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EX-31 - EXHIBIT 31 - Band Rep Management, Inc.ex311.htm
EX-32 - EXHIBIT 32 - Band Rep Management, Inc.ex322.htm
EX-32 - EXHIBIT 32 - Band Rep Management, Inc.ex321.htm
EX-31 - EXHIBIT 31 - Band Rep Management, Inc.ex312.htm


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

 

 

 

 

                              FORM 10-Q

 

 

 

 

 

 

 

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

 

 

 

For the quarterly period ended:  

August 31, 2015

 

 

 

 

 

 

 

[   ] 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:

001 - 36123

 

 

 

 

 

 

 

 

 

Band Rep Management, Inc.

 

 

(Exact name of registrant as specified in its charter)

 

 

 

 

 

 

 

 

Nevada

 

 

45-5243254

 

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

 

 

 

 

 

 

 

8th Floor, Tower 5, China Hong Kong City,

33 Canton Road, Tsim Sha Tsui, Hong Kong

 

 

(Address of principal executive offices)   (Zip Code)

 

 

 

 

 

 

 

 

(775) 321-8207

 

 

(Registrant’s telephone number, including area code)

 

 

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.     

 

Yes |X| No |_|

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

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.

Large accelerated filer  [  ]

 Accelerated filer [   ]

Non-accelerated filer [   ]  (Do not check if a smaller reporting company)     

    Smaller reporting company [X]

Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange Act).

 

Yes |X| No |_|

The number of shares outstanding of the Registrant's Common Stock as October 14, 2015 was 110,022,572 shares of common stock, $0.001 par value, issued and outstanding.



1




BAND REP MANAGEMENT, INC.


QUARTERLY REPORT ON FORM 10-Q

INDEX


 

 

 

 

 

 

 

PART I

 

 

 

 

Item 1

Financial Statements

 

Item 2

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

 

Item 3

Quantitative and Qualitative Disclosures About Market Risk

 

Item 4

Controls and Procedures

 

 

 

 

 

 

 

 

PART II

 

 

 

 

Item 1

Legal Proceedings

 

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

 

Item 3

Defaults Upon Senior Securities

 

Item 4

Mine Safety Disclosures

 

Item 5

Other Information

 

Item 6

Exhibits

 

 

 

 




2




BAND REP MANAGEMENT, INC.

CONDENSED BALANCE SHEETS

AS OF AUGUST 31, 2015 AND MAY 31, 2015

(Currency expressed in United States Dollars (“US$”), except for number of shares)


 

 

August 31, 2015

 

May 31, 2015

 

 

(Unaudited)

 

(Uuaudited)

ASSETS

 

 


 

 


Current assets:

 

 


 

 


Cash and cash equivalents

 

$

-

 

$

-

 

 

 


 

 


TOTAL ASSETS

 

$

-

 

$

-

 

 

 


 

 


LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

 


 

 


Current liabilities:

 

 


 

 


Accounts payable and accrued liabilities

 

$

13,750

 

$

-

Amount due to a related party

 

 

32,467

 

 

32,467

 

 

 


 

 


Total current liabilities

 

 

46,217

 

 

32,467

 

 

 


 

 


Total liabilities

 

 

46,217

 

 

32,467

 

 

 


 

 


Stockholders’ deficit:

 



 

 


Common stock, $0.001 par value; 200,000,000 shares authorized; 110,022,572 and 110,022,572 shares issued and outstanding, respectively

 


11,350

 

 

11,350

Additional paid-in capital

 


25,830

 

 

25,830

Accumulated deficit

 


(83,397)

 

 

(69,647)

 

 



 

 


Total stockholders’ deficit

 


(46,217)

 

 

(32,467)


TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT

 

$

-

 

$

-

















See accompanying notes to condensed financial statements.









3

 


BAND REP MANAGEMENT, INC.

