0001640334-16-001953.txt : 20161114 0001640334-16-001953.hdr.sgml : 20161111 20161114093238 ACCESSION NUMBER: 0001640334-16-001953 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 42 CONFORMED PERIOD OF REPORT: 20160930 FILED AS OF DATE: 20161114 DATE AS OF CHANGE: 20161114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: LINGERIE FIGHTING CHAMPIONSHIPS, INC. CENTRAL INDEX KEY: 0001407704 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC LIGHTING & WIRING EQUIPMENT [3640] IRS NUMBER: 208009362 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-55498 FILM NUMBER: 161991247 BUSINESS ADDRESS: STREET 1: 6955 NORTH DURANGO DRIVE STREET 2: SUITE 1115-129 CITY: LAS VEGAS STATE: NV ZIP: 89149 BUSINESS PHONE: 702-527-2942 MAIL ADDRESS: STREET 1: 6955 NORTH DURANGO DRIVE STREET 2: SUITE 1115-129 CITY: LAS VEGAS STATE: NV ZIP: 89149 FORMER COMPANY: FORMER CONFORMED NAME: CALA ENERGY CORP. DATE OF NAME CHANGE: 20130918 FORMER COMPANY: FORMER CONFORMED NAME: XODTEC LED, INC. DATE OF NAME CHANGE: 20130918 FORMER COMPANY: FORMER CONFORMED NAME: CALA ENERGY CORP. DATE OF NAME CHANGE: 20130918 10-Q 1 boty_10q.htm FORM 10-Q boty_10q.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

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

 

For the quarterly period ended September 30, 2016

 

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

 

For the transition period from __________ to __________

 

Commission File Number: 000-55498

 

LINGERIE FIGHTING CHAMPIONSHIPS, INC.

(Exact name of Registrant as specified in its charter)

 

Nevada

 

20-8009362

(State or other jurisdiction of incorporation of organization)

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

 

6955 North Durango Drive

Suite 1115-129

Las Vegas, NV 89149

(Address of principal executive offices)

 

(702) 527-2942

(Registrant’s telephone number, including area code)

 

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

 

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

 

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

 

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

¨

Smaller reporting company

x

(Do not check if smaller reporting company)

 

 

 

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

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. As of November 9, 2016 there were 24,192,200 shares of common stock issued and outstanding.
 

 

 
 
 

LINGERIE FIGHTING CHAMPIONSHIPS, INC.

FORM 10-Q

September 30, 2016

 

TABLE OF CONTENTS

 

Page No.

PART I - FINANCIAL INFORMATION

Item 1.

Financial Statements

3

 

Balance Sheets as of September 30, 2016 and December 31, 2015(Unaudited)

3

 

Unaudited Statements of Operations for the Nine Months and Three Months Ended September 30, 2016 and 2015

4

 

Unaudited Statements of Cash Flows for the Nine Months Ended September 30, 2016 and 2015

5

 

Notes to Unaudited Financial Statements.

6

Item 2.

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

12

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

16

Item 4.

Controls and Procedures.

17

PART II - OTHER INFORMATION

Item 1.

Legal Proceedings

18

Item 1A.

Risk Factors

18

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

18

Item 3.

Defaults upon Senior Securities

18

Item 4.

Mine Safety Disclosures

18

Item 5.

Other Information

18

Item 6.

Exhibits.

19

 

 
2

 

PART I. - FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

LINGERIE FIGHTING CHAMPIONSHIPS, INC.

BALANCE SHEETS

(Unaudited)

 

 

 

September 30,

 

 

December 31,

 

 

 

2016

 

 

2015

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

Cash and cash equivalents

 

$50,136

 

 

$21,683

 

Total Current Assets

 

 

50,136

 

 

 

21,683

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued liabilities

 

$31,948

 

 

$37,626

 

Convertible notes, net of $142,326 and $0 debt discount as of September 30, 2016 and December 31, 2015, respectively

 

 

57,174

 

 

 

-

 

Promissory notes, net of $0 and $0 debt discount as of September 30, 2016 and December 31, 2015, respectively

 

 

157,500

 

 

 

-

 

Derivative liability

 

 

353,750

 

 

 

-

 

Total Current Liabilities

 

 

600,372

 

 

 

37,626

 

 

 

 

 

 

 

 

 

 

STOCKHOLDERS' DEFICIT

 

 

 

 

 

 

 

 

Preferred stock, par value $0.001 per share, 10,000,000 shares authorized, no shares issued and outstanding.

 

 

 

 

 

 

 

 

Common stock, par value $0.001 per share, 400,000,000 shares authorized, 19,319,977 and 19,769,977 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively

 

 

19,320

 

 

 

19,770

 

Additional paid-in capital

 

 

92,910

 

 

 

162,536

 

Accumulated deficit

 

 

(662,466)

 

 

(198,249)

Total stockholders' deficit

 

 

(550,236)

 

 

(15,943)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT

 

$50,136

 

 

$21,683

 

  

See notes to unaudited financial statements

 

 
3
Table of Contents

 

LINGERIE FIGHTING CHAMPIONSHIPS, INC.

STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$14,963

 

 

$18,642

 

 

$19,137

 

 

$18,642

 

Cost of Services

 

 

11,395

 

 

 

30,086

 

 

 

52,469

 

 

 

43,801

 

GROSS PROFIT (LOSS)

 

 

3,568

 

 

 

(11,444)

 

 

(33,332)

 

 

(25,159)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

85,088

 

 

 

80,595

 

 

 

169,265

 

 

 

126,701

 

Total Operating Expenses

 

 

85,088

 

 

 

80,595

 

 

 

169,265

 

 

 

126,701

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER EXPENSE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest Expense

 

 

47,557

 

 

 

-

 

 

 

81,620

 

 

 

5,250

 

Loss on derivative liabilities

 

 

127,032

 

 

 

-

 

 

 

180,000

 

 

 

-

 

Total other expenses

 

$174,589

 

 

$-

 

 

$261,620

 

 

$5,250

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING LOSS

 

 

(256,109)

 

 

(92,039)

 

 

(464,217)

 

 

(157,110)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS

 

$(256,109)

 

$(92,039)

 

$(464,217)

 

$(157,110)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and Diluted Loss per Common Share

 

$(0.01)

 

$(0.00)

 

$(0.02)

 

$(0.01)

Basic and Diluted Weighted Average Common Shares Outstanding

 

 

19,124,325

 

 

 

19,769,977

 

 

 

19,768,335

 

 

 

17,048,501

 

 

See notes to unaudited financial statements

 

 
4
Table of Contents

 

LINGERIE FIGHTING CHAMPIONSHIPS, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2016

 

 

2015

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

Net loss

 

$(464,217)

 

$(157,110)

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Amortization of beneficial conversion feature

 

 

-

 

 

 

5,250

 

Stock - based compensation

 

 

30,000

 

 

 

7,600

 

Loss on derivative liability

 

 

