Dear
Stockholder:
|
Sincerely, | ||||
|
/s/
Sanjay
Sabnani
|
|||
|
Sanjay
Sabnani
Secretary
|
By Order of the Board of Directors, | ||||
|
/s/ Sanjay
Sabnani
|
|||
|
Sanjay
Sabnani
Secretary
|
•
|
FOR
the amendments to and restatement of our articles of
incorporation;
|
•
|
FOR
the election of the director
nominees;
|
•
|
FOR
the ratification of the selection of Mendoza Berger & Company, LLP as
our registered public accounting firm;
and
|
•
|
FOR
the ratification of the CrowdGather, Inc. 2008 Stock Option and Award
Plan.
|
•
|
submit
another properly signed proxy, which bears a later
date;
|
•
|
deliver
a written revocation to our corporate secretary;
or
|
•
|
attend
the annual meeting or any adjourned session thereof and vote in
person.
|
•
|
each
person or group known by us to beneficially own more than 5% of our
outstanding common stock;
|
•
|
each
director and nominee for director;
|
•
|
each
executive officer named in the Summary Compensation Table under the
heading “Executive Compensation” below;
and
|
•
|
all
of our current directors and nominees and executive officers of the
company as a group.
|
Title
of
Class
|
Name
and Address
Of
Beneficial Owner
|
Amount
and Nature
of
Beneficial Owner
|
Percent
of
Class (3)
|
Common
Stock
|
Sanjay
Sabnani
19069
Braemore Road
Northridge,
California 91326
|
22,110,550
shares (1)
CEO,
President, Secretary, CFO,
Treasurer
and Director
|
54.6%
|
Common
Stock
|
Typhoon
Capital Consultants, LLC (2)
19069
Braemore Road
Northridge,
California 91326
|
21,210,550
shares
|
52.4%
|
Common
Stock
|
Vinay
Holdings (4)
P.O.
Box 983 Victoria,
Mahe,
Republic of Seychelles
|
2,664,450
shares
Beneficial
Owner
|
6.58%
|
Common
Stock
|
Gaurav
Singh
c/o
20300 Ventura Blvd. Suite 330
Woodland
Hills, California 91364
|
200,000
shares held
Vice
President of
Operations
and Finance
|
0.5%
|
Common
Stock
|
Fernando
Munoz
c/o
20300 Ventura Blvd. Suite 330
Woodland
Hills, California 91364
|
No
shares held
Vice
President for Technology
|
0.0%
|
Common
Stock
|
Zoe
Myerson
c/o
20300 Ventura Blvd. Suite 330
Woodland
Hills, California 91364
|
No
shares held
Vice
President of
World-wide
Sales
|
0.0%
|
Common
Stock
|
Jonathan
R. Dariyanani
c/o
20300 Ventura Blvd. Suite 330
Woodland
Hills, California 91364
|
140,000
shares
Director
Nominee
|
0.3%
|
Common
Stock
|
James
A. Sacks
c/o
20300 Ventura Blvd. Suite 330
Woodland
Hills, California 91364
|
175,000
shares
Director
Nominee
|
0.4%
|
Common
Stock
|
All
directors and named executive
officers
as a group
|
22,625,550
shares
|
55.8%
(6)
|
(1)
|
Includes
those 21,210,550 shares, which are held by Typhoon Capital Consultants,
LLC, of which Sanjay Sabnani is the beneficial owner, and 900,000 shares
held by Sabnani Children Income Trust, of which Sanjay Sabnani may be
deemed to have beneficial ownership due to his spouse's role as sole
trustee for this trust. Sabnani disclaims beneficial ownership of those
900,000 shares, except as to his pecuniary interest
therein.
|
(2)
|
Sanjay
Sabnani holds voting and dispositive power over the shares of Typhoon
Capital Consultants, LLC.
|
(3)
|
Based
on 40,494,818 common shares issued and outstanding as of August 27,
2008.
|
(4)
|
Parshotam
Shambhunath Vaswani holds voting and dispositive power over the shares of
Vinay Holdings, Ltd.
|
(5)
|
Includes
shares held by Director Nominees
|
(6)
|
Percentages
may vary due to rounding
|
1.
|
Each
person who has been one of our directors or executive officers at any time
since the beginning of our last fiscal year;
|
|
2.
|
Each
nominee for election as one of our directors; or
|
|
3.
|
Any
affiliate or associate of any of the foregoing
persons.
|
Sanjay
Sabnani
Age: 38
Director
since 2008
|
Sanjay Sabnani. Sanjay
Sabnani was appointed as Chief Executive Officer, President, Chief
Financial Officer, Secretary, and Treasurer of WestCoast on April 2, 2008
and became our sole director shortly thereafter. Mr. Sabnani founded
General Mayhem, LLC in May 2004. While building General Mayhem, LLC’s
operations and network communities Mr. Sabnani has served senior executive
roles in several public companies including: EVP Strategic Development at
Hythiam, Inc. (NASDAQ:HYTM) from April 2004 to December 2007; and
President and Director at Venture Catalyst, Inc. (NASDAQ:VCAT), from July
1999 to November 2000, Mr. Sabnani assisted in raising over
$200 million in public equity financing for these companies, and served as
the chief strategist and communicator for these businesses during his
tenure with each. In addition, Mr. Sabnani has served as Chairman of the
Board of two distinguished non-profits: Artwallah (arts festival); and TiE
SoCal (venture capital networking).Mr. Sabnani was also the founder of
another California charity, EndDependence (scholarships for addiction
treatment).Mr. Sabnani received his BA in English Literature from UCLA in
1999. Mr. Sabnani is not an officer or director of any other
reporting company.
|
Jonathan
R. Dariyanani
Age:
38
Director
Nominee
|
Mr.
