Attached files
file | filename |
---|---|
EX-23.1 - CONSENT - Flameret, Inc. | flameret_s1a-ex2301.htm |
EX-10.1 - PATENT LICENSE AGREEMENT - Flameret, Inc. | flameret_s1a-ex1001.htm |
EX-5.1 - LEGAL OPINION - Flameret, Inc. | flameret_s1a-ex0501.htm |
EX-3.1A - ARTICLES OF INCORPORATION - Flameret, Inc. | flameret_s1a-ex0301a.htm |
As filed
with the Securities and Exchange Commission on November 17,
2009
Registration
No. 333-162022
SECURITIES
AND EXCHANGE COMMISSION
==================================
FORM
S-1/A
Amendment
No. 1
REGISTRATION
STATEMENT
UNDER
THE
SECURITIES ACT OF 1933
==================================
FLAMERET,
INC.
(Exact
Name of Small Business Issuer in its Charter)
Nevada
|
2390
|
27-0755877
|
(State
or other Jurisdiction of Incorporation)
|
(Primary
Standard Classification Code)
|
(IRS
Employer Identification No.)
|
FLAMERET,
INC.
3280
Sunrise Highway Suite 51 Wantagh, NY 11793
Tel.:
516- 816-2563
(Address
and Telephone Number of Registrant’s Principal
Executive
Offices and Principal Place of Business)
Paracorp,
Incorporated
318 North
Carson Street, Suite 208
Carson
City, Nevada 89032
Tel.:
1-775-883-8104
(Name,
Address and Telephone Number of Agent for Service)
Copies of
communications to:
Law Office of Leo J. Moriarty
12534
Valley View Street #231
Garden
Grove, California 92845
Telephone
714-305-5783
Facsimile
714-316-1306
E- Mail
LJMLegal@aol.com
Approximate
date of commencement of proposed sale to the public: As soon as practicable
after this Registration Statement becomes effective. If any of the securities
being registered on this Form are to be offered on a delayed or continuous basis
pursuant to Rule 415 under the Securities Act of 1933, check the following box.
o
If this
Form is filed to register additional securities for an offering pursuant to Rule
462(b) under the Securities Act of 1933, please check the following box and list
the Securities Act registration Statement number of the earlier effective
registration statement for the same offering. o
If this
Form is a post-effective amendment filed pursuant to Rule 462(c) under the
Securities Act of 1933, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering.o
If this
Form is a post-effective amendment filed pursuant to Rule 462(d) under the
Securities Act of 1933, check the following box and list the Securities Act
registration statement number of the earlier effective registration statement
for the same offering.o
If
delivery of the prospectus is expected to be made pursuant to Rule 434, please
check the following box. o
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of “large accelerated filer,” “accelerated filer” and “smaller
reporting company” in Rule 12b-2 of the Exchange Act.
Large
accelerated filer
|
o
|
Accelerated
filer
|
o
|
Non-accelerated
filer
|
o
|
Smaller
reporting company
|
x
|
CALCULATION
OF REGISTRATION FEE
Title
of Each Class Of Securities to be Registered
|
Amount
to be
Registered
|
Proposed
Maximum
Aggregate
Offering
Price
per
share
|
Proposed
Maximum
Aggregate
Offering
Price
|
Amount
of
Registration
fee
|
||||||||||
Common
Stock, $0.001 par value per share
|
8,000,000
|
$
|
0.001
|
$
|
8,000
|
$0.45
|
*
|
|||||||
Total
Registration fee
|
$
|
8,000
|
$0.45
|
*
|
(1) Estimated
solely for the purpose of determining the registration fee pursuant to Rule
457(o) promulgated under the Securities Act of 1933, as amended. Includes stock
to be sold by the selling stockholder.
(2) The
shares of common stock being registered hereunder are being registered for
resale by a certain selling stockholder named in the
prospectus.* Estimate amount
THE
REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES AS
MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A
FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT
SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF THE
SECURITIES ACT OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON
SUCH DATE AS THE COMMISSION, ACTING PURSUANT TO SUCH SECTION 8(a), MAY
DETERMINE.
The
information in this preliminary prospectus is not complete and may be changed.
These securities may not be sold until the registration statement filed with the
U.S. Securities and Exchange Commission (“SEC”) is effective. This preliminary
prospectus is not an offer to sell these securities and it is not soliciting an
offer to buy these securities in any jurisdiction where the offer or sale is not
permitted.
2
PRELIMINARY PROSPECTUS
Subject
to completion, dated November 17, 2009
FLAMERET,
INC.
8,000,000 SHARES OF COMMON STOCK
This
prospectus relates to the resale of an aggregate of 8,000,000 shares of common
stock, par value $0.001, by Christopher Glover, the selling security holder
under this prospectus. These securities will be offered for sale by the selling
security holder identified in this prospectus in accordance with the methods and
terms described in the section of this prospectus entitled “Plan of
Distribution."
We will
not receive any of the proceeds from the sale of these shares. We will pay all
expenses, except for the brokerage expenses, fees, discounts and commissions,
which will all be paid by the selling security holder, incurred in connection
with the offering described in this prospectus. Our common stock is more fully
described in the section of this prospectus entitled “Description of
Securities."
Our
common stock is presently not traded on any market or securities exchange. The
selling security holders have not engaged any underwriter in connection with the
sale of their shares of common stock. Common stock being registered in this
registration statement may be sold by selling security holders at a fixed price
of $0.001 per share until our common stock is quoted on the OTC Bulletin Board
(“OTCBB”) and thereafter at a prevailing market prices or privately negotiated
prices or in transactions that are not in the public market. There can be no
assurance that a market maker will agree to file the necessary documents with
the Financial Industry Regulatory Authority (“FINRA”), which operates the OTCBB,
nor can there be any assurance that such an application for quotation will be
approved. We have agreed to bear the expenses relating to the registration of
the shares of the selling security holders.
The
selling security holder may be deemed to be an "underwriter” within the meaning
of the Securities Act of 1933, as amended with respect to all other shares being
offered hereby.
The
selling security holder has set an offering period of 25 days from the date of
effectiveness.
Flameret,
Inc. is a development stage company. Flameret, Inc. has a limited history of
operations. We presently do not have the funding to execute our
business plan. As of the date of this
prospectus, we have generated no revenues from our business
operations.
AN
INVESTMENT IN OUR COMMON STOCK INVOLVES A HIGH DEGREE OF RISK. See "Risk
Factors” beginning on page 8 for risks of an investment in the securities
offered by this prospectus, which you should consider before you purchase any
shares.
NEITHER
THE SEC NOR ANY STATE SECURITIES COMMISSION HAS APPROVED OR DISAPPROVED OF THESE
SECURITIES OR DETERMINED IF THIS PROSPECTUS IS TRUTHFUL OR COMPLETE. ANY
REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE.
The
Date of This Prospectus is: November 17,
2009
This
prospectus is not an offer to sell any securities other than the shares of
common stock offered hereby. This prospectus is not an offer to sell securities
in any circumstances in which such an offer is unlawful.
We have
not authorized anyone, including any salesperson or broker, to give oral or
written information about this offering, the Company, or the shares of common
stock offered hereby that is different from the information included in this
prospectus. You should not assume that the information in this prospectus, or
any supplement to this prospectus, is accurate at any date other than the date
indicated on the cover page of this prospectus or any supplement to
it.
3
TABLE
OF CONTENTS
PROSPECTUS
SUMMARY
|
5
|
THE
OFFERING
|
7
|
RISK
FACTORS
|
9
|
(A)
RISKS RELATED TO OUR BUSINESS AND THIS OFFERING
|
9
|
(B)
RISKS RELATED TO THE INDUSTRY
|
10
|
(C)
RISKS RELATED TO THE OWNERSHIP OF OUR SECURITIES AND RISKS RELATED TO THIS
OFFERING
|
14
|
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
|
15
|
USE
OF PROCEEDS TO ISSUER
|
16
|
DILUTION
|
16
|
SELLING
SECURITY HOLDERS
|
16
|
PLAN
OF DISTRIBUTION
|
17
|
MANAGEMENT'S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
18
|
RESULTS
OF OPERATIONS
|
21
|
LIQUIDITY
AND CAPITAL RESOURCES
|
22
|
PLAN
OF OPERATION
|
23
|
DESCRIPTION
OF BUSINESS
|
24
|
MANAGEMENT
|
31
|
MANAGEMENT
BIOGRAPHIES
|
31
|
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT
|
33
|
REMUNERATION
OF DIRECTORS AND OFFICERS
|
34
|
EXECUTIVE
COMPENSATION
|
34
|
SUMMARY
COMPENSATION TABLE
|
34
|
COMPENSATION
OF DIRECTORS
|
34
|
STOCK
INCENTIVE PLAN
|
34
|
EMPLOYMENT
AGREEMENTS, TERMINATION OF EMPLOYMENT AND CHANGE-IN-CONTROL
ARRANGEMENTS
|
35
|
INTEREST
OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS
|
35
|
DISCLOSURE
OF COMMISSION POSITION OF INDEMNIFICATION FOR SECURITIES ACT
LIABILITIES
|
36
|
DESCRIPTION
OF SECURITIES
|
36
|
LEGAL
MATTERS
|
37
|
EXPERTS
|
38
|
INTEREST
OF NAMED EXPERTS AND COUNSEL
|
38
|
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE
|
38
|
AVAILABLE
INFORMATION
|
38
|
REPORTS
TO SECURITY HOLDER
|
38
|
EXHIBITS
AND FINANCIAL STATEMENTS SCHEDULES
|
38
|
FINANCIAL
STATEMENTS
|
F-1
|
PART
II INFORMATION NOT REQUIRED IN PROSPECTUS
|
II-1
|
4
PROSPECTUS
SUMMARY
This
summary highlights selected information contained elsewhere in this prospectus.
This summary does not contain all the information that you should consider
before investing in the common stock. You should carefully read the entire
prospectus, including “Risk Factors”, “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” and the Financial Statements,
before making an investment decision. In this Prospectus, the terms
“FLAMERET” “Company,” “we,” “us” and “our” refer to Flameret, Inc.
Overview
We were
incorporated in the State of Nevada on August 13, 2009 under the name of
Flameret, Inc. Flameret; Inc. is a
provider of a fire barrier product.
FLAMERET,
INC. is presently marketing for sale one product named (Flamex), a textile FR
treatment. Flamex is a liquid that is applied to textiles these
treated textiles are used at the production stage of such products as mattresses
to resist ignition from smoldering cigarettes and resist ignition from an
open-flame heat source. Flameret is a development stage company with
a limited history of operations.
Where
You Can Find Us
Our
principal executive office is located at FLAMERET, INC. 3280 Sunrise Highway
Suite 51 Wantagh, NY 11793. Our telephone number is 516- 816-2563. Our Internet
address is http://www.flameret.com.
GENERAL
INTRODUCTION
Flameret,
Inc. markets a range of liquid fire retardants. Since its inception, on August
13, 2009, Flameret has incurred significant losses to August 31,
2009.
We expect
to continue to incur losses for at least the next 12 months. We do not expect to
generate revenue that is sufficient to cover our expenses, and we do not have
sufficient cash and cash equivalents to execute our plan of operations for at
least the next twelve months. We will need to obtain additional financing to
conduct our day-to-day operations, and to fully execute our business plan. We
plan to raise the capital necessary to fund our business through the sale of
equity securities. (See "Plan of Operation")
Our
independent auditors have added an explanatory paragraph to their report of our
audited financial statements for the year ended August 31, 2009, stating that
our net loss of ($17,275), lack of revenues and dependence on our ability to
raise additional capital to continue our business, raise substantial doubt about
our ability to continue as a going concern. Our financial statements and their
explanatory notes included as part of this prospectus do not include any
adjustments that might result from the outcome of this uncertainty. If we fail
to obtain additional financing, either through an offering of our securities or
by obtaining loans, we may be forced to cease our planned business operations
altogether.
BUSINESS
DEVELOPMENT
The
Company was incorporated on August 13, 2009. The company has had limited
operations from incorporation (August 13, 2009) to August 31, 2009.
Over the
next twelve months, Flameret, Inc. plans to build out and establish its
reputation and network of clients and advisors in the liquid fire retardants and
treatment industry. The company aims to form long term working relationships
with a number of mattress and furniture companies that use fire retardant
materials.
Mr.
Christopher Glover is the Chief Executive Officer, President, (Principal
Executive Officer) and Director. Currently the company has two additional
employees; however as it grows, it plans to employ additional employees as
needed.
5
PRINCIPAL OPERATIONS, PRODUCTS AND SERVICES OF THE COMPANY
Flameret,
Inc. also referred to as Flameret and the Company, was incorporated in the State
of Nevada on August 13, 2009. Flameret, Inc. is a marketer of liquid fire
retardants specializing in providing liquid retardants to the mattress
industry.
Flameret,
Inc. is a development stage company with a limited history of
operations.
DESCRIPTION
OF SERVICES
Flameret,
Inc. was founded in the State of Nevada on August 13, 2009. The Company’s
intends to provide liquid fire barriers to component parts of a mattress.
Flameret, Inc.’s product Flamex is a liquid that is applied to textiles. These
treated textiles are used at the production stage of such products as mattresses
to resist ignition from smoldering cigarettes and resist ignition from an
open-flame heat source. The Company plans to market Flamex through a
combination of direct sales, referrals and networking within the
industry.
Business
Opportunity
Fire
Retardant technology has progressed over the last 30 years with two types of
fire protections evolving.
● One type is chemical
solutions and
● the other type is man-made
synthetic textiles.
There
have been applications of both of these products for carpets, drapery, furniture
and institutional mattress over the years. Both have their advantages for
different markets.
Chemical
treatments are becoming more prevalent in use on bedding, sleep wear,
mattresses, and furniture as the textiles they protect are more breathable and
comfortable and are economical.
Synthetic
fibers are found in fireman suits, racing car driver suits, most carpets, and
drapery and have made inroads into many other markets, however they are
expensive. Although they are durable, they are rigid and non-pliable to the
touch. In spite of these short comings, these products are making inroads into
residential mattress and industrial workers’ coverall fire barrier
markets.
The
market has been dominated by man-made synthetic fibers. These products create
toxic fumes during fires. In addition, there is growing evidence that PBDE’s
[called polybrominated diphenyl ethers] and PBDO’s [called pentabromodiphenyl
oxides] used in fire retardants worldwide are adversely impacting the health of
individuals and the environment. Flameret fire retardant is free of these toxic
chemicals.
Natural
fibers have been used since the beginning of man’s history and are durable. For
example, denim jeans are made of 100% cotton, and are soft and comfortable.
Cotton has a large market in the textile industry worldwide and is a viable
alternative to synthetics in use as a fire retardant (FR) material.
The
Company will market the products [fire retardant] through its own sales force
within Canada and the United States , primarily to
the mattress manufacturing industry. FLAMERET has
identified this major market for our products, and it is important that the
company focuses its effort into this market.
Flameret,
Inc. Technology
UNITED
AMERICAN AND FLAMEX
On May
18, 1988, United American Inc. (UAI) acquired patent #4,961,865
(fire extinguishing solutions for extinguishing phosphorus and metal fire) and
patent #4,950,410
from the inventor Edmund Pennartz. After acquiring the patents and
the technology from Mr. Pennartz, UAI developed three fire retardant products,
1. Flamex, a textile FR treatment. 2. Ultra
Flamex, a fire extinguishing product and 3. Impex.
