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U.S.
SECURITIES AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
10-K
☒ QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For
the fiscal year ended December 31, 2022
☐ TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission
file number: 000-56304
GOLD
ROCK HOLDINGS, INC.
(Name
of Small Business Issuer in its charter)
|
|
|
|
|
Nevada |
|
000-51074 |
|
87-0434297 |
(State
or other jurisdiction of incorporation) |
|
(Commission
File Number) |
|
(IRS
Employer Identification No.) |
2020 General Booth Blvd.
Suite 230
Virginia Beach, VA 23454
(Address of principal executive offices)
Registrant’s
telephone number: (757) 306-6090
Title
of each class |
Ticker
symbol(s) |
Name
of each exchange on which registered |
N/A
|
N/A
|
N/A
|
Securities
registered under Section 12(g) of the Exchange Act: Common stock, par value $0.001 per share.
Indicate
by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☐ No ☒
Indicate
by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No
☒
Indicate
by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirement for the past 90 days. Yes ☒ No ☐
Indicate
by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data
File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding
12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐
Indicate
by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained
herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated
by reference in Part III of this Form 10-K or any amendment to this Form 10-K. ☐
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 annual report. ☐
Indicate
by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting
company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting
company” in Rule 12b-2 of the Exchange Act:
|
|
|
Large
accelerated filer ☐ |
Accelerated
filer |
☐ |
Non-accelerated filer ☒ |
Smaller
reporting company |
☒ |
|
Emerging
Growth |
☐ |
Indicate
by check mark whether the registrant is a shell company (as defined in Rule 12(b)-2 of the Exchange Act). Yes ☐ No ☒
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. ☐
The
aggregate market value of the 30,345,119 shares of common equity held by non-affiliates computed by reference to the average bid and
ask price of $0.038 per share of the registrant’s common stock (as reported on the OTCPINK operated by “The OTC Markets Group, Inc.”)
at which the common equity was last sold as of the last business day of its most recently completed second fiscal quarter (June 30, 2022)
was approximately $1,153,114.
State
the number of shares outstanding of each of the issuer’s classes of common equity, as of the latest practicable date: At March
14, 2023 the registrant had outstanding 87,482,208 shares of common stock, par value $0.001 per share.
Table
of Contents
INDEX
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
PART
I
Except
for historical information, this report contains forward-looking statements within the meaning of Section 21E of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”). Such forward-looking statements involve risks and uncertainties, including,
among other things, statements regarding our business strategy, future revenues and anticipated costs and expenses. Such forward-looking
statements include, among others, those statements including the words “expects,” “anticipates,” “intends,”
“believes” and similar language. Our actual results may differ significantly from those projected in the forward-looking
statements. Factors that might cause or contribute to such differences include, but are not limited to, our business reliance on
third parties to provide us with technology, our ability to integrate and manage acquired technology, assets, companies and personnel,
changes in market condition, the volatile and intensely competitive environment in the business sectors in which we operate, rapid technological
change, and our dependence on key and scarce employees in a competitive market for skilled personnel. These factors should not
be considered exhaustive; we undertake no obligation to release publicly the results of any future revisions we may make to forward-looking
statements to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events, as well as
those discussed in the section “Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.”
You are cautioned not to place undue reliance on the forward-looking statements, which speak only as of the date of this report.
We undertake no obligation to publicly release any revisions to the forward-looking statements or reflect events or circumstances
taking place after the date of this document.
Item
1. Business.
Business
Gold
Rock Holdings, Inc., (Gold Rock) a Nevada corporation, provides engineering and construction management services, produce site-plans,
construction drawings, cost computations, fiber network designs, and other related construction services. In effect the Company will
act as the general contractor to design the cable systems and it will hire subcontractors to implement those designs. These services
will assist underground construction companies in laying fiber-optics and other underground cable in the United States to help solve
the broadband infrastructure gap.
Gold
Rock intends to grow and further establish itself through marketing campaigns to achieve awareness of its construction and engineering
services, as well as drive business growth by partnering with the high-tech service providers, internet service providers, cable service
providers, satellite service providers, mobile phone providers, communication providers, and local municipalities. In addition, the Company
is actively considering acquisitions that would be accretive to its business. Currently, Gold Rock markets itself through third-parties
that have existing relationships with these providers in their existing demographic service areas. The third parties are construction
companies, or other engineering outfits who propose bids on pending or ongoing high-tech and fiber-optic underground projects in areas
that are either lacking or upgrading high-tech broadband infrastructures. Gold Rock Holding’s management evaluates each engineering and
consulting job on a case by case bases with the intent to enter into a contract for its “UGnet” services. At this time, Gold
Rock Holdings, Inc. has no contracts.
At
this time, the Company expects to receive 100% of its revenues from the sale of thes, as it pertains to underground fiber-optic high-speed
broadband and cable infrastructures. Gold Rock services are offered through the “UGnet” service line, which stands for “Underground
Networks.”
The
Company proactively seeks to expand its Gold Rock “UGnet” services throughout the U.S., and will continue to approach municipalities,
utilities, and cable, phone, mobile phone and internet providers with competitive quotes on underground development of high-speed fiber
optic broadband connectivity. The Company will continue to try to advance its social media platform with direct online and targeted marketing
with the objective of expanding its demographics.
Gold
Rock Holdings, Inc. maintains an executive office in Virginia Beach, Virginia where all marketing, sales, and customer supports activities
are implemented.
Transfer
Agent
Our
transfer agent is Signature Stock Transfer, Inc. whose address is 14673 Midway Road, Suite 220, Addision, Texas, 75001 and its telephone
number 972-612-4120.
Company
Contact Information
Our
principal executive and subsidiary offices are located at 2020 General Booth Blvd., Unit 230, Virginia Beach, VA 23454, telephone (757)
306-6090. The information to be contained in our Internet website, www.goldrockholdings.us, shall not constitute part of
this report.
ITEM
1A. Risk Factors.
We
are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information called for
under this item.
Item1B.
Unresolved Staff Comments.
None.
ITEM
2. Properties.
The
Company’s administrative functions take place in the office space of Yes International, which is owned and operated by Richard Kaiser,
Gold Rock Holdings, Inc. CFO, Secretary and Director. As a result, the Company neither rents nor owns any properties. The Company currently
has no policy with respect to investments or interests in real estate, real estate mortgages or securities of, or interests in, persons
primarily engaged in real estate activities.
