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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549


FORM 10-Q


(Mark One)


[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended March 31, 2013

 

OR


[  ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934


For the transition period from _______________ to ______________.

  

GAME PLAN HOLDINGS, INC.

(Exact name of Registrant as specified in its charter)

  

Nevada

  

001-34359

  

20-0209899

(State or other jurisdiction

of incorporation)

 

(Commission File No.)

 

(IRS Employer

Identification No.)

 

80 Broad Street, PH 1502, Boston, MA 02110

 (Address of principal executive offices, including Zip Code)


Registrant's telephone number, including area code: (617) 209-9633

 

1712 Ravanusa Drive, Henderson, NV 89052

 (Former name or former address if changed since last report)


Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports) and (2) had been subject to such filing requirements for the past 90 days.  Yes [X]  No [  ]


Indicate by check mark whether the Registrant is a large accelerated filer, and 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. (Check One):

  

 

Large accelerated filer [  ]

 

Accelerated filer [  ]

 

 

 

 

 

 

 

Non-accelerated filer [  ]

(Do not check if a smaller reporting company)

 

Smaller reporting company [X]

 


Indicate by check mark whether the Registrant is a shell company (as defined in Exchange Act Rule 12b-2 of the Exchange Act).  Yes [  ]  No [X]

  

Class of Stock

No. Shares Outstanding

Date

Common Stock

32,050,000

May 20, 2013




 




 

 

 

PAGE

PART I.

FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements

4

 

 

 

 

Balance Sheets as of March 31, 2013 and December 31, 2012 (unaudited)

4

 

 

 

 

Statements of Operations for the three month periods ended March 31, 2013 and 2012 and the period from inception (March 25, 1999) through March 31, 2013 (unaudited)

5

 

 

 

 

Statements of Cash Flows for the three month periods ended March 31, 2013 and 2012 and the period from inception (March 25, 1999) through March 31, 2013 (unaudited)

6

 

 

 

 

Notes to Financial Statements (unaudited)

7

 

 

 

Item 2.

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

17

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

20

 

 

 

Item 4.

Controls and Procedures

21

 

 

 

PART II.

OTHER INFORMATION

24

 

 

 

Item 1.

Legal Proceedings

24

 

 

 

Item 1A.

Risk Factors

24

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

24

 

 

 

Item 3.

Defaults Upon Senior Securities

25

 

 

 

Item 4.

Mine Safety Disclosures - Not Applicable

25

 

 

 

Item 5.

Other Information

25

 

 

 

Item 6.

Exhibits

25











2




CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

 

Certain statements in this report contain or may contain forward-looking statements that are subject to known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  These forward-looking statements were based on various factors and were derived utilizing numerous assumptions and other factors that could cause our actual results to differ materially from those in the forward-looking statements.  These factors include, but are not limited to, our ability to implement our business plan, our ability to raise sufficient capital as needed, our ability to successfully transact business, economic, political and market conditions and fluctuations, government and industry regulation, interest rate risk, U.S. and global competition and other factors.  Most of these factors are difficult to predict accurately and are generally beyond our control.  You should consider the areas of risk described in connection with any forward-looking statements that may be made herein.  Readers are cautioned not to place undue reliance on these forward-looking statements and readers should carefully review this 10-Q report in its entirety, including all other filings made by the Company with the SEC.  Except for our ongoing obligations to disclose material information under the Federal securities laws, we undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events.  These forward-looking statements speak only as of the date of this 10-Q report, and you should not rely on these statements without also considering the risks and uncertainties associated with these statements and our business.


Unless otherwise noted, references to “Game Plan,” “GPH,” the “Company,” “GP,” “we,” “our” or “us” means Game Plan Holdings, Inc., a Nevada corporation.























3




PART I - FINANCIAL INFORMATION


Game Plan Holdings, Inc.

(A Development Stage Company)


BALANCE SHEETS

(Unaudited)


 

 

 

March 31,

 

December 31,

 

 

 

 

2013

 

2012

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

Cash

 

$

380,996

 

$

3,453

 

 

Marketable securities

 

 

8,322

 

 

1,315

 

 

Prepaids

 

 

17,980

 

 

-

 

 

 

 

 

 

 

 

 

 

 

Total current assets

 

 

407,298

 

 

4,768

 

 

 

 

 

 

 

 

 

 

Property and equipment, net

 

 

3,197

 

 

3,141

 

 

 

 

 

 

 

 

 

 

Intangible assets

 

 

 

 

 

 

 

 

Intellectual property

 

 

46,513

 

 

-

 

 

Websites, net

 

 

118,700

 

 

137,480

 

 

 

 

 

165,213

 

 

137,480

 

Other assets

 

 

 

 

 

 

 

 

Security deposit

 

 

2,300

 

 

2,300

 

 

 

 

 

 

 

 

 

 

Total assets

 

$

590,528

 

$

147,689

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$

44,958

 

$

35,907

 

 

Due to related party

 

 

-

 

 

72,267

 

 

 

 

 

 

 

 

 

 

 

Total current liabilities

 

 

44,958

 

 

108,174

 

 

 

 

 

 

 

 

 

 

Total liabilities

44,958

108,174

        

Stockholders' equity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock, authorized

 

 

 

 

 

 

 

 

100,000,000 shares, par value $0.001, 32,050,000 and

15,050,000 issued and outstanding at March 31, 2013 and

December 31, 2012, respectively.

 

 

32,050

 

 

15,050

 

 

Additional paid-in capital

 

 

2,567,698

 

 

1,929,972

 

 

Common stock payable

 

 

30,000

 

 

72,500

 

 

Accumulated other comprehensive income

 

 

8,565

 

 

1,558

 

 

Deficit accumulated during the development stage

 

 

(2,092,743)

 

 

(1,979,565)

 

 

 

 

 

 

 

 

 

 

 

Total stockholders' equity

 

 

545,570

 

 

39,515

 

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity

 

$

590,528

 

$

147,689

 

 

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



4




Game Plan Holdings, Inc.

