|
|



U.S. SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549



Amendment No. 1 to

Form 10-K



ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For the fiscal year ended December 31, 2018



TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934



For the transition period from ___________ to ___________





|NOSTALGIA FAMILY BRANDS, INC.                         
|------------------------------------------------------
|(Exact name of registrant as specified in its charter)

|Delaware                                                       |  | 27-3999874                          
|-------------------------------------------------------------- |  | ------------------------------------
|(State or other jurisdiction of incorporation or organization) |  | (I.R.S. Employer Identification No.)



20 Pape Drive

Atlantic Highlands, New Jersey 07716

(Address of principal executive offices)



(732) 291-3661

(Registrant’s telephone number, including area code)



Check whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes  ̈No x



Check whether the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act.  ̈



Check whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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 requirements for the past 90 days. No xNo  ̈



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 x



Check if there is no disclosure of delinquent filers in response to Item 405 of Regulation S-K (§229.405 of this chapter) contained herein, and no disclosure will 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. x



Check whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):



|Large Accelerated Filer |  ̈ | Accelerated Filer         |  ̈
|----------------------- | - | ------------------------- | -
|Non-accelerated Filer   |  ̈ | Smaller Reporting Company | x
|Emerging Growth Company | x |                           |  



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.  ̈



Check whether the issuer is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes xNo  ̈



The number of shares of common stock of the Company, par value $.001, issued and outstanding as of January 24, 2020 was 3,800,000.



|
|



|
|
|
|
|



EXPLANATORY NOTE



Nostalgia Family Brands, Inc. (the “Registrant”) is filing this Amendment No. 1 on Form 10–K/A (this “Amendment”) to its Annual Report on Form 10–K for the fiscal year ended December 31, 2018, originally filed with the Securities and Exchange Commission (the “SEC”) on January 24, 2020 (the “Original Filing”).



This Amendment is filed solely for the purpose of correcting the tenure date in Marcum LLP’s Report of Independent Registered Public Accounting Firm. No other changes have been made.



Other than the foregoing, this Amendment speaks as of the original date of the Original Filing, does not reflect events that may have occurred subsequent to the date of the Original Filing and does not modify or update in any way disclosures made in the Original Filing.





| 
|-
|2
| 
| 



PART I



Item 1. Description of Business.



(a) Business Development



We were incorporated under the laws of the State of Delaware on November 5, 2010.



In 2012, we filed a registration statement with respect to the sale of up to 3,000,000 shares of our common stock at a purchase price of $0.10 per share. The registration statement went effective on August 13, 2012. We were unable to raise any money pursuant to the prior registration statement.



The Company is an "emerging growth company" ("EGC"), that is exempt from certain financial disclosure and governance requirements for up to five years as defined in the Jumpstart Our Business Startups Act ("the JOBS Act"), that eases restrictions on the sale of securities and increases the number of shareholders a company must have before becoming subject to the U.S. Securities and Exchange Commission's ("SEC's") reporting and disclosure rules (See Emerging Growth Companies Section Below). The Company has selected December 31 as its year end.



(b) Business of Issuer



We aim to acquire ownership of and other rights to discontinued consumer product brands with the ultimate goal of reviving these products and commercializing them based on the concept that nostalgia for such brands will be a powerful incentive to purchase by the 55 and over population, which we refer to in this report as the senior population. We believe that many formerly popular brand names that were discontinued by their parent company still resonate with the senior population and if so revived and made available in supermarkets and other retail establishments, would attract this population and others as consumers.



We believe that as a person ages, he or she often feels left behind and tends to remember the "good old days" when life was simpler. We believe we can tap into these feelings and use it as a trigger for purchasing decisions, as studies have shown that seniors miss their youth and many of the products which they used during childhood that are no longer available. Older adults have a preference to purchase brands which have been established for a long time. We believe that the combination of familiarity and positive associations linger as a person ages, and we intend to build on these associations to revive a retail presence for one or more discontinued consumer product brands that at one time were widely recognized.



We are a newly established company and have limited operations. For the period from November 5, 2010 (Inception) to December 31, 2018, we have not generated any revenue and incurred net losses of $151,333. Due to the "newly-established" nature of our business, we expect to incur losses as we expand. To date, our cash flow requirements have been met by an equity financing and debt. If we are unable to successfully generate sufficient profits or otherwise obtain additional funds for our working capital needs, we may need to cease or curtail operations. Furthermore, there is no assurance the net proceeds from any financing arrangement will be sufficient to cover cash requirements during the early stages of our operations. For these reasons, our independent registered public accounting firm believes that there is substantial doubt that we will be able to continue as a going concern.



Proposed Products



We intend to target for purchase the intellectual property and other rights to discontinued consumer product brands. We consider a product to be discontinued if it is no longer available at traditional retail levels such as grocery and drug stores, or on the internet.





| 
|-
|3
| 
| 



We do not currently own any brand names or have any products for sale. To date, we have researched over 100 discontinued products and are focusing upon 20 of these products in following three categories of consumer products: candy, food other than candy, and personal products, as follows:



| | · | Candy. Bit-O-Licorice, Big Yank, Old Nick and Hollywood candy bars.                                                                                                                                         
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                             
| | · | Food Other Than Candy. Amazo Instant Dessert, Ballard Cornbread Mix, Cocomalt, Hydrox Cookies, Krumbles Cereal, Ann Page Pork and Beans, Pep Cereal, Puffa Puffa Rice Cereal and Van Camp's Chili Con Carne.
| |   |                                                                                                                                                                                                             
| | · | Personal Products. Calox Tooth Powder, Chipso Laundry Soap, Forhans for the Gums, Rapid Shave, Shower Mate, Stopette Deodorant and Sun 'N' Surf.                                                            



We hope to acquire at least one product from each category. Some of the product brands we intend to target for acquisition are in public domain while the rights to others are still owned by companies from whom we would endeavor to acquire the manufacturing and distribution rights either upon a royalty basis or outright purchase.



There can be no assurance that we will be successful in acquiring rights to any of the above targeted products or any other discontinued products. We do not believe that any of our targeted products are available on the internet or at the retail level.



Demographics



According to our research:



| | · | An estimated 88 million people in the United States are over the age of 55 according to the World Factbook updated on September 24, 2015 (the “WF 2015”). We believe this large and growing segment of the population are a viable demographic market with more financial resources and an increasing awareness of their power as consumers. According to the article titled “Targeting the mature market: opportunities and challenges”, Journal of Consumer Marketing, Vol. 14 No. 4 1997, pp. 282 – 293, by George Moschis (Director of the Center for Mature Consumer Studies at Georgia State University), Euehun Lee and Anil Mathur, there were approximately 55 million people aged 55 and older and 33 million aged 65 and older in the USA, and the US elder population is expected to double by the year 2030.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | · | The number of U.S. persons age 65 and over in 2015 was estimated at more than 47 million persons according to the WF 2015 which is approximately 14.88% of the nation's total population and greater than the populations of more than 200 of the world's countries (GeoHive.com-2015).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| |   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          
| | · | The senior population age 55 and older controls in excess of three-fourths of the United States' wealth (George Moschis, Director of the Center for Mature Consumer Studies at Georgia State University).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                



| | · | The senior population possesses over $900 billion in spending money, and nearly a quarter of householders aged 65 to 69 have a net worth of $250,000 or more (George Moschis, Director of the Center for Mature Consumer Studies at Georgia State University).
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                                                                                                               
| | · | According to Pew Research Center surveys conducted during March 17-April 12, May 28-31 and June 10-July 12, 2015, about four-in-ten adults ages 65 and older (39%) do not use the internet, compared with only 3% of 18- to 29-year-olds.                     



The U.S. government statistics from 2013 show that Florida has the highest percentage of population of people aged 65 and over followed by Maine, West Virginia, Delaware, Pennsylvania and Montana. According to the United States Census Bureau, 31 states had a proportion of older people that exceeded the national proportion of 14.1%.





| 
|-
|4
| 
| 



Marketing, Advertising and Distribution



As demonstrated by the above Pew Research Center surveys, due to the fact that there is still a substantial percentage (39%) of the U.S. senior population (exceeding 47 million persons) who do not use the internet, we plan to market our anticipated product brands using a combination of radio and print media advertising. Advertising over the radio is expected to commence in the areas most concentrated with a senior population. Our website will not initially offer our products for sale, but rather will direct potential consumers to area retail outlets carrying our products.



In addition, we intend to purchase advertising space for particular regions of major weekend supplements including, but not limited to, Parade and AARP Magazine, to target our market and advise the senior population that their favorite brands are once again available at retail stores in their area. We intend to purchase the advertising space through cash payments and payments in the form of shares of our common stock. We believe that advertising can be purchased for cash or stock with little or no lead time and at substantial discounts from prevailing market prices for "remainders" which are sections of a national run by these and other publications when not sold by print time; provided however, there can be no assurance that we will be successful in purchasing advertising space through cash or stock payments or at all.



We expect that if and when demand is created through our advertising campaigns, it will be easier to retain independent manufacturer's representatives to sell our products to regional buyers at independent retailers and retailers will be more likely to stock our products as a result of advertising-generated demand. These independent representatives also obviate the need for us to have sales personnel on our payroll, thus keeping our labor costs down. We expect independent representatives will charge us a fee of between 5% and 15% of any sales brokered by them with potential bonuses for meeting pre-determined sales levels.