180,000

 

 

 

-

 

Amortization of debt discount

 

 

64,674

 

 

 

-

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts Receivable

 

 

-

 

 

 

(15,016)

Accounts payable and accrued liabilities

 

 

(5,679)

 

 

9,684

 

Net cash used in operating activities

 

 

(195,222)

 

 

(149,592)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

 

-

 

 

 

2,578

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Repayment of notes

 

 

-

 

 

 

(12,000)

Repayment of notes - related party

 

 

-

 

 

 

(24,000)

Proceeds from related party convertible debt

 

 

-

 

 

 

3,850

 

Proceeds from convertible debt

 

 

173,750

 

 

 

1,400

 

Proceeds from promissory notes

 

 

50,000

 

 

 

-

 

Proceeds from sale of common stock

 

 

-

 

 

 

200,000

 

Payment for cancellation of common shares

 

 

(75)

 

 

-

 

Net cash provided by financing activities

 

 

223,675

 

 

 

169,250

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents

 

 

28,453

 

 

 

22,236

 

Cash and cash equivalents - beginning of period

 

 

21,683

 

 

 

3,580

 

Cash and cash equivalents - end of period

 

$50,136

 

 

$25,816

 

 

 

 

 

 

 

 

 

 

Supplemental Cash Flow Disclosures

 

 

 

 

 

 

 

 

Cash paid for interest

 

$-

 

 

$100

 

Cash paid for income taxes

 

$-

 

 

$-

 

 

 

 

 

 

 

 

 

 

NON CASH INVESTING AND FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Issue promisorry note for equity purchase agreement

 

$100,000

 

 

$-

 

Debt discount from derivative liability

 

$173,750

 

 

$-

 

Net liabilities assumed in the reverse acquisition

 

$

-

 

 

$39,522

 

Common shares issued for conversion of debt

 

$

-

 

 

$5,250

 

Discount to debt for beneficial conversion feature

 

$

-

 

 

$5,250

 

  

See notes to unaudited financial statements 


 
5
Table of Contents

 

LINGERIE FIGHTING CHAMPIONSHIPS, INC.

NOTES TO FINANCIAL STATEMENTS
September 30, 2016 (UNAUDITED)

 

NOTE 1 – ORGANIZATION AND NATURE OF BUSINESS

 

Lingerie Fighting Championships, Inc. (the “Company”) is a Nevada corporation incorporated on November 29, 2006 under the name Sparking Events, Inc.  The Company’s corporate name was changed to Xodtec Group USA, Inc. in June 2009, Xodtec LED, Inc. in May 2010, Cala Energy Corp. in September 2013 and Lingerie Fighting Championships, Inc. on April 1, 2015.

 

NOTE 2 – BASIS OF PRESENTATION AND ACCOUNTING POLICIES

 

The accompanying unaudited interim financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and are presented in accordance with the requirements of Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, these interim financial statements do not include all of the information and notes required by GAAP for complete financial statements.  These interim financial statements should be read in conjunction with the financial statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected any other interim period or for the year ending December 31, 2016.  At September 30, 2016 and December 31, 2015, the Company had no subsidiaries.

 

Convertible Instruments and Derivatives

 

The Company evaluates and account for conversion options embedded in convertible instruments in accordance with ASC 815 “Derivatives and Hedging Activities.”

 

Fair Value Measurement

 

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

 

The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short and long term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk.

 

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

 

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

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

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

 
 
6
Table of Contents

 

The derivative liability in connection with the conversion feature of the convertible debt, classified as a level 3 liability, is the only financial liability measured at fair value on a recurring basis.

 

The change in the level 3 financial instrument is as follows:

 

Balance - January 1, 2016

 

$-

 

Addition of new derivative as a debt discount

 

 

173,750

 

Day one loss due to derivative

 

 

217,637

 

(Gain) on change in fair value of the derivative

 

 

(37,637)

Balance - September 30, 2016

 

$353,750

 

  

The following table summarizes fair value measurement by level at September 30, 2016 and December 31, 2015, measured at fair value on a recurring basis: 

 

September 30, 2016

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

None

 

-

 

 

-

 

 

-

 

 

-

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

-

 

 

 

-

 

 

 

353,750

 

 

 

353,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2015

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

None

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Derivative liabilities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

NOTE 3 – GOING CONCERN

 

The accompanying financial statements have been prepared in conformity with GAAP, which contemplate continuation of the Company as a going concern. The Company has generated nominal revenues since inception, has sustained losses since its organization and requires funding to generate revenue.  These conditions raise substantial doubt as to the Company’s ability to continue as a going concern.

 

Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses.  The Company can give no assurances that it can or will become financially viable and continue as a going concern.

 

NOTE 4 – STOCKHOLDERS EQUITY

 

Preferred Stock

 

The authorized preferred stock consists of 10,000,000 shares with a par value $0.001 per share. The board of directors has broad discretion in setting the rights, preferences and privileges of one or more series of preferred stock.

There were no preferred shares issued and outstanding as at September 30, 2016 and December 31, 2015.

 

Common Stock

 

The Company has authorized 400,000,000 shares with a par value $0.001 per share.

 

On November 12, 2015, the Company purchased 750,000 shares of common stock from a consultant for $75.  These shares had been issued by LFC pursuant to a founders’ agreement dated July 28, 2014 for $75 and were exchanged for 750,000 shares of common stock pursuant to the Share Exchange Agreement.  The founders’ agreement gave the Company the right to repurchase the shares at cost if she ceased to be a consultant during the first year.  The Company exercised this right and repurchased the shares.  On January 7, 2016, payment had been provided to the consultant and the shares are accounted for as being cancelled as at September 30, 2016.

 
 
7
Table of Contents

 

Common Stock Issued for Services

 

On August 10 2016, the Company entered into an agreement for Institutional Funding Services/Public Relation Services. Pursuant to the terms of the agreement, the Company will issue monthly, 150,000 shares of common stock as fair value payment of the monthly retainer fee upon execution of the agreement. As of September 30, 2016 the Company has issued 300,000 shares of common stock for services rendered with a fair value of $30,000 based on the market price.

 

NOTE 5 – NOTES PAYABLE

 

The Company had the following notes payable as at September 30, 2016 and December 31, 2015:

 

Notes Payable

 

September 30,

2016

 

 

December 31,

2015

 

 

 

 

 

 

 

 

Promissory Note to Tangiers

 

$100,000

 

 

$-

 

Promissory Note to Tangiers

 

 

57,500

 

 

 

-

 

Total Notes Payable

 

$157,500

 

 

$-

 

 

Note payable to Tangiers

 

On April 4, 2016, the Company entered into an investment agreement with an unrelated party.  Per the investment agreement, the investor will invest up to $5,000,000 to purchase the Company’s common stock, par value of $.001 per share. In connection with the investment agreement, the Company entered into a registration rights agreement with the unrelated party which has been filed with the SEC. The maximum investment amount is equal to one hundred percent of the average of the daily trading volume of the common stock for the ten days prior to the put notice entered into by the unrelated party. The total purchase price to be paid in connection with the put notice, is calculated at eighteen percent discount of the lowest trading price of the common stock during the five consecutive trading days immediately succeeding the put notice date.

