FLORIDA
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65-1139235
|
|
(State
or other jurisdiction of incorporation
|
(IRS
Employer Identification No.)
|
|
or
organization)
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PART
I. FINANCIAL INFORMATION
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||
Item
1. Consolidated Condensed Financial Statements and Notes - Quarter Ended
March 31, 2010
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4
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|
Item
2. Management's Discussion and Analysis or Plan of
Operations
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21
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|
Item
3. Quantitative and Qualitative
Disclosures about Market Risk.
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24
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Item
4T. Controls and Procedures
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24
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PART
II. OTHER INFORMATION
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||
Item
1. Legal Proceedings
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25
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Item
1A. Risk Factors
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25
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|
Item
2. Unregistered Sales of Equity Securities and Use of Proceeds
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25
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Item
3. Default Upon Senior Securities
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25
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Item
4. Removed and Reserved
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25
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Item
5. Other Information
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25
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|
Item
6. Exhibits and Reports on Form 8-K
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25
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Signatures
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26
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PAGE
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5
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CONDENSED
CONSOLIDATED BALANCE SHEETS AS OF MARCH 31, 2010 (UNAUDITED) AND DECEMBER
31, 2009
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PAGE
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6
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CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE THREE
MONTHS ENDED MARCH 31, 2010 AND 2009 AND FOR THE PERIOD FROM MAY 28, 2003
(INCEPTION) TO MARCH 31, 2010 (UNAUDITED)
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PAGES
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7 –
9
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CONDENSED
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIT) FOR
THE PERIOD FROM MAY 28, 2003 (INCEPTION) TO MARCH 31, 2010
(UNAUDITED)
|
PAGES
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10 –
11
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CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31,
2010 AND 2009 AND FOR THE PERIOD FROM MAY 28, 2003 (INCEPTION) TO
MARCH 31, 2010 (UNAUDITED)
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PAGES
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12 -
20
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NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
|
As of
|
As of
|
|||||||
March 31,
|
December 31,
|
|||||||
2010
|
2009
|
|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
CURRENT
ASSETS
|
||||||||
Cash
|
$ | 24,920 | $ | 4,907 | ||||
Loans
receivable, net of allowance for doubtful accounts of $594,000 and $0,
respectively
|
47,851 | 729,589 | ||||||
Total
Current Assets
|
72,771 | 734,496 | ||||||
Property
& Equipment, net
|
1,000 | 1,000 | ||||||
Loan
receivable - Hylem Water (Pty) Ltd.
|
25,780 | - | ||||||
TOTAL
ASSETS
|
$ | 99,551 | $ | 735,496 | ||||
LIABILITIES AND STOCKHOLDERS'
DEFICIT
|
||||||||
CURRENT
LIABILITIES
|
||||||||
Accounts
payable and accrued expenses
|
$ | 670,559 | $ | 557,842 | ||||
Loans
payable and accrued interest - related parties
