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EX-31.1 - FBEC Worldwide Inc.fbec10qex311063014.htm
EX-32.1 - FBEC Worldwide Inc.fbec10qex321063014.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q
(Mark One)

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

For the quarterly period ended
June 30, 2014
 
or
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from
 
to
 

Commission File No.
000-52297

FRONTIER BEVERAGE COMPANY, INC.
(Exact name of registrant as specified in its charter)

Nevada
 
06-1678089
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)

311 Division St., Carson City, NV 89701
10010
(Address of principal executive offices)
 
(Zip Code)
307-222-6000
(Registrant’s telephone number, including area code)

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 whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes  x  No  ¨

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

Large accelerated filer  ¨                                                                                     Accelerated filer  ¨
Non-accelerated filer ¨                                                                           Smaller reporting company x

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

The number of shares outstanding of the Registrant’s Common Stock as of September 2, 2014 was 383,692,111.
 
 
 
 

 
 
FRONTIER BEVERAGE COMPANY, INC.
INDEX
         
       
Page
PART I - FINANCIAL INFORMATION
   
         
 
Item. 1
Financial Statements
   
         
   
Condensed Balance Sheets as of June 30, 2014 (Unaudited)
3
         
   
Condensed Statements of Operations for the three months ended June 30, 2014 and for the period of January 13, 2014 (date of inception) through June 30, 2014  (Unaudited)
4
         
   
Condensed Statements of Cash Flows for the period of January 13, 2014 (date of inception) through June 30, 2014 (Unaudited)
5
         
   
Notes to the Unaudited Condensed  Financial Statements
 
6
         
 
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
15
         
 
Item 3.
Quantitative and Qualitative Disclosures about Market Risks
 
18
         
 
Item 4.
Controls and Procedures
 
18
         
Part II - OTHER INFORMATION
   
         
 
Item 1.
Legal Proceedings
 
20
         
 
Item 1A.
Risk Factors
 
20
         
 
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
 
20
         
 
Item 3.
Defaults Upon Senior Securities
 
20
         
 
Item 4.
Mine Safety Disclosures
 
20
         
 
Item 5.
Other Information
 
20
         
 
Item 6.
Exhibits
 
21
 
 
 
2

 
 
FRONTIER BEVERAGE COMPANY, INC.
 
CONDENSED BALANCE SHEETS
 
       
   
June 30, 2014
 
   
(unaudited)
 
ASSETS
     
Current Assets:
     
Cash
  $ 5,135  
         
     Total assets
  $ 5,135  
         
 LIABILITIES AND STOCKHOLDERS' DEFICIT
       
 
       
Current Liabilities:
       
Convertible notes payable, net of debt discount of $98,415
  $ 262,768  
Loans payable
    22,675  
Accounts payable
    7,681  
Derivative liabilities
    634,938  
     Total current liabilities
    928,062  
         
         
Commitments and Contingencies
       
         
Stockholders' Deficit:
       
   Preferred stock - par value $0.001; 100,000,000 shares authorized;
       
10,000 Series A convertible preferred shares designated, 10,000 shares issued and outstanding
     10  
   Common stock - par value $0.001; 500,000,000 shares authorized;
       
    270,081,000  shares issued and outstanding
    270,081  
   Additional paid-in capital
    370,573  
   Accumulated deficit
    (1,563,591 )
        Total stockholders' deficit
     (922,927
         
     Total liabilities and stockholders' deficit
   5,135  
 
The accompanying footnotes are an integral part of these unaudited condensed financial statements.
 
 
 
3

 
 
FRONTIER BEVERAGE COMPANY, INC.
 
CONDENSED STATEMENTS OF OPERATIONS
 
UNAUDITED
 
             
             
             
         
For the period from
 
         
January 13, 2014
 
         
(date of inception)
 
   
Three Months Ended
   
through
 
   
June 30, 2014
   
June 30, 2014
 
             
Revenues, net
  $ -     $ -  
                 
Cost of goods sold
    -       -  
                 
Gross profit
    -       -  
                 
Operating expenses
               
Selling, general and administrative
    116,397       204,064  
Bad debt expense      100,613        100,613  
     Total operating expenses
    217,010       200,451  
                 
Loss from operations
    (217,010 )     (304,677 )
                 
Other income (expenses)
               
Gain (loss) on debt settlement
    19,454       (59,776 )
Gain in fair value of derivative liability
    34,260       271,158  
Loss on conversion of debt
    (395 )     (395 )
Interest expense
    (180,240 )     (188,174 )
           Total other income (expense)
    (126,921 )     22,813  
                 
Loss before taxes
    (343,931 )     (281,864 )
Provision for income taxes
    -       -  
                 
Net loss
  $ (343,931 )   $ (281,864 )
                 
Loss per share, basic and diluted
  $ (0.00 )   $ (0.00 )
Weighted average number of shares outstanding,
         
basic and diluted
    227,663,418       187,752,271  
 
The accompanying footnotes are an integral part of these unaudited condensed financial statements.
 
 
 
4

 
 
FRONTIER BEVERAGE COMPANY, INC.
 