 

The Company issued a promissory note to the unrelated party for $100,000, as a commitment fee, which bears interest at 10% of the principle amount and matures seven months from April 4, 2016 with a possible extension to ten months based on whether the Company executes the related investment agreement within 180 days from April 4, 2016. If the registration statement is declared effective within 90 days of the execution of the investment agreement, the Company and the unrelated party agree the principal balance of the note will be immediately reduced by $40,000. The note payable will be available to be converted upon default. Per the agreement, default could occur based on: failure of payment on any outstanding amounts longer than five days after the due date, failure to issue shares after request, or failure to comply with all of the other material provisions included in the agreement. The conversion price is equal to the lower of: (a) 90% of the lowest trading price of the Company’s common stock during the 25 consecutive trading days prior to the date on which the unrelated party elects to convert all or part of the note, or (b) 90% of the lowest trading price of the Company’s common stock during the 25 consecutive trading days prior to the effective date of April 4, 2016. At the election of the unrelated party, at each closing date (as defined in the investment agreement) after the date which is six months after April 4, 2016, the unrelated party shall retain (or the Company shall pay to the unrelated party) an amount equal to ten percent of each Put Amount (as defined in the agreement), and the amounts shall be applied by the unrelated party as follows: first against the amount of any unpaid interest or other fees, and second against any unpaid principal amounts, until all interest, fees, and principal have been paid.

 

For the nine month period ending September 30, 2016, $6,000 has been accrued as interest expense.

 
 
8
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On April 28, 2016, the Company filed a registration statement with the Securities and Exchange Commission to register 3,500,000 shares of common stock pursuant to the Investment Agreement and the Registration Rights Agreement. On May 24, 2016, the Company received a comment letter from the Securities and Exchange Commission regarding the registration statement. As of September 30, 2016 the Company is currently formulating a response to the comment letter. There can be no assurance that the registration statement will ever become effective and that the Company will ever be able to draw down on the equity line.

 

In addition, since the registration statement will not become effective within 90 days of the date of the Investment Agreement, the Company is not entitled to the $40,000 reduction in principal on the promissory note. As of September 30, 2016 the Company and Tangiers are having ongoing discussions and may seek to amend the terms of the promissory note.

 

Note Payable to Tangiers

 

On April 4, 2016, the Company entered into a separate promissory note of $57,500 with a $7,500 original issue discount to the unrelated party, which bears interest at 10% of the principal amount. The $57,500 promissory note matures six months from the issue date. The note may be prepaid by the company, in whole, or part, as follows: (a) under thirty days, 105% of principal amount, (b) thirty one to sixty days, 110% of principal amount, (c) sixty one to ninety days, 115% of principal amount, (d) ninety one to one hundred and twenty days, 120% of principal amount, (e) one hundred twenty one to one hundred fifty one days, 125% of principal amount, and (f) one hundred and fifty one to one hundred and eighty days, 135% of principal amount. The note payable will be available to be converted upon default. Per the agreement, default could occur based on: failure of payment on any outstanding amounts longer than five days after the due date, failure to issue shares after request, or failure to comply with all of the other material provisions included in the agreement. The conversion price shall be equal to the lower of 50% of the lowest trading price of the Company’s common stock during the 20 consecutive trading days prior to the date on which the unrelated party elects to convert all or part of the note. The discount is being amortized over the life of the note using the effective interest method resulting in $7,500 of interest expense for the nine months September 30, 2016.

 

For the nine month period ending September 30, 2016, $5,750 has been accrued as interest expense.

 

NOTE 6 – CONVERTIBLE DEBT

 

The Company had the following notes payable as at September 30, 2016 and December 31, 2015: 

 

Convertible Debt

 

September 30,

2016

 

 

December 31,

2015

 

 

 

 

 

 

 

 

Convertible Promissory Note to Crown Bridge

 

$20,000

 

 

$-

 

Convertible Promissory Notes to Auctus Fund

 

 

34,969

 

 

 

-

 

Convertible Promissory Notes to EM Financial

 

 

2,205

 

 

 

-

 

 

 

 

 

 

 

 

-

 

Total Convertible Debt

 

$57,174

 

 

$-

 

 

 
9
Table of Contents

 

Promissory Note Payable to Crown Bridge Partners

 

On April 1, 2016, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $40,000 with a $6,000 original issue discount. The convertible promissory note bears interest at 10% per annum and matures twelve months from issue date. The conversion price is 55% of the lowest trading price 25 days prior to conversion. The note was discounted for a derivative (see note 7 for details) and the discount is being amortized over the life of the note using the effective interest method resulting in $20,000 of interest expense for the nine months September 30, 2016.

 

For the nine month period ending September 30, 2016, $2,153 has been accrued as interest expense.

 

Promissory Note Payable to Auctus Fund

 

On May 20, 2016, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $67,750 with a $7,750 original issue discount. The convertible promissory note bears interest at 10% per annum and matures nine months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion. The note was discounted for a derivative (see note 7 for details) and the discount is being amortized over the life of the note using the effective interest method resulting in $32,896 of interest expense for the nine months September 30, 2016.

 

For the nine month period ending September 30, 2016, $2,646 has been accrued as interest expense.

 

On September 20, 2016, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $56,750 with a $6,750 original issue discount. The convertible promissory note bears interest at 10% per annum and matures nine months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion. The note was discounted for a derivative (see note 7 for details) and the discount is being amortized over the life of the note using the effective interest method resulting in $2,073 of interest expense for the nine months September 30, 2016.

 

For the nine month period ending September 30, 2016, $164 has been accrued as interest expense.

 

Promissory Note Payable to EMA Financial

 

On September 7, 2016, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $35,000 with a $5,250 original issue discount. The convertible promissory note bears interest at 10% per annum and matures twelve months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion. The note was discounted for a derivative (see note 7 for details) and the discount is being amortized over the life of the note using the effective interest method resulting in $2,205 of interest expense for the nine months September 30, 2016.

 

For the nine month period ending September 30, 2016, $233 has been accrued as interest expense.