We intend to ultimately sell our products primarily in the mass market retail channel in all 50 states, including, but not limited to, supermarket chains, drug stores, gas station marts, mass merchandisers and warehouse clubs.



Production



We expect that all product production will initially be out-sourced to third-party manufacturers. We do not anticipate expenses with respect to inventory, distribution and storage. All of our products will be shipped directly to consumers from third-party manufacturers or distributors.



Competition



Our proposed business is subject to significant competition. The food and consumer products industry is fragmented, highly competitive and is dominated by large multinational companies including, but not limited to, Nestle, Kraft Foods, Mars, Proctor & Gamble and Unilever, as well as smaller competitors, many of whom have already established their brand name recognition in our proposed markets. In addition, many of our competitors have significantly larger marketing personnel and financial resources than we have and competition for shelf space in grocery stores and other retail outlets is intense, costly and poses great difficulty for smaller food and consumer product companies and distributors.



We intend to offer distinctive products which address specific consumer needs. We will target the senior population where nostalgia is expected to be a strong motivator for purchases. However, these efforts will not guarantee that we will be competitive or that our business plan will be successful. Further, we intend to compete with other companies that see the value of reintroducing discontinued product brands.



We believe that competition is based primarily upon availability, price, quality and efficacy of products, customer service, brand name recognition and marketing and trade support, and successful product introductions.



| 
|-
|5
| 
| 



Intellectual Property



We do not own any intellectual property. As part of our acquisition strategy, we will endeavor to purchase all relevant trademarks, trade names, trade secrets and other intellectual property of the consumer product brands which we aim to acquire.



Research and Development Activities



Other than time spent researching our proposed business and identifying potential product acquisitions, we have not spent any funds on research and development activities to date. We do not currently plan to spend any material funds on research and development activities in the future.



Employees



We do not presently have any employees other than our two executive officers, neither of whom are expected to be full-time employees. Our officers are responsible for planning, developing and operational duties, and will continue to do so throughout the early stages of our growth. We have no intention of hiring employees until our business has been successfully launched and we have sufficient, reliable revenue from our operations, which is not expected for at least the next 12 months. Although we cannot reliably estimate the percentage of time each of our executive officers will spend on behalf of our Company prior to the successful launch of our business, of which we can give no assurance of success, they have each committed to spend such time as they deem reasonably necessary to launch our business. Mr. McDermitt is available to work as a full-time employee if and when we successfully launch our business. Mr. O'Donnell, our CFO, will re-evaluate his time commitments to us if and when we successfully launch our business.



We intend to retain independent manufacturer's representations to seek buyers of our products, once available. We have not yet identified any such independent representatives.



ASPECTS OF A REPORTING COMPANY



Our shares of common stock are not registered under the securities laws of any state or other jurisdiction, and accordingly there is no public trading market for our common stock. Further, no public trading market is expected to develop in the foreseeable future unless and until the Company completes a business combination with an operating business and the Company thereafter files a registration statement under the Securities Act. Therefore, outstanding shares of our common stock cannot be offered, sold, pledged or otherwise transferred unless subsequently registered pursuant to, or exempt from registration under, the Securities Act and any other applicable federal or state securities laws or regulations. Shares of our common stock cannot be sold under the exemptions from registration provided by Rule 144 or Section 4(1) of the Securities Act (“Rule 144”) as long as the Company is designated a “shell company” and for 12 months after it ceases to be a “shell company”, provided the Company otherwise is in compliance with the applicable rules and regulations. Compliance with the criteria for securing exemptions under federal securities laws and the securities laws of the various states is extremely complex, especially in respect of those exemptions affording flexibility and the elimination of trading restrictions in respect of securities received in exempt transactions and subsequently disposed of without registration under the Securities Act or state securities laws.



Emerging Growth Company (EGC)



We are an emerging growth company under the JOBS Act. We shall continue to be deemed an emerging growth company until the earliest of:



| | (a) | the last day of the fiscal year of the issuer during which it had total annual gross revenues of $1,000,000,000 (as such amount is indexed for inflation every 5 years by the Commission to reflect the change in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics, setting the threshold to the nearest 1,000,000) or more;
| | --- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | (b) | the last day of the fiscal year of the issuer following the fifth anniversary of the date of the first sale of common equity securities of the issuer pursuant to an effective IPO registration statement;
| | --- | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





| 
|-
|6
| 
| 



| | (c) | the date on which such issuer has, during the previous 3-year period, issued more than $1,000,000,000 in non-convertible debt; or
| | --- | ---------------------------------------------------------------------------------------------------------------------------------



| | (d) | the date on which such issuer is deemed to be a ‘large accelerated filer’, as defined in section 240.12b-2 of title 17, Code of Federal Regulations, or any successor thereto.’.
| | --- | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



We qualify as an “emerging growth company” or “EGC” under the JOBS Act. As a result, we are permitted to, and intend to, rely on exemptions from certain disclosure requirements. For so long as we are an emerging growth company, we will not be required to:



| | · | have an auditor report on our internal control over financial reporting pursuant to Section 404(b) of the Sarbanes-Oxley Act;
| | - | -----------------------------------------------------------------------------------------------------------------------------



| | · | comply with any requirement that may be adopted by the Public Company Accounting Oversight Board regarding mandatory audit firm rotation or a supplement to the auditor’s report providing additional information about the audit and the financial statements (i.e., an auditor discussion and analysis);
| | - | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | submit certain executive compensation matters to stockholder advisory votes, such as “say-on-pay” and “say-on-frequency;” and
| | - | -----------------------------------------------------------------------------------------------------------------------------



| | · | disclose certain executive compensation related items such as the correlation between executive compensation and performance and comparisons of the CEO’s compensation to median employee compensation.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards.



Rule 12b-2 of the Securities Exchange Act of 1934, as amended, defines a Smaller Reporting Company as an issuer that is not an investment company, an asset-backed issuer, or a majority-owned subsidiary of a parent that is not a smaller reporting company and that:



| | · | Had a public float of less than $75 million as of the last business day of its most recently completed second fiscal quarter, computed by multiplying the aggregate worldwide number of shares of its voting and non-voting common equity held by non-affiliates by the price at which the common equity was last sold, or the average of the bid and asked prices of common equity, in the principal market for the common equity; or
| | - | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | In the case of an initial registration statement under the Securities Act or Exchange Act for shares of its common equity, had a public float of less than $75 million as of a date within 30 days of the date of the filing of the registration statement, computed by multiplying the aggregate worldwide number of such shares held by non-affiliates before the registration plus, in the case of a Securities Act registration statement, the number of such shares included in the registration statement by the estimated public offering price of the shares; or
| | - | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



| | · | In the case of an issuer whose public float as calculated under paragraph (1) or (2) of this definition was zero, had annual revenues of less than $50 million during the most recently completed fiscal year for which audited financial statements are available.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------





| 
|-
|7
| 
| 



We qualify as a Smaller Reporting Company. Moreover, as a Smaller Reporting Company and so long as we remain a Smaller Reporting Company, we benefit from similar exemptions and exclusions as an Emerging Growth Company. In the event that we cease to be an Emerging Growth Company as a result of a lapse of the five year period, but continue to be a Smaller Reporting Company, we would continue to be subject to similar exemptions available to Emerging Growth Companies until such time as we were no longer a Smaller Reporting Company.



The public may read and copy any materials which we have filed with the Securities and Exchange Commission (the “SEC”) at the SEC's Public Reference Room at 100 F Street, NE., Washington, DC 20549, on official business days during the hours of 10:00 a.m. to 3:00 p.m. The public may obtain information on the operation of the Public Reference Room by calling the Commission at 1-800-SEC-0330. The Commission maintains an Internet site, http://www.sec.govthat contains reports, proxy and information statements, and other information with respect to issuers that file electronically with the SEC.



An investment in our Company is highly speculative in nature and involves an extremely high degree of risk.



Risks Related to Our Business



As a newly established company with an unproven business strategy, our limited history of operations makes evaluation of our business and prospects difficult.



We were incorporated on November 5, 2010 and our business is in its early planning stages and has not commenced operations. Our business prospects are difficult to predict because of our limited operating history, early stage of establishment and unproven business strategy. While we intend to focus on acquiring rights to and reviving discontinued consumer product brands, there can be no assurance that we will be successful in implementing our business plan. We may never generate revenues or attain profitable operations, and our management may not succeed in realizing our business objectives.



We are uncertain of our ability to function as a going concern, indicating the possibility that we may not be able to operate in the future.



To date, we have completed only the initial stages of our business plan and we can provide no assurance that we will be able to generate sufficient revenue, if any, from our business in order to achieve profitability. It is not possible at this time for us to predict with assurance the potential success of our business. The revenue and income potential of our proposed business and operations are as of yet unknown. Our independent registered public accounting firm has expressed substantial doubt about our ability to continue as a going concern. This opinion could materially limit our ability to raise additional funds by issuing debt or equity securities or otherwise. If we fail to raise sufficient capital when needed, we will not be able to completely execute our business plan. As a result, we may have to cease our business and liquidate any assets we own and purchasers of our common stock may lose their entire investment.



Our business will fail if we are unable to identify, acquire, commercialize, market and sell discontinued consumer product brands or otherwise implement our business plan successfully.



The success of our business plan is dependent, among other things, on our ability to identify, acquire, commercialize, market and sell discontinued consumer product brands. It is our current plan to purchase the intellectual property and other rights to certain discontinued consumer product brands; however, we currently do not own any intellectual property and have not obtained any copyrights, patents or trademarks in respect of any intellectual property. Our business will fail if we cannot successfully implement our business plan or successfully market our planned products.



