Conquest Funding

CFI's balance sheet as of September 30, 2015 shows retained earnings of negative $31,772 and net income of negative $25,149, indicating the parent company has been operating at a loss.

“Retained Earnings -31,772.54 2,340.52 Net Income -25,149.42 -34,113.06 Total Equity 18,078.04 43,227.46”

The Company is entirely dependent on key personnel (principally the President) for all investment and management decisions; Noteholders have no control. In the event of death, incapacity or termination of key personnel, business operations may be adversely affected.

“The key personnel of the Company (currently, the President) will make virtually all decisions with respect to the management of the Company including, without limitation, the determination as to which loans to make and the terms thereof. The Noteholders will not have a voice in the management decisions of the Company and can exercise only a limited (if any) amount of control over the Company.”

The offering circular discloses that numerous self-dealing and affiliate-affiliate transactions will routinely occur, including loan origination fee structures not set by arm's-length negotiation, potential purchase/sale/hypothecation of loans between affiliates, loan servicing by the Company/CFI without independent review, and potential sale of foreclosed property to affiliated entities.

“ALL PROSPECTIVE INVESTORS SHOULD UNDERSTAND THAT NOTEHOLDERS WILL HAVE ABSOLUTELY NO DIRECT INTEREST, CONTROL, VOTING RIGHTS OR INVOLEMENT IN THE BUSINESS, AFFAIRS OR GOVERNANCE OF THE COMPANY. EACH PROSPECTIVE INVESTOR SHOULD UNDERSTAND THAT SELF-DEALING AND AFFILIATE-AFFILIATE TRANSACTIONS WILL ROUTINELY OCCUR AS A RESULT OF THE MATTERS CONTEMPLATED HEREIN.”