Overview
TANICO INC. has been incorporated on May 3, 2021 in the State of Nevada. We have never been involved in any reclassification, merger, consolidation, purchase or sale of a significant amount of assets, nor have we ever declared bankruptcy, been in receivership, or been involved in any legal action or proceedings. Since incorporation, management has developed a detailed business plan to provide customers with unique and innovative solution for their needs.
Products/Services
Description of Product or Services
TANICO INC. is a new company that develops children's games that can provide valuable feedback to parents about child psychological well-being and early detection of any potential problems of psychological development. In the modern world, parents do not have enough time and experience to identify potentially dangerous psychological deviation in child behavior on early-stage (during early years of child development) and address it adequately.
The games we develop will generate specific situations and monitor the child's reaction. Multiple consecutive steps allow seeing some repeating patterns and trends. There are different types of games for each age, although by analyzing children's skills and intellectual abilities, the level of the games will adjust automatically. No personal data is stored on our gaming servers. Each account is only associated with parents’ email and/or with unique id number and password. Account is optional and is only necessary if parents would like to receive feedback. Parents will receive feedback regularly. In case of early problems, they will receive a recommendation to see a professional help for their child.
With parents’ consent we can provide data to help professional child psychologists to conduct long-term monitoring of child behavior and receive more information about child mental development. The psychologists can provide their valuable input on what game scenarios can identify different behavior patterns.
Target Market and Clients/potential Clients
Our target market is any family with preschool children age 4 to 7 years old, also professional child psychologists who wants with parents’ permission to monitor child behavior on a long-term basis.
During Phase 1 (initial stage) software development (online gaming, smart devices – smart phone, notepads etc.)
In Phase 2 – deployment, google play, apple, hosting gaming website.
Phase 3 business development.
Source of revenue
We have identified three main marketing client groups associated with the various streams of revenue:
Source #1 – Parents, for small subscription fee they can insure those children grow healthy and happy
Source #2 – Professional psychologists’ community, using our games for monitoring children with psychological deviations, for medical research.
The main target customer group will be parents. Today several billion people use personal computers or other internet enabled devices. Capturing a small sector of this user population could allow us to sell our products at a very attractive and affordable price.
Marketing Strategy
Our marketing strategy is to use inexpensive and widely available advertising vehicles such as
If we can obtain more financial resources, we can include Google advertising offers.
To increase customer interest in our products we can provide a free product trial for a fixed period of time.
Another option is to provide light version of our application for free and to offer more security and functionality in a full edition version.
The pricing of our products will be inexpensive allowing to penetration of a wider customer base.
Sources and Availability of Products and Supplies
We do not depend on any suppliers or specific products.
Dependence on One or a Few Major Customers
Our target market is mostly retail customers so we do not have any dependencies on one or a few major customers.
Patent, Trademark, License & Franchise Restrictions and Contractual Obligations & Concessions
There are no inherent factors or circumstances associated with this industry, or any of the products or services that we expect to be providing that would give rise to any patent, trademark or license infringements or violations. We have not entered into any franchise agreements or other contracts that have given, or could give rise to obligations or concessions.
Out web domain and IP address as well as company information will be protected by our domain host.
We do not own, either legally or beneficially, any patents or trademarks.
Governmental and Industry Regulations
The company upon implementing its business plan expects to be in compliance with U.S. federal laws, including the U.S. Privacy Act of 1974, Health Insurance Portability and Accountability Act of 1996, Children's Online Privacy Protection Act of 1998 (COPPA), 1999 Gramm-Leach Bliley Act that protects the rights and data of U.S. consumers, patients, minors and others.
The Nevada state laws (Nevada Revised Statutes – NRS)
CHAPTER 603A - SECURITY AND PRIVACY OF PERSONAL INFORMATION
SECURITY OF INFORMATION MAINTAINED BY DATA COLLECTORS AND OTHER BUSINESSES
State of Nevada Online Privacy Policy - Effective Date 11/25/02 | 3.03 B.
We will also be subject to common business and tax rules and regulations pertaining to the normal business operations.
