Form 10-Q BorrowMoney.com, Inc. For: May 31

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

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

 

For the quarterly period ended May 31, 2021

 

or

 

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

 

For the transition period from to

 

Commission file number 000-56175

 

BORROWMONEY.COM, INC.

(Exact name of registrant as specified in its charter)

 

Florida		65-0981503
(State or other jurisdiction of		(IRS Employer
incorporation or organization)		Identification Number)

 

512 Bayshore Drive

Ft. Lauderdale, Florida 33304

(Address of principal executive offices including zip code)

 

1-212-265-2525

(Registrant’s telephone number, including area code)

 

Securities registered pursuant to Section 12(b) of the Act: None.

 

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 [  ] No [ X]

 

Indicate by check mark whether the registrant has submitted electronically 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 such files). Yes [X] No [  ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See 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 [  ]	Accelerated filer [  ]	Emerging growth company [X]
Non-accelerated filer [  ]	Smaller reporting company [X]

 

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 check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [  ] No [X]

 

 

 

BORROWMONEY.COM, INC.

Table of Contents

 

Part I. Financial Information			3
	Item 1.	Financial Statements (Unaudited)	3
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Result of Operations	13
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	17
	Item 4.	Controls and Procedures	17
Part II. Other Information			18
	Item 1.	Legal Proceedings	18
	Item 1A.	Risk Factors	18
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	18
	Item 3.	Default Upon Senior Securities	18
	Item 4.	Mine Safety Disclosures	18
	Item 5.	Other Information	18
	Item 6.	Exhibits	18

 

 

PART I – FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENT

 

BorrowMoney.com, Inc.

Balance Sheets

 

		Unaudited May 31, 2021				August 31, 2020
Assets
Cash		$	206			$	7,792
Total current assets			206				7,792
Total Assets		$	206			$	7,792
Liabilities and Stockholder’s Deficit
Current liabilities:
Accounts payable and accrued expenses		$	18,459			$	24,449
Accrued interest			114,533				81,797
Line of credit			10,996				-
Note payable			68,671				-
Advances-related party, current portion			25,977				-
Notes payable-related party, current portion			481,335				491,747
Total current liabilities			719,971				597,993
Total liabilities			719,971				597,993
Commitments and Contingencies
Stockholders’ deficit:
Preferred stock, $0.001 par value; 100,000,000 shares authorized. No shares issued and outstanding on May 31, 2021 and August 31, 2020			-				-
Common stock, $0.001 par value; 500,000,000 shares authorized. 109,175,000 and 109,165,000 shares issued and outstanding on May 31, 2021 and August 31, 2020, respectively.			109,175				109,165
Stock subscription receivable			(4,000	)			(4,000	)
Additional paid-in capital			200,775				190,785
Accumulated deficit			(1,025,715	)			(886,151	)
Total stockholders’ deficit			(719,765	)			(590,201	)
Total Liabilities and Stockholders’ Deficit		$	206			$	7,792

 

See notes to unaudited interim financial statements

 

 

BorrowMoney.com, Inc.

Statements of Operations

(Unaudited)

 

		For the Three Months Ended								For the Nine Months Ended
		May 31, 2021				May 31, 2020				May 31, 2021				May 31, 2020
Revenue		$	-			$	5,850			$	3,000			$	20,472
Operating expenses:
General and administrative			81,712				20,152				117,292				97,989
Total operating expenses			81,712				20,152				117,292				97,989
Loss from operations			(81,712	)			(14,302	)			(114,292	)			(77,517	)
Other expense:
Interest expense			(9,943	)			(4,634	)			(25,272	)			(13,367	)
Total other expenses			(9,943	)			(4,634	)			(25,272	)			(13,367	)
Net loss before income taxes			(91,655	)			(18,936	)			(139,564	)			(90,884	)
Income taxes			-				-				-				-
Net loss		$	(91,655	)		$	(18,936	)		$	(139,564	)		$	(90,884	)
Basic and diluted per common share amounts:
Basic and diluted net loss		$	(0.00	)		$	(0.00	)		$	(0.00	)		$	(0.00	)
Weighted average common shares outstanding (basic and diluted)			109,175,000				109,165,000				109,173,059				109,164,455

 

See notes to unaudited interim financial statements

 

 

BorrowMoney.com, Inc.

