EDGAR 10-K Filing

Company CIK: 55234
Filing Year: 2021
Filename: 55234_10-K_2021_0001477932-21-005339.json

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ITEM 1. BUSINESS
ITEM 1 - DESCRIPTION OF BUSINESS
PART 1
THE COMPANY
Kenilworth Systems Corporation hereinafter referred to as “Kenilworth”, the “Company” or “we”, was incorporated on April 25, 1968 under the laws of the State of New York. Kenilworth has been a publicly traded Company since August 1968 formerly on the National NASDAQ Market, presently on the OTC Pink Sheet Market since emerging from Bankruptcy Proceedings in September 1998. Kenilworth has since been presented as a Development Stage Company, a designation we still ardently object to.
GENERAL
Since early in the year 2019 we have been solely engaged in developing patents, markets and investigating how best to obtain Governmental approvals, by engaging lobbyists and consultants that would allow Internet, television, satellite, cable subscribers.
Kenilworth Systems is a leader in developing state of the art software for corporate licensing relating to technological design fields. Kenilworth’s revenues will generate from its licenses and patents 49% interest in a joint-venture operation to develop on- line secure tools for its clients and vendors of clients.
EMPLOYEES
Kenilworth, at present, has no employees
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BACKLOG
We do not have any backlog.

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ITEM 1A. RISK FACTORS

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ITEM 1B. UNRESOLVED STAFF COMMENTS

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ITEM 2. PROPERTIES
ITEM 2 - PROPERTIES
Since the last filing Kenilworth has relocated the corporate offices to Daytona Beach, FL

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ITEM 3. LEGAL PROCEEDINGS
ITEM 3 - LEGAL PROCEEDINGS
Since exiting from Chapter 7 Bankruptcy Proceedings on September 23, 1998, Kenilworth has not been involved in any significant legal proceedings.

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ITEM 4. MINE SAFETY DISCLOSURE
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
Not applicable.
EXECUTIVE OFFICERS OF THE REGISTRANT
The names, ages and positions held by each of Kenilworth’s directors and executive officers are as follows:
NAME
AGE
OFFICES AND POSITIONS HELD
FIRST ELECTED OFFICER OF KENILWORTH
DAN W. SNYDER
CHAIRMAN OF THE BOARD, PRESIDENT AND CHIEF EXECUTIVE OFFICER
PETER ZOMPA
CORPORATE SECRETARY
All of the above Executive Officers and Directors have been elected to serve until the next Annual Meeting of Shareholders or until their respective successors are elected and qualified. The Board presently anticipates that the next Shareholders Meeting will be held during the3rd quarter period of 2021.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
ITEM 5 - MARKET PRICES OF THE COMPANY’S COMMON STOCK AND RELATED STOCKHOLDER MATTERS
(a) Kenilworth exited from Bankruptcy Proceedings in September of 1998, its Common Stock which had been trading on the NASDAQ National Market, is now trading on the OTC Pink Sheets under the old trading symbol KENS”. The following table sets forth high and low closing sales prices for our Common Stock, as reported on the OTC Pink Sheets.
LOW
HIGH
January 1, 2018
Through March 31, 2018
$ 0.05
0.125
April 1, 2018
Through June 30, 2018
$ 0.03
$ 0.05
July 1, 2009
Through September 30, 2018
$ 0.03
$ 0.03
October 1, 2009
Through December 31, 2018
$ 0.011
$ 0.012
LOW
HIGH
January 1, 2019
Through March 30, 2019
$ 0.015
$ 0.0161
April 1, 2019
Through June 30, 2019
$ 0.0161
$ 0.035
July 1, 2019
Through September 30, 2019
$ 0.0131
$ 0.03
October 1, 2019
Through December 31, 2019
$ 0.0071
$ 0.001
LOW
HIGH
January 1, 2020
Through March 31, 2020 $
0.0211
$ 0.065
April 1, 2020
Through June 30, 2020
$ 0.0211
$ 0.349
July 1, 2020
Through September 30, 2020
$ 0.04
$ 0.08
October 1, 2020
Through December 31, 2020
$ 0.012
$ 0.05
(b) Holders. There were approximately 2,587 registered holders of record of Common Stock plus an undetermined number of beneficial holders (in banks and brokerages) of Kenilworth as of December 31st, 2020.
(c) Dividends. Kenilworth has not paid any dividends on its Common Stock. We plan to apply any earnings it achieves to expansion of the business and do not expect to pay any dividends in the foreseeable future.
(d) No underwriters were involved in the sale of the unregistered Convertible Promissory Notes and Stock Purchase and Option Agreements. Exemption from registration is claimed under Section 4(2) of the SEC Act of 1933 as amended..
(e) The Company has outstanding 6,818,435 Common Shares. All the restricted shares may have the restriction lifted pursuant to new SEC Rule 144 B within six (6) months of acquisition which may substantially depress the trading price of the Company’s stock.

