Securities Act File No. 333-221327


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549



FORM S-1S-1/A


Amendment No. 6


REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

Registration Statement Under the Securities Act of 1933
Pre-effective Amendment No. 6
Post-effective Amendment No.


Arazu IncorporatedARAZU INCORPORATED

(Exact nameName of registrantRegistrant as specifiedSpecified in its charter)Charter)


The Office, 23 Barton Road, Market Bosworth


Warwickshire, England CV13 0LQ U.K.

Florida

 

3714

 

464994535

(State of Incorporation)

 

(Primary Standard Industrial

 

(IRS Employer

 

 

Classification Number)

 

Identification Number)


(Address of Principal Executive Offices)

01455-290363

(Registrant’s Telephone Number, Including Area Code)

Mr. Paul Clewlow, Chief Executive Officer

Arazu Incorporated

The Office,

23 Barton Road,

Market Bosworth

Warwickshire, England CV13 0LQ U.K.

U.K. Telephone 01455-290363(Name and Address of Agent for Service)


Copies to:

 (Address, including zip code, and telephone number, including area code,

John D. Thomas, Esq.

John D. Thomas, P.C.

11650 South State Street, Suite 240

Draper, UT 84020

Telephone: (801) 816-2536

Facsimile: (801) 816-2537

Approximate Date of registrant's principal executive offices)


Incorp Services, Inc.

17888 67th Court

North Loxahatchee, Florida 33470

(Address, including zip code, and telephone number,

including area code, of agent for service)


All Communications to:

Brenda Hamilton, Esquire

Hamilton & Associates Law Group, P.A.

101 Plaza Real Suite 202 N

Boca Raton, Florida 33432

Telephone No. (561) 416-8956

Facsimile No.: (561) 416-2855

http://www.securitieslawyer101.com


(Address, including zip code, and telephone, including area code)


Approximate date of proposed sale to the public:Proposed Public Offering:As soon as practicable and from time to time after the effective date of this Registration Statement.


If any of the securities being registered on this Formform are to be offered on a delayed or continuous basis pursuant toin reliance on Rule 415 under the Securities Act of 1933, other than securities offered in connection with a dividend reinvestment plan, check the following 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. [  ]




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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“large accelerated filer," "accelerated filer"” “accelerated filer” and "smaller“smaller reporting company"company” in Rule 12b-2 of the Exchange Act. (Check one):


Large accelerated filer

Large Accelerated Filer [ ] Accelerated Filer [ ] Non-Accelerated Filer [ ] Smaller reporting company [X]

[  ]

Accelerated filer

[  ]

Non-accelerated filer

[  ]

Smaller reporting company

[X]

(Do not check if a smaller reporting company)

 


CALCULATION OF REGISTRATION FEE UNDER THE SECURITIES ACT OF 1933




Title of Securities Being Registered
 Amount Being Registered(1)

Proposed Maximum
Aggregate

Offering Price(2)

 

 

Amount of

Registration Fee(3)

      
  Common stock ($0.0001 par value) 11,209,000$560,450.00 $64.96


Title of Each Class of Securities to be Registered

  

 Amount of

shares of common

stock to be registered(1)

(2) 

  

Proposed

Maximum Offering

Price Per Share(3)

  

  

Proposed Maximum Aggregate

Offering

Price

  

  

Amount of

Registration

Fee(4)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Common Stock, par value $0.0001 per share

  

  

4,460,000

  

  

$

.25

  

  

$

1,115,000

  

  

$

143.61

  


(1)

Represents 4,460,00011,209,000 shares of our common stock being registered for resale on behalf of the selling shareholders named in this registration statement.


(2)

In accordance with Rule 416(a), this registration statement shall also cover an indeterminate number of shares that may be issued and resold resulting from stock splits, stock dividends or similar transactions.


(2)

 

(3)

Until such time as our common shares are quoted on the OTC Bulletin Board, ourOur disclosing shareholders will sell their shares at the price of $.25$0.05 per share.share until the shares are quoted on the OTCQB marketplace or on the OTC Bulletin Board, and thereafter at prevailing market prices or privately negotiated prices.


 

(4)

(3)

Calculated under Section 6(b) of the Securities Act of 1933 as $.00012880$.0001245 of the aggregate offering price.


We hereby amend this registration statement on such date or dates as may be necessary to delay our effective date until the registrant shall file a further amendment which specifically states that this registration statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933 or until the registration statement shall become effective on such date as the Commission, acting pursuant to Section 8(a) may determine.




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PRELIMINARY PROSPECTUS SUBJECT TO COMPLETION DATED MAY __, 20142018


The information in this prospectus is not complete and may be changed. These securities may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.


PRELIMINARY PROSPECTUSSUBJECT TO COMPLETION, MAY __, 2018 

Arazu Incorporated11,209,000 Shares of Common Stock

4,460,000 Common Shares


ARAZU INCORPORATED

Selling shareholders areThe 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 offering up to 4,460,000sell these securities and it is not a solicitation of an offering to buy these securities in any state where the offering or sale of such securities is not permitted.

This prospectus relates to the resale of shares of Common stock of Arazu Incorporated (hereafter, “we” “us” “our”, “Arazu” or the “Company”) by certain holders of common stock.  The selling shareholders will offer their shares (“Holders”) of the Company, at $.25a price of $0.05 per share until our shares of common stock are quoted on the OTCQB Market Place or on the OTC Bulletin Board, and assuming we secure this qualification, thereafter at prevailing market prices or privately negotiated prices. We will not receive any of the proceeds from the sale of the shares fromby the selling shareholders.holders.  


There are no underwriting commissions involved in this offering. We have agreed to pay all the costs of this offering. Selling shareholders will pay no offering expenses.


Prior to this offering, there has been no market for our securities. Our common stock is not now listed on any national securities exchange or the NASDAQ stock market, and is not eligible to trade on the OTCQB Marketplace or on the OTC Bulletin Board. There is no guarantee that our securities will ever trade on the OTCQB Marketplace or on the OTC Bulletin Board orBoard.  

 We are classified as a shell company as defined by Rule 405 of the Securities Act and are subject to additional regulatory requirements as a result of this status, including limitations on any listed exchange.our shareholders’ ability to re-sell their shares in our company, as well as additional disclosure requirements.


We are an “emerging"emerging growth company”company" as defined in the Jumpstart Our Business Startups Act of 2012 (“JOBS Act”("Jobs Act"), and will therefore be subject to reduced public company reporting requirements.


This offeringAn investment in our common stock is highly speculativesubject to many risks and these securitiesan investment in our shares will also involve a high degree of risk and should be considered only by persons who can afford the loss of their entire investment.risk. See “RiskRisk Factors” beginning on page 7.4 to read about factors you should consider before purchasing shares of our common stock.


 _______________________________________  

Neither the Securities and Exchange CommissionSEC nor any state securities commission has approved or disapproved of these securities, or passed upon the accuracy or adequacy of this prospectus. Any representation to the contrary is a criminal offense. The information in this prospectus is not complete and may be changed. This prospectus is included in the registration statement that was filed by us with the SEC. The selling stockholders may not sell these securities until the registration statement becomes effective. This prospectus is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer or sale is not permitted.  



The date of this prospectus is _______, 2014.May __, 2018  




 

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TABLE OF CONTENTS


The following table of contents has been designed to help you findYou should rely only on the information contained in this prospectus. We encourage you to read the entire prospectus.

     Page

Summary Information

5

Risk Factors

7

Use Of Proceeds

20

Determination Of Offering Price

20

Dilution

20

Selling Shareholders

21

Plan Of Distribution

25

Description of Securities

26

Interest Of Named Experts

28

Directors, Executive Officers, Promoters, And Control Persons

29

Security Ownership Of Certain Beneficial Owners And Management

30

Disclosure Of Commission Position On Indemnification For Securities Liabilities

32

Description Of Business

32

Management’s Discussion And Analysis Of Financial Condition And Results Of Operations

39

Certain Relationships And Related Transactions

43

Market For Common Equity And Related Stockholder Matters

44

Executive Compensation

46

Changes In And Disagreements With Accountants On Accounting And Financial Disclosure

48

Financial Statements

F-1



We have not authorized any other person to giveprovide you any supplementalwith different information. If anyone provides you with different or inconsistent information, or to make any representations for us. Youyou should not rely uponon it. The selling stockholders are not offering to sell these securities in any information about our company thatjurisdiction where such offering or sale is not contained in this prospectus. Information contained in this prospectus may become stale.permitted. You should not assume that the information containedappearing in this prospectus or any prospectus supplement is accurate only as of anythe date other than their respective dates, regardless ofon the time of deliveryfront cover of this prospectus, any prospectus supplement or of any sale of the shares.prospectus. Our business, financial condition, results of operations and prospects may have changed since that date.

TABLE OF CONTENTS

FORWARD-LOOKING STATEMENTS AND PROJECTIONS1
PROSPECTUS SUMMARY2
RISK FACTORS4
SELLING STOCKHOLDERS11
DETERMINATION OF OFFERING PRICE15
PLAN OF DISTRIBUTION16
LEGAL PROCEEDINGS18
DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, AND CONTROL PERSONS18
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS20
DESCRIPTION OF SECURITIES21
INTEREST OF NAMED EXPERTS23
DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES LIABILITIES23
DESCRIPTION OF BUSINESS24
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS30
FAIR VALUE OF FINANCIAL INSTRUMENTS34
PER SHARE INFORMATION34
STOCK OPTION GRANTS34
PROPERTIES34
CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS34
MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS35
EXECUTIVE COMPENSATION37
OUTSTANDINGEQUITY AWARDS AT FISCAL YEAR END APRIL 30, 201738
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE39
LEGALMATTERS39
EXPERTS39
ADDITIONAL INFORMATION39
PART C - OTHER INFORMATION40
PROSPECTUS54

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FORWARD-LOOKING STATEMENTS AND PROJECTIONS

All statements contained in this prospectus that are not historical facts, including statements regarding anticipated activity, are “forward-looking statements” within the meaning of the federal securities laws, involve a number of risks and uncertainties and are based on our beliefs and assumptions and information currently available to us. In some cases, you can identify forward-looking statements by words such as “may,” “will,” “should,” “expect,” “objective,” “plan,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “forecast,” “continue,” “strategy,” or “position” or the negative of such terms or other variations of them or by comparable terminology. In particular, statements, express or implied, concerning future actions, conditions or events, future operating results or the ability to generate sales, income or cash flow are forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those dates. The selling stockholders are offeringexpressed or forecasted in the forward-looking statements, including:

·The level of competition in the aftermarket motorcycle parts industry;

·Our ability to obtain additional capital to finance development, manufacturing and production of products either currently being developed or that we may hereafter acquire;

·Our reliance upon management and particularly Paul Clewlow, our Chief Executive Officer, to execute our business plan;

·The price of our common stock; and

·The risks, uncertainties and other factors we identify in “Risk Factors” and elsewhere in this prospectus and in our filings with the SEC.

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Table of Contents

PROSPECTUS SUMMARY

This summary highlights some of the information in this prospectus. It is not complete and may not contain all of the information that you may want to sell,consider. You should read carefully the more detailed information set forth under “Risk Factors” and seeking offersthe other information included in this prospectus. Except where the context suggests otherwise, the terms “we,” “us,” “our,” “Arazu” and the “Company” refer to buy, sharesArazu Incorporated. We refer in this prospectus to our executive officers and other members of our common stock only in jurisdictions where offers and sales are permitted.management team, collectively, as “Management.”




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SUMMARY INFORMATION


You should carefully read all information in the prospectus, including the financial statements and their explanatory notes, under the Financial Statements prior to making an investment decision.


Company Organization


Arazu Incorporated, (“us”, “we” or “our”) is a Florida corporation, was formed on March 3, 2014, by our sole officer and director, Paul Clewlow, to market and distribute motorcycle parts in the U.S. for ExactRep Limited, a designer and creator of aftermarket motorcycle parts located in the United Kingdom. We sell ExactRep parts and accessories designed to make aesthetic modifications for motorcycle enthusiasts seeking to customize their bikes.


Our principal executivebusiness office and mailing address is located atThe Office, 23 Barton Road, Market Bosworth, Warwickshire, England CV13 0LQ. Our0LQ U.K., and our telephone number is +44 01455-290363. Our corporate website is located at www.arazuinc.com and is not part of this prospectus.


Business


Our operations to date have been:been devoted primarily to start-up and development activities, which include: (i) founding the company; (ii) developing our business plan; (iii) identifying our portfolio of motorcycle related aftermarket products; (iv) entering into an agreement with ExactRep Limited to become the exclusive distributor of their parts in the U.S.; and (v) creating the U.S. branding campaign for the ExactRep products we will sell.


From our inception on March 3, 2014, untilInitially, the Company’s sole executive officer Paul Clewlow who resides in the United Kingdom, will manage the Company’s day-to-day operations which initially will be primarily online. In addition, the Company will utilize the services of (4) part-time employees and various contractors who assist Mr. Clewlow in the United States and the United Kingdom.

During the fiscal years ending April 30, 20142017 and 2016, we have had limited operating activities. Since March 3, 2014, (inception) throughAlso during the fiscal years ending April 30, 2014,2017 and from March 3, 2014 (inception) to September 2, 2014,2016, we had revenues of $15,000$8,694 and $45,000$9,035, respectively. From inception toFor the fiscal years ended April 30, 2014,2017 and 2016, we havehad a net loss of $44,177.$147,934 and $127,631, respectively.

 

FromWe believe that our capital resources are insufficient for ongoing operations, with minimal current cash reserves, particularly given the resources necessary to expand our business. We will likely require considerable amounts of financing to make any significant advancement in our business strategy. There is presently no agreement in place that will guarantee financing for our Company, and we cannot assure you that we will be able to raise any additional funds, or that such funds will be available on acceptable terms. Funds raised through future equity financing will likely be substantially dilutive to current shareholders. Lack of additional funds will materially affect our Company and our business, and may cause us to substantially curtail or even cease operations. Consequently, you could incur a loss of your entire investment in the Company. Since inception, untilour monthly burn rate has been approximately $8,500 per month. Upon approval of this registration statement, and as we further implement our business plan, we estimate our burn rate will significantly increase to approximately $35,000 per month. The increase in our burn rate is expected to be due to increased regulatory compliance costs, and operations and marketing costs associated with the further implementation of our business plan. We estimate that without related party loans or sales of the Company’s securities to fund operations, existing cash and cash equivalents are insufficient to fund current operations beyond April 30, 2014, and from March 3, 2014 (inception) to September 2, 2014,2018.

Neither management nor our shareholders have had preliminary contact or discussions with, nor do we raised an aggregate of $10,000 and $57,500, respectively, from the sale of our common stock. We used the proceedshave any present plans, proposals, arrangements or understandings with, any representatives of the offering for working capital.owners of any business or company regarding the possibility of an acquisition or merger, change of control, or similar transaction.


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Emerging Growth Company


We are an emerging growth company under the JOBS Act. We shall continue to be deemed an emerging growth company until the earliest of:


·The last day of the fiscal year of the issuer during which it had total annual gross revenues of $1,000,000,000 (as such amount is indexed for inflation every 5 years by the Commission to reflect the change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics, setting the threshold to the nearest 1,000,000) or more;

the last day of the fiscal year of the issuer during which it had total annual gross revenues of $1,000,000,000 (as such amount is indexed for inflation every five (5) years by the Commission to reflect the change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics, setting the threshold to the nearest 1,000,000) or more;

·The last day of the fiscal year of the issuer following the fifth anniversary of the date of the first sale of common equity securities of the issuer pursuant to an effective IPO registration statement;


·The date on which such issuer has, during the previous 3-year period, issued more than $1,000,000,000 in non-convertible debt; or

the last day of the fiscal year of the issuer following the fifth anniversary of the date of the first sale of common equity securities of the issuer pursuant to an effective IPO registration statement;

·The date on which such issuer is deemed to be a ‘large accelerated filer’, as defined in section 240.12b-2 of title 17, Code of Federal Regulations, or any successor thereto.


the date on which such issuer has, during the previous three (3)-year period, issued more than $1,000,000,000 in non-convertible debt; or


the date on which such issuer is deemed to be a large accelerated filer, as defined in section 240.12b-2 of title 17, Code of Federal Regulations, or any successor thereto.




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As an emerging growth company we are exempt from Section 404(b) of Sarbanes Oxley. Section 404(a) requires issuersIssuers to publish information in their annual reports concerning the scope and adequacy of the internal control structure and procedures for financial reporting. This statement shall also assess the effectiveness of such internal controls and procedures. Section 404(b) requires that the registered accounting firm shall, in the same report, attest to and report on the assessment and the effectiveness of the internal control structure and procedures for financial reporting.


As an emerging growth company we are also exempt from Section 14A (a) and (b) of the Securities Exchange Act of 1934 which require the shareholder approval of executive compensation and golden parachutes. These exemptions are also available to us as a Smaller Reporting Company.


We have elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(2) of the JOBS Act, that allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.


The Offering


As of the date of this prospectus we had 20,370,00031,209,000 shares of common stock outstanding.


Selling shareholders are offering up to 4,460,00011,209,000 shares of common stock. TheOur selling shareholders will offersell their shares at $.25the price of $0.05 per share until the price of our shares areis quoted on the OTCQB marketplace or on the OTC Bulletin Board, and thereafter at prevailing market prices or privately negotiated prices.prices.


We will pay all expenses of registering the securities, estimated at approximately $40,000.$48,000. We will not receive any proceeds of the sale of these securities.


To be quoted on OTCQB marketplace or on the OTC Bulletin Board, a market maker must file an application on our behalf in order to make a market for our common stock. The current absence of a public market for our common stock may make it more difficult for you to sell shares of our common stock that you own.


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Financial Summary


The tables and information below are derived from our audited financial statements for the period from March 3, 2014 (Inception) tofiscal years ended April 30, 2014.2017 and 2016, and unaudited financial statements for the six months ended October 31, 2017 and 2016.  Our working capital as of April 30, 20142017 and 2016 was a deficit of $27,873$408,512 and $283,078, respectively. As of September 2, 2014,April 30, 2017 we had cash on hand of approximately $4,127.$157.

  

At

April 30, 2017

Audited

 

At

April 30, 2016

Audited

 

At

January 31, 2018

Unaudited

Financial Summary            
             
Cash $157  $348  $2,121 
             
Total Assets $157  $348  $2,121 
             
Total Liabilities $408,669  $283,426  $730,509 
             
Total Stockholders’ Equity (Deficit) $(408,512)  $(283,078)  $(728,388) 

  

Year Ended

April 30, 2017

Audited

 

Year Ended

April 30, 2016

Audited

 

Nine Months Ended

January 31, 2018

Unaudited

Statement of Operations      
       
Revenue $8,694  $9,035  $9,661 
             
Cost of Sales and Operating Expenses $150,825  $133,249  $400,192 
             
Net Loss for the Period $147,934  $127,631  $430,126 
             
Net Loss per Common Share $(0.01)  $(0.01)  $(0.01) 


Inception

(March 3, 2014) through April 30, 2014 Audited

Financial Summary

Cash

$50

Total Assets

$15,050

Total Liabilities

$42,923

Total Stockholders’ Equity (Deficit)

$(27,873)


Inception

(March 3, 2014), through April 30, 2014 Audited

Statement of Operations

Revenue

$15,000

Total Expenses

$59,177

Net Losses for the Period

$(44,177)


RISK FACTORS


In additionAn investment in our securities involves certain risks relating to our business and operations. You should carefully consider these risks, together with all of the other information providedincluded in this prospectus, before you should carefully considerdecide whether to purchase shares of our Company. If any of the following risk factors in evaluatingrisks actually occur, our business, before purchasing anyfinancial condition or results of operations could be materially adversely affected. If that happens, the trading price of our common stock.stock could decline and you may lose all or part of your investment.


Risks Related to Our Financial ConditionBusiness


There isOur auditors have expressed substantial doubt about our ability to continue as a going concern as a result of our limited operating history and financial resources, and if we are unable to generate significant revenue or secure financing we may be required to cease or curtail our operations.concern.


We had a net losses and net cash used in operations of $44,177 and $9,950, respectively from our inception on March 3, 2014 throughOur audited financial statements for the fiscal years ended April 30, 2014. As a result, our independent registered public accounting firm has included an explanatory paragraph in their audit opinion2017 and 2016 were prepared assuming that we may be unable towill continue our operations as a going concern. Our limitedWe do not, however, have a history of operating history and financial resources raisesprofitably. Consequently, our independent accountants in their audit report have expressed substantial doubt about our ability to continue as a going concernconcern. Our continued operations are highly dependent upon our ability to increase revenues, decrease operating costs, and our financial statements contain a going concern qualification.complete equity and/or debt financings. Such financings may not be available or may not be available on reasonable terms. Our financial statements do not include any adjustments that mightmay result from the outcome of this uncertainty and if we are unable to generate significant revenue or secure financing we may be required to cease or curtail our operations.




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uncertainty. We are a recently formed company with little or no historical performance for you to base an investment decision upon, and we may never become profitable.


We were recently formed on March 3, 2014. From our inception through April 30, 2014, and from our inception through September 2, 2014, we had revenues of $15,000 and $45,000. Accordingly, we have limited historical performance upon which you may evaluate our prospects for achieving our business objectives and becoming profitable in light of the risks, difficulties and uncertainties frequently encountered by early stage companies such as us. Accordingly, before investing in our common stock, you should consider the challenges, expenses and difficultiesestimate that we will facenot be able to continue as an early stage company, and whethera going concern after December 31, 2018 unless we will ever become profitable.


are able to secure capital from one of these sources of financing. If we are unable to generate sufficient revenues for our operating expenses we will needsecure such financing, which we may be unable to obtain; should we fail to obtain sufficient financing,cease operations and investors in our potential revenues will be negatively impacted.


We were recently formed on March 3, 2014. From our inception through April 30, 2014, and from our inception through September 2, 2014, we had revenuescommon stock could lose all of $15,000 and $45,000, respectively. These revenues were derived from our license agreement with ExactRep whereby we are paid $15,000 monthly to develop its branding campaign. After September 3, 2014, we will no longer receive these sums and as such will be dependent upon products sales for our revenues.  To date, we have no revenues from the sale of our products. Because we have no revenues from product sales and lack historical financial data, including revenue data, our future revenues are unpredictable. Our operating expenses are presently approximately $4,000 per month or $48,000. This amount does not include $10,000 per month which we owe to our sole officer and director which accrues until February 28, 2017 and an aggregate of $10,000 per month which we owe to two consultants, which accrues until September 30, 2014. After this registration statement is declared effective our operating expenses will be approximately $9,000 per month or $108,000, not including accrued salaries and amounts due to our two consultants. We will require $9,000 per month or $348,000 over the next twelve months to meet our existing operational costs, which consist of rent, advertising, salaries and other general, administrative expenses and to comply with the costs of being an SEC reporting company.


As of September 2, 2014, we had cash on hand of approximately $4,127 for our operational needs. We do not have cash on hand to meet our monthly operating expenses. Assuming the amounts due to our sole officer and director and two consultants continues to accrue we will have cash for our operating needs for approximately one month. Until we generate material operating revenues, we require additional debt or equity funding to continue our operations. We intend to raise additional funds from an offering of our stock in the future; however, this offering may never occur, or if it occurs, we may be unable to raise the required funding. We do not have any plans or specific agreements for new sources of funding and we have no agreements for financing in place.


Expenses required to operate as a public company will reduce funds available to implement our business plan and could negatively affect our stock price and adversely affect our results of operations, cash flow and financial condition.


Operating as a public company is more expensive than operating as a private company, including additional funds required to obtain outside assistance from legal, accounting, investor relations, or other professionals that could be more costly than planned. We may also be required to hire additional staff to comply with additional SEC reporting requirements. We anticipate that the cost of SEC reporting will be approximately $60,000 annually. Our failure to comply with reporting requirements and other provisions of securities laws could negatively affect our stock price and adversely affect our results of operations, cash flow and financial condition. If we fail to meet these requirements, we will be unable to secure a qualification for quotation of our securities on the OTC Bulletin Board, or if we have secured a qualification, we may lose the qualification and our securities would no longer trade on the OTC Bulletin Board. Further, if we fail to meet these obligations and consequently fail to satisfy our SEC reporting obligations, investors will then own stock in a company that does not provide the disclosure available in quarterly, annual reports and other required SEC reports that would be otherwise publicly available leading to increased difficulty in selling their stock due to our becoming a non-reporting issuer.investment.

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Risks Related to Our Business


We have not generated revenue fromvoluntarily implemented various corporate governance measures, in the saleabsence of our productswhich, shareholders may have more limited protections against interested director transactions, conflicts of interest and our future revenues are dependent upon our agreement with ExactRep Limited.similar matters.


We have no revenues fromFederal legislation, including the saleSarbanes-Oxley Act of our products. Our sole source of revenues is from our agreement with ExactRep Limited which allows us to distribute their products2002, has resulted in the U.S. Underadoption of various corporate governance measures designed to promote the agreement, ExactRep is required to pay us $15,000 per month for six (6) months to develop the branding campaign for its products in the U.S.  We will not be paid any sums for this campaign after September 3, 2014 and unless we generate product sales, we will not have revenues. We have no alternative sources of revenue. There is no assurance that we will generate revenues from the sale of our products in the future. Should we fail to generate revenues from the sale of our products, our financial condition will be negatively impacted and you will likely lose your entire investment.


We are dependent upon ExactRep to supply allintegrity of the products we sellcorporate management and any increase in the component prices it pays could increase our products costs and negatively affect our operations.   


All of our products are supplied by ExactRep Limited. ExactRep contracts with its suppliers on a non-exclusive basis, our operations may be interrupted or otherwise adversely affected by delays in the supply of parts or components to ExactRep. Even if parts and components are available from alternative sources, ExactRep may face increased costs and delays in connection with the replacement of an existing supplier with one or more alternative suppliers which could cause delays and cost increases for our products. These factors could have a material adverse effect on our business, prospects, and results of operations or financial condition.


We are dependent upon ExactRep to fulfill the orders for the products we sell.


ExactRep will fulfill all product orders from our website and we will be dependent on them to manage their inventory, process orders, and deliver products to our customers in a timely manner.


Because ExactRep fulfills the orders from our customers, we have limited control over how and when orders are fulfilled. We also have limited control over the products that ExactRep keeps in stock.  ExactRep may not accurately forecast the products that will be in high demand or they may allocate popular products to other resellers, resulting in the unavailability of certain products for delivery to our customers. Any inability to offer a broad array of products at competitive prices and any failure to deliver those products to our customers in a timely and accurate manner may damage our reputation and brand and could cause us to lose customers.

We will rely on third-party delivery services to deliver our products to our customers on a timely and consistent basis, and any deterioration in our relationship with any onesecurities markets. Some of these third parties or increasesmeasures have been adopted in the fees that they charge could harm our reputation and adversely affect our business and financial condition.

We will rely on third parties for the shipment and delivery of our products and we cannot be sure that we willresponse to legal requirements. Others have relationships with these third parties on terms that are favorable to us, or at all. Shipping costs may increase over time, which could harm our business, prospects, financial condition and results of operationsbeen adopted by increasing our costs of doing business and resultingcompanies in reduced gross margins. In addition, if our relationships with these third parties are terminated or impaired, or if these third parties are unable to deliver products for us, whether due to labor shortage, slow down or stoppage, deteriorating financial or business condition, responses to terrorist attacks or for any other reason, we would be required to locate alternative carriers for the shipment of products to our customers. Changing carriers could have a negative effect on our business and operating results due to package tracking and delays in order processing and product delivery. We could be unable to engage alternative carriers on a timely basis, upon terms favorable to us, or at all.




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Purchasers of aftermarket motorcycle parts may not choose to shop online, which would prevent us from generating revenues.


The online market for aftermarket motorcycle parts is less developed than the online market for many other business and consumer products, and currently represents only a small part of the industry. Our success will depend in part on our ability to attract new customers and to convert customers who have historically purchased aftermarket motorcycle parts through traditional retail and wholesale operations. Furthermore, we may have to incur significantly higher and more sustained advertising and marketing expenditures or may need to price our products more competitively than we currently anticipate in order to attract additional online consumers and convert them into purchasing customers.


Specific factors that could prevent prospective customers from purchasing from us include:


·

concerns about buying motorcycle parts without face-to-face interaction with sales personnel;


·

the inability to physically handle, examine and compare products;


·

delivery time associated with Internet orders;


·

concerns about the security of online transactions and the privacy of personal information;


·

delayed shipments or shipments of incorrect or damaged products;


·

increased shipping costs; and


·

the inconvenience associated with returning or exchanging items purchased online


If the online market for motorcycle aftermarket parts and accessories does not gain widespread acceptance, our business and financial results will likely fail.


If we fail to offer a broad selection of products at competitive prices to meet our customers’ demands, we may not be profitable.


In order to successfully market and distribute our products, we must successfully offer, on a continuous basis, a broad selection of motorcycle aftermarket parts that meet the needs of our customers. Our products are used by consumers for a variety of purposes, including performance, improved aesthetics and functionality. In addition, to be successful, our product offerings must be broad, competitively priced, well-made, innovative and attractive to a wide range of consumers. We cannot predict with certainty that we will be successful in offering products that meet all of these requirements. Should our target market not be as responsive to our products we will be unable to generate sufficient revenues to become profitable.


While many new products are regularly introduced, only a relatively small number of aftermarket motorcycle parts companies account for a significant portion of net revenue in our industry. Our products may not be desired for purchase by consumers, or competitors such as motorcycle manufacturers may develop products that imitate or compete with our products, and take our targeted revenue stream away from us or reduce our ability generate revenue. Aftermarket motorcycle parts sold by our competitors may take a larger share of our target market than we anticipate which could prevent us from generating meaningful revenue or cause our revenue streams to fall below our expectations. If our competitors develop more successful products or offer competitive products at lower price, we may never generate meaningful revenues and you could lose your entire investment.  




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We may not be able to compete effectively against other companies selling aftermarket motorcycle products.


We compete with both online and offline retailers who offer aftermarket motorcycle parts.


Our Competitors include the following:


·

national motorcycle parts retailers such as Advance Auto Parts, AutoZone, Napa Auto Parts, and Pep Boys;


·

large online marketplaces such as Amazon.com and sellers on eBay.com;


·

other online retailers and aftermarket motorcycle add on parts websites;


·

local independent retailers or niche motorcycle aftermarket parts retailers; and


·

wholesale aftermarket motorcycle parts distributors.


