Quarterly Report (10-q)

Date : 12/20/2016 @ 2:04PM
Source : Edgar (US Regulatory)
Stock : Brk (PC) (BRKK)
Quote : 0.003  0.0 (0.00%) @ 2:05AM
Brk share price Chart

Quarterly Report (10-q)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

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

 

For the quarterly period ended October 31, 2016

 

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

 

From transition period from _______ to _______

 

Commission File No.: ________

 

BRK, INC.

(Exact name of registrant as specified in its charter)

 

Nevada

26-2840468

(State or other jurisdiction of incorporation or organization)

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

 

 

5313 Corbett Street, Las Vegas, Nevada

89130

(Address of principal executive offices)

(Zip Code)

 

(702) 572-8050

(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 x No o

 

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 o 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

 

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

 

As of December 20, 2016, the registrant had 50,333,200 shares of common stock outstanding.

 

 
 
 

TABLE OF CONTENTS

 

PART I – FINANCIAL INFORMATION

 

Item 1:

Financial Statements

 

4

 

Balance Sheets (Unaudited) as of October 31, 2016, and April 30, 2016

 

5

 

Statements of Operations (Unaudited) for the Three and Six Months Ended October 31, 2016 and 2015

 

6

 

Statements of Cash Flows (Unaudited) for the Six Months Ended October 31, 2016 and 2015

 

7

 

Notes to Financial Statements (Unaudited)

 

8

Item 2:

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

 

11

Item 3:

Quantitative and Qualitative Disclosures about Market Risk

 

12

Item 4T:

Controls and Procedures

 

12

 

PART II – OTHER INFORMATION

 

 

Item 1:

Legal Proceedings

 

13

Item 1A:

Risk Factors

 

13

Item 2:

Unregistered Sales of Securities and Use of Proceeds

 

13

Item 3:

Default upon Senior Securities

 

13

Item 4:

Mine Safety Information

 

13

Item 5:

Other information

 

13

Item 6:

Exhibits

 

14

 

 

 

 

 

Signatures

 

15

 

 
2
 

 

Reference in this report to “BRK” “we,” “us,” and “our” refer to BRK, Inc.

 

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

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

 

3
Table of Contents

 

PART I – FINANCIAL INFORMATION

 

ITEM 1: FINANCIAL STATEMENTS

 

The financial information set forth below with respect to our statements of operations for the three and six months ended October 31, 2016 and 2015 is unaudited. This financial information, in the opinion of management, includes all adjustments consisting of normal recurring entries necessary for the fair presentation of such data. The results of operations for the three and six months ended October 31, 2016, are not necessarily indicative of results to be expected for any subsequent period. Our year end is April 30.

 

 
4
Table of Contents


BRK, INC.

BALANCE SHEETS

(Unaudited)

 

 

 

October 31,

 

 

April 30,

 

 

 

2016

 

 

2016

 

ASSETS

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Cash and cash equivalents

 

$ 1,634

 

 

$ 4,612

 

Inventory

 

 

100,000

 

 

 

808

 

Prepaid

 

 

7,000

 

 

 

-

 

Total current assets

 

 

108,634

 

 

 

5,420

 

 

 

 

 

 

 

 

 

 

Fixed assets

 

 

 

 

 

 

 

 

Production equipment, net of accumulated depreciation of $21,862 and $18,835, respectively

 

 

2,028

 

 

 

5,055

 

Other asset

 

 

 

 

 

 

 

 

Intangible assets, net of accumulated amortization of $51,799 and $0, respectively

 

 

1,548,201

 

 

 

-

 

 

 

 

 

 

 

 

 

 

Total assets

 

$ 1,658,863

 

 

$ 10,475

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

Accounts payable and accrued expense

 

$ 29,454

 

 

$ 18,264

 

Accrued compensation - related party

 

 

113,390

 

 

 

99,950

 

Convertible notes payable - related party

 

 

7,089

 

 

 

7,089

 

Convertible notes payable

 

 

115,500

 

 

 

