EDGAR 10-K Filing

Company CIK: 1615780
Filing Year: 2023
Filename: 1615780_10-K_2023_0001683168-23-002411.json

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ITEM 1. BUSINESS
ITEM 1 - BUSINESS
The Company
The Teardroppers, Inc. is a Nevada corporation which was formed in June of 2013. We commenced operations in February of 2014. It is controlled by Kevin P. O’Connell. Mr. O’Connell owns a majority interest in FinTekk AP, LLC. FinTekk AP, LLC, which owns approximately seventy percent (70%) of our outstanding shares of common stock. On February 26, 2019, DEVCAP Partners, LLC, which is also controlled by Kevin O’Connell, had transferred all of the Company shares owned by DEVCAP Partners, LLC to FinTekk AP, LLC. We have incurred losses of $3,381,481 from inception through December 31, 2022. Our auditor's report has expressed substantial doubt about our ability to continue as a going concern.
In February of 2014, the Company established a $450,000 unsecured line of credit with DEVCAP. The Company’s liability to DEVCAP has been assigned to FinTekk. The terms of the Line of Credit provide for interest at 10% per annum on all outstanding balances; quarterly interest payments on outstanding balances are due at the end of each quarter respectively. The availability of funds for draw down from this line of credit is subject to the approval of Mr. O’Connell. At December 31, 2022, we had outstanding $35,129 on the Line of Credit.
Management estimates that the cost of operating our business for the next 12 months will require additional capital of $375,000 or approximately $31,250 per month, consisting of: $10,000 for officers’ salaries, $5,000 for executive marketing assistants, $1,500 for additional office space, $1,500 for telecom and communications, $10,584 for marketing efforts, $3,000 for legal and accounting costs.
In the event that demand for our advertising services increases beyond our ability to pay for additional trailers, of which there can be no assurance, we may seek to have independent or related parties purchase trailers. Such parties may then either lease the trailers to us, or, for a fee, have us act as their agent in maintaining their trailers and obtaining advertising clients for their trailers. In addition to our advertising business, we have acquired trailer and truck assets. These assets have been leased to our customers directly.
There can be no assurance that we will be able to raise any or all of the capital required. These factors indicate that we may be unable to continue as a going concern, particularly in the event that we cannot generate sufficient cash flow or raise sufficient capital to conduct our operations. Our financial statements do not include any adjustments to the value of our assets or the classification of our liabilities that might result if we would be unable to continue as a going concern.
Meeting our capital requirement will be directly contingent on Mr. O’Connell and his decision to have FinTekk advance us capital in the event that we are not able to raise capital from other sources.
The Company and its affiliates and promoters have no plans or intentions to engage in a merger or acquisition with an unidentified company or person or, once it is a reporting company, to be used as a vehicle for a private company to become a reporting company.
The Trailer Leasing business
On October 1, 2017, the Company acquired from Gemini Southern, LLC a 2006 Ultra-Comp 53” NASCAR type vehicle transport hauler (the “Hauler”) to be used for promotional / advertising services. The purchase price of the Hauler was $165,000. The Company paid for the Hauler with a promissory note (the “Hauler Note”). The Hauler Note bears interest at 12% per annum and is payable as follows: (i) interest only from October 1, 2017 through February 28, 2018; (ii) $ $3,670 per month from March 1, 2018 through February 28, 2022; and $45,000 on February 1, 2022. The trailer is collateral for the promissory note. On April 2, 2021, the 2006 Ultra Comp trailer was sold back to Rick Ware Racing, LLC for $75,095.
In 2018, we leased the trailer for a term of four years to Rick Ware Racing, LLC, subsequent to the execution of the lease, we engaged Cody Ware as our Chief Executive Officer. Cody Ware is also employee of Rick Ware Racing, LLC. The terms of the lease are the fair market value of leases for such equipment. We have not as yet determined that we will enter into the equipment leasing business as a continuing part of our business.
On November 18, 2019, the Company acquired from Rick Ware Racing a 2007 Featherlite spread axle trailer and a 2008 Freightliner truck both used primarily in NASCAR related operations. The truck and the hauler can be used for promotional / advertising services. The purchase price of the Truck & Hauler was $190,000. In February 1, 2020 we acquired and leased back the truck & trailer for a term of four (4) years back to Rick Ware Racing, LLC for $5,003 per month. The lessee is a related party to our CEO and the lease was executed at fair market terms.
The Company paid for the Truck & Hauler with a promissory note from a related party (the “Hauler Note”). The Truck & Hauler Note bears interest at 12% per annum and with a term of 48 months and is payable on the 28th of each month for $5,003.
On February 4, 2021, the Company acquired a 1983 Toyota Hilux pick-up truck to be used in the business for light duty towing and advertising and promotion. The truck was acquired through a loan from the FinTekk AP, LLC line of credit. The purchase price was $36,114.
The Mobile Billboard Advertising Service
We also offer to provide advertising space on custom designed and manufactured “Teardrop Trailers” and standard cargo trailers purchased from independent trailer manufacturers of various sizes. Teardrop Trailers are usually designed for short-period accommodations for vacationers and travelers. A Teardrop Trailer, also known as a “Teardrop Camper Trailer”, is a streamlined, compact, lightweight travel trailer, which gets its name from its teardrop profile. Should we determine to order additional Teardrop Trailers, we intend to order them from independent “Kit” suppliers. Kits are available from several suppliers and are made up of all of the pre-cut, ready to assemble, components of a Teardrop Trailer, except for the chassis. Our initial order of a Teardrop Trailer was delivered to us on February 15, 2015. The Teardrop Trailer we received was assembled on a trailer chassis that we had obtained from an independent trailer chassis manufacturer. Our Teardrop Trailer has an outer skin of uncoated aluminum and is 6 feet in width, 10 feet in length and 5 feet in height. Wheels and tires are outside the body and are covered by fenders. Our Teardrop Trailer weighs less than 1000 pounds, so most vehicles, can tow one and have little effect on the vehicle's fuel consumption. We have previously paid $5,000 for the manufacture and assembly of our Teardrop Trailer.
We estimate that it will take approximately 30 days from the date we place an order to the delivery of the trailer to us. When we determine to order additional Teardrop Trailers, we will do so by engaging independent Computer Numerical Control (“CNC”) contractors. Teardrop Trailer we ordered will be assembled on trailer chassis that we have obtained from an independent trailer chassis manufacturer.
As an alternative, we may acquire additional constructed or used trailers to include in our inventory.
We offer advertising space on our trailers. Advertising will be applied by applying decals, large adhesive backed vinyl sheets as decals or by fastening one large sheet of adhesive backed vinyl (to the sides and, in some cases, the top of the trailer. In addition, we will offer to provide our tow vehicle and a driver.
The lettering graphics are widely available from several sources including independent design shops and decal manufacturers.
The vinyl film is manufactured by several suppliers, including 3M, Avery Dennison, and Oracle. It will be designed by independent designers hired by us and will be installed on our trailers by independent printers and dealers of adhesive backed vinyl film. It is the costliest advertising option we will offer.
Our rates will be negotiated at time of contract. We intend to charge an advertising client for a "turnkey" design and application of decals to our trailers at prices starting at $1200 with additional charges for more complex designs and for full wrapping services. We also intend to charge our clients a rental price of $295 per day, with an additional $175 per six-hour day if the client wishes us to supply a tow vehicle and driver. Our rates will be based upon the range of services, length of the advertising contract, vehicles needed, miles traveled, length of campaign, ancillary costs and other variables. There is a minimum rental of 3 days required. The client will be required to pay for liability and property damage insurance.
