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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 March 31, 2016


[   ] 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 333-204857



Makkanotti Group Corp.  

(Exact name of small business issuer as specified in its charter)



Nevada

3990

37-1765151

(State or other jurisdiction of incorporation or organization)

(Primary Standard Industrial

Classification Number)

(IRS Employer

Identification Number)



Larnakos Avenue, 73, ap. 402,

Nicosia, Cyprus 1046

 (Address of principal executive offices)


+1 (407) 720-5503

(Issuer's telephone number)


Email: makkanottigroupcorp@gmail.com


None

Securities registered under Section 12(b) of the Exchange Act

 

None

Securities registered under Section 12(g) of the Exchange Act




1






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 Exchange Act.  Yes ¨       No x


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x       No ¨


Indicate by check mark 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 x


Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrants 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. ¨  No x


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

 

 

 

 

 

 

 

Large accelerated filer ¨

 

Accelerated filer ¨

 

Non-accelerated filer ¨

 

Smaller reporting company x


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

 

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 prices of such common equity as of the last business day of the registrant’s most recently completed second fiscal quarter: Not applicable due to the Company was not trading as of that date.

 

State the number of shares outstanding of each of the issuer's classes of common equity, as of the latest practicable date:   6,940,000 common shares issued and outstanding as of June 24, 2016.


 


2








TABLE OF CONTENTS


 

 

 

  

  

Page

 

 

 

PART I

  

 

 

 

 

Item 1.

Description of Business.

4

Item 1A.

Risk Factors.

5

Item 1B.

Unresolved Staff Comments.

5

Item 2

Properties.

5

Item 3.

Legal proceedings.

5

Item 4.

Mine Safety Disclosures.

5

 

 

 

PART II

  

 

 

 

 

Item 5.

Market for Common Equity and Related Stockholder Matters.

5

Item 6.

Selected Financial Data.

6

Item 7.

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

6

Item 7A.

Quantitative and Qualitative Disclosures About Market Risk.

10

Item 8.

Financial Statements and Supplementary Data.

10

Item 9.

Changes In and Disagreements With Accountants on Accounting and Financial Disclosure.

19

Item 9A (T).

Controls and Procedures

19

Item 9B.

Other Information.

20

 

 

 

PART III

  

 

 

 

 

Item 10

Directors, Executive Officers, Promoters and Control Persons of the Company.

20

Item 11.

Executive Compensation.

21

Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.

22

Item 13.

Certain Relationships and Related Transactions, and Director Independence.

22

Item 14.

Principal Accounting Fees and Services.

23

 

 

 

PART IV

 

 

 

 

 

Item 15.

Exhibits

23

 

 

23

Signatures

 




3







PART I

Item 1. Description of Business


FORWARD-LOOKING STATEMENTS


Statements made in this Form 10-K that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may", "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.


Financial information contained in this report and in our financial statements is stated in United States dollars and are prepared in accordance with United States generally accepted accounting principles.


GENERAL


Makkanotti Group Corp. (the “Company”) was incorporated in the State of Nevada on May 15, 2014. The Company was formed to engage in the business of manufacturing food paper bags in Nicosia, Cyprus.


Our product

The main product of the Company’s manufacturing process is a paper bag. Paper bags are generally used in all supermarkets, fruit kiosks, bakeries and cafe and other places and in everyday life. Grocery bags are ideal for carrying food products and are an environmentally friendly choice as they are made from recyclable materials. The Company on a development stage of business is planning to manufacture two types of paper bags, such as flat bottom paper bags and strung in the corner paper bags. Paper bags are used widely by children as tuck-shop bags or lunch bags, also in supermarkets for storing different kind of fruits and vegetables, in bakeries, café, and restaurants for packing food.


Equipment

We have purchased one paper food bag-forming machine RUITAI KTPM-A for $6,000 from Chinese company “Chinese Investment Services Company Limited”. This model is user-friendly and simple in operating. The regular preventive maintenance of the machine will be fulfilling by specialist, who we are planning to hire in the future. Also in December 2015 we have purchased one printing machine for $2,278 from the same company “Chinese Investment Services Company Limited”. It let us to make exclusive paper bags with different images on them.


Marketing of paper bags

Our sole officer and director will be responsible for marketing of our products. The Company is planning to contact marketing specialist for promotion. Currently we do not have any agreements with any marketing specialists. We intend to use marketing tools, such as web and newspaper advertisements, direct mailing, and phone calls to acquire potential customers. We believe that one of the most powerful aspects of online marketing is the ability to target our chosen group with a high degree of accuracy and cost effective way.


Industry analysis

Makkanotti Group Corp. is planning to expand its business in the nearest municipalities, such as Lakatamia and Strovolos in Cyprus. In any city we plan to expand our operations to there are many different supermarkets, fruit kiosks, sweets kiosks and bakeries that may be interested in cooperation with the Company. We offer high-quality and inexpensive product, which can satisfy any client requirements. Besides such kind of distribution network we plan to sign agreements with distributors of similar products. We are planning to offer a commission from sales to our potential partners. We also plan to have a special section on our website for potential partners with examples of our products and offers for wholesale clients and partners.