Research and Development Activities and Costs
We are capitalizing on prior scientific research and development that was done by our President and Director and have not yet spent any money on R&D. Once this offering is completed, we will have resource to continue our R&D program.
Compliance with Environmental Laws
Our operations are not subject to any environmental laws.
Facilities
We do not own or rent facilities of any kind. We conduct our operations from the facilities that our President provides to us free of charge.
Employees
We have only commenced limited operations and currently have no employees other than managing officers. Our President Ms. Tatiana Feneva spends approximately 20 hours per week on our business and our treasurer Ms. Maria Tomskaia devotes up to 12 hours per week to company’s operations.
Description Of Property
We do not currently own any real property of any kind.
Not applicable to smaller reporting companies.
Not applicable.
We do not own any real estate or other properties.
Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties. As of the date of this Year-End Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.
Market Information
There has been no market for our securities. Our common stock is not traded on any exchange or on the over-the-counter market. After the effective date of the registration statement relating to this prospectus, we hope to have a market maker file an application with the Financial Industry Regulatory Authority (“FINRA”) for our common stock to be eligible for trading on the OTCQB or another quotation board. We do not yet have a market maker who has agreed to file such application. There is no assurance that a trading market will develop, or, if developed, that it will be sustained. Consequently, a purchaser of our common stock may find it difficult to resell the securities offered herein should the purchaser desire to do so when eligible for public resale. As of September 30, 2022, no shares of our common stock have traded.
Number of Holders
As of September 30, 2022, the 7,475,000 issued and outstanding shares of common stock were held by a total of 30 shareholders of record.
Dividends
No cash dividends were paid on our shares of common stock during the fiscal years ended September 30, 2022. We have not paid any cash dividends since our inception and do not foresee declaring any cash dividends on our common stock in the foreseeable future.
Recent Sales of Unregistered Securities
None.
Purchase of our Equity Securities by Officers and Directors
Other Stockholder Matters
You should read the following discussion and analysis of our financial condition and results of operations together with our consolidated financial statements and the related notes and other financial information included elsewhere in this Prospectus. Some of the information contained in this discussion and analysis or set forth elsewhere in this Prospectus, including information with respect to our plans and strategy for our business and related financing, includes forward-looking statements that involve risks and uncertainties. You should review the “Risk Factors” section of this Prospectus for a discussion of important factors that could cause actual results to differ materially from the results described in or implied by the forward-looking statements contained in the following discussion and analysis.
Our cash balance was $33,294 as of September 30, 2022. We believe our cash balance is not sufficient to fund our limited levels of operations for any period of time. We have been utilizing funds received from our President and Director from the purchase of shares. She has no commitment, arrangement or legal obligation to advance or loan funds to the company. In order to implement our plan of operations for the next twelve-month period, we require a minimum of $25,000 (approximately $15,000 of which are legal and registration fees for a public company) of funding from this offering. Being a development stage company, we have very limited operating history. After twelve months period we may need additional financing, for which we currently don’t have any arrangements.
Our independent registered public accountant has issued a going concern opinion. This means that there is substantial doubt that we can continue as an on-going business for the next twelve months unless we obtain additional capital to pay our bills. For the year ended September 30, 2022 we have incurred a loss of $18,173 with total accumulated deficit of $25,578; no significant revenue is anticipated until we complete our initial business development. There is no assurance we will ever reach that stage.
To meet our need for cash we are attempting to raise money from this offering. We believe that we will be able to raise enough money through this offering to expand our proposed operations, however there is no guarantee that we will stay in business after doing so. At the present time, we have not made any arrangements to raise additional cash, other than through this offering.
We are an “emerging growth company” as defined in the JOBS Act, and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies” including, but not limited to: not required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act; reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements; exemptions from the requirements of holding an annual non-binding advisory vote on executive compensation and nonbinding stockholder approval of any golden parachute payments not previously approved. In addition, Section 107 of the JOBS Act also provides that an “emerging growth company” can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an “emerging growth company” can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We are choosing to “opt out” of such extended transition period, and as a result, we will comply with new or revised accounting standards on the relevant dates on which adoption of such standards is required for non-emerging growth companies. Section 107 of the JOBS Act provides that our decision to opt out of the extended transition period for complying with new or revised accounting standards is irrevocable.
