the Company

 Price to the Public 

Selling Agent

Commissions

 Proceeds to the Company 

Per Share

 

$

0.05

 

Not applicable

 

$

0.05

 

Minimum Purchase

  

None

 

Not applicable

  

Not applicable

 

Total (3,500,000 shares)

 

$

200,000

 

Not applicable

 

$

200,000

 

You should rely onlyprices established on the information contained in this prospectus. We have not authorized anyone to provide information different from that contained in this prospectus. The information in this prospectus is not complete and may be changed. A registration statement relating to these securities has been filed withOTCQB during the Securities and Exchange Commission. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted. The shares being offered by this prospectus will be offered for a period not to exceed two years from the original effective dateterm of this prospectus.offering. On March 1 , 2019, the closing bid price of our common stock was $0.0427 per share. These prices will fluctuate based on the demand for our common stock.

 

An investmentInvesting in our common stockCommon Stock involves a high degree of risk.We urge you See “Risk Factors” to read carefully the “Risk Factors” section beginning on page 7, where we describe specific risks associated with an investment inMy Cloudz, Inc. and these securities,about factors you should consider before you make your investment decision.buying shares of our Common Stock.

 

NEITHER THE SECURITIES AND EXCHANGE COMMISSION NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE SECURITIES OR PASSED UPON THE ADEQUACYDETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR ACCURACY OF THIS PROSPECTUS.COMPLETE. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.

 

The dateinformation in this Prospectus is not complete and may be changed. We may not sell these securities until the registration statement filed with the Securities and Exchange Commission becomes effective. This Prospectus is not an offer to sell these securities and we are not soliciting an offer to buy these securities in any state where the offer or sale is not permitted or would be unlawful prior to registration or qualification under the securities laws of this prospectus is _______, 2015.any such state.

 

 

3

The following table of contents has been designed to help you find information contained in this prospectus. We encourage you to read the entire prospectus.

TABLE OF CONTENTS

PART I - INFORMATION REQUIRED IN PROSPECTUS

Page

Prospectus Summary

5

Risk Factors

8

Risk Factors Relating to Our Company

8

Risk Factors Relating to Our Common Stock

 8

Use of Proceeds

13

Determination of Offering Price

13

Selling Security Holders

14

Plan of Distribution

16

Description of Securities

17

Description of Business

20

Our Executive Offices

26

Legal Proceedings

26

Market for Common Equity and Related Stockholder Matters

26

Management’s Discussion and Analysis of Financial Condition and Results of Operations

27

Directors, Executive Officers, Promoters and Control Persons

29

Executive Compensation

31

Security Ownership of Certain Beneficial Owners and Management

34

Certain Relationships and Related Transactions

35

Disclosure of Commission Position on Indemnification for Securities Act Liabilities

35

Where You Can Find More Information

36

Changes In and Disagreements with Accountants on Accounting and Financial Disclosure

36

Financial Statements

F-1

 

TABLE OF CONTENTS

PROSPECTUS SUMMARY

5

FORWARD-LOOKING STATEMENTS

5

RISK FACTORS

7

USE OF PROCEEDS

12

DETERMINATION OF OFFERING PRICE

13

DILUTION

13

PLAN OF DISTRIBUTION

13

DESCRIPTION OF SECURITIES

14

INTERESTS OF NAMED EXPERTS AND COUNSEL

15

DESCRIPTION OF BUSINESS

16

AVAILABLE INFORMATION

20

LEGAL PROCEEDINGS

20

EXECUTIVE COMPENSATION

23

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

25

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

26

DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES

26

INDEX TO THE FINANCIAL STATEMENTS

F-1

 

4

 

PROSPECTUS SUMMARY

 

ThisYou should read the following summary provides a brief overview oftogether with the key aspects of this offering. Because it is only a summary, it does not contain all of themore detailed information contained elsewhere in this prospectus or in the documents incorporated by reference into this prospectus or included as exhibits to the registration statement that contains this prospectus. This summary may not contain all of the information that may be important to you. We urge you to read this entire prospectus carefully, including the risks of investing in our common stock discussed under “Risk Factors” and the financial statements and other information attached to this prospectus, before making an investment decision. 

All referencesappearing elsewhere in this prospectus to “MCI,” “we,” “us,” “our,” “the Company” or “our Company” refer to My Cloudz, Inc.

A Cautionary Note on Forward-Looking Statements

Prospectus. This Prospectus contains forward-looking statements which relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," or "continue" or the negative of these terms or other comparable terminology. These statements are only predictionsthat involve risks and involve known and unknown risks, uncertainties and other factors, including the risks in the section entitled "Risk Factors," that may cause our industry'suncertainties. Our actual results levels of activity, performance, or achievements to becould differ materially different from any future results, levels of activity, performance, or achievements expressed or implied by these forward-looking statements.

Whilethose anticipated in these forward-looking statements as a result of certain factors, including those set forth under “Risk Factors” and any assumptions upon which they are based, are madeelsewhere in good faiththis Prospectus. Unless the context indicates or suggests otherwise, references to “we,” “our,” “us,” the “Company,” “GridIron” or the “Registrant” refer to GridIron BioNutrients, Inc., a Nevada corporation and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.its wholly owned subsidiary, GridIron Ventures, Inc., a Nevada corporation.

 

Our CompanyOUR COMPANY

 

My Cloudz, Inc. was incorporatedOverview of GridIron BioNutrients

GridIron BioNutrients is in the Statebusiness of Nevada as a for-profit Company on July 31, 2014. We intend to provide an on-line interface service for consumers to efficientlymarketing and effectively maintain, storeselling cannabidiol products line of capsules, oil, ointments, concentrates and retrieve personal records and information through cloud computing. The Company has not yet implemented its business model and to date has generated no revenues. Neither the Company’s management nor any affiliates of the Company or its management have previously been involved in the management or ownership of a development stage company.water. Our principal products currently include:

 

Since becoming incorporated, My Cloudz, Inc. has not made any significant purchase or sale of assets, nor has it been involved in any mergers, acquisitions or consolidations nor has the Company any plans nor does any of its stockholders have any plans to merge into an operating company, to enter into a change of control or similar transaction or to change our management. Neither management nor the Company’s shareholders have plans or intentions to be acquired. My Cloudz, Inc. is not a blank check registrant as that term is defined in Rule 419(a)(2) of Regulation C of the Securities Act of 1933, since it has a specific business plan or purpose.Gridiron MVP™ Water Beverage (16.9oz)


Risks and Uncertainties Facing the CompanyGridiron MVP™ Concentrate (2oz / 4oz)

 

The Company hasThese products contain a limited operating historyproprietary blend of humic and may experience losses in the near term. We are dependent on salesfulvic acid, trace minerals, probiotics, electrolytes, cannabidiol (CBD) within an alkaline of our equity securities to meet our cash requirements for the future proposed expansion of our business operations. As of February 28, 2015, we had an accumulated deficit of $11,358. Management of the Company must continually develop and refine its strategies and goals in order to execute the business plan of the Company on a broad scale and expand the business. One of the biggest challenges facing the Company will be in securing adequate capital to continue to expand its business and increase operations. Secondarily, an ongoing challenge remains the maintenance of an efficient operating structure and business model. The Company must keep its expenses and the costs of employees at a minimum in order to generate a profit from the revenues that it anticipates from its clients. Third, in order to expand, the Company will need to continue implementing effective sales and marketing strategies to reach and forge new business relationships. The Company has devised its initial sales, marketing and advertising strategies, however, the Company will need to continue refinement of these strategies and also skillfully implement these plans in order to achieve ongoing and long-term success in its business. Moreover, the above assumes that the Company’s services are consistently met with client satisfaction in the marketplace and exhibit steady success amongst the potential customer base, neither of which is reasonably predictable or guaranteed.pH10.

 

Risk FactorsOur operations to-date have primarily consisted of obtaining inventory of CBD products, securing purchase and supply contracts and office space and developing relationships with potential partners.

 

An investment inOur board of directors consists of one persons: Timothy Orr. Mr. Orr also serves as our sole officer, holding the sharesoffices of our common stock involves a high degree of riskPresident, Secretary and may not be an appropriate investment for persons who cannot afford to lose their entire investment. For a discussion of some of the risks you should consider before purchasing shares of our common stock, you are urged to carefully review and consider the section entitled “Risk Factors” beginning on page 3 of this prospectus.Treasurer.

 

The OfferingOur principal administrative offices are located at 1119 West 1st Ave., Ste. G, Spokane, Washington 99021. Our website is www.gridironmvp.com.

 

We are offering a total of up to 4,000,000 shares of our common stock. For a complete description of the terms and conditions of our common stock, you are referred to the section in this prospectus entitled “Description of Securities.”

Shares of Common Stock offered

4,000,000

Shares of Common Stock outstanding before the offering(1)

5,000,000

Shares of Common Stock outstanding after the offering(2)(3)

9,000,000

(1)

Prior to this offering, the Company’s sole officer and director owns 100% of the outstanding shares of the Company and if all 4,000,000 shares are sold, he will own over 55.5% after this offering is completed. As a result, he will have control of the Company.

(2)

The shares being offered by this prospectus will be offered for a period not to exceed twelve months from the original effective date of this prospectus.

(3)

There is no public market for the common shares. The price per share is $0.05. My Cloudz, Inc. may not be able to meet the requirement for a public listing or quotation of its common stock. Further, even if My Cloudz, Inc. common stock is quoted or granted listing, a market for the common shares may not develop

Use of Proceeds“Smaller Reporting Company”

 

We expect to use the proceedsare a “smaller reporting company,” meaning that we receiveare not an investment company, an asset-backed issuer, or a majority-owned subsidiary of a parent company that is not a smaller reporting company and have (i) a public float of less than $250  million or (ii) annual revenues of less than $100 million during the most recently completed fiscal year and no public float, or a public float of less than $700 million. As a “smaller reporting company,” the disclosure we will be required to provide in our SEC filings are less than it would be if we were not considered a “smaller reporting company.” Specifically, “smaller reporting companies” are able to provide simplified executive compensation disclosures in their filings; are exempt from the saleprovisions of securities offered hereby to cover the costs associated with this offering estimated at $11,400 and for the initial funding of our business development and for general working capital purposes. See the section herein entitled “Use of Proceeds” for more information. AsSection 404(b) of the dateSarbanes-Oxley Act of this prospectus, we2002 requiring that independent registered public accounting firms provide an attestation report on the effectiveness of internal control over financial reporting; are not required to conduct say-on-pay and frequency votes until annual meetings occurring on or after January 21, 2013; and have generated no revenues fromcertain other decreased disclosure obligations in their SEC filings, including, among other things, being permitted to provide two years of audited financial statements in annual reports rather than three years. Decreased disclosures in our business operations.SEC filings due to our status as a “smaller reporting company” may make it harder for investors to analyze the Company’s results of operations and financial prospects.

 

Principal Office, Telephone Number and Internet Address

Our business office is located at 112 North Curry Street Carson City Nevada 89703, our telephone number is (775) 284-3703 and our fax number is (800) 761-5717. Our website is currently under development.

 

5
Table of Contents

Summary Financial Information

 

To date theEmerging Growth Company has generated no revenues from its business operations and has incurred accumulated operating losses since inception of $11,358. As of February 28, 2015, the Company had a working capital deficit of $6,357. As of February 28, 2015, the Company has received $13,677. The amounts due to the related party are expected to be repaid and considered a current liability.

The Company’s capitalization is 200,000,000 common shares with a par value of $0.001 per share. No preferred shares have been authorized or issued. As of February 28, 2015, the Company has not granted any stock options and has not recorded any stock-based compensation. On November 10, 2014, the Company issued 5,000,000 common shares at $0.001 per share to the sole director and President of the Company for cash proceeds of $5,000.

RISK FACTORS

The purchase of shares of our common stock is very speculative and involves a very high degree of risk. An investment in our Company is suitable only for the persons who can afford the loss of their entire investment. Accordingly, investors should carefully consider the following risk factors, as well as other information set forth herein, in making an investment decision with respect to our securities.

Risks Relating to Our Business

We are a development stage company and have a limited history of operations, making an evaluation of us extremely difficult. At this stage, even with our good faith efforts, there is nothing on which to base an assumption that we will become profitable or generate any significant amount of revenues.

We have only a limited operating history on which you can evaluate our business, financial condition and operating results. We have not yet recognized revenues from our operations, and since our inception we have incurred significant operating losses and negative cash flows. We have been focused on organizational, start-up activities and business plan development since we incorporated. There is nothing at this time on which to base an assumption that our business operations will prove to be successful or that we will ever be able to operate profitably. Our future operating results will depend on many factors, including our ability to raise adequate working capital, demand for our product, the level of our competition and our ability to attract and maintain key management and employees. If we cannot achieve operating profitability, we may not be able to meet our working capital requirements, which will have a material adverse effect on our operating results and financial condition.

Our independent auditors have expressed substantial doubt about our ability to continue as a going concern, which may hinder our ability to obtain future financing.

The report of our independent auditors dated April 13, 2015 on our financial statements for the period ended August 31, 2014 included an explanatory paragraph indicating that there is substantial doubt about our ability to continue as a going concern. Our auditors’ doubts are based on our incurring significant losses from operations and our working capital deficit position. Our ability to continue as a going concern will be determined by our ability to obtain additional funding in the short term to enable us to realize the commercialization of our planned business operations. Our financial statements do not include any adjustments that might result from the outcome of this uncertain.

We are an “emerging growth company” under the JOBS Act, and we cannot be certain if the reduced disclosure requirements applicable to emerging growth companies will make our common stock less attractive to investors.

 

We are an “emerging‘‘emerging growth company,”company’’ within the meaning of the federal securities laws. For as defined inlong as we are an emerging growth company, we will not be required to comply with the Jumpstart Our Business Startups Act of 2012, or the JOBS Act, and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies” including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, the reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and the exemptions from the requirements of holding a nonbinding advisory vote on executive compensation and shareholder approval of any golden parachute payments not previously approved. We intend to take advantage of these reporting exemptions until we are no longer an emerging growth company. For a description of the qualifications and other requirements applicable to emerging growth companies and certain elections that we have made due to our status as an emerging growth company, see “Risk Factors—Risks Related to this Offering and our Common Stock – We are an ‘emerging growth company’ and we cannot predictbe certain if investorsthe reduced disclosure requirements applicable to emerging growth companies will findmake our common stock less attractive becauseto investors” on page 8 of this prospectus.

Our fiscal year end is August 31. Our audited financial statements for the year ended August 31, 2018 were prepared assuming that we may relywill continue our operations as a going concern. Our accumulated loss for the period from July 20, 2017 (inception) to the fiscal quarter ended November 30, 2018 was $1,097,175. For the three months ended November 30, 2017, we earned revenues from our CBD product lines of $5,140. During the three months ended November 30, 2018, we earned revenue from our product lines of $1,128.

Due to the uncertainty of our ability to meet our current operating and capital expenses, our independent auditors have included a going concern opinion in their report on these exemptions. If some investors findour audited financial statements for the period ended August 31, 2018. The notes to our financial statements contain additional disclosure describing the circumstances leading to the issuance of a going concern opinion by our auditors.

THE OFFERING

This Prospectus relates to the resale of up to 17,362,400 shares of our Common Stock, issuable the Selling Security Holders, pursuant to a right to convert 8,882,400 shares of Series A Preferred Stock at a conversion price of $0.125 per share, and pursuant to a right to convert the Warrants into 8,480,000 shares of common stock.

The Offering

Common Stock offered by Selling Shareholders

This Prospectus relates to the resale of 17,362,400 shares of our Common Stock, issuable to the Selling Security Holders.

Common Stock outstanding before the Offering

132,637,500 shares of Common Stock as of the date of this Prospectus.

Common Stock outstanding after the Offering

149,999,900 shares of Common Stock (1)

Terms of the Offering

The Selling Security Holders will determine when and how they will sell the Common Stock offered in this Prospectus. The prices at which the Selling Security Holders may sell the shares of Common Stock in this Offering will be determined by the prevailing market price for the shares of Common Stock or in negotiated transactions.

Termination of the Offering

The Offering will conclude upon such time as all of the Common Stock has been sold pursuant to the Registration Statement.

Trading Market

Our Common Stock is subject to quotation on the OTCQB Market under the symbol “GMVP.”

Use of proceeds

The Company is not selling any shares of the Common Stock covered by this Prospectus. As such, we will not receive any of the Offering proceeds from the registration of the shares of Common Stock covered by this Prospectus. See “Use of Proceeds.”

Risk Factors

The Common Stock offered hereby involves a high degree of risk and should not be purchased by investors who cannot afford the loss of his/her/its entire investment. See “Risk Factors”.

(1) This total reflects the number of shares of Common Stock that will be outstanding assuming that (i) the Selling Security Holders convert all of the 8,882,400 shares of Series A Preferred Stock held by them into 8,882,400 shares of our common stock less attractive asat a result, there may be a less active trading market for ourconversion price of $0.125 per share, and (ii) the Selling Security Holders exercise all of the Warrants held by them into 8,480,000 shares of common stock and our stockat an exercise price may be more volatile.of $0.165 per share.

 

 

6
Table of Contents

 

InSUMMARY FINANCIAL INFORMATION

The tables and information below are derived from our audited financial statements for the fiscal year ended August 31, 2018, and our unaudited financial statements for the three months ended November 30, 2018. Our working capital deficit as at November 30, 2018 was $64,433.

 

 

August 31,

2018

 

 

 

 

 

Financial Summary (Audited)

 

 

 

Cash and Deposits

 

$774,468

 

Total Assets

 

 

862,743

 

Total Liabilities

 

 

686,868

 

Total Stockholder’s Equity (Deficit)

 

$175,875

 

 

 

For the Fiscal Year ended August 31, 2018

 

 

 

 

 

Consolidated Statements of Expenses and Net Loss

 

 

 

Total Operating Expenses

 

$371,864

 

Net Loss for the Period

 

$

(436,118)

 

 

November 30,

2018

 

 

 

 

 

Financial Summary (Unaudited)

 

 

 

Cash and Deposits

 

$246,622

 

Total Assets

 

 

603,001

 

Total Liabilities

 

 

531,109

 

Total Stockholder’s Equity

 

$

71,892

 

 

 

For the three months ended November 30,

2018

 

 

 

(unaudited)

 

 

 

 

 

Total Operating Expenses

 

$162,663

 

Net Loss for the Period

 

$

(91,408)

7
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RISK FACTORS

An investment in our common stock involves a number of very significant risks. You should carefully consider the following known material risks and uncertainties in addition Section 107to other information in this prospectus in evaluating our company and its business before purchasing shares of our company’s common stock. You could lose all or part of your investment due to any of these risks.

RISKS RELATING TO OUR COMPANY

Our auditors have expressed substantial doubt about our ability to continue as a going concern.

Our audited financial statements for the JOBS Act also providesperiod from July 20, 2017 (inception) through August 31, 2018 were prepared assuming that an “emerging growth company” can take advantagewe will continue our operations as a going concern. Our wholly-owned subsidiary, GridIron BioNutrients, Inc., was incorporated on July 20, 2017, and does not have a history of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended, or the Securities Act, for complying with new or revised accounting standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We are choosing to take advantage of the extended transition period for complying with new or revised accounting standards.earnings. As a result, our financial statementsindependent accountants in their audit report have expressed substantial doubt about our ability to continue as a going concern. Continued operations are dependent on our ability to complete equity or debt financings or generate profitable operations. Such financings may not be comparableavailable or may not be available on reasonable terms. Our financial statements do not include any adjustments that may result from the outcome of this uncertainty.

If our estimates related to future expenditures are erroneous or inaccurate, our business will fail and you could lose your entire investment.

Our success is dependent in part upon the accuracy of our management’s estimates of our future cost expenditures for legal and accounting services (including those we expect to incur as a publicly reporting company), for website marketing and development expenses, and for administrative expenses, which management estimates to be approximately $500,000 over the next twelve months. If such estimates are erroneous or inaccurate, or if we encounter unforeseen costs, we may not be able to carry out our business plan, which could result in the failure of companiesour business and the loss of your entire investment.

If we are not able to develop our business as anticipated, we may not be able to generate revenues or achieve profitability and you may lose your investment.

Our wholly-owned subsidiary, GridIron BioNutrients, was incorporated on July 20, 2017, and our net loss for the period from inception (July 20, 2017) to November 30, 2018 was $(1,097,175). We have few customers, and we have not earned substantive revenues to date. Our business prospects are difficult to predict because of our limited operating history, and unproven business strategy. Our primary business activities will be focused on the commercialization of licensing our GridIron BioNutrients brand. Although we believe that comply with public company effective dates.our business plan has significant profit potential, we may not attain profitable operations and our management may not succeed in realizing our business objectives. If we are not able to develop out business as anticipated, we may not be able to generate revenues or achieve profitability and you may lose your entire investment.

Potential disputes related to the existing agreement pursuant to which we purchased the intellectual property rights underlying our business could result in the loss of rights that are material to our business.

The acquisition of the intellectual property of GridIron BioNutrients, by way of the Share Exchange Agreement, by and among the Company, GridIron BioNutrients, Inc., and the holders of common stock of GridIron BioNutrients, is of critical importance to our business and involves complex legal, business, and scientific issues. Although we have clear title to and no restrictions to use our intellectual property, disputes may arise regarding the Share Exchange Agreement, including but not limited to, the breaches of representations or other interpretation-related issues. If disputes over intellectual property that we have acquired under the Share Exchange Agreement prevent or impair our ability to maintain our current intellectual property, we may be unable to successfully develop and commercialize our business.

The US Food and Drug Administration (“FDA”) and other government regulation may restrict our ability to sell our products.

 

We are subject to various federal, state and local laws and regulations affecting our business. Our products are subject to regulation by the FDA, including regulations with respect to labeling of products, approval of ingredients in products, claims made regarding the products, and disclosure of product ingredients. If we do not comply with these regulations, the FDA could force us to stop selling the affected products or require us to incur substantial costs in adopting measures to maintain compliance with these regulations. Our advertising claims regarding our products are subject to the jurisdiction of the FTC as well as the FDA. In both cases we are required to obtain scientific data to support any advertising or labeling health claims we make concerning our products. If we are unable to provide the required support for such claims, the FTC may stop us from making such claims or require the company to stop selling the affected products.

We expect to suffer losses in the immediate future that may cause us to curtail or discontinue our operations.

We expect to incur operating losses in future periods. These losses will remain an “emerging growth company” for upoccur because we do not yet have substantive revenues to five years, althoughoffset the expenses associated with the development of brand and our business operations, generally. We cannot guarantee that we will loseever be successful in generating revenues in the future. We recognize that status sooner if our revenues exceed $1 billion, if we issue more than $1 billion in non-convertible debt in a three year period,are unable to generate revenues, we will not be able to earn profits or if the market value of our common stock that is held by non-affiliates exceeds $700 million.

We anticipate operating expenses will increase prior to earning revenue and we may never achieve profits.

The Company anticipates increases in its operating expenses, without realizing any revenues from its business activities. Within the next 12 months, the Company will have costs related to: (i) market research (ii) website development cost, (iii) marketing, (iv) administrative expenses and (v) the expenses of this offering.

continue operations. There is no history upon which to base any assumption as to the likelihood that the Companywe will prove successful. We cannotsuccessful, and we can provide investors with anyno assurance that our productwe will attract customers; generate any operating revenuerevenues or ever achieve profitable operations. If we are unable to addressunsuccessful in addressing these costs, there is a high probability thatrisks, our business can fail, which will result in the loss of your entire investment.almost certainly fail.

 

8
Table of Contents

We will requiremay not be able to execute our business plan or stay in business without additional funding.

Our ability to generate future operating revenues depends in part on whether we can obtain the financing in ordernecessary to implement our business plan. InWe will likely require additional financing through the event we are unableissuance of debt and/or equity in order to acquire additionalestablish profitable operations, and such financing may not be forthcoming. As widely reported, the global and domestic financial markets have been extremely volatile in recent months. If such conditions and constraints continue or if there is no investor appetite to finance our specific business, we may not be able to implement our business plan resulting in a loss of revenues and ultimately the loss of your investment.

To fully implement our business plan, we will require substantialacquire additional funding following this offering. We plan to raisefinancing through credit markets or equity markets. Even if additional funds through private placements, registered offerings, debt financing or other sources to maintain and expand our operations. Adequate funds for this purposeis available, it may not be available on terms favorable to us mayus. At this time, we have not be available, and if available, on terms significantly more adverseidentified or secured sources of additional financing. Our failure to us than are manageable. Without new funding, we may be only partially successful or completely unsuccessful in implementing our business plan, and our stockholderssecure additional financing when it becomes required will lose part or all of their investment.

The loss or unavailability to the Company of Mr. Vongsa’s services would have an adverse effect on our ability to remain in business.

The loss of the services of Timothy Orr, our Chief Executive Officer and Chairman of the Board of Directors, or our failure to timely identify and retain competent personnel could negatively impact our ability to sell our products.

We are highly dependent on Timothy Orr. The development of our brand licensing business will continue to place a significant strain on our limited personnel, management, and other resources. Our future success depends upon the continued services of our executive officers who are developing our business, and on our ability to identify and retain competent consultants and employees with the skills required to execute our business objectives. The loss of the services of Timothy Orr or our failure to timely identify and retain competent personnel would negatively impact our ability to develop our business and license our brand, which could adversely affect our financial results and impair our growth.

We are an independent brand licensing company, with no experience in the market, and failure to successfully compensate for this inexperience may adversely impact our operations and prospectsfinancial position.

We operate as an independent business, whose existence is predicated on the brand name GridIron BioNutrients, and we have no substantial tangible assets in a highly competitive industry. We have little operating history, no customer base and little revenue to date. This makes it difficult to evaluate our future performance and prospects. Our business must be considered in light of the risks, expenses, delays and difficulties frequently encountered in establishing a new business in an emerging and evolving industry characterized by intense competition, including:

·

our business model and strategy are still evolving and are continually being reviewed and revised;

·

we may not be able to raise the capital required to develop our initial customer base and reputation;

·

we may not be able to successfully implement our business model and strategy; and

·

our management consists is conducted by one persons, Timothy Orr, our President and Chief Executive Officer and a director.

We cannot be sure that we will be successful in meeting these challenges and addressing these risks and uncertainties. If we are unable to do so, our business will not be successful and the value of your investment in our company will decline.

Our failure to protect our intellectual property and proprietary technology may significantly impair our competitive advantage.

Our success and ability to compete depends in large part upon protecting our proprietary technology. We rely on a combination of patent, trademark and trade secret protection, nondisclosure and nonuse agreements to protect our proprietary rights. The steps we have taken may not be ablesufficient to obtain newprevent the misappropriation of our intellectual property, particularly in foreign countries where the laws may not protect our proprietary rights as fully as in the United States. The patent and trademark law and trade secret protection may not be adequate to deter third party infringement or misappropriation of our patents, trademarks and similar proprietary rights.

We may in the future initiate claims or litigation against third parties for infringement of our proprietary rights in order to determine the scope and validity of our proprietary rights or the proprietary rights of our competitors. These claims could result in costly litigation and the diversion of our technical and management underpersonnel.

9
Table of Contents

We may face costly intellectual property infringement claims, the same financial arrangements,result of which would decrease the amount of cash we would anticipate to operate and complete our business plan.

We anticipate that from time to time we will receive communications from third parties asserting that we are infringing certain copyright, trademark and other intellectual property rights of others or seeking indemnification against alleged infringement. If anticipated claims arise, we will evaluate their merits. Any claims of infringement brought of third parties could result in protracted and costly litigation, damages for infringement, and the necessity of obtaining a license relating to one or more of our products or current or future technologies, which may not be available on commercially reasonable terms or at all. Litigation, which could result in a loss of your investment.

Our business plan is significantly dependent upon the abilities and continued participation of Mr. Vongsa, our President and sole Director. It would be difficult to replace Mr. Vongsa at such an early stage of development. The loss by or unavailabilitysubstantial cost to us of Mr. Vongsa’s services would have an adverse effect on our business, operations and prospects. In the event that we are unable to locate or employ personnel to replace Mr. Vongsa, we would be required to cease pursuing our business opportunity, which would result in a loss of your investment.

Current management’s lack of experience in operating a public company could impact your return on investment, if any.

As a resultdiversion of our reliance on Mr. Vongsa,resources, may be necessary to enforce our patents or other intellectual property rights or to defend us against claimed infringement of the rights of others. Any intellectual property litigation and his lack of experience in operating a public company, our investors are at risk in losing their entire investment. Mr. Vongsa intendsthe failure to hire personnel in the future, when sufficiently capitalized, who would have the experience required to manage our Company. Such management is not anticipated until the occurrence of future financing. Until such a future offering occurs, and until such management is in place, we are reliant upon Mr. Vongsa to make the appropriate management decisions.


Legal issues may arise relating to trademark infringement, security concerns and sharing of proprietary data resources, which may prevent us from developing our anticipated business and negatively impact our future profits.

Cloud computing is a relatively new marketplace as such certain legal issues may arise in the future that mayobtain necessary licenses or other rights could have a material impactadverse effect on the our anticipated business such as trademark infringement, security concerns relating to the storage of individual’s data and sharing of proprietary data resources to name a few. Unforeseen legal issues may impact us in the future and may limit or prevent us from making a profit, which in turn may result in a complete loss of any investment made into the Company.

Our officers and directors are entitled to indemnification and limitation of liability under our organizational documents and applicable law.

Our officer(s) and director(s) are required to exercise good faith and high integrity in the management of our affairs. Our certificate of incorporation provides, however, that our officer(s) and director(s) shall have no personal liability to us or our stockholders for damages for any breach of duty owed to us or our stockholders, unless they breached their duty of loyalty, did not act in good faith, knowingly violated a law, or received an improper personal benefit. Our certificate of incorporation and bylaws also provide for the indemnification by us of our officers and directors against any losses or liabilities they may incur by reason of their serving in such capacitates, provided that they do not breach their duty of loyalty, act in good faith, do not knowingly violate a law, and do not received an improper personal benefit.

We may be unable to comply with disclosure controls and proceduresnecessary to make required public filings.

We currently have no full-time employees other than our President, although we intend to add personnel following this offering. Given our limited personnel, we may be unable to maintain effective controls to insure that we are able to make all required public filings in a timely manner. If we are successful in having our common stock listed on a stock exchange or quotation service, and if we do not make all public filings in a timely manner, our shares of common stock may be delisted and we could also be subject to regulatory action and/or lawsuits by stockholders.

Sarbanes-Oxley and federal securities laws reporting requirements can be expensive.