|
435,119 | 425,030 | ||||||
Total
Liabilities
|
1,105,678 | 982,872 | ||||||
COMMITMENTS
AND CONTINGENCIES
|
||||||||
STOCKHOLDERS'
DEFICIT
|
||||||||
Preferred
stock, $.0001 par value, 20,000,000 shares authorized,
|
||||||||
none
issued and outstanding
|
- | - | ||||||
Common
stock, $.0001 par value, 650,000,000 shares authorized,
|
||||||||
228,566,500
shares issued and outstanding
|
22,857 | 22,857 | ||||||
Additional
paid-in capital
|
66,476,078 | 66,473,078 | ||||||
Accumulated
deficit during development stage
|
(67,511,125 | ) | (66,750,595 | ) | ||||
Accumulated
other comprehensive income
|
6,063 | 7,284 | ||||||
Total
Stockholders' Deficit
|
(1,006,127 | ) | (247,376 | ) | ||||
TOTAL LIABILITIES AND STOCKHOLDERS'
DEFICIT
|
$ | 99,551 | $ | 735,496 |
For the Three
|
For the Three
|
For the Period from
|
||||||||||
Months Ended
|
Months Ended
|
May 28,2003 (Inception)
|
||||||||||
March 31, 2010
|
March 31, 2009
|
to March 31, 2010
|
||||||||||
REVENUE
|
$ | - | $ | - | $ | 26,695 | ||||||
OPERATING
EXPENSES
|
||||||||||||
Drilling
costs and expenses
|
- | - | 51,886 | |||||||||
General
and administrative
|
148,730 | 16,358 | 1,997,435 | |||||||||
Professional
fees
|
10,297 | 12,609 | 168,812 | |||||||||
Amortization
|
- | - | 33,400 | |||||||||
Impairment
of investment in oil and gas leases
|
- | - | 247,931 | |||||||||
Impairment
of bio-fuels plant development contract
|
- | - | 36,717,235 | |||||||||
Total
Operating Expenses
|
159,027 | 28,967 | 39,216,699 | |||||||||
LOSS
FROM CONTINUING OPERATIONS
|
(159,027 | ) | (28,967 | ) | (39,190,004 | ) | ||||||
OTHER
INCOME (EXPENSE)
|
||||||||||||
Interest
income
|
- | 1 | 2,794 | |||||||||
Interest
expense
|
(7,503 | ) | (6,331 | ) | (80,773 | ) | ||||||
Total
Other Income (Expense)
|
(7,503 | ) | (6,330 | ) | (77,979 | ) | ||||||
LOSS
FROM CONTINUING OPERATIONS BEFORE
|
||||||||||||
INCOME
TAXES
|
(166,530 | ) | (35,297 | ) | (39,267,983 | ) | ||||||
Provision
for Income Taxes
|
- | - | - | |||||||||
LOSS
FROM CONTINUING OPERATIONS
|
(166,530 | ) | (35,297 | ) | (39,267,983 | ) | ||||||
GAIN
ON DISPOSAL OF SUBSIDIARIES
|
- | - | 745,118 | |||||||||
LOSS
FROM DISCONTINUED OPERATIONS
|
(594,000 | ) | (504 | ) | (32,733,852 | ) | ||||||
NET
LOSS
|
(760,530 | ) | (35,801 | ) | (71,256,717 | ) | ||||||
OTHER
COMPREHENSIVE INCOME
|
||||||||||||
Foreign
currency translation (loss) gain
|
(1,221 | ) | 532 | 6,063 | ||||||||
COMPREHENSIVE
LOSS
|
$ | (761,751 | ) | $ | (35,269 | ) | $ | (71,250,654 | ) | |||
LOSS
PER COMMON SHARE - BASIC AND DILUTED
|
||||||||||||
Continuing
operations
|
$ | (0.00 | ) | $ | (0.00 | ) | ||||||
Discontinued
operations
|
(0.00 | ) | (0.00 | ) | ||||||||
$ | (0.00 | ) | $ | (0.00 | ) | |||||||
Total
Basic and Diluted Loss per Common Share
|
||||||||||||
Weighted
average number of shares outstanding during the year -
|
||||||||||||
Basic
and Diluted
|
228,566,500 | 143,742,500 |
Accumulated
|
Accumulated
|
|||||||||||||||||||||||||||||||||||
Additional
|
Deficit During
|
Other
|
Deferred
|
|||||||||||||||||||||||||||||||||
Preferred Stock
|
Common Stock
|
Paid-In
|
Development
|
Comprehensive
|
Stock
|
|||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Stage
|
Income
|
Compensation
|
Total
|
||||||||||||||||||||||||||||
Common
stock issued to founders for cash ($.03 per share)
|
- | $ | - | 7,500 | $ | 1 | $ | 249 | $ | - | $ | - | $ | - | $ | 250 | ||||||||||||||||||||
Common
stock issued for license ($.03 per share
|
- | - | 49,500,000 | 4,950 | 1,645,050 | - | - | - | 1,650,000 | |||||||||||||||||||||||||||
Common
stock issued to officer as compensation ($.03 per share)
|
- | - | 21,375,000 | 2,138 | 710,362 | - | - | - | 712,500 | |||||||||||||||||||||||||||
Common
stock issued for cash ($.03 per share)
|
- | - | 2,400,000 | 240 | 79,760 | - | - | - | 80,000 | |||||||||||||||||||||||||||
Common
stock issued for cash ($.15 per share)
|
- | - | 833,334 | 83 | 124,917 | - | - | - | 125,000 | |||||||||||||||||||||||||||
Common
stock issued to consultant for services ($.03 per share)
|
- | - | 24,600,000 | 2,460 | 817,540 | - | - | - | 820,000 | |||||||||||||||||||||||||||
Net
loss for the period from May 28, 2003 (inception) to December 31,
2003
|
- | - | - | - | - | (1,737,805 | ) | - | - | (1,737,805 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2003