CONDENSED STATEMENTS OF CASH FLOWS
 
UNAUDITED
 
       
   
For the period from
 
   
January 13,2014
 
   
(date of inception)
 
   
through
 
   
June 30, 2014
 
       
CASH FLOWS FROM OPERATING ACTIVITIES
     
  Net loss
  $ (281,864 )
     Adjustments to reconcile net loss to net cash used in
       
        operating activities:
       
     Amortization of debt discount
    54,929  
     Bad debt expense
    100,613  
     Gain on change in fair value of derivative liability
    (271,159 )
     Non-cash interest
    147,586  
     Loss on debt settlement
    59,776  
     Loss on conversion of debt
    395  
     Stock for services
    61,700  
       Changes in operating assets and liabilities:
       
             Accounts payable
    73,803  
             Accrued expenses and other current liabilities
    9,356  
         
Net cash flows used in operating activities
    (44,865 )
         
CASH FLOWS FROM INVESTING ACTIVITIES
    -  
         
CASH FLOWS FROM FINANCING ACTIVITIES
       
         
  Proceeds from convertible notes payable
    50,000  
         
Net cash flows provided by financing activities
    50,000  
         
Increase in cash
    5,135  
Cash, beginning of period
    -  
Cash, end of period
  $ 5,135  
         
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION:
 
         
Interest paid
  $ -  
Income taxes paid
  $ -  
SUPPLEMENTAL DISCLOSURES OF NON CASH INVESTING AND FINANCING ACTIVITIES  
Shares issued for settlement of payables
  $ 129,001  
Shares issued for reserve on convertible note
  $ 15,000  
Recapitalization effect
  $ 1,218,727  
Shares issued for conversion of notes payables
  $ 89,500  
Convertible notes payable issud for settlement of payables
  $ 103,344  
Sale of subsidiary
  $ 143,942  
Services to be received as consideration for sale of subsidiary    10,000  
Extinguishment of derivative liabilty
  $ 52,105  
Derivative liability at inception     281,871  
 
The accompanying footnotes are an integral part of these unaudited condensed financial statements.
 
 
 
5

 
 
FRONTIER BEVERAGE COMPANY, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
JUNE 30, 2014
 
 
NOTE 1 – BASIS OF PRESENTATION AND RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

Interim Financial Reporting

While the information presented in the accompanying interim financial statements is unaudited, it includes all adjustments, which are, in the opinion of management, necessary to present fairly the financial position, results of operations and cash flows for the interim periods presented in accordance with generally accepted accounting principles in the United States of America ("GAAP").  These interim financial statements have adjustments related to the accounting for a reverse acquisition completed on February 3, 2014. The acquired company did not exist at the end of this three and six month period in 2013 and therefore, no comparative data is reflected for the period ending June 30, 2013 or at the audit period ending December 31, 2013. For the Company, Frontier Beverage Company, Inc. (the “Company”),  all adjustments are of a normal, recurring nature.  Interim financial statements and the notes thereto do not contain all of the disclosures normally found in year-end audited financial statements and these Notes to Financial Statements are abbreviated and contain only certain disclosures related to the three and six month period ended June 30, 2014.  It is suggested that these interim financial statements be read in conjunction with our audited financial statements and related notes for the year ended December 31, 2013 included in our Form 10-K filed with the Securities Exchange Commission on April 16, 2014.  Operating results for the period from January 13, 2014 (date of inception) through ended June 30, 2014 are not necessarily indicative of the results that can be expected for the period from January 13, 2014 (date of inception) through December 31, 2014.

Basis of presentation and going concern uncertainty

The accompanying unaudited condensed financial statements have been prepared in conformity with GAAP, which contemplates continuation of the Company as a going concern, which is dependent upon the Company's ability to establish itself as a profitable business.  At June 30, 2014, the Company has an accumulated deficit of $1,563,591 and has incurred net loss of $281,864 from continuing operations for the period from January 13, 2014 (date of inception) through June 30, 2014.  The Company’s ability to continue in business is dependent upon obtaining sufficient financing or attaining profitable operations.  However, there can be no assurance that management will be successful in obtaining additional funding or in attaining profitable operations, and therefore, these matters raise substantial doubt about the Company's ability to continue as a going concern.  These unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties, nor do they include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should the Company be unable to continue in operation.

Change of Control

On July 1, 2013, an unrelated third party acquired an aggregate of 15,978,000 shares of Common Stock of the Company constituting approximately 85% of the Company’s issued and outstanding Common Stock.

On October 9, 2013, the Company entered into share exchange agreement to acquire 100% of the issued and outstanding share capital with Gallant Acquisition Corp. (GAC) the 100% owner of all of the issued and outstanding share capital of 22 Social Club Productions (22 SCP) and its subsidiaries, Blue 22 Entertainment and Appquest, Inc. for 140,000,000 common shares of the Company and 5,000,000 shares of common stock of the Company to Appquest, Inc. Effectively, GAC held 89% of the issued and outstanding common shares of the Company and the transaction has been accounted for as a reverse merger, where 22 SCP is deemed to be the acquirer and the surviving entity for accounting purposes.
 
 
 
6

 

FRONTIER BEVERAGE COMPANY, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
JUNE 30, 2014
 
 
On December 31, 2013, the Company sold 30% shares of 22 Social Club Productions, Inc. to GAC, a related party in return of 100,000,000 restricted common shares from the share exchange agreement entered into on October 9, 2013. GAC held 30% of the outstanding common shares after this transaction.

