UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

 

FORM 10-K

 

x

ANNUAL REPORT PURSANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

 

For the fiscal year ended December 31, 2017

 

Or

 

o

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:  001-35923

AUSCRETE CORPORATION

(Exact name of registrant as specified in its charter)

 

 

Wyoming

 

 27-1692457

 

 

(State of Incorporation)

 

(IRS Employer ID Number)

 

 


                P.O. Box 847, Rufus, OR 97050

(Address of principal executive offices and Zip Code)

 

Registrant s telephone number, including area code (541) 739-8298

Securities registered pursuant to Section 12(b) of the Act:


Title of Each Class

Name of Each Exchange on Which Registered

Common Stock, par value 0.0001

OTCBB Pink


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



Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ¨   No ý

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.   Yes ¨   No ý

 

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. x yes o no

 

 



1


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). x yes o no

 

 

Indicate by check mark whether the registrant is a large Accelerated filer, an Accelerated filer, a non-Accelerated filer, or a smaller reporting company.

See the definitions of "large Accelerated filer," "Accelerated filer," "non-Accelerated filer," and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

 

Large Accelerated filer o

 

Accelerated filer o

Non-Accelerated filer o

 

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 the new or revised financial accounting standards provided pursuant to Section13(a)of the Exchange Act o


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

 

APPLICABLE TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS:

 

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court. o yes o no

 

APPLICABLE ONLY TO CORPORATE ISSUERS:

 

Indicate the number of shares outstanding of each of the issuer s classes of common stock. The number of shares outstanding of the issuer's common stock as of the 12 th of April, 2018 is 3,255,928,947 shares.



 


AUSCRETE CORPORATION

DECEMBER 31, 2017

TABLE OF CONTENTS

 

 

Page

 

PART I  

 

 

 


 

 

 

Item 1 - Business

 

2

 


 

 

 

Item 1A - Risk Factors

 

3

 


 

 

 

Item 2 - Properties

 

3

 


 

 

 

Item 3 - Legal Proceedings

 

3

 


 

 

 

Item 4 - Mine Safety Disclosures

 

3

 


 

 

 

PART II  

 

 

 


 

 

 

Item 5 - Market for Registrant's Common Equity, related Stockholder Matters and Issuer Purchases of Equity Securities

 

4

 


 

 

 

Item 6 - Selected Financial Data

 

4

 


 

 

 

Item 7 - Management's Discussion and Analysis of Financial Condition and Results of Operations

 

4

 


 

 

 

Item 8 - Financial Statements and Supplementary Data

 

5

 

 

 

 

 

Report of Independent Registered Public Accounting Firm

 

6

 


 

 

 

Balance Sheets as at December 31, 2017 and 2016

 

7

 

 

 

 

 

Statements of Operations for the period ended December 31, 2017 and 2016

 

8

 

 

 

 

 

Statements of Changes in Shareholders' Equity for the period ended December 31, 2017 and 2016

 

9

 

 

 

 

 

Statements of Cash Flows for the period ended December 31, 2017 and 2016

 

10

 

 

 

 

 

Notes to Financial Statements

 

11

 

 

 

 

 

Item 9 - Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 

14

 

 

 

 

 

Item 9A - Controls and Procedures

 

14

 

 

 

 

 

Item 9B - Other Information

 

14

 

 

 

 

 

PART III

 

 

 

 

 

 

 

Item 10 - Directors, Executive Officers and Corporate Governance

 

15

 

 

 

 

 

Item 11 - Executive Compensation

 

17

 

 

 

 

 

Item 12 - Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 

17

 


 

 

 

Item 13 - Certain Relationships and Related Transactions, and Director Independence

 

17

 


 

 

 

Item 14 - Principal Accounting Fees and Services

 

17

 


 

 

 

PART IV

 

 

 


 

 

 

Item 15 - Exhibits

 

 

 


 

 

 













Exhibits 31.1 and 32.1 Certifications of the Sarbanes-Oxley Act of 2002

 

Attached

 


 

 

 

Signatures

 

18

 


 

 

 







 


PART I


SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS


We make forward-looking statements in this annual report that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans and objectives. When we use the words "believe", "expect", "anticipate", "estimate", "intend", "should", "may", "plans", "projects", "will", or similar expressions, or the negative of these words, we intend to identify forward-looking statements. Statements regarding the following subjects are forward-looking by their nature:

Although Registrant believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, such statements are subject to risks and uncertainties, which may cause the actual results to differ materially from those anticipated in the forward-looking statements. Such factors include, but are not limited to, the following: general economic and business conditions, which will, among other things, affect demand for housing, the availability of prospective buyers; adverse changes in Registrant's real estate and construction market; including, among other things, competition with other manufacturers, risks of real estate development and acquisitions; governmental actions and initiatives; and environmental/safety requirements.

ITEM 1. BUSINESS


Our Company Overview

Auscrete Corporation was formed as an enterprise to take advantage of technologies developed for the construction of affordable, thermally efficient and structurally superior housing. This "GREEN" product is the culmination of design and development since the early 1980's and is the result of the amalgamation of various material development stages, taking an idea to a product and further developing that product to address an ongoing problem in the world's largest consumer marketplace, the quest for affordable, efficient and enduring housing. Auscrete's structures are monetarily highly competitive. A turnkey house, ready to move in sells for around $100-$110 per square foot. That is very competitive in today's market but is brought about by Auscrete's ability to manufacture large building products in mass production format. The house is constructed on site to produce an attractive site-built home, a home that will stay where it is put through all kinds of adverse weather and age conditions. It will not burn, is not affected by termites or rot, it s thermal efficiency saves extensively on energy costs, has extreme longevity and has very low maintenance needs.

