# EDGAR Filing Document

**Accession Number:** 0001832161
**File Stem:** 0001393905-23-000054
**Filing Date:** 2023-2
**Character Count:** 21389
**Document Hash:** a0c88866ed87b7b6dacfde41c6160af3
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001393905-23-000054.hdr.sgml**: 20230210

**ACCESSION NUMBER**: 0001393905-23-000054

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 15

**CONFORMED PERIOD OF REPORT**: 20230206

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230210

**DATE AS OF CHANGE**: 20230210

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** KeyStar Corp.
- **CENTRAL INDEX KEY:** 0001832161
- **STANDARD INDUSTRIAL CLASSIFICATION:** RETAIL-MISCELLANEOUS RETAIL [5900]
- **IRS NUMBER:** 850738656
- **STATE OF INCORPORATION:** NV
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-56290
- **FILM NUMBER:** 23610381

**BUSINESS ADDRESS:**
- **STREET 1:** 78 SW 7TH STREET, SUITE 800
- **CITY:** MIAMI
- **STATE:** FL
- **ZIP:** 33130
- **BUSINESS PHONE:** 866-783-9435

**MAIL ADDRESS:**
- **STREET 1:** 78 SW 7TH STREET, SUITE 800
- **CITY:** MIAMI
- **STATE:** FL
- **ZIP:** 33130

?xml version='1.0' encoding='us-ascii' standalone='no'? KeyStar Corp. - Form 8-K SEC filing

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**____________________**

**FORM 8-K**

**CURRENT REPORT**

**PURSUANT TO SECTION 13 OR 15(d) OF**

**THE SECURITIES EXCHANGE ACT OF 1934**

Date of Report (Date of earliest event reported): February 6, 2023

**KeyStar Corp.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| **Nevada** | **333-252983** | **85-0738656** |
| (State or other jurisdiction of<br> incorporation) | (Commission File Number) | (I.R.S. Employer<br> Identification No.) |

---

---

| | |
|:---|:---|
| **78 SW 7th Street, Suite 800**<br> **Miami, FL** | **33130** |
| (Address of principal executive offices) | (Zip Code) |

---

Registrant's telephone number, including area code: **(866) 783-9435**

**9620 Las Vegas Blvd. S STE E4-98, Las Vegas, NV 89123**

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐Written communications pursuant to Rule 425 under the Securities Act (17CFR 230.425)

☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: None.

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☒

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. ☐

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**Item 1.01** **Entry into a Material Definitive Agreement.**

The disclosures set forth in Item 5.02 are incorporated by reference into this Item 1.01

**Item 5.02** **Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.**

**Amendment of Officer's Compensation**

On January 10, 2023, the Board appointed Mark Thomas ("**Thomas**") as the new Chief Executive Officer, Principal Executive Officer, President and Chief Technology Officer of the Company. In lieu of an employment agreement, Thomas received a written offer letter (the "**Offer**") that stated he will receive an annual salary of $380,000, and he is eligible to participate in the Company's benefit plans. The Offer also stated that by February 1, 2023, the Board will set milestones for incentive compensation (in either annual salary increases or bonuses) in such amounts that, if all of the milestones are met, Thomas' total annual compensation will reach $500,000 or more (the "**Incentive Compensation**"). On February 6, 2023, we entered into a supplement to the Offer (the "**Supplement**") with Thomas that sets forth the following terms and conditions relating to the Incentive Compensation.

Within 60 calendar days after we have $1,000,000 or more in gross gaming revenue (defined as sports betting handle minus pass through betting wins, plus betting fees), the Board (or its compensation committee, if any) will engage at least two executive compensation consultants to provide reports to the Board regarding compensation of Chief Executive Officers of comparable companies. The Board will timely review and consider such reports in determining potential adjustments to Thomas' annual salary. Any adjustments will be at the Board's sole discretion.

In the event that we receive a sports betting license (or equivalent) in the State of Tennessee, within 30 days after the issue date, Thomas will receive a cash bonus of $50,000.00.

For the next 24 months, in each event that we receive a sports betting license (or equivalent) in a new jurisdiction (other than the State of Tennessee), within 30 days after the issue date, Thomas will receive a cash bonus in an amount equal to the lesser of: (i) $100,000; or (ii) the product of 0.01% multiplied by the subject jurisdiction's trailing 12-month sports betting handle (using the most recent 12 months reported by Legal Sports Report which currently posts such data at www.legalsportsreport.com/sports-betting/revenue/). After the 24-month period, the Board (or its compensation committee, if any) will review and consider an extension or adjustment to this bonus structure. Any extensions or adjustments will be at the Board's sole discretion.

If our net loss for our 2022-2023 fiscal year, as determined by our Chief Financial Officer, is less than $6,197,719, Thomas will be eligible for a cash bonus in an amount equal to 8% of the difference of the actual net loss minus and $6,197,719. The cash bonus will be due within 30 days after the determination of the 2022-2023 fiscal year net loss.

