UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-K

         ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES

EXCHANGE ACT OF 1934

 

For the fiscal year ended March 31, 2014

 

Commission file number 333-139482

 

 

INDIE GROWERS ASSOCIATION

(formerly Viking Minerals, Inc.)

(Exact Name of Registrant as Specified in Its Charter)

 

Nevada                                                 98-0492900

(State or Other Jurisdiction of                        (I.R.S. Employer

Incorporation or Organization)                          Identification No.)

 

311 Division St. Carson City, NV 89703

Peoria, AZ 85381

(Address of Principal Executive Offices & Zip Code)

 

888-648-0488 (Telephone Number)

 

Securities registered pursuant to Section 12(b) of the Act:

 

None

 

Securities registered pursuant to section 12(g) of the Act:

 

Common Stock, $0.001 par value

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [X]

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act Yes [ ] No [X]

 

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) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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 [ ]                       Smaller reporting company [X]

(Do not check if a smaller reporting company)

 

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

 

As of June 26, 2014, the registrant had 23,160,437 shares of common stock issued and outstanding.

 


VIKING MINERALS INC.

TABLE OF CONTENTS

PART I 4

ITEM 1. BUSINESS

4

ITEM 1A. RISK FACTORS

5

ITEM 2. PROPERTIES

11

ITEM 3. LEGAL PROCEEDINGS

11

ITEM 4. MINE SAFETY DISCLOSURES

11
PART II 12

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS NO PUBLIC MARKET FOR COMMON STOCK

12

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

13

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

19

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON FINANCIAL DISCLOSURE

19

ITEM 9A. CONTROLS AND PROCEDURES

19
PART III 21

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CONTROL PERSONS

21

ITEM 11. EXECUTIVE COMPENSATION

22

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

24

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

24
PART IV 25

ITEM 15. EXHIBITS

25
SIGNATURES 26

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PART I

ITEM 1. BUSINESS

SUMMARY

 

COMPANY OVERVIEW

Indie Growers Association ("Indie Growers" or the "Company") was organized under the laws of the State of Nevada on March 24, 2006 to explore mineral properties in North America. On April 14, 2014 the Company completed its name change from Viking Minerals, Inc. to Indie Growers Association.

Indie Growers was formed to engage in the exploration of mineral properties for gold, silver, copper and other metals. We are a development stage company seeking properties of merit to explore and develop but we have not realized any revenues to date. We do not have sufficient capital to enable us to commence and complete an exploration program. We are contemplating raising additional capital to finance future exploration programs. No final decisions regarding the program or financing have been made at this time but we will require financing to commence and complete future explorations. Our auditors have issued a going concern opinion, raising substantial doubt about our financial prospects and the Company's ability to continue as a going concern.

BANKRUPTCY OR SIMILAR PROCEEDINGS

We have not been the subject of a bankruptcy, receivership or similar proceedings.

COMPETITION AND MARKETS

We face competition from other resources based companies in all aspects of our business, including acquisition of properties. Many of our competitors have substantially larger financial and other resources than we have. Factors that affect our ability to acquire properties include available funds, available information about prospective properties and our limited number of resources.

The availability of a ready market for and the price of any properties or minerals extracted from properties will depend on many factors beyond our control including, but not limited to, the amount of domestic production and imports of similar minerals, the effect of federal and state regulation of allowable rates of production, taxation, the conduct of exploration operations and federal regulation of these operations. All of these factors, together with economic factors in the marketing arena, generally affect the supply of and/or demand for minerals.

REGULATORY CONSIDERATIONS

We are required to conduct all mineral exploration activities in accordance with government regulations. Such operations are subject to various laws governing land use, the protection of the environment, production, exports, taxes, labor standards, occupational health, waste disposal, toxic substances, well safety and other matters. Unfavorable amendments to current laws, regulations and permits governing operations and activities of resource exploration companies, or more stringent implementation thereof, could have a materially adverse impact and cause increases in capital expenditures which could result in a cessation of operations.

EMPLOYEES

Until February 26, 2014, the company sole officer and employee was Charles Irizarry. On this date he resigned and Mr. Robert Coleridge was appointed the Company’s sole officer and director. On April 28, 2014 Arnie De Witt III join the company as a director

RESEARCH AND DEVELOPMENT EXPENDITURES

We have not incurred any research or development expenditures since our incorporation.

PATENTS AND TRADEMARKS

We do not own, either legally or beneficially, any patents or trademarks.

 

ITEM 1A. RISK FACTORS

WE ARE A DEVELOPMENT STAGE COMPANY AND WE EXPECT TO INCUR OPERATING LOSSES FOR THE FORESEEABLE FUTURE.

We were incorporated on March 24, 2006 and to date have been involved in the organizational activities, and acquisition of mineral claims. We have no way to evaluate the likelihood that our business will be successful. We have earned no revenues as of the date of this annual report. Potential investors should be aware of the difficulties normally encountered by exploration companies and the high rate of failure of such enterprises. The likelihood of success must be considered in light of the problems, expenses, difficulties, complications and delays encountered in connection with the exploration and development of properties that we plan to undertake. These potential problems include, but are not limited to, unanticipated problems relating to exploration, and additional costs and expenses that may exceed current estimates. Prior to completion of our exploration stage, we anticipate that we will incur increased operating expenses without greatly increasing our revenues. We expect to incur significant losses into the foreseeable future. We recognize that if production is not forthcoming, we will not be able to continue business operations. There is no history upon which to base any assumption as to the likelihood that we will prove successful, and it is doubtful that we will generate significant revenues to achieve profitable operations. If we are unsuccessful in addressing these risks, our business will most likely fail.

 

WE HAVE YET TO EARN ANY REVENUE TO ACHIEVE PROFITABILITY AND OUR ABILITY TO SUSTAIN OUR OPERATIONS IS DEPENDENT ON OUR ABILITY TO RAISE ADDITIONAL FINANCING TO COMPLETE OUR PROGRAM IF WARRANTED. AS A RESULT, OUR ACCOUNTANT BELIEVES THERE IS SUBSTANTIAL DOUBT ABOUT OUR ABILITY TO CONTINUE AS A GOING CONCERN.

 

We have accrued net losses of $30,902,613 for the period from inception (March 24, 2006) to March 31, 2014, and have had no revenues to date. Our future is dependent upon our ability to obtain financing and upon future profitable operations from the development of our business. These factors raise substantial doubt that we will be able to continue as a going concern. Our independent auditor, has expressed substantial doubt about our ability to continue as a going concern. This opinion could materially limit our ability to raise additional funds by issuing new debt or equity securities or otherwise. If we fail to raise sufficient capital when needed, we will not be able to complete our business plan. As a result we may have to liquidate our business and you may lose your investment. You should consider our auditor's comments when determining if an investment in our company is suitable.

 

BECAUSE OF THE UNIQUE DIFFICULTIES AND UNCERTAINTIES INHERENT IN EXPLORATION VENTURES, WE FACE A HIGH RISK OF BUSINESS FAILURE.

 

You should be aware of the difficulties normally encountered by exploration companies and the high rate of failure of such enterprises. The likelihood of success must be considered in light of the problems, expenses, difficulties, complications and delays encountered in connection with the exploration and development of the properties that we plan to undertake. These potential problems include, but are not limited to, unanticipated problems relating to exploration, and additional costs and expenses that may exceed current estimates. If the results of our development program do not reveal viable commercialization options, we may decide to abandon any or all claims that we may own and acquire new claims. Our ability to acquire additional claims will be dependent upon our possessing adequate capital resources when needed. If no funding is available, we may be forced to abandon our operations.

 

BECAUSE OF THE INHERENT DANGERS INVOLVED IN MINERAL EXPLORATION OPERATIONS, THERE IS A RISK THAT WE MAY INCUR LIABILITY OR DAMAGES AS WE CONDUCT OUR BUSINESS.

 

The extracting of mineral involves numerous hazards. As a result, we may become subject to liability for such hazards, including pollution, cave-ins and other hazards against which we cannot insure or against which we may elect not to insure. At the present time we have no insurance to cover against these hazards. The payment of such liabilities may result in our inability to complete our planned program and/or obtain additional financing to fund our program.

 

AS WE UNDERTAKE ACQUISITIONS AND DEVELOPMENT OF OUR PROPERTIES, WE WILL BE SUBJECT TO COMPLIANCE WITH GOVERNMENT REGULATION THAT MAY INCREASE THE ANTICIPATED COST OF OUR PROGRAM.

 

There are several governmental regulations that materially restrict mineral extraction. We will be subject to regulations and laws as we carry out our program. We may be required to obtain work permits, post bonds and perform remediation work for any physical disturbance to the area in order to comply with these laws. The cost of complying with permit and regulatory environment laws will be greater because the impact on the project area is greater. Permits and regulations will control all aspects of the production program if the project continues to that stage. Examples of regulatory requirements can include:

a)     Water discharge will have to meet drinking water standards;

 

b)    Dust generation will have to be minimal or otherwise re-mediated;

 

c)     Dumping of material on the surface will have to be re-contoured and re-vegetated with natural vegetation;

 

d)     An assessment of all material to be left on the surface will need tobe environmentally benign;

 

e)     Ground water will have to be monitored for any potential contaminants;

 

f)     The socio-economic impact of the project will have to be evaluated and if deemed negative, will have to be remediated; and

 

There is a risk that new regulations could increase our costs of doing business and prevent us from carrying out our exploration program. We will also have to sustain the cost of reclamation and environmental remediation for all exploration work undertaken. Both reclamation and environmental remediation refer to putting disturbed ground back as close to its original state as possible. Other potential pollution or damage must be cleaned-up and renewed along standard guidelines outlined in the usual permits. Reclamation is the process of bringing the land back to its natural state after completion of exploration activities. Environmental remediation refers to the physical activity of taking steps to remediate, or remedy, any environmental damage caused. The amount of these costs is not known at this time as we do not know the extent of the exploration program that will be undertaken beyond completion of the recommended work program. If remediation costs exceed our cash reserves we may be unable to complete our exploration program and have to abandon our operations.