 

NOTE 7 – DERIVATIVE LIABILITY

 

The Company analyzed the conversion options for derivative accounting consideration under ASC 815, Derivatives and Hedging, and hedging, and determined that the instrument should be classified as a liability when the conversion option becomes effective

 

The following table summarizes the derivative liabilities included in the balance sheet at September 30, 2016:

 

Balance - January 1, 2016

 

$-

 

Addition of new derivative as a debt discount

 

 

173,750

 

Day one loss due to derivative

 

 

217,637

 

(Gain) on change in fair value of the derivative

 

 

(37,637)

Balance - September 30, 2016

 

$353,750

 

  

 
10
Table of Contents

 

The table below shows the Black-Scholes option-pricing model inputs used by the Company to value the derivative liability at each measurement date: 

 

 

 

Nine Months

ended

 

 

Nine Months
ended

 

 

 

September 30,

 

 

September 30,

 

 

 

2016

 

 

2015

 

Expected term

 

0.39 - .94 years

 

 

 

-

 

Expected average volatility

 

139.55% - 220.10

 

 

-

 

Expected dividend yield

 

-

 

 

 

-

 

Risk-free interest rate

 

0.52

%

 

 

-

 

 

NOTE 8 – SUBSEQUENT EVENTS

 

On October 1, 2016 the Company issued 1,200,000 shares of common stock in connection with the agreement for the services to be rendered by the new sponsorship representative.

 

On October 10, October 26 and November 3, 2016 the Company converted an aggregate of approximately $5,000, $7,500 and $7,500 respectively of the outstanding principal amount of a certain convertible promissory note dated April 4, 2016 in the amount of $57,500. The Company issued shares of common stock of 138,889, 416,667 and 1,666,667 respectively. The remaining principal balance on the note is $37,500.

 

On October 12, 2016 the Company issued 150,000 shares of common stock in connection with an agreement for Institutional Funding Services/Public Relations Services. Pursuant to the agreement, the Company will issue shares on a monthly basis as payment for the monthly retainer fee.

 

On October 18 and November 3, 2016 the Company converted an aggregate of approximately $4,062 and $3,300 respectively of the outstanding principal amount of a certain convertible promissory note dated April 1, 2016 in the amount of $40,000. The Company issued shares of common stock of 200,000 and 1,100,000 respectively. The remaining principal balance on the note is $32,638.

 

 
11
Table of Contents

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

The following discussion and analysis of the results of operations and financial condition for the nine months ended September 30, 2016 and 2015 and should be read in conjunction with our financial statements, and the notes to those financial statements that are included elsewhere in this report.

 

Business Overview

 

We were incorporated in Nevada on November 29, 2006 under the name Sparking Events, Inc., and on September 16, 2013 our corporate name was changed to Cala Energy Corp., (formally, Xodtec LED, Inc.) under which we were engaged in the business of offering services, such as enhanced oil recovery and material supplies, to gas and oil fields predominantly located in Southeast Asia. We were not successful in our efforts and discontinued this line of business.  Since that time, and prior to the “Exchange Agreement” (defined below), we have been a "shell company", as such term is defined in Rule 12b-2 of the Exchange Act.

 

On March 31, 2015, the Company, pursuant to share exchange agreement (the "Share Exchange Agreement"), among the Company, Lingerie Fighting Championships, Inc. (“LFC”), and the holders of all of the outstanding common stock and convertible notes of LFC exchanged their common stock and convertible notes of LFC for a total of 16,750,000 shares of common stock, which represented 84.70% of the Company's common stock after giving effect to the issuance of the shares pursuant to the Share Exchange Agreement and the shares of common stock issued in the private placement described in the following paragraph.  The issuance of the 16,750,000 shares of common stock to the former holders of LFC's common stock and convertible notes in exchange for the capital stock of LFC is referred to as the reverse acquisition transaction.  The sole director and chief executive officer of LFC became a director and the chief executive officer of the Company.  As a result of the reverse acquisition, the Company's business has become the business of LFC.

 

On March 31, 2015, contemporaneously with the closing pursuant to the Share Exchange Agreement, the Company issued 2,500,000 shares of common stock for a purchase price of $0.08 per share, for a total of $200,000.  The proceeds from the private placement were held in escrow on March 31, 2015, and were paid to the Company on April 2, 2015.  Accordingly, on March 31, 2015, the proceeds from the private placement are reflected as a subscription receivable.  None of the purchasers in the private placement are affiliates of the Company.

As a result of the reverse acquisition with LFC, we ceased to be a shell company on March 31, 2015.

 

Effective as of April 1, 2015, we changed our name to "Lingerie Fighting Championships, Inc." a name which more accurately represents our new business. We effected the name change by virtue of a short form merger, pursuant to which LFC (our wholly owned subsidiary after the LFC Acquisition) merged with and into the Company, with the Company remaining as the surviving parent corporation. In connection with the name change, we submitted to FINRA a voluntary request for the change of our OTC trading symbol. Our Common Stock now trades under the symbol “BOTY”.

 
 
12
Table of Contents

 

As a result of, and in connection with, the reverse acquisition, the Company changed its fiscal year to December 31, which was LFC's fiscal year, from a fiscal year ending February 28.

 

On April 20, 2015, the Company effected a one-for-800 reverse split, pursuant to which each share of common stock was converted into, and became 1/800 of a share of common stock, with fractional shares being rounded up to the next higher whole number of shares.  As a result of the reverse split, the 339,757,357 shares of common stock, then outstanding, became and were converted into 424,977 shares.  All references to shares of common stock and per share information retroactively reflect the reverse split.

 

We are engaged in the business of developing and marketing live entertainment involving scripted mixed marital arts events featuring attractive and athletic women, each of whom dresses as a specific character.  Prior to forming LFC, our chairman and chief executive officer, Shaun Donnelly, produced similar events which are available through the Internet.

 

Our revenue is derived from ticket sales, sales of products relating to our programs and revenue from the media distribution of our programs.  In general, our revenue from media distribution of our programs generally represents a percentage of the revenue generated by the media distribution companies, which is based on reports that we receive from the media distribution companies.  As a result, we do not know the revenue from our programs until we receive a report from the media distribution companies, and there is a considerable delay from the time we produce our programs until the date on which we generate revenue from the media distribution of our programs, and there may be a further delay from the time the distributors report revenue until we receive payment.

 

On April 28, 2016, the Company filed a registration statement with the Securities and Exchange Commission to register 3,500,000 shares of common stock pursuant to the Investment Agreement and the Registration Rights Agreement. On May 24, 2016, the Company received a comment letter from the Securities and Exchange Commission regarding the registration statement. As of September 30, 2016 the Company is currently formulating a response to the comment letter. There can be no assurance that the registration statement will ever become effective and that the Company will ever be able to draw down on the equity line.

 

In addition, since the registration statement will not become effective within 90 days of the date of the Investment Agreement, the Company is not entitled to the $40,000 reduction in principal on the promissory note. As of September 30, 2016 the Company and Tangiers are having ongoing discussions and may seek to amend the terms of the promissory note.

 

Going Concern

 

Our financial statements have been prepared in conformity with GAAP, which contemplate our continuation as a going concern. We have generated limited revenues since inception and we have sustained losses since our organization and we require funding to generate revenue.  These conditions raise substantial doubt as to our ability to continue as a going concern.

 

 Management anticipates that we will be dependent, for the near future, on additional investment capital to fund operating expenses.  We can give no assurances that it can or will become financially viable and continue as a going concern.

