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EX-31 - 302 CERT - CEO - NEVADA CLASSIC THOROUGHBREDS INCrex311_063015.htm
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EX-31 - 302 CERT - CFO - NEVADA CLASSIC THOROUGHBREDS INCrex312_063015.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

Form 10-KSB

(Mark One)

x  ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended June 30, 2015

¨  TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______________ to ______________

Commission file number: 000-31154

Nevada Classic Thoroughbreds, Inc.
(Name of small business issuer in its charter)

Nevada

86-1007952

(State or other jurisdiction of incorporation
or organization)

(I.R.S. EIN)

 

6163 E. Greenway Street, #2, Mesa, AZ

85205

(Address of principal executive offices)

(Zip Code)

Issuer's telephone number:
(480) 890-0678

     Securities registered under Section 12(b) of the Exchange Act:
None

Securities registered under 12(g) of the Exchange Act:
Common Stock
(Title of Class)

Ranch Preferred Stock
(Title of Class)

Horse Preferred Stock
(Title of Class)



Check whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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         

Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-B is not contained in this form, and no disclosure will 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-KSB or any amendment to this Form 10-KSB.   X  

State issuer's revenues for its most recent fiscal year. $0.00

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 sold, or the average bid and asked price of such common equity, as of a specified date within the past 60 days. (See definition of affiliate in Rule 12b-2 of the Exchange Act.)

Not Applicable

(ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PAST FIVE YEARS)

Not Applicable

(APPLICABLE ONLY TO CORPORATE REGISTRANTS)

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date.

1,900,000 shares Common Stock
4,000,000 shares Preferred Stock (2,000,000 shares Ranch Preferred and 2,000,000 shares Horse Preferred)
 
Transitional Small Business Disclosure Format (Check one):       Yes            No   X  

2


TABLE OF CONTENTS

PAGE

PART I:

           Item 1: Description of Business
           Item 2: Description of Property
           Item 3:

Legal Proceedings

           Item 4: Submission of Matters to a Vote of Security Holders
 

PART II:

           Item 5:

Market for Common Equity and Related Stockholder Matters

           Item 6: Management's Discussion and Analysis or Plan of Operation
           Item 7:

Financial Statements

           Item 8: Changes In and Disagreements With Accountants on Accounting and Financial Disclosure 18 
                   8a: Effectiveness of the Company's Controls and Procedures 18 
 

PART III:

           Item 9: Directors, Executive Officers, Promoters and Control Persons;
Compliance With Section 16(a) of the Exchange Act
18 
           Item 10: Executive Compensation 18 
           Item 11: Security Ownership of Certain Beneficial Owners and Management 19 
           Item 12: Certain Relationships and Related Transactions 19 
           Item 13: Exhibits and Reports on Form 8-K 19 
 
SIGNATURES   20 

3


PART I:

ITEM 1: Description of Business.

Nevada Classic Thoroughbreds, Inc. (henceforth referred to as "NCT" or the "company") has developed a thoroughbred racing and breeding stallion, proprietary horse racing structure. The company is specialized, making it possible for one or two people to maintain the operation of the company.

The company's proprietary solution to the horse racing industry's challenge is Power Genetics Mathematical Racing Numbers™ ("PGMRN"), pre-potent characteristics in horses that can reproduce themselves.

MARKET

There are three distinct markets for the company's horses.

The first market is to race company horses in "claiming races." The claiming race is to enable people to buy the company's horses at the racetrack. This is a viable means of eliminating horses that are good but not quite able to compete at the top level of horse racing.

The second market is racing income from the racetrack. When the race horse races and performs well, NCT will receive income, or "purse money," from the winnings.

The third market is for the syndication of stallions. The stallions that possess outstanding pedigrees, conformation, and race records are syndicated into breeding shares. A breeding share entitles the share owner to breed one mare to the stallion in any one particular breeding season for the duration of the stallion's life.