If Thomas' employment is terminated without "cause," provided that he executes and returns a general release of claims to us (in a form reasonably acceptable to us), he will be entitled to a severance through continued payments of his current annual base salary of $380,000 for 6 months. A change to Thomas's title(s) or responsibilities will not constitute a termination without "cause' if he is offered continued employment in a different role unless the continued employment is offered at a lower annual base salary or unless he is asked to permanently relocate outside of the Miami metro area for work. The Supplement defines "cause" as: (i) gross negligence, recklessness, intentional misrepresentation or willful misconduct by Thomas in the performance of his duties; (ii) the commission by Thomas of any act of fraud, embezzlement, theft or other financial dishonesty, or of any felony, or to any crime involving moral turpitude; (iii) the breach by Thomas of his Employment Conditions Agreement (or any other replacement agreement); (iv) Thomas' material violation of state or federal law relating to sexual harassment or other prohibited harassment or discrimination; or (v) Thomas' failure to comply with any policy of the Company of which he had notice.

The foregoing summary of the Supplement is qualified in its entirety by reference to the full text of the Supplement which is attached as Exhibit 10.1 hereto, and is incorporated by reference herein. ***You are urged to read said exhibit attached hereto in its entirety***.

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**Item 7.01** **Regulation FD Disclosure.**

On February 10, 2023, we issued a press release regarding submittal of a sports betting license application with the State of Tennessee. A copy of the press release is furnished as Exhibit 99.1 hereto and is incorporated by reference herein.

The information in this report furnished pursuant to this Item 7.01 and the press release furnished as Exhibit 99.1 shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. The furnishing of the information in this report is not intended to, and does not, constitute a representation that such furnishing is required by Regulation FD or that the information contained in this report constitutes material investor information that is not otherwise publicly available.

Forward-Looking Statements

This report, including the exhibits furnished herewith, contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements typically are identified by use of terms such as "may," "will," "should," "plan," "expect," "anticipate," "estimate" and similar words, and the opposites of such words, although some forward-looking statements are expressed differently. Forward-looking statements involve known and unknown risks and uncertainties that exist in the Company's operations and business environment, which may be beyond the Company's control, and which may cause actual results, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be forward- looking statements. For example, forward-looking statements include, without limitation: statements regarding prospects for additional customers; market forecasts; projections of earnings, revenues, synergies, accretion or other financial information; and plans, strategies and objectives of management for future operations. The risks and uncertainties referred to above include, but are not limited to, risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended June 30, 2022. These risks could cause actual results to differ materially from those expressed in any forward- looking statements made by, or on behalf of, the Company. Forward-looking statements represent the judgment of management of the Company regarding future events. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable at the time that they are made, the Company can give no assurance that such expectations will prove to be correct. Unless otherwise required by applicable law, the Company assumes no obligation to update any forward-looking statements, and expressly disclaims any obligation to do so, whether as a result of new information, future events or otherwise

**Item 9.01** **Financial Statements and Exhibits.**

(d)Exhibits.

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| [10.1](keyr_ex101.htm) | Offer Letter Supplement between KeyStar Corp. and Mark Thomas, dated February 6, 2023 |
| [99.1](keyr_ex991.htm) | Press Release, dated February 10, 2023 |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

---

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | |
|:---|:---|
| Date: February 10, 2023 | **KEYSTAR CORP.** |
|  | By: */s/ Anthony J. Fidaleo* |
|  | Anthony J. Fidaleo, CFO |

---

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## Exhibit 10.1

**EXHIBIT 10.1**

------

**KEYSTAR CORP**

February 6, 2023

Mark Thomas

55 SE 6<sup>th</sup> Street, Apt. 4004

Miami, FL 33131

Re: Supplement to Offer of Promotion

Dear Mark:

This letter will serve as a supplement to the offer letter, dated January 10, 2023, which you received and accepted related to your promotion as the Chief Executive Officer of KeyStar Corp (the "Company"). On February 1, 2023, the Board of Directors of Company (the "Board") approved incentives that will be available to you during your employment as Chief Executive Officer. Below are the details:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Within 60 calendar days after the Company has $1,000,000 or more in Gross Gaming Revenue (defined as sports betting handle minus pass through betting wins, plus betting fees), the Board (or its Compensation Committee, if any) will engage at least two executive compensation consultants to provide reports to the Board regarding compensation of Chief Executive Officers of comparable companies. The Board will timely review and consider such reports in determining potential adjustments to your "Annual Salary." Any adjustments will be at the Board's sole discretion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.In the event that the Company receives a sports betting license (or equivalent) in the State of Tennessee, within 30 days after the issue date, you will receive a cash bonus of $50,000.00.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.For the next 24 months, in each event that Company receives a sports betting license (or equivalent) in a new jurisdiction (other than the State of Tennessee), within 30 days after the issue date, you will receive a cash bonus in an amount equal to the lesser of (a) $100,000, or (b) the product of 0.01% multiplied by the subject jurisdiction's trailing 12-month sports betting handle (using the most recent 12 months reported by Legal Sports Report ("LSR") which currently posts such data at www.legalsportsreport.com/sports-betting/revenue/).<sup>[<sup>1</sup>](#_ftnf1)</sup> After the 24-month period, the Board (or its Compensation Committee, if any) will review and consider an extension or adjustment to this bonus structure. Any extensions or adjustments will be at the Board's sole discretion.

