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EX-32.1 - EXHIBIT 32.1 - SKINOVATION PHARMACEUTICAL INCskin0707form10kexh32_1.htm
EX-31.2 - EXHIBIT 31.2 - SKINOVATION PHARMACEUTICAL INCskin0707form10kexh31_2.htm
EX-31.1 - EXHIBIT 31.1 - SKINOVATION PHARMACEUTICAL INCskin0707form10kexh31_1.htm
EX-4.6 - EXHIBIT 4.6 - SKINOVATION PHARMACEUTICAL INCskin0707form10kexh4_6.htm



Washington, D.C. 20549





For the fiscal year ended December 31, 2019





For transition period ___ to ____



Commission file number: 000-30991



Commission file number: 000-30991



(Exact name of registrant as specified in its charter)


(State or other jurisdiction of incorporation or organization)


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

2157 S. Lincoln Street, Salt Lake City, Utah

(Address of principal executive offices)


(Zip Code)


Registrant’s telephone number, including area code: (801) 323-2395


Securities registered pursuant to Section 12(b) of the Act:


Title of each class Trading Symbol(s) Name of each exchange on which registered


Securities registered under Section 12(g) of the Act: Common Stock


Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☑


Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. Yes ☐ No ☑


Indicate by check mark whether the registrant (1) 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 ☐ No ☑


Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☐ No ☑


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


Large accelerated filer ☐

Non-accelerated filer ☑

Accelerated filer ☐

Smaller reporting company ☑

Emerging growth company ☑


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


Indicate by checkmark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐


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


The registrant did not have an active trading market for its common stock as of the last business day of its most recently completed second fiscal quarter; therefore, an aggregate market value of shares of voting and non-voting common equity held by non-affiliates cannot be determined.


The number of shares outstanding of the registrant’s common stock as of July 10, 2020, was 708,000.


Documents incorporated by reference: None





  PART I  
Item 1. Business 4
Item 1A. Risk Factors 8
Item 2. Properties 8
Item 3. Legal Procedures 8
Item 4. Mine Safety Disclosure 8
Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchased of Equity Securities 8
Item 6. Selected Financial Data 9
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 9
Item 8. Financial Statements and Supplementary Data 11
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 20
Item 9A. Controls and Procedures 20
Item 9B. Other Information 20
Item 10. Directors, Executive Officers and Corporate Governance 21
Item 11. Executive Compensation 22
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 23
Item 14. Principal Accounting Fees and Services 23
Item 15. Exhibits, Financial Statement Schedules 24
Signatures   25



In this annual report references to “Skinovation,” “we,” “us,” “our” and “the Company” refer to Skinovation Pharmaceutical Incorporated.




The U. S. Securities and Exchange Commission (“SEC”) encourages companies to disclose forward-looking information so that investors can better understand future prospects and make informed investment decisions. This report contains these types of statements. Words such as “may,” “expect,” “believe,” “anticipate,” “estimate,” “project,” or “continue” or comparable terminology used in connection with any discussion of future operating results or financial performance identify forward-looking statements. You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report. All forward-looking statements reflect our present expectation of future events and are subject to a number of important factors and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements.







Historical Development


The Company was originally incorporated in the state of Nevada on January 15, 1988, as Data Financial Corporation. On August 5, 1992, Data Financial changed its name to Skinovation Pharmaceutical Incorporated when it began operations as a licensee for pharmaceutical products; however, that operation ceased in 1993. On November 23, 2016 the Company filed Articles of Domestication in the state of Wyoming; effectively moving the Company’s state of domicile from Nevada to Wyoming.


Our Business Plan


Our business plan is to seek, investigate, and, if warranted, acquire an interest in a business opportunity. Our acquisition of a business opportunity may be made by merger, exchange of stock, or otherwise. We have very limited sources of capital, and we probably will only be able to take advantage of one business opportunity. As of the date of this filing, we have not identified any business opportunity that we plan to pursue, nor have we reached any preliminary or definitive agreements or understandings with any person concerning an acquisition or merger.


Based upon current economic conditions, management believes that it is possible, if not probable, for a company like ours, without many assets or liabilities, to negotiate a merger or acquisition with a viable private company. The opportunity arises principally because of the expensive legal and accounting fees and the length of time associated with the registration process of “going public.”


Our search for a business opportunity will not be limited to any particular geographical area or industry and includes both U.S. and international companies. Our management has unrestricted discretion in seeking and participating in a business opportunity, subject to the availability of such opportunities, economic conditions and other factors. Our management believes that companies who desire a public market to enhance liquidity for current stockholders, or plan to acquire additional assets through issuance of securities rather than for cash, will be potential merger or acquisition candidates.