6
Flamex is
applied as a liquid compound to textiles, this produces a carbon membrane which
is activated when heat is applied to produce the fire retardant properties, and
this protection is called a carbon barrier shield. [Fire
barrier].
United
American, Inc. has never sold their products to any manufactures; the company’s
sole business is the development of fire barrier products. On August
14, 2009 Flameret, Inc. acquired the rights to market and sell United American,
Inc.’s three products 1. Flamex, a textile FR
treatment. 2. Ultra Flamex, a fire extinguishing product
and 3. Impex. for 15 years worldwide. Flameret has the rights to use all
studies, reports and research conducted by UAI in regard to these three
products. Flameret, Inc. will compensate United American, Inc. by
paying a 1.5% gross royalty to UAI on all products sold.
FLAMERET,
INC. is presently attempting to market for sale one product named (Flamex), a
textile FR treatment. Flamex is a liquid that is applied to textiles,
these treated textiles are used at the production stage of such products as
mattresses to resist ignition from smoldering cigarettes and resist ignition
from an open-flame heat source. The company aims to focus on
long-term client retention within the U.S. and Canadian mattress
industries.
Flameret,
Inc. is a development stage company. Flameret, Inc. has a limited history of
operations. We presently do not have the funding to execute our business
plan.
We expect
to provide liquid fire retardant products to mattress
manufactures. As such, we may not always be successful in achieving a
long-term contract or be immediately compensated for services rendered. Although
we currently restrict our fire retardant products to mattress manufactures our
products are applicable to a wide range of fields and businesses, and therefore
are not restricted to a particular industry.
Achievement
of our business objective is basically dependent upon the judgment, skill and
knowledge of our management. Mr. Glover, currently our sole executive officer
and director. There can be no assurance that a suitable replacement could be
found for any of our officers upon their retirement, resignation, inability to
act on our behalf, or death.
RISK
FACTORS
The
Company's financial condition, business, operation and prospects involve a high
degree of risk. You are urged to carefully read and consider the risks and
uncertainties described below as well as the other information in this report
before deciding to invest in our Company. If any of the following risks are
realized, our business, operating results and financial condition could be
harmed and the value of our stock could go down. This means that our
stockholders could lose all or a part of their investment. For a more detailed
discussion of some of the risks associated with our Company, you are urged to
carefully review and consider the section entitled "Risk Factors” beginning on
page 9 of this prospectus.
THE
OFFERING
Common
stock offered by selling security holders
|
8,000,000
shares of common stock. This number represents approximately 45% of our
current outstanding common stock.
|
|
Selling
Shareholder
|
Christopher
Glover
|
|
Offering
price
|
$0.001
|
|
Minimum
number of shares to be sold in this offering
|
None | |
Common
stock outstanding before the offering
|
18,000,000
common shares as of August 31, 2009.
|
|
Common
stock outstanding after the offering
|
18,000,000
shares.
|
|
Terms
of the Offering
|
The
selling security holder will determine when and how they will sell the
common stock offered in this prospectus.
|
|
Termination
of the Offering
|
The offering
will conclude upon the earliest of (i) such time as all of the common
stock has been sold pursuant to the registration statement or (ii) within
25 days of the registration statement being declared
effective (iii) such
time as all of the common stock becomes eligible for resale without volume
limitations pursuant to Rule 144 under the Securities Act, or any other
rule of similar effect.
|
|
Use
of proceeds
|
We
are not selling any shares of the common stock covered by this
prospectus.
|
|
Risk
Factors
|
The
Common Stock offered hereby involves a high degree of risk and should not
be purchased by investors who cannot afford the loss of their entire
investment. See “Risk Factors” beginning on page 4.
|
|
(1)
|
Based
on 18,000,000 shares of common stock outstanding as of August 31,
2009.
|
7
This
prospectus relates to the sale of up to 8,000,000 shares of our common stock by
the selling shareholder identified in the section of this prospectus entitled
"Selling Security Holder." These 8,000,000 common shares are being offered
hereby by Christopher Glover, the selling security holder, under this
prospectus.
The
number of common shares offered by this prospectus represents up to
approximately 45% of the total common stock outstanding after the
offering.
Information
regarding the selling security holder, the common shares being offered to sell
under this prospectus, and the times and manner in which they may offer and sell
those shares, is provided in the sections of this prospectus entitled "Selling
Security Holder" and "Plan of Distribution." Flameret, Inc. will not receive any
of the proceeds from these sales. The registration of common shares pursuant to
this prospectus does not necessarily mean that any of those shares will
ultimately be offered or sold by the selling Security Holder.
SUMMARY
OF FINANCIAL INFORMATION
The
following table provides summary financial statement data as of the fiscal year
ended August 31, 2009 and the period from Inception (August 13, 2009) through
August 31, 2009. The financial statement data as of the fiscal year ended August
31, 2009 has been derived from our audited financial statements. The results of
operations for past accounting periods are not necessarily indicative of the
results to be expected for any future accounting period. The data set forth
below should be read in conjunction with “Management’s Discussion and Analysis
of Financial Condition and Results of Operations,” our financial statements and
the related notes included in this prospectus, and the statements and related
notes included in this prospectus.
FLAMERET,
INC.
(A
DEVELOPMENT STAGE COMPANY)
STATEMENT
OF OPERATIONS
August
13, 2009
|
||||
(inception)
to
|
||||
August
31,
|
||||
2009
|
||||
Revenue
|
$
|
-
|
||
Operating
expenses:
|
||||
General
and administrative
|
44
|
|||
Professional
fees
|
17,231
|
|||
Total
operating expenses
|
17,275
|
|||
Net
operating loss
|
(17,275
|
)
|
||
Other
income (expense)
|
-
|
|||
Loss
before provision for income taxes
|
(17,275
|
)
|
||
Provision
for income taxes
|
-
|
|||
Net
(loss)
|
$
|
(17,275
|
)
|
|
Weighted
average number of common shares outstanding - basic and fully
diluted
|
18,000,000
|
|||
Net
(loss) per share - basic and fully diluted
|
$
|
(0.00
|
)
|
8
RISK
FACTORS
The
shares of our common stock being offered for resale by the selling security
holders are highly speculative in nature, involve a high degree of risk and
should be purchased only by persons who can afford to lose the entire amount
invested in the common stock. Before purchasing any of the shares of common
stock, you should carefully consider the following factors relating to our
business and prospects. If any of the following risks actually occurs, our
business, financial condition or operating results could be materially adversely
affected. In such case, you may lose all or part of your
investment. You should carefully consider the risks described below
and the other information in this prospectus before
investing in our common stock.
Risks
Related to Our Business
A)
RISKS RELATED TO OUR BUSINESS AND THIS OFFERING
THE COMPANY HAS A LIMITED OPERATING
HISTORY UPON WHICH TO BASE AN EVALUATION OF ITS BUSINESS AND PROSPECTS. WE MAY
NOT BE SUCCESSFUL IN OUR EFFORTS TO GROW OUR BUSINESS AND TO EARN INCREASED
REVENUES. AN INVESTMENT IN OUR SECURITIES REPRESENTS SIGNIFICANT RISK AND YOU
MAY LOSE ALL OR PART YOUR ENTIRE INVESTMENT.
We have a
limited history of operations and we may not be successful in our efforts to
grow our business and to earn revenues. Our business and prospects must be
considered in light of the risks, expenses and difficulties frequently
encountered by companies in their early stage of development, particularly
companies providing services to a rapidly evolving market such as fire
retardants. As a result, management may be unable to adjust its spending in a
timely manner to compensate for any unexpected revenue shortfall. This inability
could cause net losses in a given period to be greater than expected. An
investment in our securities represents significant risk and you may lose all or
part your entire investment.
WE
HAVE A HISTORY OF LOSSES. FUTURE LOSSES AND NEGATIVE CASH FLOW MAY LIMIT OR
DELAY OUR ABILITY TO BECOME PROFITABLE. IT IS POSSIBLE THAT WE MAY NEVER ACHIEVE
PROFITABILITY. AN INVESTMENT IN OUR SECURITIES REPRESENTS SIGNIFICANT RISK AND
YOU MAY LOSE ALL OR PART YOUR ENTIRE INVESTMENT.
We have
yet to establish profitable operations or a history of profitable operations. We
anticipate that we will continue to incur substantial operating losses for an
indefinite period of time due to the significant costs associated with the
development of our business.
Since
incorporation, we have expended financial resources on the development of our
business. As a result, losses have been incurred since incorporation. Management
expects to experience operating losses and negative cash flow for the
foreseeable future. Management anticipates that losses will continue to increase
from current levels because the Company expects to incur additional costs and
expenses related to: marketing and promotional activities; the possible addition
of new personnel; and the development of relationships with strategic business
partners.
The
Company’s ability to become profitable depends on its ability to generate and
sustain sales while maintaining reasonable expense levels. If the Company does
achieve profitability, it cannot be certain that it would be able to sustain or
increase profitability on a quarterly or annual basis in the future. An
investment in our securities represents significant risk and you may lose all or
part of your entire investment.
IF
WE DO NOT OBTAIN ADDITIONAL FINANCING, OUR BUSINESS WILL FAIL.
We will
need to obtain additional financing in order to complete our business plan
because we currently do not have any income. We do not have any arrangements for
financing and we may not be able to find such financing if required. Obtaining
additional financing would be subject to a number of factors, including investor
acceptance. These factors may adversely affect the timing, amount, terms, or
conditions of any financing that we may obtain or make any additional financing
unavailable to us. If we do not obtain additional financing our business will
fail.
OUR
OPERATING RESULTS WILL BE VOLATILE AND DIFFICULT TO PREDICT. IF THE COMPANY
FAILS TO MEET THE EXPECTATIONS OF PUBLIC MARKET ANALYSTS AND INVESTORS, THE
MARKET PRICE OF OUR COMMON STOCK MAY DECLINE SIGNIFICANTLY.
Management
expects both quarterly and annual operating results to fluctuate significantly
in the future. Because our operating results will be volatile and difficult to
predict, in some future quarter our operating results may fall below the
expectations of securities analysts and investors. If this occurs, the trading
price of our common stock may decline significantly.
9
A number
of factors will cause gross margins to fluctuate in future periods. Factors that
may harm our business or cause our operating results to fluctuate include the
following: the inability to obtain new customers at reasonable cost; the ability
of competitors to offer new or enhanced services or products; price competition;
the failure to develop marketing relationships with key business partners;
increases in our marketing and advertising costs; increased labor costs that can
affect demand for fire retardant products; the amount and timing of operating
costs and capital expenditures relating to expansion of operations; a change to
or changes to government regulations; a general economic slowdown. Any change in
one or more of these factors could reduce our ability to earn and grow revenue
in future periods.
WE
HAVE RECEIVED AN OPINION OF GOING CONCERN FROM OUR AUDITORS. IF WE DO NOT
RECEIVE ADDITIONAL FUNDING, WE WOULD HAVE TO CURTAIL OR CEASE OPERATIONS. AN
INVESTMENT IN OUR SECURITIES REPRESENTS SIGNIFICANT RISK AND YOU MAY LOSE ALL OR
PART YOUR ENTIRE INVESTMENT.
Our
independent auditors noted in their report accompanying our financial statements
for the period ended August 31, 2009 that we have not earned a profit. As of
August 31, 2009, we had a net loss of $17,275, and they further stated that the
uncertainty related to these conditions raised substantial doubt about our
ability to continue as a going concern. At August 31, 2009, our cash on hand was
$3,225. We do not currently have sufficient capital resources to fund
operations. To stay in business, we will need to raise additional capital
through public or private sales of our securities, debt financing or short-term
bank loans, or a combination of the foregoing.
We will
need additional capital to fully implement our business, operating and
development plans. However, additional funding from an alternate source or
sources may not be available to us on favorable terms, if at all. To the extent
that money is raised through the sale of our securities, the issuance of those
securities could result in dilution to our existing security holder. If we raise
money through debt financing or bank loans, we may be required to secure the
financing with some or all of our business assets, which could be sold or
retained by the creditor should we default in our payment obligations. If we
fail to raise sufficient funds, we would have to curtail or cease
operations.
OUR
CURRENT BUSINESS OPEARTIONS RELY HEAVILY UPON OUR KEY EMPLOYEE AND FOUNDER, MR.
CHRISTOPHER GLOVER.
We have
been heavily dependent upon the expertise and management of Mr. Christopher
Glover, our Chief Executive Officer and President, and our future performance
will depend upon his continued services. The loss of the services of Mr.
Glovers’ services could seriously interrupt our business operations, and could
have a very negative impact on our ability to fulfill our business plan and to
carry out our existing operations. The Company currently does not maintain key
man life insurance on this individual. There can be no assurance that a suitable
replacement could be found for him upon retirement, resignation, inability to
act on our behalf, or death.
OUR
FUTURE GROWTH MAY REQUIRE RECRUITMMENT OF QUALIFIED EMPLOYEES.
In the
event of our future growth in administration, marketing, and customer support
functions, we may have to increase the depth and experience of our management
team by adding new members. Our future success will depend to a large degree
upon the active participation of our key officers and employees. There is no
assurance that we will be able to employ qualified persons on acceptable terms.
Lack of qualified employees may adversely affect our business
development.
(B)
RISKS RELATED TO THE INDUSTRY
THE
FIRE RETARDANT INDUSTRY IS COST COMPETITIVE AND IS CHARACTERIZED BY LOW FIXED
COSTS. A REDUCTION IN COST FOR THE INDUSTRY COULD AFFECT THE DEMAND FOR OUR FIRE
RETARDANT PRODUCTS.
The fire
retardant industry is highly competitive and is characterized by a large number
of competitors ranging from small to large companies with substantial resources.
Many of our potential competitors have substantially larger customer bases,
greater name recognition, greater reputation, and significantly greater
financial and marketing resources than we do. In the future, aggressive
marketing tactics implemented by our competitors could impact our limited
financial resources and adversely affect our ability to compete in these
markets.
Price
competition exists in fire retardant products. Costs of raw material decreases
within the industry could adversely affect our operations and profitability.
There are many fire retardant companies that could discount their products which
could result in lower revenues for the entire industry. A shortfall from
expected revenue levels would have a significant impact on our potential to
generate revenue and possibly cause our business to fail.
10
THE
COMPANY’S RELIANCE ON MATTRESS MANUFACTURES MAY HAVE SIGNIFICANT IMPACT ON THE
COMPANY’S ABILITY TO GENERATE REVENUE AND POSSIBLY CAUSE OUR BUSINESS TO
FAIL.
The
Company intends to provide a fire retardant product to mattress manufactures. As
such, the Company may not always be successful in achieving a long-term contract
or be immediately compensated for products and services rendered. Since we
expect our fire retardant product to be sold to mattress manufactures any
slowdown in that industries would greatly affect the
company.
The
company’s success is dependent on its ability to obtain and maintain clients. No
assurances can be given that the Company will be able to create a client or
maintain a client base or that it will be able to attract new clients. The loss
of one or more new clients of the Company or a significant reduction in business
from such new clients could have a material adverse effect on the Company. The
Company does not have contracts with any clients at this
time.
OUR
OPERATING RESULTS MAY FLUCTUATE DUE TO FACTORS WHICH ARE NOT WITHIN OUR
CONTROL.