We expect to suffer losses for the foreseeable future.



We expect to incur operating losses for the foreseeable future. These losses will occur because we do not yet have any revenues to offset the expenses associated with the development of our planned business. We cannot guarantee that we will ever become successful in generating sufficient revenues in the future. If we are unable to generate sufficient revenues, we will not be able to earn profits or continue operations. If we are unsuccessful in addressing these risks, our business will most likely fail.





| 
|-
|8
| 
| 



If our views on the purchasing power of nostalgia as a driver for sales of consumer products is erroneous, our financial condition and results of operations will likely suffer.



We believe that there is a potential market for the revival of discontinued consumer product brands based upon the strength of nostalgia in the senior population. We can give no assurance that our views on nostalgia or its use as a marketing tool to sell products will prove to be successful, especially considering that any brands we may acquire were likely discontinued due to a lack of sales or popularity at such time. If such views turn out to be erroneous, our results of operations and financial condition would be materially and adversely affected and our business may fail.



We intend to enter a competitive market which could impact our ability to gain market share and accordingly, could harm our financial performance.



The market for consumer products is very competitive. Although we intend to differentiate ourselves from other companies, there are a number of companies, many of which are established, adequately funded and which sell numerous products which would compete with any brands we may acquire. If we cannot gain shelf space for our planned products at retailers or gain market share, our business and financial performance will be adversely affected.



We may not be able to execute our business plan or stay in business without additional funding.



Our ability to successfully develop our business, generate operating revenues and achieve profitability depends upon our ability to obtain the necessary financing to implement our business plan. We will require financing through the issuance of additional debt and/or equity in order to implement our business plan, including identifying, acquiring and distributing consumer products, building inventory, hiring additional personnel as needed and eventually establishing profitable operations. Such financing may not be forthcoming. As it has been widely reported, global and domestic financial markets and economic conditions have been, and continue to be, disrupted and volatile due to a variety of factors, including, but not limited to, weak economic conditions. As a result, the cost of raising money in the debt and equity capital markets has increased substantially while the availability of funds from those markets has diminished significantly, even more so for smaller companies like ours. If such conditions and constraints continue, we may not be able to acquire funds either through credit markets or through equity markets and, even if financing is available, it may not be available on terms which we find favorable. Failure to secure funding when needed will have an adverse effect on our ability to meet our obligations and remain in business.



If our estimates related to expenditures are erroneous or inaccurate, our business may fail.



Our success is dependent in part upon the accuracy of our management's estimates of expenditures for the next twelve months and beyond, including, but not limited to, the expenditures we expect to incur as a public reporting company, costs relating to acquiring rights to consumer product brands and commercialization of those brands, website development, and advertising and administrative expenses all of which management estimates will cost an aggregate minimum of approximately $300,000 over the next 12 months. If such estimates are erroneous or inaccurate, or we encounter unforeseen expenses and delays, we may not be able to carry out our business plan, which could result in the failure of our business.



If we are unable to identify and retain qualified personnel, our business and financial performance may suffer.



We expect to be dependent on relationships with third parties in order to successfully commercialize our planned product lines. As a new company with very limited operating history and resources we may have difficulty in attracting and retaining the personnel required by us. If we are unable to fill those key positions or if we fail to hire or retain the necessary personnel, our business will suffer.





| 
|-
|9
| 
| 



We need to retain key personnel to support our product and ongoing operations.



Our future success depends upon the continued service of Mr. William P. McDermitt, our Chief Executive Officer and sole Director, and Mr. Edward O'Donnell, our Vice President, Chief Financial Officer and Secretary, upon whom we are relying to implement our business plan. The loss of the services of either Mr. McDermitt or Mr. O'Donnell could negatively impact our ability to select and commercialize potential brands, which would adversely affect our financial results and impair our operations.



Each of our executive officers are part-time employees and have committed to spend such time as they deem reasonably necessary to launch our business. Our inability to have a full-time chief financial officer may make it more difficult to, or cause a delay in, launching and developing our business and in meeting the reporting requirements of a public company.



Our Chief Executive Officer and sole Director lacks experience in and with publicly traded companies.



While we intend to rely heavily upon Mr. McDermitt, he has no experience serving as an officer and/or director of a publicly traded company or experience with the reporting requirements which public companies are subject to. In addition, Mr. McDermitt has no experience with the financial accounting and preparation requirements of financial statements which are required to be filed quarterly and annually under the Securities Exchange Act of 1934, as amended. Due to lack of financial resources, we were unable to timely file a number of our annual and quarterly reports with the SEC in the past. Consequently, our operations and ultimate financial success may suffer substantial harm due to our chief executive officer's lack of experience with publicly traded companies and the financial accounting and preparation requirements of the Exchange Act.



We could be subject to SEC penalties if we do not file all of our SEC reports.



Although we are delinquent in our SEC filings due to lack of funding, we are in the process of rectifying our delinquency. It is the management’s intention to meet the SEC’s requirements and to be up to date in all of our filings, but we cannot insure it because of the Company's lack of financial resources. It is possible that the SEC could take enforcement action against us, including potentially the de-registration of our securities, if we fail to file our annual and quarterly reports in a timely manner as required by the SEC. If the SEC were to take any such actions, it could adversely affect the liquidity of the future trading in our common stock and the amount of information about our Company that is publicly available.



In the event we are delinquent with respect to our reporting requirements in the future, the Securities and Exchange Commission may revoke the registration of our common stock and, if our common stock is quoted on the OTC Bulletin Board, quotation of our common stock will be terminated.



If, in the future, we are delinquent with respect to our reporting requirements, the Commission may revoke the registration of our common stock. If the Commission revokes the registration of our common stock, brokers, dealers and other market participants would be prohibited from buying, selling, making a market in, publishing quotations of, or otherwise effecting transactions with respect to such common stock until, in the case of suspension, the lifting of such suspension, or, in the case of a revocation, we file a new registration statement with the Commission under the Exchange Act and that registration statement is declared effective. As a result, public trading of our common stock would cease and investors would find it extraordinarily difficult to acquire or dispose of our common stock or obtain accurate price quotations for our common stock, which could result in a significant decline in the value of our stock. In addition, any business which we acquire or start may be adversely impacted, including, without limitation, an adverse impact on our ability to issue stock to raise equity capital, engage in business combinations or provide employee incentives.



In addition, if our shares become quoted on the OTC Bulletin Board, we will be required to remain current in our filings with the SEC and our securities will not be eligible for quotation if we are not current in our filings with the SEC. In the event that we become delinquent in our required filings with the SEC, quotation of the common stock will be terminated following a 30 day grace period if we do not make our required filing during that time.





|  
|--
|10
|  
|  



Risks Related to our Common Stock



There is currently no public market for our securities and there can be no assurance that any public market will develop or that our Common Stock will be quoted for trading.



There is no public market for our securities and there can be no assurance that an active trading market for our Common Stock will develop, or, if developed, be sustained. Our Common Stock may never be quoted on the Over-the-Counter Bulletin Board, or, even if quoted, a public market may not materialize.



Because we will be subject to "penny stock" rules if our shares are quoted on the Over-the-Counter Bulletin Board, the level of trading activity in our stock may be reduced.



Broker-dealer practices in connection with transactions in "penny stocks" are regulated by penny stock rules adopted by the Securities and Exchange Commission. Penny stocks generally are equity securities with a price of less than $5.00 (other than securities registered on some national securities exchanges). The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction, and, if the broker-dealer is the sole market maker, the broker-dealer must disclose this fact and the broker-dealer's presumed control over the market, and monthly account statements showing the market value of each penny stock held in the customer's account. In addition, broker-dealers who sell these securities to persons other than established customers and "accredited investors" must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written agreement to the transaction. Consequently, these requirements may have the effect of reducing the level of trading activity, if any, in the secondary market for a security subject to the penny stock rules. If a trading market does develop for our common stock, these regulations will likely be applicable, and investors in our common stock may find it difficult to sell their shares.



FINRA sales practice requirements may limit a stockholder's ability to buy and sell our stock.



FINRA has adopted rules that require that in recommending an investment to a customer, a broker-dealer must have reasonable grounds for believing that the investment is suitable for that customer. Prior to recommending speculative low priced securities to non-institutional customers, broker-dealers must make reasonable efforts to obtain information about the customer's financial status, tax status, investment objectives and other information. Under interpretations of these rules, FINRA believes that there is a high probability that speculative low priced securities will not be suitable for certain customers. FINRA requirements will likely make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may have the effect of reducing the level of trading activity in our common stock. As a result, fewer broker-dealers may be willing to make a market in our common stock, reducing a stockholder's ability to resell shares of our common stock.



State securities laws may limit secondary trading, which may restrict the states in which stockholders may sell their shares.



Stockholders may not be able to resell the shares which they purchase in a certain state unless and until the shares of our common stock are qualified for secondary trading under the applicable securities laws of such state or there is confirmation that an exemption, such as listing in certain recognized securities manuals, is available for secondary trading in such state. There can be no assurance that we will be successful in registering or qualifying our common stock for secondary trading, or identifying an available exemption for secondary trading in our common stock in every state. If we fail to register or qualify, or to obtain or verify an exemption for the secondary trading of our common stock in any particular state, the shares of common stock cannot be offered or sold to, or purchased by, a resident of that state. In the event that a significant number of states refuse to permit secondary trading in our common stock, the market for the common stock will be limited, which could drive down the market price of our common stock, and reduce the liquidity of the shares of our common stock and a stockholder's ability to resell shares of our common stock at all or at current market prices, which could increase a stockholder's risk of losing some or all of his investment.



