UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-K10-K/A
(Amendment No. 2)

 (Mark

(Mark One)


x

ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended March 31, 2011June 30, 2013


¨ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 000-51206

DIAMOND RANCH FOODS, LTD.

PLANDAÍ BIOTECHNOLOGY, INC.

(Name of small business issuer in its charter)

Nevada

20-1389815

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

355 Food Center Drive B-1, Bronx, NY

2226 Eastlake Avenue East #156, Seattle, WA

10474

98102

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (718) 991-9595(435) 881-8734

Securities registered under Section 12(b) of the Exchange Act:

None

Securities registered under Section 12(g) of the Exchange Act:

Common stock, par value $0.0001 per share

(Title of Class)


Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes¨ Nox


Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes¨ Nox


Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the last 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yesx No¨


Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes¨x No¨


Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrantsregistrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.x


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large“large accelerated filer,accelerated filer“accelerated filer” and smaller“smaller reporting companycompany” in Rule 12b-2 of the Exchange Act.


Large accelerated filer              

¨

Accelerated filer                         

¨

Non-accelerated filer                 

¨

Smaller reporting company   

x


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes¨Nox


State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of SeptemberJune 30, 2010:  $13,755,159.2013: $19,894,000.

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As of July 11, 2011,September 20, 2013, the registrant had 11,415,300106,270,760 outstanding shares of Common Stock.


Documents incorporated by reference: None.

Explanatory Note:

This Amendment No. 2 on Form 10-K/A amends the Registrant’s Form 10-K/A, filed on November 27, 2017 and Annual Report filed on Form 10-K on September 30, 2013 with the Securities and Exchange Commission. Amendment No. 2 is being filed to include a new audit opinion letter provided by the Registrant’s certified public accountant resulting from a re-audit of the fiscal years ended June 30, 2012 and 2013 and to include additional disclosure regarding the note payable to Land and Agriculture Bank of South Africa.

 

 

 

 







TABLE OF CONTENTS

PART I

Page

PAGE

Item 1.

Business

4

Item 1A.

Risk Factors

6

5

Item 1B.

Unresolved Staff Comments

12

Item 2.

Properties

9

12

Item 3.

Legal Proceedings

9

12

Item 4.

(Removed and Reserved)

Mining Safety Disclosures

9

13

PART II

Item 5.

Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

9

13

Item 6.

Selected Financial Data

10

14

Item 7.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

11

15

Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

14

18

Item 8.

Financial Statements and Supplementary Data

14

18

Item 9.

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

14

18

Item 9A

Controls and Procedures

15

19

Item 9B.

Other Information

16

20

PART III

Item 10.

Directors, Executive Officers and Corporate Governance

16

20

Item 11.

Executive Compensation

18

22

Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

18

23

Item 13.

Certain Relationships and Related Transactions and Director Independence

19

24

Item 14.

Principal Accountant Fees and Services

19

24

PART IV

Item 15.

Exhibits, Financial Statement Schedules

20

25

 

 






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PART I

ITEM 1. BUSINESS.

Our

PlandaíBiotechnology, Inc. (the “Company”) and its subsidiaries focus on the production of proprietary botanical extracts for the nutriceutical and pharmaceutical industries. The company grows much of the live plant material used in its products on a 3,000 hectare estate it operates under a 49-year notarial lease in the Mpumalanga region of South Africa. Plandaí uses a patented extraction process that is designed to yield highly bioavailable products of pharmaceutical-grade purity. The first product to be brought to market is Phytofare™ Catechin Complex, a green-tea derived extract that has multiple potential wellness applications. The company’s principle holdings consist of land, farms and infrastructure in South Africa.

The Company was incorporated, as Jerry's Inc., in the State of Florida on November 30, 1942. Prior to it ceasing its operations in 1998, theThe company catered airline flights and operated coffee shops, lounges and gift shops at airports and other facilities located in Florida, Alabama and Georgia. The company's airline catering services included the preparation of meals in kitchens located at, or adjacent to, airports and the distribution of meals and beverages for service on commercial airline flights. The company also provided certain ancillary services, including, among others, the preparation of beverage service carts, the unloading and cleaning of plates, utensils and other accessories arriving on incoming aircraft, and the inventory management and storage of airline-owned dining service equipment. After ceasing its operations in 1998, the company remained dormant untilIn March of 2004 when we moved our domicile to Nevada and changed our name to Diamond Ranch Foods, Ltd.

We are Diamond Ranch Foods, Ltd. was engaged in the meat processing and distribution industry. Our operations consistOperations consisted of packing, processing, custom meat cutting, portion controlled meats, private labeling, and distribution of our products to a diversified customer base, including, but not limited to; in-home food service businesses, retailers, hotels, restaurants and institutions, deli and catering operators, and industry suppliers.

We became On November 17, 2011, the distributor and processorCompany, through its wholly-owned subsidiary, Plandaí Biotechnologies, Inc. consummated a share exchange with Global Energy Solutions Corporation Limited, an Irish corporation. Under the terms of the "All American Hamburger"Share Exchange, GES received 76,000,000 shares of Diamond Ranch that had been previously issued to Plandaí Biotechnologies, Inc. in exchange for 100% of the issued and outstanding capital of GES.  On November 21, 2011, the Company filed an amendment to the articles of incorporation to change the name of the company to Plandaí Biotechnology, Inc.  GES was subsequently folded up into Plandaí and the legal status terminated, leaving Plandaí Biotechnology, Inc. as the surviving entity.

The Company is actively pursuing additional financing and has had discussions with various third parties, although no firm commitments have been obtained. Management believes these efforts will generate sufficient cash flows from future operations to pay the Company's obligations and realize positive cash flow. There is no assurance any of these transactions will occur.In April 2012, through our subsidiary companies, we secured a 100 million Rand (approximately $13 million) financing with the Land and Agriculture Bank of South Africa which has been used to build infrastructure and further operations.

DISPOSITION OF SUBSIDIARY

On November 17, 2011, the Company sold its subsidiary, Diamond Ranch, Ltd., together with its wholly-owned subsidiary, Executive Seafood, Inc. to the former officer and director of Diamond Ranch.  Under the terms of the sale, the purchaser assumed all associated debt as consideration.  During the three and six months ended December 31, 2011, Diamond Ranch, Ltd. and Executive Seafood, Inc. had negligible revenues from operations, generated a net loss of $126,000, and as of the date of disposition, liabilities exceeded assets by over $5,000,000.

As a result of the Share Exchange Agreement and disposition of Diamond Ranch, Ltd., the operations of Plandaí Biotechnology, Inc. consist entirely of the operations of the former GES entity its subsidiaries.

PRODUCTS AND SERVICES

Plandaí has a proprietary technology that extracts a high level of bio-available compounds from organic matter including green tea leaves and most other meat products throughorganic materials. Various tests have been conducted over the acquisitionpast ten years using this technology that generates functional chemical compounds possessing nutritive properties that act effectively as preventive agents in the healthcare field. Polyphenols from green tea are an excellent source antioxidant and anti-carcinogenic substances. The Company intends to use its plantation leases to focuses on the farming of MBC Foods, Inc.,whole fruits, vegetables and live plant material and the production of proprietary functional foods and botanical extracts for the health and wellness industry using its proprietary extraction technology.

Many botanical extracts have demonstrated varying degrees of health benefit, and many pharmaceutical drugs are either derived directly from plant extracts or are synthetic analogs of phytonutrient molecules. Green tea leaf, for example, has shown promising in-vitro results as an anti-oxidant, with hundreds of different published studies demonstrating its potential usefulness in weight loss, anti-viral, anti-cancer, and anti-parasitic applications, amongst others.

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The company is presently developing for market two unique extracts: Phytofare™ Catechin Complex and Phytofare™ Limonoid Glycoside Complex. The catechin complex is derived from green tea harvested locally on the Senteeko Tea Estate in Mpumalanga, South Africa, and then processed on a second-generation family owned business on May 1, 2004.state-of-the-art extraction facility constructed onsite using funds obtained from the Land and Agriculture Bank of South Africa. The facility is expected to become operational in December 2013, with initial sales commencing first quarter 2014. The limonoid glycoside product is extracted from lemons which are sourced from local plantations in South Africa and then produced in the same factory that makes the green tea product. The Phytofare™ Limonoid Glycoside Complex will be introduced to the market in July 2014.


In addition to servicing our customersAugust 2014, Plandaí entered into a license agreement with a full line of fresh meats, we also produce private-labeled and "branded" hot dogs and meats for the Hebrew National(R) Deli lineNorth-West University in the New York Metropolitan area, as well as private-label Sabrett(R) Hamburgers for Marathon Foods.


HISTORY AND COMPANY DEVELOPMENT


Our company was originally incorporated in the State of Florida in 1942 as Jerry's Inc. wherePotchefstroom, South Africa, which granted the company catered airline flightsthe exclusive right to use the University’s Pheroid™ technology to product nano-entrapped botanical extracts for human and operated coffee shops, lounges and gift shops at airports and other facilities located in Florida, Alabama and Georgia. The company's airline catering services included the preparation of meals in kitchens located at, or adjacent to, airports and the distribution of meals and beverages for service on commercial airline flights.animal use. The company also provided certain ancillary services, including, among others, the preparation of beverage service carts, the unloadingbelieves that this technology will enable it to develop products with much higher absorption coefficients in both topical use and cleaning of plates, utensils and other accessories arriving on incoming aircraft, and the inventory management and storage of airline-owned dining service equipment. Jerry's, Inc. ceased its operation in 1998 and remained dormant until March 2004 when we moved our domicile to Nevada and changed our corporate name to Diamond Ranch Foods, Ltd.oral consumption.


On May 1, 2004 we issued 31,607,650 restricted shares of common stock and acquired MBC Foods, Inc. For financial reporting purposes, the transaction was recorded as a reverse merger and shown on the Statement of Stockholders Equity as a net issuance of 25,692,501 shares.COMPETITION

The cash flowCompany faces competition from operations is sufficient to fund capital requirements. However, we will seek to raise additional capital through the sale of common stock to fund the expansion of our company. There can be no assurance that we will be successful in raising the capital required and without additional funds we would be unable to expand our plant, acquire other companies, or exponentially increase our sales volume.


PRODUCTS AND SERVICES

We have moved our operations in January 2009 to the Bronx terminal market which is located near our current client base and potential new customers.

Products

We offer the following products, which we can prepare either fresh, frozen, or vacuum-packed:

All-American Hamburger:
We offer a proprietary-formulated hamburger called the All American Hamburger. Sizes range from 2 oz. to 12 oz. and come in round, oval, or square, as well as custom shapes.


Hebrew National(R) Line
Quality hot dogs
Seasoned pastramis
Corned Beef






Fresh Meats
Beef, including steaks, roasts and ribs Poultry
Pork
Veal Cutlets
Lamb
Gourmet cheeses, Oils and other food items


Variety Meats
Frog
Quail, Rabbit
Wild game (venison, boar, duck and more)


Beginning March 1, Full line Fresh Seafood


Custom Cuts and Butchering

Our butchers can process any meats as either traditional cuts or custom orders according to customer specifications. We specialize in timely delivery and service of such custom products, which can include steaks, chops and other meats, with selections from fresh or frozen packaging.

Distribution

Our fleet of refrigerated trucks delivers orders throughout the NY Metropolitan area. We can also ship anywhere from coast to coast via common carrier.

Our delivery truck fleet consists of eight (8) vehicles described as follows:

2006 and 2007 Mitsubishi FE180 Trucks
2004 Mitsubishi FEHD Truck
2002 UD Nissan 1400

Equipment

We lease or own a variety of meat processing equipment,sources. There are several large producers of farm products including but not limited to:

Band Saws
Hamburger Formation Machines
Overwrap Machines
Stainless Steel Tables
Digital Scales
Pallet Jacks
Platform Scales

All of the refrigeration equipment, a combination of approximately 10 compressor units contained within the premises, is owned by the Company.

Safety

In order to meet the public's expectation for safe food produced in a competitive market environment, we safeguard our products to prevent food safety hazards by adhering to the USDA's Hazard Analysis of Critical Control Points (HACCP) system. Through the years, we have attempted to preserve our reputationgreen tea and branded products by addressing the vital components of meat processing, such as sanitary plant conditions, regulated processing controls, observance of USDA inspections, and constant monitoring of procedures and standards to guarantee that our systems meet the increasing demands of our customers.





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COMPETITION


Our competition can be divided into two (2) primary categories. First, there are numerous companies that develop and market nutraceutical products that include bio-available compounds including those from green tea and citrus extracts. Many of these competitors benefit from established distribution, market-ready products, and greater levels of financing. Plandaí intends to compete by producing higher quality and higher concentration extracts, producing at lower costs, and controlling a vertically integrated market that includes all stages from farming through production and marketing. The company’s unique patent-pending technology, combined with the large full line foodservice distributors, such as US Foodservice, Sysco Foods, DiCarlo Distributors, Landmark, and J. Kings. Second, there are the smaller independent jobbers.

Ourpatented Pheroid™ technology, should provide several unique market advantages over the large foodservice distributors are as follows:

1) We have an USDA inspected facility with daily fresh custom cutting of all meats and daily fresh manufacturing of the All American Burger.