We believe the principal competitive factors in our market are helping customers easily find their aftermarket motorcycle parts, maintaining an appealing product catalog that maps individual aftermarket partsresponse to the relevant motorcycle brand, broad product selection and availability, price, knowledgeable customer service, and order fulfillment and delivery. Mostrequirements of our competitors will be larger, have stronger brand recognition or may have access to greater financial, technical, and marketing resources or have been operating longer than we have.


If we are unable to manage the challenges associated with our operations in both the United Kingdom and the United States, our results of operations will suffer.


We maintain business operations in the United States and the United Kingdom. Our U.K. operations include product fulfillment, internet marketing, and customer support services. Our products will be delivered from the U.K. to our customers in the U.S. We are subject to a number of risks and challenges that specifically relate to our operations being conducted in both the U.K. and U.S.. We may not be successful if we are unable to meet and overcome these challenges, which could prevent us from generating revenues from our products and limit the growth of our business.


These risks and challenges include:


·

the amount and timing of operating costs and capital expenditures relating to implementing our plan of operations and infrastructure;


·

difficulties and costs of staffing and managing foreign operations;


·

restrictions imposed by local labor practices and laws on our business and operations;


·

exposure to different business practices and legal standards;


·

unexpected changes in regulatory requirements;


·

the imposition of government controls and restrictions;


·

political, social, and economic instability and the risk of war, terrorist activities, or other international incidents;


·

the failure of telecommunications and connectivity infrastructure;




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·

natural disasters and public health emergencies;


·

potentially adverse tax consequences;


·

the failure of local laws to provide a sufficient degree of protection against infringement of our intellectual property; and


·

fluctuations in foreign currency exchange rates and relative weakness in the U.S. Dollar.


If commodity prices such as fuel, plastic, and steel continue to increase, we may not be profitable.


Our third party delivery services may increase fuel surcharges from time to time, and such increases negatively impact our margins, if we are unable to pass all of these costs directly to consumers. Increasing prices in the component materials for the parts we sell may impact the availability, the quality and the price of our products, as suppliers search for alternatives to existing materials and as they increase the prices they charge. We cannot ensure that we can recover all the increased costs through price increases, and ExactRep may not continue to provide the consistent quality of product to our customers as they may substitute lower cost materials to maintain pricing levels, all of which may have a negative impact on our business and results of operations.


Volatility in the prices of raw materials and energy prices and our ability to pass along increased costs to our customers could adversely affect results of our operations.


The prices of raw materials critical to our business and performance, such as steel, are based on global supply and demand conditions. Certain raw materials used by our suppliers, including polyurethane foam, vinyl, plastics, steel, polyester fiber, bicomponent fiber, and machined fiber are only available from a limited number of suppliers, and it may be difficult for ExactRepto find alternative suppliers at the same or similar costs this may affect our costs on products we sell and we may therefore not be profitable. The impact of any volatility in the prices of energy or the raw materials on which we rely, including the reduction in demand for certain products caused by such price volatility, could result in a loss of revenue and profitability and adversely affect our operations.


Some of our business may be cyclical. A downturn or weakness in overall economic activity can have a material negative impact on sales.


Historically, sales of products that Arazu distributes have been subject to cyclical variations caused by changes in general economic conditions. During recessionary periods,national securities exchanges, such as the recent global economic recession, we may be adversely affected by reduced demand for our products. In addition,NYSE or the strength ofNasdaq Stock Market, on which their securities are listed. Among the economy generally may affect the rates of expansion.


Our product design and technology are not protected by intellectual property rights.


The design and technical features of the ExactRep motorcycle parts and products that we sell are not protected by any patent, trademark, or other intellectual property rights. The component parts are manufactured by third parties and include componentscorporate governance measures that are not unique to our products. As a result,required under the designrules of national securities exchanges are those that address board of directors' independence, and technical features of our products are vulnerable to being copied or imitated by competitors. Our competitors may have or develop equivalent or superior manufacturing and design skills, and may develop an enhancement that will be patentable or otherwise protected from duplication by others. These events could have a material adverse effect on our business, prospects, results of operations, and financial condition.




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Increasing costs of doing business in many countries in which we operate may adversely affect our business and financial results.


Increasing costs such as labor and overhead costs in the countries in which we operate may erode our profit margins and compromise price competitiveness. Our profitability also depends on our ability to manage and contain other operating expenses such as the cost of utilities, freight, and packaging expenses. In the event we are unable to manage any increase in its labor and other operating expenses in an environment where revenue does not increase proportionately, our financial results would be adversely affected.


audit committee oversight. We have no intellectual property rights to use the ExactRep name and there can be no assurance that third parties will not assert intellectual property infringement claims against us, which could have a material adverse effect on our business, financial condition, and operating results.


Our products are marketed under the ExactRep brand for which we have no trade name protection.  Even if we are successful in establishing trade name awareness of the ExactRep name in the U.S., we could be forced to stop the use of the name if we infringe upon the intellectual property rights of others. There can be no assurance that third parties will not assert intellectual property infringement claims against us. These developments could prevent us from offering or supplying products under the ExactRep brand. These claims could also result in litigation or threatened litigation against us related to alleged or actual infringement of third-party rights. If an infringement claim is asserted or litigation is pursued, we may be required to obtain a license of rights, pay royalties on a retrospective or prospective basis, or terminate marketing of our products that are alleged to have infringed. Litigation with respect to such matters could result in substantial costs and diversion of our management and other resources and could have a material adverse effect on our business, financial condition, and operating results.


Our international scope will require it to obtain financing in various jurisdictions.

We will operate in the United States and other foreign countries, which creates financing challenges. These challenges include navigating local legal and regulatory requirements associated with obtaining debt or equity financing in the respective foreign jurisdictions in which we operate. In the event that we are not able to obtain financing on satisfactory terms inyet adopted any of these jurisdictions, it could significantly impair its ability to run its foreign operationscorporate governance measures and, since our securities are not yet listed on a cost effective basis or to grow such operations. Failure to manage such challenges may adversely affect our business and results of operations.


International sales and operations are subject to applicable laws relating to trade, export controls, and foreign corrupt practices, the violation of which could adversely affect operations.


We will comply with all applicable international trade, customs, export controls, and economic sanctions laws and regulations of the United States and other countries. We are also subject to the Foreign Corrupt Practices Act and other anti-bribery laws that generally bar bribes or unreasonable gifts to foreign governments or officials. Changes in trade sanctions laws may restrict our business practices, including cessation of business activities in sanctioned countries or with sanctioned entities, and may result in modifications to compliance programs. Violation of these laws or regulations could result in sanctions or fines and could have a material adverse effect on our financial condition, results of operations and cash flows.


We may in the future be subject to intellectual property rights disputes, which could reduce our ability to compete effectively and harm our business and results of operations.


Other companies may own, develop or acquire intellectual property rights that could prevent, limit or interfere with our ability to provide our products and services. One or more of these companies, which could include our competitors, could make claims against us alleging infringement of their intellectual property rights. Any intellectual property claims, with or without merit, could be time-consuming and expensive to litigate or settle and could significantly divert management resources and attention from our business.




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If we were unable to successfully defend against claims against us alleging infringement of intellectual property rights, we may be required to pay monetary damages, stop using the technology, pay a license fee to use the technology, or develop alternative non-infringing technology. If we have to obtain a license for the infringing technology, it may not be available on reasonable terms, if at all. Developing alternative non-infringing technology could require significant effort and expense. If we cannot license or develop alternative technology for the infringing aspects of our business, we may be forced to limit our product and service offerings. Any of these results could reduce our ability to compete effectively and harm our business and results of operations.


Security breaches and other disruptions could compromise our information and expose us to liability, which would cause our business and reputation to suffer.


In the ordinary course of business, we will collect and store sensitive data, including proprietary business information and that of our customers, suppliers, and business partners, as well as personally identifiable information of our customers and employees, in our data centers and on our networks. The secure processing, maintenance and transmission of this information is critical to our operations and business strategy. Despite security measures, our information technology and infrastructure may be vulnerable to malicious attacks or breached due to employee error, malfeasance or other disruptions, including as a result of rollouts of new systems. Any such breach could compromise our networks and the information stored there could be accessed, publicly disclosed, lost or stolen. Any such access, disclosure or other loss of information could result in legal claims or proceedings and/or regulatory penalties, disrupt our operations, damage its reputation, and/or cause a loss of confidence in its products and services, which could adversely affect our  business.


We do not currently have any general liability insurance to protect us in case of customer or other claims.


We do not have any general liability insurance to cover any potential claims to which we are exposed. Any imposition of liability would increase our operating losses and reduce our net worth and working capital and could cause you to lose our investment.


The motorcycle parts and products we sell may contain defects.


Our products may have unanticipated defects. Product defects may necessitate a recall of a particular part or product. Any unanticipated defects in our products or recalls could be costly to us and may have a material adverse effect on the ExactRep brand and our business, prospects, results of operations, and financial condition.


We may be subject to significant product liability claims.


We are exposed to possible claims for personal injury from the use of our motorcycle parts products. Although no claims of this kind have been made against ExactRep or its distributors to date, such claims may arise in the future. A partially or completely uninsured claim, if successful and of significant magnitude, could have a material adverse effect on our business, prospects, results of operations, or financial condition.


The purchase of many of our products is discretionary, and may be particularly affected by adverse trends in the general economy; therefore challenging economic conditions may make it difficult for us to generate revenue.


Our business is affected by general economic conditions since our products are discretionary and we depend, to a significant extent, upon a number of factors relating to discretionary consumer spending. These factors include economic conditions and perceptions of such conditions by consumers, employment rates, the level of consumers' disposable income, business conditions, interest rates, consumer debt levels and availability of credit. There can be no assurance that consumer spending on the products we sell, will not be adversely affected by changes in general economic conditions.




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We will rely on bandwidth and data center providers and other third parties to provide products to our customers, and any failure or interruption in the services provided by these third parties could disrupt our business and cause us to lose customers.


We will rely on third-party vendors, including data center and bandwidth providers for our retail websites. Any disruption in the network access or co-location services, which are the services that house and provide Internet access to our servers, provided by these third-party providers or any failure of these third-party providers to handle current or higher volumes of use could significantly harm our business. Any financial or other difficulties our providers face may have negative effects on our business, the nature and extent of which we cannot predict. We exercise little control over these third-party vendors, which increases our vulnerability to problems with the services they provide. We also license technology and related databases from third parties to facilitate elements of our e-commerce platform. We have experienced and expect to continue to experience interruptions and delays in service and availability for these elements. Any errors, failures, interruptions or delays experienced in connection with these third-party technologies could negatively impact our relationship with our customers and adversely affect our business.


We will depend on search engines and other online sources to attract visitors to our websites, and if we are unable to attract these visitors and convert those into customers in a cost-effective manner, our business and results of operations will be harmed.


Our success depends on our ability to attract online consumers to our websites and convert them into customers in a cost-effective manner. We are significantly dependent upon search engines, shopping comparison sites, and other online sources for our website traffic. We are included in search results as a result of both paid search listings, where we purchase specific search terms that will result in the inclusion of our listing, and algorithmic searches that depend upon the searchable content on our sites. Algorithmic listings cannot be purchased and instead are determined and displayed solely by a set of formulas utilized by the search engine. Search engines, shopping comparison sites and other online sources revise their algorithms from time to time in an attempt to optimize their search results. If one or more of the search engines, shopping comparison sites, or other online sources on which we rely for website traffic were to modify its general methodology for how it displays or selects our websites, it could result in fewer consumers clicking through to our websites, and our financial results could be adversely affected. We operate a multiple website platform that generally allows us to provide multiple search results for a particular algorithmic search. If the search engines were to limit our display results to a single result or entirely eliminate our results from the algorithmic search, our website traffic would significantly decrease and our business would be materially harmed. If any free search engine or shopping comparison site on which we rely begins charging fees for listing or placement, or if one or more of the search engines, shopping comparison sites, and other online sources on which we rely for purchased listings, modifies, or terminates its relationship with us, our expenses could rise, we could lose customers, and traffic to our websites could decrease. In addition, our success in attracting visitors who convert to customers will depend in part upon our ability to identify and purchase relevant search terms, provide relevant content on our sites, and effectively target our other marketing programs such as e-mail campaigns and affiliate programs. If we are unable to attract visitors to our websites and convert them to customers in a cost-effective manner, then our sales may decline and our business and financial results may be harmed.




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We will be subject to the 15(d) reporting requirements under the Securities Exchange Act of 1934, upon effectiveness of this registration statement which does not require a company to file all the same reports and information as a fully reporting company.


Upon effectiveness of this registration statement, we will be subject to the 15(d) reporting requirements according to the Securities Exchange Act of 1934. We are required to file the necessary reports in the fiscal year that the registration statement is declared effective. After that fiscal year and provided that we have less than 300 shareholders,national securities exchange, we are not required to filedo so. It is possible that if we were to adopt some or all of these reports. If the reports are not filed, the investors will have reduced information about us including about our business, plan of operations and financial condition. In addition, as a filer subject to Section 15(d) of the Exchange Act, we are not required to prepare proxy or information statements; our common stock will not be subject to the protection of the going private regulations; we will be subject to only limited portions of the tender offer rules; our officers,corporate governance measures, stockholders would benefit from somewhat greater assurances that internal corporate decisions were being made by disinterested directors and more than ten percent (10%) shareholders are not requiredthat policies had been implemented to file beneficial ownership reports aboutdefine responsible conduct. Prospective investors should bear in mind our current lack of corporate governance measures in formulating their holdings of our common shares; that these persons will not be subject to the short-swing profit recovery provisions of the Exchange Act; and that more than five percent (5%) holders of classes of your equity securities will not be required to report information about their ownership positions in the securities.investment decisions.


Risks Related To Our Management


As our business grows, we will need to attract additional managerial employees which we might not be able to do.


We have only one officer and director, Paul Clewlow. In order to grow and implement our business plan, we would need to add managerial talent in sales to support our business plan. There is no guarantee that we will be successful in adding such managerial talent.


Should we lose the services of Paul Clewlow, our founder, sole officer and director, our financial condition will be negatively impacted.


Our future depends on the continued contributions of Paul Clewlow, our founder, sole officer and director who would be difficult to replace. The services of Mr. Clewlow arecritical to the management of our business and operations.We do not maintain key man life insurance on Mr. Clewlow. Should we lose the services of Mr. Clewlow and be unable to replace his services with equally competent and experienced personnel, our operational goals and strategies may be adversely affected, which will negatively affect our potential revenues.


Because Paul Clewlow, our sole officer and director has conflicts of interest arising from his relationship with ExactRep, our sole source of revenues which may not be resolved in our favor.


Our sole source of revenue is from our agreement with ExactRep, a company that employs the accounting services of our sole officer and director Paul Clewlow. Accordingly, the personal interests of Mr. Clewlow and P Clewlow & Co may come into conflict with our interests and those of our minority stockholders. We, as well as P Clewlow & Co, may present Mr. Clewlow with business opportunities, which are simultaneously desired. Additionally, we may compete for technical resources, personnel, and other things. You should carefully consider these potential conflicts of interest before deciding whether to invest in shares of our common stock. We have not yet adopted a policy for resolving such conflicts of interests.


Paul Clewlow, our sole officer and director devotes a limited amount of time to our business which could cause our business to fail.


Paul Clewlow devotes only 110 hours each month on our business. We have no other officers or directors and no other employees.Presently and in the future our management may spend limited time on our business. The limited amount of time our management devotes to our business activities in the future may be inadequate to implement our plan of operations and develop a profitable business.




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You may have difficulty in enforcing any judgment against Paul Clewlow, our sole officer, and director, as he is a resident of the United Kingdom and not of the U.S., and is located outside the U.S..


Paul Clewlow, our sole officer and director is a resident of the United Kingdom and not of the U.S., and is located outside the U.S. As a result, it could be difficult for investors to effect service of process of Mr. Clewlow in the U.S., or to enforce a judgment against Mr. Clewlow obtained in the U.S.


We will incur additional costs and management time related expenses pertaining to SEC reporting obligations and SEC compliance matter and our management has no experience in such matters.


Paul Clewlow, our sole officer and director isresponsible for managing us, including compliance with SEC reporting obligations and maintaining disclosure controls and procedures and internal control over financial reporting. These public reporting requirements and controls are new to Mr. Clewlow and at times will require us to obtain outside assistance from legal, accounting or other professionals that will increase our costs of doing business. Should we fail to comply with SEC reporting and internal controls and procedures, we may be subject to securities law violations that may result in additional compliance costs or costs associated with SEC judgments or fines, both of which will increase our costs and negatively affect our potential profitability and our ability to conduct our business.


Because we do not have an audit or compensation committee, shareholders will have to rely on the one member of our board of directors who is not independent to perform these functions.


We do not have an audit or compensation committee or board of directors as a whole that is composed of independent directors. These functions are performed by our sole officer and director, Paul Clewlow. Because our sole director is not independent, there is a potential conflict between his and/or our interests and our shareholders’ interests since Mr. Clewlow will participate in discussions concerning management compensation and audit issues that may affect management decisions. Until we have an audit committee or independent directors, there may be less oversight of management decisions and activities and little ability for minority shareholders to challenge or reverse those activities and decisions, even if they are not in the best interests of minority shareholders.


We are an "emerging growth company," and we cannot be certain if the reduced reporting requirements applicable to emerging growth companies will make our common stock less attractive to investors.


We are an "emerging growth company," as defined in the Jumpstart Our Business Startups Act, or the JOBS Act. For as long as we continue to be an emerging growth company, we may take advantage of exemptions from various reporting requirements that are applicable to other public companies that are not emerging growth companies, including not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements and 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 could be an emerging growth company for up to five (5) years, although we could lose that status sooner if our revenues exceed $1,000,000,000, if we issue more than $1,000,000,000 in non-convertible debt in a three (3) year period, or if the market value of our common stock held by non-affiliates exceeds $100,000,000 as of any AprilJune 30 before that time, in which case we would no longer be an emerging growth company as of the following AprilJune 30. We cannot predict if investors will find our common stock less attractive because we may rely on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile.


We have elected to use the extended transition period for complying with new or revised accounting standards under Section 102(b)(2) of the JOBSJobs Act, that allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies. As a result of this election, our financial statements may not be comparable to companies that comply with public company effective dates.




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Risks RelatedIf we are unable to Our Common Stockretain our staff, our business and results of operations could be harmed.


Our ability to compete with other motorcycle parts distributors, and develop our business is largely dependent on the services of Paul Clewlow, our Chief Executive Officer, and other employees and contractors which assist him in management and operation of the business. If we are unable to retain Mr. Clewlow’ services and to attract other qualified senior management and key personnel on terms satisfactory to us, our business will be adversely affected. We do not have key man life insurance covering the life of Mr. Clewlow and, even if we are able to afford such a key man policy, our coverage levels may not be sufficient to offset any losses we may suffer as a result of Mr. Clewlow’ death, disability, or other inability to perform services for us.

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OurThere are significant operational and logistical risks associated with our primary operations being in the United States, and our sole executive officer Paul Clewlow residing in the United Kingdom.

The Company’s sole executive officer Paul Clewlow resides in the United Kingdom. However, the bulk of the Company’s operations, though primarily online, will be in the United States market. Management and expansion of our business will be subject to risks associated with the Company’s management abroad.

Some of the challenges to managing the Company abroad will be:

·Managing and staffing operations;

·Adapting the Company’s online platform to meet the changing needs of the marketplace including varying levels of Internet, e-commerce and mobile technology adoption and infrastructure;

·Complying with United States regulatory standards, including those related to the use of personal information in the United States;

·Protecting the Company from and resolving fraudulent transactions; and

·Enforcing contracts and intellectual property rights in the United States; and.

·Expanding the Company’s market presence in the United States.

Failure of Paul Clewlow to effectively manage abroad all aspects of the Company, could have a material adverse effect on our results of operations and financial condition, and future growth prospects could be harmed.

Because Arazu Incorporated’s principle office is located in the London, England, and Paul Clewlow, the Company’s sole executive officer and director resides in London, England, it may be difficult for you to effect service of process on either the Company or Paul Clewlow, or to enforce any judgment you may receive against them from a U.S. court. In addition, any judgment against the Company obtained in the England, would be in British pounds exposing you to exchange rate risk.

Arazu Incorporated, a Florida corporation’s principle office is located at The Office, 23 Barton Road, Market Bosworth, Warwickshire, England CV13 0LQ. Additionally, Paul Clewlow, the Company’s sole executive officer and director resides in London, England. All or a substantial portion of the Company’s assets may be located outside the United States. As a result, it may be difficult for investors to effect service of process within the United States upon Mr. Clewlow or the Company or to enforce in United States courts judgments obtained against Mr. Clewlow or the Company in United States courts and predicated upon the civil liability provisions of the United States federal securities laws. In addition, any judgment against the Company, obtained in England, would be in British pounds exposing you to exchange rate risk.

In addition, the Company has been advised by counsel, that there is doubt as to (i) the enforceability, in original actions in the English courts, of liabilities predicated solely upon the United States federal securities laws and (ii) the enforceability in English courts of judgments of United States courts obtained in actions predicated upon the civil liability provisions of the United States federal securities laws.

Paul Clewlow, our sole officer and director has voting control over all matters submitted to a voteconflicts of interest arising from his relationship with ExactRep, our common stockholders,sole source of revenues, which will preventmay not be resolved in our minority shareholders from having the ability to control any of our corporate actions.favor.


AsOur sole source of revenue is from our agreement with ExactRep, a company that has employed the dateaccounting services of this prospectus, we had 20,370,000 shares of common stock outstanding, each entitled to one vote per common share. Ourour sole officer and director Paul Clewlow. Accordingly, the personal interests of Mr. Clewlow holds 10,000,000 common shares. The shares held by Clewlow represent approximately forty-nine percent (49%)may come into conflict with our interests and those of our outstanding common shares. Additionally,minority stockholders. Mr. Clewlow, holdspersonally, may be presented with certain business opportunities through his relationship with ExactRep, which could simultaneously benefit the Company. Additionally, we may compete with ExactRep for technical resources, personnel, and other things. You should carefully consider these potential conflicts of interest before deciding whether to invest in shares of our common stock. We have not yet adopted a policy for resolving such conflicts of interests.

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We may acquire businesses and enter into joint ventures that will expose us to increased operating risks.

As part of our growth strategy, we intend to acquire other motorcycle parts distributors. We cannot provide any assurance that we will find attractive acquisition candidates in the future, that we will be able to acquire such candidates on economically acceptable terms or that we will be able to finance acquisitions on economically acceptable terms. Even if we are able to acquire new businesses in the future, they could result in the incurrence of substantial additional indebtedness and other expenses or potentially dilutive issuances of equity securities and may affect the market price of our common stock or restrict our operations. We have also entered into joint venture arrangements intended to complement or expand our business and will likely continue to do so in the future. These joint ventures are subject to substantial risks and liabilities associated with their operations, as well as the risk that our relationships with our joint venture partners do not succeed in the manner that we anticipate.

We face intense competition and, if we are not able to effectively compete in our markets, our revenues may decrease.

Competitive pressures in our markets could adversely affect our competitive position, leading to a possible loss of customers or a decrease in prices, either of which could result in decreased revenues and profits. Our competitors are numerous, ranging from large multinational corporations, which have significantly greater capital resources than us, to relatively small and specialized firms. We also compete with the major manufacturers. Our business could be adversely affected because of increased competition from these motorcycle parts manufacturers and distributors.

Current and future litigation could adversely affect us.

We are not currently involved in any legal proceedings. However, we may become involved in other legal proceedings in our ordinary course of business. Lawsuits and other legal proceedings can involve substantial costs, including the costs associated with investigation, litigation and possible settlement, judgment, penalty or fine. As a smaller company, the collective costs of litigation proceedings can represent a drain on our cash resources, as well as an inordinate amount of our Management’s time and addition. Moreover, an adverse ruling in respect of certain litigation could have a material adverse effect on our results of operation and financial condition.

We have limited the liability of our board of directors and management.

We have adopted provisions in our Articles of Incorporation which limit the liability of our directors and officers and have also adopted provisions in our bylaws which provide for indemnification by the Company of our officers and directors to the fullest extent permitted by Florida corporate law. Our Articles of Incorporation generally provide that our directors shall have no personal liability to the Company or its stockholders for monetary damages for breaches of their fiduciary duties as directors, except for breaches of their duties of loyalty, acts or omissions not in good faith or which involve intentional misconduct or knowing violation of law, acts involving unlawful payment of dividends or unlawful stock purchases or redemptions, or any transaction from which a director derives an improper personal benefit. Such provisions substantially limit our shareholders’ ability to hold directors liable for breaches of fiduciary duty.

Our share structure could impede a non-negotiated change of control of the Company.

On March 3, 2014, and June 15, 2017 respectively, the Company issued an aggregate of 20,000,000 common shares of the Company to Mr. Clewlow, our Chief Executive Officer, in exchange for services provided to the Company. Additionally, on July 18, 2014, we issued 1,000,000 Series A Preferred Shares which entitle him to 200 votes per share or an aggregate of 200,000,000 votes on all matters submitted to our common stockholders. As a result, he holds ninety-five (95%)shares of the total votes eligibleCompany to vote on matters submitted to our common stockholders. As a result, Mr. Clewlow hasin exchange for services rendered the ability to determine the outcome of all matters submitted to our stockholders for approval, including the election of directors. Mr. Clewlow’s control of our voting securities may make it impossible to complete some corporate transactions without his support and may prevent a change in our control. In addition, this ownership could discourage the acquisitionCompany. While shares of our common stock hold one vote per share, each share of Series A Preferred Stock holds 200 votes. Consequently, any attempt to take over the Company without the consent of Mr. Clewlow would be extremely difficult to achieve. Because of the disproportionate voting control of Mr. Clewlow, he alone could inhibit, delay, or frustrate entirely an attempt by potential investorsothers to take over control of our Company and could prevent our shareholders from obtaining a premium for their shares.

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Existing cash and cash equivalents are insufficient to fund operations.

The Company’s existing cash and cash equivalents are insufficient to fund current operations beyond April 30, 2018. To date, we have an anti-takeover effect, possibly depressingrelied upon related party loans and sales of the Company’s securities to fund operations. Additionally, we have incurred negative cash flows from operations since inception and have expended, and expect to continue to expend, substantial funds to grow our business. As a result, the Company will need to continue to rely primarily on related party loans, and further sales of equity, equity-linked or debt securities of the Company’s to fund its operations for the foreseeable future. However, we cannot guarantee that we will secure the needed capital to fund operations, and to the extent that we raise additional capital through the sale of the Company’s securities, the ownership interest of our stockholders could be diluted, and the terms of these securities may include liquidation or other preferences that adversely affect the rights of our common stockholders. Debt financing, if available, may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends. If we are unable to raise additional funds through related party loans, or equity or debt financings when needed, we may be required to delay, limit, reduce or terminate the implementation of our business plan.

Risks Relating To This Offering and Our Common Stock

If the selling shareholders sell a large number of shares all at once or in blocks, the market price of our shares would most likely decline.

Holders holding 11,209,000 shares of common stock may resell their shares of Common stock through this prospectus. Should the selling stockholders decide to sell their shares at a price below the market price as quoted on OTCQB marketplace or on the OTC Bulletin Board, the price may continue to decline. A steep decline in the price of our common stock upon being quoted on OTCQB marketplace or on the OTC Bulletin Board would adversely affect our ability to raise additional equity capital, and even if we were successful in raising such capital, the terms of such raise may be substantially dilutive to current shareholders.

Shareholders who hold unregistered shares of our common stock are subject to resale restrictions pursuant to Rule 144, due to our status as a “Shell Company.”

Pursuant to Rule 144 of the Securities Act of 1933, as amended (“Rule 144”), a “shell company” is defined as a company that has no or nominal operations; and, either no or nominal assets; assets consisting solely of cash and cash equivalents; or assets consisting of any amount of cash and cash equivalents and nominal other assets. As such, because we have nominal operations and assets, we are still considered a “shell company” pursuant to Rule 144 and as such, sales of our securities pursuant to Rule 144 are not able to be made until we have ceased to be a “shell company” and we are subject to Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, and have filed all of our required periodic reports for at least the previous one year period prior to any sale pursuant to Rule 144; and a period of at least twelve months has elapsed from the date “Form 10 information” (i.e., information similar to that which would be found in a Form 10 Registration Statement filing with the SEC has been filed with the Commission reflecting the Company’s status as a non-“shell company.” Because none of our non-registered securities can be sold pursuant to Rule 144, until one year after filing Form 10 like information with the SEC any non-registered securities we sell in the future or issue to consultants or employees, in consideration for services rendered or for any other purpose will have no liquidity until and unless such securities are registered with the Commission and/or until 12 months after we cease to be a “shell company” and have complied with the other requirements of Rule 144, as described above. As a result, it may be harder for us to fund our operations and pay our consultants with our securities instead of cash. Furthermore, it will be harder for us to raise funding through the sale of debt or equity securities unless we agree to register such securities with the Commission, which could cause us to expend additional resources in the future. Our status as a “shell company” could prevent us from raising additional funds, engaging consultants, and using our securities to pay for any acquisitions (although none are currently planned), which could cause the value of our securities, if any, to decline in value or become worthless.

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The market price of our common stock may fluctuate significantly.

The market price and marketability of shares of our common stock may be affected significantly by numerous factors, including some over which we have no control and which may not be directly related to us. These factors include the following:

·Our relatively small number of outstanding shares;

·The lack of trading volume in our shares;

·Price and volume fluctuations in the stock market from time to time, which often are unrelated to our operating performance;

·Variations in our operating results;

·Any shortfall in revenue or any increase in losses from expected levels;

·Announcements of new initiatives, joint ventures, or commercial arrangements; and

·General economic trends and other external factors.

If the trading price of our common stock.  


Westock falls significantly following completion of this offering, this may in the future, issue additional securities,cause some of our shareholders to sell our shares, which would reduce investors’ percent of ownershipfurther adversely affect the trading market for, and may dilute our share value.


Our Articles of Incorporation authorize us to issue 340,000,000 shares of common stock and 10,000,000 shares of blank check preferred stock. As of the date of this prospectus, we had 20,370,000 shares of common stock outstanding and 1,000,000 shares of Series A preferred shares outstanding. Accordingly, we may issue up to an additional 319,630,000 shares of common stock and 9,000,000 shares of preferred stock. Our future issuance of securities may result in substantial dilution in the percentageliquidity of, our common stock held bystock. If we seek to raise capital through future equity financings, this volatility may adversely affect our then existing shareholders. We may value any securities issued in the future on an arbitrary basis including for services or acquisitions or other corporate actions that may have the effect of diluting the value of the shares held by our stockholders, and might have an adverse effect on any trading market for our common stock. We may issue an additional 9,000,000 shares of blank check preferred stock. Our board of directors may designate the rights, terms, and preferences of our authorized but unissued preferred shares at its discretion including conversion and voting preferences without noticeability to our shareholders. Upon our directors establishing the designation of our preferred shares, our preferred shares may have voting and other rights superior to those of our common stockholders.raise such equity capital.