(A Development Stage Company)


STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)


 

 

 

 

 

 

 

From inception

 

 

 

Three Months

 

Three Months

 

(March 25, 1999)

 

 

 

Ended

 

Ended

 

through

 

 

 

March 31,

 

March 31,

 

March 31,

 

 

 

2013

 

2012

 

2013

 

 

 

 

 

 

 

 

 

Revenue

 

$

-

 

$

-

 

$

6,608

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

General and administrative

 

 

29,599

 

 

31,786

 

 

627,657

 

Computer and website expenses

 

 

1,441

 

 

1,749

 

 

110,839

 

Impairment of website

 

 

-

 

 

-

 

 

17,540

 

Stock-based compensation

 

 

15,712

 

 

-

 

 

406,091

 

Professional fees

 

 

73,233

 

 

60,853

 

 

472,616

 

Officers wages

 

 

6,000

 

 

377,000

 

 

530,440

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

 

 

125,985

 

 

471,388

 

 

2 ,165,183

 

 

 

 

 

 

 

 

 

 

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

Other income

 

 

-

 

 

-

 

 

703

 

Gain on sale of marketable securities

 

 

-

 

 

-

 

 

61,718

 

Loss on impairment of marketable securities

 

 

-

 

 

-

 

 

(36,819)

 

Interest income

 

 

285

 

 

4

 

 

27,977

 

Foreign currency transaction loss

 

 

-

 

 

-

 

 

(5)

 

Interest expense

 

 

-

 

 

-

 

 

(264)

 

 

 

 

 

 

 

 

 

 

 

 

Total other income

 

 

285

 

 

4

 

 

53,310

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$

(125,700)

 

$

(471,384)

 

$

(2,105,265)

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income, net of tax:

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

-

 

 

-

 

 

1,558

 

Unrealized gain on marketable securities

 

 

7,007

 

 

1,348

 

 

7,007

 

 

 

 

 

 

 

 

 

 

 

Other comprehensive income

 

 

7,007

 

 

1,348

 

 

8,565

 

 

 

 

 

 

 

 

 

 

 

Comprehensive loss

 

$

(118,693)

 

$

(470,036)

 

$

(2,096,700)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic loss per common share

 

$

(0.01)

 

$

(0.03)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average

 

 

 

 

 

 

 

 

 

 

   number of shares outstanding - basic

 

 

24,468,889

 

 

15,050,000

 

 

 



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



5



Game Plan Holdings, Inc.

(A Development Stage Company)


STATEMENTS OF CASH FLOWS

(Unaudited)


 

 

 

 

 

From inception

 

 

 

 

 

(March 25, 1999)

 

 

 

Three Months Ended

 

through

 

 

 

March 31,

 

March 31,

 

March 31,

 

 

 

2013

 

2012

 

2013

Operating activities

 

 

 

 

 

 

 

Net loss

 

$

(125,700)

 

$

(471,384)

 

$

(2,105,265)

 

Adjustments to reconcile net loss to net cash used

 

 

 

 

 

 

 

 

 

 

in operating activities:

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

19,367

 

 

19,123

 

 

140,839

 

Gain on sale of marketable securities

 

 

-

 

 

-

 

 

(61,718)

 

Impairment of marketable securities

 

 

-

 

 

-

 

 

36,819

 

Impairment of website

 

 

-

 

 

-

 

 

17,540

 

Stock-based compensation

 

 

15,712

 

 

380,302

 

 

795,032

 

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

 

 

(Increase) decrease in prepaids

 

 

(17,980)

 

 

31,703

 

 

85,666

 

Decrease in related party receivable

 

 

-

 

 

-

 

 

2,450

 

Increase in other receivable

 

 

-

 

 

-

 

 

(5,800)

 

Increase (decrease) in accounts payable and accrued liabilities

 

 

9,051

 

 

(2,572)

 

 

80,841

Net cash used in operating activities

 

 

(99,550)

 

 

(42,828)

 

 

(1,013,596)

 

 

 

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

 

 

 

Change in other investments

 

 

-

 

 

-

 

 

(2,450)

 

Purchases of marketable securities

 

 

-

 

 

-

 

 

(197,140)

 

Sales of marketable securities

 

 

-

 

 

-

 

 

221,874

 

Purchase of intangible assets

 

 

 

 

 

-

 

 

(34,500)

 

Purchase of fixed assets

 

 

(640)

 

 

-

 

 

(17,273)

Net cash used in investing activities

 

 

(640)

 

 

-

 

 

(29,489)

 

 

 

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

 

 

 

Advances from related party

 

 

-

 

 

1,796

 

 

90,767

 

Payments on amounts due to related party

 

 

(72,267)

 

 

-

 

 

(90,767)

 

Proceeds from sale of common stock

 

 

550,000

 

 

-

 

 

1,423,673

Cash provided by financing activities

 

 

477,733

 

 

1,796

 

 

1,423,673

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash

 

 

377,543

 

 

(41,032)

 

 

380,588

 

Effect of foreign currency translation adjustment

 

 

-

 

 

-

 

 

408

Cash, beginning of period

 

 

3,453

 

 

43,521

 

 

-

Cash, end of period

 

$

380,996

 

$

2,489

 

$

380,996

 

 

 

 

 

 

 

 

 

 

 

Supplemental disclosure of cash flow information:

 

 

 

 

 

 

 

 

 

 

Interest paid

 

$

-

 

$

-

 

$

139

 

Income taxes paid

 

$

-

 

$

-

 

$

-

 

 

 

 

 

 

 

 

 

 

 

Non-cash investing and financing activities:

 

 

 

 

 

 

 

 

 

 

Shares issued for settlement of accounts payable

 

$

-

 

$

-

 

$

35,883

 

Shares issued for prepaid legal fees

 

$

-

 

$

-

 

$

7,824

 

Shares issued for prepaid consulting fees

 

$

-

 

$

-

 

$

92,322

 

Shares issued for intangible asset

 

$

46,513

 

$

-

 

$

275,013

 

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



6




Game Plan Holdings, Inc.

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS



NOTE 1 - ORGANIZATION AND BUSINESS OF COMPANY


HJS Technology, Inc. (A Development Stage Company) was incorporated on March 25, 1999 under the laws of the State of Nevada. The Company developed a business plan around a concept entitled www.close2here.com. This concept failed to get off the ground and the business plan was shut down in 2005. On May 31, 2007, HJS Technology, Inc. changed its name to Game Plan Holdings, Inc. (the “Company”). Game Plan Holdings owns and operates a social networking website, www.Hazzsports.com (“Hazzsports.com”). Hazzsports.com is an online social networking website that offers an interactive resource for sports enthusiasts. In accordance with Financial Accounting Standards Board’s Accounting Standards Codification (“ASC”) No. 915 the Company is considered to be in the development stage.


On December 31, 2007, a Reorganization Agreement was entered into by and between Game Plan Holdings Canada, a corporation formed under the laws of the country of Canada (“Game Plan Canada”), and Game Plan Holdings, Inc. (“Game Plan USA). The agreement reorganized the capital structure of Game Plan Canada and Game Plan USA by exchanging all of Game Plan Canada Shares totaling 11,070,000 shares on a one-for-one basis with Game Plan USA shares held by existing shareholders of the Company. Consequently, there were no new shares issued related to the 11,070,000 shares exchanged by Game Plan USA to Game Plan Canada rather, certain shareholders of Game Plan USA exchanged their previously issued shares to Game Plan Canada. Under the Reorganization Agreement, Game Plan USA also agreed to the cancelation of 8,032,000 and 418,000 shares (total of 8,450,000 shares) of its common stock, as well as, transfer 2,148,000 shares of common stock of Game Plan USA held by certain shareholders to the Company’s President, Charles Hazzard. Upon completion of the Game Plan USA Reorganization and the exchange of the shares, all of the shares of Game Plan Canada were canceled and all the assets held by Game Plan Canada were assigned to Game Plan USA. Prior to the Reorganization Agreement, Game Plan USA developed the social networking website. www.Hazzsports.com which was principally funded by Game Plan Canada through capital it had raised. Since both Game Plan USA and Game Plan Canada were co-dependent upon each other both financially and intellectually prior to the Reorganization Agreement, the Company has accounted for this transaction as a recapitalization of both companies under a pooling of interest whereby the history of both companies have been integrated.