As a public reporting company, we will be subject to the Sarbanes-Oxley Act of 2002, as well as the information and reporting requirements of the Exchange Act, and other federal securities laws. The costs of compliance with the Sarbanes-Oxley Act and of preparing and filing annual and quarterly reports, proxy statements and other information with the SEC, and furnishing audited reports to stockholders, are significant and may increase in the future.

Risks Related To This Offering

Because there is no public trading market for our common stock, you may not be able to resell your stock.

There is currently no public trading market for our common stock. Therefore there is no central place, such as stock exchange or electronic trading system, to resell your shares. If you do want to resell your shares, you will have to locate a buyer and negotiate your own sale in compliance with applicable federal and state securities laws.

Because the Securities and Exchange Commission imposes additional sales practice requirements on brokers who deal in shares that are penny stocks, some brokers may be unwilling to trade them. This means that you may have difficulty reselling your shares and this may cause the price of the shares to decline.

Our shares would be classified as penny stocks and are covered by Section 15(g) of the Securities Exchange Act of 1934 and the rules promulgated thereunder which impose additional sales practice requirements on brokers/dealers who sell our securities in this offering or in the aftermarket. For sales of our securities, the broker or dealer must make a special suitability determination and receive from you a written agreement prior to making a sale for you. Because of the imposition of the foregoing additional sales practices, it is possible that brokers will not want to make a market in our shares. This could prevent you from reselling your shares and may cause the price of the shares to decline.


NASD sales practice requirements may limit a stockholder's ability to buy and sell our stock.

The NASD has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low priced securities to their non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer's financial status, tax status, investment objectives and other information. Under interpretations of these rules, the NASD believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers. The NASD requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may have the effect of reducing the level of trading activity and liquidity of our common stock. Further, many brokers charge higher transactional fees for penny stock transactions. As a result, fewer broker-dealers may be willing to make a market in our common stock, reducing a stockholder's ability to resell shares of our common stock.

Our company has a concentration of stock ownership and control, which may have the effect of delaying, preventing, or deterring a change of control.

At present, the company’s President owns 100% of our total outstanding shares of common stock before this offering. As a result of the concentrated ownership of the stock, our President will be able to control all matters requiring stockholder approval, including the election of directors and approval of mergers and other significant corporate transactions. This concentration of ownership may have the effect of delaying, preventing or deterring a change in control of our company. It could also deprive our stockholders of an opportunity to receive a premium for their shares as part sale of our company and it may affect the market price of our common stock.

The Company is not fully reporting under the Exchange Act and thus information about the company may be limited.

Until our common stock is registered under the Exchange Act, we will not be a fully reporting company but only subject to the reporting obligations imposed by Section 15(d) of the Exchange Act. This severely limits the information and regulatory oversight to which we will be subject. Additionally, given the number of shareholders in our company, there are statutory provisions that may result in the automatic termination of any periodic reporting responsibilities in the event that we have less than 300 shareholders after the year that our registration statement becomes effective.

Risks Related to the Company’s Market and Strategy

The Market For Cloud Computing Services is Evolving and may Not Continue to Develop or Grow Rapidly Enough for us to Become Consistently Profitable. 

The cloud computing commerce market is still evolving and currently growing at a rapid rate. We believe future growth in the electronic commerce market will be driven by the cost, ease-of-use and quality of products and services offered to consumers and businesses. In order to consistently increase and maintain our profitability, consumers and businesses must continue to adopt our services.

The Company’s anticipated services would be new, which may fail to find public acceptance.

The services to be provided by the Company are newly developed and have just begun to be offered on a commercial basis. It is possible that once released, the Company’s services will not find acceptance among its potential users of the product, third parties intending to distribute or resell the Company’s services, or the customers of such third parties.


Competition in the cloud computing industry is intense, and we have limited financial and personnel resources with which to compete.

Competition in the cloud computing industry is intense. Numerous companies headquartered throughout the world compete for consumer and users on a global basis. We are an insignificant participant in the cloud computing industry due to our limited financial and personnel resources. We presently operate with a sole employee, and anticipate that we will compete with other companies in our industry to hire additional qualified personnel which will be required to successfully operate our Company. We may be unable to attract the necessary investment capital or personnel to fully develop our marketing and business plan. Consequently, our revenues, operations and financial condition could be materially adversely affected.

Security and privacy breaches in our electronic information storage system may damage customer relations and inhibit our growth.

The secure transmission of confidential information over public networks is a critical element of the Company’s operations. Advances in computer capabilities, new discoveries in the field of cryptography or other events or developments could result in a compromise of the technology or other algorithms used to protect client transaction and other data, which could materially adversely affect our business, financial condition and results of operations. If we are unable to protect, or consumers perceive that we are unable to protect, the security and privacy of our electronic transactions, our growth and the growth of the electronic commerce market in general could be materially adversely affected. A security or privacy breach may cause our customers to lose confidence in our services, deter consumers from using our services, harm our reputation, expose us to liability, increase our expenses from potential remediation costs; and decrease market acceptance of electronic commerce transactions.

 

While we believe that we utilize designsWe incur costs associated with appropriate data security and integrity, there can be no assurance thatSEC reporting compliance, which may significantly affect our use of these applications will be sufficient to address changing market conditions or the security and privacy concerns of existing and potential subscribers.

Our proposed business depends substantially on customers signing-up, renewing, upgrading and expanding their subscriptions for our services.

Lack of subscribers and any decline in our customer renewals, upgrades and expansions would harm our future operating results. We plan to sell our application pursuant to service agreements that are generally one year in length. Our customers will have no obligation to renew their subscriptions after their subscription period expires, and they may not renew their subscriptions at the same or higher levels. Moreover, under specific circumstances, our customers have the right to cancel their service agreements before they expire. Our customers’ renewal rates may decline or fluctuate because of several factors, including their satisfaction or dissatisfaction with our services, the prices of our services, the prices of services offered by our competitors or reductions in our customers’ spending levels due to the macroeconomic environment or other factors. If we cannot get customers and if our customers do not renew their subscriptions for our services, renew on less favorable terms, or do not purchase additional functionality or subscriptions, our revenue may grow more slowly than expected or decline and our profitability and gross margin may be harmed.

We may become liable to our customers and lose customers if we have defects or disruptions in our service or if we provide poor service.

Because we plan to deliver our application as a service, errors or defects in software applications underlying our service, or a failure of our hosting infrastructure, may make our service unavailable to our potential customers. Since our customers will use our service to manage and store critical aspects of their personal records and business documents, any errors, defects, disruptions in service or other performance problems with our service, whether in connection with the day-to-day operations, upgrades or otherwise, could damage our customers’. If we have any errors, defects, disruptions in service or other performance problems with our suite, customers could elect not to renew, or delay or withhold payment to us, we could lose future sales or customers may make warranty claims against us and create costly litigation circumstances.


USE OF PROCEEDS

Our offering is being made on a self-underwritten basis: no minimum number of shares must be sold in order for the offering to proceed. The offering price per share is $0.05. The offering is being conducted on a “best efforts’ basis and the offering scenarios that follow are for illustrative purposes only. The actual amount of proceeds, if any, may differ. The following table sets forth the uses of proceeds assuming the sale of 25%, 50%, 75% and 100%, respectively, of the securities offered for sale by the Company.

 

If 25% of

 

If 50% of

 

If 75% of

 

If 100% of

 

Shares Sold

 

Shares Sold

 

Shares Sold

 

Shares Sold

        

GROSS PROCEEDS FROM THIS OFFERING

$

50,000

 

$

100,000

 

$

150,000

 

$

200,000

Less: OFFERING EXPENSES

           

Legal & Accounting

$

8,000

 

$

8,000

 

$

8,000

 

$

8,000

Printing

$

400

 

$

400

 

$

400

 

$

400

Transfer Agent

$

3,000

 

$

3,000

 

$

3,000

 

$

3,000

TOTAL:

$

11,400

 

$

11,400

 

$

11,400

 

$

11,400

            

Less: GENERAL BUSINESS DEVELOPMENT

           

Business travel expenses

$

3,000

 

$

5,000

 

$

8,000

 

$

10,000

Office supplies and expenses

$

550

 

$

1,300

 

$

3,050

 

$

4,300

Market research

$

2,500

 

$

7,000

 

$

9,000

 

$

10,000

Computer hardware

$

4,000

 

$

8,000

 

$

9,000

 

$

10,000

Server Farm Rental

$

3,000

 

$

3,500

 

$

5,000

 

$

6,000

TOTAL:

$

13,050

 

$

24,800

 

$

34,050

 

$

40,300

            

Less: SOFTWARE DEVELOPMENT

           

Software Development

$

13,550

 

$

35,500

 

$

71,250

 

$

110,000

            

TOTAL:

$

13,550

 

$

35,500

 

$

71,250

 

$

110,000

            

Less: SALES & MARKETING

           

Logo development:

$

3,000

 

$

5,500

 

$

7,000

 

$

10,000

Website Development

$

2,500

 

$

5,000

 

$

5,000

 

$

5,000

Web hosting

$

500

 

$

500

 

$

500

 

$

500

Online Advertising

$

6,000

 

$

17,300

 

$

20,800

 

$

22,800

            

TOTAL:

$

12,000

 

$

28,300

 

$

33,300

 

$

38,300

            

TOTAL:

$

0

 

$

0

 

$

0

 

$

0

TOTALS:

$

50,000

 

$

100,000

 

$

150,000

 

$

200,000


DETERMINATION OF OFFERING PRICE

As there is no established public market for our shares, the offering price and other terms and conditions relative to our shares have been arbitrarily determined by MCI and do not bear any relationship to assets, earnings, book value, or any other objective criteria of value. In addition, no investment banker, appraiser, or other independent third party has been consulted concerning the offering price for the shares or the fairness of the offering price used for the shares Among the factors considered were:

ü

Our cash requirements;

ü

The proceeds to be raised by the offering;

ü 

Our lack of operating history; and

ü

The amount of capital to be contributed by purchasers in this Offering in proportion to the amount of stock to be retained by our existing shareholder.

Our common stock is not listed on a public exchange. We intend to apply for quotation on the OTCBB. We cannot provide any assurance or guarantee that the Company will ever achieve a listing on the OTCBB or obtain any listing at all. If we are unable to get a listing investors in our common stock would likely not be able to ever sell their stock.

DILUTION

The price of the current offering is fixed at $0.05 per share. This price is significantly greater than the price paid by the Company’s sole officer and director for common equity since the Company’s inception on July 31, 2014. The Company’s sole officer and director paid $0.001 per share, a difference of $0.049 per share lower than the share price in this offering. Anyone investing in the Company’s common stock through this Offering will immediately have significant dilution of their common stock. Dilution represents the difference between the offering price and the net tangible book value per share immediately after completion of this offering. Net tangible book value is the amount that results from subtracting total liabilities and intangible assets from total assets. Dilution arises mainly as a result of our arbitrary determination of the offering price of the shares being offered. Dilution of the value of the shares you purchase is also a result of the lower book value of the shares held by our existing stockholders.

Plan of Distribution

5,000,000 common shares are issued and outstanding as of the date of this prospectus to our sole officer and director. The Company is registering an additional 4,000,000 shares of its common stock at the price of $0.05 per share. There is no arrangement to address the possible effect of the offering on the price of the stock.financial condition.

 

The Company will receive all proceeds frommade the sale of those shares. The price per share is fixed at $0.05 for the duration of this offering. Although our common stock is not listed on a public exchange, we intenddecision to apply for quotation on the Over-the-Counter Bulletin Board (OTCBB). In order to be quoted on the OTCBB, a market maker must filebecome an application on our behalfSEC “reporting company” in order to make a market for our common stock. There can be no assurance that a market maker will agree to file the necessary documents with FINRA, who, generally speaking, must approve the first quotation of a security by a market maker on the OTCBB, nor can there be any assurance that such an application for quotation will be approved. However, sales by the Company must be made at the fixed price of $0.05 for the duration of this offering.

The Company's shares may be sold to purchasers from time to time directly by and subject to the discretion of the Company. Further, the Company will not offer its shares for sale through underwriters, dealers, agents or anyone who may receive compensation in the form of underwriting discounts, concessions or commissions from the Company and/or the purchasers of the shares for whom they may act as agents. The shares sold by the Company may be occasionally sold in one or more transactions; all shares sold under this prospectus will be sold at a fixed price of $0.05 per share

The offering will conclude on the earlier of; (1) when all 5,000,000 shares of common stock have been sold, or (2) 180 days after this registration statement becomes effective with the Securities and Exchange Commission. There is no minimum number of common shares that we have to sell. There are no minimum purchase requirements. MCI may at its discretion extend the offering for an additional 90 days or such period as the Company deems reasonable.

In order to comply with the applicable securities laws and regulations. We incur certain costs of certain states, the securities will be offered or sold in those only if they have been registered or qualified for sale; an exemption from such registration or if qualification requirement is available andcompliance with which MCI has complied.


In addition and without limiting the foregoing, the Company will be subject to applicable provisions,SEC reporting rules and regulations underincluding, but not limited to attorneys’ fees, accounting and auditing fees, other professional fees, financial printing costs and Sarbanes-Oxley compliance costs in an amount estimated at approximately $25,000 per year. On balance, the Exchange Act with regardCompany determined that the incurrence of such costs and expenses was preferable to security transactions during the period of time when this Registration Statement is effective.Company being in a position where it had very limited access to additional capital funding.

 

In connection with the Company’s selling efforts in the offering, Sommay VongsaWe may be required to incur significant costs and require significant management resources to evaluate our sole officer and director will be selling shares on the Company’s behalf. Our sole officer and director will not registerinternal control over financial reporting as a broker-dealer pursuant torequired under Section 15404 of the ExchangeSarbanes-Oxley Act, but rather will rely upon the “safe harbor” provisions ofand any failure to comply or any adverse result from such evaluation may have an adverse effect on our stock price.

As a smaller reporting company as defined in Rule 3a4-112b-2 under the Securities Exchange Act of 1934, as amended, (the “Exchange Act”we are required to evaluate our internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act of 2002 (“Section 404”). Generally speaking, Rule 3a4-1 providesSection 404 requires us to include an exemptioninternal control report with our Annual Report on Form 10-K. This report must include management’s assessment of the effectiveness of our internal control over financial reporting as of the end of the fiscal year. This report must also include disclosure of any material weaknesses in internal control over financial reporting that we have identified. Failure to comply, or any adverse results from such evaluation could result in a loss of investor confidence in our financial reports and have an adverse effect on the trading price of our equity securities. Achieving continued compliance with Section 404 may require us to incur significant costs and expend significant time and management resources. No assurance can be given that we will be able to fully comply with Section 404 or that we and our independent registered public accounting firm would be able to conclude that our internal control over financial reporting is effective at fiscal year-end. As a result, investors could lose confidence in our reported financial information, which could have an adverse effect on the trading price of our securities, as well as subject us to civil or criminal investigations and penalties. In addition, our independent registered public accounting firm may not agree with our management’s assessment or conclude that our internal control over financial reporting is operating effectively.

We may not be able to meet the internal control reporting requirements imposed by the SEC resulting in a possible decline in the price of our common stock and our inability to obtain future financing.

As directed by Section 404 of the Sarbanes-Oxley Act, the SEC adopted rules requiring each public company to include a report of management on the company’s internal controls over financial reporting in its annual reports. Although the Dodd-Frank Wall Street Reform and Consumer Protection Act exempts companies with a public float of less than $250 million from the broker-dealer registration requirementsrequirement that our independent registered public accounting firm attest to our financial controls, this exemption does not affect the requirement that we include a report of management on our internal control over financial reporting and does not affect the requirement to include the independent registered public accounting firm’s attestation if our public float exceeds $250 million.

While we expect to expend significant resources in developing the necessary documentation and testing procedures required by Section 404 of the ExchangeSarbanes-Oxley Act, for persons associatedthere is a risk that we may not be able to comply timely with an issuer that participate in an offeringall of the issuer’s securities. Mr. Vongsarequirements imposed by this rule. Regardless of whether we are required to receive a positive attestation from our independent registered public accounting firm with respect to our internal controls, if we are unable to do so, investors and others may lose confidence in the reliability of our financial statements and our stock price and ability to obtain equity or debt financing as needed could suffer.

In addition, in the event that our independent registered public accounting firm is not subjectunable to any statutory disqualification, as that term is defined in Section 3(a)(39) of the Exchange Act. Mr. Vongsa will not be compensatedrely on our internal controls in connection with her participationits audit of our financial statements, and in the offeringfurther event that it is unable to devise alternative procedures in order to satisfy itself as to the material accuracy of our financial statements and related disclosures, it is possible that we would be unable to file our Annual Report on Form 10-K with the SEC, which could also adversely affect the market for and the market price of our common stock and our ability to secure additional financing as needed.

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RISKS ASSOCIATED WITH OUR SECURITIES

The price of our shares of common stock may not reflect our value and there can be no assurance that there will be an active market for our shares of common stock either now or in the future.

Although our common stock is quoted on the OTC Markets, our shares of common stock do not trade and the price of our common stock, if traded, may not reflect our value. There can be no assurance that there will be an active market for our shares of common stock either now or in the future. Market liquidity will depend on the perception of our operating business and any steps that our management might take to bring us to the awareness of investors. There can be no assurance given that there will be any awareness generated. Consequently, investors may not be able to liquidate their investment or liquidate it at a price that reflects the value of the business. As a result holders of our securities may not find purchasers our securities should they to sell securities held by them. Consequently, our securities should be purchased only by investors having no need for liquidity in their investment and who can hold our securities for an indefinite period of time.

If a more active market should develop, the paymentprice of commissions or other remuneration based either directly or indirectly onour shares of common stock may be highly volatile. Because there may be a low price for our shares of common stock, many brokerage firms may not be willing to effect transactions in our securities. Mr. VongsaEven if an investor finds a broker willing to effect a transaction in the shares of our common stock, the combination of brokerage commissions, transfer fees, taxes, if any, and any other selling costs may exceed the selling price. Further, many lending institutions will not permit the use of such shares of common stock as collateral for any loans.

Our common stock is not, norsubject to the “penny stock” rules of the SEC and the trading market in our securities is limited, which makes transactions in our stock cumbersome and may reduce the value of an investment in our stock.

Under U.S. federal securities legislation, our common stock will constitute “penny stock”. Penny stock is any equity security that has she been withina market price of less than $5.00 per share, subject to certain exceptions. For any transaction involving a penny stock, unless exempt, the past 12 months,rules require that a broker or dealer approve a potential investor’s account for transactions in penny stocks, and he is not, nor has she been within the past 12 months, an associated person of a broker or dealer. Atdealer receive from the endinvestor a written agreement to the transaction, setting forth the identity and quantity of the offering, Mr. Vongsa will continuepenny stock to primarily perform substantial dutiesbe purchased. In order to approve an investor’s account for transactions in penny stocks, the broker or dealer must obtain financial information and investment experience objectives of the person, and make a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks. The broker or dealer must also deliver, prior to any transaction in a penny stock, a disclosure schedule prepared by the Commission relating to the penny stock market, which, in highlight form sets forth the basis on which the broker or dealer made the suitability determination. Brokers may be less willing to execute transactions in securities subject to the “penny stock” rules. This may make it more difficult for investors to dispose of our common stock and cause a decline in the market value of our stock. Disclosure also has to be made about the risks of investing in penny stocks in both public offerings and in secondary trading and about the commissions payable to both the broker-dealer and the registered representative, current quotations for the Company orsecurities and the rights and remedies available to an investor in cases of fraud in penny stock transactions. Finally, monthly statements have to be sent disclosing recent price information for the penny stock held in the account and information on its behalf otherwise thanthe limited market in connection with transactions in securities. Mr. Vongsa will not participate in selling an offering of securities for any issuer more than once every 12 months other than in reliance on Exchange Act Rule 3a4-1(a)(4)(i) or (iii). MCI will pay all expenses incidental to the registration of the shares (including registration pursuant to the securities laws of certain states).penny stocks.

 

DescriptionWe may, in the future, issue additional common shares, which would reduce investors’ percent of Securities to be Registered

Common Stockownership and may dilute our share value.

 

Our authorized capital stock consistsArticles of Incorporation authorize the issuance of 200,000,000 shares of common stock, par value $0.001 per share. The holders of our common stock:

*

have equal ratable rights to dividends from funds legally available if and when declared by our Board of Directors;

*

are entitled to share ratably in all of our assets available for distribution to holders of common stock upon liquidation, dissolution or winding up of our affairs;

*

do not have preemptive, subscription or conversion rights and there are no redemption or sinking fund provisions or rights; and

*

are entitled to one non-cumulative vote per share on all matters on which stockholders may vote.

We refer you to the Bylaws of our Articles of Incorporation and the applicable statutesstock. As of the Statedate of Nevada for a more complete descriptionthis Prospectus, the Company had 132,637,500 shares of common stock issued and outstanding. Accordingly, we may issue up to an additional 77,362,500 shares of common stock. The future issuance of common stock and/or preferred stock will result in substantial dilution in the rights and liabilities of holders of our securities.

Non-cumulative Voting

Holders of sharespercentage of our common stock do notheld by our then existing shareholders. We may value any common stock issued in the future on an arbitrary basis. The issuance of common stock for future services or acquisitions or other corporate actions may have cumulative voting rights, which means that the holderseffect of more than 50%diluting the value of the outstanding shares votingheld by our investors, and might have an adverse effect on any trading market for the election of directors, can elect all of the directors to be elected, if they so choose and, in that event, the holders of the remaining shares will not be able to elect anyour common stock.

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Grays Peak LLC beneficially owns a majority of our directors. After this offering is completed, present stockholders will own approximately 44.44% ofstock, and accordingly, has control over stockholder matters, our outstanding shares.

Cash Dividendsbusiness and management.

 

As of the date of this prospectus, we have not declared or paid any cash dividends to stockholders. The declarationProspectus, Grays Peak LLC (“Grays Peak”), is the holder of any future cash dividend will be at85,000,000 shares of common stock of the Company. As a result, Grays Peak has the discretion to:

·

Elect or defeat the election of our directors;

·

Amend or prevent amendment of our Articles of Incorporation or Bylaws;

·

Effect or prevent a merger, sale of assets or other corporate transaction; and

·

Affect the outcome of any other matter submitted to the stockholders for vote.

Moreover, because of our Board of Directors and will depend upon our earnings, if any, our capital requirements and financialthe significant ownership position our general economic conditions and other pertinent conditions. It is our present intentionheld by Grays Peak, new investors may not be able to pay any cash dividends in the foreseeable future, but rather to reinvest earningseffect a change in our business operations.or management, and therefore, shareholders would have no recourse as a result of decisions made by management.

 


In addition, sales of significant amounts of shares held by our officers and directors, or the prospect of these sales, could adversely affect the market price of our common stock. Management’s stock ownership may discourage a potential acquirer from making a tender offer or otherwise attempting to obtain control of us, which in turn could reduce our stock price or prevent our stockholders from realizing a premium over our stock price.

 

Anti-Takeover ProvisionsState securities laws may limit secondary trading, which may restrict the states in which and conditions under which you can sell the shares offered by this prospectus.

Secondary trading in common stock sold in this offering will not be possible in any state until the common stock is qualified for sale under the applicable securities laws of the state or there is confirmation that an exemption, such as listing in certain recognized securities manuals, is available for secondary trading in the state. If we fail to register or qualify, or to obtain or verify an exemption for the secondary trading of, the common stock in any particular state, the common stock could not be offered or sold to, or purchased by, a resident of that state. In the event that a significant number of states refuse to permit secondary trading in our common stock, the liquidity for the common stock could be significantly impacted thus causing you to realize a loss on your investment.

The Company does not intend to seek registration or qualification of its shares of common stock the subject of this offering in any State or territory of the United States. Aside from a “secondary trading” exemption, other exemptions under state law and the laws of US territories may be available to purchasers of the shares of common stock sold in this offering,

Anti-takeover effects of certain provisions of Nevada state law hinder a potential takeover of us.

 

Though not now, we may be or in the future we may become subject to Nevada'sNevada’s control share law. A corporation is subject to Nevada'sNevada’s control share law if it has more than 200 stockholders, at least 100 of whom are stockholders of record and residents of Nevada, and it does business in Nevada or through an affiliated corporation. The law focuses on the acquisition of a "controlling interest"“controlling interest” which means the ownership of outstanding voting shares sufficient, but for the control share law, to enable the acquiring person to exercise the following proportions of the voting power of the corporation in the election of directors:

 

(i) one-fifth or more but less than one-third, (ii) one-third or more but less than a majority, or (iii) a majority or more. The ability to exercise such voting power may be direct or indirect, as well as individual or in association with others.

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The effect of the control share law is that the acquiring person, and those acting in association with it, obtains only such voting rights in the control shares as are conferred by a resolution of the stockholders of the corporation, approved at a special or annual meeting of stockholders. The control share law contemplates that voting rights will be considered only once by the other stockholders. Thus, there is no authority to strip voting rights from the control shares of an acquiring person once those rights have been approved. If the stockholders do not grant voting rights to the control shares acquired by an acquiring person, those shares do not become permanent non-voting shares. The acquiring person is free to sell its shares to others. If the buyers of those shares themselves do not acquire a controlling interest, their shares do not become governed by the control share law.

 

If control shares are accorded full voting rights and the acquiring person has acquired control shares with a majority or more of the voting power, any stockholder of record, other than an acquiring person, who has not voted in favor of approval of voting rights is entitled to demand fair value for such stockholder'sstockholder’s shares.

 

Nevada'sNevada’s control share law may have the effect of discouraging takeovers of the corporation.

 

In addition to the control share law, Nevada has a business combination law which prohibits certain business combinations between Nevada corporations and “interested stockholders” for three years after the “interested stockholder” first becomes an “interested stockholder,” unless the corporation’s board of directors approves the combination in advance. For purposes of Nevada law, an “interested stockholder” is any person who is (i) the beneficial owner, directly or indirectly, of ten percent or more of the voting power of the outstanding voting shares of the corporation, or (ii) an affiliate or associate of the corporation and at any time within the three previous years was the beneficial owner, directly or indirectly, of ten percent or more of the voting power of the then outstanding shares of the corporation. The definition of the term “business combination” is sufficiently broad to cover virtually any kind of transaction that would allow a potential acquiror to use the corporation’s assets to finance the acquisition or otherwise to benefit its own interests rather than the interests of the corporation and its other stockholders.

The effect of Nevada’s business combination law is to potentially discourage parties interested in taking control of us from doing so if it cannot obtain the approval of our board of directors.

Because we do not intend to pay any cash dividends on our common stock, our stockholders will not be able to receive a return on their shares unless they sell them.

We intend to retain any future earnings to finance the development and expansion of our business. We do not anticipate paying any cash dividends on our common stock in the foreseeable future. Unless we pay dividends, our stockholders will not be able to receive a return on their shares unless they sell them. Stockholders may never be able to sell shares when desired. Before you invest in our securities, you should be aware that there are various risks. You should consider carefully these risk factors, together with all of the other information included in this annual report before you decide to purchase our securities. If any of the following risks and uncertainties develop into actual events, our business, financial condition or results of operations could be materially adversely affected.

USE OF PROCEEDS

Selling Security Holders may sell all of the common stock offered by this Prospectus from time-to-time. We will not receive any proceeds from the sale of those shares of common stock. We may, however, receive up to $1,110,300 if all of the shares of Series A Preferred Stock are converted by the Selling Security Holders and if all of the Warrants are exercised for cash by the Selling Security Holders. Any such proceeds we receive will be used for working capital and general corporate matters.

We will pay for expenses of this offering, except that the Selling Security Holders will pay any broker discounts or commissions or equivalent expenses and expenses of its legal counsel applicable to the sale of its shares.

DETERMINATION OF THE OFFERING PRICE

There currently is a limited public market for our common stock. The Selling Security Holders may sell their shares in the over-the-counter market or otherwise, at market prices prevailing at the time of sale, at prices related to the prevailing market price, or at negotiated prices.

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SELLING SECURITY HOLDERS

The Conversion Shares and the Warrant Shares

Effective July 30, 2018, we entered into the Securities Purchase Agreement with the Selling Security Holders, pursuant to which the Company offered and sold an aggregate of $1,060,000 convertible preferred stock units (the “Units”). Each Unit consists of one share of Series A Preferred Stock (the “Series A Preferred Stock”) and one Warrant. The Company closed on the sale of the Units on August 10, 2018. The Company received $1,006,000, net of a 5% percent original issue discount for the Units, at closing of the sale of the Units.

Each share of Series A Preferred Stock has a dividend of 5% per annum, has a liquidation preference senior to all other capital stock of the Company, and is convertible at any time, at the election of the holder of the Series A Preferred Stock, into one share of common stock at a conversion price of $0.125 per share, which conversion price is subject to adjustment for a term of two (2) years for stock splits, stock dividends, combinations, or similar events, and has full ratchet anti-dilution protection. Additionally, each holder of Series A Preferred Stock and has voting rights equal to that number of shares of common stock into which such holder’s shares of Series A Preferred Stock would be convertible on the record date for the vote or consent of stockholders, and shall otherwise have voting rights and powers equal to the voting rights and powers of the common stock. The Company has a right to purchase any outstanding shares of Series A Preferred Stock, with 20 days’ notice, at (i) a 115% premium before 180 days after the closing, and (ii) a 125% premium following the 181st day after closing. The holders of shares of Series A Preferred Stock have a right to participate in 50% of all financings of the Company, except for certain exempt offers and sales, for a period of two (2) years following the closing or if there are no shares of Series A Preferred Stock outstanding.

Each Warrant is convertible into one share of common stock at a conversion price of $0.165 per share, for a term of three years, and contains a cashless exercise feature, if such Warrant not registered in a registration statement. The conversion price of $0.165 is subject to adjustment for (i) stock splits, stock dividends, combinations, or similar events and (ii) full ratchet anti-dilution protection. The Company may call the warrants if shares of the Company’s common stock trades at a volume weighted average price of not less than $0.30 for ten (10) consecutive trading days and are covered by an effective registration statement, where the average daily volume of the common stock for the previous ten trading days has been greater than $75,000.

The shares of Series A Preferred Stock and Warrants were issued pursuant to the exemption from registration afforded by Section 4(2) under the Securities Act of 1933, as amended, and Rule 506 of Regulation D, promulgated thereunder, and corresponding provisions of state securities laws.

In connection with the offer and sale of the Units, the Company and the Purchasers entered into a Registration Rights Agreement dated July 30, 2018, pursuant to which the Company is obligated to register all of the shares of common stock underlying the Series A Preferred Stock and the Warrants.