Statements of Changes in Stockholders’ Deficit

For the Periods Ended May 31, 2021, and 2020

(Unaudited)

 

		Common Stock								Additional												Total
		Shares				Common Stock				Paid In Capital				Subscription Receivable				Accumulated Deficit				Stockholders’ Deficit
Balance at August 31, 2020			109,165,000			$	109,165			$	190,785			$	(4,000	)		$	(886,151	)		$	(590,201	)
Shares issued for cash			10,000				10				9,990				-				-				10,000
Net loss			-				-				-				-				(36,330	)			(36,330	)
Balance at November 30, 2020			109,175,000				109,175				200,775				(4,000	)			(922,481	)			(616,531	)
Net loss			-				-				-				-				(11,579	)			(11,579	)
Balance at February 28, 2021			109,175,000				109,175				200,775				(4,000	)			(934,060	)			(628,110	)
Net loss			-				-				-				-				(91,655	)			(91,655	)
Balance at May 31, 2021			109,175,000			$	109,175			$	200,775			$	(4,000	)		$	(1,025,715	)		$	(719,765	)
Balance at August 31, 2019			109,115,000			$	109,115			$	180,835			$	-			$	(742,662	)		$	(452,712	)
Shares issued for cash			50,000				50				9,950				(9,000	)			-				1,000
Net loss			-								-								(44,221	)			(44,221	)
Balance at November 30, 2019			109,165,000				109,165				190,785				(9,000	)			(786,883	)			(495,933	)
Stock subscription paid			-				-				-				5,000				-				5,000
Net loss			-				-				-				-				(27,727	)			(27,727	)
Balance at February 29, 2020			109,165,000				109,165				190,785				(4,000	)			(814,610	)			(518,660	)
Net loss			-				-				-				-				(18,936	)			(18,936	)
Balance at May 31, 2020			109,165,000			$	109,165			$	190,785			$	(4,000	)		$	(833,546	)		$	(537,596	)

 

See notes to unaudited interim financial statements

 

 

BorrowMoney.com, Inc.

Statements of Cash Flows

(Unaudited)

 

		For the nine months ended				For the nine months ended
		May 31, 2021				May 31, 2020
Cash flows from operating activities:
Net Loss		$	(139,564	)		$	(90,884	)
Changes in net assets and liabilities
Prepaid expenses							(5,000	)
Accounts payable and accrued expenses			(5,990	)			20,568
Accrued interest			32,736				13,367
Cash used in operating activities:			(112,818	)			(61,949	)
Cash flows from financing activities:
Proceeds from line of credit			10,996				-
Proceeds from sale of common stock			10,000				6,000
Proceeds from note payable			68,671				-
Advances-related party			25,977				70,900
Payments on notes payable related party			(10,412	)			(17,500	))
Cash provided by financing activities			105,232				59,400
Change in cash			(7,586	)			(2,549	)
Cash- beginning of period			7,792				7,647
Cash-end of period		$	206			$	5,098
Cash paid for interest		$	-			$	-
Cash paid for taxes		$	-			$	-
Non-cash financing and investing activities:
Expenses paid directly by officers on behalf of company		$	18,430			$	4,300

 

See notes to unaudited interim financial statements

 

 

BORROWMONEY.COM, INC.

Notes to the Financial Statements

May 31, 2021

(Unaudited)

 

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

 

On April 28, 2015, Horizon Group Holding, Inc., a Florida corporation, entered into a Share Exchange Agreement (the “Agreement”) with BorrowMoney.com Inc., a New York Corporation (“BMNY”), pursuant to which BMNY would become a wholly owned subsidiary of Horizon Group Holding, Inc. The share exchange was accounted for as a reverse acquisition with BMNY being treated as the acquiring company for accounting purposes. Pursuant to the agreement, the Horizon Group Holding, Inc. changed its name to BorrowMoney.com, Inc. (BMFL) (the “Company”).

 

In connection with the Agreement, the Company acquired 100% of the issued shares of BMNY, Inc., in a share exchange where 10,000 shares of the Company were issued to the shareholders of BMNY in exchange for each share of BMNY for a total issuance of 20,000,000 common shares.

 

Borrowmoney.com, Inc. (“BMFL”) provides an internet-based platform that can match mortgage and loan providers with prospective borrowers.