Investors may have difficulty in reselling their shares due to the lack of market or state Blue Sky laws.


Our common stock is currently not quoted on any market. No market may ever develop for our common stock, or if developed, may not be sustained in the future. The holders of our shares of common stock and persons who desire to purchase them in any trading market that might develop in the future should be aware that there might be significant state law restrictions upon the ability of investors to resell our shares. Accordingly, even if we are successful in having the shares available for trading on the OTCQB marketplace or on the OTC Bulletin Board, investors should consider any secondary market for our common shares to be a limited one. We intend to seek coverage and publication of information regarding the company in an accepted publication, which permits a "manual exemption." This manual exemption permits a security to be distributed in a particular state without being registered if the company issuing the security has a listing for that security in a securities manual recognized by the state. However, it is not enough for the security to be listed in a recognized manual. The listing entry must contain (1) the names of issuers, officers, and directors, (2) an issuer's balance sheet, and (3) a profit and loss statement for either the fiscal year preceding the balance sheet or for the most recent fiscal year of operations. We may not be able to secure a listing containing all of this information. Furthermore, the manual exemption is a non-issuer exemption restricted to secondary trading transactions, making it unavailable for issuers selling newly issued securities. Most of the accepted manuals are those published in Standard and Poor's, Moody's Investor Service, Fitch's Investment Service, and Best's Insurance Reports, and many states expressly recognize these manuals. A smaller number of states declare that they “recognize securities manuals” but do not specify the recognized manuals. The following states do not have any provisions and therefore do not expressly recognize the manual exemption: Alabama, Georgia, Illinois, Kentucky, Louisiana, Montana, South Dakota, Tennessee, Vermont and Wisconsin.

Accordingly, our common shares should be considered totally illiquid, which inhibits investors’ ability to resell their shares.



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18



We will be subject to penny stock regulations and restrictions and you may have difficulty selling shares of our common stock.


The SEC has adopted regulations which generally define so-called “penny stocks” to be an equity security that has a market price less than $5.00 per share or an exercise price of less than $5.00 per share, subject to certain exemptions. We anticipate that our common stock will become a “penny stock,”stock”, and we will become subject to Rule 15g-9 under the Exchange Act, or the “Penny Stock Rule.”Rule”. This rule imposes additional sales practice requirements on broker-dealers that sell such securities to persons other than established customers. For transactions covered by Rule 15g-9, a broker-dealer must make a special suitability determination for the purchaser and have received the purchaser’s written consent to the transaction prior to sale. As a result, this rule may affect the ability of broker-dealers to sell our common shares and may affect the ability of purchasers to sell any of our common shares in the secondary market.


For any transaction involving a penny stock, unless exempt, the rules require delivery, prior to any transaction in a penny stock, of a disclosure schedule prepared by the SEC relating to the penny stock market. Disclosure is also required to be made about sales commissions payable to both the broker-dealer and the registered representative and current quotations for the securities. Finally, monthly statements are required to be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stock.


We do not anticipate that our common stock will qualify for exemption from the Penny Stock Rule. In any event, even if our common stock were exempt from the Penny Stock Rule, we would remain subject to Section 15(b)(6) of the Exchange Act, which gives the SEC the authority to restrict any person from participating in a distribution of penny stock, if the SEC finds that such a restriction would be in the public interest.


Sales of our common stock under Rule 144 could reduce the price of our stock.


None of our outstanding common shares are currently eligible for resale under Rule 144. In general, persons holding restricted securities in a Securities & Exchange Commission reporting company, including affiliates, must hold their shares for a period of at least six (6) months, may not sell more than one percent (1%) of the total issued and outstanding shares in any ninety (90) day90-day period, and must resell the shares in an unsolicited brokerage transaction at the market price. If substantial amounts of our common stock become available for resale under Rule 144, prevailing market prices for our common stock will be reduced.


If inFollowing approval by the futureFinancial Industry Regulatory Authority (“FINRA”) to the quotation of our common stock on a major exchange, if we are notcease to be required to continue filing reports under Section 15(d) of the Securities Exchange1934 Act, of 1934, for example because we have less than three hundred shareholders of record at the end of the first fiscal year in which this registration statement is declared effective, and we do not file a Registration Statement on Form 8-A upon the occurrence of such an event, our common shares can no longer be quoted on the OTCQB marketplace or on the OTC Bulletin Board, which could reduce the value of your investment.


AsFollowing approval by FINRA to the quotation of our common stock on a major exchange, and as a result of this offering, as required under Section 15(d) of the Securities Exchange Act of 1934, we will file periodic reports with the Securities and Exchange Commission as required under Section 15(d). However, if in the future we are not required to continue filing reports under Section 15(d), for example because we have less than three hundred shareholders of record at the end of the first fiscal year in which this registration statement is declared effective, and we do not file a Registration Statement on Form 8-A upon the occurrence of such an event, our common stock can no longer be quoted on the OTCQB marketplace or on the OTC Bulletin Board, which could reduce the value of your investment. Of course, there is no guarantee that we will be able to meet the requirements to be able to cease filing reports under Section 15(d), in which case we will continue filing those reports in the years after the fiscal year in which this registration statement is declared effective. Filing a registration statement on Form 8-A will require us to continue to file quarterly and annual reports with the SEC and will also subject us to the proxy rules of the SEC. In addition, our officers, directors and ten percent (10%)10% stockholders will be required to submit reports to the SEC on their stock ownership and stock trading activity. Thus the filing of a Form 8-A in such event makes our common shares continued to be able to be quoted on the OTCQB marketplace or on the OTC Bulletin Board.

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We may, in the future, issue additional securities, which would reduce investors’ percent of ownership and may dilute our share value.

19



Special Information Regarding Forward Looking Statements


SomeOur Articles of Incorporation authorize us to issue 340,000,000 shares of common stock and 10,000,000 shares of preferred stock. As of the statements indate of this prospectus, are “forward-looking statements.” These forward-looking statements involve certain knownwe had 31,209,000 shares of common stock issued and unknown risks, uncertainties,outstanding. Accordingly, we may issue up to an additional 308,791,000 shares of common stock and 9,000,000 shares of preferred stock. The future issuance of common stock may result in substantial dilution in the percentage of our common stock held by our then existing shareholders. We may value any common stock issued in the future on an arbitrary basis including for services or acquisitions or other factors whichcorporate actions that may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed, or implied by these forward-looking statements. These factors include, among others,have the factors set forth above under “Risk Factors.” The words “believe,” “expect,” “anticipate,” “intend,” “plan,” and similar expressions identify forward-looking statements. We caution you not to place undue reliance on these forward-looking statements. We undertake no obligation to update and revise any forward-looking statements or to publicly announceeffect of diluting the result of any revisions to any of the forward-looking statements in this document to reflect any future or developments. However, the Private Securities Litigation Reform Act of 1995 is not available to us as a non-reporting issuer. Further, Section 27A(b)(2)(D) of the Securities Act and Section 21E(b)(2)(D) of the Securities Exchange Act expressly state that the safe harbor for forward looking statements does not apply to statements made in connection with an initial public offering.


USE OF PROCEEDS


We will not receive proceeds from the salevalue of the shares held by selling shareholders.


DETERMINATION OF OFFERING PRICE


Our management has determined the offering price for the selling shareholders' shares. The price of the shares we are offering were arbitrarily determined. Weour stockholders, and might have no agreement, written or oral, with our selling shareholders about this price. Based upon oral conversations with our selling shareholders, we believe that none of our selling book value or other criteria of value. The factors considered were:


·

Our lack of significant revenues


·

Our growth potential


·

The price we believe a purchaser is willing to pay for our stock


The offering price does not bearan adverse effect on any relationship to our assets, results of operations, or book value, or to any other generally accepted criteria of valuation. Prior to this offering, there has been notrading market for our securities.


DILUTION


Not applicable. We are not offering any shares in this registration statement. All shares are being registered on behalfcommon stock. Our board of directors may designate the rights, terms and preferences of our sellingauthorized but unissued preferred shares at its discretion including conversion and voting preferences without notice to our shareholders.




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.

20


We have never paid a dividend and we intend to retain any future earnings to finance the development and expansion of our business. Consequently, 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. We cannot assure you that stockholders will be able to sell shares when desired.

SELLING STOCKHOLDERS


selling stockholders

The selling security holders named below are selling the securities. The table assumes that all of the securities will be sold in this offering. However,stockholders may offer and sell, from time to time, any or all of the securities listed belowCommon stock registered for resale hereunder. Because the selling stockholders may offer all or only some portion of the 11,209,000 shares of Common stock to be registered, we cannot estimate the amount or percentage of these shares of common stock that will be retained by anythe selling stockholders. Consequently, we have assumed, for purposes of the table below, that the selling stockholders will sell all of their shares of common stock.

The computation of ownership in the table below is not made pursuant to the beneficial ownership rules of the Commission under “Security Ownership of Certain Beneficial Owners and Management” on page 17, but is instead based solely upon the name of the titled holder of such shares as of the date of this prospectus. Other than the relationships described below, none of the selling security holders, and therefore, no accurate forecast can be made as tostockholders had or have any material relationship with us. To our knowledge, none of the selling stockholders is a broker-dealer or an affiliate of a broker-dealer.

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        Number of  
        Common  
        Shares Percentage
        held after held after
        Offering offering
        assuming assuming
        All all
  Number   Number of Common Common
  Of Common Percentage Common Shares Shares
  Shares Held owned before Shares Being being
  before the the Being registered registered
Name of Beneficial Holder Offering Offering (1) Offered are Sold(2) are sold(2)
ADAM YANOFSKY  100,000   *   100,000   -   0% 
AKIVA WEINHOUSE  10,000   *   10,000   -   0% 
ANDREW BURDON  40,000   *   40,000   -   0% 
BRENDA LOVATT  149,700   *   149,700   -   0% 
CALIN HUMA  40,000   *   40,000   -   0% 
CARL GRANT  1,020,000   3.27%   1,020,000   -   0% 
CHENE C. GARDENER & ASSOCIATES, INC.  10,000   *   10,000   -   0% 
CHRYSTAL SILVIA ROGERS  200,000   *   200,000   -   0% 
DANIEL JENKINS  80,000   *   80,000   -   0% 
DAVID LOVATT  2,020,000   6.47%   2,020,000   -   0% 
DAVID TERENCE ROGERS  100,000   *   100,000   -   0% 
DAVID TERRANCE ROGERS  100,000   *   100,000   -   0% 
DILIP PATEL  40,000   *   40,000   -   0% 
DITTO MEDIA SOLUTIONS  2,100,000   6.73%   2,100,000   -   0% 
DOMENICA ANTONELLI  10,000   *   10,000   -   0% 
EDITH POLATOFF  500,000   1.60%   500,000   -   0% 
ELISHAH ARYEH  10,000   *   10,000   -   0% 
ELLIOTT POLATOFF  1,520,000   4.89%   1,520,000   -   0% 
HAMILTON & ASSOCIATES LAW GROUP. PA.  400,000   1.28%   400,000   -   0% 
HILDY SCHORR  10,000   *   10,000   -   0% 
J LAWRENCE KOLODNY  15,000   *   15,000   -   0% 
JAKE ARAVE  10,000   *   10,000   -   0% 
JERRY BLUM  10,000   *   10,000   -   0% 
JERRY-LEE GUDGER  40,000   *   40,000   -   0% 
JOHN D THOMAS P.C.  800,000   2.56%   800,000   -   0% 
JONATHAN DUNSMOOR  200,000   *   200,000   -   0% 
JOSEPH FULDA  10,000   *   10,000   -   0% 
KENNETH I. DENOS, P.C.  10,000   *   10,000   -   0% 
KYLE M. DENOS  100,000   *   100,000   -   0% 
LESLEY DEWHIRST  154,300   *   154,300   -   0% 
MARY FOSTER  10,000   *   10,000   -   0% 
MONICA DENOS  10,000   *   10,000   -   0% 
MORDECHAI GOLDFEDER  10,000   *   10,000   -   0% 
NAFTALI SOLOMON  10,000   *   10,000   -   0% 
PETER BARNES  200,000   *   200,000   -   0% 
SEAN FULDA  750,000   2.40%   750,000   -   0% 
SHOSHANA RUMSTEIN  10,000   *   10,000   -   0% 
TODD FEINSTEIN  400,000   1.28%   400,000   -   0% 
Total  11,209,000   35.92%   11,209,000   -   0% 

 * - indicates less than one percent

(1) For each selling stockholder, the number of securitiesshares of common stock and percentage of ownership is based upon 31,209,000 shares issued and outstanding as of January 18, 2018. As of such date there are no shares of common stock subject to options, warrants, and/or conversion rights held directly by any selling stockholder that are currently exercisable or exercisable within 60 days. The table above attributes ownership to the named holder of the common stock and to no other person. The table also assumes that each selling stockholder will be held by the selling security holders upon terminationsell all of this offering.


We believe that the selling security holders listedhis, her, or its shares in the table have sole voting and investment powers with respect to the securities indicated. We will not receive any proceeds from the sale of the securities by the selling security holders. None of our selling security holders is or is affiliated with a broker-dealer. All selling security holders may be deemed underwriters. The percentages below are based upon 20,370,000 common shares outstanding.offering.

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Name of Beneficial Holder

Number of Common Shares

Held Before the Offering

Percentage

Owned Before

Offering

Number of Common Shares

Being Offered

Number of Common Shares held After Offering Assuming All Common Shares Being Registered Are Sold (1)

Percentage held after Offering Assuming All Common Shares Being Registered Are Sold(1)

David Lovatt(2)

2,020,000

9.96%

400,000

1,620,000

7.95%

Elliot Polatoff(3)(4)

2,020,000

9.96%

400,000

1,620,000

7.95%

Edith Polatoff(4)

500,000

2.4%

400,000

100,000

<1%

Danny Jenkins

200,000

<1%

200,000

0

0

Sean Fulda

750,000

3.7%

400,000

350,000

1.7%

David Rogers(5)

300,000

<1%

300,000

0

0

Crystal Rogers(5)

200,000

<1%

200,000

0

0

Andrew Burdon

40,000

<1%

40,000

0

0

Jerry Lee Grudger

40,000

<1%

40,000

0

0

Dilip Patel

40,000

<1%

40,000

0

0

Calin Huma

40,000

<1%

40,000

0

0

Peter Barnes

200,000

<1%

200,000

0

0

Carl Grant(6)

1,020,000

9.96%

400,000

620,000

3%

Hamilton & Associates(7) Law Group, P.A.

400,000

1.98%

400,000

0

0

Todd Feinstein(7)

400,000

1.98%

400,000

0

0

Jonathan Dunsmoor (7)

200,000

<1%

200,000

0

0

Ditto Media Solutions (8)

2,100,000

10.85%

400,000

1,700,000

8.4%

Total

10,470,000

50.79%

4,460,000

6,010,000

29.4%




21



(1)(2) Assuming that all 4,460,00011,209,000 shares being registered are sold.

(2) On March 3, 2014, we sold 1,020,000 shares of our common stock to David Lovatt in exchange for services rendered. We valued these shares at the price of $.0001 per share or an aggregate of $102.

(3) On March 3, 2014, we sold 1,020,000 shares of our common stock to Elliot Polatoff in exchange for services rendered. We valued these shares at the price of $.0001 per share or an aggregate of $102.

(4) Edith Polatoff is the mother of Elliot Polatoff.

(5) David Rogers and Chrystal Rogers are husband and wife

(6) On April 11, 2014, we issued 1,020,000 shares of our common stock to Carl Grant in exchange for services rendered. We valued these shares at the price of $.005 per share or an aggregate of $5,100.

(7) On July 28, 2014, we issued 400,000 shares to Hamilton & Associates Law Group, P.A. for services rendered. We valued these shares at $.05 per share or an aggregate of $20,000.  Hamilton & Associates Law Group, P.A. is a Florida professional association controlled by Brenda Hamilton. On July 28, 2014, we issued 400,000 and 200,000 common shares to Todd Feinstein and Jonathan Dunsmoor respectively for legal services rendered. Todd Feinstein and Jonathan Dunsmoor are counsel to Hamilton and Associates Law Group, P.A. We valued these shares at $.05 per share or $20,000 and $10,000, respectively.

(8)  Ditto Media Solutions is a formed pursuant to the laws of the United Kingdom that is controlled fifty percent (50%) by Jonathan Spruce and fifty percent (50%) by his spouse, Rebecca Spruce. On July 21, 2014, we issued 2,100,000 shares to Ditto Solutions for services rendered to us. We valued these shares at $.05 per share or an aggregate of $105,000.


Holders of Record


We have twenty (20)39 shareholders of record.


Offers and Sales of Securities


Name

Price

Paid

Per Share

Total Amount Paid

Number of Shares

Purchased

Payment Method

How shareholder Known

to Company

Offer

Date

Sale Date

David Lovatt

$.005

Services

$5,000

Services

1,000,000

1,020,000

Check

Services

Pre-existing relationship with Paul Clewlow

3/3/14

3/3/14

4/3/14

3/3/14

Elliot Polatoff

$.005

Services

$5,000

Services

1,000,000

1,020,000

Check

Services

Pre-existing relationship with Paul Clewlow

3/3/14

3/3/14

4/3/14

3/3/14

Sean Fulda

$.01

$7,500

750,000

Wire

Pre-existing relationship with Paul Clewlow

4/2/11

6/26/14

Edith Polatoff

$.01

$5,000

500,000

Wire

Pre-existing relationship with Paul Clewlow

4/2/11

5/28/14

Peter Barnes

$.01

$2,000

200,000

Wire

Pre-existing relationship with Paul Clewlow

4/2/11

7/23/14

    Total     How    
  Price Consideration Number   Shareholder    
  Per Paid by of Shares Payment Know at Offer Sale
Name Share Paid Shareholder Purchased Method Time of Offer Date Date
ADAM YANOFSKY $0.05  $5,000   100,000   Wire  Pre-existing relationship with Paul Clewlow  May 2, 2017   May 10, 2017
AKIVA WEINHOUSE $0.05  $500   10,000   Wire  Pre-existing relationship with Paul Clewlow  May 12, 2017   May 16, 2017
ANDREW BURDON $0.05  $2,000   40,000   Check  Pre-existing relationship with Paul Clewlow  July 14, 2014   July 14, 2014
BRENDA LOVATT $0.01  $1,497   149,700   Wire  Pre-existing relationship with Paul Clewlow  October 22, 2014   October 22,2014
CALIN HUMA $0.05  $2,000   

 

 

40,000

   Wire  Pre-existing relationship with Paul Clewlow  July 16, 2014   July 21, 2014
CARL GRANT $0.005  $5,100   

 

 

1,020,000

   Services  Pre-existing relationship with Paul Clewlow  April 11, 2014   April 11, 2014
CHENE C. GARDNER & ASSOCIATES, INC. $0.05  $500   

 

 

10,000

   Services  Pre-existing relationship with Paul Clewlow  March 1, 2017   March 1, 2017
CHRYSTAL SILVIA ROGERS $0.05  $10,000   

 

 

200,000

   Wire  Pre-existing relationship with Paul Clewlow  

July 7, 2014

July 21, 2014

   

July 7, 2014

July 21, 2014

DANIEL JENKINS $0.025  $2,000   

 

 

80,000

   Wire  Pre-existing relationship with Paul Clewlow  May 4, 2014   July 16, 2014
DAVID LOVATT 

$

$

0.005

0.0001

  

$

$

5,000

102

   

 

 

1,000,000

1,020,000

   

Wire

Services

  Pre-existing relationship with Paul Clewlow  

March 3, 2014

March 3, 2014

   

April 3, 2014

March 3, 2014

DAVID TERENCE ROGERS $0.05  $10,000   

 

 

200,000

   Wire  Pre-existing relationship with Paul Clewlow  

July 7, 2014

July 17, 2014

   

July 7, 2014

July 21, 2014

DILIP PATEL $0.05  $2,000   

 

 

40,000

   Wire  Pre-existing relationship with Paul Clewlow  July 21, 2014   July 21, 2014
DITTO MEDIA SOLUTIONS $0.05  $105,000   

 

 

2,100,000

   Services  Pre-existing relationship with Paul Clewlow  July 21, 2014   July 21, 2014
DOMENICA ANTONELLI $0.05  $500   10,000   Check  Pre-existing relationship with Paul Clewlow  June 7, 2017   June 7, 2017
EDITH POLATOFF $0.01  $5,000   

 

 

500,000

   Wire  Pre-existing relationship with Paul Clewlow  April 2, 2011   July 23, 2014
ELISHAH ARYEH $0.05  $500   

 

 

10,000

   Wire  Pre-existing relationship with Paul Clewlow  May 2, 2017   May 10, 2017
ELLIOTT POLATOFF 

$

$

0.005

0.0001

  

$

$

5,000

102

   

1,000,000

1,020,000

   

Wire

Services

  Pre-existing relationship with Paul Clewlow  

March 3, 2014

March 3, 2014

   

April 3, 2014

March 3, 2014

HAMILTON & ASSOCIATES LAW GROUP. PA. $0.05  $20,000   

 

 

400,000

   Services  Pre-existing relationship with Paul Clewlow  April 2, 2014   July 28, 2014
13
Table of Contents
HILDY SCHORR $0.05  $500   

 

 

10,000

   Check  Pre-existing relationship with Paul Clewlow  June 7, 2017   June 7, 2017
J LAWRENCE KOLODNY $0.05  $750   

 

 

15,000

   Wire  Pre-existing relationship with Paul Clewlow  May 2, 2017   May 16, 2017
JAKE ARAVE $0.05  $500   

 

 

10,000

   Services  Pre-existing relationship with Paul Clewlow  March 1, 2017   March 1, 2017
JERRY BLUM $0.05  $500   

 

 

10,000

   Wire  Pre-existing relationship with Paul Clewlow  May 2, 2017   May 16, 2017
JERRY-LEE GUDGER $0.05  $2,000   

 

 

40,000

   Wire  Pre-existing relationship with Paul Clewlow  July 1, 2014   July 11, 2014
JOHN D THOMAS P.C. $0.05  $15,000   

 

 

300,000

   Services  Pre-existing relationship with Paul Clewlow  March 1, 2017   March 1, 2017
JONATHAN DUNSMOOR $0.05  $10,000   

 

 

200,000

   Services  Pre-existing relationship with Paul Clewlow  April 2, 2014   July 28, 2014
JOSEPH FULDA $0.05  $500   

 

 

10,000

   Check  Pre-existing relationship with Paul Clewlow  June 7, 2017   June 7, 2017
KENNETH I. DENOS, P.C. $0.05  $500   

 

 

10,000

   Services  Pre-existing relationship with Paul Clewlow  March 1, 2017   March 1, 2017
KYLE M. DENOS $0.05  $5,000   

 

 

100,000

   Services  Pre-existing relationship with Paul Clewlow  March 1, 2017   March 1, 2017
LESLEY DEWHIRST $0.01  $1,543.05   

 

 

154,300

   Wire  Pre-existing relationship with Paul Clewlow  October 23, 2014   October 23, 2014
MARY FOSTER $0.05  $500   

 

 

10,000

   Services  Pre-existing relationship with Paul Clewlow  March 1, 2017   March 1, 2017
MONICA DENOS $0.05  $500   

 

 

10,000

   Services  Pre-existing relationship with Paul Clewlow  March 1, 2017   March 1, 2017
MORDECHAI GOLDFEDER $0.05  $500   

 

 

10,000

   Wire  Pre-existing relationship with Paul Clewlow  May 2, 2017   May 16, 2017
NAFTALI SOLOMON $0.05  $500   

 

 

10,000

   Check  Pre-existing relationship with Paul Clewlow  June 6, 2017   June 6, 2017
PETER BARNES $0.01  $2,000   

 

 

200,000

   Wire  Pre-existing relationship with Paul Clewlow  April 2, 2011   July 23, 2014
SEAN FULDA $0.01  $7,500   

 

 

750,000

   Wire  Pre-existing relationship with Paul Clewlow  April 2, 2011   June 26, 2014
SHOSHANA RUMSTEIN $0.05  $500   

 

 

10,000

   Wire  Pre-existing relationship with Paul Clewlow  May 9, 2017   May 10, 2017
TODD FEINSTEIN $0.05  $20,000   

 

 

400,000

   Services  Pre-existing relationship with Paul Clewlow  April 2, 2014   July 28, 2014
Total     $250,594   11,209,000              




22



Daniel Jenkins

$.025

$5,000

200,000

Wire

Pre-existing relationship with Paul Clewlow

5/4/14

7/16/14

David  Rogers

$.05

$.05

$5,000

$10,000

100,000

200,000

Wire

Wire

Pre-existing relationship with Paul Clewlow

7/7/14

7/17/14

7/7/14

7/21/14

Crystal Rodgers

$.05

$.05

$5,000

$5,000

100,000

100,000

Wire

Wire

Pre-existing relationship with Paul Clewlow

7/7/14

7/21/14

7/7/14

7/21/14

Andrew Burdon

$.05

$2,000

40,000

Check

Pre-existing relationship with Paul Clewlow

7/14/14

7/14/14

Jerry Lee Gruger

$.05

$2,000

40,000

Check

Pre-existing relationship with Paul Clewlow

7/15/14

7/15/14

Dilip Patel

$.05

$2,000

40,000

Wire

Pre-existing relationship with Paul Clewlow

7/21/14

7/21/14

Calin Homa

$.05

$2,000

40,000

Wire

Pre-existing relationship with Paul Clewlow

7/21/14

7/21/14

Carl Grant

Services

Services

1,020,000

Services

Pre-existing relationship with Paul Clewlow

4/3/14

4/3/14

Ditto Media Solutions

Services

Services

2,100,000

Services

Pre-existing relationship with Paul Clewlow

7/21/14

7/21/14

Hamilton & Associates Law Group, P.A.

Services

Services

400,000

Services

Pre-existing relationship with Paul Clewlow

4/2/14

7/28/14

Todd Feinstein

Services

Services

400,000

Services

Pre-existing relationship with Paul Clewlow

4/2/14

7/28/14

Jonathan Dunsmoor

Services

Services

200,000

Services

Pre-existing relationship with Paul Clewlow

4/2/14

7/28/14




23



Our selling stockholders hold an aggregate of 10,470,000 common11,209,000 shares of which 4,460,000 are being registered.common stock. As reflected in the chart above from our inception on March 3, 2014, to present, we sold 4,310,0004,599,000 common shares for cash consideration of $57,500$67,790, and issued 6,160,0006,610,000 common shares for services to the selling stockholders. We are registering 2,660,000all 4,599,000 common shares sold for cash consideration and 1,800,0006,610,000 common shares issued for services. We are not registering common shares held by our sole officer and director.officers, directors, or affiliates.

14
Table of Contents


We relied on Section 4(2) of the Securities Act of 1933, as amended for the offer and sale of the securities below. We believe that Section 4(2) was available because:


·Each investor had a pre-existing relationship with our Chief Executive Officer, Paul Clewlow at the time of the offer and sale.

·

·None of these issuances involved underwriters, underwriting discounts or commissions.

Each investor had a pre-existing relationship with our sole officer and director, Paul Clewlow at the time of the offer and sale.

·Restrictive legends were and will be placed on all certificates issued as described above.


·The distribution did not involve general solicitation or advertising.

·

·The distributions were made only to investors who were sophisticated enough to evaluate the risks of the investment.

None of these issuances involved underwriters, underwriting discounts, or commissions.


·

Restrictive legends were and will be placed on all certificates issued as described above.


·

The distribution did not involve general solicitation or advertising.


·

The distributions were made only to investors who were sophisticated enough to evaluate the risks of the investment.


In connection with the foregoing transactions, we provided the following to all investors:


·Access to all our books and records.

·

·Access to all material contracts and documents relating to our operations.

Access to all our books and records.

·The opportunity to obtain any additional information, to the extent we possessed such information, necessary to verify the accuracy of the information to which the investors were given access.


·

Access to all material contracts and documents relating to our operations.


·

The opportunity to obtain any additional information, to the extent we possessed such information, necessary to verify the accuracy of the information to which the investors were given access.


Prospective investors were invited to review at our offices at any reasonable hour, after reasonable advance notice, any materials available to us concerning our business.


The holders of our shares of common stock and persons who desire to purchase them in any trading market that might develop in the future should be aware that there may be significant state law restrictions upon the ability of investors to resell our shares. Accordingly, even if we are successful in having the shares available for trading on the OTCBB,OTCQB marketplace or on the OTC Bulletin Board, investors should consider any secondary market for the Company's securities to be a limited one. We intend to seek coverage and publication of information regarding the Company in an accepted publication which permits a "manual exemption.”exemption”. This manual exemption permits a security to be distributed in a particular state without being registered if the company issuing the security has a listing for that security in a securities manual recognized by the state. However, it is not enough for the security to be listed in a recognized manual. The listing entry must contain (1) the names of issuers, officers, and directors, (2) an issuer's balance sheet, and (3) a profit and loss statement for either the fiscal year preceding the balance sheet or for the most recent fiscal year of operations. We may not be able to secure a listing containing all of this information. Furthermore, the manual exemption is a non-issuer exemption restricted to secondary trading transactions, making it unavailable for issuers selling newly issued securities. Most of the accepted manuals are those published in Standard and Poor's, Moody's Investor Service, Fitch's Investment Service, and Best's Insurance Reports, and many states expressly recognize these manuals. A smaller number of states declare that they “recognize securities manuals” but do not specify the recognized manuals. The following states do not have any provisions and therefore do not expressly recognize the manual exemption: Alabama, Georgia, Illinois, Kentucky, Louisiana, Montana, South Dakota, Tennessee, Vermont and Wisconsin.




24



We currently do not intend to and may not be able to qualify securities for resale in other states which require shares to be qualified before they can be resold by our shareholders.


DETERMINATION OF OFFERING PRICE

The prices at which the shares of common stock covered by this prospectus may actually be sold will be determined by the prevailing public market price for shares of common stock, by negotiations between the selling shareholders and buyers of our common stock in private transactions or as otherwise described in “Plan of Distribution”. We determined this offering price arbitrarily. There is no relationship between this price and our assets, earnings, book value or any other objective criteria of value.

15
Table of Contents

PLAN OF DISTRIBUTION


Our common stock is currently not quoted on any market. No market may ever develop for our common stock, or if developed, may not be sustained in the future. Accordingly, our shares should be considered totally illiquid, which inhibits investors’ ability to resell their shares.