 
 
13
Table of Contents

 

Results of Operations

 

Three Months ended September 30, 2016 as compared to the Three Months Ended September 30, 2015

 

Revenues

 

We generated revenues of $14,963 and $18,642 for the three month period ended September 30, 2016 and 2015, respectively. This decrease in revenue was primarily due to a decrease in license revenues during the quarter.

 

Cost of Sales

 

We incurred total cost of sales of $11,395 and $30,086 for the three months ended September 30, 2016 and 2015, respectively. The decrease in cost of sales was primarily related to decreased payments to subcontractors and a decrease in labor costs during the period.

 

Operating Expenses

 

We incurred total operating expenses of $85,088 and $80,595 for the three months ended September 30, 2016 and 2015, respectively.  All of these expenses related to general and administrative expenses.  The increase in operating expenses was due primarily to an increase of legal and professional fees of approximately $16,700, a decrease in advertising expense of $12,000.

 

Net Loss

 

We incurred a net loss of $256,109 and $92,039 during the three months ended September 30, 2016 and 2015, respectively. The increase in our net loss was due to the increase in operating expenses of $4,500, an increase in interest expense of $47,557 and loss on derivative liabilities of $127,032, offset by an increase in gross profit of $15,012 for the comparative period.

 

Nine Months Ended September 30, 2016 as compared to the Nine Months Ended September 30, 2015

 

Revenues

 

We generated revenues of $19,137 and $18,642 for the nine month period ended September 30, 2016 and 2015, respectively. The increase in revenue was primarily due to license revenues, on-line sales and ticket revenue generated during the period.

 

Cost of Sales

 

We incurred total cost of sales of $52,469 and $43,801 for the nine months ended September 30, 2016 and 2015, respectively. The increase in cost of sales was primarily related increased payments to subcontractors and labor costs.

  
 
14
Table of Contents

 

Operating Expenses

 

We incurred total operating expenses of $169,265 and $126,701 for the nine months ended September 30, 2016 and 2015, respectively.  All of these expenses related to general and administrative expenses.  The increase in operating expenses was due primarily to an increase of travel expenses of approximately $31,500, an increase in commissions and fees of $6,000, an increase in office expenses of approximately $9,000. The increase in operating expenses was due to an increase in legal and professional fees of approximately $10,600 and a decrease in advertising fees of approximately $12,000.

 

Net Loss

 

We incurred a net loss of $464,217 and $157,110 during the nine months ended September 30, 2016 and 2015, respectively. The increase in our net loss was due to the increase in operating expenses of $42,564, along with the increase of interest expense of $76,370 and loss on derivative liabilities of $180,000, offset by an increase of revenues of $495, for the comparative period.

 

Liquidity and Capital Resources

 

At September 30, 2016, we had a working capital deficiency of $550,236.  The Company intends to fund future operations through equity financing arrangements, which may be insufficient to fund its capital expenditures, working capital and other cash requirements for the year ending December 31, 2016.

 

The ability of the Company to realize its business plan is dependent upon, among other things, obtaining additional financing to continue operations, and development of its business plan. In response to these problems, management intends to raise additional funds through public or private placement offerings.

 

These factors, among others, raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Cash Flows from Operating Activities

 

During the nine months ended September 30, 2016 and 2015, the Company’s net cash used in operating activities was $(195,222) and $(149,592), respectively. The cash used in operating activities during the nine months ended September 30, 2016 related to the Company’s net loss of $(464,217), loss on derivative liability of $180,000, stock – based compensation of $30,000, amortization of debt discount of $64,674 and decrease in accounts payable and accrued liabilities of $5,679.

 

Cash Flows from Investing Activities

 

During the nine months ended September 30, 2016 and 2015, the Company had cash provided by investing activities of $0 and $$2,578, respectively.

 

Cash Flows from Financing Activities

 

During the nine months ended September 30, 2016 and 2015, the Company had cash provided by financing activities of $223,675 and 169,250. The cash provided by financing activities during the nine months ended September 30, 2016 was related to the proceeds from convertible debt of $173,750, proceeds from promissory notes of $50,000, and payment for cancellation of common shares of $75.

 
 
15
Table of Contents

 

Going Concern

 

Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses.  The Company can give no assurances that it can or will become financially viable and continue as a going concern.

 

Off-Balance Sheet Arrangements

 

We have no off-balance sheet arrangements.

 

Inflation

 

We do not believe that inflation has had a material effect on our results of operations.

 

Critical Accounting Policies and Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to select appropriate accounting policies and to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses.

 

Use of Estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States 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 or revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Stock-Based Compensation

 

The Company recognizes compensation expense for all equity–based payments in accordance with ASC 718 “Share-based payments". Under fair value recognition provisions, the Company recognizes equity–based compensation net of an estimated forfeiture rate and recognizes compensation cost only for those shares expected to vest over the requisite service period of the award.

 

Share-based payments to employees, including grants of employee stock options, are recognized as compensation expense in the financial statements based on their fair values. That expense is recognized over the period during which an employee is required to provide services in exchange for the award, known as the requisite service period (usually the vesting period).

 

The Company accounts for share–based payments granted to non–employees in accordance with ASC 505, “Equity Based Payments to Non–Employees”. The Company determines the fair value of the stock–based payment as either the fair value of the consideration received or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of either (1) the date at which a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty’s performance is complete. 

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk.

 

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.

 
 
16
Table of Contents

 

Item 4. Controls and Procedures

 

Disclosure Controls and Procedures

 

As required by Rule 13a-15 under the Exchange Act, our management evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of September 30, 2016.

 

Disclosure controls and procedures refer to controls and other procedures designed to ensure that information required to be disclosed in the reports we file or submit under the Securities Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC and that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating our disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management is required to apply its judgment in evaluating and implementing possible controls and procedures.

 

Management conducted its evaluation of disclosure controls and procedures under the supervision of our chief executive officer and our chief financial officer. Based on that evaluation, Mr. Donnelly concluded that our disclosure controls and procedures were not effective as of September 30, 2016.

 

Management’s Report on Internal Control over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act. Our management is also required to assess and report on the effectiveness of our internal control over financial reporting in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 (“Section 404”).  At the end of our year ended December 31, 2014 and until March 31, 2015, when we completed the reverse acquisition, we were a privately-owned company and we did not perform an evaluation of our internal controls over financial reporting.  Because we have no employees other than our chief executive officer, and our chief financial officer, who performs his services on an as-needed basis and is a consultant to us, and because we do not have segregation of duties and responsibilities, we do not believe that are internal controls over financial reporting are effective, and we cannot give any assurance that we will be able to design or implement effective internal controls over financial reporting in the near future.

 

Changes in Internal Controls over Financial Reporting

 

There were no changes in our internal controls over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 
 
17
Table of Contents

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings

 

We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of our company or any of our subsidiaries, threatened against or affecting our company, our common stock, any of our subsidiaries or of our companies or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.

 

Item 1A. Risk Factors

 

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.