ITEM
3. Legal Proceedings.
At
this time, there are no material pending legal proceedings to which the Company is a party or as to which any of its property is subject,
and no such proceedings are known to the Company to be threatened or contemplated against it.
ITEM
4. Mine Safety Disclosure- (Removed and Reserved).
Not
applicable to this Company.
PART
II
ITEM
5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
Our
common stock has been traded on the OTCMARKETS since April 15, 2009, under the symbol “GRHI”
The
following table sets forth the high and low bid prices for our common stock on the OTCPINK as reported by various market makers for 2022
and 2021. The quotations do not reflect adjustments for retail mark-ups, mark-downs, or commissions and may not necessarily reflect
actual transactions.
|
|
|
2021
Quarter Ended: |
|
|
March
31, 2021 |
$0.15 |
$0.03 |
June
30, 2021 |
$0.025 |
$0.025 |
September
30, 2021 |
$0.057 |
$0.057 |
December
31, 2021 |
$0.0325 |
$0.0325 |
|
|
|
|
High |
Low |
2022
Quarter Ended: |
|
|
March
31, 2022 |
$0.025 |
$0.025 |
June
30, 2022 |
$0.038 |
$0.038 |
September
30, 2022 |
$0.014 |
$0.014 |
December
31, 2022 |
$0.0068 |
$0.0068 |
As
of December 31, 2022, we were authorized to issue 850,000,000 shares, $0.001 par value, of our common stock, of which 87,482,208 shares
were outstanding. Our shares of common stock are held by approximately 164 stockholders of record. The number of record holders
was determined from the records of our transfer agent and does not include beneficial owners of our common stock whose shares are held
in the names of various securities brokers, dealers, and registered clearing agencies.
Preferred
Stock
We
are authorized to issue up to 50,000,000 shares of our preferred stock, par value $0.001 per share, from time to time in one or more
series. As of the date of this prospectus, no shares of preferred stock have been issued. Our Board of Directors, without further approval
of our stockholders, is authorized to fix the dividend rights and terms, conversion rights, voting rights, redemption rights, liquidation
preferences and other rights and restrictions relating to any series of preferred stock that may be issued in the future. Issuances of
shares of preferred stock, while providing flexibility in connection with possible financings, acquisitions and other corporate purposes,
could, among other things, adversely affect the voting power of the holders of our common stock and prior series of preferred stock then
outstanding.
Dividends
We
have not paid or declared any dividends on our common stock, nor do we anticipate paying any cash dividends or other distributions on
our common stock in the foreseeable future. Any future dividends will be declared at the discretion of our board of directors and
will depend, among other things, on our earnings, if any, our financial requirements for future operations and growth, and other facts
as our board of directors may then deem appropriate.
ITEM
6. Selected Financial Data.
Not
applicable.
ITEM
7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
THE
FOLLOWING DISCUSSION SHOULD BE READ TOGETHER WITH THE INFORMATION CONTAINED IN THE CONSOLIDATED FINANCIAL STATEMENTS AND RELATED NOTES
INCLUDED ELSEWHERE IN THIS ANNUAL REPORT ON FORM 10-K.
The
following discussion reflects the results of our operations. This discussion should be read in conjunction with the financial statements
which are attached to this report. This discussion contains forward-looking statements, including statements regarding our expected
financial position, business and financing plans. These statements involve risks and uncertainties. Our actual results could
differ materially from the results described in or implied by these forward-looking statements as a result of various factors, including
those discussed below and elsewhere in this report, particularly under the headings “Special Note Regarding Forward-Looking Statements.”
Unless
the context otherwise suggests, “we,” “our,” “us,” and similar terms, as well as references to “GRHI”
or “Gold Rock “ all refer to Gold Rock Holdings, Inc. as of the date of this report.
Coronavirus
Impact (COVID-19)
Due
to the recent outbreak of the coronavirus reported in many countries worldwide, local and federal governments have issued travel advisories,
canceled large scale public events and closed schools. In addition, companies have begun to cancel conferences and travel plans and require
employees to work from home. Global financial markets have also experienced extreme volatility and disruptions to capital and credit
markets.
Adverse
events such as health-related concerns about working in our offices, the inability to travel, potential impact on our business partners
and customers, and other matters affecting the general work and business environment could harm our business and delay the implementation
of our business strategy.
Management
is currently aware of the global and domestic issues arising from the Covid-19 pandemic and the possible direct and indirect effects
on the Company’s operations which could have a material adverse effect on the Company’s current financial position, future results of
operations, or liquidity, because its current operations are limited. However, investors should also be aware of factors, which includes
the possibility of Covid-19 effects on operational status, could have a negative impact on the Company’s prospects and the consistency
of progress in the areas of revenue generation, liquidity, and generation of capital resources. These may include: (i) variations in
revenue, (ii) possible inability to attract investors for its equity securities or otherwise raise adequate funds from any source should
the company seek to do so, (iii) increased governmental regulation or significant changes in that regulation, (iv) increased competition,
(v) unfavorable outcomes to litigation involving the Company or to which the Company may become a party in the future, and (vi) a very
competitive and rapidly changing operating environment. The adverse events may also adversely impact our ability to raise capital or
to continue as a going concern. We continue to monitor the recent outbreak of the coronavirus on our operations. The global economic
slowdown and the other risks and uncertainties associated with the pandemic could have a material adverse effect on our business, financial
condition, results of operations and growth prospects. In addition, to the extent the ongoing COVID-19 pandemic adversely affects the
Company’s business and results of operations, it may also have the effect of heightening many of the other risks and uncertainties which
the Company faces.
Going
Concern
On
December 31, 2022, we had total assets of $1,284 and total liabilities of $403,175. In the absence of significant revenue and profits,
we will be completely dependent on additional debt and equity financing. If we are unable to raise needed funds on acceptable terms,
we will not be able to execute our business plan, develop or enhance existing services, take advantage of future opportunities, if any,
or respond to competitive pressures or unanticipated requirements. If we do not obtain sufficient capital, we will not be able to continue
operations.
As
of December 31, 2022, Gold Rock Holdings, Inc. had an accumulated deficit of $633,726, which included a net loss of $434,182. Also, during
the year ended December 31 2022, we used net cash of $40,292 for operating activities. These factors raise substantial doubt about our
ability to continue as a going concern.
While
we are attempting to generate revenues, our cash position may not be significant enough to support our daily operations. Management
intends to raise additional funds by way of an offering of our debt or equity securities. Management believes that the actions
presently being taken to further implement our business plan and generate revenues provide the opportunity for BioForce to continue as
a going concern. ;While we believe in the viability of our strategy to generate revenues and in our ability to raise additional
funds, we may not be successful.
