Form 10-K: 0001214659-22-007525 compared to 0001121781-14-000077

 

 

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 UNITED STATES

CURRENT REPORT FOR ISSUERS SUBJECT TO THE

1934 ACT REPORTING REQUIREMENTS

 

FORM 10-K

 

SECURITIES AND EXCHANGE COMMISSIONSECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K

Washington, DC 20549 

 (Mark One)

Annual Report Pursuant to Section 

x ANNUAL REPORT PURSUANT TO SECTION 13 orOR 15(d) ofOF the Securities Exchange Act

 THE SECURITIES EXCHANGE ACT OF 1934

For the Fiscal Year Ended December 31, 2013fiscal year ended December 31, 2021

 or

PREMIER OIL FIELD SERVICES, INC. 

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

For the transition period from to

 

Commission File Number 000-56318

 

AMERICAN METALS RECOVERY AND RECYCLING INC.

(Exact name of registrant as specified in its charter)

  

NevadaNevada  1741 27-226206627-2262066
(State or other jurisdiction of incorporation or organization)  (Primary Industrial Classification Code No.) I.R.S.(IRS Employer Identification No.)
of incorporation) 

 

 

1713 Morrish Lane, Heath, Texas 75032

(Address, including the ZIP code & telephone number, including area code of Registrant's 

4301 West Bank Drive, Suite 110B, Austin, Texas78746
(Address of principal executive office)offices)(Zip Code)

 

 

(972) 249-6789

(Registrant’s telephone number, including area code)

 

 270 Southern Drive, Royce City, Texas 75189-5704

(Former address)

 Registrant’s Telephone Number, Including Area Code: (866) 365-0620

 

Securities registered pursuant to Section 12(b) of the Act:  NONE

Securities registered pursuant to Section 12(g 

Title of each class Trading
Symbol(s)
Name of each exchange on
which registered
Common Stock, $0.001 par value per share AMRR OTC Market

 

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

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act:  Common Stock. Yes o No x

  

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 past 12 monthspreceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirementrequirements for the past 90days   Yes [X]   No [   ].90 days. Yes o No x

  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 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, or an emerging growth company. See the definitions of large accelerated filer,” “” “accelerated filer” and “,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:.

  

 Large accelerated filer  Large Accelerated Filer [    ].  o  Accelerated Filer    [    ].filer      o
 Non-accelerated filer  x   Smaller reporting companyx
    Non-Accelerated Filer [    ].     Smaller Reporting Company [X] Emerging growth companyo

 

Indicate by a check mark whether the company is a shell company (as defined by 

 1 
 

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

 

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. o

 

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

  

AggregateThe aggregate market value of the voting stock held by non-affiliates of the registrant ascommon stock, $0.001 par value (“Common Stock”), of the registrant held by non-affiliates was approximately $902,000 based on the $0.305 closing price per common share on OTC on June 30, 2021. For purposes of this calculation, an aggregate of 8,123,230 shares of Common Stock held directly by, or by affiliates of, the directors and the executive officers of the registrant have of December 31,been included in 2013: $473,168.

 

Shares of common stockthe number of common shares outstanding at March 20, 2013:    7,346,336held by affiliates.

 

 

As of May 24, 2022, the registrant had 11,081,336 shares of Common Stock outstanding.

 

Documents incorporated by reference: None.

 

 

 12 
 

 

PART I. 

 

AMERICAN METALS RECOVERY AND RECYCLING INC.

2021 FORM 10-K ANNUAL REPORT

 

TABLE OF CONTENTS

 

ITEM 1. DESCRIPTION OF BUSINESS 4
   
ITEM 1A. RISK FACTORS 8
   
ITEM 1B. UNRESOLVED STAFF COMMENTS 8
   
ITEM 2. PROPERTIES 8
   
ITEM 3. LEGAL PROCEEDINGS 8
   
ITEM 4. MINE SAFETY DISCLOSURES 8
   
ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES. 8
   
ITEM 6. [RESERVED] 8
   
ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 9
   
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 12
   
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 13
   
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 24
   
ITEM 9A. CONTROLS AND PROCEDURES. 24
   
ITEM 9B. OTHER INFORMATION. 24
   
ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS. 24
   
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS 25
   
ITEM 11. EXECUTIVE COMPENSATION 28
   
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS. 28
   
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 29
   
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES 30
   
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES 30
   
ITEM 16. FORM 10K SUMMARY 31
   
SIGNATURES 32

 

 3 
 

 

PART I

 

ITEM 1. DESCRIPTION OF BUSINESS

 

Cautionary Note Concerning Forward-Looking Statements

  

FORWARD-LOOKING STATEMENTS

 

This annual report on Form 10-K includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, which we refer to in this annual report as the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, which we refer to in this annual report as the Exchange Act. Forward-looking statements are not statements of historical fact but rather reflect our current expectations, estimates and predictions about future results and events. These statements may use words such as “anticipate,” “believe,” “estimate,” “expect,” “intend,” “predict,” “project” and similar expressions as they relate to us or our management. When we make forward-looking statements, we are basing them on our management’s beliefs and assumptions, using information currently available to usCertain statements contained in this Annual Report on Form 10-K (this “Annual Report”) of American Metals Recovery and Recycling Inc., a Nevada corporation (the “Company, “AMRR”, “we”, “our” or “us”), discuss future expectations, contain projections of our plan of operation or financial condition or state other forward-looking information. These forward-looking statements are subject to risks, uncertainties and assumptions, including but not limited to, risks, uncertainties and assumptions discussed in this annual report. Factors that can cause or contribute to these differences include those described under the headings “Risk Factors” and “Management Discussion and Analysis and Plan of Operation.”

 

If one or more of these or other risks or uncertainties materialize, or ifgenerally identified by the words such as “expects,” “anticipates,” “goals,” “intends,” “plans,” “believes,” “seeks,” or “estimates,” the negative of such terms or other comparable terminology. Words such as variations our underlying assumptions prove to be incorrect,of such words and similar expressions are intended to identify such forward-looking statements. Forward-looking statements involve future risks and uncertainties, these are factors that could cause actual results may varyor plans to differ materially from what we projected. Any forward-looking statement you read in this annual report reflects our current views with respect to future events and is subject to these and other risks, uncertainties and assumptions relating to our operations, results of operations, growth strategy and liquidity. All subsequent written and oral forward-looking statements attributable to us or individuals acting on our behalf are expressly qualified in their entirety by this paragraphthose expressed or implied. These forward-looking statements are based on the current plans and expectations of our management and are subject to a number of uncertainties and risks that could significantly affect our current plans and expectations, as well as future results of operations and financial condition and may cause our actual results, performances or achievements to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements. Any safe harbor provisions under the federal securities law may not apply to an issuer that issues penny stock. The information contained elsewhere in this Annual Report or in our other filings with the Securities and Exchange Commission (the “SEC”) including under the caption “Risk Factors”, or incorporated herein or therein, identifies other important factors that could cause differences from our forward-looking statements. Our other filings with the SEC are available on the SEC's website at www.sec.gov. You should specifically consider the factors identified in this annual report which would cause actual results to differ before making an investment decision. We are undernot place undue reliance upon our forward-looking statements. The Company does no dutynot assume any obligation to update any of the forward-looking statements to reflect events or circumstances after the date of this annual reportAnnual Report orexcept to conform these statements to actual resultsas required by applicable law.

  

ITEM 1.                      DESCRIPTION OF BUSINESSGeneral Background of the Company

  

We were formed as a corporation on June 29, 2009 in Nevada in order to acquire 100% of the outstanding stock of Coil Motor Tubing Corporation, a Texas corporation. Coil Tubing Motor Corporation (“CTM”) is a wholly owned subsidiary ofThe Company was incorporated in the State of Nevada on June 29, 2009 as Premier Oil Field Services, Inc. (“Premier” or “the Company” or “we”) and was formed inand changed its name to American Metals Recovery and Recycling Inc. on April 25, 2014. The Company was dormant from June 2006 as a Texas Corporation.  CTM serves the oil and gas industry with down-hole drilling motors. These motors are used in the gas well drilling process to drill out frac plugs and other debris in the wellbore2015 until February 2021.

  

CTM services independent drilling operations. Larger gas fields related to national and multinational corporations are generally well capitalized and typically contract with larger national drilling contractors. The smaller fields are representative of independent or privately owned fields and therefore these operations are more sensitive to declines in petroleum and gas prices. Consequently, production by the independent fields may be suspended or shut down in a market of lower prices.

 

CTM provides drilling systems and services.  These services include drilling frac plugs, cement and other debris. We own the majority of our equipment and supplement any additional equipment needs through short term rental arrangements on an as needed basis.

 

We are a provider of motors to the hydraulic fracturing industry, a process that creates fractures extending from the well bore through the rock formation to enable natural gas or oil to move more easily through the rock pores to a production well.  Our equipment is comprised of drilling motors which are used on-site in the field. We also provide chemicals for that are used in the fracturing process and reprocess the chemicals for continued use.

 

CTM provides well-head services through a complete line of high quality motors specifically designed for work-over and coil tubing drilling. The CTM work-over motors are designed for maximum performance and durability. CTM provides coil tubing motors for drilling in composite/cast iron frac plugs. Wells are completed with multiple-fractured zones and the zones are isolated with drill-able plugs. Coil Tubing is used to drill these plugs to allow for maximum production rate.

 

Industry Overview

 

Demand for our services depends on oil and natural gas industry activity and expenditure levels that are directly affected by trends in oil and natural gas prices. Demand for our services and products is particularly sensitive to the level of exploration, development, and production activity of, and the corresponding capital spending by, oil and natural gas companies, including national oil companies.  Prices for oil and natural gas are subject to large fluctuations in response to relatively minor changes in the supply of and demand for oil and natural gas, market uncertainty, and a variety of other factors that are beyond our control.

 

2
 

 

 

The current fluctuations in price for oil and natural gas, and the drive for the United States to achieve energy independence, have invigorated the market with increased exploration, development, and production activity, resulting in a corresponding increase in the demand for our natural gas well services and products.  

 

In North America, the industry experienced an unprecedented decline in drilling activity and rig count during 2009.  These declines, coupled with natural gas storage levels reaching record levels, resulted in severe margin contraction in 2009.  Over the past few years we have seen continued growth in our revenues. After triple digit growth in 2011 and double digit growth in 2012 we experienced single digit growth in 2013. The small to intermediate oil and gas fields continue to show strong activity

 

Prices for oil and natural gas are subject to large fluctuations in response to relatively minor changes in the supply of and demand for oil and natural gas, market uncertainty, and a variety of other economic factors that are beyond our control.  Any prolonged reduction in oil and natural gas prices will depress the immediate levels of exploration, development, and production activity.  Perceptions of longer-term lower oil and natural gas prices by oil and natural gas companies can similarly reduce or defer major expenditures given the long-term nature of many large-scale development projects.

 

Resources

 

Resources essential to our business, including tools and shop supplies required to perform the services, are normally readily available.   We are always seeking ways to ensure the availability of resources, as well as manage their costs.

 

Customers

 

We service small, independent gas fields.

 

Employees

 

We currently have one employee, the President.

 

Governmental Regulation and Environmental Matters

 

We are subject to numerous environmental, legal, and regulatory requirements related to our operations worldwide.  In the United States, these laws and regulations include, among others:

 

      -the Comprehensive Environmental Response, Compensation, and Liability Act;
      -the Resource Conservation and Recovery Act;
      -the Clean Air Act;
      -the Federal Water Pollution Control Act; and
      -the Toxic Substances Control Act.

 

In addition to the federal laws and regulations, individual states where we do business often have numerous environmental, legal, and regulatory requirements by which we must abide.  

 

Changes in environmental requirements may negatively impact demand for our services.  For example, oil and natural gas exploration and production may decline as a result of environmental requirements (including land use policies responsive to environmental concerns).  State, national, and international governments and agencies have been evaluating climate-related legislation and other regulatory initiatives that would restrict emissions of greenhouse gases in areas in which we conduct business.  Because our business depends on the level of activity in the oil and natural gas industry, existing or future laws, regulations, treaties or international agreements related to greenhouse gases and climate change, including incentives to conserve energy or use alternative energy sources, could have a negative impact on our business if such laws, regulations, treaties, or international agreements reduce the worldwide demand for oil and natural gas.  Likewise, such restrictions may result in additional compliance obligations with respect to the release, capture, and use of carbon dioxide that could have an adverse effect on our results of operations, liquidity, and financial condition.

 

We are a provider of motors to the hydraulic fracturing industry, a process that creates fractures extending from the well bore through the rock formation to enable natural gas or oil to move more easily through the rock pores to a production well.  Bills pending in the United States House and Senate have asserted that chemicals used in the fracturing process could adversely affect drinking water supplies.  The proposed legislation would require the reporting and public disclosure of chemicals used in the fracturing process.  This legislation, if adopted, could establish an additional level of regulation at the federal level that could lead to operational delays and increased operating costs. During the first quarter of 2010, the United States Environmental Protection Agency announced it will begin a detailed scientific study of hydraulic fracturing and the alleged effect on surface and ground water.  The adoption of any future federal or state laws or implementing regulations imposing reporting obligations on, or otherwise limiting, the hydraulic fracturing process could make it more difficult to complete natural gas and oil wells and could have an adverse impact on our future results of operations, liquidity, and financial condition.

 

 

 

3
 

 

ITEM 2.                      DESCRIPTION OF PROPERTY

 

Our corporate office are located in Heath, Texas and we operate predominately out of a mobile unit (RV) enabling us to be on-site when necessary.

 

ITEM  3.                      LEGAL PROCEEDINGS

 

The Company is involved in one legal proceeding. On June 15, 2010, the Company was served withOn August 2, 2021, the Company filed a lawsuit from National Oilwell Varco LP (“VARCO”), a vendor of the Company, for $114,065, related to unpaid invoices from October 25, 2007 to September 30, 2008.   During April, 2011 the Company agreed to a settlement that would require the Company to pay $122,304 over the next 24 months in equal installments of $5,096 month. The parties to the settlement also signed a judgment for $140,000 that will only be filed in the event of a default by the Company. As of August 9, 2012 the Company failed to make payments in May, June and July and technically is in default, therefore the Company accrued an additional $29,141 ($25,935 of principal and $3,206 of interest) to true-up the balance to the $140,000 original judgment, as agreed. In August 2012 the Company and VARCO agreed that the Company will resume payments by August 20, 2012 and will continue to make such payments by the 15th of each month thereafter as set forth in the original agreement. The balance was paid off in 2013.. In consideration for this agreement the Company agreed to pay VARCO an additional $1,500. VARCO retains the right to execute the original agreement should the Company breach this amendment. The balance owed at December 31, 2013 and December 31, 2012 was $0 and $35,672, respectively.

 

ITEM 4.                      SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

 

None

 

 

 

 

 

 

 

 

4
 

 

PART II

 

ITEM 5.                       MARKET FOR REGISTRANT’S COMMON EQUITY AND RELATED STOCKHOLDERS MATTERS

 

As of December 31, 2013 the Common Stock is not trading.

 

Dividends

We have not paid cash dividends on any class of common equity since formation and we do not anticipate paying any dividends on our outstanding common stock in the foreseeable future.

 

Warrants

The Company has no warrants outstanding.

 

 

ITEM 6.                      SELECTED FINANCIAL DATA

 

Not applicable for smaller reporting companies.

 

 

ITEM 7.                      MANAGEMENT DISCUSSIONS AND ANALYSIS OR PLAN OF OPERATION

 

SUMMARY OF 2013

 

EXECUTIVE OVERVIEW: After triple digit growth in 2011 and double digit growth in 2012 we experienced single digit growth of 7% in 2013 to $652,450. The first half of the year was very strong with all sales activity being realized and the second half we did not receive any new contracts although the small to intermediate oil and gas fields continue to show strong activity. Our cost of goods sold as a percent of sales increased versus 2012 due to the expenses related to running the chemical reprocessing operations.

 

Material Changes in Results of Operations

 

Results for the Year Ended December 31, 2013

 

REVENUE:

Our revenue for the year ended December 31, 2013 was $652,450 versus $608,209 for the year ended December 31, 2012.  The year-over-year increase in revenue of $44,241 is due to a number of large jobs with our largest customer and additional revenues related to chemical use and reprocessing of the chemicals in the hydraulic fracturing process. The sales were $210,300 for comparative fracturing services versus 2012 ($608,209) and $442,150 for the chemical use and reprocessing versus $0 in 2012.