Dariyanani has been the principal of Zoma Law Group/Zoma Ventures in New
York since 1999. From 2003 to 2004, Mr. Dariyanani also served
as the director of ESL for Leapfrog Enterprises, Inc. From 1997
to 1999, he was an associate attorney at the Palo Alto, California office
of Wilson Sonsini Goodrich and Rosati. Mr. Dariyanani is
licensed to practice law in California. Mr. Dariyanani holds a Juris
Doctor from Duke University, earned in 1997, and a bachelor’s degree in
legal studies from the University of California at Berkeley, which he
earned in 1993. Mr. Dariyanani is not an officer or director of
any other reporting company.
|
James
A. Sacks
Age:
43
Director
Nominee
|
Mr.
Sacks founded JAS Holdings in 2001, which provides contract sales services
for medical business process outsourcing providers. From 1995 to 2000, Mr.
Sacks was a registered securities principal for Joseph Charles &
Associates. From 2000 to 2001, he served as a principal and the
corporate secretary for Metropolitan Capital Partners. In 2002, he
also served as a registered securities principal for West Park Capital.
Mr. Sacks is not an officer or director of any other reporting
company.
.
|
·
|
deemed
issuance date;
|
·
|
expiration
date;
|
·
|
number
of shares covered by the award;
|
·
|
acceptable
means of payment;
|
·
|
price
per share payable upon exercise;
|
·
|
applicable
vesting schedule;
|
·
|
individual
performance criteria;
|
·
|
company
or group performance criteria;
|
·
|
continued
employment requirement;
|
·
|
transfer
restrictions; or
|
·
|
any
other terms or conditions deemed appropriate by the Committee, in each
case not inconsistent with the 2008
Plan.
|
·
|
required
or advisable in order for us, the Plan or the award to satisfy any law or
regulation or to meet the requirements of any accounting standard,
or
|
·
|
not
reasonably likely to significantly diminish the benefits provided under
such award, or that any such diminishment has been adequately
compensated.
|
Plan
category
|
Number
of securities to be
issued
upon exercise of
outstanding
options,
warrants
and rights (a)
|
Weighted-average
exercise
price
of outstanding
options,
warrants and
rights(b)
|
Number
of securities
remaining
available for
future
issuance under
equity
compensation
(excluding
securities
reflected
in column (a))
|
Equity
compensation plans
approved
by security holders
|
n/a
|
n/a
|
n/a
|
Equity
compensation plans not approved by security holders
|
n/a
|
n/a
|
n/a
|
Total
|
n/a
|
n/a
|
n/a
|
Name
and Principal Position
|
Year
Ended
|
Salary
$
|
Bonus
$
|
Stock
Awards
$
|
Option
Awards
$
|
Non-Equity
Incentive
Plan Compensation
$
|
Nonqualified
Deferred
Compensation
Earnings
$
|
All
Other
Compensation
$
|
Total
$
|
Sanjay
Sabnani President, Secretary, CFO
|
2008
|
13,846
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Suzanne
Fischer, Former Officer
|
2008
|
0
|
0
|
0
|
0
|
0
|
0
|
50,000(1)
|
0
|
Roger
Arnet, Former Officer
|
2008
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
2007
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Tyler
Halls, Former Officer
|
2008
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
2007
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
1.
|
Sanjay
Sabnani will receive an annual salary of $180,000.
|
2.
|
Gaurav
Singh will receive an annual salary of $140,000.
|
3.
|
Fernando
Munoz will receive an annual salary of $145,000.
|
4.
|
Zoe
Myerson will receive an annual salary of
$160,000.
|
1.
|
If
terminated without Good Cause (as defined below), Gaurav Singh is entitled
to one month of severance pay equal to one month of his base salary during
the first six months of employment and severance pay equal to three months
of his base salary if terminated after six months of
employment.
|
2.
|
If
terminated without Good Cause, Fernando Munoz is entitled to one month of
severance pay equal to one month of his base salary during the first six
months of employment and severance pay equal to three months of his base
salary if terminated after six months of
employment.
|
3.
|
If
terminated without Good Cause, Zoe Myerson is entitled to one month of
severance pay equal to one month of her base salary during the first six
months of employment, severance pay equal to three months of her base
salary if terminated after six months of employment and severance pay
equal to six months of her base salary if terminated after twelve months
of employment.
|
1.
|
Commit
and act of fraud, moral turpitude, misappropriation of funds or
embezzlement;
|
2.
|
Breach
his/her fiduciary duty to the Company, including, but not limited to, acts
of self-dealing (whether or not for personal
profit);
|
3.
|
Materially
breach this agreement , the Confidentiality Agreement, or the Company’s
written Codes of Ethics as adopted by the Board of
Directors;
|
4.
|
Willful,
reckless or grossly negligent violation of any applicable state or federal
law or regulation; or
|
5.