On February 3, 2014, the Company entered into a stock purchase agreement receiving 90% of Dance Broadcast Systems, Inc. from Vinyl Groove Productions, Inc., and issuing 10,000 Series A Preferred shares with a voting privilege of 66.67% of all outstanding shares regardless of the number of common shares outstanding, to Vinyl Groove Productions, Inc. The transaction has been accounted for as a reverse merger where Dance Broadcast Systems, Inc. is deemed to be the acquirer and the surviving entity for accounting purposes.

The transaction is accounted for using the purchase method of accounting. As a result of the recapitalization and change in control, Dance Broadcast Systems, Inc. is the acquiring entity in accordance with ASC 805, Business Combinations. Accordingly, the historical financial statements are those of Dance Broadcast Systems, Inc., the accounting acquirer, immediately following the consummation of the reverse merger. Dance Broadcast Systems, Inc. was incorporated on January 13, 2014.
 
As of June 30, 2014 the entertainment subsidiaries have been sold (Refer to Note 6).

Derivative Liabilities
 
The Company assessed the classification of its derivative financial instruments as of June 30, 2014, which consist of convertible instruments and rights to shares of the Company’s common stock, and determined that such derivatives meet the criteria for liability classification under ASC 815.
 
ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument subject to the requirements of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is deemed to be conventional, as described.

Financial Instruments
 
The Company’s balance sheet includes certain financial instruments. The carrying amounts of current assets and current liabilities approximate their fair value because of the relatively short period of time between the origination of these instruments and their expected realization.

ASC 820 Fair Value Measurements and Disclosures defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). The three levels of the fair value hierarchy are described below:

 
 
Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
 
 
 
 
7

 
 
FRONTIER BEVERAGE COMPANY, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
JUNE 30, 2014
 
 
 
 
Level 2 - Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable market data by correlation or other means.
 
 
Level 3 - Inputs that are both significant to the fair value measurement and unobservable.

Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2014. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values due to the short-term nature of these instruments. These financial instruments include accounts payable, accrued compensation and accrued expenses. As of June 30, 2014, the Company has determined that the only asset or liability measured at fair value is the derivative instrument related to an anti-dilution provision contained in Convertible Notes and valued using level 3 inputs.

Commitments and Contingencies
 
The Company follows ASC 450-20, Loss Contingencies, to report accounting for contingencies. Liabilities for loss contingencies arising from claims, assessments, litigation, fines and penalties and other sources are recorded when it is probable that a liability has been incurred and the amount of the assessment can be reasonably estimated. There were no commitments or contingencies as of June 30, 2014.

Convertible Instruments
 
The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with professional standards for “Accounting for Derivative Instruments and Hedging Activities”.
 
Professional standards generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument.  Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional as defined under professional standards as “The Meaning of “Conventional Convertible Debt Instrument.”

The Company accounts for convertible instruments (when it has determined that the embedded conversion options should not be bifurcated from their host instruments) in accordance with professional standards when “Accounting for Convertible Securities with Beneficial Conversion Features,” as those professional standards pertain to “Certain Convertible Instruments.” Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their earliest date of redemption. The Company also records when necessary deemed dividends for the intrinsic value of conversion options embedded in preferred shares based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note.
 
 
 
8

 
 
FRONTIER BEVERAGE COMPANY, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
JUNE 30, 2014
 
 
ASC 815-40 provides that, among other things, generally, if an event is not within the entity’s control could or require net cash settlement, then the contract shall be classified as an asset or a liability.

Recent Accounting Pronouncements

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

NOTE 2 – STOCKHOLDERS' DEFICIT

The Company is authorized to issue up to 500,000,000 shares of common stock at $0.001 par value per share ("Common Stock") and 100,000,000 shares of preferred stock at $0.001 par value per share (“Preferred Stock”).  As of June 30, 2014, the Company had 270,081,000 shares of Common Stock and 10,000 shares of Series A Convertible Preferred Stock  issued and outstanding.  Holders of Common Stock are entitled to one vote per share and are to receive dividends or other distributions when and if declared by the Company's Board of Directors.  None of our Common Stock is subject to outstanding options or rights to purchase, nor do we have any issued and outstanding securities that are convertible into our Common Stock.  We have not agreed to register any of our stock.  We do not currently have in effect an employee stock option plan.

Holders of Series A Convertible Preferred Stock are entitled to 66.67% of the voting rights of the Company regardless of the number of common shares outstanding. These shares are eligible to receive dividends or other distributions when and if declared by the Company’s Board of Directors.

In February 2014, the Company issued 8,250,000 restricted common shares for services with a value of $31,600.

In March 2014, the Company issued 15,000,000 restricted common shares with a value of $0 as escrow for a loan.

In March 2014, the Company issued 30,300,000 restricted common shares for the conversion of $40,000 of debt and a loss on the settlement of $60,430 during the period from January 13, 2014 (date of inception) through June 30, 2014.

In March 2014, the Company issued 5,000,000 restricted common shares for services with a value of $19,000.

In March 2014, the Company issued 1,000,000 restricted common shares for payment of accounts payable of $1,500 and a loss on the settlement of debt of $2,600 during the period from January 13, 2014 (date of inception) through June 30, 2014.

In May 2014, the Company issued 8,000,000 restricted common shares for services valued at $ 17,600.

In June 2014, the Company issued 40,000,000 common shares for the conversion of $32,500 in debt vaued at $89,500.