Additionally, we are a “Shell Company” as defined in Rule 405 of the Securities Act and Rule 12b-2 of the Exchange Act, and as a result, Rule 144 is not available to securities of shell companies. Furthermore, Rule 144 is only available to securities of former shell companies after certain conditions have been met. A shell company is a company, other than an asset-backed issuer, that has: no or nominal operations; and either: (i) no or nominal assets; (ii) assets consisting solely of cash and cash equivalents; or (iii) assets consisting of any amount of cash and cash equivalents and nominal other assets.

The Selling shareholders are offering up to 4,460,00011,209,000 shares of common stock. The selling shareholders will offersell their shares at $.25the price of $0.05 per share until the price of our shares areis quoted on the OTCQB marketplace or on the OTC Bulletin Board, and thereafter at prevailing market prices or privately negotiated prices. We will not receive proceeds from the sale of shares from the selling shareholders.


The securities offered by this prospectus will be sold by the selling shareholders. Selling shareholders in this offering may be considered underwriters. We are not aware of any underwriting arrangements that have been entered into by the selling shareholders. The distribution of the securities by the selling shareholders may be effected in one or more transactions that may take place in the over-the-counter market, including broker's transactions or privately negotiated transactions.


The selling shareholders may pledge all or a portion of the securities owned as collateral for margin accounts or in loan transactions, and the securities may be resold pursuant to the terms of such pledges, margin accounts or loan transactions. Upon default by such selling shareholders, the pledge in such loan transaction would have the same rights of sale as the selling shareholders under this prospectus. The selling shareholders may also enter into exchange traded listed option transactions, which require the delivery of the securities listed under this prospectus. After our securities are qualified for quotation on the over the counter bulletin board,markets, the selling shareholders may also transfer securities owned in other ways not involving market makers or established trading markets, including directly by gift, distribution, or other transfer without consideration, and upon any such transfer the transferee would have the same rights of sale as such selling shareholders under this prospectus.


In addition to the above, each of the selling shareholders will be affected by the applicable provisions of the Securities Exchange Act of 1934, including, without limitation, Regulation M, which may limit the timing of purchases and sales of any of the securities by the selling shareholders or any such other person. We have instructed our selling shareholders that they may not purchase any of our securities while they are selling shares under this registration statement.


Upon this registration statement being declared effective, the selling shareholders may offer and sell their shares from time to time until all of the shares registered are sold; however, this offering may not extend beyond two years from the initial effective date of this registration statement.


There can be no assurances that the selling shareholders will sell any or all of the securities. In various states, the securities may not be sold unless these securities have been registered or qualified for sale in such state or an exemption from registration or qualification is available and is complied with.


All of the foregoing may affect the marketability of our securities. Pursuant to oral promises we made to the selling shareholders, we will pay all the fees and expenses incident to the registration of the securities.


Should any substantial change occur regarding the status or other matters concerning the selling shareholders or us, we will file a post-effective amendment to this registration statement disclosing such matters.


16
Table of Contents



25



OTCQB Marketplace and OTC Bulletin Board Considerations


To be quoted on the OTCQB marketplace or on the OTC Bulletin Board, a market maker must file an application on our behalf in order to make a market for our common stock. We anticipate that after this registration statement is declared effective, market makers will enter “piggyback” quotes and our securities will thereafter trade on the OTCQB marketplace or on the OTC Bulletin Board.


The OTCQB marketplace and the OTC Bulletin Board isare separate and distinct from the NASDAQ stock market. NASDAQ has no business relationship with issuers of securities quoted on the OTCQB marketplace or on the OTC Bulletin Board. The SEC’s order handling rules, which apply to NASDAQ-listed securities, do not apply to securities quoted on the OTCQB marketplace or on the OTC Bulletin Board.


Although the NASDAQ stock market has rigorous listing standards to ensure the high quality of its issuers, and can delist issuers for not meeting those standards, the OTCQB and the OTC Bulletin Board has nohave limited listing standards. Rather, it is the market maker who chooses to quote a security on the system, files the application, and is obligated to comply with keeping information about the issuer in its files. FINRA cannot deny an application by a market maker to quote the stock of a company. The only requirement for inclusion in the bulletin board is that the issuer be current in its reporting requirements with the SEC.


Although we anticipate listing on the OTCQB marketplace or on the OTC Bulletin Board will increase liquidity for our stock, investors may have greater difficulty in getting orders filled because it is anticipated that if our stock trades on a public market, it initially will trade on the OTCQB marketplace or on the OTC Bulletin Board rather than on NASDAQ. Investors’ orders may be filled at a price much different than expected when an order is placed. Trading activity in general is not conducted as efficiently and effectively as with NASDAQ-listed securities.


Investors must contact a broker-dealer to trade OTCQB and OTC Bulletin Board securities. Investors do not have direct access to the bulletin board service. For bulletin board securities, there only has to be one market maker.


OTCQB marketplace and OTC Bulletin Board transactions are conducted almost entirely manually. Because there are no automated systems for negotiating trades on the Bulletin Board,OTC, they are conducted via telephone. In times of heavy market volume, the limitations of this process may result in a significant increase in the time it takes to execute investor orders. Therefore, when investors place market orders - an order to buy or sell a specific number of shares at the current market price - it is possible for the price of a stock to go up or down significantly during the lapse of time between placing a market order and getting execution. Because OTCQB marketplace and the OTC Bulletin Board stocks are usually not followed by analysts, there may be lower trading volume than for NASDAQ-listed securities.


17
Table of Contents

DESCRIPTION OF SECURITIES


The following description is a summary of the material terms of the provisions of our Articles of Incorporation and Bylaws. Our Articles of Incorporation and Bylaws have been filed as exhibits to the registration statement of which this prospectus is a part.


We are authorized to issue 340,000,000 shares of common stock, $0.0001 par value per share. As of the date of this prospectus there are 20,370,000 shares of our common stock issued and outstanding held by twenty (20) stockholders of record. We are authorized to issue 10,000,000 shares of blank check preferred stock of which 1,000,000 shares are designated as Series A Preferred Stock and are outstanding.


Common StockLEGAL PROCEEDINGS


Each share of our common stock entitles the holder to one (1) vote, either in person or by proxy, at meetings of shareholders. The shareholders are not permitted to vote their shares cumulatively. Accordingly, the holders of more than fifty percent (50%) of the total voting rights on matters presented to our common stockholders can elect all of our directors and, in such event, the holders of the remaining minority shares will not be able to elect any such directors. The vote of the holders of a majority of the holders entitled to vote on matters submitted to our common stockholders is sufficient to authorize, affirm, ratify, or consent to such act or action, except as otherwise provided by law.




26



To date, we have paid no cash dividends on our shares of common stock. Any future disposition of dividends will be at the discretion of our board of directors and will depend upon, among other things, our future earnings, operating and financial condition, capital requirements, and other factors. We have no present plans for future cash or stock dividends. We intend to retain future earnings, if any, to provide funds for operation of our business.


Holders of our common stock have no preemptive rights. All outstanding shares of our common stock are validly issued, fully paid, and non-assessable.


Upon our liquidation or dissolution, the assets legally available for distribution to holders of shares of the common stock, after payment of all of our obligations, are distributable ratably among the holders of the then outstanding common stock.


All shares of common stock outstanding are validly issued, fully paid, and non-assessable.


Preferred Shares


We are authorized to issue 10,000,000 shares of preferred stock with a par value of $.0001 per share of which 1,000,000 shares are outstanding and designated as Series A Preferred Shares. Our board of directors may designate the authorized but unissued shares of the Preferred Stock with such rights and privileges as the board of directors may determine.  As such, our board of directors may issue 9,000,000 preferred shares and designate the conversion, voting and other rights and preferences without notice to our shareholders and without shareholder approval.


The Series A Preferred Shares are held by our sole officer and director, Paul Clewlow and provide him with the 200 votes per share or an aggregate of 200,000,000 votes.  


The Series A Preferred Shares have the following rights, designations and preferences:


·

To vote together with the holders of the Common Stock as a single class on all matter submitted for a vote of holders of Common Stock


·

Each one (1) share of Series A Preferred Stock shall have voting rights equal to 200 shares of the Company’s Common Stock, providing for the holder of the Series A Preferred Stock to have aggregate voting rights equal to 200,000,000 shares of the Company’s Common Stock.


·

The holder of the Series A Preferred Stock shall be entitled to received notice of any stockholders’ meeting in accordance with the Articles of Incorporation and By-laws of the Company.


·

So long as any shares of Series A Preferred Stock remain outstanding, we shall not, without the written consent or affirmative vote of the holders of one hundred percent (100%) of the outstanding shares of the Series A Preferred Stock, (i) amend, alter, waive, or repeal, whether by merger consolidation, combination, reclassification, or otherwise, the Articles of Incorporation, including this Certificate of Designation, or our By-laws or any provisions thereof (including the adoption of a new provision thereof), and (ii) create, authorize or issue any class, series or shares of Preferred Stock or any other class of capital stock. The vote of the holders of at least one-hundred percent (100%) of the outstanding Series A Stock, voting separately as one class, shall be necessary to adopt any alteration, amendment or repeal of any provisions of this Resolution, in addition to any other vote of stockholders required by law.




27



Florida Anti-Takeover Laws


As a Florida corporation, we are subject to certain anti-takeover provisions that apply to public corporations under Florida law. Pursuant to Section 607.0901 of the Florida Business Corporation Act, or the Florida Act, a publicly held Florida corporation may not engage in a broad range of business combinations or other extraordinary corporate transactions with an interested shareholder without the approval of the holders of two-thirds of the voting shares of the corporation (excluding shares held by the interested shareholder), unless:


the transaction is approved by a majority of disinterested directors before the shareholder becomes an interested shareholder;


the interested shareholder has owned at least eighty percent (80%) of the corporation’s outstanding voting shares for at least five years preceding the announcement date of any such business combination;


the interested shareholder is the beneficial owner of at least ninety percent (90%) of the outstanding voting shares of the corporation, exclusive of shares acquired directly from the corporation in a transaction not approved by a majority of the disinterested directors; or


the consideration paid to the holders of the corporation’s voting stock is at least equal to certain fair price criteria.


An interested shareholder is defined as a person who, together with affiliates and associates, beneficially owns more than ten percent (10%) of a corporation’s outstanding voting shares. We have not made an election in our amended Articles of Incorporation to opt out of Section 607.0901.


In addition, we are subject to Section 607.0902 of the Florida Act which prohibits the voting of shares in a publicly held Florida corporation that are acquired in a control share acquisition unless (i) our board of directors approved such acquisition prior to its consummation or (ii) after such acquisition, in lieu of prior approval by our board of directors, the holders of a majority of the corporation’s voting shares, exclusive of shares owned by officers of the corporation, employee directors or the acquiring party, approve the granting of voting rights as to the shares acquired in the control share acquisition. A control share acquisition is defined as an acquisition that immediately thereafter entitles the acquiring party to twenty percent (20%) or more of the total voting power in an election of directors.


INTEREST OF NAMED EXPERTS


The financial statements from March 3, 2014 (inception) through April 30, 2014, included in this prospectus have been audited by Malone Bailey LLP, independent registered public accounting firm, to the extent and for the periods set forth in our report and are incorporated herein in reliance upon such report given upon the authority of said firm as experts in auditing and accounting.


The legality of the shares offered under this registration statement is being passed upon by Hamilton & Associates Law Group, PA Brenda Hamilton, principal of Hamilton & Associates Law Group, P.A. owns 400,000 shares of our common stock, which are being registered in this offering


LEGAL PROCEEDINGS


We are not aware of any pending or threatened legal proceedings in which we are involved.




28



DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, AND CONTROL PERSONS


TheBoard of Directors

Our board of directors elects our executive officers annually. A majority voteconsists of the directors who are in office are required to fill vacancies. Each director shall be elected for the term of one (1) year, and until his successor is elected and qualified, or until his earlier resignation or removal. Our directors and executive officers are as follows:following individual:


Name and Year First Elected Director(1)Age

Name

Age

Position

Background Information

Paul Clewlow

(2014)

 64

61

Paul Clewlow has served as the Chief Executive OfficerOffice and DirectorChairman of Arazu Inc. since its inception in March 2014. From January 2005 to present, Mr. Clewlow has served as a principal accountant at Clewlow & Co., Accountants and Certified Bookkeepers. As our sole director, Mr. Clewlow’s experience in finance and familiarity with ExactRep’s products and business qualifies him to be our sole director. Mr. Clewlow’s responsibilities for us include overseeing all aspects of our operations and financial matters. Mr. Clewlow is a resident of the United Kingdom and not of the U.S., and is located outside the U.S. Mr. Clewlow has a General and Two Advance Certification of Education from Binky Park School Coventry in England.

 


(1) The business address of our sole director is The Office, 23 Barton Road, Market Bosworth, Warwickshire, England CV13 0LQ U.K.

Director Independence

Our sole member of the Board of Directors is not considered an “independent director” as such term is defined in the published listing requirements of the New York Stock Exchange.

Compensation of Directors

Although we anticipate compensating the members of our board of directors in the future at industry levels, current members are not paid cash compensation for their service as directors. Each director may be reimbursed for certain expenses incurred in attending board of directors and committee meetings.

Board of Directors Meetings and Committees

Although various items were reviewed and approved by the Board of Directors via unanimous written consent during the fiscal years ended April 30, 2017 and 2016 and the nine months ended January 31, 2018, the Board held no in-person meetings.

We do not have Audit or Compensation Committees of our board of directors. Because of the lack of financial resources available to us, we also do not have an “audit committee financial expert” as such term is described in Item 401 of Regulation S-K promulgated by the SEC.

18
Table of Contents

Executive Officers

Paul Clewlow is our sole executive officer, serving as our Chief Executive Officer, President and Directorwith a business background is as follows:


Name and Year First Appointed as Executive OfficerAgeBackground Information

Paul Clewlow

(2014)

 64Paul Clewlow has served as the Chief Executive Office and Chairman of Arazu Inc. since its inception in March 2014. From January 2005 to present, Mr. Clewlow has served as a principal accountant at Clewlow & Co., Accountants and Certified Bookkeepers. As our sole director, Mr. Clewlow’s experience in finance and familiarity with ExactRep’s products and business qualifies him to be our sole director. Mr. Clewlow’s responsibilities for us include overseeing all aspects of our operations and financial matters. Mr. Clewlow is a resident of the United Kingdom and not of the U.S., and is located outside the U.S. Mr. Clewlow has a General and Two Advance Certification of Education from Binky Park School Coventry in England. 

Paul Clewlow became our sole officer and director on March 3, 2014. From January 2005 to present, Mr. Clewlow has served as a principal accountant at Clewlow & Co., Accountants and Certified Bookkeepers.Legal Proceedings


Mr. Clewlow will dedicate 110 hours per month to our business.


As our director, Mr. Clewlow’s experience in finance and familiarity with ExactRep’s products and business qualifies him to be our sole director.


Mr. Clewlow has a General and Two Advance Certification of Education from Binky Park School Coventry in England.


Mr. Clewlow’s responsibilities for us include overseeing all aspects of our operations and financial matters. Mr. Clewlow is a resident of the United Kingdom and not of the U.S., and is located outside the U.S.


Family Relationships and Other Matters


There are no family relationships between Mr. Clewlow, our sole officer and director and any of our shareholders.


Legal Proceedings


Mr. Clewlow aswas previously a director of Railtech Solutions Ltd from 2000 and 2005. In 2007, two years after Mr. Clewlow’s resignation, an administrator was appointed to liquidate Railtech Solutions. In connection with the liquidation of Railtech Solutions on March 18, 2009, Mr. Clewlow consented to an order prohibiting him from serving as a director of a company formed in the United Kingdom until March 17, 2016, pursuant to section 7 of the Company Directors Disqualification Act 1986 ("CDDA"), as amended.


Mr. Clewlow applied for a personal bankruptcy order which was granted in April of 2006 by Winchester County Court, Hampshire, England. The bankruptcy was discharged in April of 2009. Pursuant2009, pursuant to the Insolvency Act 1986, as amended.




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Except as stated above,Other than the aforementioned, no other officer, director, or persons nominated for such positions, promoter or significant employee has been involved in the last ten (10) years in any of the following:


·Any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;

·Any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);

·Being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities;

·Being found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated; 

·Having any government agency, administrative agency, or administrative court impose an administrative finding, order, decree, or sanction against them as a result of their involvement in any type of business, securities, or banking activity;

·Being the subject of a pending administrative proceeding related to their involvement in any type of business, securities, or banking activity; and/or

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·Having any administrative proceeding been threatened against you related to their involvement in any type of business, securities, or banking activity.

any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time;


·

any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);


·

being subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities, or banking activities;


·

being found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated;


·

having any government agency, administrative agency, or administrative court impose an administrative finding, order, decree, or sanction against them as a result of their involvement in any type of business, securities, or banking activity;


·

being the subject of a pending administrative proceeding related to their involvement in any type of business, securities, or banking activity; and/or


·

having any administrative proceeding been threatened against you related to their involvement in any type of business, securities, or banking activity.


Corporate Governance


We have one member of our board of directors, Paul Clewlow who is our sole officer and director and our majority shareholder. Mr. Clewlow is not “independent” as the term is used in Item 7(d)(3)(iv)(B) of Schedule 14A under the Securities Exchange Act of 1934, as amended, and as defined by Rule 4200(a)(15) of the NASDAQ Marketplace Rules.


We do not have any standing audit, nominating and compensation committees of the board of directors, or committees performing similar functions. We do not currently have a Code of Ethics applicable to our principal executive, financial or accounting officer. All Board actions have been taken by Written Action rather than formal meetings.


SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT


AND RELATED STOCKHOLDER MATTERS

The following tables settable sets forth the beneficial ownership asof each of our directors and executive officers, and each person known to us to beneficially own 5% or more of the date of this prospectus,outstanding shares of our common stock, by each person known by us to be the beneficial owner of more than five percent (5%) of our outstanding common stock, our directors, and our executive officers and directors as a group.  Togroup, as of January 31, 2018. Beneficial ownership is determined in accordance with the bestrules of the SEC and includes voting or investment power with respect to the securities. Unless otherwise indicated, we believe that each beneficial owner set forth in the table has sole voting and investment power and has the same address as us. Our address is The Office, 23 Barton Road, Market Bosworth, Warwickshire, England CV13 0LQ U.K. The following table describes the ownership of our knowledge,voting securities, based on 31,209,000 shares of common stock, and 1,000,000 shares of Series A Preferred Stock issued and outstanding held by (i) each of our officers and directors, (ii) all of our officers and directors as a group, and (iii) each person known to us to own beneficially more than 5% of our common stock or any shares of our preferred stock.  

Name of

Beneficial Owner(1)

Number of Common Shares

Beneficially Owned(2)

Percent

of Class(3)

Paul Clewlow(4)20,000,00064.08%
David Lovatt2,020,0006.472%
Ditto Media Solutions, Inc.2,100,0006.729%

All officers and directors as a group

(1 person)

20,000,00064.08%

(1)     The address of each officer, director, and beneficial owner is c/o Arazu Incorporated, The Office, 23 Barton Road, Market Bosworth, Warwickshire, England CV13 0LQ U.K.

(2)     The number of shares of Common stock beneficially owned by any shareholder is determined by the sum of (i) all shares of common stock held directly or indirectly by such shareholder, and (ii) shares of common stock subject to options, warrants and/or conversion rights deemed beneficially owned by the shareholder that are currently exercisable or exercisable within 60 days.

(3)     The calculation of percentage of beneficial ownership is based upon: (i) 31,209,000 shares of common stock issued and outstanding as of January 31, 2018, and (ii) shares of common stock subject to options, warrants and/or conversion rights deemed beneficially held by the shareholder that are currently exercisable or exercisable within 60 days. The percentage ownership of any shareholder is determined by assuming that the shareholder has exercised all options, warrants, and conversion rights to obtain additional securities, and that no other shareholder has exercised such rights. Except as otherwise indicated below, the persons and entity named in the table have sole voting and investment power with respect to suchall shares exceptof common stock and voting rights shown as otherwise noted.beneficially owned by them, subject to applicable community property laws.

(4)     Chief Executive Officer and Chairman of the Board of Directors of the Company. Excludes 1,000,000 Series A Preferred Shares held directly by Mr. Clewlow. Although the Series A Preferred Stock carry no dividend, distribution, liquidation or conversion rights, each share of Series A Preferred Stock holds two hundred (200) votes per share. If the votes of the Series A Preferred Stock are taken into account, Mr. Clewlow would beneficially hold 95.15% of the voting securities of the Company.

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DESCRIPTION OF Securities

The selling stockholders are offering up to 11,209,000 shares of Common stock for resale in quoted or private transactions, at fixed or negotiated prices. The following description of our capital stock is based on relevant portions of the Florida Business Corporation Act (the “Florida Act”), and on our Articles of Incorporation and Bylaws. This summary may not contain all of the information that is important to you, and we refer you to the Florida Act and our Articles of Incorporation and Bylaws for a more detailed description of the provisions summarized below. Our Articles of Incorporation and Bylaws have been filed as exhibits to the registration statement of which this prospectus is a part.

Arazu was organized as a corporation under the laws of the State of Florida on March 3, 2014. Our authorized capital stock consists of 340,000,000 shares of common stock, par value $0.0001 per share and 10,000,000 shares of preferred stock, par value $0.0001 per share. As of January 18, 2018, there were approximately 39 record holders of our common stock. There are no outstanding options or warrants to purchase our stock.

Our Articles of Incorporation provides that our board of directors may not any pending or anticipated arrangements that may cause a change in control.




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The information presented below regarding beneficial ownershipamend our Articles of Incorporation without approval of our voting securities has been presentedshareholders, including holders of our preferred shares. A decrease or increase in accordance with the rules of the Securities and Exchange Commission and is not necessarily indicative of ownership for any other purpose. Under these rules, a person is deemed to be a "beneficial owner" of a security if that person has or shares the power to vote or direct the voting of the security or the power to dispose or direct the disposition of the security. A person is deemed to own beneficially any security as to which such person has the right to acquire sole or shared voting or investment power within sixty (60) days through the conversion or exercise of any convertible security, warrant, option, or other right. More than one (1) person may be deemed to be a beneficial owner of the same securities. The percentage of beneficial ownership by any person as of a particular date is calculated by dividing the number of shares beneficially owned by such person,of capital stock which includes the numberwe may issue would require an amendment of our Articles of Incorporation

As of April 30, 2018, we had 31,209,000 shares asof Common stock issued and outstanding and 1,000,000 shares of preferred stock issued and outstanding.

Common Stock

We may issue up to which such person has the right to acquire voting or investment power within sixty (60) days, by the sum340,000,000 shares of the number of shares outstanding as of such date. Consequently, the denominator used for calculating such percentagecommon stock. Distributions may be different for each beneficial owner. Except as otherwise indicated below and under applicable community property laws, we believe thatpaid to the beneficial ownersholders of our common stock listedif, as and when authorized by our board of directors and declared by us out of assets legally available therefor. Shares of our common stock have no preemptive, conversion or redemption rights and are freely transferable, except where their transfer is restricted by federal and state securities laws or by contract. In the event of our liquidation, dissolution or winding up, each share of our common stock would be entitled to share ratably in all of our assets that are legally available for distribution after we pay all debts and other liabilities and subject to any preferential rights of holders of our preferred stock, if any preferred stock is outstanding at such time. Each share of our common stock is entitled to one vote on an as converted basis on all matters submitted to a vote of stockholders, including the election of directors. Accordingly, the holders of more than fifty percent (50%) of the total voting rights on matters presented to our common stockholders can elect all of our directors and, in such event, the holders of the remaining minority shares will not be able to elect any such directors. The vote of the holders of a majority of the holders entitled to vote on matters submitted to our common stockholders including of our Series A Preferred Shares described below is sufficient to authorize, affirm, ratify, or consent to such act or action, except as otherwise provided by law.

To date, we have sole votingpaid no cash dividends on our shares of common stock. Any future disposition of dividends will be at the discretion of our Board of directors and investment power with respectwill depend upon, among other things, our future earnings, operating and financial condition, capital requirements, and other factors. We have no present plans for future cash or stock dividends. We intend to theretain future earnings, if any, to provide funds for operation of our business.

Holders of our common stock have no preemptive rights. All outstanding shares shown.of our common stock are validly issued, fully paid and non-assessable.


Title of Class

Name/Position

Beneficial Ownership (1)

Direct

Ownership

Indirect

Ownership

Percentage

Of Class

Common

Paul Clewlow(2)

CEO President, Director

23 Barton Road, Market Bosworth, Warwickshire. CV13 0LQ

10,000,000

10,000,000

0

49.33%

Common

Carl Grant(3)

438 Charter Avenue, Canley, West Midlands, Coventry. CV4 8BD

1,020,000

1,020,000

0

5%

Common

David Lovatt(4)
18, Ufton Croft, Mount Nod, Coventry. CV5 7HJ. United Kingdom

2,020,000

2,020,000

0

9.96%

Common

Elliot Polatoff(5)

909 Plainview Ave, Far Rockaway, N.Y. 11691 USA

2,020,000

2,020,000

0

9.96%

Common

Ditto Media Solution (6)

2,100,000

2,100,000

0

10.85%

Common

All officers and directors as a Group (1 person)

10,000,000

10,000,000

0

49.33%

 

 

 

 

 

 

Preferred Shares

Paul Clewlow(2)

CEO President, Director

23 Barton Road, Market Bosworth, Warwickshire. CV13 0LQ

1,000,000

1,000,000

0

100%

Preferred Shares

All officers and directors as a Group (1 person)

1,000,000

1,000,000

0

100%


(1) This table is based upon information derived from our stock records. Applicable percentages are based upon 20,370,000All shares of common stock outstanding are validly issued, fully paid and non-assessable.

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Preferred Stock

We may issue up to 10,000,000 shares of preferred stock, par value $0.0001 per share. 1,000,000 total preferred shares are issued and outstanding as of April 30, 2018 as follows:

•     1,000,000 shares of Series A Preferred Stock. Although the dateSeries A Preferred Stock carries no dividend, distribution, liquidation or conversion rights, shares of Series A Preferred Stock issued and outstanding hold two hundred (200) votes per share. Holders of shares of Series A Preferred Stock are able to vote together with our common stockholders on all matters. Consequently, the holders of our Series A Preferred Stock are able to unilaterally control the election of our board of directors and, ultimately the direction of our Company. Additionally, so long as any shares of Series A Preferred Stock remain outstanding, we shall not, without the written consent or affirmative vote of the holders of one hundred percent (100%) of the outstanding shares of the Series A Preferred Stock, (i) amend, alter, waive, or repeal, whether by merger consolidation, combination, reclassification, or otherwise, the Articles of Incorporation, including the Certificate of Designation for Series A Preferred Stock, or our By-laws or any provisions thereof (including the adoption of a new provision thereof), and (ii) create, authorize or issue any class, series or shares of Preferred Stock or any other class of capital stock. The vote of the holders of at least one-hundred percent (100%) of the outstanding Series A Preferred Stock, voting separately as one class, shall be necessary to adopt any alteration, amendment or repeal of any provisions of this prospectus.Resolution, in addition to any other vote of stockholders required by law.


(2) On March 3, 2014,Rule 144 Restrictions on Resale

We are currently considered a “shell company” within the meaning of Rule 12b-2 under the Exchange Act, in that we issued 10,000,000 sharescurrently have nominal operations and nominal assets other than cash. Accordingly, the ability of holders of our common stock to Paul Clewlow in exchange for services rendered as our founder. We valued thesere-sell their shares at $.0001may be limited by applicable regulations. Specifically, the securities sold through this offering can only be resold through registration under the Securities Act of 1933, pursuant to Section 4(1) of the Securities Act, or an aggregateby meeting the conditions of $1,000.  July 18, 2014, we issued 1,000,000 Series A Preferred shares to Paul Clewlow in exchange for services rendered. We valued these shares at an aggregate of $1,000. The Series A Preferred shares entitle him to 200 votes per share or an aggregate of 200,000,000 votes on all matters submitted to our common stockholders. Rule 144(i) under the Securities Act.

Florida Anti-Takeover Laws

As a resultFlorida corporation, we are subject to certain anti-takeover provisions that apply to public corporations under Florida law. Section § 607.0902 (2016) of the 10,000,000 commonFlorida Act (the “Control Share Act”) applies to “control shares” of an “issuing public corporation.” The Control Share Act defines “control shares” as the shares and 1,000,000 Series A Preferred shares held by Mr. Clewlow, he holds ninety-five percent (95%)of an issuing public corporation that would entitle a person to exercise voting power within any of the votes on all matters submitted to our stockholders, and can determine the outcomefollowing ranges of all shareholder matters.voting power:


·1/5 or more but less than 1/3 of all voting power.

·1/3 or more but less than a majority of all voting power.

·A majority or more of all voting power.



(FL Stat § 607.0902(1) (2016))

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(3) On April 1, 2014, we issued 1,020,000 shares of our common stock to Carl Grant for services rendered. We valued these shares at $.005 per share orThe Control Share Act defines an aggregate of $5,100.


(4)  On March 3, 2014, we issued 1,020,000 shares of our common stock to David Lovatt for services rendered. We valued these shares at the price of $.0001 per share or an aggregate of $102.  On April 3, 2014, we sold 1,000,000 shares of our common stock to Elliot Polatoff for the price of $.05 per share or an aggregate of $5,000.


(5) On March 3, 2014, we issued 1,020,000 shares of common stock to Elliot Polatoff for services rendered. We valued these shares at the price of $.0001 per share or an aggregate of $102.  On April 3, 2014, we sold 1,000,000 shares of our common stock to David Lovatt for the price of $.005 per share or an aggregate of $5,000.


(6) )  Ditto Media Solutionsissuing public corporation as a corporation, other than a depository institution, that is a formed pursuant toorganized under the laws of the United Kingdomstate of Florida and that has all of the following:

·100 or more shareholders.

·Its principal place of business, its principal office, or substantial assets in the state of Florida.

Either:

·more than 10% of its shareholders residing in the state of Florida;

·more than 10% of its shares owned by Florida residents; or

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·1,000 shareholders residing in the state of Florida.

(FL Stat § 607.0902(4)(a) (2016))

Any person who proposes to make or has made a control share acquisition (as defined in the Control Share Act) may deliver an acquiring person statement to the public corporation. The statement must contain:

·The identity of the acquiring person and each other member of any group of which the person belongs to.

·A statement that the acquisition statement is given under the Control Share Act.

·The number of shares of the public corporation owned by the acquiring person and each other member of the group.