CONDENSED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

FOR THE THREE MONTHS ENDED AUGUST 31, 2015 AND 2014

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)


 

 

Three Months ended August 31,

 

 

2015

 

2014

 

 

 


 

 


Revenues, net

 

$

-

 

$

-

 

 

 


 

 


Operating expenses:

 

 


 

 


General and administrative expenses

 

 

(750)

 

 

(1,430)

Consulting and professional fee

 

 

(13,000)

 

 

(7,000)


Total operating expenses

 

 

(13,750)

 

 

(8,430)

 

 

 


 

 


LOSS BEFORE INCOME TAXES

 

 

(13,750)

 

 

(8,430)


 

 


 

 


Income tax expense

 

 

-

 

 

-

 

 

 


 

 


NET LOSS

 

$

(13,750)

 

$

(8,430)

 

 

 


 

 


Net loss per share – Basic and diluted

 

$

(0.00)

 

$

(0.00)

 

 

 


 

 


Weighted average common shares outstanding – Basic and diluted

 


110,022,572

 


110,022,572



























See accompanying notes to condensed financial statements.




4



 



BAND REP MANAGEMENT, INC.

CONDENSED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED AUGUST 31, 2015 AND 2014

(Currency expressed in United States Dollars (“US$”))

(Unaudited)

 

Three Months ended August 31,

 

2015

 

2014

 

 


 

 


Cash flow from operating activities:

 


 

 


Net loss

$

(13,750)

 

$

(8,430)

Changes in operating assets and liabilities:

 


 

 


Accounts payable and accrued liabilities

 

13,750

 

 

8,430


Net cash used in operating activities

 

-

 

 

-

 

 


 

 


Net change in cash and cash equivalents

 

-

 

 

-

 

 


 

 


Cash and cash equivalents, Beginning of Period

 

-

 

 

515

 

 


 

 


Cash and cash equivalents, End of Period

$

-

 

$

515

 

 


 

 


SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION

 

 


Cash paid for income taxes

$

-

 

$

-

Cash paid for interest

$

-

 

$

-

 

 


 

 





























See accompanying notes to condensed financial statements.



5




BAND REP MANAGEMENT, INC.

CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ DEFICIT

FOR THE THREE MONTHS ENDED AUGUST 31, 2015

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)


 


Common stock

 

Additional paid-in capital

 

Accumulated deficit

 

Total stockholders’ deficit

No. of shares

 

Amount

 

 

 


 

 


 

 

 

 

 


 

 


Balance as of June 1, 2015 (unaudited)

110,022,572

 

$

11,350

 

$

25,830

 

$

(69,647)

 

$

(32,467)

 


 

 


 

 

 

 

 


 

 


Net loss for the period

-

 

 

-

 

 

-

 

 

(13,750)

 

 

(13,750)

 

 

 

 


 

 

-

 

 


 

 


Balance as of August 31, 2015

110,022,572

 

$

11,350

 

$

25,830

 

$

(83,397)

 

$

(46,217)



































See accompanying notes to condensed financial statements.







6



 



BAND REP MANAGEMENT, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED AUGUST 31, 2015

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)



NOTE1

BASIS OF PRESENTATION


The accompanying unaudited condensed financial statements have been prepared by management in accordance with both accounting principles generally accepted in the United States (GAAP), and the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Certain information and note disclosures normally included in the financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations, although the Company believes that the disclosures made are adequate to make the information not misleading.


In the opinion of management, the balance sheet as of May 31, 2015 which has been derived from unaudited financial statements and these unaudited condensed financial statements reflect all normal and recurring adjustments considered necessary to state fairly the results for the periods presented. The results for the period ended August 31, 2015 are not necessarily indicative of the results to be expected for the entire fiscal year ending May 31, 2016 or for any future period.



NOTE2

ORGANIZATION AND BUSINESS BACKGROUND


Band Rep Management Inc. (BNRM or the Company) was incorporated in the State of Nevada as a for-profit Company on May 4, 2012 and established a fiscal year end of May 31. The Company intends to find and manage new music talents and bands for a 25% take of the earnings.  The Company is currently in the initial start-up stage and all activities of the Company to date relate to its organization, initial funding and share issuances. The Company has not yet commenced or generated any significant operations.  