Additional shares were issued and are discussed in Note 3 – RELATED PARTIES.

NOTE 3 – RELATED PARTY TRANSCATIONS AND SHAREHOLDER RECEIVABLE

During the period from January 13, 2014 (date of inception) through June 30, 2014, the Company received no funds from related parties.

In March 2014, the Company issued to officers and directors,  and a prior officer  a total of 25,750,000 restricted common shares for the settlement of $87,500 of accrued wages and a loss on debt settlement of $16,200 during the period from January 13, 2014 (date of inception) through June 30, 2014.
 
As of June 30, 2014 the Company sold its entertainment subsidiaries to a shareholder of the Company which included a liability payable to the Company amounting to $100,613 (which represented a receivable on the Company's balance sheet).  Due to the uncertainty of the collectibility of the receivable the Company reserved the amount in full (See Note 6).
 
 
 
9

 

FRONTIER BEVERAGE COMPANY, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
JUNE 30, 2014
 
 
Mr. Coogan waived any other salary or accruals for this quarter with the receipt of  shares. The balance owed of $43,000 in the books of the subsidiary was written-off and recorded as a capital contribution and credited to additional paid-in capital as of June 30, 2014.  (See Note 6).

Mr. Bailey, a former officer and director received an excess of value for his shares for which the Company took the charge above and his balance is $0.

Mr. Jamison received shares for his services with Frontier and a portion of his wage accruals from 22 Social Club, Inc. His accreued wage balance with Frontier Beverage Company , Inc. is $0.

On June 30, 2014, the Company issued 5,000,000 restricted common shares valued at $12,500 as salary to Mr. Coogan.

NOTE 4 – CONVERTIBLE NOTES PAYABLE
 
At June 30, 2014 convertible notes payable consisted of the following:
 
   
June 30, 2014
 
Convertible notes payable
 
$
361,183
 
Unamortized debt discount
   
(98,415)
 
Total
 
$
262,768
 
 
As of the date of reverse merger, the Company had balance of $240,339 in the convertible notes payable, conversion price being fixed at $0.005 per share.

On October 9, 2013, the convertible notes agreement was amended to allow conversion into shares of common stock at 50% discount to the lowest bid of stock’s market price during the last 20 days prior to conversion date.

The Company identified embedded derivatives related to the amended Convertible Promissory Note entered into on October 9, 2013. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $240,369 of the embedded derivative.  The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:  
 
Dividend yield:
   
-0-
%
Expected volatility
   
100
%
Risk free rate:
   
0.05
%
 
The initial fair value of the embedded debt derivative of $240,339 was allocated with accumulated deficit as part of recapitalization effect.

The fair value of the described embedded derivative of $432,297 at June 30, 2014 was determined using the Black Scholes Model with the following assumptions:
 
 
 
10

 
 
FRONTIER BEVERAGE COMPANY, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
JUNE 30, 2014
 
 
Dividend yield:
   
-0-
%
Expected volatility
   
298
%
Risk free rate:
   
0.04
%
 
At June 30, 2014, the Company adjusted the recorded fair value of the derivative liability to market resulting in non-cash, non-operating gain of $7,379 for the three months ended June 30, 2014 and $236,655 for the period from January 13, 2014 (date of inception) through June 30, 2014.

Note issued on March 10, 2014:

On March 10, 2014, the a convertible note agreement was entered into for a total of $50,000 due on January 5, 2015 with an interest of 8% per annum and a draw against that note was received of $10,000. The agreement allows conversion into shares of common stock at 50% discount to the average of the three lowest intraday trading prices during the 15 days prior to conversion date.

The Company identified embedded derivatives related to the amended Convertible Promissory Note entered into on March 10, 2014. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $96,496 of the embedded derivative.  The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:  
 
Dividend yield:
   
-0-
%
Expected volatility
   
274%-275
%
Risk free rate:
   
0.05%-0.12
%

The initial fair value of the embedded debt derivative of $96,856 was allocated as a debt discount up to the proceeds of the note ($50,000) with remained ($46,496) charged to operations during the period from January 13, 2014 (date of inception) through June 30, 2014 as interest expense.

During the three months ended June 30, 2014 and for the period from January 13, 2014 (date of inception) through June 30, 2014, the Company amortized debt discount of $7,545 and $8,243 to current period operations as an interest expense, respectively.
 
The fair value of the described embedded derivative of $89,082 at June 30, 2014 was determined using the Black Scholes Model with the following assumptions:
 
Dividend yield:
   
-0-
%
Expected volatility
   
298
%
Risk free rate:
   
0.07
%
 
At June 30, 2014, the Company adjusted the recorded fair value of the derivative liability to market resulting in non-cash, non-operating gain of $7,170 for the three months ended June 30, 2014 and $7,414 for the period from January 13, 2014 (date of inception) through ended June 30, 2014.
 
 
 
11

 

FRONTIER BEVERAGE COMPANY, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
JUNE 30, 2014
 
 
Debt settlement on June 4, 2014:

On June 4, 2014, the convertible note agreement was entered into for a total of $103,344 due on December 2, 2014 with an interest of 0% per annum in settlement of accounts payable and accrued expenses. The agreement allows conversion into shares of common stock at 50% discount to the lowest intraday trading prices during the 15 days prior to conversion date. Part of $103,334 convertible note s payable consisted of $31,160 after recording a gain on settlement of debt of $19,454 during the three months ended June 30, 2014 and for the period from January 13, 2014 (date of inception) through June 30, 2014 as per settlement agreement reached with a creditor reducing the debt from $50,614 to $31,160.