|
Fail
to or refuse (whether willful, reckless or negligent) to substantially
perform the responsibilities and duties specified herein (other than a
failure caused by temporary disability); provided, however, that no
termination shall occur on that basis unless the Company first provides
his/her with written notice to cure; the notice to cure shall reasonably
specify the acts or omissions that constitute his/her failure or refusal
to perform his/her duties, and he/she shall have reasonable opportunity
(not to exceed 10 days after the date of notice to cure) to correct
his/her failure or refusal to perform his/her duties; termination shall be
effective as of the date of written notice to
cure.
|
Option Awards
|
Stock
Awards
|
||||||||
Name
|
Number
of
Securities
Underlying Unexercised
Options
#
Exercisable
|
#
Un
exercisable
|
Equity
Incentive
Plan
Awards: Number of
Securities
Underlying Unexercised
Options
|
Option
Exercise
Price
|
Option
Expiration
Date
|
Number
of
Shares
or
Units
of
Stock
Not
Vested
|
Market
Value
of
Shares
or Units Not
Vested
|
Equity
Incentive Plan Awards: Number of Unearned
Shares,
Units
or
Other
Rights
Not
Nested
|
Value
of Unearned Shares, Units
or
Other
Rights
Not Vested
|
Sanjay
Sabnani President, Secretary, CFO, Principal Accounting
Officer
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Suzanne
Fischer, former officer
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Roger
Arnet, former officer
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Tyler
Halls, former officer
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Name
|
Fees
Earned
or
Paid
in
Cash
|
Stock
Awards
$
|
Option
Awards
$
|
Non-Equity
Incentive
Plan Compensation
$
|
Non-Qualified
Deferred
Compensation
Earnings
$
|
All
Other
Compensation
$
|
Total
$
|
Sanjay
Sabnani, director
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Suzanne
Fischer, former director
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Roger
Arnet, former director
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Tyler
Halls, former director
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Name
|
Fees
Earned
or
Paid
in
Cash
|
Stock
Awards
$
|
Option
Awards
$
|
Non-Equity
Incentive
Plan Compensation
$
|
Non-Qualified
Deferred
Compensation
Earnings
$
|
All
Other
Compensation
$
|
Total
$
|
Sanjay
Sabnani, director
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Suzanne
Fischer, former director
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Roger
Arnet, former director
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Tyler
Halls, former director
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
·
|
disclose
such transactions in prospectuses where required;
|
·
|
disclose
in any and all filings with the Securities and Exchange Commission, where
required;
|
·
|
obtain
disinterested directors consent; and
|
·
|
obtain
shareholder consent where required.
|
By the Board of Directors: | ||||
|
/s/ Sanjay
Sabnani
|
|||
|
Sanjay
Sabnani, Sole Director
|
Fee
Category
|
FY
2008
|
FY
2007
|
||||||
Audit
Fees
|
$ | 28,141 | $ | 7,900 | ||||
Audit-Related
Fees
|
— | — | ||||||
Tax
Fees
|
$ | 1,575 | — | |||||
All
Other Fees
|
— | — | ||||||
Total
Fees
|
$ | 29,616 | $ | 7,900 |
By Order of the Board of Directors, | ||||
|
/s/ Sanjay
Sabnani
|
|||
|
Sanjay
Sabnani
Chairman
|
(1) |
Election
of directors:
|
|||||
¨ | FOR
ALL NOMINEES LISTED BELOW
(except
as marked to the contrary below)
|
¨ | WITHHOLD
AUTHORITY TO VOTE FOR
ALL
NOMINEES LISTED BELOW
|
|||
INSTRUCTION:
To withhold authority to vote for any individual nominees, strike a line
through the nominee’s name in the list below.
|
||||||
Sanjay Sabnani | Jonathan R. Dariyanani | James A. Sacks | ||||
(2) |
Proposal
to amend the articles of incorporation to authorize a class of preferred
stock and restate the articles of incorporation to include provisions
allowing indemnification of our officers and directors.
|
|||||
¨
|
FOR |
¨
|
AGAINST |
¨
|
ABSTAIN | |
(3) |
Proposal
to ratify the appointment of Mendoza Berger & Company, LLP as the
Company's independent certifying accountants.
|
|||||
¨
|
FOR | ¨ | AGAINST | ¨ | ABSTAIN | |
(4) | Proposal to ratify the CrowdGather, Inc. 2008 Stock Option and Award Plan. | |||||
¨ | FOR | ¨ | AGAINST | ¨ | ABSTAIN | |
(5) |
In
their discretion, the proxies are authorized to vote upon such other
matters as may properly come before the meeting.
|
|||||
¨ | GRANT AUTHORITY | ¨ | WITHHOLD AUTHORITY |
Please sign exactly as your name appears hereon. When shares are held by joint tenants, both should sign. When signing as an attorney, executor, administrator, trustee, guardian, or corporate officer, please indicate the capacity in which signing. |
Nevada
|
77-0517966
|
|||
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
|||
20300
Ventura Blvd. Suite 330, Woodland Hills, California
|
91364
|
|||
(Address
of principal executive offices)
|
(Zip
Code)
|
|||
(818)
435-2472
|
||||
(Registrant's
Telephone Number, Including Area Code)
|
||||
Securities
registered under Section 12(b) of the Act:
|
||||
Title
of each class registered:
|
Name of each
exchange on which registered:
|
|||
None
|
None
|
|||
Securities
registered under Section 12(g) of the Act:
|
||||
Common
Stock, Par Value $.001
(Title
of Class)
|
|
||||
PAGE
|
||||
PART I | ||||
Item
1.