Our
ability to continue as a going concern is dependent upon our capability to further implement our business plan and generate revenues.
Results
of Operations
Year
Ended December 31, 2022 Compared to Year Ended December 31, 2021.
Revenues
for the Company’s year ended December 31, 2022 and December 31, 2021 totaled $-0- from the sales of the Company’s “UGnet”construction
management, engineering services and fiber network design.
Cost
of Goods Sold for the year ended December 31, 2022 and December 31, 2021 totaled $-0-.
Gross
margins for year ended December 2022 and 2021 was $-0- due to no sales of the Company’s “UGnet”construction management, engineering
services and fiber network design.
Gross
profit for the year ended December 31, 2022 and 2021 was $-0- due to -0- sales..
General
and Administrative expenses for the year ended December 31, 2022 totaled $41,682 compared to $50,044 for December 31, 2021, primarily
due to decreases in professional service fees.
Net
Loss
Net
loss for the years ended December 31, 2022 and 2021 were $434,182 and $92,044, respectively. The increase in loss was due to increases
in consluting fees.
Liquidity
and Capital Resources:
As
of December 31, 2022, our assets totaled $1,284 in Cash. The Company’s total liabilities were $403,175, which consisted of accounts payable
and accrued expenses and accrued board of directors compensation. As of December 31, 2022, the Company had an accumulated deficit of
$633,726 and working capital deficit of $402,891
The
Company’s significant operating losses raise substantial doubt about its ability to continue as a going concern. The financial
statements do not include any adjustments that might result from the outcome of this uncertainty. As indicated herein, we need capital
for the implementation of our business plan, and we will need additional capital for continuing our operations. We do not have
sufficient revenues to pay our operating expenses at this time. Unless the Company is able to raise working capital, it is likely
that the Company will either have to cease operations or substantially change its methods of operations or change its business plan.
For the next 12 months the Company has an oral commitment from its CEO to advance funds as necessary to meeting our operating requirement.
Investing
Activities
Net
cash used in investing activities was $0 for both calendar years ended December 31, 2022, and 2021.
Cash
from Financing Activities
Net
cash provided by financing activities was $39,876 for year ended December 31, 2022, and was $45,959 for year ended December 31, 2021.
Critical
Accounting Policies
Our
consolidated financial statements and accompanying notes are prepared in accordance with generally accepted accounting principles in
the United States. Preparing financial statements requires management to make estimates and assumptions that impact the reported
amounts of assets, liabilities, revenue, and expenses. These estimates and assumptions are affected by management’s application
of accounting policies. Critical accounting policies include revenue recognition and impairment of long-lived assets.
Revenue
Recognition
In
accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), revenues are recognized when control of the
promised goods or services is transferred to our clients, in an amount that reflects the consideration to which we expect to be entitled
in exchange for those goods and services. To achieve this core principle, we apply the following five steps: 1) Identify the contract
with a client; (2) Identify the performance obligations in the contract; (3) Determine the transaction price; (4) Allocate the transaction
price to performance obligations in the contract; and (5) Recognize revenues when or as the company satisfies a performance obligation.
We
adopted this ASC on January 1, 2021. Although the new revenue standard is expected to have an immaterial impact, if any, on our ongoing
net income, we did implement changes to our processes related to revenue recognition and the control activities within them.
Stock-Based
Compensation
We
account for employee and non-employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation—Stock
Compensation, which requires all share-based payments, including grants of stock options, to be recognized in the financial
statements based on their fair values. The fair value of the equity instrument is charged directly to compensation expense and
credited to additional paid-in capital over the period during which services are rendered.
Recent
Accounting Pronouncements
The
Company has implemented all new accounting pronouncements that are in effect and is evaluating any that may impact its financial statements,
including revenue recognition. The Company does not believe that there are any other new accounting pronouncements that have been
issued that might have a material impact on its financial position or results of operations.
Off-Balance
Sheet Arrangements
We
do not have any off-balance sheet arrangements.
ITEM
7A. Quantitative and Qualitative Disclosures About Market Risk.
Not
applicable.
ITEM
8. Financial Statements and Supplementary Data.
The
financial statements and related notes are included as part of this report as indexed in the appendix on page F-1, et seq.
ITEM
9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosures.
There
are no disagreements with the accountants on accounting and financial disclosures.
ITEM
9A. CONTROLS AND PROCEDURES.
Disclosure
Controls and Procedures
Under
the supervision and with the participation of our management, including the Chief Operating Officer (our principal executive officer)
and Chief Financial Officer (our principal financial officer), we have evaluated the effectiveness of the design and operation of our
disclosure controls and procedures, as such term is defined in Exchange Act Rules 13a-15(e) and 15d-15(e), as of the end of the period
covered by this report.
Evaluation
of Disclosure Controls and Procedures
We
conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures (“Disclosure
Controls”) as of the end of the period covered by this Form 10-K. The Disclosure Controls evaluation was conducted under the supervision
and with the participation of management, including our Chief Operating Officer and Chief Financial Officer. Disclosure Controls are
controls and procedures designed to reasonably assure that information required to be disclosed in our reports filed under the Exchange
Act, such as this Form 10-K, is recorded, processed, summarized and reported within the time periods specified in the U.S. Securities
and Exchange Commission’s rules and forms. Disclosure Controls are also designed to provide reasonable assurance that such information
is accumulated and communicated to our management, including our Chief Operating Officer and Chief Financial Officer, as appropriate
to allow timely decisions regarding required disclosure.
The
evaluation of our Disclosure Controls included a review of the controls’ objectives and design, our implementation of the controls
and the effect of the controls on the information generated for use in this Form 10-K. Throughout the course of our evaluation of our
internal control over financial reporting, we advised our Board of Directors that we had identified a material weakness as defined under
standards established by the Public Company Accounting Oversight Board (United States). A material weakness is a deficiency, or combination
of 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. The material weakness
we identified is discussed in “Internal Control Over Financial Reporting” below. Our Chief Operating Officer and Chief Financial
Officer have concluded that as a result of the material weakness, as of the end of the period covered by this Annual Report on Form 10-K,
our Disclosure Controls were not effective.
Internal
Control over Financial Reporting
Our
management is responsible for establishing 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 reliability of financial reporting and the preparation
of financial statements for external purposes, in accordance with generally accepted accounting principles. 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, including our principal operating officer and principal accounting officer, 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.