 

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

 

On April 1, 2016, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $40,000 with a $6,000 original issue discount. The convertible promissory note bears interest at 10% per annum and matures twelve months from issue date. The conversion price is 55% of the lowest trading price 25 days prior to conversion.

 

On May 20, 2016, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $67,750 with a $7,750 original issue discount. The convertible promissory note bears interest at 10% per annum and matures nine months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion.

 

On September 07, 2016, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $35,000 with a $5,250 original issue discount. The convertible promissory note bears interest at 10% per annum and matures twelve months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion.

 

On September 20, 2016, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $56,750 with a $6,750 original issue discount. The convertible promissory note bears interest at 10% per annum and matures nine months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion.

 

Item 3. Defaults upon Senior Securities

 

None.

 

Item 4. Mine Safety Disclosures

 

Not applicable.

 

Item 5. Other information

 

None.

 
 
18
Table of Contents

 

Item 6. Exhibits

 

31.1

Certification of the Principal Executive Officer and Principal Financial Officer of the Registrant pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32.1 +

Certification of the Principal Executive Officer of the Registrant pursuant to 18U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS

XBRL Instance Document

101.SCH

XBRL Taxonomy Extension Schema Document

101.CAL

XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF

XBRL Taxonomy Extension Definition Linkbase Document

101.LAB

XBRL Taxonomy Extension Label Linkbase Document

101.PRE

XBRL Taxonomy Extension Presentation Linkbase Document

__________

 +  In accordance with SEC Release 33-8238, Exhibits 32.1 is being furnished and not filed.

 
 
19
Table of Contents

 

SIGNATURES

 

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

 

 

LINGERIE FIGHTING CHAMPIONSHIPS, INC.

 

 

 

 

 

November 14, 2016

By:

/s/ Shaun Donnelly

 

Shaun Donnelly, Chief Executive Officer,
(Principal Executive Officer)

 

 

 

 

November 14, 2016

By:

/s/ Charles Connaughton

 

 

 

Charles Connaughton, Chief Financial Officer,
(Principal Financial Officer)

 

 

 

20

 

EX-31.1 2 boty_ex311.htm CERTIFICATION boty_ex311.htm

EXHIBIT 31.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE

SARBANES-OXLEY ACT OF 2002

 

I, Shaun Donnelly and Charles Connaughton, certify that:

 

1.We have reviewed this quarterly report on Form 10-Q of Lingerie Fighting Championships, 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 quarterly 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 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 controls 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 quarterly 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;

 

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;

 

5.The registrant’s other certifying officer 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 function):

 

 

 

a)all significant deficiencies and material weaknesses in the design or operation of internal controls 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 or not material, that involves management or other employees who have a significant role in the registrant’s internal controls over financial reporting.

 

 

Dated: November 14, 2016

By:

/s/ Shaun Donnelly

Shaun Donnelly

Chief Executive Officer, (Principal Executive Officer)

 

 

Dated: November 14, 2016

By:

/s/ Charles Connaughton

Charles Connaughton

Chief Financial Officer (Principal Financial Officer)

 

EX-32.1 3 boty_ex321.htm CERTIFICATION boty_ex321.htm

EXHIBIT 32.1

 

CERTIFICATION 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 Lingerie Fighting Championships, Inc. (the “Company”) on Form 10-Q for the period ended September 30, 2016 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Shaun Donnelly, chief executive officer and Charles Connaughton, chief financial officer of the Company, certify, pursuant to 18 U.S.C. section 1350 of the Sarbanes-Oxley Act of 2002, that:

 

(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.

 

 

Date: November 14, 2016

By:

/s/ Shaun Donnelly

Shaun Donnelly

Chief Executive Officer

(Principal Executive Officer)

 

 

Date: November 14, 2016

By:

/s/ Charles Connaughton

Charles Connaughton

Chief Financial Officer

(Principal Financial Officer)

 

