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EX-31.1 - SARBANES-OXLEY 302 CERTIFICATION - SMARTCHASE CORP.exh31-1.htm
EX-32.1 - SARBANES-OXLEY 906 CERTIFICATION - SMARTCHASE CORP.exh32-1.htm
 


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

FORM 10-K

|X|  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2014

|   |  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to ____________

Commission file number 000-52725
 SMARTCHASE CORP.
(Formerly Northern Empire Energy Corp.)
(Exact name of registrant as specified in its charter) 
 
Nevada
20-4765268
(State of incorporation)
(I.R.S. Employer ID No.)
   
Suite 201 – 55 York Street, Toronto, Ontario, Canada, M5J 1R7
(Address of Principal Executive Offices)
 
(416) 903-0059
(Issuer's 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

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 checkmark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 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 checkmark 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 checkmark 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 (Do not check if smaller reporting company)
|   |
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 |X|     No |   |

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant's most recently completed fiscal year:

The aggregate market value of the issuer's common stock held by non-affiliates (3,442,563) as of the most recently completely second fiscal quarter, computed at the market price of $0.002 was $6,885.

On March 20, 2015, the Registrant had 33,942,563 shares of common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Exhibits incorporated by reference are referred to under Part IV.
 




SMARTCHASE CORP.
(Formerly Northern Empire Energy Corp.)
INDEX TO FORM 10-K

PART I
 
Page
     
Item 1
Business
3
     
Item 1A
Risk Factors
9
     
Item 2
Properties
9
     
Item 3
Legal Proceedings
9
     
Item 4
Mine Safety Disclosures
9
     
PART II
   
     
Item 5
Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases
of Equity Securities
10
     
Item 6
Selected Financial Data
11
     
Item 7
Management's Discussion and Analysis of Financial Condition and Results of Operations
11
     
Item 7A
Quantitative and Qualitative Disclosures About Market Risk
13
     
Item 8
Financial Statements and Supplementary Data
14
     
Item 9
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
25
     
Item 9A
Controls and Procedures
25
     
Item 9B
Other Information
26
     
PART III
   
     
Item 10
Directors, Executive Officers and Corporate Governance
26
     
Item 11
Executive Compensation
29
     
Item 12
Security Ownership of Certain Beneficial Owners and Management Related Stockholder
Matters
31
     
Item 13
Certain Relationships and Related Transactions, and Director Independence
32
     
Item 14
Principal Accountant Fees and Services
33
     
PART IV
   
     
Item 15
Exhibits and Financial Statement Schedules
34
     
 
Signatures
35
- 1 -



FORWARD-LOOKING STATEMENTS

This document contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are "forward-looking statements" for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue or other financial items; any statements of the plans, strategies and objections of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions or performance; any statements or belief; and any statements of assumptions underlying any of the foregoing.

Forward-looking statements may include the words "may," "could," "estimate," "intend," "continue," "believe," "expect" or "anticipate" or other similar words. These forward-looking statements present our estimates and assumptions only as of the date of this report.  Accordingly, readers are cautioned not to place undue reliance on forward-looking statements, which speak only as of the dates on which they are made.  We do not undertake to update forward- looking statements to reflect the impact of circumstances or events that arise after the dates they are made.  You should, however, consult further disclosures we make in future filings of our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.

Although we believe that the expectations reflected in any of our forward- looking statements are reasonable, actual results could differ materially from those projected or assumed in any of our forward-looking statements. Our future financial condition and results of operations, as well as any forward- looking statements, are subject to change and inherent risks and uncertainties.  The factors impacting these risks and uncertainties include, but are not limited to:

·
inability to raise additional financing for working capital;

·
deterioration in general or regional economic, market and political conditions;

·
the fact that our accounting policies and methods are fundamental to how we report our financial condition and results of operations, and they may  require management to make estimates about matters that are inherently uncertain;

·
changes in U.S. GAAP or in the legal, regulatory and legislative environments in the markets in which we operate;

·
inability to efficiently manage our operations;

·
inability to achieve future operating results;

·
ability to recruit and hire key employees;

·
inability of management to effectively implement our strategies and business plans; and

·
other risks and uncertainties detailed in this report.

In this form 10-K references to "SmartChase", "the Company", "we," "us," and "our" refer to SmartChase Corp.


- 2 -


PART I

ITEM 1.     BUSINESS

We were incorporated in the State of Nevada on April 24, 2006 as Political Calls, Inc. We maintain our statutory registered agent's office at 311 West Third Street, Carson City, Nevada, 89703 and our principal executive offices are located at Suite 201 – 55 York Street, Toronto, Ontario, Canada, M5J 1R7.  Our telephone number is (416) 903-0059.

The original business plan of the Company consisted of marketing telephone broadcasting messages for political campaigns.  In November 2008, the Board of Directors and the majority vote of the Company's shareholders voted and approved a name change of the Company from Political Calls, Inc. to Northern Empire Energy Corp., to signify the Company's business direction in oil and gas exploration.

In December 2009 we entered into a "Formal Option to Purchase and Sale Agreement of Petroleum and Natural Gas Rights" with an Alberta Corporation and purchased certain petroleum and natural gas rights within the Province of Alberta for a total purchase price of $471,524 ($500,000.00 Canadian Dollars).  The Company was unable to secure additional financing to conduct exploration and drill wells on its oil and gas properties and consequently, during the year ended December 31, 2010, became a shell corporation whose sole purpose at this time is to locate and consummate a merger and/or acquisition with an operating entity.

On December 3, 2014, we amended our Articles of Incorporation to change our name from "Northern Empire Energy Corp." to "SmartChase Corp." (the "Name Change")  to better reflect the Company's new business direction pursuing business opportunities in the digital media sector, with an initial focus on the development and utilization of mobile apps.  The amendment to the Company's Articles of Incorporation took effect on December 3, 2014 upon receipt of approval from the Financial Industry Regulatory Authority ("FINRA"). In connection with the name change FINRA has assigned the Company a new stock symbol; "SCHS".

We have no employees and own no property. We do not intend to perform any further operations until a merger or acquisition candidate is located and a merger or acquisition consummated.

Merger or Acquisition of a Candidate

The acquisition of a business opportunity may be made by purchase, merger, exchange of stock, or otherwise, and may encompass assets or a business entity, such as a corporation, joint venture, or partnership. We have very limited capital, and it is unlikely that we will be able to take advantage of more than one such business opportunity.

We intend to seek opportunities demonstrating the potential of long-term growth as opposed to short-term earnings. At the present time we have not identified any business opportunity that we plan to pursue, nor have we reached any agreement or definitive understanding with any person concerning an acquisition.

We anticipate that we will contact broker/dealers and other persons with whom our officers and directors are acquainted and who are involved in corporate finance matters to advise them of our existence and to determine if any companies or businesses they represent have an interest in considering a merger or acquisition with us.  No assurance can be given that we will be successful in finding or acquiring a desirable business opportunity, given the limited funds that are expected to be available for acquisitions, or that any acquisition that occurs will be on terms that are favorable to us or our stockholders.

Our search will be directed toward small and medium-sized enterprises which have a desire to become public corporations and which are able to satisfy, or anticipate in the reasonably near future being able to satisfy, the minimum requirements in order to qualify shares for trading on the Bulletin Board on a stock exchange we anticipate that the business opportunities presented to us will:

- 3 -


-
be recently organized with no operating history, or a history of losses attributable to under-capitalization or other factors;
-
be in need of funds to develop a new product or service or to expand into a new market;
-
be relying upon an untested product or marketing any business, to the extent of limited resources. This includes industries such as service, finance, natural resources, manufacturing, high technology, product development, medical, communications and others.

Our discretion in the selection of business opportunities is unrestricted, subject to the availability of such opportunities, economic conditions, and other factors.

In connection with such a merger or acquisition, it is highly likely that an amount of stock constituting control of our company would be issued by us or purchased from the current principal shareholders of our company by the acquiring entity or its affiliates.

If stock is purchased from the current shareholders, the transaction is very likely to result in substantial gains to them relative to their purchase price for such stock. In our judgment, our officers and directors would not thereby become "underwriters" within the meaning of the Section 2(11) of the Securities Act of 1933, as amended. The sale of a controlling interest by certain principal shareholders of our company could occur at a time when our other shareholders remain subject to restrictions on the transfer of our shares.