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ITEM 6. SELECTED FINANCIAL DATA
ITEM 6 - SELECTED FINANCIAL DATA
The following table summarizes certain selected financial data and is qualified by reference to, and should be read in conjunction with, the Financial Statements and related Notes thereto and with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included elsewhere herein.
Selected Financial Data for the three (3) years ended December 31, 2020, are as follows:
SUMMARY OF OPERATIONS
Net income/ (loss) from operations
$ (10,110 )
$ (21,608 )
$ (1,392 )
Other income / (loss)
$ -
$ -
$ 244,719
Net loss accumulated
$ (10,110 )
$ (21,608 )
$ (246,111 )
Loss per common share
$ (0.0015 )
$ (0.0032 )
$ (0.0361 )
Loss per common share - diluted
$ (0.0015 )
$ (0.0032 )
$ (0.0360 )
Consolidated balance sheet data:
Total current liabilities
$ -
$ -
$ -
Stockholders’ Equity (deficit)
$ 1,990
$ 12,000
$ 33,608

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
ITEM 7 - MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The discussion following should be read in conjunction with, and is qualified in its entirety by, the financial statements and the notes thereto included elsewhere in this Annual Report on Form 10-K.
(A) RESULTS OF OPERATIONS
Since we exited from bankruptcy proceedings on September 28, 1998, we have had no revenues from operations, and therefore sustained losses from operating expenses amounting to $21,608.26 in 2019 and $10,110.00 in 2020. Kenilworth has had no revenues from operations since exiting from Bankruptcy Proceedings in September 1998.
(B) LIQUIDITY AND CAPITAL RESOURCES
Kenilworth has not conducted any new business operations since 1991. In 2019 and 2020, the current audit shows stock dilution value of .0032 and.0015 respectively.
Presently Kenilworth Systems Corporation is a leader in developing state of the art software for corporate licensing relating to technological design fields. Kenilworth’s revenues will generate from its licenses and patents 49% interest in a joint-venture operation to develop online secure tools for its clients and vendors of clients.
CAUTIONARY STATEMENT FOR PURPOSES OF THE “SAFE HARBOR” PROVISIONS OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND RISK FACTORS
The information contained in this Form 10-K and Kenilworth’s other filings with the Securities Exchange Commission contain “forward-looking” statements within the meaning of section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and is subject to the safe harbors created thereby. Such information involves important risks and uncertainties.
Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 provides a “safe harbor” for forward-looking statements. Certain information included in this Annual Report on this Form 10-K contains statements that are forward-looking, including, but not limited to, statements relating to our business strategy and development activities as well as other capital spending, financing sources, the effects of regulation (including gaming and tax regulations), expectations concerning future operations, margins, profitability and competition. Any statements contained in this Form 10-K that are not statements of historical fact may be deemed to be forward- looking statements. Without limiting the generality of the foregoing, in some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “would,” “could,” “believe,” “expect,” “anticipate,” “estimate,” “intend,” “plan,” “continue” or the negative of these terms or other comparable terminology. Such forward-looking information involves important risks and uncertainties that could significantly affect anticipated results in the future and, accordingly, such results may differ from those expressed in any forward-looking statements made by us. These risks and uncertainties include, but are not limited to, our lack of recent operating history, existing management, general domestic or international economic conditions, pending or future legal proceedings, changes in federal or state tax laws or the administration of such laws, changes in gaming laws or regulations (including the legalization of gaming in certain jurisdictions), applications for licenses and approvals under applicable jurisdictional laws and regulations (including gaming laws and regulations). You should not place undue reliance on any forward-looking statements, which are based only on information currently available to us. We undertake no obligation to publicly release any revisions to such forward-looking statements to reflect events or circumstances after the date of this 10-K report for the year ended December 31, 2020, and subsequent events reported in this FORM 10-K.
Risk & Uncertainties
Due to the global pandemic of COVID-19, Kenilworth Systems Corporation, in the midst of reorganizing, was stymied in its redevelopment and continuation. Many agencies were closed and not available for assistance during this unprecedented period. These agencies were paramount in the development, continuity, and chronological growth of the corporation. Risk and uncertainties certainly derive from the above statement however, Kenilworth Systems Corporation is determined and will strive and continue to make every effort to move forward in its reorganization and development.