11

If quoted, the price of our common stock may be volatile, which may substantially increase the risk that stockholder's may not be able to sell their shares at or above the price which they paid for the shares.



Even if our shares are quoted for trading on the Over-the-Counter Bulletin Board or other over-the-counter market and a public market develops for our common stock, the market price of our common stock may be volatile. It may fluctuate significantly in response to the following factors:



| | · | variations in quarterly operating results;                                                                                                
| | - | ------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                           
| | · | our announcements of the acquisition of assets and achievement of milestones, or the inability to so acquire assets or achieve milestones;
| |   |                                                                                                                                           
| | · | our relationships with other companies or capital commitments;                                                                            
| |   |                                                                                                                                           
| | · | additions or departures of key personnel;                                                                                                 
| |   |                                                                                                                                           
| | · | sales of capital stock or termination of stock transfer restrictions;                                                                     
| |   |                                                                                                                                           
| | · | changes in financial estimates by securities analysts, if any;                                                                            
| |   |                                                                                                                                           
| | · | fluctuations in stock market price and volume; and                                                                                        
| |   |                                                                                                                                           
| | · | general economic and market conditions                                                                                                    



Because we do not intend to pay any dividends on our common stock, holders of our common stock must rely on stock appreciation for any return on their investment.



We have not declared or paid any dividends on our common stock since our inception, and we do not anticipate paying any such dividends for the foreseeable future. Accordingly, holders of our common stock will have to rely upon capital appreciation, if any, to earn a return on their investment in our common stock.



Additional issuances of our securities may result in immediate dilution to existing stockholders.



We are authorized to issue up to 50,000,000 shares of common stock, $0.001 par value, of which 3,800,000 shares of common stock are currently issued and outstanding. Our Board of Directors has the authority to cause us to issue additional shares of common and preferred stock and to determine the rights, preferences and privilege of such shares, without consent of any of our stockholders. We may issue shares in connection with financing arrangements or otherwise. Any such issuances will result in immediate dilution to our existing stockholders' interests, which will negatively affect the value of their shares.



The market price of our common stock may decline as a result of sales of a large number of shares of our common stock or the perception that such sales could occur. These sales, or the possibility that these sales may occur, also may make it more difficult for us to raise additional capital by selling equity securities in the future, at a time and price that we deem appropriate.



We cannot predict the size of future issuances of our common stock or the effect, if any, that future issuances and sales of shares of our common stock may have on the market price of our common stock. Sales or distributions of substantial amounts of our common stock, including, but not limited to, shares issued in connection with an acquisition or the perception that such sales or distributions could occur, may cause the market price of our common stock to decline.





|  
|--
|12
|  
|  



Any issuance of preferred stock would make it difficult for another company to acquire us or could otherwise adversely affect holders of our common stock, which would depress the price of our common stock.



Our Board of Directors has the authority to issue preferred stock and to determine the preferences, limitations and relative rights of shares of preferred stock and to fix the number of shares constituting any series and the designation of such series, without any further vote or action by our stockholders. Our preferred stock may be issued with voting, liquidation, dividend and other rights superior to the rights of our common stock. The potential issuance of preferred stock may delay or prevent a change in control of us, discouraging bids for our common stock at a premium over the market price and adversely affecting the market price and the voting and other rights of the holders of our common stock.



We will incur significant costs as a result of operating as a public company, and our management will devote substantial time to new compliance initiatives. We may fail to comply with the rules that apply to public companies, which could result in sanctions or other penalties that would harm our business.



We will incur significant legal, accounting and other expenses as a public company, including costs resulting from public company reporting obligations under the Securities Exchange Act of 1934, as amended, and regulations regarding corporate governance practices, such as accurately and timely filing annual and interim reports, soliciting proxies for annual and special meetings of stockholders, conflicts of interest policies and a code of conduct. Our management and other personnel will need to devote a substantial amount of time to ensure that we comply with all of these requirements. Moreover, the reporting requirements, rules and regulations will increase our legal and financial compliance costs and will make some activities more time-consuming and costly. Any changes we make to comply with these obligations may not be sufficient to allow us to satisfy our obligations as a public company on a timely basis, or at all. These reporting requirements, rules and regulations, coupled with the increase in potential litigation exposure associated with being a public company, could also make it more difficult for us to attract and retain qualified persons to serve on our board of directors or board committees or to serve as executive officers, or to obtain certain types of insurance, including directors' and officers' insurance, on acceptable terms.



After a public offering, we will be subject to Section 404 of The Sarbanes-Oxley Act of 2002 and the related rules of the SEC, which generally require our management and if we meet certain requirements, our independent registered public accounting firm to report on the effectiveness of our internal control over financial reporting. Section 404 generally requires an annual management assessment of the effectiveness of our internal control over financial reporting. However, for so long as we remain an emerging growth company as defined in the JOBS Act, we intend to take advantage of certain exemptions from various reporting requirements that are applicable to public companies that are not emerging growth companies, including, but not limited to, not being required to comply with the auditor attestation requirements of Section 404. Once we are no longer an emerging growth company or a smaller reporting company or, if prior to such date, we opt to no longer take advantage of the applicable exemption, we will be required to include an opinion from our independent registered public accounting firm on the effectiveness of our internal controls over financial reporting.



Management is responsible for establishing and maintaining adequate internal control over financial reporting of the Company. Management, with the participation of our principal executive officer and principal financial officer, has evaluated the effectiveness of our internal control over financial reporting as of December 31, 2018. Based upon this evaluation, Management concluded that our disclosure controls and procedures were not effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer, as appropriate. The Company has been delinquent in its reporting due to lack of financial resources; management believes our controls have been sufficient.



If we have a material weakness in our internal controls over financial reporting, we may not detect errors on a timely basis and our financial statements may be materially misstated. We or our independent registered public accounting firm, if required, may not be able to conclude on an ongoing basis that we have effective internal control over financial reporting, which could harm our operating results, cause investors to lose confidence in our reported financial information and cause the trading price of our stock to fall. In addition, failure to maintain an effective system of internal control, or any other problems with our financial systems or internal controls, could result in delays or inaccuracies in reporting financial information or failure to comply with SEC reporting and other regulatory requirements. Any of these situations could adversely affect our business and stock price.





|  
|--
|13
|  
|  



We are an "emerging growth company"



The JOBS Act permits "emerging growth companies" like us to rely on some of the reduced disclosure requirements that are already available to smaller reporting companies, which are companies that have a non-affiliate public float of less than $75 million. As long as we qualify as an emerging growth company or a smaller reporting company, we would be permitted to omit the auditor's attestation on internal control over financial reporting that would otherwise be required by the Sarbanes-Oxley Act, as described above and are also exempt from the requirement to submit "say-on-pay", "say-on-pay frequency" and "say-on-parachute" votes to our stockholders and may avail ourselves of reduced executive compensation disclosure that is already available to smaller reporting companies.



In addition, Section 107 of the JOBS Act also provides that an emerging growth company can take advantage of the exemption from complying with new or revised accounting standards provided in Section 7(a)(2)(B) of the Securities Act as long as we are an emerging growth company. An emerging growth company can therefore delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this until we are no longer an emerging growth company or until we affirmatively and irrevocably opt out of this exemption. Our financial statements may therefore not be comparable to those of companies that comply with such new or revised accounting standards. In addition, the JOBS Act permits an emerging growth company to "test the waters" by communicating orally or in writing with qualified institutional buyers or other accredited investors to gauge interest in a contemplated securities offering, even if a registration statement has not yet been filed, and permits analysts to publish research reports about an emerging growth company that is going public even if the analyst's firm is one of the underwriters in the issuer's IPO. We have not provided any of such information to any qualified institutional buyers or other accredited investors, and we are not aware of any research reports about us being published by analysts.



We may take advantage of these reporting exemptions until we are no longer an emerging growth company. We will remain an emerging growth company until the earlier of (1) the last day of the fiscal year (a) following the fifth anniversary of the date of the first sale of our common stock pursuant to an effective registration statement, (b) in which we have total annual gross revenue of at least $1.0 billion, or (c) in which we are deemed to be a large accelerated filer, which means the market value of our common stock that is held by non-affiliates exceeds $700 million as of the prior June 30th, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period. Until such time, however, we cannot predict if investors will find our common stock less attractive because we may rely on these exemptions. If some investors find our common stock less attractive as a result, there may be a less active trading market for our common stock and our stock price may be more volatile and could cause our stock price to decline.





|  
|--
|14
|  
|  



Item 2. Description of Property.



We do not own interests in any real property. We are using our president's home address as our business address. We do not pay any money to use 20 Pape Drive, Atlantic Highlands, New Jersey 07716 as our business address.



We believe our office is in good operating condition and adequately serves our current business operations. We also anticipate suitable additional or alternative space will be available at commercially reasonable terms for future expansion to the extent necessary.



Item 3. Legal Proceedings.