After the rental, we remove the trailer's advertising decals and prepare the trailer for its next client's advertising application and rental.
We believe that the mobile outdoor advertising that we will offer to advertisers is suitable for:
· Event Marketing
· New Product Launches
· Retail Store Openings
· Grand Openings
· Tradeshow Advertising
· Political Advertising and Campaigning
· Publicity
· Concerts
· Sporting Events
· Conventions
· Trade Shows
· Outdoor Festivals
· Beach Cities and Events
· Grand Openings
· Holiday Events
· Motion Picture Premiers
We believe that mobile outdoor advertising offers certain advantages to advertisers, among which include:
· Mobile trailers are flexible providing one with a wide variety of space and cost options, which can be used for anything from short sales promotions to being part of a long-term brand awareness campaign.
· Instead of hoping people see an advertisement, the advertisements are brought to them.
· They are more cost effective than other forms of advertising.
· We can park the trailer in front of a business or a competitors.
· We can thoroughly saturate a specific area unlike regular billboards, radio, TV or direct mail.
· We can provide specific demographic routes so that there are multiple exposures.
· Mobile billboards create impact because of their movement, size and prominence on the road and can go where other advertising can’t. They merely have to be visible to attract attention.
· We can provide advertisements in the middle of all the activity at a special event like a tournament, fair, tradeshow, sporting event et. al.
· As they are eye-level with consumers, the message is communicated directly, increasing the impact of the product.
We will also offer to work closely with our clients to fully understand the client's marketing objectives. We will use our best efforts to identify the highest profile locations in our client's target market in order to provide the most efficient, high exposure, high impact and cost-effective mobile advertising campaign.
At every stage of the process, our services will include design, branding and selection of graphics, to achieve maximum impact. Audio, illumination, promotional sampling and other sensory elements can be added to further enhance an advertising message.
Marketing
We intend to market our advertising, design and consulting services through our website www.tdropmobile.com. Once appropriate funding becomes available, we intend to upgrade our website, introduce ecommerce technologies and advertise on high traffic web properties. We also market our consulting services through personal contacts of our officers and majority shareholder.
There are currently many manufacturers of Teardrop Trailers and Cargo Trailers that offer their products to the marketplace.
Regulation of Mobile Billboards
Several States, including California, have laws that enable cities and local municipalities to prohibit or limit the use of mobile billboards within their geographical borders. Cities in California, including Los Angeles and several surrounding cities have enacted Ordinances which substantially limit the use of mobile billboards. In addition, several other large municipalities in other States have enacted similar legislation. There have been several legal challenges to the legislation based upon freedom of commercial speech. However, the Laws have been upheld to date by the United States 9th Circuit Court of Appeals, based upon a governing body's right to restrict a mode of advertising that may obstruct traffic and parking, may endanger pedestrians, and may constitute blight.
The Los Angeles Ordinance does provide for certain exemptions to the Ordinance, such as allowing businesses to permanently affix advertising signs to a vehicle by among other exemptions, painting on the vehicle or applying advertising decals.
While the California Law and the resulting local Ordinances will effectively limit the geographical area in which our potential clients may use our services, we believe that there are sufficient areas of our intended geographical market area that do not have Ordinances prohibiting mobile billboard advertising. Further, certain of our potential clients may use of our trailers without violating such Ordinances, such as using them at marketing events, i.e. at motorsports racing venues, sporting events, and Grand Opening events.
However, there can be no assurance that we will be successful in obtaining clients in our intended initial geographical marketing area, Southern California, or that there will not be further legal limitations established on the use of mobile billboard advertising.
Financing the Business
In February of 2014, the Company established a $450,000 unsecured line of credit with DEVCAP Partners, LLC which was assigned to FinTekk AP, LLC. The terms of the Line of Credit provide for interest at 10% per annum on all outstanding balances; quarterly interest payments on outstanding balances are due at the end of each quarter respectively. The availability of funds for draw down from this line of credit -related party is subject to the approval of Mr. O’Connell. As of December 31, 2022, the balance owed on the Line of Credit was $35,129.
On February 24, 2014, the Company entered into a line of credit with General Pacific Partners, LLC, a California limited liability company, for an amount up to $450,000. The line of credit is a demand loan bearing interest of 10% per annum. General Pacific Partners, LLC is owned by Kevin O’Connell, the owner and managing member of DEVCAP Partners, LLC, the majority shareholder of the Company. As of January 1, 2020, the line of credit was assumed by FinTekk AP, LLC, a sole member Texas limited liability company owned by Kevin O’Connell. The balance of the line of credit was $0 as of December 31, 2022 and 2021. The Company had unpaid accrued interest of $4,732 at December 31, 2022 and 2021.
Line of Credit with Gemini Southern, LLC
On December 12, 2014, the Company entered into a line of credit agreement with Gemini Southern, LLC. The Line of Credit Agreement provided that no interest would be owed on the balance of $375,000 through December 31, 2014 and that interest will accrue at 10% per annum commencing January 1, 2015 until the maturity date of December 31, 2020. The line of credit was extended until December 31, 2023 and the credit line was increased to $950,000. The loan balance as of December 31, 2022 and 2021 was $206,904 and $876,931, respectively. On April 1st, 2018 Gemini Southern converted $525,000, the total amount owed to Gemini Southern as of that date, into 4,375,000 shares of our common stock at $0.12 per share.
Intellectual Property
Our Teardrop Trailer was manufactured from plans provided by an independent Partnership. We have no further relationship with the Partnership. We do not believe that there was anything proprietary in the plans. Should we seek to manufacture and assemble Teardrop trailers from other independent parties, we believe that there are many independent CNC machine shops that have the ability to manufacture and assemble Teardrop Trailers. We do not believe we have any intellectual property.
Competition
We are a small independent start-up mobile billboard advertising company that commenced mobile billboard operations in February of 2014. We face competition from other mobile billboard advertising companies specifically, and generally from all other advertising and media companies. Most, if not all, of our competitors are much larger, well established and better financed companies. In addition, there is no barrier to entry for other advertising companies should they decide to offer advertising on their own trailers or vehicles. We do not consider us to be a factor in our industry and there is no assurance that we will be successful in selling advertising services, or even if successful in obtaining paying advertisers, that we will be profitable. In addition, we also face competition in our trailer leasing business from both small and large leasing companies.
Employees
As of December 31, 2022 and 2021, we had no full-time employees. Our only current employees consist of executive management personnel, all of whom devote 20% or less of their time to our business affairs. We intend to hire full time employees when and if we have the financial resources to do so. Until such time as we are in a position to hire full time employees, we will hire independent contractors to perform work for us on an as needed basis. None of our employees are represented by a labor union or a collective bargaining agreement. We consider our relations with our Management employees to be good.
Real Property
We do not own any real property. We do not own any intellectual property. We occupy office facilities at 620 Newport Center Dr. Ste. 1100 Newport Beach, Ca. 92660 for which we pay no rent per month to FinTekk AP, LLC our majority shareholder. It is a month-to-month oral agreement.