The company is not dependent on only a few customers, since the horse racing industry's market is virtually nationwide, where the horses can be purchased or sold virtually throughout the entire United States. The company is not limited by its customers or limited by the location of its selected horses. These stallions are, almost without exception, readily available and accessible.

The company does not require governmental approval or licensing for any of its stallion racing or breeding prospects. However, the racetrack requires a normal training license where the horse is intended to race. The licensing is to provide safety for the horse and riders who train and compete at that specific track.

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4


ITEM 2: Description of Property.

No horses at this time.

ITEM 3: Legal Proceedings.

Not Applicable.

ITEM 4: Submission of Matters to a Vote of Security Holders.

Not Applicable.

PART II:

ITEM 5: Market for Common Equity and Related Stockholder Matters.

There are no markets for the company's securities. The company is inactive at the present time.

The company intends to obtain a market maker for the company's common stock and horse preferred stock.

The market for the company's stock is in the heart of the horse racing and gaming industry. One or more market makers in either of the states of Kentucky, California, Nevada, or New York would suit the needs of the investors as well as providing the company with representation in the horse racing industry, thereby giving investors the flexibility of various security goals and the company with its liquidity to take advantage of opportunities as they arise. The company needs to meet the needs of its shareholders in their buying and selling of the company's securities, and in their investment objections, having available horse preferred stock in the horses the company acquires. Investors may want the the potential capital appreciation of the company's horses.

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5


ITEM 6: Management's Discussion and Analysis or Plan of Operation.

The company is now inactive, and plans to remain inactive until such time as new liquidity can be acquired for the purpose of purchasing additional stallion prospects.

RESULT OF OPERATIONS

Power Genetics Mathematical Racing Numbers™ (PGMRN)

COMPETITION

The competition is catching up to the company in one aspect of NCT's proprietary PGMRN Number Indexes, specifically Index 6. For example, Lost In The Fog, a horse-of-the-year candidate in 2005, won ten straight races before being defeated in the Breeders Cup Championship Series Sprint race. Lost In The Fog was analyzed by a company that analyzes efficiency of stride. According to the Breeders Cup announcers, they analyzed length of stride and time in the air, and he was selected for this quality. This would imply that some individuals are beginning to understand and apply the relationship of Index 6 to a quality of the race horse.

The competition is still behind the company in using the total Power Numbers in selecting horses for breeding and racing. The indicators are that some owners and trainers are willing to go through the expense of analyzing Index indicator Number 6 to help in their selection process, especially the select Kentucky sales, where horses are sold for millions of dollars. However, the other indicators seem to be unnoticed at the present time in comparing horses that have good indicators to those that do not. Their price seems to be relatively the same, and no correspondence seems to exist between the poor and good indicators and the prices at which they are sold. The thoroughbred sales in California and Texas have usually less expensive horses, and it is rare that anyone would go to the expense of analyzing these horses because of their lower auction prices. This gives the company a big advantage. The company can see the horses a day before the sale, analyze hundreds of horses using the complete Power Index Numbers rather than just Index 6, and purchase or bid on horses that have the complete package.

MARKET MAKING

The company is in the process of obtaining a market maker for its stock, and anticipates being on the Pink Sheets until the company meets the requirements of the OTC Bulletin Board. While the company is in the process of securing a market maker, there can be no guarantees that a market maker will be available, or that the company will meet their requirements in order to make a market for the company's securities.

FINANCIAL CONDITION AND LIQUIDITY

The Company expects to remain inactive. The Board of Directors intends to pay a substantial portion of the company's expenses, as determined on an on-going basis by the Board of Directors, until such time as the company is able to produce a profit.

The officers and directors have paid the majority of the company's expenses.

ITEM 7: Financial Statements.

The following financial statements are attached to this 10-KSB Annual Report and filed as a part hereof.