2) We make available daily deliveries with less stringent minimum order amounts. Many restaurants in the inner city do not have enough refrigerator or freezer storage space affording them a minimumform of 2-3 deliveries per week.higher absorption, increased bioavailability, and lower dosage requirements.

3) We have the flexibility within our location for customers to make "last minute" call-in orders for the same day delivery or second same day deliveries for emergency situations. We have no cut-off times.

4) We purchase our raw product on a daily basis. This allows us to react much faster to fluctuation in market conditions whereby the larger foodservice houses cannot because of enormous inventories.

5) Our overall overhead is lower. The cost of our operations in proportion to our sales volume affords us the ability to be price competitive.

Our advantages over the small independent jobbers are as follows:


1) Since we operate an USDA inspected warehouse that enables us to custom cut and manufacture, we have the ability to eliminate the "middle man" in the chain of supply. We benefit with the additional gross profit because we also act as a supplier of our custom cut, manufactured goods to the independent jobber.

2) We have a facility to store inventory. This allows us to "buy in" during favorable market conditions and thus, be more price competitive.

3) The location of our facility allows us to satisfy last minute and emergency orders. Once the independent jobber vacates the "Meat Market" premises, he is incapable of filling any additional deliveries or providing service to his customers.

4) We have the ability to distribute to large retail accounts based on our USDA Inspection and Product Liability Insurance. We can offer private labeling and custom packaging to any retail chain.


CUSTOMERS

There are no material contracts between

Plandaí will market to nutriceutical and supplement companies that require high-quality bio-available extracts for their products. As pharmaceutical products clear their human clinical trials and receive market approval from the companyFDA, Plandaí will enlist distribution companies to sell to various end user outlets. In addition, the Company anticipates having surplus farm products including timber, fruits, and any of our customers. We operate an order/invoice method of operations. We have a broad and sizable customer basenuts which does not leave us dependent on any one or even a few customers for revenue. Our largest customer comprises approximately 3.2% of our business, and our second largest comprises approximately 3.0%.will be sold to local markets.

Our customers include:

·

NY Methodist Hospital

·

Madison Square Garden

·

NYU Langone Medial Center

·

Greenwich Water Club

·

Wykagyl Country Club

ITEM 1A. RISK FACTORS

An investment in our securities is highly speculative, involves a high degree of risk and is suitable only for investors with substantial means who can bear the economic risk of the investment for an indefinite period of time, have no need for liquidity of the investment, and have adequate means of providing for their current needs and contingencies. An investment in the securities should be made only by persons able to bear the risk in the event the investment results in a total loss.



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1.) RISK OF LOSS OF INVESTMENT DUE TO HIGHLY COMPETITIVE NATURE OF OUR INDUSTRY.

A majority of the meat packing industry is dominated by four multinational firms. ConsolidationWe Have Historically Lost Money and low-cost labor have helped these firms dominate the U.S. industry. Labor cuts by these conglomerates have been due to a decline in unionization and increaseLosses May Continue in the use of immigrant workers. Potential customers may overlook the Company's products and services because of their inability to institute competitive pricing, availability, and favorable delivery methods as compared to those services provided by the dominant industry players.Future

2.) RISK OF DEPENDENCE ON KEY PERSONNEL.

The Company is dependent on its present officer and directors, primarily Louis Vucci Jr., Director and CEO. The success of the company is dependent on Mr. Vucci and his management team. Should one or more of these individuals cease to be affiliated with the Company before acceptable replacements are found, there could be a material adverse effect on the Company's business and prospects. We depend substantially on the continued services and performance of our senior management and, in particular, their contracts and relationships, especially within the meat, poultry, and food businesses.


3.) RISK OF LOSS OF AVAILABILITY OF RAW MATERIALS.

The success of the business is contingent on a variety of external factors, such as the availability of healthy livestock at reasonable market prices. The possible introduction of disease into the U.S. national cattle herd, whether unintentionally or as a terrorist act, has been a recent consideration by the Department of Homeland Security (DHS). The U.S. slaughters about 35 million head of cattle per year and is the world's largest beef producing country. Should serious disease occur, no matter how dangerous to human health, the results could be catastrophic to the U.S. economy, as well as a possible cessation of business operations for an undetermined period of time.

4.) RISK OF ENVIRONMENTAL CONDITIONS AND BUSINESS CLIMATE.

We have historically lost money.   The loss for the fiscal year June 30, 2013 was $2,108,005 and future losses are likely to occur.  Accordingly, we may experience significant liquidity and cash flow problems if we are not able to raise additional capital as needed and on acceptable terms.  No assurances can be given we will be successful in reaching or maintaining profitable operations.

We Will Need to Raise Additional Capital to Finance Operations

Our operations have relied almost entirely on external financing to fund our operations.  Such financing has historically come from a small to medium-sized processing facility,combination of borrowings and we rely on custom manufacturing for area restaurants and growing niche markets of consumers desiring locally-produced foods for revenue. Customers rely on the consistency in both quantity and quality of the company's products and should that diminish in any way, they could seek products from the competition. Such a loss in sales could affectsale of common stock and assets to third parties.  We will need to raise additional capital to fund our revenuesanticipated operating expenses and our ability to continue operations.

5.) RISK RELATING TO CONTROLLING INTEREST OF INSIDERS/RISK OF NON-INDEPENDENT BOARD OF DIRECTORS

Our Board of Directors is not independent and our Directors and Officers beneficially own approximately 21.3% of our outstanding Common Stock. These insidersfuture expansion.  Among other things, external financing will be ablerequired to exercise significant influence over all matters requiring shareholder approval, including the election of directors and approval of significant corporate transactions. This concentration of ownership may also cause delaycover our operating costs.  We cannot assure you that financing whether from external sources or prevent change in control evenrelated parties will be available if it is beneficial to our shareholders.

6.) RISK OF FUTURE DILUTION

There are 11,290,300 sharesneeded or on favorable terms.  The sale of our common stock issued and outstanding as of March 31, 2011. All ofto raise capital may cause dilution to our common stock is freely tradable except for shares beneficially owned by our "affiliates." We cannot be sure what effect, if any, future sales of our common stock, whether or not those sales come from the issuance, for sale, of additional shares or from stock owned by affiliates becoming free trading. Shareholdersexisting shareholders.  Our inability to obtain adequate financing will experience dilution if the acquisition price per share is higher than the net tangible book value per share.

7.) RISKS OF REDUCED LIQUIDITY OF "PENNY STOCKS."

The Securities and Exchange Commission has adopted regulations that generally define a "penny stock" as any equity security that has a market price of less than $5.00 per share and that is not traded on a national stock exchange, NASDAQ or the NASDAQ National Market System. Now, or sometimeresult in the future, penny stocks couldneed to curtail business operations.  Any of these events would be removed from NASDAQ or the NASDAQ National Market System or the securitiesmaterially harmful to our business and may become subjectresult in a lower stock price.

There is Substantial Doubt About Our Ability to rules of the CommissionContinue as a Going Concern Due to Recurring Losses and Working Capital Shortages, Which Means that impose additional sales practice requirements on broker-dealers effecting transactions in penny stocks. In most instances, unless the purchaser is either (i) an institutional accredited investor, (ii) the issuer, (iii) a director, officer, general partner or beneficial owner of more than five percent (5 %) of any class of equity security of the issuer of the any stock that is the subject of the transaction, or (iv) an established customer of the broker-dealer, the broker-dealer must make a special suitability determination for the purchase of such securities and have received the purchaser's prior written consentWe May Not Be Able to the transaction. Additionally, on any transaction involving a penny stock, the rules of the Commission require, among other things, the delivery, prior to the transaction, of a disclosure schedule prepared by the Commission relating to the penny stock market and the risks associated with investing in penny stocks. The broker dealer also must disclose the commissions payable to both the broker-dealer and registered representative and current quotations for the securities. Finally, among other requirements, monthly statements must be sent to the purchaser of the penny stock disclosing recent price information for the penny stock held in the purchaser's account and information on the limited market in penny stocks. Consequently, the penny stock rules may restrict the ability of broker dealers to sell the securities in any secondary market that may develop.Continue Operations Unless We Obtain Additional Funding





8.) DOUBT AS TO ABILITY TO CONTINUE AS GOING CONCERN.


Our independent certified public accountant has stated in their report included in this filing that we have suffered recurring losses from operations that raise substantial doubt about our ability to continue as a going concern.

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The Company has experienced recurring operating losses and we currently have a working capital deficiency. There is a possibility that our revenues will not be sufficient to meet our operating costs. To date our liabilities have greatly exceeded our current assets. There is a substantial doubt that we can continue as a going concern.


The major part of the Company’s liabilities are in the form of loans which were obtained for operating and development purposes.  If these loans were not to be renewed the Company would be forced to seek either alternative financing sources, new equity investment, or alternatively sell certain material assets and/or seek reorganization under bankruptcy rules.  In the event these loans could not be continued there can be no current assurance of the continued viability of the Company.  Additionally, in the event that revenues were to decline below operating cost and such resultant loss exceeded cash and short term receivables there again can be no current assurance of the continued viability of the Company.


There can be no assurance that we will continue to generate revenues from operations or obtain sufficient capital on acceptable terms, if at all.  Failure to obtain such capital or generate such operating revenues would have an adverse impact on our financial position and results of operations and ability to continue as a going concern.  Our operating and capital requirements during the next fiscal year and thereafter will vary based on a number of factors, including the level of sales and marketing activities for our services and products.  There can be no assurance that additional private or public finances, including debt or equity financing, will be available as needed or, if available, on terms favorable to us.  Any additional equity financing may be dilutive to stockholders and such additional equity securities may have rights, preferences or privileges that are senior to those of our existing common stock.


Furthermore, debt financing, if available, will require payment of interest and may involve restrictive covenants that could impose limitations on our operating flexibility.  Our failure to successfully obtain additional future funding may jeopardize our ability to continue our business and operations.


GOVERNMENT APPROVAL & REGULATIONOur Common Stock May Be Affected By Limited Trading Volume and May Fluctuate Significantly

There has been a limited public market for our common stock and there can be no assurance that an active trading market for our common stock will develop.  As a result, this could adversely affect our shareholders' ability to sell our common stock in short time periods, or possibly at all.  Our common stock has experienced, and is likely to experience in the future, significant price and volume fluctuations that could adversely affect the market price of our common stock without regard to our operating performance.  In addition, we believe that factors such as quarterly fluctuations in our financial results and changes in the overall economy or the condition of the financial markets could cause the price of our common stock to fluctuate substantially. Substantial fluctuations in our stock price could significantly reduce the price of our stock.

There is no Assurance of Continued Public Trading Market and Being a Low Priced Security may Affect the Market Value of Our Stock

To date, there has been only a limited public market for our common stock. Our common stock is currently quoted on the OTCBB. As a result, an investor may find it difficult to dispose of, or to obtain accurate quotations as to the market value of our stock. Our stock is subject to the low-priced security or so called "penny stock" rules that impose additional sales practice requirements on broker-dealers who sell such securities. The Securities Enforcement and Penny Stock Reform Act of 1990 requires additional disclosure in connection with any trades involving a stock defined as a penny stock (generally, according to recent regulations adopted by the SEC, any equity security that has a market price of less than $5.00 per share, subject to certain exceptions that we no longer meet). For example, brokers/dealers selling such securities must, prior to effecting the transaction, provide their customers with a document that discloses the risks of investing in such securities. Included in this document are the following:

- the bid and offer price quotes in and for the "penny stock," and the number of shares to which the quoted prices apply,

- the brokerage firm's compensation for the trade, and

- the compensation received by the brokerage firm's sales person for the trade.

In addition, the brokerage firm must send the investor:

- a monthly account statement that gives an estimate of the value of each "penny stock" in the investor's account, and

- a written statement of the investor's financial situation and investment goals.

If the person purchasing the securities is someone other than an accredited investor or an established customer of the broker/dealer, the broker/dealer must also approve the potential customer's account by obtaining information concerning the customer's financial situation, investment experience and investment objectives. The broker/dealer must also make a determination whether the transaction is suitable for the customer and whether the customer has sufficient knowledge and experience in financial matters to be reasonably expected to be capable of evaluating the risk of transactions in such securities. Accordingly, the Commission's rules may limit the number of potential purchasers of the shares of our common stock.

Resale restrictions on transferring "penny stocks" are sometimes imposed by some states, which may make transaction in our stock more difficult and may reduce the value of the investment. Various state securities laws pose restrictions on transferring

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"penny stocks" and as a result, investors in our common stock may have the ability to sell their shares of our common stock impaired.

There can be no assurance we will have market makers in our stock. If the number of market makers in our stock should decline, the liquidity of our common stock could be impaired, not only in the number of shares of common stock which could be bought and sold, but also through possible delays in the timing of transactions, and lower prices for the common stock than might otherwise prevail. Furthermore, the lack of market makers could result in persons being unable to buy or sell shares of the common stock on any secondary market.

We Could Fail to Retain or Attract Key Personnel

Our future success depends in significant part on the continued services of Roger Duffield, our President.  We cannot assure we would be able to find an appropriate replacement for key personnel.  Any loss or interruption of our key personnel's services could adversely affect our ability to develop our business plan.  