4







Storage and delivery of paper bags

The product produced by Makkanotti Group Corp. does not require any storage facilities as it will be manufactured directly for each order. The number of demonstration samples will be kept is insignificant and does not require any special premises for storage. Our machines will be located at our leased premise in Nicosia, Cyprus. Term of manufacturing will depend on customer’s order.


Contracts and negotiation with customers

To the date the Company has entered into Agreement for Sale of Goods with “Epidorpio Confectionery” Bakery, who has agreed to buy our paper bags for packing its flour products and Agreement for Sale of Goods with “A&G KOKKINOU LTD.”. The Company is also planning to contact G.I. MONADIKON LTD www.monadikon.com, Qboo Bakehouse and The Xechoron Trading Company LTD in regard of future cooperation.


Insurance

We do not maintain any insurance and do not intend to maintain insurance in the future. Because we do not have any insurance, if we are made a party to a products liability action, we may not have sufficient funds to defend the litigation. If that occurs a judgment could be rendered against us that could cause us to cease operations.


Employees

We are in a development stage and currently have no employees, other than our sole officer and director.


Office

Our office located at Larnakos Avenue, 73, ap. 402, Nicosia, Cyprus 1046. Our phone number is +1 (407) 720-5503.


Government Regulation

We will be required to comply with all regulations, rules and directives of governmental authorities and agencies applicable to our business in any jurisdiction which we would conduct activities. We do not believe that regulation will have a material impact on the way we conduct our business.


Item 1A.  Risk Factors

 

Not applicable to smaller reporting companies.

 

Item 1B. Unresolved Staff Comments


Not applicable to smaller reporting companies.


Item 2.  Description of Property


We do not own any real estate or other properties.  

Item 3.  Legal Proceedings

We know of no legal proceedings to which we are a party or to which any of our property is the subject which are pending, threatened or contemplated or any unsatisfied judgments against us.

Item 4.  Mine Safety Disclosures


Not applicable.

PART II


Item 5. Market for Common Equity and Related Stockholder Matters      

Market Information


There is a limited public market for our common shares.  Our common shares are not quoted on the OTC Bulletin Board at this time.  Trading in stocks quoted on the OTC Bulletin Board is often thin and is characterized by wide fluctuations in trading prices due to many factors that may be unrelated to a company’s operations or business prospects.  We cannot assure you that there will be a market in the future for our common stock.



 

5







OTC Bulletin Board securities are not listed or traded on the floor of an organized national or regional stock exchange.  Instead, OTC Bulletin Board securities transactions are conducted through a telephone and computer network connecting dealers in stocks.  OTC Bulletin Board issuers are traditionally smaller companies that do not meet the financial and other listing requirements of a regional or national stock exchange.


As of March 31, 2016, no shares of our common stock have traded.



Number of Holders


As of March 31, 2016, the 6,940,000 issued and outstanding shares of common stock were held by a total of 29 shareholder of record.


Dividends

 

No cash dividends were paid on our shares of common stock during the fiscal year ended March 31, 2016 and for the period from May 15, 2014 (inception) to March 31, 2015.  We do not foresee declaring any cash dividends on our common stock in the foreseeable future. 


Recent Sales of Unregistered Securities


The Company has 75,000,000, $0.001 par value shares of common stock authorized.


On March 16, 2015, the company issued a total of 5,000,000 common shares to its founder for a cash contribution of $4,982 in connection with a subscription agreement in the amount of $5,000. The difference between the subscription amount and the amount contributed has been recorded as a stock subscription receivable in the amount of $18. The subscription was received on April 30, 2015.


During September 2015, the company issued a total of 1,940,000 common shares for cash contribution of $19,400 at $0.01 per share.


There were 6,940,000 shares of common stock issued and outstanding as of March 31, 2016.


Purchase of our Equity Securities by Officers and Directors


On March 16, 2015, the Company offered and sold 5,000,000 restricted shares of common stock to our president and director, Anna Ioannou, for a purchase price of $0.001 per share, for aggregate offering proceeds of $5,000, pursuant to Section 4(2) of the Securities Act of 1933 as he is a sophisticated investor and is in possession of all material information relating to us. Further, no commissions were paid to anyone in connection with the sale of these shares and general solicitation was not made to anyone.


Other Stockholder Matters


None.


Item 6. Selected Financial Data                                       


Not applicable to smaller reporting companies.


Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations


The following discussion should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this annual report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs.  Our actual results could differ materially from those discussed in the forward-looking statements.   Our audited financial statements are stated in United States Dollars and are prepared in accordance with United States Generally Accepted Accounting Principles.



 

6







RESULTS OF OPERATIONS


During the period we incorporated the Company, prepared a business plan, generated limited revenues from selling paper bags to our first customer and entered into Lease Agreement with Takabaena Yulia and signed Sale Agreement with “Epidorpio Confectionery” Bakery and A&G KOKKINOU LTD. Our loss since inception is $14,448. We have commenced our proposed business operations to date and generated limited revenues of $11,395 from selling our paper bags.

We have incurred recurring losses to date. Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.


We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.