On September 13, 2011, the Company entered into an asset purchase agreement (the “Asset Purchase Agreement”) with Vantage Assets Holdings, Inc. which closed on October 21, 2011. Pursuant to the Asset Purchase Agreement, the Company acquired the website www.checkinsave.com (“CheckinSave”), a social networking website where users check-in to locations via a mobile application or using the website, and accrue points for their check-ins as well as check-ins of their connections through the site. The points can be redeemed for discount coupons and deals at various registered venues. The site launched on September 15, 2011.


On February 7, 2013, the Company entered into an intellectual property purchase agreement (the “IP Agreement”) with Sportingblood for the acquisition of all right, title and interest in the Sporting Blood trademark and certain product formulations (the “Intellectual Property”). In exchange, the Company issued 11,000,000 shares of common stock to Sportingblood.


Prior to execution of the IP Agreement, Charles Hazzard and Christina Mabanta-Hazzard were the majority shareholders of the Company, where they collectively owned 10,000,000 shares of common stock of the Company. Upon issuance of 11,000,000 shares of common stock in exchange for the intellectual property of Sporting Blood, there was a total of 26,050,000 shares of common stock outstanding. Additionally, in a separate transaction, Andrew Bachman, owner of Sportingblood, purchased 5,000,000 shares of common stock from Charles Hazzard and Christina Mabanta-Hazzard. These transactions resulted in a change in control of the Company, providing a controlling interest to the new Chief Executive Officer and President of the Company, Andrew Bachman.




7




Proceeding forward, the Company intends to minimize or eliminate its efforts in the social media website spaces and focus on its entry into the nutritional supplements industry with the Sportingblood line of nutritional supplements, which are specially formulated to be NSF Certified to ensure they do not include banned substances for athletes.  The Company presently is focusing upon a three pronged approach to implement its proposed business plan:  (i) development of extensive nutritional and vitamin supplement line of products; (ii) number of alternative distribution strategies focusing upon empowering individual fitness industry professionals, such as personal trainers; (iii) construction of proprietary software systems providing the Company with an extensive social networking and internet based marketing strategy.



NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING PRACTICES


Cash and Cash Equivalents


For the purpose of the statement of cash flows, cash equivalents include all highly liquid investments with original maturities of three months or less.


Earnings (Loss) per Share


The basic earnings (loss) per common share is calculated by dividing the Company’s net income available to common shareholders by the weighted average number of common shares outstanding during the year. The diluted earnings (loss) per share are calculated by dividing the Company’s net income (loss) available to common shareholders by the diluted weighted average number of shares adjusted as of the first of the year for any potentially dilutive debt or equity. Common stock equivalent shares are excluded from the computation if their effect is antidilutive.


Use of Estimates


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


Revenue and Cost Recognition


The Company recognizes revenue only when the price is fixed or determinable, persuasive evidence of an arrangement exists, the service is performed, and collectability of the related fee is reasonably assured.


Fair Value Accounting for Financial Instruments


As required by the Fair Value Measurements and Disclosures Topic of the FASB ASC (“ASC 820-10”), fair value is measured based on a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows: (Level 1) observable inputs such as quoted prices in active markets; (Level 2) inputs, other than the quoted prices in active markets, that are observable either directly or indirectly; and (Level 3) unobservable inputs in which there is little or no market data, which require the reporting entity to develop its own assumptions.


The three levels of the fair value hierarchy are described below:


Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;


Level 2 Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;




8




Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).


Pursuant to ASC 825, the fair value of cash and marketable securities is determined based on “Level 1” inputs, which consist of quoted prices in active markets for identical assets. The Company believes that the recorded values of cash, marketable securities, receivables, accounts payable and accrued liabilities, and other payables approximate their current fair values because of their nature and respective relatively short maturity dates or durations.


Assets measured at fair value on a recurring basis were presented on the Company’s balance sheet as of March 31, 2013 and December 31, 2012 as follows:


 

 

Fair Value Measurements as of March 31, 2013 Using:

 

 

Total Carrying

Value as of

 

 

Quoted Market

Prices in Active

Markets

 

 

Significant Other

Observable Inputs

 

 

Significant

Unobservable Inputs

 

 

12/31/12

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Equity securities

$

8,322

 

$

8,322

 

$

0

 

$

0

Total

$

8,322

 

$

8,322

 

$

0

 

$

0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fair Value Measurements as of December 31, 2012 Using:

 

 

Total Carrying

Value as of

 

 

Quoted Market

Prices in Active

Markets

 

 

Significant Other

Observable Inputs

 

 

Significant

Unobservable Inputs

 

 

12/31/11

 

 

(Level 1)

 

 

(Level 2)

 

 

(Level 3)

Assets:

 

 

 

 

 

 

 

 

 

 

 

Equity securities

$

1,315

 

$

1,315

 

$

0

 

$

0

Total

$

1,315

 

$

1,315

 

$

0

 

$

0


Property and Equipment


Property and equipment are stated at cost less accumulated depreciation. Depreciation is provided for in amounts sufficient to relate the cost of depreciable assets to operations over their estimated service lives, principally on a straight-line basis. Estimated service lives of property and equipment are as follows:


 

 

Estimated

Description

 

Life

Computers

 

5 years

Software

 

3 years

Office Furniture

 

7 years


Concentrations of Credit Risk


Credit risk represents the accounting loss that would be recognized at the reporting date if counter parties failed completely to perform as contracted. Concentrations of credit risk (whether on or off balance sheet) that arise from financial instruments exist for groups of customers or counter parties when they have similar economic characteristics that would cause their ability to meet contractual obligations to be similarly affected by changes in economic or other conditions described below.




9




Financial instruments that potentially subject the Company to significant concentration of credit risk consist primarily of cash, cash equivalents, and marketable debt securities. The primary focus of the Company’s investment strategy is to preserve capital and meet liquidity requirements. The Company’s investment policy addresses the level of credit exposure by limiting the concentration in any one corporate issuer or sector. To manage the risk exposure, the Company maintains its portfolio of cash and cash equivalents and short-term and long-term investments.


Impairment of Long-lived Assets


We test intangibles and long-lived asset groups for recoverability when changes in circumstances indicate the carrying value may not be recoverable, for example, when there are material adverse changes in projected revenues or expenses, significant underperformance relative to historical or projected operating results, and significant negative industry or economic trends. We also perform a test for recoverability when management has committed to a plan to sell or otherwise dispose of an asset group and the plan is expected to be completed within a year. We evaluate recoverability of an asset group by comparing its carrying value to the future net undiscounted cash flows that we expect will be generated by the asset group. If the comparison indicates that the carrying value of an asset group is not recoverable, we recognize an impairment loss for the excess of carrying value over the estimated fair value. When an impairment loss is recognized for assets to be held and used, we depreciate the adjusted carrying amount of those assets over their remaining useful life.