Based
on our evaluation, our management concluded that there is a material weakness in our internal control over financial reporting. The material
weakness identified did not result in the restatement of any previously reported financial statements or any related financial disclosure,
nor does management believe that it had any effect on the accuracy of the Company’s financial statements for the current reporting
period.
●
The Company has inadequate segregation of duties within its cash disbursement control design.
●
During the year ended December 31, 2022, the Company internally performed all aspects of its financial reporting process, including,
but not limited to the underlying accounting records and the recording of journal entries and for the preparation of financial statements.
This process was deficient, because these duties were performed often times by the same people, and therefore a lack of review was created
over the financial reporting process that might result in a failure to detect errors in spreadsheets, calculations, or assumptions used
to compile the financial statements and related disclosures as filed with the SEC. These control deficiencies could result in a material
misstatement to our interim or annual financial statements that would not be prevented or detected.
●
The Company is continuing the process of remediating its control deficiencies. However, the material weakness in internal control over
financial reporting that has been identified will not be remediated until numerous internal controls are implemented and operate for
a period of time, are tested, and the Company is able to conclude that such internal controls are operating effectively. The Company
cannot provide assurance that these procedures will be successful in identifying material errors that may exist in the financial statements.
The Company cannot make assurances that it will not identify additional material weaknesses in its internal control over financial reporting
in the future. Management plans, as capital becomes available to the Company, to increase the accounting and financial reporting staff
and provide future investments in the continuing education and public company accounting training of our accounting and financial professionals.
Our
internal control over financial reporting includes those policies and procedures that:
(i)
pertain to the maintenance of records, that in reasonable detail, accurately and fairly reflect the transactions and dispositions
of our assets;
(ii)
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance
with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with the authorization
of our management and directors, and;
(iii)
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that
could have a material effect on our financial statements.
Because
of its inherent limitations, 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 because of changes in conditions,
or that the degree of compliance with the policies or procedures may deteriorate.
Management,
including our Principal Executive Officer and Principal Financial Officer, assessed the effectiveness of our internal control over financial
reporting as of December 31, 2022. In making this assessment, management used the May 2013 updated criteria set forth by the Committee
of Sponsoring Organizations of the Treadway Commission (COSO) in Internal Control over Financial Reporting - Guidance for Smaller Public
Companies.
It
should be noted that any system of controls, however well designed and operated, can provide only reasonable, and not absolute, assurance
that the objectives of the system are met. In addition, the design of any control system is based in part upon certain assumptions about
the likelihood of future events. Because of these and other inherent limitations of control system, there can be no assurance that any
design will succeed in achieving its stated goals under all potential future conditions.
Because
of the material weakness described above, management concluded that, as of December 31, 2021 our internal control over financial reporting
was not effective based on the criteria established in Internal Control-Integrated Framework issued by COSO. There has been no change
in our internal controls that occurred during our most recent fiscal period that has materially affected, or is reasonably likely to
affect, our internal controls.
In
May 2013, the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) released an updated version of its
Internal Control - Integrated Framework (“2013 Framework”), Initially issued in 1992, the original framework (“1992 Framework”)
provided guidance to organizations to design, implement and evaluate the effectiveness of internal control concepts and simplify their
use and application. The 2013 Framework is intended to improve upon systems of internal control over external financial reporting by
formalizing the principles embedded in the 1992 Framework, incorporating business and operating environment changes and increasing the
framework ease of use and application. The 1992 Framework remained available until December 15, 2014, after which it was superseded by
the 2013 Framework. The Company did not experience significant changes to its internal control over financial reporting as a result of
the transition to the 2013 Framework.
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 was not subject to attestation by the Company’s registered public accounting
firm pursuant to rules of the SEC that permit smaller reporting companies like us to provide only management’s report in this annual
report.
This
report shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the
liabilities of that section, and is not incorporated by reference into any filing of the Company, whether made before or after the date
hereof, regardless of any general incorporation language in such filing.
No
changes have occurred in the Company’s internal controls over financial reporting during the Company’s last fiscal quarter,
which has materially affected or is likely to affect such controls.
PART
III
ITEM
10. Directors, Executive Officers and Corporate Governance.
The
following table provides information concerning our officers and directors. All directors hold office until the next annual meeting of
stockholders or until their successors have been elected and qualified.
|
|
|
|
|
NAME |
|
AGE |
|
POSITION |
Merle
Ferguson |
|
75 |
|
CEO/President/Chairman |
Richard
Kaiser |
|
58 |
|
CFO/Secreatary/Director |
BIOGRAPHY
Mr.
Ferguson became Chairman of the Board of the Company in January 2000, and since January 2014 he has been the sole officer / director
of the Company. Prior to that, he had no relationship with the Company. Mr. Ferguson attended Yakima Valley College from 1964-1966
with a major in forestry and a minor in Business Management. In April of 1966, he enlisted in the United States Marine Corps, serving
two tours in Vietnam, and was honorably discharged in 1970. From January 12, 2010 to March, 19, 2019, Mr. Ferguson served as Chairman,
Secretary, Treasurer and a majority shareholder of Predictive Technology Group, Inc., a company located in Salt Lake City, Utah. Predictive
Technology Group, Inc. is a biotech company involved in the manufacturing and marketing of products making stem cells and genetic therapeutics. Predictive
Technology Group, Inc.’s stock trades on the OTC Markets-Pink. From January 2009 to the present, Mr. Ferguson has served as Chairman,
President, CEO, CFO and majority owner of Element Global, Inc., located in Virginia Beach, Virginia. Element Global provides mining,
media and energy services. The stock of Element Global trades on the OTC Markets Pink, no information market. Beginning in May,
2014, Mr. Ferguson also became Chairman and President of Element Global. Mr. Ferguson became Chairman of the Board of the BioForce Nanosciences
Holdings, Inc. on July 8, 2013, and subsequently on December 1, 2016 he also became CEO and President of the BioForce Nanosciences Holdings,
Inc., a company which sells vitamin supplements and which is located in Virginia Beach, Virginia. He resigned as CEO and President of
Bioforce in November 2021, but remains BFNH’s Chairman. BFNH is a fully reporting entity with its stock trading on the OTC MARKET - Pink
under the symbol BFNH. Since November 2018, Mr. Ferguson served as President, Chairman and CEO of Bravo Multinational, Inc., located
in Virginia Beach, Virginia, which operates gaming machines in the casino industry. Bravo Multinational, Inc. is a stock that is traded
under symbol BRVO on OTC Markets. As of November 2018, Mr. Ferguson has also served as a Chairman and CEO of Bravo Multinational, Inc.,
a public company formed under the laws of Wyoming, with its headquarters located in Virginia Beach, VA. The Board reviewed Mr.Ferguson’s
background and considered him qualified for his position due to his educational background and his experience with SEC filings and public
companies.