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6


NEVADA CLASSIC THOROUGHBREDS, INC.
(A Development Stage Company)

CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

JUNE 30, 2015

Index to Financial Statements

FINANCIAL STATEMENTS

PAGE   
 

       Balance Sheet

  8  

       Statement of Operations

  9  

       Statement of Stockholders' Equity

  10  

       Statement of Cash Flows

  12  

       Notes to Financial Statements

  13  
       

 

 

 

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7


BALANCE SHEET

FOR PERIOD ENDING JUNE 30, 2015

ASSETS
          JUNE 30, 2015       JUNE 30, 2014
         

     

CURRENT ASSETS

                   
 

Cash

      $ 0          $ 0   
       Corporate Checking account      
0            0   
       Corporate Savings account         0            0   
       Real estate investment             13,954            13,954   
         

     

TOTAL ASSETS

        13,954            13,954   
         

     

                       
LIABILITIES AND STOCKHOLDERS' EQUITY
                       

CURRENT LIABILITIES

                   
 

Accounts payable

      $       $ 0   
  Credit Line        
        0   
                       

STOCKHOLDERS' EQUITY

                   
 

Horse and Ranch Preferred Stock,

                   
 

     par value $.001 per share

                   
 

Authorized 5,000,000 (2,500,000 Horse Preferred

                   
 

     and 2,500,000 Ranch Preferred) shares;

                   
 

     4,000,000 shares issued and outstanding

                   
 

     (2,000,000 Horse Preferred and 2,000,000
       Ranch Preferred
)

$

4,000 

       

4,000 

     
 

Common stock,

                   
 

     par value $.001 per share

                   
 

Authorized 5,000,000 shares

                   
 

     1,900,000 shares issued and  

                   
 

    outstanding

  1,900         1,900      
 

Paid in capital in excess of par value of stock

  720         715      
  Stockholder receivable  
0  
       
0  
     
 

Deficits accumulated during developmental stage13

  (133,960

)

      (133,240

)

   
                       

TOTAL STOCKHOLDERS' EQUITY 1

      $ 13,954       $ 13,954
         

     

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 1

      $ 13,954        $ 13,954
       

     

                         
        

See Accompanying Notes

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8


STATEMENT OF OPERATIONS

FOR PERIOD ENDING JUNE 30, 2015

          JUNE 30, 2015       JUNE 30, 2014  
         
     

 
                           

REVENUE

      $ 0         $ 0    
                           

EXPENSES

                       
  Administrative         720          715    
 

Marketing

                       
 

General

                0    
   

Colt (Buster Beau)

                       
    Initial Expenses   NA           NA          
   

Pasture, Board & Training

$ 0         $ 0          
   

Supplemental Feed

  0         0          
   

Veterinarian & Ferrier

  0             0          
     

       

         
        0         0          
                             
   

Colt (Titan Up)

                       
    Initial Expenses   NA           NA          
   

Pasture, Board & Training

$ 0         $ 0          
   

Supplemental Feed

  0         0          
   

Veterinarian & Ferrier

  0             0          
     

       

         
        0         0          
                             
 

SEC Accounting

        $ 0       $ 0    
             

       

   

TOTAL EXPENSES

        $ 720         715    
             

       

   

NET (LOSS)

        $ (720

)

    $ (715

)

 
             

       

   

NET (LOSS) PER COMMON SHARE

                   
 

Basic and diluted

      $ ( .00

)

    $ ( .00

)

 
           

       

 

WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING

                 
 

Basic and diluted

      1,900,000         1,900,000  
           

       

 
                                         

See Accompanying Notes

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9


STATEMENT OF STOCKHOLDERS' EQUITY

FOR THE PERIOD FROM INCEPTION (NOVEMBER 1, 2000) TO JUNE 30, 2015

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10


STATEMENT OF STOCKHOLDERS' EQUITY (Continued)