We agreed to register for resale 8,882,400 shares of common stock underlying 8,882,400 shares of Series A Preferred Stock held by the Selling Security Holders. In addition, we are registering an additional 402,400 shares of common stock underlying the Series A Preferred Stock, issuable under a 5% dividend payment, payable in shares of common stock on an annual basis, under the terms and conditions of the Series A Preferred Stock. In accordance with Rule 415(a)(1)(i), we are registering 8,882,400 Shares in this offering. We will not receive any proceeds from the sale of these shares of common stock offered by the Selling Security Holders. However, we will receive proceeds from the sale of our common stock upon conversion of the Series A Preferred Stock, if the Selling Security Holders convert any of their shares of Series A Preferred Stock. The conversion price to convert each share of Series A Preferred Stock into one share of common stock is $0.125. The proceeds, if any, will be used for working capital or general corporate purposes.

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We are unable to determine the exact number of shares that will actually be sold by the Selling Security Holders according to this prospectus due to:

·the ability of the Selling Security Holders to determine when and whether it will sell any of the Conversion Shares or Warrant Shares under this prospectus; and

·the uncertainty as to the number of Conversion Shares and Warrant Shares that will be issued upon conversion of the Series A Preferred Stock held by the Selling Security Holders.

The following information contains a description of how the Selling Security Holders shall acquire the shares to be sold in this offering. Neither of the two Selling Security Holders has held a position or office, or had any other material relationship with us, except as follows.

We are relying on an exemption from the registration requirements of the Securities Act for the private placement of our securities upon conversion of the shares of the Series A Preferred Stock, and the exercise of the Warrants, pursuant to Section 4(2) of the Securities Act and/or Rule 506 of Regulation D promulgated thereunder. The transaction does not involve a public offering, each of the Security Holders is an “accredited investor and has access to registration-type information about us and its investment.

There are substantial risks to investors as a result of the issuance of shares of our common stock underlying the Series A Preferred Stock. These risks include dilution of stockholders and significant decline in our stock price.

They will periodically purchase shares of our common stock under the terms and conditions of the Series A Preferred Stock and the Warrants, and will in turn, sell such shares to investors in the market at the prevailing market price. This may cause our stock price to decline.

The Selling Security Holders Table

The following table sets forth the names of the Selling Security Holders, the number of shares of common stock beneficially owned by each Selling Security Holder as of the date hereof and the number of shares of common stock being offered by each Selling Security Holder. The shares being offered hereby are being registered to permit public secondary trading, and the Selling Security Holders may offer all or part of the shares for resale from time to time. However, the Selling Security Holders are under no obligation to sell all or any portion of such shares nor are the Selling Security Holders obligated to sell any shares immediately upon effectiveness of this prospectus. All information with respect to share ownership has been furnished by the Selling Security Holders. The “Amount Beneficially Owned After Offering” column assumes the sale of all shares offered.

To our knowledge, the none of the Selling Security Holders is a broker-dealer or an affiliate of a broker-dealer. We may require the Selling Security Holders to suspend the sales of the shares of our common stock being offered pursuant to this Prospectus upon the occurrence of any event that makes any statement in this Prospectus or the related registration statement untrue in any material respect or that requires the changing of statements in those documents in order to make statements in those documents not misleading.

Name of Selling Security Holder

 

Shares Beneficially Owned Prior to Offering(1)

 

Amount Beneficially Owned After Offering

 

Number of Shares to Be Owned by Selling Security Holders After the Offering and Percent of Total Issued and Outstanding Shares(1)

 

# of Shares(2)

 

% of Class(2)

 

Cavalry Fund LP(3)(4)

 

0

 

17,362,400

 

0

 

*

 

Pinz Capital Special Opportunities Fund, LP(3)(4)

 

25,000

 

25,000

 

0

 

*

_________

* Less than 1%

(1)

Beneficial ownership is determined in accordance with Securities and Exchange Commission rules and generally includes voting or investment power with respect to shares of Common Stock. Shares of Common Stock subject to options and warrants currently exercisable, or exercisable within 60 days, are counted as outstanding for computing the percentage of the person holding such options or warrants but are not counted as outstanding for computing the percentage of any other person.

(2)

We have assumed that the Selling Security Holders will sell all of the shares being offered in this offering.

(3)

Cavalry Fund I Management LLC is the general partner of Cavalry Fund I LP and has voting and investment power over the shares beneficially owned by Cavalry Fund I, LP. Thomas Walsh is the Managing Partner of Cavalry Fund I Management LLC, and he has voting and investment power over the shares beneficially owned by Cavalry Fund I LP.

(4)

Pinz Capital, Ltd., a Cayman Islands exempted company is the general partner of Pinz Capital Special Opportunities Fund, LP and has voting and investment power over the shares beneficially owned by Pinz Capital Special Opportunities Fund, LP. Matthew L. Pinz is a Director of Pinz Capital, Ltd. Matthew Pinz is the Managing Member of Pinz Capital Management LP, and he has voting and investment power over the shares beneficially owned by Pinz Capital Special Opportunities Fund, LP.

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PLAN OF DISTRIBUTION

This prospectus relates to the resale of shares of our common stock, par value $0.001 per share, by the Selling Security Holders, including (i) 8,882,400 Conversion Shares issuable upon the exercise of certain shares of Series A Preferred Stock,  and (ii) 8,480,000 Warrant Shares issuable upon the exercise of outstanding warrants (the “Warrants”).

We may receive gross proceeds of up to $1,110,300 if all of the shares of Series A Preferred Stock are converted by the Selling Security Holders, and up to $1,399,200 if all of the warrant are exercised to purchase the Warrant Shares.

The Selling Shareholders may, from time to time sell any or all of their shares of common stock on any market or trading facility on which the shares are traded or in private transactions. These sales may be at fixed or negotiated prices. The Selling Shareholders may use any one or more of the following methods when selling shares:

·

ordinary brokerage transactions and transactions in which the broker-dealer solicits the purchaser;

·

block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal;

·

facilitate the transaction;

·

purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

·

an exchange distribution in accordance with the rules of the applicable exchange;

·

privately negotiated transactions;

·

broker-dealers may agree with the Selling Shareholders to sell a specified number of such shares at a stipulated price per share;

·

a combination of any such methods of sale; and

·

any other method permitted pursuant to applicable law.

The Selling Security Holders may also sell securities under Rule 144 under the Securities Act of 1933, if available, rather than under this Prospectus.

The Selling Security Holders or their respective pledgees, donees, transferees or other successors in interest, may also sell the shares directly to market makers acting as principals and/or broker-dealers acting as agents for themselves or their customers. Such broker-dealers may receive compensation in the form of discounts, concessions or commissions from the Selling Security Holders and/or the purchasers of shares for whom such broker-dealers may act as agents or to whom they sell as principal or both, which compensation as to a particular broker-dealer might be in excess of customary commissions. Market makers and block purchasers purchasing the shares will do so for their own account and at their own risk. It is possible that the Selling Security Holders will attempt to sell shares of common stock in block transactions to market makers or other purchasers at a price per share which may be below the then market price. The Selling Security Holders cannot assure that all or any of the shares offered in this prospectus will be issued to, or sold by, the Selling Security Holders. In addition, the Selling Security Holders and any brokers, dealers or agents, upon effecting the sale of any of the shares offered in this prospectus are “underwriters” as that term is defined under the Securities Act or the Exchange Act, or the rules and regulations under such acts. In such event, any commissions received by such broker-dealers or agents and any profit on the resale of the shares purchased by them may be deemed to be underwriting commissions or discounts under the Securities Act.

Discounts, concessions, commissions and similar selling expenses, if any, attributable to the sale of shares will be borne by a Selling Security Holder. The Selling Security Holders may agree to indemnify any agent, dealer or broker-dealer that participates in transactions involving sales of the shares if liabilities are imposed on that person under the Securities Act.

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The Selling Security Holders may from time to time pledge or grant a security interest in some or all of the shares of common stock owned by them, and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock from time to time under this prospectus after we have filed an amendment to this prospectus under Rule 424(b)(3) or any other applicable provision of the Securities Act amending the list of Selling Security Holders to include the pledgee, transferee or other successors in interest as Selling Security Holder under this prospectus.

The Selling Security Holders also may transfer the shares of common stock in other circumstances, in which case the transferees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus and may sell the shares of common stock from time to time under this prospectus after we have filed an amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act amending the list of Selling Security Holders to include the pledgee, transferee or other successors in interest as a Selling Security Holder under this prospectus.

We are required to pay all fees and expenses incident to the registration of the shares of common stock. Otherwise, all discounts, commissions or fees incurred in connection with the sale of our common stock offered hereby will be paid by the Selling Security Holders.

The Selling Security Holders acquired or will acquire the securities offered hereby in the ordinary course of business and have advised us that they have not entered into any agreements, understandings or arrangements with any underwriters or broker-dealers regarding the sale of their shares of common stock, nor is there an underwriter or coordinating broker acting in connection with a proposed sale of shares of common stock by any Selling Security Holder. We will file a supplement to this prospectus if a Selling Security Holder enters into a material arrangement with a broker-dealer for sale of common stock being registered. If the Selling Security Holders use this prospectus for any sale of the shares of common stock, it will be subject to the prospectus delivery requirements of the Securities Act.

The anti-manipulation rules of Regulation M under the Exchange Act, may apply to sales of our common stock and activities of the Selling Security Holders. The Selling Security Holders will act independently of us in making decisions with respect to the timing, manner and size of each sale.

We will pay all expenses incident to the registration, offering and sale of the shares of our common stock to the public hereunder other than commissions, fees and discounts of underwriters, brokers, dealers and agents. If any of these other expenses exists, we expect the Selling Security Holders to pay those expenses. We estimate that the expenses of the offering to be borne by us will be approximately $30,000. We will not receive any proceeds from the resale of any of the shares of our common stock by the Selling Security Holders.

DESCRIPTION OF SECURITIES

General

The following summary includes a description of material provisions of our capital stock.

Authorized and Outstanding Securities

The Company is authorized to issue 200,000,000 shares of common stock, par value $0.001 per share, and 25,000,000 shares of Preferred Stock, par value $0.001 per share, and 9,000,000 of which are designated as Series A Preferred Stock, par value $0.001 per share. As of February 12, 2019, there were issued and outstanding 132,637,500 shares of our common stock, and 8,480,000 shares of our Series A Preferred Stock.

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Common Stock

The holders of our common stock are entitled to one vote for each share on all matters to be voted on by the stockholders. Holders of common stock do not have cumulative voting rights. Holders of common stock are entitled to share ratably in dividends, if any, as may be declared from time to time by the board of directors in its discretion from funds legally available therefore. In the event of a liquidation, dissolution or winding up of the Company, the holders of common stock are entitled to share pro rata all assets remaining after payment in full of all liabilities. Holders of common stock have no preemptive rights to purchase the Company’s common stock. There are no conversion or redemption rights or sinking fund provisions with respect to the common stock.

Series A Preferred Stock

Each share of Series A Preferred Stock has a dividend of 5% per annum, has a liquidation preference senior to all other capital stock of the Company, and is convertible at any time, at the election of the holder of the Series A Preferred Stock, into one share of common stock at a conversion price of $0.125 per share, which conversion price is subject to adjustment for a term of two (2) years for stock splits, stock dividends, combinations, or similar events, and has full ratchet anti-dilution protection. Additionally, each holder of Series A Preferred Stock and has voting rights equal to that number of shares of common stock into which such holder’s shares of Series A Preferred Stock would be convertible on the record date for the vote or consent of stockholders, and shall otherwise have voting rights and powers equal to the voting rights and powers of the common stock. The Company has a right to purchase any outstanding shares of Series A Preferred Stock, with 20 days’ notice, at (i) a 115% premium before 180 days after the closing, and (ii) a 125% premium following the 181st day after closing. The holders of shares of Series A Preferred Stock have a right to participate in 50% of all financings of the Company, except for certain exempt offers and sales, for a period of two (2) years following the closing or if there are no shares of Series A Preferred Stock outstanding.

Dividends

Dividends, if any, will be contingent upon our revenues and earnings, if any, capital requirements and financial conditions. The payment of dividends, if any, will be within the discretion of our board of directors. We intend to retain earnings, if any, for use in its business operations and accordingly, the board of directors does not anticipate declaring any dividends in the foreseeable future.

Warrants

The Warrants issued in connection with the offering of our Series A Preferred Stock and the Warrants to the Selling Security Holders in August 2018, pursuant to which 8,480,000 shares of common stock are issuable thereunder, have an exercise price of $0.165 per share with a term of three years. The conversion price of $0.165 is subject to adjustment for (i) stock splits, stock dividends, combinations, or similar events and (ii) full ratchet anti-dilution protection. The Company may call the warrants if shares of the Company’s common stock trades at a volume weighted average price of not less than $0.30 for ten (10) consecutive trading days and are covered by an effective registration statement, where the average daily volume of the common stock for the previous ten trading days has been greater than $75,000.

Registration Rights

In in connection with the offering of our Series A Preferred Stock and the Warrants to the Selling Security Holders in August 2018, we entered into a Registration Rights Agreement with the Selling Security Holders dated July 30, 2018, pursuant to which the Company is obligated to register all of the shares of common stock underlying the Series A Preferred Stock and the Warrants, which amounts to 16,960,000 shares of common stock.

We must use commercially reasonable best efforts to keep such registration statement continuously effective until all registrable securities covered by such registration statement (i) have been sold, thereunder or pursuant to Rule 144, or (ii) may be sold without volume or manner-of-sale restrictions pursuant to Rule 144, as determined by the counsel to the Company pursuant to a written opinion letter to such effect.

All fees and expenses incident to the performance of or compliance with, the Financing Rights Agreement by the Company shall be borne by the Company

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Transfer Agent and Registrar

Our transfer agent is Empire Stock Transfer, Inc. (“Empire Stock Transfer”), whose address 1859 Whitney Mesa Dr., Henderson, Nevada 89014. Empire Stock Transfer’s telephone number is (702) 818-5898.

Indemnification of Officers and Directors

Subsection 7 of Section 78.138 of the Nevada Revised Statutes (the “Nevada Law”) provides that, subject to certain very limited statutory exceptions, a director or officer is not individually liable to the corporation or its stockholders or creditors for any damages as a result of any act or failure to act in his or her capacity as a director or officer, unless it is proven that the act or failure to act constituted a breach of his or her fiduciary duties as a director or officer and such breach of those duties involved intentional misconduct, fraud or a knowing violation of law. The statutory standard of liability established by Section 78.138 controls even if there is a provision in the corporation’s articles of incorporation unless a provision in the Company’s Articles of Incorporation provides for greater individual liability.

Subsection 1 of Section 78.7502 of the Nevada Law empowers a corporation to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative (other than an action by or in the right of the corporation) by reason of the fact that he or she is or was a director, officer, employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise (any such person, a “Covered Person”), against expenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by the Covered Person in connection with such action, suit or proceeding if the Covered Person is not liable pursuant to Section 78.138 of the Nevada Law or the Covered Person acted in good faith and in a manner the Covered Person reasonably believed to be in or not opposed to the best interests of the corporation and, with respect to any criminal action or proceedings, had no reasonable cause to believe the Covered Person’s conduct was unlawful.

Subsection 2 of Section 78.7502 of the Nevada Law empowers a corporation to indemnify any Covered Person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that such person acted in the capacity of a Covered Person against expenses, including amounts paid in settlement and attorneys’ fees actually and reasonably incurred by the Covered Person in connection with the defense or settlement of such action or suit, if the Covered Person is not liable pursuant to Section 78.138 of the Nevada Law or the Covered Person acted in good faith and in a manner the Covered Person reasonably believed to be in or not opposed to the best interests of the Company. However, no indemnification may be made in respect of any claim, issue or matter as to which the Covered Person shall have been adjudged by a court of competent jurisdiction (after exhaustion of all appeals) to be liable to the corporation or for amounts paid in settlement to the corporation unless and only to the extent that the court in which such action or suit was brought or other court of competent jurisdiction determines upon application that in view of all the circumstances the Covered Person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper.

Section 78.7502 of the Nevada Law further provides that to the extent a Covered Person has been successful on the merits or otherwise in the defense of any action, suit or proceeding referred to in Subsection 1 or 2, as described above, or in the defense of any claim, issue or matter therein, the corporation shall indemnify the Covered Person against expenses (including attorneys’ fees) actually and reasonably incurred by the Covered Person in connection with the defense.

Subsection 1 of Section 78.751 of the Nevada Law provides that any discretionary indemnification pursuant to Section 78.7502 of the Nevada Law, unless ordered by a court or advanced pursuant to Subsection 2 of Section 78.751, may be made by a corporation only as authorized in the specific case upon a determination that indemnification of the Covered Person is proper in the circumstances. Such determination must be made (a) by the stockholders, (b) by the board of directors of the corporation by majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding, (c) if a majority vote of a quorum of such non-party directors so orders, by independent legal counsel in a written opinion, or (d) by independent legal counsel in a written opinion if a quorum of such non-party directors cannot be obtained.

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Subsection 2 of Section 78.751 of the Nevada Law provides that a corporation’s articles of incorporation or bylaws or an agreement made by the corporation may require the corporation to pay as incurred and in advance of the final disposition of a criminal or civil action, suit or proceeding, the expenses of officers and directors in defending such action, suit or proceeding upon receipt by the corporation of an undertaking by or on behalf of the officer or director to repay the amount if it is ultimately determined by a court of competent jurisdiction that he or she is not entitled to be indemnified by the corporation. Subsection 2 of Section 78.751 further provides that its provisions do not affect any rights to advancement of expenses to which corporate personnel other than officers and directors may be entitled under contract or otherwise by law.

Subsection 3 of Section 78.751 of the Nevada Law provides that indemnification pursuant to Section 78.7502 of the Nevada Law and advancement of expenses authorized in or ordered by a court pursuant to Section 78.751 does not exclude any other rights to which the Covered Person may be entitled under the articles of incorporation or any bylaw, agreement, vote of stockholders or disinterested directors or otherwise, for either an action in his or her official capacity or in another capacity while holding his or her office. However, indemnification, unless ordered by a court pursuant to Section 78.7502 or for the advancement of expenses under Subsection 2 of Section 78.751 of the Nevada Law, may not be made to or on behalf of any director or officer of the corporation if a final adjudication establishes that his or her acts or omissions involved intentional misconduct, fraud or a knowing violation of the law and were material to the cause of action. Additionally, the scope of such indemnification and advancement of expenses shall continue for a Covered Person who has ceased to be a director, officer, employee or agent of the corporation, and shall inure to the benefit of his or her heirs, exe

Section 78.752 of the Nevada Law empowers a corporation to purchase and maintain insurance or make other financial arrangements on behalf of a Covered Person for any liability asserted against such person and liabilities and expenses incurred by such person in his or her capacity as a Covered Person or arising out of such person’s status as a Covered Person whether or not the corporation has the authority to indemnify such person against such liability and expenses.

The Bylaws of the Company provide for indemnification of Covered Persons substantially identical in scope to that permitted under the Nevada Law. Such Bylaws provide that the expenses of directors and officers of the Company incurred in defending any action, suit or proceeding, whether civil, criminal, administrative or investigative, must be paid by the Company as they are incurred and in advance of the final disposition of the action, suit or proceeding, upon receipt of an undertaking by or on behalf of such director or officer to repay all amounts so advanced if it is ultimately determined by a court of competent jurisdiction that the director or officer is not entitled to be indemnified by the Company.

DESCRIPTION OF BUSINESS

Our Corporate History and Background

GridIron BioNutrients, Inc. (the “Company”) was incorporated on July 31, 2014 under the laws of the State of Nevada. From our formation on July 31, 2014 until October 9, 2017, we were engaged in the business of cloud storage services. Sommay Vongsa served as President, Secretary, Treasurer and sole director from July 31, 2014, until his resignation on October 9, 2017. Concurrent with his resignation, Mr. Vongsa appointed Darren Long, as the Company’s new Chief Executive Officer, Secretary, Chairman of the board of directors, and Secretary; Timothy Orr, as the Company’s new President and a director; and Brian Martinho, as the Company’s new Treasurer and a director. Effective February 26, 2018, Darren Long resigned as a member and Chairman of the Board of Directors, and as Chief Executive Officer, of the Company. Effective February 26, 2018, Brian Martinho resigned as a member of the Board of Directors, and as Treasurer, of the Company. Effective, February 27, 2018, Timothy Orr, as the sole member of the Board of Directors, appointed himself as Secretary and Treasurer of the Company. Mr. Orr is also presently the Company’s President.

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Effective November 28, 2017, the board of directors and the stockholders of the majority of voting power of the Company approved an amendment to the Company’s Articles of Incorporation to change the name of the Company from “My Cloudz, Inc.” to “GridIron BioNutrients, Inc.” A Certificate of Amendment to the Articles of Incorporation effecting the change of name of the Company was filed with the Secretary of State of the State of Nevada effective November 27, 2017. The Financial Industry Regulatory Authority, Inc. recognized the name change effective December 18, 2017. Under Rule 14c-2, promulgated pursuant to the Securities Exchange Act of 1934, as amended, the name change became effective February 21, 2018.

From inception until we completed our reverse acquisition of GridIron BioNutrients, the principal business of the Company was cloud storage services.

Reverse Acquisition of GridIron BioNutrients

On October 9, 2017, the Company entered into a Share Exchange Agreement (the “Share Exchange Agreement”), by and among the Company, GridIron BioNutrients, Inc., then a privately-held Nevada corporation since renamed GridIron Ventures, Inc. (“GridIron Ventures”), and the holders of common stock of GridIron Ventures. The holders of the common stock of GridIron Ventures consisted of 3 stockholders.

Under the terms and conditions of the Share Exchange Agreement, the Company offered, sold and issued 70,000,000 shares of common stock in consideration for all the issued and outstanding shares in GridIron Ventures. The effect of the issuance was that GridIron Ventures shareholders held approximately 57.0% of the issued and outstanding shares of common stock of the Company, giving effect the Share Exchange Agreement.

Darren Long, the founder of GridIron Ventures, became the Company’s new Chief Executive Officer, Chairman of the board of directors, and Secretary, was then the holder of 35,000,000 shares of common stock of the Company. Timothy Orr, became the Company’s new President, a director of the Company, and the holder of 17,500,000 shares of common stock of the Company. Brian Martinho, became the Company’s new Treasurer, a director, is and the holder of 17,500,000 shares of common stock of the Company. The Company’s new officers and sole director, therefore, control an aggregate of 70,000,000, or 57.0%, of the outstanding common stock of the Company, on a fully diluted basis, giving effect to the Share Exchange Agreement.

As a result of the Share Exchange Agreement, GridIron Ventures became a wholly-owned subsidiary of the Company.

The share exchange transaction with GridIron Ventures was treated as a reverse acquisition, with GridIron Ventures as the acquiror and the Company as the acquired party. Unless the context suggests otherwise, when we refer in this Form 10-K to business and financial information for periods prior to the consummation of the reverse acquisition, we are referring to the business and financial information of GridIron Ventures.

Organization & Subsidiaries

We have one operating subsidiary, GridIron Ventures, Inc., a Nevada corporation.

Overview of GridIron BioNutrients

Our wholly owned subsidiary, GridIron Ventures was incorporated on July 20, 2017, in Nevada.

The business of GridIron BioNutrients is now the principal business of the Company. GridIron BioNutrients is in the business of marketing and selling cannabidiol products line of capsules, oil, ointments, concentrates and water.

GridIron BioNutrients principal administrative offices are located at 4010 East Tanager Lane, #A, Mead, Washington 99021. Our website is www.gridirionbionutrients.com.

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Summary Financial Information

The tables and information below are derived from our audited financial statements as of August 31, 2018.

 

 

August 31,

2018

 

Financial Summary

 

 

 

Cash and Deposits

 

$774,468

 

Total Assets

 

 

862,743

 

Total Liabilities

 

 

686,868

 

Total Stockholders’ Equity (deficit)

 

$175,875

 

Primary Business

GridIron BioNutrients is in the business of marketing and selling cannabidiol products line of capsules, oil, ointments, concentrates and water. GridIron BioNutrients is the owner and has right to intellectual property, including trademark, trade names, images, likenesses and other associated intellectual property, such as the name “Gridion BioNutrients” and related to Timothy Orr.

We intend to:

·

establish a cannabidiol products platform and brand;

·

enter into agreements with strategic partners in the cannabidiol products industry; and

·

establish key exclusive strategic alliances which serve to accomplish the task of becoming the market leader.

Principal Products

Gridiron BioNutrients principal products currently include:

Gridiron MVP™ Water Beverage (16.9oz)

Gridiron MVP™ Concentrate (2oz / 4oz)

These products contain a proprietary blend of humic and fulvic acid, trace minerals, probiotics, electrolytes, cannabidiol (CBD) within an alkaline of pH10.

Gridiron has secured the rights to this proprietary formulation through its CEO, Timothy Orr. (VERBAL AGREEMENT). Timothy Orr provided the formulation in connection with his receipt of 32,500,000 shares of common stock from the Company.

Gridiron has the exclusive right(s) to develop CBD products with this formulation. However, Gridiron is limited to developing only CBD products with this formulation and as such does not have any rights to develop products that do not contain CBD with this formulation.

In addition to the Gridiron MVP™ beverage and concentrate Gridiron currently has the following products available to market:

Gridiron Probiotic Water Beverage (16.9oz)

Gridiron Pure CBD Water Beverage (16.9oz)

Gridiron Energy Shot (4oz)

Gridiron Salve

Gridiron Premium Hemp Oil Drops (1oz /2oz)

Gridiron Premium Hemp Oil Capsules

Gridiron Gummies

Gridiron executed a 1 month “trial period” Manufacture Distribution Agreement on September 22, 2017 with a manufacturer of high quality CBD for the above mentioned products. The Distribution Agreement allows Gridiron to “White Label” (market and distribute) on a non-exclusive basis the above products under the Gridiron name. The Company anticipates executing a long term Manufacture Agreement with this Company or a similar Company within the next three months.

Distribution of Products

Gridiron’s products are currently available for sale on its website http://gridironbionutrients.com. The Company intends to retain a consultant(s) to provide avenues to distribution its products within the next twelve months. However, in order to retain any consultant(s) the Company will require funding and currently the Company does not have the required funding to accomplish this task. If the Company is unable to secure financing; it would likely result in a material loss of any investment made into the Company.

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Competition

Competition within the cannabidiol (CBD) industry is intense with many well-established companies within the market and numerous start-up companies entering the market. Gridiron intends to brand and market high quality CBD products through both exclusive and non-exclusive strategic alliances that will serve to make the Company a market leader.

In addition to the products described herein the Company intends to add an additional CBD water beverage to its product line within the next 4-5 months. The Company can provide no assurance or guarantee that it will be able to develop and/or maintain any strategic alliances now or in the future or that its anticipated new CBD beverage will be accepted by the market if and when developed. If the Company cannot develop and maintain strategic alliances or be successful with the offer of its CBD products and proposed CBD products it would be a significant material negative impact on the business that could result in a significant loss to any investment made into the Company.

Sources of Raw Materials

Gridiron MVP™ product(s) contain proprietary blend of nutrients that are sourced from various third parties and formulated into the water beverage and concentrate. If for any reason any of these sources are disrupted and the Company is unable to obtain the raw materials necessary to formulate the Gridiron MVP™ product(s) it would materially impact the business that may result in significant losses. Moreover, the Company will be dependent upon third party bottling facilities for its Gridiron MVP™ product; currently the Company has no arrangements or otherwise with any bottling facility and cannot provide any assurance that a suitable bottling facility can be retained or maintained in the future.

The Company currently has a Distribution place for the Gridiron Salve, Gridiron Premium Hemp Oil Drops (1oz /2oz) and Gridiron Premium Hemp Oil Capsules. If there is a disruption with the manufacturer of these products for any reason with the Company, it could result in significant delays and/or the inability to deliver the products to customers which would negatively impact the Company’s business.

Strategic Partners

The Company intends to develop both exclusive and non-exclusive strategic alliances that promote the Company’s products.

Intellectual Property

We rely on a combination of trademark laws, trade secrets, confidentiality provisions and other contractual provisions to protect our proprietary rights, which are primarily our brand names, product designs and marks. We do not own any patents.

The Company has filed four trademark applications with the U.S. Patent & Trademark Office (USPTO) as follows:

87594229 - GRIDIRON BIONUTRIENTS in international class 005 (supplements)

87594267 - GRIDIRON MVP in international class 005 (supplements)

87594303 - GRIDIRON BIONUTRIENTS in international class 032 (beverages)

87594316 - GRIDIRON MVP in international class 032 (beverages)

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Timothy Orr, the Chief Executive Officer and Chairman of the Board of Directors of the Company, is providing the Gridiron MVP™ formulation(s) to the Company at no charge to the Company. Gridiron has the exclusive right(s) to develop CBD products with this formulation. However, Gridiron is limited to developing only CBD products with this formulation and as such does not have any rights to develop products that do not contain CBD with this formulation.

The Company does not believe that there is any legal limitation on its ability to enforce the protection of its intellectual property due to federal and state laws prohibiting the production and sale of CBD.

Government Regulation and Approvals

We are not aware of any governmental regulations or approvals needed for any of our products. We do not believe that we are subject to any government regulations relating to the ownership and licensing of our intellectual property.

Federal Controlled Substances Act

As of June 2017, there are a total of 29 states, plus the District of Columbia, with legislation passed as it relates to medicinal cannabis. These state laws are in direct conflict with the United States Federal Controlled Substances Act (21 U.S.C. § 811) (“CSA”), which places controlled substances, including cannabis, in a schedule. Cannabis is classified as a Schedule I drug, which is viewed as having a high potential for abuse, has no currently-accepted use for medical treatment in the U.S., and lacks acceptable safety for use under medical supervision.

These 29 states, and the District of Columbia, have adopted laws that exempt patients who use medicinal cannabis under a physician’s supervision from state criminal penalties. These are collectively referred to as the states that have de-criminalized medicinal cannabis, although there is a subtle difference between de-criminalization and legalization, and each state’s laws are different.

The dichotomy between federal and state laws has also limited the access to banking and other financial services by marijuana businesses. Recently the U.S. Department of Justice and the U.S. Department of Treasury issued guidance for banks considering conducting business with marijuana dispensaries in states where those businesses are legal, pursuant to which banks must now file a Marijuana Limited Suspicious Activity Report that states the marijuana business is following the government’s guidelines with regard to revenue that is generated exclusively from legal sales. However, since the same guidance noted that banks could still face prosecution if they provide financial services to marijuana businesses, it has led to the widespread refusal of the banking industry to offer banking services to marijuana businesses operating within state and local laws.