Richard
Kaiser in August 2022 beacame a Director, CFO, Corporate Secretary and Corporate Governance Officer of Gold Rock Holdings, Inc.. He has
served as an officer and Co-Owner of Yes International since July, 1991. Yes International is a full-service EDGAR conversion filing
agent, investor relations and venture capital firm located in Virginia Beach, Virginia. From July 1, 2013 to the present, Mr. Kaiser
has also served as a Director, Secretary and CFO of BioForce NanoSciences Holdings, a public company formed under the laws of Nevada
with its headquarters located in Virginia Beach, Virginia. BioForce NanoSciences Holdings, Inc. is in the business private labeling vitamins
and nutritional supplements. BioForce NanoSciences Holdings, Inc. trades under the symbol BFNH on the OTC Markets. From April 1,
2015 to the present, Mr. Kaiser has also served as a Director, Secretary, and CFO of Bravo Multinational, Inc., a public company under
symbol BRVO on OTC Markets. Bravo Multinational Incoporated is formed under the laws of Wyoming with its headquarters located in Virginia
Beach, VA. Bravo is in the business of buying and selling casino gaming equipment. In 1990, Mr. Kaiser received a Bachelor of Arts
degree in International Economics from Oakland University (formerly known as Michigan State University-Honors College). The Board reviewed
Mr. Kaiser’s background and considered him qualified for his position due to his educational background and his experience with SEC filings
and public companies.
BOARD
OF DIRECTORS AND COMMITTEES
The
Board of Directors acts as the Audit Committee and the Board has no separate committees. The Company has no qualified financial expert,
because it has inadequate financial resources at this time to hire such an expert. The Company anticipates that a qualified financial
expert will be obtained when the Company’s financial position improves.
ITEM
11. Executive Compensation.
The
table below summarizes the compensation during the last two fiscal years received by our executive officers:
| |
| |
| |
| |
| |
| |
| |
| |
|
| | |
Name and Principal Position | |
Year | |
Salary | |
Bonus ($) | |
Stock Awards ($) | |
Option Awards ($) | |
Non-Equity Incentive Plan Compensation ($) | |
Nonqualified Deferred Compensation ($) | |
All Other Compensation ($) |
| Total ($) (1)(2) | |
Merle Ferguson President, CEO & Chairman | |
2021 2022 | |
$-0- $-0- | |
$-0- $-0- | |
$-0- $-0- | |
$-0- $-0- | |
$-0- $-0- | |
$-0- $-0- | |
$-0- $-0- |
| $-0-(2) $-0-(2) | |
Richard Kaiser CFO, Secretary & Director (3) | |
2021 2022 | |
$-0- $-0- | |
$-0- $-0- | |
$-0- $-0- | |
$-0- $-0- | |
$-0- $-0- | |
$-0- $-0- | |
$-0- $-0- |
| $-0- $-0-(3) | |
(1) |
Does
not include perquisites and other personal benefits, or property, unless the aggregate amount of such compensation is more than $10,000. |
(2) |
Mr.
Ferguson is owed $30,000 per terms of his contract for service rendered in 2021 and his owed $30,000 for sevice rendered in 2022.
Mr. Ferguson is to receive $350,000 in restrictred shares for repayment on working capital and service expenses paid on behalf of
the Company from 1998 to present; compensation has yet to be paid |
(3) |
Mr.
Kaiser became an Officer/Director in August 2022; no contract was established at that time for compensation. No officer/director
compensation earned in 2022. |
Employment
Agreements
The
Company has an employment contract with Mr. Ferguson for the period from January 01, 2017 until December 31, 2022 (See Exhibit 10.1).
There are no other compensation plans or arrangements which the Company has entered. Subsequently, On January 1, 2023, the Company entered
into a five-year employment contract with Mr. Ferguson starting January 01, 2023 until December 31, 2028, annual pay at $95,000 (See
Exhibit 10.3).
The
Company had no employment agreeement with Mr. Kaiser through December 31, 2022. Prior to becoming an officer/director Mr. Kaiser had
a consulting agreement with the Company. The agreement which is still active is with his Company YES International (See Exhibit 10.2).
Subsequently, the Company entered into an employment contract with Mr. Kaiser for his rolls as CFO/Secretary/ Director for a three (3)
year period from January 01, 2023 until December 31, 2026, annual pay at $75,000 (See Exhibit 10.4).
Stock
Options
The
Company had no stock options outstanding at December 31, 2022.
Board
of Directors Compensation
Mr.Ferguson,
CEO/President/Chairman is owed $30,000, yet to be paid, for his services as an Office/Director of the Company for the year ended December
31, 2022 and is owed $30,000 for his services for the year ended December 31, 2021.
Mr.
Kaiser, CFO/Secretary/Director became an Officer/Director in August 2022; no contract was established until January 1, 2023 for his services.
No officer/director compensation earned in 2022, and he was not and officer/director in 2021.
ITEM
12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
The
following table sets forth certain information regarding the beneficial ownership of our common stock as of December 31, 2022, by (i)
each person who is known by us to own beneficially more than 5% of our outstanding common stock; (ii) each of our officers and directors;
and (iii) all of our directors and officers as a group.
|
|
|
|
|
|
Name
and Address of Beneficial Owner |
|
Amount
of Common Stock Beneficially Owned |
|
Percentage
Ownership of Common stock (1) |
Merle
Ferguson(2)
1750
Barbara Lane
Encinitas,
CA 92024 |
|
46,407,241 |
|
53.05% |
|
|
|
|
|
Richard
Kaiser(3)
3491
Virginia Beach Blvd.