 

COST OF SALES:

Cost of Sales were $471,095 for the year ended December 31, 2013 versus $213,835 for the same period in 2012.  Depreciation expense was $51,999 and $103,925 for the year ended December 31, 2013 and 2012, respectively.  Backing out depreciation, net cost of sales were $419,096 and $109,910 for the year ended December 31, 2013 and 2012, respectively.  The increase in net cost of sales as a percentage of revenue (72.2% in 2013 and 18.2% in 2012) is impacted by material and contract labor costs associated with the chemical additive and its reprocessing.

 

GROSS PROFIT

Gross profit for the year ended 2013 was $181,355 or 27.8% versus $394,374 or 64.8% for the year ended December 31, 2012. Adding back depreciation of $51,999 and $103,925 for 2013 and 2012, respectively, gross profit would have been $233,354 (35.8%) compared to $498,299 (81.9%), respectively. The change year-over-year of negative 46.1 percentage points is due to lower margin on the fracturing chemical and its reprocessing versus standard fracturing services (impact of about $280,000: Equipment rental and supplies $200,000 and contract services $80,000).

 

OPERATING EXPENSES:

Operating expenses were $388,560 for the year ended December 31, 2013 versus $280,824 for the year ended December 31, 2012.   The increase in expenses of $107,736 is due to a net increase in salaries/contract services of $180,000 as the Company incurred $265,000 of compensation to the President. This was partially off-set by a decrease in rent and other related facility costs (no longer renting building space).

 

5
 

 

 

NET INCOME (LOSS):

Net loss for the year ended December 31, 2013 was $203,064 versus net income of $102,206 for the year ended December 31, 2012.   The decreased profit is related to the items discussed above.

 

 

LIQUIDITY AND CAPITAL RESOURCES:    The Company plans for liquidity needs on a short term and long term basis as follows:

 

Trends, events or uncertainties impact on liquidity:

The Company knows of no trends, additional events or uncertainties that would impact other than the reduced revenues during the second half of 2013.

 

Short Term Liquidity:

The Company has an accumulated deficit of $297,107 as of December 31, 2013.   The Company has relied on external sources of financing to assist short-term working capital needs; through bank loans and shareholder advances.  If sales do not rebound the Company will need additional shareholder advances to pay for expenses.

 

Long Term Liquidity:

The long term liquidity needs of the Company are projected to be met primarily through the cash flow provided by operations. Cash flow from Operating Activities will struggle to be positive in 2014 if new contract are not signed. Long-term liabilities total approximately $32,500 at December 31, 2013 and we plan to fund these liabilities through cash flows from operations or if need be shareholder advances.

 

Capital Resources

 

As of December 31, 2013, the Company had notes payable of $142,704 for vehicles purchased.  As of the date of this filing the Company had no additional commitments other than what is disclosed in the footnotes to the financial statements.  

 

Trends, Events or Uncertainties

 

Prior to fiscal 2013 the Company did not experience noticeable sales trends.  Sales revenue typically followed the oil and gas market and when prices increased business usually remained strong.  Historically, when oil and gas prices fell, sales revenue for the Company decreased. In 2013 the Company received significant business from one customer in the first half of the year and then did not gain additional business in the second half of the year. The trend of no business from this one customer continues.

 

Material Changes in Financial Condition

 

WORKING CAPITAL: Working Capital as of December 31, 2013 was negative $34,984.  This is a decrease of about $207,000 versus December 31, 2012 of $172,098.  The decrease is mainly due to decreased accounts receivable of $225,650, a decrease in the VARCO note $36,000 partially off-set by a decrease in cash $41,000.

 

Critical Accounting Policies:

 

The Company’s critical accounting policies and estimates are depreciation expense and interest expense on loans.  Please reference footnotes two and four.

 

SHAREHOLDERS’ EQUITY: Shareholders’ Equity decreased by $203,064 due to the net loss of in the year ended December 31, 2013.

 

UNUSUAL EVENTS: None.

 

FUTURE FINANCIAL CONDITION: Fiscal year 2014 started as 2013 ended, no new contracts and the Company President continues to survey the environment for new opportunities. The cold inclement weather in North Texas has not been favorable and we spend time with our customers listening to their voice and make necessary changes to improve service and market accordingly.

 

Management Advisors

 

Yorkdale Capital, LLC advises and assists the President with many aspects related to the regulatory filings including assistance with the consolidation of financial statements for the quarterly reviews and year-end audit. Yorkdale Capital, LLC or its principals are shareholders. Yorkdale Capital is paid reasonable fees for consulting and advisory services. Payments to Yorkdale in both 2013 and 2012 were $19,000 and $11,250, respectively.

 

6
 

 

 

 

ITEM 7A.            QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not required for a smaller reporting company.

 

 

ITEM 8.               FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 

The financial statements of the Company, together with the independent auditors' report thereon of The Hall Group, CPAs appear on pages F-1 through F-12 of this report.

 

 

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

None.

 

 

ITEM 9A.            CONTROLS AND PROCEDURES

 

 

Evaluation of Disclosure Controls and Procedures

 

We carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) as of December 31, 2013.  This evaluation was accomplished under the supervision and with the participation of our chief executive officer / principal executive officer, and chief financial officer / principal financial officer who concluded that our disclosure controls and procedures are not effective to ensure that all material information required to be filed in the annual report on Form 10-K has been made knownRegistration Statement on Form 10 to them.

 

Disclosure, controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by in our reports filed underregister the Company’s shares of common stock, $0.001 par value (“Common Stock”) under Section 12(g) of the Securities Exchange Act of 1934, as amended (the "“Exchange Act"). is accumulated and communicated to the issuer's management, including its principal executive and principalThe Company received no proceeds as result of such registration.

 

Prior to December 23, 2021, Repository Services LLC, a Wyoming financial officers, or persons performing similar functions, as appropriate to allow timelylimited liability company (“Repository Services”), held 8,123,230 shares, or 73.3% of the issued and outstanding shares of, Common Stock and 100% of the issued and outstanding shares of preferred stock, par value $0.001 (“Preferred Stock”), of the Company. On December 23, 2021, Multiband Global Resources, LLC, a Delaware limited liability company (“Multiband”), acquired 7,923,230 shares, or 71.5% of the issued and outstanding shares of, Common Stock and 100% of the issued and outstanding shares of Preferred Stock in exchange for a cash payment of $500,000 paid by Multiband to Repository Services. decisions regarding required disclosure.

 Also in December 2021, Repository Services transferred the remaining 200,000 shares of Common Stock that were not purchased by Multiband to Katell Survivors Trust (Gerald Katell, Trustee), an unrelated third party.

 

Since September 25, 2015, the Company has met the definition of a "shell" company, whose sole purpose was to locate and consummate a merger or acquisition with a privately-held operating company private entity.

 

Based upon an evaluation conducted for the period ended December 31, 2013, our Chief ExecutiveOn January 21, 2022, the Company issued a Secured Promissory Note (“Note”) to GNET ATC, Inc. (“GNET”) in an aggregate principal amount of $44 million. The Note bears interest at a rate of 10% per annum and matures on January 21, 2025 (the “Maturity Date”). The principal balance of the Note must be repaid in equal monthly installments commencing September 23, 2022, with the final payment due on the Maturity Date. Interest is calculated on the basis of a 360-day year for the actual number of days elapsed and Chief Financial Officeris payable as of December 31, 2013 and asa balloon payment on the Maturity Date. Prepayments are permitted subject to certain terms and conditions. The Note is secured by substantially all of the date of this Report, has concluded that as of the end of the periods covered by this report, we have identified the following material weaknesses in our internal controls:

 

·Reliance upon independent financial reporting consultants for review of critical accounting areas and disclosures and material non-standard transaction.

 

·Lack of sufficient accounting staff which results in a lack of segregation of duties necessary for a good systemCompany’s assets. The proceeds of the Note were used for working capital and to fund the acquisition of AMR Resources, LLC (“AMR Resources”) as described below.

 

On February 1, 2022, the Company completed the acquisition of all outstanding limited liability company interests of AMR Resources for $40.5 million in cash (the “AMR Resources Acquisition”), pursuant to a Unit Purchase Agreement (the “AMRR Agreement”), dated February 1, 2022, by and between the Company and OnePath Systems, LLC (“OnePath”), subject to post-closing adjustment as contemplated therein. In contemplation of the AMR Resources Acquisition, OnePath formed AMR Resources and contributed those assets necessary for the operation of internal control.

 

In orderits integrated services business. As a result of tothe remedy our existing internal control deficiencies, as our finances allow,AMR Resources Acquisition, the Company acquired 100% weof will hire additional accounting staffthe outstanding limited liability company interests of AMR Resources and the former integrated services business of OnePath and AMR Resources became a wholly owned subsidiary of the Company.

  

 4 
 

 

 AMR Resources designs, deploys and maintains integrated low-voltage systems for the commercial and residential market. This includes Life Safety, Physical Security, Audio-Visual, Networking and Structured Cabling solutions.  With approximately 300 employees and over 5,000 subcontractors, AMR Resources has a national footprint, with a heavy concentration in the Southeastern United States and is headquartered in the Atlanta, Georgia metropolitan area.

Management’s Annual Report 

The Company continues to seek to acquire assets or shares of one or more additional privately-held entities actively engaged in revenue generating commercial activities in exchange for the Company’s securities or cash. The Company is considering other acquisition candidates but has not entered into any acquisition agreements for additional acquisitions.

 

The Common Stock is quoted on the OTC Markets Group, Inc.’s Pink Open Market Platform (the “Pink Sheets”) under the symbol “AMRR”. Our office is located at 4301 West Bank Drive, Suite 110B, Austin, Texas 78746, and our telephone number is (866) 365-0620.    

 

The Company’s internet website address is www.amrresources.com. We make available, free of charge, through the “SEC Filings” section of our website, our Annual Reports on Internal Control OverForm 10-K, Quarterly Financial Reporting

 

Our management is responsible for establishingReports on Form 10-Q, Current Reports on Form 8-K and maintaining adequate internal control over financial reporting, as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act. Our internal control system was designed to provide reasonable assurance regarding the reliabilityamendments to these reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after these forms are filed with, or furnished to the SEC. Any material we file with or furnish to the SEC is also maintained on the SEC website, www.sec.gov. Security holders may send communications to our Board of Directors or individual Directors by writing to the party for whom the communication is intended at American Metals Recovery and Recycling Inc., attention: Corporate Secretary, 4301 West Bank Drive, Suite 110B, Austin, Texas 78746 or by email at Info@amrresources.com .. Our website address is included in this Annual Report as a textual reference only. The information on or accessible through our website is not incorporated by reference into this Annual Report or other documents we file with, or furnish to, the SEC. We intend to use our website as a means of financial reporting and the preparation of financial statements for external purposes, in accordancedisclosing material non-public information and for complying with generally accepted accounting principles in the United States of America.  Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance records that, in reasonable detail, accuratelyour disclosure obligations under Regulation FD. Those disclosures will be included on our website in the “SEC Filings” section. Accordingly, investors should monitor our website, in addition to following our press releases, SEC filings and fairly reflect the transactionspublic conference calls and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

 

7
 

 

 

Because of inherent limitations, a system of internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate due to change in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

Our management conducted an evaluation of the effectiveness of our internal control over financial reporting using the criteria set forth by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control—Integrated Framework at December 31, 2013.   Based on its evaluation, our management concluded that, as of December 31, 2013, our internal control over financial reporting was not effective because of limited staff and a need for a full-time chief financial officer.  A material weakness is a deficiency, or a combination of control deficiencies, in internal control over financial reporting such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.

 

This annual report does not include an attestation report of the Company’s registered public accounting firm regarding internal control over financial reporting.  Management’s report is not subject to the attestation by the Company’s registered public accounting firm pursuant to the rules of the SEC that permit the Company to provide only management’s report in this annual report.

 

Changes in Internal Controls over Financial Reporting

 

We have not yet made any changes in our internal controls over financial reporting that occurred during the period covered by this report on Form 10-K that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

 

 

8
 

 

PART III

 

ITEM 10.                      DIRECTORS AND EXECUTIVE OFFICERS OF REGISTRANT

 

NameAgePosition
Lewis Andrews62Director, President; Secretary and Treasurer

 

Background of the Director and Executive Officer:

 

Lewis Andrews

 

Mr. Andrews, upon graduating from high school in 1976, began his career in the oilfields.  He was employed by M&B Fishing and Rental Tool in Monahans, Texas from 1976 to 1984 serving in ever increasing positions of responsibility.  In 1984 Mr. Andrews joined Andco Fishing Tools in Colorado, working throughout the Rocky Mountains, until 1992 when he left Andco and formed, with his brother, Boyd Fishing Tools in Brighton, Colorado.  Mr. Andrews and his brother grew their business and after four years, sold it to a competitor.

 

In 1996 Mr. Andrews was recruited by Baker Oil Tools in Tyler, Texas as a troubleshooter due to his experience gained in the field.  After six years, in 2002, Baker Oil Tools promoted Mr. Andrews to Fishing Manager, Australia, New Zealand and Papua, New Guinea, based in Perth, Australia.  After spending four years growing the business in the Pan-Pacific region, Mr. Andrews returned to the USA and in 2006 founded Coil Tubing Motors Corporation.  In 2009, Mr. Andrews formed Premier Oil Field Services, Inc., and is the President.

 

 

ITEM 11.                      EXECUTIVE COMPENSATION

 

Following is what our officers received in 2013 and 2012 as compensation.

 

NameCapacity ServedAggregate Remuneration
Lewis AndrewsDirector, President; Secretary and Treasurer

2013: $ 242,040

2012: $ 52,500

 

As of the date of this filing, our sole officer is thewebcasts.

 

Business Objectives of the Company

 

As of the date of this Annual Report, the Company’s operations consist of the commercial activities of AMR Resources which was acquired on February 1, 2022. AMR Resources designs, deploys and maintains integrated low-voltage systems for the commercial and residential market. This includes Life Safety, Physical Security, Audio-Visual, Networking and Structured Cabling solutions.  With approximately 300 employees and over 5,000 subcontractors, AMR Resources has a national footprint, with a heavy concentration in the Southeastern United States and is headquartered in the Atlanta, Georgia metropolitan area.

 

The Company had no business operations from September 25, 2015 until February 1, 2022, when the AMR Resources Acquisition was consummated. Management (which includes possible participation by our majority shareholder) intends to only employee.

 

 

 

 

 

 

9
 

 

ITEM 12.                     SECURITY OWNERSHIP OF MANANGEMENT AND BENEFICIAL OWNERS

 

As of December 31, 2013 the following persons are known todirect its efforts and limited resources to pursue additional business acquisitions. The Company intends to continue to seek, investigate and, if such investigation warrants, acquire one or more additional operating businesses. The Company will not restrict our search to any specific business, industry, or geographical location and the Company to own 5% or more of the Company's Voting Stock:

 

Title / Relationship to IssuerName of OwnerNumber of Shares OwnedPercent of Total
Director, President; Secretary and TreasurerLewis Andrews6,400,00087.15%
    
    

 

 

ITEM 13.                    CERTAIN RELATIONSHIPS AND RELATED PARTY TRANSACTIONmay participate in a business venture of virtually any kind or nature and we have not established any particular criteria upon which we consider a business opportunity. This discussion of potential business acquisitions herein is purposefully general and is not meant to be restrictive of the Company's virtually unlimited discretion to search for and enter into potential business opportunities. Management anticipates that it may be limited in our ability to participate in potential business venture because the Company has nominal assets and limited financial resources.

 

General Overview

 

As of the date of this filing, the Company owes their Chief Executive Officer for amounts advanced in prior years to fund operating expenses.   As of December 31, 2013, the Company had an amount payable to a shareholder 

COVID-19.

 

The coronavirus disease (COVID-19) pandemic and other events (such as a significant outbreak of variations thereof or other infectious diseases could adversely affect) have adversely affected, the economies and financial markets worldwide, and the business of any potential target business with which we consummate an initial business combination could be materially and adversely affected. Many of the COVID-19 restrictions that had been imposed in the United States during the pandemic have since been lifted and commercial activity in the United States generally has increasingly returned to pre-pandemic practices and operations, although recent variants of the virus have caused increased infections and resulted in governments and businesses implementing or adopting certain requirements. It is possible that COVID-19 restrictions may be reimposed and our business may be materially adversely affected.