Founder's Development Activities to Date

Auscrete's CEO and founder, John Sprovieri, possessed certain proprietary technology in lighter-weight concrete manufacturing that has been acquired by the corporation. He has applied his engineering and marketing expertise to develop and promote products under the product name, Auscrete Concrete Homes ("ACH"). ACH is the culmination of the refinements made to a technology developed in Australia in the mid 1980's. The Australian product has been used in many parts of the world in construction, and Mr. Sprovieri has further developed it in the US by creating a thermally efficient building system. The process enables infusion of millions of tiny air bubbles into a special inert concrete mix enabling the creation of a lightweight product without sacrificing strength or structural integrity. Since



4


commencing re-development of the basic technology almost twelve years ago, Mr. Sprovieri has refined and modified the basic ACH hybrid insulating formula utilizing various bubble aggregate producing machines to manufacture the product currently usable in Auscrete's building construction.

A number of specialized machines have been fabricated for the manufacturing of ACH including machinery that can produce and infuse various sized bubble aggregates, product specific hydraulically operated casting beds, concrete batching plant, materials handling equipment, specialized finishing machines and a "Hot Box" materials thermal testing cabinet that gives thermal "R" ratings of materials to ASTM specifications. Additionally, many sample panels have been produced for testing and for the construction of structures. At the outset and putting the ACH technology to practical use, Auscrete Corporation has produced many and varied housing and commercial buildings.

Future Strategy

Auscrete Corporation intends to position itself as a major supplier in the affordable housing market. Housing is generally considered "affordable" when its cost does not exceed 30 percent of the median family income in a given area. In many parts of the country, housing costs have shown signs of adversely affecting workers, corporations and local economies. Yet still the availability of affordable housing is becoming increasingly scarce. The company is offering a product that not only makes housing affordable, but also offers some luxuries as well, such as optional heat pump/air conditioning that would not be available in other houses at such comparable pricing. By constructing with the Auscrete Building System, those luxuries will result in lower cost utilities and a comfortable 'feel' to the living environment, as can be achieved with a product offering excellent thermal and soundproofing qualities as well as superb fire resistance.

Developers and contractors will offer the homes as complete, turnkey ready constructed site-built dwellings. Even though they are technologically advanced, they are just plain good value masonry homes built of a time proven product, concrete. The company is establishing its expanded operations and manufacturing facility in the Industrial Estate area of Goldendale, WA. Goldendale is a small city about 115 miles east of Vancouver, WA. Construction of phase 1 of the plant should take 5-6 months. The advantage of Goldendale is it is located by 2 main highways, I-84 east/west and I-97 north/south. The location will help considerably with the delivery of the pre-cast panels initially to the Northwest area and will also simplify the delivery of raw materials to the facility. It is anticipated that in the initial year of operation the company will be able to produce enough panel sets for the construction of over 50 homes.

Auscrete can economically deliver whole house panel sets as far away as Arizona or Alberta, Canada. However, with a planned future facility to be set up in either New Mexico or Texas, further efficiencies will be achieved by servicing a fast-emerging market in this above average (for affordable housing) growth area. Additionally, a plant in Mississippi could quite easily address the South East US market as well, now that the market recovery in that area has taken effect. The company plans on selling most of its output to developers, contractors and builders who will purchase the complete set of wall, roof and interior panels from Auscrete and use their own construction crews to complete the house.

ITEM 1A. RISK FACTORS

Not required for smaller reporting companies.

ITEM  2. PROPERTIES.


The Company purchased a 5-acre Industrial Property in Goldendale WA, during February, 2018. The Company also has 5 acres on option to purchase adjacent to the property already owned.


ITEM 3.  LEGAL PROCEEDINGS.


The Company is not party to any material pending legal proceedings as described in Item 103 of Regulation S-K.




5


ITEM 4.  MINE SAFETY DISCLOSURES.


Not Applicable.




6


PART II

  ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES.

On February 20, 2015, the company listed its stock on the OTCPink Bulletin Board under the symbol "ASCK". The company has not repurchased stock or declared or paid dividends on its capital stock in 2016 or 2017. On May 26, 2014 the Company had executed a forward Stock split of 10 for 1.

The company performed a reverse share split in July, 2017 in the ratio of 1 share for 100 issued shares.

ITEM 6. SELECTED FINANCIAL DATA.


Not required for smaller reporting companies.


ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

Forward-Looking Statements

All statements other than statements of historical fact included in "Management's Discussion and Analysis of Financial Condition and Results of Operations" are forward-looking statements. Forward-looking statements involve various important assumptions, risks, uncertainties and other factors which could cause our actual results to differ materially from those expressed in such forward-looking statements. Forward-looking statements in this discussion can be identified by words such as "anticipate," "believe," "could," "estimate," "expect," "plan," "intend," "may," "should" or the negative of these terms or similar expressions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, performance or achievement. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors including but not limited to, competitive factors and pricing pressures, changes in legal and regulatory requirements, cancellation or deferral of customer orders, technological change or difficulties, difficulties in the timely development of new products, difficulties in manufacturing, commercialization and trade difficulties and general economic conditions as well as the factors set forth in our public filings with the Securities and Exchange Commission.

You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this Annual Report or the date of any document incorporated by reference, in this Annual Report. We are under no obligation, and expressly disclaim any obligation, to update or alter any forward-looking statements, whether as a result of new information, future events or otherwise.

For these statements, we claim the protection of the safe harbor for forward-looking statements contained in Section 21E of the Securities Exchange Act of 1934.

The Company's financial statements have been presented on the basis that it will continue as a going concern. The Company has not generated revenues from construction related operations to date. The Company has an Accumulated deficit of $3,190,966 as of December 31, 2017 which raises substantial doubt about the Company s ability to continue as a going concern.

To the extent that the Company's capital resources are now adequate to meet current and planned operating requirements, the Company will use additional funds through equity and debt financing, collaborative or other arrangements with corporate partners, licensees or others, and from other sources, which may have the effect of diluting the holdings of existing shareholders. The Company has subsequent current arrangements with respect to, or sources of, such additional financing and the Company does not anticipate that existing shareholders will be required to provide any portion of the Company's future financing requirements.