In an effort to provide guidance to federal law enforcement, the Department of Justice (the “DOJ”) has issued Guidance Regarding Marijuana Enforcement to all United States Attorneys in a memorandum from Deputy Attorney General David Ogden on October 19, 2009, in a memorandum from Deputy Attorney General James Cole on June 29, 2011 and in a memorandum from Deputy Attorney General James Cole on August 29, 2013. Each memorandum provides that the DOJ is committed to the enforcement of the CSA, but the DOJ is also committed to using its limited investigative and prosecutorial resources to address the most significant threats in the most effective, consistent, and rational way.

The August 29, 2013 memorandum provides updated guidance to federal prosecutors concerning marijuana enforcement in light of state laws legalizing medical and recreational marijuana possession in small amounts. The memorandum sets forth certain enforcement priorities that are important to the federal government:

·

Distribution of marijuana to children;

·

Revenue from the sale of marijuana going to criminals;

·

Diversion of medical marijuana from states where it is legal to states where it is not;

·

Using state authorized marijuana activity as a pretext of other illegal drug activity;

·

Preventing violence in the cultivation and distribution of marijuana;

·

Preventing drugged driving;

·

Growing marijuana on federal property; and

·

Preventing possession or use of marijuana on federal property.

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The DOJ has not historically devoted resources to prosecuting individuals whose conduct is limited to possession of small amounts of marijuana for use on private property, but has relied on state and local law enforcement to address marijuana activity. In the event the DOJ reverses its stated policy and begins strict enforcement of the CSA in states that have laws legalizing medical marijuana and recreational marijuana in small amounts, there may be a direct and adverse impact to our business and our revenue and profits.

Based on public statements and reports, we understand that certain aspects of those laws and policies are currently under review, but no official changes have been announced. It is possible that certain changes to existing laws or policies could have a negative effect on our business and results of operations.

Although we do not produces, handle or sell cannabis, and the possession, cultivation and distribution of marijuana for medical use is permitted in Nevada, and medical and recreational use is permitted in the State of Washington, where our administrative offices are located, provided compliance with applicable state and local laws, rules, and regulations, marijuana is illegal under federal law. We believe we operate our business in compliance with applicable Nevada and Washington law and regulations. Any changes in federal, state or local law enforcement regarding marijuana may affect our ability to operate our business. Strict enforcement of federal law regarding marijuana would likely result in the inability to proceed with our business plans, could expose us to potential criminal liability and could subject our properties to civil forfeiture. Any changes in banking, insurance or other business services may also affect our ability to operate our business.

Employees

As of the date hereof, we have 3 employees who operate our company. Timothy Orr, our sole officer and director, works full-time on Company operations.

Research and Development Expenditures

For the year ended August 31, 2018, we incurred no research or development expenditures.

Bankruptcy or Similar Proceedings

We have never been subject to bankruptcy, receivership or any similar proceeding.

We rely on a combination of trademark laws, trade secrets, confidentiality provisions and other contractual provisions to protect our proprietary rights, which are primarily our brand names, product designs and marks. We do not own patents.

Facilities

Our current business address is 1119 West 1st Ave., Ste. G, Spokane, Washington 99021.

Reports to Security Holders

We are subject to the informational requirements of the Securities Exchange Act of 1934, as amended, and accordingly, file current and periodic reports, proxy statements and other information with the SEC. We have also filed with the Commission a Registration Statement on Form S-1, under the Securities Act of 1933, as amended, with respect to the securities offered by this prospectus. This prospectus, which forms a part of the registration statement, does not contain all the information set forth in the registration statement, as permitted by the rules and regulations of the Commission. You may obtain copies of our reports from the SEC’s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549, on official business days during the hours of 10 A.M. to 3 P.M. or on the SEC’s website, at www.sec.gov. You may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.

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PROPERTIES

Our executive offices are located at 1119 West 1st Ave., Ste. G, Spokane, Washington 99021, and we have operational facilities located in Henderson, Nevada. Tim Orr holds the lease under his personal name for the Nevada location, the lease was signed on October 12, 2018 and ends on January 15, 2019 after which if both parties agree can go to a month to month lease. The monthly rent is $3,000 per month. At the location in Washington no rent is paid.

LEGAL PROCEEDINGS

There are no pending legal proceedings to which the Company is a party or in which any director, officer or affiliate of the Company, any owner of record or beneficially of more than 5% of any class of voting securities of the Company, or security holder is a party adverse to the Company or has a material interest adverse to the Company.

MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS

Market Information

Since September 7, 2018, our shares of common stock have been quoted on the OTCQB tier of the OTC Markets Group, Inc. (the “OTC Markets Group”) under the stock symbol “GMVP.” From December 18, 2017 until September 6, 2018, our shares of common stock were quoted on the OTCPink tier of the OTC Markets Group. From February 6, 2017, until December 17, 2018, our shares of common stock were quoted on the OTCPink tier of the OTC Markets under the stock symbol “MYYZ”. The following table shows the reported high and low closing bid prices per share for our common stock based on information provided by the OTC Markets Group. The over-the-counter market quotations set forth for our common stock reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions. On March 1, 2019, the closing price of the Company’s common stock on the OTCQB was $0.0427 per share.

 

 

Common Stock

Bid Price

 

Financial Quarter Ended

 

High ($)

 

 

Low ($)

 

 

 

 

 

 

 

 

November 30, 2018

 

 

0.13

 

 

 

0.05

 

August 31, 2018

 

 

0.13

 

 

 

0.06

 

May 31, 2018

 

 

0.85

 

 

 

0.11

 

February 28, 2018

 

 

5.00

 

 

 

0.25

 

November 30, 2017

 

 

1.00

 

 

 

0.90

 

August 31, 2017

 

 

0.025

 

 

 

0.025

 

May 31, 2017

 

 

0.025

 

 

 

0.025

 

February 28, 2017

 

 

0.025

 

 

 

0.025

 

Stockholders

As of the date of this Prospectus, there were 132,637,500 shares of common stock issued and outstanding held by approximately 54 stockholders of record (including street name holders), 8,480,000 shares of our Series A Preferred Stock, convertible at any time into shares of our common stock at a conversion price of $0.165 per share and warrants with a term of three years, exercisable at any time into shares of our common stock at an exercise price of $0.165 per share.

Transfer Agent

Our transfer agent is Empire Stock Transfer, Inc. (“Empire Stock Transfer”), whose address 1859 Whitney Mesa Dr., Henderson, Nevada 89014. Empire Stock Transfer’s telephone number is (702) 818-5898.

Dividends

 

We have not paid dividends to date and do not anticipate paying any dividends in the foreseeable future. Our Board of Directors intends to follow a policy of retaining earnings, if any, to finance our growth. The declaration and payment of dividends in the future will be determined by our Board of Directors in light of conditions then existing, including our earnings, financial condition, capital requirements and other factors.

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Recent Sales of Unregistered Securities

None.

Securities Authorized for Issuance Under Equity Compensation Plans

We have not established any compensation plans under which equity securities are authorized for issuance.

SECURITIES AUTHORIZED UNDER EQUITY COMPENSATION PLANS

We have no equity compensation or stock option plans. We may in the future adopt a stock option plan as our mineral exploration activities progress.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATION

Cautionary Statement Regarding Forward-Looking Information

The statements in this registration statement that are not reported financial results or other historical information are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These statements appear in a number of different places in this report and can be identified by words such as “estimates”, “projects”, “expects”, “intends”, “believes”, “plans”, or their negatives or other comparable words. Also look for discussions of strategy that involve risks and uncertainties. Forward-looking statements include, among others, statements regarding our business plans and availability of financing for our business.

Results of Operations

Three-Month Periods Ended November 30, 2018 and 2017

We recorded revenues $1,128 for the three months ended November 30, 2018, with the cost of such revenues being $30,063. We recorded revenues of $5,140 for the three months ended November 30, 2017, with the cost of such revenues being $3,983.

For the three months ended November 30, 2018, we incurred total operating expenses of $162,663, consisting of professional fees of $73,212, Insurance of $38,749 and general and administrative expenses of $50,702.

For the three months ended November 30, 2017, we incurred total operating expenses of $23,819, consisting of professional fees of $8,765, and general and administrative expenses of $15,054.

Our net loss for the three months ended November 30, 2018, was $91,408. Our net loss for the three months ended November 30, 2018, was $22,767.

The years ended August 31, 2018 and 2017

For the year ended August 31, 2018, we generated $16,771 in revenues, and the cost of revenues was $81,025. For the year ended August 31, 2017, we generated no revenues.

For the year ended August 31, 2018, we incurred operating expenses of $371,864, consisting of professional fees of $133,882, consulting fees of $72,349, professional fees of $133,822, travel of $46,930 and general and administrative expenses of $56,951. By way of comparison, we incurred operating expenses of 13,476, consisting of solely of general and administrative expenses.

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We incurred net losses of $975,524 and $13,476 for the years ended August 31, 2018 and 2017, respectively. The following table provides selected financial data about our company at August 31, 2018 and 2017.

Balance Sheet Data

 

August 31,

2018

 

 

August 31,

2017

 

Cash and Cash Equivalents

 

$774,468

 

 

$25

 

Total Assets

 

$862,743

 

 

$2,825

 

Total Liabilities

 

$686,868

 

 

$16,101

 

Shareholders’ Equity (Deficit)

 

$175,875

 

 

$(13,276)

 

Liquidity and Capital Resources

At November 30, 2018, we had a cash balance of $246,622, and our working capital balance is $64,433. We do not have sufficient cash on hand to complete our plan of operation for the next 12 months. We will need to raise funds to complete our plan of operation and fund our ongoing operational expenses for the next 12 months. Additional funding will likely come from equity financing from the sale of our common stock. If we are successful in completing an equity financing, existing shareholders will experience dilution of their interest in our Company. We do not have any financing arranged and we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common stock to fund our development activities and ongoing operational expenses. In the absence of such financing, our business will likely fail. There are no assurances that we will be able to achieve further sales of our common stock or any other form of additional financing. If we are unable to achieve the financing necessary to continue our plan of operations, then we will not be able to continue our development to complete our plan of operation and our business will fail.

Going Concern

As reflected in the condensed consolidated financial statements contained elsewhere is this Registration Statement on Form S-1, as of November 30, 2018 we had cash on hand and had an accumulated deficit of $246,622 and $1,097,175, respectively, and during the three months ended November 30, 2018, we utilized cash for operations and incurred a net loss of $524,869 and $91,408, respectively. Our uses of cash have been primarily for strategic investments we made and operations and marketing efforts to promote and develop our CBD products and our company. Our principal sources of liquidity have been cash provided by financing, primarily through the sale of equity securities and issuance of convertible notes, along with revenues from our principal business activities. Further, we have used cash for various strategic investments for which we typically receive returns when such investments are sold and when or if dividends are declared.

As of the date of this Registration Statement on Form S-1, our cash resources are insufficient to meet our current operating expense requirements and planned business objectives without additional financing. Our ability to continue as a going concern is dependent on our ability to raise additional capital and to ultimately achieve sustainable revenues and income from our operations. We anticipate that significant additional expenditures will be necessary to expand and bring to market our products and investments before sufficient and consistent positive operating cash flows will be achieved. As such, we will need additional funds to operate our business through and beyond the date of this Registration Statement on Form S-1 filing.

To address our capital requirements, in October 2018 we entered into a Common Stock Purchase Agreement (the “Purchase Agreement”) with Cavalry Fund, LP, a Delaware limited partnership (the “Purchaser”), pursuant to which the Purchaser has the right to purchase up to $1,000,000 of our shares of common stock (the “Shares”) at a purchase price equal to 75% of the lowest closing price of our common stock on the over-the-counter markets for the five business days prior to a purchase. The Purchaser, however, will not have the right to purchase more than $300,000 worth of our shares of common stock within a consecutive period of 30 business days. However, we anticipate that additional funds will be needed to continue operations, obtain profitability and to achieve our objectives. There can be no assurance that such funds will be available or at terms acceptable to us. Even if we are able to obtain additional financing, it may contain undue restrictions and covenants on our operations, in the case of debt financing or cause substantial dilution for our stockholders in the case of convertible debt and equity financing.

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Table of Contents

These and other factors raise substantial doubt about our ability to continue as a going concern. Further, our independent auditors in their audit report for our fiscal year ended August 31, 2018 expressed substantial doubt about our ability to continue as a going concern. Our financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern.

Off-Balance Sheet Arrangements

The Company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

Summary of Significant Accounting Policies

Basis of Accounting

The Company’s financial statements are prepared using the accrual method of accounting and are presented in United States Dollars.

Property and Equipment

Property and equipment are stated at cost. Major repairs and betterments are capitalized and normal maintenance and repairs are charged to expense as incurred. Depreciation is computed by the straight-line method over the estimated useful lives of the related assets. Upon retirement or sale of an asset, the cost and accumulated depreciation are removed from the accounts and any gain or loss is reflected in operations.

Fair Value of Financial Instruments

The fair value of cash and cash equivalents and accounts receivable and accounts payable approximates their carrying amount.

Recent Accounting Pronouncements

The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on its results of operations, financial position or cash flow.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

There have been no changes in or disagreements with accountants on accounting or financial disclosure matters.

DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS

The following table sets forth the names and ages of our current directors and executive officers, the principal offices and positions held by each person:

Name

Age

Positions

Timothy Orr

47

President, Secretary, Treasurer and Director

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Table of Contents

Timothy Orr

President, Secretary, Treasurer and Director

Timothy Orr, age 47, has served as our President and a director since October 9, 2017. He has also served as Secretary and Treasurer since February 28, 2018. Mr. Orr has over 20 years of legal, business and public and private company experience. Mr. Orr’s law practice focuses on business formation and financing tailored to small and medium size companies. Mr. Orr has acted as outside counsel for publicly traded companies as well as private companies seeking equity financing for the expansion of their business. Additionally, since 2004, Mr. Orr has owned and operated Jameson Capital, LLC, a business development consulting services company. In 1994, Mr. Orr obtained a BA in Biology from Whitworth University, and in 1998, he obtained a JD from Gonzaga School of Law. Mr. Orr’s background as a lawyer and desire to participate in the management of GridIron BioNutrients, Inc. led to our conclusion that he should serve as a director in light of our business and structure.

Term of Office

All directors hold office until the next annual meeting of the stockholders of the Company and until their successors have been duly elected and qualified. The Company’s Bylaws provide that the Board of Directors will consist of no less than three members. Officers are elected by and serve at the discretion of the Board of Directors.

Director Independence

Our board of directors is currently composed of one member, and such member does not qualify as an independent director in accordance with the published listing requirements of the NASDAQ Global Market (the Company has no plans to list on the NASDAQ Global Market). The NASDAQ independence definition includes a series of objective tests, such as that the director is not, and has not been for at least three years, one of our employees and that neither the director, nor any of his family members has engaged in various types of business dealings with us. In addition, our board of directors has not made a subjective determination as to our director that no relationships exist which, in the servicesopinion of our board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a transfer agent at this time. However, withindirector, though such subjective determination is required by the next twelve months we anticipate doing so. Until such a time a transfer agent is retained, MCI will actNASDAQ rules. Had our board of directors made these determinations, our board of directors would have reviewed and discussed information provided by our director and us with regard to our director’s business and personal activities and relationships as its own transfer agent.they may relate to us and our management.

 

Interests of Named Experts and CounselCertain Legal Proceedings

 

No director, nominee for director, or executive officer of the Company has appeared as a party in any legal proceeding material to an evaluation of his ability or integrity during the past ten years.

Significant Employees and Consultants

As of the date of this Prospectus, the Company has no significant employees, other than its officers and directors acting in such capacity.

Audit Committee and Conflicts Of Interest

Since we do not have an audit or compensation committee comprised of independent directors, the functions that would have been performed by such committees are performed by our directors. The Board of Directors has not established an audit committee and does not have an audit committee financial expert, nor has the Board of Directors established a nominating committee. The Board is of the opinion that such committees are not necessary since the Company is an early business development stage company and has only two directors, and to date, such directors have been performing the functions of such committees. Thus, there is a potential conflict of interest in that our directors and officers have the authority to determine issues concerning management compensation, nominations, and audit issues that may affect management decisions.

There are no family relationships among our directors or officers. Other than as described above, we are not aware of any other conflicts of interest with any of our executive officers or directors.

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Table of Contents

Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities Exchange Act of 1934 requires our executive officers and directors, and persons who own more than ten percent of a registered class of our equity securities, file reports of ownership and changes in ownership with the SEC. Executive officers, directors and greater-than-ten percent stockholders are required by SEC regulations to furnish us with all Section 16(a) forms they file. Based on our review of filings made on the SEC website, and the fact of us not receiving certain forms or written representations from certain reporting persons that they have complied with the relevant filing requirements, we believe that, during the year ended August 31, 2018, none of our executive officers, directors and greater-than-ten percent stockholders complied with all Section 16(a) filing requirements.

Stockholder Communications with the Board Of Directors

We have not implemented a formal policy or procedure by which our stockholders can communicate directly with our Board of Directors. Nevertheless, every effort has been made to ensure that the views of stockholders are heard by the Board of Directors or individual directors, as applicable, and that appropriate responses are provided to stockholders in a timely manner. We believe that we are responsive to stockholder communications, and therefore have not considered it necessary to adopt a formal process for stockholder communications with our Board. During the upcoming year, our Board will continue to monitor whether it would be appropriate to adopt such a process.

Code of Ethics

The Company has not adopted a code of ethics that applies to its principal executive officers, principal financial officer, principal accounting officer or controller, or persons performing similar functions. The Company has not adopted a code of ethics because it has only commenced operations.

Employment Agreements

We have no employment agreements with our officers, directors or any other person.

Indemnification Agreements

We have no indemnification agreements with our officers, directors or any other person.

Family Relationships

No family relationships exist between our officers and directors or any person who is an affiliate of the Company.

ITEM 11. EXECUTIVE COMPENSATION

Summary Compensation Table

The summary compensation table below shows certain compensation information for services rendered in all capacities to us by our principal executive officer and principal financial officer and by each other executive officer whose total annual salary and bonus exceeded $100,000 during the fiscal periods ended August 31, 2017 and 2018. Other than as set forth below, no executive officer’s total annual compensation exceeded $100,000 during our last fiscal period.

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Table of Contents

Name and Principal Position

 

Year

 

Salary

($)

 

 

Bonus

($)

 

 

Stock Awards

($)*

 

 

Option Awards

($)*

 

 

Non-Equity Incentive Plan Compensation ($)

 

 

Nonqualified Deferred Compensation ($)

 

 

All Other Compensation($)

 

 

Total

($)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sommay

 

2018

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

Vongsa (1)

 

2017

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Darren

 

2018

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

Long (2)

 

2017

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Timothy

 

2018

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

Orr (3)

 

2017

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Brian

 

2018

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

Martinho (4)

 

2017

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

______________

(1)

Appointed President, Secretary, Treasurer and director on July 31, 2014. Resigned as President, Secretary, Treasurer and director on October 9, 2017.

(2)

Appointed Chief Executive Officer, Secretary and Chairman of the Board of Directors, on October 9, 2017. Resigned as Chief Executive Officer, Secretary and Chairman of the Board of Directors, on February 27, 2018.

(3)

Appointed President and director on October 9, 2017. Appointed Secretary and Treasurer on February 27, 2018.

(4)

Appointed Treasurer and director on October 9, 2017. Resigned as Treasurer and director on February 27, 2018.

On October 9, 2017, as a result of the Share Exchange Agreement, the stockholders of GridIron Ventures received 70,000,000 shares of our common stock in exchange for 100% of the issued and outstanding common stock of GridIron Ventures. Timothy Orr, our President, Secretary, Treasurer and director, was one of three stockholders and of GridIron Ventures. Accordingly, he was a recipient of 17,500,000 shares, or 25%, of our common stock issued in connection with the Share Exchange Agreement.

Employment Agreements

None of our executive officers currently have employment agreements with us and the manner and amount of compensation for Timothy Orr, our sole officer and director has not yet been determined.

Potential Payments Upon Termination or Change-in-Control

We currently have no employment agreements with any of our executive officers, nor any compensatory plans or arrangements resulting from the resignation, retirement or any other termination of any of our executive officers, from a change-in-control, or from a change in any executive officer’s responsibilities following a change-in-control. As a result, we have omitted this table.

Compensation Committee Interlocks and Insider Participation

No interlocking relationship exists between our Board of Directors and the Board of Directors or compensation committee of any other company, nor has any interlocking relationship existed in the past.

Option Exercises and Fiscal Year-End Option Value Table

We have not issued nor have a stock option plan and as such, there were no stock options exercised by the named executive officers as of the end of the fiscal period ended August 31, 2018.

Long-Term Incentive Plans and Awards

There were no awards made to a named executive officer, under any long-term incentive plan, as of the end of the fiscal period ended August 31, 2018.

We currently do not pay any compensation to our directors serving on our board of directors.

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Table of Contents

Stock Option Grants

The following table sets forth stock option grants and compensation for the fiscal year ended August 31, 2018:

 

 

Option Awards

 

 

Stock Awards

 

Name

 

Number of Securities Underlying Unexercised Options (#) Exercisable

 

 

Number of Securities Underlying Unexercised Options (#) Unexercisable

 

 

Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#)

 

 

Option Exercise Price ($)

 

 

Option

Expiration

Date

 

 

Number of Shares or Units of Stock That Have Not Vested (#)

 

 

Market Value of Shares or Units of Stock That Have Not Vested ($)

 

 

Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)

 

 

Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)

 

Sommay Vongsa (1)

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

$-0-

 

 

 

N/A

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

Darren Long (2)

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

$-0-

 

 

 

N/A

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

Timothy Orr (3)

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

$-0-

 

 

 

N/A

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

Brian Martinho (4)

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

$-0-

 

 

 

N/A

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

____________

(1)

Appointed President, Secretary, Treasurer and director on July 31, 2014. Resigned as President, Secretary, Treasurer and director on October 9, 2017.

(2)

Appointed Chief Executive Officer, Secretary and Chairman of the Board of Directors, on October 9, 2017. Resigned as Chief Executive Officer, Secretary and Chairman of the Board of Directors, on February 27, 2018.

(3)

Appointed President and director on October 9, 2017. Appointed Secretary and Treasurer on February 27, 2018.

(4)

Appointed Treasurer and director on October 9, 2017. Resigned as Treasurer and director on February 27, 2018.

Option Exercises and Fiscal Year-End Option Value Table.

There were no stock options exercised by the named executive officers as of the end of the fiscal period ended August 31, 2018.

Long-Term Incentive Plans and Awards

There were no awards made to a named executive officer, under any long-term incentive plan, as of the end of the fiscal period ended August 31, 2018.

Other Compensation

There are no annuity, pension or retirement benefits proposed to be paid to officers, directors, or employees of our company in the event of retirement at normal retirement date as there was no existing plan as of the end of the fiscal year ended August 31, 2018, provided for or contributed to by our company.

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Table of Contents

DIRECTOR COMPENSATION

The following table sets forth director compensation or the fiscal year ended August 31, 2018:

Name

 

Fees Earned or Paid in Cash

($)

 

 

Stock Awards ($)

 

 

Option Awards ($)

 

 

Non-Equity Incentive Plan Compensation($)

 

 

Nonqualified Deferred Compensation Earnings

($)

 

 

All Other Compensation($)

 

 

Total

($)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sommay Vongsa (1)

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

Darren Long (2)

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

Timothy Orr (3)

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

Brian Martinho (4)

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

 

 

-0-

 

______________

(1)

Appointed President, Secretary, Treasurer and director on July 31, 2014. Resigned as President, Secretary, Treasurer and director on October 9, 2017.

(2)

Appointed Chief Executive Officer, Secretary and Chairman of the Board of Directors, on October 9, 2017. Resigned as Chief Executive Officer, Secretary and Chairman of the Board of Directors, on February 27, 2018.

(3)

Appointed President and director on October 9, 2017. Appointed Secretary and Treasurer on February 27, 2018.

(4)

Appointed Treasurer and director on October 9, 2017. Resigned as Treasurer and director on February 27, 2018.

We currently do not pay any compensation to our directors for serving on our board of directors.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table lists, as of the date of this Prospectus, the number of shares of common stock of our Company that are beneficially owned by (i) each person or entity known to our Company to be the beneficial owner of more than 5% of the outstanding common stock; (ii) each officer and director of our Company; and (iii) all officers and directors as a group. Information relating to beneficial ownership of common stock by our principal shareholders and management is based upon information furnished by each person using “beneficial ownership” concepts under the rules of the Securities and Exchange Commission. Under these rules, a person is deemed to be a beneficial owner of a security if that person has or shares voting power, which includes the power to vote or direct the voting of the security, or investment power, which includes the power to vote or direct the voting of the security. The person is also deemed to be a beneficial owner of any security of which that person has a right to acquire beneficial ownership within 60 days. Under the Securities and Exchange Commission rules, more than one person may be deemed to be a beneficial owner of the same securities, and a person may be deemed to be a beneficial owner of securities as to which he or she may not have any pecuniary beneficial interest. Except as noted below, each person has sole voting and investment power.

The percentages below are calculated based on 132,637,500 shares of our common stock issued and outstanding as of the date of this Prospectus.

Title of Class

 

Name and Address of

Beneficial Owner (2)

 

Amount and Nature of Beneficial Ownership

 

 

Percent of

Common Stock

(1)

 

 

 

 

 

 

 

 

 

 

Common Stock

 

Timothy Orr (3)

 

 

20,000,000

 

 

 

15.0%

Common Stock

 

Grays Peak LLC (4)

 

 

85,000,000

 

 

 

64.0%

Series A Preferred Stock

 

Cavalry Fund I LP (5)

 

 

6,372,644

 

 

 

9.6%

All directors and executive officers as a group (1 person)

 

 

 

 

20,000,000

 

 

 

15.0%

__________

(1)

The percentages below are based on 132,637,500 shares of our common stock issued and outstanding as of the date of this Form 10-K.

(2)

c/o GridIron BioNutrients, 1119 West 1st Ave., Ste. G, Spokane, Washington 99021.

(3)

Appointed President and director on October 9, 2017. Appointed Secretary and Treasurer on February 27, 2018.

(4)

Voting and/or dispositive control held by Scott Stevens.

(5)

Holder of 6,372,644 shares of Series A Preferred Stock and a warrant to purchase 6,372,644 shares of common stock. Each share of Series A Preferred Stock is convertible at any time until July 30, 2020, at the election of the holder of the Series A Preferred Stock, into one share of common stock at a conversion price of $0.125 per share. The warrant to purchase 6,372,644 shares of common stock is convertible into shares of common stock at a conversion price of $0.165 per share, until July 30, 2021, and contains a cashless exercise feature, if such Warrant not registered in a registration statement.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

During the year ended August 31, 2018, the company assumed a related party payable totaling $75,907 through the acquisition and reverse merger as discussed in Note 1 – Organization and Description of Business. The payable was forgiven during the year ended August 31, 2018 resulting in a write off to additional paid in capital of $75,907.

The Company entered into a Stock Repurchase Agreement (the “Stock Repurchase Agreement”), dated April 19, 2018, by and among the Company, Food for Athletes, Inc., a California corporation, Darren Long and Brian Martinho, pursuant to which the Company purchased 35,000,000 shares of common stock of the Company held by Darren Long for a purchase price of $0.0008095 per shares, for an aggregate purchase price of $28,333.33, and purchased 17,500,000 shares of common stock of the Company held by Brian Martinho, for a purchase price of 0.0008095 per share, for an aggregate purchase price of $14,166.67. Additionally, the Company released claims against each the other parties to the Stock Repurchase Agreement, and each of the other parties to the Stock Repurchase Agreement release the Company from all claims.

INTEREST OF NAMED EXPERTS AND COUNSEL

Thomas Puzzo, of Law Offices of Thomas E. Puzzo, PLLC, counsel to the Company, is the holder of 2,500,000 shares of Common Stock of the Company. Law Offices of Thomas E. Puzzo, PLLC, is counsel named in this prospectusProspectus as having prepared part of this Prospectus. Except with respect to Mr. Puzzo, no expert named in this Prospectus as having prepared or certified any part of this prospectusProspectus or having given an opinion upon the validity of the securities being registered or upon other legal matters in connection with the registration or offering of the common stockCommon Stock was employed on a contingency basis, or had, or is to receive, in connection with the offering,Offering, a substantial interest, direct or indirect, in the registrantCompany or any of its parents or subsidiaries. Nor was any such person connected with the registrant or any of its parents or subsidiaries as a promoter, managing or principal underwriter, voting trustee, director, officer, or employee.

EXPERTS

 

The financial statements included in this prospectusProspectus for the years ended August 31, 2018 and the registration statements2017 have been audited by AntonFruci & Associates II, PLLC, and Chia LLP, 3501 Jamboree Road, Suite 540 Newport Beach, CA 92660, to the extent and for the periods set forth in their report appearing elsewhere herein and in the registration statement. The financial statements are included in reliance onupon such report given upon the authority of said firm as experts in auditing and accounting.

 

TheUnless otherwise indicated in the applicable prospectus supplement, Law OfficeOffices of Timothy S. Orr,Thomas Puzzo, PLLC, has rendered an opinion with respect towill provide opinions regarding the validity of the shares of common stock coveredour Common Stock. Law Offices of Thomas Puzzo, PLLC may also provide opinions regarding certain other matters. Any underwriters will also be advised about legal matters by this prospectus.their own counsel, which will be named in the prospectus supplement.

 

DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION

FOR SECURITIES ACT LIABILITIES

Our Bylaws provide to the fullest extent permitted by law that our directors or officers, former directors and officers, and persons who act at our request as a director or officer of a body corporate of which we are a shareholder or creditor shall be indemnified by us. We believe that the indemnification provisions in our By-laws are necessary to attract and retain qualified persons as directors and officers.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers or persons controlling the Company pursuant to provisions of the State of Nevada, the Company has been informed that, in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable.

 

35

Information with Respect to the Registrant

DESCRIPTION OF BUSINESS

Business Development

On July 31, 2014 Mr. Sommay Vongsa, president and sole director incorporated the Company in the State of Nevada and established a fiscal year end of August 31. MCI intends to market and sell its planed secure online data storage through its intended website.