A claim against the Company was served on January 17, 2014 by Vintage Filings PR Newswire in the Superior Court of New Jersey for approximately $5,900 related to services rendered in 2012. The claim was settled in April 2014 for $6,084, including fees, which is included in accounts payable and accrued expenses in the accompanying balance sheets. As of June 30, 2016, $500.00 was paid by CUBBO, Inc. with respect to the judgment. The plaintiff initially agreed to defer taking action to enforce the judgment; however, the time frame which the plaintiff initially agreed upon has expired. The Company intends to negotiate an extension. On August 13, 2015 we filed with the Securities Exchange Commission a registration statement on Form S-1 to raise $350,000, which was declared effective as of June 29, 2016. If we need additional funds, we may seek to obtain additional funds through additional private placement(s) of equity or debt. We have no other financing plans at this time.



Item 4. Mining Safety Disclosures.



Not applicable.





|  
|--
|15
|  
|  



PART II



Item 5. Market for Common Equity, Related Stockholder Matters and Small Business Issuer Purchases of Equity Securities.



There is currently no public market for our common stock and we have not applied for listing or quotation on any public market. We intend to seek a market maker to file an application on our behalf to have our common stock quoted on the OTC Bulletin Board. In order for such applicable to be accepted, we will have to satisfy certain criteria in order for our common stock to be quoted on the OTC Bulletin Board. There can be no assurance that our common stock will ever be quoted on the OTC Bulletin Board or that any market for our common stock will develop. We currently have no market maker that is willing to list quotations for our common stock. There is no assurance that a trading market will develop, or, if developed, that it will be sustained.



Common Stock



Our Certificate of Incorporation authorizes the issuance of up to 50,000,000 shares of common stock, par value $.001 per share (the “Common Stock”).



Dividends



We have not paid any dividends since our inception and do not anticipate the payment of dividends in the foreseeable future. At present, our policy is to retain earnings, if any, to develop and market our business. The payment of dividends in the future will depend upon factors including, but not limited to, our earnings, capital requirements, and operating financial conditions.



Securities Authorized for Issuance under Equity Compensation Plans



We have not established any compensation plans under which equity securities are authorized for issuance.



Recent Sales of Unregistered Securities



Except as set forth below, the Company has not issued any securities which were not registered under the Securities Act.



During the period between January 3, 2011 and January 13, 2012, we issued 3,800,000 shares of our common stock to 44 investors, at a purchase price of $0.01 per share, or aggregate proceeds of $38,000. These shares were issued in a series of transactions in reliance upon an exemption from the registration provisions of the Securities Act set forth in Section 4(a)(5) thereof and Regulation D promulgated thereunder for transactions not involving any public offering. The Registrant believes that the exemption was available because the offer and sale of the securities did not involve a public offering and because of the limited number of recipients, each of the purchaser’s representation of sophistication in financial matters, and his or her access to information concerning the Registrant. No underwriters were involved in the foregoing sales of securities.



All purchasers represented in writing that they acquired the securities for their own accounts. A legend was placed on the stock certificates stating that the securities have not been registered pursuant to the Securities Act and cannot be sold or otherwise transferred without an effective registration or an exemption therefrom, but may be sold pursuant to the exemption provided by Section 4(a)(1) of the Securities Act or Rule 144 of the Securities Act.



To mitigate the current lack of financial resources, on August 13, 2015, the Company filed a registration statement on Form S-1 with the Securities and Exchange Commission (“SEC”) to raise $350,000. The SEC declared the registration statement effective as of June 29, 2016.





|  
|--
|16
|  
|  



Issuer Purchases of Equity Securities



None.



Item 6. Selected Financial Data



As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.



Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operation.



The following discussion of our financial condition and results of operation should be read in conjunction with the financial statements and related notes that appear elsewhere in this report. This discussion contains forward-looking statements and information relating to our business that reflect our current views and assumptions with respect to future events and are subject to risks and uncertainties, including the risks in the section entitled Risk Factors beginning on page 10, that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.



These forward-looking statements speak only as of the date of this report. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, or achievements. Except as required by applicable law, including the securities laws of the United States, we expressly disclaim any obligation or undertaking to disseminate any update or revisions of any of the forward-looking statements to reflect any change in our expectations with regard thereto or to conform these statements to actual results. We are in a developmental stage. We have not generated any revenues to date. Our entire activity since our inception has been to launch our planned business and prepare for our proposed fundraising through an offering of our equity securities.



Overview



We aim to acquire ownership and other rights to discontinued consumer product brands, with the ultimate goal of reviving these products and commercializing them, based on an idea that nostalgia for such brands will be a powerful incentive to purchase among the senior population. We believe that many formerly popular brand names that were discontinued by their parent companies still resonate with the senior population and if so revived and made available in supermarkets and other retail establishments, would attract this population and others as consumers.



We are a newly established company and have limited operations. For the period from November 5, 2010 (Inception) to December 31, 2018, we have not generated any revenue and incurred net losses of $151,333. For the year ended December 31, 2018, we have generated net losses of $23,661. Due to the "early" nature of our business, we expect to incur losses as we expand. To date, our cash flow requirements have been met in part by an equity financing and debt. If we are unable to successfully generate sufficient profits or otherwise obtain additional funds for our working capital needs, we may need to cease or curtail operations. Furthermore, there is no assurance the net proceeds from any successful financing arrangement will be sufficient to cover cash requirements during the initial stages of our operations. For these reasons, our independent registered public accounting firm believes that there is substantial doubt that we will be able to continue as a going concern.



We will be unable to begin our proposed operations unless and until we obtain additional funds.





|  
|--
|17
|  
|  



JOBS Act



In April 2012, the JOBS Act was enacted. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. Thus, an emerging growth company can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to avail ourselves of this extended transition period and, as a result, we will adopt new or revised accounting standards on the relevant dates on which adoption of such standards is required for private companies.



Business Activities to Date



As of the date of this Report on Form 10-K, we have spent time researching our proposed business and identifying potential product acquisitions. We intend to purchase rights to, and develop, our website at the following address: www.nostalgiafamilybrands.com.



Results of Operations



We have not generated any revenues since our inception on November 5, 2010.



For the year ended December 31, 2018, our operating expenses were primarily comprised of selling, general and administrative expenses, professional fees, and interest expenses of $23,661.



For the year ended December 31, 2017, our operating expenses were primarily comprised of selling, general and administrative expenses and professional fees of $6,589.



Our total assets as of December 31, 2018 are $9,300, consisting entirely of a prepaid expense.



Known Trends and Uncertainties



The success of our business plan is dependent, among other things, on our ability to identify, acquire, commercialize, market and sell discontinued consumer product brands. Our business will fail if we cannot successfully implement our business plan, or successfully market our planned products. Additionally, if our views on the strength of nostalgia as a driver for sales of consumer products is erroneous, our financial condition and results of operations would likely suffer. See “Risk Factors–Risks Related to our Business.”



Liquidity and Capital Resources



We are a newly established company with limited operating history. There is a limited operating history by which to evaluate the likelihood of our success or our ability to continue as a going concern. To date, we have not generated any revenues. We will require additional funding in order to continue operations for the next 12 months. If we do complete the implementation of our business plan, we may nevertheless not be able to generate sufficient revenues to become profitable, and will likely need additional funding to continue operations. We may never secure any additional funding necessary to continue our operations. On August 13, 2015 we filed with the Securities Exchange Commission a registration statement on Form S-1 to raise $350,000, which was declared effective as of June 29, 2016. If we need additional funds, we may seek to obtain additional funds through additional private placement(s) of equity or debt. We have no other financing plans at this time.



Going Concern Consideration



The report of our independent registered public accounting firm expresses concern about our ability to continue as a going concern based upon the absence of an established source of revenue, recurring losses from operations, and our need for additional financing in order to fund our operations.





|  
|--
|18
|  
|  



Recently Issued Accounting Pronouncements



The Company does not expect the adoption of any recent accounting standards to have a material impact on its financial statements.



Off-Balance Sheet Arrangements



We have no off-balance sheet arrangements.



Contractual Obligations



As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.



Item 7A. Quantitative and Qualitative Disclosures about Market Risk.



As a “smaller reporting company” as defined by Item 10 of Regulation S-K, the Company is not required to provide this information.



Item 8. Financial Statements and Supplementary Data.



Our financial statements begin immediately after the signature page.



Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.



On November 14, 2018, the Company accepted the resignation of GBH and engaged Marcum LLP (“Marcum”) as its independent registered public accountants. This change occurred in connection with GBH, the Company’s prior independent public accountants, resigning as a result of GBH combining with Marcum effective July 1, 2018. The engagement of Marcum has been approved by the Company’s Board of Directors.



There are not and have not been any disagreements between the Company and its accountants on any matter of accounting principles, practices or financial statement disclosure.



Item 9A. Controls and Procedures.



Evaluation of Disclosure Controls and Procedures



The Company’s management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.



In accordance with Exchange Act Rules 13a-15 and 15d-15, an evaluation was completed by the Company’s management, with the participation of the Company’s President and Chief Executive Officer and Chief Financial Officer. The Company’s management evaluated the effectiveness of the design and operation of the Company’s disclosure controls and procedures as of the end of the periods covered by this quarterly report. Based on that evaluation, the Company’s management concluded that the Company’s disclosure controls and procedures were not effective to ensure that information required to be disclosed by the Company in the reports that the Company files or submits under the Exchange Act, is recorded, processed, summarized and reported, within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s management, including the Company’s CEO, to allow timely decisions regarding required disclosure for the reasons discussed below. However, because of the Company’s lack of financial resources, the Company has been delinquent in its Exchange Act filings.





|  
|--
|19
|  
|  



Management’s Annual Report on Internal Control Over Financial Reporting



The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting for the Company. Our internal control system was designed to, in general, provide reasonable assurance to the Company’s management and board regarding the preparation and fair presentation of published financial statements, but 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.