NOTE3

GOING CONCERN UNCERTAINTIES


These condensed financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future.


For the three months ended August 31, 2015, the Company has incurred a net loss of $13,750 with an accumulated deficit of $83,397 as of that date. The continuation of the Company is dependent upon the continuing financial support of its shareholders. Management believes this funding will continue, and is also actively seeking new investors. Management believes the existing stockholders will provide the additional cash to meet the Company’s obligations as they become due. However, there is no assurance that the Company will be successful in securing sufficient funds to sustain the operations.


These and other factors raise substantial doubt about the Company’s ability to continue as a going concern. These condensed financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classification of liabilities that may result in the Company not being able to continue as a going concern.





7




BAND REP MANAGEMENT, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED AUGUST 31, 2015

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)



NOTE4

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


l

Basis of presentation


These accompanying condensed financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (US GAAP).


l

Use of estimates and assumptions


In preparing these financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheet and revenues and expenses during the periods reported. Actual results August differ from these estimates.


l

Shell company

 

The Company has not operated or commenced any significant business with no nominal assets. It is currently considered as a shell company.


l

Cash and cash equivalents


Cash and cash equivalents are carried at cost and represent cash on hand, demand deposits placed with banks or other financial institutions and all highly liquid investments with an original maturity of three months or less as of the purchase date of such investments.


l

Income taxes

 

The Company adopted the provisions of paragraph 740-10-25-13 of the FASB Accounting Standards Codification. Paragraph 740-10-25-13.addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under paragraph 740-10-25-13, the Company August recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Paragraph 740-10-25-13 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of paragraph 740-10-25-13.

 

The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary.

 

Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In management’s opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves August be necessary.

 

l

Uncertain tax positions



8




BAND REP MANAGEMENT, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED AUGUST 31, 2015

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)



 

The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the provisions of Section 740-10-25 for the three months ended August, 31 2015 and 2014.


l

Net loss per share


The Company calculates net loss per share in accordance with ASC Topic 260, “Earnings per Share.” Basic loss per share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period. Diluted loss per share is computed similar to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common stock equivalents had been issued and if the additional common shares were dilutive.

 

There were no potentially outstanding dilutive shares for the three months ended August 31, 2015 and 2014.


l

Related parties

 

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.

 

Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 825–10–15, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and Income-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company August deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.

 

The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d) amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

 

l

Commitments and contingencies

 

The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions August exist as of the date the financial statements are issued, which August result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims



9




BAND REP MANAGEMENT, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED AUGUST 31, 2015

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)



that August result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.

 

If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.

 

Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Company’s financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows.


l

Fair value of financial instruments


The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification (“Paragraph 820-10-35-37”) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting Standards Codification are described below:

 

Level 1

 

Quoted market prices available in active markets for identical assets or liabilities as of the reporting date.

 

 

 

Level 2

 

Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date.

 

 

 

Level 3

 

Pricing inputs that are generally observable inputs and not corroborated by market data.

 

Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable.

 

The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.

 

The carrying amounts of the Company’s financial assets and liabilities, such as other payable and accrued liabilities, approximate their fair values because of the short maturity of these instruments.


l

Recent accounting pronouncements




10




BAND REP MANAGEMENT, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED AUGUST 31, 2015

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)



The Company has reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements August be expected to cause a material impact on its financial condition or the results of its operations.


4.

AMOUNT DUE TO A RELATED PARTY


As of August 31, 2015, the balance represented temporary advances made by a director, Xiaoying Lei to the Company for its working capital purposes, which were unsecured, interest free and with no fixed terms of repayment.



5.

STOCKHOLDERS’ DEFICIT


The Company is authorized to issue an aggregate of 200,000,000 common shares with a par value of $0.001 per share.  No preferred shares have been authorized or issued.


As of August 31, 2015, the Company had a total of 110,022,572 shares of its common stock issued and outstanding.

 


6.

INCOME TAXES


The Company is incorporated in the State of Nevada and is subject to United States of America tax law.