 

Company is a Shell Company with Penny Stock.

 

As of the date of this Annual Report, the Company is a shell for accounting and consulting services.

 

There are no other agreements or proposed transactions, whether direct or indirect, with anyone, but more particularly with any of the following:

 

  ● a director or officer of the issuer;
  ● any principal security holder;
  ● any promoter of the issuer;
  ● any relative or spouse, or relative of such spouse, of the above referenced persons.

 

 

ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES

 

(1) AUDIT FEES

 

The aggregate fees billed for professional services rendered by our auditors, for the audit of the registrant's annual financial statements and review of the financial statements included in the registrant's Form 10-K or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements was $13,538 and $9,000 for the years ended December 31, 2013 and 2012, respectively.

 

(2) AUDIT-RELATED FEES

 

The aggregate fees billed for professional services rendered by our auditors, for the registrant’s quarterly financial statements and review of the unaudited financial statements included in the registrant’s Form 10-Q was $10,900 and $15,000 for the years ended December 31, 2013 and 2012, respectively.

 

(3) TAX FEES

 

NONE

 

(4) ALL OTHER FEES

 

NONE

 

 company under Rule 405 and 12b-2 of the Exchange Act which defines a shell company as an issuer that that has no or nominal operations and either (i) no or nominal assets, (ii) assets consisting solely of cash and cash equivalents; or (iii) assets consisting of any amount of cash and cash equivalents and nominal other assets.

 

 105 
  

 

(5) AUDIT COMMITTEE POLICIES AND PROCEDURES

 

Audit Committee Financial Expert:

  

The Securities and Exchange Commission has adoptedCompany’s common stock is a “penny stock,” as defined in Rule 3a51-1 promulgated by the SEC under the Exchange Act. The penny stock rules require a broker-dealer, prior to a transaction in penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the nature and level of risks in the penny stock market. These disclosure rules implementing Section 407 of the Sarbanes-Oxley Act of 2002 requiringhave the effect of reducing the level of trading activity in the secondary market for a stock that becomes subject to the penny stock rules. So long as the common stock of the Company is subject to the penny stock rules, it may be more difficult to sell the Company’s common stock.

  

As a shell issuer, we lack the availability of the use of Rule 144 by security holders and the lack of liquidity in our stock.

 

Effect of Amended Rule 15c2-11 on the Company’s securities.

 

The SEC released and published a Final Rulemaking on Publication or Submission of Quotations without Specified Information amending Rule 15c2-11 under the Exchange Act (the "Amended Rule 15c2-11"). To be eligible for public quotations on an ongoing basis, Amended Rule 15c2-11 modifies the "piggyback exemption" that required that (i) the specified current information about the company is publicly available, and (ii) the security is subject to a one-sided (i.e. a bid or offer) priced quotation, with no more than four business days in succession without a quotation. Under Amended Rule 15c2-11, shell companies like the Company (and formerly suspended securities) may only rely on the piggyback exemption in certain limited circumstances. The Amended Rule 15c2-11 requires, among other requirements, that a broker-dealer has a reasonable basis for believing that information about the issuer of securities is accurate. Our security holders may find it more difficult to deposit common stock with a broker-dealer, and if deposited, more difficult to trade the securities on the Pink Sheets. The Company intends to provide the specified current information under the Exchange Act but there is no assurance that a broker-dealer will accept our common stock or if accepted, that the broker-dealer will rely on our disclosure of the specified current information.

 

 6 
 

 

Unavailability of Rule 144 for Resale.

 

Rule 144(i) “Unavailability to Securities of Issuers With No or Nominal Operations and No or Nominal Non-Cash Assets” provides that Rule 144 is not available for the resale of securities initially issued by an issuer that is a shell company. We have identified our company as a shell company and, therefore, the holders of our securities may not rely on Rule 144 to have the restriction removed from their securities without registration or until the Company is no longer identified as a shell company and has filed all requisite periodic reports under the Exchange Act for the period of twelve (12) months.

 

As a result of our classification as a shell company, our investors are not allowed to rely on the “safe harbor” provisions of Rule 144, promulgated pursuant to the Securities Act of 1933, as public companies to disclose information about “audit committee financial experts.”  As of the date of this Annual reportamended (“Securities Act”), so as not to be considered underwriters in connection with the sale of our securities until one year from the date that we cease to be a shell company. This will likely make it more difficult for us to attract additional capital through subsequent unregistered offerings because purchasers of securities in such unregistered offerings will not be able to resell their securities in reliance on Rule 144, a safe harbor on which holders of restricted securities usually rely to resell securities.

 

Very Limited Liquidity of our Common Stock.

 

Our Common Stock occasionally trades on the Pink Sheets and there is a very limited active market in our common stock. As a result, there is only limited liquidity in our Common Stock.

 

Russia-Ukraine Conflict

 

The Russian-Ukraine conflict is a global concern. The Company does not have any direct exposure to Russia or Ukraine through its operations, employee base, investments or sanctions. We have not yet experienced direct effects from the conflict. We have no basis to evaluate the possible risks of this conflict.

 

 7 
 

 

ITEM 1A. RISK FACTORS

 

Not applicable.

 

ITEM 1B. UNRESOLVED STAFF COMMENTS

 

None.

 

ITEM 2. PROPERTIES

 

The Company’s corporate headquarters are comprised of 2,193 square feet of rented office space located at 4301 West Bank Drive, Suite 110B, Austin, Texas 78746. AMR Resources is located in 38,400 square feet of rented office space in Kennesaw, Georgia.  The Company believes that the office facilities are sufficient for the foreseeable future.

 

ITEM 3. LEGAL PROCEEDINGS

 

From time to time, we are a party to or otherwise subject to legal proceedings that arise in the ordinary course of our business. As of the date of this Annual Report, we dowere not havesubject a standing Audit Committee.   The functions of the Audit Committee are currently assumed by our Board of Directors.  Additionally, we do not have a member of our Board of Directors that qualifies as an “audit committee financial expert.”  For that reason, we do not have an audit committee financial expert.to any material pending legal proceedings.

  

Policies and Procedures:ITEM 4. MINE SAFETY DISCLOSURES

 

The Board of Directors policies and procedures for hiring Independent Principal Accountants are summarized as follows:

 

·The Board ensures that the accountants are qualified by reviewing their valid license information as filed with the Texas State Board of Public Accountancy.
·The Board ensures that the firm is registered with the PCAOB.
·The Board ensures that the accountants are independent by reviewing Regulation S-X, section 210.2-01(b).

 

(6) If greater than 50 percent, disclose the percentage of hours expended on the principal accountant's engagement to audit the registrant's financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant's full-time, permanent employees.

 

Not applicable.

 

 

 

 

 

 

 

 

 

 

 

11
 

 

 

ITEM 15.                  EXHIBITS, FINANICAL STATEMENTS AND REPORTS ON FORM 8-K 

Note applicable.

 

PART II

  

(a) The following documents are filed as part of this report:  Included in Part II, Item 7 ofITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS this report:

 

Report of Independent Registered Public Accounting Firm

 

Consolidated Balance Sheets as of December 31, 2013 and 2012

 

Consolidated Statements of Operations for the Years Ended December 31, 2013 and 2012

 

Consolidated Statement of Changes in Stockholders’ Equity for the Years Ended December 31, 2013 and 2012

 

Consolidated Statements of Cash Flows for the Years Ended December 31, 2013 and 2012

 

Notes to the Consolidated Financial Statements

 

(b) There were no 8-K’s filed in 2013 and 2012.

 

(c)           Exhibits

 

 

 

 

 

 

 

 

 

 

 

 

 

12
 

 

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Annual Report on Form 10-K to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

PREMIER OIL FIELD SERVICES, INC.

 

By:           /s/  Lewis Andrews

Lewis Andrews

Director, President; Secretary and Treasurer

 

Dated:  April 2, 2014

 

 

 

 

13
 

 

PREMIER OIL FIELD SERVICES, INC.

CONSOLIDATED FINANCIAL STATEMENTS

DECEMBER 31, 2013

 

TABLE OF CONTENTS

 

 

 

 

F-1
 

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

 

To the Board of Directors and Management of

Premier Oil Field Services, Inc.

Rockwall, Texas

 

We have audited the accompanying consolidated balance sheets of Premier Oil Field Services, Inc. as of December 31, 2013 and 2012, and the related consolidated statements of operations, cash flows and stockholders’ equity for the years then ended.  These financial statements are the responsibility of the Company’s management.  Our responsibility is to express an opinion on these financial statements based on our audits.

 

We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States).  Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.  An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that our audits provide a reasonable basis for our opinion.

 

We were not engaged to examine management’s assertion about the effectiveness of Premier Oil Field Services, Inc.’s internal control over financial reporting as of December 31, 2013 and 2012 and, accordingly, we do not express an opinion thereon.

 

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Premier Oil Field Services, Inc. as of December 31, 2013 and 2012, 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.

 

The accompanying financial statements have been prepared assuming thatAND ISSUER PURCHASES OF EQUITY SECURITIES.

 

The Common Stock is quoted on the Company will continue as a going concern.  As discussed in Note 6 to the financial statements, the Company has suffered significant lossesPink Sheets under the symbol “AMRR”.

 

The Company has one class of Common Stock, and will require additional capitalis authorized to develop its business until the Company either (1) achieves a level of revenues adequate to generate sufficient cash flows from operations; or (2) obtains additional financing necessary to support its working capital requirements.  These conditions 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 6.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

 

/s/  The Hall Group, CPAs

The Hall Group, CPAs

Dallas, Texas

 

 

March 27, 2014

 

 

 

 

F-2
 

 

 

 

 

PREMIER OIL FIELD SERVICES, INC.

Consolidated Balance Sheets

December 31, 2013 and 2012

 

 

 

The Accompanying Notes are an Integral Part of these Consolidated Financial Statements.

 

 

F-3
 

 

PREMIER OIL FIELD SERVICES, INC.

Consolidated Statements of Operations

For the Years Ended December 31, 2013 and 2012

 

 

The Accompanying Notes are an Integral Part of these Consolidated Financial Statements.

 

 

 

F-4
 

 

PREMIER OIL FIELD SERVICES, INC.

Consolidated Statement of Changes in Stockholders’ Equity

For the Years Ended December 31, 2013 and 2012

 

 

The Accompanying Notes are an Integral Part of these Consolidated Financial Statements.

 

 

F-5
 

 

PREMIER OIL FIELD SERVICES, INC.

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2013 and 2012

 

 

The Accompanying Notes are an Integral Part of these Consolidated Financial Statements.

 

 

F-6
 

 

PREMIER OIL FIELD SERVICES, INC.

Notes to the Consolidated Financial Statements

December 31, 2013 and 2012

 

NOTE 1 – NATURE OF ACTIVITIES AND SIGNIFICANT ACCOUNTING POLICIES

 

Nature of Activities, History and Organization:

 

Premier Oil Field Services, Inc. (The “Company” or "Premier") serves the oil and gas industry with down-hole drilling motors. These motors are used in the oil and gas well drilling process to drill out frac plugs and other debris in the well bore.  The Company is located in Heath, Texas and was incorporated on June 29, 2009 under the laws of the State of Nevada.

 

Premier Oil Field Services, Inc., is the parent company of Coil Tubing Motors Corporation, (“CTM”), a company incorporated under the laws of the State of Texas. CTM was established in June 2006.

 

Premier is a private holding company established under the laws of Nevada on June 29, 2009, was formed in order to acquire 100% of the outstanding membership interests of CTM.  On June 30, 2009, Premier issued 7,000,000 shares of common stock in exchange for a 100% equity interest in CTM.  As a result issue 50,000,000 shares of Common Stock. As of the share exchange, CTM became the wholly owned subsidiary of Premier.  As a result, the members of CTM owned a majority of the voting stock of Premier.  The transaction was accounted for as a reverse merger whereby CTM was considered to be the accounting acquirer as its members retained control of Premier after the exchange, although Premier is the legal parent company.  The share exchange was treated as a recapitalization of Premier.  As such, CTM, (and its historical financial statements) is the continuing entity for financial reporting purposes. The financial statements have been prepared as if Premier had always been the reporting company and then on the share exchange date, had changed its name and reorganized its capital stock.  The share exchange transaction was effected to change the state of incorporation to allow the opportunity for a reduction of franchise taxes under the new Texas franchise tax calculations and to facilitate the initial public offering.  At the time of the exchange transaction, Premier had no assets or liabilities and CTM had assets of approximately $409,000 with equity of approximately $81,800.

 

The capital structure of Premier is presented as a consolidated entity as if the transaction had been effected in 2006 to consistently reflect the number of shares outstanding. However, the capital structure as presented is different that the capital structure that appears in the historical statements of CTM, in earlier periods due to the recapitalization accounting.

 

The Company operates on a calendar year-end.    Due to the nature of their operations, the Company operates in only one business segment.

 

Basis of Accounting and Consolidation:

 

The Company prepares its financial statements on the accrual basis of accounting.  It has one wholly owned subsidiary, Coil Tubing Motors, Corporation, which is consolidated. All intercompany balances and transactions are eliminated.  

 

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States and applicable Securities and Exchange Commission (“SEC”) regulations.

 

Significant Accounting Policies:

 

The Company’s management selects accounting principles generally accepted in the United States of America and adopts methods for their application.  The application of accounting principles requires the estimating, matching and timing of revenue and expense.

 

The financial statements and notes are representations of the Company’s management which is responsible for their integrity and objectivity. Management further acknowledges that it is solely responsible for adopting sound accounting practices, establishing and maintaining a system of internal accounting control and preventing and detecting fraud.  The Company's system of internal  accounting control is designed to assure, among other items, that  1) recorded  transactions  are valid;  2) valid  transactions  are recorded;  and  3) transactions  are  recorded in the proper  period in a timely  manner to produce financial  statements which present fairly the financial  condition,  results of operations  and cash  flows of the  Company  for the  respective  periods  being presented.

 

 

F-7
 

 

Cash and Cash Equivalents:

 

All highly liquid investments with original maturities of three months or less are included in cash and cash equivalents.  All deposits are maintained in FDIC insured depository accounts in local financial institutions and balances are insured up to $250,000.

 

Fair Value of Financial Instruments:

 

In accordance with the reporting requirements of ASC 820,  the Company  calculates the fair value of its assets and  liabilities which qualify as financial  instruments  under this statement and includes this additional information in the notes to the financial statements  when the fair value is different  than the  carrying  value of those financial instruments.  

 

The carrying amounts of cash, cash equivalents, accounts receivable, accounts payable and notes payable approximate  their fair values due to the short-term maturities of these instruments.  The carrying amount of the Company’s marketable securities and capital leases approximate fair value due to the stated interest rates approximating market rates.

 

Accounts Receivable:

 

Accounts receivable are carried at their face amount, less an allowance for doubtful accounts.  On a periodic basis, the Company evaluates accounts receivable and establishes the allowance for doubtful accounts based on a combination of specific customer circumstances and credit conditions, based on a history of write offs and collections.  The Company’s policy is generally not to charge interest on trade receivables after the invoice becomes past due.  A receivable is considered past due if payments have not been received within agreed upon invoice terms.   The Company provides an allowance for all receivables that are greater than 90 days old. Allowances for Doubtful Accounts totaled $0 and $0 at December 31, 2013 and 2011, respectively.  Write offs are recorded at a time when a customer receivable is deemed uncollectible.

 

Revenue Recognition:

 

The Company recognizes revenue in accordance with ASC 605-10.  Revenue will be recognized only when all of the following criteria have been met:

 

Persuasive evidence of an arrangement exists;
Ownership and all risks of loss have been transferred to buyer, which is generally upon shipment or at the time the service is provided;
The price is fixed and determinable; and
Collectability is reasonably assured.

 

All services are billed when rendered and payment is due upon receipt of invoice.

 

Advertising:

 

The Company did not incur any advertising expenses in 2013 or 2012.

 

Cost of Sales:

 

Cost of sales consists primarily of shop supplies and field related expenses.

 

Income Taxes:

 

The Company has adopted ASC 740-10 which requires the use of the liability method in the computation of income tax expense and the current and deferred income taxes payable.

 

Earnings per Share:

 

Earnings per share (basic) is calculated by dividing the net income (loss) by the weighted average number of common shares outstanding for the period covered.  As the Company has no potentially dilutive securities, fully diluted earnings per share is equal to earnings per share (basic).