 

NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Basis of presentation - The accompanying financial statements have been prepared in accordance with United States generally accepted accounting principles (“U.S. GAAP”).

 

The interim unaudited financial statements as of May 31, 2021, and for the three and nine months then ended, have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information on the same basis as the annual financial statements and in the opinion of management, reflect all adjustments, which include only normal recurring adjustments, necessary to present fairly the Company’s financial position, results of operations and cash flows for the periods shown. The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period. They do not include all of the information and footnotes required by GAAP for complete financial statements. Therefore, these financial statements should be read in conjunction with the Company’s financial statements and notes filed with the SEC for the year ended August 31, 2020.

 

Going Concern - The accompanying unaudited interim financial statements have been prepared assuming the Company will continue as a going concern, which contemplates, among other things, the realization of assets and satisfaction of liabilities in the normal course of business. The Company has earned limited revenue since inception and lacks any significant operational history. These matters, among others, raise substantial doubt about our ability to continue as a going concern.

 

While the Company is attempting to generate sufficient revenues, its cash position may not be significant enough to support daily operations. Management intends to raise additional funds by way of a public or private offering. Management believes that the actions presently being taken to further implement its business plan and generate revenues provide the opportunity for the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate revenues and in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon its ability to further implement its business plan and generate sufficient revenues.

 

 

Accounting Estimates - The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect certain reported amounts and disclosures. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent liabilities, and the reported amounts of revenues and expenses. Accordingly, actual results could differ from those estimates.

 

Risks and Uncertainties - The Company intends to operate in a highly competitive industry that is subject to intense competition, government regulation and rapid technological change. The Company’s operations are subject to significant risk and uncertainties including financial, operational, technological, regulatory and other risks associated with an emerging business, including the potential risk of business failure.

 

Cash and Cash Equivalents - For financial statement presentation purposes, the Company considers those short-term, highly liquid investments with original maturities of three months or less to be cash or cash equivalents. There were no cash equivalents on May 31, 2021 and May 31, 2020.

 

Concentrations of Credit Risk - Accounts which potentially subject the Company to concentrations of credit risk consist of cash, cash and cash equivalents. The Company considers all highly liquid instruments with an original purchased maturity of three months or less to be cash equivalents. The Company maintains its cash and equivalents at insured financial institutions. The balances of which, at times may exceed the FDIC insured limits. Management believes the risk of loss is minimal.

 

Fair Value of Financial Instruments - The Company’s financial instruments consist of cash and notes payable. Management estimates that the fair value of the note payable does not differ materially from the aggregate carrying value of these financial instruments recorded (at cost) in the accompanying balance sheets. We have financial assets and liabilities, not required to be measured at fair value on a recurring basis, which primarily consist of cash, payables, and debt. The carrying value of cash and payables, approximate their fair values due to their short-term nature. Considerable judgment is required in interpreting market data to develop the estimates of fair value and, accordingly, the estimates are not necessarily indicative of the amounts that the Company could realize in a current market exchange.

 

Fair Value Measurements - The Company measures fair value under a framework that utilizes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements).

 

The three levels of inputs which prioritize the inputs used in measuring fair value are:

 

Level 1: Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access.

 

Level 2: Inputs to the valuation methodology include:

 

	●	Quoted prices for similar assets or liabilities in active markets;
	●	Quoted prices for identical or similar assets or liabilities in inactive markets;
	●	Inputs other than quoted prices that are observable for the asset or liability; and
	●	Inputs that are derived principally from or corroborated by observable market data by correlation or other means.

 

If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability.

 

Level 3: Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

 

The assets or liabilities fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs.

 

 

When the Company changes its valuation inputs for measuring financial assets and liabilities at fair value, either due to changes in current market conditions or other factors, it may need to transfer those assets or liabilities to another level in the hierarchy based on the new inputs used. The Company recognizes these transfers at the end of the reporting period that the transfers occur. For the fiscal year ended August 31, 2020, and the interim period ended May 31, 2021, there were no significant transfers of financial assets or financial liabilities between the hierarchy levels.

 

Revenue Recognition - Revenue Recognition Standard, ASC 606 is used by the Company to recognize revenue. ASC 606 standards were jointly issued by the Financial Accounting Standards Board (FASB) and the International Accounting Standards Board (IASB). The five conditions of ASC 606 applied to revenue are: 1. Identify the contract with the customer; 2. Identify the performance obligations in the contract; 3. Determine the transaction price; 4. Allocate the transaction price to separate performance obligations; and 5. Recognize revenue as each performance obligation is satisfied.