Virginia
Beach, VA 23452 |
|
5,003,710
|
|
5.72%
|
|
|
|
|
|
Susan
Donohue(4)
1193
N. Broken Hill Drive
Green
Valley, AZ 85614 |
|
5,726,138 |
|
6.55% |
|
|
|
|
|
|
All
Officers and Directors as a Group (2 person) |
|
51,410,951 |
|
58.77% |
(1) | | Applicable percentage
ownership is based on 87,482,208 shares outstanding as of February 11, 2023. There are no options, warrants, rights, conversion privilege
or similar right to acquire the common stock of the Company outstanding as of the date of this filing |
(2) | | Mr. Ferguson owns
directly 35,000,000 shares of common shares; he owns indirectly 3,750,000 common shares in his Ministry of Youth entity whole controlled
by Mr. Ferguson; he owns indirectly 3,256,805 common shares in CS&S a company controlled by Mr. Ferguson; he owns indirectly 3,000,926
common shares in Trade Exchange International, Inc., a company controlled by Mr. Ferguson; he owns indirectly 500,000 shares in Vegas
Fight Club, Inc., a company controlled by Mr. Ferguson; he owns indirectly 500,010 common shares in Legacy Land, Inc, a company controlled
by Mr. Ferguson; he owns indirectly 400,426 commons shares in SCS Enterprises, Inc. a company jointly owned with his x-wife. |
(3) | | Mr. Kaiser owns
directly 5,002,501 shares of common stock and he owns 1,209 shares beneficially through his Company, Yes International, LLC. Mr. Kaiser
became a officer/director in August 2022. |
(4) | | Ms. Donohue owns
her shares beneficially through her wholly owned company, TJJR Enterprises, Inc. |
RECENT
SALES OF UNREGISTERED SECURITIES.
2021
Unregistered Securities
In
April 2021, the Company issued 40,000,000 shares of restricted common stock in payment of certain relief of accounts payable, valued
at $137,000. These payables were related to accrued officer/director pay from 2016 to 2020 which was paid by the issuance of 35,000,000
shares were issued for payment of officer and director salaries and 5,000,000 shares were issued in repayment of certain accrued contract
services. No underwriter was involved with the sale and no commissions were paid in connection with such sale.
In
August 2021, the Company issued 133,047 shares to pay $3,100 to Carolyn Merrill, CPA for professional accounting services. The
shares value was based on the market price of the Company’s common stock of $0.023 on the measurement date.
In
December 2021, the Company issued 21,661 shares to pay $600 to Carolyn Merrill, CPA for professional accounting services. The shares
value was based on the market price of the Company’s common stock of $0.027 on the measurement date.
2022
Unregistered Securities
In
December 2021, the Company issued 100,000 shares to pay $1,000 to Carolyn Merrill, CPA for professional accounting services. The
shares value was based on the market price of the Company’s common stock of $0.01on the measurement date.
All
securities issuances described above are deemed “restricted securities” within the meaning of that term as defined in Rule
144 of the Securities Act and have been issued pursuant to the “private placement” exemption under Section 4(2) of the Securities
Act. Such transactions did not involve a public offering of securities. All purchasers in the private placement had access to information
on the Company necessary to make an informed investment decision. The Company has been informed that all purchasers were able to bear
the economic risk on investment in the Company and the new shareholders are aware that the securities were not registered under the Securities
Act, and cannot be re-offered or re-sold unless they are registered or are qualified for sale pursuant to an exemption from registration.
The transfer agent and registrar of the Company will be instructed to mark “stop transfer” on its ledger regarding these shares.
REPORTS
TO SECURITY HOLDERS
The
public may read and copy any materials the Company files with the SEC at the SEC’s Public Reference Room at 100 F Street, N.E., Room
1580, Washington, D.C. 20549. The public may obtain information on the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.
Additionally, the SEC maintains an internet site that contains reports, proxy and information statements, and other information regarding
issuers that file electronically with the SEC, which can be found at http://www.sec.gov.
ITEM
13. Certain Relationships and Related Transactions and Director Independence.
Mr.
Merle Ferguson, Chairman, CEO and President of the Company paid $37,965 in 2022 and he paid $45,959 in 2021 for Company expenses. On
December 31, 2022, the Board of Directors provided a new five-year contract to Mr. Ferguson starting January 1, 2023 unitl December 31,
2028 with annual pay at $95,000 (See Exhibit 10.3). Further, on December 31, 2022, the Board of Directors agreed to pay Mr. Ferguson
$350,000 in Rule 144 restricted shares for repayments from 1998 to present for working capital and other service expenses paid on behalf
of the Company.
On
August 26, 2022, Mr. Richard Kaiser was appointed by The Company’s Board of Directors as the CFO, Secretary and Director. On December
31, 2022, the Board of Directors approved a three-year employment contract from January 01, 2023 until December 31, 2026. Mr. Kaiser
is to receive $75,000 per year during the term of the contrac (See Exhibit 10.4).
Mr.
Richard Kaiser, CFO, Secretary and Director is the owner of YES International which has a consulting agreement with Gold Rock Holdings,
Inc. YES International is to receive $1000 per month for its services. As of December 31, 2022 the Company owes YES International $20,000
(See Exhibit 10.2).
Except
as otherwise indicated above, there have been no other related party transactions, or any other transactions or relationships required
to be disclosed pursuant to Item 404 of Regulation S-K.
ITEM
14. Principal Accounting Fees and Services.
Audit
Related Fees
The
aggregate fees billed by BF Borges CPA PC for audit and review services for financial statements for the year ended December 31, 2022
was $32,700 and for the year ended December 31, 2021was $25,280.
Tax
Fees
There
were no aggregate fees billed by BF Borges CPA PC for professional services rendered for tax services for the fiscal years ended December
31, 2022 and 2021.
All
Other Fees
There
were no other fees billed by BF Borges CPA PC for professional service rendered for the fiscal years ended December 31, 2022 and 2021,
other than as stated under the captions Audit Fees, Audit-Related Fees, and Tax Fees.
ITEM
15. Financial Statements and Exhibits.
Index
to Financial Statements F-1- F-9
(b)
Index to Exhibits.
101 | | Interactive XBRL
Instance Document (XBRL tags are embedded within the Inline XBRL document)+ |
SIGNATURES
In
accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this amended report
to be signed on its behalf by the undersigned, thereunto duly authorized.
GOLD
ROCK HOLDINGS, INC.