                                    

IF ACCESS TO OUR PROPERTIES IS RESTRICTED BY INCLEMENT WEATHER, WE MAY BE DELAYED IN ANY FUTURE MINING EFFORTS.

 

It is possible that adverse weather could cause accessibility to any property that we should acquire and this would delay our timetables.

 

BASED ON CONSUMER DEMAND, THE GROWTH AND DEMAND FOR ANY MINERALS WE MAY RECOVER FROM CLAIMS THAT WE MAY OWN MAY BE SLOWED, RESULTING IN REDUCED REVENUES TO THE COMPANY.

 

Our success will be dependent on the growth of demand for minerals in the properties that we acquire. If consumer demand slows our revenues may be significantly affected. This could limit our ability to generate revenues and our financial condition and operating results may be harmed.

 

BECAUSE OUR CURRENT OFFICERS AND DIRECTORS HAVE OTHER BUSINESS INTERESTS, THEY MAY NOT BE ABLE OR WILLING TO DEVOTE A SUFFICIENT AMOUNT OF TIME TO OUR BUSINESS OPERATIONS, CAUSING OUR BUSINESS TO FAIL.

 

Mr. Charles Irizarry our previous CEO and a director, devoted up to 10 hours per week providing services to the company. While he presently possesses adequate time to attend to our interest, it is possible that the demands on him from other obligations could increase, with the result that he would no longer be able to devote sufficient time to the management of our business. Our new directors also have other interests and limited time to devote to the Company. This could negatively impact our business development. Our other Directors spend similar amounts of time providing services to the company and there is no guarantee that they will have sufficient time to devote to the management of our business.

 

WE MAY BE UNABLE TO OBTAIN ADDITIONAL CAPITAL THAT WE MAY REQUIRE TO IMPLEMENT OUR BUSINESS PLAN. THIS WOULD RESTRICT OUR ABILITY TO GROW.

 

The proceeds from our initial offerings in 2006 provide us with a limited amount of working capital and is not sufficient to fund our proposed operations. We will require additional capital to continue to operate our business and our proposed operations. We may be unable to obtain additional capital as and when required.

 

Future acquisitions and future development, production and marketing activities, as well as our administrative requirements (such as salaries, insurance expenses and general overhead expenses, as well as legal compliance costs and accounting expenses) will require a substantial amount of additional capital and cash flow.

 

We may not be successful in locating suitable financing transactions in the time period required or at all, and we may not obtain the capital we require by other means. If we do not succeed in raising additional capital, the capital we have received to date may not be sufficient to fund our operations going forward without obtaining additional capital financing.

 

Any additional capital raised through the sale of equity may dilute your ownership percentage. This could also result in a decrease in the fair market value of our equity securities because our assets would be owned by a larger pool of outstanding equity. The terms of securities we issue in future capital transactions may be more favorable to our new investors, and may include preferences, superior voting rights and the issuance of warrants or other derivative securities, and issuances of incentive awards under equity employee incentive plans, which may have a further dilutive effect.

 

Our ability to obtain needed financing may be impaired by such factors as the capital markets (both generally and in the resource industry in particular), our status as a new enterprise without a demonstrated operating history, the location of our properties and the price of minerals on the commodities markets (which will impact the amount of asset-based financing available to us) or the retention or loss of key management. Further, if natural resource prices on the commodities markets decrease, then our potential revenues will likely decrease, and such decreased revenues may increase our requirements for capital. If the amount of capital we are able to raise from financing activities is not sufficient to satisfy our capital needs, we may be required to cease our operations.

 

We may incur substantial costs in pursuing future capital financing, including investment banking fees, legal fees, accounting fees, securities law compliance fees, printing and distribution expenses and other costs. We may also be required to recognize non-cash expenses in connection with certain securities we may issue, such as convertible notes and warrants, which may adversely impact our financial condition.

 

AMENDMENTS TO CURRENT LAWS AND REGULATIONS GOVERNING OUR PROPOSED OPERATIONS COULD HAVE A MATERIAL ADVERSE IMPACT ON OUR PROPOSED BUSINESS.

 

Our business will be subject to substantial regulation under state and federal laws relating to the exploration for, and the development, upgrading, marketing, pricing, taxation, and transportation of mineral resources and other matters.

Amendments to current laws and regulations governing operations and activities of resource operations could have a material adverse impact on our proposed business. In addition, there can be no assurance that income tax laws, royalty regulations and government incentive programs related to the resource industry generally, will not be changed in a manner which may adversely affect us and cause delays, inability to complete or abandonment of properties.

 

Permits, leases, licenses, and approvals are required from a variety of regulatory authorities at various stages of mining and extraction. There can be no assurance that the various government permits, leases, licenses and approvals sought will be granted to us or, if granted, will not be cancelled or will be renewed upon expiration.

 

ESTIMATES OF ANY MINERAL RESERVES THAT WE MAKE MAY BE INACCURATE WHICH COULD HAVE A MATERIAL ADVERSE EFFECT ON US

 

There are numerous uncertainties inherent in estimating quantities of mineral resources, including many factors beyond our control, and no assurance can be given that expected levels of resources or recovery of minerals will be realized. In general, estimates of recoverable minerals are based upon a number of factors and assumptions made as of the date on which resource estimates are determined, such as geological and engineering estimates which have inherent uncertainties and the assumed effects of regulation by governmental agencies and estimates of future commodity prices and operating costs, all of which may vary considerably from actual results. All such estimates are, to some degree, uncertain and classifications of resources are only attempts to define the degree of uncertainty involved. For these reasons, estimates of the recoverable minerals, the classification of such resources based on risk of recovery, prepared by different engineers or by the same engineers at different times, may vary substantially.

 

ABANDONMENT AND RECLAMATION COSTS ARE UNKNOWN AND MAY BE SUBSTANTIAL.

 

We will be responsible for compliance with terms and conditions of environmental and regulatory approvals and all laws and regulations regarding the abandonment of our properties and reclamation of lands at the end of their economic life, which abandonment and reclamation costs may be substantial. A breach of such legislation and/or regulations may result in the issuance of remedial orders, the suspension of approvals, or the imposition of fines and penalties, including an order for cessation of operations at the site until satisfactory remedies are made. It is not possible to estimate with certainty the abandonment and reclamation costs since they will be a function of regulatory requirements at the time.

 

INCREASES IN OUR OPERATING EXPENSES WILL IMPACT OUR OPERATING RESULTS AND FINANCIAL CONDITION.

 

Extraction, development, production, marketing (including distribution costs) and regulatory compliance costs (including taxes) will substantially impact the net revenues we derive from any minerals that we may produce. These costs are subject to fluctuations and variation in different locales in which we will operate, and we may not be able to predict or control these costs. If these costs exceed our expectations, this may adversely affect our results of operations. In addition, we may not be able to earn net revenue at our predicted levels, which may impact our ability to satisfy our obligations.

 

PENALTIES WE MAY INCUR COULD IMPAIR OUR BUSINESS.

 

Failure to comply with government regulations could subject us to civil and criminal penalties, could require us to forfeit property rights, and may affect the value of our assets. We may also be required to take corrective actions, such as installing additional equipment or taking other actions, each of which could require us to make substantial capital expenditures. We could also be required to indemnify our employees in connection with any expenses or liabilities that they may incur individually in connection with regulatory action against them. As a result, our future business prospects could deteriorate due to regulatory constraints, and our profitability could be impaired by our obligation to provide such indemnification to our employees.

 

ENVIRONMENTAL RISKS MAY ADVERSELY AFFECT OUR BUSINESS.

 

Mineral extraction operations present environmental risks and hazards and are subject to environmental regulation pursuant to a variety of federal, state, and local laws and regulations. Environmental legislation provides for, among other things, restrictions and prohibitions on spills, releases or emissions of various substances produced in association with resource operations. The legislation also requires that facility sites be operated, maintained, abandoned and reclaimed to the satisfaction of applicable regulatory authorities.

 

Compliance with such legislation can require significant expenditures and a breach may result in the imposition of fines and penalties, some of which may be material. Environmental legislation is evolving in a manner we expect may result in stricter standards and enforcement, larger fines and liability and potentially increased capital expenditures and operating costs.

 

The discharge of pollutants into the air, soil or water may give rise to liabilities to governments and third parties and may require us to incur costs to remedy such discharges. The application of environmental laws to our business may cause us to curtail our production or increase the costs of our production, development or exploration activities.

 

THE MARKET PRICE OF OUR COMMON STOCK IS LIKELY TO BE HIGHLY VOLATILE AND SUBJECT TO WIDE FLUCTUATIONS.

 

Assuming we are able to establish an active trading market for our common stock, the market price of our common stock is likely to be highly volatile and could be subject to wide fluctuations in response to a number of factors that are beyond our control, including:

  • dilution caused by our issuance of additional shares of common stock and other forms of equity securities, which we expect to make in connection with future capital financings to fund our operations and growth, to attract and retain valuable personnel and in connection with future strategic partnerships with other companies;
  • announcements of acquisitions, reserve discoveries or other business initiatives by our competitors;
  • fluctuations in revenue from our business as new reserves come to market;
  • changes in the market for commodities or in the capital markets generally;
  • quarterly variations in our revenues and operating expenses;
  • changes in the valuation of similarly situated companies, both in our industry and in other industries;
  • changes in analysts' estimates affecting us, our competitors or our industry;
  • changes in the accounting methods used in or otherwise affecting our industry;
  • additions and departures of key personnel;
  • fluctuations in interest rates and the availability of capital in the capital markets; and

 

These and other factors are largely beyond our control, and the impact of these risks, singly or in the aggregate, may result in material adverse changes to the market price of our common stock and our results of operations and financial condition.