The Company identified embedded derivatives related to the amended Convertible Promissory Note entered into on June 4, 2014. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $186,093 of the embedded derivative.  The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:  
 
Dividend yield:
   
-0-
%
Expected volatility
   
210
%
Risk free rate:
   
0.05
%

The initial fair value of the embedded debt derivative of $186,093 was allocated as a debt discount up to the proceeds of the note ($103,344) with remained ($82,729) charged to operations during the period from January 13, 2014 (date of inception) through June 30, 2014 as interest expense.

During the three months ended June 30, 2014 and for the period from January 13, 2014 (date of inception) through June 30, 2014, the Company amortized debt discount of $46,686 to current period operations as an interest expense.

During June 2014 $32,500 principal was converted into 40,000,000 shares of common stock, with a value of $89,500. The Company recorded a loss on conversion of $395 for three months ended June 30, 2014 and for the period from January 13, 2014 (date of inception) through June 30, 2014.
 
The fair value of the described embedded derivative of $165,684 at June 30, 2014 was determined using the Black Scholes Model with the following assumptions:
 
Dividend yield:
   
-0-
%
Expected volatility
   
170
%
Risk free rate:
   
0.05
%
 
At June 30, 2014, the Company adjusted the recorded fair value of the derivative liability to market resulting in non-cash, non-operating gain of $20,409 for the three months ended June 30, 2014 and for period from January 13, 2014 (date of inception) through ended June 30, 2014.


NOTE 5 - FAIR VALUE OF FINANCIAL INSTRUMENTS
 
ASC 825-10 defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. ASC 825-10 establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 825-10 establishes three levels of inputs that may be used to measure fair value: 
 
 
 
12

 
   
FRONTIER BEVERAGE COMPANY, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
JUNE 30, 2014
 
 
Level 1 - Quoted prices in active markets for identical assets or liabilities.
 
Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which all significant inputs are observable or can be derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities.
Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities.
  
To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed is determined based on the lowest level input that is significant to the fair value measurement.

Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of June 30, 2014:

         
Fair Value Measurements at June 30, 2014 using:
 
   
June 30,
 2014
   
Quoted Prices
 in Active
 Markets for
 Identical
 Assets
 (Level 1)
   
Significant
 Other
 Observable
 Inputs (Level 2)
   
Significant
 Unobservable
 Inputs
 (Level 3)
 
Liabilities:
                               
Debt Derivative liabilities
 
$
634,938
   
-
   
-
   
$
634,938
 

The debt derivative liabilities is measured at fair value using quoted market prices and estimated volatility factors based on historical prices for the Company’s common stock and are classified within Level 3 of the valuation hierarchy.
 
The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities as of June 30, 2014:
 
   
Debt Derivative
 Liability
 
Balance, at inception
 
 $
-
 
Balance of debt derivatives at note issuances in Frontier pre-merger
   
676,331
 
Initial fair value of debt derivatives at note issuances
   
281,871
 
Extinguished derivative liability
   
(52,105)
 
Mark-to-market at June 30, 2014
       
-Embedded debt derivatives
   
(271,159)
 
Balance, June 30, 2014
 
 
$
634,938
 
         
Net gain for the period included in earnings relating to the liabilities held at June 30, 2014
 
$
271,159
 
 
 
 
13

 
 
FRONTIER BEVERAGE COMPANY, INC.
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
JUNE 30, 2014
 
 
Level 3 Liabilities are comprised of bifurcated convertible debt features on convertible notes.

NOTE 6- SALE OF SUBSIDIARIES

In May 2014 the Company sold its 51% stake in Blue 22 Entertainment for the receipt of 50 million common shares of NX Global, Inc. stock. Because the stock received does not have a current filing on Pink Sheets no value has been placed on the stock and no gain or loss has been recognized.

All remaining entertainment subsidiaries were sold on June 24, 2014. The Company does not retain any rights nor any liabilities of the disposed of subsidiaries. required.
 
In accordance with ASC subtopic 845-10 a parent shall account for the deconsolidation of a subsidiary or derecognition of a group of assets specified in ASC 810-10-40-3A by recognizing a gain or loss in net income attributable to the parent, measured as the difference between the carrying amount of the former subsidiaries' asset and liabilities.  As of the date of the sale of the subsidiaries' balance sheet consisted of $143,942 of liabilities due to related parties, $100,613 of which was owed to the parent.  Accordingly, the Company recorded this transaction in additional paid in capital instead  as a gain due to the liabilities being associated with related parties.
 
As of June 30, 2014 the Company had an intercompany receivable balance of $100,613 due from the subsidiaries.  Due to the uncertainty of the collectibility of the receivable, the Company determined that it should be fully reserved until negotiations related to payment terms are finalized with the acquirer.
 
The consideration to be received for the sale of the subsidiaries consisted of  consulting services that will expire in August 2014 valued at $10,000.

NOTE 7– SUBSEQUENT EVENTS

We have evaluated subsequent events through the date the unaudited condensed financial statements were available to be issued, and did not have any material recognizable subsequent events, other than the following:

In July and August 2014 the Company issued a total of 113,611,111 common shares for the conversion of debt in the amount of $54,000.
 