Our
operating results are expected to fluctuate in the future based on a number of
factors, many of which are not in our control. Our operating expenses primarily
include marketing and general administrative expenses that are relatively fixed
in the short-term. If our revenues are lower than we expect because demand for
our product and service diminishes, or if we
experience an increase in defaults among approved applicants or for any other
reasons we may not be able to quickly return to acceptable revenue
levels.
Because
of the unique nature of our business and the fact that there are no comparable
past business models to rely on, future factors that may adversely affect our
business are difficult to forecast. Any shortfall in our revenues would have a
direct impact on our business. In addition, fluctuations in our quarterly
results could adversely affect the market price of our common stock in a manner
unrelated to our long-term operating performance.
WE
HAVE A SHORT OPERATING HISTORY AND FACE MANY OF THE RISKS AND DIFFICULTIES
FREQUENTLY ENCOUNTERED BY A YOUNG COMPANY.
We have a
short operating history from August 13, 2009 to August 31, 2009 for investors to
evaluate the potential of our business development. We are continuing to build
our customer base and our brand name. We do not have any customers at this
time. In addition, we also face many of the risks and difficulties
inherent in introducing new products and services. These risks include the
ability to:
●
|
Increase
awareness of our brand name;
|
|
●
|
Develop
an effective business plan;
|
|
●
|
Meet
customer standards;
|
|
●
|
Implement
advertising and marketing plan;
|
|
●
|
Attain
customer loyalty;
|
|
●
|
Maintain
current strategic relationships and develop new strategic
relationships;
|
|
●
|
Respond
effectively to competitive pressures;
|
|
●
|
Continue
to develop and upgrade our service; and
|
|
●
|
Attract,
retain and motivate qualified
personnel.
|
Our
future will depend on our ability to raise additional capital and bring our
product and service to the marketplace, which requires careful planning to
provide a product and service that meets customer standards without incurring
unnecessary cost and expense.
WE
MAY NEED ADDITIONAL CAPITAL TO DEVELOP OUR BUSINESS.
The
development of our services will require the commitment of resources to increase
the advertising, marketing and future expansion of our business. In addition,
expenditures will be required to enable us in 2011 to conduct planned business
research, development of new affiliate and associate offices, and marketing of
our existing and future products and services. Currently, we have no established
bank-financing arrangements. Therefore, it is possible that we would need to
seek additional financing through subsequent future private offering of our
equity securities, or through strategic partnerships and other arrangements with
corporate partners.
We cannot
give you any assurance that any additional financing will be available to us, or
if available, will be on terms favorable to us. The sale of additional equity
securities could result in dilution to our stockholders. The occurrence of
indebtedness would result in increased debt service obligations and could
require us to agree to operating and financing covenants that would restrict our
operations. If adequate additional financing is not available on acceptable
terms, we may not be able to implement our business development plan or continue
our business operations.
11
WE MAY NOT BE ABLE TO BUILD OUR BRAND AWARENESS.
Development
and awareness of our brand Flameret will depend largely upon our success in
creating a customer base and potential referral sources. In order to attract and
retain customers and to promote and maintain our brand in response to
competitive pressures, management plans to gradually increase our marketing and
advertising budgets. If we are unable to economically promote or maintain our
brand, then our business, results of operations and financial condition could be
severely harmed. The company presently has $3,225 in working
capital.
OUR FUTURE SUCCESS RELIES UPON A
COMBINATION OF PATENTS AND PATENTS PENDING, PROPRIETARY TECHNOLOGY AND KNOW-HOW,
TRADEMARKS, CONFIDENTIALITY AGREEMENTS AND OTHER CONTRACTUAL COVENANTS TO
ESTABLISH AND PROTECT OUR INTELLECTUAL PROPERTY RIGHTS. IF OUR PRODUCTS ARE DUPLICATED OUR
RESULTS OF OPERATIONS WOULD BE NEGATIVELY IMPACTED.
Our
application for trademark protection has been approved for "Flameret.” Because
intellectual property protection is critical to our future success, we intend to
rely heavily on trademark, trade secret protection and confidentiality or
license agreements with our employees, customers, partners and others to protect
proprietary rights. However, effective trademark, service
mark and trade secret protection may not be available in every country in which
we intend to sell our products and services. Unauthorized
parties may attempt to copy aspects of our products or to obtain and use our
proprietary information. As a result, litigation may be necessary to enforce our
intellectual property rights to protect our trade secrets and to determine the
validity and scope of the proprietary rights of others. Such litigation could
result in substantial costs and diversion of recourses and could significantly
harm our business and operating results.
Furthermore,
the relationship between regulations governing domain names and laws protecting
trademarks and similar proprietary rights is unclear. Therefore, we may be
unable to prevent third parties from acquiring domain names that are similar to,
infringe upon or otherwise decrease the value of intended trademarks and other
proprietary rights.
There can
be no assurance that third parties will not assert infringement claims against
us. If infringement claims are brought against us, there can be no assurance
that we will have the financial resources to defend against such claims or
prevent an adverse judgment against us. In the event of an unfavorable ruling on
any such claim, there can be no assurance that a license or similar agreement to
utilize the intellectual property rights in question relied upon by us in the
conduct of our business will be available to us on reasonable terms, if at all.
The loss of such rights (or the failure by us to obtain similar licenses or
agreements) could have a material adverse effect on our business, financial
condition and results of operations.
OUR
BUSINESS EMPLOYS LICENSED UNITED AMERICAN, INC. TECHNOLOGY WHICH MAY BE
DIFFICULT TO PROTECT AND MAY INFRINGE ON THE INTELLECTUAL PROPERTY RIGHTS OF
THIRD PARTIES.
We
currently license our technology from United American,
Inc. United American, Inc. owns two U.S. patents, (patent #4,961,865 and patent
#4,950,410) and
may file more patent applications in the future. Our success depends, in part,
on our ability to use the United American, Inc. Technology, and for United
American, Inc. to obtain patents, maintain trade secrecy and not infringe the
proprietary rights of third parties. We cannot assure you that the patents of
others will not have an adverse effect on our ability to conduct our business,
that we will develop additional proprietary technology that is patentable or
that any patents issued to us or United American, Inc. will provide us with
competitive advantages or will not be challenged by third parties. Further, we
cannot assure you that others will not independently develop similar or superior
technologies, duplicate elements of the United American, Inc. Technology or
design around it.
It is
possible that we may need to acquire other licenses to, or to contest the
validity of, issued patents or claims of third parties. We cannot assure you
that any license would be made available to us on acceptable terms, if at all,
or that we would prevail in any such contest. In addition, we could incur
substantial costs in defending ourselves in suits brought against us for alleged
infringement of another party’s patents in bringing patent infringement suits
against other parties based on our licensed patents.
In
addition to licensed patent protection, we also rely on United American Inc.
trade secrets, proprietary know-how and technology that we seek to protect, in
part, by confidentiality agreements with our prospective blenders, manufactures
employees and consultants. We cannot assure you that these agreements will not
be breached, that we will have adequate remedies for any breach, or that our
trade secrets and proprietary know-how will not otherwise become known or be
independently discovered by others.
12
WE
MAY INCUR SUBSTANTIAL COSTS OR LOSE IMPORTANT RIGHTS AS A RESULT OF LITIGATION
OR OTHER PROCEEDINGS RELATING TO OUR PRODUCTS, PATENTS AND OTHER INTELLECTUAL
PROPERTY RIGHTS.
In recent
years, there has been significant litigation involving patents and other
intellectual property rights in many technology-related industries. Until
recently, patent applications were retained in secrecy by the US Patent and
Trademark Office until and unless a patent was issued. As a result, there may be
US patent applications pending of which we are unaware that may be infringed by
the use of our technology or a part thereof, thus substantially interfering with
the future conduct of our business. In addition, there may be issued patents in
the United States or other countries that are pertinent to our business of which
we are not aware. We and future customers could be sued by other parties for
patent infringement in the future. Such lawsuits could subject us and them to
liability for damages or require us to obtain additional licenses that could
increase the cost of our products, which might have an adverse affect on our
sales.
In
addition, in the future we may assert our intellectual property rights by
instituting legal proceedings against others. We may not be able to successfully
enforce United American, Inc. patents in any lawsuits we may commence.
Defendants in any litigation we may commence to enforce United American, Inc.
patents may attempt to establish that United American, Inc. patents are invalid
or are unenforceable. Any patent litigation could lead to a determination that
one or more of our patents are invalid or unenforceable. If a third party
succeeds in invalidating one or more of our patents that party and others could
compete more effectively against us. Our ability to derive sales from products
or technologies covered by these patents could be adversely
affected.
Whether
we are defending the assertion of third party intellectual property rights
against our business as a result of the use of United American, Inc. technology,
or we are asserting our own intellectual property rights against others, such
litigation can be complex, costly, protracted and highly disruptive to our
business operations by diverting the attention and energies of management and
key technical personnel. As a result, the pendency or adverse outcome of any
intellectual property litigation to which we are subject could disrupt business
operations, require the incurrence of substantial costs and subject us to
significant liabilities, each of which could severely harm our
business.
Plaintiffs
in intellectual property cases often seek injunctive relief. Any intellectual
property litigation commenced against us could force us to take actions that
could be harmful to our business and thus to our future
sales.
WE
MAY INCUR SIGNIFICANT COSTS TO BE A PUBLIC COMPANY TO ENSURE COMPLIANCE WITH
U.S. CORPORATE GOVERNANCE AND ACCOUNTING REQUIREMENTS AND WE MAY NOT BE ABLE TO
ABSORB SUCH COSTS.
We may
incur significant costs associated with our public company reporting
requirements, costs associated with newly applicable corporate governance
requirements, including requirements under the Sarbanes-Oxley Act of 2002 and
other rules implemented by the SEC. We expect all of these applicable rules and
regulations to significantly increase our legal and financial compliance costs
and to make some activities more time consuming and costly. We also expect that
these applicable rules and regulations may make it more difficult and more
expensive for us to obtain director and officer liability insurance and we may
be required to accept reduced policy limits and coverage or incur substantially
higher costs to obtain the same or similar coverage. As a result, it may be more
difficult for us to attract and retain qualified individuals to serve on our
board of directors or as executive officers. We are currently evaluating and
monitoring developments with respect to these newly applicable rules, and we
cannot predict or estimate the amount of additional costs we may incur or the
timing of such costs. In addition, we may not be able to absorb these costs of
being a public company, which will negatively affect our business
operations.
THE
LIMITED PUBLIC COMPANY EXPERIENCE OF OUR MANAGEMENT TEAM COULD ADVERSELY IMPACT
OUR ABILITY TO COMPLY WITH THE REPORTING REQUIREMENTS OF U.S. SECURITIES
LAWS.
Our
management team has limited public company experience, which could impair our
ability to comply with legal and regulatory requirements such as those imposed
by Sarbanes-Oxley Act of 2002. Our senior management has never had sole
responsibility for managing a publicly traded company. Such responsibilities
include complying with federal securities laws and making required disclosures
on a timely basis. Our senior management may not be able to implement programs
and policies in an effective and timely manner that adequately respond to such
increased legal, regulatory compliance and reporting requirements, including the
establishing and maintaining internal controls over financial reporting. Any
such deficiencies, weaknesses or lack of compliance could have a materially
adverse effect on our ability to comply with the reporting requirements of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), which is
necessary to maintain our public company status. If we were to fail to fulfill
those obligations, our ability to continue as a U.S. public company would be in
jeopardy in which event you could lose your entire investment in our
company.
13
C) RISKS RELATED TO THE OWNERSHIP OF OUR SECURITIES AND RISKS RELATED TO THIS OFFERING
WE
MAY NEVER PAY ANY DIVIDENDS TO SHAREHOLDERS.
We have
never declared or paid any cash dividends or distributions on our capital stock.
We currently intend to retain our future earnings, if any, to support operations
and to finance expansion and therefore we do not anticipate paying any cash
dividends on our common stock in the foreseeable future.
The
declaration, payment and amount of any future dividends will be made at the
discretion of the board of directors, and will depend upon, among other things,
the results of our operations, cash flows and financial condition, operating and
capital requirements, and other factors as the board of directors considers
relevant. There is no assurance that future dividends will be paid, and, if
dividends are paid, there is no assurance with respect to the amount of any such
dividend.
OUR
CONTROLLING SECURITY HOLDER MAY TAKE ACTIONS THAT CONFLICT WITH YOUR
INTERESTS.
Mr.
Christopher Glover beneficially owns approximately 100% of our capital stock
with voting rights. In this case, Mr. Glover will be able to exercise control
over all matters requiring stockholder approval, including the election of
directors, amendment of our certificate of incorporation and approval of
significant corporate transactions, and they will have significant control over
our management and policies. The directors elected by our controlling security
holder will be able to significantly influence decisions affecting our capital
structure. This control may have the effect of delaying or preventing changes in
control or changes in management, or limiting the ability of our other security
holders to approve transactions that they may deem to be in their best interest.
For example, our controlling security holder will be able to control the sale or
other disposition of our operating businesses and subsidiaries to another
entity.
THE OFFERING PRICE OF THE COMMON
STOCK WAS ARBITRARILY DETERMINED, AND THEREFORE SHOULD NOT BE USED AS AN
INDICATOR OF THE FUTURE MARKET PRICE OF THE SECURITIES. THEREFORE, THE OFFERING
PRICE BEARS NO RELATIONSHIP TO OUR ACTUAL VALUE, AND MAY MAKE OUR SHARES
DIFFICULT TO SELL.
Since our
shares are not listed or quoted on any exchange or quotation system, the
offering price of $0.001 per share for the shares of common stock was
arbitrarily determined. The facts considered in determining the offering price
were our financial condition and prospects, our limited operating history and
the general condition of the securities market. The offering price bears no
relationship to the book value; assets or earnings of our company or any other
recognized criteria of value. The offering price should not be regarded as an
indicator of the future market price of the securities.
YOU
MAY EXPERIENCE DILUTION OF YOUR OWNERSHIP INTEREST BECAUSE OF THE FUTURE
ISSUANCE OF ADDITIONAL SHARES OF OUR COMMON STOCK AND OUR PREFERRED
STOCK.
In the
future, we may issue our authorized but previously unissued equity securities,
resulting in the dilution of the ownership interests of our present
stockholders. We are currently authorized to issue an aggregate of 100,000,000
shares of capital stock consisting of 90,000,000 shares of common stock, par
value $0.001 per share, and 10,000,000 shares of “blank check” preferred stock,
par value $0.001 per share.
We may
also issue additional shares of our common stock or other securities that are
convertible into or exercisable for common stock in connection with hiring or
retaining employees or consultants, future acquisitions, future sales of our
securities for capital raising purposes, or for other business purposes. The
future issuance of any such additional shares of our common stock or other
securities may create downward pressure on the trading price of our common
stock. There can be no assurance that we will not be required to issue
additional shares, warrants or other convertible securities in the future in
conjunction with hiring or retaining employees or consultants, future
acquisitions, future sales of our securities for capital raising purposes or for
other business purposes.
14
OUR
COMMON STOCK IS CONSIDERED PENNY STOCKS, WHICH MAY BE SUBJECT TO RESTRICTIONS ON
MARKETABILITY, SO YOU MAY NOT BE ABLE TO SELL YOUR SHARES.