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ITEM 1A. RISK FACTORS
ITEM 1A - RISK FACTORS
RISK FACTORS
An investment in these securities involves a high degree of risk and is speculative in nature. In addition to the other information regarding the Company contained in this Prospectus, you should consider many important factors in determining whether to purchase Shares. Following are what we believe are material risks related to the Company and an investment in the Company. Investors are urged to perform their own due diligence, with the help of their investment, accounting, legal and/or other professionals and to make an independent decision regarding an investment in the Shares.
Risks Associated with our Business
Our independent auditors have issued an audit opinion for us which includes a statement describing our going concern status. Our financial status creates a doubt whether we will continue as a going concern.
As described in Note 3 of our accompanying financial statements, our auditors have issued a going concern opinion regarding the Company. This means there is substantial doubt we can continue as an ongoing business for the next twelve months. The financial statements do not include any adjustments that might result from the uncertainty regarding our ability to continue in business. As such, we may have to cease operations and investors could lose part or all of their investment in the Company.
We lack an operating history and have losses which we expect to continue into the future. There is no assurance our future operations will result in profitable revenues. If we cannot generate sufficient revenues to operate profitably, we may suspend or cease operations.
We were incorporated in June of 2013 and commenced operations in February of 2014. We have not fully developed our proposed business operations and have realized only $186,775 in revenue since our inception. We have little operating history upon which an evaluation of our future success or failure can be made. Our net loss since inception through December 31, 2022 was $3,381,481. Our ability to achieve and maintain profitability and positive cash flow is dependent upon:
· Our ability to develop a business plan that is attractive to advertising clients.
· Our ability to successfully implement our business plan
· The acceptance in the marketplace of our trailers as a viable advertising medium
Based upon current plans, we expect to incur operating losses in future periods because we will be incurring expenses and not generating sufficient revenues to cover expenses. We cannot guarantee that we will be successful in continuing to generate revenues in the future. In the event the Company is unable to generate sufficient revenues to cover expenses, it may be required to seek additional funding. Such funding may not be available or may not be available on terms which are beneficial and/or acceptable to the Company. In the event the Company cannot generate revenues and/or secure additional financing; the Company may be forced to cease operations and investors will likely lose some or all of their investment in the Company.
Most of our competitors have significantly greater financial and marketing resources than do we.
There exist in our industry many competitors that have significantly greater financial and marketing resources than do we. There are no assurances that our efforts to compete in the marketplace will be successful. There can be no assurance that we will be able to become profitable.
There are legal restrictions on the use of mobile billboards in our intended marketing geographic area.
Several States, including California, have laws that enable cities and local municipalities to prohibit or limit the use of mobile billboards within their geographical borders. Cities in California, including Los Angeles and several surrounding cities have enacted Ordinances which substantially limit the use of mobile billboards. In addition, several other large municipalities in other States have enacted similar legislation. There have been several legal challenges to the legislation based upon freedom of commercial speech. However, the Laws have been upheld to date by the United States 9th Circuit Court of Appeals, based upon a governing body's right to restrict a mode of advertising that may obstruct traffic and parking, may endanger pedestrians, and may constitute blight. These Laws and Ordinances will have the effect of limiting our ability to successfully market our services to potential clients and our business will therefore be adversely affected.
There can be no assurance that we will be successful in obtaining clients in our intended initial geographical marketing area, Southern California, or that there will not be further legal limitations established on the use of mobile billboard advertising.
Our existing principal stockholders exercise control of our Company.
FinTekk AP, LLC is the beneficial owner of approximately 87% of our issued and outstanding common stock. Kevin P. O’Connell is the majority owner and Managing Member of FinTekk AP, LLC.
DEVCAP has established a line of credit of $450,000 (the “Line of Credit”). The receipt of funds from this Line of Credit is subject to the approval of DEVCAP. This line of credit has been assigned to FinTekk AP, LLC. Mr. O’Connell is the majority owner and the managing member of FinTekk AP, LLC. As of December 31, 2022, we had a balance of $35,129 on the Line of Credit. The terms of the Line of Credit contain annualized interest of 10%, quarterly interest payments paid by the Company on outstanding balances and allows a maximum quarterly draw down on the line of $75,000 per quarter.
Kevin P. O'Connell, the Managing Member of FinTekk, may have a conflict of interest should we determine to draw upon the Line of Credit. Kevin P. O'Connell will have to determine, whether it is in the best interest of FinTekk AP, LLC to approve or decline the "loan” or as our control shareholder, if it is in our best interest to approve the loan.
We do not have any additional source of funding for our business plans and may be unable to find any such funding if and when needed, resulting in the failure of our business.
Other than the Lines of Credit, no other source of capital has been identified or sought. If we are not able to draw funds from our Lines of Credit, or we do not find an alternative source of capital, the terms and conditions of acquiring such capital may result in dilution and the resultant lessening of value of the shares of stockholders.
If we are not successful in raising sufficient capital, we will be faced with several options:
1. abandon our business plans, cease operations and go out of business;
2. continue to seek alternative and acceptable sources of capital; or
3. bring in additional capital that may result in a change of control.
In the event any of the above circumstances occur, investors in our shares could lose a substantial part or all of their investment.
We possess minimal capital, which may severely restrict our ability to develop our services. If we are unable to raise additional capital, our business will fail.
We possess minimal capital and must limit the amount of marketing we can perform with respect to our services. We feel we require a minimum of $375,000 to provide sufficient capital to commence with operations and development of the business plan. Our business plan contemplates the development of a website and associated software to allow clients to track objects of interest in real time. Our limited marketing activities may not attract enough clients to generate sufficient revenue to operate profitably, expand our services, implement our business plan or continue operating our business. Our limited marketing capabilities may have a negative effect on our business and may cause us to limit or cease our business operations which could result in investors losing some or all of their investment in the Company.
Because our CEO Kevin O’Connell has other outside business activities and will have limited time to spend on our business, our operations may be sporadic, which may result in periodic interruptions or suspensions of operations.
Because our officers and director have other outside business activities and will only be devoting approximately 20% of their time to our operations, our operations may be sporadic and occur at times which are inconvenient to Mr. O’Connell. Mr. O’Connell will devote up to 20% of his time per week to the business of the Company. In the event they are unable to fulfill any aspect of their duties to the Company, we may experience a shortfall or complete lack of sales resulting in little or no profits and eventual closure of the business.
We are dependent upon our current officers.
We currently are managed by two officers and we are entirely dependent upon them in order to conduct our operations. If they should resign or die, there will be no one to operate the Company. If our current officers are no longer able to serve as such and we are unable to find other persons to replace them, it will have a negative effect on our ability to continue active business operations and could result in investors losing some or all of their investment in the Company.
We depend upon independent contractors to manufacture our Teardrop Trailers.
We do not own or operate a manufacturing or assembly facility to build Teardrop Trailers. We are dependent upon independent Computer Numerical Control (“CNC”) contractors to manufacture and assemble Teardrop Trailers. While we believe that there are numerous CNC contractors that are capable of manufacturing our Teardrop Trailers to our specifications, there can be no assurance that we will be able to obtain Teardrop Trailers at the time and the price we may require. To the extent that we are unable to have Teardrop Trailers delivered to us at the time and price that we specify, our business will be adversely affected.
Having one director limits our ability to establish effective independent corporate governance procedures and increases the control of our president over operations and business decisions.
We have only one director currently, one who is our Chief Executive Officer. Accordingly, we cannot establish board committees comprised of independent members to oversee functions like compensation or audit issues. In addition, a tie vote of board members is decided in favor of the chairman, which gives him significant control over all corporate issues, including all major decisions on operations and corporate matters such as approving business combinations.
Until we have a larger board of directors that would include some independent members, if ever, there will be limited oversight of our president’s decisions and activities and little ability for minority shareholders to challenge or reverse those activities and decisions, even if they are not in the best interests of minority shareholders.
The limited public company experience of our management team could adversely impact our ability to comply with the reporting requirements of U.S. Securities Laws.
Our management has limited public company experience, which could impair our ability to comply with legal and regulatory requirements such as those imposed by the Sarbanes-Oxley Act of 2002. Our management has never been responsible for managing a publicly traded company. Such responsibilities include complying with federal securities laws and making required disclosures on a timely basis. Our management may not be able to implement programs and policies in an effective and timely manner that adequately responds to such increased legal, regulatory compliance and reporting requirements including establishing and maintaining internal controls over financials reporting. Any such deficiencies, weaknesses or lack of compliance could have a materially adverse effect on our ability to comply with the reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) which is necessary to maintain our public company status. If we were to fail to fulfill those obligations, our ability to continue as a U.S. public company would be in jeopardy in which event you could lose your entire investment.
Risks Associated with Ownership of our Shares
There is no active trading market for our common stock and if a market for our common stock does not develop, our investors will be unable to sell their shares.
From October 2015 through December of 2017 our common shares were listed on the Over the Counter Bulletin Board in the United States under the symbol “TRDP”, In December of 2017, we were notified by FINRA that due to lack of trading, our common shares would no longer be listed for trading on the OTCQB. Accordingly, there are currently no recent bid or ask quotes for our common shares available because no market makers share data or quote our common shares and there is no quoting system available to record and settle trades. Our common shares may now be traded on the “Grey Market” or on the “Grey Sheets”, where trading is moderated by a broker and done between consenting individuals at a price they agree on. The only documentation that can be publicly found regarding the trades is when the last trade took place. The failure to develop or maintain a liquid trading market negatively affects our common share's value and makes it difficult or impossible for you to sell your shares. Even if a liquid market for common shares does develop, the market price may be highly volatile. In addition to the uncertainties relating to future operating performance and the profitability of operations, factors such as variations in interim financial results or various, as yet unpredictable, factors, many of which are beyond our control, may have a negative effect on the market price of our common shares.
If a public market for our common stock does not develop, then investors may not be able to resell the shares of our common stock that they have purchased and may lose all of their investment. If we establish a trading market for our common stock, the market price of our common stock may be significantly affected by factors such as actual or anticipated fluctuations in our operation results, general market conditions and other factors. In addition, the stock market has from time to time experienced significant price and volume fluctuations that have particularly affected the market prices for the shares of developmental stage companies, which may materially adversely affect the market price of our common stock.
Our shares are defined as “penny stock”, and the rules imposed on the trading of our shares may affect a shareholder’s ability to resell any of their shares, if at all.
Our shares are defined as a “penny stock” under the Securities and Exchange Act of 1934, and rules of the Commission. The Exchange Act and such penny stock rules generally impose additional sales practice and disclosure requirements on broker-dealers who sell our securities to persons other than certain accredited investors who are, generally, institutions with assets in excess of $5,000,000 or individuals with net worth in excess of $1,000,000 or annual income exceeding $200,000, or $300,000 jointly with spouse, or in transactions not recommended by the broker-dealer. For transactions covered by the penny stock rules, a broker-dealer must make a suitability determination for each purchaser and receive the purchaser’s written agreement prior to the sale. In addition, the broker-dealer must make certain mandated disclosures in penny stock transactions, including the actual sale or purchase price and actual bid and offer quotations, the compensation to be received by the broker-dealer and certain associated persons, and deliver certain disclosures required by the Commission. Consequently, the penny stock rules may affect the ability of broker-dealers to make a market in or trade our common stock and may also affect your ability to resell any shares you may purchase in this offering in the public markets.
We Are Unlikely to Pay Dividends
To date, we have not paid, nor do we intend to pay in the foreseeable future, dividends on our common stock, even if we become profitable. Earnings, if any, are expected to be used to advance our activities and for general corporate purposes, rather than to make distributions to stockholders. Prospective investors will likely need to rely on an increase in the price of Company stock to profit from his or her investment. There are no guarantees that any market for our common stock will ever develop or that the price of our stock will ever increase. If prospective investors purchase Shares pursuant to this Offering, they must be prepared to be unable to liquidate their investment and/or lose their entire investment.
Since we are not in a financial position to pay dividends on our common stock, and future dividends are not presently being contemplated, investors are advised that return on investment in our common stock is restricted to an appreciation in the share price. The potential or likelihood of an increase in share price is questionable at best.
State Securities Laws may limit secondary trading, which may restrict the states in which and conditions under which you can sell the shares offered by this prospectus.
There is no public market for our securities, and there can be no assurance that any public market will develop in the foreseeable future. Secondary trading in securities sold in this offering will not be possible in any state in the U.S. unless and until the common shares are qualified for sale under the applicable securities laws of the 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 securities for secondary trading or identifying an available exemption for secondary trading in our securities in every state. If we fail to register or qualify, or to obtain or verify an exemption for the secondary trading of the securities in any particular state, the securities could not 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 securities, the market for our securities could be adversely affected.