Our management assessed the effectiveness of the Company’s internal control over financial reporting as of December 31, 2018. The framework used by management in making that assessment was the criteria set forth in the document entitled “Internal Control – Integrated Framework 2013” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on that assessment, our Chief Executive Officer and Chief Financial Officer has determined and concluded that, as of December 31, 2018, the Company’s internal control over financial reporting were not effective.



A material weakness is a deficiency, or a 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. In its assessment of the effectiveness of internal control our financial reporting as of December 31, 2018, the Company determined that the following items constituted a material weakness:





| | · | The financial statements prepared by the Company were not complete and did not include all of the disclosures required by generally accepted accounting principles.
| | - | -------------------------------------------------------------------------------------------------------------------------------------------------------------------
| |   |                                                                                                                                                                    
| | · | Certain material transactions were not recorded in the general ledger.                                                                                             
| |   |                                                                                                                                                                    
| | · | Lack of a functioning audit committee.                                                                                                                             



Management believes that the appointment of one or more outside directors, who shall be appointed to a fully functioning audit committee, will remedy the lack of a functioning audit committee and a lack of a majority of outside directors on our Board. Management plans to take action and implementing improvements to our controls and procedures when our financial position permits.



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 the permanent exemption of the Securities and Exchange Commission that permit the Company to provide only management’s report in this annual report.



Changes in Internal Controls over Financial Reporting



There have been no significant changes to the Company’s internal controls over financial reporting that occurred during our fiscal years ended December 31, 2018, and 2017 that materially affected, or were reasonably likely to materially affect, our internal controls over financial reporting.



Item 9B. Other Information.



Not applicable.





|  
|--
|20
|  
|  



PART III



Item 10. Directors, Executive Officers and Corporate Governance



A. Identification of Directors and Officers.



Our Board of Directors consists of Mr. William McDermitt who is also our Chief Executive Officer and President.



Our present executive officers and directors, their ages and present positions are as follows:



|Name                 |  | Age |  | Position(s)                                           
|-------------------- |  | --- |  | ------------------------------------------------------
|                     |  |     |  |                                                       
|William P. McDermitt |  | 91  |  | Chief Executive Officer, President and Director       
|                     |  |     |  |                                                       
|Edward O’Donnell     |  | 54  |  | Chief Financial Officer, Vice President, and Secretary



Biographical Information for William P. McDermitt and Edward O’Donnell



William P. McDermitt has served as Chief Executive Officer, President and Director since shortly after the formation of the Company. Mr. McDermitt has had a long and varied career in marketing and advertising of food and personal products, starting as a sales representative in 1953 for Proctor & Gamble selling case foods to supermarket chains. He has held positions since then at the Drug Research Corporation selling drug products to wholesalers and chain drug stores in 11 western states, from 1957 to 1959; Young & Rubicam Advertising Agency as an account manager of personal products and baby products for Johnson & Johnson, from 1960 to 1969; and with consumer magazines in advertising sales management positions including The New York Times Magazine, Ladies’ Home Journal and McCall’s, selling major corporations on advertising their brands in the publications, from 1970 to 1997. Accounts have included General Foods, Johnson & Johnson, Bristol Myers, S.C. Johnson Co. and General Mills. Since stepping down from his sales management position at McCall’s Magazine in 1997, Mr. McDermitt has been active as a volunteer at Riverview Hospital in Red Bank, New Jersey. Mr. McDermitt holds a Bachelor of Science degree in Marketing from the New York University School of Commerce. We believe that Mr. McDermitt’s extensive experience makes him qualified to serve as our Chief Executive Officer, President and Director.



Edward O’Donnell has served as Chief Financial Officer, Vice President and Secretary since shortly after the formation of the Company. Mr. O’Donnell has over 23 years of experience in investment banking, advertising, private equity, investment, venture capital, technology, internet and other new media businesses. Prior to joining the Company, Mr. O’Donnell served as the Chief Financial Officer of Ameri Holdings, Inc. (OTC: AMRH) from January 2016 through December 2016. Mr. O’Donnell has served as the Chief Operating Officer of Radbourne Property Group, Inc., an innovative operator of family entertainment centers, where his primary responsibilities included raising capital, external reporting, outlining capital structure and budgeting. From February 2013 until April 2015, Mr. O’Donnell served as chief financial officer of AudioEye, Inc. (OTC: AEYE) From December 2010 until January 2013, Mr. O’Donnell served as Vice President of Finance for Augme Technologies, Inc. (Previously OTC: AUGT), which provides strategic services and mobile marketing technology to leading consumer and healthcare brands. From January 2007 until November 2010, Mr. O’Donnell served as Chief Financial Officer of Carlyle Capital Group LLC, a venture capital and private equity firm. Previously, Mr. O’Donnell also served as Senior Vice President of Finance & Investor Relations of ACTV, Inc. (previously NASDAQ: IATV), where he developed the investor relations department before the company was purchased by OpenTV, a subsidiary of Liberty Media. Mr. O’Donnell is a Certified Public Accountant in New York and a member of NYSSCPAs and AICPA. Mr. O’Donnell earned a B.S, degree in Accountancy from Villanova University in 1991 and an M.B.A. from Columbia Business School in 2003. We believe that Mr. O’Donnell’s extensive education and background in accounting and finance makes him qualified to serve as our Chief Financial Officer and Vice President.



Our Bylaws provide that the Board of Directors will consist of at least one member and that our stockholders will determine the number of directors from time to time. Each director will serve for a term which will expire upon the next annual meeting of stockholders. Each director will hold office until such time as the director’s successor, if any, has been elected and qualified, or until the earlier of his resignation, removal from office, or death.





|  
|--
|21
|  
|  



B. Significant Employees.



As of the date hereof, the Company has no significant employees other than our executive officers, neither of whom are expected to be full-time employees.



C. Family Relationships.



There are no family relationships among directors, executive officers, or persons nominated or chosen by the issuer to become directors or executive officers.



D. Involvement in Certain Legal Proceedings.



A claim against the Company was served on January 17, 2014 by Vintage Filings PR Newswire in the Superior Court of New Jersey for approximately $5,900 related to services rendered in 2012. The claim was settled in April 2014 for $6,084, including fees, which is included in accounts payable and accrued expenses in the accompanying balance sheets. As of June 30, 2016, $500.00 was paid by CUBBO, Inc. with respect to the judgment. The plaintiff initially agreed to defer taking action to enforce the judgment; however, the time frame which the plaintiff initially agreed upon has expired. The Company intends to negotiate an extension, which the Company believes shall be sufficient time to complete raising $350,000 in a private offering pursuant to the Form S-1, which went effective on June 29, 2016.



Code of Ethics



None.



Committees of the Board of Directors



We do not have a separate audit committee, compensation committee, nominating committee, executive committee or any other committees.



The Board of Directors acts as the audit committee and oversees matters with respect to compensation and nominations of directors. The Company does not have a qualified financial expert at this time.



Item 11. Executive Compensation.



We have not paid our officers since our inception, nor do we owe, any compensation to our officers. We have not entered into any arrangements or employment agreements with either of William McDermitt or Edward O’Donnell pursuant to which either of them will be compensated now, or in the future for any services provided to us as an executive officer, and we do not anticipate entering into any such arrangements or agreements until such time as we become profitable.



We do not currently have a stock option plan or any long-term incentive plans that provide compensation intended to serve as an incentive for performance. No individual grants of stock options or other equity incentive awards have been made to our officers and sole director since our inception.



There are currently no employment or other contracts or arrangements with our officers. There are no compensation plans or arrangements, including, but not limited to, payments to be made by us, with respect to our officers and sole director that would result from the resignation, retirement or any other termination of such person. There are no arrangements for sole director which would result from a change-in-control.





|  
|--
|22
|  
|  



Director Compensation



We have not compensated our sole director for his service on our Board of Directors since our inception. There are no arrangements pursuant to which directors will be compensated in the future for any services provided as a director.



Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.



The following table sets forth information regarding the beneficial ownership of our capital stock as of December 31, 2018 with respect to:



| | · | each person known to us to own beneficially more than 5% of any class of our outstanding shares;
| | - | ------------------------------------------------------------------------------------------------
| |   |                                                                                                 
| | · | each of our named executive officers;                                                           
| |   |                                                                                                 
| | · | our sole director; and                                                                          
| |   |                                                                                                 
| | · | our sole director and all of our executive officers as a group.                                 



In accordance with the rules and regulations of the SEC, beneficial ownership includes voting or investment power with respect to securities. We have a convertible note in the principal amount of $50,000 outstanding, the principal and interest of which can be converted into shares of common stock at a purchase price of $0.10 per share. To our knowledge, except pursuant to applicable community property laws, the persons named in the table have sole voting and investment power with respect to all shares of our common stock. The address for each stockholder listed below is c/o Nostalgia Family Brands, Inc., 20 Pape Drive, Atlantic Highlands, New Jersey 07716.



|Beneficial Owner                                               |  | Number of SharesBeneficiallyOwned |         |  | Percent of Shares Beneficially Owned | 
|-------------------------------------------------------------- |  | --------------------------------- | ------- |  | ------------------------------------ | 
|William P. McDermitt, Director and Officer                     |  |                                   | 500,000 |  |                                      | 
|Edward O’Donnell, Officer                                      |  |                                   | 100,000 |  |                                      | 
|All executive officers and sole director as a group (2 people) |  |                                   | 600,000 |  |                                      | 



Item 13. Certain Relationships and Related Transactions.