|
- | - | 98,715,834 | 9,872 | 3,377,878 | (1,737,805 | ) | - | - | 1,649,945 | ||||||||||||||||||||||||||
Common
stock issued for cash ($.15 per share)
|
- | - | 2,016,693 | 202 | 302,301 | - | - | - | 302,503 | |||||||||||||||||||||||||||
Net
loss, 2004
|
- | - | - | - | - | (551,203 | ) | - | - | (551,203 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2004
|
- | - | 100,732,527 | 10,074 | 3,680,179 | (2,289,008 | ) | - | - | 1,401,245 | ||||||||||||||||||||||||||
Common
stock issued in reverse merger
|
- | - | 33,292,500 | 3,329 | (3,329 | ) | - | - | - | - | ||||||||||||||||||||||||||
Common
stock issued to officer for services ($.01 per share)
|
- | - | 15,000,000 | 1,500 | 148,500 | - | - | - | 150,000 | |||||||||||||||||||||||||||
Common
stock cancelled related to license rights ($.01 per share)
|
- | - | (49,500,000 | ) | (4,950 | ) | (490,050 | ) | - | - | - | (495,000 | ) | |||||||||||||||||||||||
In-kind
contribution
|
- | - | - | - | 12,000 | - | - | - | 12,000 | |||||||||||||||||||||||||||
Warrants
issued for non-exclusive license
|
- | - | - | - | 143,238 | - | - | - | 143,238 | |||||||||||||||||||||||||||
Net
loss, 2005
|
- | - | - | - | - | (1,696,989 | ) | - | - | (1,696,989 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2005
|
- | - | 99,525,027 | 9,953 | 3,490,538 | (3,985,997 | ) | - | - | (485,506 | ) |
Accumulated
|
Accumulated
|
|||||||||||||||||||||||||||||||||||
Additional
|
Deficit During
|
Other
|
Deferred
|
|||||||||||||||||||||||||||||||||
Preferred Stock
|
Common Stock
|
Paid-In
|
Development
|
Comprehensive
|
Stock
|
|||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Stage
|
Income
|
Compensation
|
Total
|
||||||||||||||||||||||||||||
In-kind
contribution
|
- | - | - | - | 12,000 | - | - | - | 12,000 | |||||||||||||||||||||||||||
Common
stock cancelled in connection with exchange of ownership in
CardioBioMedical Corporation to its original stockholders
|
- | - | (66,232,527 | ) | (6,623 | ) | (3,211,742 | ) | 3,745,592 | - | - | 527,227 | ||||||||||||||||||||||||
Common
stock issued to purchase investment in oil and gas leases ($.003 per
share)
|
- | - | 60,000,000 | 6,000 | 159,000 | - | - | - | 165,000 | |||||||||||||||||||||||||||
Net
loss, 2006
|
- | - | - | - | - | (140,836 | ) | - | - | (140,836 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2006
|
- | - | 93,292,500 | 9,330 | 449,796 | (381,241 | ) | - | - | 77,885 | ||||||||||||||||||||||||||
In-kind
contribution
|
- | - | - | - | 12,000 | - | - | - | 12,000 | |||||||||||||||||||||||||||
Common
shares issued to acquire 100% of outstanding common shares of Uranium
Acquisition Corp., Inc.
|
- | - | 15,000,000 | 1,500 | 4,248,500 | - | - | - | 4,250,000 | |||||||||||||||||||||||||||
Net
loss, 2007
|
- | - | - | - | - | (4,635,418 | ) | - | - | (4,635,418 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2007
|
- | - | 108,292,500 | 10,830 | 4,710,296 | (5,016,659 | ) | - | - | (295,533 | ) | |||||||||||||||||||||||||
In-kind
contribution
|
- | - | - | - | 12,000 | - | - | - | 12,000 | |||||||||||||||||||||||||||
Common
stock issued to consultant for services ($.82 per share)
|
- | - | 450,000 | 45 | 367,455 | - | - | - | 367,500 | |||||||||||||||||||||||||||
Common
shares issued to acquire 100% of outstanding common shares of ALG Bio Oils
Ltd.
|
- | - | 35,000,000 | 3,500 | 21,696,500 | - | - | - | 21,700,000 | |||||||||||||||||||||||||||
Other
comprehensive income
|
- | - | - | - | - | - | 3,434 | - | 3,434 | |||||||||||||||||||||||||||
Net
loss, 2008
|
- | - | - | - | - | (22,111,044 | ) | - | - | (22,111,044 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2008
|
- | - | 143,742,500 | 14,375 | 26,786,251 | (27,127,703 | ) | 3,434 | - | (323,643 | ) |
Accumulated
|
Accumulated
|
|||||||||||||||||||||||||||||||||||
Additional
|
Deficit During
|
Other
|
Deferred
|
|||||||||||||||||||||||||||||||||
Preferred Stock
|
Common Stock
|
Paid-In
|
Development
|
Comprehensive
|
Stock
|
|||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Stage
|
Income
|
Compensation
|
Total
|
||||||||||||||||||||||||||||
In-kind
contribution
|
- | - | - | - | 12,000 | - | - | - | 12,000 | |||||||||||||||||||||||||||
Additional
common shares issued in connection with acquisition of ALG Bio Oils Ltd.