The selection of a business opportunity in which to participate is complex and extremely risky and will be made by management in the exercise of their business judgment. Our activities are subject to several significant risks which arise primarily as a result of the fact that we have no operating business and may acquire or participate in a business opportunity based on the decision of management which will, in all probability, act without consent, vote, or approval of our stockholders. We cannot assure you that we will be able to identify and merge with or acquire any business opportunity which will ultimately prove to be beneficial to Skinovation and our stockholders. Should a merger or acquisition prove unsuccessful, it is possible management may decide not to pursue further acquisition activities and management may abandon our search and we may become dormant or be dissolved.


It is possible that the range of business opportunities that might be available for consideration by us could be limited by the fact that our common stock currently is not listed on any established public trading market. We cannot assure you that a market will develop or that a stockholder will be able to liquidate his/her/its investments without considerable delay, if at all. If a market develops, our shares will likely be subject to the rules of the Securities Enforcement Remedies and Penny Stock Reform Act of 1990. The liquidity of penny stock is affected by specific disclosure procedures required by those rules to be followed by all broker-dealers, including but not limited to, determining the suitability of the stock for a particular customer, and obtaining a written agreement from the customer to purchase the stock. This rule may affect the ability of broker-dealers to sell our securities and may affect the ability of purchasers to sell our securities in any market.




Investigation and Selection of Business Opportunities


We anticipate that business opportunities will come to our attention from various sources, including our officers and directors, our stockholders, professional advisors, such as attorneys and accountants, securities broker-dealers, investment banking firms, venture capitalists, members of the financial community and others who may present unsolicited proposals. Management expects that prior personal and business relationships may lead to contacts with these various sources.


We expect that our due diligence will encompass, among other things, meetings with the target business’s incumbent management and inspection of its facilities, as necessary, as well as a review of financial and other information which is made available to our management. This due diligence review may be conducted either by our management or by unaffiliated third parties we may engage. Our limited funds and the lack of full-time management will likely make it impracticable to conduct a complete and exhaustive investigation and analysis of a target business before we consummate a business combination. We anticipate that we will rely upon funds provided by loans from management and/or significant stockholders to conduct investigation and analysis of any potential target companies or businesses. We may also rely upon the issuance of our common stock in lieu of cash payments for services or expenses related to any analysis. Management decisions, therefore, will likely be made without detailed feasibility studies, independent analysis, market surveys and the like which, if we had more funds available to us, would be desirable. We will be particularly dependent in making decisions upon information provided by the promoters, owners, sponsors or other persons associated with the target business seeking our participation.


Our management will analyze the business opportunities; however, none of our management team are professional business analysts (See Part III, Item 10, below). Our management has had limited experience with mergers and acquisitions of business opportunities and has not been involved with an initial public offering. Due to management’s limited experience with mergers and acquisitions, they may rely on principal stockholders or associates, or promoters or their affiliates to assist in the investigation and selection of business opportunities.


Certain conflicts of interest exist or may develop between us and our executive officers and directors. They have other business interests to which they currently devote attention, which include a medical practice and independent contractor services (See Part III, Item 10, below.) Our management may be expected to continue to devote their attention to these other business interests although management time should be devoted to our business. As a result, conflicts of interest may arise that can be resolved only through their exercise of judgment in a manner which is consistent with their fiduciary duties to us.


A decision to participate in a specific business opportunity may be made upon our management’s analysis of:


the quality of the business opportunity’s management and personnel,
the anticipated acceptability of its new products or marketing concept,
the merit of its technological changes,
the perceived benefit that it will derive from becoming a publicly held entity, and
numerous other factors which are difficult, if not impossible, to analyze through the application of any objective criteria.


No one factor described above will be controlling in the selection of a business opportunity. Management will attempt to analyze all factors appropriate to each opportunity and make a determination based upon reasonable investigative measures and available data. Potential business opportunities may occur in many different industries and at various stages of development. Thus, the task of comparative investigation and analysis of such business opportunities will be extremely difficult and complex. Potential investors must recognize that because of our limited capital available for investigation and management’s limited experience in business analysis, we may not discover or adequately evaluate adverse facts about the business opportunity to be acquired.




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


Form of Acquisition


We cannot predict the manner in which we may participate in a business opportunity. Specific business opportunities will be reviewed as well as our needs and desires and those of the promoters of the opportunity. The legal structure or method deemed by management to be suitable will be selected based upon our review and our relative negotiating strength. We may be required to merge, consolidate or reorganize with other corporations or forms of business organizations. In addition, our present management and stockholders most likely will not have control of a majority of our voting shares following a merger or reorganization transaction. As part of such a transaction, our existing directors may resign and new directors may be appointed to fill those vacancies without any vote by our stockholders.


We likely will acquire our participation in a business opportunity through the issuance of common stock or other securities. Although the terms of any such transaction cannot be predicted, it should be noted that in certain circumstances the criteria for determining whether or not an acquisition is a so-called "tax free" reorganization under Section 368(a) (1) of the Internal Revenue Code of 1986, as amended (the "Code") depends upon whether the owners of the acquired business own 80% or more of the voting stock of the surviving entity. If a transaction were structured to take advantage of these provisions rather than other "tax free" provisions provided under the Code, all prior stockholders would in that circumstance retain 20% or less of the total issued and outstanding shares of the surviving entity. Under other circumstances, depending upon the relative negotiating strength of the parties, prior stockholders may retain substantially less than 20% of the total issued and outstanding shares of the surviving entity. This could result in substantial additional dilution to the equity of those persons who were our stockholders prior to such reorganization.