Nevada Law and Our Charter May Inhibit a Takeover of Our Company That Stockholders May Consider Favorable

Provisions of Nevada law, such as its business combination statute, may have the effect of delaying, deferring or preventing a change in control of our company.  As a result, these provisions could limit the price some investors might be willing to pay in the future for shares of our common stock.

We have filed Grantsa history of Inspection withoperating losses and expect to incur losses for the U.S. Departmentforeseeable future. We may never generate revenues or, if we are able to generate revenues, achieve profitability.

We are focused on product development, and we have not generated any revenues to date. We have incurred losses in each year of Agricultureour operations, and we expect to continue to incur operating losses for the foreseeable future. These operating losses have adversely affected and are likely to continue to adversely affect our working capital, total assets and shareholders’ equity.

The Company and its prospects should be examined in light of the risks and difficulties frequently encountered by new and early stage companies in new and rapidly evolving markets. These risks include, among other things, the speed at which we can scale up operations, our complete dependence upon development of products that currently have no market acceptance, our ability to establish and expand our brand name, our ability to expand our operations to meet the commercial demand of our clients, our development of and reliance on strategic and customer relationships and our ability to minimize fraud and other security risks.

The process of developing our products requires significant clinical, development and laboratory testing and clinical trials. In addition, commercialization of our product candidates will require that we obtain necessary regulatory approvals and establish sales, marketing and manufacturing capabilities, either through internal hiring or through contractual relationships with others. We expect to incur substantial losses for the foreseeable future as a result of anticipated increases in our research and development costs, including costs associated with conducting preclinical testing and clinical trials, and regulatory compliance activities.

Our ability to generate revenues and achieve profitability will depend on numerous factors, including success in:

·developing and testing product candidates;
·receiving regulatory approvals;
·commercializing our products;
·establishing a favorable competitive position.

Many of these factors will depend on circumstances beyond our control. We cannot assure you that we will ever have a product that we will bring to market or, if we are successful in doing so, that we will ever become profitable.

We expect to incur substantial additional operating expenses over the next several years as our research, development, pre-clinical testing, and clinical trial activities increase. The amount of future losses and when, if ever, we will achieve profitability are uncertain. We have no products that have generated any commercial revenue, do not expect to generate revenues from the commercial sale of products in the near future, and might never generate revenues from the sale of products. Our ability to generate revenue and achieve profitability will depend on, among other things, successful completion of the development of our product candidates; the successful testing of our product in both inin vitro andin vivo trials; establishing manufacturing, sales, and marketing arrangements with third parties; and raising sufficient funds to finance our activities. We might not succeed at any of these undertakings. If we are unsuccessful at some or all of these undertakings, our business, prospects, and results of operations may be materially adversely affected.

7

We received a report from our independent registered public accounting firm with an explanatory paragraph for the year ended June 30, 2013 with respect to our ability to continue as a going concern. The existence of such a report may adversely affect our stock price and our ability to raise capital.

In their report dated September 25, 2013, our independent registered public accounting firm expressed substantial doubt about our ability to continue as a going concern as we have incurred losses, have a negative cash flow from operations and have working capital and stockholders’ deficiencies. Our ability to continue as a going concern is subject to our ability to generate a profit and/or obtain necessary funding from outside sources, including obtaining additional funding from the sale of our securities, increasing sales or obtaining loans and grants from various financial institutions where possible. Our continued net operating losses increase the difficulty in meeting such goals and there can be no assurances that such methods will prove successful.

We have no approved products on the market and have generated no product revenues to operate as an USDA certified meat processing establishment. We currently operate as establishment number "EST. 5099" as indicated insidedate.

To date, we have no approved product on the USDA mark of inspection displayed onmarket and have generated no product revenues. Until and unless we receive approval from regulatory authorities for our product candidates, we cannot sell our products and will not have product revenues. Therefore, for the foreseeable future, we will have to fund all of our processed meat itemsoperations and establishment number "EST. P-20622"capital expenditures from cash on hand, licensing fees and grants and additional financings, to the extent such financings can be obtained.

We need additional capital. If additional capital is not available or is available at unattractive terms, we may be forced to delay, reduce the scope of or eliminate our research and development programs, reduce our commercialization efforts or curtail our operations.

In order to develop and bring our product candidates to market, we must commit substantial resources to costly and time-consuming production development, research, clinical trials and marketing activities. We anticipate that our existing cash and cash equivalents will enable us to maintain our current operations for at least the next six months. We anticipate using our cash and cash equivalents to fund further research and development with respect to our lead product candidates. We may, however, need to raise additional funding sooner if our business or operations change in a manner that consumes available resources more rapidly than we anticipate. Our requirements for additional capital will depend on many factors, including:

·successful commercialization of our product candidates;
·the time and costs involved in obtaining regulatory approval for our product candidates;
·costs associated with protecting our intellectual property rights;
·development of marketing and sales capabilities;
·payments received under future collaborative agreements, if any; and
·market acceptance of our products.

To the extent we raise additional capital through the sale of equity securities, the issuance of those securities could result in dilution to our shareholders. In addition, if we obtain debt financing, a substantial portion of our operating cash flow may be dedicated to the payment of principal and interest on such indebtedness, thus limiting funds available for our processed poultry items. business activities. If adequate funds are not available, we may be required to delay, reduce the scope of or eliminate our research and development programs, reduce our commercialization efforts or curtail our operations. In addition, we may be required to obtain funds through arrangements with collaborative partners or others that may require us to relinquish rights to technologies, product candidates or products that we would otherwise seek to develop or commercialize ourselves or license rights to technologies, product candidates or products on terms that are less favorable to us than might otherwise be available.

The USDA considersCompany will require substantial additional funds to support its research and development activities and eventual commercialization. Such additional sources of financing may not be available on favorable terms, if at all. If we do not succeed in raising additional funds on acceptable terms, we could be forced to discontinue product development, forego sales and marketing efforts and forego attractive business opportunities. Any additional sources of financing will likely involve the issuance of our equity securities, which will have a dilutive effect on our stockholders.

There is no assurance that we will be successful in raising the additional funds needed to fund our business a "Small Plant" operation sinceplan. If we employ a staffare not able to raise sufficient capital in the near future, our continued operations will be in jeopardy and we may be forced to cease operations and sell or otherwise transfer all or substantially all of 20-500 personnel.our remaining assets.

8

We face intense competition in the markets targeted by our lead product candidates. Many of our competitors have substantially greater resources than we do, and we expect that all of our product candidates under development will face intense competition from existing or future drugs.

We adhereexpect that all of our product candidates under development, if approved, will face intense competition from existing and future products marketed by large companies. These competitors may successfully market products that compete with our products, successfully identify and develop products earlier than we do, or develop products that are more effective or cost less than our products.

These competitive factors could require us to conduct substantial new research and development activities to establish new product targets, which would be costly and time consuming. These activities would adversely affect our ability to commercialize products and achieve revenue and profits.

Competition and technological change may make our product candidates and technologies less attractive or obsolete.

We compete with established pharmaceutical and food additive companies that are pursuing other products for the same indications we are pursuing and that have greater financial and other resources. Other companies may succeed in developing products earlier than us, or developing products that are more effective than our product candidates. Research and development by others may render our technology or product candidates obsolete or noncompetitive, or result in treatments or cures superior to any product we develop. We face competition from companies that internally develop competing technology or acquire competing technology from universities and other research institutions. As these companies develop their technologies, they may develop competitive positions that may prevent, make futile, or limit our product commercialization efforts, which would result in a decrease in the revenue we would be able to derive from the sale of any products.

There can be no assurance that any of our product candidates will be accepted by the marketplace as readily as these or other competing treatments. Even if our products are successfully developed and approved for use by all governing regulatory bodies, there can be no assurance that 3rd party manufacturers and consumers will prefer our products to those already in the market.

Furthermore, the food additive industry is diverse, complex, and rapidly changing. By its nature, the business risks associated therewith are numerous and significant. The effects of competition, intellectual property disputes, and market acceptance preclude us from forecasting revenues or income with certainty or even confidence.

If we fail to protect our intellectual property rights, our ability to pursue the development of our technologies and products would be negatively affected.

Our success will depend in part on our ability to obtain patents and maintain adequate protection of our technologies and products. If we do not adequately protect our intellectual property, competitors may be able to use our technologies to produce and market drugs in direct competition with us and erode our competitive advantage. Some foreign countries lack rules and methods for defending intellectual property rights and do not protect proprietary rights to the Hazard Analysissame extent as the United States. Many companies have had difficulty protecting their proprietary rights in these foreign countries. We may not be able to prevent misappropriation of our proprietary rights.

We are currently seeking patent protection for numerous processes and Critical Control Point (HACCP) systemfinished products. However, the patent process is subject to numerous risks and uncertainties, and there can be no assurance that we will be successful in protecting our products by obtaining and defending patents. These risks and uncertainties include the following: patents that may be issued or licensed may be challenged, invalidated, or circumvented, or otherwise may not provide any competitive advantage; our competitors, many of which have substantially greater resources than us and many of which have made significant investments in competing technologies, may seek, or may already have obtained, patents that will limit, interfere with, or eliminate our ability to make, use, and sell our potential products either in the United States or in international markets; there may be significant pressure on the United States government and other international governmental bodies to limit the scope of patent protection both inside and outside the United States for treatments that prove successful as a matter of public policy regarding worldwide health concerns; countries other than the United States may have less restrictive patent laws than those upheld by United States courts, allowing foreign competitors the ability to exploit these laws to create, develop, and market competing products.

9

Moreover, any patents issued to us may not provide us with meaningful protection, or others may challenge, circumvent or narrow our patents. Third parties may also independently develop products similar to our products, duplicate our unpatented products or design around any patents on products we develop. Additionally, extensive time is required for development, testing and regulatory review of a potential product. While extensions of patent term due to regulatory delays may be available, it is possible that, before any of our product candidates can be commercialized, any related patent, even with an extension, may expire or remain in force for only a short period following commercialization, thereby reducing any advantages of the patent.

In addition, the United States Patent and Trademark Office (the "PTO") and patent offices in other jurisdictions have often required that patent applications concerning biotechnology-related inventions be limited or narrowed substantially to cover only the specific innovations exemplified in the patent application, thereby limiting the scope of protection against competitive challenges. Thus, even if we or our licensors are able to obtain patents, the patents may be substantially narrower than anticipated.

Our success depends on patent applications that are licensed exclusively to us and other patents to which we may obtain assignment or licenses. We may not be aware, however, of all patents, published applications or published literature that may affect our business either by blocking our ability to commercialize our product candidates, by preventing the patentability of our product candidates to us or our licensors, or by covering the same or similar technologies that may invalidate our patents, limit the scope of our future patent claims or adversely affect our ability to market our product candidates.

In addition to patents, we rely on a combination of trade secrets, confidentiality, nondisclosure and other contractual provisions, and security measures to protect our confidential and proprietary information. These measures may not adequately protect our trade secrets or other proprietary information. If they do not adequately protect our rights, third parties could use our technology, and we could lose any competitive advantage we may have. In addition, others may independently develop similar proprietary information or techniques or otherwise gain access to our trade secrets, which could impair any competitive advantage we may have.

Patent protection and other intellectual property protection is crucial to the success of our business and prospects, and there is a substantial risk that such protections will prove inadequate.

If testing or clinical trials for our product candidates are unsuccessful or delayed, we will be unable to meet our anticipated development and commercialization timelines.

We rely and expect to continue to rely on third parties, including clinical research organizations and outside consultants, to conduct, supervise or monitor some or all aspects of testing or clinical trials involving our product candidates. We have less control over the timing and other aspects of testing or clinical trials than if we performed the monitoring and supervision entirely on our own. Third parties may not perform their responsibilities for our testing or clinical trials on our anticipated schedule or, for clinical trials, consistent with a clinical trial protocol. Delays in preclinical and clinical testing could significantly increase our product development costs and delay product commercialization. In addition, many of the factors that may cause, or lead to, a delay in the clinical trials may also ultimately lead to denial of regulatory approval of a product candidate.

The commencement of clinical trials can be delayed for a variety of reasons, including delays in:

·demonstrating sufficient safety and efficacy to obtain regulatory approval to commence a clinical trial;
·reaching agreement on acceptable terms with prospective contract research organizations and trial sites;
·manufacturing sufficient quantities of a product candidate; and
·obtaining institutional review board approval to conduct a clinical trial at a prospective site.
·

Once a clinical trial has begun, it may be delayed, suspended or terminated due to a number of factors, including:

·ongoing discussions with the FDA or other regulatory authorities regarding the scope or design of our clinical trials;
·failure to conduct clinical trials in accordance with regulatory requirements;
·lower than anticipated recruitment or retention rate of patients in clinical trials;
·lack of adequate funding to continue clinical trials; or
·negative results of clinical trials

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If clinical trials are unsuccessful, and we are not able to obtain regulatory approvals for our product candidates under development, we will not be able to commercialize these products, and therefore may not be able to generate sufficient revenues to support our business.

If we are unable to hire additional qualified personnel, our ability to grow our business may be harmed.

