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 August 31, 2017 |
OR
| [ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
| For the transition period from __________________ to __________________ |
Commission file number 000-55335
PINKBRICK HOLDINGS INC.
(Exact Name of Registrant as Specified in Its Charter)
| Delaware | 47-2384706 | |
| (State or Other Jurisdiction of | (I.R.S. Employer | |
| Incorporation or Organization) | Identification No.) |
33 N. Dearborn Street, Suite #650 Chicago, IL |
60602 | |
| (Address of Principal Executive Offices) | (Zip Code) |
Registrant’s Telephone Number, Including Area Code: (312) 726-9855
N/A
(Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [ ]
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [X] No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
| Large accelerated filer | [ ] | Accelerated filer | [ ] | |
| Non-accelerated filer | [ ] | Smaller reporting company | [X] | |
| (Do not check if a smaller reporting company) | ||||
| Emerging growth company | [X] | |||
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [X] No [ ]
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: 3,000,000 shares of common stock, par value $0.0001, were issued and outstanding as of December 1, 2017.
PINKBRICK HOLDINGS INC.
TABLE OF CONTENTS
| 2 |
PART I - FINANCIAL INFORMATION
Pinkbrick Holdings Inc.
(unaudited)
| August 31, 2017 | November 30, 2016 | |||||||
| Assets | ||||||||
| Cash | $ | - | $ | - | ||||
| Total assets | - | - | ||||||
| Liabilities and Stockholders’ Deficiency | ||||||||
| Liabilities | ||||||||
| Accounts payable | 36,000 | 28,000 | ||||||
| Due to stockholder | 24,999 | 9,405 | ||||||
| Total Liabilities | 60,999 | 37,405 | ||||||
| Stockholders’ deficiency: | ||||||||
| Preferred Stock, $0.0001 par value, 10,000,000 shares authorized; none issued or outstanding | - | - | ||||||
| Common stock, $0.0001 par value, 75,000,000 shares authorized; 3,000,000 issued and outstanding | 300 | 300 | ||||||
| Additional paid-in-capital | 55,396 | 55,396 | ||||||
| Accumulated deficit | (116,695 | ) | (93,101 | ) | ||||
| Total stockholders’ deficiency | $ | (60,999 | ) | $ | (37,405 | ) | ||
| Total liabilities and stockholders’ deficiency | $ | - | $ | - | ||||
See accompanying notes to the unaudited financial statements.
| 3 |
Pinkbrick Holdings Inc.
Condensed Statements of Operations
(unaudited)
| Three Months Ended August 31, | Nine Months Ended August 31, | |||||||||||||||
| 2017 | 2016 | 2017 | 2016 | |||||||||||||
| Revenues | ||||||||||||||||
| Income | $ | - | $ | - | $ | - | $ | - | ||||||||
| Expenses | ||||||||||||||||
| Legal and professional fees | 6,743 | 5,860 | 23,594 | 7,060 | ||||||||||||
| General and administrative | - | 3,000 | - | 12,000 | ||||||||||||
| Filing fees | - | 1,280 | - | 2,208 | ||||||||||||
| Total expenses | 6,743 | 10,140 | 23,594 | 21,268 | ||||||||||||
| Net loss | $ | (6,743 | ) | $ | (10,140 | ) | $ | (23,594 | ) | $ | (21,268 | ) | ||||
| Per share data: | ||||||||||||||||
| Basic and diluted loss per common share | $ | 0.00 | $ | 0.00 | $ | (0.01 | ) | $ | (0.01 | ) | ||||||
| Basic and diluted weighted average common shares outstanding | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 | ||||||||||||
See accompanying notes to the unaudited financial statements.
| 4 |
Pinkbrick Holdings Inc.
Condensed Statements of Cash Flows
(unaudited)
| Nine Months Ended August 31, | ||||||||
| 2017 | 2016 | |||||||
| Cash flows from operating activities: | ||||||||
| Net loss | $ | (23,594 | ) | $ | (21,268 | ) | ||
| Adjustments needed to reconcile excess of expenses over revenues to net cash used in operating activities: | ||||||||
| Change in current assets and liabilities Increase in accounts payable | 8,000 | 4,170 | ||||||
| Net cash flows used in operating activities | (15,594 | ) | (17,098 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Capital contributions | - | 17,098 | ||||||
| Increase in due to stockholder | 15,594 | |||||||
| Net cash flows provided by financing activities | 15,594 | 17,098 | ||||||
| Net increase in cash | $ | - | $ | - | ||||
| Cash beginning of the period | - | - | ||||||
| Cash end of the period | $ | - | $ | - | ||||
See accompanying notes to the unaudited financial statements.
| 5 |
Pinkbrick Holdings, Inc.