FOR THE PERIOD FROM INCEPTION (NOVEMBER 1, 2000) TO JUNE 30, 2005

UNAUDITED
JUNE 30, 2005

 
UNAUDITED
JUNE 30, 2004

 
UNAUDITED
JUNE 30, 2003

 
UNAUDITED
JUNE 30, 2002

 
AUDITED
JUNE 30, 2001

 
UNAUDITED
JUNE 30, 2000

Paid in Capital
in Excess of
Par Value
of Stock

Deficit
Accumulation
during the
Development
Stage

 
Paid in Capital
in Excess of
Par Value
of Stock

Deficit
Accumulation
during the
Development
Stage

 
Paid in Capital
in Excess of
Par Value
of Stock

Deficit
Accumulation
during the
Development
Stage

 
Paid in Capital
in Excess of
Par Value
of Stock

Deficit
Accumulation
during the
Development
Stage

 
Paid in Capital
in Excess of
Par Value
of Stock

Deficit
Accumulation
during the
Development
Stage

 
Paid in Capital
in Excess of
Par Value
of Stock

Deficit
Accumulation
during the
Development
Stage

AT DATE OF INCEPTION
     0       
NOVEMBER 1, 2000 - STOCK ISSUED TO FOUNDERS
     Preferred
(4,000)   (5)   (5)   (5)  0    (5)  
     Common
(1,900)   (1,900)   (93)   (91)   (89)  
FAIR MARKET VALUE OF SERVICES DONATED BY STOCKHOLDERS
10,936  (54,679)   10,936  (43,793)   10,936  (32,807)   10,936  (21,871)   10, 935   
INCREASE IN PAID IN CAPITAL FOR PAYMENT OF EXPENSES BY STOCKHOLDERS
1,760  (13,041)   1,760  (11,281)   1,760  (9,521)   3,797  (7,761)   3,964   
NET (LOSS) FOR EACH PERIOD SHOWN
(12,696)   (12,696)   (12,696)   (13,797)   (14,767)  
BALANCE FOR EACH PERIOD SHOWN
12,696  (67,720)   12,696  (53,956)   12,696  (41,260)   13,814  (28,564)   14,805  (14,767)  

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CONTINUED -- FOR THE PERIOD FROM JUNE 30, 2006 THROUGH JUNE 30, 2011


UNAUDITED
JUNE 30, 2011

 

UNAUDITED
JUNE 30, 2010

 

UNAUDITED
JUNE 30, 2009

 

UNAUDITED
JUNE 30, 2008

 
UNAUDITED
JUNE 30, 2007

 
UNAUDITED
JUNE 30, 2006

Paid in Capital
in Excess of
Par Value
of Stock

Deficit
Accumulation
during the
Development
Stage

 
Paid in Capital
in Excess of
Par Value
of Stock

Deficit
Accumulation
during the
Development
Stage

 
Paid in Capital
in Excess of
Par Value
of Stock

Deficit
Accumulation
during the
Development
Stage

 
Paid in Capital
in Excess of
Par Value
of Stock

Deficit
Accumulation
during the
Development
Stage

 
Paid in Capital
in Excess of
Par Value
of Stock

Deficit
Accumulation
during the
Development
Stage

 
Paid in Capital
in Excess of
Par Value
of Stock

Deficit
Accumulation
during the
Development
Stage

AT DATE OF INCEPTION
    0   0     0    
NOVEMBER 1, 2000 - STOCK ISSUED TO FOUNDERS
     Preferred
(4,000)   (4,000)   (4,000) 0   (4,000)   (4,000)   (4,000) 
     Common
(1,900)   (1,900) 0   (1,900) 0   (1,900) 0   (1,900)   (1,900) 
FAIR MARKET VALUE OF SERVICES DONATED BY STOCKHOLDERS
  0   0 0   (93,146)   7,291  (76,551)    10,936  (65,615) 
INCREASE IN PAID IN CAPITAL FOR PAYMENT OF EXPENSES BY STOCKHOLDERS
320  (64,165)   320  (63,845)   4,583 (63,525)   16,595  (58,942)   17,496  (42,347)    11,810  (24,851) 
NET (LOSS) FOR EACH PERIOD SHOWN
320  (131,885)   320  (131,565)   4,583 (4,583)   16,595  (34,091)   2,515  (17,496)    200  (22,746) 
BALANCE FOR EACH PERIOD SHOWN
320  (131,885)   320  (131,565)     (131,245)   16,595  (127,042)   20,011  (110,477)    22,746  (90,466) 