115,500

 

Short term debt - related party

 

 

217,565

 

 

 

86,540

 

Short term debt

 

 

44,900

 

 

 

44,900

 

Total current liabilities

 

 

527,898

 

 

 

372,243

 

 

 

 

 

 

 

 

 

 

Stockholders’ equity (deficit)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred shares, par value $0.001, 1,000,000 shares authorized; none issued and outstanding as of October 31, 2016, and April 30, 2016

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

Common stock, par value $0.001, 100,000,000 shares authorized, 50,083,200 and 43,083,200 issued and outstanding as of October 31, 2016, and April 30, 2016 respectively

 

 

50,083

 

 

 

43,083

 

Additional paid-in capital

 

 

2,243,967

 

 

 

(9,033 )

Accumulated deficit

 

 

(1,163,085 )

 

 

(395,818 )

Total stockholders’ equity (deficit)

 

 

1,130,965

 

 

 

(361,768 )

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity (deficit)

 

$ 1,658,863

 

 

$ 10,475

 

 

The accompanying notes are an integral part of the unaudited financial statements.

 

 
5
Table of Contents


BRK, INC.

STATEMENTS OF OPERATIONS

FOR PERIODS ENDED OCTOBER 31,

(Unaudited)

 

 

 

Three Months

 

 

Six Months

 

 

 

2016

 

 

2015

 

 

2016

 

 

2015

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

685,269

 

 

 

14,146

 

 

 

709,527

 

 

 

33,832

 

Depreciation and amortization

 

 

27,676

 

 

 

705

 

 

 

54,826

 

 

 

2,022

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

 

 

(712,945 )

 

 

(14,851 )

 

 

(764,353 )

 

 

(35,854 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(1,457 )

 

 

(1,020 )

 

 

(2,914 )

 

 

(2,040 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

 

$ (714,402 )

 

$ (15,871 )

 

$ (767,267 )

 

$ (37,894 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per common share basic and diluted

 

$ (0.01 )

 

$ (0.00 )

 

$ (0.02 )

 

$ (0.00 )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding: basic and diluted

 

 

48,202,765

 

 

 

43,083,200

 

 

 

48,039,722

 

 

 

43,083,200

 

 

The accompanying notes are an integral part of the unaudited financial statements.

 

 
6
Table of Contents

 

BRK, INC.

STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Six Months Ended October 31,

 

 

 

2016

 

 

2015

 

Cash Flows From Operating Activities:

 

 

 

 

 

 

Net loss

 

$ (767,267 )

 

$ (37,894 )

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

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

54,826

 

 

 

2,022

 

Stock based compensation

 

 

660,000

 

 

 

-

 

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Increase in inventory

 

 

(99,192 )

 

 

-

 

Increase in prepaid

 

 

(7,000 )

 

 

-

 

Increase in accounts payable and accrued expense

 

 

11,190

 

 

 

3,990

 

Increase in accrued compensation - related party

 

 

13,440

 

 

 

13,960

 

 

 

 

 

 

 

 

 

 

Net cash used in operating activities

 

 

(134,003 )

 

 

(17,922 )

 

 

 

 

 

 

 

 

 

Cash Flows From Financing Activities:

 

 

 

 

 

 

 

 

Proceeds from notes payable - related party

 

 

131,150

 

 

 

18,000

 

Principal payments on debt - related party

 

 

(150 )

 

 

-

 

 

 

 

 

 

 

 

 

 

Net cash provided by financing activities

 

 

131,025

 

 

 

18,000

 

 

 

 

 

 

 

 

 

 

Net change in cash

 

 

(2,978 )

 

 

78

 

Cash at beginning of period

 

 

4,612

 

 

 

1,047

 

Cash at end of period

 

$ 1,634

 

 

$ 1,125

 

 

 

 

 

 

 

 

 

 

SUPPLEMENT DISCLOSURE

 

 

 

 

 

 

 

 

Interest paid

 

$ -

 

 

$ -

 

Income taxes paid

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

NON CASH TRANSACTIONS

 

 

 

 

 

 

 

 

Common stock issued for intangible assets

 

$ 1,600,000

 

 

$ -

 

 

The accompanying notes are an integral part of the unaudited financial statements.