|
Business
|
1
|
||
Item
2.
|
Description
of Property
|
13 | ||
Item
3.
|
Legal
Proceedings
|
13 | ||
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
13 | ||
PART II | ||||
Item
5.
|
Market
for Common Stock and Related Stockholder Matters
|
14 | ||
Item
6.
|
Plan
of Operations
|
18 | ||
PART III | ||||
Item
7.
|
Financial
Statements
|
20 | ||
Item
8.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
37 | ||
Item
8A.
|
Controls
and Procedures
|
37 | ||
Item
8A(T)
|
Controls
and Procedures
|
37 | ||
Item
8B.
|
Other
Information
|
38 | ||
Item
9.
|
Directors,
Executive Officers, Promoters and Control Persons
|
39 | ||
Item
10.
|
Executive
Compensation
|
40 | ||
Item
11.
|
Security
Ownership of Certain Beneficial Owners and Management
|
43 | ||
Item
12.
|
Certain
Transactions and Related Transactions
|
44 | ||
PART IV | ||||
Item
13.
|
Exhibits
|
45 | ||
Item
14.
|
Principal
Accounting Fees and Services
|
45 |
Forum
Name
|
Target
Community/Discussion Topic
|
ZuneBoards.com
|
Microsoft
Zune Community
|
Ngemu.com
|
Software
emulators
|
ABXZone.com
|
Computer
help
|
GenMay.com
|
Off-topic
and humor
|
MotorcycleForum.com
|
Motorcycles
and Scooters
|
AquaticPlantCentral.com
|
Aquascapes
|
IronMass.com
|
Bodybuilding
|
Tech-gfx.net
|
Graphic
design
|
VistaBabble.com
|
Microsoft
Vista discussion
|
Fashion-Forums.com
|
Fashion
|
DemocracyForums.com
|
Politics
|
Eternal-Allegiance.com
|
Celebrities
and their fans
|
FoodForums.com
|
Food
and dining
|
ActorsForum.com
|
Acting
and theater arts
|
Pocketbikeplanet.com | Mini-bike owner society |
Clubxb.com | Scion xB owner community |
·
|
rapidly
changing technology;
|
·
|
evolving
industry standards and practices that could render our website and
proprietary technology obsolete;
|
·
|
changes
in consumer tastes and user
demands;
|
·
|
challenges,
such as “click fraud,” that cast doubt on otherwise legitimate activities
and practices; and
|
·
|
frequent
introductions of new services or products that embody new
technologies.
|
·
|
establishing
and maintaining our user base;
|
·
|
establishing
and maintaining our popularity as an Internet destination
site;
|
·
|
broadening
our relationships with advertisers to small-and medium-sized
businesses;
|
·
|
attracting
advertisers to our user base;
|
·
|
increasing
demand for our services by advertisers, users, businesses and affiliates,
including prices paid by advertisers, the number of searches performed by
users, the rate at which users click-through to commercial search results
and advertiser perception of the quality of leads generated by our
forums;
|
·
|
the
successful implementation and acceptance of our advertising exchange by
advertisers, networks, affiliates, and publishers;
|
·
|
the
successful development and deployment of technology improvements to our
advertising platform;
|
·
|
establishing
and maintaining our affiliate program for our search
marketing;
|
·
|
deriving
better demographic and other information from our
users; and
|
·
|
driving
acceptance of the Web in general and of our site in particular by
advertisers as an advertising
medium.
|
·
|
access
to the capital markets of the United
States;
|
·
|
the
increased market liquidity expected to result from the
Merger;
|
·
|
the
ability to use registered securities to make acquisition of assets or
businesses;
|
·
|
increased
visibility in the financial
community;
|
·
|
enhanced
access to the capital markets;
|
·
|
improved
transparency of operations; and
|
·
|
perceived
credibility and enhanced corporate image of being a publicly traded
company.
|
·
|
variations
in our operating results;
|
·
|
changes
in expectations of our future financial performance, including financial
estimates by securities analysts and
investors;
|
·
|
changes
in operating and stock price performance of other companies in our
industry;
|
·
|
additions
or departures of key personnel; and
|
·
|
future
sales of our common stock.
|
High
($)
|
Low
($)
|
|||||||
Fiscal
Year 2009
|
||||||||
First Quarter
(1)
|
2.10
|
1.00
|
·
|
deemed
issuance date;
|
·
|
expiration
date;
|
·
|
number
of shares covered by the award;
|
·
|
acceptable
means of payment;
|
·
|
price
per share payable upon exercise
|
·
|
applicable
vesting schedule;
|
·
|
individual
performance criteria;
|
·
|
company or group performance criteria; |
· | continued employment requirement; |
· | transfer restrictions; or |
· | any other terms or conditions deemed appropriate by the Committee, in each case not inconsistent with the 2008 Plan. |
·
|
required or advisable in order for us, the Plan or the award to satisfy any law or regulation or to meet the requirements of any accounting standard, or |
· | not reasonably likely to significantly diminish the benefits provided under such award, or that any such diminishment has been adequately compensated. |
·
|
a
description of the nature and level of risk in the market for penny stocks
in both public offerings and secondary
trading;
|
·
|
a
description of the broker’s or dealer’s duties to the customer and of the
rights and remedies available to the customer with respect to violation to
such duties or other requirements of securities’
laws;
|
·
|
a
brief, clear, narrative description of a dealer market, including "bid"
and "ask” prices for penny stocks and the significance of the spread
between the "bid" and "ask" price;
|
·
|
a
toll-free telephone number for inquiries on disciplinary
actions;
|
·
|
definitions
of significant terms in the disclosure document or in the conduct
of trading in penny stocks;
and
|
·
|
such
other information and is in such form (including language, type, size and
format), as the Securities and Exchange Commission shall require by rule
or regulation.