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ITEM 1B. UNRESOLVED STAFF COMMENTS
ITEM 1B - UNRESOLVED STAFF COMMENTS
None.

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ITEM 2. PROPERTIES
ITEM 2 - DESCRIPTION OF PROPERTIES
We occupy office facilities at 620 Newport Center Dr. Ste. 1100 Newport Beach, Ca. 92660 for which we pay no rent per month to FinTekk AP, LLC, our majority shareholder. It is a month-to-month oral agreement.

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ITEM 3. LEGAL PROCEEDINGS
ITEM 3 - LEGAL PROCEEDINGS
We are not a party to any material legal proceedings. We are not aware of any pending or threatened litigation against us that we expect will have a material adverse effect on our business, financial condition, liquidity, or operating results. However, legal claims are inherently uncertain, and we cannot assure you that we will not be adversely affected in the future by legal proceedings.

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ITEM 4. MINE SAFETY DISCLOSURE
ITEM 4 - MINE SAFETY DISCLOSURES
Not applicable.
PART II

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ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY
ITEM 5 - MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
From October 2015 through December of 2017 our common shares were listed on the Over the Counter Bulletin Board in the United States under the symbol “TRDP”. In December of 2017, we were notified by FINRA that due to lack of trading, our common shares would no longer be listed for trading on the OTCQB. Accordingly, there are currently no recent bid or ask quotes for our common shares available because no market makers share data or quote our common shares and there is no quoting system available to record and settle trades. Our common shares may now be traded on the “Grey Market” or on the “Grey Sheets”, where trading is moderated by a broker and done between consenting individuals at a price they agree on. The only documentation that can be publicly found regarding the trades is when the last trade took place. The failure to develop or maintain a liquid trading market negatively affects our common share's value and makes it difficult or impossible for you to sell your shares. Even if a liquid market for common shares does develop, the market price may be highly volatile. In addition to the uncertainties relating to future operating performance and the profitability of operations, factors such as variations in interim financial results or various, as yet unpredictable, factors, many of which are beyond our control, may have a negative effect on the market price of our common shares.
No trades of our common stock occurred through the facilities of the OTCQB. The following table sets forth the range of the high and low bid prices per share of our common stock for each quarter (or portion thereof) as reported on the OTCBB or OTCQB, as applicable, beginning on February 8, 2013. These quotations represent interdealer prices, without retail markup, markdown or commission, and may not represent actual transactions. There currently is no liquid trading market for our common stock.
There can be no assurance that a significant active trading market in our common stock will develop, or if such a market develops, that it will be sustained.
High Low
January 1, 2021 - December 31, 2021 (1) (2) 0.25 0.25
January 1, 2022 - December 31, 2022 (1) (2) 0.25 0.25
(1) Represents quoted prices but not actual trades.
(2) In December of 2017, our shares were de-listed from the OTCQB and are now on the “Grey Market”.
As soon as practicable, and assuming we satisfy all necessary initial listing requirements, we intend to apply to have our common stock re-listed for trading on the OTCQB although we cannot be certain that our application will be approved.
Recent Sales of Unregistered Securities.
In December of 2022, FinTekk AP, LLC a related party, controlled by Mr. O’Connell converted a debt obligation owed by the Company to common stock for $0.25 per share. A debt to equity conversion agreement was executed by the parties.
Re-Purchase of Equity Securities.
No equity securities were repurchased during the twelve months ended December 31, 2022 or 2021.
Dividends.
No dividends have been declared or paid during the twelve months ended December 31, 2022 or 2021.
Equity Compensation Plan Information.
We do not have an Equity Compensation Plan.

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ITEM 6. SELECTED FINANCIAL DATA
ITEM 6 - SELECTED FINANCIAL DATA
As a “smaller reporting company’ as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item.