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CONTINUED -- FOR THE PERIOD FROM JUNE 30, 2012 THROUGH JUNE 30, 2015


UNAUDITED
JUNE 30, 2015

 
UNAUDITED
JUNE 30, 2014


 
UNAUDITED
JUNE 30, 2013


 
UNAUDITED
JUNE 30, 2012


 
 
Paid in Capital
in Excess of
Par Value
of Stock

Deficit
Accumulation
during the
Development
Stage

 
Paid in Capital
in Excess of
Par Value
of Stock

Deficit
Accumulation
during the
Development
Stage

 
Paid in Capital
in Excess of
Par Value
of Stock

Deficit
Accumulation
during the
Development
Stage

 
Paid in Capital
in Excess of
Par Value
of Stock

Deficit
Accumulation
during the
Development
Stage

 


 


AT DATE OF INCEPTION
0   0 0   0 0   0 0            
NOVEMBER 1, 2000 - STOCK ISSUED TO FOUNDERS
     Preferred
(4,000) 0   (4,000) 0   (4,000) 0   (4,000) 0            
     Common
(1,900) 0   (1,900) 0   (1,900) 0   (1,900) 0            
FAIR MARKET VALUE OF SERVICES DONATED BY STOCKHOLDERS
  0 0   0 0   0 0            
INCREASE IN PAID IN CAPITAL FOR PAYMENT OF EXPENSES BY STOCKHOLDERS
720  (66,240)   715  (65,520)   320 (64,805)   320 (64,485)            
NET (LOSS) FOR EACH PERIOD SHOWN
720  (133,960)   715  (133,240)   320 (132,525)   320 (132,205)            
BALANCE FOR EACH PERIOD SHOWN
720  (133,960)   715  (133,240)   320 (132,525)   320 (132,205)            

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11


STATEMENT OF CASH FLOWS

FOR THE PERIOD FROM JUNE 30, 2014 TO JUNE 30, 2015

  UNAUDITED
JUNE 30, 2015
  UNAUDITED
JUNE 30, 2014
 
 

CASH FLOWS FROM OPERATING ACTIVITIES:

             
   

Net (loss)

$
(720

)

  $ ( 715

)

   

Adjustments to reconcile net (loss) to net cash provided by operating activities:

             
     

Fair market value of services provided by stockholder

  0       0  
   

Increase in donated or gifted capital for payment of expenses by stockholders

  720       715  
   

Changes in operating assets and liabilities:

             
     

Accounts payable

  0       0  
       

   

 

NET CASH PROVIDED BY OPERATING ACTIVITIES

$ 0     $ 0  
                     

CASH FLOWS FROM INVESTING ACTIVITIES

  0       0  
                     

CASH FLOWS FROM FINANCING ACTIVITIES

  0       0  
       

   

 

NET INCREASE (DECREASE) IN CASH AND CASH BALANCE AT JUNE 30, 2015

$ 0     $ 0  
       

   

 

SUPPLEMENTAL DISCLOSURE OF CASH
FLOW INFORMATION

             
   

Cash paid for interest

$ 0     $ 0  
       


   


 
   

Cash paid for taxes

$ 0     $ 0  
     

   

 

SCHEDULE OF NON-CASH INVESTING
AND FINANCING ACTIVITIES

             
   

Fair market value of services provided by stockholder

$ 0     $ 0  
     

   

 
   

Increase in donated or gifted capital for
payment of expenses paid by stockholders

$ 720     $ 715  
     

   

 

See Accompanying Notes

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12


NOTES TO FINANCIAL STATEMENTS

JUNE 30, 2015

NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

The company uses SOP 85-3, breeding horses under development. The horse evaluation is adding in direct costs to the value of the horses under development. The value is the lower of cost or established market value, until breeding maturity, then the horses are depreciated through the life of the breeding career. Pursuant to discussions with staff of the Securities and Exchange Commission in January of 2006 and in keeping with SOP 85-3 regarding evaluations of breeding stock, the following accounting practices have been adopted and adjustments as of March 31, 2006.