Depending upon the nature of the transaction, our officers and directors may resign his management positions in connection with our acquisition of a business opportunity.

In the event of such a resignation, our officers and directors would not have any control over the conduct of our business following our combination with a business opportunity. We anticipate that business opportunities will come to our attention from various sources, including our officers and directors, our other stockholders, professional advisors such as attorneys and accountants, securities broker/dealers, venture capitalists, members of the financial community, and others who may present unsolicited proposals.

We have no plans, understandings, agreements, or commitments with any individual for such person to act as a finder of opportunities. We do not foresee that we would enter into a merger or acquisition transaction with any business with which our officers or directors are currently affiliated.

Investigation and Selection of Business Opportunities

To a large extent, a decision to participate in a specific business opportunity may be made upon:
 
-
management's analysis of the quality of the other company's management and personnel,
-
the anticipated acceptability of new products or marketing concepts,
-
the merit of technological changes, the perceived benefit we will derive from becoming a publicly held entity, and numerous other factors which are difficult, if not impossible, to analyze through the application of any objective criteria.

In many instances, it is anticipated that the historical operations of a specific business opportunity may not necessarily be indicative of the potential for the future because of the possible need to shift marketing approaches substantially, expand significantly, change product emphasis, change or substantially augment management, or make other changes. We will be dependent upon the owners of a business opportunity to identify any such problems which may exist and to implement, or be primarily responsible for the implementation of, required changes.

Because we may participate in a business opportunity with a newly organized firm or with a firm which is entering a new phase of growth, it should be emphasized that we will incur further risks, because management in many instances will not have proved its abilities or effectiveness, the eventual market for such company's products or services will likely not be established, and such company may not be profitable when acquired.
- 4 -


We anticipate that we will not be able to diversify, but will essentially be limited to one such venture because of our limited financing. This lack of diversification will not permit us to offset potential losses from one business opportunity against profits from another, and should be considered an adverse factor affecting any decision to purchase our securities.

Holders of our securities should not anticipate that we necessarily will furnish such holders, prior to any merger or acquisition, with financial statements, or any other documentation, concerning a target company or its business. In some instances, however, the proposed participation in a business opportunity may be submitted to the stockholders for their consideration, either voluntarily by our officers and directors to seek the stockholders' advice and consent or because state law so requires. The analysis of business opportunities will be undertaken by or under the supervision of our officers and directors, who are not professional business analysts.

Although there are no current plans to do so, our management might hire an outside consultant to assist in the investigation and selection of business opportunities, and might pay a finder's fee. Since our management has no current plans to use any outside consultants or advisors to assist in the investigation and selection of business opportunities, no policies have been adopted regarding use of such consultants or advisors, the criteria to be used in selecting such consultants or advisors, the services to be provided, the term of service, or regarding the total amount of fees that may be paid.

However, because of our limited resources, it is likely that any such fee we agree to pay would be paid in stock and not in cash. Otherwise, we anticipate that it will consider, among other things, the following factors:

-
Potential for growth and profitability, indicated by new technology, anticipated market expansion, or new products;
-
Our perception of how any particular business opportunity will be received by the investment community and by our stockholders;
-
Whether, following the business combination, the financial condition of the business opportunity would be, or would have a significant prospect in the foreseeable future of becoming sufficient to enable our securities to qualify for listing on an exchange or on a national automated securities quotation system, such as NASDAQ, so as to permit the trading of such securities to be exempt from the requirements of a Rule 15g-9 adopted by the Securities and Exchange Commission.
-
Capital requirements and anticipated availability of required funds, to be provided by us or from our operations, through the sale of additional securities, through joint ventures or similar arrangements, or from other sources;
-
The extent to which the business opportunity can be advanced;
-
Competitive position as compared to other companies of similar size and experience within the industry segment as well as within the industry as a whole;
-
Strength and diversity of existing management, or management prospects that are scheduled for recruitment;
-
The cost of our participation as compared to the perceived tangible and intangible values and potential; and
-
The accessibility of required management expertise, personnel, raw materials, services, professional assistance, and other required items. In regard to the possibility that our shares would qualify for listing on NASDAQ, the current standards include the requirements that the issuer of the securities that are sought to be listed have total assets of at least $4,000,000 and total capital and surplus of at least $2,000,000, and proposals have recently been made to increase these qualifying amounts.

Many, and perhaps most, of the business opportunities that might be potential candidates for a combination with us would not satisfy the NASDAQ listing criteria. Not one of the factors described above will be controlling in the selection of a business opportunity, and management will attempt to analyze all factors appropriate to each opportunity and make a determination based upon reasonable investigative measures and available data.

- 5 -


Potentially available business opportunities may occur in many different industries and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex.

Potential investors must recognize that, because of our limited capital available for investigation and management's limited experience in business analysis, we may not discover or adequately evaluate adverse facts about the opportunity to be acquired. We are unable to predict when it may participate in a business opportunity. We expect, however, that the analysis of specific proposals and the selection of a business opportunity may take several months or more.

Prior to making a decision to participate in a business opportunity, we will generally request that we be provided with written materials regarding the business opportunity containing such items as:

-
a description of products
-
services and company history
-
management resumes
-
financial information
-
available projections, with related assumptions upon which they are based
-
an explanation of proprietary products and services;
-
evidence of existing patents, trademarks, or services marks, or rights thereto
-
present and proposed forms of compensation to management
-
a description of transactions between such company and its affiliates during relevant periods
-
a description of present and required facilities
-
an analysis of risks and competitive conditions
-
a financial plan of operation and estimated capital requirements
-
audited financial statements, or if they are not available, unaudited financial statements, together with reasonable assurances that audited financial statements would be able to be produced within a reasonable period of time not to exceed 60 days following completion of a merger transaction;
-
and other information deemed relevant.

As part of our investigation, our officers and directors:

-
may meet personally with management and key personnel,
-
may visit and inspect material facilities,
-
obtain independent analysis or verification of certain information provided,
-
check references of management and key personnel, and
-
take other reasonable investigative measures, to the extent of our limited financial resources and management expertise.

Benefits of a Merger or Acquisition With Us

Our management believes that various types of potential merger or acquisition candidates might find a business combination with us to be attractive. These include:

-
acquisition candidates desiring to create a public market for their shares in order to enhance liquidity for current shareholders,
-
acquisition candidates which have long-term plans for raising capital through the public sale of securities and believe that the possible prior existence of a public market for their securities would be beneficial, and
-
acquisition candidates which plan to acquire additional assets through issuance of securities rather than for cash, and believe that the possibility of development of a public market for their securities will be of assistance in that process.

- 6 -


Acquisition candidates that have a need for an immediate cash infusion are not likely to find a potential business combination with us to be an attractive alternative.

Form of Acquisition

It is impossible to predict the manner in which we may participate in a business opportunity. Specific business opportunities will be reviewed as well as our respective needs and desires and the promoters of the opportunity and, upon the basis of that review and our negotiating strength and such promoters, the legal structure or method deemed by management to be suitable will be selected. Such structure may include, but is not limited to:

-
leases, purchase and sale agreements,
-
licenses,
-
joint ventures and
-
other contractual arrangements.

We may act directly or indirectly through an interest in a partnership, corporation or other form of organization.

Implementing such structure may require our merger, consolidation or reorganization with other corporations or forms of business organization, and although it is likely, we cannot assure you that we would be the surviving entity. In addition, our present management and stockholders most likely will not have control of a majority of our voting shares following a reorganization transaction. As part of such a transaction, our officers and directors may resign and new directors may be appointed without any vote by stockholders. It is likely that we will acquire participation in a business opportunity through the issuance of our common stock or other securities.

Although the terms of any such transaction cannot be predicted, in certain circumstances, the criteria for determining whether or not an acquisition is a so-called "tax free" reorganization under the Internal Revenue Code of 1986, depends upon the issuance to the stockholders of the acquired company of a controlling interest equal to 80% or more of the common stock of the combined entities immediately following the reorganization.

If a transaction were structured to take advantage of these provisions rather than other "tax free" provisions provided under the Internal Revenue Code, our current stockholders would retain in the aggregate 20% or less of the total issued and outstanding shares. This could result in substantial additional dilution in the equity of those who were our stockholders prior to such reorganization. Our issuance of these additional shares might also be done simultaneously with a sale or transfer of shares representing a controlling interest in us by our officers, directors and principal shareholders.