·The range of voting power under which the control share acquisition falls, if completed.

If the control share acquisition has not taken place:

·a description in reasonable detail of the proposed control share acquisition; and

·a statement by the acquiring person stating that the acquisition is not contrary to law and that the acquiring person has the financial capacity to make the proposed control share acquisition.

(FL Stat § 607.0902(6) (2016))

After the acquiring person statement has been delivered to the corporation, the corporation must call a meeting of the shareholders to vote on the proposed acquisition. The proposed acquisition must be approved by each voting group entitled to vote, voting separately, by a majority of the votes entitled to be cast by that group (excluding all interested shares). (FL Stat § 607.0902(8) (2016))

INTEREST OF NAMED EXPERTS

The financial statements for the fiscal years ended April 30, 2017 and 2016 included in this prospectus have been audited by Michael T. Studer CPA P.C. independent registered public accounting firm, to the extent and for the periods set forth in its report and are incorporated herein in reliance upon such report given upon the authority of said firm as experts in auditing and accounting.

The legality of the shares offered under this registration statement is controlled fifty percent (50%)being passed upon by Jonathan Spruce and fifty percent (50%) by his spouse, Rebecca Spruce. On July 21, 2014, we issued 2,100,000John D. Thomas P.C., an owner of 800,000 shares to Ditto Solutions for services rendered to us. We valued these shares at $.0001 per share or an aggregate of $100.our capital stock. John D. Thomas is the principal of John D. Thomas P.C.


DISCLOSURE OF COMMISSION POSITION ON INDEMNIFICATION FOR SECURITIES LIABILITIES


Our Bylaws, subject to the provisions of Florida Law, contain provisions which allow the corporation to indemnify any person against liabilities and other expenses incurred as the result of defending or administering any pending or anticipated legal issue in connection with service to us if it is determined that person acted in good faith and in a manner which he reasonably believed was in the best interest of the corporation. Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to our directors, officers and controlling persons, we have 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.


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DESCRIPTION OF BUSINESSSBUSINESS


Organization Within The Last Five Years


We were incorporated in the state of Florida on March 3, 2014, to be a U.S. distributor of products for ExactRep Limited, a company located in the U.K that designs and creates aftermarket motorcycle add on parts and accessories for motorcycle enthusiast seeking to customize their motorcycle. Our Chief Executive Officer has been the accountant for ExactRep for more than ten (10) years.


Our principal executive office is located at 23 Barton Road, Market Bosworth, Warwickshire, England CV13 0LQ, and our telephone number is (407) 745-1751. Our corporate website is located at www.arazuinc.com and or retail website is located at www.replicamotorcycleparts.com. Information contained in, or accessible through, our website does not constitute part of this prospectus.


SinceWe have not been involved in a bankruptcy receivership or similar proceeding. Additionally, we have not been involved in a reclassification, merger, consolidation, or purchase or sale of a significant amount of assets not in the ordinary course of business.

From our inception on March 3, 2014, throughuntil the present, we have had limited operating activities. During the nine months ended January 31, 2018 and 2017, we had revenues of $9,661 and $8,459, respectively. During the fiscal years ending April 30, 2014,2017 and from March 31, 2014 (inception) to September 2, 2014,2016, we raised an aggregate of $10,000 and $57,500 from the sale of our common stock. Since our inception through April 30, 2014 and from March 3, 2014 (inception) to September 2, 2014, we generatedhad revenues of $15,000$8,694 and $45,000. From March 3, 2014 (inception) to April 30, 2014, we have a net loss of $44,177.  We have not yet generated revenues from the sale of our products.$9,035, respectively.


Our independent registered public accounting firm has issued an audit opinion for our Company which includes an explanatory paragraph expressing substantial doubt as to our ability to continue as a going concern.




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Since our incorporation, we have not made any significant purchase or sale of assets. We do not own physical properties. We have never declared bankruptcy, have never been in receivership, and have never been involved in any legal action or proceedings. Additionally,Since incorporation, we have not been involved in a reclassification, merger, consolidation, ormade any significant purchase or sale of a significant amount of assetsassets. We do not in the ordinary course of business.own physical properties.


We are 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 we have a specific business plan or purpose. We have not had preliminary contact or discussions with, nor do we have any present plans, proposals, arrangements or understandings with, any representatives of the owners of any business or company regarding the possibility of an acquisition or merger.


About UsOur Business


We are the U.S. distributor for ExactRep Limited, a U.K. company engaged in designing, developing, manufacturing and commercializing aftermarket motorcycle parts, customized add-ons and accessories. ExactRep sells products directly to consumers in Europe, Thailand, Japan, Russia, South America, and the U.S.

We intend to target sales of our products to motorcycle enthusiasts seeking: (i) aftermarket customized add onadd-on motorcycle parts, and accessories with innovative styling and custom features, and (ii) other motorcycle related products such as clothing and backpacks. We intend to sell these products through our retail website. To date, we have no generated revenues from the sale of our products.


Since our formation on March 3, 2014, ourInitially, the Company’s sole executive officer Paul Clewlow who resides in the United Kingdom, will manage the Company’s day-to-day operations which initially will be primarily online. In addition, the Company will utilize the services of (4) part-time employees and various contractors who assist Mr. Clewlow in the United States and the United Kingdom.

Our operations to date have been devoted primarily to start-up and development activities, which include: (i) foundingformation of the company;Company; (ii) developingdevelopment of our business plan; (iii) identifying the portfolio of aftermarket motorcycle related products we will sell; (iv) identifying the methods of shipment and delivery methods for the products; (v) negotiating and entering into an agreement with ExactRep to sell its products in the U.S.; (vi) creating the content and design for our corporate and retail websites; (vii) creating and developing the branding campaign for the ExactRep products we will sell; and (viii) registering as a presenter at the American International Motorcycle Expo in Orlando, Florida.


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Our Strategy


Our goal is to become a recognized distributor of aftermarket motorcycle customized parts and accessories, in the U.S. In order to accomplish our business objectives, we plan to execute the following strategies:

·

·Commercialize the ExactRep Brand Name. We plan to develop recognition of ExactRep Motorcycle Parts brand as a reliable source of aftermarket add on customized motorcycle parts and accessories in the U.S. We introduced our first product catalogue in October 2014 which was available through our retail website;

Commercialize the ExactRep Brand Name.We plan to develop recognition of ExactRep Motorcycle Parts brand as a reliable source of aftermarket add on customized motorcycle parts and accessories in the U.S. We anticipate introducing our first product catalogue in October 2014 which will be available through our retail website.

·Develop Sales and Marketing. We plan to focus our sales and marketing efforts towards developing our retail products and website, building brand awareness and identifying strategic marketing opportunities, such as our plans to partner with one of the East Coasts largest Motorcycle Retail spaces and to develop our own brand of motorcycle parts through their store. We have also exhibited at the American International Motorcycles Expo in Orlando, Florida during October 2014 and intend to present their again in 2018. Furthermore, our intentions are to participate in leading consumer and dealer trade shows and motorcycle rallies where our products can be displayed and engage in other advertising activities to develop our brand name.

·

·Become a Reliable Internet Distribution Source of Novelty Motorcycle Parts and Accessories. We will develop a trusted, reliable and user friendly retail website where consumers can purchase their motorcycle products and accessories online by browsing an aesthetically appealing product catalogue.

Develop Sales and Marketing. We plan to focus our sales and marketing efforts towards developing our retail products and website, building brand awareness and identifying strategic marketing opportunities, such as our current status as a presenter at the American International Motorcycles Expo in Orlando, Florida during October 2014. We also intend to participate in leading consumer and dealer trade shows and motorcycle rallies where our products can be displayed and engage in other advertising activities to develop our brand name.

·

Become a Reliable Internet Distribution Source of Novelty Motorcycle Parts and Accessories. We will develop a trusted, reliable and user friendly retail website where consumers can purchase their motorcycle products and accessories online by browsing an aesthetically appealing product catalogue.




33



Our Agreement with ExactRep


On March 16, 2014 and as amended on July 21. 2014, we entered into an agreement with ExactRep Limited, a company formed under the laws of the U.K., to become the exclusive distributor of their products in the U.S. for a period of ten (10) years. ExactRep iswas obligated to pay us a monthly fee of $15,000 for a period of six (6) months to develop the U.S. branding campaign, of which $45,000 has beenwas paid. After the initial periodIn August 2014, we moved to a model of six (6) months, we will market and distribute ExactRep’s productsgreater revenue share in exchange for fifteen percent (15%) of all product sales. foregoing the final $45,000.


We commencedcompleted development of our corporate website atwww.Arazuinc.com in MarchMay of 2013.2015 and continue to update our shareholders through this corporate web space. Our corporateretail website, willwhich can be found at www.motorcyclespecialistparts.com is a streamlined and informative site where the motorcycle enthusiast and our consumer will beconsumers are able to find information about the motorcycle aftermarket parts industry, and review product specs, details, and photos. This site will essentially serveserves as a “nuts and bolts” information source on about the industry and our products.  Our corporate website is functional but remains under development and we anticipate completion by September 2014.

We will sell our retail products at our website atwww.replicamotorcycleparts.com. www.motorcyclespecialistparts.com. We plan to provide website visitors with information about the motorcycle industry and trends, ExactRep brand, and our products. Our plan is to further organize and classify information about the motorcycle industry, our products, and ExactRep brand by separating information between our corporate website and retail website, in order to pull in more web traffic and widen our sales demographics. Both sites will send traffic to and from each other, increasing our overall web traffic. This provides our customers with the opportunity to investigate our company and products to the extent and depth they choose to, as opposed to presenting it all in a single large site. We will monitor visitors to our sites using Google Analytics. These statistics will show traffic and visitor information. We will incorporate various popular social media pages and sharing abilities to increase our awareness and market penetration. We intend to “like” and “share” social media pages of other motorcycle personalities, enthusiast groups, and manufacturer pages for the products we sell.


Each product we sell on our retail website will be selected by Paul Clewlow, with the assistance of ExactRep’s staff. Our products are and in the future will continue to be identified by Mr. Clewlow based upon suggestions from ExactRep. The site will feature our logo and slogan along with a product catalogue and shopping cart.  We expect the site to be operational by October 2014.


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Our website will offercurrently offers approximately 100 products and willwhich include aluminium,aluminum, chrome and other aesthetic add on parts and accessories for Yamaha, Kawasaki, Suzuki, Harley Davidson, and Triumph motorcycles.


·Exhausts

Exhausts

·Headlights & Brakelights

Headlights & Brakelights

·Engine Covers

Engine Covers

·Mirrors

Mirrors

·Hubcaps and wheel covers

Hubcaps and wheel covers

·Motorcycle Seats & Covers

Motorcycle Seats & Covers

·Kickstands

Kickstands

·Handlebars & Handlebar Covers

Handlebars & Handlebar Covers

·Fuel tanks

Fuel tanks

·Fog Lamps

Fog Lamps

·Tuning Kits

Tuning Kits

·Clutch Plates

Clutch Plates

·Motorcycle Racks/Sissy bags

Motorcycle Racks/Sissy bags

·Fork Springs

Fork Springs

·Exhaust & Exhaust Pipe Covers

Exhaust & Exhaust Pipe Covers

·Radiator Covers

Radiator Covers




34



Payment


All purchases through our retail website will be processed through Paypal or Mastercard, Visa, or American Express.


Shipping


Customers placing orders on our retail website, pay shipping costs of the item. Retail orders will be shipped within fifteen (15) days from ExactRep’s facility in the United Kingdom to the customer using DHL, Federal Express (“FedEx”), or other established freight shipping services.


Branding and Marketing


Our core marketing strategy is to brand ExactRep’s“ExactRep’s Replica PartsParts” brand for those seeking aftermarket add-on parts and to improve the "personalized look" of their motorcycle. We believe that our marketing mix of internet, social media, print, and event promotions providing coupons along with sample products is an optimal strategy to generate product sales and marketing.

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Our online marketing efforts are designed to attract visitors to our websites, convert visitors into purchasing customers and encourage repeat purchases among our existing customer base. By populating our websites with compelling and interesting pictures and compelling content we encourage our shoppers to share our brand among their social networks


We will use a variety of online marketing methods to attract visitors, including:


·paid search advertising

·

·search engine optimization

paid search advertising

·affiliate programs

·

·e-mail marketing

search engine optimization

·inclusion in online shopping engines

·

·in-site promotions for discounted purchases of our products

affiliate programs

·cross-selling opportunities by displaying complementary and related products available for sale throughout the purchasing process.

·

·targeted e-mails about specific promotions, to increase customer awareness of our products.

e-mail marketing

·Social media memberships and identifying with groups of general motorcycle and motorcycle customization enthusiasts.

·

inclusion in online shopping engines

·

in-site promotions for discounted purchases of our products  

·

cross-selling opportunities by displaying complementary and related products available for sale throughout the purchasing process.

·

targeted e-mails about specific promotions, to increase customer awareness of our products.

·

Social media memberships and identifying with groups of general motorcycle and motorcycle customization enthusiasts.


The development of our branding and marketing program is overseen by our sole officer and director, Paul Clewlow who has worked with ExactRep as their accountant for the past five (5)eight (8) years. Mr. Clewlow developed the slogan “Bringing U.K. Markets Closer to America” which will be used in the marketing of the products we sell.




35



Agreement with Ditto Media Solutions & Jon Spruce


We entered into an agreement dated July 14, 2014, with Ditto Media Solutions a company formed under the laws of the United Kingdom to develop our retail website in exchange for 2,100,000 shares of our common stock.


·

OurThe agreement covered the design, development and operation of our website and online retail website will have the following features:

·

Createarm. The online shop for users to purchase itemswas completed in 2015 and pay online by Paypal or credit cardhas been processing orders and payments since then.

·

Create social media hooks with Facebook, Linkedin, Google+, etc.

·

Customer account creation and order tracking integration

·

Capability to notify customersJon Spruce, the director of special offers

·

Facebook page with our brands

·

Twitter feeds for our brands

·

Privacy policy

·

Contact Us 

·

About Us


On or before July 31, 2014, Ditto Media was subsequently contracted directly to completehandle the logo forday to day operation of the ExactRep Replica Parts brand which is complete.


On or before August 30, 2014, Ditto Media was required to completeonline retail operation in May 2017. This included updating the trial version of our website with functionality to end users. The anticipated completion date is expected to be September 5, 2014.the stock levels of products, processing incoming orders, ensuring goods are dispatched in a timely manner and ensuring that invoices from suppliers are correct.


On or before September 30, 2014, Ditto Media must complete the ‘back-end’ management of the website whereby we are able to manage inventory and pricing.


On or before October 31, 2014, Ditto Media must complete the last phase of the website adding ‘user self-management’ features and features allowing customer account creation and email alerts for product shipment and tracking, printing return labels and order history.


Customers


We believe the customers for our replica motorcycle parts will be males between the ages of 30 and 55 who earn between $25,000 and $85,000 and reside in the United States based upon research performed by Paul Clewlow, our sole officer and director. Mr. Clewlow will conductconducts research on the internet, and reviewuses sales andreviews, as well as other information of ExactRep, to determine which products we will sell.


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Return and Refund Policy


We will exchange any product found to be defective. A written exchange request must be submitted when a customer returns defective or damaged product. Purchasers can apply for refund in full amount of purchased products within ten (10) days of purchase. If the purchasers are not satisfied with our products for any reason, they can return products and request for an exchange. All shipping fees for product exchanges or returns must be paid by purchaser.


Employees: Market


The U.S. motorcycle market is approximately $21.5 billion in 2017. We operate in the aftermarket parts market, a subset of the U.S. motorcycle market. The following are key industry highlights:

Large and Stable Market Opportunity

According to Powersports Business, demand for aftermarket motorcycle parts has increased steadily since 2002 and is driven by the dramatic increase in ridership in the United States.

Extended Life of Motorcycles

We believe that improvements in technology and overall motorcycle quality have extended the useful life of motorcycles, which has further increased demand for aftermarket products due to their attractive value proposition.

Increased Usage of Aftermarket Products

Usage of aftermarket products has experienced steady growth over the last decade. We believe there are several industry dynamics that have contributed to the demand for aftermarket products, including increased ridership, favorable price points relative to OEM replacement products, shorter part delivery time and higher profit margins for the repair shops that utilize aftermarket products.

Due to the extreme growth in the aftermarket motorcycle parts industry, a significant number of start-ups are getting into the business. However, most lack the relationships, experience and resources to be successful. One of the most daunting challenges any company faces is being able to manufacture, produce and effectively market their products for their product sales initiatives.

Full-time Employees and Consultants


We have a total of one (1) full-time employee, who is our sole officer and director, Paul Clewlow, who oversees our day to day operations.




36



Part-time Employees


We also use the services of fouroperations, and (4) part timepart-time employees who assist us on an as needed basis.

None of our employees are employed under a collective bargaining agreement. We believe we have an excellent relationship with our employees and consultants.independent contractors.


Material Consultants


David Lovatt-Consultant


On March 1, 2014, we entered into an agreement with David Lovatt to provide us with consulting services. In accordance to the agreement, we issued Mr. Lovatt 1,020,000 shares of common stock and agreed to pay Mr. Lovatt $5,000 per month during the term of the agreement. Mr. Lovatt services consist of assisting us with website design and development, business plan development, marketing, and software and project management for our websites. His services include development of our online marketing strategy for ExactRep products.


Mr. Lovatt also created our initial corporate website where visitors to the site can find basic information about us. Mr. Lovatt assisted us with the development of our logos which were completed in May of 2014.


During the period from March 3, 2014 (inception) to September 2, 2014, we paid cash to Mr. Lovatt of $9,100. The agreement has a term of seven (7) months and as such since expires on September 30, 2014.  The remaining amounts due under the agreement have accrued.


Since October 4, 2013, David Lovatt has served as the Chief Executive Officer and Director of Pocket Games, Inc., an SEC reporting company. From November 10, 2010, to December 1, 2013. Mr. Lovatt was the chief executive officer of DNA Dynamics, Inc.


Elliot Polatoff-Consultant


On March 1, 2014, we entered into an agreement with Elliott Polatoff. In accordance to the agreement, we issued 1,020,000 shares of our common stock to Mr. Polatoff and agreed to pay him $5,000 per month during the term of the agreement. Mr. Polatoff’s services consist of advising us on U.S. operations, staffing, locations and project management. During the period from March 3, 2014 (inception) to September 2, 2014, we paid cash to Mr. Polatoff of $10,000. The remaining amounts due under the agreement have accrued.  The agreement has a term of seven (7) months and as such expires on September 30, 2014.


To date, Mr. Polatoff has:


in March 2013, assisted us in selecting our initial corporate structure and opening our bank accounts;

in April of 2014, interviewed sales staff on Long Island, NY;

during May of 2014, created database of 150 motorcycle dealerships in the U.S.; and

assisted management in defining the scope of a report in the US motorcycle markets and locating qualified persons to develop since, the research report.


Since October 4, 2013, Elliot Polatoff has served as the treasurer and secretary of Pocket Games, Inc., an SEC reporting company. From December 1, 2012 until May 1, 2013, Mr. Polatoff was the office manager of Five Towns Neurology. From June 2012, until October 2012, Mr. Polatoff was the residential manager of Human Care Services. From September 2007 until September 2009, Mr. Polatoff was the Chief Executive Officer of Party Source, Inc., an entertainment company.




37



Carl Grant- Consultant


On April 1, 2014, we entered into an agreement with Carl Grant. The agreement has a term of six (6) months and expires on September 30, 2014. Mr. Grant’s services include due diligence and assessment of the motorcycle parts. We issued 1,020,000 of common shares to Mr. Grant in exchange for his services.


We intend to hire additional employees and independent contractors on an as needed basis.


Product LiabilityInsurance


Given the nature of motorcycle products, we expect to encounter product liability claims from time to time as a retail supplier.  We do not maintain any insurance and do not intend to maintain insurance in the future. Because we do not have any insurance, if we are made a party of a legal action, we may not have sufficient funds to defend the litigation. If that occurs a judgment could be rendered against us that could cause us to cease operations.


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Location


Our principal executive offices are made available by Paul Clewlow, our Chief Executive Officer. To date, we have not paid any rent to Mr. Clewlow for our 500 square foot office located at The Office, 23 Barton Road, Market Bosworth, Warwickshire, England CV13 0LQ. We0LQ U.K. Additionally, Mr. Clewlow provides all office related equipment and communication lines. Following the completion of this Offering, we intend to find an alternative office facility and enter a long-term office lease our offices at this location from our sole officer and director, Paul Clewlow pursuant to a written lease which expires on March 3, 2015. We occupy approximately 400 square feet at this location in exchange for $250 per month. To date, we have not paid rents and all amounts have accrued.prevailing market rates.  


Government Regulation


We will be required to comply with all regulations, rules and directives of governmental authorities and agencies in any jurisdiction which we would conduct activities in the future. WeAs of now there are subject to environmentalno required government approvals present that we need approval from or any existing government regulation as it affects certain of the products we sell that may vary from state to state. Should we fail to comply with these regulations,on our results of operations could be adversely affected.business.


Patents and Trademarks


We currently have not obtained any copyrights, patents,patents.

Competitive Business Conditions

The aftermarket motorcycle parts industry is highly competitive and rapidly changing. Our ability to compete depends upon many factors within and outside our control, including the timely development and introduction of aftermarket products and enhancements, their functionality, performance, reliability, our customer service and support and marketing efforts. Due to the relatively low barriers to entry in our industry, we expect additional competition from other emerging companies. Many of our existing and potential competitors are substantially larger than us and have significantly greater financial, technical and marketing resources. As a result, they may be able to respond more quickly to fashion changes and have greater resources for the development and promotion of their products. There can be no assurance that we will be able to compete successfully against current or trademarks. We dofuture competitors or that competitive pressure will not anticipate filing any copyright or trademark applications related to any assets over the next twelve (12) months.have a material adverse effect on our business, operating results and financial condition.


Government Approvals


We are not required to obtain governmental approval of our products.


Legal Proceedings


We are not currently a party to any legal proceedings, and we are not aware of any pending or potential legal actions.


Sources and Availability of Raw Materials


ExactRep is the only supplier of the products we sell. The raw materials and components used by ExactRep to make our products are available from a variety of sources.  ExactRep's policy has been to identify at least three sources of supply for each component so that it may switch promptly to the alternative supplier should the need arise. The inability to obtain adequate supplies ofWe do not use raw materials in a timely manner or a material increase in the price of the raw materials used to create the products we sell could have a material adverse effect on our business, financial condition and results of operations.business.




38



Backlog of Orders


We do not have ano backlog of orders.


SeasonalitySeasonal Aspect of our Business


We believeanticipate a fluctuation for demand of our business is subject toproducts affected by seasonal fluctuations.factors. We may experience lower sales of parts in winter months when inclement weather and hazardous road conditions typically limitanticipate a higher demand during the use of motorcycles. Motorcycle parts and performance parts and accessories have historically experienced higher sales in the summer months whenholiday season for consumers have more time to undertake elective projects to maintain and enhance the performance of their motorcycles and the warmer weather during that time is conducive for such projects. Seasonality trends could have a material impact ongifting our financial condition and results of operations in the future.products.


Status of any Publicly Announced New Product or Service.Service


We do not have any publicly announced new product or service.


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Table of Contents

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITIONAND RESULTS OF OPERATIONOPERATIONS


You should read the following discussion of our financial condition and results of operations in conjunction with financial statements and notes thereto included elsewhere in this prospectus. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere in this prospectus, particularly in “Risk Factors”.Overview


This section of the prospectus 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 that, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this prospectus. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.


Our financial statements are stated in United States Dollars (USD or US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. All references to “common shares” refer to the common shares in our capital stock.


Overview


We were incorporated inare an emerging growth aftermarket motorcycle parts seller and distributor and the state of Florida on March 3, 2014, to be a U.S. distributor of products for ExactRep Limited, a company located in the U.K that designs and creates aftermarket motorcycle add onadd-on parts and accessories for motorcycle enthusiastenthusiasts seeking to customize their motorcycle.


Our principal executive office is located at 23 Barton Road, Market Bosworth, Warwickshire, England CV13 0LQ, and our telephone number is (407) 745-1751. Our corporate website is located at www.arazuinc.com and or retail website is located at www.replicamotorcycleparts.com.


Information contained in, or accessible through, our website does not constitute partsources of this prospectus.




39



Since our inception on March 3, 2014, through April 30, 2014, and since our inception on March 3, 2014, through September 2, 2014, we raised an aggregate of $10,000 and $57,500revenue are expected to be from the salesales and distribution of our common stock, respectively. Since our inception through April 30, 2014motorcycle parts. General and since our inception through September 2, 2014 we generated revenuesadministrative expenses have been comprised of $15,000administrative wages and $45,000. From March 3, 2014 (inception) to April 30, 2014,benefits; occupancy and office expenses; outside legal, accounting and other professional fees; travel and other miscellaneous office and administrative expenses. Selling and marketing expenses include selling/marketing wages and benefits, advertising and promotional expenses, as well as travel and other miscellaneous related expenses.

Because we have a netincurred losses, income tax expenses are immaterial. No tax benefits have been booked related to operating loss carryforwards, given our uncertainty of $44,177.being able to utilize such loss carryforwards in future years. We have not yet generated revenues fromanticipate incurring additional losses during the sale of our products.coming year.


Our independent registered public accounting firm has issued an audit opinion for our Company which includes an explanatory paragraph expressing substantial doubt as to our ability to continue as a going concern.


Results of Operations


Since our formation on March 3, 2014, we our operations include: (i) founding the company; (ii) developing our business plan; (iii) identifying the portfolio of aftermarket motorcycle related products we will sell; (iv) identifying the methods of shipment and delivery methods for the products; (v) negotiating and entering into an agreement with ExactRep to sell its products in the U.S.; (vi) creating the content and design for our corporate and retail websites; (vii) creating and developing the branding campaign for the ExactRep products we will sell; and (viii) registering as a presenter at the American International Motorcycle Expo in Orlando, Florida.

Paul Clewlow, our sole officer and director will overseehas overseen all aspects of our planned operations.  


We will requireoperations to date, including the services of third parties to complete the developmental plan. We entered into an agreement dated July 14, 2014, withcurrent development by Ditto Media Solutions (“Ditto Media”) a company formed under the laws of the United Kingdom to develop our retail website in exchange for 2,100,000 shares of our common stock.


Ditto is developing a website with the following features:


·

Create online shop for users to purchase items and pay online by Paypal or credit card

·

Create social media hooks with Facebook, Linkedin, Google+, etc.

·

Customer account creation and order tracking integration

·

Capability to notify customers of special offers

·

Facebook page with our brands

·

Twitter feeds for our brands

·

Privacy policy

·

Contact Us 

·

About Us


On or before July 31, 2014, Ditto Media was to complete the logo for the ExactRep Replica Parts brand which is complete. 


On or before August 30, 2014, Ditto Media was required to complete the trial version of our website with functionality to end users. This was completed on September 2, 2014.


On or before September 30, 2014, Ditto Media must complete the ‘back-end’ management of the website whereby we are able to manage inventory, and pricing.




40



On or before October 31, 2014, Ditto Media must complete the last phase of theCompany’s ecommerce website adding ‘user self-management’ features and features allowing customer account creation and email alerts for product shipment and tracking, printing return labels and order history.


Development / Milestone

Percentage

Of Milestone

Complete

Anticipated Additional

Cost to be paid by

Arazu

Completion Date/Anticipated

Completion Date

Acquire domain name for Arazu

100

$200

March 5, 2014

Set up basic website for Arazu

100

$350

March 7, 2014

Acquire domain name for Motorcycle resale agreement

100

$200

June 5, 2014

Set up website and online shop in basic form

100

$0

July 15, 2014

Identify parts to be included in online shop

100

$0

July 15, 2014

Complete brand Logo

100

$0

July 15, 2014

Populate online shop with products

75

$0

September 5, 2014

Identify payment provider to process orders

50

$0

September 12, 2014

Launch online shop in test mode

90

$0

September 5,  2014

Build Facebook online presence

25

$0

September 30, 2014

Link Facebook presence to online shop

0

$0

September 30, 2014

Identify and market to Facebook users

0

$0

September 30,  2014

Create email marketing campaign to existing US clients

0

$0 

September 30, 2014

Open online shop to take orders and tracking etc

0

$0

October 31, 2014

Development / MilestonePercentage Of Milestone CompleteAnticipated Additional Cost to be paid by ArazuCompletion Date/Anticipated Completion Date
Setup social media automation tool (Facebook, Twitter, Instagram)0$0Friday, 5 January 18
Setup analytics and tracking for social media integration tool0$0Friday, 5 January 18
Setup email marketing campaign manager tool0$0Friday, 5 January 18
Setup analytics and tracking for email marketing schedule0$0Friday, 5 January 18
Setup analytics and tracking of SEO improvements0$0Friday, 5 January 18
Schedule weekly product social media posts (single product with link to website) for Q10$0Monday, 8 January 18
Setup monthly newsletter content calendar for 2018 to existing US mailing list0$0Monday, 8 January 18
Review & update product catalogue for availability, pricing, and inventory (Q1)0$0Monday, 8 January 18
Review performance of monthly newsletter and adjust schedule / content0$0Wednesday, 31 January 18
Review current SEO ranking and health (on page / off page)0$0Monday, 5 March 18
Create backlog of improvements to improve SEO score for natural search results0$0Wednesday, 7 March 18
Implement backlog of changes to SEO for H10$0Thursday, 15 March 18
Review performance of social media posts over Q10$0Friday, 6 April 18


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Schedule weekly product social media posts (single product with link to website) for Q20$0Friday, 6 April 18
Review performance of social media posts over Q20$0Friday, 6 July 18
Review & update product catalogue for availability, pricing, and inventory (Q2)0$0Monday, 9 July 18
Review performance of SEO changes over H10$0Monday, 30 July 18
Implement backlog of changes to SEO for H20$0Friday, 3 August 18
Schedule weekly product social media posts (single product with link to website) for Q30$0Tuesday, 7 August 18
Review & update product catalogue for availability, pricing, and inventory (Q3)0$0 Friday, 5 October 18
Review performance of social media posts over Q30$0Friday, 5 October 18
Schedule weekly product social media posts (single product with link to website) for Q40$0Friday, 5 October 18
Review performance of SEO changes over H20$0Friday, 14 December 18
Review & update product catalogue for availability, pricing, and inventory (Q4)0$0Friday, 4 January 19
Review performance of social media posts over Q40$0Friday, 4 January 19

Meeting the milestones above is dependent upon us raising sufficient capital through placement of our common stock or issuance of debt securities. We have not located investors to provide us with the capital required to meet these milestones and we may not be successful in locating investors to provide us with capital. If we are unable to obtain financing, we will not meet the milestones above and may have to suspend or cease operations.