|
·
|
the
bid and offer quotations for the penny
stock;
|
·
|
the
compensation of the broker-dealer and its salesperson in the
transaction;
|
·
|
the
number of shares to which such bid and ask prices apply, or other
comparable information relating to the depth and liquidity of the market
for such stock; and
|
·
|
monthly
account statements showing the market value of each penny stock held in
the customer’s account.
|
|
||
Page
|
||
Report
of Independent Registered Public Accounting Firm
|
23
|
|
Balance
Sheets
|
24
|
|
Statements
of Operations
|
25
|
|
Statement
of Changes in Stockholders’ Equity
|
26
|
|
Statements
of Cash Flows
|
27
|
|
Notes
to Financial Statements
|
28
|
/s/
Mendoza Berger & Company, LLP
|
|
|||
Irvine,
California
July 18, 2008
|
|
2008
|
2007
|
|||||||
Current
assets:
|
||||||||
Cash
|
$ | 295,934 | $ | 1,127 | ||||
Prepaid
expenses
|
10,950 | - | ||||||
Total
current assets
|
306,884 | 1,127 | ||||||
Property and equipment, net of accumulated | ||||||||
depreciation
of $6,025 and $4,101, respectively
|
18,434 | 1,099 | ||||||
Intangible
assets
|
107,321 | 100 | ||||||
Deposit in escrow | 75,334 | - | ||||||
Security
deposit
|
11,000 | - | ||||||
Total
assets
|
$ | 518,973 | $ | 2,326 |
2008
|
2007
|
|||||||
Current
liabilities:
|
||||||||
Accounts
payable and accrued expenses
|
$ | 36,022 | $ | - | ||||
Income
taxes payable
|
800 | - | ||||||
Total
current liabilities
|
36,822 | - | ||||||
Stockholders’
equity:
|
||||||||
Common stock, $0.001 par value, 975,000,000 shares | ||||||||
authorized,
40,056,818 and 39,000,000 issued and
|
||||||||
outstanding,
respectively
|
40,057 | 39,000 | ||||||
Additional
paid-in capital
|
888,943 | - | ||||||
Accumulated
deficit
|
(446,849 | ) | (36,674 | ) | ||||
Total
stockholders’ equity
|
482,151 | 2,326 | ||||||
Total
liabilities and stockholder’s equity
|
$ | 518,973 | $ | 2,326 |
2008
|
2007
|
|||||||
Revenue
|
$ | 20,763 | $ | 17,887 | ||||
Operating
expenses
|
(430,730 | ) | (18,592 | ) | ||||
Loss
from operations
|
(410,767 | ) | (705 | ) | ||||
Other income | 1,392 | 30 | ||||||
Loss before provision for income taxes | (409,375 | ) | (675 | ) | ||||
Provision for income taxes | 800 | 800 | ||||||
Net
loss
|
$ | (410,175 | ) | $ | (1,475 | ) | ||
Weighted
average shares outstanding- basic and diluted
|
39,063,699 | 39,000,000 | ||||||
Net
loss per share – basic and diluted
|
$ | (0.01 | ) | $ | - |
|
||||||||||||||||||||
Common Stock | Paid-in | Accumulated | ||||||||||||||||||
Shares
|
Amount
|
Capital
|
Deficit
|
Total
|
||||||||||||||||
Balance,
April 30, 2006 (13:1 stock split retroactively restated)
|
39,000,000 | $ | 39,000 | $ | - | $ | (35,199 | ) | $ | 3,801 | ||||||||||
Net
(loss) for the year ended April 30, 2007
|
- | - | - | (1,475 | ) | (1,475 | ) | |||||||||||||
Balance,
April 30, 2007
|
39,000,000 | 39,000 | - | (36,674 | ) | 2,326 | ||||||||||||||
Shares
issued for cash
|
1,000,000 | 1,000 | 889,000 | - | 890,000 | |||||||||||||||
Shares
issued for merger
|
26,000,000 | 26,000 | (26,000 | ) | - | - | ||||||||||||||
Shares
cancelled at merger
|
(25,943,182 | ) | (25,943 | ) | 25,943 | - | - | |||||||||||||
Net
(loss) for the year ended April 30, 2008
|
- | - | - | (410,175 | ) | (410,175 | ) | |||||||||||||
Balance,
April 30, 2008
|
40,056,818 | $ | 40,057 | $ | 888,943 | $ | (446,849 | ) | $ | 482,151 |
2008
|
2007
|
|||||||
Cash
flows from operating activities:
|
||||||||
Net
loss
|
$ | (410,175 | ) | $ | (1,475 | ) | ||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||
Depreciation
|
2,168 | 1,737 | ||||||
Changes
in operating assets and liabilities:
|
||||||||
Prepaid
expenses
|
(10,950 | ) | - | |||||
Security
deposits
|
(11,000 | ) | - | |||||
Accounts
payable and accrued expenses
|
34,894 | - | ||||||
Income
taxes payable
|
800 | - | ||||||
Net
cash used in operating activities
|
(394,263 | ) | 262 | |||||
Cash flows from investing activities: | ||||||||
Purchase
of property and equipment
|
(19,260 | ) | - | |||||
Purchase
of intangible assets
|
|
(107,221 | ) | - | ||||
Deposit
in escrow
|
(75,334 | ) | ||||||
Net
cash used in investing activities
|
(201,815 | ) | - | |||||
Cash flows from financing activities: | ||||||||
Proceeds
from related party notes
|
312,890 | - | ||||||
Payments
on related party notes
|
(312,890 | ) | (1,600 | ) | ||||
Proceeds
from the sale of common stock
|
890,000 | - | ||||||
Net
cash provided by (used in) financing activities
|
890,000 | (1,600 | ) | |||||
Net increase (decrease) in cash | 293,922 | (1,338 | ) | |||||
Cash,
beginning of year
|
1,127 | 2,465 | ||||||
Cash,
end of year
|
$ | 295,934 | $ | 1,127 |
1.