Date:
March 15, 2023
By/s/
Merle Ferguson
Merle
Ferguson, Chief Executive Officer, President, and Chairman
By/s/Richard
Kaiser
Richar
Kaiser, Chief Financial Officer, Secretary, and Director
Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, this amended report has been signed by the following persons
on behalf of the registrant and in the capacities and on the dates indicated.
|
|
|
|
|
Signature |
|
Title |
|
Date |
/s/
Merle Ferguson
Merle Ferguson |
|
Chairman,
Chief Executive Officer, and President |
|
March
15, 2023 |
|
|
|
|
|
/s/
Richard Kaiser
Richard Kaiser |
|
Chief
Financial Officer, Secretary and Director |
|
March
15, 2023 |
FINANCIAL
INFORMATION
GOLD
ROCK HOLDINGS, INC.
|
|
|
FINANCIAL
REPORTS |
AT |
DECEMBER
31, 2022 |
INDEX
TO FINANCIAL STATEMENTS
Report
of Independent Registered Public Accounting Firm (PCAOB ID 5041)
To
the shareholders and the board of directors of Gold Rock Holdings, Inc.
Opinion
on the Financial Statements
We
have audited the accompanying balance sheets of Gold Rock Holdings, Inc. as of December 31, 2022 and 2021, the related statements of
operations, stockholders’ equity (deficit), and cash flows for the years then ended, and the related notes (collectively referred to
as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial
position of the Company as of December 31, 2022 and 2021, 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.
Substantial
Doubt about the Company’s Ability to Continue as a Going Concern
The
accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note
4 to the financial statements, the Company has suffered recurring losses from operations and has a significant accumulated deficit. In
addition, the Company continues to experience negative cash flows from operations. These factors raise substantial doubt about the Company’s
ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 4. 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
financial statements based on our audit. 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 audit 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
audit 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 audit 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 audit provides
a reasonable basis for our opinion.
Critical
Audit Matter
Critical
audit matters are matters arising from the current-period audit of the financial statements that were communicated or required to be
communicated to the audit committee and that (1) relate to accounts or disclosures that are material to the financial statements and
(2) involved our especially challenging, subjective, or complex judgments.
We
determined that there are no critical audit matters.
/S/
BF Borgers CPA PC (PCAOB ID 5041)
We
have served as the Company’s auditor since 2021
Lakewood,
CO
March
13, 2023
Gold
Rock Holdings, Inc. |
|
CONDENSED
BALANCE SHEETS |
The
accompanying notes are an integral part of these condensed consolidated financial statements.
Gold
Rock Holdings, Inc. |
|
CONDENSED
STATEMENTS OF OPERATIONS |
The
accompanying notes are an integral part of these condensed consolidated financial statements.
Gold
Rock Holdings, Inc. |
|
CONDENSED
STATEMENTS OF CASH FLOWS |
The
accompanying notes are an integral part of these condensed consolidated financial statements.
Gold
Rock Holdings, Inc. |
|
CONDENSED
STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT |
| |
| | |
| | |
| | |
| | |
| |
| |
Common Stock | | |
Additional | | |
| | |
Total | |
| |
$0.001 Par | | |
Paid-In | | |
Accumulated | | |
Stockholders’ | |
For The Year Ended December 31, 2022 | |
Shares | | |
Amount | | |
Capital | | |
Deficit | | |
Deficit | |
| |
| | |
| | |
| | |
| | |
| |
Balance - January 1, 2022 | |
| 87,382,208 | | |
$ | 87,382 | | |
$ | 103,577 | | |
$ | (199,544 | ) | |
$ | (8,585 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Capital Contributions - Director | |
| - | | |
| - | | |
| 39,876 | | |
| - | | |
| 39,876 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Common Stock Issued for Professional Services | |
| 100,000 | | |
| 100 | | |
| 900 | | |
| - | | |
| 1,000 | |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Net Loss | |
| - | | |
| - | | |
| - | | |
| (434,182 | ) | |
| (434,182 | ) |
| |
| | | |
| | | |
| | | |
| | | |
| | |
Balance - December 31, 2022 | |
| 87,482,208 | | |
$ | 87,482 | | |
$ | 144,353 | | |
$ | (633,726 | ) | |
$ | (401,891 | ) |
The
accompanying notes are an integral part of these condensed consolidated financial statements.
GOLD
ROCK HOLDINGS, INC.
NOTES
TO CONDENSED UNAUDITED FINANCIAL STATEMENTS
NOTE
1 – Organization & Description of Business
The
Company was incorporated in the State of Nevada in February 1997 as Affordable Homes of America. In March 1999 we merged into Kowtow,
Inc. and changed our name to Affordable Homes of America, Inc. On October 12, 2000, we changed our name to World Homes, Inc. and
on August 23, 2001, we changed our name to Composite Industries of America, Inc. On September 02, 2004, the Company changed its name
to Gold Rock Holdings, Inc. On January 08, 2009, the Company did a name change to The Affordable Homes Group, Inc. On March 01, 2011,
the Company changed its name to Global Green Group, Inc. On January 09, 2015, the Company changed its name back to Gold Rock Holdings,
Inc., the current name of the Company. In 2019, Gold Rock Holdings, Inc. established itself as a provider of engineering and construction
management services producing site-plans, construction drawings, cost computations, fiber network designs, and other related construction
services. These services assist underground construction companies in laying high-speed fiber-optics and underground cable in areas of
the U.S.
NOTE
2 – Summary of Significant Accounting Policies
Basis
of Presentation
The
Company’s financial statements have been prepared and presented in conformity with accounting principles generally accepted in
the United States of America (“U.S. GAAP”).
Use
of Estimates
The
preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires
management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent
assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting
period. Actual results could differ from those estimates.
Cash
and Cash Equivalents
Cash
and cash equivalents may include time deposits, certificates of deposit, and all highly liquid debt instruments with original maturities
of three months or less. The Company maintains cash and cash equivalents at financial institutions located in the United States,
which periodically may exceed federally insured amounts.
Earnings
(Loss) per Share
Earnings
(loss) per share of common stock are computed in accordance with FASB ASC 260 “Earnings per Share”. Basic
earnings (loss) per share are computed by dividing income or loss available to common shareholders by the weighted-average number of
common shares outstanding for each period. Diluted earnings per share are calculated by adjusting the weighted average
number of shares outstanding assuming conversion of all potentially dilutive stock options, warrants and convertible securities, if
dilutive. Common stock equivalents that are anti-dilutive are excluded from both diluted weighted average number of common shares
outstanding and diluted earnings (loss) per share.
GOLD
ROCK HOLDINGS, INC.
NOTES
TO CONDENSED UNAUDITED FINANCIAL STATEMENTS
NOTE
2 – Summary of Significant Accounting Policies - continued
Stock-Based
Compensation
We
account for employee and non-employee stock-based compensation in accordance with the guidance of FASB ASC Topic 718, Compensation—Stock
Compensation, which requires all share-based payments, including grants of stock options, to be recognized in the financial
statements based on their fair values. The fair value of the equity instrument is charged directly to compensation expense and
credited to additional paid-in capital over the period during which services are rendered.