 

F-8
 

 

 

Use of Estimates:

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures.  Accordingly, actual results could differ from those estimates.

 

Employee Benefit Plans:

 

The Company has no employee benefit plans.

 

 

NOTE 2 – FIXED ASSETS

 

Fixed assets at December 31, 2013 and 2012 are as follows:

 

 

Depreciation expense for the years ended December 31, 2013 and 2012 was $51,999 and $103,925, respectively.

 

In January 2013 the Company sold a vehicle for $29,586 and realized a loss of $3,109 on the transaction. In June the Company disposed of a vehicle generating a gain of $16,083.

 

In February 2012 the Company purchased a trailer for $128,907 and due to misrepresentation by the seller the trailer was returned in August 2012 and the bank released the Company of its obligation which was $114,599 at the time. Other income of $11,613 was recorded on the settlement.

 

 

 NOTE 3 – EQUITY

 

On June 30, 2009, Premier issued 7,000,000May 26, 2022, the Company had 11,081,336 shares of common stock in exchange for a 100% equity interest in CTM.  As a result of the share exchange, CTM became the wholly owned subsidiary of Premier.  As a result, the members of CTM owned a majority of the voting stock of Premier.  The transaction was accounted for as a reverse merger whereby CTM was considered to be the accounting acquirer as its members retained control of Premier after the exchange, although Premier is the legal parent company.  The share exchange was treated as a recapitalization of Premier.  As such, CTM, (and its historical financial statements) is the continuing entity for financial reporting purposes. The financial statements have been prepared as if Premier had always been the reporting company and then on the share exchange date, had changed its name and reorganized its capital stock.  

 

Common Stock issued and outstanding. The Company is authorized to issue 20,000,000 preferredshares of Preferred Stock. As of May 26, 2022, the Company had 600,000 shares at a par value of $0.001 per share. These shares have full voting rights.  At December 31, 2013 and December 31, 2012, there were zero sharesPreferred Stock issued and outstanding.

  

The Company is authorizeddoes not intend to issue 50,000,000 common shares at apay dividends on our Common Stock par value of $0.001 per share. These shares have full voting rights.  At December 31, 2013 and December 31, 2012, there were 7,346,336or Preferred Stock and do not anticipate or contemplate paying cash dividends on our Common Stock or Preferred Stock in the foreseeable future. We currently intend to use all available funds to develop our business. We can give no assurance that we will ever have excess funds available to pay dividends. Any future determination as to the payment of dividends will depend upon critical requirements and limitations imposed by our credit agreements, if any, and 7,346,336 shares issued and outstanding, respectivelysuch other factors as our Board of Directors may consider.

  

 

NOTE 4 – COMMITMENTS AND CONTINGENCIESITEM 6. [RESERVED]

 

 8 
 

 

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

 

Overview.

 

The Company operates out of a mobile trailer as it is on-site at gas fields. The Company uses the President’s home address as its mailing address.

  

At December 31, 2013, the Company had2021, the Company’s business objective was to seek a business combination with an operating company.

 

On January 21, 2022, the Company issued the following outstanding notes$44 million Note payable:

 

  • Vehicle loan from Alliance Bank, dated September 17, 2012, originally for $52,119, at an annual interestto GNET, which bears interest at a rate of 4.7510% due August 17, 2017.  Amount due at December 31, 2013 was $32,513per annum and matures on the Maturity Date, January 21, 2025. The current principal amount due in one year is $10,714.

 

F-9
 

 principal balance of the Note must be repaid in equal monthly installments commencing September 23, 2022, with the final payment due on the Maturity Date. Interest is calculated on the basis of a 360-day year for the actual number of days elapsed and is payable as a balloon payment at the maturity date. Prepayments are permitted subject to certain terms and conditions. The Note is secured by substantially all of the Company’s assets. The proceeds of the Note were used for working capital and to fund the acquisition of AMR Resources as described previously and below.

NOTE 5 – INCOME TAXES 

 

The Company follows Statement of Financial Accounting Standards ASC 740. Deferred income taxes reflect the net effectOn February 1, 2022, the Company acquired 100% of the outstanding limited liability company interests of AMR Resources consisting of the former integrated services business of OnePath for $40.5 million in cash subject to post-closing adjustment as contemplated by the AMRR Agreement, and AMR Resources became a wholly owned subsidiary of the Company. .

 

AMR Resources designs, deploys and maintains integrated low-voltage systems for the commercial and residential market. This includes Life Safety, Physical Security, Audio-Visual, Networking and Structured Cabling solutions.  With approximately 300 employees and over 5,000 subcontractors, AMR Resources has a national footprint, with a heavy concentration in the Southeastern United States and is headquartered in the Atlanta, Georgia metropolitan area.

 

The Company continues to search for one or more potential acquisition targets for a business combination. If we require funds for a particular business combination, because of the size of the business combination of (a) temporary difference between carrying amounts of assets and liabilities for financial purposes and the amounts used for income tax reporting purposes, and (b) net operating loss carryforwards (“NOL”). No net provision for refundable Federal income tax has been made in the accompanying statement of loss because no recoverable taxes were paid previously. Similarly, no deferred tax asset attributable to the net operating loss carryforward has been recognized, as it is deemed more likely than not to be realized.

 

The Company had a net losses for the year ended December 31, 2013 of $203,064 and net income of $102,206 for the year ended December 31, 2012.

 

Deferred tax assets at December 31, 2013 and 2012 consisted of the following:

 

 

The net deferred tax asset generated by the loss carryforward has been fully reserved. The cumulative net operating loss carry-forward was $297,107 at December 31, 2013, and will expire in 2032.

 

The difference in the income tax benefit not shown in the consolidated statements of operations and the amount that would result if the U.S. Federal statutory rate of 25% were applied to pre-tax loss for 2013 and 2012 is attributable to the valuation allowance.

 

The realization of deferred tax benefit is contingent upon future earnings and is fully reserved at December 31, 2013 and 2011.

 

 

NOTE 6 – FINANCIAL CONDITION AND GOING CONCERN

 

The Company has a retained deficit through December 31, 2013 totaling $297,107 and had negative working capital of approximately $35,000.   Because of this retained deficit, the Company most likely will require additional working capital to develop its business operations.

 

The Company has experienced no loan defaults, labor stoppages, legal proceedings or any other operating interruption in 2013.  Therefore, these items will not factor into whether the business continues as a going concern, and accordingly, management has not made any plans to dispose of assets or factor receivables to assist in generating working capital.

 

The Company intends to raise additional working capital either through private placements, and/or bank financing, or additional loans from Management if there is need for liquidity.  Management may also consider reducing administrative costs. There are no assurances that the Company will be able to either (1) achieve a level of revenues adequate to generate sufficient cash flow from operations; or (2) obtain additional financing through either private placement, public offerings and/or bank financing necessary to support the Company’s working capital requirements.  To the extent that funds generated from private placements, public offerings and/or bank financing are insufficient, the Company willor otherwise, we will be required to seek additional financing, which may or may not be available a terms and conditions satisfactory to the Company, if at all. To the extent that additional financing proves to be unavailable when and if needed to consummate a particular business combination, we would be compelled to restructure the transaction or abandon that particular business combination and seek an alternative target business candidate. In addition, if we consummate a business combination, we may require additional financing to fund the operations or growth of the target business. The failure to secure additional financing could have a material adverse effect on the continued development or growth of the target business. The Company’s officers, directors or shareholders are not required to provide any financing to us in connection with or after a business combination.

 

Going Concern.

 

As of December 31, 2021, the Company did not have to raise additional working capital.   No assurance can be given that additional financing will be available, or if available, will be on terms acceptable to the Company.  If adequate working capital is not generated from operations, financing is not available, or the Management cannot loan sufficient funds, the Company may not be able to continue its operationsany business operations. As of December 31, 2021, the Company had assets totaling $138, liabilities totaling $99,263, and a working capital deficit of $99,125.

  

Management believes that the efforts it has made to promote its operation will continue for the foreseeable future.  These conditionsOn January 21, 2022, the Company received $44 million of loan proceeds from issuance of the Note. The Company used $40.5 million of the proceeds to acquire AMR Resources on February 1, 2022. The remaining proceeds of the Note will be used to fund the operating activities of the Company and AMR Resources.

 

Following the AMR Resources Acquisition, we are establishing corporate infrastructure necessary to operate the Company and our wholly owned subsidiary, AMR Resources, as an independent business.

 

We expect that AMR Resources will have negative cash flow and require financial support for the foreseeable future while the Company takes actions necessary establish the operations as a profitable stand-alone business.

 

The continuation of the Company as a going concern is dependent upon (i) our ability to identify future investment opportunities, (ii) our ability to obtain any necessary debt and/or equity financing, (iii) our ability to generate profits from the operation of AMR Resources and (iv) our ability to generate profits from the Company’s future operations. These factors raise substantial doubt aboutregarding the Companys ability to continue as a going concern. The Company’s financial statements for the year ended December 31, 2021 do not include any adjustments relating to the recoverability and classification of recorded asset carrying amounts or the amount and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

 

F-10
 

 

 

NOTE 7 – LEGAL PROCEEDINGS

 

The Company is involved in one legal proceeding. On June 15, 2010, the Company was served with a lawsuit from National Oilwell Varco LP (“VARCO”), a vendor of the Company, for $114,065, related to unpaid invoices from October 25, 2007 to September 30, 2008  During April, 2011 the Company agreed to a settlement that would require the Company to pay $122,304 over the next 24 months in equal installments of $5,096 month. The parties to the settlement also signed a judgment for $140,000 that will only be filed in the event of a default by the Company. As of August 9, 2012 the Company failed to make payments in May, June and July and technically was in default, therefore the Company accrued an additional $29,141 ($25,935 of principal and $3,206 of interest) to true-up the balance to the $140,000 original judgment, as agreed. In August 2012 the Company and VARCO agreed that the Company will resume payments by August 20, 2012 and will continue to make such payments by the 15th of each month thereafter as set forth in the original agreement. The final payment was made in 2013. The balance owed at December 31, 2013 and December 31, 2012 was $0 and $35,672, respectively.

 

 

NOTE 8 – REVENUE CONCENTRATION

 

The Company provides drilling services to the oil and gas industry and has one customer from which 100% of revenues are derived during the year ended December 31, 2013.

 

 

Customers2013 Revenue%2012 Revenue%
A – Related Party$00.0%$00.0%
B652,450100.0567,48793.3
Others00.040,7206.7
TOTAL$652,450100.0%$608,209100.0%

 

   

Results of Operations for the year ended December 31, 2021, as compared to the year ended December 31, 2020.

 

We did not generate any revenues during the years ended December 31, 2021 or 2020. We had total operating expenses of $36,797 for the year ended December 31, 2021 and total operating expenses of $28,095 for the year ended December 31, 2020. The expenses in 2021 and 2020 primarily consisted of professional fees and transfer agent fees.

 

 9 
 

 

We incurred $4,500 and $4,475 in interest expense for the years ended December 31, 2021 and 2020, respectively.

 

During the years ended December 31, 2021 and 2020, we incurred net losses of $36,797 and $28,095, respectively.

 

NOTE 9 – RECENT ACCOUNTING PRONOUNCEMENTSLiquidity and Capital Resources.

 

The Company does not expect  

As of December 31, 2021, the Company did not have any business operations, it had assets totaling $138, liabilities totaling $99,263, and a working capital deficit of $99,125.

 

On January 21, 2022, the Company received $44 million of loan proceeds from issuance of the Note. The Company used $40.5 million of the proceeds to acquire AMR Resources on February 1, 2022. The remaining proceeds of the Note will be used to fund the operating activities of the Company and AMR Resources. At May 26, 2022, the Company had approximately $1,800,000.00 cash on hand and current liabilities of approximately $7,100,000.00.

 

Following the AMR Resources Acquisition, we will incur significant and undetermined costs to establish corporate infrastructure necessary to operate the Company and AMR Resources, as an independent business. Actions required include preparing and filing required consolidated financial statements of the Company and its subsidiaries. The Company’s ability to obtain debt and equity financing will be very limited until it is able to provide historical financial statements and other financial information to potential investors.

 

We expect that AMR Resources will have negative cash flow and require financial support for the foreseeable future while the Company takes actions necessary establish the operations as a profitable stand-alone business.

  

During the next 12 months we anticipate incurring costs related to filing of Exchange Act reports, franchise fees, transfer agent fees, registered agent fees, legal fees, accounting fees, and investigating, analyzing, and consummating one or more acquisitions or business combination. The amount of such costs cannot be estimated as it will vary based on the number, size and types of business acquisitions we consider and consummate.

 

The Company currently plans to satisfy our cash requirements for the next 12 months through our cash on hand and additional borrowings. The Company may be unable to obtain debt or equity financing to fund continuing operations and planned business acquisitions. Management believes it can satisfy our cash requirements so long as we are able to obtain the necessary financing. The Company expects that any money borrowed will be used during the next 12 months to fund operating activities and business acquisitions.  

 

Contractual Obligations and Commitments.

 

None.

 

Critical Accounting Policies.

 

Cash and Cash Equivalents

 

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. At both December 31, 2021 and 2020, the Company’s cash balance was $138 and $43,436, respectively. The Company maintains cash balances at financial institutions insured up to $250,000 by the Federal Deposit Insurance Corporation.

 

Fair Value of Financial Instruments

 

The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amount of the Company’s short-term financial instruments approximates fair value due to the relatively short period to maturity for these instruments.

 

Accounts Receivable and Allowance for Doubtful Accounts

 

It is the Company’s policy to record accounts receivable at the amount management expects to collect from outstanding balances. The Company generally does not require collateral to support customer receivables. The Company provides an allowance for doubtful accounts based upon a review of the outstanding accounts receivable, historical collection information and existing economic conditions. The Company determines if receivables are past due based on days outstanding, and amounts are written off when determined to be uncollectible by management. The maximum accounting loss from the credit risk associated with accounts receivable is the amount of the receivable recorded, which is the face amount of the receivable net of the allowance for doubtful accounts. As of December 31, 2021 and 2020, there were no accounts receivable and no allowance for doubtful accounts.

 

 10 
 

 

Revenue Recognition and Cost of Revenues

 

We account for revenue in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers. Under that standard, revenue is recognized at a point in time or over time when performance obligations are fulfilled by delivery of goods or services to the customer. The core principals of revenue recognition under ASC 606 include the following five criteria: 1) Identify the contract with the customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) we satisfy a performance obligation. During the years ended December 31, 2021 and 2020, the Company had no revenue from contracts with customers.

Equity–based compensation

 

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

 

The fair value of an option award is estimated on the date of grant using an option pricing model when quoted market prices are not available. Determining the appropriate option pricing model and calculating the fair value of equity–based payment awards require the use of assumptions that may be subjective. The assumptions used in calculating the fair value of equity–based payment awards represent management’s best estimates, which involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and the Company uses different assumptions, the equity–based compensation could be materially different from amounts recorded in the financial statements.

 

During the years ended December 31, 2021 and 2020, the Company had no equity-based payment awards outstanding and did not issue any equity-based payments. The Company did not record any expense or liabilities for equity-based payment awards as of December 31, 2021 and 2020 and during the years then ended.

 

Income Taxes

 

The Company follows the asset and liability method of accounting for income taxes under FASB ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

FASB ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. There were no unrecognized tax benefits as of December 31, 2021 and 2020. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties as of December 31, 2021 and 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

 

The Company may be subject to potential examination by federal, state, and city taxing authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions, and compliance with federal, state, and city tax laws. The Company’s management does not expect that the impacttotal amount of new accounting pronouncements to be significantunrecognized tax benefits will materially change over the next twelve months.

 

Earnings (Loss) Per Share

 

The Company computes net loss per share in accordance with ASC 260, Earnings Per Share, which requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased tofrom its financial statements and disclosures.

 

 

NOTE 10 – SUBSEQUENT EVENTS

 

In conjunction with the preparation of these financial statements, an evaluation of subsequent events was performed.    No reportable subsequent events were noted.

 

 

 

 the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.

 

For the twelve-month periods ended December 31, 2021 and 2020, there were no dilutive instruments as the Company did not have any convertible debt and/or equity instruments issued and outstanding as of these dates.

 

 11 
 

 

Item 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not applicable.