7


No assurance can be given that additional financing will be available when needed or that such financing will be available on terms Acceptable to the Company. If adequate funds are not available, the Company may be required to delay or terminate expenditures for certain of its programs that it would otherwise seek to develop and commercialize. This would have a material adverse effect on the Company and raise doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that may result from the outcome of this uncertainty.

Results of Operations

Comparison of the fiscal year ended December 31, 2016 to the fiscal year ended December 31, 2017.

The company had a net loss of $2,037,746 for the year ended December 31, 2017 compared to a net loss of $709,117 for the year ended December 31, 2016. The change is explained below.

Actual operating loss during the period was $928,378, of which $770,338 was in non-cash share based expense. Because the company had notes outstanding, relative costs such as derivatives skewed the results substantially to show other expenses above $1.1 million. Most of the notes are now gone since years end and first quarter 2018 results should present a much better picture representation.  The company's operations during 2017 were restricted to fund-raising and compliance whereas the company acquired access to investment funds which were to produce results in cash acquisitions beginning in April 2018. All other expenses were attributed to the cost of the ongoing support of record upkeep and compliance of the company.

The intended set up of facilities and subsequent operations of the company, being the manufacture of construction products for commercial and residential structures, had not commenced in 2017 but will commence in mid 2018 as the company completes financing and builds the manufacturing facility on the Goldendale, WA Industrial Estate.

Liquidity and Capital Resources

We have had minimal operating activity since inception of the company in 2010. Our 2017 short-term obligations are being covered by funding received from a convertible note with a total value of $38,000 issued on November 14, 2017.

Net cash used in operating activities was $(141,048) in the year ended December 31, 2017. Net cash used in operating activities for the year ended December 31, 2016 was $(552,366).

Net cash used by investing activities was $0 in the year ended December 31, 2017. Net cash used in investing activities for the year ended December 31, 2016 was $(500).

Net cash provided by financing activities was $156,000 in the year ended December 31, 2017. Net cash provided by financing activities in the year ended December 31, 2016 was $496,000.

As of December 31, 2017, the Company had inadequate cash to operate its business at the current level for the next six months and to achieve its business goals. The success of our business plan during and beyond the next 6 months will be provided by additional loan financing of a minimum of $1.2 million negotiated recently and commencing in Mid-June, 2018.

Financing

Auscrete Corporation, a Wyoming public company was incorporated on December 31, 2009 and first became effective for an IPO with the SEC on August 16, 2012. It was established to finance an expansion of a current pilot facility operated by the founders in Rufus, OR. The IPO was not commenced and expired in February 2014. The company became Effective with a Registration Statement in December 2014 registering shareholder held shares for sale enabling re-application to FINRA for listing on the OTCBB. The company engaged the services of a registered



8


broker-dealer and market maker, Glendale Securities, LLC, who subsequently applied with the Financial Industry Regulatory Authority (FINRA) and now has the common stock quoted on the OTCPink Bulletin Board and is acting as a Market Maker for the company.

The Company did not execute its Initial Public Offering to raise capital. Required funds are being acquired from Loan or Equity financing to enable the Company to construct a factory campus on the Goldendale, WA Industrial Estate to meet the commencement and ongoing financial needs of the Company, as outlined in Liquidity and Capital Resources above.

Use of Funds Raised Through Financing

Initial Stage One targeted funding was $1.2 million and the company, since this 2017 filing, has purchased 5 acres of land on the Goldendale Industrial Estate. Initially it cost $102,000, including fees, to purchase the land. Two buildings will be constructed initially, one at 25,000 sq. ft. and one at 15,000 sq. ft. The cost of supply and erection of these buildings will be $495,000. Plant & Equipment, which comprises of specialty designed product blending equipment and raw cement and sand handling equipment, fork lifts, casting tables and specialized equipment, will cost $200,000 and Shop Equipment will be $90,000. The balance will be used for working capital and expenses including wages, marketing and other working capital and reserves.

Marketing

Principal marketing efforts will be initially aimed at leveraging specific contacts and relationships that have developed over the last twelve years since the inception of the founders pilot plant. An experienced sales person has been found who will have the luxury of dealing with existing contracts and contacts, many of which will reach forward over 3 years.

At this point in time, the company has available contracts for the immediate supply of houses and other structures (apartment block etc.) valued at over $3.5 million but also has available letters of intent from a developer and from a contractor to supply 130 plus houses, valued at $19.6 million, to be built on their housing estates over the next few years. Delivery will be paced at the rate of sales but is expected to be in excess of 100 units per year.

Auscrete's product is also extremely suitable for the construction of high end residential, commercial and industrial structures. Company marketing will explore the commercial world for applications and it is believed that such construction will become a large part of the company's future direction.

Financial Projections

Using a conservative estimate at an average value per sale of $150,000, the company is projecting first year sales in the $7.5 million range escalating from there, once the new campus is up and running. At that rate, there are already approximately 3+ years of potential sales at hand. The typical structure will be a home in the 1,100 - 3,000 sq. ft. range that will sell to the contractor or developer for around $80K-$200K with the average being over $150,000. Obviously, the company will look to increase output to meet the demand and expects to do this through internal financing. The typical margin is around 22% and, once in production, the company does not expect to incur first year losses.

Off-balance Sheet Arrangement

 

We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.



ITEM 7a. QUANTITIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.



9


The company has no exposure at this time.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

 

 



FINANCIAL STATEMENTS

 

Report of Independent Registered Public Accounting Firm

6

Balance Sheets as of December 31, 2017 and 2016

7

Statements of Operations for the years ended December 31, 2017 and 2016

8

Statements of Changes in Stockholders' Equity for the Period ended December 31, 2017 and 2016

9

Statements of Cash Flows for the years ended December 31, 2017 and 2016

10

Notes to Financial Statements

11-14

 






10


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Board of Directors and Stockholders of Auscrete Corp.