FISCAL YEAR ENDED MARCH 31, 2016 COMPARED TO MARCH 31, 2015


Revenue


We recognized revenue of $11,395 for the year ended March 31, 2016, compare to $0 the period from May 15, 2014 (Inception) to March 31, 2015. We had not commenced operations during the period from May 15, 2014 (Inception) to March 31, 2015. Our Cost of Goods Sold was $1,288 for the year ended March 31, 2016 compare to $0 the period from May 15, 2014 (Inception) to March 31, 2015. Our Gross profit was $10,107 for the year ended March 31, 2016 compare to $0 the period from May 15, 2014 (Inception) to March 31, 2015. These revenues related to the sales to our customers Epidorpio Confectionery and A&G KOKKINOU LTD. We expect to generate further, increased revenue as we expand our business operations.


Operating expenses


Total operating expenses for the the year ended March 31, 2016 were $20,564 compared to $3,991 for the period from May 15, 2014 (Inception) to March 31, 2015. Our operating expenses consisted of bank service charges $1,206, accounting fees $4,750, legal fees $2,700, rent $2,640, amortization $1,007 and regulatory filings $8,261. Expenses incurred during the fiscal year ended March 31, 2016 as compared to period ended March 31, 2015 increased primarily due to the increased scale and scope of business operations.  


Net Loss


The net loss for the fiscal year ended March 31, 2016 was $10,457, compare to $3,991 for the period May 15, 2014 (Inception) to March 31, 2015, due to the factors discussed above.


Liquidity and Capital Resources


As of March 31, 2016, our total assets were $13,984 comprised of cash $4,711, inventory $678, prepaid expenses $1,760 and net equipment $6,835. Our total liabilities were $4,032 comprised of a loan from director. As of March 31, 2015, our total assets were $4,491 comprising of cash $111 and prepaid expenses $4,380. Our total liabilities were $3,500 comprised of accrued expenses.


Shareholders’ equity has increased from $991 as of March 31, 2015 to $9,952 as of March 31, 2016.


As of March 31, 2016, the Company has $4,711 cash. Ms. Ioannou has verbally agreed to loan funds to the Company. As of March 31, 2016 our sole officer and director has loaned to Makkanotti Group Corp. $4,032, which is not a part of Loan Agreement.

Since inception, we have sold 5,000,000 shares of common stocks to our sole officer and director, at a price of $0.001 per share, for aggregate proceeds of $5,000 and 1,940,000 common shares for cash contribution of $19,400 at $0.01 per share.  There were 6,940,000 shares of common stock issued and outstanding as of March 31, 2016.

We are attempting to raise funds to proceed with our plan of operation. We will have to utilize funds from Anna Ioannou, our sole officer and director, who has agreed to loan the company funds to complete the registration process. Ms. Ioannou has a formal commitment, arrangement and legal obligation to advance or loan funds to the company, and she has signed Loan Agreement. To proceed with our operations within 12 months, we need a minimum of $25,000. We cannot guarantee that we will be able to sell all the shares required to satisfy our twelve months financial requirement. If we are successful, any money raised will be applied to the



7







items set forth in the Use of Proceeds section of this prospectus. We will attempt to raise at least the minimum funds necessary to proceed with our plan of operation. In a long term we may need additional financing.

Our auditors have issued a “going concern” opinion, meaning that there is a doubt if we can continue as an on-going business for the next twelve months unless we obtain additional capital. Our only convenient sources of cash at this time are investments by others in this offering, loan from our sole officer and director Ms. Ioannou and revenues from selling our paper bags. We must raise cash to stay in business. The amount of the offering will likely allow us to operate for at least one year and have the capital resources required to cover the material costs with becoming a publicly reporting. The company anticipates over the next twelve months the cost of being a reporting public company will be approximately $8,000.

The Company will have to meet all the financial disclosure and reporting requirements associated with being a publicly reporting company. The Company’s management will have to spend additional time on policies and procedures to make sure it is compliant with various regulatory requirements, especially that of Section 404 of the Sarbanes-Oxley Act of 2002. This additional corporate governance time required of management could limit the amount of time management has to implement is business plan and impede the speed of its operations.

Cash Flows from Operating Activities


We have not generated positive cash flows from operating activities. For the fiscal year ended March 31, 2016, net cash flows used in operating activities was $10,708 compared to $4,871 for the period ended March 31, 2015.


Cash Flows from Investing Activities


We neither used nor generated cash from investing activities for the fiscal year ended March 31, 2015 compare to cash used in the amount of $8,142 during the year ending March 31, 2016.


Cash Flows from Financing Activities


We have financed our operations primarily from the sale of shares of our common stock or by way of loan from our director. For the fiscal year ended March 31, 2016, net cash from financing activities was $23,450 consisting of share issuance $19,418 and a loan from a director $4,032. For the fiscal year ended March 31, 2015, net cash provided by financing activities was $4,982.


PLAN OF OPERATION AND FUNDING


The Company currently has limited working capital, and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time. Our cash reserves are not sufficient to meet our obligations for the next twelve month period. As a result, we will need to seek additional funding in the near future. We currently do not have a specific plan of how we will obtain such funding; however, we anticipate that additional funding will be in the form of equity financing from the sale of shares of our common stock. We may also seek to obtain short-term loans from our directors or unrelated parties.


We intend to concentrate our efforts on raising capital during this period. Our operations will be limited due to the limited amount of funds on hand. Upon completion of our public offering, our specific goal is to profitably sell our paper bags.