Over time we will need to hire additional qualified personnel with expertise in clinical testing, clinical research and testing, government regulation, formulation and manufacturing, financial matters and sales and marketing. We compete for qualified individuals with numerous biopharmaceutical companies, universities and other research institutions. Competition for such individuals is intense, and we cannot be certain that our search for such personnel will be successful. Attracting and retaining qualified personnel will be critical to our success.

Data provided by collaborators and others upon which we rely that has not been independently verified could turn out to be false, misleading, or incomplete.

We rely on third-party vendors, scientists, and collaborators to provide us with significant data and other information related to our projects, clinical trials, and our business. If such third parties provide inaccurate, misleading, or incomplete data, our business, prospects, and results of operations could be materially adversely affected.

Successful development of our products is uncertain.

Our development of current and future product candidates is subject to the risks of failure and delay inherent in the development of new biotech products, including: delays in product development, clinical testing, or manufacturing; unplanned expenditures in product development, clinical testing, or manufacturing; failure to receive regulatory approvals; emergence of superior or equivalent products; inability to manufacture on its own, or through any others, product candidates on a commercial scale; and failure to achieve market acceptance.

Because of these risks, our research and development efforts may not result in any commercially viable products. If a significant portion of these development efforts are not successfully completed, required regulatory approvals are not obtained or any approved products are not commercially successfully, our business, financial condition, and results of operations may be materially harmed.

We do not have, and may never obtain, the regulatory approvals we need to market our product candidates.

Following completion of clinical trials, the results are evaluated and, depending on the outcome, may be submitted to the FDA in the form of an NDA in order to obtain approval to commence commercial marketing using the desired claims. While FDA approval will not be required to sell our products, in order to make certain health-related claims, FDA approval may be required. In responding to an NDA, the FDA may require additional testing or information, may require that the product labeling be modified, may impose post-approval study or reporting requirements or other restrictions on product distribution, or may deny the application. The FDA has established performance goals for review of NDAs - six months for priority applications and ten months for standard applications. However, the FDA is not required to complete its review within these time periods. The timing of final FDA review and action varies greatly, but can take years in some case and may involve the input of an FDA advisory committee of outside experts. Product sales in the United States may commence only when an NDA is approved.

To date, we have not applied for or received the regulatory approvals required for the commercial sale of any of our products in the United States or in any foreign jurisdiction. None of our product candidates has been determined to be safe and effective, and we have not submitted an NDA to the FDA or an equivalent application to any foreign regulatory authorities for any of our product candidates.

It is possible that none of our product candidates will be approved for marketing. Failure to obtain regulatory approvals, or delays in obtaining regulatory approvals, may adversely affect the successful commercialization of any products we develop, may impose additional costs on us or our collaborators, may diminish any competitive advantages that we or our partners may attain, and/or may adversely affect our receipt of revenues or royalties.

Even if we obtain regulatory approval to market our product candidates, our product candidates may not be accepted by the USDAmarket.

Even if we receive regulatory approval to market one or more of our product candidates, consumers may not accept it or use it. Acceptance and endorseduse of our products will depend upon a number of factors including: perceptions by members of the National Academyhealth care community, including physicians, about the safety and effectiveness of Sciencesour products; cost-effectiveness of our product relative to competing products; and effectiveness of marketing and distribution efforts by us and our licensees and distributors, if any.

11

If we fail to establish marketing, sales and distribution capabilities, or fail to enter into arrangements with third parties, we will not be able to create a market for our product candidates.

Our strategy with our lead product candidates is to control, directly or through contracted third parties, all or most aspects of the National Advisory Committee on Microbiological Criteria for Foods. The HACCP approach is a systemproduct development process, including marketing, sales and distribution. Currently, we do not have any sales, marketing or distribution capabilities. In order to generate sales of checks and balancesany product candidates that focuses on identifying and preventing hazards from contaminating food, permits more efficient and effective government oversight on establishments and their compliance of food safety laws on a continuing basis, while placing responsibility on the food manufacturer or distributor for ensuring appropriate food safety.

We comply with the USDA Label Regulations on all packages, containers, and boxes used to transport any meat and/or poultry products; including, but not limited to: Product Name, Product Description, Ingredients, and Nutrition Facts Panel.

Furthermore,receive regulatory approval, we must complyeither acquire or develop an internal marketing and sales force with technical expertise and with supporting distribution capabilities or make arrangements with third parties to perform these services for us. The acquisition or development of a sales and distribution infrastructure would require substantial resources, which may divert the Standard Sanitation Operational Procedures (SSOP) that we have developed in accordance with the USDA to prevent direct contamination or adulteration of our products. The SSOPs are implemented and maintained on a daily basis and are relevant to the entire establishment and all shifts of operation. The SSOPs are signed and dated by the individual with overall authority on-site or a memberattention of our management team and key personnel and defer our product development efforts. To the extent that we enter into marketing and sales arrangements with other companies, our revenues will depend on the efforts of others. These efforts may not be successful. If we fail to develop sales, marketing and distribution channels, or enter into arrangements with third parties, we will experience delays in product sales and incur increased costs.

The establishment of a marketing, sales, and distribution capability would significantly increase our costs, possibly requiring substantial additional capital. In addition, there is intense competition for proficient sales and marketing personnel, and we may not be able to attract individuals who have the qualifications necessary to market, sell, and distribute our products. There can be no assurance that we will be able to establish internal marketing, sales, or distribution capabilities. If we are verified for adherence by a USDA certified inspector.unable to, or choose not to establish these capabilities, or if the capabilities we establish are not sufficient to meet our needs, we will be required to establish collaborative marketing, sales, or distribution relationships with third parties.

We face the risk of product liability claims and may not be able to obtain insurance.

Our business exposes us to the risk of product liability claims that are a federally-recognized establishment, thus, inspections by a USDA certified inspector occur on a daily basis.

We are notinherent in the development of consumer products. If the use of one of our products harms people, we may be subject to inspectioncostly and damaging product liability claims brought against us by clinical trial participants, consumers, or others selling our products. Our inability to obtain sufficient product liability insurance at an acceptable cost to protect against potential product liability claims could prevent or inhibit the commercialization of products we develop, alone or with collaborators. We currently do not carry clinical trial insurance or product liability insurance. We intend to obtain such insurance in the future. We cannot predict all of the possible harms or side effects that may result and, therefore, the amount of insurance coverage we hold now or in the future may not be adequate to cover all liabilities we might incur. If we are unable to obtain insurance at an acceptable cost or otherwise protect against potential product liability claims, we will be exposed to significant liabilities, which may materially and adversely affect our business and financial position. If we are sued for any cityinjury allegedly caused by our or state authority.our collaborators' products, our liability could exceed our total assets and our ability to pay the liability. A product liability claim or series of claims brought against us would decrease our cash and could cause our stock price to fall.




EMPLOYEES


WeThe Company, including subsidiaries, currently have twenty (13) paid full-timeemploys 100 full time employees, plus 7 commissioned sales people.of which 80 are engaged in farming, 5 in research and development, and 15 in management and operations. Once the Company has completed testing on its Phytofare™ products and has its production facility nearing completion, management expects to increase the number of employees engaged in farming, production, and operations significantly. We assess employee relations to be exceptional. Mr. Vucci our President, and the rest of the management team, devote one hundred percent (100%) of their professional time to running our company.excellent.

FURTHER INFORMATION

As of the effective date of this Registration Statement we will be required to file certain reports with the Securities and Exchange Commission including Annual Reports (Form 10-K), Quarterly Reports (Form 10-Q) and Current Reports (Form 8-K). A copy of our annual report will be provided to all shareholders and will include an audited balance sheet as of the end of the last fiscal year and audited income, cash flow and stockholders equity statements for the last two fiscal years.

Our shareholders and the public in general, may read and copy any materials we file at the SEC's Public Reference Room at 100 F Street, N.E., Washington, DC 20549. Information on the operation of the Public Reference Room may be obtained by calling the SEC at 1-800-SEC-0330. Additionally, the SEC maintains an Internet site that contains reports, proxy and information statements and other information regarding issuers. The address of that site is http://www.sec.gov.

ITEM 1 B. UNRESOLVED STAFFFSTAFF COMMENTS

None.

ITEM 2. PROPERTIES

The Company, through its subsidiary, Dunn Roman Holdings, controls notarial leases in South Africa encompassing 8,000 acres of tea plantations, farms and associated buildings. The Company also leases office space in London, England and White River, Mpumalanga, South Africa, and Seattle, Washington.

We subleasebelieve that our operating facility from a private company on a month-to-month basis for $9,000 per month. The facility consists of 4,000 sq. ft. with two (2) loading docks on the plantexisting facilities are suitable and a separate poultry section.adequate to meet our current business requirements.


ITEM 3. LEGAL PROCEEDINGS


On March 31, 2009, a group of former employees of the company filed an involuntary petition against the company for relief under chapter 7 of the Bankruptcy Code in the United States Bankruptcy Court for the Southern District of New York.  The company has filed a motion to dismiss the involuntary case on the grounds that the former employees are not holders of claims eligible to commence an involuntary petition under law and that the filing of the involuntary petition was motivated by bad faith.  In connection with its motion to dismiss the involuntary case, the company has asserted claims against the former employees for compensatory and punitive damages.  As of the date of this report, no order for relief under the Bankruptcy Code has been entered by the Bankruptcy Court.None.

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ITEM 4. REMOVED AND RESERVED


MINING SAFETY DISCLOSURES

Not applicable.

PART II

ITEM 5. MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Shares of the Company's common stock are quoted and traded from time to time on the OTC.BB with the trading symbol "DRFO."PLPL."

The following table sets forth the high and low bid information for the Company’s common stock for each quarter within the two fiscal years. The prices reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions.

Quarter Ending

 

Quarterly High

 

Quarterly Low

3/31/2009

 

$5.25

 

$5.25

6/30/2009

 

$4.10

 

$4.10

9/30/2009

 

$4.70

 

$4.70

12/31/2009

 

$3.72

 

$3.72

3/31/2010

 

$2.70

 

$2.70

6/30/2010

 

$0.45

 

$0.39

9/30/2010

 

$1.58

 

$1.41

12/31/2010

 

$0.98

 

$0.77

3/31/2011

 

$0.35

 

$0.23




Quarter Ending Quarterly High Quarterly Low
6/30/2011 $0.19 $0.16
9/30/2011 $0.13 $0.12
12/31/2011 $0.17 $0.15
3/31/2012 $0.26 $0.21
6/30/2012 $0.34 $0.18
9/30/2012 $0.22 $0.12
12/31/2012 $0.15 $0.06
3/31/2013 $0.08 $0.04
6/30/2013 $0.54 $0.05

Secondary trading of our shares may be subject to certain state imposed restrictions.

The ability of individual shareholders to trade their shares in a particular state may be subject to various rules and regulations of that state. A number of states require that an issuer's securities be registered in their state or appropriately exempted from registration before the securities are permitted to trade in that state.

From time-to-time we may grant options or warrants, or promise registration rights to certain shareholders. We have no control over the number of shares of our common stock that our shareholders sell. The price of our common stock may be adversely affected if large amounts are sold in a short period of time.

Our shares most likely will be subject to the provisions of Section 15(g) and Rule 15g-9 of the Exchange Act, commonly referred to as the "penny stock" rule.

Section 15(g) sets forth certain requirements for transactions in penny stocks and Rule 15g-9(d)(1) incorporates the definition of penny stock as that used in Rule 3a51-1 of the Exchange Act.

The SEC generally defines penny stock to be any equity security that has a market price less than $5.00 per share, subject to certain exceptions. Rule 3a51-1 provides that any equity security is considered to be a penny stock unless that security is: registered and traded on a national securities exchange meeting specified criteria set by the SEC; authorized for quotation on

The NASDAQ Stock Market; issued by a registered investment company; excluded from the definition on the basis of price (at least $5.00 per share) or the issuer's net tangible assets; or exempted from the definition by the SEC. Broker-dealers who sell penny stocks to persons other than established customers and accredited investors (generally persons with assets in excess of $1,000,000 or annual income exceeding $200,000, or $300,000 together with their spouse), are subject to additional sales practice requirements.

For transactions covered by these rules, broker-dealers must make a special suitability determination for the purchase of such securities and must have received the purchaser's written consent to the transaction prior to the purchase. Additionally, for any transaction involving a penny stock, unless exempt, the rules require the delivery, prior to the first transaction, of a risk disclosure document relating to the penny stock market. A broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative, and current quotations for the securities. Finally, monthly statements must be sent to clients disclosing recent price information for the penny stocks held in the account and information on the limited market in penny stocks. Consequently, these rules may restrict the ability of broker-dealers to trade and/or maintain a market in our common stock and may affect the ability of shareholders to sell their shares.

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As of July 8, 2011,June 30, 2013, there were approximately 542299 holders of record of our common stock. This number does not include an indeterminate number of shareholders whose shares are held by brokers in street name.

TRANSFER AGENT

We have appointed Signature Stock Transfer, Inc., with offices at 2301 Ohio Drive, Suite 100, Plano, TX 75093, phone number 972-612-4120, as transfer agent for our shares of common stock. The transfer agent is responsible for all record-keeping and administrative functions in connection with the common shares and stock warrants.