($.20 per share)
|
- | - | 75,000,000 | 7,500 | 14,992,500 | - | - | - | 15,000,000 | |||||||||||||||||||||||||||
Common
shares issued to acquire 51% of outstanding common shares of H-Power (Pty)
Ltd. ($.58 per share)
|
- | - | 65,000,000 | 6,500 | 37,693,500 | - | - | - | 37,700,000 | |||||||||||||||||||||||||||
Common
stock issued to consultant of ALG Bio Oils Ltd. for services ($.58 per
share)
|
- | - | 1,356,500 | 135 | 786,635 | - | - | - | 786,770 | |||||||||||||||||||||||||||
Common
stock issued to consultant of H-Power (Pty) Ltd. for services ($.27 per
share)
|
- | - | 2,200,000 | 220 | 593,780 | - | - | - | 594,000 | |||||||||||||||||||||||||||
Common
shares issued to officer for services rendered ($.08 per
share)
|
5,000,000 | 500 | 399,500 | - | - | - | 400,000 | |||||||||||||||||||||||||||||
Common
stock issued for cash ($.12 per share)
|
- | - | 1,267,500 | 127 | 152,412 | - | - | - | 152,539 | |||||||||||||||||||||||||||
Cancellation
of shares originally issued to acquire 51% of outstanding common shares of
H-Power (Pty) Ltd. ($.23 per share)
|
(65,000,000 | ) | (6,500 | ) | (14,943,500 | ) | (14,950,000 | ) | ||||||||||||||||||||||||||||
Other
comprehensive income
|
- | - | - | - | - | - | 3,850 | - | 3,850 | |||||||||||||||||||||||||||
Net
loss, 2009
|
- | - | - | - | - | (39,622,892 | ) | - | - | (39,622,892 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2009
|
- | - | 228,566,500 | 22,857 | 66,473,078 | (66,750,595 | ) | 7,284 | - | (247,376 | ) | |||||||||||||||||||||||||
In-kind
contribution
|
- | - | - | - | 3,000 | - | - | - | 3,000 | |||||||||||||||||||||||||||
Other
comprehensive (loss)
|
- | - | - | - | - | - | (1,221 | ) | - | (1,221 | ) | |||||||||||||||||||||||||
Net
loss, three months ended March 31, 2010
|
- | - | - | - | - | (760,530 | ) | - | - | (760,530 | ) | |||||||||||||||||||||||||
Balance,
March 31, 2010
|
- | - | $ | 228,566,500 | $ | 22,857 | $ | 66,476,078 | $ | (67,511,125 | ) | $ | 6,063 | $ | - | $ | (1,006,127 | ) |
For the Three
|
For the Three
|
For the Period from
|
||||||||||
Months Ended
|
Months Ended
|
May 28,2003 (Inception)
|
||||||||||
March 31, 2010
|
March 31, 2009
|
to March 31, 2010
|
||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net
loss
|
$ | (760,530 | ) | $ | (35,801 | ) | $ | (71,256,717 | ) | |||
Net
loss from discontinued operations
|
(594,000 | ) | (504 | ) | (31,988,734 | ) | ||||||
Loss
from continuing operations
|
(166,530 | ) | (35,297 | ) | (39,267,983 | ) | ||||||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||||||
In-kind
contribution
|
3,000 | 3,000 | 36,000 | |||||||||
Stock
issued for services
|
- | - | 1,198,769 | |||||||||
Amortization
|
- | - | 33,400 | |||||||||
Impairment
of investment in oil and gas leases
|
- | - | 247,931 | |||||||||
Impairment
of bio-fuels plant development contract
|
- | - | 21,717,055 | |||||||||
Impairment
in plant commissioning
|
- | - | 15,000,000 | |||||||||
Changes
in operating assets and liabilities:
|
||||||||||||
Increase
in accounts payable and accrued expenses
|
120,219 | 11,961 | 748,168 | |||||||||
Cash
flows from operating activities in continuing operations
|
(43,311 | ) | (20,336 | ) | (286,660 | ) | ||||||
Cash
flows from operating activities in discontinued operations
|
- | (1,029 | ) | (440,497 | ) | |||||||
Net
Cash Used In Operating Activities
|
(43,311 | ) | (21,365 | ) | (727,157 | ) | ||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Loans
receivable
|
87,738 | - | (641,851 | ) | ||||||||
Loan
receivable - Hylem Water (Pty) Ltd.