In the event we sell 50% with the amount of $25,000 or less of the shares in this offering, the Company will utilize funds from our sole officer and director Ms. Ioannou who has formally agreed to loan needed additional amount for Makkanotti Group Corp. for twelve month operation in accordance to our Plan of Operation.

Our offering is being made on a self-underwritten and “best-efforts” basis: no minimum number of shares must be sold in order for the offering to proceed. The offering price per share is $0.01. The following table sets forth the uses of proceeds assuming the sale of 50%, 75% and 100%, respectively, of the securities offered for sale by the Company. There is no assurance that we will raise the full $50,000 as anticipated.

Our plan of operations is as follows:

Gross proceeds   

$

25,000

$

37,500

$

50,000

Offering expenses

$

7,500

$

7,500

$

7,500

Net proceeds

$

17,500

$

30,000

$

42,500

Paper food bag forming machine

$

-

$

6,800

$

12,900

Raw materials

$

2,760

$

6,110

$

7,000

Specialist’s salary

$

-

$

2,700

$

5,400

Purchase of office equipment

$

500

$

600

$

900

Office rent

$

2,640

$

2,640

$

4,200

Website development

$

1,200

$

1,200

$

1,400

Marketing and advertising

$

1,600

$

1,000

$

1,300

SEC reporting and compliance

$

8,000

$

8,000

$

8,000

Miscellaneous expenses

$

800

$

950

$

1,400




OFF-BALANCE SHEET ARRANGEMENTS


We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

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 in start-up stage operations and have generated only limited revenues. We cannot guarantee we will be successful in expanding our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services and products. We have no assurance that future financing will be available to us on acceptable terms. If financing is not available on satisfactory terms, we may be unable to continue, develop or expand our operations. Equity financing could result in additional dilution to existing shareholder.

Our sole officer and director Anna Ioannou has agreed to loan to the Company needed minimum of funds to implement our plan of manufacturing for first 12 months, in case of not selling sufficient quantity of shares from this offering, but further we will still require additional financing to expand our paper bags business.  


GOING CONCERN


The Company has generated limited revenues and incurred a loss since Inception (May 15, 2014) resulting in an accumulated deficit of $14,448 as of March 31, 2016 and further losses are anticipated in the development of its business.  Accordingly, there is substantial doubt about the Company’s ability to continue as a going concern.


Because of the Company’s history of losses, its independent auditors, in the reports on the financial statements for the year ended March 31, 2016 and for the period from Inception (May 15, 2014) to March 31, 2015, expressed substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which contemplate continuation of the Company as a going concern. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that could result from the outcome of this uncertainty.


SIGNIFCANT ACCOUNTING POLICIES


Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Accounting for Income Taxes”. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.  As of March 31, 2016, the Company did not have any amounts recorded pertaining to uncertain tax positions.  




9







Fair Value Measurements

The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”, which  defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements.

 

The estimated fair value of certain financial instruments, including cash and cash equivalents are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments.


ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:


Level 1 — quoted prices in active markets for identical assets or liabilities

Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable

Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions)


The Company has no assets or liabilities valued at fair value on a recurring basis.


Item 7A. Quantitative and Qualitative Disclosures about Market Risk   


Not applicable to smaller reporting companies.


Item 8. Financial Statements and Supplementary Data   


 

10







MAKKANOTTI GROUP CORP.


FINANCIAL STATEMENTS


For the Year Ended March 31, 2016 and for the period from May 15, 2014 (Inception) to March 31, 2015


Table of Contents


 

 

Page

Report of Independent Registered Public Accounting Firm

 

12

 

 

 

Balance Sheets as of March 31, 2016 and March 31, 2015

 

13

 

 

 

Statements of Operations for the year ended March 31, 2016 and for the period from May 15, 2014 (Inception) to March 31, 2015

 


14

 

 

 

Statement of Stockholders’ Equity as of March 31, 2016 and for the period from May 15, 2014 (Inception) to March 31, 2015

 

15

 

 

 

Statements of Cash Flows for the year ended March 31, 2016 and for the period from May 15, 2014 (Inception) to March 31, 2015

 

16

 

 

 

Notes to Financial Statements

 

17




11









 

Paritz

 

 

& Company, P.A

   15 Warren Street, Suite 25

Hackensack, New Jersey 07601

                 (201) 342-7753

        Fax:  (201) 342-7598

 

 

 

 

 

 

Certified Public Accountants

 

 

 

                       REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

 

To the Board of Directors and Stockholders

Makkanotti Group Corp.

 

We have audited the accompanying balance sheets of Makkanotti Group Corp. as of March 31, 2016 and 2015 and the related statements of operations, stockholders’ equity and cash flows for the year ended March 31, 2016 and for the period from inception (May 15, 2014) to March 31, 2015.  These financial statements are the responsibility of the Company's management.  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 audits 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 audit provides 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 Makkanotti Group Corp. as of March 31, 2016 and 2015, and the results of its operations and cash flows for the year ended March 31, 2016 and for the period from inception (May 15, 2014) to March 31, 2015 in conformity with accounting principles generally accepted in the United States of America.

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company has generated minimal revenues since inception and has an accumulated deficit of $14,448 at March 31, 2016. These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

 

 

                                                                                                /S/Paritz & Company, P.A.