Going Concern
In efforts to help Kenilworth Systems Corporation reorganize and restructure its business model the company has begun looking into proprietary data protection We have no way to predict the future of this company however and currently, the corporation shows strong signs of financial growth moving into 2021. They are in discussions with a prominent data company that will help grow and sustain Kenilworth as a solid intellectual property service provider.
RISK FACTORS
NO OPERATING HISTORY
We have had no new revenues from operations since 1991. We exited from bankruptcy proceedings in 1998 without assets and liabilities. We have had no revenues from operations since then and we may never have any revenues from operations in the future, which may result in the termination of our business.
WE HAVE NO WORKING CAPITAL
As of December 31, 2020, the working capital of Kenilworth was $1,890.00. We have also been able to obtain working capital from investors that purchase Convertible Promissory Notes, Stock Purchase and Options Agreements and by issuing restricted Common Shares for services rendered.
OUR BUSINESS IS ONLY IN THE PLANNING STAGE
As of December 31st, 2020, Kenilworth Systems Corporation is looking forward to modifying its current structure into a Corporate Holding Company. The process for this continuation is currently under discussions and once completed, in the next couple of months, once initiated, will be available for use in holding data assets, such as intellectual patents and other proprietary property from around the world.
RAPID CHANGES IN TECHNOLOGY
Technology in general is subject to rapid change. Kenilworth will need to maintain an ongoing research and development effort of which there can be no assurances of success or availability of funds.
WE ARE ENGAGED IN A HIGHLY COMPETITIVE INDUSTRY
Our business is subject to significant competition. Competition exists from larger companies that possess substantially greater technical, financial, sales and marketing resources that Kenilworth presently possesses. Such competition is expected to increase. Such increased competition may have a material adverse effect on Kenilworth’s ability to successfully market its products.
WE WERE GRANTED A PATENT FOR THE VARIOUS ASPECTS OF SIMULCAST WAGERING
On June 10, 2003, the U.S. Patent for the various aspects of wagering on live in-progress casino table games was granted by the U.S. Patent Office to Herbert Lindo, the Inventor and which Patent was assigned by Herbert Lindo to the Company in August 2000. We filed the Patent for approval in fifty-one (51) countries in the industrialized world including Russia and China. There can be no assurances that foreign patents will be issued, and the challenges will not be instituted against the validity or enforceability of our patent.
Herbert Lindo also filed two (2) Patents in the U.S. Patent Offices in September and October 2004 which Patents have been published to use lottery terminals to accept deposits for wagers placed with the TV set top boxes and the use of Play Cards similar to lottery tickets, which have also been assigned to the Company by Herbert Lindo. A Patent Application for Multi-Use Gaming Machines invented by Herbert Lindo and Gordon Coplein, Esq. was published on February 1, 2007 and assigned, by the inventors, to Kenilworth. As of December 31st, 2020, The company is no longer engaged in any wagering of any kind, the aforementioned patent is held by Kenilworth Systems Corporation for future uses
OUR OFFICERS AND DIRECTORS WILL HAVE SIGNIFICANT CONTROL OVER US AND MAY APPROVE OR REJECT MATTERS CONTRARY TO A VOTE OF OUR SHAREHOLDERS
Our executive officers and directors together with their affiliates beneficially own a significant percentage of our outstanding common stock. These stockholders, if acting together, will be able to significantly influence all matters requiring approval by our stockholders including the election of directors and the approval of mergers or similar transactions even if the stockholders disagree.
SHARES ELIGIBLE FOR FUTURE SALE COULD CAUSE OUR STOCK PRICE TO FALL
If our stockholders sell substantial amounts of our common stock in the public market, the market price of our common stock would most likely fall. As of December 31, 2020 the company has plans to return preferred stock to the treasury to generate more common stock.
WE DO NOT INTEND TO PAY DIVIDENDS
We are not able to pay any dividends because we have no funds available to do so. Even if we had funds available, we do not intend or declare to pay any dividends on our common stock in the near future.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
ITEM 8 - FINANCIAL STATEMENTS
The financial statements, the accompanying notes are filed as part of this Report annexed at the end of this report. See ITEM 15.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ITEM 9 - CHANGES AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
The Company hired an independent in 2021 Therefore, all financials are currently being audited. The company is working hard to have this completed in 2021