The Company has not yet implemented its business model and to date has generated no revenues. It is the Company’s intention to provide its customers with a software program to management and aggregate individual cloud storage services that will appear and act as one large drive to the user. The user need know or care where or how their data is distributed across multiple storage platforms, but can rest assured there data will be safe and secure. Other features the MCI program will have is it will encrypt all data prior to uploading to the cloud and it will not have a file size restriction as many current providers do.

Currently MCI has identified 5 service providers whose aggregated free cloud storage could provide a MCI user with 57 gigabytes of free cloud storage to be managed by your application available for $9.99.

 MCI intends to develop and deliver a computer software program for Windows, MAC, OSI and Android systems that will allow its customers to aggregate and managed multiple Cloud Storage accounts as one. Using the application the user may sign up for multiple free or paid for Cloud Storage accounts from Cloud Storage providers such as Microsoft, Apple, Dropbox and others. Users of our application could sign up for as much as 57 gigabytes of free cloud storage using multiple services but have them treated as one single drive on their desktop or mobile device. Our application sells for $9.99 and be available from our website, the Apps Store and Google’s store. Not only will our application manage and consolidate multiple Cloud Storage accounts but it will also offer a higher level of security currently available, most Cloud Storage provider encrypt a users files once they reach the cloud but transfer those files across the Internet unencrypted. The MCI application will encrypt a user’s file on the local device prior to uploading them to the Cloud.

We intend to market our services on the Internet. We have three planned phases to our operations over the next twelve months. The business activities and related expenses in each phase will be affected by the proceeds from sales of shares in this offering received by the Company as discussed below.

Plan of Operation

Over the 12-month period starting upon the effective date of this registration statement, our company must raise capital to introduce its planned products and start its sales. We intend to raise the capital by investors investing in our startup company. We intend to market our services on the Internet. We have three planned phases to our operations over the next twelve months. The business activities and related expenses in each phase will be affected by the proceeds from sales of shares in this offering received by the Company as discussed below.

The Company has not yet implemented its business model and to date has generated no revenues.

It is the Company’s intention to provide its customers with a large amount (50 plus gigabytes) of free cloud storage and security features available in the market today.

Over the next twelve months, the Company plans to introduce software with several different features:

1)

A software application that will manage and amalgamate multiple cloud storage services so they appear and act like a single drive on your desktop or mobile device.

2)

A secure data backup service using the highest levels of encryption algorithms that will encrypt data on the local device before it is storage; and

3)

Eliminate any file size restriction for upload to the web as long as the user has enough total cloud storage available for the file.

 

Table of Contents

Within the first quarter the company will hire a company or individual to create MCI’s website, the Company anticipate the website will be complete 180 days after this prospectus becomes effective. The Company anticipates the cost of website development to be $5,000.

 

Within the first quarter the company will apply for the free licenses to use the identified Cloud Storage providers API (Applied programming Interface). The API provided for free by Companies such as Microsoft, Google and other Cloud Service Providers allows My Cloudz application to upload storage and download files onto their cloud servers. Other than the president’s time to fill out the API software developers request forms and submit them there are no hard cost associated with this step.

Within 180 days of this prospectus being approved the company intends to hire a third party company or individual to begin writing the company’s application, the development work will happen in four phases with 4 product releases. (MCI is considering contract programmers in India, Russia, China and Serbia; however, as of the date of this prospectus has not engaged any programmers).

The first anticipated product will be for a Windows compatible machine that will allow the encryption and storage of users files across multiple cloud storage services provider with a capability of over 50 gigabytes of cloud storage. The initial product will only allow for the manual uploading and restoring of files and will be used as an emergency backup system. MCI anticipates the product will be released with 360 days of this prospectus being approved and should cost $30,000.00.

The next product to be released will be the Cloudz application for Apple desktops, MCI anticipates this development to start within 30 days of the Windows development and to be completed within 360 to 390 days after this prospectus becomes effective. MCI anticipates it will cost approximately 25,000 for development.

The next development project will be for the Ipad and Iphone OSI systems. The Company anticipates these applications to be developed within 270 days of this prospectus being approved and have budgeted $20,000 for these applications. With the large number of applications developers and the vast amount of developer tools available the cost to develop applications has dropped dramatically in the past 3 years.

The last product development to commence development will be the Android application the company anticipates this application development will begin 360 days after this prospectus becomes effective and will cost approximately $20,000.00.

Once the Company has written applications for the 4 major operating systems that allow manual file backup and retrieval the Company intends to add additional features to each platform. These additional features would include automatic backup syncing, as soon as a user modifies a file in the MyCloudz folder it will automatically be encrypted and sent to the Cloud. File sharing, allowing a user to share specific Cloud stored files with other users.

In the event the Company sells 25% of the shares offered, the Company intends to scale back its planned software development to providing a secure data backup service only thereby reducing its anticipated software development expense to $13,550. In addition, the Company will reduce its planned business travel expense to $3,000; scale back the purchase of its computer hardware to $4,000 and reduce planned market research expense to $2,500. Office supplies expense will be reduced to $550 and the required server farm rental will be reduced to $3,000. Logo development expense will be reduced to $3,000; website development will be reduced to $2,500; online advertising expense will be reduced to $6,000 thereby reducing total sales and marketing expenses to $12,000 (see Use of Proceeds, page 14).


In the event the Company sells 50% of the shares offered, the Company intends to scale back its planned software development to providing a secure data backup service and multiple layers of passwords allowing various layers of access to limited amounts of data only thereby reducing its anticipated software development expense to $35,500. In addition, the Company will reduce its planned business travel expense to $5,000; scale back the purchase of its computer hardware to $8,000 and reduce planned market research expense to $7,000. Office supplies expense will be reduced to $1,300 and the required server farm rental will be reduced to $3,500. Logo development expense will be reduced to $5,500; website development will be reduced to $5,000; online advertising expense will be reduced to $17,300 thereby reducing total sales and marketing expenses to $28,300 (see Use of Proceeds, page 14).

In the event the Company sells 75% of the shares offered, the Company intends to scale back its planned software development to providing a secure data backup service, multiple layers of passwords allowing various layers of access to a limited amounts of data and a military grade data purge of all data associated with that password thereby reducing its anticipated software development expense to $71,250. In addition, the Company will reduce its planned business travel expense to $8,000; scale back the purchase of its computer hardware to $9,000 and reduce planned market research expense to $9,000. Office supplies expense will be reduced to $3,050 and the required server farm rental will be reduced to $5,000. Logo development expense will be reduced to $7,000; online advertising expense will be reduced to $20,800 thereby reducing total sales and marketing expenses to $33,300 (see Use of Proceeds, page 14).

The Market Opportunity

Through Internet research management believes that by 2018 the cloud storage market will reach $46 billion dollars.

Additional research suggest there are nearly a billion individual (non corporate) Cloud Storage users and that the company’s offering of 57 gigabytes of consolidation free could storage for a one time fee of $9.99 will be one of the best values available in the market place.

The company’s management also believes that the established Cloud Storage providers in the short term will offer more and more free storage and soon a user will be able to aggregate over 100 gigabytes of free storage.

The Company believes the High School, College and University Students who are generally thrifty and tech savvy will make up the Company’s initial target market.

Description of our Product

MCI intends to provide secure online storage in the cloud. We intend to have our first feature of our intended software to be online backup services that is protected by highest levels of encryption algorithms as well as ghosting and spoofing techniques of Intent IP addresses making it virtually impossible to track.

Our second feature will be to have multiple layers of passwords allowing various layers of access to a limited amount of data.

Our third feature we intend to have in our software is if you used the same login with another password it would cause a military grade data purge of all data associated with that password.

Our fourth planned feature’s may include the opportunity to dispatch help such as the local police should someone be forced to reveal sensitive data against their will. For example a password could give access to non-critical data but at the same time that password could cause the system to dispatch police to a specific location.


Marketing

Our marketing strategy will be strictly using electronic media for both product delivery and marketing. Our products for the Mac Computer and Windows Computer will be available for download from our website while the applications for the Iphone and Ipad will be available for download from Apple’s App Store and our product supporting Android devices will be available from Google Play.

We use traditional e-marketing techniques such as Cloud Chat Rooms and contacting people who blog about Cloud Storage. Non-spam email campaigns, purchasing Google Ad words, utilizing twitter, messaging and other social media outlets.

The Company feels that students in high school and universities would be our first target group; they are generally tech savvy, budget conscious and can be a major influence in a product going viral.

The Company once it has its product offering being desktop and mobile would begin a messaging and email campaign directed at students

In addition, we will offer prospective customers a referral incentive whereby they can earn 3 additional free months if they refer a customer that signs up for online storage. We do not intend to profit from the first phase of our marketing strategy. We intend only to drive traffic and make people aware of our online presence.

In the third phase of our Marketing campaign intend to engage an online marketing company that we would pay to drive traffic to our site; this will last for 90 days after which we believe we will be well enough known to start getting in subscriptions for our services. We do not intend to profit from our initial marketing campaign to generate initial web site traffic. Once we have obtained steady sales traffic on our site (estimated to take 120 days following the closing of this offering), we will initiate the second stage of our strategy. The combined cost of logo development and website development is approximately $62,000. The Company anticipates that within 150 days of this offering the Company’s BETA web site and initial product offering will be launched

For the second phase of our marketing strategy, we intend to enhance and improve our website by making it both easier to use and to introduce additional services. Total cost of web site development is estimated at $5,000, we intend to increase our planed logo development to $7,000 for the year. We plan to further develop name awareness by submitting our website to search engines at an estimated cost of $20,800.

The third phase of our strategy is to extend our brand awareness by expanding our marketing efforts we intend to increase our logo development to $10,000 and increase our estimated online advertising cost to $22,800.

Competitive Advantages

Software development contractors from South Africa, India or China will be contracted to design our intended software and we will utilize the most cost effective one. Utilizing contractors means that we can offer a finished software product for a better cost to value ratio.

Intellectual Property

We intend, in due course, subject to legal advice, to apply for trademark protection and/or copyright protection in the United States, Canada, and other jurisdictions.

We intend to aggressively assert our rights under trademark and copyright laws to protect our intellectual property, including product design, product research and concepts and recognized trademarks. These rights are protected through the acquisition of trademark registrations, the maintenance of copyrights, and, where appropriate, litigation against those who are, in our opinion, infringing these rights.

While there can be no assurance that registered trademarks and copyrights will protect our proprietary information, we intend to assert our intellectual property rights against any infringer. Although any assertion of our rights can result in a substantial cost to, and diversion of effort by, our company, management believes that the protection of our intellectual property rights is a key component of our operating strategy.


Regulatory Matters

We are unaware of and do not anticipate having to expend significant resources to comply with any governmental regulations of data storage. In general, the development and operation of our business is not subject to special regulatory and/or supervisory requirements.

Environmental Laws

We have not incurred and do not anticipate incurring any expenses associated with environmental laws.

Employees and Employment Agreements

As the date of this prospectus, MCI has no permanent staff other than its sole officer and director, Mr. Sommay Vongsa, who is the President and director of the Company. Mr. Sommay Vongsa has the flexibility to work on MCI up to 20 hours per week. He is prepared to devote more time to our operations as may be required. He is not being paid at present.

There are no employment agreements in existence. The Company presently does not have pension, health, annuity, insurance, stock options, profit sharing or similar benefit plans; however, the Company may adopt plans in the future. Management does not plan to hire additional employees at this time. Our sole officer and director will be responsible for the initial servicing. Once the Company begins building its Internet website, the Company will hire an independent consultant to build the site.

AVAILABLEWHERE YOU CAN FIND MORE INFORMATION

 

We have filed with the SEC a registration statement on Form S-1, undertogether with all amendments and exhibits, with the Securities Act with respect to the common stock offered hereby.SEC. This prospectus,Prospectus, which constitutesforms a part of thethat registration statement, does not contain all ofinformation included in the registration statement. Certain information set forth inis omitted and you should refer to the registration statement and its exhibits. With respect to references made in this Prospectus to any of our contracts or other documents, the references are not necessarily complete and you should refer to the exhibits and schedule thereto, certain parts of which are omitted in accordance with the rules and regulations of the SEC. For further information regarding our common stock and our company, please reviewattached to the registration statement including exhibits, schedules and reports filed as a part there of.

Upon effectiveness of this Prospectus, we will be subject to the reporting and other requirementsfor copies of the Exchange Actactual contracts or documents. You may read and copy any document that we intend to furnish our shareholders annual reports containing financial statements audited by our registered independent auditors and to make available quarterly reports containing unaudited financial statements for each offile at the first three quarters of each year. Such reports and other information along with the registration statement, including the exhibits and schedules thereto, may be inspected at public reference facilities of the SECCommission’s Public Reference Room at 100 F Street, N.E,N.E., Washington, D.C. 20549. Copies of such material can be obtained from the Public Reference Section of the SEC at prescribed rates. You mayPlease call the SEC at 1-800-SEC-0330 for further information on the operation of the public reference room. Because we file documents electronically withrooms. Our filings and the SEC, you mayregistration statement can also obtain this informationbe reviewed by visitingaccessing the SEC’s Internet website at http://www.sec.gov.

 

Reports to security holdersCHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON

ACCOUNTING AND FINANCIAL DISCLOSURE

 

After we complete this offering, we willFruci & Associates II, PLLC, is our independent registered public accounting firm. There have not be required to furnish youbeen any changes in or disagreements with an annual report. Further, we will not voluntarily send you an annual report. We will be required to file reports with the SEC under section 13 (a)accountants on accounting and financial disclosure or 15 (d) of the Securities Act. The reports will be filed electronically. The reports we will be required to file are Forms 10-K, 10-Q, and 8-K. You may read copies of any materials we file with the SEC at the SEC’s Public Reference Room or visiting the SEC’s Internet website (see “Available Information” above).other matter.

 

LEGAL PROCEEDINGS

There are no legal proceedings pending or threatening.

 

36
Table of Contents

MY CLOUDZ, INC.

 

GRIDIRON BIONUTRIENTS, INC.

INDEX TO FINANCIAL STATEMENTS

(Unaudited)

February 28, 2015Fiscal Years ended August 31, 2018 and 2017 (Audited)

 

BALANCE SHEETSReport of Independent Registered Public Accounting Firm –Fruci & Associates II, PLLC

F-2

Consolidated Balance Sheets - August 31, 2018 and 2017

F-3

Consolidated Statements of Operations for the years ended August 31, 2018 and 2017

F-4

Consolidated Statements of Stockholders’ Equity (Deficit) for the years ended August 31, 2018 and 2017

F-5

Consolidated Statements of Cash Flows for the years ended August 31, 2018 and 2017

F-6

Notes to Consolidated Financial Statements

F-7

Three months ended November 30, 2018 and 2017 (Unaudited)

Condensed Consolidated Balance Sheets as of February 28, 2015November 30, 2018 (Unaudited) and August 31, 2014 (Audited)2018

F-16

F-2

Condensed Unaudited Consolidated Statements of Operations for the six months ended November 30, 2018 and November 30, 2017.

F-17

Condensed Unaudited Consolidated Statements of Stockholders’ Equity for the six months ended November 30, 2018.

F-18

Condensed Unaudited Consolidated Statements of Cash Flows for the six months ended November 30, 2018 and November 30, 2017

F-19

Notes to Condensed Consolidated Financial Statements (Unaudited)

F-20

F-1
 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Shareholders of Gridiron BioNutrients, Inc.

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Gridiron BioNutrients, Inc. (“the Company”) as of August 31, 2018 and 2017, and the related consolidated statements of operations, changes in stockholders’ deficit, and cash flows for the year and period then ended, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of August 31, 2018 and 2017, and the results of its operations and its cash flows for each of the year and period ended August 31, 2018 and 2017, respectively, in conformity with accounting principles generally accepted in the United States of America.

Consideration of 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 3 to the financial statements, the Company has an accumulated deficit and intends to fund operations through equity financing which may be insufficient to fund its capital expenditures. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

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 audits. 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 audits, 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 audits 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 audits 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 audits provide a reasonable basis for our opinion.

Fruci & Associates II, PLLC

We have served as the Company’s auditor since 2017.

Spokane, Washington

December 14, 2018

F-2
 
Table of Contents

GRIDIRON BIONUTRIENTS, INC.

 

STATEMENTS OF OPERATIONS - Six months ended February 28, 2015 (Unaudited) and from inception (July 31, 2014) to August 31, 2014 (Audited)(f.k.a. My Cloudz, Inc.)

F-3
 

STATEMENTS OF CASH FLOWS - Six months ended February 28, 2015 (Unaudited) and from inception (July 31, 2014) to August 31, 2014 (Audited)COSOLIDATED BALANCE SHEETS

F-4

NOTES TO FINANCIAL STATEMENTS

F-5 


MY CLOUDZ, INC.

 

 

 

 

 

August 31,

 

 

 

2018

 

 

2017

 

ASSETS

Current assets

 

 

 

 

 

 

Cash

 

$774,468

 

 

$25

 

Accounts receivable

 

 

428

 

 

 

-

 

Inventory

 

 

53,110

 

 

 

-

 

Prepaid expense

 

 

30,000

 

 

 

-

 

Total current assets

 

 

858,006

 

 

 

25

 

 

 

 

 

 

 

 

 

 

Equipment, net of accumulated depreciation of $530 and $0, respectively

 

 

1,937

 

 

 

-

 

Trademarks

 

 

2,800

 

 

 

2,800

 

 

 

 

 

 

 

 

 

 

Total assets

 

$862,743

 

 

$2,825

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$95,287

 

 

$-

 

Related party payable

 

 

-

 

 

 

16,101

 

Derivative liability

 

 

537,889

 

 

 

-

 

Note payable, current portion

 

 

49,500

 

 

 

-

 

Dividends payable

 

 

4,192

 

 

 

-

 

Total current liabilities

 

 

686,868

 

 

 

16,101

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Stockholders' equity (deficit)

 

 

 

 

 

 

 

 

Common stock to be issued

 

 

160,000

 

 

 

-

 

Preferred stock, $0.001 par value; 25,000,000 share authorized; 8,480,000 and 0 issued and outstanding as of August 31, 2018 and 2017, respectively

 

 

8,480

 

 

 

-

 

Common stock, $0.001 par value; 200,000,000 shares authorized; 132,637,500 and 62,637,500 shares issued and outstanding as of August 31, 2018 and 2017, respectively

 

 

132,638

 

 

 

62,638

 

Additional paid in capital

 

 

867,949

 

 

 

(62,438)

Accumulated deficit

 

 

(993,191)

 

 

(13,476)

Total stockholders' equity (deficit)

 

 

175,875

 

 

 

(13,276)

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity (deficit)

 

$862,743

 

 

$2,825

 

BALANCE SHEETS

  February 28,
2015
  August 31,
2014
 
  (Unaudited)  (Audited) 

ASSETS

     

CURRENT ASSETS

    

Cash

 

$

7,320

  

$

2,643

 
        

TOTAL ASSETS

 

$

7,320

  

$

2,643

 
        

LIABILITIES AND STOCKHOLDERS' DEFICIT

        

CURRENT LIABILITIES

        

Account payables

 

$

-

  

$

1,250

 

Due to related party

  

13,677

   

4,960

 
        

TOTAL LIABILITIES

  

13,677

   

6,210

 
        
        

STOCKHOLDERS' DEFICIT

        

Common stock

        

Authorized 200,000,000 shares of common stock, $0.001 par value, Issued and outstanding 5,000,000 shares of common stock as of February 28, 2015 and nil as of August 31, 2014

  

5,000

   

-

 

Accumulated Deficit

 

(11,358

)

 

(3,567

)

        

TOTAL STOCKHOLDERS' DEFICIT

 

(6,357

)

 

(3,567

)

        

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

 

$

7,320

  

$

2,643

 

   

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

 

F-3
 

Table of Contents

GRIDIRON BIONUTRIENTS, INC.

(f.k.a. My Cloudz, Inc.)

CONSOLIDATED STATEMENTS OF OPERATIONS

MY CLOUDZ, INC.

 

 

Year ended
August 31,
2018

 

 

Period from July 20, 2017 (inception) to August 31,

2017

 

Revenues

 

$16,771

 

 

$-

 

Cost of revenues

 

 

81,025

 

 

 

-

 

Net margin

 

 

(64,254)

 

 

-

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

Advertising

 

 

61,812

 

 

 

-

 

Consulting fees

 

 

72,349

 

 

 

-

 

General and administrative

 

 

56,951

 

 

 

13,476

 

Professional fees

 

 

133,822

 

 

 

-

 

Travel

 

 

46,930

 

 

 

-

 

Total operating expenses

 

 

371,864

 

 

 

13,476

 

 

 

 

 

 

 

 

 

 

Net loss from operations

 

 

(436,118)

 

 

(13,476)

 

 

 

 

 

 

 

 

 

Other income (expense)

 

 

 

 

 

 

 

 

Interest expense

 

 

(1,517)

 

 

-

 

Gain on change in fair value of derivative liability

 

 

136,123

 

 

 

-

 

Equity issuance costs

 

 

(674,012)

 

 

-

 

Total other income (expense)

 

 

(539,406)

 

 

-

 

 

 

 

 

 

 

 

 

 

Net loss

 

$(975,524)

 

$(13,476)

 

 

 

 

 

 

 

 

 

Net loss per common share, basic and diluted

 

$(0.01)

 

$(0.00)

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic and diluted

 

 

125,158,048

 

 

 

62,637,500

 

STATEMENTS OF OPERATIONS

  Six months ended February 28,
2015
  From July 31, 2014 to August 31,
2014
 
  (Unaudited)  (Audited) 

 

 

 

 

 

REVENUE

 

$

-

  

$

-

 
        

EXPENSES

        

Office and general

 

$

571

  

$

2,317

 

Professional fees

  

7,220

   

1,250

 
        

TOTAL EXPENSES

 

(7,791

)

 

(3,567

)

        

NET LOSS

 

(7,791

)

 

(3,567

)

        

BASIC NET LOSS PER COMMON SHARE

$

(0.00

)

$

(0.00

)

        

WEIGHTED AVERAGE NUMBER OF BASIC COMMON SHARES OUTSTANDING

  

3,066,298

   

0

 

  

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

   

F-4
 

Table of Contents

 

MY CLOUDZ, INC.

GRIDIRON BIONUTRIENTS, INC.

(f.k.a. My Cloudz, Inc.)

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Additional

Paid in

 

 

Common

Stock

 

 

Retained

 

 

 

 

 

Number

 

 

Amount

 

 

Number

 

 

Amount

 

 

Capital

 

 

To be Issued

 

 

Earnings

 

 

Total

 

Balance, July 20, 2017 (inception)

 

 

-

 

 

$-

 

 

 

-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

 

$-

 

Effects of reverse capitalization

 

 

-

 

 

 

-

 

 

 

62,437,500

 

 

 

62,438

 

 

 

(62,438)

 

 

-

 

 

 

-

 

 

 

-

 

Common shares issued for services

 

 

-

 

 

 

-

 

 

 

200,000

 

 

 

200

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

200

 

Net loss, period ended August 31, 2017

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(13,476)

 

 

(13,476)

Balance, August 31, 2017

 

 

-

 

 

 

-

 

 

 

62,637,500

 

 

 

62,638

 

 

 

(62,438)

 

 

-

 

 

 

(13,476)

 

 

(13,276)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of preferred stock for cash

 

 

8,480,000

 

 

 

8,480

 

 

 

-

 

 

 

-

 

 

 

997,520

 

 

 

-

 

 

 

-

 

 

 

1,006,000

 

Issuance of common stock for reverse merger

 

 

-

 

 

 

-

 

 

 

70,000,000

 

 

 

70,000

 

 

 

(143,040)

 

 

-

 

 

 

-

 

 

 

(73,040)

Common stock subscribed for cash

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

160,000

 

 

 

-

 

 

 

160,000

 

Forgiveness of related party payable

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

75,907

 

 

 

-

 

 

 

-

 

 

 

75,907

 

Dividends on preferred stock accrued

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,192)

 

 

(4,192)

Net loss, period ended August 31, 2018

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(975,524

)

 

 

(975,524

)

Balance, August 31, 2018

 

 

8,480,000

 

 

$8,480

 

 

 

132,637,500

 

 

$132,638

 

 

$867,949

 

 

$160,000

 

 

$(993,191)

 

$

175,875

 

STATEMENTS OF CASH FLOWS

  Six months
Ended
February 28,
2015
  From July 31,
2014 to
August 31,
2014
 
  (Unaudited)  (Audited) 

OPERATING ACTIVITIES

    

Net loss for the period

 

$

(7,791

)

 

$

(3,567

)

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

        

Changes in operating assets and liabilities:

        

Decrease in Accounts payables and accrued liabilities

 

(1,250

)

  

1,250

 
        

NET CASH USED IN OPERATING ACTIVITIES

 

(9,041

)

 

(2,317

)

 

 

 

 

 

FINANCING ACTIVITIES

        

Proceeds on sale of common stock

  

5,000

   

-

 

Advances from related parties

  

8,718

   

4,960

 
        

NET CASH PROVIDED BY FINANCING ACTIVITIES

  

13,718

   

4,960

 
        

NET INCREASE IN CASH

  

4,677

   

2,643

 
        

CASH, BEGINNING

  

2,643

   

-

 
        

CASH, ENDING

 

$

7,320

  

$

2,643

 
        

SUPPLEMENTAL CASH FLOW INFORMATION AND NONCASH FINANCING ACTIVITIES;

        

Cash paid during the period for:

      

Interest

 $-  

$

-

 

Income taxes

 $-  

$

-

 

    

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

 

F-5
 

Table of Contents

GRIDIRON BIONUTRIENTS, INC.

(f.k.a. My Cloudz, Inc.)

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

Year ended

August 31, 2018

 

 

Period from July 20, 2017 (inception) to August 31, 2017

 

Cash flows from operating activities

 

 

 

 

 

 

Net loss

 

$(975,524)

 

$(13,476)

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

 

 

 

 

 

Depreciation

 

 

530

 

 

 

-

 

Stock based issue costs

 

 

674,012

 

 

 

-

 

Gain on change in fair value of derivative liability

 

 

(136,123)

 

 

-

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Accounts receivable

 

 

(428)

 

 

-

 

Inventory

 

 

(53,110)

 

 

-

 

Prepaid expenses

 

 

(30,000)

 

 

-

 

Accounts payable and accrued expenses

 

 

94,182

 

 

 

-

 

Expenses paid on behalf of company

 

 

-

 

 

 

13,276

 

Related party payable

 

 

(16,101

 

 

-

 

Common stock issued for services

 

 

-

 

 

 

200

 

Net cash used in operating activities

 

 

(442,562)

 

 

-

 

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchase of equipment

 

 

(2,467)

 

 

-

 

Net cash used in investing activities

 

 

(2,467)

 

 

-

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Advances from related parties

 

 

-

 

 

 

25

 

Proceeds from notes payable

 

 

49,500

 

 

 

-

 

Proceeds from common stock subscriptions

 

 

160,000

 

 

 

-

 

Proceeds from the sale of preferred stock and warrants

 

 

1,006,000

 

 

 

-

 

Cash contributed in merger

 

 

3,972

 

 

 

-

 

Net cash provided by financing activities

 

 

1,219,472

 

 

 

25

 

 

 

 

 

 

 

 

 

 

Cash, beginning of period

 

 

25

 

 

 

-

 

Net change in cash

 

 

774,443

 

 

 

25

 

Cash, end of period

 

$774,468

 

 

$25

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

$-

 

 

$-

 

Cash paid for interest

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing activities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses assumed in reverse merger

 

$1,105

 

 

$-

 

Forgiveness of related party payable

 

75,907

 

 

$

-

 

Related party payable assumed in reverse merger

 

$75,907

 

 

$-

 

Common shares issued in reverse merger at par value

 

$

70,000

 

 

$

-

 

Trademark costs paid by related party

 

$-

 

 

$2,800

 

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

F-6
Table of Contents

 

MY CLOUDZ,GRIDIRON BIONUTRIENTS, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)Notes to Financial Statements

February 28, 2015August 31, 2018


 

NOTE 1 – NATUREORGANIZATION AND DESCRIPTION OF OPERATIONS AND BASIS OF PRESENTATIONBUSINESS

 

MY CLOUDZ, INC.Gridiron BioNutrients, Inc. (the “Company” or “Gridiron”) was incorporated informed under the Statelaws of the state of Nevada on July 20, 2017 to develop and distribute a retail line of health water infused with probiotics and minerals. The Company has elected an August 31, 2017 year end.

Acquisition and Reverse Merger

On October 10, 2017, the Company completed a reverse merger with My Cloudz, Inc. (“My Cloudz”) pursuant to which the Company merged into My Cloudz on October 10, 2017. Under the terms of the merger, the Company shareholders received 70,000,000 common shares of My Cloudz common stock such that the Company shareholders received approximately 57% of the total common shares issued and outstanding following the merger. Due to the nominal assets and limited operations of My Cloudz prior to the merger, the transaction was accorded reverse recapitalization accounting treatment under the provision of Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 805 whereby the Company became the accounting acquirer (legal acquiree) and My Cloudz was treated as the accounting acquiree (legal acquirer). The historical financial records of the Company are those of the accounting acquirer (GridIron) adjusted to reflect the legal capital of the accounting acquiree (My Cloudz). As the transaction was treated as a for-profitrecapitalization, no intangibles, including goodwill, were recognized. Concurrent with the effective date of the reverse recapitalization transaction, the Company on July 31, 2014 and established aadopted the fiscal year end of the accounting acquirer of August 31. The Company is a development-stage Company that intends to market and sell its planned secure online data storage through its intended website.

 

Going concern

ToAt the date the Company has generated no revenues from its business operationsof acquisition, My Cloudz had $3,972 of cash, $1,105 of accounts payable and has an accumulated deficita related party payable of $11,358. As of February 28, 2015, the Company had a working capital deficit of $6,357. The Company requires additional funding to meet its ongoing obligations$75,907. Book values for all assets acquired and to fund anticipated operating losses. The abilityliabilities assumed equaled fair values as of the Company to continue as a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as to the Company’s ability to continue as a going concern. The Company intends to continue to fund its business by waydate of private placements and advances from related parties as may be required. As of February 28, 2015, the Company has funded initial expenses through advances from its president. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.acquisition.

 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

 

BasisThis summary of Presentation

accounting policies for Gridiron is presented to assist in understanding the Company’s financial statements. The accompanying balance sheet asCompany uses the accrual basis of August 31, 2014, which has been derived from the Company's audited financial statements as of that date,accounting and the unaudited financial information of the Company as of February 28, 2015 and for six months ended February 28, 2015, has been prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") for interim financial information(“GAAP” accounting) and includehave been consistently applied in the Company’s S-1 filing. In the opinionpreparation of management, such financial information includes all adjustments considered necessary for a fair presentation of the Company's financial position at such date and the operating results and cash flows for such periods. Operating results for the interim period ended February 28, 2015 are not necessarily indicative of the results that may be expected for the entire year.