In the case of an acquisition, the transaction may be accomplished upon the sole determination of management without any vote or approval by stockholders. In the case of a statutory merger or consolidation directly involving the Company, it will likely be necessary to call a stockholders' meeting and obtain the approval of the holders of a majority of the outstanding securities. The necessity to obtain such stockholder approval may result in delay and additional expense in the consummation of any proposed transaction and will also give rise to certain appraisal rights to dissenting stockholders. Most likely, management will seek to structure any such transaction so as not to require stockholder approval.


The time and costs required to select and evaluate a target business and to structure and complete a business combination cannot presently be ascertained with any degree of certainty. Any costs incurred with respect to the indemnification and evaluation of a prospective business combination that is not ultimately completed may result in a loss to the Company. Also, fees may be paid in connection with the completion of all types of acquisitions, reorganizations or mergers. These fees are usually used to pay legal costs, accounting costs, finder’s fees, consultant’s fees and other related expenses. In the event that any such fees are paid, they may become a factor in negotiations regarding any potential acquisition or merger by us. We have no present arrangements or understandings respecting any of these types of fees.


Significant stockholders may actively negotiate or otherwise consent to the purchase of all or any portion of their common stock as a condition to, or in connection with, a proposed reorganization, merger or acquisition. It is not anticipated that any such opportunity will be afforded to other stockholders or that such other stockholders will be afforded the opportunity to approve or consent to any particular stock buy-out transaction. We have not adopted any procedures or policies for the review, approval or ratification of any related party transactions.




In the event we merge or acquire a business opportunity, the successor company will be subject to our reporting obligations. This is commonly referred to as a “back door registration.” A back door registration occurs when a non-reporting company becomes the successor of a reporting company by merger, consolidation, exchange of securities, acquisition of assets or otherwise. This type of event requires the successor company to file a current report with the SEC which provides the same kind of information about the company to be acquired that would appear in a registration statement, including audited and pro forma financial statements. This regulation may eliminate many of the perceived advantages of these types of transactions. Accordingly, we may incur additional expense to conduct due diligence and present the required information for the business opportunity in any report.


Also, the SEC may elect to conduct a full review of the successor company and may issue substantive comments on the sufficiency of disclosure related to the company to be acquired.


In addition, regulations also deny the use of Form S-8 for the registration of securities of a shell company, and limit the use of Form S-8 to a reorganized shell company until the expiration of 60 days from when any such entity is no longer considered to be a shell company. This prohibition could further restrict opportunities for the Company to acquire companies that may already have stock option plans in place that cover numerous employees. In such an instance, there may be no exemption from registration for the issuance of securities in any business combination to these employees, thereby necessitating the filing of a registration statement with the SEC to complete any such reorganization, and incurring the time and expense costs that are normally avoided by “back door” registrations.




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


Effect of Existing or Probable Governmental Regulations on Business


We are subject to the Sarbanes-Oxley Act of 2002. This Act creates a strong and independent accounting oversight board to oversee the conduct of auditors of public companies and to strengthen auditor independence. It also requires steps to enhance the direct responsibility of senior members of management for financial reporting and for the quality of financial disclosures made by public companies; establishes clear statutory rules to limit, and to expose to public view, possible conflicts of interest affecting securities analysts; creates guidelines for audit committee members’ appointment, and compensation and oversight of the work of public companies’ auditors; prohibits certain insider trading during pension fund blackout periods; and establishes a federal crime of securities fraud, among other provisions.


We are subject to the Securities Exchange Act of 1934 (“Exchange Act”) and are required to file annual reports on Form 10-K and quarterly reports on Form 10-Q with the SEC on a regular basis, and will be required to timely disclose certain material events in a Current Report on Form 8-K. We are also subject to Section 14(a) of the Exchange Act which requires the Company to comply with the rules and regulations of the SEC regarding proxy solicitations, as outlined in Regulation 14A. Matters submitted to our stockholders at a special or annual meeting of stockholders or pursuant to a written consent will require us to provide our stockholders with the information outlined in Schedules 14A or 14C of Regulation 14A; preliminary copies of this information must be submitted to the SEC at least 10 days prior to the date that definitive copies of this information are forwarded to our stockholders.


If we acquire a “non-reporting issuer” under the Exchange Act, we will be subject to the “back-door registration” requirements of the SEC that will require us to file a Current Report on Form 8-K that will include all information about such “non-reporting issuer” as would have been required to be filed by that entity had it filed a Form 10 Registration Statement with the SEC.