Condensed Statement of Stockholders’ Deficiency
(unaudited)
| Preferred | Common | Additional | Total | |||||||||||||||||||||||||
| Stock | Stock | Paid-in | Accumulated | Stockholders’ | ||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | Capital | Deficit | Deficiency | ||||||||||||||||||||||
| Balance, December 1, 2015 | - | $ | - | 3,000,000 | $ | 300 | $ | 38,298 | $ | (61,428 | ) | $ | (22,830 | ) | ||||||||||||||
| Expenses paid by stockholder | - | - | - | - | 17,098 | - | 17,098 | |||||||||||||||||||||
| Net loss | - | - | - | - | - | (31,673 | ) | (31,673 | ) | |||||||||||||||||||
| Balance, December 1, 2016 | - | - | 3,000,000 | 300 | 55,396 | (93,101 | ) | (37,405 | ) | |||||||||||||||||||
| Net loss | - | - | - | - | - | (23,594 | ) | (23,594 | ) | |||||||||||||||||||
| Balance, August 31, 2017 | - | $ | - | 3,000,000 | $ | 300 | $ | 55,396 | $ | (116,695 | ) | $ | (60,999 | ) | ||||||||||||||
See accompanying notes to the unaudited financial statements.
| 6 |
Pinkbrick Holdings Inc.
| 1. | Organization and Description of Business |
Pinkbrick Holdings Inc. (the “Company”) is a Delaware corporation formed as a vehicle to pursue a business combination.
Going Concern
As reflected in the accompanying unaudited condensed financial statements, the Company has minimal operations, used cash in operating activities of $15,594 and has a net loss of $23,594 for the nine months ended August 31, 2017. The Company also has a working capital deficit and stockholders’ deficit of $60,999 as of August 31, 2017. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. The unaudited condensed financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
Management believes that actions presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern.
| 2. | Significant Accounting Policies |
Basis of Presentation
The unaudited financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 8-01 of Regulation S-X. They do not include all information and notes required by generally accepted accounting principles for complete financial statements, in the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended August 31, 2017 are not necessarily indicative of the results that may be expected for any other interim period or the entire year. For further information, these unaudited financial statements and the related notes should be read in conjunction with the Company’s audited financial statements for the year ended November 30, 2016, included in the Company’s annual report on Form 10-K, as filed with the Securities and Exchange Commission.
Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
| Cash |
Cash includes funds held in the Company’s bank accounts.
Uninsured Cash Balances
Cumulative balances in excess of $250,000 for 2017 per institution are not covered by the Federal Deposit Insurance Company. At August 31, 2017 the interest bearing deposits which exceeded the federal depository coverage were approximately $0.
Preferred and Common Stock
The Preferred Stock of the Company may be issued by the Board of Directors of the Company in one or more classes or one or more series within any class and such classes or series shall have such voting powers, full or limited, or no voting powers, and such designations, preferences, limitations or restrictions as the Board of Directors of the Company may determine, from time to time. Holders of shares of Common Stock shall be entitled to cast one vote for each share held at all stockholders meetings for all purposes, including the election of directors.
Income Taxes
The Company accounts for income taxes pursuant to the asset and liability method which requires deferred tax assets and liabilities be computed annually for temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities.