From inception on March 3 2014, through April 30, 2014, we incurred expenses of approximately $59,177 on costs and expenses including compensation expense of $21,000, professional fees of $15,100, professional fees – related parties of $20,204, and general and administrative expenses of $2,873. We expect operating expenses to increase as we become a fully reporting company.


All cash held by us is the result of the sale of common stock to 16 accredited, non-affiliated investors.


As of September 2, 2014, we had cash on hand of approximately $4,127 which is sufficient to pay for our operating costs for approximately one month. If we are unable to generate sufficient revenues or raise additional monies to fund our operations we will be unable to complete development of our products and may be forced to cease operations.


We have generated minimal revenues from our operations. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including the financial risks associated with the limited capital resources currently available to us for the implementation of our business strategies. (See “Risk Factors”). To become profitable and competitive, we must develop the business plan and execute the plan. Our management will attempt to secure financing through various means including borrowing and investment from institutions and private individuals.


Since inception, the majority of our time has been spent on organizational matters and development of our retail website.




41



Our results of operations are summarized below:


 

  

March 3, 2014 (Inception) to 30 April 2014

(Audited)

  

  

 

Revenue

  

$

15,000

 

 

 

Operating Expense

  

$

59,177

 

 

 

Net Loss

  

$

(44,177)

 

 

 

Net Loss per Share - Basic and Diluted

  

$

(0.00)

 

 

 

Weighted Average Number Shares Outstanding –
Basic and Diluted

  

  

13,507,797

 

 

 


Liquidity and Capital Resources


From March 3, 2014 (inception) through 30th April 2014, and September 2, 2014, we generated revenues of $15,000 and $45,000 from our business operations. Since our inception through April 2014, and September 2, 2014, we raised $10,000 and $57,500, respectively from the sale of our common shares to investors for cash consideration.


Our current cash on hand as of September 2, 2014 was approximately $4,127.  Our operating costs will increase by approximately $5,000 per month when this registration statement is declared effective because of the costs of SEC reporting.


From Inception (March 3, 2014) to April 30, 2014, we incurred $59,177 in operating expenses. As of April 30, 2014, we had2017, our working capital deficit of $408,512 was comprised of total current assets of $157 and total current liabilities of $42,923.$408,669. We continued to consume working capital in the pursuit of our business plan utilizing proceeds from advances from related parties.


We have a net loss and net cash used in operations of $44,177 and $9,950, respectively, fordo not believe that the period from March 3, 2014 (inception) to April 30, 2014 and a stockholders' deficit and an accumulated deficit of $27,873 and $44,177, respectively.


We currently have no external sources of liquidity such as arrangements with credit institutions or off-balance sheet arrangements thatCompany’s current capital resources will have or are reasonably likely to have a current or future effect on our financial condition or immediate access to capital.


We are dependent on the sale of our securitiesbe sufficient to fund our operations,its operating activity and will remain so until we generate sufficient revenues to pay for our operating costs.other capital resource demands during the next year. Our officers and directors have made no written commitments with respect to providing a source of liquidity in the form of cash advances, loans and/or financial guarantees.


If we are unable to raise the funds we will seek alternative financing through means such as borrowings from institutions or private individuals. There can be no assurance that we will be able to raise the capital we need for our operations from the sale of our securities. We have not located any sources for these funds and may not be able to do so in the future. We expect that we will seek additional financing in the future. However, we may not be able to obtain additional capital or generate sufficient revenues to fund our operations. If we are unsuccessful at raising sufficient funds, for whatever reason, to fund our operations, we may be forced to cease operations. If we fail to raise funds we expect that we will be required to seek protection from creditors under applicable bankruptcy laws.


Our independent registered public accounting firm has expressed doubt about our ability to continue as a going concern and believes that our ability is dependent oncontingent upon our ability to implementobtain capital through the sale of equity or issuance of debt, and ultimately attaining profitable operations. We expect that any financing we receive will be similar to what we have heretofore received over the previous two years to enable us to operate. We cannot assure you that we will be able to successfully complete any of these activities.

The independent registered public accounting firm’s report on our financial statements as of April 30, 2017, includes a “going concern” explanatory paragraph that describes substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to the factors prompting the explanatory paragraph are discussed below and also in Note 1b. to the financial statements.

We are presently seeking additional debt and equity financing to provide sufficient funds for payment of obligations incurred and to fund our ongoing business plan.

We expect to generate revenue pursuant to our new business plan raiseand expect to rely on equity and debt financings to fund our capital resources requirements. We will be dependent on additional debt and generate revenues. See Note 2equity financing to develop our new business but we cannot assure you that any such financings will be available or will otherwise be made on terms acceptable to us, or that our present shareholders might suffer substantial dilution as a result.

Net cash used in operating activities was $191 during the fiscal year ended April 30, 2017, with a net loss of $147,934, stock based compensation of $22,500, an increase in accounts payable and accrued liabilities of $10,543 and an increase in accrued officer compensation of $114,700.

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During the fiscal year ended April 30, 2017, the Company had no net cash flows from investing activities.

During the fiscal year ended April 30, 2017, the Company had no net cash flows from financing activities.

Results of Operations

Fiscal Years ended April 30, 2017 and 2016

Revenues. Net revenues for the fiscal years ended April 30, 2017 and 2016 were $8,694 and $9,035, respectively.

Cost of Sales. Cost of sales for the fiscal years ended April 30, 2017 and 2016 were $2,612 and $8,709, respectively.

Officer compensation.Officer compensation for the fiscal years ended April 30, 2017 and 2016 were $120,000 and $120,000, respectively.

Consulting fees.Consulting fees for the fiscal years ended April 30, 2017 and 2016 were $6,500 and $-0-, respectively.

Professional fees. Professional fees for the fiscal years ended April 30, 2017 and 2016 were $17,600 and $2,000, respectively. The Company expects professional and accounting fees to increase in the future due to the fees associated with the Company filings with the Securities and Exchange Commission.

Other general and administrative expenses.Total other general and administrative expenses for the fiscal years ended April 30, 2017 and 2016 were $4,113 and $2,540, respectively.

Other income (expenses).Total other expenses for the fiscal years ended April 30, 2017 and 2016 were $5,803 and $3,417, respectively. These expenses consist solely of interest expenses on notes payable.

Net Income (Loss).Net loss for the fiscal year ended April 30, 2017 was $147,934 compared to net loss of $127,631 for the fiscal year ended April 30, 2016.

Nine Months Ended January 31, 2018 and 2017

Revenues. Net revenues for the nine months ended January 31, 2018 and 2017 were $9,661 and $8,459, respectively.

Cost of Sales. Cost of sales for the nine months ended January 31, 2018 and 2017 were $7,901 and $1,646, respectively.

Officer compensation.Officer compensation for the nine months ended January 31, 2018 and 2017 were $190,000 and $90,000, respectively. Officer compensation for the nine months ended January 31, 2018 included stock based compensation of $100,000.

Consulting fees. Consulting fees for the nine months ended January 31, 2018 and 2017 were $173,000 and $-0-, respectively.

Professional fees. Professional fees for the nine months ended January 31, 2018 and 2017 were $27,539 and $-0-, respectively. The Company expects professional and accounting fees to increase in the future due to the fees associated with the Company filings with the Securities and Exchange Commission.

Other general and administrative expenses.Total other general and administrative expenses for the nine months ended January 31, 2018 and 2017 were $1,752 and $1,742, respectively.

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Other income (expenses).Total other expenses for the nine months ended January 31, 2018 and 2017 were $39,595 and $4,352, respectively. These expenses consist of the loss on derivative liability and interest expenses on notes payable.

Net Income (Loss).Net loss for the nine months ended January 31, 2018 was $430,126 compared to net loss of $89,281 for the nine months ended January 31, 2017.

Off-Balance Sheet Arrangements

We do not have any off-balance sheet arrangements.

Subsequent Events

The Company has evaluated subsequent events since January 31, 2018, and concluded there were no other events or transactions, other than those disclosed in the financial statements, occurring during this period that required recognition or disclosure in its financial statements.

Disclosure of Commission Position on Indemnification for Securities Act Liabilities

Insofar as indemnification for liabilities arising under the Securities 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 SEC 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, officers, or controlling persons in the successful defense of any action, suit or proceeding, 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 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.

Provisions of the Florida Act, Articles of Incorporation and Bylaws

Our Articles of Incorporation and bylaws provide that our board of directors will have the exclusive power to make, alter, amend or repeal any provision of our bylaws.

Affiliated Transactions

Section 607.0901 of the Florida Act, is applicable to corporations organized under the laws of the State of Florida. Subject to certain exceptions set forth therein, Section 607.0901 defines an “affiliated transaction” as a merger by a Florida corporation with an “interested shareholder,” a sale, lease or other disposition to the interested shareholder of assets of the corporation above a certain threshold including 5% or more of the fair market value of all of the assets of the corporation, or the issuance or transfer by the corporation of shares of its capital stock having a fair market value equal to 5% of the fair market value of all of the outstanding shares of the corporation to the interested shareholder, adoption of any plan for liquidation or dissolution involving the interested shareholder, any reclassification of securities, or any receipt by the interested shareholder of any loans, guarantees or other financial statements.assistance. Under certain circumstances, Section 607.0901 of the Florida Act makes it more difficult for an interested stockholder to effect various affiliated transactions with a corporation, although the stockholders may, by adopting an amendment to the corporation's charter or by-laws, elect not to be governed by this section. Our charter and by-laws do not exclude us from the restrictions imposed under Section 607.0901 of the Florida Act. It is anticipated that the provisions of Section 607.0901 of the Florida Act may encourage companies interested in acquiring us to negotiate in advance with the board of directors.




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42FAIR VALUE OF FINANCIAL INSTRUMENTS



SIGNIFICANT ACCOUNTING POLICIES


We report revenues and expenses usingAccounting Standards Codification Topic 820, “Disclosures About Fair Value of Financial Instruments,” requires us to disclose, when reasonably attainable, the accrual methodfair market values of accounting for financial and tax reporting purposes.


Use of estimates - Management uses estimates and assumption in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts ofits assets and liabilities, the disclosurewhich are deemed to be financial instruments. Our financial instruments consist primarily of contingent assets and liabilities, and the reported revenues and expenses.cash.


Revenue recognition –PER SHARE INFORMATION The Company will recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the purchase price is fixed or determinable and collectability is reasonably assured.  The Company intends on generating revenue from three sources; Marketing services, sale of ExactRep products at fifteen percent (15%) commission and sale of Motorcycle replica parts at full cost less fifteen percent (15%) commission payable to ExactRep.


Revenue through March 3, 2014, and to present includes only Marketing services.


Stock-based compensation -The Company accounts for stock-based instruments issued to employees in accordance with ASC Topic 718. ASC Topic 718 requires companies to recognize in the statement of operations the grant-date fair value of stock options and other equity based compensation issued to employees. The Company accounts for non-employee share-based awards in accordance with ASC Topic 505-50.


Per share information- We compute net loss per share in accordance with FASB ASC 205 “Earnings per Share”. FASB ASC 205 requires presentation of both basic and diluted earnings per share (EPS) on the face of the statement of operations.


Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all potentially dilutive common shares outstanding during the period. Diluted EPS excludes all potentially dilutive shares if their effect is anti-dilutive.


STOCK OPTION GRANTS

We have not granted any stock options to our officers and directors since our inception. Upon the further development of our business, we will likely grant options to directors and officers consistent with industry standards for companies similar to us.

PROPERTIES

Our principal executive offices are made available by Paul Clewlow, our Chief Executive Officer. To date, we have not paid any rent to Mr. Clewlow for our 500 square foot office located at The Office, 23 Barton Road, Market Bosworth, Warwickshire, England CV13 0LQ U.K. Additionally, Mr. Clewlow provides all office related equipment and communication lines. Following the completion of this Offering, we intend to find an alternative office facility and enter a long-term office lease at prevailing market rates.

We do not currently rent any property other than our current location at The Office, 23 Barton Road, Market Bosworth, Warwickshire, England CV13 0LQ U.K. We do not intend to renovate, improve, or develop properties. We are not subject to competitive conditions for property and currently have no property to insure. We have no policy with respect to investments in real estate or interests in real estate and no policy with respect to investments in real estate mortgages. Further, we have no policy with respect to investments in securities of or interests in persons primarily engaged in real estate activities.

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS


On March 3, 2014, weand June 15, 2017 respectively, the Company issued 10,000,000an aggregate of 20,000,000 common shares of our common stockthe Company to Paul Clewlow, the Company’s Chief Executive Officer in exchange for services as our founder.provided to the Company. We valued the shares at $.0001$0.0001 and $0.01 per share or an aggregate of $1,000.$100,100. On July 24, 2014, we issued 1,000,000 shares of our series A Preferred Stock to Paul Clewlow in exchange for services rendered to us. We valued these shares at $.001$0.001 per share or an aggregated $1,000. On March 3, 2014, we entered into a three-year employment agreement with Mr. Clewlow whereby we agreed to pay him a base salary of $10,000 per month, plus applicable bonuses as are awarded by the Board of Directors from time to time based on performance, which may either be paid in stock or cash at the discretion of the Board. During the period from March 3, 2014 (inception) to September 2, 2014,October 31, 2017, we paid cash to Mr. Clewlow of $47,800.$130,982. Remaining amounts due under the agreement accrued.


On March 3, 2014,Our principal executive offices are made available by Paul Clewlow, our Chief Executive Officer. To date, we entered into an agreement with Elliott Polatoff, a shareholder. In accordance with the service agreement, we issued Mr. Polatoff 1,020,000 shares of common stock and agree to pay Mr. Polatoff $5,000 per month. The agreement has a term of seven (7) months. We valued these shares at $.0001 or an aggregate of $102. During the period from March 3, 2014 (inception) to September 2, 2014, wehave not paid cashany rent to Mr. Polatoff of $10,000.  The remaining amounts due under the agreement have accrued. On April 3, 2014, we sold 1,000,000 common shares to Mr. Polatoff for $.005 per share or an aggregate of $5,000.




43



On March 1, 2014, we entered into an agreement with David Lovatt, a shareholder. In accordance to the service agreement, we issued Mr. Lovatt 1,020,000 shares of common stock and agreed to pay Mr. Lovatt $5,000 per month. The agreement has a term of seven (7) months. We valued these shares at $.0001 or an aggregate of $102. During the period from March 3, 2014 (inception) to September 2, 2014, we paid cash to Mr. Lovatt of $10,000.  The remaining amounts due under the agreement have accrued. On April 3, 2014, we sold 1,000,000 common shares to Mr. Lovatt for $.005 per share or an aggregate of $5,000.


On April 1, 2014, we entered into a service agreement with Carl Grant. The agreement has a term of six (6) months. We issued 1,020,000 of common shares to Mr. Grant in exchange for his services. We valued these shares at $.005 per share or an aggregate of $5,100.


On March 3, 2014, we entered into a lease agreement with Paul Clewlow for our location500 square foot office located at The Office, 23 Barton RD,Road, Market Bosworth, Warwickshire, England CV13 0LQ. We0LQ U.K. Additionally, Mr. Clewlow provides all office related equipment and communication lines. Following the completion of this Offering, we intend to find an alternative office facility and enter a long-term office lease at prevailing market rates.

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Family Relationships and Other Matters

There are obligated to pay $250 monthly for this location. To date, all rents have accrued.no family relationships between any of our shareholders and our officers and directors that we are aware of.


Corporate Governance and Director Independence


Our Board of Directors has not established Audit, Compensation, and Nominating or Governance Committees as standing committees. The Board does not have an executive committee or any committees performing a similar function. We are not currently listed on a national securities exchange or in an inter-dealer quotation system that has requirements that a majority of the board of directors be independent. Our Sole Director has determined that he is not considered “independent” under the definition set forth in the listing standards of the NASDAQ Stock Market, Inc., which is the definition that the Board has chosen to use for the purposes of the determining independence, as the OTC Bulletin BoardMarkets does not provide such a definition. Therefore, our sole director is not independent.


MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS


Market Information


There is no established public trading market for our securities and a regular trading market may not develop, or if developed, may not be sustained. A shareholder in all likelihood, therefore, will not be able to resell his or her securities should he or she desire to do so when eligible for public resales. Furthermore, it is unlikely that a lending institution will accept our securities as pledged collateral for loans unless a regular trading market develops.


Penny Stock Considerations


Our shares will be "penny stocks", as that term is generally defined in the Securities Exchange Act of 1934 to mean equity securities with a price of less than $5.00 per share. Thus, our shares will be subject to rules that impose sales practice and disclosure requirements on broker-dealers who engage in certain transactions involving a penny stock.


Under the penny stock regulations, a broker-dealer selling a penny stock to anyone other than an established customer must make a special suitability determination regarding the purchaser and must receive the purchaser's written consent to the transaction prior to the sale, unless the broker-dealer is otherwise exempt.




44



In addition, under the penny stock regulations, the broker-dealer is required to:

 

·Deliver, prior to any transaction involving a penny stock, a disclosure schedule prepared by the Securities and Exchange Commission relating to the penny stock market, unless the broker-dealer or the transaction is otherwise exempt;

·

·Disclose commissions payable to the broker-dealer and our registered representatives and current bid and offer quotations for the securities;

deliver, prior to any transaction involving a penny stock, a disclosure schedule prepared by the Securities and Exchange Commission relating to the penny stock market, unless the broker-dealer or the transaction is otherwise exempt;

·Send monthly statements disclosing recent price information pertaining to the penny stock held in a customer's account, the account's value, and information regarding the limited market in penny stocks; and


·Make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction, prior to conducting any penny stock transaction in the customer's account.

·

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disclose commissions payable to the broker-dealer and our registered representatives and current bid and offer quotations for the securities;


·

send monthly statements disclosing recent price information pertaining to the penny stock held in a customer's account, the account's value, and information regarding the limited market in penny stocks; and


·

make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction, prior to conducting any penny stock transaction in the customer's account.


Because of these regulations, broker-dealers may encounter difficulties in their attempt to sell shares of our common stock, which may affect the ability of selling shareholders or other holders to sell their shares in the secondary market, and have the effect of reducing the level of trading activity in the secondary market. These additional sales practice and disclosure requirements could impede the sale of our securities, if our securities become publicly traded. In addition, the liquidity for our securities may be decreased, with a corresponding decrease in the price of our securities. Our shares in all probability will be subject to such penny stock rules and our shareholders will, in all likelihood, find it difficult to sell their securities.


OTC Bulletin BoardOTCQB Qualification for Quotation


We intend to have our stock quoted on the OTCQB marketplace. To have our shares of common stock on the OTC Bulletin Board,OTCQB marketplace, a market maker must file an application on our behalf in order to make a market for our common stock. We have engaged in preliminary discussions with a FINRA Market Maker to file our application on Form 211 with FINRA, but as of the date of this Prospectus, no filing has been made. Based upon our counsel's prior experience, we anticipate that after this registration statement is declared effective, it will take approximately 2-82 - 8 weeks for FINRA to issue a trading symbol and allow sales of our common stock under Rule 144.


Sales 0f Our Common Stock Underof our common stock under Rule 144.


We presently have 20,370,00031,209,000 common shares issued and outstanding. Of these shares 8,170,00011,209,000 common shares are held by non-affiliates and 12,200,00020,000,000 common shares are held by affiliates, which Rule 144 of the Securities Act of 1933, as amended, defines as restricted securities.  None of our outstanding shares are eligible for resale under Rule 144. 


We are registering 4,460,00011,209,000 common shares held by non-affiliates. We are not registering the 20,000,000 shares held by affiliates. The remaining non-affiliate shares as well as all of the remaining affiliates’ shares will still be subject to the resale restrictions of Rule 144. In general, persons holding restricted securities, including affiliates, must hold their shares for a period of at least six (6) months, may not sell more than one (1) percent of the total issued and outstanding shares in any 90-day period, and must resell the shares in an unsolicited brokerage transaction at the market price. The availability for sale of substantial amounts of common stock under Rule 144 could reduce prevailing market prices for our securities.


Holders


As of the date of this registration statement, we had twenty (20)39 shareholders of record of our common stock.




Dividends

45



Dividends


We have not declared any cash dividends on our common stock since our inception and do not anticipate paying such dividends in the foreseeable future. We plan to retain any future earnings for use in our business. Any decisions as to future payments of dividends will depend on our earnings and financial position and such other facts, as the board of directors deems relevant.


Transfer Agent


Our transfer agent is VStock Transfer LLC located at 77 Spruce Street, Suite 201 Cedarhurst, NY 11516. Their telephone number is 212-828-8436 and their website is located at http://www.vstocktransfer.com.


Reports to Shareholders


As a result of this offering and assuming the registration statement is declared effective before April 30, 2015,2018, as required under Section 15(d) of the Securities Exchange Act of 1934, we will file periodic reports with the Securities and Exchange Commission through April 30, 2015,2018, including a Form 10-K for the year ended April 30, 2015,2018, assuming this registration statement is declared effective before that date. At or prior to April 30, 2015,2018, we intend voluntarily to file a registration statement on Form 8-A which will subject us to all of the reporting requirements of the 1934 Act. This will require us to file quarterly and annual reports with the SEC and will also subject us to the proxy rules of the SEC. In addition, our officers, directors and ten percent (10%)10% stockholders will be required to submit reports to the SEC on their stock ownership and stock trading activity. We are not required under Section 12(g) or otherwise to become a mandatory 1934 Act filer unless we have more than 500 shareholders and total assets of more than $10 million on April 30, 2015.2018. If we do not file a registration statement on Form 8-A at or prior to

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April 30, 2015,2018, we will continue as a voluntary reporting company and will not be subject to the proxy statement or other information requirements of the 1934 Act, our securities can no longer be quoted on the OTC Bulletin Board,OTCQB marketplace, and our officers, directors and ten percent (10%)10% stockholders will not be required to submit reports to the SEC on their stock ownership and stock trading activity. We will deliver an annual report to our security holders that will include audited financial statements regardless of whether we are obligated to do so.


Where You Can Find Additional Information


We have filed with the Securities and Exchange Commission a registration statement on Form S-1. For further information about us and the shares of common stock to be sold in the offering, please refer to the registration statement and the exhibits and schedules thereto. The registration statement and exhibits and any materials we file with the Commission may be read and copied, at the SEC's Public Reference Room at 100 F St., N.E., Washington, D.C. 20549, on official business days during the hours of 10 a.m. to 3 p.m. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330. The SEC maintains an Internet site that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the Commission and state the address of that site (http://www.sec.gov). Our registration statement and other information we file with the SEC is available at the web site maintained by the SEC athttp://www.sec.gov.


EXECUTIVE COMPENSATION


Summary Compensation Table


The table below summarizes all compensation awarded to, earned by, or paid to our Principal Executive Officer, our two most highly compensatedOfficers and Directors, executive officers who occupied such position at the end of our latest fiscal year and up to two additional executive officers who would have been included in the table below except for the fact that they were not executive officers at the end of our latest fiscal year, by us, or by any third party where the purpose of a transaction was to furnish compensation, for all services rendered in all capacities to us for the yearyears ended April 30, 2014, the first fiscal year since our inception.2018 and 2017.


Name Position Year Salary Bonus 

Stock

Awards

 Option 

Non-equity

incentive plan

compensation

 

Non- qualified

deferred

compensation

 

All other

Compensation

 Total
Paul Clewlow Chief Executive Officer  2014  $20,000(1)  0   $1,000(2)  0   0   0   0   21,000 
   2015  $120,000(3)  0   $100(4)  0   0   0   0   120,100 
   2016  $120,000(5)  0   0   0   0   0   0   120,000 
   2017  $120,000(5)  0   0   0   0   0   0   120,000 
     2018  $90,000(5)  0   $100,000(6)  0   0   0   0   190,000 

(1)On March 3, 2014, we entered into a three-year employment agreement with Mr. Clewlow whereby we agreed to pay him a base salary of $10,000 per month, plus applicable bonuses as are awarded by the Board of Directors from time to time based on performance, which may either be paid in stock or cash at the discretion of the Board. Mr. Clewlow accrued $20,000 of salary during the year ending April 30, 2014.
(2)On March 3, 2014, we issued 10,000,000 shares of our common stock to Paul Clewlow in exchange for services rendered as our founder. We valued these shares at $0.0001 per share or an aggregate of $1,000.
(3)During the period from March 3, 2014 (inception) to April 30, 2015, we paid cash to Mr. Clewlow of $71,330. Remaining amounts due under the employment agreement for the fiscal year ended April 30, 2015 were accrued.
(4)On July 18, 2014, we issued 1,000,000 Series A Preferred shares to Paul Clewlow in exchange for services rendered. We valued these shares at an aggregate of $100. The Series A Preferred shares entitle him to 200 votes per share or an aggregate of 200,000,000 votes on all matters submitted to our common stockholders. As a result of the 20,000,000 common shares and 1,000,000 Series A Preferred shares held by Mr. Clewlow, he holds a controlling interest in the Company, and has the ability to determine the outcome of all matters submitted to our stockholders for approval, including the election of directors.
(5)$10,000 per month salary accrued, of which $54,352 was paid in 2016 and $5,300 was paid in 2017.
(6)On June 15, 2017, the Company issued 10,000,000 common shares of the Company to Paul Clewlow, the Company’s Chief Executive Officer in exchange for services provided to the Company. We valued the shares at $0.01 per share or $100,000.

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46



Name

Position

Year

Salary

Bonus

Stock Awards

Option

Non-equity incentive plan Compensation

Non- qualified deferred compensation

All other Compensation

Total

Paul Clewlow (1)

Chief Executive Officer, Sole Officer, Director

2014

$20,000 (2)

0

$1,000 (3)

0

0

0

0

$21,000


(1) Mr. Clewlow accrued $20,000 of salary during the year ending April 30, 2014

(2) On March 3, 2014, we issued 10,000,000 shares of our common stock to Paul Clewlow in exchange for services rendered as our founder. We valued these shares at $.0001 per share an aggregate of $1,000.

(3) On July 18, 2014, we issued 1,000,000 Series A Preferred shares to Paul Clewlow in exchange for services rendered. We valued these shares at an aggregate of $1,000. The Series A Preferred shares entitle him to 200 votes per share or an aggregate of 200, 000,000 votes on all matters submitted to our common stockholders. As a result of the 10,000,000 common shares and 1,000,000 Series A Preferred shares held by Mr. Clewlow, he holds ninety-five percent (95%) of the votes on all matters submitted to our stockholders.  As a result, he has the ability to determine the outcome of all matters submitted to our stockholders for approval, including the election of directors.


Summary Equity Awards Table


The following table sets forth certain information for our executive officers concerning unexercised options, stock that has not vested, and equity incentive plan awards as of April 30, 2014.2018.


OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END APRIL 30, 20142018


 

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 of 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 ($)

Paul Clewlow

0

0

0

0

0

0

0

0

0

  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
($)
                   
Paul Clewlow  0   0   0   0   0   0   0   0   0 
                                     


Directors Compensation


Paul ClewlowOur sole director is our sole director. Our directors are not compensated for theirhis service as directors.a director.




47



Narrative disclosure to summary compensation and option tables


On March 3, 2014, we issued 10,000,000 shares of our common stock to Paul Clewlow for services as our founder. We valued the shares at $.0001 per share or an aggregate of $1,000.  On July 24, 2014, we issued 1,000,000 shares of our series A Preferred Stock to Paul Clewlow in exchange for services rendered to us as our Chief Executive Officer. We valued these shares at $.001 per share or an aggregated $1,000. On March 3, 2014, we entered into a three-year employment agreement with Mr. Clewlow whereby we agreed to pay him a base salary of $10,000 per month, plus applicable bonuses as are awarded by the Board of Directors from time to time based on performance, which may either be paid in stock or cash at the discretion of the Board. During the period from March 3, 2014 (inception) to September 2, 2014, we paid cash to Mr. Clewlow of $47,800. Remaining amounts due under the agreement accrued. Our board of directors determines the compensation paid to our executive officers based upon the years of service to us, whether services are provided on a full time basis and the experience and level of skill required.


We may award our officers and directors shares of common stock as non-cash compensation as determined by the board of directors from time to time. The board will base its decision to grant common stock as compensation on the level of skill required to perform the services rendered and time committed to providing services to us.


At no time during the last fiscal year with respect to any person listed in the Table above was there:


·any outstanding option or other equity-based award re-priced or otherwise materially modified (such as by extension of exercise periods, the change of vesting or forfeiture conditions, the change or elimination of applicable performance criteria, or the change of the bases upon which returns are determined);
·any waiver or modification of any specified performance target, goal or condition to payout with respect to any amount included in non-stock incentive plan compensation or payouts;
·any option grant;
·any non-equity incentive plan award made to a named executive officer;
·any nonqualified deferred compensation plans including nonqualified defined contribution plans; or
·any payment for any item to be included under All Other Compensation (column (i)) in the Summary Compensation Table.

any outstanding option or other equity-based award re-priced or otherwise materially modified (such as by extension of exercise periods, the change of vesting or forfeiture conditions, the change or elimination of applicable performance criteria, or the change of the bases upon which returns are determined);


·

any waiver or modification of any specified performance target, goal or condition to payout with respect to any amount included in non-stock incentive plan compensation or payouts;


·

 any option or equity grant;

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·

     any non-equity incentive plan award made to a named executive officer;


·

     any nonqualified deferred compensation plans including nonqualified defined contribution plans; or


·

any payment for any item to be included under All Other Compensation (column (i)) in the Summary Compensation Table.


CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING

AND FINANCIAL DISCLOSURE


None.During the two years ended April 30, 2017 and April 30, 2016, and through the date of this registration statement including the nine months ended January 31, 2018 interim period, there were no disagreements with our auditor Michael T. Studer CPA P.C. (“Studer”) on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which if not resolved to Studer’s satisfaction would have caused it to make reference thereto in connection with its reports on the financial statements for such years. During the two years ended April 30, 2017 and April 30, 2016 and through the date of this registration statement, there were no reportable events of the type described in Item 304(a)(1)(v) of Regulation S-K




LEGAL MATTERS

48


The legality of certain securities offered by this prospectus will be passed upon for us by John D. Thomas, P.C., Draper, UT (“JDTPC”). JDTPC is a holder of 800,000 shares of our Common stock. JDTPC is a professional corporation owned and controlled by John D. Thomas, the sole shareholder of JDTPC.