Reclassifications


Professional fees of $7,752 were reclassified from general and administrative to professional fees in the statement of operations to conform to the current presentation. The reclassification had no effect on previously reported total operating expenses, results of operations, or retained earnings.


Stock-based compensation


The Company records stock based compensation in accordance with the guidance in ASC Topic 718 which requires the Company to recognize expenses related to the fair value of its stock option awards. This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.


ASC 505, "Compensation-Stock Compensation", establishes standards for the accounting for transactions in which an entity exchanges its equity instruments to non-employees for goods or services. Under this transition method, stock compensation expense includes compensation expense for all stock-based compensation awards granted on or after January 1, 2006, based on the grant-date fair value estimated in accordance with the provisions of ASC 505.


Other Comprehensive Income (Loss)


Marketable securities held by Canaccord and MorganStanley SmithBarney (the holding companies) are held for an indefinite period of time and thus are classified as available-for-sale securities.  Realized investment gains and losses are included in the statement of operations, as are provisions for other than temporary declines in the market value of available for-sale-securities.  Unrealized gains and unrealized losses deemed to be temporary are excluded from earnings (losses), net of applicable taxes, as a component of other comprehensive income (loss).  Factors considered in judging whether an impairment is other than temporary include the financial condition, business prospects and creditworthiness of the issuer, the length of time that fair value has been less than cost, the relative amount of decline, and the Company’s ability and intent to hold the investment until the fair value recovers. The Company has other comprehensive income of $7,007 and $1,348 for the three months ended March 31, 2013 and 2012.


Recent Accounting Pronouncements


The Company has evaluated recent accounting pronouncements through May 20, 2013 and believes that none of them will have a material effect on the Company’s financial position, results of operations or cash.




10




NOTE 3 - GOING CONCERN


The accompanying financial statements have been prepared assuming that the company will continue as a going concern. As discussed in the notes to the financial statements the Company has no established source of revenue and has experienced recurring net operating losses. This raises substantial doubt about the Company’s ability to continue as a going concern. As shown on the accompanying financial statements, the Company has incurred a net loss of $2,092,743 for the period from inception (March 25, 1999) to March 31, 2013. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.


The Company’s activities to date have been supported by equity financing. Management continues to seek funding from its shareholders and other qualified investors to pursue its business plan. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.



NOTE 4 - MARKETABLE SECURITIES AND INVESTMENTS


Marketable securities held by Canaccord and MorganStanley SmithBarney (the holding companies) are held for an indefinite period of time and thus are classified as available-for-sale securities. Realized investment gains and losses are included in the statement of operations, as are provisions for other than temporary declines in the market value of available-for-sale securities. Unrealized gains and unrealized losses deemed to be temporary are excluded from earnings (losses), net of applicable taxes, as a component of other comprehensive income. Factors considered in judging whether an impairment is other than temporary include the financial condition, business prospects and creditworthiness of the issuer, the length of time that fair value has been less than cost, the relative amount of decline, and the Company’s ability and intent to hold the investment until the fair value recovers.


During the year ended December 31, 2012, the Company recorded an impairment charge of $27,895 regarding its investment in marketable securities because, based on management’s evaluation of the circumstances, management believed that the decline in fair value below the cost of certain of the Company’s marketable securities was not temporary.


Included in “Loss on impairment of marketable securities” in the statements of operations are $0 and $0 impairments for the three months ended March 31, 2013 and 2012. The Company recorded $7,007 and $1,348 of other comprehensive income (loss) associated with unrealized gains (losses), net of tax effect, on these investments during the three months ended March 31, 2013 and 2012, respectively.


The following is a summary of available-for-sale marketable securities as of March 31, 2013 and December 31, 2012:


 

March 31, 2013

 

 

Cost

 

 

Unrealized

Gain

 

 

Unrealized

(Losses)

 

 

Market or

Fair Value

Equity securities

$

1,315

 

$

7,077

 

$

--

 

$

8,322

Total

$

1,315

 

$

7,007

 

$

 

 

$

8,322

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2012

 

 

Cost

 

 

Realized

Gain

 

 

Realized

(Losses)

 

 

Market or

Fair Value

Equity securities

$

29,210

 

$

--

 

$

(27,895)

 

$

1,315

Total

$

29,210

 

$

--

 

$

(27,895)

 

$

1,315




11




The following is a summary of unrealized gains and losses as presented in Other Comprehensive Income as of March 31, 2013 and 2012:


 

March 31, 2013

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

Other

 

 

Unrealized

 

 

(Losses)

 

 

(Losses)

 

 

Comprehensive

Description

 

Gains

 

 

Short Term

 

 

Long Term

 

 

Income (Loss)

Equity Securities

$

7,007

 

$

--

 

$

--

 

$

7.007

Total

$

7,007

 

$

--

 

$

--

 

$

7,007

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2012

 

 

 

 

 

Unrealized

 

 

Unrealized

 

 

Other

 

 

Unrealized

 

 

(Losses)

 

 

(Losses)

 

 

Comprehensive

Description

 

Gains

 

 

Short Term

 

 

Long Term

 

 

Income (Loss)

Equity Securities

$

1,920

 

$

--

 

$

 (572)

 

$

1,348

Total

$

1,920

 

$

--

 

$

(572)

 

$

1,348


The Company classifies securities that have a readily determinable fair value and are not bought and not held principally for the purpose of selling them in the near term as securities available-for-sale, pursuant to FASB ASC 320-10, Investments-Debt & Equity Securities. Under FASB ASC 320-10, unrealized holding gains and losses for available-for-sale securities are excluded from earnings and reported in other comprehensive income until realized.



NOTE 5 - PROPERTY AND EQUIPMENT


The Company’s fixed assets consisted of the following at:

 

 

March 31,

2013

December 31,

2012

 

 

 

Computers

$ 13,355

$ 12,713

Furniture & fixtures

3,472

3,472

Software

449

449

Accumulated depreciation

(14,079)

(13,493)

 

 

 

Property and equipment, net

$ 3,197

$ 3,141


Depreciation expense was $586 and $1,201 for the three months ending March 31, 2013 and 2012, respectively.



NOTE 6 - WEBSITE


On October 21, 2011, the Company purchased and launched the website www.checkinsave.com.  The Company purchased the website for 500,000 shares of restricted stock valued at $210,000 ($0.42 per share) and issued 50,000 shares of common stock valued at $18,500 ($0.37 per share) as a referral fee.  The website is amortized over an estimated useful life of 3 years.





12




The following is a summary of website at:

 

 

 

March 31, 2013

 

December 31, 2012

  Website (CheckinSave.com)

 

$ 228,500

 

$ 228,500

  Accumulated amortization

 

(109,800)

 

(91,020)

  Website, net

 

$ 118,700

 

$ 137,480



Amortization expense was $18,781 and $18,372 for the three months ending March 31, 2013 and 2012, respectively.