Any financial statements prior to March 31, 2006 will be inaccurate, as they do not reflect SOP 85-3, breeding horses under development, and should not be relied upon for any meaningful representations of the company's financial position.

Accounting Estimates

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

Income Taxes

Provisions for income taxes are based on taxes payable or refundable for the current year and deferred taxes on temporary differences between the amount of taxable income and pretax financial income and between the basis of assets and liabilities and their reported amounts in the financial statements. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled as prescribed in FASB Statement No. 109, "Accounting for Income Taxes." As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes.

Net (Loss) Per Share

The Company adopted Statement of Financial Accounting Standards No. 144 that requires the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In accordance with FASB 128, any anti-dilutive effects on net loss per share are excluded.

Long-Lived Assets

Statement of Financial Accounting Standards No. 144, "Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of," requires that long-lived assets be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the asset in question may not be recoverable.

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13


NOTE 2: PREFERRED STOCK

No special rights or preferences have been assigned to the preferred stock.

NOTE 3: DEVELOPMENT STAGE OPERATIONS

As of June 30, 2015 the Company was in the development stages of operations. According to the Financial Accounting Standards Board of the Financial Accounting Foundation, a development stage Company is defined as a company that devotes most of its activities to establishing a new business activity. In addition, planned principle activities have not yet commenced.

The Company did not expense any development costs as per donation or gift from the shareholders for the period from June 30, 2014 to June 30, 2015.

NOTE 4: FINANCIAL STATEMENT OF AN INACTIVE REGISTRANT

Under Statute 210.3-11, the Company does not need to provide an audited or reviewed quarterly report.

Reg. Statutes 210.3-11

     (a) Gross Receipts from all sources for the fiscal year are not in excess of $100,000;

     (b) The registrant has not purchased or sold any of its own stock, granted options therefore, or levied assessments upon outstanding stock;

     (c) Expenditures for all purposes for the fiscal year are not in excess of $100,000;

     (d) No material change in the business has occurred during the fiscal year, including any bankruptcy, reorganization, readjustment or succession or any material acquisition or disposition of plants, mines, mining equipment, mine rights or leases; and

     (e) No exchange upon which the shares are listed, or governmental authority having jurisdiction, requires the furnishing to it or the publication of audited financial statements.

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14


NOTE 5: INCOME TAXES

Net (loss)

$ (133,960

)

The provisions for income taxes is estimated as follows:

     
 

Currently payable

$ 0  
 

Deferred

$ 0  

The net (loss) for financial statements differs from the federal income tax net loss. A reconciliation is as follows:

     
 

Financial statement net loss

$ 133,960  
 

Non-deductible services

  0  
   


 

Income tax net loss

  133,960  
   


Significant components of the Company's deferred tax asset are as follows:

     
 

Net operating loss carry forward

$ 133,960  
 

Less valuation allowance

  0  
   


 

Net deferred asset

$ 133,960  
   


NOTE 6: STOCK OPTION AGREEMENT

On November 1, 2000, the Company established a stock option agreement under which a total of 930,000 shares of common stock are reserved for the option.

The details of the option are as follows:

  Number
of Shares

  Exercise
Price

  Exercise
Date

  64,000        $ .50*     June 30, 2002
  866,000     

    1.25*     June 30, 2003
  930,000     

         

*Adjusted for 20:1 stock split.