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS
ITEM 7 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF PLAN OF OPERATION
The following discussion and analysis of our results of operations and financial condition for the fiscal years ended December 31, 2022 and 2021 should be read in conjunction with our financial statements and the notes to those financial statements that are included elsewhere in this annual report. Our discussion includes forward-looking statements based upon current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. Actual results and the timing of events could differ materially from those anticipated in these forward-looking statements as a result of a number of factors, including those set forth under the “Risk Factors”, “Cautionary Notice Regarding Forward-Looking Statements” and “Description of Business” sections and elsewhere in this annual report. We use words such as “anticipate,” “estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,” “believe,” “intend,” “may,” “will,” “should,” “could,” “predict,” and similar expressions to identify forward-looking statements. Although we believe the expectations expressed in these forward-looking statements are based on reasonable assumptions within the bound of our knowledge of our business, our actual results could differ materially from those discussed in these statements. Factors that could contribute to such differences include, but are not limited to, those discussed in the “Risk Factors” section of this report. We undertake no obligation to update publicly any forward-looking statements for any reason even if new information becomes available or other events occur in the future.
In addition to historical information, this Annual Report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Actual results could differ materially from those projected in the forward-looking statements as a result of a number of factors, risks and uncertainties, including the risk factors set forth in Item 1A. above and the risk factors set forth in this Annual Report. Generally, the words “anticipate”, “expect”, “intend”, “believe” and similar expressions identify forward-looking statements. The forward-looking statements made in this Annual Report are made as of the filing date of this Annual Report with the SEC, and future events or circumstances could cause results that differ significantly from the forward-looking statements included here. Accordingly, we caution readers not to place undue reliance on these statements. We expressly disclaim any obligation to update or alter our forward-looking statements, whether, as a result of new information, future events or otherwise after the date of this document.
Plan of Operation
Overview
On June 3, 2013, Teardroppers, Inc. (the “Company”, “we”, “us”, or “our”), was incorporated under the laws of the state of Nevada.
Throughout 2021, and moving forward we have focused on utilizing small and large cargo type trailers in our business. In certain cases, we will use acquire these trailers with the intent of lease them to our clients for advertising and promotion purposes. As an alternative, we have acquired cargo trailers in an acquisition transaction, and then executed a long-term lease agreement for the trailer in which the client takes full responsibility for the content production, advertising, and promotion used on the trailer.
We are also engaged in the business of mobile billboard advertising by offering to provide billboard advertising space on standardized and custom designed “Teardrop Trailers” and on car hauling trailers. Teardrop Trailers are usually designed for short-period accommodations for vacationers and travelers. Car hauling trailers are “box” like and have more space for advertising displays. Our trailers are light weight so that they can be towed behind small economy sized vehicles and pickup trucks. Beginning in 2015, we introduced classic car tow options with enclosed car hauler trailers as rental options.
Additionally, if the client desires, we can acquire a Teardrop style camper trailer for use in direct advertising or promotion by a client or acquire the same style trailer with the intent to lease directly to the client and allow them to manage and produce the content production, advertising, and promotion used on the trailer.
In 2017, we acquired a 2006 Ultra Comp car hauler trailer from Gemini Southern, LLC, a related party, and subsequently leased the trailer over a term of four years to Rick Ware Racing, a company associated with our Chief Executive Officer. The terms of the lease are the fair market value of leases for such equipment. On April 2, 2021 the trailer was sold directly to the lessee and the lease was terminated.
Trends & Outlook
Revenue - Our revenue is derived primarily from renting our trailers with specific advertising and branding messaging lettered to each trailer that can be used in display settings as well as leasing our hauler trailer acquired in April of 2017. Additionally, we may receive additional revenue from customers requiring custom advertising applications to the trailers they rent from our Company.
Long-term, we cannot predict the growth or decline of our revenues. If certain changes in the local or national economies of our customers declines our potential revenue would likely decrease. Such a decline in advertising spends available to potential customers in our market would have a negative effect on our business.
Operating Expenses
Our Operating expenses are currently attributed to the regular operations of the Company. These costs can vary depending on commodities such as fuel, the distance traveled, costs of advertising or changes in technical and engineering consulting fees.
Significant Accounting Policies
Our financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Note 2 of the Notes to Financial Statements describes the significant accounting policies used in the preparation of the financial statements. Certain of these significant accounting policies are considered to be critical accounting policies, as defined below.
A critical accounting policy is defined as one that is both material to the presentation of our financial statements and requires management to make difficult, subjective or complex judgments that could have a material effect on our financial condition and results of operations. Specifically, critical accounting estimates have the following attributes: 1) we are required to make assumptions about matters that are highly uncertain at the time of the estimate; and 2) different estimates we could reasonably have used, or changes in the estimate that are reasonably likely to occur, would have a material effect on our financial condition or results of operations.
Estimates and assumptions about future events and their effects cannot be determined with certainty. We base our estimates on historical experience and on various other assumptions believed to be applicable and reasonable under the circumstances. These estimates may change as new events occur, as additional information is obtained and as our operating environment changes. These changes have historically been minor and have been included in the financial statements as soon as they became known.
Based on a critical assessment of our accounting policies and the underlying judgments and uncertainties affecting the application of those policies, management believes that our financial statements are fairly stated in accordance with accounting principles generally accepted in the United States and present a meaningful presentation of our financial condition and results of operations. We believe the following critical accounting policies reflect our more significant estimates and assumptions used in the preparation of our financial statements:
Use of Estimates
These financial statements have been prepared in accordance with accounting principles generally accepted in the United States and, accordingly, require management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Cash and Equivalents - We maintain our cash in bank deposit accounts, which at times, may exceed federally insured limits. We have not experienced any losses in such account.
Intangible and Long-Lived Assets - We follow ASC 360, "Accounting for Impairment or Disposal of Long-Lived Assets," which established a "primary asset" approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell. No impairment losses were recognized during the years ended December 31, 2022 and 2021.
Stock Based Compensation - We recognize expenses for stock-based compensation arrangements in accordance with provisions of Accounting Standards Codification 714. Accordingly, compensation cost is recognized for the excess of the estimated fair value of the stock at the grant date over the exercise price, if any. For equity instruments issued to non-employees, the estimated fair value of the equity instrument is recorded on the earlier of the performance commitment date or the date the services required are completed.
Basis of presentation
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. Without further funding, we anticipate running out of cash after December 31, 2022, and accordingly our current cash balances will not be sufficient to fund our operating expenses after December 31, 2022. We have received only $186,775 in revenues since our inception through December 31, 2022 and have incurred an accumulated net loss of $3,381,481 and accumulated net cash used in operations of $1,222,672.
Unless we begin generating more revenues in the near future, we anticipate that we will continue to incur net losses in the near term, and we may never be able to achieve profitability. We expect to continue to incur losses for the foreseeable future. In order to achieve profitable operations, we need to generate significant revenues from leasing fees. We cannot be certain that our business strategies will be successful or that will we generate significant revenues and become profitable. Additionally, we will need to obtain additional public or private equity financings or debt financings in order to continue operations.
Revenue recognition
On January 1, 2018, the Company adopted the provisions of ASC 606 Revenue from Contracts with Customers, and related Accounting Standards Updates. This new revenue recognition standard has a five-step process: a) Determine whether a contract exists; b) Identify the performance obligations; c) Determine the transaction price; d) Allocate the transaction price; and e) Recognize revenue when (or as) performance obligations are satisfied. The impact of the Company’s initial application of ASC 606 did not have a material impact on its financial statements and disclosures.
Income taxes
The Company uses the liability method of accounting for Income Taxes. Under this method, 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. A valuation allowance can be provided for a net deferred tax asset, due to uncertainty of realization.
Net loss per common share
Net loss per common share is computed pursuant to ASC No. 260 "Earnings per Share." Basic net loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by dividing net loss by the weighted average number of shares of common stock and potentially outstanding shares of common stock during each period. There were no potentially dilutive debt or equity instruments issued or outstanding during the twelve months ended December 31, 2022 and 2021.
Recently Issued Accounting Pronouncements
We have reviewed all the recently issued, but not yet effective, accounting pronouncements and we do not believe that the future adoption of any such pronouncements may be expected to cause a material impact on our financial condition or the results of our operations.
Year Ended December 31, 2022 as compared to the Year Ended December 31, 2021
Revenues