We anticipate that any new securities issued in any reorganization would be issued in reliance upon exemptions, if any are available, from registration under applicable federal and state securities laws. In some circumstances, however, as a negotiated element of the transaction, we may agree to register such securities either at the time the transaction is consummated, or under certain conditions or at specified times thereafter.

The issuance of substantial additional securities and their potential sale into any trading market that might develop in our securities may have a depressive effect upon such market. We will participate in a business opportunity only after the negotiation and execution of a written agreement.

Although the terms of such agreement cannot be predicted, generally such an agreement would require:

-
specific representations and warranties by all of the parties thereto,
-
specify certain events of default,
-
detail the terms of closing and the conditions which must be satisfied by each of the parties thereto prior to such closing,
-
outline the manner of bearing costs if the transaction is not closed,
-
set forth remedies upon default, and
-
include miscellaneous other terms.
- 7 -


We anticipate that we, and/or our officers and directors will enter into a letter of intent with the management, principals or owners of a prospective business opportunity prior to signing a binding agreement. This letter of intent will set forth the terms of the proposed acquisition but will not bind any of the parties to consummate the transaction. Execution of a letter of intent will by no means indicate that consummation of an acquisition is probable. Neither we nor any of the other parties to the letter of intent will be bound to consummate the acquisition unless and until a definitive agreement concerning the acquisition as described in the preceding paragraph is executed.

Even after a definitive agreement is executed, it is possible that the acquisition would not be consummated should any party elect to exercise any right provided in the agreement to terminate it on specified grounds. We anticipate that the investigation of specific business opportunities and the negotiation, drafting and execution of relevant agreements, disclosure documents and other instruments will require substantial management time and attention and substantial costs for accountants, attorneys and others.

If we decide not to participate in a specific business opportunity, the costs incurred in the related investigation would not be recoverable. Moreover, because many providers of goods and services require compensation at the time or soon after the goods and services are provided, our inability to pay until an indeterminate future time may make it impossible to procure goods and services.

Investment Company Act and Other Regulation

We may participate in a business opportunity by purchasing, trading or selling the securities of such business. We do not, however, intend to engage primarily in such activities.

Specifically, we intend to conduct our activities so as to avoid being classified as an investment company under the Investment Company Act of 1940, and therefore to avoid application of the costly and restrictive registration and other provisions of the Investment Act, and the regulations promulgated thereunder.

Section 3(a) of the Investment Act contains the definition of an investment company, and it excludes any entity that does not engage primarily in the business of investing, reinvesting or trading in securities, or that does not engage in the business of investing, owning, holding or trading investment securities defined as all securities other than government securities or securities of majority- owned subsidiaries the value of which exceeds 40% of the value of its total assets excluding government securities, cash or cash items.

We intend to implement our business plan in a manner that will result in the availability of this exception from the definition of investment company. As a result, our participation in a business or opportunity through the purchase and sale of investment securities will be limited.

Our plan of business may involve changes in our capital structure, management, control and business, especially if we consummate a reorganization as discussed above. Each of these areas is regulated by the Investment Act, in order to protect purchasers of investment company securities. Since we will not register as an investment company, stockholders will not be afforded these protections.

Any securities which we might acquire in exchange for our common stock will be restricted securities within the meaning of the Securities Act of 1933. If we elect to resell such securities, such sale cannot proceed unless a registration statement has been declared effective by the Securities and Exchange Commission or an exemption from registration is available. Section 4(1) of the Act, which exempts sales of securities not involving a distribution, would in all likelihood be available to permit a private sale.

Although the plan of operation does not contemplate resale of securities acquired, if such a sale were to be necessary, we would be required to comply with the provisions of the Act to effect such resale. An acquisition made by us may be in an industry that is regulated or licensed by federal, state or local authorities. Compliance with such regulations can be expected to be a time-consuming and expensive process.
- 8 -


Competition

We expect to encounter substantial competition in its efforts to locate attractive opportunities, primarily from business development companies, venture capital partnerships and corporations, venture capital affiliates of large industrial and financial companies, small investment companies, and wealthy individuals. Many of these entities will have significantly greater experience, resources and managerial capabilities than we do and will therefore be in a better position to obtain access to attractive business opportunities. We also will experience competition from other public blind pool companies, many of which may have more funds available than we do.

Employees

We currently have no employees other than our sole officer and director. We expect to use consultants, attorneys and accountants as necessary, and do not anticipate a need to engage any full-time employees so long as it is seeking and evaluating business opportunities. The need for employees and their availability will be addressed in connection with the decision whether or not to acquire or participate in specific business opportunities.


ITEM 1A.   RISK FACTORS.

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.


ITEM 2.     PROPERTIES.

We own no real property. As at December 31, 2014, we maintain limited office space located at Suite 201 – 55 York Street, Toronto, Ontario, Canada, M5J 1R7.  We have no monthly rent, nor do we accrue any expense for monthly rent.  Our president provides us his office in which we conduct business on our behalf.   We do not believe that we will need to obtain additional office space at any time in the foreseeable future until our business plan is more fully implemented.


ITEM 3.     LEGAL PROCEEDINGS.

From time to time, we may become involved in various lawsuits and legal proceedings, which arise in the ordinary course of business.  However, litigation is subject to inherent uncertainties, and an adverse result in these or other matters may arise from time to time that may harm our business.

We are not presently a party to any material litigation, nor to the knowledge of management is any litigation threatened against us, which may materially affect us.


ITEM 4.     MINE SAFETY DISCLOSURES.

Not applicable.



- 9 -


PART II

ITEM 5.     MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

Market Information

Our common stock is presently quoted on the Financial Industry Regulatory Authority's (FINRA) Over-the-Counter marketplace under the name "SmartChase Corp." and under the symbol "SCHS". Our common stock par value is $0.001 per share.

There is no established trading market for shares of our common stock and there have been a limited number of trades of our common stock on the OTC Bulletin Board ("OTCBB") during the last two fiscal years.  We cannot provide assurance that any established trading market for our common stock will develop or be maintained.

The following table sets forth, for the fiscal quarters indicated, the high and low closing sale price for our common stock, as reported on the OTCBB system.  The quotations below reflect inter-dealer prices, without retail mark-up, markdown or commissions and may not represent actual transactions.

Fiscal Year – 2014
High
Low
     
Fourth Quarter  10-1-14 to 12-31-14
0.320
0.150
Third Quarter    07-1-14 to 09- 30-14
0.350
0.040
Second Quarter  04-1-14 to 06-30-14
0.065
0.002
First Quarter      01-1-14 to 03-31-14
0.002
0.002
     
Fiscal Year – 2013
High
Low
     
Fourth Quarter  10-1-13 to 12-31-13
No activity
No activity
Third Quarter    07-1-13 to 09- 30-13
No activity
No activity
Second Quarter  04-1-13 to 06-30-13
No activity
No activity
First Quarter      01-1-13 to 03-31-13
No activity
No activity

Holders of Common Stock

As of December 31, 2014, there were 42 holders of record of our Common Stock and 33,942,563 shares outstanding. The beneficial owners of such shares are not known to the Company. Our transfer agent is Empire Stock Transfer.  Empire Stock Transfer is located at 1859 Whitney Mesa Dr., Henderson, NV 89014; telephone: (702) 818-5898; facsimile: (702) 974-1444.

Holders of Preferred Stock

On April 24, 2006, the Company issued 75,000 shares (adjusted post- split) of its preferred stock to seven (7) holders of record. Each share of the Convertible Preferred Stock can be exchanged for two hundred (200) shares of Common Stock of the corporation.  As of December 31, 2014 there are nil preferred shares outstanding.

Dividends

We have never declared or paid a cash dividend on our common stock and do not anticipate declaring or paying cash dividends to shareholders in the foreseeable future.

Securities Authorized for Issuance under Equity Compensation Plans

None.
- 10 -


Issuer Purchases of Equity Securities

On March 21, 2012, a former officer and director of the Company returned his 18,000,000 restricted shares of common stock to the corporate treasury in exchange for $5,000.

Recent Sales of Unregistered Securities

On March 21, 2012, the Company sold 18,000,000 shares of its treasury stock at cost for $5,000 cash. The shares were issued pursuant to the exemption from registration provided by Section 4(2) of the Securities Act of 1933 on the grounds that the transaction did not involve a public offering and the purchaser was furnished with the same information that could be found in a Form S-1 registration statement and was determined to be "sophisticated" as that term is defined in administration decisions of the SEC.