 

F- 1112 
 

 

 

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

 

  Page
Reports of Independent Registered Public Accounting Firm  14
(PCAOB ID: 366)  
   
Balance Sheets as of December 31, 2021 and 2020 15
   
Statements of Operations for the Years Ended December 31, 2021 and 2020 16
   
Statements of Shareholders' Deficit for the Years Ended December 31, 2021 and 2020 17
   
Statements of Cash Flows for the Years Ended December 31, 2021 and 2020 18
   
Notes to Consolidated Financial Statements 19

 

 13 
 

 

maughansullivanllc

A CERTIFIED PUBLIC ACCOUNTING FIRM

PCAOB REGISTERED

PO Box 887

Manchester, VT 05254

www.maughansullivanllc.com

 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors of American Metals Recycling and Recovery, Inc.:

 

Opinion on the Financial Statements

 

We have audited the accompanying consolidated balance sheets of American Metals Recycling and Recovery, Inc. (the "Company") as of December 31, 2021 and 2020, the related consolidated statements of operations, changes in stockholders’ equity, and cash flows for each of the years in the years ended December 31, 2020, 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, 2021 and 2020, and the results of its operations and its cash flows for each of the two years in the two-year period ended December 31, 2021, in conformity with U.S. generally accepted accounting principles.

 

Going Concern

 

The accompanying financials have been prepared assuming the Company will continue as a going concern. As of December 31, 2021, the Company had an accumulated deficit of approximately $618,000, has not generated revenue, and may experience losses in the near term.  These factors and the need for additional financing in order for the Company to meet its business plan, raise substantial doubt about its ability to continue as a going concern. Management's plan to continue as a going concern is also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

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 consolidated 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.

 

/s/ MaughanSullivan LLC

 

We have served as the Company’s auditor since 2020.

 

Manchester, VT

May 27, 2022

 

 14 
 

 

American Metals Recovery and Recycling Inc.

Balance Sheet

         
   December 31,   December 31, 
   2021   2020 
Assets          
Current assets:          
Cash and cash equivalents  $138   $43,436 
Total current assets   138    43,436 
           
Total assets  $138   $43,436 
           
Liabilities and Stockholders’ deficit          
Current liabilities:          
Accounts payable  $1,031   $1,030 
Notes payable and accrued interest, related party   98,232    - 
Total current liabilities   99,263    1,030 
Notes payable and accrued interest, related party   -    93,733 
Total liabilities   99,263    94,763 
           
Stockholders’ deficit:          
Preferred Stock, Series A, $0.001 par value, 5,000,000 Authorized,
600,000 shares issued and outstanding, respectively
   600    600 
Common stock, $0.001 par value; 50,000,000 shares authorized 11,081,336 shares issued and
outstanding, respectively
   11,081    11,081 
Additional paid-in-capital   507,571    507,571 
Accumulated deficit   (618,377)   (570,580)
Total stockholders’ deficit   (99,125)   (51,328)
Total liabilities and stockholders’ deficit  $138   $43,436 

 

The accompanying notes are an integral part of these financial statements.

 

 15 
 

 

American Metals Recovery and Recycling Inc.

Statements of Operations

               
   Years Ended 
   December 31,   December 31, 
   2021   2020 
         
Revenue  $-   $- 
Costs and expenses:          
General and administrative expenses   43,297    23,650 
Total costs and expenses   43,297    23,650 
Loss from operations   (43,297)   (23,650)
Other (expense)          
Net interest (expense)   (4,500)   (4,475)
Total other (expense)   (4,500)   (4,475)
Loss before income taxes   (47,797)   (28,125)
Income tax (benefit) expense   --    -- 
Net loss  $(47,797)  $(28,125)
           
Basic and diluted earnings per common share  $(0.00)  $(0.00)
           
Basic and diluted weighted average common shares outstanding   11,081,336    11,081,336 

 

 The accompanying notes are an integral part of these financial statements.

 

 16 
 

 

American Metals Recovery and Recycling Inc.

Statements of Stockholders’ Deficit

 

                             Additional         
   Preferred Stock   Common Stock   Paid-In   Accumulated     
   Shares   Shares   Shares   Amount   Capital   Deficit   TOTAL 
Balance at December 31, 2019   600,000   $600    10,781,336   $10,781   $432,871   $(542,454)  $(98,202)
Common stock issued for cash   -    -    300,000    300    74,700    -    75,000 
Net loss   -    -    -    -    -    (28,125)   (28,125)
                                    
Balance at December 31, 2020   600,000   $600    11,081,336   $11,081   $507,571   $(570,580)  $(51,328)
                                    
Net loss   -    -    -    -    -    (47,797)   (47,797)
                                    
Balance at December 31, 2021   600,000   $600    11,081,336   $11,081   $507,571   $(618,377)  $(99,125)

 

The accompanying notes are an integral part of these financial statements.

 

 17 
 

 

American Metals Recovery and Recycling Inc.

Statements of Cash Flows

               
   Years Ended 
   December 31,   December 31, 
   2021   2020 
Cash flows from (used in) operating activities          
Net loss  $(47,797)  $(28,125)
Adjustments to reconcile net loss to operating activities:          
Changes in operating assets and liabilities          
Advances   -    (444)
Accounts payable and accrued expenses   -    (1,470)
Accounts payable and accrued expenses – related party   4,499    (1,525)
Cash flows used in operating activities   (43,298)   (31,564)
           
Cash provided by (used in) investing activities   -    - 
           
Cash provided by (used in) financing activities          
Sale of common stock for cash   -    75,000 
Increase (decrease) in cash   (43,298)   43,436 
           
Cash, beginning of period   43,436    -- 
Cash at end of period  $138   $43,436 
Supplemental information:          
Cash paid for interest  $-   $- 
Cash paid for income taxes  $-   $- 

 

The accompanying notes are an integral part of these financial statements.

 

 18 
 

 

American Metals Recovery and Recycling Inc.

Notes to the Financial Statements

December 31, 2021

 

Note 1. Description of Business

 

Organizational History

 

American Metals Recovery and Recycling Inc. ("Company”), a Nevada corporation, was formed on June 29, 2009 as Premier Oil Field Services, Inc. and changed its name to American Metals Recovery and Recycling Inc. on April 25, 2014. The Company was dormant from 2015 until 2021. On August 2, 2021, the Company filed a Registration Statement on Form 10 to register the Company’s Common Stock under Section 12(g) of the Exchange Act. Prior to December 23, 2021, the Repository Services LLC, a Wyoming limited liability company (“Repository Services”) held 8,123,230 shares, or 73.3% of the issued and outstanding shares of, common stock of the Company and 100% of the issued and outstanding preferred stock of the Company. On December 23, 2021, Multiband Global Resources, LLC, a Delaware limited liability company (“Multiband”), acquired 7,923,230 shares, or 71.5% of the issued and outstanding shares of, common stock of the Company and 100% of the issued and outstanding shares of preferred stock of the Company in exchange for a cash payment of $500,000 paid by Multiband to Repository Services. In December 2021, Repository Services transferred the 200,000 common shares it held that were not purchased by Multiband to Katell Survivors Trust (Gerald Katell, Trustee), an unrelated nonaffiliate to the parties.

 

Shell Company Status

 

Since September 25, 2015, the Company has met the definition of a "shell" company, whose sole purpose is to locate and consummate a merger or acquisition with a private entity. The Company intends to acquire assets or shares of an entity actively engaged in business which generates revenues in exchange for its securities.

 

The Company’s common stock is subject to quotation on the OTC Markets Group, Inc. Pink Open Market Platform (“Pink Sheets”) under the symbol AMRR. There is currently only a limited trading market in the Company’s shares. If an active trading market commences, there can be no assurance as to the market price of our shares of common stock, whether the trading market will provide liquidity to investors or whether any trading market will be sustained.

 

GNET ATC, Inc. Note

 

On January 21, 2022, the Company issued a Secured Promissory Note (“Note”) to GNET ATC, Inc. (“GNET” or “Lender”), in an aggregate principal amount of $44 million. The Note bears interest at a rate of 10% per annum and matures on January 21, 2025 (the “Maturity Date”). The principal balance of the Note must be repaid in equal monthly installments commencing September 23, 2022, with the final payment due on the Maturity Date. Interest is calculated on the basis of a 360-day year for the actual number of days elapsed and is payable as a balloon payment on the Maturity Date. Prepayments are permitted subject to certain terms and conditions. The Note is secured by substantially all of the Company’s assets. The proceeds were used for working capital and to fund the acquisition of AMR Resources, LLC (“AMR Resources”) as described below.

 

Acquisition of AMR Resources

 

On February 1, 2022, the Company completed the acquisition of all outstanding limited liability company interests of AMR Resources (the “AMR Resources Acquisition”) for $40.5 million in cash, pursuant to a Unit Purchase Agreement (the “AMRR Agreement”), dated February 1, 2022, by and between the Company and OnePath Systems, LLC (“OnePath”), subject to post-closing adjustment as contemplated therein. In contemplation of the AMR Resources Acquisition, OnePath formed AMR Resources and contributed those assets necessary for the operation of its integrated services business. As a result of the AMR Resources Acquisition, the Company acquired all of the outstanding limited liability company interests of AMR Resources and the former integrated services business of OnePath and AMR Resources became a wholly owned subsidiary of the Company.

 

Going Concern

 

These financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. As of December 31, 2021, the Company did not have any business operations, it had assets totaling $138, liabilities totaling $99,263, and a working capital deficit of $99,125. The continuation of the Company as a going concern is dependent upon (i) its ability to identify future investment opportunities, (ii) its ability to obtain any necessary debt and/or equity financing, (iii) its ability to generate profits from the Company’s future operations and (iii) its ability to generate profits from the Company’s future operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

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Note 2. Basis of Presentation and Summary of Significant Accounting Policies 

 

The management of the Company is responsible for the selection and use of appropriate accounting policies and their application. Critical accounting policies and practices are those that are both most important to the portrayal of the Company’s financial condition and results and require management’s most difficult, subjective, or complex judgments, often due to the need to make estimates about the effects of matters that are inherently uncertain. The Company’s significant and critical accounting policies and practices are disclosed below as required by generally accepted accounting principles.

 

Basis of Presentation

 

The financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) and include the accounts for the Company. The Company had no business operations during the years ended December 31, 2021 and 2020.

 

Certain prior period amounts may have been reclassified to conform to current period presentation. These classifications, if any, have no effect on the previously reported net loss or loss per share.

 

Use of Estimates

 

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities, and reported amounts of expenses in the financial statements and accompanying notes. Actual results could differ from those estimates. Key estimates generally included in the financial statements include the valuation of deferred income tax assets, equity instruments, stock-based compensation, acquired intangibles, and allowances for accounts receivable.

 

Cash and Cash Equivalents

 

The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. At both December 31, 2021 and 2020, the Company’s cash balance was $138 and $43,436, respectively. The Company maintains cash balances at financial institutions insured up to $250,000 by the Federal Deposit Insurance Corporation.

 

Fair Value of Financial Instruments

 

The fair value of a financial instrument is the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. The carrying amount of the Company’s short-term financial instruments approximates fair value due to the relatively short period to maturity for these instruments.

 

Accounts Receivable and Allowance for Doubtful Accounts

 

It is the Company’s policy to record accounts receivable at the amount management expects to collect from outstanding balances. The Company generally does not require collateral to support customer receivables. The Company provides an allowance for doubtful accounts based upon a review of the outstanding accounts receivable, historical collection information and existing economic conditions. The Company determines if receivables are past due based on days outstanding, and amounts are written off when determined to be uncollectible by management. The maximum accounting loss from the credit risk associated with accounts receivable is the amount of the receivable recorded, which is the face amount of the receivable net of the allowance for doubtful accounts. As of December 31, 2021 and 2020, there were no accounts receivable and no allowance for doubtful accounts.

 

Revenue Recognition and Cost of Revenues

 

We account for revenue in accordance with FASB ASC Topic 606, Revenue from Contracts with Customers (Topic 606). Under that standard, revenue is recognized at a point in time or over time when performance obligations are fulfilled by delivery of goods or services to the customer. The core principals of revenue recognition under ASC 606 include the following five criteria: 1) Identify the contract with the customer; 2) Identify the performance obligations in the contract; 3) Determine the transaction price; 4) Allocate the transaction price to the performance obligations in the contract; and 5) Recognize revenue when (or as) we satisfy a performance obligation. During the years ended December 31, 2021 and 2020, the Company had no revenue from contracts with customers.

 

Equity–based compensation

 

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

 

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The fair value of an option award is estimated on the date of grant using an option pricing model when quoted market prices are not available. Determining the appropriate option pricing model and calculating the fair value of equity–based payment awards require the use of assumptions that may be subjective. The assumptions used in calculating the fair value of equity–based payment awards represent management’s best estimates, which involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and the Company uses different assumptions, the equity–based compensation could be materially different from amounts recorded in the financial statements.

 

During the years ended December 31, 2021 and 2020, the Company had no equity-based payment awards outstanding and did not issue any equity-based payments. The Company did not record any expense or liabilities for equity-based payment awards during the years ended December 31, 2021 and 2020.

 

Income Taxes

 

The Company follows the asset and liability method of accounting for income taxes under FASB ASC 740, “Income Taxes.” Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred income tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that included the enactment date. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

FASB ASC 740 prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of tax positions taken or expected to be taken in a tax return. For those benefits to be recognized, a tax position must be more likely than not to be sustained upon examination by taxing authorities. There were no unrecognized tax benefits as of December 31, 2021 and 2020. The Company recognizes accrued interest and penalties related to unrecognized tax benefits as income tax expense. No amounts were accrued for the payment of interest and penalties as of December 31, 2021 and 2020. The Company is currently not aware of any issues under review that could result in significant payments, accruals or material deviation from its position. The Company is subject to income tax examinations by major taxing authorities since inception.

 

The Company may be subject to potential examination by federal, state, and city taxing authorities in the areas of income taxes. These potential examinations may include questioning the timing and amount of deductions, the nexus of income among various tax jurisdictions, and compliance with federal, state, and city tax laws. The Company’s management does not expect that the total amount of unrecognized tax benefits will materially change over the next twelve months.

 

Earnings (Loss) Per Share

 

The Company computes net loss per share in accordance with ASC 260, Earnings Per Share, which requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net loss available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing Diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti-dilutive.

 

For the years ended December 31, 2021 and 2020, there were no dilutive instruments as the Company did not have any convertible debt and/or equity instruments issued and outstanding as of these dates.

 

Recently Issued Accounting Pronouncements

 

From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board, or FASB, or other standard setting bodies and adopted by us as of the specified effective date. Management has evaluated all recent accounting pronouncements as issued by the FASB in the form of Accounting Standards Updates through the date these financial statements were available to be issued and found no recent accounting pronouncements issued, but not yet effective accounting pronouncements, when adopted, will have a material impact on the financial statements of the Company.

 

Related Parties

 

The Company follows ASC 850, Related Party Disclosures, for the identification of related parties and disclosure of related party transactions.

 

 

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Note 3. Going Concern

 

As of December 31, 2021, the Company did not have any business operations. As of December 31, 2021, the Company had assets totaling $138, liabilities totaling $99,263, and a working capital deficit of $99,125. The continuation of the Company as a going concern is dependent upon (i) its ability to identify future investment opportunities, (ii) its ability to obtain any necessary debt and/or equity financing, (iii) its ability to generate profits from the Company’s future operations and (iv) its ability to generate profits from the Company’s future operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

On January 21, 2022, the Company received $44 million of loan proceeds from issuance of the Note. The Company used $40.5 million of the proceeds to acquire AMR Resources on February 1, 2022. The remaining proceeds of the Note will be used to fund the operating activities of the Company and AMR Resources.

 

We expect that AMR Resources will have negative cash flow and require financial support for the foreseeable future while the Company takes actions necessary establish the operations as a profitable stand-alone business.

 

Note 4.  Accounts Payable and Accrued Liabilities

 

As of December 31, 2021, the Company had recorded $1,031 of accounts payable and accrued liabilities, all of which were due to the Company’s transfer agent.

 

Note 5. Notes Payable and Accrued Interest, Related Party

 

On December 16, 2019, the Company issued a Promissory Note to an affiliate of a related party at the time of the transaction in the amount of Eighty-Nine Thousand Two Hundred Fifty-Eight dollars ($89,258). The unpaid principal accrues interest at the rate of five percent (5.00%) per annum starting on January 1, 2020. The following table presents the balance due as of the dates presented.