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ITEM 9A. CONTROLS AND PROCEDURES
ITEM 9A - CONTROLS AND PROCEDURES
a.) Disclosure Controls and Procedures
The Company has evaluated, under the supervision and with the participation of the Company’s management including the Company’s Chairman, Chief Executive Officer who is also its Financial Officer. The effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15 (e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) as of the end of the period covered by this Report. Because of the inherent limitations in all control systems, evaluation of controls can provide only reasonable assurance that all control issues and instances of fraud, if any, within the Company have been detected. However, based on that evaluation, the Company’s Chairman and Chief Executive Officer who is also the
The Company’s Chief Financial Officer has concluded that the Company’s disclosure controls and procedures were effective as of the end of the period covered by this Report at a reasonable assurance level.
b.) Changes in Internal Control over Financial Reporting
There was no change in the Company’s internal control over financial reporting that occurred during the annual period ending December 31, 2020, that has materially affected, or is reasonably likely to materially affect the Company’s internal control over financial reporting.
PART III

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ITEM 9B. OTHER INFORMATION

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
Name
Age
Position
Dan W. Snyder
Director, Chairman of the Board, President and Chief Executive Officer
Peter Zompa
Corporate Secretary
Dan W. Snyder has been Chairman, President and CEO of Kenilworth since August 1, 2010. Dan Snyder is the fourth generation of a Chicago family of Engineers, Builders and Developers. Mr. Snyder operated his own commercial real estate brokerage and development business in downtown Chicago for 20 years before retiring in the mid-90s. He was very active in the Chicago Political Civic and Business Communities over the years. He consulted with Herbert Lindo for many years as he was accumulating Kenilworth stock and is now a substantial stockholder. Mr. Snyder at the behest of the Board of Directors moved to New York on four days’ notice to maintain continuity after the unexpected death of Herbert Lindo. Mr. Snyder devotes most of his time to the business of Kenilworth.
Peter Zompa, Secretary of Kenilworth, who currently practices in Florida. Mr. Zompa owns a private practice accounting firm in Florida
CRIMINAL/BANKRUPTCY/SEC VIOLATIONS WITHIN THE LAST FIVE (5) YEARS
NONE
SECTION 16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section 16(a) of the Securities Exchange Act of 1934 requires Kenilworth’s Executive Officers and Directors, and persons who beneficially own more than ten percent (10%) of our Common Stock, to file initial reports of ownership and reports of changes in ownership with the Securities and Exchange Commission. Executive Officers, Directors and greater than ten percent (10%) beneficial owners are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file. Through December 31, 2018 no one owned more than ten percent (10%) of our Common Stock. As of December 31, 2020, and through this filing date, no one owns more than ten percent (10%) of the common stock.
AUDIT COMMITTEE AND CHARTER
The following Charter has been adopted with respect to an Audit Committee:
The Audit Committee of the Board of Directors (the “Audit Committee”) shall have the responsibility to assist the Board of Directors in fulfilling its fiduciary and other obligations with respect to accounting and financial matters. Specifically, and without limiting the generality of the foregoing, the Audit Committee shall:
The Audit Committee will be composed of at least three (3) Independent Directors.
1.)
Review the adequacy and effectiveness of the Company’s system of internal financial controls and accounting practices to achieve reliability and integrity in the Company’s financial statements and initiate such examinations of such controls and practices as the Audit Committee deems advisable.
2.)
Review the qualification, performance and independence of the Company’s independent auditors and recommend independent auditors for appointment annually by the Board of Directors.
3.)
Prior to the commencement of the Company’s annual external audit, review with the Company’s independent auditors the scope of their audit function and estimated audit fees.
4.)
Subsequent to completion of the Company’s annual external audit, review the report and recommendations of the independent auditors with the independent auditors and the Company’s management.
5.)
Review the annual and quarterly financial statements of the company and other financial disclosures of the Company and the accounting principles being applied in such statements and disclosures.
6.)
Review the authority and duties of the Company’s chief financial officer and chief accounting officer and the performance by each of them of their respective duties.
7.)
Review the insurance programs for the Company including professional malpractice, general liability, director and officer liability and property insurance, and the insurers carrying the Company’s insurance
8.)
Oversee the establishment and thereafter periodically review a corporate code of conduct and the Company’s policies on ethical business practices.
9.)
Prior to public release, review with management and the Independent Accountants, the financial results for the prior year including the Company’s annual report on Form 10-K/A.
10.)
Review the committee’s charter annually and revise as appropriate.
11.)
Meet with the Chief Financial Officer and the Independent Accountants, in separate executive sessions, to discuss any matters that the committee or these groups believe should be considered privately.
12.)
Take such other actions concerning the Company’s accounting and financial functions as the Committee deems appropriate with respect to the matters described above.
Code of Ethics
The Registrant has not yet adopted a written formal Code of Ethics. However, the Registrant’s Officers intend to comply with all honest and ethical requirements including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships; full, fair, accurate, timely and understandable disclosure in reports and documents that the Registrant files with or submits to the Securities and Exchange Commission and in other public communications made by the Registrant; compliance with applicable governmental laws, rules and regulations; prompt internal reporting of any violations of the foregoing to an appropriate person and accountability for adherence of the foregoing. A formal Code of Ethics is expected to be adopted shortly and will be filed with the Securities and Exchange Commission.