As of August 31, 2015, the Company incurred $82,882 of cumulative net operating losses which can be carried forward to offset future taxable income. The net operating loss carryforwards begin to expire between 2032 and 2034, if unutilized. The Company has provided for a full valuation allowance against the deferred tax assets of $29,008 on the expected future tax benefits from the net operating loss carryforwards as the management believes it is more likely than not that these assets will not be realized in the future.


The following table sets forth the significant components of the aggregate deferred tax assets of the Company as of August 31, 2015 and May 31, 2015:


 

 

August 31, 2015

 

May 31, 2015

 

 

(Unaudited)

 

(Unaudited)

Deferred tax assets:

 

 


 

 


Net operating loss carryforwards

 

$

29,008

 

$

24,196

Less: valuation allowance

 

 

(29,008)

 

 

(24,196)


Deferred tax assets

 

$

-

 

$

-


Management believes that it is more likely than not that the deferred tax assets will not be fully realizable in the future. Accordingly, the Company provided for a full valuation allowance against its deferred tax assets as of August 31, 2015. In 2015, the valuation allowance increased by $4,812, primarily relating to net operating loss carryforwards from the local tax regime.


The Company is delinquent in filing its United States corporation income tax returns for the periods from inception to 2014. The Company does not expect any tax to be due upon filing of these delinquent returns.



7.

RELATED PARTY TRANSACTIONS



11




BAND REP MANAGEMENT, INC.

NOTES TO CONDENSED FINANCIAL STATEMENTS

FOR THE THREE MONTHS ENDED AUGUST 31, 2015

(Currency expressed in United States Dollars (“US$”), except for number of shares)

(Unaudited)




For the three months ended August 31, 2015, the Company utilized office space occupied by a director and stockholder at no charge. Such costs are immaterial to the financial statements and accordingly are not reflected herein.  


8.

SUBSEQUENT EVENTS


The Company evaluated subsequent events through the date the financial statements were issued and filed with this Form 10-Q. There were no subsequent events that required recognition or disclosure.







12






ITEM 2: MANAGEMENT`S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS


This section of this report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance.  Forward looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions or words which, by their nature, refer to future events.  You should not place undue certainty on these forward-looking statements, which apply only as of the date of this report.  These forward looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.


Overview


Band Rep Management, Inc. (BRM, we, the Company) was incorporated in the State of Nevada as a for-profit Company on May 4, 2012 and established a fiscal year end of May 31.


The Company intends to find and manage new music talents and bands.


Results of Operations


As of August 31, 2015, we have generated no revenues from our business operations. We will need additional cash and if we are unable to raise it, we will either suspend marketing operations until we do raise the cash necessary to continue our business plan, or we cease operations entirely.


If we are unable to complete any phase of our business plan or marketing efforts because we don’t have enough money, we will cease our development and/or marketing activities until we raise money.


As of November 14, 2014, the Company received advances from Sergio Galli, the former Director, of $25,830, to pay for general operating expenses. The amount due to Sergio Galli was unsecured and non-interest bearing with no set terms of repayment. On November 14 2014, Sergio Galli forgave all the outstanding  amounts due to him.


On November 14, 2014, Xiaoying Lei, the new director paid $3,491 transfer agent fees of the Company and such payment was classified as due to related parties. The amount due to Xiaoying Lei is unsecured and non-interest bearing with no set terms of payment.


On December 17, 2014, Xiaoying Lei paid the $17,171 of accrued liabilities of the Company and the $17,171 payment made by Xiaoying Lei became due to related party.


Our current cash holdings will not satisfy our liquidity requirements and we will require additional financing to pursue our planned business activities.


Management believes that if subsequent private placements are successful, we will generate sales revenue within the following twelve months thereof. However, additional equity financing may not be available to us on acceptable terms or at all, and thus we could fail to satisfy our future cash requirements.


In order to have a successful Business, BRM needs to implement its initial plan of operations as described below. We plan to have all the business structure ready before searching for the talents so we can start developing their careers and generating revenue. The actions described below are intended to take place in the order presented herein and only after successfully accomplishing the prior step.