 

Hackensack, New Jersey

June 24, 2016

 

 


 

12







MAKKANOTTI GROUP CORP.

BALANCE SHEET



ASSETS

 

 

 

 

 

 

March 31, 2016

 

March 31, 2015

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

   Cash

 

 

 

 

$

4,711

$

 111

 

   Prepaid expenses

 

 

 

$

1,760

678

$

 4,380

-

 

   Inventory

 

 

 

$

$

 

 

Total current assets

 

 

7,149

 

 4,491

 

 

 

 

 

 

 

 

 

 

 

Equipment, net of accumulated depreciation of $1,307

 

 6,835

 

 -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

   

 

   

 

TOTAL ASSETS

 

 

 

$

13,984

$

 4,491

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

   Accrued expenses

 

 

 

$

 -

$

 3,500

 

   Loan payable - related party

 

 

$

 4,032

$

 

 

Total current liabilities

 

 

 4,032

 

 3,500

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES

 

 

 

 4,032

 

 3,500

 

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

   Common stock, $0.001 par value, 75,000,000 shares authorized,

 

 

 

      6,940,000 and 5,000,000 shares issued and outstanding respectively

 

 6,940

 

 5,000

 

   Additional Paid In Capital

 

17,460

 

-

 

   Stock subscription receivable

 

 

 

 -  

 

 (18)

 

   Accumulated deficit

 

 

 

 (14,448)

 

 (3,991)

 

 

Total stockholders' equity

 

                                    9,952

 

 991

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

13,984

$

4,491

 

 

 

 

 

 

 

 

 

 

 




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




13







MAKKANOTTI GROUP CORP.

STATEMENT OF OPERATIONS

 

 

Year ended

March 31, 2016

 

From Inception (May 15, 2014) to

 

 

March 31, 2015

 

 

 

 

 

 

REVENUE

$

 11,395 

 

$

 

-

 

 

 

 

 

 

Cost of Sales

1,288

 

 

-

 

 

 

 

 

 

Gross Profit

10,107

 

 

-

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

    General and administrative

 20,564

 

 

3,991

 

 

 

 

 

 

Total operating expenses

20,564

 

 

3,991

 

 

 

 

 

 

Loss before income tax provision

(10,457)

 

 

(3,991)

 

 

 

 

 

 

Income tax provision

 -

 

 

-

 

 

 

 

 

 

Net Loss

$

(10,457)

 

$

 

(3,991)

 

 

 

 

 

 

Loss per share - basic and diluted

$

 (0.00)

 

$

 

(0.00)

 

 

 

 

 

 

Weighted average number of shares outstanding - basic and diluted

 

6,093,918  

 

 

5,000,000

 

 

 

 

 

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



14







MAKKANOTTI GROUP CORP.

STATEMENT OF STOCKHOLDERS’ EQUITY





Common Stock

Additional Paid-in

Stock subscription receivable

Accumulated

Total Stockholders’

 

 

Shares

Amount

Capital

Deficit

Equity

 

 

 

 

 

 

 

Inception, May 15, 2014

-

$            -

-

-

$                  -

$                -

Shares issued for founder at $0.001 per share

5,000,000

5,000

-

(18)

-

4,982

Net loss for the period ended March 31, 2015

-

-

-

-

(3,991)

(3,991)

Balance, March 31, 2015

5,000,000

$     5,000

-

(18)

$     (3,991)

$         991

 

 

 

 

 

 

Shares issued for cash at $0.01 per share

1,940,000

1,940

17,460

-

-

19,400

Stock subscription receivable

-

-

-

18

-

18

Net loss for the year ended March 31, 2016

-

-

-

-

(10,457)

(10,457)

Balance, March 31, 2016

6,940,000

$    6,940

17,460

-

$   (14,448)

$    9,952


 



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



15







MAKKANOTTI GROUP CORP.

STATEMENT OF CASH FLOWS

 (AUDITED)


 

 

 

 

From Inception

 

 

Year ended

 

(May 15, 2014) to

 

 

March 31, 2016

 

March 31, 2015

 

 

 

 

 

Cash Flows from Operating Activities:

 

 

 

 

 

 

 

 

 

Net Loss

$

 (10,457)

$

 (3,991)   

Adjustments to reconcile net loss to net

 

 

 

 

  cash used in operating activities:

 

 

 

 

Depreciation expense

 

 1,307

 

 -   

Changes in operating assets and liabilities:

 

 

 

 

Inventory

 

(678)

 

                                       -

Prepaid expenses

 

 2,620

 

 (4,380)   

Accrued expenses

 

 (3,500)

 

 3,500   

Net Cash used in Operating Activities

 

 (10,708)

 

(4,871)   

 

 

 

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 Acquisition of equipment

 

 (8,142)

 

-  

Net Cash used in Investing Activities

 

 (8,142)

 

-  

 

 

 

 

 

Cash flows from Financing Activities:

 

 

 

 

 

 

 

 

 

Proceeds from issuance of common stock

 

19,418

 

4,982   

Proceeds of loan from related party

 

 4,032

 

-   

Net Cash provided by Financing Activities

 

23,450

 

 4,982

 

 

 

 

 

 

 

 

 

 

Net increase in cash

$

 4,600

$

 111   

Cash at beginning of period

 

 111

 

 -   

Cash at end of period

$

4,711

$

 111   

 

 

 

 

 

 

 

 

 

 


 



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





16







MAKKANOTTI GROUP CORP.