ITEM 6.     SELECTED FINANCIAL DATA.

Pursuant to Item 301(c) of Regulation S-K, the Company, as a smaller reporting company, is not required to provide the information required by this item.


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

This Management's Discussion and Analysis of Financial Condition or Plan of Operation and other sections of this report contain forward-looking statements that are based on the current beliefs and expectations of management, as well as assumptions made by, and information currently available to, the Company's management.  Because such statements involve risks and uncertainties, actual actions and strategies and the timing and expected results thereof may differ materially from those expressed or implied by such forward-looking statements.  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.

The following discussion and analysis of our financial condition and results of operations should be read in conjunction with the audited financial statements and accompanying notes and other financial information appearing elsewhere in this annual report on Form 10-K.

Limited Operating History; Need for Additional Capital

There is limited historical financial information about SmartChase Corp. upon which to base an evaluation of our future performance.  We are a development stage corporation and have generated limited revenues from operations.  We cannot guarantee that we will be successful in our business operations.  We are subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible delays in the exploitation of business opportunities.  We may fail to adopt a business model and strategize effectively or fail to revise our business model and strategy should industry conditions and competition change.

We have limited resources and there is no assurance that future financing will be available to our company on acceptable terms. Additional equity financing could result in dilution to existing shareholders.

Our plan of operation for the next twelve months will be  (i) consider guidelines of industries in which we may have an interest; (ii) adopt a business plan regarding engaging in business in any selected industry; and (iii) to commence such operations through funding and/or the acquisition of an operating entity engaged in any industry selected.

- 11 -


Results of Operations for the years ended December 31, 2014 and 2013

We did not generate any revenues during the fiscal years ended December 31, 2014 and December 31, 2013.

During the fiscal years ended December 31, 2014 and 2013, much of the Company's resources were directed at maintaining the Company in good standing and identifying new business opportunities.  We currently have no definitive agreements or understanding with any prospective business combination candidates.

We had a net loss of $(60,125) for the year ended December 31, 2014 compared to a net loss of $(32,027) for the year ended December 31, 2013.  The change is explained below.

Operating expenses for the twelve months ended December 31, 2014 totaled $61,532 (2013- $33,424) consisting of $675 in general and administrative expenses (2013 - $419), $31,957 in transfer agent and filing fees (2013 - $4,005) and professional fees of $28,900 (2013 - $29,000). Operating expenses were greater in fiscal 2014 primarily as a result of EDGAR filing all of the Company's outstanding public reports with the United States Securities and Exchange Commission. During the year ended December 31, 2014 the Company received $1,406 from foreign currency translation gains (2013 - $1,398).

As of December 31, 2014, we generated limited revenues of $19,491. As a result, we have generated significant operating losses since our formation and expect to incur substantial losses and negative operating cash flows for the foreseeable future as we attempt to expand our infrastructure and development activities. Our ability to continue may prove more expensive than we currently anticipate and we may incur significant additional costs and expenses.

We are subject to risks inherent in the establishment of a new business enterprise.  We may fail to adopt a business model and strategize effectively or fail to revise our business model and strategy should industry conditions and competition change. We have limited resources and there is no assurance that future financing will be available to our Company on acceptable terms. These conditions could further impact our business and have an adverse effect on our financial position, results of operations and/or cash flows.

Liquidity and Capital Resources

At December 31, 2014, we had total assets of $744 comprised solely of cash.  Our liabilities were $147,783, resulting in a working capital deficit of $(147,038), compared to $18,572 in total assets and total liabilities of $105,485 for the year ended December 31, 2013.

We generated no revenues for the fiscal years ended December 31, 2014 and 2013.   We do not anticipate generating any revenues for the foreseeable future.  Since inception, we have used our common stock to raise money to fund our business operations, for corporate expenses and to repay outstanding indebtedness.  Net cash provided by the sale of shares from inception to December 31, 2014 was $719,257.  We did not receive any cash from the sale of shares during the year ended December 31, 2014.

To date, our President has advanced a total of $121,552 (December 31, 2013- $60,352) to us for working capital.  This advance will need to be repaid once funds are available.  There can be no assurance that he will continue to advance funds as required or that methods of financing will be available or accessible on reasonable terms.

We do not have enough money to meet our cash requirements for the next twelve months, as we have yet to commence operations and have not generated any revenues and there can be no assurance that we can generate significant revenues from operations.  During the next twelve months we expect to incur indebtedness for administrative and professional charges associated with preparing, reviewing, auditing and filing our financial statements and our periodic and other disclosure documents to maintain the Company in good standing.

- 12 -


The Company's management is exploring a variety of options to meet the Company's cash requirements and future capital requirements, including the possibility of equity offerings, debt financing and business combinations. There can be no assurance that the Company will be able to raise additional capital, and if the Company is unable to raise additional capital, it will unlikely be able to continue as a going concern.

Going Concern

As of the date of this annual report, there is substantial doubt regarding our ability to continue as a going concern as we have not generated sufficient cash flow to fund our business operations.  The financial statements included in this annual report have been prepared on the going concern basis, which assumes that we will be able to realize our assets and discharge our obligations in the normal course of business.  If we are not to continue as a going concern, it would likely not be able to realize our assets at values comparable to the carrying value or the fair value estimates reflected in the balances set out in the preparation of the financial statements.

Our future success and viability, therefore, are dependent upon our ability to generate capital financing.  The failure to generate sufficient revenues or raise additional capital may have a material and adverse effect upon us and our shareholders.

Critical Accounting Policies and Estimates

The following are the accounting policies that we consider to be critical accounting policies. Critical accounting policies are those that are both important to the portrayal of our financial condition and results and those that require the most difficult, subjective, or complex judgments, often as results of the need to make estimates about the effect of matters that are subject to a degree of uncertainty.

The preparation of financial statements included in this Annual Report on Form 10-K requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  On an on-going basis, management evaluates its estimates and judgments. Management bases its estimates and judgments on historical experiences and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources.  Actual results may differ from these estimates under different assumptions or conditions.  Our accounting policies are described in the notes to the financial statements included in this Annual Report on Form 10-K.

See footnotes in the accompanying financial statements regarding recent financial accounting developments.

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 or operations, liquidity, capital expenditures or capital resources that is material to investors.

Contractual Obligations

None.


ITEM 7A.   QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

Pursuant to Item 305(e) of Regulation S-K, the Company, as a smaller reporting company, is not required to provide the information required by this item.

- 13 -


ITEM 8.     FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.


INDEX TO FINANCIAL STATEMENTS AND SCHEDULES

SMARTCHASE CORP.
(Formerly Northern Empire Energy Corp.)
December 31, 2014 and 2013


 
Index
   
Report of Independent Registered Public Accounting Firm
F–1
   
Balance Sheets
F–2
   
Statements of Operations
F–3
   
Statements of Stockholders' Equity (Deficit)
F–4
   
Statements of Cash Flows
F–5
   
Notes to the Financial Statements
F–6





- 14 -

SEALE AND BEERS, CPAs
PCAOB REGISTERED AUDITORS
www.sealebeers.com

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Board of Directors and Stockholders of
Smartchase Corp.


We have audited the accompanying balance sheets of Smartchase Corp. as of December 31, 2014 and 2013, and the related statements of income, stockholders' equity (deficit), and cash flows for each of the years in the two-year period ended December 31, 2014. Smartchase's management is responsible for these financial statements. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company's internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Smartchase as of December 31, 2014, and 2013, and the related statements of income, stockholders' equity (deficit), and cash flows for each of the years in the two-year  period ended December 31, 2014.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  As discussed in Note 2 to the financial statements, the Company has no revenues, has negative working capital at December 31, 2014, has incurred recurring losses and recurring negative cash flow from operating activities, and has an accumulated deficit which raises substantial doubt about its ability to continue as a going concern.  Management's plans concerning these matters are also described in Note 2.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.


