This reads like a parody of a typical public filing - every disclosure solemnly declares that the company has no assets, no experience, no prospects, and no future to speak of (other than what one might expect of a very young and very green founder who is 3 months into his first company). This is actually pretty funny - sort of like a po-faced guy intoning in mock seriousness about something he knows is wildly out of sync with reality but never letting on about it.
It must be quite a learning experience for the founder and that I assume is its sole point. Quite an amazing story.
By the way, the most priceless detail in the whole thing: SEC registration fee = $0.90 (Item 13).
Maximum the ipo can bring in is $12,500. As noted above, expenses incurred by the ipo: $9700.90
The answer is "it depends". Some folks will care while others won't. It's just like the color of his pants, his age, the school he went to, and so on.
Note that whether he can incorporate is a matter of law and bankruptcy doesn't affect it. (Being the subject of a consent decree related to securities fraud does, but lots of folks go bankrupt without that.)
Sarbox is about reporting, not size The simplicity of his biz helps him some but he's responsible to the public for everything.
* He sells "custom-made beer pong tables and related products"
* No revenue to date
* He owns 9.5M shares, and he's trying to sell 2.5M shares of new stock for a total of $12,500, which I think means a pre-money valuation of $47500 ($12,500 * (9.5/2.5))
* One of the risks he lists is "If we do not obtain additional financing, our business will fail."
* He plans to use the money to build tables that he can sell, including designing and building themed tables (such as a table with a college's mascot and such on it) and to build a good website
Check out the MySpace wall post from BrO4LiFe13 on 4 Feb (ie, just over two weeks before the company was created): "there is some ppl that want a beer pong table so if you want to make some money tell me".
From such things, a business empire may be born.
Specifically, he had his name and undergrad status at University of Nevada Las Vegas in the S1. That gave me his rodeo credentials; plus "beer pong" gave me the MySpace page which linked them together.
I filed my own C-corp in NY state (All the paperwork is boilerplate, there's just a $200 filing fee)... I wonder if SEC filing is reaching the same level of boilerplate where anyone can do it with standard forms?
If so, or if it's so easy a 19 year old beer pong enthusiast can do it, then why are there only about 8 or so IPO's per year?
You know, this is such a simple S-1 that it would be a great first example for someone who is learning about the process. This is practically a lemonade stand.
Although to be fair, I've lost just as much as money if not more in my teenage entrepreneurial journey.
ROTFL. Is this for real?
Interesting note - it's $12,500 for 20% of his company, a typical seed-level investment. I often wonder about the wild and woolly world of penny stocks, but never to invest in. Does anyone know what the downside is for this company if they have no better funding options (and I wouldn't be shocked to find out they didn't)?
Also, this guy's business approach is still far superior to that of the Bulletball guy.