Opinion on the Financial Statements

We have audited the accompanying balance sheets of Auscrete Corp. as of December 31, 2017 and 2016, and the related statements of operations, changes in stockholders equity, and cash flows for the two years then ended, and the related notes (collectively referred to as the financial statements). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2017 and 2016, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles generally accepted in the United States of America.


Basis for Opinion

These financial statements are the responsibility of the Company s management. Our responsibility is to express an opinion on the Company s financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. As part of our audits, we are required to obtain an understanding of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company s internal control over financial reporting. Accordingly, we express no such opinion.

Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.


Consideration of the Company s Ability to Continue as a Going Concern

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and has a significant accumulated deficit. These factors raise substantial doubt about the Company s ability to continue as a going concern. Management s plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.


[AUSCRETE1010K2.GIF]



Fruci & Associates II, PLLC


We have served as the Company s auditor since 2014.

Spokane, WA

 

April 16, 2018

 







11


 

AUSCRETE CORPORATION

BALANCE SHEETS

December 31,










ASSETS

2017 

2016 

CURRENT ASSETS:



 Cash

$

14,975 

$

23 

 Prepaid Expenses

70 

70 

 Inventory

47,000 

47,000 




 TOTAL CURRENT ASSETS

62,045 

47,093 




 Property, Plant and Equipment (net)

21,899 

27,127 




 TOTAL ASSETS

$

83,944 

$

74,220 




 LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)



 CURRENT LIABILITIES:



 Accounts Payable

$

25,718 

$

5,653 

 Accrued Interest Payable

66,424 

11,196 

 Notes Payable (net of discount)

386,547 

363,280 

 Derivative Liability

309,487 

117,759 

 Related Party Advances

1,099 

 TOTAL CURRENT LIABILITIES

789,275 

497,888 

 TOTAL LIABILITIES

789,275 

497,888 




 Commitments and Contingencies




 STOCKHOLDERS' EQUITY (DEFICIT)



 Common Stock, 0.0001 par value, authorized 2,000,000,000 shares



770,676,304 and 370,235,160 shares issued and outstanding as of December 31, 2017 and December 31, 2016 respectively,

77,067 

369 

 Additional Pain In Capital

2,390,587 

729,184 

 Shares to be issued

17,981 

 Accumulated deficit

(3,190,966)

(1,153,221)

 TOTAL STOCKHOLDERS' EQUITY (DEFICIT)

(705,331)

(423,668)

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

$

83,944 

$

74,220 


The Accompanying notes are an integral part of these financial statements






12


 


AUSCRETE CORPORATION

STATEMENTS OF OPERATIONS

for the years ended December 31,



2017 

2016 

REVENUE

$

$




EXPENSES



Accounting and Legal

29,218 

30,989 

G&A Expenses

123,594 

241,087 

Share based compensation

770,338 

70,000 

Depreciation expense

5,228 

5,228 

TOTAL EXPENSES

928,378 

347,304 




OTHER INCOME (EXPENSES)



Gain / (Loss) on Derivative

(493,162)

153,328 

Financing cost

(549,068)

(275,242)

Loss on Deposit

(219,998)

Interest Expense

(67,138)

(19,901)

TOTAL OTHER INCOME (EXPENSES)

(1,109,368)

(361,813)




LOSS BEFORE TAXES

(2,037,746)

(709,117)

Provision for Income Taxes

NET LOSS

$

(2,037,746)

$

(709,117)




NET LOSS PER COMMON SHARE - BASIC & DILUTED

$

(0.03)

$

(0.43)




WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING - BASIC & DILUTED

61,683,985 

1,659,190 


The Accompanying notes are an integral part of these financial statements



AUSCRETE CORPORATION

STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY

for the years ended December 31, 2017 and 2016









Common Stock






Shares

Amount

 Additional Paid in Capital

 Shares to be issued

Accumulated Deficit

TOTAL








BALANCE, DECEMBER 31, 2015

1,009,350 

$

100 

$

471,600 

$

-

$

(444,103)

$

27,597 







Issuance Common stock for services

1,205,000 

120 

69,880 

-

70,000 

Note conversion

1,508,002 

151 

207,702 

-

207,853 

Cancellation of shares

(20,000)

(2)

(19,998)

-

(20,000)

Net loss for year ended December 31, 2016


-

(709,118)

(709,118)








BALANCE, DECEMBER 31, 2016

3,702,352 

$

369 

$

729,184 

$

-

$

(1,153,221)

$

(423,668)







Note conversion

556,397,896 

55,640 

912,123 

17,981

985,746 

Issuance Common stock for services

212,325,997 

21,233 

756,105 

-

777,337 

Cancellation of Shares

(1,750,000)

(175)

(6,825)



(7,000)

Rounding

60 




Net Loss




-

(2,037,746)

(2,037,746)







BALANCE, DECEMBER 31, 2017

770,676,305 

$

77,067 

$

2,390,587 

$

17,981

$

(3,190,967)

$

(705,331)

 


The Accompanying notes are an integral part of these financial statements




14


 

AUSCRETE CORPORATION

 STATEMENTS OF CASH FLOWS

for the years ended December 31,






2017 

2016 

 OPERATING ACTIVITIES

 Net Income (Loss)

$

(2,037,746)

$

(709,117)

 Finance Costs

549,068 

 Depreciation

5,228 

5,228 

 Services for Stock

770,338 

70,000 

 Change in Accounts Payable & Accrued Interest

75,396 

10,087 

 Change in Related Party Advances

1,099 

(8,180)

 Change in Derivative and note discount

495,569 

79,616 

 Net Cash Used by Operating Activities

(141,048)

(552,366)




 INVESTING ACTIVITIES:



 Purchase of Equipment

(500)

 Net cash used by investing activities

(500)




 FINANCING ACTIVITIES:



 Proceeds from notes payable

156,000 

496,000 

 Net cash provided by financing activities  

156,000 

496,000 

 NET INCREASE (DECREASE) IN CASH

14,952 

(56,866)




 CASH AT BEGINNING OF PERIOD

23 

56,889 




 CASH AT END OF PERIOD

$

14,975 

$

23 




 Supplemental Cashflow Information



 Interest Paid

$

$

 Taxes Paid

$

$



The Accompanying notes are an integral part of these financial statements






15


AUSCRETE CORPORATION

NOTES TO FINANCIAL STATEMENTS

DECEMBER 31, 2017


NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

HISTORY

Auscrete Corporation ("the Company") was formed as an enterprise to take advantage of technologies developed for the construction of affordable, thermally efficient and structurally superior housing. This "GREEN" product is the culmination of design and development since the early 1980's. The company's Registration Statement outlines the result of the amalgamation of various material development stages, taking an idea to a product and further developing that product to address an ongoing problem in the world's largest marketplace, the quest for affordable, efficient and enduring housing. Auscrete's structures are monetarily highly competitive. A turnkey house, ready to move in sells for around $95-100 per square foot. That is very low in today's market but is brought about by Auscrete's ability to manufacture large panels in mass production format. The house is virtually "fastened" together on site to produce an attractive site-built home, a home that will stay where it is put through all kinds of adverse weather and age conditions. It will not burn, is not affected by bugs, termites or rot, it saves extensively on energy costs and has very low maintenance needs.

INCOME TAXES

The Company follows the guidance of the Financial Accounting Standards Board's Accounting Standards Codification Topic 740 related to Income Taxes. According to Topic 740, deferred income taxes are recorded to reflect the tax consequences in future years of temporary differences between the tax basis of the assets and liabilities and their financial amounts at year-end.

For federal income tax purposes, substantially all expenses incurred prior to the commencement of operations must be deferred and then they may be written off over a 180-month period. Tax deductible losses can be carried forward for 20 years until utilized for federal tax purposes. The Company will provide a valuation allowance in the full amount of the deferred tax assets since there is no assurance of future taxable income.

The Company utilizes the Financial Accounting Standards Board's Accounting Standards Codification Topic 740 related to Income Taxes to Account for the uncertainty in income taxes. Topic 740 for Income Taxes clarifies the Accounting for uncertainty in income taxes by prescribing rules for recognition, measurement and classification in financial statements of tax positions taken or expected to be in a tax return. Further, it prescribes a two-step process for the financial statement measurement and recognition of a tax position. The first step involves the determination of whether it is more likely than not (greater than 50 percent likelihood) that a tax position will be sustained upon examination, based on the technical merits of the position. The second step requires that any tax position that meets the more likely than not recognition threshold be measured and recognized in the financial statements at the largest amount of benefit that is a greater than 50 percent likelihood of being realized upon ultimate settlement. This topic also provides guidance on the Accounting for related interest and penalties, financial statement classification and disclosure. The Company's policy is that any interest or penalties related to uncertain tax positions are recognized in income tax expense when incurred. The Company has no uncertain tax positions or related interest or penalties requiring Accrual at December 31, 2017 and 2016.

CASH AND CASH EQUIVALENTS

Cash and cash equivalents consist primarily of cash in banks and highly liquid investments with original maturities of 90 days or less. There were $14,975 cash equivalents as of December 31, 2017 and $23 as of December 31, 2016.



16


REVENUE RECOGNITION POLICY

The Company recognizes revenues and the related costs when persuasive evidence of an arrangement exists, delivery and Acceptance has occurred or service has been rendered, the price is fixed or determinable, and collection of the resulting receivable is reasonably assured. Revenue from licensing our technology is recognized over the term of the license agreement. Costs and expenses are recognized during the period in which they are incurred. Revenues earned for the period is solely from maintenance services performed. The Company recognizes these sales once delivery time is confirmed to the customer.

COST OF SALES

Amounts that will be recorded as cost of sales relate to direct expenses incurred in order to fulfill orders of our products. Such costs are recorded as incurred. Our cost of sales will consist primarily of the cost of product; labor, selling costs and the cost of G&A expenses.

PROPERTY AND EQUIPMENT

Property and Equipment was stated at historical cost less Accumulated depreciation and amortization. Cost represents the purchase price of the asset and other costs incurred to bring the asset into its existing use. Depreciation is provided on a straight-line basis over the assets' estimated useful lives. The useful lives of the assets are as follows: equipment 7-years, vehicles 7-years, and buildings 30-years. Additions and improvements are capitalized while routine repairs and maintenance are charged to expense as incurred. Upon sale or disposition, the historically recorded asset cost and Accumulated depreciation are removed from the Accounts and the net amount less proceeds from disposal is charged or credited to other income or expense.

IMPAIRMENT OF LONG-LIVED ASSETS

We evaluate long-lived assets for impairment whenever events or changes in circumstances (such as a significant adverse change to market conditions that will impact the future use of the assets) indicate their net book value may not be recoverable. When these events occur, we compare the projected undiscounted future cash flows associated with the related asset or group of assets over their estimated useful lives against their respective carrying amount. Impairment, if any, is based on the excess of the carrying amount over the fair value, based on market value when available, or discounted expected cash flows, of those assets and is recorded in the period in which the determination is made. There can be no assurance, however, that market conditions will not change or demand for the Company's products will continue. Either of these could result in the future impairment of long-lived assets. Estimates of fair value are determined through various techniques, including discounted cash flow models and market approaches, as considered necessary.

LOSS PER COMMON SHARE

Basic loss per common share is computed based upon the weighted average number of common shares outstanding during the period. Diluted earnings per share consists of the weighted average number of common shares outstanding plus the dilutive effects of options and warrants calculated using the treasury stock method. In loss periods, dilutive common equivalent shares are excluded as the effect would be anti-dilutive. As of December 31, 2017, and 2016. Fully diluted weighted average common shares and equivalents were withheld from the calculation as they were considered anti-dilutive. 