DIVIDEND POLICY

We don't plan to pay dividends at this time or anytime soon. The board of directors will decide on any future payment of dividends, depending on our results of operations, financial condition, capital requirements, and any other relevant factors. However, we expect to use any future earnings for operations and in the business.

RECENT SALES OF UNREGISTERED SECURITIES.

None.

In connection with the Share Exchange dated November 17, 2011, the Company issued 76,000,000 shares of unregistered, restricted common stock to the owners of Global Energy Solutions Corporation Limited. The shares were issued under Rule 144 of the Securities Act of 1933.

Prior to executing the share exchange, the Company issued 14,000,000 to various third parties in exchange for services rendered. These shares, together with the prior outstanding balance, have been treated as shares issued as of the share exchange date since Global Energy Solutions is the surviving company for reporting purposes. The shares were issued under Rule 144 of the Securities Act of 1933.

During the year ended June 30, 2012, the Company issued a total of 7,980,000 shares of restricted common stock in exchange for services previously rendered. The value of such shares on the date of issuance, $2,979,509, has been recorded as an expense in the period issued. The shares were issued under Rule 144 of the Securities Act of 1933.

In February 2012, the Company issued a total of 1,500,000 shares of restricted common stock to three individuals in exchange for shares of Dunn Roman Holdings stock which had been previously issued. The acquired Dunn Roman shares were then provided to thirds parties in order to comply with the BEE provisions associated with the loan from the Land Bank of South Africa, which required that 26% of Dunn Roman be black owned. The Company has therefore determined to treat the value of the shares issued to acquire the Dunn Roman stock as a cost of securing the financing. The value of the shares on the date of issuance, $585,000, has been recorded as a discount to Long Term Notes Payable. As funds are advanced on the loan, the $585,000 will be amortized over the life of the loan (7 years). The shares were issued under Rule 144 of the Securities Act of 1933.

During the year ended June 30, 2013, the company sold a total of 525,460 shares of restricted common stock for cash proceeds of $140,500. The shares were issued under Rule 144 of the Securities Act of 1933.

During the year ended June 30, 2013, the company received back 250,000 shares of stock that had been previously issued for services valued at $80,000. The company and the service provided determined that the services had not been fully rendered, thus the shares were returned to the company and cancelled. The company also purchased 4,900,000 shares of common stock from a former director of the company in exchange for $125,000, which represented a discount of 50% off the closing bid price on the date of purchase. These shares were subsequently cancelled.

In July of 2013, the Company issued 16,700 common shares for $5,000 cash. The shares were issued under Rule 144 of the Securities Act of 1933.

ITEM 6. SELECTED FINANCIAL DATA.

Not Applicable.

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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.



10



ANALYSIS OF OPERATIONS: 2011OPERATIONS

FOR THE YEARS ENDED JUNE 30, 2013 AND 2010 RESULTS2012

SALES

 

SALES

Our revenues from operationsFor the fiscal year ended June 30, 2013, sales were $359,143 compared to sales of $0 for the fiscal year ended March 31, 2011June 30, 2012. Sales during 2013 consisted of avocado, macadamia nuts and timber from the company’s farming operations in South Africa. The company has not commenced sales of its botanical extracts and does not anticipate having product available for market until early 2014.

EXPENSES

Our total expenses for the fiscal year ended June 30, 2013 were $7,162,889$1,973,698 compared to $8,548,888$3,912,812 in 2010 which was generated from the sale of our meat products and services. The decrease was a result of reduction in sales due to overall economic conditions. The decrease was $1,385,999.

COST OF SALES AND GROSS PROFIT

Our cost of sales for the year ended March 31, 2011 was $5,273,182, generating a gross profit of $1,889,707 or (26%).

Our gross profit has increased from 18% fromprior year. Of the prior year ended March 31, 2010.  Management expects gross profits to increase as revenues increase andamount,$2,977,700 resulted from recording the costfair value of sales decrease. The decrease in costs can be attributed to many factors, including, but not limited to better purchasing methods, better mix of product sales generating higher profits and better management control.

We have operated on the same margins with no changes in the types of products sold orstock issued for services provided from one period to the next. We attribute our growth to new customers and sales accounts and a higher volume of products being sold through these means. The addition to our customer base was achieved by increased sales efforts made by our management team through standard marketing procedures, such as in-person sales visits and demonstrations and "warm" referrals through existing clientele.  Increases in revenue can also be attributed to existing clients, who are responsible for managing multiple hotel and restaurant chains.

GENERAL AND ADMINISTRATIVE

Our payroll expenses for the year ended March 31, 2011 was $912,066,previously rendered, which was recorded as salary and professional services. In 2013, the company also commenced recording rent expense of $320,927 and depreciation of $135,039 as assets were placed in service.

OTHER

For the years ended June 30, 2013 and 2012, the Company reported interest expense of $265,245 and $28,586, respectively, an increase of $208,480 over the amount of $703,586 for the year ended March 31, 2010. This$236,659. The increase is attributable to an increase in staffing.

Our factoring expense for the year ended March 31, 2011 was $21,573, which was a decrease of $60,037 from the amount of $81,610 for the year ended March 31, 2010. This decrease is mainly attributableprimary due to the change in factoring companiesinterest accrued on the Land Bank loans.

For the years ended June 30, 2013 and overall reduction in receivables.

Our rent2012, the Company reported derivative interest expense for the year ended March 31, 2011 was $160,338 which was a decrease of $63,185 over the year ended March 31, 2010.  

Our Sales Commission for the year ended March 31, 2011 was $453,485, which was$45,227 and $0, respectively, an increase of $46,886 over the amount for the year ended March 31, 2010.

General and Administrative costs increased to $804,195 from $797,355 or $60,840 mainly$45,227. The increase was due to increasesthe issuance of convertible debenture issued in maintenance, utilities and consulting.May, 2013.


NET LOSS FROM OPERATIONS


The Company’s loss from operations decreased to $484,537 from $690,160 or $248,254.

PLAN OF OPERATION

For the next twelve months we plan to operate the business using our current methods, which include borrowing and factoring. We are able to satisfy our cash requirements, material commitments, and applicable filing fees anticipated under our obligations of the Exchange Act.

We intend to continue using an invoice factoring company in the short-term and over the next 12 months to fund our accounts receivable. We expect to finalize an agreement with a purchasing agent which would provide better terms for purchasing of our goods which could substantially effect our gross profit in a positive way, enabling us to become profitable.


LIQUIDITY AND CAPITAL RESOURCES

For the fiscal year ended June 30, 2013; the Company's cash used in operating activities totaled $1,846,334, which was primarily attributable to operational costs in South Africa associated with getting the Senteeko estate operational. Cash used in investing activities was $1,986, 908, which consisted almost entirely of leasehold improvements and fixed asset acquisitions in South Africa. Cash provided by financing activities was $4,327,047, the majority of which was provided by a bank loan of $3,944,712 that was used to purchase equipment and leasehold improvements for the South African operations. As of March 31, 2011,June 30, 2013, the Company had negative working capitalcurrent assets of $5,329,153. $518,994 compared to current liabilities of $823,729. Cash on hand was $498,917.

PLAN OF OPERATION

The Company executed a 49-year notarial lease, giving it control over 8,000 acres of plantation properties in South Africa. Plandaíplans to use a proprietary extraction process to create bio-available extracts using the farm produce from the plantation, with an initial emphasis on green tea and citrus extracts. During the fiscal year ended June 30, 2013 commenced rehabilitation efforts on the plantation, which involved removing overgrowth, paring the tea bushes, refurbishing housing for the laborers, and repairing the roads and bridges. The company also commenced construction on a 3,000m2 extraction facility which was completed in September 2013. Management currently estimates that tea harvesting and extract production will commence in December 2013.

Plandaí also commenced several laboratory trials in preparation for releasing product to market. These trials focus on bioavailability, anti-inflammation, topical absorption, weight loss, and malaria. The Company expects to release product to market in early 2014 under Phytofare™ brand name.

Plandaí has entered into several distribution agreements covering nutriceutical sales in North America, Europe and parts of Africa, with additional markets opening in the coming months.

The Company's continuedlong-term existence is dependent upon itsour ability to execute itsour operating plan and to obtain additional debt or equity financing. There can be no assurance the necessary debt or equity financing will be available, or will be available on terms acceptable to the Company.





Management plans include acquiring existing businesses in our industry, evaluating and introducing new product lines, and obtaining financing to fund payment of obligations and provide working capital. We are actively pursuing alternatives, although no firm commitments have been obtained.capital for operations. In April 2012, the interim, shareholders have committed to meeting our operating expenses. Although management believes these efforts will be successful, there is no assurance anyCompanythrough majority-owned subsidiaries of these efforts will succeed.Dunn Roman Holdings, Inc., executed final loan documents on a 100 million Rand (approx. $13 million USD) financing with the Land and Agriculture Bank of South Africa.

The Company has been meeting its capital requirements through the sale of its Common Stock, Notes Payable, Factoring of Receivables, and Related Party Loans.

For the twelve months ended March 31, 2011, the Company's cash provided by operating activities totaled $306,807. Cash provided by investing activities was $9,666, and cash used in financing activities was $323,897.

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ACQUISITIONS

The company has also consolidated its sales and marketing force and implemented a commission-based sales force tied to performance. The company plans to augment its current growth by identifying strategic regional acquisition targets with strong local and regional brand recognition.

ACQUISITIONS

We will need to raise additional funds should management decide to acquire existing like-minded businesses. Certain candidates have been identified however no definitive agreements exist. We have targeted several businesses for acquisition in New York City. We would acquire 100% of the stock and operations of these entities, including, without limitation, all rights, title know-how, assignment of property leases, equipment, furnishings, inventories, processes, trade names, trademarks, goodwill, and other assets of every nature useddoes not anticipate making any acquisitions in the entities' operations.coming twelve months.


All ofTRENDS

Green tea and green tea extracts have become ever-present in consumer products throughout Europe, Asia and the facilitiesAmericas. Every major beverage manufacturer has a green tea-infused product, but there are also countless other green tea-derived products that may be acquired are centrally located withinhave flooded the historic Gansevoort market in lower Manhattan, thus affording the company the ability to take advantage of the economies of scale for delivery, purchasing,recent years, including:

  • Ice cream
  • Soda
  • Shampoo & conditioner
  • Lotion and other daily operating responsibilities.

    skin care products
  • Nail polish
  • Vitamins
  • Weight loss supplements
  • Food additive
  • Soap


If we were successful in raising funds through the sale of our common stock, and will be able to enter into negotiations for the purchase of any and/or all of the selected businesses, initially no changes in day-to-day operations in any acquired facilities would be necessary.


No negotiations have taken place, and no contracts have been entered into, to purchase any such businesses described herein. We assume that if such purchase(s) were to be completed, additional funds would be required to renovate the existing facilities, as well as improve or replace machinery as prescribed by the existing landlord or pursuant to USDA regulation.

We expect to become profitable within the next twelve months based on our current growth trend. If sales continue to increase, we may elect to purchase/lease one (1) or more pieces of new equipment depending on inflated product demand. However, no new equipment is necessary to satisfy current operations or anticipated sales order increases within the next twelve months.

We do not anticipate hiring new paid full-time employees within the next twelve months. However, we would consider hiring commission-based salespeople should the opportunity arise.


TRENDS


Although restaurant menus follow public consumption trends, the Company supplies a wide variety of specialty products and cuts to its customers. The selection of value-added products can be adjusted to consumer trends very easily. These items typically produce higher margin returns. The Company inventories many products, so if beef preferences increase and poultry preferences decrease, Company sales would shift by item but remain stable by volume.  The Company would preserve its financial condition should public consumption trends change by adjusting its inventory and buying cycles.

Management has perceived a variety of recent trends that have had a material impact on our current revenues and our projected revenues for the coming quarters. Meat consumption has dramatically increased overall due to dieting habits; most famously known is The Atkins Diet, as well as other diets, that emphasize high-protein, low-carbohydrate intake. These diets suggest eating meats, including red, instead of high carbohydrate foods, and specifically recommend avoiding refined carbohydrates. High protein consumption has become a part of American culture, more than a societal tendency, in that in order to meet increasing customer requests for low-carb type items. We consider A 2008 published report estimated that the market research conductedfor green tea extract would grow by more than 13% for the next seven years as demand increases in Europe and the United States. Worldwide, sales for antioxidants, primarily green tea, was $34 billion in 2010. Sports supplements have also surged in recent years. In 2010, total worldwide sales were $4.7 billion, of which the US market comprised 66%, and growing at a rate of 15$ per year.

The Phytofare™ Citrus Limonoid Glycoside Complex targets multiple markets including sports medicine and nutrition, dietary supplements, and cold symptom relief. The market for nutriceutical market is even larger, with $176 billion being spent on food, beverages and supplements fortified with bioactive ingredients including proteins, vitamins and minerals. Of this customer was ampleamount, $48.8 billion is spent on dietary supplements alone. The United States comprises 32.8% of the worldwide market for nutriceuticals.