 

OUR OPERATING RESULTS MAY FLUCTUATE SIGNIFICANTLY, AND THESE FLUCTUATIONS MAY CAUSE OUR STOCK PRICE TO DECLINE.

 

Our operating results will likely vary in the future primarily as the result of fluctuations in our revenues and operating expenses, expenses that we incur, the price of minerals in the commodities markets and other factors. If our results of operations do not meet the expectations of current or potential investors, the price of our common stock may decline.

 

WE DO NOT EXPECT TO PAY DIVIDENDS IN THE FORESEEABLE FUTURE.

 

We do not intend to declare dividends for the foreseeable future, as we anticipate that we will reinvest any future earnings in the development and growth of our business. Therefore, investors will not receive any funds unless they sell their common stock, and stockholders may be unable to sell their shares on favorable terms or at all. Investors cannot be assured of a positive return on investment or that they will not lose the entire amount of their investment in the common stock.

 

APPLICABLE SEC RULES GOVERNING THE TRADING OF "PENNY STOCKS" WILL LIMIT THE TRADING AND LIQUIDITY OF OUR COMMON STOCK, WHICH MAY AFFECT THE TRADING PRICE OF OUR COMMON STOCK.

 

Our common stock is presently considered to be a "penny stock" and is subject to SEC rules and regulations which impose limitations upon the manner in which such shares may be publicly traded and regulate broker-dealer practices in connection with transactions in "penny stocks." 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, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system). The 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 must also 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. In addition, the penny stock rules generally require that prior to a transaction in a penny stock, the broker-dealer 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 disclosure requirements may have the effect of reducing the level of trading activity in the secondary market for a stock that becomes subject to the penny stock rules which may increase the difficulty investors may experience in attempting to liquidate such securities.

 

FORWARD-LOOKING STATEMENTS

 

This Form 10-K contains forward-looking statements that involve risks and uncertainties. We use words such as anticipate, believe, plan, expect, future, intend and similar expressions to identify such forward-looking statements. You should not place too much reliance on these forward-looking statements. Our actual results are likely to differ materially from those anticipated in these forward-looking statements for many reasons.

 

ITEM 2. PROPERTIES

Our address is located at 311 Division St. Carson City, NV 89703 and our telephone number is 888-648-0488.

On April 28, 2014, the Company entered into an agreement to acquire a 30% interest, as well as a long term lease on the remaining 70%, of River Ridge Sunshine Farms, a $1.2 Million agricultural property in Prosser, Washington, in exchange for 20 million restricted shares of the common stock of the Company. The acquisition and long term lease is to take effect no later than May 31st following a short due diligence period. The 40 acre property is subdivided into 15 separate parcels, one of which has already been leased to a licensed grower with construction well under way on greenhouses and ancillary buildings. Over the six month period immediately following the closing, the Company will invest $800,000 for improvements to the property including greenhouse construction on two additional parcels as well as roads and utilities to the other parcels. Under the sublease agreement with the current licensee, a portion of the revenue from the sale of every crop will be paid to the Company as a royalty. The Agreement has been extended to June 30, 2014.

On April 8, 2014, the Company entered into a binding share exchange agreement, fully executed by all parties, between the unit holders of Indie Growers Union LLC of Washington State and Viking Minerals Inc. (now known as Indie Growers Association Inc.). Under the terms of the agreement, the Company shall issue a total of 87,500,000 shares of common stock in exchange for all of the outstanding member units and assets of Indie Growers Union LLC on or before April 30, 2014. In addition, the Company has forwarded a total of $185,000 to Indie Growers Union LLC as a good faith payment. This Agreement was terminated by the Company on April 28, 2014. The $185,000 deposit was forfeited.

On July 10, 2012, the Company entered into an agreement with GMM Global Multi-Mining Diversified Group Limited (“GMM”) wherein GMM assigned and transferred a 60% interest in a joint venture to the company for 131,000,000 shares of the company’s common stock (valued at $131,000, per the agreement) and $500,000 cash. The 131,000,000 shares of common stock were issued on July 10, 2012; however, the Company failed to pay the required $500,000 and forfeited its right to the 60% interest as of April 1, 2013. The Company recorded a loss on impairment of $131,000.

In 2011, the Company had entered into an option agreement with Sundance Gold Ltd. whereby they were granted the right to earn 70% of 20 mineral claims in the State of Nevada covering approximately 200 acres known as the Dolly Varden claims. As per the terms of the agreement the company was to spend $500,000 on a work program on this property by December 31, 2011.  The company experienced difficulties securing financing for the work program on these claims and as per the agreement forfeited their right to earn 70% of these mineral claims.  All costs incurred for the Sundance Gold Ltd property have been impaired and expensed during this last fiscal year.

 

ITEM 3. LEGAL PROCEEDINGS

 

We are not currently involved in any legal proceedings and we are not aware of any pending or potential legal actions.

 

ITEM 4. MINE SAFETY DISCLOSURES

 

None.

 

PART II

 

ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS NO PUBLIC MARKET FOR COMMON STOCK

 

As of the date of this report we have approximately 27 shareholders of record. We have paid no cash dividends and have no outstanding options. We have no securities authorized for issuance under equity compensation plans.

 

The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally 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, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or quotation system. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by the SEC, that:

 

a) contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading;

b) contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation to such duties or other requirements of Securities' laws;

c) contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask price;

d) contains a toll-free telephone number for inquiries on disciplinary actions;

e) defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and

f) contains such other information and is in such form, including language, type, size and format, as the SEC shall require by rule or regulation. The broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer with:

a.    bid and offer quotation for the penny stock;

b.    the compensation of the broker-dealer and its salesperson in the transaction;

c.    the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and

d.    monthly account statements showing the market value of each penny stock held in the customer's account.

 

In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules; the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement to transactions involving penny stocks, and a signed and dated copy of a suitably written statement.

 

These disclosure requirements may have the effect of reducing the trading activity in the secondary market for our stock if it becomes subject to these penny stock rules. Therefore, if our common stock becomes subject to the penny stock rules, stockholders may have difficulty selling those securities.

 

 

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

FORWARD LOOKING STATEMENTS

 

This section of this report 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, which apply only as of the date of our report. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions. We are a development stage company and have yet to generated enough revenues to achieve profitability.

 

RESULTS OF OPERATIONS

 

We are still in the development stage and have generated no revenues to date.

 

We incurred expenses of $31,060,294 from inception (March 24, 2006) to the year ending March 31, 2014. These expenses consisted of loss on extinguishment of debt ($30,621,661), write down of properties ($131,000), forfeiture of deposit ($50,000) and general operating expenses, professional fees incurred in connection with the day to day operation of our business and the preparation and filing of our periodic reports.

The loss incurred during the year ended March 31, 2014 (YE14) was $147,681 compared to a loss of $30,796,908 for the year ended March 31, 2013 (YE13). The loss was largely due to the Loss on Forfeiture of Deposit on certain properties in Washington of $50,000. In addition consulting fees were $79,500 as compared to $12,500 in YE13. The YE13 loss was largely caused by the Loss on Extinguishment of Debts being $30,621,661 and Write Down of properties being $131,000. The loss was caused by:

1.     the issuance of 19,950,000 shares to extinguish debts of $19,500 when the market price of the shares were $1.50. This resulted in a loss on extinguishment of debt of $29,905,050;

2.     the issuance of 15,000,000 shares to extinguish debts of $15,000 when the market price of the shares were $0.0225. This resulted in a loss on extinguishment of debt of $322,500; and

3.     the issuance of 33,389,181 shares to extinguish debts of $33,389 when the market price of the shares were $0.0128. This resulted in a loss on extinguishment of debt of $394,111.

4.     the write-down of properties of $131,000.

On April 8, 2014, the Company entered into a binding share exchange agreement, fully executed by all parties, between the unit holders of Indie Growers Union LLC of Washington State and Viking Minerals Inc. (now known as Indie Growers Association Inc.). Under the terms of the agreement, the Company was to issue a total of 87,500,000 shares of common stock in exchange for all of the outstanding member units and assets of Indie Growers Union LLC on or before April 30, 2014. In addition, the Company has forwardeda total of $185,000 to Indie Growers Union LLC as a good faith payment. This Agreement was terminated by the Company on April 28, 2014. The $185,000 deposit was forfeited. $50,000 of this loss was recognized in the current fiscal year.

On April 28, 2014, the Company entered into an agreement to acquire a 30% interest, as well as a long term lease on the remaining 70%, of River Ridge Sunshine Farms, a $1.2 Million agricultural property in Prosser, Washington, in exchange for 20 million restricted shares of the common stock of the Company. The acquisition and long term lease is to take effect no later than May 31st following a short due diligence period. The 40 acre property is subdivided into 15 separate parcels, one of which has already been leased to a licensed grower with construction well under way on greenhouses and ancillary buildings. Over the six month period immediately following the closing, the Company will invest $800,000 for improvements to the property including greenhouse construction on two additional parcels as well as roads and utilities to the other parcels. Under the sublease agreement with the current licensee, a portion of the revenue from the sale of every crop will be paid to the Company as a royalty. The Agreement has been extended to June 30, 2014.