Reclassification

Certain amounts in the prior period financial statements have been reclassified to conform to the current period presentation. These reclassifications had no effect on reported income, total assets, or stockholders equity as previously reported.



17


.

USE OF ESTIMATES

The preparation of the financial statements in conformity with generally Accepted Accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates and assumptions.

NOTE 2 - GOING CONCERN AND PLAN OF OPERATION

The Company's financial statements have been presented on the basis that it will continue as a going concern. The Company has not generated revenues from construction related operations to date. The Company has an Accumulated deficit of $3,190,966 as of December 31, 2017 which raises substantial doubt about the Company s ability to continue as a going concern.

The Company will use additional funds through equity and debt financing, collaborative or other arrangements with corporate partners, licensees or others, and from other sources, which may have the effect of diluting the holdings of existing shareholders. The Company has subsequent current arrangements with respect to, or sources of, such additional financing and the Company does not anticipate that existing shareholders will be required to provide any portion of the Company's future financing requirements.

No assurance can be given that additional financing will be available when needed or that such financing will be available on terms Acceptable to the Company. If adequate funds are not available, the Company may be required to delay or terminate expenditures for certain of its programs that it would otherwise seek to develop and commercialize. This would have a material adverse effect on the Company and raise doubt about the Company's ability to continue as a going concern. The accompanying financial statements do not include any adjustments that may result from the outcome of this uncertainty.

NOTE 3 - RECENT ACCOUNTING PRONOUNCEMENTS

Recent Accounting Pronouncements

In December 2017, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities - FASB ASU 2016-01

Summary  - The amendments in ASU 2016-01, among other things:

Requires equity investments (except those accounted for under the equity method of accounting, or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income.

§

Requires public business entities to use the exit price notion when measuring the fair value of financial instruments for disclosure purposes.

§

Requires separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (i.e., securities or loans and receivables).

§

Eliminates the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments measured at amortized cost.

Effective  - Effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The company is in the process in determining effect it with have on the financial state ments .

The new guidance permits early adoption of the own credit provision.



18


In April 2017 the FASB Update 2017-04 Intangibles Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. A public business entity that is an SEC filer should adopt the amendments in this Update for its annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017.

In January 2017 the FASB Update 2017-01 Business Combinations (Topic 805): Clarifying the Definition of a Business. Public business entities should apply the amendments in this Update to annual periods beginning after December 15, 2017, including interim periods within those periods.

In 2016 the FASB UPDATE 2016-15 STATEMENT OF CASH FLOWS (TOPIC 230): CLASSIFICATION OF CERTAIN CASH RECEIPTS AND CASH PAYMENTS (A CONSENSUS OF THE EMERGING ISSUES TASK FORCE. Stakeholders indicated that there is diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows under Topic 230, Statement of Cash Flows, and other Topics. This Update addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. The company is in the process in determining effect it with have on the financial statements .

NOTE 4 -RELATED PARTY TRANSACTIONS

The company does not have banking credit cards to assist with the normal everyday purchases and payments of corporate needs such as utilities etc. The CEO and other involved parties often use their own cards for this purpose and, to represent this, the company has a continuous Related Party Advances section in its financial statements. This is adjusted normally at the end of each reporting period and, at times, requires some funds to be held in the accounts of the parties to ensure availability of funds as required.

NOTE 5 - PROPERTY, INVENTORY AND EQUIPMENT

Notes to Inventory Type and Value:

Inventory consists of Finished Product and Raw Materials that are valued at the lower of cost or market.

Finished product of $44,900 is a full set of insulated ACH cast panels for wall and roof of an approx. 1,600 sq. ft house. Panel cost is actual size of all panels in sq. ft. of just under 7,000 sq. ft. calculated as follows.

Material

Cost per sq. ft.

 

Cement

2.42

 

XPS Insulation

0.98

 

Surfactant

0.32

 

Rebar @ Steel

1.02

 

Labor

1.78

 

TOTAL COST PER SQ. FT.   $

6.52

 


Raw Materials:

Raw materials consist of rebar, insulation, surfactant, powdered cement, threaded inserts and sundry items. The cost of $2,100 is based on the cost of purchase from a non-related supplier.




19


Property and equipment were comprised of the following at:


December 31, 2017

December 31, 2016

Capital Equipment

 $              34,517

 $              34,517

Accumulated Depreciation

                (12,618)

               (7,390)

Net Fixed Assets

 $                 21,899

 $                 27,127

Depreciation expense was $5,228 for the years ended December 31, 2017 and 2016

NOTE 6 - COMMON STOCK

Common Stock:

On July 6, 2017 The Company increased its Authorized Capital to 20,000,000,000 common shares at $0.0001 par value. There are 770,676,304 shares issued and outstanding as of December 31, 2017.

During the Period January 1, 2017 to December 31, 2017, the Company issued 766,973,939 shares.

During the period January 1, 2017 to December 31, 2017 a total of 556,397,896 shares were issued to Note holders for conversions.


Additionally, for services rendered, the following were issued.


168,809,850 shares to our Company CEO, John Sprovieri for Management Services for a value of $168,810.

24,561,900 shares to our Director, Clifford Jett for Management/Director services for a value of $24,562.

3,500,000 to Director (retired), William Beers. for Director Services for a value of $3,500.

2,500,000 to IR director, Lee Odom for IR services for a value of $2,500.

11,168,767 to Kodiak Capital for preparation of unused S-1. $5,864


The following table is a list of the foremost 6 shareholders of the Company as of December 31, 2017.