Initially, Plandaí will focus on developing markets within the following target industries:

·Fortification of food and beverages
·Wellness
·Dietary supplements
·Nutri-cosmetics
·Cosmeceutics
·Botanical drugs
·Athletic supplements

As food and beverage additives, Phytofare™ extracts can be added to effectuate suchvirtually any consumable product, or converted into tablet/capsule form, to provide the health benefits in a menu changehighly bioavailable form. This creates a nearly limitless opportunity for food and concursbeverage companies to incorporate Phytofare™-infused products into their product line. Likewise, supplement manufactures, who have long-touted antioxidant infused-products can now begin incorporating an extract that actually delivers on their claims.

The August 2013 license agreement with our perception thatNorth-West University covering the demanduse of Pheroid in animal and human use provides a stable delivery tool for beef, poultry,getting Phytofare™ to the target tissues through topical creams, capsules, or an oral liquid. The Pheroid technology entraps nano particles and other meats is a continuingprotects them until absorbed by cells. The process of glycolysis then breaks down the protective coating, releasing the phytonutrients into the tissues. This technology opens up several additional products lines for Plandaí products in the area of skin care, hair care and upwards trend. We substantiate the same claims through our own customers' purchasing trends which are evidenced by our increased revenues. The marketplace also indicates that poultry consumption is rising steadily. In order to maximize this trend, we are expanding our pre-cooked poultry offerings to all food providers, as well as those without full-service cooking establishments. Aside from the lack of a cooking facility, many purveyors seek pre-cooked poultry for safety reasons since these products offer a significantly low safety risk at causing bacterial cross-contamination. We offer pre-cooked items currently, and feel that making the investment to market these products under own branded name will increase our revenue due to heightened product awareness and our reputation for quality-conscious production methods.beverages.






CRITICAL ACCOUNTING POLICIES


The preparation of our financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect our reported assets, liabilities, revenues, and expenses, and the disclosure of contingent assets and liabilities.  We base our estimates and judgments on historical experience and on various other assumptions we believe to be reasonable under the circumstances.  Future events, however, may differ markedly from our current expectations and assumptions.  While there are a number of significant accounting policies affecting our financial statements, we believe the following critical accounting policies involve the most complex, difficult and subjective estimates and judgments.

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Revenue recognition

The Company presently derives its revenue from the sale of meattimber and agricultural products produced on its farm and the revenuetea estate holdings in South Africa. Revenue is recognized when the product is delivered to the customer. Once production of the Company’s Phytofare™ botanical extracts commence in 2014, revenues will be recognized when product is shipped.


Intangible and Long-Lived Assets


We follow Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 360,“Property Plant and Equipment”, which establishes a “primary asset” approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long lived asset to be held and used.  Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.  Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell.  

 

Goodwill is accounted for in accordance with ASC Topic 350,“Intangibles – Goodwill and Other”. We assess the impairment of long-lived assets, including goodwill and intangibles on an annual basis or whenever events or changes in circumstances indicate that the fair value is less than its carrying value. Factors that we consider important which could trigger an impairment review include poor economic performance relative to historical or projected future operating results, significant negative industry, economic or company specific trends, changes in the manner of our use of the assets or the plans for our business, market price of our common stock, and loss of key personnel. We have determined that there was no impairment of goodwill during 20112013 or 2010.2012.


Potential Derivative Instruments


We periodically assess our financial and equity instruments to determine if they require derivative accounting. Instruments which may potentially require derivative accounting are conversion features of debt and common stock equivalents in excess of available authorized common shares.

Principles of Consolidation

PlandaíBiotechnology, Inc. and its subsidiaries, are encompassed in the following entities, which have been consolidated in the accompanying financial statements:

Global Energy Solutions, Ltd.100% owned by Plandaí Biotechnology, Inc.
Dunn Roman Holdings—Africa, Ltd82% owned by Plandaí Biotechnology, Inc.
Breakwood Trading 22 (Pty) Ltd.74% owned by Dunn Roman Holdings-Africa
Green Gold Biotechnologies (Pty) Ltd.74% owned by Dunn Roman Holdings-Africa

During the year ended June 30, 2013, the Company determined that the entity, Global Energy Solutions, was unnecessary to operations and decided to dissolve that corporation, resulting in the stock of Dunn Roman Holdings-Africa being held directly by Plandaí. All liabilities were either satisfied or forgiven and all bank accounts closed. There were no operations in Global Energy Solutions during the years ended June 30, 2012 or 2013. Global Energy Solutions went through a “voluntary strikeoff”, which then resulted in a formal dissolution.

Statement of Financial Accounting Standards No. 160,Non-controlling Interests in Consolidated Financial Statements,establishes standards foraccounting for non-controlling interest, sometimes called a minority interest, which is that portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. FAS 160 requires that the non-controlling portion of equity and net income/loss from operations of consolidated entities be reflected in the financial statements. The Company previously adopted FAS 160 and has reflected the impact in the accompanying consolidated financial statements. All intercompany balances have been eliminated in consolidation.

17

Foreign Currency Translation


Financial Accounting Statement No. 52, Foreign Currency Translation (FAS 52), sets forth the appropriate accounting treatment under U.S. GAAP for companies that consolidate the results of foreign operations denominated in local currencies. FAS 52 requires that all assets and liabilities be translated at the current spot rate at the date of translation. Equity items, other than retained earnings, are translated at the spot rates in effect on each related transaction date. Retained earnings are translated at the weighted-average rate for the relevant year and income statement items are translated at the average rate for the period, except where specific identification is practicable. The resulting adjustment is not recognized in current earnings, but rather as a component of other comprehensive income. The Company adopted FAS 52 in the year ended June 30, 2012 and has chosen US dollars as the local currency. The effect of adopting FAS 52 have been reflected in the accompanying consolidated financial statements.

OFF-BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements.

GOING CONCERN OPINION BY COMPANY AUDITOR

The Company's financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustment relating to recoverability and classification of recorded amounts of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

The Company has incurred a net loss for the years ended March 31, 2011June 30, 2013 and 2010.2012.  These conditions raise substantial doubt as to the Company's ability to continue as a going concern.

The Company's continued existence is dependent upon its ability to execute its operating plan and to obtain additional debt or equity financing. There can be no assurance the necessary debt or equity financing will be available, or will be available on terms acceptable to the Company.





Management plans include acquiring additional meat processing and distribution operations and obtaining additional financing to fund payment of obligations and to provide working capital for operations and to finance future growth. The Company is actively pursuing alternative financing and has had discussions with various third parties, although no firm commitments have been obtained. In the interim, shareholders of the Company have committed to meeting its operating expenses. Management believes these efforts will generate sufficient cash flows from future operations to pay the Company's obligations and realize other assets. There is no assurance any of these transactions will occur.


Management does not consider our auditor's going concern opinion problematic because we have evaluated operating practices during the years ended 20112013 and 2010,2012, and have made modifications to our present-day operations accordingly. With a continuous increase in revenues and the continued implementation of stringent purchasing controls, we believe further increases in gross profit will occur, leading to a reduced net loss, with net profit to ultimately follow. We anticipate this trend to continue, however, if a downturn in revenues should occur, or cost of goods increased due to factors outside our control, and operating expenses were unable to be paid through cash flow from operations, our executive officers have committed to contribute capital, or waiver their salaries to offset these expenses.


We intend to expand our business primarily through acquisitions, which would require obtaining debt or equity financing as is indicatedsales by introducing Phytofare™ branded products in our auditor's going concern opinion. In preparation for such expansion, we have engaged in several substantive discussions with prospective equity investors. Although no terms have been finalized or contracts signed, several investors have showed strong interest in funding our business.the 2014 calendar year. We will also seek to obtain government grants to fund research and development and are exploring the potential to sell limited licenses to the Phytofare™ product.  We expect to raise capital either through a debt or equity transaction, despite our negative cash flows becauseor through the termssale of the capital raise would be subject and pursuant to the merit of each acquisition candidate. The acquisitions contemplated are all profitable companies and are engaged in a similar business so economies of scale will also allow our company, as the parent company, to benefit from the elimination of negative cash flow due to the incorporation of the acquisition into our business. Favorable financing terms would consist of a convertible debenture with an interest rate in the range of 6-8%. We would insist on a fixed conversion price converting the debt into common stock at a par with the current market price or at a premium to it.licenses.

ITEM 7A. QUANITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 

The financial statements and related notes are included as part of this report as indexed in the appendix on page F-1 through F-15.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.


On August 30, 2010, GruberIn June 2012, the Company engaged Cronin & Company LLC. (“Gruber”) informed the Registrant that it would not stand for re-election as the Registrant’sCompany's independent public accountant.

On September 28, 2010,accountant to audit the Registrant engaged M&K CPAS, PLLC (“M&K”) as the Registrant’s independent public accountants.  M&K has been engaged to review the Registrant’s unaudited interimCompany’s financial information, commencing with the quarter ended September 30, 2010,statements and to perform an auditreviews of the Registrant and report on theinterim financial statements for the fiscal year ending March 31, 2011.   Besides a standard going concern qualification, Gruber’s report on the financial statements for the both of the two past fiscal years did not contain an adverse opinion or a disclaimer of opinion, nor was it qualified or modified as to uncertainty, audit scope or accounting principles.  The decision to change accountants was approved by the registrant’s board of directors.statements.  During the fiscal years ended March 31, 2010June 30, 2011 and March 31, 2009, and any subsequent interim period2012 through August 30, 2010, when our former auditor declined to stand for re-election, there have been no disagreements with the former accountant on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreement, if not resolved to the satisfaction of the former accountant, would have caused it to make reference to the subject matter of the disagreement in its report.   

During the two most recent fiscal years and through the Engagement Date,October 1, 2012, neither the RegistrantCompany nor anyone acting on its behalf consulted M&Kwith Cronin & Company regarding the application of any accounting principles to a specified transaction, eitherspecific completed or proposed;contemplated transaction of the Company, or the type of audit opinion that might be rendered by Cronin & Company on the Registrant’sCompany's financial statements, and neither a written report was providedstatements.

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On December 3, 2012, the Company Board of Directors accepted the resignation of Michael F. Cronin, CPA from his engagement to be the Registrant nor oral advice was provided that M&K concluded was an important factor considered by the




Registrant in reaching a decision as to the accounting, auditing or financial reporting issue; or any matter that was either the subject of a disagreement (as defined in paragraph (a)(1)(iv) of Item 304 of Regulation S-K and the related instructions to this item) or a reportable event (as described in paragraph (a)(1)(v) of Item 304 of Regulation S-K).


On January 20, 2011, Diamond Ranch Foods, Ltd. (the “Company”) dismissed M & K CPAS, PLLC as independent auditorscertifying accountant for the Company.Company so that he could pursue a career in the private sector. The decision to dismiss M & K CPAS, PLLC and to seek new independent auditors was approved by the Company’s Boardreports of Directors.


The review of M & K CPAS, PLLCMichael F. Cronin, CPA on the Company’s financial statements for the three month periodfiscal year ended SeptemberJune 30, 20102012 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles.principles, except that it included an emphasis paragraph on the substantial doubt about the Company's ability to continue as a going concern as of a result of the Company having suffered recurring losses from operations. In connection with the reviewaudit of the Company’s financial statements for the three monthfiscal year ended June 30, 2012 and the subsequent interim period ended September 30, 2010,through December 3, 2012, (1) there were no disagreements with M & K CPAS, PLLCMichael F. Cronin, CPA on any matter of accounting principles or practices, financial statement disclosure or auditing scope and procedure which, if not resolved to the satisfaction of M & K CPAS, PLLC,Michael F. Cronin, CPA, would have caused M & K CPAS, PLLCMichael F. Cronin, CPA to make reference to the matter in the filingits report and (2) there were no “reportable events” as that term is defined in Item 304 of Regulation S-K promulgated under the Securities Exchange Act of 1934 (“Item 304”).


On January 20, 2011,December 3, 2012, the Company engaged Robison, Hill & CompanyPatrick Rodger, CPA, P.A. as the Company's independent accountant to audit the Company’s financial statements and to perform reviews of interim financial statements. During the fiscal years ended June 30, 2012 and March 31, 2010 and 20092011 through January 20, 2011December 3, 2012 neither the Company nor anyone acting on its behalf consulted with Robison, Hill & CompanyPatrick Rodgers, CPA, P.A. regarding (i) either the application of any accounting principles to a specific completed or contemplated transaction of the Company, or the type of audit opinion that might be rendered by Robison, Hill & CompanyPatrick Rodgers, CPA, P.A. on the Company's financial statements; or (ii) any matter that was either the subject of a disagreement with M & K CPAS, PLLCMichael F. Cronin, CPA or a reportable event with respect to M & K CPAS, PLLC.Michael F. Cronin, CPA.

ITEM 9A. CONTROLS AND PROCEDURES

Management, including our chief executive officer and chief financial officer, as of the end of the period covered by this Annual Report on Form 10-K, we have concluded our disclosure controls and procedures (as defined in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934 were effective to ensure that information required to be disclosed in reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms.

Changes in Internal Controls.

There were no significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation. There were no significant deficiencies or material weaknesses and therefore there were no corrective actions taken. However, the design of any system of controls is based in part upon certain assumptions about the likelihood of future events and there is no certainty that any design will succeed in achieving its stated goal under all potential future considerations, regardless of how remote.  