The Company has elected to account for stock-based compensation under APB Opinion No. 25, under which no compensation expense has been recognized for stock options granted to employees at fair market value.

A summary of the option activity for the period from November 1, 2000 to June 30, 2015, pursuant to the terms of the plan is as follows:

    Shares
Under
Option
 
Weighted
Average
Exercise Price
  Options outstanding at November 1, 2000 0   $ 0
  Granted 930,000
    23.81
  Outstanding at June 30, 2015 930,000
    23.81

All shares are exercisable.

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Information regarding stock options outstanding as of June 30, 2015 is as follows, not including the 20:1 stock split:

  Price Range $  10.00  - $ 25.00
  Weighted average exercise and grant date prices $   23.81
  Outstanding at June 30, 2015
Exercisable

The weighted average fair market value of options granted in the period of November 1, 2000 to June 30, 2015 were estimated as of the date of grant using the Black-Scholes stock option pricing model, based on the following weighted average assumptions:

  Dividend yield
0
  Expected volatility
50%
  Risk fee interest rate
5.7%
  Expected life
Exercisable

For purposes of pro forma disclosure, the estimated fair market value of the options, if any, is amortized to expense over the options' vesting periods.

Under the Black-Scholes model, the options did not have any intrinsic value. Therefore, pro forma disclosure information has not been presented.

NOTE 7: SHARES OF STOCK ELIGIBLE FOR ISSUANCE

   
Common
 
Preferred
 
Total stock authorized
5,000,000  
 
5,000,000 
  Less stock issued
( 1,900,000) 
 
( 4,000,000)
  Less stock reserved for stock options
( 930,000) 
 

  Balance available for issuance
2,170,000 

 
1,000,000 

NOTE 8: NET OPERATING LOSS CARRYFORWARD

The corporation has the following net operating loss carry forward:

  Year

Amount

Expiration Date
  June 30, 2015
$133,960

June 30, 2021 

NOTE 9: FAIR MARKET VALUE OF SERVICES DONATED BY STOCKHOLDER

A stockholder, Brad Brimhall, CEO of the Company, provided services valued at $ 720 for July 1, 2014 through June 30, 2015. This estimate is $0.64 per hour for two hours per day, five days per week. The salary is determined yearly by the Board of Directors. Since the company is inactive and in a development stage, the current CEO, Brad Brimhall, oversees the operations and the company’s horse assets and the filing of the financial reports. He is currently the only qualified person the company has been able to find to fill these positions at the salary the company is willing to pay. When the company becomes active and a cash flow develops, these tasks will be broken out as the company is able to locate qualified persons to fulfill these jobs. Until such time, the fair market value is determined by what the company is willing to pay and what a qualified person is willing to accept.

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NOTE 10: LIMITED OPERATION COSTS

The shareholders have elected to pay a substantial portion of operation costs of the company up to June, 2016 as gifts or donations to the Company. The exact amount will be determined by the Board of Directors on an on-going basis.

NOTE 11: GOING CONCERN

The financial statements are presented on the basis that the Company is a going concern. Going concern contemplates the realization of assets and the satisfaction of liabilities in the normal course of business over a reasonable length of time. The Company is in the development stage of breeding and training horses.

NOTE 12: INSURANCE

The Company does not have any insurance coverage on its horses nor any liability or workers' compensation insurance. However, the company intends to purchase insurance on its horses before any of the company's horses are bred or raced.

NOTE 13: ACCUMULATED DEFICITS   [back]

The common stock for salary was donated back to the company for the purpose of acquiring market makers and their float requirements.

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ITEM 8: Changes In and Disagreements With Accountants on Accounting and Financial Disclosure

8a. Effectiveness of the Company's Controls and Procedures

The company maintains disclosures controls and procedures designed to ensure that information required to be disclosed in its reports filed under the Securities Exchange Act of 1934, as amended (the Exchange Act), is recorded, processed, summarized, and reported within the required time periods, and that such information is accumulated and communicated to management, including the company's Chief Executive Officer and Chief Financial Officer, or persons performing these duties, to allow for timely decisions regarding required disclosure.

