I must say, it takes a certain kind of flair to conceive and implement a plan to take a sole-founder company that is only 3 months old public for the purpose of raising $12K in seed funding while incurring $9,700.90 in out-of-pocket expenses in the process (see Item 13 for an itemization) - an IPO that will net a best-case of $2,300 for a stock for which the offering entity disclaims that any public trading market may ever develop!<p>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.<p>It must be quite a learning experience for the founder and that I assume is its sole point. Quite an amazing story.
Attempt at a summary from skimming it:<p>* He sells "custom-made beer pong tables and related products"<p>* No revenue to date<p>* 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))<p>* One of the risks he lists is "If we do not obtain additional financing, our business will fail."<p>* 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
Wow. That is, dare I say it, ballsy. I think this is destined to be an interesting anecdote for Mr. Richard later in life. I get the feeling the lawyer, Rory Vohwinkel, is a family friend who does this all the time (Las Vegas is ground zero for, er, <i>marginal</i> corporations).<p>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)?<p>Also, this guy's business approach is still far superior to that of the Bulletball guy.<p><a href="http://www.youtube.com/watch?v=WOOw2yWMSfk" rel="nofollow">http://www.youtube.com/watch?v=WOOw2yWMSfk</a>
Brilliant. I assumed Finance Major at UNLV but he seems more rodeo champ - <a href="http://www.myspace.com/turnumburnum" rel="nofollow">http://www.myspace.com/turnumburnum</a><p>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".<p>From such things, a business empire may be born.
Cool, so does this mean he can raise investment capital from non-accredited investors?<p>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?<p>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?
On a side note, does anyone know how bad it is for your name and reputation if the company has to go bankrupt and go through that process? Will he get gray listed for future incorporations, background checks and such?
The S1 may seem complicated, but if you've done 409A's and been audited you are very familiar with how these documents get lengthy on their own accord. Much of the language here is boilerplate that is then barely modified.
lol, the kid is doing it all wrong, he shouldn't need capital for anything. The tables should be made to order. All this will do is sink his business in inventory.