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ITEM 11. EXECUTIVE COMPENSATION
ITEM 11 - EXECUTIVE COMPENSATION
a.)
There was no exercise of options and SARs during the fiscal year ended December 31, 2020.
Aggregated Option/SAR Exercises in Last Fiscal Year
And FY-End Option/SAR Values
NONE
b.)
The Registrant has no employment agreements with any of its Executive Officers or Directors.
c.)
The Registrant has no compensation committee at this time.
d.)
Stock Performance Graph is not applicable.
TOTAL RETURN TO SHAREHOLDERS
(DIVIDENDS REINVESTED MONTHLY)
Kenilworth has not declared a dividend since its inception in 1968.
e.)
The following table sets forth the total compensation of the President and each Executive Officer of Kenilworth whose total salary and bonus exceeds $100,000.
No Executive Officer received any compensation more than $100,000 during the past three (3) fiscal years.

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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
ITEM 12 - SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS
The following table sets forth as of December 31, 2020 the ownership with respect to each Executive Officer and Director and each person known to beneficially own more than five percent (5%) of the Company’s Common Stock.
The information provided in the table is based on Kenilworth’s records, information filed with the Securities and Exchange Commission and information provided to Kenilworth, except where otherwise noted.
The number of shares beneficially owned by each person, Director or Executive Officer is determined under rules of the Securities and Exchange Commission, and the information is not necessarily indicative of beneficial ownership for any other purpose. Unless otherwise indicated, each person has sole voting and investment power (or shares such powers with his spouse) with respect to the shares set forth in the following table:
BENEFICIAL OWNERSHIP TABLE
NAME AND ADDRESS OF BENEFICIAL OF BENEFICIAL OWNER
TITLE OF CLASS
OWNERSHIP
AMOUNT AND NATURE OF BENEFICIAL
OWNERSHIP
PERCENT OF CLASS
Daniel W Snyder
721 S Beach St #202
Dayton Beach, FL 32114
Common Stock
$ 0.01 par value
20,500
.30 %
The total number of shares beneficially owned by all Directors and Executive
Common Stock
Officers
$ 0.01 par value
17,500
.25 %
38,000
.55 %
The percentage of class has been determined with 6,818,435 shares issued and outstanding on December 31, 2020.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
NONE

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
ITEM 14 - PRINCIPAL ACCOUNTING FEES AND SERVICES
During the years ended December 31, 2020 and 2019, the Company incurred auditing expenses of approximately $15,000. There were no other audit related services or tax fees incurred.