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text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><b>Note payable to Tangiers</b></p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">On April 4, 2016, the Company entered into an investment agreement with an unrelated party.&#160; Per the investment agreement, the investor will invest up to $5,000,000 to purchase the Company&#8217;s common stock, par value of $.001 per share. 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If the registration statement is declared effective within 90 days of the execution of the investment agreement, the Company and the unrelated party agree the principal balance of the note will be immediately reduced by $40,000. The note payable will be available to be converted upon default. Per the agreement, default could occur based on: failure of payment on any outstanding amounts longer than five days after the due date, failure to issue shares after request, or failure to comply with all of the other material provisions included in the agreement. The conversion price is equal to the lower of: (a) 90% of the lowest trading price of the Company&#8217;s common stock during the 25 consecutive trading days prior to the date on which the unrelated party elects to convert all or part of the note, or (b) 90% of the lowest trading price of the Company&#8217;s common stock during the 25 consecutive trading days prior to the effective date of April 4, 2016. At the election of the unrelated party, at each closing date (as defined in the investment agreement) after the date which is six months after April 4, 2016, the unrelated party shall retain (or the Company shall pay to the unrelated party) an amount equal to ten percent of each Put Amount (as defined in the agreement), and the amounts shall be applied by the unrelated party as follows: first against the amount of any unpaid interest or other fees, and second against any unpaid principal amounts, until all interest, fees, and principal have been paid.</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">For the nine month period ending September 30, 2016, $6,000 has been accrued as interest expense.</p> <div align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</div> <div align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">On April 28, 2016, the Company filed a registration statement with the Securities and Exchange Commission to register 3,500,000 shares of common stock pursuant to the Investment Agreement and the Registration Rights Agreement. On May 24, 2016, the Company received a comment letter from the Securities and Exchange Commission regarding the registration statement. As of September 30, 2016 the Company is currently formulating a response to the comment letter. There can be no assurance that the registration statement will ever become effective and that the Company will ever be able to draw down on the equity line.</div> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">In addition, since the registration statement will not become effective within 90 days of the date of the Investment Agreement, the Company is not entitled to the $40,000 reduction in principal on the promissory note. As of September 30, 2016 the Company and Tangiers are having ongoing discussions and may seek to amend the terms of the promissory note.</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><b>Note Payable to Tangiers</b></p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">On April 4, 2016, the Company entered into a separate promissory note of $57,500 with a $7,500 original issue discount to the unrelated party, which bears interest at 10% of the principal amount. The $57,500 promissory note matures six months from the issue date. The note may be prepaid by the company, in whole, or part, as follows: (a) under thirty days, 105% of principal amount, (b) thirty one to sixty days, 110% of principal amount, (c) sixty one to ninety days, 115% of principal amount, (d) ninety one to one hundred and twenty days, 120% of principal amount, (e) one hundred twenty one to one hundred fifty one days, 125% of principal amount, and (f) one hundred and fifty one to one hundred and eighty days, 135% of principal amount. The note payable will be available to be converted upon default. Per the agreement, default could occur based on: failure of payment on any outstanding amounts longer than five days after the due date, failure to issue shares after request, or failure to comply with all of the other material provisions included in the agreement. The conversion price shall be equal to the lower of 50% of the lowest trading price of the Company&#8217;s common stock during the 20 consecutive trading days prior to the date on which the unrelated party elects to convert all or part of the note. The discount is being amortized over the life of the note using the effective interest method resulting in $7,500 of interest expense for the nine months September 30, 2016.</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <div align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">For the nine month period ending September 30, 2016, $5,750 has been accrued as interest expense.</div> </div> <div> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><b>NOTE 6 &#8211; CONVERTIBLE DEBT</b></p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">The Company had the following notes payable as at September 30, 2016 and December 31, 2015:&#160;</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"></p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; 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margin-bottom: 0px; margin-right: 0px;">Total Convertible Debt</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="9%">57,174</td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> <td valign="bottom" width="1%">$</td> <td align="right" valign="bottom" width="9%">-</td> <td valign="bottom" width="1%"> <p style="margin: 0px;">&#160;</p> </td> </tr> </table> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><b></b>&#160;</p> <div align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><b>Promissory Note Payable to Crown Bridge Partners</b></div> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">On April 1, 2016, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $40,000 with a $6,000 original issue discount. The convertible promissory note bears interest at 10% per annum and matures twelve months from issue date. The conversion price is 55% of the lowest trading price 25 days prior to conversion. The note was discounted for a derivative (see note 7 for details) and the discount is being amortized over the life of the note using the effective interest method resulting in $20,000 of interest expense for the nine months September 30, 2016.</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">For the nine month period ending September 30, 2016, $2,153 has been accrued as interest expense.</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><b>Promissory Note Payable to Auctus Fund</b></p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">On May 20, 2016, the Company entered into an agreement to issue a convertible promissory note to an unrelated party for an amount of $67,750 with a $7,750 original issue discount. The convertible promissory note bears interest at 10% per annum and matures nine months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion. 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The convertible promissory note bears interest at 10% per annum and matures nine months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion. 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The convertible promissory note bears interest at 10% per annum and matures twelve months from issue date. The conversion price is 50% of the lowest trading price 25 days prior to conversion. 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Accordingly, these interim financial statements do not include all of the information and notes required by GAAP for complete financial statements.&#160; These interim financial statements should be read in conjunction with the financial statements and notes included in the Company&#8217;s Annual Report on Form 10-K for the year ended December 31, 2015.&#160; In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected any other interim period or for the year ending December 31, 2016.&#160; At September 30, 2016 and December 31, 2015, the Company had no subsidiaries.</div> <div> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><i>Convertible Instruments and Derivatives</i></p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><em></em>&#160;</p> <div align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">The Company evaluates and account for conversion options embedded in convertible instruments in accordance with ASC 815 &#8220;Derivatives and Hedging Activities.&#8221;</div> </div> <div> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><i>Fair Value Measurement</i></p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;"><em></em>&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">The Company adopted the provisions of ASC Topic 820, &#8220;Fair Value Measurements and Disclosures,&#8221; which defines fair value as used in numerous accounting pronouncements, establishes a framework for measuring fair value and expands disclosure of fair value measurements.</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">The estimated fair value of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses are carried at historical cost basis, which approximates their fair values because of the short-term nature of these instruments. The carrying amounts of our short and long term credit obligations approximate fair value because the effective yields on these obligations, which include contractual interest rates taken together with other features such as concurrent issuances of warrants and/or embedded conversion options, are comparable to rates of returns for instruments of similar credit risk.</p> <p style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. 