We currently have no employees. Our management expects to confer with consultants, attorneys and accountants as necessary. We do not anticipate a need to engage any full-time employees so long as we are seeking and evaluating business opportunities. We will determine the need for employees based upon a specific business opportunity, if any.


Available Information


We currently do not have a Company website.






We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and, as such, we are not required to provide the information for this Item.





We do not currently own or lease any property. Until we pursue a viable business opportunity and recognize income we will not seek office space.





We are not a party to any legal proceedings as of the date of this filing.





Not applicable to our operations.








Market Information


Our common stock is not listed or quoted to trade on any public trading market. We do not have any outstanding options or warrants to purchase our securities or securities convertible into our common stock.


Holders and Dividends


We had 306 stockholders of record of our common stock as of July 10, 2020. We have not declared dividends on our common stock and do not anticipate paying dividends on our common stock in the foreseeable future.


Recent Sales of Unregistered Securities




Issuer Purchase of Securities








Not applicable to smaller reporting companies.





Executive Overview


We are an emerging growth company. We recorded non-recurring revenues related to business development consulting services provided to another company; however, we have not recorded revenues before or since 2012. We are dependent upon financing to continue basic operations. Management intends to rely upon advances or loans from management, significant stockholders or third parties to meet our cash requirements, but we have not entered into written agreements guaranteeing funds and, therefore, no one is obligated to provide funds to us in the future. These factors raise substantial doubt as to our ability to continue as a going concern. Our plan is to combine with an operating company to generate revenue.


If we obtain a business opportunity, then it may be necessary to raise additional capital. We likely will sell our common stock to raise this additional capital. We anticipate that we would issue such stock pursuant to exemptions to the registration requirements provided by federal and state securities laws. The purchasers and manner of issuance will be determined according to our financial needs and the available exemptions to the registration requirements of the Securities Act of 1933. We do not currently intend to make a public offering of our stock. We also note that if we issue more shares of our common stock, then our stockholders may experience dilution in the value per share of their common stock.


Liquidity and Capital Resources


We have not established an ongoing source of revenue sufficient to cover our operating costs and we expect to rely upon third parties to pay for our operating expenses. At December 31, 2019 we had $77 cash compared to $132 at December 31, 2018. Our total liabilities increased to $314,262 at December 31, 2019 from $284,590 at December 31, 2018 primarily due to increases in notes payable, cash advances, accrued interest and consulting services and professional services provided by or paid for by third parties.


We intend to obtain capital from management, significant stockholders and third parties to cover minimal operations; however, there is no assurance that additional funding will be available. Our ability to continue as a going concern during the long term is dependent upon our ability to find a suitable business opportunity and acquire or enter into a merger with such company. The type of business opportunity with which we acquire or merge will affect our profitability for the long term.


During the next 12 months we anticipate incurring additional costs related to the filing of Exchange Act reports. We believe we will be able to meet these costs through advances and loans provided by management, significant stockholders or third parties. We may also rely on the issuance of our common stock in lieu of cash to convert debt or pay for expenses.


Results of Operations


We have not recorded revenues for the past two fiscal years. General and administrative expenses increased to $13,555 for 2019 compared to $13,415 for 2018. The increase in general and administrative expenses in 2019 primarily reflects increased professional fee expenses related to our minimal operations.


Total other expense increased to $16,172 for 2019 compared to $15,173 for 2018 as a result of accrued interest on outstanding notes payable.


We recorded a net loss of $29,727 for 2019 compared to a net loss of $28,588 for 2018. Management expects net losses to continue until we acquire or merge with a business opportunity.




Commitments and Obligations


At December 31, 2019, we had outstanding notes payable totaling $212,321, with accrued interest of $94,741. All of the notes payable are non-collateralized, carry interest at 8% and are due on demand. During 2019 we borrowed $7,400 from third parties and recorded accrued interest for notes payable of $16,172 for 2019.


At December 31, 2019, we had outstanding accounts payable of $7,200 for consulting services and professional services provided by, or paid for by a third party. On December 31, 2019 we converted $6,600 accounts payable owed to this third party for 2018 to notes payable resulting in total accounts payable of $7,700.


Two lenders represent in excess of 95% of the Company’s accounts payable and notes payable at December 31, 2019.


Off-Balance Sheet Arrangements


We have not entered into any off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources and would be considered material to investors.


Emerging Growth Company


We qualify as an emerging growth company as that term is used in the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”). A company qualifies as an emerging growth company if it has total annual gross revenues of less than $1.07 billion during its most recently completed fiscal year and, as of December 8, 2011, had not sold common equity securities under a registration statement. Under the JOBS Act we are permitted to, and intend to, rely on exemptions from certain disclosure requirements


In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.


Tax Cuts and Jobs Act


The Company has evaluated Staff Accounting Bulletin No. 118 regarding the impact of the decreased tax rates of the Tax Cuts & Jobs Act. See “Note 3 – Income Taxes” in the notes to our financial statements for schedules that describe the new rates adjusted in the period enacted.