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
ITEM 15 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
31.1
Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.
31.2
Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934.
32.1
Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2
Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
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Report of the Independent Registered Public Accounting Firm
To the Board of Directors and Shareholders of
Kenilworth Systems Corporation
Opinion on the Financial Statements
We have audited the accompanying statement of financial condition of Kenilworth Systems Corporation (the “Company”) as of December 31,2019 and December 31,2020 and the related statements of operations, changes in stockholder’s equity and cash flows for the year the ended December 31,2019 and December 31, 2020, 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 31,2019 and December 31, 2020, and the results of its operations and its cash flows for the year the ended December 31,2019 and December 31, 2020, in conformity with accounting principles generally accepted in the United States of America.
Substantial Doubt about the Company’s Ability to Continue as a Going Concern
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 7 to the financial statements, the Company has a going concern due to lack of source of revenue and net loss from operations during the audited periods. The above condition raises substantial doubt about the Company’s ability to continue as a going concern. Further information and management’s plan regarding this uncertainty were also described in Note 7. 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 audits 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 audits, 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 statement. We believe that our audits provide a reasonable basis for our opinion.
/s/ AJSH & Co LLP
We have served as the Company’s Auditor since 2021.
New Delhi, India
July 30, 2021
KENILWORTH SYSTEMS CORPORATION
BALANCE SHEETS
As of December
31, 2020
As of December
31, 2019
ASSETS
Current Assets
Bank
$ 990
$ -
Due from Related Party
$ 900
$ 12,000
Total current assets
$ 1,890
$ 12,000
TOTAL ASSETS
$ 1,890
$ 12,000
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY
Current Liabilities
$ -
$ -
Total current liabilities
$ -
$ -
Total other liabilities
$ -
$ -
TOTAL LIABILITIES
$ -
$ -
Stockholders’ Equity
Series A convertible preferred stock, par value $.01 - authorized 50,000, shares, 25,000 shares issued and outstanding
$ 250
$ 250
Series B convertible preferred stock, par value $.01 - authorized 300,000 shares, -0- shares issued and outstanding
$ -
$ -
Series C convertible preferred stock, par value $.01 - authorized 10,000 shares, 1,000 shares issued and outstanding
$ 10
$ 10
Common stock, par value $.01 - authorized 1,000,000,000 shares, 6,818,435 shares issued and outstanding,
$ 68,184
$ 68,184
Additional paid-in-capital
$ 39,195,858
$ 39,195,858
Accumulated deficit
$ (39,262,412 )
$ (39,252,302 )
Total stockholders’ equity
$ 1,890
$ 12,000
Total liabilities and stockholders’ equity
$ 1,890
$ 12,000
The Accompanying notes are an integral part of these financial statements.
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KENILWORTH SYSTEMS CORPORATION AND SUBSIDIARIES
STATEMENTS OF OPERATIONS
YEAR ENDED
DECEMBER 31,
YEAR ENDED
DECEMBER 31,
Operating revenue:
Revenue
$ -
$ -
Total revenue
$ -
$ -
Operating expenses:
Bank Charges & Fees
$ 110
$ 60
Legal & Professional Services
$ 10,000
$ 19,455
Miscellaneous
-
$ 2,093
Total operating expenses
$ 10,110
$ 21,608
Loss from operations
$ (10,110 )
$ (21,608 )
Other Income (expenses)
Total other income/(expense)
$ -
$ -
Net Income/ loss
$ (10,110 )
$ (21,608 )
Earnings per share
Basic
$ (0.0015 )
$ (0.0032 )
The accompanying notes are an integral part of these financial statements.
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KENILWORTH SYSTEMS CORPORATION
STATEMENTS OF CASH FLOWS
YEAR ENDED
DECEMBER 31, 2020
YEAR ENDED
DECEMBER
31, 2019
Cash flows from operating activities:
$ -
Net loss from continuing operations attributable to
$ (10,110 )
$ (21,608 )
common stockholders
Adjustments to reconcile net loss to net
cash used in operating activities:
Preferred stock issued for services
$ -
$ -
Changes in:
Receivables
$ 11,100
$ 21,608
Net cash used in operating activities
$ 990
$ -
Cash flows from investing activities
$ -
Net cash used in investing activities
$
$ -
Cash flows from financing activities
Net cash provided by financing activities
$ -
$ -
Net increase in cash
$ 990
$ -
Cash, beginning of period
$ 0
$ 0
Cash, end of period
$ 990
$ 0
The accompanying notes are an integral part of these financial statements.
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KENILWORTH SYSTEMS CORPORATION AND
CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT)
Common Stock
Series A Preferred Stock
Series C Preferred Stock
Additional
Total
PAR
PAR
PAR
Paid-in
Accumulated
Shareholders
Shares
Shares
Value
Shares
Value
SHARES
Value
Capital
Loss
Equity
Balance December 31, 2018
6,818,435
$ 68,184
25,000
$ 250
1,000
$ 10
$ 39,195,859
$ (39,230,694 )
$ 33,608
Net gain/(loss)
-
$ -
-
$ -
$ (21,608 )
Balance December 31, 2019
6,818,435
$ 68,184
25,000
$ 250
1,000
$ 10
$ 39,195,859
$ (39,252,302 )
$ 12,000
Subscription Receivable - common stock
$ 0
Net gain/(loss)
-
$ -
-
$ -
$ (10,110 )
Balance December 31, 2020
6,818,435
$ 68,184
25,000
$ 250
1,000
$ 10
$ 39,195,859
$ (39,262,412 )
$ 1,890
The accompanying notes are an integral part of these financial statements.
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KENILWORTH SYSTEMS CORPORATION