NOTE 7 - INTELLECTUAL PROPERTY


On February 7, 2013, the Company entered into an intellectual property purchase agreement (the “IP Agreement”) with Sportingblood for the acquisition of all right, title and interest in the Sporting Blood trademark and certain product formulations (the “Intellectual Property”).  In exchange, the Company issued 11,000,000 shares of common stock to Sportingblood, which resulted in a change of control.  Accordingly, the intellectual property received has been recorded at historical cost as determined under U.S. GAAP on February 7, 2013 in the amount of $46,513.



NOTE 8 - RELATED PARTY TRANSACTIONS


During the three months ended March 31, 2013, the Company incurred stock-based compensation to its Chief Financial Officer, Christina Mabanta-Hazzard, with value of $7,500. As of March 31, 2013, the Company has a stock payable balance in the amount of $30,000 for compensation to the Chief Financial Officer.


During the three months ended March 31, 2013, the Company incurred salaries and payable to its former Chief Executive Officer, Charles Hazzard, for the period prior to his resignation on March 1, 2013 with the value of $6,000.


During the three months ended March 31, 2013, the Company repaid $72,267 due to related party. The Company has $0 and $72,267 of due to related party as of March 31, 2013 and December 31, 2012, respectively.


The officers and directors of the Company are involved in other business activities and may, in the future, become involved in other business opportunities that become available.  They may face a conflict in selecting between the Company and other business interests.  The Company has not formulated a policy for the resolution of such conflicts.



NOTE 9 - STOCKHOLDERS’ EQUITY


The stockholders’ equity of the Company comprises the following classes of capital stock as of March 31, 2013 and December 31, 2012:


Common stock, par value of $0.001 per share; 100,000,000 shares authorized; 32,050,000 and 15,050,000 shares issued and outstanding at March 31, 2013 and December 31, 2012, respectively.


On February 7, 2013, the Company entered into an intellectual property purchase agreement (the “IP Agreement”) with Sportingblood for the acquisition of all right, title and interest in the Sporting Blood trademark and certain product formulations (the “Intellectual Property”) in exchange for issuing 11,000,000 shares of common stock to Sportingblood.




13




Prior to execution of the IP Agreement, Charles Hazzard and Christina Mabanta-Hazzard were the majority shareholders of the Company, which they collectively owned 10,000,000 shares of common stock of the Company. Upon issuance of 11,000,000 shares of common stock in exchange for the intellectual property of Sporting Blood, there will be a total of 26,050,000 shares of common stock outstanding. Additionally, in a separate transaction, Andrew Bachman, owner of Sportingblood, purchased 5,000,000 shares of common stock from Charles Hazzard and Christina Mabanta-Hazzard. These transactions resulted in a change in control of the Company, providing a controlling interest to the new Chief Executive Officer and President of the Company, Andrew Bachman. Accordingly, the asset received has been recorded at historical cost as determined under U.S. GAAP on February 7, 2013 at $46,513.


On February 13, 2013, the Company issued 100,000 units for a cash payment of $10,000. Each Unit consists of one share of the Company’s common stock and one share purchase warrant. Each warrant entitles the holder to purchase one additional share of the Company’s common stock at a price of $0.25 per share for a period of three years from the date of issuance.


On February 14, 2013, the Company issued 3,500,000 units for a cash payment of $350,000, in which $50,000 was included in the stock payable as of December 31, 2012. Each Unit consists of one share of the Company’s common stock and one share purchase warrant. Each warrant entitles the holder to purchase one additional share of the Company’s common stock at a price of $0.25 per share for a period of three years from the date of issuance.


On February 21, 2013, the Company issued 100,000 units for a cash payment of $10,000. Each Unit consists of one share of the Company’s common stock and one share purchase warrant. Each warrant entitles the holder to purchase one additional share of the Company’s common stock at a price of $0.25 per share for a period of three years from the date of issuance.


On February 25, 2013, the Company issued 2,300,000 units for a cash payment of $230,000. Each Unit consists of one share of the Company’s common stock and one share purchase warrant. Each warrant entitles the holder to purchase one additional share of the Company’s common stock at a price of $0.25 per share for a period of three years from the date of issuance.


During the three months ended March 31, 2013, the Company recorded a stock payable in the amount of $7,500 for compensation to the Company’s Chief Financial Officer; and during the year ended December 31, 2012, the Company recorded a stock payable in the amount of $22,500 to the Chief Financial Officer. As of March 31, 2013, $30,000 was recorded as stock payable to the Chief Financial Officer.



NOTE 10 - STOCK OPTIONS AND WARRANTS


Stock Options


On December 22, 2008, the Company granted 600,000 fully vested stock options to certain officers of the Company at $0.50 per share for terms of two years. The two year terms commence on the start date when the common stock of the Company begins trading on the Over the Counter Bulletin Board. The total fair value of these options at the date of grant was estimated to be $305,940 and was determined using the Black-Scholes option pricing model with an expected life of 4 years, a risk free interest rate of 1.40%, a dividend yield of 0% and expected volatility of 82.29% and was recorded as a stock based compensation expense in 2008. As of March 31, 2013, all options have been expired.


On September 13, 2011, the Company granted a total of 200,000 stock options to consultants of the Company at $0.50 per option for a term of 2 years. Upon each anniversary of the agreement, a total of 100,000 options will become vested and available for purchase by the Consultants. The total fair value of these options at the date of grant was estimated at $12,820 and determined using the Black-Scholes option pricing model with the following assumptions; a term of 2 years, a risk free interest rate of 0.25%, a dividend yield of 0%, and an expected volatility of 66.59%. The estimated incremental fair value of these options of $1,870 was recorded as a stock based compensation expense in fiscal 2011.




14




On February 24, 2012, the Company granted a total of 4,000,000 stock options as part of an executive compensation agreement with the Company’s new president at $0.30 per option for a term of one year. The options were not issued as part of the Company’s 2008 Stock Option Plan. The one year term commenced on the date the option agreement was executed. The total fair value of these options at the grant date was estimated to be $368,000 and was determined using the Black-Scholes option pricing model with an expected life of one year, a risk free interest rate of 0.33%, a dividend yield of 0%, and expected volatility of 67.05% and was recorded as stock based compensation for the period ended March 31, 2012. As of March 31, 2013, all options have been expired.


On February 27, 2013, the Board of Directors of the Company ratified, approved, and adopted a Stock Option Plan for the Company allowing for the grant of up to 2,600,000 options to acquire common shares with terms of up to 5 years for an exercise price of $0.25 per share. Options must be exercised within 3 years from the last vesting date of the Option. In the event the Company commences an Initial Public Offering or the sale of substantially all of its assets or the sale of at least 75% of the common stock in a single transaction, then 100% of the remaining unexercised Options will immediately vest and become exercisable by the optionee. In the event an optionee ceases to be employed by or to provide services to the Company for reasons other than cause, any Stock Option that is vested and held by such optionee may be exercisable within up to thirty days after the effective date that his position ceases. No Stock Option granted under the Stock Option Plan is transferable. Any Stock Option held by an optionee at the time of his death may be exercised by his estate within one year of his death or such longer period as the Board of Directors may determine.