As we are in the process of changing businesses a number of the risks of the new business are discussed as follows:

Because we have no operating history in the cannabis industry, we may not succeed. 

We have no specific operating history or experience in procuring, building out or leasing real estate for agricultural purposes, specifically marijuana grow facilities, or with respect to any other activity in the cannabis industry. Moreover, we are subject to all risks inherent in a developing a new business enterprise. Our likelihood of success must be considered in light of the problems, expenses, difficulties, complications, and delays frequently encountered in connection with establishing a new business and the competitive and regulatory environment in which we operate. For example, the medical marijuana industry is new and may not succeed, particularly should the federal government change course and decide to prosecute those dealing in medical marijuana. If that happens there may not be an adequate market for our properties or other activities we propose to engage in.

You should further consider, among other factors, our prospects for success in light of the risks and uncertainties encountered by companies that, like us, are in their early stages. For example, unanticipated expenses, delays and or complications with build outs, zoning issues, legal disputes with neighbors, local governments, communities and or tenants. We may not successfully address these risks and uncertainties or successfully implement our operating strategies. If we fail to do so, it could materially harm our business to the point of having to cease operations and could impair the value of our common stock to the point investors may lose their entire investment.

Because we may be unable to identify and or successfully acquire properties which are suitable for our business, our financial condition may be negatively affected.

 Our business plan involves the identification and the successful acquisition of properties which are zoned for marijuana businesses, including grow and retail. The properties we acquire will be leased to licensed marijuana operators. Local governments must approve and adopt zoning ordinances for marijuana facilities and retail dispensaries. A lack of properly zoned real estate may reduce our prospects and limit our opportunity for growth and or increase the cost at which suitable properties are available to us. Conversely a surplus of real estate zoned for marijuana establishments may reduce demand and prices we are able to charge for properties we may have previously acquired.

Because our business is dependent upon continued market acceptance by consumers, any negative trends will adversely affect our business operations.

 We are substantially dependent on continued market acceptance and proliferation of consumers of medical marijuana. We believe that as marijuana becomes more accepted the stigma associated with marijuana use will diminish and as a result consumer demand will continue to grow. And while we believe that the market and opportunity in the marijuana space continues to grow, we cannot predict the future growth rate and size of the market. Any negative outlook on the marijuana industry will adversely affect our business operations. 

In addition, it is believed by many that large well-funded businesses may have a strong economic opposition to the cannabis industry. We believe that the pharmaceutical industry clearly does not want to cede control of any product that could generate significant revenue. For example, medical marijuana will likely adversely impact the existing market for the current “marijuana pill” sold by the mainstream pharmaceutical industry, should marijuana displace other drugs or encroach upon the pharmaceutical industry’s products. The pharmaceutical industry is well funded with a strong and experienced lobby that eclipses the funding of the medical marijuana movement. Any inroads the pharmaceutical could make in halting the impending cannabis industry could have a detrimental impact on our proposed business. 

Because marijuana is illegal under federal law, we could be subject to criminal and civil sanctions for engaging in activities that violate those laws.

The U.S. Government classifies marijuana as a schedule-I controlled substance. As a result, marijuana is an illegal substance under federal law. Even in those jurisdictions in which the use of medical marijuana has been legalized at the state level, its prescription is a violation of federal law. The United States Supreme Court has ruled inUnited States v. Oakland Cannabis Buyers' Coop. andGonzales v. Raichthat it is the federal government that has the right to regulate and criminalize cannabis, even for medical purposes. Therefore, federal law criminalizing the use of marijuana pre-empts state laws that legalizes its use for medicinal purposes. 

As of January 31, 2014, 21 states and the District of Columbia allow its citizens to use medical marijuana. Additionally, voters in the states of Colorado and Washington approved ballot measures last November to legalize cannabis for adult use. The state laws are in conflict with the federal Controlled Substances Act, which makes marijuana use and possession illegal on a national level. The Obama administration has effectively stated that it is not an efficient use of resources to direct law federal law enforcement agencies to prosecute those lawfully abiding by state-designated laws allowing the use and distribution of medical marijuana. However, there is no guarantee that the administration will not change its stated policy regarding the low-priority enforcement of federal laws. Additionally, any new administration that follows could change this policy and decide to enforce the federal laws strongly. Any such change in the federal government's enforcement of current federal laws could cause significant financial damage to us and our shareholders. 

Should such a change occur, our business operations would be affected. If our marijuana tenants are forced to shut their operations, we would need to seek to replace those tenants with non-marijuana tenants, who would likely expect to pay lower rents. Moreover if the marijuana industry were forced to shut down at once, it would result in a high amount of vacancies at once and create a surplus of supply, driving leases and property values lower. Additionally, we would realize an economic loss on any and all improvements made to the properties that were specific to the marijuana industry and we would likely lose any and all investments in the US market that were marijuana related. 

Further, and while we do not intend to harvest, cultivate, possess, distribute or sell cannabis, by leasing facilities and financing growers of medicinal marijuana, we could be deemed to be participating in marijuana cultivation or aiding and abetting, which remains illegal under federal law, and exposes us to potential criminal liability, with the additional risk that our properties could be subject to civil forfeiture proceedings. Moreover, since the use of marijuana is illegal under federal law, we may have difficulty acquiring or maintaining bank accounts and insurance and our shareholders may find it difficult to deposit their stock with brokerage firms.

Laws and regulations affecting the regulated marijuana industry are constantly changing, which could detrimentally affect our proposed operations, and we cannot predict the impact that future regulations may have on us.

Local, state and federal medical marijuana laws and regulations are broad in scope and subject to evolving interpretations, which could require us to incur substantial costs associated with compliance or alter our business plan. In addition, violations of these laws, or allegations of such violations, could disrupt our business and result in a material adverse effect on its operations. In addition, it is possible that regulations may be enacted in the future that will be directly applicable to our proposed business. We cannot predict the nature of any future laws, regulations, interpretations or applications, nor can we determine what effect additional governmental regulations or administrative policies and procedures, when and if promulgated, could have on our business.

 

FDA regulation of marijuana and the possible registration of facilities where medical marijuana is grown could negatively affect the cannabis industry which would directly affect our financial condition. 

Should the federal government legalize marijuana for medical use, it is possible that the U.S. Food and Drug Administration (FDA) would seek to regulate it under the Food, Drug and Cosmetics Act of 1938. Additionally, the FDA may issue rules and regulations including cGMPs (certified good manufacturing practices) related to the growth, cultivation, harvesting and processing of medical marijuana. Clinical trials may be needed to verify efficacy and safety. It is also possible that the FDA would require that facilities where medical marijuana is grown be registered with the FDA and comply with certain federally prescribed regulations. In the event that some or all of these regulations are imposed, we do not know what the impact would be on the medical marijuana industry, what costs, requirements and possible prohibitions may be enforced. If we or our tenants are unable to comply with the regulations and or registration as prescribed by the FDA, we and or our tenants may be unable to continue to operate their and our business in its current form or at all. 

Our clients and our company may have difficulty accessing the service of banks, which may make it difficult to contract for real estate needs.

On February 14, 2014, The U.S. government issued rules allowing banks to legally provide financial services to state-licensed marijuana businesses. A memorandum issued by the Justice Department to federal prosecutors re-iterated guidance previously given, this time to the financial industry that banks can do business with legal marijuana businesses and “may not” be prosecuted. The Treasury Department's Financial Crimes Enforcement Network (FinCEN) issued guidelines to banks that “it is possible to provide financial services"” to state-licensed marijuana businesses and still be in compliance with federal anti-money laundering laws. The guidance falls short of the explicit legal authorization that banking industry officials had pushed the government to provide and to date it is not clear what if any banks have relied on the guidance and taken on legal marijuana companies as clients. The aforementioned policy may be administration dependent and a change in presidential administrations may cause a policy reversal and retraction of current policies, wherein legal marijuana businesses may not have access to the banking industry. We could be subject to sanctions if we are found to be a financial institution and not in harmony with FinCET guidelines. Also, the inability of potential clients in our target market to open accounts and otherwise use the service of banks may make it difficult for them to contract with us. 

Because we buy, sell and lease property, we will be subject to general real estate risks.

We will be subject to risks generally incident to the ownership of real estate, including: (a) changes in general economic or local conditions; (b) changes in supply of, or demand for, similar or competing properties in the area; (c) bankruptcies, financial difficulties or defaults by tenants or other parties; (d) increases in operating costs, such as taxes and insurance; (e) the inability to achieve full stabilized occupancy at rental rates adequate to produce targeted returns; (f) periods of high interest rates and tight money supply; (g) excess supply of rental properties in the market area; (h) liability for uninsured losses resulting from natural disasters or other perils; (i) liability for environmental hazards; and (j) changes in tax, real estate, environmental, zoning or other laws or regulations. For these and other reasons, no assurance can be given that we will be profitable. 

Because our business model depends upon the availability of private financing, any change in our ability to raise money will adversely affect our financial condition.

Our ability to acquire, operate and sell properties, engage in the business activities that we have planned and achieve positive financial performance depends, in large measure, on our ability to obtain financing in amounts and on terms that are favorable. The capital markets in the United States have recently undergone a turbulent period in which lending was severely restricted. Although there appears to be signs that financial institutions are resuming lending, the market has not yet returned to its pre-2008 state. Obtaining favorable financing in the current environment remains challenging.

Because we will compete with others for suitable properties, competition will result in higher costs that could materially affect our financial condition. 

We will experience competition for real estate investments from individuals, corporations and other entities engaged in real estate investment activities, many of whom have greater financial resources than us. Competition for investments may have the effect of increasing costs and reducing returns to our investors. 