 

The Company derives its revenues primarily from the sale of leads and commissions on loans that are funded. Revenues are recognized when the leads are transferred to its customers and/or when a commission is paid on the funding of a loan. The Company also derives revenue from advertisement placement on the company’s website.

 

Stock-Based Awards - The Company measures the cost of employee services received in exchange for an award of equity instruments, including stock options, based on the grant- date fair value of the award and to recognize it as compensation expense over the period the employee is required to provide service in exchange for the award, usually the vesting period. The Company estimates the fair value of share-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as expense over the requisite service periods in the Company’s statement of operations. The forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. No awards were granted for the three and nine months ended May 31, 2021.

 

Income Taxes - The Company accounts for deferred income taxes on the asset and liability method whereby deferred tax assets are recognized for deductible temporary differences 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 bases. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion of all of the deferred tax assets will not be realized.

 

When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits along with any associated interest and penalties that would be payable to the taxing authorities upon examination. As of May 31, 2021, the Company had no unrecognized tax benefits, and the Company had no positions which, in the opinion of management, would be reversed if challenged by a taxing authority.

 

The Company’s evaluation of tax positions was performed for those tax years which remain open to audit. The Company may, from time to time, be assessed interest or penalties by the taxing authorities, although any such assessments historically have been minimal and immaterial to the Company’s financial results. In the event the Company is assessed interest and/or penalties, such amounts will be classified as income tax expense in the financial statements.

 

Loss Per Common Share - The basic earnings (loss) per common share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding. Diluted loss per share is computed similarly to basic loss per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. As of May 31, 2021, there were 50,000 warrants and no potentially dilutive securities outstanding.

 

 

Recently Issued Accounting Pronouncements – In February 2016, the Financial Accounting Standard Board (FASB) Adopted Auditing Standards Update No. 2016-02, “Leases”. Under this new guidance, leases (including lessees under leases classified as finance lease, which are to be classified based on criteria similar to that applicable to capital leases under current guidance, and leases classified as operating leases) will recognize a right-to-use asset and a lease liability on the balance sheet, initially measured as the present value of lease payments under the lease. Under current guidance, operating leases are not recognized on the balance sheet. However, the new guidance permits companies to make an accounting policy election not to apply the recognition provisions of the new guidance to short term (leases with a lease term of 12 months or less that do not include an option to purchase the underlying asset that the lessee is reasonably certain to exercise). If this election is made, lease payments under short term leases will be recognized on a straight-line basis over the lease term. The Company has adopted the new guidance effective September 1, 2019, and made the policy election not to apply the recognition provisions to short term leases: however, there is no impact to the financial statements.

 

NOTE 3 – DEBT

 

The Company has a line of credit agreement with Harthorne Capital of $75,000. There were $10,996 borrowings against the line on May 31, 2021. The line bears interest at 8% per annum. The principal and interest are due and payable on or before November 25, 2021. The company also received $68,671 from Alejandro Thermiotis advanced under a note payable.

 

NOTE 4 - RELATED PARTY TRANSACTIONS

 

The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions. Pursuant to Section 850-10-20 the related parties include (a) affiliates of the Company (“Affiliate” means, with respect to any specified Person, any other Person that, directly or indirectly through one or more intermediaries, controls, is controlled by or is under common control with such Person, as such terms are used in and construed under Rule 405 under the Securities Act); (b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of Section 825–10–15, to be accounted for by the equity method by the investing entity; (c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; (d) principal owners of the Company; (e) management of the Company; (f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and (g) other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests. The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: (a) the nature of the relationship(s) involved; (b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; (c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and (d) amounts due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.

 

 

Related party debt consists of the following as of May 31, 2021, and August 31, 2020, respectively:

 

		Nine Months Ended				Year Ended
		May 31, 2021				August 31, 2020
Note payable to a related party, unsecured, bearing interest at 8% Balance at beginning of period		$	491,747			$	407,559
Payment on related party loans			(14,449	)
Advances received			30,014				84,188
Balance at end of period			507,312				491,747
Less current portion			507,312				(491,747	)
Due after one year		$	-			$	-

 

In connection with the note, the Company has an accrued interest obligation as of May31, 2021 and August 31, 2020, of $114,533 and $81,797, respectively. The note is due on September 1, 2021 and accrues interest at 8%.