 
 
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ITEM 2.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

We urge you to read the following discussion in conjunction with management’s discussion and analysis contained in our Annual Report on Form 10-K for the year ended December 31, 2013, as well as with our unaudited condensed financial statements and the notes thereto included elsewhere herein.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Our prospects are subject to uncertainties and risks. In this Quarterly Report on Form 10-Q, we make forward-looking statements in this Item 2 and elsewhere that also involve substantial uncertainties and risks. These forward-looking statements are based upon our current expectations, estimates and projections about our business and our industry, and reflect our beliefs and assumptions based upon information available to us at the date of this report. In some cases, you can identify these statements by words such as “if,” “may,” “might,” “will, “should,” “expects,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue,” and other similar terms. These forward-looking statements include, among other things, projections of our future financial performance and our anticipated growth, descriptions of our strategies, our product and market development plans, and other objectives, expectations and intentions, the trends we anticipate in our business and the markets in which we operate, and the competitive nature and anticipated growth of those markets.

We caution readers that forward-looking statements are predictions based on our current expectations about future events. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties and assumptions that are difficult to predict. Our actual results, performance or achievements could differ materially from those expressed or implied by the forward-looking statements as a result of a number of factors, including but not limited to the risks and uncertainties discussed in our other filings with the SEC or our sales results or changes in costs associated with ingredients for our products, manufacture of our products, distribution and sales. We undertake no obligation to revise or update any forward-looking statement for any reason.

Overview

Frontier Beverage Company, Inc. is primarily engaged in the entertainment business with two subsidiaries partially owned, 22 Social Club Productions, Inc. (70%) and Dance Broadcast Systems, Inc.(90%) accounted for as reverse acquisition in 2013 and 2014, respectively. We still have the formulas and marketing capability for the beverage products and intend to distribute them through third party representation.

In May 2014 the company sold its 51% stake in Blue 22 Entertainment for the receipt of 50 million common shares of NX Global, Inc. stock. Because the stock received does not have a current filing on Pink Sheets no value has been placed on the stock and no gain or loss has been recognized.

All remaining entertainment subsidiaries were sold on June 24, 2014. The company does not retain any rights nor any liabilities of the disposed of subsidiaries.
 
In accordance with ASC subtopic 845-10 a parent shall account for the deconsolidation of a subsidiary or derecognition of a group of assets specified in ASC 810-10-40-3A by recognizing a gain or loss in net income attributable to the parent, measured as the difference between the carrying amount of the former subsidiaries' asset and liabilities.  As of the date of the sale of the subsidiaries' balance sheet consisted of $143,942 of liabilities due to related parties, $100,613 of which was owed to the parent.  Accordingly, the Company recorded this transaction in additional paid in capital instead  as a gain due to the liabilities being associated with related parties.
 
As of June 30, 2014 the Company had an intercompany receivable balance of $100,613 due from the subsidiaries.  Due to the uncertainty of the collectibility of the receivable, the Company determined that it should be fully reserved until negotiations related to payment terms are finalized with the acquirer.
 
The consideration to be received for the sale of the subsidiaries consisted of  consulting services that will expire in August 2014 valued at $10,000.
 
In June 2014 the Company entered into an agreement to be the distributor at retail of a oil emulsification product used to separate oil from various waste streams produced from oil wells, and oil storage or shipping. We will issue the 5,000 preferred shares when available after filing a designation which will be earned upon issuance.
 
 
 
15

 

The Company's Common Stock is quoted on the OTC Market Groups, Inc. OTCQB (the “OTCQB”) under the symbol "FBEC."

Basis of presentation and going concern uncertainty

The accompanying unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States of America (“GAAP”), which contemplates continuation of the Company as a going concern, which is dependent upon the Company's ability to establish itself as a profitable business.  At June 30, 2014, the Company has an accumulated deficit of $1,563,591 and has incurred net loss of $281,864 from continuing operations for the period from January 13, 2014 (date of inception) through June 30, 2014. The Company’s ability to continue in business is dependent upon obtaining sufficient financing or attaining profitable operations; however, there can be no assurance that management will be successful in obtaining additional funding or in attaining profitable operations, therefore  these matters raise substantial doubt about the Company's ability to continue as a going concern.  These unaudited condensed consolidated financial statements do not include any adjustments that might result from the outcome of these uncertainties, nor do they include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should the Company be unable to continue in operation.

Critical Accounting Policies

There have been no changes from the Critical Accounting Policies described in the Annual Report on Form 10-K filed with the Securities and Exchange Commission on April 16, 2014.

Recent Events

Change of Control

On July 1, 2013, Ruben Yakubov, an unrelated third party, entered into a stock purchase agreement with the Company and certain stockholders (the “Selling Shareholders”) of the Company, pursuant to which, the Selling Shareholders sold an aggregate of 15,978,000 shares of Common Stock of the Company to Mr. Yakubov for an aggregate purchase price of $197,500, constituting approximately 85% of the Company’s issued and outstanding Common Stock.