NOTES TO THE AUDITED FINANCIAL STATEMENTS


NOTE 1 – ORGANIZATION AND DESCRIPTION OF BUSINESS


Makkanotti Group Corp. (the “Company”) was incorporated in the State of Nevada on May 15, 2014. The Company was formed to engage in the business of manufacturing food paper bags in Nicosia, Cyprus


NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Basis of Presentation

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP).

 

Use of estimates 

The preparation of financial statements in conformity with GAAP 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 amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Revenue Recognition 

The Company follows the guidance of the Accounting Standards Codification (“ASC”) Topic 605, Revenue Recognition. We record revenue when persuasive evidence of an arrangement exists, product delivery has occurred, the selling price to the customer is fixed or determinable and collectability of the revenue is reasonably assured. The Company has not experienced any significant returns from customers and accordingly, in management’s opinion, no reserve for returns has been provided.

 

Inventories 

Inventories, which consist of the Company’s product held for resale, are stated at the lower of cost, determined using the first-in first-out, and net realizable value. Net realizable value is the estimated selling price, in the ordinary course of business, less estimated costs to complete and dispose of the product.

 

 

 

 

If the Company identifies excess, obsolete or unsalable items, its inventories are written down to their realizable value in the period in which the impairment is first identified. Shipping and handling costs incurred for inventory purchases and product shipments are recorded in cost of sales in the Company’s statements of operations.


Property and Equipment

Property and equipment is stated at cost less accumulated depreciation. Depreciation is provided for on a straight-line basis over the useful lives of the assets. The equipment the useful life is five years; repairs and maintenance are expensed as incurred.


Start-Up Costs

In accordance with ASC 720, “Start-up Costs”, the Company expenses all costs incurred in connection with the start-up and organization of the Company.


Income Taxes

The Company accounts for income taxes using the asset and liability method in accordance with ASC 740, “Accounting for Income Taxes”. The asset and liability method provides that deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.  As of March 31, 2016, the Company did not have any amounts recorded pertaining to uncertain tax positions.  


Fair Value Measurements

 

The Company adopted the provisions of ASC Topic 820, “Fair Value Measurements and Disclosures”, which  defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements.


 

The estimated fair value of certain financial instruments, including cash and cash equivalents are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments.




17





MAKKANOTTI GROUP CORP.

NOTES TO THE AUDITED FINANCIAL STATEMENTS


ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value:


Level 1 — quoted prices in active markets for identical assets or liabilities

Level 2 — quoted prices for similar assets and liabilities in active markets or inputs that are observable

Level 3 — inputs that are unobservable (for example cash flow modeling inputs based on assumptions)


The Company has no assets or liabilities valued at fair value on a recurring basis.


NOTE 3 - GOING CONCERN


The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  The Company has generated minimal revenues since inception and has an accumulated deficit of $14,448 at March 31, 2016. These factors, among others, raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time.  The Company’s continuation as a going concern is dependent upon, among other things, its ability to generate revenues and its ability to obtain capital from third parties.  No assurance can be given that the Company will be successful in these efforts.


The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.


NOTE 4   PROPERTY AND EQUIPMENT

 

Property and equipment consist of:

 

 

 

 

March 31, 2016

Equıpment

 

$

8,142

 

 

 

 

 

 

 

 

Accumulated Depreciation

 

 

(1,307)

 

 

 

 

$

6,835

 

 


NOTE 5 LOAN PAYABLE RELATED PARTY


During the year ended March 31, 2016 the Company borrowed $4,032 from its founder. The loan is non-interest bearing, has no set maturity date, and the Company intends to repay the loan as cash flow becomes available.


NOTE 6 – STOCKHOLDERS’ EQUITY


Authorized Stock

 

The Company has authorized 75,000,000 common shares with a par value of $0.001 per share.  Each common share entitles the holder to one vote, in person or proxy, on any matter on which action of the stockholders of the corporation is sought.


Common Share Issuances

On March 16, 2015, the company issued a total of 5,000,000 common shares to its founder for a cash contribution of $4,982 in connection with a subscription agreement in the amount of $5,000. The difference between the subscription amount and the amount contributed has been recorded as a stock subscription receivable in the amount of $18. The subscription was received on April 30, 2015.



18






MAKKANOTTI GROUP CORP.

NOTES TO THE AUDITED FINANCIAL STATEMENTS


During September 2015, the company issued a total of 1,940,000 common shares for cash contribution of $19,400 at $0.01 per share


There were 6,940,000 shares of common stock issued and outstanding as of March 31, 2016.


NOTE 7 – CONCENTRATION


All of the revenues generated during year ended March 31, 2016 were from two customers, whıch represented 74% and 26% each.

 

NOTE 8 – INCOME TAXES

 

As of March 31, 2016, the Company had approximately $14,400 of federal and state net operating loss carryovers (“NOLs”) which begin to expire in 2035.  Utilization of the NOLs may be subject to limitation under the Internal Revenue Code Section 382 should there be a greater than 50% ownership change as determined under regulations. 