Revenues for the year ended December 31, 2022 were $0 compared to $15,825 for the year ended December 31, 2021. The decrease in revenue in 2022 is related to operating leases that were terminated in 2021. There were no operating leases in 2022. The Company incurred no cost of revenue for 2022 and 2021. A consulting agreement was executed in December of 2022 and amortized over a period of ten (10) months starting in January 2023 with a non-related third party.
Operating Expenses
Operating expenses for the year ended December 31, 2022 were $332,625 as compared to $ 423,905 for the year ended December 31, 2021. Expenses in 2022 compared to 2021 included $22,500 compared to $47,500 in consulting to unrelated party, $151,500 compared to $159,000 in consulting to related party, $120,636 compared to $182,192 in general and administrative, and $37,989 compared to $35,213 in professional fees. The decrease in expenses in 2022 is attributable to a decrease in general and administrative expenses and consulting fees.
Interest Income/Expense
Interest income from related parties for the year ended December 31, 2022 was $51,406 compared to $25,688 in the year ended December 31, 2021. The Company entered into a new direct financing lease with a related party in 2022.
Interest expense to related parties for the twelve months ended December 31, 2022 was $138,684 and $100,804 in the twelve months ended December 31, 2021. The increase in interest expense in 2022 is directly related to an increase in the indebtedness of the Company with the additional new loan.
Interest expense to unrelated parties was $5,977 for the twelve months ended December 31, 2022 and $6,515 for the twelve months ended December 31, 2021. The decrease in 2022 is directly related to the reduction in the in the balance owed as payments have been made according to the loan agreement.
Net Loss
The net loss for the twelve months ended December 31, 2022 was $425,880 as compared to a loss of $458,648 for the twelve months ended December 31, 2021 due to the factors discussed above. The net loss decreased in 2022 due to a decrease in administrative fees accrued to unrelated parties.
Liquidity & Capital Resources
Our financial statements have been prepared on a going concern basis which assumes the Company will be able to realize its assets and discharge its liabilities in the normal course of business for the foreseeable future. As at December 31, 2022 the Company had total assets of $912,383, comprised primarily of $170,847 in cash, $23,203 in property and equipment (net), and current liabilities of $2,002,199 consisting of a working capital deficit of $1,623,586. The Company has incurred losses from inception to December 31, 2022 of $3,381,481 and further losses are anticipated in the development of our business, raising substantial doubt about the Company’s ability to continue as a going concern for a period of one year from April 14, 2023. The ability to continue as a going concern is dependent upon the Company generating profitable operations in the future and, or, obtaining the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. There is no assurance that these events will be satisfactorily completed.
The Company may raise additional capital through the sale of its equity securities, through an offering of debt securities, or through borrowings from financial institutions. By doing so, the Company hopes to generate profits. Management believes that actions presently being taken to obtain additional funding provide the opportunity for the Company to continue as a going concern.
Cash Flows for the Year Ended December 31, 2022 Compared to the Year Ended December 31, 2021
Operating Activities
During the year ended December 31, 2022, we received $151,844 in cash from operating activities, compared to $187,815 used during the year ended December 31, 2021. The increase in cash during 2022 was primarily due to a decrease in the amount of cash used to pay for expenses incurred by the company and the receipt of $175,000 advance payment for consulting services to be performed in 2023.
Investing Activities
During the year ended December 31, 2022 we used $649,000 from investing activities related the purchase of new equipment, compared to $38,981 provided during the year ended December 31, 2021. The increase used for 2022 was due to a purchase of assets for leasing.
Financing Activities
During the year ended December 31, 2022, net cash provided by financing activities were $638,845 compared to $128,519 during the year ended December 31, 2021. The increase was due primarily to the funds borrowed from a related party used to purchase equipment used in direct finance agreement.
Stockholder Matters
Total stockholders’ deficit was $1,594,503 on December 31, 2022 and was $2,081,123 on December 31, 2021.
Management expects to raise $375,000 in capital through the issuance of debt and equity in 2023 and believes it will be able to raise sufficient capital over the next twelve months to finance operations. However, there can be no assurances that the Company will be successful in this regard or will be able to eliminate its operating losses. The accompanying financial statements do not contain any adjustments which may be required as a result of this uncertainty.
Management estimates that the cost of operating our business for the next 12 months will require additional capital of $375,000 or approximately $31,250 per month, consisting of: $10,000 for officers’ salaries, $5,000 for executive marketing assistants, $1,500 for additional office space, $1,500 for telecom and communications, $10,584 for marketing efforts, $3,000 for legal and accounting costs.
The Company intends to hold discussions with existing shareholders, new prospective shareholders and various lenders in pursuing the capital we need for the upcoming twelve months of operations. Additionally, the Company may elect to draw down additional proceeds from its line of credit with FinTekk AP, LLC. There can be no assurance that we will be able to raise any additional equity or debt capital.
Mr. O'Connell is also the managing member and majority membership interest holder of General Pacific Partners, LLC a limited liability company (“GPP”). In February of 2014, the Company established a $450,000 unsecured line of credit with GPP (the “Line of Credit”). The terms of the Line of Credit provide for interest at 10% per annum on all outstanding balances. The availability of funds for draw down from this line of credit is subject to the approval of Mr. O’Connell. Beginning January 1, 2023, FinTekk AP, LLC a Texas single member limited liability company owned by Kevin O’Connell assumed the line of credit. As of December 31, 2021, we have $0 balance on the GPP line of credit.
Mr. O'Connell is the managing member and the majority membership interest holder of DEVCAP Partners, LLC, a limited liability company (“DEVCAP”). In February of 2014, the Company established a $450,000 unsecured line of credit with DEVCAP (the “Line of Credit). The Company’s liability to DEVCAP has been assigned to FinTekk AP, LLC. Mr. O’Connell owns a majority interest in FinTekk AP, LLC. FinTekk AP, LLC and FinTekk owns approximately seventy-eight (87%) of the outstanding shares of common stock of the Company. The terms of the Line of Credit provide for interest at 10% per annum on all outstanding balances. The availability of funds for draw down from this line of credit is subject to the approval of Mr. O’Connell. As of December 31, 2022, we owe $35,129 on the FinTekk line of credit, which is presented as part of “Line of credit from related parties” account.
The Company’s capital requirements consist of general working capital needs, scheduled principal and interest payments on debt when required, obligations, and capital expenditures. The Company’s capital resources consist primarily of cash generated from proceeds through the drawing down of capital from our lines of credit. At December 31, 2022, the Company had cash in bank of $170,847.
Experienced and Dedicated Personnel
We intend to maintain a highly competitive team of experienced and technically proficient employees and motivate them through a positive work environment and stock ownership. We believe that employee ownership, which may be encouraged through a stock option plan, is essential for attracting, retaining and motivating qualified personnel. While we have not yet adopted a stock option plan, we intend to do so in the near future.
Financing Needs
The Company may only have sufficient funds to conduct its operations through December 31, 2023. We earned no revenue in 2022, and $15,825 for the year ended December 31, 2021. It is anticipated that the Company will generate additional revenue in 2023; however, there can be no assurance that if in fact the Company does generate increased revenue in 2023, that such revenues would be sufficient to sustain or grow the operations. It is therefore anticipated that the Company will need additional capital in order to continue operations.
The Company presently does not have any available outside credit, bank financing or other external sources of liquidity, other than the net proceeds we receive from our related party lines of credit. Due to its brief history and historical operating losses, the Company's operations have not been a source of liquidity. The Company will need to obtain additional capital in order to continue operations. In order to obtain capital, the Company may need to sell additional shares of its common stock or borrow funds from private lenders. There can be no assurance that additional financing will be available in amounts or on terms acceptable to the Company, if at all.
The Company cannot guarantee that it will be able to obtain additional capital. The Company will seek capital from the issuance of equity or debt securities, obtaining credit facilities, or other financing mechanisms. The recent downturn in the U.S. stock and debt markets could make it more difficult to obtain financing through the issuance of equity or debt securities. Even if the Company is able to raise the funds required, it is possible that it could incur unexpected costs and expenses or experience unexpected cash requirements. Further, if the Company issues additional equity or debt securities, stockholders may experience additional dilution or the new equity securities may have rights, preferences or privileges senior to those of existing holders of the Company's common stock. If additional financing is not available or is not available on acceptable terms, the Company will have to curtail or may even cease its operations.
Recent Financings
As of December 31, 2022, we had a balance owing of $35,129 to one related party; FinTekk AP, LLC and $206,904 to a related party lender, Gemini Southern, LLC, pursuant to unsecured Line of Credit Agreements and a loan payable. The Line of Credit Agreements and loan payable provide for interest at the rate of 10% per annum.
On February 4, 2021, the Company acquired a 1983 Toyota Hilux pick-up truck to be used in the business for light duty towing and advertising and promotion. The truck was acquired through a loan from the FinTekk AP, LLC line of credit. The purchase price was $36,114.
On July 1, 2022 the Company borrowed $649,000 from Gemini Southern. The terms of the loan call for monthly payments on the loan due on the first of each month, a term of 48 months with an interest rate of twelve 12%. On July 5th, 2022, the Company used the proceeds from the loan to acquire two Competition trailers and two over the road tractors. The equipment was then leased to a third-party lessee. Monthly lease payments are $17,250 per month. The Company received a personal guarantee from the owner of the Lessee, and is listed as an additional insured on the Lessee’s property insurance policy.