On October 9, 2013, the Company entered into share exchange agreement to acquire 100% of the issued and outstanding share capital with Gallant Acquisition Corp. (GAC) the 100% owner of all of the issued and outstanding share capital of 22 Social Club Productions (22 SCP) and its subsidiaries, Blue 22 Entertainment and Appquest, Inc. for 140,000,000 common shares of the Company and 5,000,000 shares of common stock of the Company to Appquest, Inc. Effectively, 22 SCP held 89% of the issued and outstanding common shares of the Company and the transaction has been accounted for as a reverse merger, where 22 SCP is deemed to be the acquirer and or the surviving entity for accounting purposes.

The transaction is accounted for using the purchase method of accounting. As a result of the recapitalization and change in control, 22 SCP is the acquiring entity in accordance with ASC 805, Business Combinations. Accordingly, the historical financial statements are those of 22 SCP, the accounting acquirer, immediately following the consummation of the reverse merger.

On December 31, 2013, the Company sold 30% shares of 22 Social Club Productions, Inc. to GAC, a related party in return of 100,000,000 restricted common shares from the share exchange agreement entered into on October 9, 2013.

On February 3, 2014, the Company entered into a stock purchase agreement receiving 90% of Dance Broadcast Systems, Inc. from Vinyl Groove Productions, Inc., and issuing 10,000 Series A Preferred shares with a voting privilege of 66.67% of all outstanding shares regardless of the number of common shares outstanding, to Vinyl Groove Productions, Inc. The transaction has been accounted for as a reverse merger where Dance Broadcast Systems, Inc. is deemed to be the acquirer and the surviving entity for accounting purposes.
 
 
 
16

 

The transaction is accounted for using the purchase method of accounting. As a result of the recapitalization and change in control, Dance Broadcast Systems, Inc. is the acquiring entity in accordance with ASC 805, Business Combinations. Accordingly, the historical financial statements are those of Dance Broadcast Systems, Inc., the accounting acquirer, immediately following the consummation of the reverse merger. Dance Broadcast Systems, Inc. was incorporated on January 13, 2014.

As of June 30, 2014 the entertainment subsidiaries were sold for a value of $10,000 in exchange for the consulting services.
 
A settlement agreement was reached with a creditor reducing the debt from $50,614 resulting in a gain on settlement of debt of $19,454 during the three months ended June 30, 2014 and for the period from January 13, 2014 (date of inception) through June 30, 2014. The debtor has been paid in full.

Liquidity and Capital Resources

We began current operations in February 2014 and have yet to attain a level of operations which allows us to meet our current overhead requirements.  We do not contemplate attaining profitable operations prior to 2015 and there is no assurance that such an operating level will ever be achieved. We will be dependent upon obtaining additional financing in order to adequately fund working capital, infrastructure, production expenses and significant marketing related expenditures to gain market recognition, so that we can achieve a level of revenue adequate to support our cost structure, none of which can be assured. These factors raise substantial doubt about our ability to continue as a going concern and the accompanying financial statements do not include any adjustments related to the recoverability or classification of asset carrying amounts or the amounts and classification of liabilities that may result should we be unable to continue as a going concern.

As of June 30, 2014, the Company’s cash balance was $5,135.  Outstanding debt as of June 30, 2014 totaled $383,858 all of which is attributable to loans. The Company’s working capital deficit as of June 30, 2014 was $922,927.

The Company will need to raise additional capital to expand operations to the point at which the Company can achieve profitability. The terms of financing that may be raised may not be on terms acceptable by the Company. If adequate funds cannot be raised outside of the Company, the Company’s current stockholders may need to contribute funds to sustain operations. The Company does not have any agreements with any of its stockholders to provide any capital and there can be no assurance that any stockholder would be able or willing to fund the Company's continued operations.

Results of Operations

 
 
 
17

 

For the period from January 13, 2014 (date of inception) through June 30, 2014, the Company’s revenue totaled $0, for which its respective cost of revenues totaled $0.

During the period from January 13, 2014 (date of inception)  through June 30, 2014, the Company reported no sales of its beverage products or from its concert promotion.

For the period from January 13, 2014 (date of inception) through June 30, 2014, the Company had operating expenses totaling $304,677.  These costs were primarily from $141,200 of consulting fees, $100,613 in bad debt expense and $33,500 in wages.
 
The Company settled several debts incurring losses of $59,776 and a loss of $395 for the conversion of debt.  The Company also recognized a gain on the fair value of derivatives of $271,158 related to its convertible notes payable.  Recognition of $188,174 of interest expense also incurred.
 
For The Period From January 13, 2014 (date of inception) through June 30, 2014
 
For the three months ended June 30, 2014, the Company reported no sales.  Operating expenses were $217,010 consisting primarily of $71,600 in consulting fees, $9,500 in wages, $100,613 in bad debt expense and $13,300 in accounting and professional fees.
 
The Company settled several debts incurring gains of $19,454 and a loss of $395 for the conversion of debt.  The Company also recognized a gain on the fair value of derivatives of $13,260 related to its convertible notes payable.  Recognition of $180,240 of interest expense also incurred.
 
Off Balance Sheet Arrangements

We do not have any off balance sheet arrangements.

Inflation

The Company believes that inflation has not had, and is not expected to have, a material effect on our operations.

Climate Change

We believe that neither climate change, nor governmental regulations related to climate change, have had, or are expected to have, any material effect on our operations.

Recently Issued Accounting Pronouncements

There are no recently issued accounting pronouncements that are expected to have a material impact on the unaudited condensed consolidated financial statements or notes thereto.