Results of Operations for the year ended September 30, 2022
For fiscal year ended September 30, 2022, we have not generated any revenue; same was the case for the period from May 3, 2021 (inception) to September 30, 2021.
For fiscal year ended September 30, 2022, our operating expenses were comprised of professional fees of $16,735 and general and administrative expenses of $1,438 as compared with $6,535 of professional fees and $870 in general and administrative expenses for the period from May 3, 2021 (inception) to September 30, 2021.
For the year ended September 30, 2022, cash used in operations was $11,433 compared with $905 for period from May 3, 2021 (inception) to September 30, 2021. Difference YoY due to higher audit and legal fees paid in current year.
For the year ended September 30, 2022, cash used in investing activities was $961, associated with the purchase of computer equipment.
For the year ended September 30, 2022, cash generated from financing activities was $29,561 compared with $17,032 for the period from May 3, 2021 (inception) to September 30, 2021. Difference YoY is primarily due to proceeds from sale of common shares.
To date we have sold 7,475,000 shares of common stock.
Activities to Date
A substantial portion of our activities to date focused on becoming a reporting public company to raise more capital to finance our business activities. Our President has also developed Plan of Operations. We have established the company office and provided information session and consulting about our services to one prospective customer.
We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.
Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next six months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of software; (ii) developmental expenses associated with a start-up business; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations.
Off Balance Sheet Arrangements
We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
Material Commitments
As of the date of this Annual Report, we do not have any material commitments.
Purchase of Significant Equipment
We do not intend to purchase any significant equipment during the next twelve months.
Liquidity and Capital Resources
As of September 30, 2022, the Company had $33,294 cash and current liabilities of $29,843 as compared with $16,127 of cash and $18,532 of current liabilities as of September 30, 2021. The net operating capital of the Company is not sufficient for the Company to remain operational long-term.
Since inception, Ms. Tatiana Feneva purchased 5,000,000 common shares. Our president and director also provided $16,843 long term loan to the company (non-interest bearing with no fixed term of repayment).
To meet our need for cash we are attempting to raise money through this Offering. We believe that we will be able to raise enough money through this Offering to expand our operations; however, there is no guarantee that business sustains long term. At the present time, we have not made any arrangements to raise additional cash, other than through this Offering.
We are an "emerging growth company" as defined in the JOBS Act, and we may take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies” including, but not limited to: not required to comply with the auditor attestation requirements of Section 404 of the Sarbanes-Oxley Act; reduced disclosure obligations regarding executive compensation in our periodic reports and proxy statements; exemptions from the requirements of holding an annual non-binding advisory vote on executive compensation and nonbinding stockholder approval of any golden parachute payments not previously approved. In addition, Section 107 of the JOBS Act also provides that an "emerging growth company" can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. In other words, an "emerging growth company" can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected under this section of the JOBS Act to maintain our status as an "emerging growth company" and take advantage of the JOBS Act provisions relating to complying with new or revised accounting standards under Section 102(b)(1) of the JOBS Act.
Going Concern Consideration
Our auditors have issued a “going concern” opinion, meaning that there is substantial doubt if we can continue as an on-going business for the next twelve months unless we obtain additional capital. The Company’s cash position may not be sufficient to support its daily operations. No substantial revenues are anticipated until we have completed the financing from this offering and implemented our plan of operations. Our only source for cash at this time is investments by others in this offering. We must raise cash to implement our strategy and stay in business. If we sell at least 25% of the shares in the offering we believe that we will have the resources to operate for the next 12 months, including for the costs associated with becoming a publicly reporting company. The company anticipates over the next 12 months the cost of being a reporting public company will be approximately $15,000.
Limited operating history and need for additional capital
There is no historical financial information about us upon which to base an evaluation of our performance. We are in start-up stage operations and have not generated any revenues. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services and products.