|
NATURE OF OPERATIONS
AND SUMMARY OF SIGNIFICANT ACCOUNTING
POLICIES
|
|
Nature of
Operations
|
|
Use of
Estimates
|
|
The
preparation of financial statements in conformity with accounting
principles generally accepted 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 reported
periods. Actual results could materially differ from those
estimates.
|
1.
|
NATURE OF OPERATIONS
AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
|
|
Cash
Equivalents
|
|
For
purposes of the balance sheet and statement of cash flows, the Company
considers all highly liquid instruments purchased with maturity of three
months or less to be cash
equivalents.
|
|
Fair Value of
Financial Instruments
|
|
Pursuant
to Statement of Financial Accounting Standards (SFAS) No. 107, “Disclosures About Fair Value
of Financial Instruments”, the Company is required to estimate the
fair value of all financial instruments included on its balance
sheet. The carrying value of cash and equivalents prepaid
expense, accounts payable and accrued expenses approximate their fair
value due to the short period to maturity of these
instruments.
|
1.
|
NATURE
OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
|
1.
|
NATURE
OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
|
1.
|
NATURE
OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(Continued)
|
2.
|
GOING
CONCERN
|
2008
|
2007
|
|||||||
Federal net operating loss (@ 34% and 15% respectively) | $ | 139,500 | $ | 5,500 | ||||
State net operating loss (@ 8.84%) | 36,250 | 3,250 | ||||||
Less: valuation allowance | (175,750 | ) | (8,750 | ) | ||||
Minimum state franchise tax | 800 | 800 | ||||||
$ | 800 | $ | 800 |
·
|
pertain
to the maintenance of records that in reasonable detail accurately and
fairly reflect the transactions and dispositions of our
assets;
|
·
|
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 authorizations of management and our
directors; and
|
·
|
provide
reasonable assurance regarding prevention or timely detection of
unauthorized acquisition, use or disposition of our assets that could have
a material effect on the financial
statements.
|
·
|
lack
of proper segregation of functions, duties and responsibilities with
respect to our cash and control over the disbursements related thereto due
to our very limited staff, including our accounting
personnel.
|
Name
|
Age
|
Position
|
Sanjay
Sabnani
|
38
|
CEO,
President, Secretary, Chief Financial Officer, Treasurer and
Director
|
Gaurav
Singh
|
31
|
Vice
President for Operations and Finance
|
Fernando
Munoz
|
49
|
Vice
President for Technology
|
Zoe
Myerson
|
55
|
Vice
President of World-wide Sales
|
Name
and Principal Position
|
Year
Ended
|
Salary
$
|
Bonus
$
|
Stock
Awards
$
|
Option
Awards
$
|
Non-Equity
Incentive
Plan Compensation
$
|
Nonqualified
Deferred
Compensation
Earnings
$
|
All
Other
ompensation
$
|
Total
$
|
Sanjay
Sabnani President, Secretary, CFO
|
2008
|
13,846
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Suzanne
Fischer, Former Officer
|
2008
|
0
|
0
|
0
|
0
|
0
|
0
|
50,000(1)
|
0
|
Roger
Arnet, Former Officer
|
2008
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
2007
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
|
Tyler
Halls, Former Officer
|
2008
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
2007
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
1.
|
Sanjay
Sabnani will receive an annual salary of
$180,000.
|
2.
|
Gaurav
Singh will receive an annual salary of
$140,000.
|
3.
|
Fernando
Munoz will receive an annual salary of
$145,000.
|
4.
|
Zoe
Myerson will receive an annual salary of
$160,000.
|
1.
|
If
terminated without Good Cause (as defined below), Gaurav Singh is entitled
to one month of severance pay equal to one month of his base salary during
the first six months of employment and severance pay equal to three months
of his base salary if terminated after six months of
employment.
|
2.
|
If
terminated without Good Cause, Fernando Munoz is entitled to one month of
severance pay equal to one month of his base salary during the first six
months of employment and severance pay equal to three months of his base
salary if terminated after six months of
employment.
|
3.
|
If
terminated without Good Cause, Zoe Myerson is entitled to one month of
severance pay equal to one month of her base salary during the first six
months of employment, severance pay equal to three months of her base
salary if terminated after six months of employment and severance pay
equal to six months of her base salary if terminated after twelve months
of employment.