EXPERTS

The audited financial statements of the Company as of and for the fiscal years ended April 30, 2017 and 2016 included in this prospectus have been audited by Michael T. Studer, CPA, P.C., an independent registered public accounting firm. Such financial statements have been so included in reliance on the reports given upon the authority of said firms as experts in accounting and auditing.

ADDITIONAL INFORMATION

We have filed with the SEC a registration statement on Form S-1 under the Securities Act of 1933, as amended, or the Securities Act, with respect to our shares of Common stock offered by this prospectus. This prospectus, which is a part of the registration statement, does not contain all of the information set forth in the registration statement or exhibits and schedules thereto. For further information with respect to our business and our securities, reference is made to the registration statement, including the amendments, exhibits and schedules thereto contained in the registration statement.

We also file annual, quarterly and current periodic reports and other information with the SEC under the Securities Exchange Act of 1934. You can inspect these reports and other information, as well as the registration statement and the related exhibits and schedules, without charge, at the public reference facilities of the SEC at room 1580, 100 F. Street, N.E., Washington, D.C. 20549. Please call the SEC at 1-800-SEC-0330 for further information on the public reference room. The SEC maintains a web site that contains reports and other information regarding registrants, including us, that file such information electronically with the SEC. The address of the SEC’s web site ishttp://www.sec.gov. Information contained on the SEC’s web site about us is not incorporated into this prospectus, and you should not consider information contained on the SEC’s web site to be part of this prospectus.

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PART C---OTHER INFORMATION

Financial Statements and Exhibits

1.Financial Statements

The following financial statements of Arazu Incorporated are included in Part A “Information Required in a Prospectus” of the Registration Statement:

ARAZU INCORPORATED

INDEX TO FINANCIAL STATEMENTS

For the Period from March 3, 2014 (Inception) to April 30, 2014





CONTENTS



Report of Independent Registered Public Accounting Firm

F-2

41


Financial Statements:

Balance Sheets as of January 31, 2018 (Unaudited), April 30, 2017 and April 30, 2016

42

     Balance Sheet

F-3

Statements of Operations

for the nine months ended January 31, 2018 and 2017(Unaudited) and for the years ended April 30, 2017 and April 30, 2016

F-4

43

Statements of Stockholders Deficit for the nine months ended January 31, 2018(Unaudited) and for the years ended April 30, 2017 and April 30, 2016

44

     Statements of Changes in Stockholders’ Deficit

F-5

Statements of Cash Flows

for the nine months ended January 31, 2018 and 2017(Unaudited) and for the years ended April 30, 2017 and April 30, 2016

F-6

45

Notes to Financial Statements

F-7 to F-19

46




All other information required in the financial statement schedules has been incorporated in the financial statements or notes thereto or has been omitted since the information is not applicable or not present in amounts sufficient to require submission of the schedule.

F-1


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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



Report of Independent Registered Public Accounting Firm



To the Board of Directors and Stockholders of Arazu Incorporated:

Arazu Incorporated

North Loxahatchee, Florida


WeI have audited the accompanying balance sheetsheets of Arazu Incorporated (the “Company”), as of April 30, 2014,2017 and 2016 and the related statementstatements of operations, changes in stockholders’ equity (deficit), and cash flows for the period from March 3, 2014 (inception) through April 30, 2014.years then ended. These financial statements are the responsibility of the Company’s management. OurMy responsibility is to express an opinion on these financial statements based on ourmy audit.


WeI conducted ourmy audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that weI plan and perform anthe audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements,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.  WeI believe that ourmy audit provides a reasonable basis for ourmy opinion.


In ourmy opinion, the financial statements referred to above present fairly, in all material respects, the financial position of CompanyArazu Incorporated as of April 30, 20142017 and 2016 and the related results of its operations and its cash flows for the period from March 3, 2014 (inception) through April 30, 2014years then ended in conformity with accounting principles generally accepted in the United States of America.States.


The accompanying financial statements referred to above have been prepared assuming that the Company will continue as a going concern. The Company has limited operations and net loss since inception. These factors raiseAs discussed in Note 1b to the financial statements, the Company’s present financial situation raises substantial doubt about the Company’sits ability to continue as a going concern. Management’s plans in regard to this matter are also described in Note 2.1b. The financial statements do not include any adjustments that might resultsresult from the outcome of this uncertainty.


 

/s/MaloneBailey, LLP Michael T. Studer CPA P.C.

www.malonebailey.comMichael T. Studer CPA P.C.

Houston, Texas

September 2, 2014


Freeport, New York


October 30, 2017



F-2





41

ARAZU INCORPORATED

BALANCE SHEET

April 30,2014

ASSETS

Current Assets

Cash

 $                        50

Accounts receivable

                    15,000

Total  Current Assets

                    15,050

Total  Assets

 $                 15,050

LIABILITIES AND STOCKHOLDERS' DEFICIT

Current Liabilities

Accrued expenses - related parties

 $                 40,000

Due to related parties

                      2,923

Total Current Liabilities

                    42,923

Contingencies (Note 6)

Stockholders' Deficit

Preferred stock,  $0.0001 par value; 10,000,000 shares authorized,

0 shares issued and outstanding at April 30, 2014

                              -

Common stock,  $0.0001 par value; 340,000,000 shares authorized,

15,060,000 shares issued and outstanding at April 30, 2014

                      1,506

Additional paid-in capital

                    14,798

Accumulated deficit

                   (44,177)

Total Stockholders' Deficit

                   (27,873)

Total Liabilities and Stockholders' Deficit

 $                 15,050

See accompanying notes to the financial statements



F-3





ARAZU INCORPORATED

STATEMENT OF OPERATIONS

 For the Period from

 March 3, 2014 (Inception)

 to April 30,

2014

Revenues

$

15,000 

Operating Expenses:

  Compensation expense

21,000 

  Professional fees

15,100 

  Professional fees - related parties

20,204 

  General and administrative expenses

2,873 

Total Operating Expenses

59,177 

Net Loss

$

(44,177)

Net Loss Per Common Share:

    Basic and Diluted

$

(0.00)

Weighted Average NumberTable of Common Shares Outstanding:

    Basic and Diluted

13,507,797 

See accompanying notes to the financial statements

Contents




ARAZU INCORPORATED
BALANCE SHEETS
 
ASSETS
       
  January 31, April 30, April 30,
  2018 2017 2016
  (Unaudited)    
       
CURRENT ASSETS            
             
Cash and cash equivalents $2,121  $157  $348 
             
Total Current Assets  2,121   157   348 
             
TOTAL ASSETS $2,121  $157  $348 
             
             
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
             
CURRENT LIABILITIES            
             
Accounts payable and accrued liabilities  241,508   68,979   58,436 
Accrued officer compensation  339,018   249,018   134,318 
Notes payable  108,240   72,540   72,540 
Derivative liability  40,632   18,132   18,132 
             
Total Current Liabilities  729,398   408,669   283,426 
             
TOTAL LIABILITIES  729,398   408,669   283,426 
             
STOCKHOLDERS' EQUITY (DEFICIT)            
             
Preferred stock, $0.0001 par value; 10,000,000, shares authorized,            
 1,000,000, 1,000,000 and 1,000,000 shares of Series A            
 Preferred Stock issued and outstanding, respectively  100   100   100 
Common stock, $0.0001 par value; 340,000,000 shares authorized,            
 31,209,000, 21,004,000 and 20,554,000 shares issued            
 and outstanding, respectively  3,121   2,100   2,055 
Additional paid-in capital  348,286   239,057   216,602 
Accumulated deficit  (1,078,784)  (649,769)  (501,835)
             
Total Stockholders' Equity (Deficit)  (727,277)  (408,512)  (283,078)
             
TOTAL LIABILITIES AND STOCKHOLDERS'  EQUITY (DEFICIT) $2,121  $157  $348 
             
The accompanying notes are an integral part of these financial statements.

F-4






ARAZU INCORPORATED

STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT

For the Period from March 3, 2014 (Inception) to April 30, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

Common Stock

 

Additional

 

Accumulated

 

Shareholders'

 

 Shares

 

Amount

 

Paid-in Capital

 

Deficit

 

Deficit

Balance at March 3, 2014 (Inception)

-

 

$

-

 

$

-

 

$

 

$

 

 

 

 

 

 

 

 

 

 

Stock issued to founder

10,000,000

 

1,000

 

-

 

 

1,000 

 

 

 

 

 

 

 

 

 

 

Stock issued for services

3,060,000

 

306

 

4,998

 

 

5,304 

 

 

 

 

 

 

 

 

 

 

Issuance of stock for cash

2,000,000

 

200

 

9,800

 

 

10,000 

 

 

 

 

 

 

 

 

 

 

Net loss

-

 

-

 

-

 

(44,177)

 

(44,177)

 

 

 

 

 

 

 

 

 

 

Balance at April 30, 2014

15,060,000

 

$

1,506

 

$

14,798

 

$

(44,177)

 

$

(27,873)

 

 

 

 

 

 

 

 

 

 

See accompanying notes to the financial statements










F-5





42

ARAZU INCORPORATED

STATEMENT OF CASH FLOWS

 For the Period from

 March 3, 2014 (Inception)

 to April 30,

2014

Cash Flows From Operating Activities:

Net loss

$

(44,177)

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

Stock-based compensation and fees

6,304 

Changes in operating assets and liabilities:

Increase in accounts receivable

(15,000)

Increase in accrued expenses - related parties

40,000 

Increase in due to related parties

2,923 

Net Cash Used In Operating Activities

(9,950)

Cash Flows From Financing Activities:

Proceeds from sale of common stock

10,000 

Net Increase in Cash

50 

Cash, beginning of period

Cash, end of period

$

50 

Supplemental Disclosure of Cash Flow Information:

Cash paid for:

Interest

$

Income taxes

$

See accompanying notes to the financial statements



F-6





ARAZU INCORPORATED


Notes to Financial Statements

For the Period from March 3, 2014 (Inception) to April 30, 2014

Table of Contents



ARAZU INCORPORATED
STATEMENTS OF OPERATIONS
 
  For the Nine Months Ended For the Years Ended
  January 31, April 30,
  2018 2017 2017 2016
  (Unaudited) (Unaudited)    
         
NET SALES $9,661  $8,459  $8,694  $9,035 
                 
COST OF SALES  7,807   1,646   2,612   8,709 
                 
GROSS MARGIN  1,854   6,813   6,082   326 
                 
OPERATING EXPENSES                
                 
Officer compensation (including stock-based compensation                
 of $100,000, $-0-, $-0-, and $-0-, respectively)  190,000   90,000   120,000   120,000 
Consulting fees (including stock-based compensation of                
 $-0-, $-0-, $6,500, and $-0-, respectively)  173,000   —     6,500   —   
Professional fees (including stock-based compensation                
 of $-0-, $-0-, $16,000, and $-0-, respectively)  37,539   —     17,600   2,000 
Other general and administrative expenses  1,846   1,742   4,113   2,540 
                 
Total Operating Expenses  402,385   91,742   148,213   124,540 
                 
INCOME (LOSS) FROM OPERATIONS  (400,531)  (84,929)  (142,131)  (124,214)
                 
OTHER INCOME (EXPENSES)                
                 
Interest expense (including amortization of debt discount                
 of $22,500, $-0-, $-0-, and $-0-, respectively)  (28,484)  (4,352)  (5,803)  (3,417)
                 
Total Other Income (Expenses)  (28,484)  (4,352)  (5,803)  (3,417)
                 
NET INCOME (LOSS) $(429,015) $(89,281) $(147,934) $(127,631)
                 
Net income (loss) per common share - basic and diluted $(0.01) $(0.00) $(0.01) $(0.01)
                 
Weighted average common shares                
  outstanding - basic and diluted  29,527,116   20,554,000   20,627,973   20,554,000 
                 
The accompanying notes are an integral part of these financial statements.

43
Table of Contents

ARAZU INCORPORATED
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
For the Period from May 1, 2015 through January 31, 2018
               
      Additional   Total
  Preferred Stock Common Stock Paid-In Accumulated Stockholders'
  Shares Amount Shares Amount Capital Deficit Equity (Deficit)
               
Balance, May 1, 2015  1,000,000  $100   20,554,000  $2,055  $216,602  $(374,204) $(155,447)
                             
Net loss for the year ended                            
 April 30, 2016  —     —     —     —     —     (127,631)  (127,631)
                             
Balance, April 30, 2016  1,000,000   100   20,554,000   2,055   216,602   (501,835)  (283,078)
                             
Common stock issued for services  —     —     450,000   45   22,455   —     22,500 
                             
Net loss for the year ended                            
 April 30, 2017  —     —     —     —     —     (147,934)  (147,934)
                             
Balance, April 30, 2017  1,000,000   100   21,004,000   2,100   239,057   (649,769)  (408,512)
                             
Common stock issued for cash (unaudited)  —     —     205,000   21   10,229   —     10,250 
                             
Common stock issued to Company Chief Executive Officer for services (unaudited)  —     —     10,000,000   1,000   99,000   —     100,000 
                             
Net loss for the nine months ended                            
 January 31, 2018 (unaudited)  —     —     —     —     —     (429,015)  (429,015)
                             
Balance, January 31, 2018 (unaudited)  1,000,000  $100   31,209,000  $3,121  $348,286  $(1,078,784) $(727,277)
                             
The accompanying notes are an integral part of these financial statements.

44
Table of Contents

ARAZU INCORPORATED
STATEMENTS OF CASH FLOWS
 
  For the Nine Months Ended For the Years Ended
  January 31, April 30,
  2018 2017 2017 2016
  (Unaudited) (Unaudited)    
         
CASH FLOWS FROM OPERATING ACTIVITIES                
                 
Net income (loss) $(429,015) $(89,281) $(147,934) $(127,631)
Adjustments to reconcile net loss to net cash                
 used by operating activities:                
Stock based compensation and fees  100,000   —     22,500   —   
Amortization of debt discount  22,500   —     —     —   
Changes in operating assets and liabilities:                
Accounts payable and accrued liabilities  172,529   4,352   10,543   5,597 
Accrued officer compensation  90,000   84,700   114,700   70,648 
                 
Net Cash Used by Operating Activities  (43,986)  (229)  (191)  (51,386)
                 
CASH FLOWS FROM INVESTING ACTIVITIES  —     —     —     —   
                 
CASH FLOWS FROM FINANCING ACTIVITIES                
                 
Proceeds from sales of common stock  10,250   —     —     —   
Proceeds from notes payable  35,700   —     —     47,500 
                 
Net Cash Provided by Financing Activities  45,950   —     —     47,500 
                 
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS  1,964   (229)  (191)  (3,886)
                 
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD  157   348   348   4,234 
                 
CASH AND CASH EQUIVALENTS AT END OF PERIOD $2,121  $119  $157  $348 
                 
SUPPLEMENTAL DISCLOSURES:                
                 
Cash paid for interest $—    $—    $—    $—   
Cash paid for income taxes $—    $—    $—    $—   
                 
The accompanying notes are an integral part of these financial statements.

45
Table of Contents

ARAZU INCORPORATED

Notes to the Financial Statements

For the Nine Months Ended January 31, 2018 and 2017 (Unaudited)

and For the Years ended April 30, 2017 and 2016

NOTE 1 - ORGANIZATION AND NATURE OF OPERATIONSSIGNIFICANT ACCOUNTING POLICIES


a. Organization and Description of Business

Arazu Incorporated (the "Company") was incorporated on March 3, 2014 inunder the laws of the State of Florida and established a fiscal year end of April 30. The Company is engaged in the brand development, marketing, distribution and sale of motorcycle parts in North America, including the United States of America and Canada.

 

NOTE 2 –BASIS OF PRESENTATION, GOING CONCERN AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESb. Going Concern Uncertainty

 

Basis of presentation


The accompanying financial statements for Arazu Incorporated have been prepared in accordance with accounting principles generally accepted in the United States of America and with the rules and regulations of the U.S. Securities and Exchange Commission for financial information.  


Going concern


These financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates, among other things, the realization of assets and the satisfaction of liabilities in the normal course of business.


As reflected in the accompanying financial statements,At January 31, 2018, the Company had a net losscash of $2,121 and net cash used in operationsnegative working capital of $44,177 and $9,950, respectively, for$727,277. For the period from March 3, 2014 (inception) tonine months ended January 31, 2018, year ended April 30, 2014,2017, and a working capital deficit, a stockholders’ deficit, and accumulated deficit of $27,873, $27,873, and $44,177, respectively, atyear ended April 30, 20142016, the Company incurred net losses of $429,015, $147,934, and has minimal revenues.$127,631, respectively. These mattersfactors raise substantial doubt about the Company’s ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital, implement its business plan, and generate significant revenues. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. The Company plans on raising capital thoughthrough the sale of equity or debt instruments to implement its business plan.

 

Usec. Accounting Method

The Company’s financial statements are prepared using the accrual method of estimatesaccounting. The Company has elected an April 30 year end.


d. Interim Financial Statements

The interim financial statements as of January 31, 2018 and for the nine months ended January 31, 2018 and 2017 are unaudited and have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. These statements reflect all normal and recurring adjustments that, in the opinion of management, are necessary for a fair presentation of the information contained herein. Operating results for the nine months ended January 31, 2018 are not necessarily indicative of results that may be expected for the year ending April 30, 2018.

e. Cash and Cash Equivalents

Cash and cash equivalents include short-term, highly liquid investments with maturities of three months or less at the time of acquisition. There were no cash equivalents for the periods presented.

f. Estimates

The preparation of the financial statements in conformity with accounting principles generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from thesethose estimates. Significant estimates during

46
Table of Contents

ARAZU INCORPORATED

Notes to the periodFinancial Statements

For the Nine Months Ended January 31, 2018 and 2017 (Unaudited)

and For the Years ended April 30, 2014 include the valuation of deferred tax assets,2017 and the value of stock-based compensation and contributed services.




F-7






Fair value of financial instruments and fair value measurements


The Company adopted the guidance of Accounting Standards Codification (“ASC”) 820 for fair value measurements which clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:


*

Level 1-Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.

*

Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.

*

Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.

The carrying amounts reported in the balance sheet for cash, accounts receivable, accounts payable, accrued expenses, and due to related parties approximate their fair market value based on the short-term maturity of these instruments. The Company did not have any non-financial assets or liabilities that are measured at fair value on a recurring basis as of April 30, 2014.


ASC 825-10 “Financial Instruments, allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable, unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding instruments.2016

 

Cash and cash equivalents


Cash and cash equivalents consist of cash and short-term highly liquid investments purchased with original maturities of three months or less. There were no cash equivalents at April 30, 2014.g. Revenue Recognition

 

Accounts receivable and allowance for doubtful accounts


Accounts receivables may result from our brand development and marketing, distribution andRevenue is recognized upon delivery of goods where the sales services. Management must make estimates of the uncollectability of accounts receivable. Management specifically analyzed customer concentrations, customer credit-worthiness, current economic trends and changes in customer payment terms when evaluating the adequacy of the allowance for doubtful accounts.

Revenue recognition


The Company will recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred or services have been rendered, the purchase price is fixed or determinable and collectabilitycollectibility is reasonably assured.




F-8





The Company signed a product marketing and distribution agreement with a third party, Exactrep Limited on March 16, 2014. Exactrep grantedRevenue is not recognized until persuasive evidence of an arrangement exists. Product sales were solely derived from the Company an exclusive right to market, distribute and sell the motorcycle parts in United Statesresale of America and Canada. The Company expects to contract with Exactrep to develop a website specifically for the North America geographical area to promote and advertise the motorcycle parts. The mutually agreed services thatProduct sales are not warranted by the Company and Exactrep have decided upon require brand development and specialist marketing advice and assistance, and Exactrep is payingmay be subject only to warranties that may be provided by the Company a fixed fee of $15,000 per month for a period of 6 months. After the initial period of 6 months, Exactrep agrees to deliver to the Company, on consignment, the motorcycle parts as requested from time to time to meet sales received via the website, and the Company agrees to devote its best efforts to the sale of the motorcycle parts. The Company will pay to Exactrep a portion of the sales proceeds which is 85 percent of the proceeds of all sales of the motorcycle parts. Consigned merchandise shall remain the property of Exactrep until sold, except that the Company shall be responsible for all shortages, loss or damage, while the merchandise is under the control of the Company. Revenue from inception through April 30, 2014 includes only brand development services and totaled $15,000.product manufacturer.  


h. Stock-based compensationCompensation


Stock-based compensation is accounted for based on the requirements of the Share-Based Payment Topic of ASC 718 which requires recognition in the consolidated financial statements of the cost of employee and director services received in exchange for an award of equity instruments over the period the employee or director is required to perform the services in exchange for the award (presumptively, the vesting period). The ASC also requires measurement of the cost of employee and director services received in exchange for an award based on the grant-date fair value of the award.


Pursuant to ASC Topic 505-50, for share-based payments to consultants and other third-parties, compensation expense is determined at the “measurement date.”date”. The expense is recognized over the service period of the award. Until the measurement date is reached, the total amount of compensation expense remains uncertain. The Company initially records compensation expense based on the fair value of the award at the reporting date.award.  

 

i. Advertising

The Company follows the policy of charging the costs of advertising to expense as incurred. For the nine months ended January 31, 2018 and 2017, advertising expense was $-0- and $-0-, respectively. For the years ended April 30, 2017 and 2016, advertising expense was $-0- and $1,015, respectively.

j. Basic and Diluted Net Loss Per Share

The Company follows ASC Topic 260 to account for earnings per share. Basic earnings (loss) per common share (“EPS”) calculations are determined by dividing net income (loss) by the weighted average number of shares of common stock issued and outstanding during the period. Diluted earnings (loss) per common share calculations are determined by dividing net income (loss) by the weighted average number of common shares and dilutive common share equivalents outstanding.

For the periods presented, the common shares underlying the following dilutive securities were excluded from the calculation of diluted shares outstanding as the effect of their inclusion would be anti-dilutive:

  For the Nine Months
Ended January 31,
 For the Years
Ended April 30,
  2018 2017 2017 2016
  (Unaudited)    
         
Convertible note payable dated October 4, 2014 ($25,040)  863,448   863,448   863,448   863,448 
               —   
Convertible note payable dated August 10, 2017 ($27,500)  1,000,000   —     —     —   
                 
Total common shares issuable  1,863,448   863,448   863,448   863,448 

47
Table of Contents

ARAZU INCORPORATED

Notes to the Financial Statements

For the Nine Months Ended January 31, 2018 and 2017 (Unaudited)

and For the Years ended April 30, 2017 and 2016

k. Income taxesTaxes


DeferredThe Company utilizes the liability method of accounting for income taxes. Under the liability method, deferred tax assets and liabilities arise from temporary differences associated withare determined based on the differences between financial reporting and the financial statements and tax basisbases of the assets and liabilities asand are measured byusing the enacted tax rates whichand laws that are expected to be in effect when the differences are expected to be reversed. An allowance against deferred tax assets is recorded when it is more likely than not that such tax benefits will not be realized.

l. Recent Accounting Pronouncements

Certain accounting pronouncements have been issued by the FASB and other standard setting organizations which are not yet effective and have not yet been adopted by the Company. The impact on the Company’s financial position and results of operations from adoption of these standards is not expected to be material.

m. Financial Instruments

The Company follows FASB ASC 820-10-50, “Fair Value Measurements.” This guidance defines fair value, establishes a three-level valuation hierarchy for disclosures of fair value measurement and enhances disclosure requirements for fair value measures.  The three levels are defined as follows:

- Level 1 inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

- Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

- Level 3 inputs to valuation methodology are unobservable and significant to the fair value measurement.

The carrying amounts reported in the balance sheets for cash and current liabilities each qualify as financial instruments and are a reasonable estimate of fair value because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest.  

NOTE 2 - ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

Accounts payable and accrued liabilities consist of the following:      
  January 31, April 30,
  2018 2017 2016
  (Unaudited)    
       
Accrued consulting fees $196,763  $46,700  $46,700 
Accrued interest payable on notes payable  16,346   10,362   4,559 
Advances payable – non-interest bearing, due on demand  18,687   8,687   6,937 
Accounts payable  9,712   3,230   240 
Total $241,508  $68,979  $58,436 

48
Table of Contents

ARAZU INCORPORATED

Notes to the Financial Statements

For the Nine Months Ended January 31, 2018 and 2017 (Unaudited)

and For the Years ended April 30, 2017 and 2016

NOTE 3 - NOTES PAYABLE

Notes payable consist of the following:      
  January 31, April 30,
  2018 2017 2016
  (Unaudited)    
       
Convertible note payable dated October 4, 2014 to David Lovatt (consultant to Company), interest at 8%, due on demand (a portion of note was sold to a third party on May 5, 2017) (A) $25,040  $25,040  $25,040 
Convertible note payable dated September 10, 2015 to David Lovatt (consultant to Company), interest at 8%, due on demand (note was sold to a third party on August 10, 2017)  —     27,500   27,500 
Convertible note payable dated August 10, 2017 to Essex Global Investment Corp. (purchaser of convertible note payable dated September 10, 2015), interest at 8%, due on demand (B)  27,500   —     —   
Note payable dated April 29, 2016 to David Lovatt (consultant to Company), interest at 8%, due on demand  20,000   20,000   20,000 
Note payable dated May 16, 2017 to David Lovatt (consultant to Company), interest at 8%, due on demand  6,500   —     —   
Note payable dated June 13, 2017 to David Lovatt (consultant to Company), interest at 8%, due on demand  15,000   —     —   
Note payable dated August 28, 2017 to Green Light Developments, LLC (consultant to Company), interest at 8%, due on demand  13,000   —     —   
Note payable dated November 24, 2017 to Green Light Developments, LLC (consultant to Company), interest at 8%, due on demand  1,200   —     —   
Total $108,240  $72,540  $72,540 

(A)At the option of the holder of the $25,040 convertible note payable dated October 4, 2014, the holder may convert all or any lesser portion of the Outstanding Principal Amount and accrued but unpaid interest into Company common stock at a conversion price equal to 58% of the lowest closing price of the previous 10 trading day’s closing prices. See Note 4, Derivative Liability.
(B)At the option of the holder of the $27,500 convertible note payable dated August 10, 2017, the holder may convert all or any lesser portion of the outstanding principal amount and accrued but unpaid interest into Company common stock at a conversion price equal to 55% of the lowest trading price of the previous 10 trading day’s prices. See Note 4, Derivative Liability.

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ARAZU INCORPORATED

Notes to the Financial Statements

For the Nine Months Ended January 31, 2018 and 2017 (Unaudited)

and For the Years ended April 30, 2017 and 2016

NOTE 4 - DERIVATIVE LIABILITY

The derivative liability consists of:

  January 31, 2018 April 30, 2017 April 30, 2016
  Face Value Derivative Liability Face Value Derivative Liability Face Value Derivative Liability
Convertible note payable issued October 4, 2014, due on demand $25,040  $18,132  $25,040  $18,132  $25,040  $18,132 
Convertible note payable issued August 10, 2017, due on demand  27,500   22,500   —     —     —     —   
Totals $52,540  $40,632  $25,040  $18,132  $25,040  $18,132 

The above convertible notes contain a variable conversion feature based on the future trading price of the Company common stock. Therefore, the number of shares of common stock issuable upon conversion of the note is indeterminate. Accordingly, we recorded the fair value of the embedded conversion features as a derivative liability at the issuance date of the notes. The increase (decrease) in the fair value of the derivative liability from the issuance date of the notes to the measurement dates (none for the periods presented) is charged (credited) to other expense (income). The fair value of the derivative liability of the notes were measured at the issuance dates and quarterly thereafter using the Black Scholes option pricing model.

Assumptions used for the calculations of the derivative liability of the notes at January 31, 2018, April 30, 2017 and April 30, 2016 include (1) stock price of $0.05 per share, (2) exercise prices ranging from $0.0275 to $0.029 per share, (3) term of 0 days, (4) expected volatility of 290% and (5) risk free interest rates ranging from 0.16% to 0.97%.

NOTE 5 - STOCKHOLDERS’ DEFICIT

Series A Preferred Stock

In July 2014, the Company issued 1,000,000 shares of its Series A Preferred Stock to the Company’s chief executive officer. Each share of Series A Preferred Stock has voting rights equal to 200 shares of common stock. The Series A Preferred Stock has no liquidation, dividend, or conversion rights.

Common Stock

On March 1, 2017, the Company issued a total of 450,000 shares of common stock to 7 service providers for legal and consulting services rendered to the Company. The $22,500 fair value ($0.05 per share) of the 450,000 shares of common stock was expensed on the statement of operations in the three months ended April 30, 2017.

On June 15, 2017, the Company issued 10,000,000 shares of its common stock to the Company’s chief executive officer for prior services rendered to the Company. The $100,000 agreed value ($0.01 per share) of the 10,000,000 shares of common stock was expensed on the statement of operations in the three months ended July 31, 2017.

During the three months ended July 31, 2017, the Company issued an aggregate of 205,000 shares of common stock for cash in the aggregate amount of $10,250.

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ARAZU INCORPORATED

Notes to the Financial Statements

For the Nine Months Ended January 31, 2018 and 2017 (Unaudited)

and For the Years ended April 30, 2017 and 2016

NOTE 6 - INCOME TAXES

The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10.  FASB ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements.  This standard requires a company to determine whether it is more likely than not that a tax position will be sustained will be sustained upon examination based upon the technical merits of the position.  If the more-likely-than- not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements.  As a result of the implementation of this standard, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by FASB ASC 740-10.  

Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences reverse.and operating loss and tax credit carryforwards and deferred tax liabilities are recognized for taxable temporary differences.  Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases.  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 classified as current or non-current, depending uponadjusted for the classificationeffects of the asset or liabilities to which they relate. Deferredchanges in tax assetslaws and liabilities not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized.

The Company follows the provisions of FASB ASC 740-10 “Uncertainty in Income Taxes” (ASC 740-10). Certain recognition thresholds must be met before a tax position is recognized in the financial statements. An entity may only recognize or continue to recognize tax positions that meet a "more-likely-than-not" threshold. As of April 30, 2014, the Company does not believe it has any uncertain tax positions that would require either recognition or disclosure in the accompanying financial statements.




F-9




Net loss per common share


Basic and diluted net loss per common share are computed based on the weighted-average common shares and common share equivalents outstanding during the period. At April 30, 2014, there were no outstanding common share equivalents. Pursuant to ASB 260, as of April 30, 2014, the contingent shares issuable under a service agreement signed on April 2, 2014 with a law firm (see Note 7) are not considered outstanding and are not included in basic net loss per common share or as potentially dilutive shares in calculating the diluted earnings per share.


Recent Accounting Pronouncements


The Company has evaluated all the recently issued accounting pronouncements through the filing date of these financial statements and does not believe that any of these pronouncements will have a material impact on the Company's financial position and results of operations.