We have not entered into any other transaction, nor are there any proposed transactions, in which our executive officers and our sole director, or any significant stockholder, or any member of the immediate family of any of the foregoing, had or is to have a direct or indirect material interest.





|  
|--
|23
|  
|  



DISCLOSURE OF COMMISSION POSITION



Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers or persons controlling the registrant, the registrant has been informed that in the opinion of the Securities and Exchange Commission, such indemnification is against public policy as expressed in the Act and is therefore unenforceable.



Item 14. Principal Accounting Fees and Services.



Marcum LLP is our independent registered public accounting firm. On November 14, 2018, the Company accepted the resignation of GBH and engaged Marcum LLP (“Marcum”) as its independent registered public accountants. This change occurred in connection with GBH, the Company’s prior independent public accountants, resigning as a result of GBH combining with Marcum effective July 1, 2018. The engagement of Marcum has been approved by the Company’s Board of Directors.



Audit Fees



Audit fees represent the aggregate fees for professional services for the audit of our annual and quarterly financial statements. For the years ended December 31, 2018, and 2017, we were billed approximately $16,500, and $1,500, respectively.



Tax Fees



For the years ended December 31, 2018, and 2017, we paid $0 and $0, respectively for tax fees.



All Other Fees.



For the years ended December 31, 2018, and 2017, we paid $0 and $0, respectively for all other fees.



24

PART IV



Item 15. Exhibits, Financial Statement Schedules.



| | (a) | Exhibits:
| | --- | ---------





|        |  |                                                                                                        |  |                |  | Incorporated by reference |  |              
|------- |  | ------------------------------------------------------------------------------------------------------ |  | -------------- |  | ------------------------- |  | -------------
|Exhibit |  | Exhibit Description                                                                                    |  | Filed herewith |  | Form                      |  | Period ending
|        |  |                                                                                                        |  |                |  |                           |  |              
|3.1     |  | Certificate of Incorporation                                                                           |  |                |  | S-1                       |  |              
|        |  |                                                                                                        |  |                |  |                           |  |              
|3.2     |  | By-Laws                                                                                                |  |                |  | S-1                       |  |              
|        |  |                                                                                                        |  |                |  |                           |  |              
|31.1    |  | Certifications of the Chief Executive Officer pursuant to Section 302 of the SarbanesOxley Act of 2002 |  | x              |  |                           |  |              
|        |  |                                                                                                        |  |                |  |                           |  |              
|31.2    |  | Certifications of the Chief Financial Officer pursuant to Section 302 of the SarbanesOxley Act of 2002 |  | x              |  |                           |  |              
|        |  |                                                                                                        |  |                |  |                           |  |              
|32.1    |  | Certifications of the Chief Executive Officer pursuant to Section 906 of the SarbanesOxley Act of 2002 |  | x              |  |                           |  |              
|        |  |                                                                                                        |  |                |  |                           |  |              
|32.2    |  | Certifications of the Chief Financial Officer pursuant to Section 906 of the SarbanesOxley Act of 2002 |  | x              |  |                           |  |              



(b) The following documents are filed as part of the report:



1. Financial Statements: Balance Sheet, Statement of Operations, Statement of Stockholder’s Equity, Statement of Cash Flows, and Notes to Financial Statements.





|  
|--
|25
|  
|  



SIGNATURES



In accordance with the requirements of the Exchange Act, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.



|                         | NOSTALGIA FAMILY BRANDS, INC. |                                                            
|------------------------ | ----------------------------- | -----------------------------------------------------------
|                         |                               |                                                            
|Dated: February 11, 2020 | By:                           | */s/ William P. McDermitt*                                 
|                         |                               | William P. McDermitt,                                      
|                         |                               | President and Chief Executive Officer                      
|                         |                               |                                                            
|                         | By:                           | */s/ Edward O’Donnell*                                     
|                         |                               | Edward O’Donnell,Vice President and Chief Financial Officer



In accordance with Section 13 or 15(d) of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



|Name                       |  | Title                                 |  | Date              | 
|-------------------------- |  | ------------------------------------- |  | ----------------- | 
|                           |  |                                       |  |                   | 
|*/s/ William P. McDermitt* |  | President and Chief Executive Officer |  | February 11, 2020 | 
|William P. McDermitt       |  |                                       |  |                   | 



|Name                   |  | Title                                      |  | Date              | 
|---------------------- |  | ------------------------------------------ |  | ----------------- | 
|                       |  |                                            |  |                   | 
|*/s/ Edward O’Donnell* |  | Vice President and Chief Financial Officer |  | February 11, 2020 | 
|Edward O’Donnell       |  |                                            |  |                   | 





|  
|--
|26
|  
|  



NOSTALGIA FAMILY BRANDS, INC.



INDEX TO FINANCIAL STATEMENTS

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017





|                                                        |  | PAGE | 
|------------------------------------------------------- |  | ---- | 
|                                                        |  |      | 
|REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |  | F-2  | 
|                                                        |  |      | 
|Balance Sheets                                          |  | F-3  | 
|                                                        |  |      | 
|Statements of Operations                                |  | F-4  | 
|                                                        |  |      | 
|Statements of Changes in Stockholders’ Deficit          |  | F-5  | 
|                                                        |  |      | 
|Statements of Cash Flows                                |  | F-6  | 
|                                                        |  |      | 
|NOTES TO FINANCIAL STATEMENTS                           |  | F-7  | 





|                 
|-----------------
|F-1              
|                 
|Table of Contents



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To the stockholders and the board of directors of

Nostalgia Family Brands, Inc.



Opinion on the Financial Statements



We have audited the accompanying balance sheet of Nostalgia Family Brands, Inc. (the “Company”) as of December 31, 2018 and 2017, the related statements of operations, changes in stockholders’ deficit, and cash flows for the year 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, 2018 and 2017, and the results of its operations and its cash flows for the year then ended, in conformity with accounting principles generally accepted in the United States of America.



Explanatory Paragraph – Going Concern



The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As more fully described in Note 3, the Company has the Company is subject to substantial risks and uncertainties of a new business and has not generated revenues since inception. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.



Basis for Opinion



These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company's 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 audit 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.



*/s/ Marcum LLP*



Marcum LLP

We have served as the Company's auditor since 2016.



Houston, Texas

January 24, 2020





|                 
|-----------------
|F-2              
|                 
|Table of Contents



NOSTALGIA FAMILY BRANDS, INC.

BALANCE SHEETS



|                 |  | December 31,2018 |       |  | December 31,2017 |  
|---------------- |  | ---------------- | ----- |  | ---------------- | -
|ASSETS           |  |                  |       |  |                  |  
|                 |  |                  |       |  |                  |  
|Current Assets:  |  |                  |       |  |                  |  
|Prepaid expenses |  | $                | 9,300 |  |                  | $
|TOTAL ASSETS     |  | $                | 9,300 |  |                  | $



|LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                                 |  |   |          |   |  |  
|----------------------------------------------------------------------------------------------------- |  | - | -------- | - |  | -
|                                                                                                      |  |   |          |   |  |  
|Current liabilities:                                                                                  |  |   |          |   |  |  
|Accounts payable and accrued expenses                                                                 |  | $ | 72,633   |   |  | $
|Convertible promissory note payable                                                                   |  |   | 50,000   |   |  |  
|                                                                                                      |  |   |          |   |  |  
|Total current liabilities                                                                             |  |   | 122,633  |   |  |  
|                                                                                                      |  |   |          |   |  |  
|Total current liabilities                                                                             |  |   | 122,633  |   |  |  
|                                                                                                      |  |   |          |   |  |  
|Stockholders’ deficit:                                                                                |  |   |          |   |  |  
|Common stock, $0.001 par value, 50,000,000 shares authorized; 3,800,000 shares issued and outstanding |  |   | 3,800    |   |  |  
|Additional paid-in capital                                                                            |  |   | 34,200   |   |  |  
|Accumulated deficit                                                                                   |  |   | (151,333 | ) |  |  
|                                                                                                      |  |   |          |   |  |  
|Total stockholders’ deficit                                                                           |  |   | (113,333 | ) |  |  
|                                                                                                      |  |   |          |   |  |  
|TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT                                                           |  | $ | 9,300    |   |  | $



See accompanying notes to financial statements



|                 
|-----------------
|F-3              
|                 
|Table of Contents



NOSTALGIA FAMILY BRANDS, INC.

STATEMENTS OF OPERATIONS



|                                                      |  | Year Ended December 31, |          
|----------------------------------------------------- |  | ----------------------- | ---------
|                                                      |  | 2018                    |          
|                                                      |  |                         |          
|Revenues                                              |  | $                       | -        
|                                                      |  |                         |          
|Operating losses and expenses:                        |  |                         |          
|Selling, general and administrative expenses          |  |                         | 19,661   
|Interest expense                                      |  |                         | 4,000    
|                                                      |  |                         |          
|Total operating expenses                              |  |                         | 23,661   
|                                                      |  |                         |          
|Net loss                                              |  | $                       | (23,661  
|                                                      |  |                         |          
|Loss per common share, basic and diluted              |  | $                       | (0.01    
|                                                      |  |                         |          
|Weighted average shares outstanding,basic and diluted |  |                         | 3,800,000



See accompanying notes to financial statements.





|                 
|-----------------
|F-4              
|                 
|Table of Contents



NOSTALGIA FAMILY BRANDS, INC.