The Company has no unrecognized tax benefits at August 31, 2017.
| 7 |
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This section and other parts of this Quarterly Report on Form 10-Q contain forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Forward-looking statements provide current expectations of future events based on certain assumptions and include any statement that does not directly relate to any historical or current fact. Forward-looking statements can also be identified by words such as “future,” “anticipates,” “believes,” “estimates,” “expects,” “intends,” “plans,” “predicts,” “will,” “would,” “could,” “can,” “may,” and similar terms. Forward-looking statements are not guarantees of future performance and the Company’s actual results may differ significantly from the results discussed in the forward-looking statements. The following discussion of our financial condition and results of operations should be read in conjunction with our unaudited financial statements and notes thereto, included elsewhere in this Quarterly Report on Form 10-Q. Unless otherwise stated, references to particular years, quarters, months or periods refer to the Company’s fiscal years ended in November and the associated quarters, months and periods of those fiscal years. This discussion should not be construed to imply that the results discussed herein will necessarily continue into the future, or that any conclusion reached herein will necessarily be indicative of actual operating results in the future. The Company assumes no obligation to revise or update any forward-looking statements for any reason, except as required by law.
Business Overview; Plan of Operation in the Next Twelve Months
Pinkbrick Holdings, Inc. (“we,” “us,” “our” or the “Company”) was organized as a vehicle to investigate and, if such investigation warrants, acquire a target company or business seeking the perceived advantages of being a publicly held corporation. Our principal business objective for the next 12 months and beyond such time is to achieve long-term growth potential through a combination with a business rather than immediate, short-term earnings. We will not restrict our potential candidate target companies to any specific business, industry or geographical location and, thus, may acquire any type of business.
We do not currently engage in any business activities that provide cash flow. The costs of investigating and analyzing business combinations for the next 12 months and beyond such time will be paid with money in our treasury, if any, or with additional money contributed by our management, stockholders or another source. The Company, based on current business activities, is a “blank check” company. The Securities and Exchange Commission (the “SEC”) defines those companies as “any development stage company that is issuing a penny stock, within the meaning of Section 3(a)(51) of the Securities Exchange Act 1934, as amended (the “Exchange Act”), and that has no specific business plan or purpose, or has indicated that its business plan is to merge with an unidentified company or companies.” Many states have enacted statutes, rules and regulations limiting the sale of securities of “blank check” companies in their respective jurisdictions. The Company is also a “shell company,” as defined in Rule 12b-2 under the Exchange Act as a company with no or nominal assets (other than cash) and no or nominal operations. Management does not intend to undertake any efforts to cause a market to develop in our securities, either debt or equity, until we have successfully concluded a business combination. The Company intends to comply with the periodic reporting requirements of the Exchange Act for so long as we are subject to those requirements.
During the next 12 months, we anticipate incurring costs related to filing of Exchange Act reports and costs relating to consummating a business combination. We believe we will be able to meet these costs through use of funds in our treasury and additional amounts, as necessary, to be loaned to or invested in us by our stockholders, management or other investors.
We may consider a business combination with a business which has recently commenced operations, is a developing company in need of additional funds for expansion into new products or markets, is seeking to develop a new product or service, or is an established business which may be experiencing financial or operating difficulties and is in need of additional capital. In the alternative, a business combination may involve the acquisition of, or merger with, a company which does not need substantial additional capital, but which desires to establish a public trading market for its shares, while avoiding, among other things, the time delays, significant expense, and loss of voting control which may occur in a public offering.
Our management has not had any preliminary contact or discussions with any representative of any other entity regarding a business combination with us. Any target business that is selected may be a financially unstable company or an entity in its early stages of development or growth, including entities without established records of sales or earnings. In that event, we will be subject to numerous risks inherent in the business and operations of financially unstable or early stage or potential emerging growth companies. In addition, we may effect a business combination with an entity in an industry characterized by a high level of risk, and, although our management will endeavor to evaluate the risks inherent in a particular target business, there can be no assurance that we will properly ascertain or assess all significant risks.
| 8 |
Our management anticipates that we will likely be able to effect only one business combination, due primarily to our limited financing, and the dilution of interest for present and prospective stockholders, which is likely to occur as a result of our management’s plan to offer a controlling interest to a target business in order to achieve a tax-free reorganization. This lack of diversification should be considered a substantial risk in investing in us, because it will not permit us to offset potential losses from one venture against gains from another.
We anticipate that the selection of a business combination will be complex and extremely risky. Because of general economic conditions, rapid technological advances being made in some industries and shortages of available capital, our management believes that there are numerous firms seeking even the limited additional capital that we will have and/or the perceived benefits of becoming a publicly traded corporation. Such perceived benefits of becoming a publicly traded corporation include, among other things, facilitating or improving the terms on which additional equity financing may be obtained, providing liquidity for the principals of, and investors in, a business, creating a means for providing incentive stock options or similar benefits to key employees, and offering greater flexibility in structuring acquisitions, joint ventures and the like through the issuance of stock. Potentially available business combinations may occur in many different industries and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex.