/s/ Seale and Beers, CPAs


Seale and Beers, CPAs
Las Vegas, Nevada
March 18, 2015





F-1
- 15 -

SMARTCHASE CORP.
(Formerly Northern Empire Energy Corp.)
BALANCE SHEET
(Expressed in US Dollars)


   
December 31, 2014
   
December 31, 2013
 
ASSETS
       
         
CURRENT ASSETS
       
Cash and cash equivalents
 
$
744
   
$
18,572
 
TOTAL ASSETS
   
744
     
18,572
 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
               
                 
CURRENT LIABILITIES
               
Accounts payable
 
$
26,231
   
$
45,133
 
Related party loan
   
121,552
     
60,352
 
TOTAL LIABILITIES
   
147,783
     
105,485
 
                 
STOCKHOLDERS' EQUITY (DEFICIT)
               
Preferred Stock, $0.001 par value, 5,000,000 shares authorized,
Nil shares issued and outstanding as of December 31, 2014 and
62,500 at December 31, 2013
   
-
     
63
 
Common stock; $0.001 par value; 195,000,000 shares
authorized; 33,942,563 shares issued and outstanding as of
December 31, 2014 and 21,442,563 at December 31, 2013
   
33,943
     
21,443
 
                 
Additional paid-in capital
   
744,171
     
756,608
 
Accumulated deficit
   
(925,151
)
   
(865,026
)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT)
   
(147,038
)
   
(86,913
)
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
 
$
744
   
$
18,572
 


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













F-2
- 16 -


SMARTCHASE CORP.
(Formerly Northern Empire Energy Corp.)
STATEMENTS OF OPERATIONS
(Expressed in US Dollars)


    
Year Ended
   
Year Ended
 
    
December 31,
   
December 31,
 
   
2014
   
2013
 
         
OPERATING EXPENSES
       
General and administrative
   
675
     
419
 
Transfer Agent and filing fees
   
31,957
     
4,005
 
Professional fees
   
28,900
     
29,000
 
Total Operating Expenses
   
61,532
     
33,424
 
                 
LOSS FROM OPERATIONS
   
(61,532
)
   
(33,424
)
                 
OTHER EXPENSES:
               
Foreign currency transaction gain (loss)
   
1,406
     
1,398
 
     
1,406
     
1,398
 
                 
NET (LOSS) GAIN
   
(60,125
)
   
(32,027
)
                 
NET (LOSS) PER SHARE - BASIC AND DILUTED
 
$
(0.00
)
 
$
(0.00
)
                 
                 
WEIGHTED AVERAGE COMMON EQUIVALENT
SHARES OUTSTANDING - BASIC AND DILUTED
   
24,917,084
     
20,982,317
 


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



















F-3
- 17 -


SMARTCHASE CORP.
(Formerly Northern Empire Energy Corp.)
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
(Expressed in US Dollars)


           
Common
       
Additional
       
Total
 
   
Preferred Stock
   
Common Stock
   
Stock
   
Stock
   
Paid-In
   
Accumulated
   
Stockholders'
 
   
Shares
   
Amount
   
Shares
   
Amount
   
Issuable
   
Payable
   
Capital
   
Deficit
   
Deficit
 
                                     
Balance, December 31, 2012
   
62,500
     
63
     
20,827,216
     
20,827
     
615,347
     
615
     
756,608
     
(832,999
)
   
(54,886
)
                                                                         
Issuance of 615,347 common shares September 30, 2013
   
-
     
-
     
615,347
     
615
     
(615,347
)
   
(615
)
   
-
     
-
     
-
 
                                                                         
Net loss for the year ended
December 31, 2013
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
(32,027
)
   
(32,027
)
                                                                         
Balance, December 31, 2013
   
62,500
     
63
     
21,442,563
     
21,443
     
-
     
-
     
756,608
     
(865,026
)
   
(86,913
)
                                                                         
Conversion of preferred
shares into common stock
   
(62,500
)
   
(63
)
   
12,500,000
     
12,500
     
-
     
-
     
(12,437
)
               
                                                             
-
     
-
 
Net loss for the year ended
December 31, 2014
   
-
     
-
     
-
     
-
     
-
     
-
     
-
     
(60,125
)
   
(60,125
)
                                                                         
Balance, December 31, 2014
   
-
     
-
     
33,942,563
     
33,943
     
-
     
-
     
744,171
     
(925,151
)
   
(147,038
)


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

























F-4
- 18 -


SMARTCHASE CORP.
(Formerly Northern Empire Energy Corp.)
STATEMENTS OF CASH FLOWS
(Expressed in US Dollars)


     
Year Ended
   
Year Ended
 
     
December 31,
   
December 31,
 
   
2014
   
2013
 
CASH FLOW FROM OPERATING ACTIVITIES:
       
Net (loss) gain
 
$
(60,125
)
 
$
(32,027
)
                 
Changes in operating assets and liabilities:
               
Increase (decrease) in accounts payable and accrued expenses
   
(18,903
)
   
10,077
 
Net cash used in operating activities
   
(79,028
)
   
(21,950
)
                 
CASH FLOW FROM FINANCING ACTIVITIES:
               
Advances from related party
   
61,200
     
40,522
 
Common stock issued for cash
   
-
     
-
 
Net cash provided by financing activities
   
61,200
     
40,522
 
                 
NET INCREASE (DECREASE) IN CASH
   
(17,828
)
   
18,572
 
                 
CASH AND CASH EQUIVALENTS, Beginning of year
   
18,572
     
-
 
                 
CASH AND CASH EQUIVALENTS, End of year
 
$
744
   
$
18,572
 


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





















F-5
- 19 -

SMARTCHASE CORP.
(Formerly Northern Empire Energy Corp.)
Notes to the Financial Statements
December 31, 2014 and 2013


NOTE 1 – BUSINESS AND ORGANIZATION

SmartChase Corp. ("we", "our" or the "Company") was organized on April 24, 2006, under the laws of the State of Nevada.  The Company's principal business plan up to December 31, 2010 was to engage in oil and gas exploration. The Company is now seeking alternative business opportunities and is furthering its business plan.


NOTE 2 - GOING CONCERN

These financial statements have been prepared in accordance with generally accepted accounting principles applicable to a going concern which contemplates the realization of assets and the satisfaction of liabilities and commitments in the normal course of business.  As of December 31, 2014, the Company has accumulated operating losses of approximately $925,151 (2013 - $865,026).  The Company's ability to continue as a going concern is contingent upon the successful completion of additional financing arrangements and its ability to achieve and maintain profitable operations.  Management plans to raise equity capital to finance the operating and capital requirements of the Company.  While the Company is putting forth its best efforts to achieve the above plans, there is no assurance that any such activity will generate funds that will be available for operations.

These conditions raise substantial doubt about the Company's ability to continue as a going concern.  These financial statements do not include any adjustments that might arise from this uncertainty.


NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES

The Company's financial statements are prepared using the accrual method of accounting.  The Company has elected a December 31 year-end.

Basis of Accounting

The basis is United States generally accepted accounting principles.

Use of Estimates

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

Revenue Recognition

The Company recognizes revenue on an accrual basis. Revenue is generally realized or realizable and earned when all of the following criteria are met:  1) persuasive evidence of an arrangement exists between the Company and our customer(s); 2) services have been rendered; 3) our price to our customer is fixed or determinable; and 4) collectability is reasonably assured.


F-6
- 20 -

SMARTCHASE CORP.
(Formerly Northern Empire Energy Corp.)
Notes to the Financial Statements
December 31, 2014 and 2013


NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (continued)

Income taxes

The Company accounts for its income taxes in accordance with FASB ASC Topic 740-10, "Income Taxes", which requires recognition of deferred tax assets and liabilities for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

Net Loss Per Common Share

FASB ASC Topic 260-10, "Earnings per Share", requires presentation of "basic" and "diluted" earnings per share on the face of the statements of operations for all entities with complex capital structures.  Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted during the period. Dilutive securities having an anti- dilutive effect on diluted earnings per share are excluded from the calculation.

Stock-Based Compensation

The Company has adopted FASB ASC Topic 718-10, "Compensation- Stock Compensation" ("ASC 718-10") which requires the measurement and recognition of compensation expense for all stock-based payment awards made to employees and directors. Under the fair value recognition provisions of ASC 718-10, stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the vesting period.

Determining the fair value of stock-based awards at the grant date requires considerable judgment, including estimating the expected future volatility of our stock price, estimating the expected length of term of granted options and selecting the appropriate risk-free rate. There is no established trading market for our stock.