 

  

December 31,

2021

  

December 31,

2020

 
Note payable  $89,258   $89,258 
Accrued interest   8,974    4,475 
Total notes payable and accrued interest  $98,232   $93,733 

 

 

Note 6.  Stockholders’ Deficit

 

Preferred Stock

 

The Company is authorized to issue 20,000,000 shares of preferred stock at a par value of $0.001 per share (the “Preferred Stock”).

 

As of December 31, 2021 and 2020, the Company had 600,000 shares of Preferred Stock issued and outstanding.

 

Common Stock

 

The Company is authorized to issue 50,000,000 shares of common stock at a par value of $0.001 per share (the “Common Stock”).

 

As of December 31, 2021, and 2020, the Company had 11,081,336 shares of Common Stock issued and outstanding.

 

The Company did not issue any shares of Common Stock during the fiscal year ended December 31, 2021.

 

During the year ended December 31, 2020, the Company issued 300,000 shares of Common Stock for $75,000 in cash.

 

Shares Available for Issuance

 

As of December 31, 2021, the Company had the following number of shares of Common Stock and Preferred Stock available for issuance:

 

   Preferred Stock   Common Stock 
Number of shares authorized   20,000,000    50,000,000 
Less shares issued and outstanding at December 31, 2021   600,000    11,081,336 
Number of shares available for issuance   19,400,000    38,918,664 

 

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Options and Warrants

 

As of both December 31, 2021 and 2020, the Company had no warrants or stock options outstanding.

 

Note 7. Commitments and Contingencies

 

As of both December 31, 2021 and 2020, the Company did not have any material commitments that have not been disclosed.

 

COVID-19

 

The Company is subject to risks and uncertainties as a result of the COVID-19 pandemic. The magnitude and overall effectiveness of these actions remain uncertain. The severity of the impact of the COVID-19 pandemic on the Company’s business will depend on a number of factors, including, but not limited to, the duration and severity of the pandemic and the extent and severity of the impact on the Company’s customers, service providers and suppliers, all of which are uncertain and cannot be predicted. As of the date of issuance of Company’s financial statements, the extent to which the COVID-19 pandemic may in the future materially impact the Company’s financial condition, liquidity or results of operations is uncertain.

 

Russia-Ukraine Conflict

 

The Russian-Ukraine conflict is a global concern. The Company does not have any direct exposure to Russia or Ukraine through its operations, employee base, investments or sanctions. We have no basis to evaluate the possible risks of this conflict.

 

Note 8. Subsequent Events

 

GNET ATC, Inc. Note

 

On January 21, 2022, the Company issued the Note to GNET in an aggregate principal amount of $44 million. The Note bears interest at a rate of 10% per annum and matures on the Maturity Date, January 21, 2025. The principal balance of the Note must be repaid in equal monthly installments commencing September 23, 2022, with the final payment due on the Maturity Date. Interest is calculated on the basis of a 360-day year for the actual number of days elapsed and is payable as a balloon payment on the Maturity Date. Prepayments are permitted subject to certain terms and conditions. The Note is secured by substantially all of the Company’s assets. The proceeds were used for working capital and to fund the acquisition of AMR Resources as described previously and below.

 

Acquisition of AMR Resources

 

On February 1, 2022, the Company completed the AMR Resources Acquisition for $40.5 million in cash, pursuant to the AMRR Agreement, subject to post-closing adjustment as contemplated therein. In contemplation of the AMR Resources Acquisition, OnePath formed AMR Resources and contributed those assets necessary for the operation of its integrated services business. As a result of the AMR Resources Acquisition, the Company acquired all of the outstanding limited liability company interests of AMR Resources and the former integrated services business of OnePath and AMR Resources became a wholly owned subsidiary of the Company.

 

The AMRR Agreement contains customary provisions reflecting a transaction of such scope and structure, including representations, warranties, indemnification obligations. The Company funded the purchase price from the AMRR’s readily available funds.

 

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

 

None.

 

ITEM 9A. CONTROLS AND PROCEDURES.

 

None.

 

ITEM 9B. OTHER INFORMATION.

 

None.

 

ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS.

 

Not applicable.

 

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PART III

 

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

 

The following table sets forth the names and ages of the members of our board of directors (the “Board of Director” or “Board”) and our executive officers and the positions held by each as of the date of this Annual Report.

 

Name   Age   Title
James Frinzi   48   Chief Executive Officer,  President, Chairman of the Board and Director
Jeremie Peterkin   60   Chief Financial Officer, Director and Treasurer
Shalom Auerbach   34   Director
Angela Paxton   62   Director
Antonio Munoz   58   Director

 

  James Frinzi. Mr. Frinzi has served as our Chief Executive Officer, President, Chairman of the Board and Directors since January 2022. Mr. Frinzi has over twenty years of experience in politics, including working for two U.S. Senators, and several years as a Federal and State Lobbyist for a variety of interests including those in the telecom space, clean energy, health care, and he represented the country of Indonesia. Mr. Frinzi has experience advising some of the top executives and entrepreneurs across the country. Mr. Frinzi served as the Chief Executive Officer of Multiband Corporation, taking the company’s asset and transforming its historical core business to adapt to Telecom Market trends, with a strong focus on zero landfill impact in the telecommunications industry. From June 2013 to April 2022, Mr. Frinzi was a lobbyist at Frinzi & Associates, where he lobbied the executive branch in multiple states, and the United States Senate on behalf of individual clients and special interest groups, representing clients and issues that pertain to health care, education, energy, telecom, technology, trade, foreign policy and Israel. From February 2014 to December 2019, Mr. Frinzi served as the Vice President Government Relations at Shining City where he lobbied the executive branch in Texas, Oklahoma, and Wisconsin, as well as advocated the interests of its donors and members in the United States Senate From June 2010 to January 2014, Mr. Frinzi served as Vice President Government Relations at Goodman Networks, where he developed its Government Relations Department from ground up. From March 2020 to December 2021, Mr. Frinzi also served as a member of the board of San Blas Securities, a minority owned full-service broker/dealer. Mr. Frinzi received his Bachelor of Science from Marquette University and an MBA from Baylor University. The Company believes that Mr. Frinzi’s significant experience in the telecommunication industry as an executive and lobbyist gives him the qualifications and skills to serve as a director.

 

Jeremie Peterkin. Mr. Peterkin has served as our Chief Financial Officer, Treasurer and Director since January 2022 and has served as the Chief Financial Officer of Multiband since January 2022. Previously from 2007 to January 2022, Mr. Peterkin was the Executive Director of Links Consulting Services, LLC, an accounting and finance firm specializing in business development in accounting and finance for major corporation, governments and small business. Mr. Peterkin received his Bachelor of Science, Accountancy from Bentley University. Mr. Peterkin is a leader in developing startup businesses by providing business plan development, strategic alliances and negotiating funding requirements, process implementation and personnel acquisition. Mr. Peterkin previously served as Controller for the State of Georgia and worked as a Controller for several big corporations. Mr. Peterkin is an inactive Certified Public Accountant and has practiced in that field for over thirty-five years. The Company believes that his significant experience in accounting and developing startup businesses gives him the qualifications and skills to serve as a director and Treasurer.

 

Shalom Auerbach. Mr. Auerbach has served as our Director since January 2022. Mr. Auerbach is a Principal at Franklin Capital Group. Mr. Auerbach is also the owner of In Advance Capital and Merchant Perfect. Mr. Auerbach has also served as President of Milrose Capital. Mr. Auerbach has extensive experience as an investor and advisor to companies in different industries. The Company believes that his significant experience as an investor and advisor gives him the qualifications and skills to serve as director.

 

Antonio Munoz. Mr. Munoz has served as our Director since January 2022. Mr. Munoz has been a State Senator in Illinois. Mr. Munoz served in the United States Army with the 82nd Airborne Division and later attended the John F. Kennedy School of Government at Harvard University. Mr. Munoz is co-founder and Treasurer of the Latino Caucus. Mr. Munoz previously worked as a police officer in the Chicago Police Department, was a member of the Chicago Office of Budget Management, and served on the Chicago Licensing Commission dealing with liquor licenses. The Company believes that his significant experience as a legislator, leader, and role as member of the Chicago Office of Budget Management gives him the qualifications and skills to serve as director.

 

Angela Paxton. Mrs. Paxton has served as our Director since January 2022. Mrs. Paxton has been serving as a State Senator in Texas. Mrs. Paxton previously served a public-school teacher and guidance counselor for over 20 years. Mrs. Paxton received a Bachelor of Arts in Mathematics and Computer Science from Baylor University and a Master of Science in Education from University of Houston-Clear Lake. The Company believes that her significant experience as a legislator, leader, and educator gives her the qualifications and skills to serve as director.

 

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Each director holds office until the next annual meeting of stockholders and until his or her successor is duly elected and qualified. There are no agreements with respect to the election of directors. Officers are appointed annually by the Board of Directors and each executive officer serves at the discretion of the Board of Directors. We do not have any standing committees at this time.

  

Our directors or officers have not, within the past ten years, filed any bankruptcy petition, been convicted in or been the subject of any pending criminal proceedings, or is any such person the subject or any order, judgment or decree involving the violation of any state or federal securities laws.

 

Family Relationships

 

There are no family relationships among any of our Directors or executive officers.

 

Board of Directors and Committee Meetings

 

Our Board of Directors did not hold meetings during the fiscal year ended December 31, 2021.

 

Committees

 

We do not currently have an audit, compensation or nominating committee. Our full Board of Directors discharges the duties that such committees would normally have. We do not have such committees because of our stage of operations and because our Board of Directors consists of only five members. We intend to establish an audit, compensation and nominating committee of our Board of Directors once we expand the Board to include one or more independent directors and intend to adopt a charter for each committee.

 

Under the Sarbanes-Oxley Act of 2002, all audit and non-audit services performed by the Company’s independent registered accounting firms must be approved in advance by the Board of Directors to assure that such services do not impair the independent registered accounting firms’ independence from the Company. Our full Board of Directors performs the equivalent functions of an audit committee, therefore, no policies or procedures other than those required by SEC rules on auditor independence, have been implemented.

 

Code of Conduct and Ethics

 

The Company has not adopted a code of conduct and ethics for our executive officers, directors and employees. However, our management intends to promote honest and ethical conduct, full and fair disclosure in our reports to the SEC, and compliance with applicable governmental laws and regulations.

 

Report of the Board Serving the Equivalent Functions of an Audit Committee

 

Review and Discussion with Management

 

Our executive management has reviewed our audited financial statements for the fiscal year ended December 31, 2021, the process designed to achieve compliance with Section 404 of the Sarbanes-Oxley Act of 2002 and our assessment of internal control over financial reporting.

 

Review and Discussions with Independent Registered Public Accounting Firm

 

Our executive management has discussed with our independent registered public accounting firm for fiscal years ended 2021 and 2020, the matters the Board, serving the equivalent functions of an audit committee, is required to discuss. Specifically, the Board has discussed with the independent registered public accounting firm the matters required to be discussed by the Public Company Accounting Oversight Board's Auditing AS 1301 (Communications With Audit Committees), as modified or supplemented.

 

The Board has also received written disclosures in a letter from the independent registered public accounting firm required by applicable requirements of the Public Company Accounting Oversight Board regarding the independent registered public accounting firm's independence and has discussed with the independent registered public accounting firm their independence from the Company and its management. This review also includes discussions of audit and non-audit fees.

 

 26 
 

 

The Board has also reviewed the independence of the independent registered public accounting firm considering the compatibility of non-audit services with maintaining their independence from the Company. Based on the preceding review and discussions contained in this paragraph, the Board recommended that the audited financial statements be included in this Annual Report for filing with the SEC.

 

Conclusion

 

Based on the review and discussions referred to above, the Board, serving the equivalent functions of the audit committee, approved our audited financial statements for the fiscal year ended December 31, 2021 be included in this Annual Report for filing with the SEC.

 

Board’s Role in the Oversight of Risk Management

 

We face a variety of risks, including credit, liquidity and operational risks. In fulfilling its risk oversight role, our Board focuses on the adequacy of our risk management process and overall risk management system. Our Board believes that an effective risk management system will (i) adequately identify the material risks that we face in a timely manner; (ii) implement appropriate risk management strategies that are responsive to our risk profile and specific material risk exposures; (iii) integrate consideration of risk and risk management into our business decision-making; and (iv) include policies and procedures that adequately transmit necessary information regarding material risks to senior executives and, as appropriate, to the Board or relevant committee.

 

Our Board oversees risk management for us. Accordingly, the Board schedules time for periodic review of risk management, in addition to its other duties. In this role, the Board receives reports from management, certified public accountants, outside legal counsel, and to the extent necessary, from other advisors, and strives to generate serious and thoughtful attention to our risk management process and system, the nature of the material risks we face, and the adequacy of our policies and procedures designed to respond to and mitigate these risks.

 

Board Leadership Structure

 

Our Board of Directors has a Chairman of the Board. Our Board does not have a policy on whether or not the roles of Chief Executive Officer and Chairman of the Board should be separate and, if they are to be separate, whether the Chairman of the Board should be selected from the non-employee directors or be an employee. Our Board believes that it should be free to make a choice from time to time in any manner that is in the best interests of us and our stockholders. The Board believes that Mr. Frinzi’s service as both Chief Executive Officer and Chairman of the Board is in the best interests of us and our stockholders. Mr. Frinzi possesses detailed and in-depth knowledge of the issues, opportunities and challenges we face and is thus best positioned to develop agendas, with the input of the other directors that ensure that the Board’s time and attention are focused on the most critical matters. His combined role enables decisive leadership, ensures clear accountability, and enhances our ability to communicate our message and strategy clearly and consistently to our stockholders, employees, customers and suppliers, particularly given the issues and other challenges the Company has faced in recent years. Our Board has determined that our Board leadership structure is appropriate given the size of our Board and the nature of our business.

 

Stockholder Communications with the Board

 

Stockholders may communicate with the Board by writing to us as follows: American Metals Recovery and Recycling Inc., attention: Corporate Secretary, 4301 West Bank Drive, Suite 110B, Austin, Texas 78746. Stockholders who would like their submission directed to a particular member of the Board may so specify and the communication will be forwarded as appropriate.

 

Prohibition on Hedging

 

The Company prohibit members of our Board and our officers from engaging in hedging transactions involving our securities.

 

Process and Policy for Director Nominations

 

Our full Board will consider candidates for Board membership suggested by Board members, management and our stockholders. In evaluating the suitability of potential nominees for membership on the Board, the Board members will consider the Board’s current composition, including expertise, diversity, and balance of inside, outside and independent directors. The Board considers the general qualifications of the potential nominees, including integrity and honesty; recognized leadership in business or professional activity; a background and experience that will complement the talents of the other board members; the willingness and capability to take the time to actively participate in board and committee meetings and related activities; the extent to which the candidate possesses pertinent technological, political, business, financial or social/cultural expertise and experience; the absence of realistic possibilities of conflict of interest or legal prohibition; the ability to work well with the other directors; and the extent of the candidate’s familiarity with issues affecting our business.

 

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While the Board considers diversity and variety of experiences and viewpoints to be important factors, it does not believe that a director nominee should be chosen solely or mainly because of race, color, gender, national origin or sexual identity or orientation. Thus, although diversity may be a consideration in the Board’s process, it does not have a formal policy regarding the consideration of diversity in identifying director nominees.

 

Stockholder Recommendations for Director Nominations. Our Board does not have a formal policy with respect to consideration of any director candidate recommendation by stockholders. While the Board may consider candidates recommended by stockholders, it has no requirement to do so. To date, no stockholder has recommended a candidate for nomination to the Board. Given that we have not received director nominations from stockholders in the past and that we do not canvass stockholders for such nominations, we believe it is appropriate not to have a formal policy in that regard. We do not pay a fee to any third party to identify or evaluate or assist in identifying or evaluating potential nominees.

 

Stockholder recommendations for director nominations may be submitted to the Company at the following address: American Metals Recovery and Recycling Inc., attention: Corporate Secretary, 4301 West Bank Drive, Suite 110B, Austin, Texas 78746. Such recommendations will be forwarded to the Board for consideration, provided that they are accompanied by sufficient information to permit the Board to evaluate the qualifications and experience of the nominees, and provided that they are in time for the Board to do an adequate evaluation of the candidate before the annual meeting of stockholders. The submission must be accomplished by a written consent of the individual to stand for election if nominated by the Board and to serve if elected and to cooperate with a background check.

 

Conflicts of Interest.