 

 

 

NAME

ADDRESS

Number of Shares





1

 

 

CEDE & Company

570 Washington Blvd. 5th. Floor, Jersey City, NJ 07310

473,708,076


 



2

 

 

John Sprovieri

PO Box 813, Rufus OR 97050

170,515,000


 



3



Fourth Man LLC

2522 Chambers Road, Suite 100, Tustin, CA 92780

50,000,000


 










 




4

 

 

ADAR BAYS LLC

3411 Indian Creek Dr. Ste 403, Miami, FL 33140

34,252,381





5

 

 

CD & KD Jett

PO Box 846, Rufus, OR 97050

24,810,000









 






6

 

 

Kodiak Capital Group

260 Newport Ctr. Drive, Newport Beach, CA 92660

11,168,767












 














13

 

NOTE 7 - INCOME TAXES



20


The Company accounts for income taxes under SFAS No. 109 (now contained in FASB Codification Topic 740-10-25, Accounting for Uncertainty in Income Taxes), which requires the asset and liability approach to accounting for income taxes.  Under this method, deferred tax assets and liabilities are measured based on differences between financial reporting and tax bases of assets and liabilities measured using enacted tax rates and laws that are expected to be in effect when differences are expected to reverse. As of December 31, 2017, we had a net operating loss carry-forward of approximately $(2,420,000) and a deferred tax asset of $670,103 using the statutory rate of 21%. The deferred tax asset may be recognized in future periods, not to exceed 20 years.  However, due to the uncertainty of future events we have booked valuation allowance of $(675,180).  FASB ASC 740 prescribes recognition threshold and measurement attributes for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. FASB ASC 740 also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition.  At December 31, 2017 the Company had not taken any tax positions that would require disclosure under FASB ASC 740.



December 31, 2017

December 31, 2016

Deferred Tax Asset

 $ 675,180 

 $ 242,176 

Valuation Allowance

  (675,180)

  (242,176)

Deferred Tax Asset (Net)

$                            -

$                            -

.

The Company files income tax returns in the U.S. and Oregon federal jurisdictions. These filings are subject to a three year statute of limitations unless the returns have not been filed at which point the statute of limitations becomes indefinite. No filings are currently under examination. No adjustments have been made to reduce the estimated income tax benefit at year end. Any valuations relating to these income tax provisions will comply with U.S. generally Accepted Accounting principles.


Note 8 Derivative Liabilities

As a result of the convertible notes we recognized the embedded derivative liability on the date that the note was convertible. We also revalued the remaining derivative liability on the outstanding note balance on the date of the balance sheet. The remaining derivative liabilities were:



 

December 31, 2017

December  31, 2016

Derivative Liabilities on Convertible Loans:

 

 

Outstanding Balance

$        309,487

$        117,759


NOTE - 9 SUBSEQUENT EVENTS

On February 27, 2018  the company purchased a 5 acre industrial lot for $100,000 from the City of Goldendale, WA to establish a production facility. Funds were made available for this purpose via a bridging loan from the CEO. The company also issued a convertible note to Power Up Lending Group Ltd in the amount of $38,000. The company also recognized Loan fund availability for $1.5 million that will be available starting August, 2018

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

None.

ITEM 9A. CONTROLS AND PROCEDURES



21


(a)                 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 pursuant to the Securities Exchange Act, of 1934, as amended, or the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the rules and forms, and that such information is accumulated and communicated to us, including our chief executive officer and chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.

 

As required by Rules 13a-15(b) of the Exchange Act, an evaluation as of December 31, 2017 was conducted under the supervision and with the participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act. Based upon that evaluation, our chief executive officer and chief financial officer concluded that our disclosure controls and procedures were not effective as of December 31, 2017. 

 

(b)                  Report of Management on Internal Control over Financial Reporting

 

We are responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) of the Exchange Act. Under the supervision and with the participation of our management including  of our chief executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the 2013 framework in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission, or COSO.

 

Based on our evaluation under the 2013 Internal Control-Integrated Framework, our chief executive officer and chief financial officer concluded that our internal control over financial reporting was not effective as of December 31, 2017.

 

(c)                  Changes in Internal Control over Financial Reporting

 

There have been no other changes in our internal control over financial reporting that occurred during the period covered by this Annual Report on Form 10-K for the year ended 2017, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

ITEM 9B. OTHER INFORMATION

There are no other disclosures at this time.



PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

 

Directors and Executive Officers

 

Our directors and executive officers and their respective ages, positions, term of office and biographical information are set forth below. Our bylaws require at least three directors to serve for a term of one year or until they are replaced by a qualified director. Our executive officers are chosen by our board of directors and serve at its discretion. There are no existing family relationships between or among any of our executive officers or directors.

On October 5, 2016, William Beers resigned as a Director due to ill health. A replacement Director will be elected during mid-2018.

 

Name

Age

Position Held

Director Term

A. John Sprovieri

69

Director and President/Secretary

From January 1, 2010 until next annual meeting.

Clifford D. Jett

77

Director

From January 1, 2010 until next annual meeting.

 

John Sprovieri CEO/Director, Age 69

John Sprovieri's background is in Mechanical Engineering being in the manufacturing industry for many years. He is an American, born in Australia and moved permanently to the US in 1994. He and his wife, Mary have been married nearly 47 years and have no children.

 

In 1975, Mr. Sprovieri developed an agricultural/industrial tractor line and developed both the manufacturing and marketing segments of his company, Australian Tractor Manufacturers Pty. Ltd. The corporation produced nearly 500 units over the next 14 years until he sold the company to Just Australia China Holdings Ltd. (JACH) with interests in China, Korea and Russia. The company was operating profitably at the time it was sold. JACH were setting up overseas operations and were going to manufacture in China or South Korea. He stayed on with the corporation liaising with overseas licensed manufacturers and markets. He traveled extensively into Europe, USSR, the Middle East and North America.