 

The Company utilizes approximately 1,200 square feet of office space Plantation FL. There is an annual lease agreement with an option for a 5-year renewal. In addition, the company utilizes a small office space in Fort Lauderdale, Florida which is also provided without charge to the Company by the President.

 

As of May 31, 2021, the Company owes officers of the Company $25,977 related to advances made to the company.

 

As of May 31, 2021, the company also paid $27,000 and in addition, accrued $9,000 in consulting fees to its officers.

 

NOTE 5 - EQUITY

 

Common Stock Warrants - In July 2019, the Company granted common stock warrants to purchase 50,000 shares of common stock to a service provider. The warrants have a 4.4-year term and an exercise price of $0.10 per share. The warrants are fully earned upon issuance and became exercisable on January 1, 2020. During the year ended August 31, 2019, the fair value of $49,950 was recorded as share-based compensation.

 

The Company valued the warrants using the Black-Scholes model with the following key assumptions ranging from: Stock price at the time of transaction, $1.00, Exercise price, $0.10, Volatility 52.5%, Annual risk-free interest rate, 0.5%. On May 31, 2021, there was $45,000, in intrinsic value of outstanding stock warrants.

 

The Company has not declared or paid any dividends or returned any capital to common stock shareholders as of May 31, 2021.

 

Sale of Common Stock - The Company had no sale of shares during the quarter ending May 31, 2021.

 

NOTE 6 – INCOME TAXES

 

The Company has approximately $765,000 in available net operating loss (NOL) carryovers as of May 31, 2021, available to reduce future income taxes. These carryovers expire at various dates through the year 2040.

 

Future utilization of currently generated federal and state NOL and tax credit carry forwards may be subject to a substantial annual limitation due to the ownership change limitations provided by the Internal Revenue Code of 1986, as amended and similar state provisions. The annual limitation may result in the expiration of NOL and tax credit carryforwards before full utilization.

 

 

The Company determines 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, the Company measures the tax position to determine the amount to recognize in the financial statements. The Company performed a review of its material tax positions in accordance with these recognition and measurement standards. The Company has concluded that there are no significant uncertain tax positions requiring disclosure, and there are not material amounts of unrecognized tax benefits.

 

On December 22, 2017, the Tax Act was signed into law making significant changes to the Internal Revenue Code. Changes include, but are not limited to, a corporate tax rate decrease from 35% to 21%, effective for tax years beginning after December 31, 2017, the transition of U.S. international taxation from a worldwide tax system to a territorial system, and a one-time transition tax on the mandatory deemed repatriation of cumulative foreign earnings as of December 31, 2017. We use the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to reverse. As a result of the reduction in the U.S. corporate income tax rate from 35% to 21% under the Tax Act, we revalued our ending net deferred tax assets on August 31, 2018, which were fully offset by a valuation allowance.

 

NOTE 7 – SUBSEQUENT EVENTS

 

The Company has evaluated all subsequent events through July 19, 2021, the date the financial statements were available to be issued. There are no subsequent events to report.

 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

 

The following information specifies certain forward-looking statements of management of the Company. Forward-looking statements are statements that estimate the happening of future events are not based on historical fact. Forward-looking statements may be identified by the use of forward-looking terminology such as, “may,” “shall,” “could,” “expect,” “estimate,” “anticipate,” “predict,” “probable,” “possible,” “should,” “continue,” or similar terms, variations of those terms or the negative of those terms. The forward-looking statements specified in the following information have been complied by our management and considered by management to be reasonable. Our future operating results, however, are impossible to predict and no representation, guaranty, or warranty is to be inferred from those forward-looking statements.

 

The assumptions used for purposes of the forward-looking statements specified in the following information represent estimates of future events and are subject to uncertainty as to possible changes in economic, legislative, industry and other circumstances. As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives require the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated or projected results, and accordingly, no opinion is expressed on the achievability of these forward-looking statements. No assurance can be given that any of the assumptions relating to the forward-looking statements specified in the following information are accurate, and we assume no obligation to update any such forward-looking statements.