If our
common stock becomes tradable in the secondary market, we will be subject to the
penny stock rules adopted by the SEC that require brokers to provide extensive
disclosure to their customers prior to executing trades in penny stocks. These
disclosure requirements may cause a reduction in the trading activity of our
common stock, which in all likelihood would make it difficult for our
shareholders to sell their securities.
Penny
stocks generally are equity securities with a price of less than $5.00 (other
than securities registered on certain national securities exchanges or quoted on
the NASDAQ system). Penny stock rules require a broker-dealer, prior to a
transaction in a penny stock not otherwise exempt from the rules, to deliver a
standardized risk disclosure document that provides information about penny
stocks and the risks in the penny stock market. The broker-dealer also must
provide the customer with current bid and offer quotations for the penny stock,
the compensation of the broker-dealer and its salesperson in the transaction,
and monthly account statements showing the market value of each penny stock held
in the customer’s account. The broker-dealer must also 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. These
requirements may have the effect of reducing the level of trading activity, if
any, in the secondary market for a security that becomes subject to the penny
stock rules. The additional burdens imposed upon broker-dealers by such
requirements may discourage broker-dealers from effecting transactions in our
securities, which could severely limit the market price and liquidity of our
securities. These requirements may restrict the ability of broker-dealers to
sell our common stock and may affect your ability to resell our common
stock.
THERE
IS NO ASSURANCE OF A PUBLIC MARKET OR THAT OUR COMMON STOCK WILL EVER TRADE ON A
RECOGNIZED EXCHANGE. THEREFORE, YOU MAY BE UNABLE TO LIQUIDATE YOUR INVESTMENT
IN OUR STOCK.
There is
no established public trading market for our common stock. Our shares have not
been listed or quoted on any exchange or quotation system. There can be no
assurance that a market maker will agree to file the necessary documents with
FINRA, which operates the OTCBB, nor can there be any assurance that such an
application for quotation will be approved or that a regular trading market will
develop or that if developed, will be sustained. In the absence of a
trading market, an investor may be unable to liquidate their
investment.
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
The
information contained in this report, including in the documents incorporated by
reference into this report, includes some statement that are not purely
historical and that are “forward-looking statements.” Such forward-looking
statements include, but are not limited to, statements regarding our and
their management's expectations, hopes, beliefs, intentions or strategies
regarding the future, including our financial condition, results of operations,
and the expected impact of the Share Exchange on the parties' individual
and combined financial performance. In addition, any statements that refer to
projections, forecasts or other characterizations of future events or
circumstances, including any underlying assumptions, are forward-looking
statements. The words “anticipates,” “believes,” “continue,” “could,”
“estimates,” “expects,” “intends,” “may,” “might,” “plans,” “possible,”
“potential,” “predicts,” “projects,” “seeks,” “should,” “will,” “would” and
similar expressions, or the negatives of such terms, may identify
forward-looking statements, but the absence of these words does not mean that a
statement is not forward-looking.
The
forward-looking statements contained in this report are based on current
expectations and beliefs concerning future developments and the potential
effects on the parties and the transaction. There can be no assurance that
future developments actually affecting us will be those anticipated. These that
may cause actual results or performance to be materially different from
those expressed or implied by these forward-looking statements, including
the following forward-looking statements involve a number of risks,
uncertainties (some of which are beyond the parties' control) or other
assumptions.
15
USE OF PROCEEDS
We will
not receive any proceeds from the sale of the shares by the selling security
holder. All proceeds from the sale of the shares offered hereby will be for the
account of the selling security holder, as described below in the sections
entitled "Selling Security Holder" and "Plan of Distribution."
We are
registering 8,000,000 shares for gross proceeds of $8,000 from the sale of the
selling security holders’ common stock under the investment agreement. All of
the proceeds from the sale of the shares of common stock offered herein will be
received by the selling security holder.
With the
exception of any brokerage fees and commission which are the obligation of the
selling security holder, we are responsible for the fees, costs and expenses of
this offering which are estimated to be $17,275, inclusive of our legal and
accounting fees, printing costs and filing and other miscellaneous fees and
expenses.
DILUTION
The
common stock to be sold by the selling security holder is common stock that is
currently issued and outstanding. Accordingly, there will be no dilution to our
existing security holder. Upon the successful completion of this offering, the
number of shares will total 18,000,000 common shares outstanding.
SELLING
SECURITY HOLDERS
On August
13, 2009, the Company issued 18,000,000 founder’s shares at the par value of
$0.001 in exchange for proceeds of $18,000. The common shares being offered for
resale by the selling security holders consist of the 8,000,000 shares of our
common stock held by one shareholder (founder).
The
following table sets forth the name of the selling security holders, the number
of shares of common stock beneficially owned by each of the selling stockholders
as of August 31, 2009 and the number of shares of common stock being offered by
the selling stockholders. The shares being offered hereby are being registered
to permit public secondary trading, and the selling stockholders may offer all
or part of the shares for resale from time to time. However, the selling
stockholders are under no obligation to sell all or any portion of such shares
nor are the selling stockholders obligated to sell any shares immediately upon
effectiveness of this prospectus. All information with respect to share
ownership has been furnished by the selling stockholders.
Name
|
Shares
Beneficially Owned
prior
to
Offering
|
Shares
to be Offered
|
Shares
Beneficially Owned
after
Offering
if
all
8,000,000
sold
|
Percent
Beneficially
Owned
after
Offering
if
all
8,000,000
sold
|
|||||||||||||||
1
|
Christopher
Glover
|
18,000,000
|
8,000,000
|
10,000,000
|
55%
|
Except as
listed below, to our knowledge, none of the selling shareholders or their
beneficial owners:
-
|
has
had a material relationship with us other than as a shareholder at any
time within the past three years; or
|
|
-
|
has
ever been one of our officers or directors or an officer or director of
our predecessors or affiliates (1)
|
|
-
|
are
broker-dealers or affiliated with broker-dealers.
|
|
(1)
|
Christopher
Glover if the founder an officer and director of the company. He presently
owns 18,000,000 shares of the company stock, which he obtained on August
13, 2009. Mr. Glover is the sole shareholder of the
company.
|
16
PLAN OF DISTRIBUTION
We are
registering 8,000,000 shares of our common stock for resale by the selling
security holder identified in the section above entitled “Selling Security
Holder." We will receive none of the proceeds from the sale of these shares by
the selling security holder.
The
selling security holder may sell some of all of their common stock in one or
more transactions, including block transactions:
*
|
On
such public markets or exchanges as the common stock may from time to time
be trading;
|
*
|
In
privately negotiated transactions;
|
*
|
Through
the writing of options on the common
stock;
|
*
|
Settlement
of short sales; or,
|
*
|
In
any combination of these methods of
distribution.
|
The
selling security holders have set an offering price for these securities of
$0.001 per share, no minimum purchase of shares, and an offering period of
twenty five days from the date of this prospectus.
The
shares may also be sold in compliance with the Securities and Exchange
Commission’s Rule 144. In the event of the transfer by the selling security
holder of shares to any pledgee, donee, or other transferee, we will amend this
prospectus and the registration statement of which this prospectus forms a part
by the filing of a post-effective registration statement in order to name the
pledgee, donee, or other transferee in place of the selling security holder who
have transferred his shares.
The
selling security holder may also sell shares directly to market makers acting as
principals or brokers or dealers, who may act as agent or acquire the common
stock as a principal. Any broker or dealer participating as agent in such
transactions may receive a commission from the selling security holders or, if
they act as agent for the purchaser of such common stock, a commission from the
purchaser. The selling security holder will likely pay the usual and customary
brokerage fees for such services. Brokers or dealers may agree with the selling
security holder to sell a specified number of shares at a stipulated price per
share and, to the extent such broker or dealer is unable to do so acting as
agent for the selling security holder, to purchase, as principal, any unsold
shares at the price required to fulfill the respective broker's or dealer's
commitment to the selling security holder. Brokers or dealers who acquire shares
as principals may thereafter resell such shares from time to time in
transactions in a market or on an exchange, in negotiated transactions or
otherwise, at market prices prevailing at the time of sale or at negotiated
prices, and in connection with such re-sales may pay or receive commissions to
or from the purchasers of such shares. These transactions may involve cross and
block transactions that may involve sales to and through other brokers or
dealers. We can provide no assurance that all or any of the common stock offered
will be sold by the selling security holder.
If, after
the date of this prospectus, the selling security holder enters into an
agreement to sell their shares to a broker-dealer as principal and the
broker-dealer is acting as an underwriter, we will need to file a post-effective
amendment to the registration statement of which this prospectus is a part. We
will need to identify the broker-dealer, provide required information on the
plan of distribution, and revise the disclosures in that amendment, and file the
agreement as an exhibit to the registration statement. Also, the broker-dealer
would have to seek and obtain clearance of the underwriting compensation and
arrangements from the NASD Corporate Finance Department.
The
selling security holder listed in this prospectus and any broker-dealers or
agents that are involved in selling the shares may be deemed to be an
"underwriter" within the meaning of section 2(11) of the Securities Act of 1933,
as amended, in connection with the sales and distributions contemplated under
this prospectus, and may have civil liability under Sections 11 and 12 of the
Securities Act for any omissions or misstatements in this prospectus and the
registration statement of which it is a part. Additionally, any profits, which
our selling security holder may receive, might be deemed to be underwriting
compensation under the Securities Act. Because the selling security holder may
be deemed to be an underwriter under Section 2(11) of the Securities Act, the
selling security holder will be subject to the prospectus delivery requirements
of the Securities Act.
17
We are
bearing all costs relating to the registration of the common stock, which are
estimated at $17,275 . The selling security holder,
however, will pay any commissions or other fees payable to brokers or dealers in
connection with any sale of the common stock.
We are
paying the expenses of the offering because we seek to: (i) become a reporting
company with the Commission under the Securities Exchange Act of 1934 (the "1934
Act"); and (ii) enable our common stock to be traded on the OTC Bulletin Board.
We believe that the registration of the resale of shares on behalf of the
existing security holder may facilitate the development of a public market in
our common stock if our common stock is approved for trading on the OTC Bulletin
Board.
We
consider that the development of a public market for our common stock will make
an investment in our common stock more attractive to future investors. We will
at some point in the near future need to raise additional capital through
private placement offerings. We believe that obtaining reporting company status
under the 1934 Act and trading on the OTC Bulletin Board should increase our
ability to raise these additional funds from investors.
The
selling security holder and any broker-dealers or agents must comply with the
requirements of the Securities Act and the Securities Exchange Act in the offer
and sale of the common stock. In particular, during such times as the selling
security holder and any broker-dealers or agents may be deemed to be engaged in
a distribution of the common stock, and therefore be considered to be an
underwriter, he must comply with applicable law and may, among other
things:
*
|
Not
engage in any stabilization activities in connection with our common
stock;
|
|
*
|
Furnish
each broker or dealer through which common stock may be offered, such
copies of this prospectus, as amended from time to time, as may be
required by such broker or dealer; and,
|
|
*
|
Not
bid for or purchase any of our securities or attempt to induce any person
to purchase any of our securities other than as permitted under the
Securities Exchange Act.
|
MARKET
FOR COMMON EQUITY AND RELATED SHAREHOLDER MATTERS
Our
securities are not listed on any exchange or quotation service. We are not
required to comply with the timely disclosure policies of any exchange or
quotation service. The requirements to which we would be subject if our
securities were so listed typically include the timely disclosure of a material
change or fact with respect to our affairs and the making of required filings.
Although we are not required to deliver an annual report to security holders,
the Company intends to provide an annual report to our security holders, which
will include audited financial statements.
When we
become a reporting company with the Securities and Exchange Commission, the
public may read and copy any materials filed with the Securities and Exchange
Commission at the Security and Exchange Commission’s Public Reference Room at
100 F Street N.E., Washington, D.C. 20549. The public may also obtain
information on the operation of the Public Reference Room by calling the
Securities and Exchange Commission at 1-800-SEC-0330. The Securities and
Exchange Commission maintains an Internet site that contains reports, proxy and
information statements, and other information regarding issuers that file
electronically with the Securities and Exchange Commission. The address of that
site is www.sec.gov.
There are
no outstanding options or warrants to purchase, or securities convertible into,
shares of our
common stock.
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND
RESULT OF OPERATIONS
The
following plan of operation provides information which management believes is
relevant to an assessment and understanding of our results of operations and
financial condition. The discussion should be read along with our financial
statements and notes thereto. This section includes a number of forward-looking
statements that reflect our current views with respect to future events and
financial performance. Forward-looking statements are often identified by words
like believe, expect, estimate, anticipate, intend, project and similar
expressions, or words which, by their nature, refer to future events. You should
not place undue certainty on these forward-looking statements. These
forward-looking statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from our
predictions.
18
GENERAL OVERVIEW
Nature of
business
FLAMERET,
INC. is presently marketing for sale one product named (Flamex), a textile FR
treatment. Flamex is a liquid that is applied to textiles, these
treated textiles are used at the production stage of such products as mattresses
to resist ignition from smoldering cigarettes and resist ignition from an
open-flame heat source. The company aims to focus on long-term client
retention, within the U.S. mattress industry.
These
statements reflect all adjustments, consisting of normal recurring adjustments,
which in the opinion of management are necessary for fair presentation of the
information contained therein. The Company follows the same accounting policies
in the preparation of interim reports.
The
Company has adopted a fiscal year end of August 31st.
Cash and cash
equivalents
We
maintain cash balances in non-interest-bearing accounts, which do not currently
exceed federally insured limits. For the purpose of the statements of cash
flows, all highly liquid investments with an original maturity of three months
or less are considered to be cash equivalents.
Equipment
Equipment
is recorded at the lower of cost or estimated net recoverable amount, and is
depreciated using the straight-line method over the estimated useful lives of
the related assets.
Maintenance
and repairs will be charged to expense as incurred. Significant renewals and
betterments will be capitalized. At the time of retirement or other disposition
of equipment, the cost and accumulated depreciation will be removed from the
accounts and any resulting gain or loss will be reflected in
operations.
The
Company will assess the recoverability of equipment by determining whether the
depreciation and amortization of these assets over their remaining life can be
recovered through projected undiscounted future cash flows. The amount of
equipment impairment, if any, will be measured based on fair value and is
charged to operations in the period in which such impairment is determined by
management.
Income
taxes
The
Company accounts for income taxes under SFAS No. 109, “Accounting for income
taxes”, under SFAS No. 109, deferred tax assets and liabilities are recognized
for the future tax consequences attributable to differences between the
financial statement carrying amounts of existing assets and liabilities and
their respective tax bases. Deferred tax assets and liabilities are measured
using enacted tax rates expected to apply to taxable income in the years in
which those temporary differences are expected to be recovered or settled. A
valuation allowance is provided for significant deferred tax assets when it is
more likely than not, that such asset will not be recovered through future
operations.
Fair value of financial
instruments
Statements
of Financial Accounting Standards No. 107, “Disclosures about Fair Value of
Financial Instruments,” requires disclosure of fair value information about
financial instruments. Fair value estimates discussed herein are based upon
certain market assumptions and pertinent information available to management as
of August 31, 2009. The respective carrying value of certain on-balance sheet
financial instruments approximated their fair values.
Financial
instruments consist principally of cash. The carrying amounts of such financial
instruments in the accompanying balance sheets approximate their fair values due
to their relatively short-term nature. It is management’s opinion that the
Company is not exposed to significant currency or credit risks arising from
these financial instruments.