 

Company's management and the manager and members of Multiband are associated with other firms involved in a range of business activities. Consequently, there are potential inherent conflicts of interest.

 

Company's management (and the manager and members of Multiband) are now and may in the future become shareholders, officers or directors of other companies which may be engaged in business activities similar to those conducted by the Company. Accordingly, additional direct conflicts of interest may arise in the future with respect to such individuals acting on behalf of the Company or other entities. Moreover, additional conflicts of interest may arise with respect to opportunities which come to the attention of such individuals in the performance of their duties or otherwise. The Company does not currently have a right of first refusal pertaining to opportunities that come to management's attention insofar as such opportunities may relate to the Company's proposed business operations.

 

ITEM 11. EXECUTIVE COMPENSATION

 

Ms. Tran, our Chief Executive Officer and sole Director through January 2022, was not compensated for her services as officer or director for the years ended December 31, 2021 and 2020. Mr. Frinzi, our Director, Chief Executive Officer since January 2022, was not compensated for his services as officer or director for the years ended December 31, 2021 and 2020. We did not compensate our officers and directors for the years ended December 31, 2021 and 2020.

 

Employment Agreement

 

We have no employment agreements or similar contracts with Ms. Tran or our current directors and officers.

 

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

 

The following table sets forth information regarding the beneficial ownership of our Common Stock and Preferred Stock as of May [26, 2022. The information in this table provides the ownership information for: each person known by us to be the beneficial owner of more than 5% of our equity securities; each of our directors; each of our named executive officers and executive officers; and our officers and directors as a group.

 

Beneficial ownership has been determined in accordance with the rules and regulations of the SEC and includes voting or investment power with respect to the shares and generally means that a person has beneficial ownership of a security if he, she or it possesses sole or shared voting or investment power of that security, including securities that are convertible into and exercisable for shares of Common Stock or Preferred Stock within sixty (60) days after May 26, 2022. Unless otherwise indicated, the persons named in the table below have sole voting and investment power with respect to the number of shares indicated as beneficially owned by them.

 

 28 
 

 

For purposes of computing the percentage of outstanding shares of our Common Stock or Preferred Stock held by each person or group of persons named above, any shares of Common Stock or Preferred Stock that such person or persons has the right to acquire within sixty (60) days after May 26, 2022 is deemed to be beneficially owned by such person, but is not deemed to be outstanding for the purpose of computing the percentage ownership of any other person. The inclusion herein of any shares of Common Stock or Preferred Stock listed as beneficially owned does not constitute an admission of beneficial ownership.

 

Name of Beneficial Owner  

Common

Stock
Beneficially
Owned (1)

   

Percentage

of
Common

Stock
Owned (1)

 Multiband Global Resources, LLC     7,923,230     71.5%
             
             
Directors and Executive Officers            
Quynh Hoa T. Tran     100,000     <1.0%
James Frinzi     -     -
Jeremie Peterkin     -     -
Shalom Auerbach     -     -
Angela Paxton     -     -
Antonio Munoz     -     -
             
Directors and Executive Officers as a Group (6 persons)     100,000     <1.0%

 

 

Name of Beneficial Owner  

Preferred

Stock
Beneficially
Owned (2)

   

Percentage

of
Preferred

Stock
Owned (2)

 Multiband Global Resources, LLC     600,000     100.0%

 

(1)     Applicable percentage ownership is based on 11,081,366 shares of Common Stock outstanding as of May 26, 2022. Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and generally includes voting or investment power with respect to securities. Shares of Common Stock that are currently exercisable or exercisable within 60 days of the fixed date are deemed to be beneficially owned by the person holding such securities for the purpose of computing the percentage of ownership of such person but are not treated as outstanding for the purpose of computing the percentage ownership of any other person.

 

(2)     Applicable percentage ownership is based on 600,000 shares of Preferred Stock outstanding as of May 26, 2022. Beneficial ownership is determined in accordance with the rules of the Securities and Exchange Commission and generally includes voting or investment power with respect to securities. Shares of Preferred Stock that are currently exercisable or exercisable within 60 days of the fixed date are deemed to be beneficially owned by the person holding such securities for the purpose of computing the percentage of ownership of such person but are not treated as outstanding for the purpose of computing the percentage ownership of any other person.

 

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

 

As of December 31, 2020, the Company owed $93,733 to Specialty Capital Lenders LLC (“Specialty”), an affiliate and related party to the Company. The manager and sole member of Specialty is Ronald J. Stauber, who is one of the members of Repository Services. Repository Services owned 73.3% of the issued and outstanding Common Stock and 100% of the issued and outstanding shares of Preferred Stock prior to December 23, 2021. In December 2021, Repository Services transferred the 200,000 common shares it held that were not purchased by Multiband to Katell Survivors Trust (Gerald Katell, Trustee), an unrelated nonaffiliate to the parties.

 

On September 30, 2020, the Company entered into an Obligation Extension Agreement with Specialty. Pursuant to the terms of the Obligation Extension Agreement, the original principal will continue to accrue interest at the rate of three (3%) percent per annum beginning on October 1, 2020. The Obligation Extension Agreement terminated on October 1, 2021, at which time all unpaid principal and accrued interest was due and payable to Specialty. As of May 26, 2022, the Company owed to Specialty principal and interest in the sum of $95,983 plus accrued interest.

 

 29 
 

 

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

 

Audit and Related Fees

 

The Audit committee of the Company has appointed MaughanSullivan as the Company’s independent registered public accounting firm for the year ended December 31, 2021 and 2020.

 

The following table is a summary of the fees billed to us by MaughanSullivan for fiscal years ended December 31, 2021 and December 31, 2020:

 

Fee Category 

Fiscal

2021 fees

  

Fiscal

2020 fees

 
Audit fees  $9,500   $11,000 
Audit-related fees   -    - 
Tax fees   -    - 
All other fees   -    - 
Total fees  $9,500   $11,000 

 

Audit Fees. Such amount consists of fees billed for professional services rendered in connection with the audit of our annual financial statements and review of the interim financial statements included in our quarterly reports. It also includes services that are normally provided by our independent registered public accounting firms in connection with statutory and regulatory filings or engagements.

 

Audit-Related Fees. Consists of fees billed for assurance and related services that are reasonably related to the performance of the audit or review of our financial statements and are not reported under “Audit Fees.”

 

Tax Fees. Tax fees consist of fees billed for professional services related to tax compliance, tax advice and tax planning. These services include assistance regarding federal, state and international tax compliance, tax audit defense, customs and duties, mergers and acquisitions, and international tax planning.

 

All Other Fees. Consists of fees for products and services other than the services reported above.

 

Serving the equivalent functions of the audit committee, the Board’s practice is to consider and approve in advance all proposed audit and non-audit services to be provided by our independent registered public accounting firm. All the fees shown above were pre-approved by the Board.

 

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

 

The following documents are filed as part of this Annual Report:

 

1.Financial Statements:

 

All financial statements set forth under Part II, Item 8 of this Annual Report.

 

2.Financial Statement Schedules:

 

All schedules are omitted because they are not applicable or are not required, or because the required information is included in the financial statements or notes in this Annual Report.

 

 30 
 

 

3.Exhibits:

 

EXHIBITS

 

Exhibit Number   Description of Exhibits
3.1   Articles of Incorporation. (1)
3.2   Certificate of Amendment to Articles of Incorporation. (1)
3.3   Certificate of Designation of Preferences, Rights and Limitations of Series A Preferred Stock. (1)
3.4   By-Laws. (1)
4.1   Secured Promissory Note by and between the Company and GNET ATC, Inc. (filed herewith.)
4.2   Security Agreement by and between the Company and GNET ATC, Inc. (filed herewith.)
4.3   Promissory Note by and between the Company and Specialty Capital Lenders LLC. (filed herewith.)
21.1   Subsidiaries of Registrant (filed herewith.)
31.1   Certification of Principal Executive Officer and Principal Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (filed herewith.)
31.2   Certification of Principal Executive Officer and Principal Financial Officer, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (filed herewith.)
32.1   Certification of Principal Executive Officer and Principal Financial Officer, pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. (filed herewith.)
101.INS*   XBRL Instance Document.
101.SCH*   XBRL Taxonomy Extension Schema Document.
101.CAL*   XBRL Calculation Linkbase Document.
101.DEF*   XBRL Taxonomy Definition Linkbase
101.LAB*   XBRL Taxonomy Labels Linkbase Document.
101.PRE*   XBRL Taxonomy Presentation Linkbase Document.
104   Cover Page Interactive Data File. (formatted as Inline XBRL and contained in Exhibit 101.)

 

(1) Incorporated by reference to the Exhibit filed with the Form 10 filed by the Company with the SEC on August 2, 2021.

 

*XBRL related information in Exhibit 101 to this Annual Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to liability of that section and shall not be incorporated by reference into any filing or other document pursuant to the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such filing or document.

 

ITEM 16. FORM 10-K SUMMARY

 

None.

 

 31 
 

 

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.

 

Date: May 27, 2022

 

 American Metals Recovery and Recycling Inc.,
 a Nevada corporation
   
 By:/s/ James Frinzi
  James Frinzi
  Chief Executive Officer
   
   
 By:/s/ Jeremie Peterkin
  Jeremie Peterkin
  Chief Financial Officer

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, this Annual Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

 

Date: May 27, 2022 By: /s/ James Frinzi
      James Frinzi
      Director
       
Date: May 27, 2022 By: /s/ Jeremie Peterkin
      Jeremie Peterkin
      Director
       
Date: May 27, 2022 By: /s/ Shalom Auerbach
      Shalom Auerbach
      Director

 

 

32

 

 

 

Exhibit 4.1

 

 

   

 

 

SECURED PROMISSORY NOTE $44,000,000.00 January 21, 2022 FOR VALUE RECEIVED, American Metals Recovery and Recycling Inc., having an address at 4306 Westbank Dr. B-l I0 Austin, Texas 78746 (“Maker”). promises to pay to the order of GNET ATC INC. (“Lender”). having an address at 2801 Network Blvd. Ste. 300 Frisco, Texas 75034. or at such other address as the holder of this Note may specify, the principal sum of (US$44,000,000.00) (the “Principal Balance”) with interest thereon, payable monthly at the rate of TEN PERCENT (10%) per annum with a maturity date of January 21, 2025 (“Maturity Date") Option to Extend Maturity Date. Maker shall have the two options to extend the Maturity Date twelve (12) months each time the option is exercised. (“Option”) Maker shall pay a fee equal to 1% of the outstanding principal balance at the time each Option is exercised. Principal. Maker’s payments of the principal amount to Lender must be paid in equal monthly payments starting on September 23, 2022 with the final payment on the Maturity Date. lnterest. Interest shall be calculated on the basis of a 360-day year for the actual number of days elapsed and shall be payable by Maker to Lender as a balloon payment at the Maturity Date. Maker may prepay the principal amount outstanding in whole or in part at any time without penalty, provided that Maker pays all accrued interest on such prepayment therewith. Any partial prepayment shall be applied against the last payments due hereunder, in the inverse order of maturity, and shall not postpone the due date of any other payments. ln the event Maker prepays the principal amount in full including all accrued interest, Maker will be obligated to pay Lender twelve ( l 2) months interest. None of the provisions of this Note may be waived, changed, or terminated orally or otherwise, except by a writing duly executed by Maker and Lender. This Note sets forth the entire understanding between Maker and Lender relating to the subject matter hereof and supersedes all prior agreements and understandings, whether oral or written, relating thereto. This Note and the rights and obligations of Maker and Lender hereunder shall be governed by the laws of the State of Texas without regard to principles of conflicts of lawst Maker and Lender agree that in any action or proceeding brought on or in connection with this Note any court of competent jurisdiction within the state of Texas shall have exclusive jurisdiction of any such action or proceeding. Maker represents and warrants that (a) it is a corporation duly organized and existing under the laws of the state of Nevada and is duly qualified to do business and is in good standing in every state where the failure to qualify would material I y and adversely affect the financial condition of Maker; and (b) the execution. issuance and delivery of this Note by Maker are within its company powers and have been duly authorized by all necessary company action, and this Note is valid, binding, and enforceable in accordance with its temis, and is not in violation of law or of the terms of Maker’s organizational documents and docs not result in the breach of or constitute a default under any indenture by which it or its property may be bound or affected. All representations and warranties contained herein or otherwise made in writing in connection herewith shall be true and correct and with the same force and effect as though such representations and warranties had been made on and as of the date of the making of any such borrowing. No delay or omission on the pan of Lender in exercising any right hereunder shall operate as a waiver of such right or of any other right under this Note or any supporting document. A waiver on any one occasion shall not be construed as a Waiver of any such right or remedy on any fi.|ture occasion. This Note is subject to the express condition that at no time shall Maker be obligated or required to pay interest on the Principal Balance at a rate which could subject Lender to either civil or criminal liability as a result of being in excess of the maximum rate which Maker is permitted by law to contract or agree to pay. lf, by the terms of this Note, Maker is at any time required or obligated to pay interest on the Principal Balance at a rate in excess of such maximum rate, the rate of interest under this Note shall be deemed to be immediately reduced to such maximum rate and interest payable hereunder shall be computed at such rate and the portion of all interest payments in excess of such maximum rate shall be applied and shall be deemed to have been payments in reduction of the Principal Balance. This Note may be sold, assigned, or split apart upon written agreement between the parties at any time. Executed effective as of the date first set forth above. American Metals Recovery and Recycling Inc., (“Maker”) GNET ATC INC. (“Lender”) ”'/ M/' to /" _/"1' 7‘ A _V/M‘? :70’ ~\.._.. By: //V By: /7 /L’ . Nam¢I/ James Frinzi CEO Name: James G0 dman Titlez‘ Tillei Chairman ‘ {N0494l40. 2; 2

 

 

 

 

Exhibit 4.2

 

 

   

 

 

   

 

 

   

 

 

   

 

 