Until revenue is recognized by the Company, any and all expenses will be paid for by shareholders’ loans. There will no longer be capital contributions commencing on or after November 30, 2016.
Results of Operations
Three and Nine Months Ended August 31, 2017 Compared to Three and Nine Months Ended August 31, 2016
We have not earned any revenues since our inception in November 2014. We do not anticipate earning revenues until such time as we are able to enter into a business combination.
We incurred total expenses in the amount of $6,743 for the three months ended August 31, 2017, compared with $10,140 for the three months ended August 31, 2016. We incurred operating expenses in the amount of $23,594 for the nine months ended August 31, 2017, compared with $21,268 for the nine months ended August 31, 2016. The entire amount for all periods was attributable to general and administrative expenses, principally costs associated with SEC filings.
We incurred a net loss of $6,743 for the three months ended August 31, 2017, compared with $10,140 for the three months ended August 31, 2016. We incurred a net loss of $23,594 for the nine months ended August 31, 2017, compared to a net operating loss of $21,268 for the nine months ended August 31, 2016.
Liquidity and Capital Resources
As of August 31, 2017, we had $0 in total assets, $60,999 in liabilities and $(60,999) in working capital. We currently do not engage, nor do we intend to engage, in any business activities that provide cash flow until we enter into a successful business combination. The Company does not have sufficient cash for the next 12 months as of the date of this filing.
In its February 24, 2017 report, our independent registered public accounting firm expressed substantial doubt about our ability to continue as a going concern. Our financial statements do not include any adjustments that might result from the outcome of this uncertainty.
We expect that our management and the Company, through its various contacts and affiliations with other entities, will locate a business combination target. We expect that funds in the amount of approximately $30,000 will be required in order for the Company to satisfy its Exchange Act reporting requirements during the next 12 months, in addition to any other funds that will be required in order to complete a business combination. Such funds can only be estimated upon identifying a business combination target. Our management and stockholders have indicated an intent to advance funds on behalf of the Company as needed in order to accomplish its business plan and comply with its Exchange Act reporting requirements, however, there are no agreements in effect between the Company and our management or stockholders specifically requiring they provide any funds to the Company. Therefore, there are no assurances that the Company will be able to obtain the required financing as needed in order to consummate a business combination transaction.
Off-Balance Sheet Arrangements
As of August 31, 2017, there were no off-balance sheet arrangements.
| 9 |
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.
Item 4. CONTROLS AND PROCEDURES.
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed pursuant to the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules, regulations and related forms, and that such information is accumulated and communicated to our principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure.
As of August 31, 2017, we carried out an evaluation, under the supervision and with the participation of our principal executive officer and our principal financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures. Based on this evaluation, our principal executive officer and our principal financial officer concluded that our disclosure controls and procedures were not effective as of the end of the period covered by this report. This was due to our status as a shell company and our limited resources, including the absence of a financial staff with accounting and financial expertise.
Changes in Internal Control over Financial Reporting
There have been no changes in our internal control over financial reporting during the quarter ended August 31, 2017, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
We know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, officers or affiliates, or any registered or beneficial shareholder, is an adverse party or has a material interest adverse to our interest.
Not applicable to smaller reporting companies.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
There have been no material changes to the procedures by which security holders may recommend nominees to our Board of Directors since the filing of our quarterly report on Form 10-Q for the fiscal quarter ended May 31, 2017.