 

Overview

 

BorrowMoney.com, Inc. was incorporated in the state of Florida on January 27, 2000, originally known as Sports.com, Inc. Since its inception and up until May 4, 2015, the Company has undergone several name changes, the last being BorrowMoney.com, Inc. On May 4, 2015, the Company became BorrowMoney.com, Inc. Simultaneously, it completed a share exchange with all the shareholders of BorrowMoney.com, Inc., (“BMNY” a New York corporation where 100% of the issued and outstanding shares of the Corporation were exchanged for shares in Borrowmoney.com, Inc a Florida Corporation (“BMFL”). Unless the context otherwise requires, all references to the “Company,” “we,” “our” “Borrowmoney” or “us” and other similar terms collectively means BorrowMoney.com, Inc.

 

 

BMFL operates what we believe to be the leading online loan marketplace for consumers seeking loans and other credit-based offerings. Our online marketplace provides consumers with access to product offerings from our network lenders, including mortgage loans, home equity loans and lines of credit, reverse mortgage loans, auto loans, credit cards, deposit accounts, personal loans, student loans, small business loans and other related offerings. In addition, we offer tools and resources, including free credit scores, that facilitate comparison shopping for these loans, deposits, and other credit-based offerings. We seek to match consumers with multiple lenders, who can provide them with competing quotes for the product they are seeking.

 

We also serve as a valued partner to lenders seeking an efficient, scalable, and flexible source of customer acquisition with directly measurable benefits, by matching the consumer inquiries we generate with these lenders.

 

By expanding our portfolio of loans and other product offerings, we plan to grow and diversify our business and sources of revenue. We intend to capitalize on our expertise in performance marketing, product development and technology, and to leverage the widespread recognition of the BorrowMoney.com brand to affect this strategy.

 

We believe the consumer and small business financial services industry is in the early stages of a fundamental shift to online product offerings, similar to the shift that started in retail and travel many years ago and is now well established. We believe that like retail and travel, as consumers continue to move towards online shopping and transactions for financial services, suppliers will increasingly shift their product offerings and advertising budgets toward the online channel. We believe the strength of our brands and of our lender network place us in a strong position to continue to benefit from this market shift.

 

BorrowMoney.com, Inc.’s main objective is to provide a service for the internet mortgage and loan provider business. BorrowMoney.com, Inc.’s business model envisions providing current, qualified leads to local lending institutions who are currently members of the National Mortgage Listing Service. These leads will represent qualified borrowers in targeted zip code locations where the lender conducts business. Our internet platform offers a portal geared toward providing services to lending institutions who would be our customers. The key function of our platform is to provide qualified leads to local mortgage and lending professionals. The Company monetizes customer inquiries through the use of various advertising methods. The Company sells advertising space on its website and creates revenue through the sale of advertisement space, membership fees and lead packages.

 

We are an “emerging growth company,” as defined in Section 2(a) of the Securities Act, as modified by the Jumpstart Our Business Startups Act of 2012, or the JOBS Act. As such, we are eligible to take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies” including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act of 2002, or the Sarbanes-Oxley Act, reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements, and exemptions from the requirements of holding a non-binding advisory vote on executive compensation and stockholder approval of any golden parachute payments not previously approved. If some investors find our securities less attractive as a result, there may be a less active trading market for our securities and the prices of our securities may be more volatile.

 

We will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the completion of an offering completed on May, 2017, (b) in which we have total annual gross revenue of at least $1.0 billion, or (c) in which we are deemed to be a large accelerated filer, which means the market value of our common stock that is held by non-affiliates exceeds $700 million as of the prior June 30^th, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period.

 

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 intend to take advantage of the benefits of this extended transition period until we are no longer an “emerging growth company.”

 

 

Limited Operating History

 

We have not previously demonstrated that we will be able to expand our business through an increased investment in our product line and/or marketing efforts. We cannot guarantee that the expansion efforts described in this report will be successful. Our business is subject to risks inherent in growing an enterprise, including limited capital resources and possible rejection of our products and/or sales methods.

 

Management Changes

 

Effective April 21, 2021, the Board of Directors of the Company appointed Houston Reid, age 33, to Chief Operating Officer (COO) of the Company until the next regular meeting of shareholders or until his successor is elected and qualified. He shall also continue to serve as a Director of Borrowmoney.com, Inc.