Revenue
recognition
Revenues
from fixed price contracts and cost-plus-fee contracts are recognized as
services are performed. Revenue is recognized at the time of sale if
collectability is reasonably assured. Provisions for discounts and rebates to
customers, estimated returns and allowances, and other adjustments are provided
for in the same period the related sales are recorded. The Company defers any
revenue for which the product has not been delivered or is subject to refund
until such time that the Company and the customer jointly determine that the
product has been delivered or no refund will be required.
19
Basic and diluted loss per
share
The basic
net loss per common share is computed by dividing the net loss by the weighted
average number of common shares outstanding. Diluted net loss per common share
is computed by dividing the net loss adjusted on an “as if converted” basis, by
the weighted average number of common shares outstanding plus potential dilutive
securities. For the periods presented, potential dilutive securities had an
anti-dilutive effect and were not included in the calculation of diluted net
loss per common share.
Stock-based
compensation
In
December 2004, the FASB issued SFAS No. 123 (revised 2004). Share-Based Payment,
which is a revision of SFAS No. 123, Accounting for Stock-Based Compensation.
SFAS No. 123(R) supersedes APB Opinion No. 25, Accounting for Stock Issued to
Employees and amends SFAS No. 95, Statement of Cash Flows. Generally, the
approach in SFAS No. 123(R) is similar to the approach described in SFAS No.
123. However, SFAS No. 123(R) requires all share-based payments to employees,
including grants of employee stock options, to be recognized in the income
statement based on their fair values. Pro forma disclosure is no longer an
alternative.
Our
employee stock-based compensation awards are accounted for under the fair value
method of accounting, in accordance with SFAS 123(R), as such, we record the
related expense based on the more reliable measurement of the services provided,
or the fair market value of the stock issued multiplied by the number of shares
awarded.
We
account for our employee stock options under the fair value method of
accounting, in accordance with SFAS 123(R), using a Black-Scholes valuation
model to measure stock option expense at the date of grant. We do not backdate,
re-price, or grant stock-based awards retroactively. As of the date of this
report, we have not issued any stock options.
Recent Accounting
Pronouncements
In
September 2006, the FASB issued Statement of Financial Accounting Standards
No. 157, Fair Value
Measurements (“SFAS 157”). SFAS 157 provides guidance for using
fair value to measure assets and liabilities. It also responds to investors’
requests for expanded information about the extent to which companies measure
assets and liabilities. It also responds to investors’ requests for expanded
information about the extent to which companies measure assets and liabilities
at fair value, the information used to measure fair value, and the effect of
fair value measurements on earnings. SFAS 157 applies whenever other standards
required (or permit) assets or liabilities to be measured at fair value, and
does not expand the use of fair value in any new circumstances. SFAS 157 is
effective for financial statements issued for fiscal years beginning after
November 15, 2007. The Company has considered the guidance provided by SFAS 157
in its determination of estimated fair values as of August 31, 2009, and
assessed there was no impact.
In
September 2006, the SEC staff issued Staff Accounting Bulletin No. 108, Considering the Effects of Prior
Year Misstatements when Quantifying Misstatements in Current Year Financial
Statements (“SAB 108”). SAB 108 establishes an approach that requires
quantification of financial statement misstatements based on the effects of the
misstatements on the Company’s financial statements and the related financial
statement disclosures. SAB 108 is effective for the year ending August 31,
2009.
In
February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial
Assets and Financial Liabilities Including an Amendment of FASB Statement No.
115 (“SFAS 159”), SFAS 159 permits entities to choose to measure many
financial instruments and certain other items at fair values. SFAS 159 is
effective for fiscal years after November 15, 2007. The Company has considered
the guidance provided by SFAS 159 as of August 31, 2009, and assessed there was
no impact.
During
May 2008, the FASB issued Statement of Financial Accounting Standards
No. 162, The Hierarchy of
Generally Accepted Accounting Principles (“FAS 162”). FAS 162
identifies the sources of accounting principles and the framework for selecting
principles to be used in the preparation and presentation of financial
statements in accordance with generally accepted accounting principles. This
statement will be effective 60 days after the Securities and Exchange
Commission approves the Public Company Accounting Oversight Board’s amendments
to AU Section 411, The
Meaning of ‘Present Fairly in Conformity With Generally Accepted Accounting
Principles’. The adoption of SFAS 162 is not expected to have a material
impact on the Company’s financial position, results of operation or cash
flows.
During
March 2008, the FASB issued Statement of Financial Accounting Standards
No. 161, Disclosures
about Derivative Instruments and Hedging Activities — an amendment of FASB
Statement No. 133 (“FAS 161”). This new standard requires
enhanced disclosures for derivative instruments, including those used in hedging
activities. It is effective for fiscal years and interim periods beginning after
November 15, 2008, and became applicable to the Company in the first
quarter of fiscal 2009. The adoption of SFAS 161 is not expected to have a
material impact on the Company’s financial position, results of operation or
cash flows.
20
In
December 2007, the FASB issued SFAS No. 160, “Non-controlling Interests in
Consolidated Financial Statements”. This statement amends ARB 51 to establish
accounting and reporting standards for the non-controlling (minority) interest
in a subsidiary and for the de-consolidation of a subsidiary. It clarifies that
a non-controlling interest in a subsidiary is equity in the consolidated
financial statements. SFAS No. 160 is effective for fiscal years and interim
periods beginning after December 15, 2008. The adoption of SFAS 160 is not
expected to have a material impact on the Company’s financial position, results
of operation or cash flows.
In
December 2007, the FASB issued SFAS No. 141 (Revised), “Business Combinations”.
SFAS 141 (Revised) establishes principals and requirements for how an acquirer
of a business recognizes and measures in its financial statements, the
identifiable assets acquired, the liabilities assumed, and any non-controlling
interest in the acquiree. This statement also provides guidance for recognizing
and measuring the goodwill acquired in the business combination and determines
what information to disclose to enable users of the financial statements to
evaluate the nature and financial effects of the business combination. The
guidance became effective for the fiscal year beginning after December 15, 2008.
The adoption of SFAS 141 is not expected to have a material impact on the
Company’s financial position, results of operation or cash flows.
RESULTS
OF OPERATIONS
Fiscal Year Ended August 31,
2009 and from August 13, 2009 (inception) to August 31, 2009
The
following tables and narrative discussion set forth key components of our
results of operations for the periods indicated, in dollars, and key components
of our revenue for the period indicated, in dollars.
FLAMERET,
INC.
(A
DEVELOPMENT STAGE COMPANY)
STATEMENT
OF OPERATIONS
August
13, 2009
|
||||
(inception)
to
|
||||
August
31,
|
||||
2009
|
||||
Revenue
|
$
|
-
|
||
Operating
expenses:
|
||||
General
and administrative
|
44
|
|||
Professional
fees
|
17,231
|
|||
Total
operating expenses
|
17,275
|
|||
Net
operating loss
|
(17,275
|
)
|
||
Other
income (expense)
|
-
|
|||
Loss
before provision for income taxes
|
(17,275
|
)
|
||
Provision
for income taxes
|
-
|
|||
Net
(loss)
|
$
|
(17,275
|
)
|
|
Weighted
average number of common shares outstanding - basic and fully
diluted
|
18,000,000
|
|||
Net
(loss) per share - basic and fully diluted
|
$
|
(0.00
|
)
|
21
Sales
August
13, 2009 inception to August 31, 2009, we generated no revenues. There was no
increase in revenues from the inception August 13, 2009 because the company has
not yet commenced operations subsequent to that period.
Operating
Expenses
Total
operating expenses from inception August 13, 2009 to the period ended August 31,
2009 totaled $17,275. The costs primarily consisted of legal and accounting
professional fees.
LIQUIDITY
AND CAPITAL RESOURCES
We
believe that our existing sources of liquidity are
$NIL , along with cash expected to be generated from services will not be sufficient to fund our operations,
anticipated capital expenditures, working capital and other financing
requirements for at least the next twelve months. In the event the Company is
unable to achieve profitable operations in the near term, it may require
additional equity and/or debt financing, or reduce expenses, including officer’s
compensation, to reduce such losses. However, we cannot assure that such
financing will be available to us on favorable terms, or at all. We will
continue to monitor our expenditures and cash flow position and we are presently
debt free, and do not believe that we shall be forced to enter into any
long or short term debt arrangements.
August
13, 2009
|
||||
(inception)
to
|
||||
August
31,
|
||||
2009
|
||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||
Net
(loss)
|
$
|
(17,275
|
)
|
|
Adjustments
to reconcile net (loss) to net cash used in operating
activities:
|
||||
Shares
issued for services
|
-
|
|||
Decrease
(increase) in assets:
|
||||
Prepaid
expenses
|
-
|
|||
Net
cash used in operating activities
|
(17,275
|
)
|
||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||
Proceeds
from sale of common stock, related party
|
18,000
|
|||
Contributed
capital, related party
|
2,500
|
|||
Net
cash provided by financing activities
|
20,500
|
|||
NET
CHANGE IN CASH
|
3,225
|
|||
CASH
AT BEGINNING OF YEAR
|
-
|
|||
CASH
AT END OF YEAR
|
$
|
3,225
|
||
SUPPLEMENTAL
INFORMATION:
|
||||
Interest
paid
|
$
|
-
|
||
Income
taxes paid
|
$
|
-
|
Since our
inception on August 13, 2009, we have incurred a loss of ($17,275). Our cash and
cash equivalent balances were $3,225 for the period ended August 31, 2009. At
August 31, 2009 we had an accumulated deficit of ($17,275). Total current
liabilities were $0
22
Eighteen
Million (18,000,000) common shares were issued with a value of $0.001. For the
period ended August 31, 2009, net cash after operating activities was $3,225.
General and administrative expenses as of August 31, 2009 were
$17,275.
Based on
our current operating plan, we do not expect to generate revenue that is
sufficient to cover our expenses for at least the next twelve months. In
addition, we do not have sufficient cash and cash equivalents to execute our
operations for at least the next twelve months. We will need to obtain
additional financing to conduct our day-to-day operations, and to fully execute
our business plan. We will raise the capital necessary to fund our business
through a subsequent offering of equity securities. Additional financing,
whether through public or private equity or debt financing, arrangements with
security holders or other sources to fund operations, may not be available, or
if available, may be on terms unacceptable to us.
Our
ability to maintain sufficient liquidity is dependent on our ability to raise
additional capital. If we issue additional equity securities to raise funds, the
ownership percentage of our existing security holders would be reduced. New
investors may demand rights, preferences or privileges senior to those of
existing holders of our common stock. Debt incurred by us would be senior to
equity in the ability of debt holders to make claims on our assets. The terms of
any debt issued could impose restrictions on our operations. If adequate funds
are not available to satisfy either short or long-term capital requirements, our
operations and liquidity could be materially adversely affected and we could be
forced to cease operations.
INFLATION
The rate
of inflation has had little impact on the Company's results of operations and is
not expected to have a significant impact on the continuing
operations.
We are
paying the expenses of the offering because we seek to (i) become a reporting
company with the Commission under the Securities Exchange Act of 1934 (the "1934
Act"); and (ii) enable our common stock to be traded on the OTC Bulletin Board.
We believe that the registration of the resale of shares on behalf of our
existing security holders may facilitate the development of a public market in
our common stock if our common stock is approved for trading on the OTC Bulletin
Board.
PLAN
OF OPERATION
We will
not receive any proceeds from the sale of shares under this prospectus. Our
continued existence is dependent upon our ability to obtain additional
financing. Our capital requirements for the next 12 months will continue to be
significant.
Based on
our current operating plan, we do not expect to generate revenue that is
sufficient to cover our expenses for the next twelve months. In addition, we do
not have sufficient cash and cash equivalents to execute our operations and will
need to obtain additional financing to operate our business for the next twelve
months. The company will market and sell its one product Flamex
over the next twelve months to mattress manufactures in Canada and the United
States. The company will need additional capital of $75,000 for
marketing and sells associated with Flamex over the next year. The
blending, manufacturing, packaging and shipping of the Flamex product is out
sourced to Seatex. The company intends to create a client base
within this twelve month time frame. Additional financing, whether through
public or private equity or debt financing, arrangements with the security
holder or other sources to fund operations, may not be available, or if
available, may be on terms unacceptable to us. Our ability to maintain
sufficient liquidity is dependent on our ability to raise additional
capital.
If we
issue additional equity securities to raise funds, the ownership percentage of
our existing security holder would be reduced. New investors may demand rights,
preferences or privileges senior to those of existing holders of our common
stock. Debt incurred by us would be senior to equity in the ability of debt
holders to make claims on our assets. The terms of any debt issued could impose
restrictions on our operations. If adequate funds are not available to satisfy
either short or long-term capital requirements, our operations and liquidity
could be materially adversely affected and we could be forced to cease
operations.
23
Our
independent auditors have added an explanatory paragraph to their report of our
financial statements for the period ended August 31, 2009, stating that our net
loss of ($17,275), lack of revenues and dependence on our ability to raise
additional capital to continue our existence, raise substantial doubt about our
ability to continue as a going concern. Our consolidated financial statements
and their explanatory notes included as part of this prospectus do not include
any adjustments that might result from the outcome of this uncertainty. If we
fail to obtain additional financing, either through an offering of our
securities or by obtaining loans, we may be forced to cease our
business.
We are
bearing all costs relating to the registration of the common stock, which are
estimated at approximately $38,000. The selling security holder, however, will
pay any commissions or other fees payable to brokers or dealers in connection
with any sale of the common stock.
GENERAL
OVERVIEW
Flameret,
Inc. also referred to as Flameret and the Company, was founded in the State of
Nevada on August 13, 2009. Flameret, Inc. is a provider of a fire
barrier product.
FLAMERET,
INC. is presently marketing for sale one product named (Flamex), a textile FR
treatment. Flamex is a liquid that is applied to textiles, these treated
textiles are used by mattress manufactures during mattress assembly. These
treated textiles resist ignition from smoldering cigarettes and resist ignition
from an open-flame heat source. Flameret is a development stage company
with a limited history of operations.
The
Company’s executive offices are located at 3280 Sunrise Highway Suite 51
Wantagh, NY 11793. The Company’s telephone number is 516-
816-2563.
ORGANIZATION
WITHIN LAST FIVE YEARS
Flameret,
Inc. was founded in the State of Nevada on August 13, 2009. The Company’s
business is providing liquid fire barriers to
component parts of a mattress. Flameret, Inc. product Flamex is a liquid that is
applied to textiles, these treated textiles are used at the production stage of
such products as mattresses to resist ignition from smoldering cigarettes and
resist ignition from an open-flame heat source. The Company plans to
market Flamex through a combination of direct sales, referrals and networking
within the industry.
Over the
next twelve months, Flameret, Inc. plans to build out its reputation and network
in the fire barrier industry, thereby attracting new
clients. Currently the company employs three employees, however as
the Company grows, it plans to employ additional employees, as
required.
BUSINESS
FAILITIES
Flameret,
Inc. is located at 3280 Sunrise Highway Suite 51 Wantagh, NY
11793. The Company’s telephone number is 516-
816-2563.
UNIQUE
FEATURES OF THE COMPANY
The fire
barrier industry is a multidisciplinary and widely applicable
industry. Products enabled by fire barrier technology are applicable to a
large number of industries including mattresses, sofas, chairs, carpeting, and
workers coveralls.