Because there may be restrictions on the transfer and further encumbrance of our properties, there may be negative consequences that will affect our financial condition.

The terms of our drawdown agreement allow properties that we acquire to be collateral to secure the loans we receive. We may be prohibited from transferring or further encumbering the properties or any interest in our properties except with a lender’s prior consent. The loans may provide that upon violation of these restrictions, a lender may declare the entire amount of the loan to be immediately due and payable. If we are unable to obtain replacement financing or otherwise fail to immediately repay the loans in full, the lender may invoke its remedies under the loan, including proceeding with a foreclosure sale that could result in our losing our entire interest in the properties subject to the loans.

Because we are liable for hazardous substances on our properties, environmental liabilities are possible and can be costly.

Federal, state and local laws impose liability on a landowner for releases or the otherwise improper presence on the premises of hazardous substances. This liability is without regard to fault for, or knowledge of, the presence of such substances. A landowner may be held liable for hazardous materials brought onto a property before it acquired title and for hazardous materials that are not discovered until after it sells the property. Similar liability may occur under applicable state law. Sellers of properties may make only limited representations as to the absence of hazardous substances. If any hazardous materials are found within our properties in violation of law at any time, we may be liable for all cleanup costs, fines, penalties and other costs. This potential liability will continue after we sell the properties and may apply to hazardous materials present within the properties before we acquire the properties. If losses arise from hazardous substance contamination which cannot be recovered from a responsible party, the financial viability of the properties may be adversely affected. It is possible that we will purchase properties with known or unknown environmental problems which may require material expenditures for remediation. 

Because we may not be adequately insured, we could experience significant liability for uninsured events.

While we intend to carry comprehensive insurance on our properties, including fire, liability and extended coverage insurance, there are certain risks that may be uninsurable or not insurable on terms that management believes to be economical. For example, management may not obtain insurance against floods, terrorism, mold-related claims, or earthquake insurance. If such an event occurs to, or causes the damage or destruction of, a property, we could suffer financial losses. 

If we are found non-compliance with the Americans with Disabilities Act, we will be subject to significant liabilities. 

If any of our properties are not in compliance with the Americans with Disabilities Act of 1990, as amended (the “ADA”), we may be required to pay for any required improvements. Under the ADA, public accommodations must meet certain federal requirements related to access and use by disabled persons. The ADA requirements could require significant expenditures and could result in the imposition of fines or an award of damages to private litigants. We cannot assure that ADA violations do not or will not exist at any of our properties.

The following table provides selected financial data about our company for the years ended March 31, 2014 and 2012.

 Balance Sheet Data

 

March 31, 2014

   

March 31, 2013

 

 Cash

$

             37,319

 
$

                      -  

 

 Liabilities

$

          184,112

 
$

            64,112

 

 Stockholders' Deficit

$

        (146,794

)
$

          (64,112

)

 

LIQUIDITY AND CAPITAL RESOURCES

 

Our cash balance at March 31, 2014 was $37,319l with outstanding liabilities of $184,112. Management believes our current cash balance will be unable to sustain operations for the next 12 months. We will be forced to raise additional funds by issuing new debt or equity securities or otherwise. If we fail to raise sufficient capital when needed, we will not be able to complete our business plan. We are a development stage company and have generated no revenue to date.

 

PLAN OF OPERATION

 

Our cash balance is $37,319 as of March 31, 2014. We believe our cash balance is insufficient to fund our levels of operations for the next twelve months. As a result we will be forced to raise additional funds by issuing new debt or equity securities or otherwise. If we fail to raise sufficient capital when needed, we will not be able to complete our business plan. We are a development stage company and have generated no revenue to date.

 

This means that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills. This is because we have generated minimal revenues to date. There is no assurance we will ever profitability.

 

OFF-BALANCE SHEET ARRANGEMENTS

 

We do not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

 

 

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The company had no independent accountant review the financials for this period, in accordance with Rule 3-11 of Regulation S-X.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON FINANCIAL DISCLOSURE

 

None.

ITEM 9A. CONTROLS AND PROCEDURES

 

MANAGEMENT'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Securities Exchange Act of 1934 as a process designed by, or under the supervision of, the company's principal executive and principal financial officers and effected by the company's board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America and includes those policies and procedures that:

 

  • Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the company;
  • 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
  • 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 the financial statements.

 

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 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 presentation. Because of the inherent limitations of internal control, there is a risk that material misstatements may not be prevented or detected on a timely basis by internal control over financial reporting. However, these inherent limitations are known features of the financial reporting process. Therefore, it is possible to design into the process safeguards to reduce, though not eliminate, this risk.

 

As of March 31, 2014 management assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission ("COSO") and SEC guidance on conducting such assessments. Based on that evaluation, they concluded that, during the period covered by this report, such internal controls and procedures were not effective to detect the inappropriate application of US GAAP rules as more fully described below. This was due to deficiencies that existed in the design or operation of our internal controls over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses.

 

The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were:

(1) lack of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors on our board of directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures;

(2) inadequate segregation of duties consistent with control objectives; and

(3) ineffective controls over period end financial disclosure and reporting processes.

 

The aforementioned material weaknesses were identified by our Chief Executive Officer in connection with the review of our financial statements as of March 31, 2014.

 

Management believes that the material weaknesses set forth in items (2) and (3) above did not have an effect on our financial results. However, management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our board of directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.

 

This annual report does not include an attestation report of the Corporation's registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by the Corporation's registered public accounting firm pursuant to temporary rules of the SEC that permit the Corporation to provide only the management's report in this annual report.

 

MANAGEMENT'S REMEDIATION INITIATIVES

 

In an effort to remediate the identified material weaknesses and other deficiencies and enhance our internal controls, we have initiated, or plan to initiate, the following series of measures:

 

We will create a position to segregate duties consistent with control objectives and will increase our personnel resources and technical accounting expertise within the accounting function when funds are available to us. And, we plan to appoint one or more outside directors to our board of directors who shall be appointed to an audit committee resulting in a fully functioning audit committee who will undertake the oversight in the establishment and monitoring of required internal controls and procedures such as reviewing and approving estimates and assumptions made by management when funds are available to us.

 

Management believes that the appointment of one or more outside directors, who shall be appointed to a fully functioning audit committee, will remedy the lack of a functioning audit committee and a lack of a majority of outside directors on our Board.

 

We anticipate that these initiatives will be at least partially, if not fully, implemented by March 31, 2015. Additionally, we plan to test our updated controls and remediate our deficiencies by March 31, 2015.

 

CHANGES IN INTERNAL CONTROLS OVER FINANCIAL REPORTING

 

There was no change in our internal controls over financial reporting that occurred during the period covered by this report, which has materially affected, or is reasonably likely to materially affect, our internal controls over financial reporting.

 

 

PART III

 

ITEM 10.  DIRECTORS, EXECUTIVE OFFICERS AND CONTROL PERSONS

 

The names, ages and titles of our executive officers and director are as follows:

 

Name and Address of Executive Officer and/or Director

Age

Position

Robert Coleridge

Suite 676 – 1685 H Street, Blaine WA 98230

 

50

President and Director

Arnie De Witt III

1120  South Fairchild Street, Medical Lake, WA 99022

 

37

Director

 

Mr. Robert Coleridge is a long time Systems Analyst/Software Engineer with over 35 years' experience in the software industry, of which 12 of those years he served at Microsoft as a Senior Software Design Engineer. He was previously the CIO of Wikifamilies SA where he spearheaded the platform development and conceptualization of major concepts leading to patent acquisition of a number of revolutionary concepts. At Microsoft he spent the majority of his time in the areas of creating and building strategic and visionary working prototypes for a number of the executives, including Bill Gates and Steve Ballmer. While at Microsoft, Mr. Coleridge also had the opportunity to play key roles in the development and vision that was to become .NET and WCF. He designed and implemented Microsoft's first SOAP toolkit which today is better known as web services. Today more than 6 billion devices, including every smart phone, relies on the software that Mr. Coleridge helped create.

 

Over the past 15 years, Mr. DeWitt III has been providing sales and marketing consultation services to furniture manufacturers such as England furniture, a La-z-boy company, helping them build a retail base of furniture dealers. He has developed sales strategies, executed social media and conventional advertising campaigns, shot and published countless hours of HD promotional videos, and conducted hundreds of sales training sessions, garnering multiple awards in sales and customer service. Also an avid gardener and landscaper, Mr. DeWitt III has a passion for organic gardening techniques in food production. With experience in brand development, marketing and sales.

 

 

TERM OF OFFICE

 

Our directors have been appointed to hold office until the next annual meeting of our stockholders or until his successor is elected and qualified, or until he resigns or is removed in accordance with the provisions of the State of Nevada Statutes. Our officer is appointed by our Board of Directors and holds office until removed by the Board.

 

SIGNIFICANT EMPLOYEES

 

We have no significant employees other than our officer and/or directors who collectively devote approximately 20 hours per week to company matters.

 

Our officers and directors have not been the subject of any order, judgment, or decree of any court of competent jurisdiction, or any regulatory agency permanently or temporarily enjoining, barring, suspending or otherwise limited him from acting as an investment advisor, underwriter, broker or dealer in the securities industry, or as an affiliated person, director or employee of an investment company, bank, savings and loan association, or insurance company or from engaging in or continuing any conduct or practice in connection with any such activity or in connection with the purchase or sale of any securities.

 

Our officers and directors have not been convicted in any criminal proceeding (excluding traffic violations) nor is he subject of any currently pending criminal proceeding.

 

We conduct our business through agreements with consultants and arms-length third parties. We pay our consulting geologist the usual and customary rates received by geologists performing similar consulting services.