SECURITY AGREEMENT This SECURITY AGREEMENT, dated as of January 21, 2022 (as amended, supplemented or otherwise modified from time to time in accordance with the provisions hereof, this "Agreement"), is made by American Metals Recovery and Recycling Inc.,, a Texas corporation ("Grantor"), in favor of GNET ATC INC., a Texas corporation, as Secured Party (in such capacity, together with its successors in such capacity, “Secured Party”). REC ITA LS WHEREAS, Grantor and the “Secured Party” have entered into that certain promissory note (the “Note”); and WHEREAS, under the terms of this Agreement, Grantor desires to grant to the Secured Party a security interest in the Collateral, as defined herein, to secure any and all Secured Obligations, as defined herein. NOW THEREFORE, in consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable consideration. the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 1. DEFINITIONS. All capitalized terms used herein without definitions shall have the respective meanings set forth in the Note. Unless otherwise defined herein, terms used herein that are defined in the Uniform Commercial Code as in effect from time to time in the State of Texas (the "UCC“) shall have the meanings assigned to them in the UCC. However, if a term is defined in Article 9 of the UCC differently than in another Article of the UCC, the term has the meaning specified in Article 9. 2. GRANT OF SECURITY INTEREST. (a) For value received, Grantor hereby grants to Secured Party, to secure the payment and performance in full of all of the Secured Obligations (as defined in this Agreement), a security interest in and pledges and assigns to Secured Party all of Grantor’s right, title and interest in and to all of Grantor’s properties, assets, and rights, wherever located, whether Grantor now has or hereafter acquires an ownership or other interest or power to transfer, and all proceeds and products thereof, and all books and records relating thereto (the definition of Collateral specifically excludes all securities or shares of Grantor as well as any securities or shares that Grantor hereafter acquires in the ordinary course of business) (all of the same being hereinafter called the "C0llateraI"), including, without limitation: all personal and fixture property of every kind and nature including all goods (including inventory, equipment, and any accessions thereto), instruments (including promissory notes), documents (whether tangible or electronic), accounts, all of Grantor's accounts receivable, including any accounts receivable acquired by Grantor from a third party, evidencing any right to payment for goods sold or leased or for services rendered, now existing or subsequently acquired, and the proceeds of the accounts receivable, including all goods returned to or repossessed by Grantor and all claims of Grantor against common carriers for goods lost or damaged in transit, chattel paper (whether tangible or electronic), money, deposit accounts, letters of credit, letter-of-credit rights (whether or not the letter of credit is evidenced by a writing), commercial tort claims described on Schedule 1 hereof as supplemented by any written notification given by Grantor to Secured Party, securities and all other investment property, supporting obligations, and other contracts rights or rights to the payment of money, insurance claims and proceeds, tort claims, and all general intangibles (including all payment intangibles)‘ (b) If Grantor shall at any time hold or acquire a commercial tort claim, Grantor shall immediately notify Secured Party in writing of the details thereof and grant to Secured Party in such writing, in form and substance satisfactory to Secured Party, a security interest therein and in the proceeds thereof. 3. SECURED OBLIGATIONS. This Agreement secures the prompt and full performance and payment of all of the indebtedness, obligations, liabilities, and undertakings of Grantor to the Secured Party, of any kind or description, individually or collectively, whether direct or indirect, joint or several, absolute or contingent, due or to become due, voluntary or involuntary, now existing or hereafter arising (including, all interest, fees (including reasonable attorneys‘ fees), costs, and expenses that Grantor is hereby or otherwise required to pay and perfonn pursuant to the Note, this Agreement, or any other documents, by law or otherwise accruing before and after the filing of any petition in bankruptcy or the commencement of any insolvency, reorganization or like proceeding relating to Grantor, whether or not a claim for post-petition interest, fees or expenses is allowed in such proceeding), irrespective of whether for the payment of money, under or in respect of the lntercreditor Agreement, the Notes, this Agreement, or any other documents, including instruments or agreements executed and delivered pursuant thereto or in connection therewith (the "Secured Obligations"). 4. CHANGES IN LOCATION OF COLLATERAL. Grantor hereby agrees to notify Secured Party, in writing or via electronic communication, within five (5) business days upon any change in the location of any Collateral and provide Secured Party with the new location of such Collateral. 5. _C,H__A_N_GE_S IN, (_}_RANf,l‘_OR. Grantor hereby agrees to notify Secured Party, in writing or via electronic communication, at least fifteen (I5) days before any of the following actions: (a) change in the location of Grantor's place of business; (b) change in Grantor's name; (e) change in Grantor's type of organization; (d) change in Grantor's jurisdiction of organization; and (e) change in Grantor's corporate structure. 6. GRANTOR REPRESENTATIONS AND WARRANTIES. Grantor hereby represents, warrants, and covenants that: this Agreement creates in favor of Secured Party a valid security interest in the Collateral, securing payment of the Secured Obligations, and such security interest is first priority. Grantor will defend the Collateral against all claims and demands made by all persons claiming either the Collateral or any interest in it. 7. GRANTOR COVENANTS AND INSURANCE. Grantor hereby grants to Secured Party the right to enter Grantor's property to inspect the Collateral at any reasonable time, provided that Secured Party gives Grantor notice within five (5) days of any inspection, however in no case shall notice be required if Secured Party enters Grantor's property for the purposes of remedying a breach of this Agreement as provided in Section I0 of this Agreement. Grantor agrees to: (a) maintain the Collateral in good order, repair, and condition at all times, provided, however, reasonable wear and tear shall not be deemed a defect or non-conformance under this provision or any relevant provision of this Agreement; (b) timely pay all taxes, judgments, levies, fees, or charges of any kind levied or assessed on the Collateral; (c) timely pay all rent or mortgage payments of any kind as applicable to any real property upon which any part of the Collateral is located; and (d) have and maintain at all times a hazard insurance policy on the Collateral underwritten by an insurance company, and in an amount, approved 2 by Secured Party, but in no way shall the amount of insurance he less than the replacement cost of the Collateral. Grantor hereby assigns to Secured Party all rights to any proceeds of any insurance procured under this Section, and authorizes Secured Party to receive such payments and execute any and all documents required to receive such payments. If Grantor fails to provide for the insurance as set out in this Section, Secured Party, in addition to any remedies as set out in this Agreement, may procure the requisite insurance on the Collateral on its own behalf and charge Grantor with any and all costs of such procurement. 8. PERFECTION OF SECURITY INTEREST. Grantor agrees that at any time and from time to time, at the expense of Grantor, Grantor will promptly execute and deliver all further instruments and documents, obtain such agreements from third parties, and take all further action, that may be necessary or desirable, or that the Secured Party may request, in order to create and/or maintain the validity, perfection or priority of and protect any security interest granted or purported to be granted hereby or to enable the Secured Party to exercise and enforce their rights and remedies hereunder or under any other agreement with respect to any Collateral. Grantor hereby authorizes Secured Party to file or record any document necessary to perfect, continue, amend, or terminate its security interest in the Collateral, including, but not limited to, any financing statements, including amendments, authorized to be filed under the UCC, without signature of Grantor where permitted by law, including the filing of a financing statement describing the Collateral as all assets now owned or hereafter acquired by Grantor, or words of similar effect. Grantor also hereby ratifies any previously filed documents or recordings regarding the Collateral, including but not limited to, any and all previously filed financing statements. 9. REMEDIES. If an Event of Default shall have occurred and be continuing, Secured Party may do any or all of the following: (a) declare all Secured Obligations immediately due and payable; (b) enter Grantor's property where the Collateral is located and take possession of the Collateral without demand or legal process; (c) require Grantor to assemble and make available the Collateral at a specific time and place designated by Secured Party; (d) sell, lease, or otherwise dispose of the Collateral at any public or private sale in accordance with the law; and (e) enforce payment of the Secured Obligations and exercise any rights and remedies available to the Secured Party under law, including, but not limited to, those rights and remedies available to the Secured Party under Article 9 of the UCC. Unless the Collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized market, the Secured Party shall give to the Grantor at least ten (I0) days’ prior written notice of the time and place of any public sale of Collateral or of the time after which any private sale or any other intended disposition is to be made. The Grantor hereby acknowledges that ten (10) days’ prior written notice of such salc or sales shall be reasonable notice. 10. SECURED PARTY RIGHTS. No delay, omission, or failure on the part of any Secured Party to exercise or enforce any of its rights or remedies, either granted under this Agreement or by law, shall constitute an estoppel or waiver of such right or remedy or any other right or remedy. Any and all rights of the Secured Party provided by this Agreement shall inure to the benefit of its successors and assigns. I l. SEVERABILITY AND MODIFICATION. If any of the provisions in this Agreement is determined to be invalid, illegal, or unenforceable, such determination shall not affect the validity, legality, or enforceability of the other provisions in this Agreement. No waiver, modification or amendment of, or any other change to, this Agreement will be effective unless done so in a separate writing signed by Secured Party. 3 l2. NOTICES. Any notice or other communication required or pennittcd to be given under this Agreement, including, without limitation, notices under this Agreement, shall be given and shall become effective upon written notice to the addresses listed in the Secured Promissory Note between the Parties. l3. ENTIRE AGREEMENT. This Agreement (including all documents referred to herein) represents the entire agreement between the parties, and supersedes all previous understandings and agreements, whether oral or written, regarding the subject matter hereof. 14. .IURlSDlC'l‘lO_l;I. This Agreement will be interpreted and construed according to the laws of the State of Texas. including, but not limited to, the UCC, without regard to ch0ice—ol'-law rules in any jurisdiction. 15. COUNTERPARTS. This Agreement may be executed by the parties hereto in counterparts, each of which when so executed and delivered shall be deemed an original for all purposes, but all such counterparts shall together constitute one and the same instrument. I 6. [Signature page f0ll0ws.] l457H35vl IN WITNESS WHEREOF, the undersigned Grantor and Secured Party have executed this Security Agreement as of the date first above written. ACCI-JPTED AND AGREED as ofthe date first above written: GNET ATC [NC., as Secured Party .//_ /_. W__ By: Q .. I / i GRANTOR: American Metals Recovery and Recycling Inc. // Byj V ,'/ {V-\ z - / Name: ,}L-"/ James Frinzi Title: CEO Name; \~~’ James Goddman i Title: Chairman F

 

 

 

 

Exhibit 4.3

 

 

   

 

 

ASSIGNMENT Gordon Muir, (“Assignor") do hereby grant, bargain, sell, assign, transfer, and convey unto Specialty Capital Lenders LLC, a Wyoming Limited Liability Company, for good and valuable consideration. the receipt and sufficiency of which is hereby acknowledged. all of Assign0r's right, title and interest in and to all sums due to Assignor by American Metals Recovery & Recycling, lnc., to include, but not limited to Account 20500 — Accrued Expenses (salary) and Accoun 21000 — due to G.Muir — (officer). lN WITNESS WHEREOF, the undersigned has executed this Assignment effective as of this 16"" day of December 2019. n Muir OBLIGATION EXTF,NSI()N AGREEMENT T hi5 (,)BLI(}ATlO?\i EX'HjT\i$i()N ,~\C»Rli{~fMl'.NT. (hcreinafier rcf<:rrcd to as "lixtensmn /\grcu;m~:\x.‘”) is entered into as ofllccembcr H4. 2029, by zmd between Speciahy Lfupixal hzndgrs I,LC_ a V~’ymning Limited l_iaI>i!ii_\' (Tumpany. ('hcrcinz1I‘Ler caiicd “I_,cr1<!crs") and Anxcrican Mclals Rccowry A’; Rcc_\‘\3§ing ln<.. (fzxpiwl lncz. a E\’¢\=ada corgmratiun Qhereimfhrr‘ caficd “!\MRR"). Vv‘II¥'%R.kI!\_\f. <fmrdr>n Muir. as Assignor, did hcrch} gram, bargain. scil. as-sign. zmnsibr. and come; unw !.¢n<Iers fur gum! and valuable ¢<>nsideruli(>n ali of/\ssig;n<.1r'> right, (Me and imcrcsi in and to mi? sum< due to A»*ig110r by AMRR to inciudc“ hm um iimiicd w Ac¢<.>um Z()5(>U ~ Accrued lixpenscs (>aa%ary) and Acmun Z1U(J()— due Iv (}.!\<11,1ir~(<,\fi3ccr)4 \*\"i{F,R¥1.-<\,‘%. Lenders and AMRR zxcknm\lc<igetl1zn the total of said ubiigminn> are 5289.57.85 an; of ms daze hcreoi WH§;R}‘{x\S., I,cnclcr:\" and AMRR desire to enter Emu this iixtcnsion Agreement in order U) to c0|\t%nn lhc correct the amount that is due and payable and (ii) to extend the due dam: oftlw Prcnnissory Note in .I:mum"y 1. 2021 f\;(')\>v‘. TI §f~1RH‘()RE*l, Lenders and A MRR hawcby agree as follows I. The muiurity dam oflhe ubligaiion is extended 10 January L 2021. 2. The amount due to Lenders by AMRR under this obligation is the wrn of $8<J.Z57.&5 as at Scpxcmhcr 30. 1(3)‘). 3; The unpaid principal ofthc ohiigmion m"$8‘?).257.85 bears interest from January 1, 2020 at the inwrcxt mic of five (5%) per emuum. 4. Imercsi wgcthcr with ihc principai due shali be paid on Jzmuary L 1302!. l?\ \\’!T?\’!§SS \J\’§§E'lRl.ZOF.‘ Lendcrs and AMRR have executed this EX!¢‘I1$;iOh Agreemem as of Dcculn bcr I3. 2411‘). SPF.("lAl.T\’ ' PITAL LENDERS LLC B» , ...,,-.~ Name: Ronald .1. f 'uh r Hue: DulyAulhorized AMERl(“A?\’ METALS RI'l(T()VERY AND RECYCLING INC, Dehneniuofft ' ‘uca (___'_~_____d___ Title; ~?7§5?;T3é,'§iw:CT!1icf kiwczative ()fl'xccr

 

 

 

 

Exhibit 21.1

 

AMERICAN METALS RECOVERY AND RECYCLING INC.
SUBSIDIARIES OF THE REGISTRANT

 

 

Name  State of Formation,
Organization or Incorporation
AMR Resources, LLC  Delaware

 

 

 

 

 

 

 

 

 


 

 
EXHIBIT 31.1

CHIEF EXECUTIVE OFFICER CERTIFICATION
 
 
I, Lewis Andrews,

EXHIBIT 31.1

 

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO RULE 13A-14(A) AND RULE 15D-14(A)

OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

I, James Frinzi, Chief Executive Officer of American Metals Recovery And Recycling Inc., certify that:


 

1. I have reviewed this annual reportAnnual Report on Form 10-K of PREMIERAmerican OIL FIELD SERVICES, INC.

 
2. Metals Recovery and Recycling Inc. (the “registrant”); and

 

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this amended report;

 
report.

 

3. Based on my knowledge, the financial statements, and other financial information included in this reportAnnual Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 
4. The registrant’

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 
a)

 

a) Designed such disclosure controls and procedures, or caused such disclosure   controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the   period(s) in which this reportAnnual Report is being prepared;

 
b)

 

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 
c)

 

c) Evaluated the effectiveness of the registrants disclosure controls and procedures   and presented in this report our conclusionconclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 
d)

 

d) Disclosed in this report any change toin the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual reportAnnual Report) that has materially affected, or is reasonably   likely to materially affect, the registrants internal control over financial reporting; and


5. The registrant’

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):

 
a)
all

 

a) All significant deficiencies and material weaknesses in the design or operation of internal controlscontrol over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and

 
b)
any

 

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.


 

Date: May 27, 2022

/s/ James Frinzi

James Frinzi

Chief Executive Officer

(Principal Executive Officer)

 

 

 

 

 

Date: April 2, 2014
 
/s/ Lewis Andrews
President and Chief Executive Officer
 
 
 
 
 

 

 

 

 


 
EXHIBIT 31.2

EXHIBIT 31.2

 

CHIEF FINANCIAL

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER CERTIFICATION

 
 
I, Lewis Andrews,

PURSUANT TO RULE 13A-14(A) AND RULE 15D-14(A)

OF THE SECURITIES EXCHANGE ACT OF 1934, AS AMENDED

 

I, Jeremie Peterkin, Chief Financial Officer of American Metals Recovery And Recycling Inc., certify that:


 

1. I have reviewed this annual reportAnnual Report on Form 10-K of PREMIERAmerican OIL FIELD SERVICES, INC.

 
Metals Recovery and Recycling Inc. (the “registrant”); and

 

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this amended report;

 
report.

 

3. Based on my knowledge, the financial statements, and other financial information included in this reportAnnual Report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 
4. The registrant’

 

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 (e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 
a)

 

a) Designed such disclosure controls and procedures, or caused such disclosure   controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the   period(s) in which this reportAnnual Report is being prepared;

 
b)

 

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 
c)

 

c) Evaluated the effectiveness of the registrants disclosure controls and procedures   and presented in this report our conclusionconclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 
d)

 

d) Disclosed in this report any change toin the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual reportAnnual Report) that has materially affected, or is reasonably   likely to materially affect, the registrants internal control over financial reporting; and


5. The registrant’

 

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):

 
a)
all

 

a) All significant deficiencies and material weaknesses in the design or operation of internal controlscontrol over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and

 
b)
any

 

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.

 
 
 Date: April 2, 2014
 
/s/ Lewis Andrews
President, Secretary, Treasurer and Chief Accounting Officer
 
 
 
 
 
 

 

 

Date: May 27, 2022

/s/ Jeremie Peterkin

Jeremie Peterkin

Chief Financial Officer

(Principal Financial Officer)

 

 

 

 

 

 

 

 


 
EXHIBIT 32.1
 
CERTIFICATION PURSUANT TO
 
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
 
In connection with the Annual Report of PREMIER OIL FIELD SERVICES, INC.

EXHIBIT 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350

 

In connection with the Annual Report of American Metals Recovery and Recycling Inc. (the “Company”) on Form 10-K for the period endingyear ended December 31, 2013 and December 31, 20122021, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), each of the undersigned, in the capacities and on the dates indicated below, hereby certifies, pursuant to 18 U.S.C. Section §1350, as adopted pursuant to Section§ 906 of the Sarbanes-Oxley Act of 2002, that to the best of his knowledge:

 
1.:

 

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 
2.

 

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operationoperations of the Company.

 
 

 

 

Date: May 27, 2022

/s/ James Frinzi

 

James Frinzi

Chief Executive Officer

(Principal Executive Officer)

 

Date: May 27, 2022 /s/ Jeremie Peterkin
 

Jeremie Peterkin

Chief Financial Officer

(Principal Financial Officer)

 

 

 

 
 
 /s/ Lewis Andrews
 President and Chief Executive officer
 Dated: April 2, 2014
 
/s/ Lewis Andrews
 President, Secretary, Treasurer and Chief Accounting Officer
 Dated: April 2, 2014
 
This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.
 
 
 
 
 
 

 
 

 

 

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