|
(25,780 | ) | (25,780 | ) | ||||||||
Purchase
of property and equipment
|
- | - | (116,331 | ) | ||||||||
Purchase
of website
|
- | - | (1,000 | ) | ||||||||
Acquisition
of ALG Bio Oils Ltd. net of cash purchased
|
- | - | 180 | |||||||||
Cash
flows from investing activities in continuing operations
|
61,958 | - | (784,782 | ) | ||||||||
Cash
flows from investing activities in discontinued operations
|
- | - | - | |||||||||
Net
Cash Provided By (Used In) Investing Activities
|
61,958 | - | (784,782 | ) | ||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Proceeds
from common stock
|
- | - | 152,539 | |||||||||
Repayment
of stockholder's loans
|
(35,693 | ) | - | (51,628 | ) | |||||||
Proceeds
from loans payable - related parties
|
38,280 | 21,533 | 383,938 | |||||||||
Cash
flows from financing activities in continuing operations
|
2,587 | 21,533 | 484,849 | |||||||||
Cash
flows from financing activities in discontinued operations
|
- | - | 1,043,118 | |||||||||
Net
Cash Provided By Financing Activities
|
2,587 | 21,533 | 1,527,967 | |||||||||
EFFECT
ON EXCHANGE RATE ON CASH
|
(1,221 | ) | 532 | 8,892 | ||||||||
NET
INCREASE IN CASH
|
20,013 | 700 | 24,920 | |||||||||
CASH
AND CASH EQUIVALENTS AT BEGINNING OF YEAR
|
4,907 | 1,196 | - | |||||||||
CASH
AND CASH EQUIVALENTS AT END OF YEAR
|
$ | 24,920 | $ | 1,896 | $ | 24,920 |
For the Three
|
For the Three
|
For the Period from
|
||||||||||
Months Ended
|
Months Ended
|
May 28,2003 (Inception)
|
||||||||||
March 31, 2010
|
March 31, 2009
|
to March 31, 2010
|
||||||||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||||||
Cash
paid for interest
|
$ | - | $ | - | $ | - | ||||||
Cash
paid for income taxes
|
$ | - | $ | - | $ | 1,824 |
NOTE
1
|
SUMMARY OF SIGNIFICANT
ACCOUNTING POLICIES AND
ORGANIZATION
|
NOTE
2
|
ACQUISITION
|
NOTE
3
|
LOANS PAYABLE –
RELATED PARTIES
|
NOTE
4
|
STOCKHOLDERS’
EQUITY
|
NOTE
5
|
RELATED PARTY
TRANSACTIONS
|
NOTE
6
|
DISCONTINUED
OPERATIONS
|
Three months ended
|
||||||||||||
March 31,
|
Inception
|
|||||||||||
2010
|
2009
|
|||||||||||
Revenue
|
$ | - | $ | - | $ | - | ||||||
Operating
Expenses
|
(594,000 | ) | (504 | ) | (32,733,852 | ) | ||||||
Gain
on disposal of subsidiaries
|
- | - | 745,118 | |||||||||
Loss
from discontinued operations
|
$ | (594,000 | ) | $ | (504 | ) | $ | (31,988,734 | ) |
NOTE
7
|
SEGMENT
REPORTING
|
Three Months Ended March 31,
2010
|
Bio-fuels
|
Other
|
Consolidated
|
|||||||||
Revenue
|
$ | - | $ | - | $ | - | ||||||
Interest
expense
|
- | (7,503 | ) | (7,503 | ) | |||||||
Net
Loss
|
(9,851 | ) | (750,679 | ) | (760,530 | ) | ||||||
Total
Assets
|
72,155 | 27,396 | 99,551 | |||||||||
Total
Liabilities
|
49,349 | 1,056,329 | 1,105,678 |
Three Months Ended March
31, 2009
|
Bio-fuels
|
Other
|
Consolidated
|
|||||||||
Revenue
|
$ | - | $ | - | $ | - | ||||||
Interest
expense
|
- | (6,331 | ) | (6,331 | ) | |||||||
Net
Loss
|
(1,839 | ) | (33,962 | ) | (35,801 | ) | ||||||
Total
Assets
|
764 | 2,132 | 2,896 | |||||||||
Total
Liabilities
|
23,166 | 653,031 | 676,197 |
NOTE
8
|
CONCENTRATION OF
CREDIT RISK
|
NOTE
9
|
GOING
CONCERN
|
a)
|
Exhibits:
|
By:
|
/s/ Arthur Johnson
|
|
Arthur Johnson
|
||
Principal Executive Officer,
|
||
President and Director
|