ITEM 3.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Our Company is a “smaller reporting company” as defined by Rule 12b-2 of the Exchange Act, and as such, is not required to provide the information required under this Item.

ITEM 4.  CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Pursuant to Rule 13a-15(b) under the Securities Exchange Act of 1934 ("Exchange Act"), Michael Jamison, the Company's President and Principal Executive Officer  and Treasurer and Principal Accounting Officer ("CFO") (the Company’s principal financial and accounting officer), initially evaluated the effectiveness of the Company’s disclosure controls and procedures (as defined under Rule 13a-15(e) under the Exchange Act) as of the end of the period covered by this report.

Based upon that initial evaluation, Mr. Jamison concluded, upon consultation with prior management, that the Company’s disclosure controls and procedures were not effective as of June 30, 2014 to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s President/CFO, as appropriate, to allow timely decisions regarding required disclosure, due to the material weaknesses described below.
 
 
 
18

 

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company's annual or interim financial statements will not be prevented or detected on a timely basis.

The Company believes its weaknesses in internal controls and procedures is due to the Company's lack of sufficient personnel with expertise in the area of SEC, GAAP and tax accounting procedures.  In addition, the Company lacks the personnel structure, size and complexity to segregate duties sufficiently for proper controls.

The Company is currently without sufficient funds to hire additional personnel with expertise in these areas and to segregate duties for proper controls and until such time as additional personnel are hired, the Company believes that it will continue to recognize a weakness in its internal controls and procedures.  The Company currently engages outside consultants to assist in the areas of tax and accounting procedures.

The Company plans to hire additional personnel to properly implement a control structure when and if the appropriate funds become available.  In the meantime, the Chief Executive Officer/Financial Officer will continue to perform or supervise the performance of additional accounting and financial analyses and other post-closing procedures including detailed validation work with regard to balance sheet account balances, additional analysis on income statement amounts and managerial review of all significant account balances and disclosures, to ensure that the Company's Annual Report and the financial statements forming part thereof are in accordance with GAAP.

Changes in Internal Control Over Financial Reporting

During the three ended June 30, 2014, there were no changes in our internal control over financial reporting that occurred during 2014 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Limitations on the Effectiveness of Controls

Our disclosure controls and procedures provide our principal executive and financial officer with reasonable assurances that our disclosure controls and procedures will achieve their objectives. However, our management does not expect that our disclosure controls and procedures or our internal control over financial reporting can or will prevent all human error. A control system, no matter how well designed and implemented, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Furthermore, the design of a control system must reflect the fact that there are internal resource constraints, and the benefit of controls must be weighed relative to their corresponding costs. Because of the limitations in all control systems, no evaluation of controls can provide complete assurance that all control issues and instances of error, if any, within our company are detected. These inherent limitations include the realities that judgments in decision-making can be faulty, and that breakdowns can occur due to human error or mistake. Additionally, controls, no matter how well designed, could be circumvented by the individual acts of specific persons within the organization. The design of any system of controls is also based in part upon certain assumptions about the likelihood of future events, and there can be no assurance that any design will succeed in achieving its stated objectives under all potential future conditions.

Management is aware that there is a lack of segregation of duties at the Company due to the fact that the Company has only one director and executive officer dealing with general administrative and financial matters. This constitutes a significant deficiency in the internal controls. Management has decided that considering the officer/director involved, the control procedures in place, and the outsourcing of certain financial functions, the risks associated with such lack of segregation were low and the potential benefits of adding additional employees to clearly segregate duties did not justify the expenses associated with such increases. Management plans to re-evaluate this situation periodically. In light of the Company’s current cash flow situation, the Company does not intend to increase staffing to mitigate the current lack of segregation of duties within the general administrative and financial functions.



 
19

 

PART II - OTHER INFORMATION

ITEM 1.  LEGAL PROCEDINGS

There are no material pending legal or governmental proceedings relating to our Company or its properties to which we are a party, and to our knowledge, there are no material proceedings to which any of our directors, executive officers, affiliates or shareholders are a party adverse to us or have a material interest adverse to us.

ITEM 1A.  RISK FACTORS

Our Company is a “smaller reporting company” as defined by Rule 12b-2 of the Exchange Act, and as such, is not required to provide the information required under this Item.

ITEM 2.  UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEEDS

There are no unreported sales of unregistered securities during the period from January 13, 2014 (date of inception) through June 30, 2014.

ITEM 3.  DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.  MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.  OTHER INFORMATION

None.
 
 
 
20

 
 
ITEM 6.  EXHIBITS

The following exhibits are filed with this Quarterly Report on Form 10-Q or are incorporated by reference as described below.

Exhibit
Description
31.1
Certification of Principal Executive Officer and Principal Financial Officer pursuant to Rule 13a-14a/Rule 14d-14(a)*
32.1
Certification of Principal Executive Officer and Principal Financial Officer pursuant to 18 U.S.C. Section 1350*
101.1
Interactive data files pursuant to Rule 405 of Regulation S-T*
*Filed herewith.
 
 
 
 
21

 
 
SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
     
September 2, 2014
FRONTIER BEVERAGE COMPANY, INC.
     
 
By:
/s/ William Coogan
   
 
President and Treasurer
(Principal Executive Officer, Principal Financial and
Accounting Officer and Authorized Signatory)

 
 
 
 
22