Financial Statements


December 31, 2019 and 2018





Report of Independent Registered Public Accounting Firm  12 
Balance Sheets  13 
Statements of Operations  14 
Statements of Stockholders’ Deficit  15 
Statements of Cash Flows  16 
Notes to the Financial Statements  17 







To the Board of Directors and Stockholders

Skinovation Pharmaceutical Incorporated

Salt Lake City, Utah


Opinion on the Financial Statements

We have audited the accompanying balance sheets of Skinovation Pharmaceutical Incorporated (the Company) as of December 31, 2019 and 2018, and the related statements of operations, stockholders’ deficit, and cash flows for the years then ended, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2019 and 2018, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.

Consideration of the Company’s Ability to Continue as a Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  The Company has suffered recurring losses and has no operations which raise substantial doubt about its ability to continue as a going concern.  Management’s plans in regard to these matters are described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Basis for Opinion

These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, 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.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.


/s/ Pinnacle Accountancy Group of Utah


We have served as the Company’s auditor since 2017.


Pinnacle Accountancy Group of Utah

Farmington, Utah

July 6, 2020




Skinovation Pharmaceutical Incorporated

Balance Sheets



DEC 31,



DEC 31,


Current Assets          
Cash  $77   $132 
Total Current Assets   77    132 
Total Assets  $77   $132 
Current Liabilities          
Accounts payable  $7,200   $7,700 
Notes payable   212,321    198,321 
Accrued interest   94,741    78,569 
Total Current Liabilities   314,262    284,590 
Total Liabilities   314,262    284,590 
Stockholders' Deficit          
Preferred stock, $.001 par value; 25,000,000 shares
authorized; 0 shares issued and outstanding
   —      —   
Common stock, $.001 par value; 50,000,000 shares
authorized; 708,000 shares issued and outstanding
   708    708 
Additional paid in capital   25,148    25,148 
Accumulated deficit   (340,041)   (310,314)
Total Stockholders' Deficit   (314,185)   (284,458)
Total Liabilities and Stockholders' Deficit  $77   $132 



The accompanying notes are an integral part of these financial statements




Skinovation Pharmaceutical Incorporated

Statements of Operations


DEC 31, 2019
DEC 31, 2018
REVENUES  $—     $—   
General and administrative   13,555    13,415 
TOTAL OPERATING EXPENSES   13,555    13,415 
INCOME (LOSS) BEFORE OTHER EXPENSE   (13,555)   (13,415)
Interest expense   (16,172)   (15,173)
Total other income (expense)   (16,172)   (15,173)
INCOME (LOSS) BEFORE INCOME TAXES   (29,727)   (28,588)
INCOME TAXES   —      —   
NET INCOME (LOSS)  $(29,727)  $(28,588)
Basic and diluted net income (loss) per share  $(0.04)  $(0.04)
Weighted average shares outstanding   708,000    708,000 



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




Skinovation Pharmaceutical Incorporated

Statements of Stockholders’ Deficit

For the Years ended December 31, 2018 and 2019


         Additional     Total
   Common  Stock  Paid-in  Accumulated  Stockholders’
   Shares  Amount  Capital  Deficit  Deficit
Balance – December 31, 2017   708,000    708   $25,148   $(281,726)  $(255,870)
Net income (loss) for the year ended December 31, 2018   —      —      —      (28,588)   (28,588)
Balance – December 31, 2018   708,000    708    25,148    (310,314)   (284,458)
Net income (loss) for the year ended December 31, 2019   —      —      —      (29,727)   (29,727)
Balance – December 31, 2019   708,000    708   $25,148   $(340,041)  $(314,185)



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




Skinovation Pharmaceutical Incorporated

Statements of Cash Flows


DEC 31, 2019
DEC 31, 2018
Cash Flows from Operating Activities          
Net income (loss)  $(29,727)  $(28,588)
Adjustments to reconcile net loss to cash used by
operating activities:
Changes in assets and liabilities:          
Increase in accounts payable   6,100    7,700 
Increase in accrued interest   16,172    15,173 
Net cash used by operating activities   (7,455)   (5,715)
Cash Flows from Investing Activities          
Net cash used by investing activities   —      —   
Cash Flows from Financing Activities          
Proceeds from notes payable   7,400    5,300 
Net cash provided by financing activities   7,400    5,300 
Increase (decrease) in cash   (55)   (415)
Cash and cash equivalents at beginning of year   132    547 
Cash and cash equivalents at end of year  $77   $132 
Supplemental Cash Flow Information:          
Cash paid for interest  $—     $—   
Cash paid for income taxes  $—     $—   
Non-Cash Investing and Financing Activities  $—     $—   
Conversion of accounts payable to notes payable  $6,600   $6,600 



The accompanying notes are an integral part of these financial statements




Skinovation Pharmaceutical Incorporated

Notes to the Financial Statements

December 31, 2019 and 2018




a.Organization & Summary of Significant Accounting Policies


The Company was incorporated under the laws of the state of Nevada on January 15, 1988 as Data Financial Corporation. The Company changed its name to Skinovation Pharmaceutical Incorporated on August 5, 1992. On November 23, 2016 the Company changed its domicile from Nevada to Wyoming


b.Cash and Cash Equivalents


The Company considers all highly liquid investments with maturities of three months or less to be cash equivalents.


c.Use of estimates


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


d.Earnings Per Share


The computation of earnings per share of common stock is based on the weighted average number of shares outstanding at the date of the financial statements.