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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 AND SUPPLEMENTARY DATA
The financial statements required by Item 8 are submitted in a separate section of this report, beginning on, and are incorporated herein and made a part hereof.

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ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS
ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURES
None

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ITEM 9A. CONTROLS AND PROCEDURES
ITEM 9A - CONTROLS AND PROCEDURES
Evaluation of disclosure controls and procedures
Based upon an evaluation of the effectiveness of our disclosure controls and procedures performed by our Chief Executive Officer as of the end of the period covered by this report, our Chief Executive Officer concluded that our disclosure controls and procedures have not been effective as a result of a weakness in the design of internal control over financial reporting identified below.
As used herein, “disclosure controls and procedures” mean controls and other procedures of our company that are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities 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 us in the reports that we file or submit under the Securities Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
Management’s Report on Internal Control over Financial Reporting
Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rule 13a-15(f). The Company’s internal control over financial reporting is a process designed to provide reasonable assurance to our management and board of directors regarding the reliability of financial reporting and the preparation of the financial statements for external purposes in accordance with accounting principles generally accepted in the United States of America.
Our internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States of America, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.
We are a Smaller Reporting Company with limited revenues, with a relatively small number of bookkeeping entries.
Our Chief Executive Officer, who is also our Chief Financial Officer has, as of the end of the period covered by this report, carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Rule 13a-15(b) of the Exchange Act. Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this annual report, our disclosure controls and procedures were not effective at the reasonable assurance level discussed above, due to (i) there is no Audit Committee; and (ii) there is no internal accounting expertise in the Company.
This annual report does not include an attestation report of our registered independent public accounting firm regarding internal control over financial reporting because Management’s report was not subject to attestation by our registered independent public accounting firm.
Changes in Internal Control Over Financial Reporting
No changes in our internal control over financial reporting occurred during the year ended December 31, 2022 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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ITEM 9B. OTHER INFORMATION
ITEM 9B - OTHER INFORMATION
None
PART III

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ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
ITEM 10 - DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Directors and Executive Officer
MANAGEMENT
Name Age Position
Kevin P. O’Connell(2) Sole Director, President and Chief Executive Officer
Larry Krogh(1)
Cody S. Ware(1)
Rayna Austin(1) CFO & Director
Robert J. Waltos(1) Director
_______________
(1) On December 15, 2022, Larry Krogh, Rayna Austin, and Robert J. Waltos (the “Former Directors) resigned as directors of the Registrant. Also on December 15, 2022, Cody S. Ware resigned as Chief Executive Officer and President. There were no disagreements known to the Registrant between the Former Directors, Cody S. Ware and the Registrant with regard to the Registrant’s operations, policies or operations.
(2) Pursuant to the Consent of a shareholder holding the majority of common shares entitled to vote at a meeting of common shareholders, Kevin P. O’Connell was elected as sole director of the Registrant. Also on December 15, 2022, Kevin P. O’Connell was elected as the Chief Executive Officer and President of the Registrant.
Kevin P. O’Connell, Sole Director and Chief Executive Officer. From 1997 through the present, Mr. O’Connell has led venture capital investments and asset management (real estate & securities) strategies with particular focus in the general capital markets consisting of private and public financing, mergers and acquisitions, and corporate restructurings. He is the founder and managing partner of FinTekk AP, LLC a Southern California firm providing advisory services, direct investment and capital markets consulting. Mr. O’Connell has been a direct principal investor and active board member having managed the strategic decisions, equity/debt financing and developmental stage efforts of companies engaged in the technology, healthcare and environmental industries.
He received a Bachelor of Arts (BA) from California State University, Northridge (CSUN), earned his Master of Business Administration (MBA) from Pepperdine University and completed the Corporate Governance Program at Harvard Business School (HBS) in Boston, MA.
Rayna Austin - Chief Financial Officer On February 1, 2021, Ms Austin was appointed CFO and director for the Company. She resigned as a director on December 15, 2022. From February of 2014 through the present, Ms. Austin has provided management consulting, business development and accounting for small businesses through her company, RMA Services. Ms. Austin received a Bachelor of Arts (BA) in Criminal Justice and minor in Psychology from the University of Nevada, Las Vegas, earned her Paralegal Certification from University of California Irvine, and her Accounting and QuickBooks Certifications from the National Association of Certified Public Bookkeepers.

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ITEM 11. EXECUTIVE COMPENSATION
ITEM 11 - EXECUTIVE COMPENSATION
Our former Chief Executive Officer, Cody Ware, received $4,500 per month pursuant to an oral understanding.
There are no written employment agreements with management. Management compensation will be determined by the board of directors based upon revenues and profits, if any, of the Company.
The officers and directors have the responsibility to determine the timing of remuneration for key personnel.
The Company does not intend to pay directors a separate fee for their services.
The following table summarized our executive compensation for the years ended December 31, 2022 and 2021.
Stock
Compensation
All Other
Annual Compensation
Name/Position
Year
Salary
Bonus
Options
Plans
Compensation
Total
Kevin P. O’Connell Sole Director and CEO (1)
$ -
$ -
$ -
$ -
$ 97,500
$ 97,500
$ -
$ -
$ -
$ -
$ 105,000
$ 105,000
Cody Ware - Former Chief
$ -
$ -
$ -
$ -
$ -
$ -
Executive Officer (2)
-
-
-
-
54,000
54,000
Rayna Austin (3)
$ -
$ -
$ -
$ -
$ 96,000
$ 96,000
$ -
$ -
$ -
$ -
$ -
$ -
____________________
(1) Mr. O’Connell was appointed CEO on December 15, 2022.
(2) Mr. Ware was appointed Chief Executive Officer on September 25, 2018. He was paid $1,500 per month pursuant to an oral understanding with the Company. Beginning July 2020 and continuing through December 2022, he was paid $4,500 per month. He resigned as CEO on December 15, 2022.
(3) On December, 15, 2022, Ms. Austin resigned as director and was appointed Chief Financial Officer effective on the same day.
There are no written employment agreements with management. Management compensation will be determined by the board of directors based upon revenues and profits, if any, of the Company.
Director Independence
Our board of directors is currently composed of one member, who does not qualify as independent directors in accordance with the published listing requirements of the NASDAQ Global Market. The NASDAQ independence definition includes a series of objective tests, such as that the director is not, and has not been for at least three years, one of our employees and that neither the director, nor any of his family members has engaged in various types of business dealings with us. In addition, our board of directors has not made a subjective determination as to each director that no relationships exist which, in the opinion of our board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director, though such subjective determination is required by the NASDAQ rules. Had our board of directors made these determinations, our board of directors would have reviewed, and discussed information provided by the directors and us with regard to each director’s business and personal activities and relationships as they may relate to us and our management.

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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 certain information regarding the beneficial ownership of the issued and outstanding shares of our common stock as of December 31, 2022 by the following persons:
Name
No. of Shares owned
Percentage of Shares Outstanding
FinTekk AP, LLC (1)
377,360(2)
87%
Steven Verska
8,300
4.7%
GB Investments, Inc. (3)
13,000
3.6%
Cassin Farlow, LLC
7,600
1.7%
Gemini Southern, LLC (3)
17,500
4%
Directors and Officers as a Group
.04%
_______________
(1) Kevin O’ Connell has full investment authority for shares of FinTekk Partners, LLC. On February 26, 2019, DEVCAP Partners, LLC transferred all of its shares in the Company to FinTekk AP, LLC.
(2) Includes 250,000 shares that were not as yet issued by the Transfer Agent as of December 31, 2022
(3) Steve Urvan has full investment authority for shares f owned by GB Investments, Inc. & Gemini Southern LLC
Convertible Class A Preferred Stock
On December 15, 2022, the Company entered into a Debt to Equity Conversion Agreement (the “DE Agreement”) with Gemini Southern, LLC, a Delaware limited liability company (“GSI”). Pursuant to the DE Agreement, GSI agreed to exchange $850,000 of principal indebtedness owed to GSI by the Company for 3,400,000 shares of newly created Convertible Class A Preferred Stock of the Company (the “Class A Preferred”). The Class A Preferred provides for a the payment of a $0.12 per share dividend, which will be accrued. Distribution of all or part of the accrued dividends are at the discretion of the Company. Each share of Class A Preferred is convertible, at any time at the Company’s discretion, into one share of common stock of the Company. The Class A Preferred was issued on January 10, 2023.
Long Term Incentive Awards
Option Grants in Last Fiscal Year
We have not awarded any options to our executive officers under any incentive plans.
Aggregate Option Exercises in Last Fiscal Year and Fiscal Year End Option Values
There have been no option exercises.
Employment Contract and Termination of Employment Agreements
We have no employment agreements with any officers or employees.
Limitations on liability and indemnification of officers and directors
Our certificate of incorporation includes a provision that eliminates the personal liability of our directors for monetary damages for breach of fiduciary duty as a director, to the fullest extent permitted by Nevada Revised Statutes. Our certificate of incorporation also provides that we must indemnify our directors and officers to the fullest extent permitted by Nevada law and advance expenses to our directors and officers in connection with a legal proceeding to the fullest extent permitted by Nevada law, subject to certain exceptions. We are in the process of obtaining directors’ and officers’ insurance for our directors, officers and some employees for specified liabilities.
The limitation of liability and indemnification provisions in our certificate of incorporation may discourage stockholders from bringing a lawsuit against directors for breach of their fiduciary duty. They may also have the effect of reducing the likelihood of derivative litigation against directors and officers, even though an action of this kind, if successful, might otherwise benefit us and our stockholders. Furthermore, a stockholder’s investment may be adversely affected to the extent we pay the costs of settlement and damage awards against directors and officers pursuant to these indemnification provisions. However, we believe that these indemnification provisions are necessary to attract and retain qualified directors and officers.
SEC Policy on Indemnification
Insofar as indemnification for liabilities arising under the Securities Act may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the SEC such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable.
Long Term Incentive Plans
There are no long-term incentive plans.