Financial instruments

The fair value of the Company's financial assets and financial liabilities approximate their carrying values due to the immediate or short-term maturity of these financial instruments.

Cash and Cash Equivalents

The Company considers all highly liquid instruments with a maturity of three months or less at the time of issuance to be cash equivalents. The Company maintains its cash in bank deposit accounts, which, at times, may exceed federally insured limits. Management does not believe the Company is exposed to significant credit risk. Management, as well, does not believe the Company is exposed to significant interest rate and foreign currency fluctuation risks during the period presented in these financial statements.  As at December 31, 2014 and 2013, the Company has cash equivalents in the amount of $ nil and $ nil that are over the federally insured limit.

F-7
- 21 -

SMARTCHASE CORP.
(Formerly Northern Empire Energy Corp.)
Notes to the Financial Statements
December 31, 2014 and 2013


NOTE 3 - SIGNIFICANT ACCOUNTING POLICIES (continued)

Foreign Currency Translation

The Company's functional and reporting currency is the United States dollar. Occasional transactions may occur in Canadian dollars and management has adopted FASB ASC topic 830 "Foreign Currency Matters". Monetary assets and liabilities denominated in foreign currencies are translated using the exchange rate prevailing at the balance sheet date. Non-monetary assets and liabilities denominated in foreign currencies are translated at rates of exchange in effect at the date of the transaction. Average monthly rates are used to translate revenues and expenses. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. The Company has not, to the date of these financials statements, entered into derivative instruments to offset the impact of foreign currency fluctuations.


NOTE 4 – RELATED PARTY TRANSACTIONS

As of December 31, 2014 the President of the Company is owed $121,552 for loans and payments made directly to vendors on behalf of the Company (2013 - $60,352).  The amount due is unsecured, non-interest bearing and due on demand.


NOTE 5 – STOCKHOLDER'S EQUITY

As of December 31, 2014 there were 33,942,563 shares of common stock issued and outstanding and nil shares of preferred stock issued and outstanding (2013 – 21,442,563 and 62,500 respectively).

During the year ended December 31, 2014, an aggregate of 62,500 preferred shares of stock were converted into 12,500,000 shares of common stock at a conversion rate of 200 to 1.


NOTE 6 – RECENT ACCOUNTING PRONOUNCEMENTS

During the year ended December 31, 2014, the Company has elected to early adopt Accounting Standards Update No. 2014-10, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements.  The adoption of this ASU allows the Company to remove the inception to date information and all references to development stage.









F-8
- 22 -

SMARTCHASE CORP.
(Formerly Northern Empire Energy Corp.)
Notes to the Financial Statements
December 31, 2014 and 2013


NOTE 7 - PROVISION FOR INCOME TAXES

The Company provides for income taxes under ASC 740 which requires the use of an asset and liability approach in accounting for income taxes.  Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse.  ASC 740 requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The provision for income taxes differs from the amounts which would be provided by applying the statutory federal income tax rate of 39% to the net loss before provision for income taxes for the following reasons:

   
December 31, 2014
   
December 31, 2013
 
         
Income tax expense at statutory rate
 
$
0
   
$
0
 
Common stock issued for services
   
0
     
0
 
Valuation allowance
   
0
     
0
 
Income tax expense per books
 
$
0
   
$
0
 

Net deferred tax assets consist of the following components as of:

   
December 31, 2014
   
December 31, 2013
 
         
NOL carryover
 
$
(925,151
)
 
$
(865,026
)
Deferred tax benefit
   
360,809
     
337,360
 
Valuation Allowance
   
(360,809
)
   
(337,360
)
Net deferred tax benefit
 
$
0
   
$
0
 

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $nil for federal income tax reporting purposes are subject to annual limitations.  Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.


NOTE 8 –SUBSEQUENT EVENTS

The Company has evaluated subsequent events through the date the financial statements are issued and believes there are no events to disclose.









F-9
- 23 -

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

There have been no disagreements on accounting and financial disclosures from the inception of the Company through the date of this Form 10-K.  Our financial statements for the last two fiscal years ended December 31, 2014 and 2013, included in this report have been audited by Seale and Beers, CPAs, 8250 W Charleston Blvd, Suite 100 Las Vegas, NV, 89117, as set forth in their report included herein.


ITEM 9A.   CONTROLS AND PROCEDURES.

Evaluation of Disclosure Controls and Procedures

Under the supervision and with the participation of our management, including the Principal Executive Officer and Principal Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as required by Exchange Act Rule 13a-15(b) as of the end of the period covered by this report. Based on that evaluation, the Principal Executive Officer who also serves as our Principal Financial Officer has concluded that our disclosure controls and procedures are not effective to detect the inappropriate application of US GAAP rules. This was due to deficiencies that existed in the design or operation of our internal control over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses.  The deficiencies in our internal control over financial reporting are described below.

Management's Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). The Company's internal control over financial reporting is a process designed to provide reasonable assurance to our management and board of directors regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.

Our internal control over financial reporting includes those policies and procedures that  (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) 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 (iii) 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 controls over financial reporting may not prevent or detect misstatements. All internal control systems, no matter how well designed, have inherent limitations, including the possibility of human error and the circumvention of overriding controls. Accordingly, even effective internal control over financial reporting can provide only reasonable assurance with respect to financial statement preparation. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Our management assessed the effectiveness of our internal control over financial reporting as of December 31, 2014. In making this assessment, it used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control-Integrated Framework.  Based on our assessment, as of December 31, 2014, management has concluded that the Company maintained ineffective internal control over financial reporting in the following areas:

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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.
Insufficient written policies and procedures for accounting and financial reporting with respect to the requirements and application of US GAAP and SEC disclosure requirements.

The aforementioned material weaknesses identified by our Principal Executive Officer and Principal Financial Officer in connection with the review of our financial statements as of December 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.

Attestation Report of the Registered Public Accounting Firm

This annual report does not include an attestation report of the Company's registered public accounting firm regarding internal control over financial reporting.  Management's report was not subject to attestation by the Company'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 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.  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 majority of outside directors on our Board.

We will continue to monitor and evaluate the effectiveness of our internal controls and procedures and our internal controls over financial reporting on an ongoing basis and are committed to taking further action and implementing additional enhancements or improvements as necessary and as funds allow.

Changes in Internal Control Over Financial Reporting

There were no changes to our internal control over financial reporting that occurred during the last quarter of our fiscal year ended December 31, 2014 that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.

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ITEM 9B.   OTHER INFORMATION.

None.


PART III

ITEM 10.   DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

Identification of Directors and Executive Officers

The following are our directors and executive officers and significant employees at December 31, 2014.  Each director holds office until the next annual meeting of shareholders and until the director's successor is elected and qualified or until the director's resignation or removal.  Each executive officer holds office for the term for which such officer is elected or appointed and until a successor is elected or appointed and qualified or until such officer's resignation or removal.

Name
Age
Title
Held Position Since
       
Raniero Corsini
51
President, Principal Executive
Officer, Principal Financial
Officer, Treasurer, Secretary
and Director
Officer since March 21, 2012
Director since March 20, 2012

Background of Officers and Directors

Raniero Corsini: President, Principal Executive Officer, Principal Financial Officer, Treasurer, Secretary and Director

Mr. Corsini is the founder of Carlisle Bancorp, an international merchant bank based in Toronto, Canada, and currently serves as its President and CEO.  From 2009 to 2011 he was the President & CEO of Monarch Wealth Corp., an independent wealth management firm and grew its assets to over C$600 million. From 2001 to 2009 he also served as the President of Sentry Select UK and SVP of its Canadian operations where he grew the asset management business with assets over C$8 billion. Mr. Corsini received a BBA from the United States International University in London, UK and is fluent in six languages.   Mr. Corsini has served as a director of SmartChase Corp. (OTCQB: SCHS) since March 2012 and was a director of MeeMee Media Inc. (OTCQB: MEME) from July 2010 through July 2013.  He also currently serves on the Board of Spire Technologies Inc. (OTCQB: SPTK).