   For the Years Ended
December 31,
   2019  2018
Net Income (Loss) (numerator)  $(29,727)  $(28,588)
Weighted Average Number of Shares Outstanding (denominator)   708,000    708,000 
Basic Loss per Common Share  $(0.04)  $(0.04)


For the years ended December 31, 2019 and 2018, the Company had no potentially dilutive common stock equivalents issued.


e.Concentrations of Risk


Two lenders represent in excess of 95% of the Company’s accounts payable and notes payable for the fiscal years ended December 31, 2019 and December 31, 2018.





The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. The Company has limited assets, has a negative working capital of $314,185 and has incurred losses of $340,041 since inception. Its activities have been limited for the past several years and it is dependent upon financing to continue operations. These factors raise substantial doubt about the ability of the Company to continue as a going concern. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. It is management’s plan to acquire or merge with other operating companies.





The Financial Accounting Standards Board (FASB) has issued FASB ASC 740-10.  FASB ASC 740-10 clarifies the accounting for uncertainty in income taxes recognized in an enterprise's financial statements. This standard requires a company to determine whether it is more likely than not that a tax position will be sustained upon examination based upon the technical merits of the position. If the more-likely-than-not threshold is met, a company must measure the tax position to determine the amount to recognize in the financial statements.  As a result of the implementation of this standard, the Company performed a review of its material tax positions in accordance with recognition and measurement standards established by FASB ASC 740-10.  


Deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss and tax credit carry-forwards and deferred tax liabilities are recognized for taxable temporary differences.  Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.


The Company currently has no issues creating timing differences that would mandate deferred tax expense. Net operating losses would create possible tax assets in future years. Due to the uncertainty of the utilization of net operating loss carry forwards, a valuation allowance has been made to the extent of any tax benefit that net operating losses may generate.  A provision for income taxes has not been made due to net operating loss carry-forwards of $340,041 and $310,314 as of December 31, 2019 and December 31, 2018, respectively, which may be offset against future taxable income. No tax benefit has been reported in the financial statements.


The Company has evaluated Staff Accounting Bulletin No. 118 regarding the impact of the decreased tax rates of the Tax Cuts & Jobs Act. The schedules below reflect the Federal Tax provision, deferred tax asset and valuation allowance using the new rates adjusted in the period of enactment.


Deferred tax asset and the valuation account are as follows at December 31, 2019 and 2018:


   For the Years Ended
December 31,
   2019  2018
Net operating loss carryforward (at 21%)  $71,409   $65,166 
Valuation allowance    (71,409)   (65,166)
Deferred tax asset  $—     $—   


The change in the valuation allowance was $6,243 during the year ended December 31, 2019.


A reconciliation of amounts obtained by applying the Federal tax rate of 21% to pre-tax income to income tax benefit is as follows:


   For the Years Ended
December 31,
   2019  2018
Federal tax benefit (at 21%)  $6,243   $6,004 
Change in valuation allowance   (6,243)   (6,004)
Effect of rate change on Deferred Tax Asset   —      —   
   $—     $—   


The Company did not have any tax positions for which it is reasonably possible that the total amount of unrecognized tax benefits will significantly increase or decrease within the next 12 months.


The Company includes interest and penalties arising from the underpayment of income taxes in the statements of operations in the provision for income taxes.  As of December 31, 2019 and 2018 the Company had no accrued interest or penalties related to uncertain tax positions.


The tax years that remain subject to examination by major taxing jurisdictions are those for the years ended December 31, 2019, 2018 and 2017.






At December 31, 2019 and 2018, the Company had accounts payable of $7,200 and $7,700, respectively, and notes payable of $212,321 and $198,321, respectively, for services as well as cash advances received from unrelated parties. The notes payable bear interest at 8% and are due on demand. The accounts payable for services each year are converted to loans at the end of the following year. Accounts payable of $6,600 and $6,600 were converted to notes payable at December 31, 2019 and 2018, respectively.


Accrued interest was $94,741 and $78,569 at December 31, 2019 and 2018, respectively.


A third party invoiced the Company for consulting, administrative, and professional services and out-of-pocket costs provided to or paid on behalf of the Company totaling $6,000 in 2019 and $6,600 in 2018.




The Company did not issue any common stock, options, warrants or any other stock based awards in 2019 and 2018.



The Company has evaluated Recent Accounting Pronouncements and has determined that all such pronouncements either do not apply or their impact is insignificant to the financial statements.