NOTE 3 –STOCKHOLDERS’ DEFICIT

Stock-based compensation


On March 3, 2014, the Company issued 10,000,000 shares to the founder of the Company for services rendered at their fair value as determined by management of $1,000.


On March 3, 2014, the Company issued 2,040,000 shares to two individuals (1,020,000 shares each) for services rendered. The Company valued these shares at the fair value of $204.


On April 1, 2014, the Company issued 1,020,000 shares to a consultant for services rendered.  The common shares were valued at fair value using the recent sale price of the common stockrates on the date of grant of $0.005 per share, or $5,100enactment.


Common stock sold for cash


On April 3, 2014,At January 31, 2018 the Company issued 2,000,000 shares for $10,000 at a pricehad net operating loss carryforwards of $0.005 per share.


NOTE 4 –INCOME TAXES


The Company maintains deferredapproximately $772,380 that may be offset against future taxable income through 2038. No tax assets that reflectbenefits have been reported in the financial statements, because the potential tax benefits of the net tax effectsoperating loss carry forwards are offset by a valuation allowance of temporary differences between the carrying amountssame amount.

Due to the change in ownership provisions of assets and liabilitiesthe Tax Reform Act of 1986, net operating loss carryforwards for financialFederal income tax reporting purposes andare subject to annual limitations. Should a significant change in ownership occur, net operating loss carryforwards may be limited as to use in the amounts used for income tax purposes. Thesefuture.

Net deferred tax assets consist of net operating loss carryforward. The net deferred tax asset has been fully offset by a valuation allowance because of the Company's history of losses.following components:


  January 31, April 30,
  2018 2017 2016
  (Unaudited)    
Deferred tax assets:            
NOL Carryover $162,200  $158,394  $115,747 
Valuation allowance  (162,200)  (158,394)  (115,747)
Net deferred tax asset $—    $—    $—   

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F-10ARAZU INCORPORATED


Notes to the Financial Statements


For the Nine Months Ended January 31, 2018 and 2017 (Unaudited)


and For the Years ended April 30, 2017 and 2016

The Company’s approximate net deferredincome tax asset asprovision (benefit) differs from the amount of April 30, 2014 is as follows:income tax determined by applying the U.S. federal income tax rate of 34% to pretax income due to the following:


  Nine Months Ended
January 31,
 Year Ended
April 30,
  2018 2017 2017 2016
  (Unaudited)    
         
Expected tax at 34% $(145,865) $(30,356) $(50,298) $(43,395)
Non-deductible stock-based compensation  34,000   —     7,650   —   
Non- deductible amortization of debt discounts  7,650   —     —     —   
Remeasurement of deferred income tax assets from 34% to 21% (a)  100,409   —     —     —   
Change in valuation allowance  3,806   30,356   42,648   43,395 
Provision for (benefit from) income taxes $—    $—    $—    $—   

(a)

DeferredAs a result of the Tax Asset:

NetCuts and Jobs Act enacted on December 22, 2017, the United States corporate income tax rate is 21% effective January 1, 2018. Accordingly, we have reduced our deferred income tax asset relating to our net operating loss carryforward

$

              15,020

Valuation (and the valuation allowance

    (15,020)

Net deferred tax asset

$

                         -

thereon) by $100,409 from $262,609 to $162,200 as of January 31, 2018.


For all periods presented, the Company had no unrecognized tax benefits that, if recognized, would affect the effective tax rate.

The Company provided a valuation allowance equal todid not have any tax positions for which it is reasonably possible that the deferred incometotal amount of unrecognized tax assets forbenefits will significantly increase or decrease within the period ended April 30, 2014 because it was not known whether future taxable income will be sufficient to utilize the loss carryforward. next 12 months.

The potential tax benefitCompany includes interest and penalties arising from the loss carryforward will expireunderpayment of income taxes in 2034.the statements of operations in the provision for income taxes.  For all periods presented, the Company had no accrued interest or penalties.


Additionally, the future utilization of the net operating loss carryforward to offset future taxable income may beAll tax years remain subject to an annual limitation as a result of ownership changes that could occur in the future. If necessary, the deferred tax assets will be reducedexamination by any carryforward that expire prior to utilization as a result of such limitations, with a corresponding reduction of the valuation allowance.major taxing jurisdictions.


NOTE 5 –RELATED PARTY TRANSACTIONS

Accrued expenses – related parties


On March 1, 2014, the Company entered into a three-year employment agreement with its chief executive officer. In accordance to the employment agreement, the Company hired Paul Clewlow as the chairman, president and chief executive officer of the Company. The Company agreed to pay a base salary of $10,000 per month, plus applicable bonuses as are awarded by the Board of Directors from time to time based on performance, which may either be paid in stock or cash at the discretion of the Board. During the period from March 3, 2014 (inception) to April 30, 2014, no salary has been paid. As of April 30, 2014, the amount due to chief executive officer was $20,000 and was included in the accrued expenses – related parties on the accompanying balance sheet.


On March 1, 2014, the Company entered into a seven-month service agreement with Elliott Polatoff, a shareholder. In accordance to the service agreement, the Company issued Mr. Polatoff 1,020,000 shares of common stock and agree to pay Mr. Polatoff $5,000 per month during the term of the service agreement. During the period from March 3, 2014 (inception) to April 30, 2014, there is no cash payment made to Mr. Polatoff. As of April 30, 2014, the amount due to Mr. Polatoff was $10,000 and was included in the accrued expenses – related parties on the accompanying balance sheet.


On March 1, 2014, the Company entered into a seven-month service agreement with David Lovatt, a shareholder. In accordance to the service agreement, the Company issued Mr. Lovatt 1,020,000 shares of common stock and agreed to pay Mr. Lovatt $5,000 per month during the term of the service agreement. During the period from March 3, 2014 (inception) to April 30, 2014, there is no cash payment made to Mr. Lovatt. As of April 30, 2014, the amount due to Mr. Lovatt was $10,000 and was included in the accrued expenses – related parties on the accompanying balance sheet.




F-11




Due to related parties


At April 30, 2014, the Company owed Paul Clewlow, its chief executive office, $2,853 for travel reimbursement which has been included in due to related parties on the accompanying balance sheet.


At April 30, 2014, the Company owed David Lovatt, a shareholder, $70 for payment made on behalf of the Company and which has been included in due to related parties on the accompanying balance sheet.


Lease


On March 3.  2014 and effective May 1, 2014, the Company entered into a lease agreement with the Company’s chief executive officer for the lease of office space at a monthly rent of $250 per month.


NOTE 6 –7 - COMMITMENTS AND CONTINGENCIES

 

ConcentrationsConcentration of revenue

 

Concentration of revenue


All the revenue included in the accompanying statementstatements of operations is from one linethe sale of business, brand development services, frommotorcycle parts supplied by a single third party basedlocated in the United Kingdom.


Commitments


Executive Employment Agreements

On AprilMarch 1, 2014, the Company entered into an employment agreement with Paul Clewlow, the chief executive officer of the Company. The agreement was for a term of three years and provided for a base salary of $10,000 per month, plus applicable bonuses as are awarded by the Board of Directors from time to time based on performance, which were payable in stock or cash at the discretion of the Board. On March 1, 2017, the Company entered into another three year employment agreement with the chief executive officer of the Company with the same terms as the March 1, 2014 Executive Employment Agreement. The Company, by a vote of a majority of the Board of Directors, may terminate the agreement at any time by providing at least 90 days written notice to the chief executive officer.

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ARAZU INCORPORATED

Notes to the Financial Statements

For the Nine Months Ended January 31, 2018 and 2017 (Unaudited)

and For the Years ended April 30, 2017 and 2016

For the nine months ended January 31, 2018 and 2017, officer compensation expense pursuant to the Executive Employment Agreements was $90,000 and $90,000, respectively. For the years ended April 30, 2017 and 2016, officer compensation expense pursuant to the Executive Employment Agreement was $120,000 and $120,000, respectively. At January 31, 2018, April 30, 2017, and April 30, 2016, accrued officer compensation due the Company’s chief executive officer pursuant to the Executive Employment Agreements was $339,018, $249,018, and $134,318, respectively.

Service Contracts

On May 1, 2017, the Company entered into a Consulting Agreement with Green Light Developments, LLC, an entity controlled by David Lovatt (see Note 3). The agreement is for a term of twelve months and provides for monthly compensation of $12,000. The Company may terminate the agreement at any time by sending 90 days written notice of termination to Green Light Developments, LLC. For the nine months ended January 31, 2018, consulting fees expense pursuant to this Consulting Agreement was $108,000.

On May 1, 2017, the Company entered into a service agreement with Carl Grant, who owns 6%Jon Spruce, a service provider of the Company’s outstanding common shares as of April 30, 2014.Company. The agreement is for a term of sixtwelve months and requires 1,020,000 shares in totalprovides for monthly compensation of $5,000. For the nine months ended January 31, 2018, consulting fees expense pursuant to Carl Grant.


Legal services


On April 2, 2014, the Company entered into athis service agreement with a law firm. In accordance to the agreement, the Company agreed to pay the law firm a flat fee of $20,000 and 4.9% of the Company’s outstanding common shares at the time of effectiveness of the Form S-1 registration statement. The law firm provides the services as necessary for the Company’s going public transaction in exchange for the flat fee until October 1, 2014. Pursuant to such agreement, in July 2014, the Company issued 1,000,000 shares.




F-12




was $45,000.NOTE 7 –SUBSEQUENT EVENTS

 

From May 1, 2014 to September 2, 2014, the Company sold 2,210,000 shares for proceeds of $47,500.

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PROSPECTUS

On July 14, 2014, the Company entered into a one year agreement for website development and marketing services. In connection with this agreement, the Company issued 2,100,000 shares valued $0.05 per share or $105,000.


On July 28, 2014, the Company issued 1,000,000 shares for legal and other services rendered. These common shares were valued at $0.05 per share or $50,000.


On July 24, 2014, the Company amended its articles of incorporation to authorize 10,000,000 shares of authorized preferred shares with a par value of $0.001 per share, of which 1,000,000 shares were designated as Series A Preferred Stock. The holders of Series A Preferred will not be entitled to any dividends or distributions. The holders of Series A Preferred shall vote together with the holders of common stock as a single class on all matters submitted for a vote of holders of common stock and each share of Series A Preferred shall have voting rights equal to 200 shares of the Company’s common stock. In July, 2014, 1,000,000 shares of Series A Preferred were issued to the Company’s chief executive officer.



F-13




PROSPECTUS – SUBJECT TO COMPLETION DATED ___, 2014

ARAZU INCORPORATED


Selling shareholders are offering upUP TO 11,209,000 SHARES OF

COMMON STOCK

TO BE SOLD BY CURRENT SHAREHOLDERS

We have not authorized any dealer, salesperson or other person to 4,460,000 shares of common stock. The selling shareholders will offer their shares at $.25 per share until our shares are quotedgive you written information other than this prospectus or to make representations as to matters not stated in this prospectus. You must not rely on the OTC Bulletin Board or Pink Sheet Exchange and thereafter at prevailing market prices or privately negotiated prices.


Our common stockunauthorized information. This prospectus is not now listed onan offer to sell these securities or a solicitation of your offer to buy the securities in any national securities exchange,jurisdiction where that would not be permitted or legal. Neither the NASDAQ stock market or the OTC Bulletin Board.


Dealer Prospectus Delivery Obligation


Until _________ (90 days fromdelivery 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 date hereof.

Until May __, 2018 (90 days after the date of this prospectus), all dealers that effect transactions in these securities, whether or not participating in this offering,shares of common stock may be required to deliver a prospectus. This is in addition to the dealers'dealer’s obligation to deliver a prospectus when acting as underwritersan underwriter and with respect to their unsold allotments or subscriptions.


 

THE DATE OF THIS PROSPECTUS IS MAY __, 2018

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PART II-INFORMATIONII – INFORMATION NOT REQUIRED IN PROSPECTUS


INDEMNIFICATION OF OFFICERS AND DIRECTORS


Pursuant to Section 607.0850 of the Florida Revised Statutes, we have the power to indemnify any person made a party to any lawsuit by reason of being a director or officer of the Registrant, or serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses (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 best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. Our Bylaws provide that the Registrant shall indemnify its directors and officers to the fullest extent permitted by Florida law.


With regard to the foregoing provisions, or otherwise, we have 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, as amended, 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 a director, officer or controlling person of the Corporation in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the common shares being registered, we will, unless in the opinion of our counsel the matter has been settled by a controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by us is against public policy as expressed in the Securities Act of 1933, as amended, and will be governed by the final adjudication of such case.


OTHER EXPENSES OFAND ISSUANCE AND DISTRIBUTION


The following table is an itemization of all expenses without consideration to future contingencies, incurred or expected to be incurredpayable by our Corporationthe Registrant in connection with the issuance and distribution of the common sharessecurities being offered by this Prospectus. Items marked with an asterisk (*) representregistered (other than underwriting discounts and commissions, if any) are set forth below. Each item listed is estimated, expenses. We have agreed to pay allexcept for the costsSecurities and expenses of this offering. Selling security holders will pay no offering expenses.Exchange Commission registration fee.


Securities and Exchange Commission registration fee $64.96 
Legal fees and expenses  26,500.00 
Accounting fees and expenses  20,000.00 
Miscellaneous  1,000.00 
Total expenses $47,564.96 

ItemINDEMNIFICATION OF OFFICERS AND DIRECTORS

 

AmountPursuant to our charter and under the Florida Business Corporation Act, our directors are not liable to us or our stockholders for monetary damages for breach of fiduciary duty, except for liability in connection with a breach of duty of loyalty, for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, for authorization of illegal dividend payments or stock redemptions under Florida law or any transaction from which a director has derived an improper personal benefit. Our charter provides that we are authorized to provide indemnification of (and advancement of expenses) to directors, officers, employees and agents of the Company (and any other persons to which applicable law permits the Company to provide indemnification) through by-law provisions, agreements with such persons, vote of stockholders or disinterested directors, or otherwise, to the fullest extent permitted by applicable law.

 

SEC Registration Fee

$

     137.17

Legal Fees and Expenses*

$

20,000.00

Accounting Fees and Expenses*

$

10,000.00

Miscellaneous*

$

  9,862.83

Total*

$

40,000.00

*Estimated Figure



49




RECENT SALES OF UNREGISTERED SECURITIES


From our inception on March 3, 2014,In the two years prior to present,this Offering, we offered and sold 4,310,000 common shares for cash consideration of $57,500 and issued 6,160,000 common shares for services to selling stockholders named in this registration statement. We used the cash proceeds from in the offering to pay Paul Clewlow, our sole officer and director, our consultants, David Lovatt and Elliot Polatoff and general operating expenses.securities below. None of the issuanceissuances involved underwriters, underwriting discounts or commissions. We relied on Section 4 (2)upon Sections 4(2) of the Securities Act, and Rule 506 of the Securities Act of 1933, as amended and Rule 506 (b) for the offersoffer and salessale of the Securities.securities.


We believed these exemptions were available because:


·We are not a blank check company;

·

·We filed a Form D, Notice of Sales, with the SEC;

we are not a blank check company;

·Sales were not made by general solicitation or advertising;


·All certificates had restrictive legends;

·

·Sales were made to persons with a pre-existing relationship to our Chief Executive Officer and sole director Paul Clewlow; and

we filed a Form D, Notice of Sales, with the SEC;

·Sales were made to investors who represented that they were accredited investors.


·

sales were not made by general solicitation or advertising;


·

all certificates had restrictive legends;


·

sales were made to persons with a pre-existing relationship to our chief executive officer and sole director, Paul Clewlow; and


·

sales were made to investors who represented that they were accredited investors.


In connection with the above transactions, although some of the investors represented they weremay have also been accredited, we provided the following:


·

accessfollowing to all our books and records.investors:


·Access to all our books and records.

·Access to all material contracts and documents relating to our operations.
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·

·The opportunity to obtain any additional information, to the extent we possessed such information, necessary to verify the accuracy of the information to which the investors were given access.

access to all material contracts and documents relating to our operations.

·Prospective investors were invited to review at our offices at any reasonable hour, after reasonable advance notice, any materials available to us concerning our business.


·

the opportunity to obtain any additional information, to the extent we possessed such information, necessary to verify the accuracy of the information to which the investors were given access. Prospective investors were invited to review at our offices at any reasonable hour, after reasonable advance notice, any materials available to us concerning our business.


Common Stock Offering For Cash Consideration


On April 3, 2014, we sold 1,000,000an aggregate of 2,000,000 shares of our common stock to Elliot Polatoff2 investors for the price of $.005$0.005 per share or an aggregate of $5,000.


On April 3, 2014, we sold 1,000,000 shares of our common stock to David Lovatt for the price of $.005 per share or an aggregate of $5,000.$10,000.

 

On May 28, 2014, we sold 500,000 shares of our common stock to Edith Polatoff for the price of $.01 per share or an aggregate of $2,000.

On July 16, 2014, we sold 200,000 shares of our common stock to Daniel Jenkins for the price of $.025 per share or an aggregate of $5,000. To date, Mr. Jenkins has paid us $2,000 and he owes us a balance of $3,000 for the shares he purchased.




50




On June 26, 2014, we sold 750,000 shares of our common stock to Sean Fuldaan investor for the price of $.01$0.01 per share or an aggregate of $7,500.

 

On July 7, 2014 and July 21, 2014, we sold 100,000an aggregate of 400,000 shares of our common stock to David Rogers2 investors for the price of $.05$0.05 per share or an aggregate of $5,000. On July 21, 2014, we sold 200,000 common shares to David Rogers for the price of $.05 per shares or an aggregate of $10,000.$20,000.

 

On July 7, 2014 we sold 100,000 shares of our common stock to Crystal Rogers for the price of $.05 per share or an aggregate of $5,000. On July 21, 2014, we sold 100,000 common shares to Crystal Rogers for the price of $.05 per shares or an aggregate of $5,000.


On July 11, 2014, we sold 40,000 shares of our common stock to Jerry Lee Guder atan investor for the price of $.05$0.05 per share or an aggregate of $2,000.

 

On July 14, 2014, we sold 40,000 shares of our common stock to Andrew Burdenan investor for the price of $.05$0.05 per share or $2,000.

On July 16, 2014, we sold 80,000 shares of our common stock to an investor for the price of $0.025 per share or $2,000.

On July 21, 2014, we sold an aggregate of 80,000 shares of our common stock to 2 investors for the price of $0.05 per share or an aggregate of $4,000.

On July 23, 2014, we sold an aggregate of 700,000 shares of our common stock to 2 investors for the price of $0.01 per share or an aggregate of $7,000.

On October 22, 2014, we sold 149,700 shares of our common stock to an investor for the price of $0.01 per share or $1,497.

On October 23, 2014, we sold 154,300 shares of our common stock to an investor for the price of $0.01 per share or $1,543.05.

On May 10, 2017, we sold an aggregate of 120,000 shares of our common stock to 3 investors for the price of $0.05 per share or an aggregate of $6,000.

On May 16, 2017, we sold an aggregate of 45,000 shares of our common stock to 4 investors for the price of $0.05 per share or an aggregate of $2,250.

On June 7, 2017, we sold an aggregate of 40,000 shares of our common stock to 4 investors for the price of $0.05 per share or an aggregate of $2,000.


On July 21, 2014, we sold 40,000 shares of our common stock to Dilip Patel for the price of $.05 per share or aggregate of $2,000.  


On July 21, 2014, we sold 40,000 shares of our common stock to Calin Homa for the price of $.05 per share or aggregate of $2,000.  


On July 23, 2014, we sold 200,000 shares of our common stock to Peter Barnes for the price of $.01 per share or aggregate of $2,000.  


Shares for Services


On March 3, 2014, we issued 10,000,000 shares of our common stock to sole officer and director, Paul Clewlow for services rendered. We valued these shares at the price of $.0001$0.0001 per share or an aggregate of $1,000. On July 18, 2014, we issued 1,000,000 Series A Preferred shares to Paul Clewlow in exchange for services rendered. We valued these shares at an aggregate of $1,000.


On March 3, 2014, we issued 1,020,000 shares of common stock to Elliot Polatoff for services rendered. We valued these shares at the price of $.0001$0.0001 per share or an aggregate of $102.

 

On March 3, 2014, we issued 1,020,000 shares of our common stock to David Lovatt for services rendered. We valued these shares at the price of $.0001$0.0001 per share or an aggregate of $102.

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On April 11, 2014, we issued 1,020,000 shares of our common stock to Carl Grant for services rendered. We valued these shares at the price of $.005$0.005 per share or an aggregate of $5,100.

On July 18, 2014, we issued 1,000,000 Series A Preferred shares to Paul Clewlow in exchange for services rendered. We valued these shares at $100. The Series A Preferred shares entitle him to 200 votes per share or an aggregate of 200,000,000 votes on all matters submitted to our common stockholders. As a result, Mr. Clewlow holds a controlling interest in the Company, and has the ability to determine the outcome of all matters submitted to our stockholders for approval, including the election of directors.

 

On July 28, 2014, we issued 400,000 shares of our common stock to Hamilton & Associates Law Group, P.A. a Florida corporation controlled by Brenda Hamilton for legal services rendered to us. We valued these shares at $.05 per share or an aggregate of $20,000. On July 28, 2014, we issued 400,000 and 200,000 shares to Todd Feinstein and Jonathan Dunsmoor respectively. We valued these shares at $.05$0.05 per share or an aggregate of $20,000 and $10,000, respectively.


On July 28, 2014, we issued 2,100,000 shares of our common stock to 2,100,000 Ditto Media Solution, a U.K. company controlled fifty percent (50%) by Jonathan Spruce and fifty percent (50%) by his spouse, Rebecca Spruce. We valued the shares at $.05$0.05 per share or an aggregate of $105,000.

 



On March 1, 2017, we issued an aggregate of 150,000 shares of our common stock for consulting services. We valued these shares at $0.05 per share, or an aggregate of $7,500.

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On March 1, 2017, we issued 300,000 shares of our common stock to John D. Thomas, P.C. for legal services rendered to the Company. We valued these shares at $0.05 per share, or $15,000.



EXHIBITS

Exhibit 3.1 ArticlesOn June 15, 2017, the Company issued 10,000,000 common shares of Incorporation  

Exhibit 3.2 Certification of Designation

Exhibit 3.3 Bylaws

Exhibit 4.1 Form of Subscription Agreement

Exhibit 5.1 Legal Opinion of Hamilton & Associates Law Group, P.A.

Exhibit 10.1 Agreement betweenthe Company to Paul Clewlow, and Arazu Incorporatedthe Company’s Chief Executive Officer in exchange for services provided to the Company. We valued the shares at $0.01 per share or $100,000.

Exhibit 10.2 Agreement between David Lovatt and Azazu Incorporated

Exhibit 10.3 Agreement between Elliot Polatoff and Arazu Incorporated

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Exhibit 10.4 EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

ExhibitNumber

Description

3.1Articles of Incorporation of Arazu Incorporated (incorporated by reference to Exhibit 3.1 to Form S-1 filed on August 4, 2014).
3.2Bylaws of Arazu Incorporated (incorporated by reference to Exhibit 3.3 to Form S-1 filed on August 4, 2014).
3.3Certificate of Designation of Series A Preferred Stock (incorporated by reference to Exhibit 3.2 to Form S-1 filed on August 4, 2014).
4.1Form of Subscription Agreement (incorporated by reference to Exhibit 4.1 to Form S-1 filed on August 4, 2014).
5.1Opinion of John D. Thomas P.C.*
10.1Agreement between Paul Clewlow and Arazu Incorporated (incorporated by reference to Exhibit 10.1 to Form S-1 filed on August 4, 2014).
10.2Agreement between David Lovatt and Azazu Incorporated (incorporated by reference to Exhibit 10.2 to Form S-1 filed on August 4, 2014).
10.3Agreement between Elliot Polatoff and Arazu Incorporated (incorporated by reference to Exhibit 10.3 to Form S-1 filed on August 4, 2014).
10.4Agreement between ExactRep Limited and Arazu Incorporated (incorporated by reference to Exhibit 10.4 to Form S-1 filed on August 4, 2014).
10.4Agreement between Ditto Media Solutions and Arazu Incorporated (incorporated by reference to Exhibit 10.7 to Form S-1 filed on August 4, 2014).
10.5Agreement between Carl Grant and Arazu Incorporated (incorporated by reference to Exhibit 10.5 to Form S-1 filed on August 4, 2014).
10.6Agreement between Jake Arave and Arazu Incorporated (incorporated by reference to Exhibit 10.6 to Form S-1 filed on August 4, 2014).
10.7Agreement between Kyle Denos and Arazu Incorporated (incorporated by reference to Exhibit 10.7 to Form S-1 filed on August 4, 2014).
10.8Agreement between Monica Denos and Arazu Incorporated (incorporated by reference to Exhibit 10.8 to Form S-1 filed on August 4, 2014).
10.9Agreement between Mary Foster and Arazu Incorporated (incorporated by reference to Exhibit 10.9 to Form S-1 filed on August 4, 2014).
10.10Engagement Agreement between Kenneth I. Denos P.C. and Arazu Incorporated (incorporated by reference to Exhibit 10.10 to Form S-1 filed on August 4, 2014).
10.11Engagement Agreement between John D. Thomas P.C. and Arazu Incorporated (incorporated by reference to Exhibit 10.11 to Form S-1 filed on August 4, 2014).
14.1Code of Ethics for the Registrant  (incorporated by reference to Exhibit 14.1 to Form S-1 filed on August 4, 2014).
23.1Consent of Michael Studer CPA, P.C.*
23.2Consent of John D. Thomas P.C.

Exhibit 10.5 Agreement between Carl Grant and Arazu Incorporated*filed herewith

Exhibit 10.6 Lease Agreement between Arazu Incorporated and Paul Clewlow

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Exhibit 10.7 Agreement between Ditto Media Solutions and Arazu Incorporated

Exhibit 23.1 Consent of Malone Bailey LLP.

Exhibit 23.2 Consent of Hamilton & Associates Law Group, P.A. (included in Exhibit 5.1)


UNDERTAKINGS

Undertakings of the Registrant

The undersigned registrantRegistrant hereby undertakesfurther undertakes:


1.(a)(1) To file, during any period in which offers or sales of securities are being made, a post-effective amendment to this registration statement:statement to:


i.

To include(i) Include any Prospectusprospectus required by sectionSection 10(a)(3) of the Securities Act of 1933;1933 (the “Securities Act”);


ii.

(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 in the aggregate, represent a fundamental change in the information set forth in the registration statement. Notwithstanding the foregoing, any increase or decrease 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 end of the estimated maximum offering range may be reflected in the form of Prospectusprospectus filed with the Commission pursuant to Rule 424(b) (Sec. 230.424(b) of this chapter) if, in the aggregate, the changes in volume and price represent no more than twenty percent (20%)a 20% change in the maximum aggregate offering price set forth in the “Calculation of Registration Fee” table in the effective registration statement.


iii.

(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 therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.




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3.(3) To remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at the termination of the offering.


4.(4) That, for the purpose of determining liability under the Securities Act 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: The undersigned registrant undertakes that in a primary offering of securities of the undersigned registrant pursuant to this 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, the undersigned registrant will be a seller to the purchaser and will be considered to offer or sell such securities to such purchaser:


i.

(i) Any Preliminary Prospectuspreliminary prospectus or Prospectusprospectus of the undersigned registrant relating to the offering required to be filed pursuant to Rule 424;


ii.

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

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iii.

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


iv.

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


5. That, for the purposeLimitation of determining liabilityLiability of Directors and Officers; Indemnification and Advance of Expenses

Pursuant to our charter and under the Florida Business Corporation Act (hereafter, the “Florida Act”), our directors are not liable to us or our stockholders for monetary damages for breach of fiduciary duty, except for liability in connection with a breach of duty of loyalty, for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law, for authorization of illegal dividend payments or stock redemptions under Florida law or any transaction from which a director has derived an improper personal benefit. Our charter provides that we are authorized to provide indemnification of (and advancement of expenses) to our directors, officers, employees and agents (and any other persons to which applicable law permits us to provide indemnification) through Bylaw provisions, agreements with such persons, vote of stockholders or disinterested directors, or otherwise, to the fullest extent permitted by applicable law.

Disclosure of Commission Position on Indemnification for Securities Act of 1933 to any 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.Liabilities


6. Insofar as indemnification for liabilities arising under the Securities Act of 1933 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 Commission,SEC 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, (otherother than the payment by us of expenses incurred or paid by a director, officerone of our directors, officers, or controlling person of the corporationpersons in the successful defense of any action, suit or proceeding)proceeding, is asserted by such director, officerone of our directors, officers, or controlling personpersons in connection with the securities being registered, we will, unless in the opinion of our counsel the matter has been settled by a controlling precedent, submit to a court of appropriate jurisdiction the question of whether such indemnification by us is against public policy as expressed in the Securities Act, of 1933, as amended, and we will be governed by the final adjudication of such case.issue.


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SIGNATURES


Pursuant to the requirements of the Securities Act of 1933, the registrantRegistrant has duly caused this registration statementRegistration Statement on Form S-1 to be signed on its behalf by the undersigned in his personal capacity, thereunto duly authorized, in the City of Warwickshire, England, on September 3, 2014.the 11th day of May, 2018.


ARAZU INCORPORATED

Dated:  May 23, 2018

Arazu Incorporated

By:

/s/  Paul Clewlow

Paul Clewlow

President,Chief Executive Officer and sole director, Principal Executive Officer Principal Financial Officer,and Principal Accounting Officer and Director


In accordanceKNOW ALL MEN BY THESE PRESENT, each person whose signature appears below hereby constitutes and appoints Paul Clewlow and each of them, his or her true and lawful attorneys-in-fact and agents, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments to this Registration Statement and any registration statement filed pursuant to Rule 462(b) under the Securities Act, and to file the same, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents full power and authority to do and perform each and every act and thing requisite and necessary to be done in and about the premises, as fully and to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or their substitutes, may lawfully do or cause to be done by virtue hereof.

Pursuant to the requirements of the Securities Exchange Act of 1933, this registration statement wasRegistration Statement has been signed by the following persons inon behalf of the capacities andRegistrant on the dates stated:


NAMEindicated.

 

TITLE

DATE

SignatureTitleDate
/s/  Paul ClewlowMay 23, 2018
Paul ClewlowChief Executive Officer, Principal Executive Officer, and Director

 

 

 

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/s/ Paul Clewlow

President, Principal Executive Officer,

September 3, 2014

Paul Clewlow 

Principal Financial Officer, Principal

       Accounting Officer, Director




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