The Company’s stock option activity for the three months ended March 31, 2013 is summarized as follows:

 

 

Number of

Options

Weighted average

exercise

Price per share

Weighted average

remaining

contractual life (in years)

Balance, December 31, 2012

4,800,000

$ 0.33

1.17

Granted

-

-

-

Exercised

-

-

-

Expired / cancelled

4,600,000

$0.33

-

Balance, March 31, 2013

200,000

$ 0.50

1.5


Warrants


On September 22, 2011, the Company issued 300,000 warrants for services valued at $53,160.  Each warrant is convertible into one share of common stock at an exercise price of $0.45.  All warrants are fully vested and are exercisable at any time up to and including January 1, 2015. The fair value of these warrants was estimated at the grant date using Black-Scholes Option Pricing Model with current value of the stock at $0.37; dividend yield of 0%; risk-free interest rate of 0.34% (3 year Treasury Note rate at the issue date); volatility rate of 78.94%; and expiration date of 3.25 years. As of March 31, 2013, no warrants have been exercised.  


During the three months ended March 31, 2013, the Company granted 6,000,000 warrants in conjunction with the sales of the equity units.  Each warrant entitles the holder to purchase one share of the Company’s common stock at a price of $0.25 per share for a period of three years from the date of issuance. As of March 31, 2013, no warrants have been exercised.


 

Number of

Warrants

Weighted average

exercise

Price per share

Weighted average

remaining

contractual life (in years)

Balance, December 31, 2012

300,000

$ 0.45

1.25

Granted

6,000,000

0.25

3.00

Exercised

-

-

-

Expired / cancelled

-

-

-

Balance, March 31, 2013

6,300,000

$ 0.26

2.92




15




NOTE 11 - OPERATING LEASES


The Company has a lease for its office rent. The payment is $2,000 per month through March 31, 2013. Rent expense for the three months ended March 31, 2013 and 2012 was $6,000 and $6,000, respectively.


A new lease will begin on June 1, 2013.  This lease is for three (3) years ending May 30, 2016. The payment is $1,813 per month for the new lease terms.  Upon commencement, the aggregate minimum annual lease payments under the new operating leases, including amounts characterized as deemed landlord financing payments are as follows:

 

YEARS

MONTHLY BASIC RENT

ANNUAL BASIC RENT

2013

$ 1,813

$ 10,875

2014

$ 1,813

$ 21,750

2015

$ 1,813

$ 21,750

2016

$ 1,813

$ 10,875



NOTE 12 - SUBSEQUENT EVENT


On April 4, 2013, the Company’s Chief Financial Officer, Christina Hazzard, resigned as Chief Financial Officer. Andrew Bachman was elected to serve as the Company’s Chief Financial Officer for the Company.



























16




Item 2.  Management's Discussion And Analysis Of Financial Condition And Results Of Operations.

   

The following discussion and analysis should be read in conjunction with our financial statements and related notes. Some of the information contained in this Management’s Discussion and Analysis of Financial Condition and Results of Operations, and elsewhere in this report, include forward-looking statements based on our current management’s expectations. There can be no assurance that actual results, outcomes or business conditions will not differ materially from those projected or suggested in such forward-looking statements as a result of various factors, including, among others, our limited operating history, unpredictability of future program dispositions and operating results, competitive pressures and the other potential risks and uncertainties discussed in the “Risk Factors” as discussed in the “Risk Factor” section in our Annual Report on Form 10-K filed with the SEC for the year ended December 31, 2012.


Organizational History


On March 25, 1999, Game Plan Holdings, Inc. (the “Company,” “we,” “our” or “us”) was incorporated in the state of Nevada. On December 2, 2002, we issued 200,000 shares of common stock to Lawrence Horwitz and Eric Schmidt, the two “Initial Founders” of the Company.  Each of the two Initial Founders received 100,000 shares each in consideration of their initial capital.   We developed a business plan around a concept entitled www.close2here.com.  This concept failed to get off the ground and the business plan was shut down in 2005. This offering was exempt from registration under Rule 504 of the Securities Act of 1933 as it involved the sale of founder’s shares, with a value of substantially less than $1 million.


On December 19, 2007, we increased our number of authorized common stock to 100,000,000 shares of common stock, $.001 par value.  We also authorized and implemented a one hundred and ten for one forward split of its common stock.


On December 31, 2007, together with our shareholders, we entered into a Reorganization Agreement with Game Plan Holdings, a Canadian corporation (“Game Plan Canada”) and its shareholders (the “Game Plan Canada Shareholders”).  Pursuant to the Reorganization Agreement, the final distribution of our common stock was as follows: (a) 8,000,000 shares of common stock to Christina Mabanta-Hazzard; (b) 2,148,000 shares of common stock to Charles Hazzard; (c) 332,000 shares in the names of the various shareholders; and (d) 3,070,000 shares in the names of the Game Plan Canada Shareholders.


During 2008 we raised $387,500 from four accredited investors, all domiciled in the United States. This offering was exempt from registration under Rule 506 of the Securities Act of 1933 as it was exclusively to accredited investors.  In addition, Game Plan Canada raised $121,462 in 2007 exclusively from investors domiciled in Canada. This financial raise was exempt from the registration under Regulation S of the Securities Act of 1933, as it involved an issuer formed under the laws of Canada, an issuer operating exclusively in the country of Canada and making offers and sales exclusively to individuals residing in Canada. This offering would also comply with Rule 504 of the Securities Act of 1933 as it was for less than $1 million and involved less than 35 non-accredited investors.





17




On September 13, 2011, we entered into an asset purchase agreement (the “Asset Purchase Agreement”) with Vantage Assets Holdings, Inc. which closed on October 21, 2011. Pursuant to the Asset Purchase Agreement, we acquired the website www.checkinsave.com (“CheckinSave”), a social networking website whereby users check in to locations via a mobile application or using the website and accrue points for their check-ins as well as check-ins of their connections through the site that can be redeemed for coupons for discounts and deals at various registered venues. In connection with the acquisition of CheckinSave, we entered into consulting agreements with CheckinSave founders Jordan Brill and Matthew Housser to assist with the continued development, launch and marketing of the CheckinSave website and concept. The site launched on September 15, 2011. We did not issue the stock in connection with the Asset Purchase Agreement until October 21, 2011, which is when the acquisition closed.


On April 1, 2012, the Company’s president, Mr. Hazzard, formally resigned as President.  Prior to his resignation, the Company entered into an executive agreement with Mr. Bachman, whereby Mr. Bachman assumed the role as President for the Company. Mr. Hazzard continued to act as the CEO for the Company until his resignation on March 1, 2013. Mr. Hazzard was subsequently appointed as Executive Vice President of the Company. Mr. Bachman accepted appointment as Chief Executive Officer and Chairman of the Board of Directors of the Company on March 1, 2013. Additionally, on March 1, 2013, Christina Hazzard and Ronald Smith resigned from the Board of Directors of the Company, and James Dingman accepted appointment to the Board of Directors.