 

In assessing the realization of deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized.  The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible.  Management considers the scheduled reversal of deferred tax liabilities, projected future taxable income and tax planning strategies in making this assessment.  Based on the assessment, management has established a full valuation allowance against the entire deferred tax asset relating to NOLs for every period because it is more likely than not that all of the deferred tax asset will not be realized.


 

NOTE 9 SUBSEQUENT EVENTS


Management has evaluated subsequent events through the date these financial statement were available to be issued. Based on the evaluation no material events have occurred that require recognition in or disclosure to the financial statements.


Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure


None


Item 9A (T) Controls and Procedures

Management’s  Report on Internal Controls over Financial Disclosure Controls and Procedures


Management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Exchange Act Rule 13a-15(f)). The Company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America. Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. 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. Under the supervision and with the participation of management, including the Chief Executive Officer and Chief Financial Officer, the Company conducted



19







an evaluation of the effectiveness of the Company’s internal control over financial reporting as of March 31, 2016 using the criteria established in “Internal Control - Integrated Framework” issued by the Committee of Sponsoring Organizations of the Tread way Commission ("COSO").


A material weakness is a deficiency, or combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis. In its assessment of the effectiveness of internal control over financial reporting as of March 31, 2016, the Company determined that there were control deficiencies that constituted material weaknesses, as described below.

 

1.

We do not have an Audit Committee – While not being legally obligated to have an audit committee, it is the management’s view that such a committee, including a financial expert member, is an utmost important entity level control over the Company’s financial statement. Currently the Board of Directors acts in the capacity of the Audit Committee, and does not include a member that is considered to be independent of management to provide the necessary oversight over management’s activities.


2.

We did not maintain appropriate cash controls – As of March 31, 2016, the Company has not maintained sufficient internal controls over financial reporting for the cash process, including failure to segregate cash handling and accounting functions, and did not require dual signature on the Company’s bank accounts. Alternatively, the effects of poor cash controls were mitigated by the fact that the Company had limited transactions in their bank accounts.


3.

We did not implement appropriate information technology controls – As at March 31, 2016, the Company retains copies of all financial data and material agreements; however there is no formal procedure or evidence of normal backup of the Company’s data or off-site storage of data in the event of theft, misplacement, or loss due to unmitigated factors.


Accordingly, the Company concluded that these control deficiencies resulted in a reasonable possibility that a material misstatement of the annual or interim financial statements will not be prevented or detected on a timely basis by the company’s internal controls.


As a result of the material weaknesses described above, management has concluded that the Company did not maintain effective internal control over financial reporting as of March 31, 2016 based on criteria established in Internal Control- Integrated Framework issued by COSO.


Changes in Internal Controls over Financial Reporting


There has been no change in our internal control over financial reporting identified in connection with our evaluation we conducted of the effectiveness of our internal control over financial reporting as of March 31, 2016, that occurred during our second fiscal quarter that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.


Item 9B. Other Information.


None.


PART III


Item 10. Directors, Executive Officers, Promoters and Control Persons of the Company


DIRECTORS AND EXECUTIVE OFFICERS


The name, age and titles of our executive officer and director are as follows:

Name and Address of Executive Officer and/or Director

Age

Position

Anna Ioannou,

Larnakos Avenue, 73, ap. 402, Nicosia, Cyprus 1046

42

President, Treasurer, Secretary and Director

(Principal Executive, Financial and Accounting Officer)




20







Biographical Information and Background of officer and director 


Anna Ioannou has acted as our President, Treasurer, Secretary and sole Director since our incorporation on May 15, 2014. Ms. Ioannou owns 72% of the outstanding shares of our common stock. As such, it was unilaterally decided that Ms. Ioannou was going to be our sole President, Chief Executive Officer, Treasurer, and Chief Financial Officer, Chief Accounting Officer, Secretary and sole member of our board of directors. Ms. Ioannou graduated from University of Nicosia, Cyprus in 1997. She obtained a bachelor degree in Economics and Financing. Ms. Ioannou started her career in accounting area. From 2005 she worked in human resources area in Nicosia, Cyprus. Ms. Ioannou worked as team recruiting manager for HR Easy Learning Ltd. from November 2009 August 2010, and held a position of recruiting manager for the same company from August 2010 to March 2011. Last job of Ms. Ioannou was for E.C. Executive Connections Ltd. as senior recruiting manager and she held this position from May 2011 to June 2014. Anna Ioannou

During the past ten years, Ms. Ioannou has not been the subject to any of the following events:

1.

Any bankruptcy petition filed by or against any business of which Ms. Ioannou was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time.

2.

Any conviction in a criminal proceeding or being subject to a pending criminal proceeding.

3.

An order, judgment, or decree, not subsequently reversed, suspended or vacated, or any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting Ms. Ioannou’s involvement in any type of business, securities or banking activities.

4.

Found by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission or the Commodity Future Trading Commission to violate a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

5.

Was 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 to engage in any activity described in paragraph (f)(3)(i) of this section, or to be associated with persons engaged in any such activity;

6.

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;

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;

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.


TERM OF OFFICE

Each of our directors is appointed to hold office until the next annual meeting of our stockholders or until her respective successor is elected and qualified, or until she resigns or is removed in accordance with the provisions of the Nevada Revised Statues. Our officers are appointed by our Board of Directors and hold office until removed by the Board or until their resignation.