------

<sup>[<sup>1</sup>](#_ftnb1)</sup> For reference, below is an example of the calculation of the cash bonus **if** a sports betting license was issued now for West Virginia. On February 2, 2023, the data posted by LSR included the sports handle figures for West Virginia for the months of September 2018 to December 2022. The sports handle reported for January 2022 to December 2022 are therefore the most recent reported 12-month trailing sports handle for West Virginia, and, according to LSR, the sports betting handle during that time totaled $568,918,911. Accordingly, if a sports betting license was issued now in West Virginia, the cash bonus would be $56,891.89 ($568,918,911 x 0.01%) which is below the $100,000 cap.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.If the net loss of Company for its 2022-2023 fiscal year, as determined by Company's Chief Financial Officer, is less than $6,197,719 (the "Benchmark"), you will be eligible for a cash bonus in an amount equal to 8% of the difference of the actual net loss minus the Benchmark.<sup>[<sup>2</sup>](#_ftnf2)</sup> The cash bonus will be due within 30 days after the determination of the 2022-2023 fiscal year net loss.

Further, if your employment with Company is terminated without "Cause," provided that you execute and return a general release of claims to Company (in a form reasonably acceptable to the Company), you will be entitled to a severance through continued payments of your current annual base salary of $380,000 ("Annual Base Salary") for 6 months. A change to your title(s) or responsibilities will not constitute a termination without "Cause" if you are offered continued employment in a different role unless the continued employment is offered at a lower Annual Base Salary or unless you are asked to permanently relocate outside of the Miami metro area for work. For purposes of this document, "Cause" means: (a) gross negligence, recklessness, intentional misrepresentation or willful misconduct by you in the performance of your duties; (b) the commission by you of any act of fraud, embezzlement, theft or other financial dishonesty, or of any felony, or to any crime involving moral turpitude; (c) the breach by you of your Employment Conditions Agreement (or any other replacement agreement); (d) your material violation of state or federal law relating to sexual harassment or other prohibited harassment or discrimination; or (e) your failure to comply with any Company policy of which you had notice.

All other terms and conditions of your employment will remain in effect. For example, your employment with Company will continue to be "at will."

No term or provision of this letter may be amended waived, released, discharged or modified except in writing, signed by you and the Chairman of Company except that, to the maximum permitted by law, Company may, in its sole discretion, adjust salaries, incentive compensation, stock plans, benefits, job titles, locations, duties, responsibilities, and reporting relationships.

Please indicate your acceptance of the supplemental terms detailed in this letter by signing below.

Sincerely,

/s/ Bruce Cassidy_________

Bruce Cassidy

KeyStar, Chairman

ACCEPTED AND AGREED TO:

/s/ Mark Thomas

Mark Thomas

Date: February 6, 2023

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<sup>[<sup>2</sup>](#_ftnb2)</sup> For reference, below is an example of the calculation of the "Benchmark" cash bonus if the actual net loss for the 2022-2023 fiscal year is a loss of $5,000,000. The difference from $5,000,000 in loss and the agreed to "Benchmark" of $6,197,719 in loss is $1,197,719. In this scenario, the "Benchmark" cash bonus would be $95,817.52 ($1,197,719 x 8%).

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## Exhibit 99.1

**KeyStar Corp. Officially Submits Tennessee Sports Wagering License Application For ZenSports**

*Sports wagering operator that offers traditional sports book plus peer-to-peer wagering submits Tennessee application.*

Miami, FL, February 10, 2023/*Newswire*/ -- KeyStar Corp<sup>®</sup> (OTC: KEYR) has announced the official submission of its sports wagering license application for ZenSports in the State of Tennessee.

ZenSports mobile platform offers a traditional sports book where customers can bet against the house, as well as a peer-to-peer sports betting marketplace. With ZenSports' peer-to-peer marketplace, customers can create their own bets with their own odds and terms. Peer-to-peer bets can be shared with friends or via the app's mobile two-sided marketplace, right from their phone.

KeyStar hopes to be approved for both its traditional sports book and its peer-to-peer wagering features, pursuant to the Tennessee Sports Gaming Act and the Sports Wagering Advisory Council rules.

"Tennessee is the perfect first state for us to launch ZenSports in," according to KeyStar CEO Mark Thomas. "Tennessee has demonstrated significant technology innovation and is one of the fastest growing states for sports wagering."

Tennessee processed $440.4M in sports betting handle and generated over $49M in revenue in December 2022 alone, putting Tennessee once again in the top 10 sports betting markets in the US.

ZenSports is available for download in the App Store (iOS) and the ZenSports website (Android or Mobile Web).

**Forward-Looking Statements**

This press release contains "forward-looking statements" within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "seek," "believe," "estimate," "expect," "strategy," "likely," "may," "should" and similar references to future events or periods.

Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements.

Any forward-looking statement made by us in this press release is based only on information currently available to us and speaks only as of the date on which it is made. We undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

________________________________________________________________________________

**For press inquiries, please contact:**

**KeyStar Corp.**

Mark Thomas

mark.thomas@keystarcorp.com