Certain information and footnote disclosure normally included in financial statements in accordance with generally accepted accounting principles have been omitted pursuant to the rules of the United States Securities and Exchange Commission ("SEC"). These unaudited financial statements should be read in conjunction with our audited financial statements and accompanying notes included in the Company's S1 registration statement for the period.

Comprehensive Loss

“Reporting Comprehensive Income,” establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As of February 28, 2015, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.

 

Use of Estimates and Assumptions

 

PreparationThe preparation of the financial statements in conformity with accounting principles generally accepted accounting principlesin the United States requires management to make estimates and assumptions that affect certainthe reported amounts of assets and liabilities and disclosure of contingent assets and liabilities atas of the date of the financial statements and the reported amounts of revenues and expenses during the period. Accordingly, actualstatements. Actual results could differ from those estimates. Estimates are used when accounting for fair value calculations related to embedded conversion features of outstanding convertible notes payable.

 

Cash

 

Cash andFor purposes of the statement of cash equivalents include cash on hand and on deposit at banking institutions as well asflows, the Company considers all highly liquid short-term investmentsdebt instruments purchased with original maturitiesa maturity of 90 daysthree months or less.less to be cash equivalents to the extent the funds are not being held for investment purposes. The Company had $774,468 and $25 of cash and no cash equivalents as of August 31, 2018 and August 31, 2017 respectively. As of August 31, 2018, the Company had cash of $524,443 with one financial institution in excess of the FDIC insured limit of $250,000.

Revenue recognition

The Company follows paragraph 605-10-S99 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured. The Company primarily generates revenues through the sale of products through its website and at industry tradeshows.

F-7
Table of Contents

GRIDIRON BIONUTRIENTS, INC.

Notes to Financial Statements

August 31, 2018

Fair Value of Financial Instruments

Fair value of certain of the Company’s financial instruments including cash, account payable, accrued expenses, notes payable, and other accrued liabilities approximate cost because of their short maturities. The Company measures and reports fair value in accordance with ASC 820, “Fair Value Measurements and Disclosure” defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments.

Fair value, as defined in ASC 820, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset should reflect its highest and best use by market participants, principal (or most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the risk of nonperformance, which includes, among other things, the Company’s credit risk.

Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability, and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting measurement as follows:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities.

Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities; and

Level 3: Unobservable inputs for the asset or liability that are supported by little or no market activity, and that are significant to the fair values.

Fair value measurements are required to be disclosed by the Level within the fair value hierarchy in which the fair value measurements in their entirety fall. Fair value measurements using significant unobservable inputs (in Level 3 measurements) are subject to expanded disclosure requirements including a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earning are reported in the statement of income.

As discussed in Note 7 – Warrants and Derivative Liability, the Company valued its derivative liability using Level 3 inputs as of August 31, 2018. The Company did not identify any additional assets or liabilities that are required to be presented on the balance sheet at fair value in accordance with ASC 825-10 as of August 31, 2018 and August 31, 2017 respectively. 

Income Taxes

Income taxes are accounted for under the assets and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Use of net operating loss carry forwards for income tax purposes may be limited by Internal Revenue Code section 382 if a change of ownership occurs.

Principals of Consolidation

The consolidated financial statements represent the results of Gridiron BioNutrients, Inc,; its wholly owned subsidiary, GridIron Ventures and the assets, processes, and results therefrom. All intercompany transactions and balances have been eliminated. All financial information has been prepared in conformity with accounting principles generally accepted in the United States of America.

F-8
Table of Contents

GRIDIRON BIONUTRIENTS, INC.

Notes to Financial Statements

August 31, 2018

Property and Equipment

Property and equipment are carried at cost. Expenditures for maintenance and repairs are expensed in the period incurred. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period.

Depreciation is computed for financial statement purposes on a straight-line basis over estimated useful lives of the related assets and the modified accelerated cost recovery system for federal income tax purposes. The estimated useful lives of depreciable assets are:

Estimated Useful Lives

Computer Equipment

3 years

 The Company’s property and equipment consisted of the following as of August 31, 2018 and August 31, 2017:

 

 

August 31,

 

 

 

2018

 

 

2017

 

Computer Equipment

 

$2,467

 

 

$-

 

Accumulated depreciation

 

 

(530)

 

 

-

 

Net book value

 

$1,937

 

 

$-

 

Depreciation expense for the year ended August 31, 2018 and period ended August 31, 2017 was $530 and $0, respectively.

Inventories

Inventories consist primarily of ready to sell product and packing materials and are stated at the lower of cost or net realizable value using the first‑in, first‑out method. The Company periodically assesses the recoverability of its inventory and reduces the carrying value of the inventory when items are determined to be obsolete, defective or in excess of forecasted sales requirements. Inventory write‑downs for excess, defective and obsolete inventory are recorded as a cost of revenue. The Company did not have cash equivalentsany write downs of inventory during the year ended August 31, 2018 or period ended August 31, 2017, respectively. Inventory balances were $53,110 and $0 as of February 28, 2015.August 31, 2018 and August 31, 2017, respectively.


MY CLOUDZ, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)

February 28, 2015


 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)Notes Payable

 

Financial InstrumentsAs of August 31, 2018, and August 31, 2017, the Company had two notes payable with a principal balance of $49,500 and $0, respectively, owed to two separate noteholders. Each note payable is unsecure with one bearing interest at 5% and the other at 0% respectively. As of August 31, 2018, the Company had an outstanding accrued interest balance of $475, which has been included in accounts payable and accrued expenses.

 

All significant financial assets, financial liabilities and equity instruments of the Company are either recognized or disclosed in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate risk and credit risk. Where practical the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.Basic Income (Loss) Per Share

 

Loss per Common Share

The basic earningsBasic income (loss) per share is calculated by dividing the Company’s net income availableloss applicable to common shareholders by the weighted average number of common shares during the year. The dilutedperiod. Diluted earnings (loss) per share is calculated by dividing the Company’s net income (loss) available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Diluted earnings (loss) per share areequity, note as they would have been anti-dilutive. The conversion of preferred shares and warrants to commons shares could potentially bring the same as basic earnings (loss) per share dueamount of common shares to a total of 183,746,071. The preferred conversion and warrants would account for 50,880,000 additional shares bringing along with the lack of132,637,500 outstanding at August 31, 2018 plus an additional 228,571 that have not been issued yet. There were no potentially dilutive items inshares outstanding during the Company.periods ended August 31, 2018 and August 31, 2017 respectively.  

F-9
Table of Contents

 

Income TaxesGRIDIRON BIONUTRIENTS, INC.

Notes to Financial Statements

August 31, 2018

Dividends

As discussed in Note 5 – Stockholders Equity (Deficit), during the year ended August 31, 2018, the Company issued preferred stock which accrues dividends at a rate of 5% annually. There was $4,192 and $0 of dividends payable at August 31, 2018 and 2017, respectively.

Advertising Costs

The Company’s policy regarding advertising is to expense advertising when incurred. The Company incurred advertising costs totaling $61,812 during the year ended August 31, 2018 and $0 during the period ended August 31, 2017.

Stock-Based Compensation

 

The Company accounts for equity instruments issued to parties other than employees for acquiring goods or services under guidance of subtopic 505-50 of the FASB Accounting Standards Codification (“Sub-topic 505-50”) and subtopic 718-20 for awards classified as equity to employees. There was $0 and $200 of stock based compensation during the year ended August 31, 2018 and period ended August 31, 2017.

Related Parties

The registrant follows subtopic 850-10 of the liabilityFASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

Pursuant to Section 850-10-20 the Related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the registrant; (e) management of the registrant; (f) other parties with which the registrant may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized forestablishing the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances and tax loss carry-forwards. Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable incometerms from that used in the years in which those differences are expectedpreceding period; and (d) amounts due from or to be recovered or settled. The effect on deferred tax assets and liabilitiesrelated parties as of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement. 

 

RecentAccounts Receivable

Accounts receivable balances are established for amounts owed to the Company from its customers from the sale of products. The Company closely monitors the collectability of outstanding accounts receivable and provide an allowance for doubtful accounts based on estimated collections of outstanding amounts. There was $428 and $0 outstanding accounts receivable as of August 31, 2018 and 2017, respectively.  

F-10
Table of Contents

GRIDIRON BIONUTRIENTS, INC.

Notes to Financial Statements

August 31, 2018

Recently Issued Accounting PronouncementsStandards

 

In August 2014,2018, the FASB issued ASUSEC adopted the final rule under SEC Release No. 2014-15, “Presentation33-10532, “Disclosure Update and Simplification,” amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of Financial Statements – Going Concern (Subtopic 205-40): Disclosurestockholders’ equity for interim financial statements. Under the amendments, an analysis of Uncertainties about an Entity’s Abilitychanges in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. This analysis should present a reconciliation of the beginning balance to Continue asthe ending balance of each period for which a Going Concern” (“ASU 2014-15”). ASU 2014-15, whichstatement of comprehensive income is required to be filed. This final rule is effective for annual reporting periods ending after December 15, 2016, extends the responsibility for performing the going-concern assessment to management and contains guidance on how to perform a going-concern assessment and when going-concern disclosures would be required under U.S. GAAP.as of November 5, 2018. The Company does not anticipate thatexpect the adoption of ASU 2014-15 willthis final rule to have a material impact on itsthe financial statements.

 

In June 2014,2018, the FinancialFASB issued ASU 2018-07, “Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-10,” which expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from non-employees. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company elected to early-adopt this standard in the current period; the adoption of this standard did not impact the financial statements.

 

In November 2016, the FASB issued ASU 2016-18, Development Stage EntitiesStatement of Cash Flows (Topic 915)230): EliminationRestricted Cash,” which provides amendments to current guidance to address the classifications and presentation of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidancechanges in Topic 810, Consolidation,” (“ASU 2014-10”). ASU 2014-10 removesrestricted cash in the definitionstatement of cash flows. The effective date for the standard is for fiscal years beginning after December 15, 2017. The Company adopted the standard effective January 1, 2018; the adoption of this standard did not have a development stage entity from the ASC, thereby removingmaterial impact on the financial reporting distinction between development stage entitiesstatements.

In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” The amendments in this update will require recognition of current and deferred income taxes resulting from an intra-entity transfer of an asset other reporting entities from GAAP. In addition, ASU 2014-10 eliminatesthan inventory when the requirements for development stage entities to (1) present inception-to-date information in the statements of operations, cash flows, and stockholders’ equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. ASU 2014-10transfer occurs. This update is effective for annual reportingand interim periods beginning after December 15, 2014, and2017. The Company adopted the standard effective January 1, 2018; the adoption of this standard did not have a material impact on the consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326)” which introduces new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. For trade receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The guidance is effective for fiscal years beginning after December 31, 2019, including interim periods therein.within those years. Early application of the guidance is permitted for all entities for fiscal years beginning after December 15, 2018, including the interim periods within those fiscal years. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company does not expect the adoption of this final rule to have a material impact on the financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which supersedes the guidance in ASC 840, “Leases.” The purpose of the new standard is to improve transparency and comparability related to the accounting and reporting of leasing arrangements. The guidance will require balance sheet recognition for assets and liabilities associated with rights and obligations created by leases with terms greater than twelve months. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Although the standard initially required the modified retrospective approach for adoption, in July 2018, the FASB issued ASU 2018-18, allowing companies to initially apply the new lease requirements at the effective date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Early adoption is permitted. The Company has electeddoes not expect the adoption of this final rule to adopt ASU 2014-10 effective with this registration statementhave a material impact on Form S-1 and its adoption resulted in the removal of previously required development stage disclosures.financial statements.

 

In May 2014, the FASB issued ASU 2014-09, “Revenue from Contracts with Customers (Topic 606),” which amends the guidance in ASC 605, “Revenue Recognition.” The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company will adopt this standard on September 1, 2018 using the full retrospective method restating each prior reporting period presented in future filings. The Company has substantially completed its analysis of the impact of adoption and has concluded the adoption of ASC 606 will not have a significant impact on the Company’s financial statements.  

F-11
 

Table of Contents

 

MY CLOUDZ,GRIDIRON BIONUTRIENTS, INC.

NOTES TO FINANCIAL STATEMENTS (UNAUDITED)Notes to Financial Statements

February 28, 2015August 31, 2018


 

NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)Trademark

 

Recent Accounting Pronouncements (continued)During the period ended August 31, 2017, a related party incurred total costs of $2,800 to acquire a trademark on behalf of the Company. Trademark costs are capitalized as incurred to the extent the Company expects the costs incurred to result in a trademark being awarded. Trademarks are reviewed for impairment loss considerations annually. As of August 31, 2018 and 2017, the Company had trademarks totaling $2,800 and recorded impairment losses of $0 for the periods then ended. Trademarks amortized over the expected useful lives when issued. Amortization expense from trademarks are included in general and administrative expenses and totaled $0 for the periods ended August 31, 2018 and August 31, 2017, respectively.

NOTE 3 – GOING CONCERN

The Company’s financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company had a net loss of $975,523 and $13,476 for the periods ended August 31, 2018 and August 31, 2017. The Company has working capital of $171,139 and an accumulated deficit of $993,191 as of August 31, 2018. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

The Company has implemented all new accounting pronouncements that are in effectplenty of cash balance available for payment of ongoing operating expenses, has experienced losses from operations since inception, and that may impact its financial statements andit does not believe that there are any other new accounting pronouncements that have been issued that might have a material impactsource of revenue sufficient to cover its operating costs. Its continued existence is dependent upon its ability to continue to execute its operating plan and to obtain additional debt or equity financing. There can be no assurance the necessary debt or equity financing will be available, or will be available on its financial position or results of operations.terms acceptable to the Company. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

NOTE 3 – CAPITAL STOCK

TheManagement plans to fund operations through additional debt and equity financing. Debt instruments may be convertible or non-convertible and will vary based on the Company’s capitalization is 200,000,000 common shares with a par value of $0.001 per share. No preferred shares have been authorized or issued.

As of February 28, 2015, the Company has not granted any stockneeds and financing options and has not recorded any stock-based compensation.

On November 10, 2014, the Company issued 5,000,000 common sharesavailable at $0.001 per share to the sole director and President of the Company for cash proceeds of $5,000.such times.

 

NOTE 4 – RELATED PARTY TRANSACTIONS

During the period of July 20, 2017 (inception) to August 31, 2017, a company director paid a total of $2,800 towards obtaining trademarks, $13,276 towards operating and start up costs and $25 to open the Company bank account. The advances are non-interest bearing and due on demand and as such is included in current liabilities. There was $0 and $16,101 due as of August 31, 2018 and 2017, respectively.

During the year ended August 31, 2018, the company assumed a related party payable totaling $75,907 through the acquisition and reverse merger as discussed in Note 1 – Organization and Description of Business. The payable was forgiven during the year ended August 31, 2018 resulting in a write off to additional paid in capital of $75,907.

NOTE 5 – STOCKHOLDERS’ EQUITY

Preferred Stock

 

AsOn July 16, 2018, the Board of February 28, 2015,Directors and one (1) stockholder adopted and approved a resolution to effect an amendment to our Articles of Incorporation to authorize the Company’s outstanding related party advances balance is $13,677. The amounts duecreation of 5,000,000 shares, designated as our Preferred Stock. On July 16, 2018, the Company filed a Certificate of Amendment to its Articles of Incorporation creating 5,000,000 shares of preferred stock.

On July 30, 2018, the related party are non-interest bearing, unsecured, expectedBoard of Directors of the Company authorized the designation of 9,000,000 shares of Series A Preferred Stock. On July 31, 2018, the Company filed a Certificate of Designation with the Secretary of State of the State of Nevada, creating 900,000 shares of Series A Preferred Stock.

On August 1, 2018, the Board of Directors and one (1) stockholder adopted and approved a resolution to be repaid and consideredeffect an amendment to our Articles of Incorporation to authorize the creation of 25,000,000 shares, designated as our Preferred Stock. On August 1, 2018, the Company filed a current liability.Certificate of Amendment to its Articles of Incorporation creating 25,000,000 shares of preferred stock.  

F-12
Table of Contents

GRIDIRON BIONUTRIENTS, INC.

Notes to Financial Statements

August 31, 2018

NOTE 5 – STOCKHOLDERS’ EQUITY (CONTUNUED)

 

NOTE 5 – INCOME TAXESPreferred Stock (continued)

 

Income taxesThe preferred stock accrues dividends at a rate of 5% annually, are provided in accordance with ASC 740 Income Taxes. A deferred tax asset or liabilityconvertible to common stock at a rate of $0.125 per share at the option of the holder. Further, the preferred stock is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Deferred tax expense (benefit) results fromredeemable by the net changeCompany at a premium during the year of deferred tax assetfirst 180 days after issuance and liabilities.another premium after the 180th day from issuance.

 

Deferred tax assets are reduced byDuring the year ended August 31, 2018, the Company issued a valuation allowance when, in the opiniontotal of management, it is more likely than not that some portion or all8,480,000 of the deferred tax assets will not be realized. Deferred tax assetspreferred stock and liabilities are adjusted8,480,000 of warrants for the effectstotal cash proceeds of changes in tax laws and rates on the date of enactment.$1,006,000.

 

No provision was made for Federal Income tax.There were 8,480,000 and 0 preferred shares issued and outstanding as of August 31, 2018 and August 31, 2017, respectively.

Common Stock

 

The Company is authorized to issue up to 200,000,000 shares of $0.001 par value common stock. During the period ended August 31, 2017, the Company issued a total of 200,000 common shares to the members of its board of directors for services valued at $0.001 per share for a total of $200. During the year ended August 31, 2018, the Company issued a total of 70,000,000 common shares to complete its acquisition and reverse merger as discussed in Note 1 – Organization and Description of Business. There were 132,637,500 and 62,637,500 common shares issued and outstanding as of August 31, 2018 and August 31, 2017, respectively.

Common Stock Subscribed

During the year ended August 31, 2018, the Company accepted four separate common stock subscriptions representing a total of 228,571 common shares for total cash proceeds of $160,000.

NOTE 6 – INCOME TAXES

We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. TheWhen it is more likely than not that a tax asset cannot be realized through future income the Company must allow for this future tax benefit.  We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carry forwards,carryforwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carry forwardcarryforward period.

The Company has not taken a tax position that, if challenged, would have a material effect on the financial statements for the years ended August 31, 2018 and 2017 or during the prior three years applicable under FASB ASC 740. We did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of accumulated deficit on the consolidated balance sheet. All tax returns for the Company remain open.

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences for the periods presented are as follows:

 

 

2017

 

 

2018

 

Income tax provision at the federal statutory rate

 

 

35%

 

 

21%

Effect on operating losses

 

 

(35%)

 

 

(21%)

 

 

 

 

 

 

 

-

 

F-13

Table of Contents

GRIDIRON BIONUTRIENTS, INC.

Notes to Financial Statements

August 31, 2018

NOTE 6 – INCOME TAXES (CONTINUED)

The net deferred tax assets consist of the following:

 

 

August 31,

 

 

 

2018

 

 

2017

 

Net operating loss carry forward

 

$993,192

 

 

$13,476

 

Valuation allowance

 

 

(993,192)

 

 

(13,476)

Net deferred tax asset

 

$-

 

 

$-

 

A reconciliation of income taxes computed at the statutory rate is as follows:

 

 

August 31,

 

 

 

2018

 

 

2017

 

Tax at statutory rate

 

$

204,860

 

 

$4,717

 

Increase in valuation allowance

 

 

(204,860

)

 

 

(4,717)

Net deferred tax asset

 

$-

 

 

$-

 

NOTE 7 – COMMITMENTS AND CONTINGENCIES

The Company could become a party to various legal actions arising in the ordinary course of business. Matters that are probable of unfavorable outcomes to the Company and which can be reasonably estimated are accrued. Such accruals are based on information known about the matters, the Company’s estimates of the outcomes of such matters and its experience in contesting, litigating and settling similar matters. As of the date of this report, there are no pending legal proceedings to which the Company is a party or of which any of their property is the subject, nor are there any such proceedings known to be contemplated by governmental authorities.

NOTE 8 – WARRANTS AND DERIVATIVE LIABILITY

As discussed in Note 5 – Stockholders’ Equity (Deficit), the Company issued a total of 8,480,000 warrants to purchase common stock as part of its preferred stock offering. The warrants are exercisable for a period of three years at $0.165 per share. Additionally, the warrant holder is entitled to a cashless exercise after six months from issuance in which the holder is entitled to receive a number of shares equal to: [A] the number of outstanding warrant shares under the original issuance multiplied by [B] the greater of the trailing five day volume weighted average price less [A] the number of outstanding warrant shares under the original issuance multiplied by [C] the exercise price of the warrant under the original issuance divided by [D] the lesser of the arithmetic average of the volume weighted average price during the five trailing trading days or the volume weighted average price for the trading day immediately prior to the cashless exercise election. For clarity, the resulting formula is [(A x B) – (A x C)] / D.

The Company analyzed the conversion features of the cashless exercise feature in the warrants issued for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that the embedded features should be classified as a derivative liability because the exercise price of these warrants are subject to a variable rate. The Company has determined that warrants are not considered to be solely indexed to the Company’s own stock and is therefore not afforded equity treatment. In accordance with ASC 815, the Company has recorded a derivative liability. 

F-14
Table of Contents

GRIDIRON BIONUTRIENTS, INC.

Notes to Financial Statements

August 31, 2018

NOTE 8 – WARRANTS AND DERIVATIVE LIABILITY (CONTINUED)

Upon issuance, the Company valued the derivative using a Black-Scholes model yielding a total value of $674,012 which was expensed during the year ended August 31, 2018. The Company used the following assumptions upon initial measurement: value per common share of $0.09, a remaining life of 3.0 years, an exercise price of $0.165, a risk free rate of 2.77% and volatility of 195%.

The Company revalued the derivative liability as of August 31, 2018 and recorded a gain of $136,123 on the change in fair value of derivative liabilities for the year then ended. The Company used the following assumptions upon initial measurement: value per common share of $0.07, a remaining life of 2.92 years, an exercise price of $0.165, a risk free rate of 2.70 and volatility of 192%.

As of August 31, 2018 and 2017, the Company had derivative liabilities totaling $537,889 and $0, respectively.

The following table summarizes all stock option activity for the year ended August 31, 2018:

 

 

Warrants

 

 

Weighted-

Average

Exercise

Price

Per Share

 

Outstanding, August 31, 2017

 

 

-

 

 

$-

 

Granted

 

 

8,480,000

 

 

 

0.165

 

Exercised

 

 

-

 

 

 

-

 

Forfeited

 

 

-

 

 

 

-

 

Expired

 

 

-

 

 

 

-

 

Outstanding, August 31, 2018

 

 

8,480,000

 

 

$0.165

 

The following table discloses information regarding outstanding and exercisable options at August 31, 2018:

 

 

 

Outstanding

 

 

Exercisable

 

Exercise Prices

 

 

Number of Option Shares

 

 

Weighted Average Exercise Price

 

 

Weighted Average

Remaining Life

(Years)

 

 

Number of Option Shares

 

 

Weighted Average Exercise Price

 

$

0.165

 

 

$8,480,000

 

 

$0.165

 

 

 

2.92

 

 

 

8,480,000

 

 

$0.165

 

 

 

 

 

 

8,480,000

 

 

$0.165

 

 

 

2.92

 

 

 

8,480,000

 

 

$0.165

 

 

NOTE 69 – SUBSEQUENT EVENTS

 

ManagementThe Company has secured a lease through the Timothy Orr the President in Carson City, Nevada on October 12, 2018. The amount of rent that will be paid is $3,000 a month. The lease is a short term lease until January 15, 2019 after which it will become a month to month lease if both parties agree.

The Company has evaluated subsequentall other events upoccurring subsequently to and including April 13, 2015 which is the date thethese financial statements were made available for issuancethrough December 14, 2018 and determined there are no reportable subsequent events.none to disclose.

F-15

 

Table of Contents

MY CLOUDZ, INC.

 

FINANCIAL STATEMENTS

(Audited)

August 31, 2014

REPORT OF INDEPENDENT REGISTERED ACCOUNTING FIRM FOR THE YEAR ENDED AUGUST 31, 2014

F-9

BALANCE SHEET

F-10

STATEMENT OF OPERATIONS

F-11

STATEMENT OF STOCKHOLDERS' DEFICIT

F-12

STATEMENT OF CASH FLOWS

F-13

NOTES TO FINANCIAL STATEMENTS

F-14




REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors

My Cloudz, Inc.

Carson City, NV

We have audited the accompanying balance sheet of My Cloudz, Inc. (the "Company") as of August 31, 2014, and the related statements of operations, change in stockholders’ deficit and cash flow for the period from July 31, 2014 (Inception) to August 31, 2014. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit 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. The Company was not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the Company as of August 31, 2014, and the results of its operation and its cash flow for the year then ended, in conformity with accounting principles generally accepted in the United States of America.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has had no revenues and income since inception. These conditions, among others, raise substantial doubt about the Company’s ability to continue as a going concern. Management's plans concerning these matters are also described in Note 1, which includes the raising of additional equity financing or merger with another entity. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/Anton & Chia, LLP

Newport Beach, CA

April 13, 2015


MY CLOUDZ, INC.

BALANCE SHEET

  August 31,
2014
 
   

ASSETS

   

CURRENT ASSETS

  

Cash

 

$

2,643

 
    

TOTAL ASSETS

 

$

2,643

 
    

LIABILITIES AND STOCKHOLDERS’ DEFICIT

    

CURRENT LIABILITIES

    

Account payables

 

$

1,250

 

Due to related party (Note 4)

 

$

4,960

 
    

TOTAL LIABILITIES

  

6,210

 
    
    

STOCKHOLDERS’ DEFICIT

    

Capital stock (Note 3)

    

Authorized 200,000,000 shares of common stock, $0.001 par value, Issued and outstanding nil shares of common stock

  

-

 
    

Accumulated Deficit

 

(3,567

)

    

TOTAL STOCKHOLDERS’ DEFICIT

 

(3,567

)

    

TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$

2,643

 

Going Concern (Note 1)

GRIDIRON BIONUTRIENTS, INC.

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

November 30,

2018

 

 

August 31,

2018

 

 

 

(unaudited)

 

 

(audited)

 

ASSETS

Current assets

 

 

 

 

 

 

Cash

 

$246,622

 

 

$774,468

 

Accounts receivable

 

 

428

 

 

 

428

 

Inventory

 

 

318,492

 

 

 

53,110

 

Prepaid expense

 

 

30,000

 

 

 

30,000

 

Total current assets

 

 

595,542

 

 

 

858,006

 

 

 

 

 

 

 

 

 

 

Equipment, net of accumulated depreciation of $785 and $530, respectively

 

 

4,659

 

 

 

1,937

 

Trademarks

 

 

2,800

 

 

 

2,800

 

 

 

 

 

 

 

 

 

 

Total assets

 

$603,001

 

 

$862,743

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expenses

 

$27,266

 

 

$95,287

 

Derivative liability

 

 

437,576

 

 

 

537,889

 

Note payable, current portion

 

 

49,500

 

 

 

49,500

 

Dividends payable

 

 

16,767

 

 

 

4,192

 

Total current liabilities

 

 

531,109

 

 

 

686,868

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Stockholders' deficit

 

 

 

 

 

 

 

 

Common stock subscribed

 

 

160,000

 

 

 

160,000

 

Preferred stock, $0.001 par value; 25,000,000 shares authorized; 8,480,000 and 8,480,000 issued and outstanding as of November 30, 2018 and August 31, 2018, respectively

 

 

8,480

 

 

 

8,480

 

Common stock, $0.001 par value; 200,000,000 shares authorized; 132,637,500 and 132,637,500 shares issued and outstanding as of November 30, 2018 and August 31, 2018, respectively

 

 

132,638

 

 

 

132,638

 

Additional paid in capital

 

 

867,949

 

 

 

867,949

 

Accumulated deficit

 

 

(1,097,175)

 

 

(993,192)

Total stockholders' deficit

 

 

71,892

 

 

 

175,875

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' deficit

 

$603,001

 

 

$862,743

 

 

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

 

F-16
 

Table of Contents

  

MY CLOUDZ, INC.

GRIDIRON BIONUTRIENTS, INC.

UNAUDITED CONDENSED STATEMENTS OF OPERATIONS

 

 

 

 

 

 

 

 

Three Months

Ended

November 30,

2018

 

 

Three Months

Ended

November 30,

2017

 

Revenues

 

$1,128

 

 

$5,140

 

Cost of revenues

 

 

30,063

 

 

 

3,983

 

Net margin

 

 

(28,935)

 

 

1,157

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

General and administrative

 

 

50,702

 

 

 

15,054

 

Insurance

 

 

38,749

 

 

 

-

 

Professional fees

 

 

73,212

 

 

 

8,765

 

Total operating expenses

 

 

162,663

 

 

 

23,819

 

 

 

 

 

 

 

 

 

 

Net loss from operations

 

 

(191,598)

 

 

(22,662)

 

 

 

 

 

 

 

 

 

Other expense

 

 

 

 

 

 

 

 

Interest expense

 

 

123

 

 

 

105

 

Gain on change in fair value of derivative liability

 

 

(100,313)

 

 

-

 

Total other expense

 

 

(100,190)

 

 

105

 

 

 

 

 

 

 

 

 

 

Net loss

 

$(91,408)

 

$(22,767)

 

 

 

 

 

 

 

 

 

Net loss per common share, basic and diluted

 

$(0.00)

 

$(0.00)

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding, basic and diluted

 

 

132,637,500

 

 

 

102,644,407

 

STATEMENT OF OPERATION

  Results of operations from inception (July 31, 2014) to August 31, 2014 
   

REVENUE

 

$

-

 
    

EXPENSES

    

Office and general

 

$

2,317

 

Professional fees

  

1,250

 
    

TOTAL EXPENSES

 

(3,567

)

    

NET LOSS

 

(3,567

)

    

BASIC NET LOSS PER COMMON SHARE

 

$

(0.00

)

    

WEIGHTED AVERAGE NUMBER OF BASIC COMMON SHARES OUTSTANDING

  

0

 

 

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

 

F-17
 

Table of Contents

   

MY CLOUDZ, INC.

GRIDIRON BIONUTRIENTS, INC.