The company's management, including the Chief Executive Officer and Chief Financial Officer, or persons performing these duties, has evaluated the effectiveness of the company's disclosure controls and procedures over financial reporting (as defined in Exchange Act Rules). At the present time, the company is an inactive filer, with minimal expense transactions each month and no earnings whatsoever. Because of this, the company's financial statements are unaudited. The company's management performs the function of audit committee, and has detected errors in its financial reports, which errors are not in any way related to earnings or expenditures, but merely to the manner in which cumulative balances have been reported. Such errors have been corrected in the company's June 2005 10KSB/A. The Public Company Accounting Oversight Board has defined a material weakness as a "significant deficiency or combination of significant deficiencies that results in more than a remote likelihood that a material misstatement of the annual or interim financial statements will not be prevented or detected." The aforementioned errors are considered to be minor, and thus not "material" weaknesses, significant deficiencies, or a combination of significant deficiencies.

Based upon the company's most recent evaluation, the company's management, including its Chief Executive Officer and Chief Financial Officer (or persons performing those duties), concluded the company's disclosure controls and procedures over financial reporting are adequate and effective as of June 30, 2015. The effectiveness of the company's controls and procedures are an on-going process of continual improvement. As such, when the company becomes active, with earnings to report and audited financial statements, the company's disclosure controls and procedures may require restructuring.

There has been no change in the company's internal control over financial reporting or any other factor that has materially affected, or is reasonably likely to materially affect, the company's internal control over financial reporting.

 

PART III:

ITEM 9: Directors, Executive Officers, Promoters and Control Persons; Compliance With Section 16(a) of the Exchange Act

In response to this item, the company hereby incorporates by reference the information previously filed in the 10SB12G, filed August 15, 2001. There has been no change in Directors, Executive Officers, Promoters and Control Persons as of June 30, 2015.

ITEM 10: Executive Compensation

In response to this item, the company hereby incorporates by reference the information previously filed in the 10SB12G, filed August 15, 2001. There has been no change in Executive Compensation as it relates to the dollar amount.

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ITEM 11: Security Ownership of Certain Beneficial Owners and Management

In response to this item, the company hereby incorporates by reference the information previously filed in the 10SB12G, filed August 15, 2001. There has been no change in Security Ownership of Certain Beneficial Owners and Management up to June 30, 2015.  The security ownership is as described elsewhere in this 10KSB Annual Report for the period ending June 30, 2015.

ITEM 12: Certain Relationships and Related Transactions

In response to this item, the company hereby incorporates by reference the information previously filed in the 10SB12G, filed August 15, 2001. There has been no change in Certain Relationships and Related Transactions.

ITEM 13: Exhibits and Reports on Form 8-K

Exhibit 31.1 - Certification of the Chief Executive Officer pursuant to Rule 13A-14 or 15D-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Exhibit 31.2 - Certification of the Acting Chief Financial Officer pursuant to Rule 13A-14 or 15D-14 of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

Exhibit 32.1 - Certification of the Chief Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

Exhibit 32.2 - Certification of the Acting Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

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SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, and the Financial Statements of an Inactive Registrant, Regulation Section 210-3-11, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Nevada Classic Thoroughbreds, Inc.

   

Dated: October 12, 2015

By: /s/ Brad Brimhall

 
 

Brad Brimhall

 

Chief Accounting Officer / Acting Chief Financial Officer

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Dated: October 12, 2015

By: /s/ Brad Brimhall

 
 

Brad Brimhall

 

President and Chief Executive Officer

 

Dated: October 12, 2015

By: /s/ Pamela J. Brimhall

 
 

Pamela J. Brimhall

 

Secretary/Treasurer

Supplemental information to be Furnished With Reports Filed Pursuant to Section 15(d) of the Exchange Act By Non-Reporting Issuers:

Not Applicable.

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