Exhibit No. |
Description of Exhibit | |
| 31.1 | Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act Of 2002. | |
| 32.1 | Certification of Principal Executive Officer and Principal Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley Act Of 2002. | |
| 101.INS | XBRL INSTANCE DOCUMENT | |
| 101.SCH | XBRL TAXONOMY EXTENSION SCHEMA | |
| 101.CAL | XBRL TAXONOMY EXTENSION CALCULATION LINKBASE | |
| 101.DEF | XBRL TAXONOMY EXTENSION DEFINITION LINKBASE | |
| 101.LAB | XBRL TAXONOMY EXTENSION LABEL LINKBASE | |
| 101.PRE | XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE |
| 10 |
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.
| PINKBRICK HOLDINGS INC. | ||
| Dated: December 1, 2017 | By: | /s/ Leonard Schiller |
| Leonard Schiller | ||
| President (principal executive officer, principal financial officer and principal accounting officer) | ||
| 11 |
Exhibit 31.1
CERTIFICATIONS
I, Leonard Schiller, certify that:
1. I have reviewed this quarterly report on Form 10-Q for the fiscal quarter ended August 31, 2017 of Pinkbrick Holdings Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
Date: December 1, 2017
| /s/ Leonard Schiller | |
| Leonard Schiller | |
| President (principal executive officer and principal financial officer) |
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 on Form 10-Q of Pinkbrick Holdings Inc. (the “Company”) for the fiscal quarter ended August 31, 2017 as filed with the Securities and Exchange Commission (the “Report”), I, Leonard Schiller, President of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:
1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
2. The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
| Date: December 1, 2017 | /s/ Leonard Schiller |
| Leonard Schiller, President (principal executive officer and principal financial officer) |
This certification accompanies this Quarterly Report on Form 10-Q pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by such Act, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Such certification will not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act, except to the extent that the Company specifically incorporates it by reference.
Document and Entity Information - shares |
9 Months Ended | |
|---|---|---|
Aug. 31, 2017 |
Dec. 01, 2017 |
|
| Document And Entity Information [Abstract] | ||
| Entity Registrant Name | Pinkbrick Holdings Inc. | |
| Entity Central Index Key | 0001628175 | |
| Document Type | 10-Q | |
| Document Period End Date | Aug. 31, 2017 | |
| Amendment Flag | false | |
| Current Fiscal Year End Date | --11-30 | |
| Entity Filer Category | Smaller Reporting Company | |
| Entity Common Stock, Shares Outstanding | 3,000,000 | |
| Document Fiscal Period Focus | Q3 | |
| Document Fiscal Year Focus | 2017 |
Condensed Balance Sheets (Unaudited) - USD ($) |
Aug. 31, 2017 |
Nov. 30, 2016 |
|---|---|---|
| Assets | ||
| Cash | ||
| Total assets | 0 | 0 |
| Liabilities | ||
| Accounts payable | 36,000 | 28,000 |
| Due to stockholder | 24,999 | 9,405 |
| Total Liabilities | 60,999 | 37,405 |
| Stockholders' deficiency: | ||
| Preferred Stock, $0.0001 par value, 10,000,000 shares authorized; none issued or outstanding | ||
| Common stock, $0.0001 par value, 75,000,000 shares authorized; 3,000,000 issued and outstanding | 300 | 300 |
| Additional paid-in-capital | 55,396 | 55,396 |
| Accumulated deficit | (116,695) | (93,101) |
| Total stockholders' deficiency | (60,999) | (37,405) |
| Total liabilities and stockholders' deficiency | $ 0 | $ 0 |
Condensed Balance Sheets (Unaudited) (Parenthetical) - $ / shares |
Aug. 31, 2017 |
Nov. 30, 2016 |
|---|---|---|
| Statement of Financial Position [Abstract] | ||
| Preferred stock, par value | $ 0.0001 | $ 0.0001 |
| Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
| Preferred stock, shares issued | ||
| Preferred stock, shares outstanding | ||
| Common stock, par value | $ 0.0001 | $ 0.0001 |
| Common stock, shares authorized | 75,000,000 | 75,000,000 |
| Common stock, shares issued | 3,000,000 | 3,000,000 |
| Common stock, shares outstanding | 3,000,000 | 3,000,000 |
Condensed Statements of Operations (Unaudited) - USD ($) |
3 Months Ended | 9 Months Ended | ||
|---|---|---|---|---|
Aug. 31, 2017 |
Aug. 31, 2016 |
Aug. 31, 2017 |
Aug. 31, 2016 |
|
| Revenues | ||||
| Income | ||||
| Expenses | ||||
| Legal and professional fees | 6,743 | 5,860 | 23,594 | 7,060 |