The
Company’s product Flamex is made from totally natural ingredients and is
completely toxic free.
The use
of fire barriers in the mattresses and mattresses bedding for children in
particular is an area of increasing interest, and these types of materials are
the cornerstones of new generations of mattresses and mattresses
beddings. Flameret, Inc. aims to establish its Flamex product to the
mattresses
industry. The Company believes that
the combination of their Flamex product, aimed in
an industry that has widespread applicability and
furthermore is creating interest on a global scale, is one of its unique
features.
24
OVERALL
STRATEGIC DIRECTION
The
Company plans to establish its reputation in the fire barrier industry, thereby
attracting new clients and building out its network of
operations.
The
company aims to form long term working relationships with a number of mattresses
manufactures in the mattresses industry and other fire barrier related
sectors.
THE U.S.
MATRESSESS INDUSTRY (FIRE BARRIERS)
Two
federal flammability standards apply to mattresses. The first, called 16 CFR
Part 1632, requires that a mattress resist ignition from a smoldering heat
source like a cigarette. The second, called 16 CFR Part 1633, requires that a
mattress resist ignition from a small-flame heat sources, such as a match,
lighter or candle.
ABSTRACT
The U.S.
mattress industry has now implemented a new flammability standard promulgated by
the Consumer Product Safety Commission (CPSC) that requires mattresses produced
on and after July 1, 2007 to resist ignition from an open-flame heat source
(such as a match, lighter, or candle).
Background
All
mattresses made on or after July 1, 2007 for sale in the United States must now
meet two separate federal flammability standards administered by the Consumer
Product Safety Commission (CPSC) and issued under the Flammable Fabrics
Act.
The first
standard, in place since 1973 and codified at 16 C.F.R. 1632, requires
that mattresses resist ignition from a smoldering cigarette. Specifically, 1632
requires a mattress producer to test six sides of each mattress prototype it
manufactures by placing at least 18 lit cigarettes at specified points on each
mattress surface tested. A prototype passes if the char marks from each lit
cigarette do not exceed two inches in any direction from the
cigarette. 1632 requires each mattress manufacturing plant to conduct
these tests.
The
second standard, which became effective July 1, 2007 and is codified at
16 C.F.R. 1633, requires that mattresses resist ignition from an
open-flame heat source. Using a test apparatus and test method developed by the
National Institute of Standards and Technology, a mattress must perform as
follows during a 30-minute test period:
1.
|
Generate
less than 15 Mega joules (MJ) of total heat during the first 10 minutes of
the test, and
|
2.
|
Produce
a peak heat release rate (PHRR) of less than 200 Kilowatts (kW) during the
30 minutes following
ignition.
|
ADDITIONAL
REQUIREMENTS FOR MATTRESS MANUFACTURES
Qualified
Prototypes: To meet mattresses offered to consumers must be based on a
“qualified prototype” (defined as a mattress design that has passed the
performance requirements in three successive tests).
Quality
Assurance: Each mattress producer must implement a quality assurance (QA)
program to confirm that mattresses manufactured for sale are the same (in terms
of materials, components, design, and methods of assembly) as the qualified
prototype on which they are based.
Recordkeeping:
Each mattress manufacturer must maintain detailed records concerning its
prototype and confirmation tests, its QA program, and other relevant production
related records.
25
In many
respects, fire barriers in mattresses are a relatively new
field. Fire barriers raise many of the same issues as with any
introduction of new technology, including concerns about the toxicity and
environmental impact of chemicals applied to mattresses, and their potential
effects on environment.
UNITED
AMERICAN AND FLAMEX DEVELPOMENT
On May
18, 1988, United American Inc. (UAI) acquired patent #4,961,865
(fire extinguishing solutions for extinguishing phosphorus and metal fire) and
patent #4,950,410
from the inventor Edmund Pennartz. After acquiring the patents and
the technology from Mr. Pennartz, UAI developed three fire retardant products,
1. Flamex, a textile FR treatment. .2. Ultra
Flamex, a fire extinguishing product and 3. Impex. Flamex is applied
as a liquid compound to textiles, this produces a carbon membrane which is
activated when heat is applied to produce the fire retardant properties, and
this protection is called a carbon barrier shield. [Fire
barrier]
Starting
in December of 1987 Mr. Pennartz began testing Flamex by Underwriters
Laboratories of Canada (7 Crouse Road Scarborough, Ontario Canada) to compare
the potential extinguishing effectiveness agents with water.
On
February 20, 1991, Captain Salle Barakah, commander of Saudi Civil Defense
training Center tested UAI product Flamex to determine if it could be used for
crude oil fire extinguishing materials. The mission was to identify
crude oil fire extinguishing materials and assess their effectiveness, material
availability, ease of application and other related factors. The
Saudi Administration of Civil Defense demonstrated the extinguishing material.
The recommendations from the test were submitted to Brigadier General Max L.
Schardein , Argent 416th
engineer command and Major General Abdul Aziz M. Al Sheik Brigadier General
Salem Awaimer Al Mutairi Joint Forces Operations Theater Command were as
follows.
“1. The
results of the FLAMEX demonstrations indicated the product should be seriously
considered for breaching tank obstacle fire trenches, and on other oil -fire
hazards.
2. High
emphasis should be placed on establishing an in-Saudi manufacturing source of
FLAMEX
3. FLAMEX
should be considered for use in Kuwait by U.S. and coalition forces to reduce
risks to troops involved in combat emergency services or restoration operations
that involve oil or industrial plant fires.
4. A copy
of this report should be forwarded to the U.S. Army Engineer Center and Ft.
Leonard Wood for placement into archives for future use. “
No Flamex
product was ever sold to the military or Saudi Civil Defense Training
Center.
On
January 29, 2007 SGS U.S. Testing Company Inc. located in Tulsa Ok tested the
Flameret product that was contained in a “RW-REG TAW 14G-TT.FR”
mattress. The Flamex product was applied to the Barrier/Interlinear,
Fire Barrier CT %, Bottom Side. The conclusion was that “the mattress
tested complies with the requirements of California Technical Bulletin
603.
On
September 10, 2007 SGS U.S. Testing Company Inc. located in Tulsa Ok tested the
Flameret product that was contained in a Medi-Pedic Bedding “Designer Choice Box
Pillow Top” mattress. The Flamex product was applied to the Fire
Barrier CT %, Bottom Side. The conclusion of SGS was that “the
mattress tested complies with the requirements of California Technical Bulletin
603.
No Flamex
product was ever sold to either mattress manufacturer.
United
American, Inc. has never sold their products to any manufactures; the company’s
sole business is the development of fire barrier products. In August
14, 2009 Flameret, Inc. acquired the rights to market and sell United American,
Inc. three products 1. Flamex, a textile FR
treatment. 2. Ultra Flamex, a fire extinguishing product
and 3. Impex. for 15 years worldwide. Flameret has the rights to use all
studies, reports and research conducted by UAI in regard to these three
products. Flameret, Inc. will compensate United American, Inc. by
paying a 1.5% gross royalty to UAI on all products sold.
FLAMERET,
INC. is presently marketing for sale one product named (Flamex), a textile FR
treatment. Flamex is a liquid that is applied to textiles, these
treated textiles are used at the production stage of such products as mattresses
to resist ignition from smoldering cigarettes and resist ignition from an
open-flame heat source. The company aims to focus on long-term client
retention, within the U.S. mattress industry.
26
Flameret
Fire Retardant
Flameret
fire retardant or - FR, is a non-toxic made from totally natural products.
Flameret FR also works well on cardboard, wood and paper.
It is a
light weight transparent liquid and does not leave white flaky residues and will
not change the hand [feel] or scent of the fabric. It will not discolor or
shrink the fabric and is odorless. It needs less than 24 hours for curing time
depending upon the process and textile application to allow for complete fiber
penetration and compound set up.
Flameret
FR is a water based solution applied to the fresh milled textiles. The liquid
solution first penetrates into the molecular structure. The treated textile is
then dried through ovens that evaporate the water leaving a fire retardant
compound thoroughly bound and bonded throughout the molecular structure of the
fabric. It is this bound compound that creates fire resistance when an external
heat source is applied - thus creating a carbon barrier shield. When external heat is applied to the treated surface by heat
sources such as candles, matches, molten metal or any direct flame, this bound
compound is changed into a carbon barrier shield. This carbon barrier shield
triggers an interlocking effect of one fiber to another and produces a surface
that deflects heat and will not allow fire to penetrate the surface. This carbon
barrier shield will cause the fire to die out as the carbon barrier shield suffocates the fire by
not allowing oxygen to the fire on the fibers. FLAMERET’s FR will be used on
textiles that are natural as well as synthetic fibers.
Flameret
will be used on the components of mattresses prior to their final
assembly.
Mattress
manufacturing use the following components in their mattresses, ticking, high
loft non-woven and needle pointed fibers, filler cloths, universal borders and
mattress socks. Flamex can be applied to all of these materials to impart a
carbon barrier shield.
These
textiles include almost every fabric that is used to make a
mattress
1.
|
Ticking
– A material used on the top and bottom sides of the top mattress and
foundations.
|
2.
|
Universal
Borders – The material that is used on the sides of the top
mattress and foundation
|
3.
|
Non
Woven Loft and Side Panels – In some applications a fire barrier
inserted under the ticking is necessary as in the case of pillow top with
heavy fuel load and some institutional
beds
|
4.
|
Mattress
Sock – Like the word implies in some applications such as with
memory foam a stretchy material is needed to shape with the memory foam
when it is slept on.
|
5.
|
Filler
Cloth - is the material that goes on the top of the foundation. An
inexpensive cotton cloth.
|
DESCRIPTION
OF PRODUCTS
Product
Development:
In July
2009, Mr. Glover began working with Seatex LTD www.seatexcom,
located at 445 TX-36 Rosenberg, Texas 77471, to blend, manufacture and package
the Flamex product for Flameret, Inc. Mr. Glover provided Seatex with the United
American, Inc. formula for Flamex.
Since
1968 Seatex has been providing turnkey chemical compounding, toll manufacturing
and private label packaging services. Areas of expertise include food service,
food processing, automotive, institutional and industrial laundry, janitorial,
industrial and oilfield service markets. Seatex can manufacture and package to
strict specifications, duplicate formulas, or make available our own 400 plus
finished formulations. Seatex is employee owned. Seatex is a full service
contract manufacturer dedicated to the production and marketing of branded
products and turnkey custom formulations.
27
Private
Label
Seatex
offers a turn-key program for private labelers. They maintain a very large
library of formulations compiled from 40 years of chemical blending experiences.
Seatex can assist in label design maintain MSDS and all regulatory issues.
Seatex also carries full product liability insurance.
Seatex
currently sits on approximately 20 acres occupying over 210,000 square feet of a
modern manufacturing and warehousing facilities. Rail service is
available.
1.
|
Liquids
|
Seatex’s
liquid blending facility consists of 14 vessels ranging from 400 – 10,000
gallons. All blend tanks are on load cells, and all products are made using
weight for accuracy. Seatex presently utilize 28 bulk holding tanks for raw
material and finished goods inventory. Seatex’s liquid blending and packaging
capabilities range from tank trucks, tote tanks, drums, pails, gallons, quarts
down to 8 oz. bottles. Seatex currently utilize a high speed rotary or high
speed inline fillers for larger packaging projects and three smaller inline
fillers for smaller runs.
2.
|
Powders
|
Seatex’s
dry blending consists of three blenders, two 5000 lb. and one 2000 lb. capable
of producing over 100,000 lbs. per day. Powder packaging ranges from pouches,
jars, bags, boxes, pails, drums and bulk sacks.
Consistently
producing quality products is our passion.
Seatex
makes inspections of all raw materials before they are unloaded into its
inventory. Prior to a blend the formulations is printed out and assigned a batch
number. Raw material inventories are checked to ensure the batch size can be
completed. Liquid and powder blenders are all equipped with load-cells which
monitor the weight of each raw material as it is added to the vessel. This
greatly reduces the opportunity for error. When all raw materials are added and
the formula has had the proper amount of time to blend a sample is taken to the
lab for testing. Once the product meets the specifications it can be packaged.
It is Seatex’s company policy to keep a sample of each batch for one year unless
otherwise specified by the client. Formulations are setup in Seatex’s computer
and are consistently monitored for adjustments. Seatex’s lab is equipped with a
variety of testing equipment ranging from a simple pH to a Spectrophotometer
which we use to measure subtle differences in color. Seatex is very customer
driven and has the capability to test most specifications.
Seatex
will formulate, manufacture, label and will distribute the Flamex product to
customers in the future.
Manufacturing:
Seatex
will manufacture Flamex for the company. All key ingredients included in our
product are readily available from Seatex. The following ingredients
are contained in Flamex. (Sodium Chloride, Magnesium Chloride, Sodium Sulfate
Decahydrate, Calcium Chloride, Magnesium Sulfate, Calcium Sulfate, Potassium
Sulfate, Magnesium Bromide, Potassium Chloride and Water.
Packaging:
Seatex
will take the manufactured products and package and ship the final product
directly to the customer. The mattress manufacture will add the
liquid Flamex to the product that the manufacture wants to impart a fire barrier
to.
28
Sales
Strategy:
We have
established a two-prong sales approach; our first prong utilizes direct sales
through Christopher Glover and Michael O’Driscoll.
Direct
Sales
Our
direct sales are being conducted by Mr. Chris Glover and Mr. O’Driscoll; they
are currently marketing the product to Canadian mattress manufactures. Their
current marketing strategy consists of various Point of Sale material including
posters and flyers developed by Mr. Glover in the past several
months.
We intend
to derive income from these sales and our goal is establish brand recognition.
In order to bring the Flamex to market, the Company will need to seek additional
capital of approximately $75,000. These funds would be used for, working capital
and marketing materials. If the Company is unable to obtain additional financing
at reasonable cost, it would be unable to market and sell Flamex. Presently the
Companies working capital consists of $3,225 which is not sufficient to fund the
sale of Flamex through Mr. Glover and Mr. O’Driscoll.
DISTRIBUTORS
To
utilize our second prong of sales approach conducted by Mr. Neil Glover the
company will need to seek additional capital to fund this
model. Presently the Company does not have the additional capital
needed to utilize the second prong of sales, setting up distributors of the
Flamex product.
In, 2011
Flameret, Inc. intends to market through mattress distributors its Flamex
product. In order for the company to begin the distributor model it will require
the Company to seek additional capital of $1M in order to develop the
distributor network. The Company believes it will not have the additional
capital until 2011.
Competition
The fire
retardant industry is highly competitive and is characterized by a large number
of competitors ranging from small to large companies with substantial resources.
The company’s main competition is 3M and DuPont, who provide oil, based toxic
retardants. Many of our potential competitors have substantially larger customer
bases, greater name recognition, greater reputation, and significantly greater
financial and marketing resources than we do. In the future, aggressive
marketing tactics implemented by our competitors could impact our limited
financial resources and adversely affect our ability to compete in these
markets. There are some other small operators who claim that their product are
non toxic but do not have the testing to support their claims.
Price
competition exists in fire retardant products. Costs of raw materials decreases
within the industry could adversely affect our operations and profitability.
There are many fire retardant companies that could discount their products which
could result in lower revenues for the entire industry. A shortfall from
expected revenue levels would have a significant impact on our potential to
generate revenue and possibly cause our business to fail.
