T
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QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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o
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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Nevada
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98-0539775
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(State
or other jurisdiction of incorporation or organization)
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(I.R.S.
Employer Identification Number)
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3905
National Drive, Suite 110
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20866
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Burtonsville,
MD
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(Zip
Code)
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(Address
of principal executive offices)
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Large
accelerated filer
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o
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Accelerated
filer
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o
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Non-accelerated
filer (Do not check if a smaller reporting company)
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o
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Smaller
reporting company
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T
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Item
1.
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Financial
Statements (Unaudited)
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3
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4
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5
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6
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7
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Item
2.
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11
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Item
4T.
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15
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PART
II OTHER INFORMATION
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Item
1.
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16
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Item
2.
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16
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Item
3.
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16
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Item
4.
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16
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Item
5.
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16
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Item
6.
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16
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February 28,
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August 31,
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|||||||
2009
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2008
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ASSETS
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Current
assets
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||||||||
Cash and cash equivalents
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$ | 280,918 | $ | 328,260 | ||||
Total
current assets
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280,918 | 328,260 | ||||||
Total assets
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$ | 280,918 | $ | 328,260 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
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||||||||
Liabilities
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Current
liabilities
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Accounts
payable
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$ | 8,849 | $ | 3,840 | ||||
Accrued payable
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- | 10,000 | ||||||
Total
current liabilities
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8,849 | 13,840 | ||||||
Commitments
and Contingencies
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||||||||
Stockholders'
equity
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||||||||
Common
stock: $0.0001 par value; 300,000,000 shares authorized, 53,864,600 issued
and outstanding at February 28, 2009 and August 31, 2008
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5,386 | 5,386 | ||||||
Additional
paid-in capital
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556,711 | 556,711 | ||||||
Deficit accumulated during the development
stage
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(290,028 | ) | (247,677 | ) | ||||
Total stockholders' equity
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272,069 | 314,420 | ||||||
Total liabilities and stockholders'
equity
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$ | 280,918 | $ | 328,260 |
Cumulative
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||||||||||||||||||||
Three
Months Ended
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Six
Months Ended
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February 28,
2005
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February 28,
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February 29,
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February 28,
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February 29,
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(inception)
to
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||||||||||||||||
2009
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2008
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2009
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2008
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February 28, 2009
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||||||||||||||||
Revenue
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$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Operating
expenses (income)
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||||||||||||||||||||
Option
fee (Note 5)
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- | - | - | - | 2,000 | |||||||||||||||
Research
and development (Note 5)
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- | 10,000 | (10,000 | ) | 10,000 | 175,839 | ||||||||||||||
Director
and officer fees- related party (Note 6)
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6,750 | 3,700 | 13,500 | 6,700 | 30,700 | |||||||||||||||
Professional
fees
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21,596 | 14,218 | 33,742 | 20,655 | 69,024 | |||||||||||||||
Other operating expenses
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3,104 | 2,831 | 5,527 | 4,586 | 21,405 | |||||||||||||||
Total operating expenses
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31,450 | 30,749 | 42,769 | 41,941 | 298,968 | |||||||||||||||
Operating
loss
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(31,450 | ) | (30,749 | ) | (42,769 | ) | (41,941 | ) | (298,968 | ) | ||||||||||
Other
income
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||||||||||||||||||||
Interest income
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- | 2,676 | 418 | 6,406 | 8,940 | |||||||||||||||
Total other income
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- | 2,676 | 418 | 6,406 | 8,940 | |||||||||||||||
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Net loss
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$ | (31,450 | ) | $ | (28,073 | ) | $ | (42,351 | ) | $ | (35,535 | ) | $ | (290,028 | ) | |||||
Net loss per common share:
basic
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$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||||||
Weighted average number
of common shares
outstanding: basic
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53,864,600 | 53,864,600 | 53,864,600 | 53,864,600 |
Deficit
accumulated
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|||||||||||||||||||
Common Stock
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Additional
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during
the
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Total
stockholders'
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||||||||||||||||
Shares
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Amount
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paid-in capital
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development stage
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equity (deficit)
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Common
stock issued at $0.0001 per share
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53,864,600 | $ | 5,386 | $ | (5,286 | ) | $ | - | $ | 100 | |||||||||
Net loss for the period ended August 31,
2005
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- | - | - | (52,898 | ) | (52,898 | ) | ||||||||||||
Balance,
August 31, 2005
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53,864,600 | 5,386 | (5,286 | ) | (52,898 | ) | (52,798 | ) | |||||||||||
Net loss for the year ended August 31,
2006
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- | - | - | (82,739 | ) | (82,739 | ) | ||||||||||||
Balance,
August 31, 2006
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53,864,600 | 5,386 | (5,286 | ) | (135,637 | ) | (135,537 | ) | |||||||||||
Conversion
of debt to equity on August 31, 2007
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- | - | 561,997 | - | 561,997 | ||||||||||||||
Net loss for the year ended August 31,
2007
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- | - | - | (27,405 | ) | (27,405 | ) | ||||||||||||
Balance,
August 31, 2007
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53,864,600 | 5,386 | 556,711 | (163,042 | ) | 399,055 | |||||||||||||
Net loss for the year ended August 31,
