Your Event, Inc.

The Company faces a serious inventory problem. Current inventories consist of unsold and unpaid merchandise from last year. The Company has sold-out its more popular items and is unable to replace these items until they pay-off the inventory on hand. Based on the fact that higher turnover merchandise is not available for sale, the Company is not spending money on marketing programs. This has negatively affect business results for this year. The Company needs new merchandise to sell, but they are unable to order new or popular selling merchandise until their past inventory has been paid-off. The Company's most popular items are not available, until such time as they pay off their outstanding inventory debt. Unless new funding comes into the Company, or management can find another solution, management expects it will take considerable time to pay-off this inventory debt.

For the third quarter ended May 31, 2015, the Company generated $82,290 in revenues resulting in a gross profit of $50,163. This compares to $294,208 in revenues for the same period last year with a gross profit of $95,985. Revenues fell based on a lack of inventory for the most popular baseball teams. Current inventories consist of unsold and unpaid merchandise from last year. The Company needs to sell this inventory before they can order inventory that has a higher turnover. For this reason, the Company has not been spending money on marketing and management expects revenues will continue to suffer this year.

During the quarter ended May 31, 2015, the Company had unaudited $7,284 in cash and a prepaid expense of $3,170, accounts receivable of $36,234, inventory of $1,397,985 for total current assets of $1,444,673. Unaudited current liabilities, as of May 31, 2015, consisted of accounts payable and accrued liabilities of $2,044,228, loan payable of $6,683, loan payable-related party of $1,066,300 and interest payable of $19,246 for total current liabilities of $3,136,457. During the quarter ended May 31, 2015, the Company wrote-off $99,688 as accounts receivable and classified the write-off as bad debt, since the funds were no longer collectable.

The Company used net cash in operations of $(188,258), generated cash of $21,811 from investing activities, and generated cash of $51,889 from financing activities during the nine month period ended May 31, 2015. The funds generated from financing activities included $66,300 in proceeds from a former stockholder.