DIRECTOR INDEPENDENCE



21







We intend to have our securities quoted on the OTC Bulletin Board or other quotation service, which do not have any director independence requirements. Once we engage additional directors and officers, however, we plan to develop a definition of independence and scrutinize our Board of Directors with regard to this definition. At that time we intend to use the NASDAQ definition of independence as a model.  This definition includes a series of objective tests, for example, that the director cannot be, and has not been for at least three years, one of our employees and that neither the director, nor any of his or her family members has engaged in various types of business dealings with us.

COMMITTEES OF THE BOARD OF DIRECTORS

Our Board of Directors has no committees. We do not have a standing nominating, compensation or audit committee.

Item 11. Executive Compensation


The following tables set forth certain information about compensation paid, earned or accrued for services by our Executive Officer from inception on May 15, 2014 until March 31, 2016:

Summary Compensation Table

Name and

Principal

Position

Period

Salary  ($)

Bonus

($)

Stock

Awards

($)

Option

Awards

($)

Non-Equity

Incentive Plan

Compensation

($)

Nonqualified

Deferred

Compensation

($)

All Other

Compensation

($)

Total

($)

Anna Ioannou, President and Treasurer

May 15, 2014 to March 31, 2016

0

0

0

0

0

0

0

0


There are no current employment agreements between the Company and its officer and director Anna Ioannou.


There are no annuity, pension or retirement benefits proposed to be paid to the officer or director or employees in the event of retirement at normal retirement date pursuant to any presently existing plan provided or contributed to by the company or any of its subsidiaries, if any.

Director Compensation

The following table sets forth director compensation as of March 31, 2016:

Name

Fees

Earned

or Paid

in Cash

($)

Stock

Awards

($)

Option

Awards

($)

Non-Equity

Incentive Plan

Compensation

($)

Nonqualified

Deferred

Compensation

Earnings

($)

All Other

Compensation

($)

Total

($)

Anna Ioannou

0

0

0

0

0

0

0


Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters


The following table sets forth certain information concerning the number of shares of our common stock owned beneficially as of March 31, 2016 by: (i) each person (including any group) known to us to own more than five percent (5%) of any class of our voting securities, (ii) our director, and or (iii) our officer. Unless otherwise indicated, the stockholder listed possesses sole voting and investment power with respect to the shares shown.



22










Title of Class

Name and Address of

Beneficial Owner (1)

Amount and Nature of

Beneficial Ownership

Percentage

Common Stock

Anna Ioannou, Larnakos Avenue, 73, ap. 402,

Nicosia, Cyprus 1046

5,000,000 shares of common stock (direct)


72%


(1) A beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares: (i) voting power, which includes the power to vote, or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares. Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights.

The percent of class is based on 6,940,000 shares of common stock issued and outstanding as of the date of this annual report.


Item 13. Certain Relationships and Related Transactions


Anna Ioannou will not be paid for any underwriting services that she performs on our behalf with respect to this offering.

As of March 31, 2016 our sole officer and director has advanced us $4,032, which is not a part of Loan Agreement. Anna Ioannou has verbally agreed to loan this amount to the Company. The loan is not interest bearing, without any profit and has no set maturity date, and the Company intends to repay the loan as cash flow becomes available. Ms. Ioannou will not be repaid from the proceeds of this offering. There is no due date for the repayment of the funds advanced by Ms. Ioannou. Ms. Ioannou will be repaid from revenues of operations if and when we generate significant revenues to pay the obligation. There is no assurance that we will ever generate revenues from our operations. The obligation to Ms. Ioannou does not bear interest. There is a written agreement evidencing the advancement of funds by Ms. Ioannou. Ms. Ioannou if necessary, will loan funds to the Company to complete the registration process.

Item 14. Principal Accountant Fees and Services 


Audit Fees 

We were billed $10,250 for fiscal year March 31, 2016 and $3,500 for fiscal period  March 31, 2015  for professional services rendered by the principal accountant for the audit of our annual financial statements, the review of our quarterly financial statements, and other services performed in connection with our statutory and regulatory filings.

 

 

 

 

Audit Related Fees 

There were $0 in audit related fees for fiscal year March 31, 2016 and for fiscal period March 31, 2015. Audit related fees include fees for assurance and related services rendered by the principal accountant related to the audit or review of our financial statements, not included in the foregoing paragraph.

 

Tax Fees 

Tax fees were $0.

 

All Other Fees 


23







There were no other professional services rendered by our principal accountant during the last two fiscal years that were not included in the above paragraphs.


PART IV


Item 15. Exhibits


The following exhibits are included as part of this report by reference:


 

 

 

31.1 

 

Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).

 

 

 

31.2 

 

Certification of Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).

  

 

 

32.1 

 

Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.





 



SIGNATURES


Pursuant to the requirements of the Securities Act of 1933, the registrant has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized in the Nicosia, Cyprus on June 24, 2016.





 


MAKKANOTTI GROUP CORP.

 

 

 

 

By:

/s/

Anna Ioannou

 

 

 

Name:

Anna Ioannou

 

 

 

Title:

President, Treasurer , Secretary and Director

 

 

 

(Principal Executive, Financial and Accounting Officer)


[makkanottigroupcorp001.jpg]



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