 

 
7
Table of Contents

 

BRK, INC.

NOTES TO FINANCIAL STATEMENTS

(Unaudited)

 

NOTE 1 – BASIS OF PRESENTATION AND ORGANIZATION

 

BRK, Inc. (“BRK” or the “Company”) was incorporated on May 22, 2008 as a Nevada corporation. The Company has developed a product for the repair of hanging venetian blinds. As part of this development the Company has completed the development and is building a machine to make the parts for blind repair that it is selling. The development and testing of the machine was completed with limited production following and the Company reduced its work in the blind repair kit market space.

 

On May 6, 2016, the Company acquired intangible assets from ISee Automation for 5,000,000 shares of common stock with a fair market value of $1,600,000 based on the Company’s stock price at the date of issuance. The intangible assets consist of a patent application and related know-how technology and plan for commercialization related to the placement of video cameras and supporting equipment into helmets used by various athletics such as hockey. Life video can then be transmitted from the player’s helmet in real time for display on sports events broadcasts. The Company is in the process of receiving models produced by a third party and developing a marketing strategy for the devise.

 

Basis of Presentation

 

The accompanying unaudited financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q. Accordingly, they do not include all of the information required to be included in a complete set of financial statements in accordance with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. Operating results for the six months ended October 31, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending April 30, 2017. The accompanying unaudited financial statements should be read in conjunction with the financial statements and related notes included in the Company’s 2016 Annual Report filed with the SEC on July 29, 2016.

 

Forward Stock Split

 

On December 21, 2015, the Company filed, with the Secretary of State of the State of Nevada, a Certificate of Change, effecting a ten-for-one (10:1) forward split of the Company's issued and outstanding shares of common. The forward split took effect on the over-the counter markets on January 12, 2016. The number of shares, issued and outstanding and the weighted average for 2015 has been adjusted to reflect the forward stock split.

 

Inventory

 

Inventories are stated at the lower of cost of market using the first-in, first-out (FIFO) cost method of accounting. As of October 31, 2016, the Company had $100,000 of inventory consisting of parts and finished helmet with video cameras.

 

Property, Equipment and Intangible Assets

 

Property and equipment are carried at cost, less accumulated depreciation. Additions are capitalized and maintenance and repairs are charged to expense as incurred. Intangible assets consist of a patent application purchased and is carried at cost, less accumulated amortization. Depreciation and amortization is provided principally on the straight-line basis method over the estimated useful lives of the assets. Patent applications submitted after June 8, 1995 have duration of 20 years. Due to the potential changes in technology the Company has elected to amortize the patent application over 15 years.

 

 
8
Table of Contents

 

NOTE 2 GOING CONCERN

 

As shown in the accompanying financial statements, BRK has an accumulated deficit of $1,163,085 and negative working capital of $419,264 as of October 31, 2016. Unless profitability and increases in stockholders’ equity continues, these conditions raise substantial doubt as to BRK’s ability to continue as a going concern. The October 31, 2016 financial statements do not include any adjustments that might be necessary if BRK is unable to continue as a going concern.

 

NOTE 3 – RELATED PARTY TRANSACTIONS

 

During the six months ended October 31, 2016, the Company recorded $15,325 in compensation payable to the President. As of October 31, 2016, $113,390 was due to the President.

 

On May 6, 2016, the Company acquired a patent from ISee Automation for 5,000,000 shares of common stock with a fair value of $1,600,000. Upon the issuance of the shares ISee became a related party.

 

On May 18, 2016, the Company issued a note for $10,000 in cash to a related party. The note is due on demand and bears an interest rate of 8% per annum.

 

On June 24, 2016, the Company repaid $125 on a note payable issued to a related party.

 

On July 1, 2016, the Company issued a note for $3,000 in cash to a related party. The note is due on demand and bears no interest.