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ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE
Kevin P. O’Connell is the majority membership holder of DEVCAP Partners, LLC. DEVCAP Partners, LLC has established a Line of Credit with the Company of $450,000. The Company’s liability to DEVCAP has been assigned to FinTekk. Mr. O’Connell owns a majority interest in FinTekk AP, LLC. Fintekk owns approximately eighty seven (87%) of the outstanding shares of common stock of the Company. The receipt of funds from this line of credit is subject to the approval of DEVCAP Partners, LLC. As of December 31, 2022, we had a balance owing of $35,129 from the Line of Credit. The terms of the Line of Credit contain annualized interest of 10%, with quarterly interest payments paid by the Company on outstanding balances. Mr. O’Connell may have a conflict of interest should we determine to draw upon the line of credit. He will have to determine, whether it is in the best interest of DEVCAP Partners, LLC to approve or decline the “loan” or, as our control shareholder, if it is in our best interest to approve the loan. We had accrued interest owing of $26,411 on December 31, 2022.
In addition, we have a line of credit established with General Pacific Partners, LLC (GPP). Kevin P. O’Connell is the majority membership holder of GPP. This line of credit with the Company is $450,000. The receipt of funds from this line of credit is subject to the approval of GPP. As of December 31, 2022, we had no balance owing ($0) to the Line of Credit. The terms of the Line of Credit contain annualized interest of 10%, with quarterly interest payments paid by the Company on outstanding balances. Mr. O’Connell may have a conflict of interest should we determine to draw upon the line of credit. He will have to determine, whether it is in the best interest of GPP to approve or decline the “loan” or, as our control shareholder, if it is in our best interest to approve the loan. We had accrued interest owing of $4,732 on December 31, 2022.
On January 1, 2014, the Company executed a three-year consulting agreement with DEVCAP Partners, LLC whereby the Company agreed to pay $7,500 a month for consulting services to be provided to the Company such as marketing, business development, accounting, finance, corporate structure and tax planning. On January 1st, 2018 the agreement with DEVCAP Partners, LLC was extended through December 31, 2026.
In November 18, 2019, the Company acquired from Rick Ware Racing, a 2007 Featherlite spread axle trailer and a 2008 Freightliner truck both used primarily in NASCAR related operations. The truck and the hauler can be used for promotional / advertising services. The purchase price of the Truck & Hauler was $190,000. The Company paid for the Truck & Hauler with cash. Subsequently the Company accessed $190,000 from its line of credit with Geminin Southern, LLC, a related party. On February 5, 2020. the truck and trailer were leased back to Rick Ware Racing, LLC for $5,003 per month for 48 months.
On March 1, 2018, we leased the Hauler to Rick Ware Racing, LLC. The term of the Lease is for 4 years, payable at $3,670 per month.
On April 2, 2021, the 2006 Ultra Comp trailer was sold back to Rick Ware Racing, LLC for $75,095 and the lease was terminated.
We have entered into a trailer lease agreement with Rick Ware through February 1st, 2022. The lease terms are as described herein above.
On February 4, 2021, the Company acquired a 1983 Toyota Hilux pick-up truck to be used in the business for light duty towing and advertising and promotion. The truck was acquired through a loan from the FinTekk AP, LLC line of credit. The purchase price was $36,113.
On December 15, 2022, the Company entered into a Debt to Equity Conversion Agreement (the “DE Agreement”) with Gemini Southern, LLC, a Delaware limited liability company (“GSI”). Pursuant to the DE Agreement, GSI agreed to exchange $850,000 of principal indebtedness owed to GSI by the Company for 3,400,000 shares of newly created Convertible Class A Preferred Stock of the Company (the “Class A Preferred”). The Class A Preferred provides for a the payment of a $0.12 per share dividend, which will be accrued. Distribution of all or part of the accrued dividends are at the discretion of the Company. Each share of Class A Preferred is convertible, at any time at the Company’s discretion, into one share of common stock of the Company.
Conflicts of Interest
Each officer and director is, so long as she or he is an officer or director, subject to the restriction that all opportunities contemplated by our plan of operation that come to his or her attention, either in the performance of his or her duties or in any other manner, will be considered opportunities of, and be made available to us and the companies that he is affiliated with on an equal basis. A breach of this requirement will be a breach of the fiduciary duties of the officer or director. If we or the companies to which the officer or director is affiliated each desire to take advantage of an opportunity, then the applicable officer or director would abstain from negotiating and voting upon the opportunity. However, the officer or director may still take advantage of opportunities if we should decline to do so. Except as set forth above, we have not adopted any other conflict of interest policy in connection with these types of transactions.

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ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
ITEM 14 - PRINCIPAL ACCOUNTING FEES AND SERVICES
We retained Assurance Dimensions, Certified Public Accountants and Associates of Coconut Creek, FL to audit the 2022 and 2021 financial statements. The following are the services provided and the amounts billed.
Audit & Review Fees
The aggregate fees billed, for professional services rendered for the reviews of quarterly reports and the audit of the Company’s annual financial statements during the fiscal years ended December 31, 2022 and 2021, was $37,193 and $35,213, respectively.
Related Fees
For the year ended December 31, 2022 and 2021 there were no fees for services reasonably related to the performance of the audit or review of the financial statements outside of those fees disclosed above under “Audit Fees”.
Tax Fees
For the years ended December 31, 2022 and 2021, the Company incurred no fees for services for tax compliance, tax advice and tax planning work.
All Other Fees
For the year ended December 31, 2022 and 2021 there were no other fees billed for products and services outside of those fees disclosed above under “Audit Fees”, “Audit-Related Fees” and “Tax Fees”.
Audit Committee Pre-Approval Policies and Procedures
The policy of the board of directors is to pre-approve all audit and permissible non-audit services provided by our independent auditors. These services may include audit services, audit-related services, tax services and other services. Pre-approval is generally provided for up to one year and any pre-approval is detailed as to the particular service or category of services. The independent auditor and management are required to periodically report to the board of directors regarding the extent of services provided by the independent auditor in accordance with this pre-approval. The chair of the board of directors is also authorized, pursuant to delegated authority, to pre-approve additional services of up to $5,000 per engagement on a case-by-case basis, and such approvals are communicated to the full board of directors at its next meeting.

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ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
ITEM 15 - EXHIBITS
(1) Financial Statements
The following financial statements of the Company are included in Part II, Item 8 of this Report:
Report of Independent Registered Public Accounting Firm
Balance Sheets at December 31, 2022 and 2021
Statements of Operations for the Years Ended December 31, 2022 and 2021
Statements of Changes in Stockholders’ Deficit for the Years Ended December 31, 2022 and December 31, 2021
Statements of Cash Flows for the Years Ended December 31, 2022 and 2021
Notes to Financial Statements
(2) Financial Statement Schedules
Schedules are omitted because the required information is not present or is not present in amounts sufficient to require submission of the schedule or because the information required is given in the financial statements or the notes thereto.
(3) Exhibits
Exhibit #
Description
3(ii).1
Corporate Bylaws for The Teardroppers, Inc. *
10.1(*)
Line of Credit Agreement with DEVCAP Partners, LLC
10.2(*)
Purchase Order for Teardrop Trailer dated July 23,
10.3(*)
Consulting Agreement with DEVCAP Partners, LLC dated January 1, 2014
10.4(*)
Consulting Agreement with Gemini Southern LLC, dated September 30, 2013
10.5(*)
Consulting agreement with Rayna Austin, dated October 8, 2013
31.1
Section 302 Certification by the Corporation’s Chief Executive Officer
31.2
Section 302 Certification by the Corporation’s Chief Financial Officer
32.1
Section 906 Certification by the Corporation’s Chief Executive Officer
32.2
Section 906 Certification by the Corporation’s Chief Financial Officer
101.INS
Inline XBRL Instance Document
101.SCH
Inline XBRL Schema Document
101.CAL
Inline XBRL Calculation Linkbase Document
101.DEF
Inline XBRL Definition Linkbase Document
101.LAB
Inline XBRL Label Linkbase Document
101.PRE
Inline XBRL Presentation Linkbase Document
Cover Page Interactive Data File (formatted in IXBRL, and included in exhibit 101).
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* Previously filed with Form S-1