|
1.
|
Commit
and act of fraud, moral turpitude, misappropriation of funds or
embezzlement;
|
2.
|
Breach
his/her fiduciary duty to the Company, including, but not limited to, acts
of self-dealing (whether or not for personal
profit);
|
3.
|
Materially
breach this agreement , the Confidentiality Agreement, or the Company’s
written Codes of Ethics as adopted by the Board of
Directors;
|
4.
|
Willful,
reckless or grossly negligent violation of any applicable state or federal
law or regulation; or
|
5.
|
Fail
to or refuse (whether willful, reckless or negligent) to substantially
perform the responsibilities and duties specified herein (other than a
failure caused by temporary disability); provided, however, that no
termination shall occur on that basis unless the Company first provides
his/her with written notice to cure; the notice to cure shall reasonably
specify the acts or omissions that constitute his/her failure or refusal
to perform his/her duties, and he/she shall have reasonable opportunity
(not to exceed 10 days after the date of notice to cure) to correct
his/her failure or refusal to perform his/her duties; termination shall be
effective as of the date of written notice to
cure.
|
Option Awards
|
Stock
Awards
|
||||||||
Name
|
Number
of Securities Underlying Unexercised Options
#
Exercisable
|
#
Un-exercisable
|
Equity
Incentive Plan Awards: Number of Securities Underlying Unexercised
Options
|
Option
Exercise
Price
|
Option
Expiration
Date
|
Number
of
Shares
or
Units
of
Stock
Not
Vested
|
Market
Value
of
Shares
or Units Not
Vested
|
Equity
Incentive Plan Awards: Number of Unearned
Shares,
Units
or
Other
Rights
Not
Nested
|
Value
of Unearned Shares, Units
or
Other
Rights
Not Vested
|
Sanjay
Sabnani President, Secretary, CFO, Principal Accounting
Officer
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Suzanne
Fischer, former officer
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Roger
Arnet, former officer
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Tyler
Halls, former officer
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Name
|
Fees
Earned
or
Paid
in
Cash
|
Stock
Awards
$
|
Option
Awards
$
|
Non-Equity
Incentive
Plan Compensation
$
|
Non-Qualified
Deferred
Compensation
Earnings
$
|
All
Other
Compensation
$
|
Total
$
|
Sanjay
Sabnani, director
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Suzanne
Fischer, former director
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Roger
Arnet, former director
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Tyler
Halls, former director
|
0
|
0
|
0
|
0
|
0
|
0
|
0
|
Title
of
Class
|
Name
and Address
of
Beneficial
Owner
|
Amount
and Nature
of
Beneficial Owner
|
Percent
of
Class (3)
|
Common
Stock
|
Sanjay
Sabnani
19069
Braemore Road
Northridge,
California 91326
|
22,110,550
shares (1)
CEO,
President, Secretary, CFO,
Treasurer
and director
|
54.6%
|
Common
Stock
|
Typhoon
Capital Consultants, LLC (2)
19069
Braemore Road
Northridge,
California 91326
|
21,210,550
shares
|
52.4%
|
Common
Stock
|
Vinay
Holdings (4)
P.O.
Box 983 Victoria,
Mahe,
Republic of Seychelles
|
2,664,450
shares
Beneficial
Owner
|
6.58%
|
Common
Stock
|
Gaurav
Singh
c/o
20300 Ventura Blvd. Suite 330 Woodland Hills, California
91364
|
200,000
shares held
Vice
President of
Operations
and Finance
|
0.5%
|
Common
Stock
|
Fernando
Munoz
c/o
20300 Ventura Blvd. Suite 330 Woodland Hills, California
91364
|
No
shares held
Vice
President for Technology
|
0.0%
|
Common
Stock
|
Zoe
Myerson
c/o
20300 Ventura Blvd. Suite 330 Woodland Hills, California
91364
|
No
shares held
Vice
President of
World-wide
Sales
|
0.0%
|
Common
Stock
|
All
directors and named executive officers as a group
|
22,310,550
shares
|
55.1%
|
(1)
|
Includes
those 21,210,550 shares, which are held by Typhoon Capital Consultants,
LLC, of which Sanjay Sabnani is the beneficial owner, and 900,000 shares
held by Sabnani Children Income Trust, of which Sanjay Sabnani may be
deemed to have beneficial ownership due to his spouse's role as sole
trustee for this trust. Sabnani disclaims beneficial ownership of those
900,000 shares, except as to his pecuniary interest
therein.
|
||
(2)
|
Sanjay Sabnani holds voting and dispositive power over the shares of Typhoon Capital Consultants, LLC. | ||
(3)
|
Based on 40,476,818 common shares issued and outstanding as of July 22, 2008. | ||
(4)
|
Parshotam Shambhunath Vaswani holds voting and dispositive power over the shares of Vinay Holdings, Ltd. |
·
|
disclose
such transactions in prospectuses where
required;
|
·
|
disclose
in any and all filings with the Securities and Exchange Commission, where
required;
|
·
|
obtain
disinterested directors consent;
and
|
·
|
obtain
shareholder consent where required.