 

An 8-K was filed on April 21, 2021, reflecting these changes.

 

Plan of Operations

 

Our plans for the next 12 months are:

 

We have completed out technology platform and in the process of relaunching the website. We are now entering our operational phase which includes contracting with mortgage and personal loan lenders for geographic areas using ZIP Codes. In addition to expanding our network of lenders over the next 12 months, we intend to continue optimizing and enhancing our Internet-based platform to focus on lead generation and generating additional revenues for our marketplace services. Our mission is to be the premier loan lead generation company. The budget for the next 12 months is estimated to be $500k which is expected to come from friends, family, and officers. A breakdown of the estimated cost for our next 12 months of operation are as follows:

 

			(000’s)
Legal and Professional Fees		$	50.0
Web Hosting Service, and Maintenance			8.0
Subcontracting Services			280.0
Office Expenses			5.0
IT Maintenance and Service			10.0
Domain Names Hosting. Service. and Maintenance			2.5
Website Development and Related Service			15.0
Licenses and Permits			3.5
Marketing and Advertising			50.0
Bank Charges and Cred Card Processing Fees			3.0
Rent			25.0
Dues and Subscriptions			7.5
Computer Expenses			5.0
Transfer and Recording Costs			10.0
Office Space Rent			22.0
Telephone Service			3.5
Total		$	500.0

 

Revenues are expected to be minimal as the volume of lender agreements during this stage of operation is expected to increase at a gradual pace throughout the year. We expect to operate at a loss during our initial growth/operating period. President, Directors, or other executive officers will be compensated with sweat equity options until such time that the company has positive cash flows.

 

Contingent upon the successful completion of our next 12 months of operation, we plan to aggressively expand our operation and business. Our expansion would be accompanied by an increase in the number of employees to obtain lender agreements for ever-expanding geographic areas.

 

 

Channels of Distribution; Marketing Costs

 

BorrowMoney.com markets and offers services directly to customers through its branded website allowing customers to be pre-qualified in a one stop platform and have access to all the major lenders and loan programs. The Company has made, and expects to continue to make, substantial investments in its online technology platform and marketing strategy to build its brand awareness in the marketplace that will drive traffic and generate leads. The need for online mortgages and personal money loan platform is driven not only by the millennium generation that are moving away from traditional brick and mortar banks but also from the new lifestyle changes caused by the Covid-19 pandemic. Borrowmoney.com expects to take advantage of this opportunity to capture a large portion of this “new” marketplace demand and increase its revenue exponentially.

 

Results of Operations

 

Three Months ended May 31, 2021, as compared to May 31, 2020

 

The Company had no revenues for the three-month periods ended May 31, 2021, and $5,850 for May 31, 2020, respectively.

 

Operating expenses for the three-month period ended May 31, 2021, were $81,712 compared to $20,152 for the three-month period ending May 31, 2020.

 

Nine Months ended May 31, 2021, as compared to May 31, 2020

 

The Company had $3,000 in revenues for the nine-month period ended May 31, 2021, and $20,472 for May 31, 2020, respectively. Revenue in the nine-month period ended May 31, 2021, was a commission earned on a loan and in 2020 as for promotional services to a related party.

 

Total operating expenses for the nine-month period ended May 31, 2021, were $117,292 compared to $97,989 for the nine-month period ending May 31, 2020.

 

Financial Position, Liquidity and Capital Resources

 

As of May 31, 2021, the Company has paid its operating and development expenses with borrowings from a $75,000 line of credit from a lender as well as from loans by its shareholder and officers including an advance payment received of $68,671 from a subscription loan agreement. Additionally, the Company anticipates offering shares of the Company through a private offering of its securities to supplement its capital requirements. For the nine months ended May 31, 2021, the company used $112,818 in operating activities . The cash balance on May 31, 2021, was $206. All advances by Mr. Piscitello accrue interest at 8% and are due on demand. On May 31, 2021, we have a working capital deficiency of $719,765. Interest expense of $25,272 and $13,367 for the nine-month period ended May 31, 2021, and May 31, 2020, respectively was the result of accruals related to Mr. Piscitello’ s advances.

 

Critical Accounting Policies

 

Our critical accounting policies, including the assumptions and judgments underlying them, are disclosed in the Notes to the Financial Statements. We have consistently applied these policies in all material respects. We do not believe that our operations to date have involved uncertainty of accounting treatment, subjective judgment, or estimates, to any significant degree.