 

CODE OF ETHICS

 

Our board of directors adopted our code of ethical conduct that applies to all of our employees and directors, including our principal executive officer, principal financial officer, principal accounting officer or controller, and persons performing similar functions.

 

We believe the adoption of our Code of Ethical Conduct is consistent with the requirements of the Sarbanes-Oxley Act of 2002.

 

Our Code of Ethical Conduct is designed to deter wrongdoing and to promote:

 

 

  • Honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
  • Full, fair, accurate, timely and understandable disclosure in reports and documents that we file or submit to the Securities & Exchange Commission and in other public communications made by us;
  • Compliance with applicable governmental laws, rules and regulations;
  • The prompt internal reporting to an appropriate person or persons identified in the code of violations of our Code of Ethical Conduct; and
  • Accountability for adherence to the Code.

 

ITEM 11.  EXECUTIVE COMPENSATION

Summary Compensation Table

 

 

 

  Long Term Compensation

 

 

Annual Compensation

Awards

Payouts

(a)

(b)

(c)

(e)

(f)

(g)

(h)

(i)

 

Name and

Principal   position

 

 

Year

 

 

Salary

Other

annual Comp.

($)

Restricted

stock awards

($)

 

Options/ SAR

(#)

 

LTIP payouts

($)

All other

compensation

($)

 

Charles Irizarry

Ex-President, CFO

and Director

2011

2012

2013

2014

-0-

-0-

-0-

-0-

-0-

-0-

12,500

27,000

-0-

-0-

-0-

-0-

 

-0-

-0-

-0-

-0-

-0-

-0-

-0-

-0-

-0-

-0-

-0-

15,000



Robert Coleridge

President & Director

2014

-0-

-0-

 

-0-

-0-

-0-

 

-0-

 

Compensation of Directors

 

We have no standard arrangement to compensate directors for their services in their capacity as directors.  Mr. Coleridge received 11,000,000 shares of the Company on May 2, 2014. Mr. De Witt has entered into a three year agreement with the Company where he is paid 10,000,000 shares of the Company valued at $200,000. These shares are released on a monthly basis of 277,778 per month. Should Mr. De Witt leave the company before the three year term the unearned shares will be returned to treasury. Directors are not paid for meetings attended.   All travel and lodging expenses associated with corporate matters are reimbursed by us, if and when incurred.

 

Consulting Agreements with Executive Officers and Directors

 

Mr. Irizarry received a monthly stipend of $3,500 per month. Mr. De Witt has entered into a three year agreement with the Company where he is paid 10,000,000 shares of the Company. These shares are released on a monthly basis of 277,778 per month. Should Mr. De Witt leave the company before the three year term the unearned shares will be returned to treasury.

 

Stock Option Plan

 

We have never established any form of stock option plan for the benefit of our directors, officers or future employees.  We do not have a long-term incentive plan nor do we have a defined benefit, pension plan, profit sharing or other retirement plan.

 

Bonuses and Deferred Compensation

 

None

 

Compensation Pursuant to Plans

 

None

 

Pension Table

 

None

 

Termination of Employment

 

There are no compensatory plans or arrangements, including payments to be received from us, with respect to any person named in Summary of Compensation set out above which would in any way result in payments to any such person because of his resignation, retirement, or other termination of such person’s employment with us, or any change in control of us, or a change in the person’s responsibilities following a change in control of us.

 

 

Compliance with Section 16 (a) of the Exchange Act

 

 

We know of no director or officer, (“Reporting Person”) that failed to file any reports required to be furnished pursuant to Section 16(a).  We do not know whether the beneficial owner of more than ten percent of any class of equity securities of our stock registered pursuant to Section 12 (“Reporting Person”) has filed any reports required to be furnished pursuant to Section 16(a)

 

 

 

 

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

The following table sets forth certain information concerning the number of shares of our common stock owned beneficially as of March 31, 2014 by:

      i.        each person (including any group) known to us to own more than five percent (5%) of any class of our voting securities,

     ii.        our directors, and or

    iii.        our officer.

Unless otherwise indicated, the stockholder listed possesses sole voting and investment power with respect to the shares shown.

 

Title of Class of Common Stock (1)

Name and Address of Beneficial Owner

Amount and Percentage of Beneficial Owner

Common Stock

Robert Coleridge

Suite 676 – 1685 H Street, Blaine WA 98230

 

11,000,000 – 47%

 

Arnie De Witt III

1120  South Fairchild Street, Medical Lake, WA 99022

 

10,000,000 – 43%

Holders of More than 5% of Our Common Stock

 

----------

(1)  A beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (i) voting power, which includes the power to vote, or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares. Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the      shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the      information is provided. In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights. As a result, the percentage of outstanding shares of any person as shown in this table does not necessarily reflect the person's actual ownership or voting power with respect to the number of shares of common stock actually outstanding on June 26, 2014.

 

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

 

None of our directors, or officers, any proposed nominee for election as a director, any person who beneficially owns, directly or indirectly, shares carrying more than 10% of the voting rights attached to all of our outstanding shares, any promoter, or any relative or spouse of any of the foregoing persons has any material interest, direct or indirect, in any transaction since our incorporation or in any presently proposed transaction which, in either case, has or will materially affect us.

 

Our management is involved in other business activities and may, in the future become involved in other business opportunities. If a specific business opportunity becomes available, such persons may face a conflict in selecting between our business and their other business interests. In the event that a conflict of interest arises at a meeting of our directors, a director who has such a conflict will disclose his interest in a proposed transaction and will abstain from voting for or against the approval of such transaction.

 

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES -

Not applicable

PART IV

 

ITEM 15. EXHIBITS

 

Exhibit

Number                   Description

------                        -----------

3(i)          Articles of Incorporation*

 

3(ii)         Bylaws*

 

10.1        Option Agreement dated January 10, 2011 with Sundance Gold Ltd. (incorporated by reference to the Form 8 filed January 21, 2011)

 

10-2        Share Exchange Agreement dated April 8, 2014 with the owners of Indie Growers Union LLC (incorporated by reference to the Form 8 filed April 8, 2014)

 

9-01        Engagement Agreement dated April 28, 2014 with Arnie De Witt III (incorporated by reference to the Form 8 filed April 28, 2014)

 

31.1          Sec. 302 Certification of Chief Executive Officer

 

31.2          Sec. 302 Certification of Chief Financial Officer

 

32.1          Sec. 906 Certification of Chief Executive Officer

 

32.2          Sec. 906 Certification of Chief Financial Officer

 

101           Interactive data files pursuant to Rule 405 of Regulation S-T

 

 

----------

*    Filed with the SEC as an exhibit to our Form SB-1 Registration Statement

     originally filed on December 19, 2006.

 

                                 

 

 SIGNATURES

 

Pursuant to the requirements of Section 13(a) or 15(d) 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.

 

June 27, 2014         Indie Growers Association (formerly Viking Minerals, Inc.)

 

                                       By: /s/ Robert Coleridge

                                           -------------------------------------

                                           Robert Coleridge, President and

                                           Chief Financial Officer

 

 

 

 

 


Indie Growers Association

(formerly Viking Minerals, Inc.)

(a Pre-Exploration Stage Company)

Balance Sheets

     
     
 

March 31, 2014

March 31, 2013

ASSETS

   

CURRENT ASSETS

   

  Cash

$          37,319

$                    - 

 

37,319

                       - 

TOTAL ASSETS

$          37,319

$                    - 

     

LIABILITIES

   

CURRENT LIABILITIES

   

  Accounts payable

$          26,438

$          60,675

  Advances from related party

38,250

               -

  Advance

119,425

                 3,438

 

TOTAL CURRENT LIABILITIES

              

184,113

         

      64,113

     

STOCKHOLDERS' DEFICIT

   

Common stock, $0.001 par value, Authorized - 400,000,000 common shares,   Issued as of March 31, 2014 – 1,159,736 shares and as of March 31,2013 – 997,236

             1,160

             997

Additional paid-in capital

        30,912,340

        30,847,503

Deficit accumulated during exploration period

       (31,060,294)

       (30,912,613)

 

TOTAL STOCKHOLDERS' DEFICIT

           

  (146,794)

    

         (64,113)

 

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

 

  $        37,319

 

$                   -

     

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

                             

 

 

 

Indie Growers Association

(formerly Viking Minerals, Inc.)

(a Pre-Exploration Stage Company)

Statements of Operations

       
 

For the year ended

For the year ended

 From inception (March 24, 2006) to 

 

March 31, 2014

March 31, 2013

March 31, 2014

       

REVENUE

$                - 

$                - 

$                    - 

       

EXPENSES

     

Loss on Forfeiture of Deposit

50,000

-

50,000

  Recognition of an Impairment Loss (Property Expenses)

             -

             131,000

             181,624

  Loss on Extinguishment of debt

-

30,621,661

30,621,661

  Office

15

3,810

68,906

  Professional

97,666

13,487

111,153

  Communications

-

26,950

26,950

TOTAL EXPENSES

147,681

30,796,908

31,060,294

       

Net loss from operations

(147,681)

(30,796,908)

(31,060,294)

       

NET INCOME (LOSS)

$(147,681)

$(30,796,908)

$(31,060,294)

       

BASIC & DILUTED (LOSS) PER COMMON SHARE

$           (0.14)

$           (51.00)

 
       

WEIGHTED AVERAGE NUMBER OF SHARES (Restated)

       1,069,633

       603,908

 
       
       
       
       

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

 

 

 

Indie Growers Association

(formerly Viking Minerals, Inc.)