CURRENT
BUSINESS FOCUS
The
Company’s business focus is to provide its Flamex product to the mattress
industry for use with Ticking, Universal Borders –Non Woven Loft, Side Panels
and Mattress Sock –Filler Cloth along with, at the fairest price, to the largest
percentage of the target market population as possible. The Company
believes that the ability to perform, the price and consistency of service and
product are main factors in fostering a repeat customer base, greater advisory
network and reputation.
29
ADVANTAGES
OF COMPETITORS OVER US
The
Company believes the following are advantages of Competitors over
us.
CUSTOMER BASE: Presently the company does
not have an established regular customer
base and the company has generated no revenues from our business
operations.
FINANCIAL RESOURCES: The
Company believes that many of its competitors have
significantly greater financial and other resources than we do and are
therefore, in certain respects, in a better position to provide fire
barrier products services as well as promote their services.
COMPETITIVE
ADVANTAGES
The
Company believes that its key competitive advantages are:
EXPERIENCED
MANAGEMENT: The Company believes that it has experienced management.
Our sole
executive officer Mr. Glover has over 10 years of experience in the
management and business operations. The company believes that the knowledge,
relationships, reputation and successful track record of its management will
help it to build and maintain its client base.
FLAMEX
An
important advantage of the fire extinguishing compositions is the fact that the
product contains only compounds with low levels of mammalian
toxicity. Therefore, these novel compositions do not pose a
significant health hazard to firefighters or other humans that come into contact
with the fire extinguishing composition or residues of the
composition.
NICHE
INDUSTRY
We
believe the highly specialized nature of our corporate focus enables us to be a
better long-term partner for our clients than if we were organized as a
traditional fire barrier company, which we believe has a limited usefulness for
the client.
RESEARCH
AND DEVELOPMENT
The
Company is not currently conducting any research and development activities.
However if research and development is required in the future, we intend to rely
on third party service providers.
EMPLOYEES
Christopher
Glover is the sole Director, Chief Executive Officer, President, Secretary, and
Principal Executive Officer and Principal Financial Officer of Flameret,
Inc. Presently, there are two additional employees of the Company,
Michel O’Driscoll who will serve as Vice President of Finance and will be
working with the Principal Financial Officer, Christopher Glover. Neil Glover
will serve as Vice President of Sales.
The
Company plans to employ individuals on an as needed basis. The
company anticipates that it will need to hire additional employees as the
business grows. In addition, the Company may expand the size of our Board of
Directors in the future. Presently Christopher Glover, Michael
O’Driscoll and Neil Glover will devote 40 hours a week to the affairs of the
Company. Christopher Glover, Michael O’Driscoll, and Neil Glover do
not receive a salary or benefits in any form. Presently the Company
does not have any plans to begin paying salaries, cash or otherwise, or offering
any form of benefits to our Board of Directors, Officer and
employees.
ADDITIONAL
PRODUCTS:
In, 2012
Flameret, Inc. intends to market and distribute Ultra Flamex (a fire
extinguishing product). These products will require the Company to seek
additional capital of $2M to formulate, manufacture, package and distribution.
The Company believes it will not have the additional capital until
2012.
PROPERTY
DESCRIPTION
Flameret,
Inc. is located at 3280 Sunrise Highway Suite 51 Wantagh, NY 11793. Our
telephone number is 516- 816-2563. Our Internet address is http://www.flameret.com.
30
MANAGEMENT
DIRECTORS,
EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS
The
following table sets forth the name and age of officers and director as of
August 13, 2009. Our Executive officers are elected annually by our board of
directors. Our executive officers hold their offices until they resign, are
removed by the Board, or his successor is elected and qualified.
Board
of Directors
Christopher
Glover
Executive
Officers
NAME
|
AGE
|
POSITION/INITIAL
ELECTION
|
APPOINTMENT
DATE
|
|||
Christopher
Glover
|
63
|
Chief
Executive Officer, President, Chief Financial Officer,
Secretary
|
August
13, 2009
|
|||
Michael
O’Driscoll
|
43
|
Vice
President, Finance
|
August
13, 2009
|
The
Directors will hold office until the next annual meeting of the security holders
following their election and until their successors have been elected and
qualified. The Board of Directors appoints Officers. Officers hold office until
the next annual meeting of our Board of Directors following their appointment
and until successors have been appointed and qualified.
Set forth
below is a description of the recent employment and business experience of our
Directors and Executive Officers:
MANAGEMENT
BIOGRAPHIES
Christopher
Glover; B.Sc., Chief Executive Officer, President, Chief Financial Officer,
Secretary
Mr. Christopher Glover, aged 63, is the Chief
Executive Officer, President, Secretary, Chief Financial Officer and Director
(Principal Executive Officer) and (Principal Financial Officer) of the
Company. He was appointed in August 2009 and is reasonable for
overseeing all aspects of the company.
From
August 2009 to Present Mr. Glover has acted as Chief Executive Officer,
President, Secretary, and Director (Principal Executive Officer) of the
Company.
Mr.
Glover specializes in the development of emerging companies and their
technologies and operations and required financing, which include the
following:
From
1995, to August 2009, Mr. Glover has acted as Chief Executive Officer
for Auto Data Network (AND). Auto Data Network is a software
and services supplier to the Automotive Sector. The company provides
integrated solutions for automotive retailers.
From 2004
through June of 2009 Mr. Glover work as an outside consultant with United
American, Inc. Mr. Glover provided United American, Inc. with
suppliers who could blend and manufacture UAI’s fire barrier
products. Mr. Glover has not and does not own any interest in United
American, Inc.
Additionally
from 1991 to 1995 Mr. Glover was the Sales Director of COS
Limited. COS is a marketing and production services company supplying
mainly to the Publishing, Training and Motor Industries with such facilities as
Design, Media Duplication (Video, Audio, Disk), Print, Packaging, Marketing and
Distribution.
From 1989
to 1991 Mr. Glover was the Managing Director of County Contract Hire Limited a
specialized contract hiring company.
31
Michael
O’Driscoll, Vice President, Finance
Mr. Michael O’Driscoll, aged 57, is the Financial Vice
President of the company. He was appointed in August 2009 and is
reasonable for the financial matters of the company. Mr. O’Driscoll
works directly with the Chief Financial Offer Mr. Glover.
August
2009 to Present: Vice President of Finance of Flameret, Inc. Mr.
O’Driscoll is reasonable for all financial matters in regard to the
company.
1997 to
August 2009, Mr. O’Driscoll was the Chief Financial Officer for Switch Pharma
Pic a drug research company. Switch Pharma Pic specializing in alternative uses
for established drugs.
From 1996
to 1997, Mr. O’Driscoll was non executive chairman of QV Foods Limited and
AHWORTH Ltd. The company is a food packer and processor in
Lincolnshire, England. Mr. O’Driscoll was reasonable for setting up
corporate procedures, and coordinated and assisted in
development of strategic planning process to develop market opportunity.
Additionally from 1994 through 1996 Mr. O’Driscoll worked for Key Finance
Limited a computer finance company located in London, England. Mr.
O’Driscoll work in expanding contracts with UK finance houses. From 1978 to
1994, Mr. O’Driscoll worked for Merrydown PLC as Finance
Director. The company produced Cider and health
foods. From 1975 to 1978 he was employed by Deloitte Haskins &
Sells as Joined Deloitte Haskins and Sells as articled clerk and left as audit
senior. Participated in and supervised audits of Inchcape, BICC, Associated
Newspapers, Sothby's Bovis, M&G, Cable & Wireless, Slater
Walker.
Neil
Glover, age 30, Vice President of
Sales
Mr. Neil
Glover is the Vice President of Sales and reports directly to the President and
Chief Executive Officer of the company. Mr. Neil Glover is the son of
the President of the company Christopher Glover.
Mr. Neil
Glover has a Post Graduate Diploma in Marketing - Chartered Institute of
Marketing Member of the Chartered Institute of Marketing and a Chartered
Marketer. BA (Hons) Degree, Business Management with Marketing Management.
University of Gloucestershire, Cheltenham, Sept. 1998 - June 2002. 4-year
sandwich course with one years work placement (Mostra Ltd. & Allcars.com
Ltd.)
From 2007
to August 2009 Mr. Neil Glover worked for Rix & Kay Solicitors LLP a
regional law firm based in Sussex, England. They offer a complete range of both
private client and commercial services and have a series of dedicated teams that
are specialists within the fields they operate. Mr. Neil Glover was
responsible for planning and implementing new acquisition activity through
co-coordinating, developing, and delivering a range of promotions, events,
literature and products to clients. He also worked on promotional campaigns
utilizing full marketing mix. From 2005 through 2007 Mr. Neil Glover
worked for JNSquared Ltd. Marketing as the Director of Marketing
. JNSquared Ltd is an independent marketing and website design
consultancy. The company works with a number of businesses from start-ups to
well established firms. Mr. Neil Glover was reasonable for developing
clients marketing strategy and ensuring that their business requirements were
met. From 2003 through 2005 Mr. Neil Glover worked for Auto Data
Network as a marketing manager. He was responsible for the project management of
allCars.com.
AUDIT
COMMITTEE
The
Company does not presently have an Audit Committee and the Board acts in such
capacity for the immediate future due to the limited size of the Board. The
Company intends to increase the size of its Board in the future, at which time
it may appoint an Audit Committee.
The Audit
Committee will be empowered to make such examinations as are necessary to
monitor the corporate financial reporting and the external audits of the
Company, to provide to the Board of Directors (the "Board") the results of its
examinations and recommendations derived there from, to outline to the Board
improvements made, or to be made, in internal control, to nominate independent
auditors, and to provide to the Board such additional information and materials
as it may deem necessary to make the Board aware of significant financial
matters that require Board attention.
32
COMPENSATION COMMITTEE
The
Company does not presently have a Compensation Committee and the Board acts in
such capacity for the immediate future due to the limited size of the Board. The
Company intends to increase the size of its Board in the future, at which time
it may appoint a Compensation Committee.
The
Compensation Committee will be authorized to review and make recommendations to
the Board regarding all forms of compensation to be provided to the executive
officers and directors of the Company, including stock compensation, and bonus
compensation to all employees.
NOMINATING
COMMITTEE
The
Company does not have a Nominating Committee and the full Board acts in such
capacity.
COMPLIANCE
WITH SECTION 16(a) OF THE EXCHANGE ACT
Section
16(a) of the Securities Exchange Act of 1934 requires that the Company's
directors and executive officers and persons who beneficially own more than ten
percent (10%) of a registered class of its equity securities, file with the SEC
reports of ownership and changes in ownership of its common stock and other
equity securities. Executive officers, directors, and greater than ten percent
(10%) beneficial owners are required by SEC regulation to furnish the Company
with copies of all Section 16(a) reports that they file. Based solely upon a
review of the copies of such reports furnished to us or written representations
that no other reports were required, the Company believes that to date, all
filing requirements applicable to its executive officers, directors, and greater
than ten percent (10%) beneficial owners were met.
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The
following tables set forth certain information regarding beneficial ownership of
our securities by (i) each person who is known by us to own beneficially more
than five percent (5%) of the outstanding shares of each class of our voting
securities, (ii) each of our directors and executive officers, and (iii) all of
our directors and executive officers as a group. We believe that each individual
or entity named has sole investment and voting power with respect to the
securities indicated as beneficially owned by them, subject to community
property laws, where applicable, except where otherwise noted. Unless otherwise
stated, our address is: 3280 Sunrise Highway Suite 51 Wantagh, NY 11793. The
Company's telephone number is 516- 816-2563.
As of
August 31, 2009, there were Eighteen Million (18,000,000) shares of common stock
issued and outstanding.
(1) This
table is based on Eighteen Million (18,000,000) shares of common stock
outstanding
As of the
date of this prospectus, we had the following security holder holding greater
than 5%:
Title
of Class
|
Name
and Address of Beneficial Owner
|
Amount
and Nature of Beneficial Owner
|
Percent
of Class (1)
|
Common
Stock
|
Christopher
Glover
|
18,000,000
|
100%
|
Common
Stock
|
All
executive officers and directors as a group
|
18,000,000
|
100%
|
Total
|
18,000,000
|
100%
|
33
REMUNERATION
OF DIRECTORS AND OFFICERS
The
following table sets forth the cash remuneration of our Director and Officer for
the period from inception on August 13, 2009, through to the end of the period
on August 31, 2009:
NAME
OF INDIVIDUAL
|
CAPACITIES
IN WHICH REMUNERATION WAS RECEIVED
|
AGGREGATE
CASH REMUNERATION
|
Christopher
Glover
|
Chief
Executive Officer,
President,
Chief Financial Officer, Secretary
|
$
NIL
|
Michael
O'Driscoll
|
Vice
President
|
$
NIL
|
Niel
Glover
|
Vice
President, Sales
|
$NIL
|
Total
|
All
Officers and Directors
|
$NIL
|
EMPLOYMENT
AGREEMENTS
To date,
the Company has no employment agreements in effect with its Principal Executive
Officer. We do not pay compensation to our Director for attendance at meetings.
We will reimburse Directors for reasonable expenses incurred during the course
of their performance.
EXECUTIVE
COMPENSATION
The
following executive compensation disclosure reflects all compensation awarded
to, earned by or paid to the executive officers below. The following table
summarizes all compensation from inception (August 13, 2009) to August 31,
2009.
SUMMARY
COMENSATION TABLE
NAME
PRINCIPAL OTHER
|
CAPACITIES
IN WHICH REMUNERATION WAS RECEIVED
|
OTHER
ANNUAL COMPENSATION
|
||
YEAR
|
SALARY
$
|
BONUS
$
|
||
Christopher Glover
|
Chief
Executive Officer, President, Chief Financial Officer,
Secretary
|
2009
|
$
NIL
|
$
NIL
|
Michael
O’Driscoll
|
Vice
President, Finance
|
2009
|
$
NIL
|
$
NIL
|
Niel
Glover
|
Vice
President, Sales
|
2009
|
$NIL
|
$NIL
|
COMPENSATION
OF DIRECTORS
Directors
do not currently receive compensation for their services as directors, but we
plan to reimburse them for expenses incurred in attending board
meetings.
STOCK
INCENTIVE PLAN
At
present, we do not have a stock incentive plan in place. We have not granted any
options to Directors and Officers.
34
EMPLOYMENT
AGREEMENTS, TERMINATION OF EMPLOYMENT AND
CHANGE-IN-CONTROL
ARRANGEMENTS
At
present, we do not have employment agreements with our Principal Executive
officer.
PRINCIPAL
STOCKHOLDER
a)
Security Ownership of Management - the number and percentage of shares of common
stock of the Company owned of record and beneficially, by each officer and
director of the Company and by all officers and directors of the Company as a
group, and all shareholders known to the Company to beneficially own 5% or more
of the issued and outstanding Shares of the Company, is as follows.