If required by authoritative literature, the Company would account for certain assets and liabilities at fair value. The cash, accounts payable, notes payable and accrued interest have fair values that approximate their carrying values due to the short term nature of these instruments.




The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and has determined that there are no such events that would have a material impact on the financial statements.






We have not had a change in or disagreement with our independent registered public accounting firm on accounting financial disclosure during the past two fiscal years.





Disclosure Controls and Procedures


We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our filings under the Exchange Act is recorded, processed, summarized and reported within the periods specified in the rules and forms of the SEC. This information is accumulated to allow timely decisions regarding required disclosure. Our President, who serves as our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report and he determined that our disclosure controls and procedures were ineffective due to a control deficiency. During the period we did not have additional personnel to allow segregation of duties to ensure the completeness or accuracy of our information. Due to the size and operations of the Company we are unable to remediate this deficiency until we acquire or merge with another company.


Management’s Annual Report on Internal Control over Financial Reporting


Management is responsible to establish and maintain adequate internal control over financial reporting. Our principal executive officer is responsible to design or supervise a process that provides reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The policies and procedures include:


  • maintain records in reasonable detail to accurately and fairly reflect the transactions and dispositions of assets,
  • provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and directors, and
  • provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material effect on our financial statements.

For the year ended December 31, 2019, management has relied on the Committee of Sponsoring Organizations of the Treadway Commission (COSO - 2013), “Internal Control - Integrated Framework,” to evaluate the effectiveness of our internal control over financial reporting. Based upon that framework, management has determined that our internal control over financial reporting is ineffective due to the lack of additional personnel to allow segregation of duties to ensure the completeness or accuracy of our information.


Our management determined that there were no changes made in our internal controls over financial reporting during the fourth quarter of 2019 that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting.













Directors and Executive Officers


Our directors and executive officer and their respective ages, positions and biographical information are presented below. Our bylaws require three directors who serve for terms of one year or until they are replaced by a qualified director. We currently have one vacancy on our board of directors. Our executive officers are chosen by our board of directors and serve at its discretion. There are no existing family relationships between or among any of our executive officers or directors.


Name  Age  Position Held  Director Term
Hugo Rodier   67   Director and President  May 2009 until our next annual meeting.
M. Jeanne Ball   62   Director and Secretary/Treasurer  March 1998 until our next annual meeting.


Hugo Rodier From 2000 to the present Mr. Rodier has been a Medical Director with Pioneer Comprehensive Clinic located in Draper, Utah. In addition, since 2002 he has been an adjunct professor of Family and Preventive Medicine and a member of the Utah School of Medicine Admissions Committee at the University of Utah. He received his medical degree from the University of Utah, School of Medicine.


M. Jeanne Ball – Ms. Ball works as an independent contractor performing duties of a legal assistant for attorneys. She has experience serving in management positions for public reporting companies which may prove significant in our search for a business opportunity and may be critical to our operations moving forward.


During the past ten years, none of our executive officers have been involved in any legal proceedings that are material to an evaluation of their ability or integrity; namely: (1) filed a petition under federal bankruptcy laws or any state insolvency laws, nor had a receiver, fiscal agent or similar officer appointed by a court for the business or property of such person, or any partnership in which he/she was a general partner at or within two years before the time of such filing, or any corporation or business association of which he/she was an executive officer at or within two years before the time of such filing; (2) been convicted in a criminal proceeding or named subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); (3) been the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him or her from or otherwise limiting his/her involvement in any type of business, securities or banking activities; or (4) been found by a court of competent jurisdiction in a civil action, by the SEC or the Commodity Futures Trading Commission to have violated any federal or state securities law, and the judgment in such civil action or finding by the SEC has not been subsequently reversed, suspended, or vacated.


Code of Ethics


Since we have only two persons serving as executive officers and directors, and because we have minimal operations, we have not adopted a code of ethics for our principal executive and financial officers. Our board of directors will revisit this issue in the future to determine if adoption of a code of ethics is appropriate. In the meantime, our management intends to promote honest and ethical conduct, full and fair disclosure in our reports to the SEC, and comply with applicable governmental laws and regulations.


Corporate Governance


We are a smaller reporting company with minimal operations and only two directors and executive officers. As a result, we do not have a standing nominating committee for directors, nor do we have an audit committee with an audit committee financial expert serving on that committee. Our entire board of directors acts as our nominating and audit committee.






Executive Officer Compensation


None of our named executive officers received any cash or non-cash compensation from us during the past two fiscal years, and none had outstanding equity awards at year end. We have not entered into employment contracts with our executive officers and their compensation, if any, will be determined at the discretion of our board of directors.


We do not offer retirement benefit plans to our executive officers, nor have we entered into any contract, agreement, plan or arrangement, whether written or unwritten, that provides for payments to a named executive officer at, or in connection with, the resignation, retirement or other termination of a named executive officer, or a change in control of the company or a change in the named executive officer’s responsibilities following a change in control.