Step 1 – Research and interviews with attorneys: Our president will search for legal advice for the preparation of an initial services contract. It will be important to find a competent and reliable attorney and negotiate the best possible fee. Because we will possibly need legal advice in various moments (between us and our possible clients, record labels, music studios, etc.), a good relationship with a good attorney will be essential. The time frame estimated to accomplish these tasks will be 2 months and cost an estimated $12,000.


-

Step 2 – Research and Initial contact with music studios and labels: Our president will, after completing the first step described above, research and negotiate deals with music studios and labels. The objective is to form long



13






lasting relationships with agents and promoters. The time frame estimated to accomplish these tasks will be 4 months and cost an estimated $10,000.


-

Step 3 – Website development: We plan to have our website fully developed only when we have successfully completed the steps described above. The Company’s president will oversee all the development of the website and will hire the necessary third party web developer, if necessary. The new artists would be able to upload their files for future BRM analysis and approval. At that point, we believe that we’ll be prepared to manage our business. The time frame estimated to accomplish these tasks will be 3 months and cost an estimated $5,000.


-

Step 4 – Marketing Campaign: Our goal is to create public awareness of our business. We intend to advertise on internet social media channel’s, such as Facebook and place advertisements in specialized magazines and websites. The time frame estimated to accomplish these tasks will be 3 months and cost an estimated $12,000.


In summary, we anticipate that we will be fully operational 12 months after we have raised enough funds to implement our Plan of Operations. We believe that we will begin to generate revenue after we are able to successfully develop the steps described above. If we cannot generate sufficient revenues to continue operations, we will suspend or cease operations. We believe we will be able to successfully implement our plan of operations if we raise at least 25% of the securities offered for sale by the Company.


We do not currently have any employees and management does not plan to hire employees at this time. We do not expect the purchase or sale of any significant equipment and  have no current material commitments.


Limited Operating History; Need for Additional Capital


There is no historical financial information about us upon which to base an evaluation of our performance. We are a development stage corporation and have not generated any revenues from operations. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources.




14






Capital Resources


If BRM is unsuccessful in raising the additional proceeds through a private placement offering it will then have to seek additional funds through debt financing, which would be very difficult for a new development stage company to secure. Therefore, the company is highly dependent upon the success of the anticipated private placement offering described herein and failure thereof would result in BRM having to seek capital from other resources such as debt financing, which may not even be available to the company. However, if such financing were available, because BRM is a development stage company with no operations to date, it would likely have to pay additional costs associated with high risk loans and be subject to an above market interest rate. At such time these funds are required, management would evaluate the terms of such debt financing and determine whether the business could sustain operations and growth and manage the debt load. If BRM cannot raise additional proceeds via a private placement of its common stock or secure debt financing it would be required to cease business operations. As a result, investors in BRM common stock would lose all of their investment.


Off Balance Sheet Arrangement


The company is dependent upon the sale of its common shares to obtain the funding necessary to carry out its business plan.  Our President, Xiaoying Lei, has undertaken to provide the Company with operating capital to sustain its business over the next twelve month period, as the expenses are incurred, in the form of a non-secured loan. However, there is no contract in place or written agreement securing these agreements.  Investors should be aware that Xiaoying Lei’s expression is neither a contract nor agreement between him and the company.


Other than the above described situation the Company does not have any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on the Company's financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.


ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK


Not required.


ITEM 4: CONTROLS AND PROCEDURES


Evaluation of Disclosure Controls and Procedures


Based upon an evaluation of the effectiveness of disclosure controls and procedures, our principal executive and financial officer  has concluded that as of the end of the period covered by this Quarterly Report on Form 10-Q our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Exchange Act) were not effective.  For the three-month period ended August 31, 2015 there were no changes in the internal control over this financial report. It remains the same as reported in our Annual Report on Form 10-K for the year ended May 31, 2014. The Company’s principal executive and financial officer has determined that there are material weaknesses in our disclosure controls and procedures.