 

On July 22, 2016, the Company issued a note for $5,000 in cash to a related party. The note is due on demand and bears no interest.

 

On August 26, 2016, the Company issued a note for $25,000 in cash to a related party. The note is due on demand and bears no interest.

 

On August 31, 2016, the Company issued a note for $16,500 in cash to a related party. The note is due on demand and bears no interest.

 

On September 14, 2016, the Company issued a note for $37,000 in cash to a related party. The note is due on demand and bears no interest.

 

On September 14, 2016, the Company issued a note for $29,000 in cash to a related party. The note is due on demand and bears no interest

 

On September 27, 2016, the Company issued a note for $4,650 in cash to a related party. The note is due on demand and bears no interest

 

On October 3, 2016, the Company issued a note for $1,000 in cash to a related party. The note is due on demand and bears no interest.

 

As of October 31, 2016, the balance of notes payable due to related party was $217,565.

 

 
9
Table of Contents

 

NOTE 4 EQUITY

 

On May 6, 2016, the Company acquired intangible assets from ISee Automation for 5,000,000 shares of common stock with a fair market value of $1,600,000 based on the Company’s stock price at the date of issuance.

 

The assets are carried at cost, less accumulated amortization. Amortization is provided principally on the straight-line basis method over the estimated useful lives of 15 years. For the six months ended October 31, 2016 the Company recorded amortization of $51,799.

 

On October 20, 2016, the Company completed two separate consulting agreement with two entities. Both agreements are for a term of one year with the combined compensation being 2,000,000 shares of common stock issued at fair value of $0.33 per share for a total value of $660,000. Per the agreements, the shares were deemed earned at the date of the agreement and thus expensed in the period ended October 31, 2016

 

NOTE 5 – COMMITMENTS AND CONTINGENCIES

 

On February 21, 2016, the Company signed a worldwide license agreement to manufacture and distribute the O2Trainer. The product is used by individuals in physical training. The Company will pay a 10% royalty on all sales through February 21, 2026. As of October 31, 2016, there have been no sales of the product.

 

NOTE 6 SUBSEQUENT EVENTS

 

On November 10, 2016, the Company issued a secured promissory note to an individual for $50,000 with net proceeds after cost of $45,256 in cash. The note matures on February 10, 2017 with an 8% per month interest rate with interest payments of $4,000 payable on December 10, 2016, January 10, 2017, and February 10, 2017. As part of the note agreement the Company will issue 125,000 shares of common stock with a value of $40,000 to the note holder. The note is secured by 2,500,000 shares of common stock in book entry with the Transfer Agent to be cancelled if the note is paid back per the agreement.

 

On November 10, 2016, the Company issued a secured promissory note to an individual for $50,000 with net proceeds after cost of $45,256 cash. The note matures on February 10, 2017 with an 8% per month interest rate with interest payments of $4,000 payable on December 10, 2016, January 10, 2017, and February 10, 2017. As part of the note agreement the Company will issue 125,000 shares of common stock with a value of $40,000 to the note holder. The note is secured by 2,500,000 shares of common stock in book entry with the Transfer Agent to be cancelled if the note is paid back per the agreement.

 

On November 28, 2016, the Company issued a convertible promissory note to an entity with a face value of $53,000 and bearing interest at 12% per annum. The note matures on August 28, 2017. The net proceeds to the company was $46,000 net of legal fees of $2,000 and due diligence fees of $5,000. The note and accrued interest is convertible into common stock of the company at 50% discount to lowest trading price during the 20 days prior to the date of the conversion. The note is secured by 10,000,000 shares of common stock in book entry with the Transfer Agent to be cancelled if the note is paid back per the agreement.