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - THE COMPANY AND NATURE OF BUSINESS
Kenilworth Systems Corporation (the “Company”) was incorporated in New York in April 1968 and completed an S-1 Registration in August 1968. The Company was engaged in the development and eventual by outsourcing the manufacture of the terminals that will permit individuals to play along with live in-progress casino table games at locations inside and outside the casino confines (remote locations). Games would have been available via TV simulcast of digital satellite and digital cable broadcasts to individuals at homes, offices and public gathering places and wherever television sets are located around the world. The Company’s business remained in continuous development stage although it completed a nine-million-dollar ($9,000,000) contract with the Totalizator Agency Board (“TAB”), a state government agency of Victoria, Australia, while being in voluntary bankruptcy reorganization under Chapter 11, of the United States Bankruptcy Code. Successful execution of its business plan was dependent upon factors such as: the ability to raise substantial capital and assemble a skilled and experienced management team, obtaining regulatory approval from gaming authorities and other governmental bodies, customer acceptance of a new experience in casino gaming, and technological feasibility.
Since early in the year 2019 we have been solely engaged in developing patents, markets and investigating how best to obtain Governmental approvals, by engaging lobbyists and consultants that would allow Internet, television, satellite, cable subscribers. Kenilworth Systems is a leader in developing state of the art software for corporate licensing relating to technological design fields. Kenilworth’s revenues will generate from its licenses and patents 49% interest in a joint-venture operation to develop on- line secure tools for its clients and vendors of clients
As of December 31st, 2020, Kenilworth Systems Corporation is looking forward to modifying its current structure into a Corporate Holding Company with well-seasoned, yet entirely unused, wholly owned subsidiaries. During this time of favorable world business conditions these subsidiaries will be used offering an ‘Umbrella of Safety’ worldwide. The process for this continuation is currently under discussions and once completed, in the next couple of months,
As of December 31, 2020 the Company has no subsidiaries. None of the subsidiaries ever contained any assets or liabilities. None had operational bank accounts, and all were defunct and closed by the respective states for non-filing of annual reports prior to December 31st 2012.
The accompanying financial statements have been prepared assuming the Company is a going concern and do not reflect adjustments, if any, that would be necessary if the Company were not a going concern.
The company had no ability to collect the $ 1,027,738 and $ 784,655 in open Assets and Liabilities as of December 31st, 2012. This has been committed to the accumulated deficit of the company as of December 31st, 2018. All company balance sheet activities assets and liabilities have been adjusted off the company’s current corporate financials as noted in the NYS Statute of Limitations (SEE: Opinion Letter SEC attorney Matthew McMurdo dated June 22, 2021) and due to lack of collection efforts since the company had no ability to pay or sustain employees, and many of the company’s vendors went out of business or were closed in the above-mentioned time frame. The remaining events remain open. (1) Loan Payable to Officer for $35,000. This liability is being paid within three months as noted in a signed corporate letter of “Written Consent” by the current President Dan Snyder, dated May 26th, 2021.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Accounting
This summary of significant accounting policies of Kenilworth Systems Corporation (“the Company”) is presented to assist in understanding the Company’s financial statements. These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the accompanying financial statements. The Company has elected a fiscal year-end of December 31.
Use of estimates
Management uses estimates and assumptions in preparing these financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenue and expenses. Actual results could vary from the estimates that were used.
KENILWORTH SYSTEMS CORPORATION
FINANCIAL STATEMENTS - (CONTINUED)
Cash and cash equivalents
The Company considers all highly liquid debt instruments with an original maturity of three months or less when purchased to be cash equivalents. There were cash equivalents at December 31, 2020.
Property and equipment
Property and equipment are stated at cost. Equipment is depreciated over the estimated useful lives of the respective assets, ranging from five to seven (5-7) years. Leasehold improvements are amortized over the shorter of either the asset’s useful life or the related lease term. Depreciation is computed on the straight-line method for financial reporting purposes.
Impairment of long-lived Assets
The Company regularly reviews long-lived assets for indicators of impairment. Management’s judgments regarding the existence of impairment indicators are based on performance. Future events could cause management to conclude that impairment indicators exist and that the value of long-lived assets is impaired. When events or circumstances indicate that the carrying amount of an asset may not be recoverable, the fair value of the asset is compared to its carrying value. Impairment losses are measured as the amount by which the carrying value of an asset exceeds its estimated fair value.