Compensation of Directors


We do not have any standard arrangement for compensation of our directors for any services provided as director, including services for committee participation or for special assignments.





Securities Under Equity Compensation Plans




Beneficial Ownership


The following tables set forth the beneficial ownership of our outstanding common stock of our management and of each person or group known by us to own beneficially more than 5% of our voting stock. We have not issued any shares of preferred stock. Beneficial ownership is determined in accordance with the rules of the SEC and generally includes voting or investment power with respect to securities. Except as indicated by footnote, the persons named in the table below have sole voting power and investment power with respect to all shares of common stock shown as beneficially owned by them. The percentage of beneficial ownership is based on 708,000 shares of common stock outstanding as of July 10, 2020.




Name and address of beneficial owner

Amount and nature

of beneficial ownership


of class

Donald R. Mayer

6 East North Lane

Sandy, Utah 84092





National Financial Services Corporation

200 Liberty Street

One World Financial Center

New York, New York 10281

50,000 7.1

Arthur Candland

5295 S. 300 W., Suite 499

Murray, Utah 84107

44,000 6.2




Name of beneficial owner

Amount and nature

of beneficial ownership


of class

  M. Jeanne Ball 10,000 1.4
  Directors and officers as a group 10,000 1.4







Transactions with Related Parties


During the past two fiscal years through the date of this report we have not engaged in, or propose to engage in, any transactions involving our executive officers, directors, 5% or more stockholders or immediate family members of such persons.


Director Independence


None of our directors are independent directors as defined by NASDAQ Stock Market Rule 5605(a)(2). This rule defines persons as “independent” who are neither officers nor employees of the company and have no relationships that, in the opinion of the board, would interfere with the exercise of independent judgment in carrying out their responsibilities as directors.





Auditor Fees


The following table presents the aggregate fees billed by our independent public registered accounting firm, Pinnacle Accountancy Group of Utah, in connection with the audit of our financial statements and other professional services for each of the last two fiscal years.


   Pinnacle Accountancy Group of Utah  Pinnacle Accountancy Group of Utah
   2019  2018
Audit fees  $6,200   $5,400 
Audit-related fees   0    0 
Tax fees   0    0 
All other fees  $0   $0 


Audit fees represent fees for professional services rendered by our principal accountants for the audit of our annual financial statements and review of the financial statements included in our Forms 10-Q or services that are normally provided by our principal accountants in connection with statutory and regulatory filings or engagements.


Audit-related fees represent professional services rendered for assurance and related services by the accounting firm that are reasonably related to the performance of the audit or review of our financial statements that are not reported under audit fees.


Tax fees represent professional services rendered by the accounting firm for tax compliance, tax advice, and tax planning.


All other fees represent fees billed for products and services provided by the accounting firm, other than the services reported for the other three categories.


Pre-approval Policies


We do not have an audit committee currently serving and as a result our board of directors performs the duties of an audit committee. Our board of directors will evaluate and approve in advance the scope and cost of the engagement of an auditor. All services rendered by our principal accountant are performed pursuant to a written engagement letter between us and the principal accountant. We do not rely on pre-approval policies and procedures.








(a)(1) Financial Statements


The audited financial statements of Skinovation Pharmaceutical Incorporated are included in this report under Item 8 on pages 11 through 19.


(a)(2) Financial Statement Schedules


All financial statement schedules are included in the footnotes to the financial statements or are inapplicable or not required.


(a)(3) Exhibits


The following documents have been filed as part of this report.


  Exhibit No.    Description
 3(i).1  Articles of Incorporation (Incorporated by reference to exhibit 3.1 of the Form 10-KSB, filed March 29, 2002)
 3(i).2  Wyoming Articles of Domestication, filed November 23, 2016 (Incorporated by reference to exhibit 3(i).2 of Form 10-K, filed March 20, 2017)
 3(ii)  Bylaws of Skinovation (Incorporated by reference to exhibit 3(ii) of Form 10-K, filed March 20, 2017)
 4.6  Description of Securities
 31.1  Principal Executive Officer Certification
 31.2  Principal Financial Officer Certification
 32.1  Section 1350 Certification
 101.INS  XBRL Instance Document
 101.SCH  XBRL Taxonomy Extension Schema Document
 101.CAL  XBRL Taxonomy Calculation Linkbase Document
 101.DEF  XBRL Taxonomy Extension Definition Linkbase Document
 101.LAB  XBRL Taxonomy Label Linkbase Document
 101.PRE  XBRL Taxonomy Presentation Linkbase Document






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






By:  /s/ Hugo Rodier            

Hugo Rodier, President


Date: July 10, 2020



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




By:     /s/Hugo Rodier            

Hugo Rodier

Director and President

Principal Executive Officer

Principal Financial Officer


Date: July 10, 2020




By:  /s/ M. Jeanne Ball            

M. Jeanne Ball

Director and Secretary/Treasurer


Date: July 10, 2020