|
Exhibit No. | Description |
2.1*
|
Agreement
and Plan of Merger by and among WestCoast Golf Experiences, Inc., General
Mayhem LLC and General Mayhem Acquisition Corp., dated April 2,
2008
|
2.2*
|
Agreement
of Merger and Plan of Merger and Reorganization dated April 8, 2008 by and
between WestCoast Golf Experiences, Inc., a Nevada corporation and General
Mayhem Acquisition Corp., a Nevada
corporation.
|
3.1
|
Articles
of Incorporation, incorporated by reference to Exhibit 3.1 of WestCoast’s
Registration Statement on Form SB-2 filed on June 20,
2005
|
3.2*
|
Certificate
of Change in number of authorized shares as filed with the Secretary of
State of Nevada on March 27, 2008
|
3.3* | Articles of Merger as filed with the Secretary of State of the State of Nevada on April 8, 2008 |
3.4
|
Bylaws
of the Company, incorporated by reference to Exhibit 3.2 of WestCoast’s
Registration Statement on Form SB-2 filed on June 20,
2005
|
4.1* | Form of Subscription Agreement |
10.1* | Cancellation Agreement, by and between the Company and Roger Arnet, dated as of April 1, 2008 |
10.2** | 2008 Stock Option Plan |
10.3** | Website and Domain Name Acquisition Agreement |
10.4*** | Convertible Promissory Note |
14 | Code of Ethics**** |
31 | Section 302 Certification by Chief Executive Officer and Chief Financial Officer |
32 | Section 906 Certification by Chief Executive Officer and Chief Financial Officer |
CrowdGather,
Inc.
a
Nevada corporation
|
|||
|
By:
|
/s/ Sanjay Sabnani | |
|
Sanjay
Sabnani
|
||
Its: |
Principal
executive officer
President,
CEO and director
|
By: |
/s/
Sanjay Sabnani
|
July 29,
2008
|
|||
Its:
|
Sanjay
Sabnani
Director
|
|
1.
|
I
have reviewed this annual report on Form 10-KSB of CrowdGather,
Inc.;
|
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
report;
|
|
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the small
business issuer as of, and for, the periods presented in this
report;
|
|
|
4.
|
The
small business issuer'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)) for the small
business issuer and have:
|
|
(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 small business issuer, including
its consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
|
(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)
|
Evaluated
the effectiveness of the small business issuer's disclosure controls and
procedures and presented in this report our conclusions 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)
|
Disclosed
in this report any change in the small business issuer's internal control
over financial reporting that occurred during the small business issuer's
most recent fiscal quarter (the small business issuer's fourth fiscal
quarter in the case of an annual report) that has materially affected, or
is reasonably likely to materially affect, the small business issuer's
internal control over financial
reporting.
|
5.
|
The
small business issuer's other certifying officer(s) and I have disclosed,
based on our most recent evaluation of internal control over financial
reporting, to the small business issuer's auditors and the audit committee
of the small business issuer's board of directors (or persons performing
the equivalent functions):
|
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the small business issuer's ability
to record, process, summarize and report financial information;
and
|
|
|
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the small business issuer's
internal control over financial
reporting.
|
/s/
Sanjay Sabnani
|
|
|||
Sanjay
Sabnani
Chief
ExecutiveOfficer
|
|
1.
|
I
have reviewed this annual report on Form 10-KSB of CrowdGather,
Inc.;
|
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
report;
|
|
|
3.
|
Based
on my knowledge, the financial statements, and other financial information
included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the small
business issuer as of, and for, the periods presented in this
report;
|
|
|
4.
|
The
small business issuer'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)) for the small
business issuer and have:
|
|
(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 small business issuer, including
its consolidated subsidiaries, is made known to us by others within those
entities, particularly during the period in which this report is being
prepared;
|
|
(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)
|
Evaluated
the effectiveness of the small business issuer's disclosure controls and
procedures and presented in this report our conclusions 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)
|
Disclosed
in this report any change in the small business issuer's internal control
over financial reporting that occurred during the small business issuer's
most recent fiscal quarter (the small business issuer's fourth fiscal
quarter in the case of an annual report) that has materially affected, or
is reasonably likely to materially affect, the small business issuer's
internal control over financial
reporting.
|
5.
|
The
small business issuer's other certifying officer(s) and I have disclosed,
based on our most recent evaluation of internal control over financial
reporting, to the small business issuer's auditors and the audit committee
of the small business issuer's board of directors (or persons performing
the equivalent functions):
|
|
(a)
|
All
significant deficiencies and material weaknesses in the design or
operation of internal control over financial reporting which are
reasonably likely to adversely affect the small business issuer's ability
to record, process, summarize and report financial information;
and
|
|
|
|
(b)
|
Any
fraud, whether or not material, that involves management or other
employees who have a significant role in the small business issuer's
internal control over financial
reporting.
|
/s/
Sanjay Sabnani
|
|
|||
Sanjay
Sabnani
Chief Financial
Officer
|
|
(1)
|
The
Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934;
and
|
(2)
|
The
information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the
Company.
|
/s/
Sanjay Sabnani
|
|
|||
Sanjay
Sabnani
Chief Executive Officer
July 29,
2008
|
|
(1)
|
The
Report fully complies with the requirements of Section 13(a) or 15(d) of
the Securities Exchange Act of 1934;
and
|
(2)
|
The
information contained in the Report fairly presents, in all material
respects, the financial condition and result of operations of the
Company.
|
/s/
Sanjay Sabnani
|
|
|||
Sanjay
Sabnani
Chief Financial Officer
July 29,
2008
|
|