Management’s Report on Internal Control over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act. Internal control over financial reporting refers to a process designed by, or under the supervision of, our Chief Executive Officer and Chief Financial Officer and effected by our Board, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in connection with generally accepted accounting principles, including those policies and procedures that:


-

pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;

-

provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and







-

provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our consolidated financial statements.

 

Because of its inherent limitations, internal control over financial reporting cannot provide absolute assurance of the prevention or detection of misstatements. In addition, projections of any evaluation of effectiveness to future periods are subject to risk

19

that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.


In connection with the preparation of this Annual Report on Form 10-K for the year ended March 31, 2011,June 30, 2013, management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our internal controls over financial reporting, pursuant to Rule 13a-15 under the Exchange Act. Our Chief Executive Officer and Chief Financial Officer have concluded that the design and operation of our internal controls and procedures are effective as of March 31, 2011.June 30, 2013. There were no significant changes in our internal controls over financial reporting that occurred during the fourth fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

 

This Annual Report on Form 10-K does not include an attestation report of the Company’s independent registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit us to provide only management’s report in this Annual Report on Form 10-K.

ITEM 9B. OTHER INFORMATION


Not Applicable.


PART III

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

The following table sets forth as of July 8, 2011June 30, 2013 certain information regarding our current directors and executive officers:


NameAge

Name

Age

Position

Louis Vucci, Jr.

Roger Duffield

41

70

Chief Executive Officer,Chairman, President, Secretary and Director, Acting Chief Financial Officer

Callum Baylis-Duffield28Vice President-Sales, Director
Daron Baylis Duffield62Director
Brian Johnson57Director
David Rzepnicki42

Director

 

Victor Petrone

42

Chief Operating Officer, Chief Financial Officer

Roger Duffield – Chairman, President, Secretary and Director

Phillip Serlin

68

Vice President of Business Development and Director

Louis Vucci, Jr., President, Chief Executive Officer and Director
Mr. Louis Vucci, Jr. has been our President and Director since March 8, 2004. Since 1990, Mr. Vucci was President of Vucci Foods, Inc., a meat distribution company, whose operations were integrated into MBC Foods, Inc. in 2003. Mr. Vucci specialized in sales account management and expansion.

Mr. Vucci devotes 100% of his time as our chief executive officer.


Victor Petrone, Chief Operating Officer, Chief Financial Officer

Roger Duffield has a significant background in the development   and management of start-ups, private and public companies, especially in the United States, Europe and South Africa. His previous contributions in the United States public sector include Klinair Technologies Inc. and Rhombic Inc. relating to energy and hydrocarbon technologies. Through his extensive involvement with research and development programs with a number of academic institutions, including Penn State, University of Southern California, University of Washington, and the University of Limerick, Ireland, he was awarded two honorary Russian doctorates in Natural Sciences from the University of Moscow and Novosibirsk. In 2001 the Foundation for International Services, California recognized a degree in BSc. Chemical Engineering.

In 2001 he co-founded Global Energy Solutions Corporation Limited, Dublin, Ireland, recently acquired by Plandaí Biotechnology, Inc., and in 2003, the USA-based Research Company, CRS Technologies Inc. Mr. Duffield now heads this group of companies specializing, through private and public investment in the farming and recovery of highly valuable botanical extracts with unique characteristics.

Callum Baylis-Duffield – Director, Vice President

Victor Petrone, - Mr. Petrone, CFO, COOCallum Baylis-Duffield is a graduate in International Business with French (BA Hons) from the University of the West of England. From 2007-2010, he was employed by Johnson and Johnson UK as a marketing & sales manager of a proprietary surgical device. Since 2010 he has been exclusively employed by Global Energy Solutions as the Director of Marketing and Sales and for the past 18 months has been based in South Africa where he has been integral to bringing the proprietary extract to market. Mr Baylis-Duffield has been involved with the research and development of the Plandaí’s proprietary emulsions since 2004 and has worked extensively with the USA scientific team.

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Daron Baylis Duffield – Director

Daron Baylis Duffield has a PhD in Clinical Psychology and is a consultant psychiatrist with an international practice. She is the co-founder and Director of Global Energy Solutions Corporation Limited. Born in Malawi and has lived a great deal of her life in East and Southern Africa, she has an in-depth knowledge of the malnutrition crisis, alongside the accompanying physical and psychological dilemmas facing the people of Africa. During the 1990s she worked with the Red Cross in the HIV/Aids programs in South Africa.

Brian Johnson – Director

Mr. Johnson is a patent attorney with a Bachelor of Science degree in Electrical Engineering and Juris Doctorate degree, both from the University of Texas, Austin and a memberBachelor of Science degree in Mechanical Engineering from the Board of Directors of Diamond Ranch Foods, Ltd. is a Graduate of The Wharton School of Business; University of Pennsylvania andColorado, Boulder. He has almost 30 years of food distribution, restaurant operation, import/export, and public company experience to his credit. Mr. Petrone’s diversified experience and skill set is applicable to many capacities of the businesspracticed as it plans to strategically expandan engineer in the marketplace. Prior to working at Diamond Ranch Foods, Mr. Petrone began his career in the mid-1980s as owner and General Manager of Capital Food Corp. where he developed ethnic dining concepts for quick-service restaurants, formal dining,United States Air Force as well as free-standing restaurants.in the private sector, was previously a patent inspector, and was admitted to the Texas State Bar in 1995. Since 2008, he has served a patent counsel for Intellectual Ventures, LLC, prior to which he was Of Counsel Attorney for Davis Wright Tremaine, LLP.

David Rzepnicki – Director

Mr. Rzepnicki holds a Bachelor of Science degree in Accounting from Barry University and has worked as a Chief Financial Officer or Controller for several companies across a diversified field of industries including fashion, real estate, energy, logistics and insurance. He entered the food distribution sector, Serv-Safe Certifiedcurrently serves as controller for Excess Health, Inc., prior to which he was controller for Missmatched, Inc. and in 1999 was recruited by Roma Food Enterprises as General Manager of Western US and Mexico to oversee its International expansion. In 2001, Mr. Petrone was recruited by U.S. giant Sysco Foodservice Corporation to oversee its Specialty Market Division, as well as Business Development for International Sales. In 2004, Mr. Petrone formed International Food Specialists Inc. (IFS), an import-export company representing over 70 manufacturers and up to 500 product lines. The sales market included USA, Mexico, Canada, The Caribbean, Central and




South America. In 2006, Mr. Petrone consolidated IFS, Inc. with publicly traded Nascent Wine Company, Inc. where he served as the company's President and Director.

Philip Serlin, Vice President of Business Development and Director
Mr. Philip Serlin has been our Vice President of Business Development and Director since March 8, 2004. Mr. Serlin became the Chief OperationsFinancial Officer of MBC Foods, Inc. in 1999 after he integrated his company, PHS Ship Supply Corp., a hamburgerScott-Lawrence Realty and chop meat processing company, into the operations of MBC Foods, Inc. Mr. Serlin devotes 100% of his time as Vice President of Business Development and Director.Corporation.

DIRECTOR COMPENSATION

Our directors are also employees, but are

The Company does not compensated for their duties performed aspresently have any compensation agreements with its directors.

TERM OF OFFICE

The directors named above will serve until the next annual meeting of our shareholders. In absence of an employment agreement, officers hold their positions at the satisfaction of the Board of Directors.

FAMILY RELATIONSHIPS

None.

Roger Duffield and Daron Baylis Duffield are married. Callum Baylis-Duffield is the son of Roger Duffield and Daron Baylis Duffield.

INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS

None of our directors or executive officers has, during the past five years,


1.      have been convicted in a criminal  proceeding  and none of our directors or executive officers is subject to a pending criminal proceeding,


2.      been  subject  to any order,  judgment,  or  decree,  not  subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining,  barring, suspending or otherwise limiting his involvement in any type of business, securities,  futures, commodities or banking activities, or


3.      been found by a court of competent  jurisdiction  (in a civil  action), the Securities and Exchange Commission or the Commodity Futures Trading Commission  to  have   violated  a federal  or  state   securities  or commodities law, and the judgment has not been reversed,  suspended, or vacated.

AUDIT COMMITTEE FINANCIAL EXPERT

The Company's board of directors does not have an "audit committee financial expert," within the meaning of such phrase under applicable regulations of the Securities and Exchange Commission, serving on its audit committee. The board of directors believes that all members of its audit committee are financially literate and experienced in business matters, and that one or more members of the audit committee are capable of (i) understanding generally accepted accounting principles ("GAAP") and financial statements, (ii) assessing the general application of GAAP principles in connection with our accounting for estimates, accruals and reserves, (iii) analyzing and evaluating our financial statements, (iv) understanding our internal controls and procedures for financial reporting; and (v) understanding audit committee functions, all of which are attributes of an audit committee financial expert. However, the board of directors believes that there is not any audit committee member who has obtained these attributes through the experience specified in the SEC's definition of "audit committee financial expert." Further, like many small companies, it is difficult for the Company to attract and retain board members who qualify as "audit committee financial experts," and competition for these individuals is significant. The board believes that its current audit committee is able to fulfill its role under SEC regulations despite not having a designated "audit committee financial expert."

21





17



COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT



The Company does not have a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. Accordingly, the Company's executive officers and directors and persons who own more than 10% of its equity securities are not subject to the beneficial ownership reporting requirements of Section 16(a) of that Act. However, although not required, certain of such persons do file beneficial ownership reports with the Securities and Exchange Commission.

To the best of our knowledge and based solely upon our review of the reports filed and submitted to the Company during the fiscal year ended March 31, 2011,June 30, 2012, the Company believes that all reports were timely filed by such persons.

ITEM 11. EXECUTIVE COMPENSATION.


The following table provides certain summary information concerning the compensation earned by the named executive officers for the year ended March 31, 2011June 30, 2013 and March 31, 2010,June 30, 2012, for services rendered in all capacities to Diamond Ranch Foods, Ltd.:the Company:


Name & Principal Position

Year

Salary ($)

Bonus ($)

Stock Awards ($)

Option Awards ($)

Non-Equity Incentive Plan Compensation ($)

Nonqualified Deferred Compensation Earnings ($)

All Other Compensation ($)

Total ($)

Louis Vucci, Jr.

President, CEO and Director

2011

100,000

-0-

-0-

-0-

-0-

-0-

-0-

100,000

 

2010

145,000

-0-

-0-

-0-

-0-

-0-

-0-

145,000

Victor Petrone COO, CFO and Director

2011

100,000

-0-

-0-

-0-

-0-

-0-

-0-

100,000

 

 

 

 

 

 

 

 

 

 

Philip Serlin

Director

2011

85,000

-0-

-0-

-0-

-0-

-0-

-0-

85,000

 

2010

130,000

-0-

-0-

-0-

-0-

-0-

-0-

130,000

Name & Principal Position Year Salary ($) Bonus ($) Stock Awards ($) Option Awards ($) Non-Equity Incentive Plan Compensation ($) Nonqualified Deferred Compensation Earnings ($) All Other Compensation ($) Total ($)
Roger Duffield.
CEO, CFO and Director
  2013   20,000   -0-   100,000   -0-   -0-   -0-   -0-   120,000 
   2012   -0-   -0-   -0-   -0-   -0-   -0-   -0-   -0- 
Callum Baylis-Duffield, Direcor, Vice President  2013   20,000   -0-   50,000   -0-   -0-   -0-   -0-   70,000 
   2012   7,410   -0-   -0-   -0-   -0-   -0-   -0-   7,410 
                                     
Daron Baylis Duffield, Director  2013   -0-   -0-   6,000   -0-   -0-   -0-   -0-   6,000 
   2012   -0-   -0-   -0-   -0-   -0-   -0-   -0-   -0- 
                                     
Brian Johnson
Director
  2013   -0-   -0-   6,000   -0-   -0-   -0-   -0-   6,000 
   2012   -0-   -0-   -0-   -0-   -0-   -0-   -0-   -0- 
                                     
David Rzepnicki
Director
  2013   20,000   -0-   6,000   -0-   -0-   -0-   -0-   26,000 
   2012   -0-   -0-   -0-   -0-   -0-   -0-   -0-   -0- 
                                     

We do not have a longtermlong-term incentive plan or arrangement of compensation with any individual in the group of officers and directors.directors except as listed below:

In March 2013, the Company executed five-year employment contract with Roger Duffield, who serves as Chief Executive Officer and Chief Financial Officer. The contract stipulates that once the Company successfully raises $5,000,000 in capital equity, Roger Duffield is to be paid an annual salary of $180,000. As of right now, the Company has not raised the $5,000,000 in capital equity so it cannot sustain such payments and therefore pays Roger Duffield $5,000 per month in base compensation. The contract also calls for an annual payment of 2,000,000 common shares of Plandaí stock at the completion of each year of the contract.