Involvement in Certain Legal Proceedings

During the past ten years, Mr. Corsini has not been the subject of the following events:

1.
A petition under the Federal bankruptcy laws or any state insolvency law was filed by or against, or a receiver, fiscal agent or similar officer was appointed by a court for the business or property of such person, or any partnership in which he was a general partner at or within two years before the time of such filing, or any corporation or business association of which he was an executive officer at or within two years before the time of such filing;
   
2.
Convicted in a criminal proceeding or is a named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);
   
- 26 -


3.
The subject of any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from, or otherwise limiting, the following activities;
   
 
i)
Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator,  floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;
     
 
ii)
Engaging in any type of business practice; or
     
 
iii)
Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal or State securities laws or Federal commodities laws;
     
4.
The subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal or State authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described in paragraph 3.i in the preceding paragraph or to be associated with persons engaged in any such activity;
   
5.
Was found by a court of competent jurisdiction in a civil action or by the Commission to have violated any Federal or State securities law, and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended, or vacated;
   
6.
Was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any Federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated;
   
7.
Was the subject of, or a party to, any Federal or State judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of:
   
 
i)
Any Federal or State securities or commodities law or regulation; or
     
 
ii)
Any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order, or
     
 
iii)
Any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or
     
8.
Was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act (15 U.S.C. 78c(a)(26))), any registered entity (as defined in Section 1(a)(29) of the Commodity Exchange Act (7 U.S.C. 1(a)(29))), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member.

Family Relationships

There are no family relationships between or among the directors, executive officers or persons nominated or chosen by us to become directors or executive officers.


- 27 -


Section 16(a) Beneficial Ownership Reporting Compliance

Section 16(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), requires our executive officers and directors, and persons who beneficially own more than ten percent of our common stock, to file initial reports of ownership and reports of changes in ownership with the SEC. Executive officers, directors and greater than ten percent beneficial owners are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file.  To the best of the Company's knowledge, all such reports as required to be filed during the 2014 fiscal year were filed on a timely basis in compliance with Section 16(a).

Committees of the Board and Audit Committee Financial Expert

Our Board of Directors held no formal meetings during the 12 month period ended December 31, 2014.  All proceedings of the Board of Directors were conducted by resolutions consented to in writing by the directors and filed with the minutes of the proceedings of the directors.  Such resolutions consented to in writing by the directors entitled to vote on that resolution at a meeting of the directors are, according to the Nevada Revised Statutes and the bylaws of our company, as valid and effective as if they had been passed at a meeting of the directors duly called and held.  We do not presently have a policy regarding director attendance at meetings.

We do not currently have standing audit, nominating or compensation committees, or committees performing similar functions.  Due to the size of our board, our Board of Directors believes that it is not necessary to have standing nominating or compensation committees at this time because the functions of such committees are adequately performed by our Board of Directors.  We do not have a nominating or compensation committee charter as we do not currently have such committees.  We do not have a policy for electing members to the board.

The Company does not presently have, among its officers and directors, a person meeting considered an "audit committee financial expert" as defined in Item 401 of Regulation S-K and given our financial circumstances, we do not anticipate seeking an audit committee financial expert to join the committee in the foreseeable future.

It is anticipated that the Board of Directors will form separate audit, compensation and nominating committees at such time as the Company's operations have expanded.

Code of Ethics

The Company has not adopted a code of business conduct and ethics for directors, officers and employees.



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ITEM 11.   EXECUTIVE COMPENSATION

The following table summarizes all compensation awarded to, earned by, or paid to our executive officers as of December 31, 2014 for all services rendered in all capacities to us during the last three completed fiscal years.

             
Nonqualified
   
Name
         
Non-Equity
Deferred
   
and
     
Stock
Option
Incentive Plan
Compensation
All Other
 
Principal
 
Salary
Bonus
Awards
Awards
Compensation
Earnings
Compensation
Total
Position
Year
(US$)
(US$)
(US$)
(US$)
(US$)
(US$)
(US$)
(US$)
(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
                   
Raniero Corsini
President, Principal Executive
Officer, Principal Financial
Officer, Treasurer, Secretary
and Director
(appointed officer 03/21/2012
and director 03/20/2012)
2014
0
0
0
0
0
0
0
0
2013
0
0
0
0
0
0
0
0
2012
0
0
0
0
0
0
0
0
                   
Martin Doane
Former Vice President, former
Secretary and former Director
(resigned 09/04/2013)
2014
0
0
0
0
0
0
0
0
2013
0
0
0
0
0
0
0
0
2012
0
0
0
0
0
0
0
0
                   
Jeffrey Cocks
Former President, former
Principal Financial Officer,
former Director
(resigned 03/21/2012)
2014
0
0
0
0
0
0
0
0
2013
0
0
0
0
0
0
0
0
2012
0
0
0
0
0
0
0
0

Employment Agreements

There are no employment agreements with our sole officer and none are being contemplated.  The compensation discussed herein addresses all compensation awarded to, earned by, or paid to our sole named executive officer.  There are no other stock option plans, retirement, pension, or profit sharing plans for the benefit of our sole officer.

Securities Authorized for Issuance Under Compensatory Plans

None.

Long-Term Incentive Plan Awards

The Company does not have any long-term incentive plans that provide compensation intended to serve as incentive for performance to occur over a period longer than one fiscal year, whether such performance is measured by reference to the Company's financial performance, stock price or any other measure.

Options/SAR Grants

No individual grants of stock options, whether or not in tandem with stock appreciation rights ("SARs") and freestanding SARs have been made to our sole executive officer, or directors or employees during the current fiscal year.  No stock options have been previously granted.



- 29 -


Compensation of Directors

We have no standard arrangement to compensate our sole director for his services in his capacity as director.  Directors are not paid for meetings attended.  However, we intend to review and consider future proposals regarding board compensation.  All travel and lodging expenses associated with corporate matters are reimbursed by us, if and when incurred.  We did not pay our sole director any compensation during fiscal year ending December 31, 2014.

Potential Payments Upon Termination or Change-in-Control

SEC regulations state that we must disclose information regarding agreements, plans or arrangements that provide for payments or benefits to our executive officers in connection with any termination of employment or change in control of the company.

We currently have no employment agreements nor any compensatory plans or arrangements with any of our executive officers that may result from the resignation, retirement or any other termination of any of our executive officers, from a change-in-control, or from a change in any executive officer's responsibilities following a change-in-control.

Indemnification of Directors and Executive Officers and Limitation of Liability

Nevada Law

Section 78.7502 of the Nevada Revised Statutes permits a corporation to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, except an action by or in the right of the corporation, by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise, against expenses, including attorneys' fees, judgments, fines and amounts paid in settlement actually and reasonably incurred by him in connection with the action, suit or proceeding if he:

(a) is not liable pursuant to Nevada Revised Statute 78.138, or
(b) acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation, and, with respect to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful.

In addition, Section 78.7502 permits a corporation to indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the corporation to procure a judgment in its favor by reason of the fact that he is or was a director, officer, employee or agent of the corporation, or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise against expenses, including amounts paid in settlement and attorneys' fees actually and reasonably incurred by him in connection with the defense or settlement of the action or suit if he:

(a) is not liable pursuant to Nevada Revised Statute 78.138; or
(b) acted in good faith and in a manner which he reasonably believed to be in or not opposed to the best interests of the corporation.

To the extent that a director, officer, employee or agent of a corporation has been successful on the merits or otherwise in defense of any action, suit or proceeding referred to above, or in defense of any claim, issue or matter, the corporation is required to indemnify him against expenses, including attorneys' fees, actually and reasonably incurred by him in connection with the defense.

- 30 -


Section 78.752 of the Nevada Revised Statutes allows a corporation to purchase and maintain insurance or make other financial arrangements on behalf of any person who is or was a director, officer, employee or agent of the corporation or is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership, joint venture, trust or other enterprise for any liability asserted against him and liability and expenses incurred by him in his capacity as a director, officer, employee or agent, or arising out of his status as such, whether or not the corporation has the authority to indemnify him against such liability and expenses.

Other financial arrangements made by the corporation pursuant to Section 78.752 may include the following:

(a) the creation of a trust fund;
(b) the establishment of a program of self-insurance;
(c) the securing of its obligation of indemnification by granting a security interest or other lien on any assets of the corporation; and
(d) the establishment of a letter of credit, guaranty or surety

No financial arrangement made pursuant to Section 78.752 may provide protection for a person adjudged by a court of competent jurisdiction, after exhaustion of all appeals, to be liable for intentional misconduct, fraud or a knowing violation of law, except with respect to the advancement of expenses or indemnification ordered by a court.