 

On December 1, 2016, the Company issued a convertible note to an entity with a face value of $75,000 bearing interest at 10%. The net proceeds to the Company was $69,000 with legal and due diligence fees of $6,000. The note is due on December 1, 2017 and is convertible at lower of closing price of the common on the trading day preceding the closing date or 55% of the lowest sales price during the 20 preceding days to conversion with a floor of $.00001. The holder of the note can convert the note up to 4.9% of Company’s outstanding common stock. The note is secured by 3,250,000 shares of common stock in book entry with the Transfer Agent to be cancelled if the note is paid back per the agreement. The reserve amount will be increase by a factor of 2 each time the Company enters into a subsequent convertible note.

 

 
10
Table of Contents

 

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

 

Executive Overview

 

BRK Inc. (“BRK” or the “Company”) was incorporated on May 22, 2008 as a Nevada corporation. The Company has developed a product for the repair of hanging venetian blinds. As part of this development the Company has completed the development and is building a machine to make the parts for blind repair that it is selling. The development and testing of the machine was completed with limited production following and the Company reduced its work in the blind repair kit market space.

 

On May 6, 2016, the Company acquired intangible assets from ISee Automation for 5,000,000 shares of common stock with a fair market value of $1,600,000 based on the Company’s stock price at the date of issuance. The  intangible assets consist of a patent application and related know-how technology and plan for commercialization related to the placement of video cameras and supporting equipment into helmets used by various athletics such as hockey. Life video can then be transmitted from the player’s helmet in real time for display on sports events broadcasts. The Company is in the process of receiving models produced by a third party and developing a marketing strategy for the devise.

 

As of the date of this filing we have minimal operations and have no revenues for the past two years. Our focus for the next twelve months will be to obtain additional funding to develop and expand our operations and new projects.Our success will depend on our ability to obtain funding through equity and/or debt transactions. However, with the downturn of the United States and world economies, we will encounter substantial competition for the limited financing that will be available in the market place. If we are unable to obtain financing, then we will likely delay further business development and marketing of our product.

 

In summary, management continues to position the company in a way to best benefit from worldwide economic conditions, trends, events, and demand for new technologies.

 

Liquidity and Capital Resources

 

As of October 31, 2016, we had an accumulated deficit of $1,163,085. We recorded a net loss of $767,267 for the six month period ended October 31, 2016. The net loss was $37,894 for the same period during 2015. Unless profitability and increases in stockholders’ equity continues, these conditions raise substantial doubt as to BRK’s ability to continue as a going concern. Management plans to continue limited operations until we obtain additional funding to expand our operations.

 

Working capital was negative $419,264 as of October 31, 2016, compared to negative $366,823 as of April 30, 2016. Cash used in operations totaled $134,003 during the six-month period ended October 31, 2016 compared to $17,922 during the same period in 2015. Funds provided from financing activities was $131,025 in 2016 compared with funds provided from financing activity of $18,000 in 2015.

 

Management expects to continue to issue debt to finance the Company. The purchasers and manner of issuance will be determined per our financial needs and the available exemptions. We also note that if we issue more shares of our common stock our shareholders may experience dilution in the value per share of their common stock.

 

We intend to rely on debt and equity financing, capital contributions from management and sales of our common stock to pay for costs, services, operating leases, litigation expense and future development of our business opportunities. Accordingly, our focus for the next twelve months will be to obtain additional funding through debt or equity financing. Our success in obtaining funding will depend upon our ability to sell our common stock or borrow on terms that are financially advantageous to us. If we are unable to obtain financing, then expansion of our operations will be delayed.

 

 
11
Table of Contents

 

Results of Operations

 

The Company recorded zero revenue during the three and six month periods ended October 31, 2016 and 2015.

 

General and administrative expenses for the three and six-month period ended October 31, 2016 totaled $685,269 and $709,527 compared to $14,146 and $33,832 for the same periods in 2015. The increase for six-month period in 2016 over 2015 was due to variance in accounting, legal and consulting payments.

 

Depreciation and amortization was $27,676 and $54,826 for the three and six month periods ended October 31, 2016 compared to $705 and $2,022 for the same periods ended October 31, 2015. The depreciation was related to fixed assets consisting of a machine and molds with the mold fully depreciated in 2016 plus amortization for a patent purchased during the year ended October 31, 2016.