(a Pre-Exploration Stage Company)

STATEMENT OF STOCKHOLDERS' DEFICIT - RESTATED

From Inception (March 24, 2006) to March 31, 2014

 

Common Stock

 

Deficit Accumulated During Exploration

 

 

 

Shares

Amount

Paid-in
Capital

Stage

Sockholder
Deficit

 

           

 

Balace March 24, 2006 (date of inception)

         

 

Issuance of common stock

1,750

$       2

$     19,998

$              - 

 $    20,000

 

Net loss year ended March 31, 2007

 (30,600)

 (30,600)

 

Balance March 31, 2007

1,750

2

19,998

 (30,600)

 (10,600)

 

           

 

Net loss year ended March 31, 2008

 (2,812)

 (2,812)

 

Balance March 31, 2008

1,750

2

19,998

 (33,412)

 (13,412)

 

           

 

Net loss year ended March 31, 2009

 (3,162)

 (3,162)

 

Balance March 31, 2009

1,750

2

19,998

 (36,574)

 (16,574)

 

           

 

Net loss year ended March 31, 2010

 (350)

 (350)

 

Balance March 31, 2010

1,750

2

19,998

 (36,924)

 (16,924)

 

           

 

Shares issued for services

18

-

7,500

7,500

 

Net loss year ended March 31, 2011

 (49,210)

 (49,210)

 

Balance March 31, 2011

1,768

2

27,498

 (86,134)

 (58,634)

 

           

 

Shares canceled, June 23, 2011

 (1,228)

 (1)

1

 

Net loss year ended March 31, 2012

 (29,571)

 (29,571)

 

Balance March 31, 2012

540

1

27,499

 (115,705)

 (88,205)

 

           

 

Shares issued for property

655,000

655

130,345

131,000

 

Shares issued for debt

342,397

342

30,689,658

30,690,000

 

Net loss year ended March 31, 2013

(30,796,908)

(30,796,908)

 

Balance, March 31, 2013

997,937

998

30,847,502

(30,912,613)

(64,113)

 

 

 

 

 

 

 

 

Shares issued for services

87,500

87

34,913

-

35,000

 

Shares issued for debt

75,000

75

29,925

-

30,000

 

Net loss year ended March 31, 2014

-

-

-

(147,681)

(147,681)

 

 

Balance March 31, 2014

 

1,160,437

 

$1,160

      

   $30,912,340

      

$(31,060,294)

 

$   (146,794)

 

           

 

           

 

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

 

                     

 

Indie Growers Association

(formerly Viking Minerals, Inc.)

(a Pre-Exploration Stage Company)

STATEMENTS OF CASH FLOWS

From Inception (March 24, 2006) to March 31, 2014

 

For the year ended

For the year ended

 From inception (March 24, 2006) to 

 

March 31, 2014

March 31, 2013

March 31, 2014

OPERATING ACTIVITIES

     

  Net income (loss)

$(147,681)

$(30,796,908)

$ (31,060,294)

  Loss on Forfeiture of Deposit

50,000

-

50,000

  Recognition of impairment loss (Mineral Claim)

             -

             131,000

181,624

  Loss on Extinguishment of debt

-

30,621,661

30,621,661

  Stock issued for services

35,000

42,500

  Stock issued for debt

30,000

88,290

98,340

  Accounts payable

 (34,237)

 (15,374)

26,437

 

NET CASH USED IN OPERATING ACTIVITIES

          

     (66,918)

             

  28,669

 

(39,732)

       

INVESTING ACTIVITIES

     

  Deposit on properties

(50,000)

-

(50,000)

  Purchase of mineral claims

 - 

 - 

 (50,624)

 

NET CASH USED IN INVESTING ACTIVITIES

                       (50,000)

                       - 

              (100,624)

       

FINANCING ACTIVITIES

     

  Advances

115,986

(21,563)

119,424

  Advances from related party

38,250

(7,106)

38,250

  Common stock issued for cash

20,000

 

NET CASH USED IN FINANCING ACTIVITIES

              

   154,236

               

  (28,669 )

 

177,674

       

NET CHANGE IN CASH

37,318

-

37,318

       

CASH, at beginning of period

                       - 

CASH AT END OF PERIOD

$         37,318

$                 -

$           37,318

       

CASH PAID FOR:

     

  Interest

$                 - 

$                 - 

$                  - 

  Income Tax

$                 - 

$                 - 

$                  - 

SHARES PAID FOR:

     

  Property

-

655,000

655,000

  Debt Settlement

7,500

341,696

349,196

 

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

 

 

INDIE GROWERS ASSOCIATION

(FORMERLY VIKING MINERALS, INC.)

 (A Pre-Exploration Stage Company)

NOTES TO FINANCIAL STATEMENTS

March 31, 2014

 

 

1. ORGANIZATION

 

The company was incorporated under the laws of the state of Nevada on March 24, 2006 with 75,000,000 authorized common shares with a par value of $0.001.  In January 2011 the company filed an amendment with the state of Nevada to increase the authorized shares to 400,000,000 shares of common stock at a par value of $0.001 per share. On April 14, 2014 the Company’s name was changed to Indie Growers Association from Viking Minerals, Inc.

 

The company was organized for the purpose of acquiring and developing mineral claims and is in the pre-exploration stage.

 

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Accounting Methods

 

The company recognizes income and expenses based on the accrual method of accounting.

 

Dividend Policy

 

The company has not yet adapted a policy regarding payment of dividends.

 

Income Tax

 

The company utilizes the liability method of accounting for income taxes.  Under the liability method deferred tax assets and liabilities are determined based on the differences between financial reporting and the tax bases of the assets and liabilities and are measured using the enacted tax rates and laws that will be in effect, when the differences are expected to be reverse. An allowance against deferred tax assets is recorded, when it is more likely than not that such tax benefits will not be realized.

 

Financial and Concentrations Risk

 

The company has no financial and concentrations risks.

 

Basic and Diluted Net Income (loss) Per Share

 

Basic net income (loss) per share amounts are computed based on the weighted average number of shares actually outstanding.  Diluted net income (loss) per share  amounts are  computed  using the  weighted  average  number of common and common  equivalent  shares  outstanding  as if  shares  had been  issued  on the exercise of the common share rights unless the exercise becomes anti-dilutive and then the basic and diluted per share amounts are the same.

 

Statement of Cash Flows

 

For the purposes of the statement of cash flows, the Company considers all highly liquid investments with a maturity of three months or less to be cash equivalents.

 

Revenue Recognition

 

Revenue is recognized on the sale and delivery of a product or the completion of a service provided.

 

Advertising and Market Development

 

The company expenses advertising and market development costs are research data expenses.

 

Impairment of Long-Lived Assets

 

The Company reviews and evaluates long-lived assets for impairment when events or changes in circumstances indicate that the related carrying amounts may not be recoverable.  The assets are subject to impairment consideration under ASC 360-10-35-17 if events or circumstances indicate that their carrying amount might not be recoverable.  When the Company determines that an impairment analysis should be done, the analysis will be performed using the rules of ASC 930-360-35, Asset Impairment, and 360-10-15-3 through 15-5, Impairment or Disposal of Long-Lived Assets.

 

Environmental Requirements

 

At the report date environmental requirements related to a formally held mineral claim are unknown and therefore any estimate of future costs cannot be made.

 

Mineral Property Acquisitions Costs

 

Costs of acquisition and option costs of mineral rights are capitalized upon acquisition. Mine development costs incurred to develop new ore deposits, to expand the capacity of mines, or to develop mine areas substantially in advance of current production are also capitalized once proven and probable reserves exist and the property is a commercially mineable property. Costs incurred to maintain current production or to maintain assets on a standby basis are charged to operations.  If the Company does not continue with   exploration after the completion of the feasibility study, the mineral rights will be expensed at that time. Costs of abandoned projects are charged to mining costs including related property and equipment costs. To determine if these costs are in excess of their recoverable  amount periodic  evaluation of carrying value of capitalized  costs and any related property and equipment costs are based upon expected future cash flows and/or  estimated  salvage value in accordance with  Accounting  Standards Codification (ASC) 360-10-35-15, Impairment or Disposal of Long-Lived Assets.

 

Various factors could impact our ability to achieve forecasted production schedules. Additionally,  commodity prices, capital expenditure requirements and reclamation costs could differ from the assumptions the Company may use in cash flow models from exploration stage mineral  interests  involves further risks in addition to those  factors  applicable  to mineral  interests  where  proven and

proven and probable  reserves  have been  identified,  due to the lower level of confidence  that the  identified  mineralized  material can  ultimately be mined economically.

 

Estimates and Assumptions

 

Management uses estimates and assumptions in preparing financial statements in accordance with general accepted accounting principles.  Those estimates and assumptions affect the reported amounts of the assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses.  Actual results could vary from the estimates that were assumed in preparing these financial statements.

 

Financial Instruments

 

The carrying amounts of financial instruments are considered by management to be their estimated fair values due to their short term maturities.

 

Recent Accounting Pronouncements

 

The Company does not expect that the adoption of other recent accounting pronouncements will have a material impact on its financial statements.

 

3. ACQUISITION OF A PROPERTY

 

On April 28, 2014, the Company entered into an agreement to acquire a 30% interest, as well as a long term lease on the remaining 70%, of River Ridge Sunshine Farms, a $1.2 Million agricultural property in Prosser, Washington, in exchange for 20 million restricted shares of the common stock of the Company. The acquisition and long term lease is to take effect no later than May 31st following a short due diligence period. The 40 acre property is subdivided into 15 separate parcels, one of which has already been leased to a licensed grower with construction well under way on greenhouses and ancillary buildings. Over the six month period immediately following the closing, the Company will invest $800,000 for improvements to the property including greenhouse construction on two additional parcels as well as roads and utilities to the other parcels. Under the sublease agreement with the current licensee, a portion of the revenue from the sale of every crop will be paid to the Company as a royalty. The Agreement has been extended to June 30, 2014.