Following completion of his obligations to JACH in 1993, he researched the US West Coast Market for low cost housing development and started a transport company following working with 2 transport companies in Washington and Oregon in various positions throughout the West Coast corridor for nearly 3 years. In 1997 John launched an interstate transport company and was responsible for all facets of management including finance, operations, personnel and government compliance. In 2003, John commenced development of the Auscrete technology and acquired financing to further develop the Cellucon based technology and product with a view to creating an affordable housing manufacturing operation.

 

During the past 12 years since 2005, Mr. Sprovieri has been principally involved with launching and managing the Auscrete of Oregon development activities. During this time, he has set up a manufacturing facility, trained personnel, redeveloped technology and started production of Auscrete products in 2007.

 

Clifford Jett Director, Age 77

 

Mr. Jett was the Mayor of the City of Rufus until December, 2014 and had been since 1998. He is chairman of the Lower John Day Regional Partnership and on the Board of Directors of Mid-Columbia Council of Governments. He is also a member of the Mid-Columbia Economic Development District and the Lower John Day Area Commission on Transportation.

 

Mr. Jett comes from the Columbia Gorge and has an intimate knowledge of the area. He and his wife, Kay live in Rufus on their small agricultural holding. In his earlier career he became heavily involved in Law Enforcement and, since 1967, spent many years in Nevada commencing as a Conservation Fieldman II for the Nevada Dept. of Fish and Game. Until 1991, he worked through the ranks to achieve Region III L.E. Supervisor status as Fish and Game Agent III at the Nevada Dept. of Wildlife. This diverse career gave him much experience in management, public relations, budgeting, law enforcement knowledge, personnel evaluations and preparation of quarterly and annual reports.

In 1996, Mr. Jett became a city councilman for the City of Rufus and was elected Mayor in 1998. In addition to having been a deputy of the Sheriff s Department in the marine division, he is also a vineyard farmer and a partner in a small museum in the area. Mr. Jett's 23 years in Law Enforcement gave him the ability to display professionalism and integrity as part of his life's philosophy. His leadership and problem-solving ability make him well qualified to serve on the Board of Directors of this corporation.

 

Code of Ethics

 



23


Since we have only two persons serving as executive officers and directors and because we have minimal operations, we have not adopted a code of ethics for our principal executive and financial officers. Our board of directors will revisit this issue in the future to determine if adoption of a code of ethics is appropriate. In the meantime, our management intends to promote honest and ethical conduct, full and fair disclosure in our reports to the SEC and comply with applicable governmental laws and regulations.

 

Corporate Governance

 

We are a smaller reporting company with minimal operations and only two directors and officers. As a result, we do not have a standing nominating committee for directors, nor do we have an audit committee with an audit committee financial expert serving on that committee. Our entire Board of Directors acts as our nominating and audit committee.

 

ITEM 11. - EXECUTIVE COMPENSATION.


Summary Compensation Table

















Name and Principal Position



Fiscal Year


Salary


Bonus


Stock


Option


All Other


Total




Ended


($)


($)


Awards


Awards


Compensation


($)




31-Dec


 


 


($)


($)


($)


 

















John Sprovieri

 

2017

 

 

 

168,810

 

 

15,154

 

183,964

CEO, President and COO

2016

 

 

 

70,000

 

 

 

70,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clifford Jett

 

2017

 

 

 

24562

 

 

 

24,562

Director

 

 

2016

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

William Beers

 

2017

 

 

 

3,500

 

 

 

3,500

Director



2016









ITEM 12. - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The following table sets forth certain information regarding beneficial ownership of our common stock as of December 31, 2017. We did not have any equity compensation plans as of December 31, 2017.

Name & Address

# Class A Common Stock owned

Percentage


John Sprovieri - PO Box 813, Rufus OR 97050

170,515,000

22.1


Clifford & Kay Jett - PO Box 846, Rufus OR 97050

24,810,000

3.2


William S. Beers - PO Box 825, Rufus OR 97050

3,577,500

0.46












24


We have determined beneficial ownership in Accordance with the rules of the SEC. We believe, based on the information furnished to us, that the persons and entities named in the table above have sole voting and investment power with respect to all shares of common stock that they beneficially own.

ITEM 13. - CERTAIN RELATIONSHIPS, AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.

There are no notable outside director and officer related transactions or relationships to report other than minimal advances made by directors to finance interim operations.

ITEM 14. - PRINCIPAL AC C OUNTING FEES AND SERVICES.


Audit Fee


The aggregate fees billed for each of the last two fiscal years for professional services rendered by Fruci & Associates II, PLLC for the audit of Auscrete Corporation annual financial statements and review of financial statements included in Auscrete Corporation's 10-Q reports and services normally provided by the Accountant in connection with statutory and regulatory filings or engagements were $12,500 for fiscal year ended 2016 and $13,100 for professional services for fiscal year 2017


Audit-Related Fees


The aggregate fees billed in each of the last two fiscal years for assurance and related services by the principal Accountant that are reasonably related to the performance of the audit or review of Auscrete Corporation financial statements that are not reported above were $0 for fiscal year ended 2017 and $0 for fiscal year ended 2016.


Tax Fees


The aggregate fees billed in each of the last two fiscal years for professional services rendered by the principal Accountant for tax compliance, tax advice, and tax planning were $0 for fiscal year 2017 and $0 for 2016.


All Other Fees


The aggregate fees billed in each of the last two fiscal years for products and services provided by the principal Accountant, other than the services reported above were $0 for fiscal years ended 2017 and 2016.


We do not have an audit committee currently serving and as a result our board of directors performs the duties of an audit committee.  Our board of directors will evaluate and approve in advance, the scope and cost of the engagement of an auditor before the auditor renders audit and non-audit services.  We do not rely on pre-approval policies and procedures.



25


PART IV


ITEM 15. - EXHIBITS.

Exhibit 31.1 - Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

Exhibit 32.1 - Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002




26


SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

AUSCRETE CORPORATION

 

By:

/s/ A John Sprovieri

A. John Sprovieri
(Chief Executive and Financial Officer)

Date: April 16, 2018



27


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