On April 9, 2013, the Company’s Chief Financial Officer, Ms. Hazzard, resigned as Chief Financial Officer.  Mr. Bachman was elected to serve as the Company’s Chief Financial Officer for the Company.


On February 7, 2013, the Company entered into an intellectual property purchase agreement (the “IP Agreement”) with Sportingblood Nutrition, LLC, a Delaware limited liability company (“Sportingblood”) for the acquisition of all rights, title and interests in the Sporting Blood trademark and certain product formulations (the “Intellectual Property”). Pursuant to the IP Agreement, the Company issued 11,000,000 shares of common stock to Sportingblood.


Sporting Blood is a vitamin and nutritional supplements company. Sporting Blood’s mission is to provide safe, reliable products that have been tested for integrity and quality. Sporting Blood has partnered with NSF International to undergo their stringent NSF Certified for Sport Certification Program. This certification is designed to minimize the risk that a dietary supplement contains banned substances or contaminants. The Company believes this industry is growing and that it is better suited to the strengths of company management. The Company intends to focus exclusively on the Sporting Blood supplement business proceeding forward and to minimize or eliminate its social networking business going forward. The Company plans to utilize a subscription-based replenishment model where customers sign up and receive an ongoing subscription for the products for which they register with automatic renewals being charged monthly to their credit card until cancellation. The Company will use social media as a primary means of marketing the supplements.


Operational History


We own and operate three internet web sites, Hazzsports.com, Totalscout.com and CheckinSave.com. Our website servers and software development activities are conducted by third party vendors off-site.  

 

Hazzsports.com is an online social networking website offering an interactive resource for sports enthusiasts.  This online community provides a site for athletes, sports fans, coaches and friends to network socially and professionally with each other.   

 



18




In addition, we own and operate Totalscout.com, which provides college baseball coaches an easier and more efficient way to create and request scouting reports on opposing teams.  We have developed an online standardized reporting tool that has proven to significantly reduce the time and effort spent on scouting reports. Presently most scouting reports are generated manually, with little standardization or electronic assistance.  The tool accessible at Totalscout.com has preloaded every college baseball player and every possible scouting attribute into an online database. This database then generates an online standard report, providing a readily recognizable and accessible scouting report.


Our most recent addition, CheckinSave.com, is a social networking website whereby users check in at locations such as restaurants, bars or theaters via our website and accrue points for their check-ins. In addition, when “friends” the users are connected to the website check-in to locations, the user accrues points. These points are then redeemable for coupons and discounts at various registered venues. The site is currently available to users in Vancouver, British Columbia and Las Vegas, Nevada. We plan to expand to several other metropolitan cities in North America.


Proceeding forward, the Company intends to minimize or eliminate its effort regarding the websites and focus on its entry into the nutritional supplements industry with the Sportingblood line of nutritional supplements, which are specially formulated to be NSF Certified to ensure they do not include banned substances for athletes.


The Company is focusing its efforts on eight high-quality nutritional supplement products that have been developed for health enthusiasts and athletes. These include Whey, Pump, Recovery, Focus Food, Life Rx, T-Jack Rx, Shred Rx and Sizzle Rx. The Company has sought out the expertise of some of the industry’s most renowned nutritionists and trainers to help develop the products. The Company’s manufacturing partners carry all applicable manufacturing licenses and undergo rigorous control procedures to uphold the best manufacturing practices. The manufacturing facilities are certified to be free of banned substances and have a reduced risk of cross-contamination.


The Company has also partnered with NSF International, a global public health organization specializing in standards development, product certification, testing and auditing, to undergo their nutritional supplement certification, NSF for Sport.  This certification ensures that the Company’s products are free of adulteration, contaminants and banned substances. Leading sporting organizations, including Major League Baseball, National Football League, Professional Golfers’ Association, Canadian Centre for Ethics in Sport and World Anti-Doping Agency all recognize this certification.


Plan of Operations


In the next twelve months, we intend to hire several employees to assist in our development, marketing and distribution of the Sportingblood supplements. We expect that we will be purchasing equipment to assist in the production and distribution of our products. We may also enter into agreements with third party vendors to assist with the production and distribution of our products.  We intend to minimize and possibly eliminate our efforts with our three websites during 2013.

 

Off Balance Sheet Arrangements

 

As of March 31, 2013, there were no off balance sheet arrangements.

 




19




Results of Operations for the Quarters Ended March 31, 2013 and 2012


Our revenues from March 25, 1999 (year of inception) to March 31, 2013 were minimal.  We do not anticipate earning revenues until such time as we enter into the final development and sales/distribution stages of our nutritional supplement products.


We incurred operating expenses in the amount of $125,985 for the quarter ended March 31, 2013 as compared to $471,388 for the quarter ended March 31, 2012 (a decrease of $345,403).  The decrease can be largely attributed to the decrease in officers wages, and a decrease in general and administrative expenses.


These operating expenses for the three months ended March 31, 2013 consisted of general and administrative expenses in the amount of $29,599 (2012: $31,786), computer and website expenses in the amount of $1,441 (2012: $1,749); stock-based compensation in the amount of $15,712 (2012: $0); professional fees in the amount of $73,233 (2012: $60,853), and officer wages in the amount of $6,000 (2012: $377,000).  


Our net loss for the quarter ended March 31, 2013 was $125,700 as compared to our net loss of $471,384 for the quarter ended March 31, 2012.  During the quarters ended March 31, 2013 and 2012 we generated no revenue.


The weighted average number of shares outstanding was 24,468,889 and 15,050,000 for the three months ended March 31, 2013 and 2012 respectively.


Liquidity and Capital Resources


As of March 31, 2013, we had cash of $380,996, as compared to $3,453 as of December 31, 2012.  As of March 31, 2013, we had working capital of $362,340, as compared to working deficit of $103,406 as of December 31, 2012.


We have not attained profitable operations and are dependent upon obtaining financing to pursue activities beyond those planned for the current fiscal year.  For these reasons, our auditors stated in their report for the year ended December 31, 2012 that they have substantial doubt we will be able to continue as a going concern. We do believe that our present operating capital position is sufficient to finance our operations for at least the next 12 months. We base this conclusion about our historical cash needs and while we anticipate that our cash needs may increase slightly in the next 12 months, we believe that our present operating capital will be sufficient to finance our operations. In the event we are unable to generate revenues sufficient to finance our operations then we will eventually be required to seek additional outside capital. In the event we are unable to secure such financing, our company may cease operations and we eventually may be forced to disband our business operations.


We anticipate that as we shift our business plan and operations to the development, marketing, distribution and sale of nutritional products, our expenditures will increase per calendar quarter.


Item 3.  Quantitative And Qualitative Disclosures About Market Risk.


Not applicable.





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Item 4.  Internal Control Over Financial Reporting.