Fair
Value of Financial Instruments
The
estimated fair values for financial instruments are determined at discrete points in time based on relevant market information. These
estimates involve uncertainties and cannot be determined with precision. The carrying amounts of accounts payable and accrued liabilities
approximate fair value given their short-term nature or effective interest rates.
Revenue
Recognition
The
Company implemented ASC 606, Revenue from Contracts with Customers. These included the development of new policies based
on the five-step model provided in the new revenue standard, ongoing contract review requirements, and gathering of information provided
for disclosures.
The
Company recognizes revenue and cost of goods sold from product sales or services rendered when control of the promised goods are transferred
to our clients in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods and services.
To achieve this core principle, we apply the following five steps: identify the contract with the client, identify the performance
obligations in the contract, determine the transaction price, allocate the transaction price to performance obligations in the contract
and recognize revenues when or as the Company satisfies a performance obligation.
NOTE
3 – Recently Issued Accounting Standards
The
Company has implemented all new accounting pronouncements that are in effect and is evaluating any that may impact its financial statements,
including the new lease standard. The Company does not have any leases and does not believe that there are any other new accounting
pronouncements that have been issued that might have a material impact on its financial position or results of operations.
NOTE
4 – Going Concern
The
Company’s financial statements have been presented on the basis that it is a going concern, which contemplates the realization
of assets and the satisfaction of liabilities in the normal course of business. The Company has an accumulated deficit of $633,726 and
negative working capital of $401,891 at December 31, 2022, which, among other factors, raises substantial doubt about the Company’s
ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s
ability to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its
liabilities arising from normal business operations when they are due.
While
the Company is attempting to continue operations and generate revenues, the Company’s cash position may not be significant enough
to support the Company’s daily operations. Management believes that the actions presently being taken to further implement
the Company’s business plan; to expand sales with a dynamic marketing campaign and generate revenues provide the opportunity for
the Company to continue as a going concern. While the Company believes in the viability of its strategy to generate revenues and
in its ability to raise additional funds, there can be no assurances to that effect. The ability of the Company to continue as
a going concern is dependent upon the Company’s ability to further implement its business plan and generate revenues. During the
year ended December 31, 2022, due to lack of revenues the officers of the Company paid for all expenses through additional paid in capital
to the Company. This allowed the Company to continue as a going concern.
GOLD
ROCK HOLDINGS, INC.
NOTES
TO CONDENSED UNAUDITED FINANCIAL STATEMENTS
NOTE
5 – Related Party Transactions
During
the years ended December 31, 2022 and 2021, the two board of directors paid all expenses of the Company in the amount of $39,876 and
$45,959, respectively. The amount paid during the year ended December 31, 2022 and 2021 was not to be reimbursed therefore, additional
paid in capital was increased by $39,876 and $45,959, respectively for the years then ended.
The
Company has a consulting agreement with a majority shareholder/board of director. The agreement is for $1,000 monthly. Consulting
expense for each of the years ended December 31, 2022 and 2021 was $12,000 and is included in accounts payable in the amount of $21,000
and $9,000 at December 31, 2022 and December 31, 2021, respectively.
On
December 31, 2022 the Board of Directors agreed to pay a majority shareholder/board of director for providing working capital and other
services to the Company from 1998 to present. The agreement is for $350,000 and is included in consulting expense for each of the
year ended December 31, 2022 and is included in accounts payable in the amount of $350,000 at December 31, 2022.
The
Company had a 5 year compensation agreement with its Board Chairman beginning January 1, 2022 and ending on December 31, 2026. Compensation
is an annual fee of $30,000, due in the following month of January. Board of director compensation for each of the years ended
December 31, 2022 and 2021 was $30,000 and is included in accrued board of director compensation in the amount of $31,000 and $1,000
at December 31, 2022 and December 31, 2021, respectively. On December 31, 2022 this contract was terminated. A new compensation
agreement was signed beginning January 1, 2023 and ending on December 31, 2028.
NOTE
6 – Stock
Preferred
Stock
Preferred
stock consists of 50,000,000 shares authorized at $0.001 par value. Preferred stock are blank check and have no conversion, dividend
or voting rights. At December 31, 2022 and 2021 there were -0- preferred shares issued and outstanding.
Common
Stock
Common
stock consists of 850,000,000 shares authorized at $0.001 par value. At December 31, 2022 and December 31, 2021 there were 87,482,208
and 87,382,208 shares issued and outstanding, respectively.
During
the year ended December 31, 2021, the Company issued 30,588,235 shares to pay $90,000 of accrued board of director compensation and accrued
consulting of $14,000 that was included on the balance sheet at December 31, 2020. The shares value was based on the market price
of the Company’s common stock of $0.0034 on the measurement date.
During
the year ended December 31, 2021, the Company issued 9,411,765 shares to pay $32,000 of board of director compensation and consulting
services of $3,000 that was included in the statement of operations at December 31, 2021. The shares value was based on the market
price of the Company’s common stock of $0.0034 on the measurement date.
During
the year ended December 31, 2022, the Company issued 100,000 shares to pay $1,000 of professional services that was included in the statement
of operations at December 31, 2022. The shares value was based on the market price of the Company’s common stock of on the
measurement dates.
NOTE
7 – Risks and Uncertainties
Coronavirus
Impact (COVID-19)
Due
to the recent outbreak of the coronavirus reported in many countries worldwide, local and federal governments have issued travel advisories,
canceled large scale public events and closed schools. In addition, companies have begun to cancel conferences and travel plans and require
employees to work from home. Global financial markets have also experienced extreme volatility and disruptions to capital and credit
markets.
We
are unable to predict the impact of the coronavirus on our operations at this time. Adverse events such as health-related concerns about
working in our offices, the inability to travel, potential impact on our business partners and customers, and other matters affecting
the general work and business environment could harm our business and delay the implementation of our business strategy. The adverse
events may also adversely impact our ability to raise capital or to continue as a going concern. We continue to monitor the recent outbreak
of the coronavirus on our operations.
Gold Rock (PK) (USOTC:GRHI)
Gráfica de Acción Histórica
De Ago 2024 a Sep 2024
Gold Rock (PK) (USOTC:GRHI)
Gráfica de Acción Histórica
De Sep 2023 a Sep 2024