STATEMENTS OF CHANGES IN STOCKHOLDERS’ DEFICIT

FOR THE YEARS ENDED DECEMBER 31, 2018 AND 2017



|                          |  | Common Stock |           |  | AdditionalPaid-in |   |       | Accumulated |  |   |         | 
|------------------------- |  | ------------ | --------- |  | ----------------- | - | ----- | ----------- |  | - | ------- | 
|                          |  | Shares       |           |  | Amount            |   |       | Capital     |  |   | Deficit | 
|                          |  |              |           |  |                   |   |       |             |  |   |         | 
|Balance-January 1, 2017   |  |              | 3,800,000 |  |                   | $ | 3,800 |             |  | $ | 34,200  | 
|Net loss                  |  |              | -         |  |                   |   | -     |             |  |   | -       | 
|                          |  |              |           |  |                   |   |       |             |  |   |         | 
|Balance-December 31, 2017 |  |              | 3,800,000 |  |                   |   | 3,800 |             |  |   | 34,200  | 
|Net loss                  |  |              | -         |  |                   |   | -     |             |  |   | -       | 
|                          |  |              |           |  |                   |   |       |             |  |   |         | 
|Balance-December 31, 2018 |  |              | 3,800,000 |  |                   | $ | 3,800 |             |  | $ | 34,200  | 



See accompanying notes to financial statements.





|                 
|-----------------
|F-5              
|                 
|Table of Contents



NOSTALGIA FAMILY BRANDS, INC.

STATEMENTS OF CASH FLOWS



|                                                                                         |  | Year Ended December 31, |        
|---------------------------------------------------------------------------------------- |  | ----------------------- | -------
|                                                                                         |  | 2018                    |        
|                                                                                         |  |                         |        
|Cash flows from operating activities:                                                    |  |                         |        
|Net loss                                                                                 |  | $                       | (23,661
|Adjustments to reconcile net loss to net cash provided by (used in) operating activities |  |                         |        
|Change in operating assets and liabilities:                                              |  |                         |        
|Decrease in prepaid expenses                                                             |  |                         | 6,000  
|Increase in accounts payable and accrued expenses                                        |  |                         | 17,661 
|                                                                                         |  |                         |        
|Net cash (used in) provided by operating activities                                      |  |                         | -      
|                                                                                         |  |                         |        
|Net change in cash and cash equivalents                                                  |  |                         | -      
|Cash and cash equivalents, beginning of year                                             |  |                         | -      
|                                                                                         |  |                         |        
|Cash and cash equivalents, end of year                                                   |  | $                       | -      
|                                                                                         |  |                         |        
|Supplemental disclosure of cash flow information                                         |  |                         |        
|                                                                                         |  |                         |        
|Cash paid for income taxes                                                               |  | $                       | -      
|                                                                                         |  |                         |        
|Cash paid for interest                                                                   |  | $                       | -      



See accompanying notes to financial statements.





|                 
|-----------------
|F-6              
|                 
|Table of Contents

NOSTALGIA FAMILY BRANDS, INC.

NOTES TO FINANCIAL STATEMENTS



1.GENERAL



Organization and Business Nature



Nostalgia Family Brands, Inc. (the “Company”) is a Delaware Corporation organized on November 5, 2010 and began developing its plan of operations during the first quarter 2011. The Company aims to develop the web site “nostalgiafamilybrands.com”. The Company’s business model consists of plans to manufacture products that had been popular in the 1950’s and 1960’s and perhaps other decades, but have been discontinued. The specific product categories include candy, food and personal hygiene products. Examples of the proposed products include: Bit-O-Licorice, Hollywood Candy Bars, Hydrox Cookies, Puffa Puffa Rice Cereal, Chipso Laundry Soap and Stopette Deodorant. These items represent some of the products that the older generations enjoyed that the Company intends to target to make available once again at retail supermarkets and drug stores.



The Company has not generated any revenues from operations and can give no assurance of any future revenues. The Company will require substantial additional funding to initiate and develop its operations. There is no assurance that the Company will be able to obtain sufficient additional funds when needed, or that such funds, if available, will be obtainable on terms satisfactory to the Company.



2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES



Basis of Accounting and Presentation



The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (the “SEC”). In the opinion of management, such information contains all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results for the periods presented.



Cash and Cash Equivalents



The Company considers all liquid investments with an original maturity of three months or less that are readily convertible into cash to be cash equivalents.



Revenue Recognition



All sources of revenue will be recorded pursuant to FASB ASC 605, Revenue Recognition, when persuasive evidence of arrangement exists, delivery has occurred, the fee is fixed or determinable and collectability is reasonably assured.



Convertible Debt



The Company records a beneficial conversion feature (“BCF”) related to the issuance of convertible debt that has conversion features at fixed or adjustable rates that are in-the-money when issued. The BCF for the convertible instruments, if any, is recognized and measured as a reduction to the carrying amount of the convertible instrument equal to the relative fair value of the conversion features, which is credited to additional paid-in-capital.





|                 
|-----------------
|F-7              
|                 
|Table of Contents



Income Taxes



The Company recognizes deferred income taxes for differences between the basis of assets and liabilities for financial statement and income tax purposes. Deferred tax assets and liabilities represent the future tax consequences for those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. Deferred taxes are also recognized for operating losses that are available to offset future taxable income. A valuation allowance is established when necessary to reduce deferred tax assets to the amount expected to be realized.



The provisions prescribe a recognition threshold and measurement attribute for the recognition and measurement of tax positions taken or expected to be taken in income tax returns and require that uncertain tax positions are evaluated in a two-step process. The Company does not have any uncertain tax positions.



Use of Estimates



The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain 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.



Earnings (Loss) per Share



Basic earnings (loss) per common share is computed by dividing the amount available to common stockholders by the weighted average number of shares of common stock outstanding during the period. Diluted income per share includes the effect of dilutive common stock equivalents from the assumed exercise of options, warrants, convertible preferred stock and convertible notes. The Company’s common stock equivalents were excluded in the computation of diluted net (loss) per share since their inclusion would be anti-dilutive. There are no dilutive securities issued for the periods presented in the accompanying financial statements.



Subsequent Events



The Company has evaluated all transactions through the financial statement issuance date for subsequent event disclosure consideration.



Recent Accounting Pronouncements



The Company does not expect the adoption of any recent accounting standards to have a material impact on its financial statements.



3. GOING CONCERN



The Company’s financial statements have been presented on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company is subject to the substantial business risks and uncertainties inherent to such an entity, including the potential risk of business failure. The Company has not generated any revenues since inception. While the Company is attempting to commence operations and generate revenues, the Company continues to be reliant upon its stockholders to support its daily operations. This raises substantial doubt about the Company’s ability to continue as a going concern.



While the Company believes in its ability to raise additional funds and the viability of its strategy, there can be no assurances that they will be successful. The Company’s ability to continue as a going concern is dependent upon the continued financial support from its stockholders and its ability to obtain the necessary equity or debt financing and eventually attain profitable operations.



The financial statements do not include any adjustments that might be necessary if the Company be unable to continue as a going concern.





|                 
|-----------------
|F-8              
|                 
|Table of Contents



4. PREPAID EXPENSES



The Company entered into an unwritten management consulting relationship with CUBBO, Inc., which required the prepayment of fees. Prepaid expenses at December 31, 2018 represent a prepayment of $9,300 to CUBBO, Inc. for consulting services to be rendered in the future. CUBBO, Inc. performs various administrative functions.



5. CONVERTIBLE PROMISSORY NOTE



On December 14, 2012, the Company issued a non-interest bearing convertible promissory note to a third party in the principal amount of $50,000, maturing on December 31, 2015. In the event of default, interest shall accrue on the outstanding principal amount at a rate of 8% per annum. The holder of the note is entitled to convert all or a portion of the convertible note plus accrued interest, if any, at the lender’s sole option, into shares of common stock at a conversion price of $0.10 per share. On November 10, 2014, the third party assigned the note to another third party, and the maturity date of the convertible promissory note was extended to December 31, 2019. During the year ended December 31, 2018, the Company accrued interest expense of $4,000.



6. INCOME TAXES



The Company has not filed its federal and state tax returns since 2012. The Net operating losses (“NOLs”) for these years will not be available to reduce future taxable income until the returns are filed. Assuming these returns are filed, as of December 31, 2018, the Company had approximately $150,000 of federal and state net operating losses that may be available to offset future taxable income. At December 31, 2018 and 2017, the Company has established full valuation allowances against its deferred tax assets, principally for operating losses, due to the uncertainty in realizing their benefits. At December 31, 2018, the Company had approximately $150,000 of unused operating losses expiring beginning 2030 through 2038.



The Company is in the process of preparing and filing its federal income tax returns for the years ended December 31, 2018, 2017, 2016, 2015, 2014, 2013, and 2012.



7. UNSETTLED ACTION



A claim against the Company was served on January 17, 2014 by Vintage Filings PR Newswire in the Superior Court of New Jersey for approximately $5,900 related to services rendered in 2012. The claim was settled in April 2014 for $6,084, including fees, which is included in accounts payable and accrued expenses in the accompanying balance sheets. In September 2014, $500 was paid by CUBBO, Inc. with respect to the judgment. The plaintiff initially agreed to defer taking action to enforce the judgment; however, the time frame which the plaintiff initially agreed upon has expired.





|   
|---
|F-9