BORROWMONEY.COM, INC. 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. The Company's 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 requires 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
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The Company also serves 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.
The
In addition to operating its core mortgage inquiry and leads business, the Company is focused on growing its non-mortgage lending businesses and developing new product offerings and enhancements to improve the experiences that consumers and lenders have as they interact with us. By expanding its portfolio of loans and other product offerings, the Company is growing and diversifying its business and sources of revenue. The Company intends to capitalize on its expertise in performance marketing, product development and technology, and to leverage the widespread recognition of the BorrowMoney.com brand to affect this strategy.
The Company believes 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. The Company believes 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. The Company believes the strength of its brands and its lender network, place the Company in a strong position to continue to benefit from this market shift.
The Company is 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, is 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.
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. The Company intends to take advantage of the benefits of this extended transition period until we are no longer an "emerging growth company."
The Company will remain an emerging growth company until the earlier of (1) the
last day of the fiscal year (a) in which the Company has total annual gross
revenue of at least
11 Limited Operating History
The Company has not previously demonstrated that it will be able to expand its business through an increased investment in its product lines and/or marketing efforts. The Company cannot guarantee that the expansion efforts described in this report will be successful. The Company's business is subject to risks inherent in growing an enterprise, including limited capital resources and possible rejection of its products and/or sales methods.
Management Changes
On
On
On
Plan of Operations
The Company has completed its technology platform. The Company is now entering
its operational phase which includes contracting business loan, mortgage and
personal loan lenders for geographic areas using ZIP Codes. In addition to
expanding its network of lenders over the next 12 months, the Company intends to
continue optimizing and enhancing its Internet-based platform to focus on lead
generation and generating additional revenues for the marketplace services. The
Company's mission is to be the premier loan lead generation company. The budget
for the next 12 months is estimated to be
(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
15.0
Licenses and Permits 3.5
Marketing and Advertising 50.0
Bank Charges and Credit 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 from existing revenues. Our expansion would be accompanied by an increase in the number of personnel to obtain lender agreements for ever-expanding geographic areas.
12
Channels of Distribution; Marketing Costs
Results of Operations
The Company had
The following table provides selected financial data about the Company as of
August 31, August 31,
Balance Sheet Date (000's) 2022 2021
Cash $ 4.0 $ 9.3
Total Assets $ 4.0 $ 9.3
Total Liabilities $ 681.9 $ 635.3
Stockholders' Deficit $ (677.9 ) $ (626.0 )
Working Capital Deficit $ (677.9 ) $ (626.0 ) As of
As of
The Company had
The Company had
Financial Position, Liquidity and Capital Resource
As of
Interest expense of
Plan of Operation and Funding
During the next twelve months, the Company anticipates that its principal sources of funding will comprise of proceeds from sales of common stock, revenue generated from our operations, and additional debt, if needed.
13 Critical Accounting Policies
The Company's critical accounting policies, including the assumptions and judgments underlying them, are disclosed in the Notes to the Consolidated Financial Statements. The Company has consistently applied these policies in all material respects. The Company does not believe that its operations to date have involved uncertainty of accounting treatment, subjective judgment, or estimates, to any significant degree.
Accounting Estimates - The preparation of financial statements in conformity
with accounting principles generally accepted in
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
Revenue Recognition - The Company recognizes revenue in accordance with Accounting Standards Update ("ASU") No. 2014-09, "Revenue from Contracts with Customer". The Company applies the following five steps in order to determine the appropriate amount of revenue to be recognized as it fulfills its obligations under each of its agreements:
Revenue is recognized based on the following five step model:
? Identification of the contract with a customer
? Identification of the performance obligations in the contract
? Determination of the transaction price
? Allocation of the transaction price to the performance obligations in the
contract
? Recognition of revenue when, or as, the Company satisfies a performance
obligation
Revenues are recognized when control of the promised goods or services is transferred to the customer in an amount that reflects the consideration the Company expects to be entitled to in exchange for transferring those goods or services.
Going Concern
Because the Company has 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 accompanying consolidated 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.
Off-Balance Sheet Arrangements
The Company has no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on its financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.
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