2008
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- | - | - | (84,635 | ) | (84,635 | ) | ||||||||||||
Balance,
August 31, 2008
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53,864,600 | $ | 5,386 | $ | 556,711 | $ | (247,677 | ) | $ | 314,420 | |||||||||
Net loss for the six months ended February 28,
2009
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- | - | - | (42,351 | ) | (42,351 | ) | ||||||||||||
Balance, February 28, 2009
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53,864,600 | $ | 5,386 | $ | 556,711 | $ | (290,028 | ) | $ | 272,069 |
Cumulative
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Six
Months Ended
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February 28,
2005
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February 28,
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February 29,
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(inception)
to
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2009
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2008
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February 28, 2009
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Cash
flows from operating activities
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Net
loss
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$ | (42,351 | ) | $ | (35,535 | ) | $ | (290,028 | ) | |||
Adjustments
to reconcile net loss to net cash used in operating
activities:
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Changes
in operating assets and liabilities:
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Increase
in accounts payable
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5,009 | - | 8,849 | |||||||||
Increase (decrease) in accrued
payable
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(10,000 | ) | 11,000 | - | ||||||||
Net cash flows used in operating
activities
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(47,342 | ) | (24,535 | ) | (281,179 | ) | ||||||
Cash
flows from financing activities
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Increase
in payable - related party
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- | - | 561,997 | |||||||||
Proceeds from the issuance of common
stock
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- | - | 100 | |||||||||
Net cash flows provided by financing
activities
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- | - | 562,097 | |||||||||
Increase
(decrease) in cash and cash equivalents
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(47,342 | ) | (24,535 | ) | 280,918 | |||||||
Cash
and cash equivalents at beginning of period
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328,260 | 399,055 | - | |||||||||
Cash and cash equivalents at end of
period
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$ | 280,918 | $ | 374,520 | $ | 280,918 | ||||||
Supplemental
cash flow information:
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Interest
paid in cash
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$ | - | $ | - | $ | - | ||||||
Income
taxes paid in cash
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- | - | - | |||||||||
Supplemental
non-cash transaction:
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Conversion
of debt to equity
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$ | - | $ | - | $ | 561,997 |
Three Months Ended
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Six Months Ended
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February 28,
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February 29,
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February 28,
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February 29,
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2009
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2008
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2009
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2008
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Numerator
- net loss
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$ | (31,450 | ) | $ | (28,073 | ) | $ | (42,351 | ) | $ | (35,535 | ) | ||||
Denominator
- weighted average number of common shares outstanding
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53,864,600 | 53,864,600 | 53,864,600 | 53,864,600 | ||||||||||||
Basic
net loss per common share
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$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) |
-
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Payment
of $2,000 in option fees upon execution of the ISURF
Agreement;
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-
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Payment
of $155,839 to support the research project entitled “Conduits with
Micropatterned Film for Peripheral Nerve Regeneration” of
which $50,000 was due within 90 days of execution of the ISURF Agreement,
and four subsequent equal payments of $26,460 each due quarterly,
beginning on January 31, 2006. An additional $50,000 was
payable in five equal installments of $10,000 each due every two months
upon the execution of the Amended ISURF Agreement on November 12,
2007. As of February 28, 2009, the Company had paid $155,839
pursuant to the original ISURF Agreement and $20,000 pursuant to the
Amended ISURF Agreement.
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-
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Contingent
upon satisfactory progress and success of the above project, provide an
additional $73,166 for the project entitled “Conduits with
Micropatterned Films for Optic Nerve Regeneration”. The Company did
not initiate the second research
project.
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Three Months Ended
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Six Months Ended
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February 28,
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February 29,
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Percentage
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February 28,
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February 29,
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Percentage
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2009
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2008
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Change
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2009
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2008
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Change
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Operating
expenses (income)
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Research
and development
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$ | - | $ | 10,000 | (100 | )% | $ | (10,000 | ) | $ | 10,000 | * | % | |||||||||||
Director
and officer fees - related party
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6,750 | 3,700 | 82 | 13,500 | 6,700 | 101 | ||||||||||||||||||
Professional
fees
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21,596 | 14,218 | 52 | 33,742 | 20,655 | 63 | ||||||||||||||||||
Other
operating expenses
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3,104 | 2,831 | 10 | 5,527 | 4,586 | 21 | ||||||||||||||||||
Total
operating expenses
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$ | 31,450 | $ | 30,749 | 2 | % | $ | 42,769 | $ | 41,941 | 2 | % |
Item 1.
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Legal
Proceedings.
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Item 2.
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Unregistered
Sales of Equity Securities and Use of
Proceeds.
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Item 3.
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Defaults
Upon Senior Securities
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Item 4.
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Submission
of Matters to a Vote of Security
Holders
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Item
5.
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Other
Information
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Item
6.
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Exhibits
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Certification
of Principal Executive Officer Pursuant to Rule 13a-14 of the Securities
Exchange Act of 1934, As Adopted Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002. *
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Certification
of Principal Financial Officer Pursuant to Rule 13a-14 of the Securities
Exchange Act of 1934, As Adopted Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002. *
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Certification
of Principal Executive Officer Pursuant to 18 USC. Section 1350, As
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
*
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Certification
of Principal Financial Officer Pursuant to 18 USC. Section 1350, As
Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
*
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MicroChannel Technologies
Corporation
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(Registrant)
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April
13, 2009
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By: /s/ Meetesh Patel
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Meetesh
Patel
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President,
Chief Executive Officer, Director
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April
13, 2009
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/s/ David Gamache
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David
Gamache
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Chief
Financial Officer, Treasurer, Secretary,
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Director
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