The material weaknesses in our disclosure control procedures are as follows:


1.           Lack of formal policies and procedures necessary to adequately review significant accounting transactions. The Company utilizes a third party independent contractor for the



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preparation of its financial statements. Although the financial statements and footnotes are reviewed by our management, we do not have a formal policy to review significant accounting transactions and the accounting treatment of such transactions. The third party independent contractor is not involved in the day to day operations of the Company and may not be provided information from management on a timely basis to allow for adequate reporting/consideration of certain transactions.


2.            Audit Committee and Financial Expert. The Company does not have a formal audit committee with a financial expert, and thus the Company lacks the board oversight role within the financial reporting process.


We intend to initiate measures to remediate the identified material weaknesses including, but not necessarily limited to, the following:


 

 

 

 

 Establishing a formal review process of significant accounting transactions that includes participation of the Chief Executive Officer, the Chief Financial Officer and the Company’s corporate legal counsel.


 

 

 

 

 Form an Audit Committee that will establish policies and procedures that will provide the Board of Directors a formal review process that will among other things, assure that management controls and procedures are in place and being maintained consistently.


Changes in Internal Controls over Financial Reporting


For the three-month period ended August 31, 2015 there were no changes in the internal control over financial reporting as reported in our Annual Report on Form 10-K for the year ended May 31, 2014. Management is aware that there is a significant deficiency and a material weakness in our internal control over financial reporting and therefore has concluded that the Company’s internal controls over financial reporting were not effective as of August 31, 2015. The significant deficiency relates to a lack of segregation of duties due to the small number of employees involvement with general administrative and financial matters.  The material weakness relates to a lack of formal policies and procedures necessary to adequately review significant accounting transactions. 


There have not been any changes in the Company's internal control over financial reporting during the quarter ended August 31, 2015 that have materially affected, or are reasonably likely to materially affect the Company's internal control over financial reporting.


 

 










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PART II


ITEM 1: LEGAL PROCEEDINGS


The Company is not a party to any pending legal proceedings, and no such proceedings are known to be contemplated.


No director, officer, or affiliate of the issuer and no owner of record or beneficiary of more than 5% of the securities of the issuer, or any security holder is a party adverse to the small business issuer or has a material interest adverse to the small business issuer.


ITEM 2: UNREGISTERED SALES OF EQUITY SECURITIES AND  USE OF PROCEEDS


        None.


ITEM 3: DEFAULTS UPON SENIOR SECURITIES


        None


ITEM 4. MINE SAFETY DISCLOSURES


        Not Applicable


ITEM 5. OTHER INFORMATION


None


ITEM 6. EXHIBITS


 

 

3.1

Articles of Incorporation of Band Rep Management, Inc. (incorporated by reference from our Registration Statement on Form S-1 filed on August 17, 2012)

 

 

3.2

Bylaws of Band Rep Management, Inc. (incorporated by reference from our Registration Statement on Form S-1 filed on August 17, 2012)

 

 

31.1

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

 

 

31.2

Rule 13(a)-14(a)/15(d)-14(a) Certification of Chief Financial Officer *

 

 

32.1

Section 1350 Certification of Chief Executive Officer

 

 

32.2

Section 1350 Certification of Chief Financial Officer **

 

 

101.INS

XBRL Instance Document

 

 

101.SCH

XBRL Taxonomy Extension Schema Document

 

 

101.CAL

XBRL Taxonomy Extension Calculation Linkbase Document

 

 

101.DEF

XBRL Taxonomy Extension Definition Linkbase Document

 

 

101.LAB

XBRL Taxonomy Extension Label Linkbase Document

 

 

101.PRE

XBRL Taxonomy Extension Presentation Linkbase Document

*     Included in Exhibit 31.1

**    Included in Exhibit 32.1

                                   

Signatures




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


                        Band Rep Management, Inc.


BY:      Xiaoying Lei

 ----------------------

Xiaoying Lei

President, Secretary Treasurer, Principal Executive Officer,

Principal Financial Officer and Director




Dated:  October 20, 2015





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