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common

 

 

 

 

 

 

 

 

 

Preferred Stock

 

 

Common Stock

 

 

Additional

Paid in

 

 

 Stock

To be

 

 

Retained

 

 

 

 

 

 

Number

 

 

Amount

 

 

Number

 

 

Amount

 

 

Capital

 

 

Issued

 

 

Earnings

 

 

Total

 

Balance, August 31, 2017

 

 

-

 

 

 

-

 

 

 

62,637,500

 

 

 

62,638

 

 

 

(62,438)

 

 

-

 

 

 

(13,476)

 

 

(13,276)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of preferred stock for cash

 

 

8,480,000

 

 

 

8,480

 

 

 

-

 

 

 

-

 

 

 

997,520

 

 

 

-

 

 

 

-

 

 

 

1,006,000

 

Issuance of common stock for reverse merger

 

 

-

 

 

 

-

 

 

 

70,000,000

 

 

 

70,000

 

 

 

(143,040)

 

 

-

 

 

 

-

 

 

 

(73,040)

Common stock subscribed for cash

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

160,000

 

 

 

-

 

 

 

160,000

 

Forgiveness of related party payable

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

75,907

 

 

 

-

 

 

 

-

 

 

 

75,907

 

Dividends on preferred stock accrued

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(4,192)

 

 

(4,192)

Net loss, period ended August 31, 2018

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(975,524)

 

 

(975,524)

Balance, August 31, 2018

 

 

8,480,000

 

 

$8,480

 

 

 

132,637,500

 

 

$132,638

 

 

$867,949

 

 

$160,000

 

 

$(993,192)

 

$175,875

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends on preferred stock accrued

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(12,575)

 

 

(12,575)

Net loss, period ended November 30, 2018

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(91,408)

 

 

(91,408)

Balance, November 30, 2018

 

 

8,480,000

 

 

$8,480

 

 

 

132,637,500

 

 

$132,638

 

 

$867,949

 

 

$160,000

 

 

$(1,097,175)

 

$71,892

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

STATEMENT OF STOCKHOLDERS’ DEFICIT

FOR THE PERIOD FROM JULY 31, 2014 (INCEPTION) TO AUGUST 31, 2014

 Common Stock  Accumulated   

 

 Shares  Amount  Deficit  Total 
         
         

Net loss for the year ended August 31, 2014

 

-

  

-

  

(3,567

)

 

(3,567

)

               

Balance, August 31, 2014

  

-

  

$

-

  

$

(3,567

)

 

$

(3,567

)

 

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

  

F-18
 

Table of Contents

 

MY CLOUDZ, INC.

STATEMENT OF CASH FLOW

GRIDIRON BIONUTRIENTS, INC.

 

UNAUDITED CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

 

THREE MONTHS ENDED NOVEMBER 30, 2018 AND NOVEMBER 30, 2017

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

Net loss

 

$(91,408)

 

$(22,767)

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

 

 

 

 

 

 

 

 

Depreciation

 

 

255

 

 

 

-

 

Gain on change in fair value of derivative liability

 

 

(100,313)

 

 

-

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

Prepaid expense

 

 

-

 

 

 

(10,193)

Inventory

 

 

(265,382)

 

 

-

 

Accounts payable and accrued expenses

 

 

(68,021)

 

 

355

 

Related party payable

 

 

-

 

 

 

8,608

 

Net cash used in operating activities

 

 

(524,869)

 

 

(23,997)

 

 

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

Purchase of equipment

 

 

(2,977)

 

 

-

 

Net cash used in investing activities

 

 

(2,977)

 

 

-

 

 

 

 

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

 

 

 

Proceeds from notes payable

 

 

-

 

 

 

10,000

 

Proceeds from sale of common stock

 

 

-

 

 

 

60,000

 

Cash acquired in reverse acquisition

 

 

-

 

 

 

3,972

 

Net cash provided by financing activities

 

 

-

 

 

 

73,972

 

 

 

 

 

 

 

 

 

 

Cash, beginning of period

 

 

774,468

 

 

 

25

 

Net change in cash

 

 

(527,846)

 

 

49,975

 

Cash, end of period

 

$246,622

 

 

$50,000

 

 

 

 

 

 

 

 

 

 

Supplemental cash flow information

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

$-

 

 

$-

 

Cash paid for interest

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of non-cash investing activities

 

 

 

 

 

 

 

 

Preferred stock dividends declared

 

$12,575

 

 

$-

 

Accounts payable and accrued expenses assumed in reverse merger

 

$-

 

 

$1,104

 

Related party payable assumed in reverse merger

 

$-

 

 

$75,907

 

 

  From July 31, 2014 (Inception) to August 31,
2014
 
   

OPERATING ACTIVITIES

  

Net loss for the period

 

$

(3,567

)

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

    

Changes in operating assets and liabilities:

    

Decrease in Accounts payables

  

1,250

 
    

NET CASH (USED IN) OPERATING ACTIVITIES

 

(2,317

)

FINANCING ACTIVITIES

    

Proceeds from related parties

  

4,960

 
    

NET CASH PROVIDED BY FINANCING ACTIVITIES

  

4,960

 
    

NET INCREASE IN CASH

  

2,643

 
    

CASH, BEGINNING

  

-

 
    

CASH, ENDING

 

$

2,643

 
    

SUPPLEMENTAL CASH FLOW INFORMATION AND NONCASH FINANCING ACTIVITIES;

    
   

Cash paid during the period for:

   

Interest

 

$

-

 

Income taxes

 

$

-

 

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

 

F-19
 

Table of Contents

 

MY CLOUDZ,GRIDIRON BIONUTRIENTS, INC.

NOTES TO FINANCIAL STATEMENTSNotes to Unaudited Condensed Consolidated Financial Statements

August 31, 2014November 30, 2018


 

NOTE 1 – NATUREORGANIZATION AND DESCRIPTION OF OPERATIONS AND BASIS OF PRESENTATIONBUSINESS

 

MY CLOUDZ, INC.Gridiron BioNutrients, Inc. (the “Company” or “Gridiron”) was incorporated informed under the Statelaws of the state of Nevada on July 20, 2017 to develop and distribute a retail line of health water infused with probiotics and minerals. The Company has elected an August 31st year end.

Acquisition and Reverse Merger

On October 10, 2017, the Company completed a reverse merger with My Cloudz, Inc. (“My Cloudz”) pursuant to which the Company merged into My Cloudz on October 10, 2017. Under the terms of the merger, the Company shareholders received 70,000,000 common shares of My Cloudz common stock such that the Company shareholders received approximately 57% of the total common shares issued and outstanding following the merger. Due to the nominal assets and limited operations of My Cloudz prior to the merger, the transaction was accorded reverse recapitalization accounting treatment under the provision of Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) 805 whereby the Company became the accounting acquirer (legal acquiree) and My Cloudz was treated as the accounting acquiree (legal acquirer). The historical financial records of the Company are those of the accounting acquirer (GridIron) adjusted to reflect the legal capital of the accounting acquiree (My Cloudz). As the transaction was treated as a for-profitrecapitalization, no intangibles, including goodwill, were recognized. Concurrent with the effective date of the reverse recapitalization transaction, the Company on July 31, 2014 and established aadopted the fiscal year end of the accounting acquirer of August 31. The Company intends to market and sell its planned secure online data storage through its intended website. The Company’s planned principal operations have not fully commenced. Organizational and offering costs are, and will be, expensed as and when they are incurred.

 

Management plans to seek funding from its shareholdersAt the date of acquisition, My Cloudz had $3,972 of cash, $1,105 of accounts payable and other qualified investors to pursue its business plan.a related party payable of $75,907. Book values for all assets acquired and liabilities assumed equaled fair values as of the date of acquisition.

 

Going concernNOTE 2 – CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

To dateThe accompanying financial statements have been prepared by the Company has generated no revenues from its businesswithout audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and has incurred operating losses since inceptioncash flows as of $3,567. AsNovember 30, 2018 and November 30, 2017 and for all periods presented herein, have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s August 31, 2014,2018 financial statements. The results of operations for the Company has a working capital deficit of $3,567. The Company requires additional funding to meet its ongoing obligations and to fund anticipated operating losses. The abilityperiods ended November 30, 2018 are not necessarily indicative of the Company to continue as a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations. Accordingly, these factors raise substantial doubt as tooperating results for the Company’s ability to continue as a going concern. The Company intends to continue to fund its business by way of private placements and advances from related parties as may be required. As of August 31, 2014, the Company has funded initial expenses through advances from its president. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.full year.

 

NOTE 23 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

 

BasisThis summary of Presentation

accounting policies for Gridiron is presented to assist in understanding the Company’s financial statements. The financial statements presentCompany uses the balance sheet, statementsaccrual basis of operation, stockholders’ deficitaccounting and cash flow of the Company. These financial statements are presentedaccounting principles generally accepted in the United States dollarsof America (“GAAP” accounting) and have been preparedconsistently applied in accordancethe preparation of the financial statements.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States.

Comprehensive Loss

“Reporting Comprehensive Income,” establishes standards for the reporting and display of comprehensive loss and its components in the financial statements. As of August 31, 2014, the Company has no items that represent a comprehensive loss and, therefore, has not included a schedule of comprehensive loss in the financial statements.

Use of Estimates and Assumptions

Preparation of the financial statements in conformity with generally accepted accounting principlesStates requires management to make estimates and assumptions that affect certainthe reported amounts of assets and liabilities and disclosure of contingent assets and liabilities atas of the date of the financial statements and the reported amounts of revenues and expenses during the period. Accordingly, actualstatements. Actual results could differ from those estimates. Estimates are used when accounting for fair value calculations related to embedded conversion features of outstanding convertible notes payable.

 

Cash

 

CashFor purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes. The Company had $246,622 and $774,468 of cash and cash equivalents includeas of November 30, 2018 or August 31, 2018. As of August 31, 2018, the Company held cash of $524,468 with one financial institution in excess of the FDIC insured limit of $250,000.

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GRIDIRON BIONUTRIENTS, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

November 30, 2018

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Revenue recognition

The Company follows ASC 606 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue upon the transfer of promised services to customers in amounts that reflect the consideration to which the Company expects to be entitled the transfer of services. The Company considers revenue earned when all the following criteria are met: (i) the contract with the customer has been identified, (ii) the performance obligations have been identified, (iii) the transaction price has been determined, (iv) the transaction price has been allocated to the performance obligations, and (v) the performance obligations have been satisfied. The Company primarily generates revenues through the sale of products through its website and at industry tradeshows.

Fair Value of Financial Instruments

Fair value of certain of the Company’s financial instruments including cash, prepaid expenses, accounts payable, accrued expenses, notes payable, and other accrued liabilities approximate cost because of their short maturities. The Company measures and reports fair value in accordance with ASC 820, “Fair Value Measurements and Disclosure” defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments.

Fair value, as defined in ASC 820, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset should reflect its highest and best use by market participants, principal (or most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the risk of nonperformance, which includes, among other things, the Company’s credit risk.

Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability, and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting measurement as follows:

Level 1: Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities.

Level 2: Quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability; and inputs that are derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities; and

Level 3: Unobservable inputs for the asset or liability that are supported by little or no market activity, and that are significant to the fair values.

Fair value measurements are required to be disclosed by the Level within the fair value hierarchy in which the fair value measurements in their entirety fall. Fair value measurements using significant unobservable inputs (in Level 3 measurements) are subject to expanded disclosure requirements including a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earning are reported in the statement of income.

As discussed in Note 7 – Warrants and Derivative Liability, the Company valued its derivative liability using Level 3 inputs as of November 30, 2018 and August 31, 2018. The Company did not identify any additional assets or liabilities that are required to be presented on handthe balance sheet at fair value in accordance with ASC 825-10 as of August 31, 2018 and August 31, 2017 respectively.

Income Taxes

Income taxes are accounted for under the assets and liability method. Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Use of net operating loss carry forwards for income tax purposes may be limited by Internal Revenue Code section 382 if a change of ownership occurs.

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GRIDIRON BIONUTRIENTS, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

November 30, 2018

Principals of Consolidation

The consolidated financial statements represent the results of Gridiron BioNutrients, Inc,; its wholly owned subsidiary, GridIron Ventures and the assets, processes, and results therefrom. All intercompany transactions and balances have been eliminated. All financial information has been prepared in conformity with accounting principles generally accepted in the United States of America.

Property and Equipment

Property and equipment are carried at cost. Expenditures for maintenance and repairs are expensed in the period incurred. Renewals and betterments that materially extend the life of the assets are capitalized. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is reflected in income for the period.

Depreciation is computed for financial statement purposes on deposita straight-line basis over estimated useful lives of the related assets and the modified accelerated cost recovery system for federal income tax purposes. The estimated useful lives of depreciable assets are:

Estimated Useful Lives

Computer Equipment

3 years

Vehicle

5 years

The Company’s property and equipment consisted of the following as of November 30, 2018 and August 31, 2018:

 

 

November 30,

2018

 

 

August 31,

2018

 

Computer Equipment

 

$2,467

 

 

$2,467

 

Vehicle

 

 

2,977

 

 

 

-

 

Accumulated depreciation

 

 

(785)

 

 

(530)

Net book value

 

$4,659

 

 

$1,937

 

Depreciation expense for the three months ended November 30, 2018 and November 30, 2017 was $255 and $0, respectively.

Inventories

Inventories consist primarily of raw materials, ready to sell product and packing materials and are stated at banking institutionsthe lower of cost or net realizable value using the first‑in, first‑out method. The Company periodically assesses the recoverability of its inventory and reduces the carrying value of the inventory when items are determined to be obsolete, defective or in excess of forecasted sales requirements. Inventory write‑downs for excess, defective and obsolete inventory are recorded as well as all highly liquid short-term investments with original maturitiesa cost of 90 days or less.revenue. The Company did not have cash equivalentsany write downs of inventory during the three months ended November 30, 2018. Inventory balances were $318,492 and $53,110 as of November 30, 2018 and August 31, 2014.2018, respectively.

 

Financial InstrumentsNotes Payable

 

All significant financial assets, financial liabilitiesAs of November 30, 2018 and equity instruments ofAugust 31, 2018, the Company are either recognized or disclosedhad two notes payable with a principal balance of $49,500 and $49,500, respectively, owed to two separate noteholders. Each note payable is unsecured with one bearing interest at 5% and the other at 0% respectively. As of November 30, 2018, the Company had an outstanding accrued interest balance of $599, which has been included in the financial statements together with other information relevant for making a reasonable assessment of future cash flows, interest rate riskconsolidated balance sheets under accounts payable and credit risk. Where practical the fair values of financial assets and financial liabilities have been determined and disclosed; otherwise only available information pertinent to fair value has been disclosed.accrued liabilities.

 

F-22
 

Table of Contents

MY CLOUDZ, INC.

NOTES TO FINANCIAL STATEMENTS

August 31, 2014


Loss per Common Share

 

The basic earningsGRIDIRON BIONUTRIENTS, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

November 30, 2018

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Basic Income (Loss) Per Share

Basic income (loss) per share is calculated by dividing the Company’s net income availableloss applicable to common shareholders by the weighted average number of common shares during the year. The dilutedperiod. Diluted earnings (loss) per share is calculated by dividing the Company’s net income (loss) available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. Diluted earnings (loss) per share areequity, as they would have been anti-dilutive. The conversion of preferred shares and warrants to common shares could potentially bring the same as basic earnings (loss) per share dueamount of common shares to a total of 183,746,071. The preferred conversion and warrants would account for 50,880,000 additional shares along with the lack of132,637,500 outstanding at November 30, 2018 plus an additional 228,571 that have not been issued yet. There were no potentially dilutive items inshares outstanding during the Company.periods ended November 30, 2018 and August 31, 2018 respectively.

 

Income TaxesDividends

As discussed in Note 5 – Stockholders Equity (Deficit), during the year ended August 31, 2018, the Company issued preferred stock which accrues dividends at a rate of 5% annually. There was $16,767 and $4,192 of dividends payable at November 30, 2018 and August 31, 2018, respectively.

Advertising Costs

The Company’s policy regarding advertising is to expense advertising when incurred. The Company incurred advertising costs totaling $0 during the three months ended November 30, 2018 and $0 during the period ended November 30, 2017.

Stock-Based Compensation

 

The Company accounts for equity instruments issued to parties other than employees for acquiring goods or services under guidance of subtopic 505-50 of the FASB Accounting Standards Codification (“Sub-topic 505-50”) and subtopic 718-20 for awards classified as equity to employees. There was $0 and $0 of stock-based compensation during the three months ended November 30, 2018 and period ended November 30, 2017.

Related Parties

The registrant follows subtopic 850-10 of the liabilityFASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

Pursuant to Section 850-10-20 the Related parties include (a) affiliates of the registrant; (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the registrant; (e) management of the registrant; (f) other parties with which the registrant may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) Other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized forestablishing the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax balances and tax loss carry-forwards. Deferred tax assets and liabilities are measured using enacted or substantially enacted tax rates expected to apply to the taxable incometerms from that used in the years in which those differences are expectedpreceding period; and (d) amounts due from or to be recovered or settled. The effect on deferred tax assets and liabilitiesrelated parties as of a change in tax rates is recognized in income in the period that includes the date of enactment or substantive enactment.each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

 

Recent
F-23
Table of Contents

GRIDIRON BIONUTRIENTS, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

November 30, 2018

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

Recently Issued Accounting PronouncementsStandards

 

In August 2014,2018, the FASB issued ASUSEC adopted the final rule under SEC Release No. 2014-15, “Presentation33-10532, ”Disclosure Update and Simplification,” amending certain disclosure requirements that were redundant, duplicative, overlapping, outdated or superseded. In addition, the amendments expanded the disclosure requirements on the analysis of Financial Statements – Going Concern (Subtopic 205-40): Disclosurestockholders’ equity for interim financial statements. Under the amendments, an analysis of Uncertainties about an Entity’s Abilitychanges in each caption of stockholders’ equity presented in the balance sheet must be provided in a note or separate statement. This analysis should present a reconciliation of the beginning balance to Continuethe ending balance of each period for which a statement of comprehensive income is required to be filed. This final rule was effective as a Going Concern” (“ASU 2014-15”). ASU 2014-15, which is effective for annual reporting periods ending after December 15, 2016, extends the responsibility for performing the going-concern assessment to management and contains guidance on how to perform a going-concern assessment and when going-concern disclosures would be required under U.S. GAAP.of November 5, 2018. The Company does not anticipate that the adoption of ASU 2014-15 willthis final rule did not have a material impact on itsthe financial statements.

 

In June 2014,2018, the FinancialFASB issued ASU 2018-07, ”Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting, Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-10,which expands the scope of Topic 718 to include all share-based payment transactions for acquiring goods and services from non-employees. This pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. The Company elected to early-adopt this standard in the current period; the adoption of this standard did not impact the financial statements.

 

“Development Stage EntitiesIn November 2016, the FASB issued ASU 2016-18, ”Statement of Cash Flows (Topic 915)230): EliminationRestricted Cash,” which provides amendments to current guidance to address the classifications and presentation of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidancechanges in Topic 810, Consolidation,” (“ASU 2014-10”). ASU 2014-10 removesrestricted cash in the definitionstatement of cash flows. The effective date for the standard is for fiscal years beginning after December 15, 2017. The Company adopted the standard effective January 1, 2018; the adoption of this standard did not have a development stage entity from the ASC, thereby removingmaterial impact on the financial reporting distinction between development stage entitiesstatements.

In October 2016, the FASB issued ASU 2016-16, “Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory.” The amendments in this update will require recognition of current and deferred income taxes resulting from an intra-entity transfer of an asset other reporting entities from GAAP. In addition, ASU 2014-10 eliminatesthan inventory when the requirements for development stage entities to (1) present inception-to-date information in the statements of operations, cash flows, and stockholders’ equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. ASU 2014-10transfer occurs. This update is effective for annual reportingand interim periods beginning after December 15, 2014, and2017. The Company adopted the standard effective January 1, 2018; the adoption of this standard did not have a material impact on the consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, ”Financial Instruments – Credit Losses (Topic 326)” which introduces new guidance for the accounting for credit losses on instruments within its scope. The new guidance introduces an approach based on expected losses to estimate credit losses on certain types of financial instruments. For trade receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. Credit losses relating to available-for-sale debt securities will also be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. The guidance is effective for fiscal years beginning after December 31, 2019, including interim periods therein.within those years. Early application of the guidance is permitted for all entities for fiscal years beginning after December 15, 2018, including the interim periods within those fiscal years. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company does not expect the adoption of this final rule to have a material impact on the financial statements.

In February 2016, the FASB issued ASU 2016-02, “Leases (Topic 842),” which supersedes the guidance in ASC 840, ”Leases.” The purpose of the new standard is to improve transparency and comparability related to the accounting and reporting of leasing arrangements. The guidance will require balance sheet recognition for assets and liabilities associated with rights and obligations created by leases with terms greater than twelve months. The guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those years. Although the standard initially required the modified retrospective approach for adoption, in July 2018, the FASB issued ASU 2018-18, allowing companies to initially apply the new lease requirements at the effective date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Early adoption is permitted. The Company does not expect the adoption of this final rule to have a material impact on the financial statements.

In May 2014, the FASB issued ASU 2014-09, ”Revenue from Contracts with Customers (Topic 606),” which amends the guidance in ASC 605, ”Revenue Recognition.” The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (modified retrospective method). The Company will adopt this standard on September 1, 2018 using the full retrospective method restating each prior reporting period presented in future filings. The Company has electedsubstantially completed its analysis of the impact of adoption and has concluded the adoption of ASC 606 will not have a significant impact on the Company’s financial statements.

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GRIDIRON BIONUTRIENTS, INC.

Notes to adopt ASU 2014-10 effective withUnaudited Condensed Consolidated Financial Statements

November 30, 2018

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

In February 2018, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2018-02, Income Statement Reporting, Comprehensive Income (Topic 220). Effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption of the amendments in this registration statement on Form S-1Update is permitted, including adoption in any interim period, (1) for public business entities for reporting periods for which financial statements have not yet been issued and its adoption resulted(2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the removalperiod of previously required development stageadoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The adoption of this guidance by the Company is not expected to have a material impact on our condensed financial statements and related disclosures.

Management believes recently issued accounting pronouncements will have no impact on the financial statements of the Company.

Accounts Receivable

Accounts receivable balances are established for amounts owed to the Company from its customers from the sale of products. The Company closely monitors the collectability of outstanding accounts receivable and provide an allowance for doubtful accounts based on estimated collections of outstanding amounts. There was $428 and $428 outstanding accounts receivable as of November 30, 2018 and August 31, 2018, respectively.

Trademark

During the period ended August 31, 2017, a related party incurred total costs of $2,800 to acquire a trademark on behalf of the Company. Trademark costs are capitalized as incurred to the extent the Company expects the costs incurred to result in a trademark being awarded. Trademarks are reviewed for impairment loss considerations annually. As of November 30, 2018 and August 31, 2018, the Company had trademarks totaling $2,800 and recorded impairment losses of $0 for the three months ended November 30, 2018 and November 30, 2017 respectively. Trademarks amortized over the expected useful lives when issued. Amortization expense from trademarks are included in general and administrative expenses and totaled $0 for the three months ended November 30, 2018 and November 30, 2017.

NOTE 4 – GOING CONCERN

The Company’s financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The Company had a net losses of $91,408 and $22,767 for the three months ended November 30, 2018 and November 30, 2017. The Company has working capital of $64,433 and an accumulated deficit of $1,097,175 as of November 30, 2018. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

The Company has implemented all new accounting pronouncements that are in effectplenty of cash balance available for payment of ongoing operating expenses, has experienced losses from operations since inception, and that may impact its financial statements andit does not believe that there are any other new accounting pronouncements that have been issued that might have a material impactsource of revenue sufficient to cover its operating costs. Its continued existence is dependent upon its ability to continue to execute its operating plan and to obtain additional debt or equity financing. There can be no assurance the necessary debt or equity financing will be available, or will be available on its financial position or results of operations.terms acceptable to the Company.

 

NOTE 3 – CAPITAL STOCK

TheManagement plans to fund operations through additional debt and equity financing. Debt instruments may be convertible or non-convertible and will vary based on the Company’s capitalization is 200,000,000 common shares with a par value of $0.001 per share. No preferred shares have been authorized or issued.

As of August 31, 2014, the Company has not granted any stockneeds and financing options and has not recorded any stock-based compensation.available at such times.


MY CLOUDZ, INC.

NOTES TO FINANCIAL STATEMENTS

August 31, 2014


 

NOTE 45 – RELATED PARTY TRANSACTIONS

During the period of July 20, 2017 (inception) to August 31, 2017, a company director paid a total of $2,800 towards obtaining trademarks, $13,276 towards operating and start up costs and $25 to open the Company bank account.

F-25
Table of Contents

GRIDIRON BIONUTRIENTS, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

November 30, 2018

NOTE 6 – STOCKHOLDERS’ EQUITY

Preferred Stock

 

AsOn July 16, 2018, the Board of Directors and one (1) stockholder adopted and approved a resolution to effect an amendment to our Articles of Incorporation to authorize the creation of 5,000,000 shares, designated as our Preferred Stock. On July 16, 2018, the Company filed a Certificate of Amendment to its Articles of Incorporation creating 5,000,000 shares of preferred stock.

On July 30, 2018, the Board of Directors of the Company authorized the designation of 9,000,000 shares of Series A Preferred Stock. On July 31, 2018, the Company filed a Certificate of Designation with the Secretary of State of the State of Nevada, creating 900,000 shares of Series A Preferred Stock.

On August 1, 2018, the Board of Directors and one (1) stockholder adopted and approved a resolution to effect an amendment to our Articles of Incorporation to authorize the creation of 25,000,000 shares, designated as our Preferred Stock. On August 1, 2018, the Company filed a Certificate of Amendment to its Articles of Incorporation creating 25,000,000 shares of preferred stock.

The preferred stock accrues dividends at a rate of 5% annually, are convertible to common stock at a rate of $0.125 per share at the option of the holder. Further, the preferred stock is redeemable by the Company at a premium during the first 180 days after issuance and another premium after the 180th day from issuance.

During the year ended August 31, 2014,2018, the Company has receivedissued a related party advancetotal of $4,960. The entire amount is non-interest bearing, unsecured, expected to be repaid8,480,000 of preferred stock and considered a current liability.8,480,000 of warrants for total cash proceeds of $1,006,000.

There were 8,480,000 and 0 preferred shares issued and outstanding as of November 30, 2018 and August 31, 2018, respectively.

  

NOTE 5 – INCOME TAXESCommon Stock

Income taxes are provided in accordance with ASC 740 Income Taxes. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Deferred tax expense (benefit) results from the net change during the year of deferred tax asset and liabilities.

Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

No provision was made for Federal Income tax.

 

The Company is authorized to issue up to 200,000,000 shares of $0.001 par value common stock. During the period ended August 31, 2017, the Company issued a total of 200,000 common shares to the members of its board of directors for services valued at $0.001 per share for a total of $200. During the year ended August 31, 2018, the Company issued a total of 70,000,000 common shares to complete its acquisition and reverse merger as discussed in Note 1 – Organization and Description of Business. There were 132,637,500 common shares issued and outstanding as of November 30, 2018 and August 31, 2018, respectively.

Common Stock Subscribed

During the year ended August 31, 2018, the Company accepted four separate common stock subscriptions representing a total of 228,571 common shares for total cash proceeds of $160,000.

NOTE 7 – INCOME TAXES

We did not provide any current or deferred U.S. federal income tax provision or benefit for any of the periods presented because we have experienced operating losses since inception. TheWhen it is more likely than not that a tax asset cannot be realized through future income the Company must allow for this future tax benefit. We provided a full valuation allowance on the net deferred tax asset, consisting of net operating loss carry forwards,carryforwards, because management has determined that it is more likely than not that we will not earn income sufficient to realize the deferred tax assets during the carry forwardcarryforward period.

The Company is not aware of any uncertain tax position that, if challenged, would have a material effect on the financial statements for the three months ended November 30, 2018 and November 30, 2017 or during the prior three years applicable under FASB ASC 740. We did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of accumulated deficit on the consolidated balance sheet. All tax returns for the Company remain open for examination.

F-26
Table of Contents

GRIDIRON BIONUTRIENTS, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

November 30, 2018

NOTE 7 – INCOME TAXES (CONTINUED)

The provision for income taxes differs from the amount computed by applying the statutory federal income tax rate to income before provision for income taxes. The sources and tax effects of the differences for the periods presented are as follows:

 

 

2018

 

 

2017

 

Income tax provision at the federal statutory rate

 

 

21%

 

 

35%

Effect on operating losses

 

(21

)% 

 

(35

)% 

 

 

 

-

 

 

 

-

 

The net deferred tax assets consist of the following:

 

 

November 30,

 

 

 

2018

 

 

2017

 

Net operating loss carry forward

 

$1,097,175

 

 

$36,243

 

Valuation allowance

 

 

(1,097,175)

 

 

(36,243)

Net deferred tax asset

 

$-

 

 

$-

 

A reconciliation of income taxes computed at the statutory rate is as follows:

 

 

November 30,

 

 

 

2018

 

 

2017

 

Tax at statutory rate

 

$19,196

 

 

$7,968

 

Increase in valuation allowance

 

 

(19,196)

 

 

(7,968)

Net deferred tax asset

 

$-

 

 

$-

 

NOTE 8 – COMMITMENTS AND CONTINGENCIES

The Company could become a party to various legal actions arising in the ordinary course of business. Matters that are probable of unfavorable outcomes to the Company and which can be reasonably estimated are accrued. Such accruals are based on information known about the matters, the Company’s estimates of the outcomes of such matters and its experience in contesting, litigating and settling similar matters. As of the date of this report, there are no pending legal proceedings to which the Company is a party or of which any of their property is the subject, nor are there any such proceedings known to be contemplated by governmental authorities.

NOTE 9 – WARRANTS AND DERIVATIVE LIABILITY

As discussed in Note 5 – Stockholders’ Equity (Deficit), the Company issued a total of 8,480,000 warrants to purchase common stock as part of its preferred stock offering. The warrants are exercisable for a period of three years at $0.165 per share. Additionally, the warrant holder is entitled to a cashless exercise after six months from issuance in which the holder is entitled to receive a number of shares equal to: [A] the number of outstanding warrant shares under the original issuance multiplied by [B] the greater of the trailing five day volume weighted average price less [A] the number of outstanding warrant shares under the original issuance multiplied by [C] the exercise price of the warrant under the original issuance divided by [D] the lesser of the arithmetic average of the volume weighted average price during the five trailing trading days or the volume weighted average price for the trading day immediately prior to the cashless exercise election. For clarity, the resulting formula is [(A x B) – (A x C)] / D.