 

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. Because we have suffered recurring losses from operations and negative operating cash flows, there is substantial doubt about the Company’s ability to continue as a going concern. The ability to continue as a going concern is dependent on Management’s plans, which include potential asset acquisitions, mergers, or business combinations with other entities, further implementation of its business plan and continuing to raise funds through debt or equity raises. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk

 

As a smaller reporting company, as defined by Rule 229.10(f) (1) of Regulation S-K, we are not required to provide the information required by this Item. We have chosen to disclose, however, that we have not engaged in any transactions, issued, or bought any financial instruments or entered into any contracts that are required to be disclosed in response to this item.

 

Item 4. Controls and Procedures

 

Evaluation of Disclosure Controls and Procedure.

 

As of the end of the period covered by this report, the Company carried out an evaluation, under the supervision and with the participation of Aldo Piscitello, who is the Company’s Principal Executive Officer and Andrew Trumbach, the Principal Financial Officer, of the effectiveness of the design and operation of the Company’s disclosure controls and procedures. The Company’s disclosure controls and procedures are designed to provide a reasonable level of assurance of achieving the Company’s disclosure control objectives. The Company’s Principal Executive Officer and Principal Financial Officer has concluded that the Company’s disclosure controls and procedures are effective.

 

Changes in Internal Controls over Financial Reporting

 

In connection with the evaluation of the Company’s internal controls during the period, Aldo Piscitello, who is the Company’s Principal Executive Officer and Andrew Trumbach, the Principal Financial Officer has determined that there were no changes to the Company’s internal controls over financial reporting that have been materially affected, or is reasonably likely to materially effect, the Company’s internal controls over financial reporting.

 

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings

 

The Company is currently not a party to any pending legal proceedings and no such action by or to the best of its knowledge, against the Company, has been threatened.

 

Item 1A. Risk Factors

 

Not applicable for smaller reporting company.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

 

None

 

Item 3. Defaults Upon Senior Securities

 

None

 

Item 4. Reserved

 

None.

 

Item 5. Other Information

 

None

 

Item 6. Exhibits

 

31.1		Certification of Chief Executive Officer
31.2		Certification of Chief Financial Officer
32.1		Certification of Chief Executive Officer under Section 906 of the Sarbanes-Oxley Act of 2002
32.2		Certification of Chief Financial Officer under Section 906 of the Sarbanes-Oxley Act of 2002

 

 

SIGNATURES

 

In accordance with the requirements of the Exchange Act, the Company caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

	BorrowMoney.com, Inc.
	a Florida corporation
Dated: July 20, 2021	By:	/s/ Aldo Piscitello
		Aldo Piscitello
		President, Chief Executive Officer, and Chairman of Board of Directors

 

 

Exhibit 31.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Aldo Piscitello, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of BorrowMoney.com, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report.

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: July 20, 2021	By:	/s/ Aldo Piscitello
		Aldo Piscitello Chief Executive Officer

 

 

 

Exhibit 31.2

 

CERTIFICATION OF ACTING CHIEF FINANCIAL OFFICER PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

 

I, Andrew Trumbach, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of BorrowMoney.com, Inc.;

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

(b) Any fraud, whether material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

 

Date: July 20, 2021	By:	/s/ Andrew Trumbach
		Andrew Trumbach

 

 

 

Exhibit 32.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly report of BorrowMoney.com, Inc. (the “Company”) on Form 10-Q for the quarter ended May 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacities and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to his knowledge:

 

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated: July 20, 2021
	By:	/s/ Aldo Piscitello
		Aldo Piscitello
		Chief Executive Officer

 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002, or other document authentications, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to BorrowMoney.com, Inc and will be retained by BorrowMoney.com, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

 

Exhibit 32.2

 

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly report of BorrowMoney.com, Inc. (the “Company”) on Form 10-Q for the quarter ended May 31, 2021, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), the undersigned, in the capacities and on the dates indicated below, hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to her knowledge:

 

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

Dated: July 20, 2021
	By:	/s/ Andrew Trumbach
		Andrew Trumbach
		Chief Financial Officer

 

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act of 2002, or other document authentications, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to BorrowMoney.com, Inc. and will be retained by BorrowMoney.com, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

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