Advertising costs
Advertising costs are expensed as incurred. There were no advertising costs for any period presented.
Income taxes
Income taxes are accounted for under the asset and liability method specified by SFAS No. 109, “Accounting for Income Taxes.” Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities, and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the year in which those temporary differences are expected to be recovered or settled.
Fair value of financial instruments
Financial instruments reported in the balance sheet consist of accounts payable and loans payable, the carrying value of which approximated fair value as of fiscal year December 2020 The fair value of the financial instruments disclosed are not necessarily representative of the amount that could be realized or settled nor does the fair value amount consider the tax consequences of realization or settlement.
Stock-based compensation
The Company has adopted SFAS No. 123 “Accounting for Stock Based Compensation” which requires it to recognize stock awards granted to employees and non-employees as compensation expense based on the fair market value of the stock award or fair market value of the goods or services received, whichever is more reliably measurable.
Since December 31st 2019 there has been minimal activity and stock movement.
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
Loss per share
Basic loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding, plus the weighted average number of net shares that would be issued upon the exercise or conversion of dilutive securities, such as stock options and warrants, and convertible debt. There were no dilutive securities outstanding as of December 31, 2020.
Accordingly, diluted loss per share for 2020 is the same as basic loss per share.
New Authoritative Accounting Pronouncements
The Company does not anticipate the adoption of recently issued accounting pronouncements will have a significant impact on its results of operations, financial position or cash flows.
NOTE 3 - CASH
Cash includes a bank balance of $ 990 as on Dec 31, 2020 and $Nil as on Dec 31, 2019.
NOTE 4 - RELATED PARTY TRANSACTIONS
During the year ended December 31, 2020 and December 31, 2019, the officers of the Company incurred an expense of $5,000 and $21,608 respectively, As of December 31, 2020 and December 31, 2019, the Company has a receivable of $900 and $12,000 from Mr. Dan W. Snyder, President and Chief Executive Officer of the Company.
KENILWORTH SYSTEMS CORPORATION
FINANCIAL STATEMENTS - (CONTINUED)
NOTE 5 - INCOME TAXES
For the year ended December 31, 2020 and 2019, the Company has no provision for income taxes. The Company has had no revenues from operations since exiting Bankruptcy Proceedings in September 1998.
The difference between the U. S. federal tax rate and the Company’s effective tax rate i.e. zero in 2019 and 2020 is due primarily to changes in the valuation allowance related to the net deferred tax asset, offset by certain nondeductible expenses.
Deferred tax assets:
Net operating losses* $
10,110
$ 21,608
Less: Valuation allowance
$ 10,110
$ 21,608
Net deferred tax assets
$ 0.00
$ 0.00
*Carryforward
The benefits of net operating losses will not be recognized until management determines that realization is more likely than not to occur. Accordingly, management has established a valuation allowance to offset the tax benefits of net operating losses for all periods presented. As of December 31, 2020 the Company has an accumulated deficit or net operating loss carryover of approximately $39,262,412 available to offset future income for income tax reporting purposes, which will expire in various years through 2024, if not previously utilized. Utilization of NOL carry-forwards may be limited under various sections of the Internal Revenue Code depending on the nature of the Company’s operations.
NOTE 6 - COMMON STOCK AND PREFERRED STOCK
Authorized shares
Fiscal 2020 and 2019; Currently no additional shares have been issued or released. The Company is authorized to issue up to 1,000,000,000 shares of Common Stock, up to 50,000 shares of Preferred Stock A, up to 3,00,000 shares of Preferred Stock B and up to 10,000 shares of Preferred Stock C. Both classes have a par value of $.01 per share. The rights and preferences of the preferred shares will be designated by the Board of Directors.
Sales of unregistered common stock
As of fiscal 2020 and 2019, there has been no sale of unregistered common stock..
NOTE 7 - GOING CONCERN
For the years ended December 31, 2020 and December 31, 2019 the Company incurred net losses of approximately $10,110 and $21,608 respectively. Also, it has not yet received any revenues from its operations. These factors create substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustment that might be necessary if the Company is unable to continue as a going concern.
The ability of the Company to continue as a going concern is dependent on the Company generating cash from the sale of its common stock and/or obtaining debt financing and attaining future profitable operations. Management’s plans include selling its equity securities and obtaining debt financing to fund its capital requirement and ongoing operations; however, there can be no assurance the Company will be successful in these efforts.
NOTE 8 - SUBSEQUENT EVENTS
The Company issued 2,685,750 shares of common stock after December 31, 2020. Management performed an evaluation of Company activity through July 30, 2021, and has concluded that there are no further events requiring disclosure through the date these financial statements are issued.