Any discretionary indemnification pursuant to NRS 78.7502, unless ordered by a court or advanced pursuant to an undertaking to repay the amount if it is determined by a court that the indemnified party is not entitled to be indemnified by the corporation, may be made by the corporation only as authorized in the specific case upon a determination that indemnification of the director, officer, employee or agent is proper in the circumstances. The determination must be made:

(a) by the stockholders;
(b) by the board of directors by majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding;
(c) if a majority vote of a quorum consisting of directors who were not parties to the action, suit or proceeding so orders, by independent legal counsel in a written opinion, or
(d) if a quorum consisting of directors who were not parties to the action, suit or proceeding cannot be obtained, by independent legal counsel in a written opinion.


ITEM 12.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The following table sets forth the beneficial shareholdings of those persons or entities who beneficially hold five percent or more of the Company's common stock, and our directors and executive officers as a group, as of December 31, 2014, with the computation being based upon 33,942,563 shares of common stock being outstanding.  Each person has sole voting and investment power with respect to the shares of common stock shown and all ownership is of record and beneficial.

Title of Class
Name of Beneficial Owner
Position
Direct Amount of
Beneficial Owner
Percent
of Class
(1)
         
Common
Raniero Corsini
President, Principal Executive
Officer, Principal Financial Officer,
Treasurer, Secretary and director
18,000,000
53.03%
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All Officers and Directors as a Group
(1 Persons)
 
18,000,000
53.03%
       
Principal Shareholders
     
       
Fast – Cede & Co. (2)
55 Water Street 2SL
New York, NY 10041
 
2,530,900
7.46%

(1)    The percentages listed in the percent of class column are based upon 33,942,563 issued and outstanding shares of Common Stock.
(2)    Cede & Co. acting as a depository service for beneficial holders of the Company's common stock, holds an aggregate of  2,530,900  common shares. The beneficial owners of such shares are not known to the Company.

Changes in Control

We are not aware of any arrangements that may result in "changes in control" as that term is defined by the provisions of Item 403(c) of Regulation S-B.

Preferred Convertible Securities

At the time of incorporation, we issued 75,000 (adjusted for stock split) non-voting Callable and Convertible referred shares.  We filed with the Nevada Secretary of State the designation that "These Series A Preferred shares shall be designated as Callable and Convertible Preferred Stock."  The corporation had the right to call for and purchase these shares at any time, within twelve months of issue, either at par value or at a slight premium above par value, or if corporation should designate that these shares are deemed not callable, the holders of these non-voting Series A Callable and Convertible Preferred Shares would have the right to cause the corporation to redeem shares for Common Stock at any time.  Each holder of the non-voting Series A Callable and Convertible Preferred Stock would have the right to convert all or any portion of such shares as such holder desires to convert, into shares of the Common Stock of the corporation, as follows: each share of Series A Callable and Convertible Preferred Stock would be exchanged for two hundred (200) shares of Common Stock of the Corporation.  The conversion of 75,000 Series A Callable and Convertible Preferred Shares converts into 15,000,000 common shares.

Through a Board Resolution in November 2008, it was resolved that we shall not call nor redeem our Series A non-voting Callable and Convertible Preferred shares.  The shareholders of the Series A Preferred shares will be permitted to convert each Series A Preferred share owned for two hundred (200) common shares, at their sole discretion.   During the year ended December 31, 2014, an aggregate of 62,500 preferred shares were converted into 12,500,000 shares of common stock.  As of December 31, 2014, nil preferred shares remain issued and outstanding.


ITEM 13.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

Certain Business Relationships

The company's president has contributed office space for our use.  There is no charge to us for the space.  Our president will not seek reimbursement for office rent expenses.  As of December 31, 2014 the president of the Company is owed $121,552 (2013 - $60,352) for loans and payments made directly to vendors on behalf of the Company.  The amount due is unsecured, non-interest bearing and due on demand.


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Review, Approval or Ratification of Transactions with Related Persons

We rely on our Board to review related party transactions on an ongoing basis to prevent conflicts of interest.  Our Board reviews a transaction in light of the affiliations of the director, officer or employee and the affiliations of such person's immediate family. Transactions are presented to our Board for approval before they are entered into or, if this is not possible, for ratification after the transaction has occurred. If our Board finds that a conflict of interest exists, then it will determine the appropriate remedial action, if any. Our Board approves or ratifies a transaction if it determines that the transaction is consistent with the best interests of the Company.

Director Independence

Our common stock is currently quoted on the OTC Bulletin Board and is not listed on the Nasdaq Stock Market or any other national securities exchange. Accordingly, we are not currently subject to the Nasdaq continued listing requirements or the requirements of any other national securities exchange.  Nevertheless, in determining whether a director or nominee for director should be considered "independent" the board utilizes the definition of independence set forth in Rule 4200(a)(15) of the Nasdaq Marketplace Rules.  Pursuant to that definition, given the fact that our Board currently consists of one sole member, none of the members of our Board of Directors is independent.


ITEM 14.   PRINCIPAL ACCOUNTANT FEES AND SERVICES.

Seale and Beers, CPAs served as our principal independent public accountants for fiscal years ending December 31, 2014 and 2013.  Aggregate fees billed to us for the years ended December 31, 2014 and 2013 are as follows:

 
For the Years Ended December 31,
 
2014
2013
     
(1)    Audit Fees (i)
$4,500
$22,500
(2)    Audit – Related Fees
-0-
-0-
(3)    Tax Fees
-0-
-0-
(4)    All Other Fees
-0-
-0-

(i)   Audit Fees include fees billed and expected to be billed for services performed to comply with Generally Accepted Auditing Standards (GAAS), including the recurring audit of the Company's financial statements for such period included in this Annual Report on Form 10-K and for the reviews of the quarterly financial statements included in the Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission.

(5)  Our audit committee's pre-approval policies and procedures described in paragraph (c)(7)(i) of Rule 2-01 of Regulation S-X were that the audit committee pre-approves all accounting related activities prior to the performance of any services by any accountant or auditor.

(6)  Less than 50 percent of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.


- 33 -


PART IV

ITEM 15.   EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

a)   The following financial statements are set forth in Item 8:

   
Page No.
 
Report of Independent Registered Public Accounting Firm
F–1
 
Balance Sheets
F–2
 
Statements of Operations
F–3
 
Statements of Stockholders' Equity (Deficit)
F–4
 
Statements of Cash Flows
F–5
 
Notes to the Financial Statements
F–6

b)   The following exhibit index shows those exhibits filed with this report and those incorporated herein by reference:

   
Incorporated by reference
 
Exhibit
Document Description
Form
Date
Number
Filed
herewith
           
3.1
Articles of Incorporation, as currently in effect
SB-2
02/21/2007
3.1
 
           
3.2
Bylaws as currently in effect
SB-2
02/21/2007
3.2
 
           
3.3
Amended Articles of Incorporation
SB-2
02/21/2007
3.3
 
           
3.4
Amended Articles of Incorporation
8-K
11/19/2008
3.4
 
           
10.1
Option Agreement dated November 17, 2008
8-K
11/19/2008
10.2
 
           
10.2
Option Sale Agreement of Petroleum and Natural Gas Rights,
dated December 16, 2009
8-K
12/18/2009
10.2
 
           
10.4
Securities Redemption Agreement between Northern Empire
Energy Corp. and Jeffery Cocks, dated as of March 21, 2012.
8-K
03/23/2012
10.4
 
           
31.1
Certification of Principal Executive Officer and Principal
Financial Officer pursuant to 15d-15(e), promulgated
under the Securities and Exchange Act of 1934, as amended
     
X
           
32.1
Certification pursuant to 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
(Chief Executive Officer and Chief Financial Officer)
     
X



- 34 -


SIGNATURES

Pursuant to the requirements of Section 13 or 15 (d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on behalf by the undersigned, thereto duly authorized.


 
SMARTCHASE CORP.
     
 
BY:
/s/ RANIERO CORSINI
   
Raniero Corsini, Chief Executive Officer & Chief
Financial Officer
     
 
Date:
March 20, 2015


Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons and on behalf of the registrant and in the capacities and on the dates indicated.


Signature
Title
Date
     
By: /s/RANIERO CORSINI
President, Principal Executive Officer,
 
Raniero Corsini
Principal Financial Officer, Principal Accounting
 
 
Officer, Secretary, Treasurer and Director
 
   
March 20, 2015








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