Unless
otherwise stated, our address is: 3280 Sunrise Highway Suite 51 Wantagh, NY
11793. The Company's telephone number is 516- 816-2563.
Name
|
Shares
Beneficially
Owned
prior to
Offering
|
Shares
to be
Offered
|
Shares
Beneficially
Owned
after
Offering
|
Percent
Beneficially
Owned
after
Offering
|
||||||||||||
Christopher
Glover
|
18,000,000
|
8,000,000
|
10,000,000
|
55%
|
||||||||||||
Total
Officers, Directors and Significant Shareholders as a
group
|
18,000,000
|
10,000,000
|
55%
|
INTEREST
OF MANAGEMENT AND OTHERS IN CERTAIN TRANSACTIONS
As of the
date of this prospectus, other than the transaction described above, there are
no, and have not been since inception, any material agreements or proposed
transactions, whether direct or indirect, with any of the
following:
*
|
Any
of our Directors or Officers;
|
|
*
|
Any
nominee for election as a director;
|
|
*
|
Any
principal security holder identified in the preceding “Security Ownership
of Selling Shareholder and Management" section; or
|
|
*
|
Any
relative or spouse, or relative of such spouse, of the above referenced
persons.
|
TRANSFER
AGENT AND REGISTRAR
Transfer
Agent and Registrar: The Company acts as its own transfer agent at this time.
When this registration statement becomes effective the company will use for our
common stock the services of ISLAND STOCK TRANSFER INC., 100 Second Avenue
South, Suite 705S St Petersburg, FL 33701, Telephone 727-289-0010 Facsimile
727-290-3961,
SHARES
ELIGIBLE FOR FUTURE SALE
Upon
completion of the offering, we will have outstanding Eighteen Million
(18,000,000) shares of common stock. Of these shares, the Eight Million
(8,000,000) shares to be sold in the offering, will be freely tradable in the
public market without restriction under the Securities Act, unless the shares
are held by our "affiliates," as that term is defined in Rule 144 under the
Securities Act.
The
remaining shares of common stock outstanding upon completion of the offering
will be "restricted securities," as that term is defined in Rule 144. Restricted
securities may be sold in the public market only if they are registered or if
they qualify for an exemption from registration, such as the exemption afforded
by Rule 144.
35
DISCLOSURE
OF COMMISSION POSITION OF INDEMNIFICATION FOR SECURITIES ACT
LIABILITIES
We have
adopted provisions in our certificate of incorporation that limit the liability
of our Directors for monetary damages for breach of their fiduciary duty as
directors, except for liability that cannot be eliminated under the Nevada
General Corporation Law. Nevada law provides that directors of a company will
not be personally liable for monetary damages for breach of their fiduciary duty
as directors, except for liabilities:
*
|
For
any breach of their duty of loyalty to us or our security
holders;
|
|
*
|
For
acts or omissions not in good faith or which involve intentional
misconduct or a knowing violation of law;
|
|
*
|
For
unlawful payment of dividend or unlawful stock repurchase or redemption,
as provided under Section 174 of the Nevada General Corporation Law;
or,
|
|
*
|
For
any transaction from which the director derived an improper personal
benefit.
|
In
addition, our bylaws provide for the indemnification of officers, directors and
third parties acting on our behalf, to the fullest extent permitted by Nevada
General Corporation Law, if our board of directors authorizes the proceeding for
which such person is seeking indemnification (other than proceedings that are
brought to enforce the indemnification provisions pursuant to the
bylaws).
These
indemnification provisions may be sufficiently broad to permit indemnification
of the registrant's executive officers and directors for liabilities (including
reimbursement of expenses incurred) arising under the Securities Act of
1933.
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
foregoing provisions, 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 of 1933 and is, therefore, unenforceable. No pending material
litigation or proceeding involving our directors, executive officers, employees
or other agents as to which indemnification is being sought exists, and we are
not aware of any pending or threatened material litigation that may result in
claims for indemnification by any of our directors or executive
officers.
Our
articles of incorporation and applicable Nevada law provide for the
indemnification of our directors, officers, employees, and agents, under certain
circumstances, against attorney's fees and other expenses incurred by them in
any litigation to which they become a party arising from their association with
or activities on our behalf. We will also bear the expenses of such litigation
for any of our directors, officers, employees, or agents, upon such person's
written promise to repay us if it is ultimately determined that any such person
shall not have been entitled to indemnification. This indemnification policy
could result in substantial expenditures by us, which we will be unable to
recoup.
We have
been advised that, in the opinion of the SEC, indemnification for liabilities
arising under federal securities laws is against public policy as expressed in
the Securities Act of 1933, as amended (the “Securities Act”), and is,
therefore, unenforceable. In the event that a claim for indemnification for
liabilities arising under federal securities laws, other than the payment by us
of expenses incurred or paid by a director, officer or controlling person in the
successful defense of any action, suit or proceeding, is asserted by a director,
officer or controlling person 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 indemnification by us is against public policy as expressed
in the Securities Act and will be governed by the final adjudication of such
issue. The legal process relating to this matter if it were to occur is likely
to be very costly and may result in us receiving negative publicity, either of
which factors is likely to materially reduce the market and price for our
shares, if such a market ever develops.
DESCRIPTION
OF SECURITIES TO BE REGISTERED
General
We are
authorized to issue an aggregate number of 100,000,000 shares of capital stock,
of which 90,000,000 shares are common stock, $0.001 par value per share, and
10,000,000 shares are preferred stock, $0.001 par value per share.
36
The
company issued to the founders Eighteen Million 18,000,000 common shares of
stock for $18,000. As of August 31, 2009, there are Eighteen Million
(18,000,000) shares issued and outstanding at a value of $0.001 per
share.
COMMON
STOCK: The securities being offered by the selling security holder
are shares of our Common stock.
Common
Stock
We are
authorized to issue 90,000,000 shares of common stock, $0.001 par value per
share. Currently we have 18,000,000 shares of common stock issued and
outstanding.
Each
share of common stock shall have one (1) vote per share for all purposes. The
holders of a majority of the shares entitled to vote, present in person or
represented by proxy, shall constitute a quorum at all meetings of our
shareholders. Our common stock does not provide a preemptive, subscription or
conversion rights and there are no redemption or sinking fund provisions or
rights. Our common stock holders are not entitled to cumulative voting for
election of the board of directors.
Holders
of common stock are entitled to receive ratably such dividends as may be
declared by the board of directors out of funds legally available therefore as
well as any distributions to the security holder. We have never paid cash
dividends on our common stock, and do not expect to pay such dividends in the
foreseeable future.
In the
event of a liquidation, dissolution or winding up of our company, holders of
common stock are entitled to share ratably in all of our assets remaining after
payment of liabilities. Holders of common stock have no preemptive or other
subscription or conversion rights. There are no redemption or sinking fund
provisions applicable to the common stock.
Preferred
Stock
We are
authorized to issue 10,000,000 shares of “blank check” preferred stock, $0.001
par value per share. The preferred stock may be divided into any number of
series as our directors may determine from time to time. Our directors are
authorized to determine and alter the rights, preferences, privileges and
restrictions granted to and imposed upon any wholly issued series of preferred
stock, and to fix the number of shares of any series of preferred stock and the
designation of any such series of preferred stock. As of the date of this
filing, we do not have any preferred shares issued and outstanding.
Dividends
We have
not paid any cash dividends to our shareholders. The declaration of any future
cash dividends is at the discretion of our board of directors and depends upon
our earnings, if any, our capital requirements and financial position, our
general economic conditions, and other pertinent conditions. It is our present
intention not to pay any cash dividends in the foreseeable future, but rather to
reinvest earnings, if any, in our business operations.
Warrants
There are
no outstanding warrants to purchase our securities.
Options
There are
no outstanding stock options to purchase our securities
LEGAL
PROCEEDINGS
From time
to time, we may become involved in various lawsuits and legal proceedings, which
arise, in the ordinary course of business. However, litigation is subject to
inherent uncertainties, and an adverse result in these or other matters may
arise from time to time that may harm our business. We are currently not aware
of any such legal proceedings or claims that we believe will have a material
adverse effect on our business, financial condition or operating
results.
37
EXPERTS
AUDITOR: The
financial statements included in this prospectus and the registration statement
have been audited by M & K CPAS PLLC to the extent and for the periods set
forth in their report appearing elsewhere herein and in the registration
statement, and are included in reliance upon such report given upon the
authority of said firm as experts in auditing and accounting.
INTERESTS
OF NAMED EXPERTS AND COUNSEL
No expert
or counsel named in this prospectus as having prepared or certified any part of
this prospectus or having given an opinion upon the validity of the securities
being registered or upon other legal matters in connection with the registration
or offering of the common stock was employed on a contingency basis, or had, or
is to receive, in connection with the offering, a substantial interest, direct
or indirect, in the registrant or any of its parents or subsidiaries. Nor was
any such person connected with the registrant or any of its parents or
subsidiaries as a promoter, managing or principal underwriter, voting trustee,
director, officer, or employee.
CHANGES
IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING
AND
FINANCIAL DISCLOSURE
There
have been no disagreements regarding accounting and financial disclosure matters
with our independent certified public accountants.
AVAILABLE
INFORMATION
We have
not previously been subject to the reporting requirements of the Securities and
Exchange Commission. We have filed with the Commission a registration statement
on Form S-1 under the Securities Act with respect to the shares offered hereby.
This prospectus does not contain all of the information set forth in the
registration statement and the exhibits and schedules thereto. For further
information with respect to our securities and us you should review the
registration statement and the exhibits and schedules
thereto.
You can
inspect the registration statement and the exhibits and the schedules thereto
filed with the commission, without charge, in our files in the Commission's
public reference room at 100 F Street, N.E., Room 1580, Washington, D.C. 20549.
You can also obtain copies of these materials from the public reference section
of the commission at 100 F Street, N.E., Room 1580 Washington, D.C. 20549, at
prescribed rates. You can obtain information on the operation of the Public
Reference Room by calling the SEC at 1-800-SEC-0330. The Commission maintains a
web site on the Internet that contains reports, proxy and information
statements, and other information regarding issuers that file electronically
with the Commission at http://www.sec.gov.
REPORTS
TO SECURITY HOLDER
As a
result of filing the registration statement, we are subject to the reporting
requirements of the federal securities laws, and are required to file periodic
reports and other information with the SEC. We will furnish our security holder
with annual reports containing audited financial statements certified by
independent public accountants following the end of each fiscal year and
quarterly reports containing unaudited financial information for the first three
quarters of each fiscal year following the end of such fiscal
quarter.
THE
REMAINDER OF THIS PAGE IS LEFT BLANK INTENTIONALLY
38
REPORT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the
Board of Directors
Flameret,
Inc.
(A
Development Stage Company)
We have
audited the accompanying balance sheet of Flameret, Inc. (A Development Stage
Company) as of August 31, 2009, and the related statements of operations,
stockholders' equity and cash flows for the period from inception on August 13,
2009 through August 31, 2009. These financial statements are the responsibility
of the Company’s management. Our responsibility is to express an opinion on
these financial statements based on our audits.
We
conduct our audits in accordance with standards of the Public Company Accounting
Oversight Board (United States). Those standards require that we plan and
perform the audits to obtain reasonable assurance about whether the financial
statements are free of material misstatement. The Company was not required to
have, nor were we engaged to perform, an audit of its internal control over
financial reporting. Our audit included consideration of internal control over
financial reporting as a basis for designing audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s internal control over financial
reporting. Accordingly, we express no such opinion. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the
financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our
opinion, the financial statements referred to above present fairly, in all
material respects, the financial position of Flameret, Inc. (A Development Stage
Company) as of August 31, 2009, and the related statements of operations,
stockholders' equity and cash flows for the period from inception on August 13,
2009 through August 31, 2009, in conformity with accounting principles generally
accepted in the United States of America.
The
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern. As discussed in Note 2 to the financial
statements, the Company has an accumulated deficit of $17,275, which raises
substantial doubt about its ability to continue as a going concern. Management’s
plans concerning these matters are also described in Note 2. The financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.
/s/ M
& K CPAS, PLLC
www.mkacpas.com
Houston,
Texas
September
18, 2009
F-1
FLAMERET,
INC.
(A
DEVELOPMENT STAGE COMPANY)
BALANCE
SHEET
August
31,
|
||||
2009
|
||||
ASSETS
|
||||
Current
assets:
|
||||
Cash
|
$
|
3,225
|
||
Total
current assets
|
3,225
|
|||
Total
assets
|
$
|
3,225
|
||
STOCKHOLDERS'
EQUITY
|
||||
Current
liabilities:
|
||||
Accounts
payable
|
-
|
|||
Total
current liabilities
|
-
|
|||
Stockholders'
equity:
|
||||
Preferred
stock, $0.001 par value, 10,000,000 shares authorized,
|
||||
no
shares issued and outstanding as of August 31, 2009
|
-
|
|||
Common
stock, $0.001 par value, 90,000,000 shares authorized,
|
||||
18,000,000
shares issued and outstanding as of August 31, 2009
|
18,000
|
|||
Additional
paid-in capital
|
2,500
|
|||
(Deficit)
accumulated during development stage
|
(17,275
|
)
|
||
Total
stockholders' equity
|
3,225
|
|||
Total
stockholders' equity
|
$
|
3,225
|
See notes
to accompanying financial statements
F-2
FLAMERET,
INC.
(A
DEVELOPMENT STAGE COMPANY)
STATEMENT
OF OPERATIONS
August
13, 2009
|
||||
(inception)
to
|
||||
August
31,
|
||||
2009
|
||||
Revenue
|
$
|
-
|
||
Operating
expenses:
|
||||
General
and administrative
|
44
|
|||
Professional
fees
|
17,231
|
|||
Total
operating expenses
|
17,275
|
|||
Net
operating loss
|
(17,275
|
)
|
||
Other
income (expense)
|
-
|
|||
Loss
before provision for income taxes
|
(17,275
|
)
|
||
Provision
for income taxes
|
-
|
|||
Net
(loss)
|
$
|
(17,275
|
)
|
|
Weighted
average number of common shares
|
||||
outstanding
- basic and fully diluted
|
18,000,000
|
|||
Net
(loss) per share - basic and fully diluted
|
$
|
(0.00
|
)
|
See notes
to accompanying financial statements
F-3
FLAMERET,
INC.
(A
DEVELOPMENT STAGE COMPANY)
STATEMENT
OF STOCKHOLDERS' EQUITY
(Deficit)
|
||||||||||||||||||||||||||||
accumulated
|
||||||||||||||||||||||||||||
Additional
|
during
|
Total
|
||||||||||||||||||||||||||
Preferred
stock
|
Common
stock
|
paid-In
|
development
|
stockholders'
|
||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
capital
|
stage
|
equity
|
||||||||||||||||||||||
Common
stock issued to founder at $0.001 per share, related party
|
-
|
$
|
-
|
18,000,000
|
$
|
18,000
|
$
|
-
|
$
|
-
|
$
|
18,000
|
||||||||||||||||
Contributed
capital, related party
|
-
|
-
|
-
|
-
|
2,500
|
-
|
2,500
|
|||||||||||||||||||||
Net
loss for the year ended August 31, 2009
|
-
|
-
|
-
|
-
|
-
|
(17,275
|
)
|
(17,275
|
)
|
|||||||||||||||||||
Balance,
August 31, 2009
|
-
|
$
|
-
|
18,000,000
|
$
|
18,000
|
$
|
2,500
|
$
|
(17,275
|
)
|
$
|
3,225
|
See notes
to accompanying financial statements
F-4
FLAMERET,
INC.
(A
DEVELOPMENT STAGE COMPANY)
STATEMENT
OF CASH FLOWS
August
13, 2009
|
||||
(inception)
to
|
||||
August
31,
|
||||
2009
|
||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||
Net
(loss)
|
$
|
(17,275
|
)
|
|
Adjustments
to reconcile net (loss) to net cash used in operating
activities:
|