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widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">Level 2&#160;&#8211;&#160;quoted prices for similar assets and liabilities in active markets or inputs that are observable</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">Level 3&#160;&#8211;&#160;inputs that are unobservable (for example cash flow modeling inputs based on assumptions)</p> <div align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</div> <div align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; background: white; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">The derivative liability in connection with the conversion feature of the convertible debt, classified as a level 3 liability, is the only financial liability measured at fair value on a recurring basis.</div> <p style="text-align: justify; 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Pursuant to the agreement, the Company will issue shares on a monthly basis as payment for the monthly retainer fee.</p> <p align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; text-indent: 0px; margin: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">&#160;</p> <div align="justify" style="text-align: justify; widows: 2; text-transform: none; font-style: normal; margin-top: 0px; text-indent: 0px; font-family: 'times new roman'; white-space: normal; orphans: 2; margin-bottom: 0px; letter-spacing: normal; color: #000000; font-size: 13px; font-weight: normal; margin-right: 0px; word-spacing: 0px; font-variant-ligatures: normal; font-variant-caps: normal; -webkit-text-stroke-width: 0px;">On October 18 and November 3, 2016 the Company converted an aggregate of approximately $4,062 and $3,300 respectively of the outstanding principal amount of a certain convertible promissory note dated April 1, 2016 in the amount of $40,000. The Company issued shares of common stock of 200,000 and 1,100,000 respectively. The remaining principal balance on the note is $32,638.</div> </div> 1200000 150000 40000 57500 138889 200000 416667 1666667 1100000 32638 37500 0001407704boty:ServiceAgreementMember2016-08-012016-08-10 150000 0001407704boty:ServiceAgreementMember2016-09-012016-09-30 300000 30000 40000 40000 EX-101.SCH 5 boty-20160930.xsd XBRL TAXONOMY EXTENSION SCHEMA 001 - Document - Document and Entity Information link:presentationLink link:definitionLink link:calculationLink 002 - Statement - BALANCE SHEETS (Unaudited) link:presentationLink link:definitionLink link:calculationLink 003 - Statement - BALANCE SHEETS (Unaudited) (Parentheticals) link:presentationLink link:definitionLink link:calculationLink 004 - Statement - STATEMENTS OF OPERATIONS (Unaudited) link:presentationLink link:definitionLink link:calculationLink 005 - Statement - CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) link:presentationLink link:definitionLink link:calculationLink 006 - Disclosure - ORGANIZATION AND NATURE OF BUSINESS link:presentationLink link:definitionLink link:calculationLink 007 - Disclosure - BASIS OF PRESENTATION AND ACCOUNTING POLICIES link:presentationLink link:definitionLink link:calculationLink 008 - Disclosure - GOING CONCERN link:presentationLink link:definitionLink link:calculationLink 009 - Disclosure - STOCKHOLDERS EQUITY link:presentationLink link:definitionLink link:calculationLink 010 - Disclosure - NOTES PAYABLE link:presentationLink link:definitionLink link:calculationLink 011 - Disclosure - CONVERTIBLE DEBT link:presentationLink link:definitionLink link:calculationLink 012 - Disclosure - DERIVATIVE LIABILITY link:presentationLink link:definitionLink link:calculationLink 013 - Disclosure - SUBSEQUENT EVENTS link:presentationLink link:definitionLink link:calculationLink 014 - Disclosure - BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Policies) link:presentationLink link:definitionLink link:calculationLink 015 - Disclosure - BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Tables) link:presentationLink link:definitionLink link:calculationLink 016 - Disclosure - NOTES PAYABLE (Tables) link:presentationLink link:definitionLink link:calculationLink 017 - Disclosure - CONVERTIBLE DEBT (Tables) link:presentationLink link:definitionLink link:calculationLink 018 - Disclosure - DERIVATIVE LIABILITY (Tables) link:presentationLink link:definitionLink link:calculationLink 019 - Disclosure - BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Details) link:presentationLink link:definitionLink link:calculationLink 020 - Disclosure - BASIS OF PRESENTATION AND ACCOUNTING POLICIES (Details 1) link:presentationLink link:definitionLink link:calculationLink 021 - Disclosure - STOCKHOLDERS EQUITY (Detail Textuals) link:presentationLink link:definitionLink link:calculationLink 022 - Disclosure - NOTES PAYABLE (Details) link:presentationLink link:definitionLink link:calculationLink 023 - Disclosure - NOTES PAYABLE (Detail Textuals) link:presentationLink link:definitionLink link:calculationLink 024 - Disclosure - CONVERTIBLE DEBT (Details) link:presentationLink link:definitionLink link:calculationLink 025 - Disclosure - CONVERTIBLE DEBT (Detail Textuals) link:presentationLink link:definitionLink link:calculationLink 026 - Disclosure - DERIVATIVE LIABILITY (Details) link:presentationLink link:definitionLink link:calculationLink 027 - Disclosure - DERIVATIVE LIABILITY (Details 1) link:presentationLink link:definitionLink link:calculationLink 028 - Disclosure - SUBSEQUENT EVENTS (Details Textuals) link:presentationLink link:definitionLink link:calculationLink EX-101.CAL 6 boty-20160930_cal.xml XBRL TAXONOMY EXTENSION CALCULATION LINKBASE EX-101.DEF 7 boty-20160930_def.xml XBRL TAXONOMY EXTENSION DEFINITION LINKBASE EX-101.LAB 8 boty-20160930_lab.xml XBRL TAXONOMY EXTENSION LABEL LINKBASE EX-101.PRE 9 boty-20160930_pre.xml XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE XML 10 R1.htm IDEA: XBRL DOCUMENT v3.5.0.2
Document and Entity Information - shares
9 Months Ended
Sep. 30, 2016
Nov. 09, 2016
Document And Entity Information [Abstract]    
Entity Registrant Name LINGERIE FIGHTING CHAMPIONSHIPS, INC.  
Entity Central Index Key 0001407704  
Trading Symbol boty  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   24,192,200
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2016  
Document Fiscal Year Focus 2016  
Document Fiscal Period Focus Q3  
XML 11 R2.htm IDEA: XBRL DOCUMENT v3.5.0.2
BALANCE SHEETS (Unaudited) - USD ($)
Sep. 30, 2016
Dec. 31, 2015
Current Assets    
Cash and cash equivalents $ 50,136 $ 21,683
Total Current Assets 50,136 21,683
Current Liabilities    
Accounts payable and accrued liabilities 31,948 37,626
Convertible notes, net of $142,326 and $0 debt discount as of September 30, 2016 and December 31, 2015, respectively 57,174
Promissory notes, net of $0 and $0 debt discount as of September 30, 2016 and December 31, 2015, respectively 157,500
Derivative liability 353,750
Total Current Liabilities 600,372 37,626
STOCKHOLDERS' DEFICIT    
Preferred stock, par value $0.001 per share, 10,000,000 shares authorized, no shares issued and outstanding.
Common stock, par value $0.001 per share, 400,000,000 shares authorized, 19,319,977 and 19,769,977 shares issued and outstanding at September 30, 2016 and December 31, 2015, respectively 19,320 19,770
Additional paid-in capital 92,910 162,536
Accumulated deficit (662,466) (198,249)
Total stockholders' deficit (550,236) (15,943)
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $ 50,136 $ 21,683
XML 12 R3.htm IDEA: XBRL DOCUMENT v3.5.0.2
BALANCE SHEETS (Unaudited) (Parentheticals) - USD ($)
Sep. 30, 2016
Dec. 31, 2015
Statement of Financial Position [Abstract]    
Convertible notes, debt discount $ 142,326 $ 0
Promissory notes, debt discount $ 0 $ 0
Preferred stock par value (in dollars per share) $ 0.001 $ 0.001
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value (in dollars per share) $ 0.001 $ 0.001
Common stock, shares authorized 400,000,000 400,000,000
Common stock, shares issued 19,319,977 19,769,977
Common stock, shares outstanding 19,319,977 19,769,977
XML 13 R4.htm IDEA: XBRL DOCUMENT v3.5.0.2
STATEMENTS OF OPERATIONS (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
Sep. 30, 2016
Sep. 30, 2015
Income Statement [Abstract]        
Revenue $ 14,963 $ 18,642 $ 19,137 $ 18,642
Cost of Services 11,395 30,086 52,469 43,801
GROSS PROFIT (LOSS) 3,568 (11,444) (33,332) (25,159)
OPERATING EXPENSES        
Selling, general and administrative expenses 85,088 80,595 169,265 126,701
Total Operating Expenses 85,088 80,595 169,265 126,701
OTHER EXPENSE        
Interest Expense 47,557   81,620 5,250
Loss on derivative liabilities 127,032   180,000  
Total other expenses 174,589   261,620 5,250
OPERATING LOSS (256,109) (92,039) (464,217) (157,110)
NET LOSS $ (256,109) $ (92,039) $ (464,217) $ (157,110)
Basic and Diluted Loss per Common Share (in dollars per share) $ (0.01) $ (0.00) $ (0.02) $ (0.01)
Basic and Diluted Weighted Average Common Shares Outstanding (in shares) 19,124,325 19,769,977 19,768,335 17,048,501
XML 14 R5.htm IDEA: XBRL DOCUMENT v3.5.0.2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)
9 Months Ended
Sep. 30, 2016
Sep. 30, 2015
CASH FLOWS FROM OPERATING ACTIVITIES    
Net loss $ (464,217) $ (157,110)
Adjustments to reconcile net loss to net cash used in operating activities:    
Amortization of beneficial conversion feature   5,250
Stock - based compensation 30,000 7,600
Loss on derivative liability 180,000  
Amortization of debt discount 64,674  
Changes in operating assets and liabilities:    
Accounts Receivable   (15,016)
Accounts payable and accrued liabilities (5,679) 9,684
Net cash used in operating activities (195,222) (149,592)
CASH FLOWS FROM INVESTING ACTIVITIES    
Net cash used in investing activities   2,578
CASH FLOWS FROM FINANCING ACTIVITIES    
Repayment of notes   (12,000)
Repayment of notes - related party   (24,000)
Proceeds from related party convertible debt   3,850
Proceeds from convertible debt 173,750 1,400
Proceeds from promissory notes 50,000  
Proceeds from sale of common stock   200,000
Payment for cancellation of co