| General and administrative | 3,000 | 12,000 | ||
| Filing fees | 1,280 | 2,208 | ||
| Total expenses | 6,743 | 10,140 | 23,594 | 21,268 |
| Net loss | $ (6,743) | $ (10,140) | $ (23,594) | $ (21,268) |
| Per share data: | ||||
| Basic and diluted loss per common share | $ 0.00 | $ 0.00 | $ (0.01) | $ (0.01) |
| Basic and diluted weighted average common shares outstanding | 3,000,000 | 3,000,000 | 3,000,000 | 3,000,000 |
Condensed Statements of Cash Flows (Unaudited) - USD ($) |
9 Months Ended | |
|---|---|---|
Aug. 31, 2017 |
Aug. 31, 2016 |
|
| Cash flows from operating activities: | ||
| Net loss | $ (23,594) | $ (21,268) |
| Change in current assets and liabilities | ||
| Increase in accounts payable | 8,000 | 4,170 |
| Net cash flows used in operating activities | (15,594) | (17,098) |
| Cash flows from financing activities: | ||
| Capital contributions | 17,098 | |
| Increase in due to stockholder | 15,594 | |
| Net cash flows provided by finanacing activities | 15,594 | 17,098 |
| Net increase in cash | ||
| Cash beginning of the period | ||
| Cash end of the period | ||
Condensed Statement of Stockholders’ Deficiency (Unaudited) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |
|---|---|---|---|---|
Aug. 31, 2017 |
Aug. 31, 2017 |
Aug. 31, 2016 |
Nov. 30, 2016 |
|
| Preferred Stock [Member] | ||||
| Balance | ||||
| Balance, Shares | ||||
| Expenses paid by stockholder | ||||
| Net loss | ||||
| Balance | ||||
| Balance, Shares | ||||
| Common Stock [Member] | ||||
| Balance | $ 300 | $ 300 | $ 300 | |
| Balance, Shares | 3,000,000 | 3,000,000 | 3,000,000 | |
| Expenses paid by stockholder | ||||
| Net loss | ||||
| Balance | $ 300 | $ 300 | $ 300 | |
| Balance, Shares | 3,000,000 | 3,000,000 | 3,000,000 | |
| Additional Paid-in Capital [Member] | ||||
| Balance | $ 55,396 | $ 38,298 | $ 38,298 | |
| Balance, Shares | ||||
| Expenses paid by stockholder | $ 17,098 | |||
| Net loss | ||||
| Balance | $ 55,396 | $ 55,396 | $ 55,396 | |
| Balance, Shares | ||||
| Accumulated Deficit [Member] | ||||
| Balance | $ (93,101) | $ (61,428) | $ (61,428) | |
| Balance, Shares | ||||
| Expenses paid by stockholder | ||||
| Net loss | $ (23,594) | (31,673) | ||
| Balance | $ (116,695) | $ (116,695) | $ (93,101) | |
| Balance, Shares | ||||
| Balance | $ (37,405) | $ (22,280) | $ (22,280) | |
| Balance, Shares | ||||
| Expenses paid by stockholder | $ 17,098 | |||
| Net loss | $ (6,743) | $ (23,594) | $ (21,268) | (31,673) |
| Balance | $ (60,999) | $ (60,999) | $ (37,405) | |
| Balance, Shares | ||||
Organization and Description of Business |
9 Months Ended | ||
|---|---|---|---|
Aug. 31, 2017 | |||
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
| Organization and Description of Business |
Pinkbrick Holdings Inc. (the “Company”) is a Delaware corporation formed as a vehicle to pursue a business combination.
Going Concern
As reflected in the accompanying unaudited condensed financial statements, the Company has minimal operations, used cash in operating activities of $15,594 and has a net loss of $23,594 for the nine months ended August 31, 2017. The Company also has a working capital deficit and stockholders’ deficit of $60,999 as of August 31, 2017. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. The unaudited condensed financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
Management believes that actions presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern. |
Significant Accounting Policies |
9 Months Ended | ||||
|---|---|---|---|---|---|
Aug. 31, 2017 | |||||
| Accounting Policies [Abstract] | |||||
| Significant Accounting Policies |
Basis of Presentation
The unaudited financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 8-01 of Regulation S-X. They do not include all information and notes required by generally accepted accounting principles for complete financial statements, in the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended August 31, 2017 are not necessarily indicative of the results that may be expected for any other interim period or the entire year. For further information, these unaudited financial statements and the related notes should be read in conjunction with the Company’s audited financial statements for the year ended November 30, 2016, included in the Company’s annual report on Form 10-K, as filed with the Securities and Exchange Commission.
Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash includes funds held in the Company’s bank accounts.
Uninsured Cash Balances
Cumulative balances in excess of $250,000 for 2017 per institution are not covered by the Federal Deposit Insurance Company. At August 31, 2017 the interest bearing deposits which exceeded the federal depository coverage were approximately $0.
Preferred and Common Stock
The Preferred Stock of the Company may be issued by the Board of Directors of the Company in one or more classes or one or more series within any class and such classes or series shall have such voting powers, full or limited, or no voting powers, and such designations, preferences, limitations or restrictions as the Board of Directors of the Company may determine, from time to time. Holders of shares of Common Stock shall be entitled to cast one vote for each share held at all stockholders meetings for all purposes, including the election of directors.
Income Taxes
The Company accounts for income taxes pursuant to the asset and liability method which requires deferred tax assets and liabilities be computed annually for temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities.
The Company has no unrecognized tax benefits at August 31, 2017. |
Significant Accounting Policies (Policies) |
9 Months Ended | ||
|---|---|---|---|
Aug. 31, 2017 | |||
| Accounting Policies [Abstract] | |||
| Basis of Presentation |
Basis of Presentation
The unaudited financial statements included herein have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10-Q and Rule 8-01 of Regulation S-X. They do not include all information and notes required by generally accepted accounting principles for complete financial statements, in the opinion of management, all adjustments (including normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three and nine months ended August 31, 2017 are not necessarily indicative of the results that may be expected for any other interim period or the entire year. For further information, these unaudited financial statements and the related notes should be read in conjunction with the Company’s audited financial statements for the year ended November 30, 2016, included in the Company’s annual report on Form 10-K, as filed with the Securities and Exchange Commission. |
||
| Use of Estimates |
Use of Estimates
The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, and disclosures of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
||
| Cash |
Cash includes funds held in the Company’s bank accounts. |
||
| Uninsured Cash Balances |
Uninsured Cash Balances
Cumulative balances in excess of $250,000 for 2017 per institution are not covered by the Federal Deposit Insurance Company. At August 31, 2017 the interest bearing deposits which exceeded the federal depository coverage were approximately $0. |
||
| Preferred and Common Stock |
Preferred and Common Stock
The Preferred Stock of the Company may be issued by the Board of Directors of the Company in one or more classes or one or more series within any class and such classes or series shall have such voting powers, full or limited, or no voting powers, and such designations, preferences, limitations or restrictions as the Board of Directors of the Company may determine, from time to time. Holders of shares of Common Stock shall be entitled to cast one vote for each share held at all stockholders meetings for all purposes, including the election of directors. |
||
| Income Taxes |
Income Taxes
The Company accounts for income taxes pursuant to the asset and liability method which requires deferred tax assets and liabilities be computed annually for temporary differences between the financial statement and tax basis of assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities.
The Company has no unrecognized tax benefits at August 31, 2017. |
Organization and Description of Business (Details Narrative) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
|---|---|---|---|---|---|---|
Aug. 31, 2017 |
Aug. 31, 2016 |
Aug. 31, 2017 |
Aug. 31, 2016 |
Nov. 30, 2016 |
Nov. 30, 2015 |
|
| Organization And Description Of Business Details Narrative | ||||||
| Net cash flows used in operating activities | $ 15,594 | $ 17,098 | ||||
| Net loss | $ 6,743 | $ 10,140 | 23,594 | $ 21,268 | $ 31,673 | |
| Stockholders' deficiency | $ 60,999 | $ 60,999 | $ 37,405 | $ 22,280 | ||
Significant Accounting Policies (Details Narrative) |
9 Months Ended |
|---|---|
|
Aug. 31, 2017
USD ($)
| |
| Accounting Policies [Abstract] | |
| Cash federal depository coverage | $ 250,000 |
| Interest bearing deposits which exceeded the federal depository coverage | $ 0 |
| Common stock, voting rights | Holders of shares of Common Stock shall be entitled to cast one vote for each share held at all stockholders meetings for all purposes, including the election of directors. |
| Unrecognized tax benefits |
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