 

The Company incurred a net loss of $714,402 and $767,267 in the three and six-month period ended October 31, 2016 compared to $15,871 and $37,894 in the same periods in 2015. The variance in net loss was due to higher amortization cost in the three and six month periods ended October 31, 2016 compared to the same period in 2015.

 

Off-Balance Sheet Arrangements

 

None

 

ITEM 3: QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not applicable.

 

ITEM 4: CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Based on their evaluation of our disclosure controls and procedures(as defined in Rule 13a-15e under the Securities Exchange Act of 1934 the "Exchange Act"), our principal executive officer and principal financial officer have concluded that as of the end of the period covered by this quarterly report on Form 10-Q such disclosure controls and procedures were not effective due to the lack of segregation of duties and lack of a formal review process that includes multiple levels of review to ensure that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms because of the identification of a material weakness in our internal control over financial reporting which we view as an integral part of our disclosure controls and procedures. The material weakness relates to the lack of segregation of duties in financial reporting, as our financial reporting and all accounting functions are performed by an external consultant with no oversight by a professional with accounting expertise. Our CEO/CFO does not possess accounting expertise and our company does not have an audit committee. This weakness is due to the company’s lack of working capital to hire additional staff. To remedy this material weakness, we intend to engage another accountant to assist with financial reporting as soon as our finances will allow.

 

Changes in Internal Control over Financial Reporting

 

Except as noted above, there have been no changes in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 or 15d-15 that occurred during our first quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 
12
Table of Contents

 

PART II – OTHER INFORMATION

 

ITEM 1: LEGAL PROCEEDINGS .

 

None

 

ITEM 1A: RISK FACTORS.

 

There have been no material changes to BRK, Inc.’s risk factors as previously disclosed in our most recent 10-K filing for the year ending April 30, 2016.

 

ITEM 2: SALES OF EQUITY SECURITIES AND USE OF PROCEEDS .

 

None

 

ITEM 3: DEFAULTS UPON SENIOR SECURITIES .

 

None

 

ITEM 4: MINE SAFETY INFORMATION.

 

None

 

ITEM 5: OTHER INFORMATION .

 

None

 

 
13
Table of Contents

 

ITEM 6: EXHIBITS

  

No.

Description

 

 

 

31

Chief Executive Officer Certification

 

 

 

32

Section 1350 Certification

 

 

 

101

 

XBRL Interactive Data Files

 

 
14
Table of Contents

 

SIGNATURES

 

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

 

 

BRK, INC.

 

 

 

Date: December 20, 2016

By :

/s/ Brian Keasberry

 

 

Brian Keasberry

 

 

President

 

 

Chief Executive Officer

 

Principal Financial and Accounting Officer

 

 

15


 

Brk (USOTC:BRKK)
Historical Stock Chart

1 Year : From Nov 2016 to Nov 2017

Click Here for more Brk Charts.

Brk (USOTC:BRKK)
Intraday Stock Chart

Today : Monday 20 November 2017

Click Here for more Brk Charts.

Latest BRKK Messages

{{bbMessage.M_Alias}} {{bbMessage.MSG_Date}} {{bbMessage.HowLongAgo}} {{bbMessage.MSG_ID}} {{bbMessage.MSG_Subject}}

Loading Messages....


No posts yet, be the first! No {{symbol}} Message Board. Create One! See More Posts on {{symbol}} Message Board See More Message Board Posts
Your Recent History
LSE
GKP
Gulf Keyst..
LSE
QPP
Quindell
FTSE
UKX
FTSE 100
LSE
IOF
Iofina
FX
GBPUSD
UK Sterlin..
Stocks you've viewed will appear in this box, letting you easily return to quotes you've seen previously.

Register now to create your own custom streaming stock watchlist.

NYSE, AMEX, and ASX quotes are delayed by at least 20 minutes.
All other quotes are delayed by at least 15 minutes unless otherwise stated.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P:30 V:us D:20171120 11:57:06