On April 8, 2014, the Company entered into a binding share exchange agreement, fully executed by all parties, between the unit holders of Indie Growers Union LLC of Washington State and Viking Minerals Inc. (now known as Indie Growers Association Inc.). Under the terms of the agreement, the Company shall issue a total of 87,500,000 shares of common stock in exchange for all of the outstanding member units and assets of Indie Growers Union LLC on or before April 30, 2014. In addition, the Company has forwardeda total of $185,000 to Indie Growers Union LLC as a good faith payment. This Agreement was terminated by the Company on April 28, 2014. The $185,000 deposit was forfeited of which $50,000 is recognized as a loss in the current year.

On July 10, 2012, the Company entered into an agreement with GMM Global Multi-Mining Diversified Group Limited (“GMM”) wherein GMM assigned and transferred a 60% interest in a joint venture to the company for 131,000,000 shares of the company’s common stock (valued at $131,000, per the agreement) and $500,000 cash. The 131,000,000 shares of common stock were issued on July 10, 2012; however, the Company failed to pay the required $500,000 and forfeited its right to the 60% interest as of April 1, 2013. The Company recorded a loss on impairment of $131,000.

 

4. CAPITAL STOCK

 

At inception the company issued 500 private placement common shares for cash of $20,000. On May 18, 2010 the company issued an additional 0.5 shares for services. The value of these shares was calculated by using 75 hours of consulting at a charge rate of $100 per hour.

 

In January 2011, the company executed a forward split of its common stock on the basis of 35 new common shares for each existing 1 common share. The record date for the action was January 27, 2011, and the payment date was January 28, 2011. The forward split was payable as a dividend. All share references in these financial statements have been retroactively adjusted for this forward split.

 

On June 23, 2011, the company received notice that 1,228 common outstanding shares were cancelled. After this event the current total issued and outstanding number of shares was 540 common shares.

 

On July 5, 2012, the company executed a reverse split decreasing shares by 1 for 1000.  All share references in these financial statements have been retroactively adjusted for this reverse split. On April 18, 2014, the company executed a reverse split decreasing shares by 1 for 200.

 

On July 10, 2012, the company completed an agreement with GMM Global Multi-Mining Diversified Group Limited (“GMM”) wherein GMM assigned and transferred a 60% interest in a joint venture to the company for 655,000 shares of the company’s common stock (valued at $131,000, per the agreement) and $500,000 cash. The 655,000 shares of common stock were issued on July 10, 2012; however, the Company failed to pay the required $500,000 and forfeited its right to the 60% interest. The Company recorded a loss on impairment of $131,000.

 

On July 12, 2012, the company completed a transaction whereby it issued 96,250 shares of its common stock for $19,950 in debt. The debt was comprised of prior advances from an unrelated third party. This transaction was accounted for as an extinguishment of debt, in accordance with ASC 470-50. The shares were valued at $300.00 per share ($1.50 per share pre-reverse split of 200 to 1), which was the price of the Company’s common stock on July 12, 2012. The difference between the price and the net carrying amount of the extinguished debt was recognized as a loss on extinguishment of debt in the statement of operations, in the amount of $29,905,050.

 

On October 31, 2012, the company completed a transaction whereby it issued 75,000 shares of its common stock for $15,000 in debt. The debt was comprised of advances from unrelated third parties. This transaction was accounted for as an extinguishment of debt, in accordance with ASC 470-50. The shares were valued at $4.50 per share ($0.0225 per share pre-reverse split of 200 to 1), which was the price of the Company’s common stock on October 31, 2012. The difference between the price and the net carrying amount of the extinguished debt was recognized as a loss on extinguishment of debt in the statement of operations, in the amount of $322,500.

 

On January 31, 2013, the company completed a transaction whereby it issued 166,946 shares of its common stock for $33,389 in debt. The debt was comprised of advances from unrelated third parties. This transaction was accounted for as an extinguishment of debt, in accordance with ASC 470-50. The shares were valued at $2.56 per share ($0.0128 per share pre-reverse split of 200 to 1),, which was the price of the Company’s common stock on January 31, 2013. The difference between the price and the net carrying amount of the extinguished debt was recognized as a loss on extinguishment of debt in the statement of operations, in the amount of $394,111.

 

On August 7, 2013, the company completed a transaction whereby it issued 87,500 shares of its common stock for $17,500 of unpaid compensation owned to this previous director. The transaction was accounted for as an extinguishment of debt, in accordance with ASC 470-50. The shares were valued at $0.40 per share ($0.002 per share pre-reverse split of 200 to 1), which was the price of the Company’s common stock on August 7, 2013. The difference between the price and the net carrying amount of the extinguished debt was recognized as a loss on extinguishment of debt in the statement of operations, in the amount of $35,000.

 

On January 13, 2014, the company completed a transaction whereby it issued 75,000 shares of its common stock for $15,000 of debt. The transaction was accounted for as an extinguishment of debt, in accordance with ASC 470-50. The shares were valued at $0.40 per share ($0.002 per share pre-reverse split of 200 to 1), which was the price of the Company’s common stock on January 13, 2014. The difference between the price and the net carrying amount of the extinguished debt was recognized as a loss on extinguishment of debt in the statement of operations, in the amount of $30,000.

 

 

On May 2, 2014, the Company issued 21,000,000 shares to its directors. At the time of the issue the Company’s shares were valued at $2.30 per share. The compensation expense will be $48,300,000.

 

 

5. SIGNIFICANT TRANSACTIONS WITH RELATED PARTIES

 

During the year ended March 31, 2014, the CEO had advanced $Nil ($Nil – 2013) to the Company. The Company owes the CEO $28,750 which is included in advances from related parties for management fees.

 

 

6. GOING CONCERN

 

The accompanying financial statements have been prepared assuming that the company will continue as a going concern. The company does not have a sufficient working capital for its planned activity, and to service its debt, which raises substantial doubt about its ability to continue as a going concern.

 

Continuation of the company as a going concern is dependent upon obtaining additional working capital and the management of the company has developed a strategy which it believes will accomplish this objective through short term loans from an officer-director, and additional equity investments, which will enable the company to continue operations for the coming year.

 

7. SUBSEQUENT EVENTS

 

The share capital has been restated for the 200 to 1 reverse stock split enacted during April 2014. Furthermore as discussed in Note 4 above, there were 21,000,000 shares issued to current directors subsequent to year end.

 

 

 

 

Exhibit  99.1

Rule 13a-14(a) 15(d)-14(a) Certification
By Chief Executive Officer

I, Robert Coleridge, certify that:

1.  

I have reviewed this Form 10-K of Indie Growers Association (the “small business issuer”);

2.

Based on my knowledge, this report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in the light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.  

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

4.  

The small business issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

(a)  

Designed such disclosure controls and procedures, or cause such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)  

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

(c)  

Evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as the end of the period covered by this report based on such evaluation; and

(d)  

Disclosed in this report any changes in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter (the small business issuer’s forth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control over the financial reporting; and

5.  

The small business issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financing reporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions):

(a)  

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information; and

(b)  

Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.

     

 

Date: June 26, 2014

 

/s Robert Coleridge

  Robert Coleridge

 Chief Executive Officer and Director

 

 

 

Exhibit 99.2

 

CERTIFICATE PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the Annual Report (the “Report”) on the Form 10-K of Indie Growers Association (the “Company”) for the year ended March 31, 2014, as filed with the Securities and Exchange Commission on the date hereof, I, Robert Coleridge, Chief Executive Officer, President and Director, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

 

a.       The Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities and Exchange Act of 1934, as amended; and

 

b.       The information contained in this Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

 

Date: June 26, 2014

 

 

/s Robert Coleridge                                

   Robert Coleridge

 Chief Executive Officer and Director 

 

Exhibit 99.3

 

Rule 13a-14(a) 15(d)-14(a) Certification

By Chief Financial Officer

 

I, Robert Coleridge, certify that:

 

      1.      I have reviewed this Form 10-K of Indie Growers Association (the “small business issue

 

2.

Based on my knowledge, this report does not contain any untrue statements of a material fact or omit to state a material fact necessary to make the statements made, in the light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3.

Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;

 

4.

The small business issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

(a)  

Designed such disclosure controls and procedures, or cause such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)  

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, 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;

(c)  

Evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as the end of the period covered by this report based on such evaluation; and

(d)  

Disclosed in this report any changes in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter (the small business issuer’s forth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control over the financial reporting; and

 

5.

The small business issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financing reporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions):

(a)  

All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information; and

(b)  

Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.

         
 

 

Date: June 26, 2014

 

/s Robert Coleridge                                

   Robert Coleridge

   Chief Financial Officer, Secretary Treasurer and Director 

 

  

Exhibit 99.4

 

 

CERTIFICATE PURSUANT TO

18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

In connection with the Annual Report (the “Report”) on the Form 10-K of Indie Growers Association (the “Company”) for the year ended March 31, 2014, as filed with the Securities and Exchange Commission on the date hereof, I, Robert Coleridge Chief Financial Officer, Secretary Treasurer and Director, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

 

1.    The Report fully complies with the requirements of Section 13 (a) or 15 (d) of the Securities and Exchange Act of 1934, as amended; and

 

2.     The information contained in this Report fairly presents, in all material respects, the financial condition and results of operation of the Company.

 

 

Date: June 26, 2014

 

 

/s Robert Coleridge                                

   Robert Coleridge

   Chief Financial Officer, Secretary Treasurer and Director