 

Disclosure Controls and Procedures

 

Our management, with the participation of the Company’s Principal Executive Officer and Principal Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can only provide reasonable assurance of achieving the desired control objectives and management is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on such evaluation, the Company’s Principal Executive Officer and Principal Financial Officer have concluded that as of March 31, 2013, the Company’s disclosure controls and procedures were not effective, at the reasonable assurance level, in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act and in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the Company’s management, including the Principal Executive Officer and Principal Financial Officer, as appropriate to allow timely discussions regarding required disclosure; due to the material weaknesses described below.

 

Our financial statements were prepared in accordance with generally accepted accounting principles (“GAAP”). Accordingly, we believe that the financial statements included in this report fairly present, in all material respects, our financial condition, results of operations, changes in stockholders’ equity and cash flows for the periods presented.

  

 Management Report on Internal Control Over Financial Reporting

 

The Company’s management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934. Our internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Company’s internal control over financial reporting includes those policies and procedures that:

 

1.  Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;


2.  Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and


3.  Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on our financial statements.

 

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and reporting. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 



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A material weakness is a control deficiency (within the meaning of Public Company Accounting Oversight Board (“PCAOB”) Auditing Standard No. 5) or combination of control deficiencies, that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis.

 

Under the supervision and with the participation of our management, including our Principal Executive Officer and Principal Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting as of the period covered by this report based on the framework in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on the results of management’s assessment and evaluation, our Principal Executive Officer and Principal Accounting Officer concluded that our internal control over financial reporting was not effective.

 

Remediation of Material Weaknesses Found in our Quarterly Report on Form 10-Q for the Quarter Ended March 31, 2013 and Material Weaknesses found in our Annual Report on Form 10-K for the Year Ended December 31, 2012

 

To remediate the material weaknesses identified in our Annual Report filed on Form 10-K for the year ended December 31, 2012 and our Quarterly Report for the quarter ended March 31, 2013, we have taken the following additional steps:

 

1.  In connection with the ineffective assessment of the Company’s internal control over financial reporting, management implemented additional controls to improve the effectiveness of the Company’s disclosure controls and procedures.


2.  In connection with the reported inadequate review and approval of certain aspects of the accounting process, management has reiterated the Company’s current review and approval processes, to insure that all accounting reconciliations, journal entries and complex transactions are reviewed and approved on a timely basis.

   

In connection with the assessment of the Company’s internal control over financial reporting for the quarter ended March 31, 2013, the Company looked more closely at the financial reporting to insure greater accuracy regarding the timing of transactions. While the Company has taken steps to address these weaknesses, the weaknesses remain and will not be considered effectively remediated until additional improvements to the operating of our internal control over financial reporting are in place for a sufficient period of time and tested.


Inherent Limitations on the Effectiveness of Controls

 

Management does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control systems are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in a cost-effective control system, no evaluation of internal control over financial reporting can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, have been or will be detected.





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These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns can occur because of a simple error or mistake. Controls can also be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the controls. The design of any system of controls is based in part on certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Projections of any evaluation of controls effectiveness to future periods are subject to risks. Over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with policies or procedures.

 

Changes in Internal Control over Financial Reporting

 

There have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13-15(f) and 15d-15(f) under the Exchange Act) during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.





















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PART II - OTHER INFORMATION


Item 1.  Legal Proceedings.


We are not currently a party to any legal proceedings. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.


Item 1a.  Risk Factors.


As a smaller reporting company, we are not required to provide the information required by this Item.


Item 2.  Unregistered Sales Of Equity Securities And Use Of Proceeds.


On February 7, 2013, the Company entered into an intellectual property purchase agreement (the "IP Agreement") with Sportingblood for the acquisition of all right, title and interest in the Sporting Blood trademark and certain product formulations (the "Intellectual Property") in exchange for issuing 11,000,000 shares of common stock to Sportingblood.

 

Prior to execution of the IP Agreement, Charles Hazzard and Christina Mabanta-Hazzard are the majority shareholders of the Company, which they collectively own 10,000,000 shares of common stock of the Company. Upon issuance of 11,000,000 shares of common stock in exchange for the intellectual property of Sporting Blood, there will be a total of 26,050,000 shares of common stock outstanding. Additionally, in a separate transaction, Andrew Bachman, owner of Sportingblood, purchased 5,000,000 shares of common stock from Charles Hazzard and Christina Mabanta-Hazzard. These transactions resulted a change in control of the Company, providing a controlling interest to the new Chief Executive Officer and President of the Company, Andrew Bachman. Accordingly, the asset received has been recorded at historical cost as determined under U.S. GAAP on February 7, 2013 at $46,513.

 

On February 13, 2013, the Company issued 100,000 units for a cash payment of $10,000.  Each Unit consists of one share of the Company's common stock and one purchase warrant. Each warrant entitles the holder to purchase one additional share of the Company's common stock at a price of $0.25 per share for a period of three years from the date of issuance.

 

On February 14, 2013, the Company issued 3,500,000 units for a cash payment of $350,000.  Each Unit consists of one share of the Company's common stock and one purchase warrant. Each warrant entitles the holder to purchase one additional share of the Company's common stock at a price of $0.25 per share for a period of three years from the date of issuance.

 

On February 21, 2013, the Company issued 100,000 units for a cash payment of $10,000.  Each Unit consists of one share of the Company's common stock and one purchase warrant. Each warrant entitles the holder to purchase one additional share of the Company's common stock at a price of $0.25 per share for a period of three years from the date of issuance.

 

On February 25, 2013, the Company issued 2,300,000 units for a cash payment of $230,000.  Each Unit consists of one share of the Company's common stock and one purchase warrant. Each warrant entitles the holder to purchase one additional share of the Company's common stock at a price of $0.25 per share for a period of three years from the date of issuance.

 

During the three months ended March 31, 2013, the Company recorded a stock payable in the amount of $7,500 for compensation to the Company's Chief Financial Officer; and during the year ended December 31, 2012, the Company recorded a stock payable in the amount of $22,500. As of March 31, 2013, $30,000 recorded as stock payable to the Chief Financial Officer.

 

These issuances are exempt from registration pursuant to Rule 506 of Registration D of the Securities Act of 1933.

 

 



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Item 3.  Defaults Upon Senior Securities.


None.


Item 4.  Mine Safety Disclosures


Not Applicable.


Item 5.  Other Information.


On April 4, 2013, the Company’s Chief Financial Officer, Christina Hazzard, resigned as Chief Financial Officer.  Andrew Bachman was elected to serve as the Company’s Chief Financial Officer for the Company.

 

Item 6.  Exhibits.

  

Number

Exhibit

  

  

31.1

Certification of Principal Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

31.2

Certification of Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

32.1

Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

32.2

Certification of Principal Financial and Accounting Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

  

 

 

 

 

 

 

 




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SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

 

 

GAME PLAN HOLDINGS, INC.

 

 

 

 

 

Date:  May 20, 2013

By:

/s/ Andrew Bachman

 

 

 

Andrew Bachman, Chief Executive Officer

 

 

 

 

 

 

 

 

 

Date:  May 20, 2013

By:

/s/ Andrew Bachman

 

 

 

Andrew Bachman, Chief Financial and Accounting Officer  

 































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