The Company analyzed the conversion features of the cashless exercise feature in the warrants issued for derivative accounting consideration under ASC 815-15 “Derivatives and Hedging” and determined that the embedded features should be classified as a derivative liability because the exercise price of these warrants are subject to a variable rate. The Company has determined that warrants are not considered to be solely indexed to the Company’s own stock and is therefore not afforded equity treatment. In accordance with ASC 815, the Company has recorded a derivative liability.

F-27
Table of Contents

GRIDIRON BIONUTRIENTS, INC.

Notes to Unaudited Condensed Consolidated Financial Statements

November 30, 2018

NOTE 9 – WARRANTS AND DERIVATIVE LIABILITY (CONTINUED)

Upon issuance, the Company valued the derivative using a Black-Scholes model yielding a total value of $674,012 which was expensed during the year ended August 31, 2018. The Company used the following assumptions upon initial measurement: value per common share of $0.09, a remaining life of 3.0 years, an exercise price of $0.165, a risk free rate of 2.77% and volatility of 195%.

The Company revalued the derivative liability as of November 30, 2018 and recorded a gain of $100,313 on the change in fair value of derivative liabilities for the three months then ended. The Company used the following assumptions upon initial measurement: value per common share of $0.06, a remaining life of 2.67 years, an exercise price of $0.165, a risk free rate of 2.83 and volatility of 208%.

As of November 30, 2018 and August 31, 2018, the Company had derivative liabilities totaling $437,576 and $537,889, respectively.

The following table summarizes all stock warrant activity for the three months ended November 30, 2018:

 

 

Warrants

 

 

Weighted-

Average

Exercise

Price

Per Share

 

Outstanding, August 31, 2018

 

 

8,480,000

 

 

$0.165

 

Granted

 

 

-

 

 

 

-

 

Exercised

 

 

-

 

 

 

-

 

Forfeited

 

 

-

 

 

 

-

 

Expired

 

 

-

 

 

 

-

 

Outstanding, November 30, 2018

 

 

8,480,000

 

 

$0.165

 

The following table discloses information regarding outstanding and exercisable warrants at November 30, 2018:

 

 

 

Outstanding

 

 

Exercisable

 

Exercise Prices

 

 

Number of

Warrant

Shares

 

 

Weighted Average

Exercise

Price

 

 

Weighted Average

Remaining Life

(Years)

 

 

Number of

Warrant

Shares

 

 

Weighted Average

Exercise

Price

 

$

0.165

 

 

$8,480,000

 

 

$0.165

 

 

 

2.67

 

 

 

8,480,000

 

 

$0.165

 

 

 

 

 

 

8,480,000

 

 

$0.165

 

 

 

2.67

 

 

 

8,480,000

 

 

$0.165

 

 

NOTE 610 – SUBSEQUENT EVENTS

Subsequent to the period on November 10, 2014, the Company issued 5,000,000 common shares at $0.001 per share to the sole director and President of the Company for cash proceeds of $5,000.

Subsequent to the period in November 2014 the Company has received an additional related party funding of $8,717. The amounts due to the related party are expected to be repaid and considered a current liability.


MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This section of the Registration Statement includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our predictions.

Results of Operations

For the period from inception (July 31, 2014) through February 28, 2015, we had no revenue. Net cash used for expenses for this period totaled $9,041.

Capital Resources and Liquidity

Our auditors have issued a “going concern” opinion, meaning that there is substantial doubt if we can continue as an on-going business for the next twelve months unless we obtain additional capital. No substantial revenues are anticipated until we have completed the financing from this offering and implemented our plan of operations. With the exception of cash advances from our sole Officer and Director, our only source for cash at this time is investments by others in this offering. We must raise cash to implement our strategy and stay in business. The amount of the offering will likely allow us to operate for at least one year.

As of February 28, 2015, we had $7,230 in cash. As of the date of this registration statement, the current funds available to the Company will not be sufficient to fund the expenses related to this offering, continue maintaining a reporting status. The Company’s sole officer and director, Mr. Sommay Vongsa has indicated that he may be willing to provide a maximum of $30,000, required to fund the offering expenses and maintain the reporting status, in the form of a non-secured loan for the next twelve months as the expenses are incurred if no other proceeds are obtained by the Company. However, there is no contract or written agreement in place.

In the offering scenarios presented in the Section titled “Use of Proceeds” the Company feels that it will have sufficient funds to fund the expenses related to this offering however the Company may be unable to fully launch its planned business activities for the next twelve months unless 100% of the shares are sold. In the event that 25% of the shares are sold, for the next twelve months the Company plans to reduce its planned business activities to the introduction of a single feature in our software thereby minimizing the expenses for business travel, computer hardware, market research; logo design and software development. In the event that 50% of the shares are sold, for the next twelve months the Company will introduce two features to our soft ware thereby increasing its expenses for business travel, logo design; hard ware and software design as well as increasing marketing.. In the event that 75% of the shares are sold, for the next twelve months the Company will introduce three features to our software thereby increasing its expenses for business travel, hard ware, logo design; software design, server farm rentals.

In the event that 100% of the shares are sold, for the next twelve months the Company believes it have sufficient funds to fully launch its planned business activities. During the third phase of our Plan of Operations, the Company believes it will generate sales. We expect that revenue will be generated within 300 days following the closing of this offering. Our auditors have issued a “going concern” opinion, meaning that there is substantial doubt if we can continue as an on-going business for the next twelve months unless we obtain additional capital. No substantial revenues are anticipated until we have completed the financing from this offering and implemented our Plan of Operations. With the exception of cash advances from our sole Officer and Director, our only source for cash at this time is investments by others in this offering. We must raise cash to implement our strategy and stay in business. The amount of the offering will likely allow us to operate for at least one year.


We do not anticipate researching and releasing any further features to our software; nor do we foresee the purchase or sale of any significant equipment. We also do not expect any significant additions to the number of employees.

Off-balance sheet arrangements

Other than the above described situation, the company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect or change on the company’s financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors. The term “off-balance sheet arrangement” generally means any transaction, agreement or other contractual arrangement to which an entity unconsolidated with the company is a party, under which the company has (i) any obligation arising under a guarantee contract, derivative instrument or variable interest; or (ii) a retained or contingent interest in assets transferred to such entity or similar arrangement that serves as credit, liquidity or market risk support for such assets.

CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUTING AND FINANCIAL DISCLOSURE

There have been no changes in or disagreements with accountants regarding our accounting, financial disclosures or any other matter.

DIRECTORS AND EXECUTIVE OFFICERS

Identification of directors and executive officers

The name, address, age and position of our present sole officer and director is set forth below:

Name

Age

Position(s)

Sommay Vongsa

22

President, Secretary, Treasurer, and Director.

The person named above has held his offices/positions since inception of our company and is expected to hold his offices/positions at least until the next annual meeting of our stockholders.

Business Experience: Mr. Vongsa is a citizen of Laos and attended high school in Champassak, Laos. From 2009 to 2013 Mr. Vongsa worked as a Service Manager at a popular restaurant in Laos. From 2013 to the present Mr. Vongsa serves as an Estate Manager and Executive Assistant for a prominent Thai businessman. Mr. Vongsa is very tech savvy, with a self-taught understanding of the Internet and its workings along with an understanding of social media and its marketing potential.

 

The Company feels that Mr. Vongsa has the entrepreneurial driveevaluated all events occurring subsequently to these financial statements through January 17, 2019 and technical knowledgedetermined there are none to succeed in this business venture.disclose.

 

F-28
 

Director Independence

 

Our board of directors is currently composed of one member, Sommay Vongsa, who does not qualify as an independent director in accordance with the published listing requirements of the NASDAQ Global Market. The NASDAQ independence definition includes a series of objective tests, such as that the director is not, and has not been for at least three years, one of our employees and that neither the director, nor any of his family members has engaged in various types of business dealings with us. In addition, our board of directors has not made a subjective determination as to each director that no relationships exist which, in the opinion of our board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director, though such subjective determination is required by the NASDAQ rules. Had our board of directors made these determinations, our board of directors would have reviewed and discussed information provided by the directors and us with regard to each director’s business and personal activities and relationships as they may relate to us and our management.[OUTSIDE BACK COVER PAGE]

 

Conflicts of InterestPROSPECTUS

 

At the present time, the company does not foresee any direct conflict between Mr. Vongsa’ other business interests and his involvement in MCI.GRIDIRON BIONUTRIENTS, INC.

 

EXECUTIVE COMPENSATION17,362,400 SHARES OF

COMMON STOCK

MCI has made no provisions for paying cash or non-cash compensation to its sole officer and director. No salaries are being paid at the present time, and none will be paid unless and until our operations generate sufficient cash flows.

The table below summarizes all compensation awarded to, earned by, or paid to our named executive officer for all services rendered in all capacities to us for the period from inception through February 28, 2015.

SUMMARY COMPENSATION TABLE

 

Name and

principal position

 

Year

 Salary
($)
  Bonus
($)
  Stock Awards
($)
  Option Awards
($)
  Non-Equity Incentive Plan Compensation
($)
  Nonqualified Deferred Compensation Earnings
($)
  All Other Compensation
($)
  Total
($)
 

 

 

 

 

 

 

 

 

 

 

Sommay Vongsa
President

 

2014

2015

  

0

   

0

   

0

   

0

   

0

   

0

   

0

   

0

 

 

We have not paidauthorized any salariesdealer, salesperson or other person to give you written information other than this prospectus or to make representations as to matters not stated in this prospectus. You must not rely on unauthorized information. This prospectus is not an offer to sell these securities or a solicitation of your offer to buy the securities in any jurisdiction where that would not be permitted or legal. Neither the delivery of this prospectus nor any sales made hereunder after the date of this prospectus shall create an implication that the information contained herein nor the affairs of the Issuer have not changed since the inception of the Company. We do not anticipate beginning to pay salaries until we have adequate funds to do so. There are no other stock option plans, retirement, pension, or profit sharing plans for the benefit of our officer and director other than as described herein.date hereof.

 

Until ___________, 2019 (90 days after the date of this prospectus), all dealers that effect transactions in these shares of common stock may be required to deliver a prospectus. This is in addition to the dealer’s obligation to deliver a prospectus when acting as an underwriter and with respect to their unsold allotments or subscriptions.

THE DATE OF THIS PROSPECTUS IS ____________, 2019

 

37

Outstanding Equity Awards at Fiscal Year-End

The table below summarizes all unexercised options, stock that has not vested, and equity incentive plan awards for each named executive officer as of February 28, 2015

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END

OPTION AWARDS

STOCK AWARDS

Name

Number of Securities Underlying Unexercised Options (#) ExercisableNumber of Securities Underlying Unexercised Options (#) UnexercisableEquity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#)Option Exercise Price ($)Option Expiration DateNumber of Shares or Units of Stock That Have Not Vested (#)Market Value of Shares or Units of Stock That Have Not Vested ($)Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#)Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (#)

Sommay Vongsa

-

-

-

-

-

-

-

-

-

There were no grants of stock options since inception to the date of this Prospectus.

We do not have any long-term incentive plans that provide compensation intended to serve as incentive for performance.

The Board of Directors of the Company has not adopted a stock option plan. The company has no plans to adopt it but may choose to do so in the future. If such a plan is adopted, this may be administered by the board or a committee appointed by the board (the “Committee”). The committee would have the power to modify, extend or renew outstanding options and to authorize the grant of new options in substitution therefore, provided that any such action may not impair any rights under any option previously granted. MCI may develop an incentive based stock option plan for its officers and directors and may reserve up to 10% of its outstanding shares of common stock for that purpose.

Stock Awards Plan

The company has not adopted a Stock Awards Plan, but may do so in the future. The terms of any such plan have not been determined.

 

Table of Contents

Director Compensation

 

The table below summarizes all compensation awarded to, earned by, or paid to our directors for all services rendered in all capacities to us for the period from inception (July 31, 2014) through February 28, 2015.

DIRECTOR COMPENSATION

 

Name

 Fees Earned or Paid in Cash
($)
  Stock Awards
($)
  Option Awards
($)
  Non-Equity Incentive Plan Compensation
($)
  Non-Qualified Deferred Compensation Earnings
($)
  All Other Compensation
($)
  

Total

($)

 

 

 

 

 

 

 

 

 

Sommay Vongsa

  

0

   

0

   

0

   

0

   

0

   

0

   

0

 

At this time, MCI has not entered into any employment agreements with its sole officer and director. If there is sufficient cash flow available from our future operations, the company may enter into employment agreements with our sole officer and director or future key staff members.PART II - INFORMATION NOT REQUIRED IN PROSPECTUS

 

SECURITY OWNERSHIPOTHER EXPENSES OF CERTAIN BENEFICIAL OWNERSISSUANCE AND MANAGEMENTDISTRIBUTION

 

The following table sets forth asthe estimated expenses in connection with the issuance and distribution of the date of this prospectus, the total number of shares owned beneficially by our sole officer and director, and key employees, individually and as a group, and the present owners of 5% or more of our total outstanding shares. The table also reflects what this ownershipsecurities being registered hereby. All such expenses will be assuming completionborne by the Company; none shall be borne by any selling security holders.

Item

 

Amount ($)

 

SEC Registration Fee

 

$91.10

 

Accounting Fees

 

 

3,500.00

 

Printing Costs

 

 

1,000.00

 

Legal fees and expenses

 

 

15,000.00

 

TOTAL

 

$19,591.10

 

INDEMNIFICATION OF DIRECTORS AND OFFICERS

The Company’s Bylaws and Articles of the sale of all shares in this offering. The stockholder listed below has direct ownership of her shares and possesses sole voting and dispositive power with respectIncorporation provide that we shall, to the shares.

Title of Class

 

Name and Address

Beneficial
Owner [1]

 Amount and Nature of Beneficial
Owner
  Percent of
Class
  Percentage of Ownership Assuming all of the Shares are Sold  Percentage of Ownership Assuming 75% of the Shares are Sold  Percentage of Ownership Assuming 50% of the Shares are Sold  Percentage of Ownership Assuming 25% of the Shares are Sold 
               

Common Stock

 

Sommay
Vongsa [2]

  

5,000,000

   

100

%

  

55.56

%

  

62.5

%

  

71.43

%

  

83.33

%

                           
  

All Officers and Directors as a
Group (1 person)

  

5,000,000

   

100

%

  

55.56

%

  

62.5

%

  

71.43

%

  

83.33

%

______________

[1]

The person named above may be deemed to be a “parent” and “promoter” of our company, within the meaning of such terms under the Securities Act of 1933, as amended, by virtue of his direct and indirect stock holdings. Mr. Vongsa is the only “promoter” of our company.

[2]

Beneficial ownership is determined in accordance with the Rule 13d-3(d)(1) of the Exchange Act, as amended and generally includes voting or investment power with respect to securities. Pursuant to the rules and regulations of the Securities and Exchange Commission, shares of common stock that an individual or group has a right to acquire within 60 days pursuant to the exercise of options or warrants are deemed to be outstanding for the purposes of computing the percentage ownership of such individual or group and includes shares that could be obtained by the named individual within the next 60 days.


Our sole officer and director will continue to own the majority of our common stock after the offering, regardless of the number of shares sold. Since he will continue to control the Company after the offering, investors will be unable to change the course of the operations. Thus, the shares we are offering lack the value normally attributable to voting rights. This could result in a reduction in value of the shares you own because of their ineffective voting power. None of our common stock is subject to outstanding options, warrants, or securities convertible into common stock.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

On November 10, 2014, we issued a total of 5,000,000 shares of common stock to Mr. Sommay Vongsa, our sole officer and director, for total cash consideration of $5,000. The Company considered these securities as “Founders” shares. Mr. Sommay Vongsa purchased his shares at par value being $0.001 per share, considerably lower than the $0.05 cents per share in this offering. This offer and sale was made pursuant to the exemption from registration afforded by Rule 903(b)(3) of the Regulation S, promulgated under the Securities Act of 1933, as amended (the “Securities Act”), on the basis that the securities were sold outside of US, to a non-US person, with no directed selling efforts in the US, and where offering restrictions were implemented.

Our sole officer and director provides office space at no charge to the Company. As of February 28, 2015, Mr. Vongsa has paid expenses on behalf of the Company in the amount of $13,677. The amount due to Mr. Vongsa is unsecured, non-interest bearing, payable on demand with no written terms of repayment.

DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES ACT LIABILITIES

Our director and officer is indemnified as providedfull extent permitted by the Nevada Statutes and our Bylaws. We have agreedGeneral Business Corporation Law, as amended from time to time (the “Nevada Corporate Law”), indemnify eachall of our directors and certain officersofficers. Section 78.7502 of the Nevada Corporate Law provides in part that a corporation shall have the power to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding (other than an action by or in the right of the corporation) by reason of the fact that such person is or was a director, officer, employee or agent of another corporation or other enterprise, against certain liabilities, including liabilities underexpenses (including attorneys’ fees), judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with such action, suit or proceeding if he acted in good faith and in a manner he reasonably believed to be in or not opposed to the Securities Actbest interests of 1933.the corporation, and with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful.

Similar indemnity is authorized for such persons against expenses (including attorneys’ fees) actually and reasonably incurred in defense or settlement of any threatened, pending or completed action or suit by or in the right of the corporation, if such person acted in good faith and in a manner he reasonably believed to be in or not opposed to the best interests of the corporation, and provided further that (unless a court of competent jurisdiction otherwise provides) such person shall not have been adjudged liable to the corporation. Any such indemnification may be made only as authorized in each specific case upon a determination by the stockholders or disinterested directors that indemnification is proper because the indemnitee has met the applicable standard of conduct. Under our Bylaws and Articles of Incorporation, the indemnitee is presumed to be entitled to indemnification and we have the burden of proof to overcome that presumption. Where an officer or a director is successful on the merits or otherwise in the defense of any action referred to above, we must indemnify him against the expenses which such offer or director actually or reasonably incurred. Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to our directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, described above, or otherwise, we havethe registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than ourthe payment by the registrant of expenses incurred or paid by oura director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, wethe registrant will, unless in the opinion of ourits counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

 

We have been advised that in the opinion of the Securities and Exchange Commission indemnification for liabilities arising under the Securities Act is against public policy as expressed in the Securities Act, and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities is asserted by one of our directors, officers, or controlling persons in connection with the securities being registered, we will, unless in the opinion of our legal counsel the matter has been settled by controlling precedent, submit the question of whether such indemnification is against public policy to a court of appropriate jurisdiction. We will then be governed by the court’s decision.

 

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PART II—INFORMATION NOT REQUIRED IN PROSPECTUS

 

Other Expenses of Issuance and DistributionRECENT SALES OF UNREGISTERED SECURITIES

 

Independently of whether or not all shares are sold, the estimated expenses of the offering, all of which are to be paid by the company, are as follows:

Legal and Accounting/Filing Fee

 

$

8,000

 

Printing

 

$

400

 

Transfer Agent

 

$

3,000

 

TOTAL

 

$

11,400

 

Indemnification of Directors and Officers

Our bylaws do not contain a provision entitling any director or executive officer to indemnification against its liabilityOctober 9, 2017, under the Securities Act. The Nevada Revised Statutes allow a company to indemnify our officers, directors, employees, and agents from any threatened, pending, or completed action, suit, or proceeding, whether civil, criminal, administrative, or investigative, except under certain circumstances. Indemnification may only occur if a determination has been made that the officer, director, employee, or agent acted in good faith and in a manner, which such person believed to be in the best interests of the Registrant. A determination may be made by the stockholders; by a majority of the directors who were not parties to the action, suit, or proceeding confirmed by opinion of independent legal counsel; or by opinion of independent legal counsel in the event a quorum of directors who were not a party to such action, suit, or proceeding does not exist.

Provided the terms and conditions of these provisions under Nevada law are met, officers, directors, employees,the Share Exchange Agreement, the Company offered, sold and agents of the Registrant may be indemnified against any cost, loss, or expense arising out of any liability under the Securities Act. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the Registrant, we have been advised that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy and is, therefore, unenforceable.

Recent Sales of Unregistered Securities

MCI is authorized to issue up to 200,000,000issued 70,000,000 shares of common stock with a par valuein consideration for all the issued and outstanding shares in GridIron Ventures. The effect of $0.001. The company is not listed for trading on any securities exchange in the United Statesissuance was that the three GridIron Ventures shareholders held approximately 57.0% of the issued and there has been no active market in the United States or elsewhere for the common shares.

Since inception, the Company has sold the following securities, which were not registered under the Securities Act of 1933, as amended:

On November 10, 2014 we issued 5,000,000outstanding shares of common stock to Sommay Vongsa, our sole officer and director, for total consideration of $5,000 ($0.001 per share).the Company, giving effect the Share Exchange Agreement. The offer and saleoffering was made pursuant to the exemption from registration afforded by Rule 903(b)(3) of the Regulation S, promulgatedSection 4(2) under the Securities Act, and Rule 506 of 1933, as amended (the “Securities Act”)Regulation D, promulgated thereunder

On July 6, 2017, the Company offered and sold 2,500,000 shares of common stock to Timothy Orr, our President and director, for the performance of services to the Company.

On June 1, 2017, the Company offered and sold 3,750,000 shares of common stock to 10 purchasers, at a purchaser price of $0.001 per share, for aggregate proceeds of $3,750. The offering was made offshore of the U.S., onto non-U.S. persons, with no directed selling efforts in the basis thatU.S., and where offering restrictions were implemented, in a transaction pursuant to the securities wereexclusion from registration provided by Rule 903(b)(3) of Regulation S, promulgated pursuant to the Securities Act.

On January 25, 2018, the Company offered and sold outside250,000 shares of US,common stock to one purchaser, at a purchaser price of $0.004 per share, for aggregate proceeds of $1,000. The offering was made offshore of the U.S., to a non-USnon-U.S. person, with no directed selling efforts in the US,U.S., and where offering restrictions were implemented.implemented, in a transaction pursuant to the exclusion from registration provided by Rule 903(b)(3) of Regulation S, promulgated pursuant to the Securities Act.

 

On May 29, 2017, pursuant to a Subscription Agreement, the Company offered and sold 2,500,000 shares of common stock to Thomas Puzzo, in exchange of providing legal services to the Company. The offering was made pursuant to the exemption from registration afforded by Section 4(2) under the Securities Act, and Rule 506 of Regulation D, promulgated thereunder

 

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We have spent a portion of the above proceeds to pay for costs associated with this prospectus and expect the balance of the proceeds to be mainly applied to further costs of this prospectus and administrative costs.

 

We shall report the use of proceeds on our first periodic reportEXHIBITS AND FINANCIAL STATEMENT SCHEDULES

The following exhibits are filed pursuant to sections 13(a) and 15(d) of the Exchange Act after the effective dateas part of this Registration Statement and thereafter on each of our subsequent periodic reports through the later of disclosure of the application of all the offering proceeds, or disclosure of the termination of this offering.

Exhibits and Financial Statement Schedulesregistration statement:

 

Exhibit No.Number

Document Description

3(i)2.1

ArticlesShare Exchange Agreement, dated November 4, 2016, by and among the GridIron BioNutrients, Inc., Stony Hill Ventures Corp., a Nevada corporation, and the holders of Incorporationcommon stock of Stony Hill Ventures Corp. (3)

3(ii)3.1.1

By-lawsArticles of Incorporation (1)

53.1.2

Opinion re: legalityCertificate of Amendment (3)

10.43.1.3

SubscriptionCertificate of Change (3)

3.1.4

Certificate of Amendment (4)

3.2

Bylaws (2)

5.1

Opinion of Law Offices of Thomas E. Puzzo, PLLC, regarding the legality of the securities being registered

10.1

Common Stock Purchase Agreement, dated October 15, 2018, by and between GridIron BioNutrients, Inc. and Cavalry Fund, LP, a Delaware limited partnership. (5)

10.2

Registration Rights Agreement, dated October 15, 2018, by and between GridIron BioNutrients, Inc. and Cavalry Fund, LP, a Delaware limited partnership. (5)

10.3

Letter Agreement, dated October 15, 2018, by and between GridIron BioNutrients, Inc. and , LLC, a Delaware limited liability company. (5)

23.1

Consent ofFruci & Associates II, PLLC

23.2

Consent of Certified Public AccountantsLaw Offices of Thomas E. Puzzo, PLLC (contained in Exhibit 5.1)

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

______________

(1)

Incorporated by reference to the Registrant’s Registration Statement on Form S-1 (File No. 333-197443), filed with the Securities and Exchange Commission on July 16, 2014.

(2)

Incorporated by reference to the Registrant’s Registration Statement on Amendment No. 1 to Form S-1 (File No. 333-197443), filed with the Securities and Exchange Commission on October 16, 2014.

(3)

Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-52223), filed with the Securities and Exchange Commission on November 10, 2016.

(4)

Incorporated by reference to the Registrant’s Current Report on Form 8-K (File No. 000-52223), filed with the Securities and Exchange Commission on April 13, 2018.

(5)

Incorporated by reference to the Registrant's Current Report on Form 8-K (File No. 000-52223), filed with the Securities and Exchange Commission on October 19, 2018.

 

Undertakings* XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

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UNDERTAKINGS

 

The undersigned Registrant hereby undertakes:

 

1.(1)

To file, during any period in which it offers or sellssales of securities are being made, a post-effective amendment to this Registration Statementregistration statement to:

 

(a)

include(i)

Include any Prospectusprospectus required by Section 10(a)(3) of the Securities Act of 1933;

 

(b)(ii)

To reflect in the Prospectusprospectus any facts or events arising after the effective date of the registration statement (or the most recent post-effective amendment thereof) which, individually or together,in the aggregate, represent a fundamental change in the information set forth in this Registration Statement; and notwithstanding the forgoing,registration statement. Notwithstanding the foregoing, any increase or decreaseindecrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high-endhigh end of the estimated maximum offering range may be reflected in the form of Prospectusprospectus filed with the commissionCommission pursuant to Rule 424(b) (§230.424(b) of this chapter) if, in the aggregate, the changes in the volume and price represent no more than a 20% change in the maximum aggregate offering price set forth in the "Calculation“Calculation of Registration Fee"Fee” table in the effective Registration Statement; and

(c)

include any additional or changed material information on the plan of distribution.registration statement.

 


(iii)

To include any material information with respect to the plan of distribution not previously disclosed in the registration statement or any material change to such information in the registration statement;

 

2.(2)

That, for the purpose of determining any liability under the Securities Act of 1933, each such post-effective amendment shall be deemed to be a new registration statement relating to the securities offered herein,therein, and the offering of such securities at that time shall be deemed to be the initial bonafidebona fide offering thereof.

 

3.(3)

To remove from registration by means of a post-effective amendment any of the securities being registered hereby which remainuns oldremain unsold at the termination of the offering.

 

4.(4)

That, for the purpose of determining our liability under the Securities Act of 1933 to any purchaser:

(i)

If the registrant is subject to Rule 430C, each prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

(5)

That, for the purpose of determining liability of the registrant under the Securities Act of 1933 to any purchaser in the initial distribution of the securities, we undertakesecurities: The undersigned registrant undertakes that in a primary offering of our securities of the undersigned registrant pursuant to this Registration Statement,registration statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities are offered or sold to such purchaser by means of any of the following communications, wethe undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:

 

(i)

anyAny preliminary Prospectusprospectus or Prospectus that we fileprospectus of the undersigned registrant relating to the offering required to be filed pursuanttoRule 424 (Section 230.424 of this chapter);pursuant to Rule 424;

 

(a)(ii)

(ii)               anyAny free writing Prospectusprospectus relating to the offering prepared by or on our behalf of the undersigned registrant or used or referred to by us;the undersigned registrant;

 

(iii)

(b)

(iii)              theThe portion of any other free writing Prospectusprospectus relating to the offering containing material information about usthe undersigned registrant or our securities provided by or on behalf of us;the undersigned registrant; and

 

(iv)

(c)

(iv)             anyAny other communication that is an offer in the offering made by usthe undersigned registrant to the purchaser.

Each Prospectus filed pursuant to Rule 424(b) as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than Prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or Prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or Prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or Prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

 

Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the “Act”) may be permitted to our directors, officers and controlling persons pursuant to the provisions above, or otherwise, we have been advised that in the opinion of the Securities and Exchange CommissionSEC such indemnification is against public policy as expressed in the Securities Act, and is, therefore, unenforceable.

 

In the event that a claim for indemnification against such liabilities, other than the payment by us of expenses incurred or paid by one of our Directors,directors, officers, or controlling persons in the successful defense of any action, suit or proceeding, is asserted by one of our Directors,directors, officers, or controlling persons in connection with the securities being registered, we will, unless in the opinion of itsour counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification is against public policy as expressed in the Securities Act, and we will be governed by the final adjudication of such issue.

 

 

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SIGNATURES

 

Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized in the City of Nongprue, Banglamung Thailand,Henderson, Nevada on this 13th day of April, 2015.March 4, 2019.

 

My Cloudz, Inc.GRIDIRON BIONUTRIENTS, INC.

(Registrant)

Date: April 13, 2015

By:

/s/ Sommay VongsaTimothy Orr

Sommay VongsaName:

Timothy Orr

Title:

President, Secretary, Treasurer and Director Principal Executive Officerdirector

Principal Financial Officer Principal Accounting Officer

(principal executive officer, principal financial officer, and principal accounting officer)

 

PursuantPOWER OF ATTORNEY

KNOW ALL PERSONS BY THESE PRESENTS, that each person whose signature appears below constitutes and appoints Timothy Orr, as his true and lawful attorney-in-fact and agent with full power of substitution and resubstitution, for him and in his name, place and stead, in any and all capacities, to sign any or all amendments (including post-effective amendments) to this Registration Statement on Form S-1 of GridIron BioNutrients, Inc., and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, grant unto said attorney-in-fact and agent, full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the foregoing, as fully to all intents and purposes as he might or could do in person, hereby ratifying and confirming all that said attorney-in-fact and agent, or his substitutes, may lawfully do or cause to be done by virtue hereof.

In accordance with the requirements of the Securities Act of 1933, this registration statement has beenwas signed by the following persons in the capacities and on the dates indicated:stated.

 

Date: April 13, 2015Dated: March 4, 2019

By:

/s/ Sommay VongsaTimothy Orr

Sommay VongsaName:

Timothy Orr

Title:

President, Secretary, Treasurer and Director Principal Executive Officerdirector (principal executive officer, principal financial officer, and principal accounting officer)

Principal Financial Officer Principal Accounting Officer

 

 


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