22

In March 2013, the Company executed five-year employment contract with Callum Baylis Duffield, who serves as Vice President of Sales and Marketing and also as President of the company’s nutriceutical division. The contract stipulates that once the Company successfully raises $5,000,000 in capital equity, Callum Baylis Duffield is to be paid an annual salary of $120,000. As of right now, the Company has not raised the $5,000,000 in capital equity so it cannot sustain such payments and therefore pays Callum Baylis Duffield $5,000 per month in base compensation. The contract also calls for an annual payment of 1,000,000 common shares of Plandaí stock at the completion of each year of the contract.

 

EMPLOYMENT AGREEMENTS

None.

All of the company’s employees operate under employment contracts pursuant to South African labor laws. These contracts vary in term and compensation depending on the individual employee and their position within the company.

In March 2013, the Company executed five-year employment contract with a member of management who serves as president of the company’s pharmaceutical division. The contract stipulates that once the Company successfully raises $5,000,000 in capital equity, the member of management is to be paid an annual salary of $120,000. As of right now, the Company has not raised the $5,000,000 in capital equity so it cannot sustain such payments and therefore pays the member of management $5,000 per month in base compensation. The contract also calls for an annual payment of 1,000,000 common shares of Plandaí stock at the completion of each year of the contract.

STOCK OPTION GRANTS AND EXERCISES

We granted no stock options to any of our officers or directors.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

The following table sets forth a information regarding the beneficial ownership of our common stock with respect to each of our executive officers, each of our directors, each person known by us to own beneficially more than 5% of the common stock, and all of our directors and executive officers as a group. Each individual or entity named has sole investment and voting power with respect to shares of common stock indicated as beneficially owned by them, except where otherwise noted.


 

Name and Address(1)

Number of Shares Beneficially Owned(2)ClassPercentage Beneficially Owned(3)                         

Roger Duffield

Chairman, President, Secretary and Chief Financial Officer

32,747,400(4)(5)Common30%
Callum Baylis-Duffied, VP-Sales1,232,000(5)Common*

Daron Baylis Duffield

Director

32,383,500(4)Common30%

Brian Johnson

Director

1,500,000(5)Common1.4%

David Rzepnicki

Director

150,000(5)Common*

All Officers and Directors as a group (6 in number)

 

*Denotes less than 1%

68,012,900Common64%











Name and Address (1)                   

Number of Shares Beneficially Owned(2)                         

Class

Percentage Beneficially Owned(3)                         

Louis Vucci, Jr.

President, CEO and Director

2,000,000

Common

17.7%

Victor Petronne

COO, CFO and Director

-0-

Common

*

Philip Serlin

Vice President of Business Development and Director

300,000

Common

2.6%

All Officers and Directors as a group (3 in number)          

2,300,000

Common

20.3%

*Denotes less than 1%

 

 

 

(1) Unless otherwise stated, the address of all persons is 355 Food Center Drive B-1, Bronx, NY 10474.2226 Eastlake Avenue East #156, Seattle, WA 98102.

(2) The information contained in this table with respect to beneficial ownership reflects "beneficial ownership" as defined in Rule 13d-3 under the Exchange Act. All information with respect to the beneficial ownership of any shareholder has been furnished by such shareholder and, except as otherwise indicated or pursuant to community property laws, each shareholder has sole voting and investment power with respect to shares listed as beneficially owned by such shareholder. Pursuant to the rules of the Commission, in calculating percentage ownership, each person is deemed to beneficially own shares subject to options or warrants exercisable within 60 days of the date of this Filing, but shares subject to options or warrants owned by others (even if exercisable within 60 days) are deemed not to be outstanding.

(3) The above percentages are based on 11,415,300106,270,760 shares of common stock outstanding as of March 31, 2011.June 30, 2013.


(4) Includes 63,867,000 shares held by a trust of which Roger Duffield and Daron Baylis-Duffield are equal beneficiaries.

(5) Amount does not includes shares awarded in FY2013 which have not been issued as of June 30, 2013 (2,000,000 shares to R. Duffield, 1,000,000 shares to C. Duffield, 150,000 shares each to Johnson and Rzepnicki).

23

CHANGES IN CONTROL

We are unaware of any contract or other arrangement, the operation of which may, at a subsequent date, result in a change in control of our Company. Presently in the by-laws there are no provisions that could delay a change in control of the Company.

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

As of March 31, 2011, we have an outstanding note payable to Berkshire Capital Management Co., Inc., a shareholder, in the amount of $2,640,942. The note is payable in lump-sum including interest at 5% and as of the date of this report is past due. Interest on the notes began accruing on September 30, 2004. We considered the terms of this loan to be more beneficial than any other loans that might have been available from third parties at that time.

To the best of our knowledge, there are no other transactions involving any Director, Executive Officer, any nominee for election as a Director or Officer, or any 5% shareholder who is a beneficial owner or any member of the immediate family of the same.same, except as listed below:

In June 2012, the Company’s subsidiary, Green Gold Biotechnology (Pty), Ltd., ordered machinery and equipment from CRS Technology, Inc., a company controlled by a trust of which Roger Duffield and Daron Baylis Duffield are the beneficiaries. The total purchase price of the assets acquired of approximately $5,779,200 (R47,793,992) was paid for from proceeds from the Land and Agriculture Bank of South Africa

As of June 30, 2013 and 2012, the Company has accounts payable to related parties totaling $145,822 and $7,940 which consists primary of amounts owed to a company controlled by an officer and director of the company which previously paid expenses on behalf of the company.

As of June 30, 2013 and 2012, the Company has outstanding loans from the Company’s Chief Executive Officer in the amount of $501,518 and $402,903. These loans were provided for short-term working capital purposes and bear interest at a rate of 4%. The loans cannot be called until the Company’s obligations under the Land & Agriculture Bank of South Africa have been met.

The Company leases its South African Office space from a trust of which one of the beneficiaries serves on the Board of Directors of Dunn Roman Holding—Africa, Ltd., a subsidiary of the Company. The lease agreement calls for monthly payments of $2,500. During the years ended June 30, 2013 and 2012, a total of $32,154 and $0 has been paid in rent expense.

ITEM 14. PRINCIPAL ACCOUNTANT FEES & SERVICES.

The following is a summary of the fees billed to the Company by M&K CPAS, PLLC and Gruber & Company our principal accountants,the Company’s auditors for professional services rendered during 20112013 and 2010:2012:

 

Services

 

2011

 

2010

 

 

 

 

 2013 2012

Audit Fees

$

16,000

 

$

10,000

 $34,000  $18,000 

Audit-Related Fess

 

-

 

-

  —     —   

Tax Fees

 

-

 

-

  —     —   

Total

 $34,000  $18,000 

AUDIT FEES. Consist of fees billed for professional services rendered for the audits of our consolidated financial statements included in our annual report, reviews of our interim consolidated financial statements included in quarterly reports, other services performed in connection with filings with the Securities and Exchange Commission and related comfort letters and other services that are normallywere provided by Patrick Rodgers, CPA, PA, Mike Cronnin, CPA, PA andRobison, Hill & Company and Gruber & Company in connection with statutory and regulatory filings or engagements.

TAX FEES. Consist of fees billed for professional services for tax compliance, tax advice and tax planning. These services include assistance regarding federal, state and local tax compliance and consultation in connection with various transactions and acquisitions.





ALL OTHER FEES. Consist of fees billed for products and services provided by the principal accountant other than Audit Fees, Audit-Related Fees and Tax Fees.

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

 

 

 

Incorporated by reference

Exhibit

Exhibit Description

Filed herewith

Form

Period ending

Exhibit

Filing date

3.1

Diamond Ranch Foods, Ltd. Articles

 

10SB-12G

 

3.1

3/6/2005

3.2

Diamond Ranch Foods, Ltd. By-Laws

 

10SB-12G

 

3.2

3/6/2005

31.1

Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

X

 

 

 

 

31.2

Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

X

 

 

 

 

32.1

Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

X

 

 

 

 

32.2

Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

X

 

 

 

 

   Incorporated by reference
ExhibitExhibit DescriptionFiled herewithFormPeriod endingExhibitFiling date
3.1Plandaí Biotechnology, Inc. Articles 10SB-12G 3.13/6/2005
3.2

Plandaí Biotechnology, Inc.

By-Laws

 10SB-12G 3.23/6/2005
10.1The Shamile Communal Property Association Lease 10-K 10.19/30/2013
31.1Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002X    
31.2Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002X    
32.1Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002X    
32.2Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002X    
101.INSXBRL Instance DocumentX    
101.SCHXBRL Taxonomy Extension Schema DocumentX    
101.CALXBRL Taxonomy Extension Calculation Linkbase DocumentX    
101.LABXBRL Taxonomy Extension Label Linkbase DocumentX    
101.PREXBRL Taxonomy Extension Presentation Linkbase DocumentX    
101.DEFXBRL Taxonomy Extension Definition Linkbase DefinitionX    

21                      List of Subsidiaries                                              X





DIAMOND RANCH FOODS, LTD.

FINANCIAL STATEMENTS

MARCH 31, 2011 AND 2010

 











C O N T E N T S


PAGE

Reports of Independent Registered Public Accounting Firm

F-3

F-2

Consolidated Balance Sheets

as of June 30, 2013 and 2012

F-4

F-3

StatementConsolidated Statements of Operations

for the years ended June 30, 2013 and 2012

F-5

F-4

Statement of Stockholders’ Equity

F-6

Consolidated Statement of Cash Flows

for the years ended June 30, 2013 and 2012

F-7

F-5

Consolidated Statement of Stockholders’ Deficit for the years ended June 30, 2013 and 2012

F-6
Notes to Consolidated Financial Statements

F-9

F-7









TERRY L. JOHNSON, CPA

406 Greyford Lane

Casselberry, Florida 32707

Phone 407-721-4753

Fax/Voice Message 866-813-3428

E-mail cpatlj@yahoo.com

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


ROBISON, HILL & CO.

Certified Public Accountants

A PROFESSIONAL CORPORATION

BRENT M. DAVIES, CPA

��

DAVID O. SEAL, CPA

W. DALE WESTENSKOW, CPA

BARRY D. LOVELESS, CPA

STEPHEN M. HALLEY, CPA


Board of Directors and Shareholders
Plandai Biotechnology, Inc., and Subsidiary
Seattle, WA


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTANTS


Diamond Ranch Foods, Ltd.


WeI have audited the accompanying balance sheets of Diamond Ranch Foods, Ltd.Plandai Biotechnology, Inc., and Subsidiary ("the Company") as of March 31, 2011June 30, 2013 and 2012 and the related statements of operations, stockholder’sstockholders' equity, and cash flows for the yearyears then ended.  These financial statements are the responsibility of the Company's management. OurMy responsibility is to express an opinion on these financial statements based on ourmy audit.


WeI conducted ourmy audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that weI plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.  The Company ismisstatements. I was not required to have, nor were we engaged to perform an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control over financial reporting.  Accordingly, we express no such opinion.  An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation.  We believe that ourMy audits provide a reasonable basis for our opinion.


In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Diamond Ranch Foods, Ltd. as of March 31, 2011 and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.


The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 1 to the financial statements, the Company has suffered recurring losses from operations which raise substantial doubt about its ability to continue as a going concern.  Management’s plans in regard to these matters are also described in Note 1.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.



/s/ Robison, Hill & Co.

Certified Public Accountants


Salt Lake City, Utah

July 11, 2011






REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

THE BOARD OF DIRECTORS AND SHAREHOLDERS OF DIAMOND RANCH FOODS, LTD.


We have audited the accompanying balance sheet of Diamond Ranch Foods, Ltd. as of March 31, 2010 and the related statements of operations, stockholders' equity and cash flows for the year then ended. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audit.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform our audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, weI express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. WeI believe that our audit providesmy audits provide a reasonable basis for ourmy opinion. In my opinion, these financial statements present fairly, in all material respects, the financial position of Plandai Biotechnology, Inc, and Subsidiary as of June 30, 2013 and 2012 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.


In ourmy opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Diamond Ranch Foods, Ltd.Plandai Biotechnology, Inc., and Subsidiary as of March 31, 2010June 30, 2013 and 2012 and the results of its'its operations and its'its cash flows for the year then ended June 30, 2013 and 2012 in conformity with accounting principles generally accepted in the United States of America.

States.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discusseddescribed in note 1 toNote 15 of the accompanying financial statements, the Company has suffered recurringincurred losses from operations that raisesince inception, has a negative working capital balance at June 30, 2013, and has an accumulated deficit, which raises substantial doubt about itits ability to continue as a going concern. Management’s plans in regard to this matter are described in Note 15. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

/s/ Gruber & Company, LLC
Terry L. Johnson, CPA
Gruber & Company, LLC
Lake Saint Louis, Missouri    
July 8, 2010 

Casselberry, Florida

April 29, 2014

 

 

 



 


F-2


DIAMOND RANCH FOODS, LTD.PLANDAI BIOTECHNOLOGY, INC.

CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

 

 

 

 

 

 

 


ASSETS

 

                           March 31,

Current Assets:

 

2011

 

2010

Cash in Bank

$

-

$

7,424

Marketable Securities

 

-

 

22,000

Accounts Receivable – Factored

 

-

 

422,406

Accounts Receivable-Non Factored (Net)

 

574,282

 

760,874

Inventory

 

95,143

 

231,398

Other Current Assets

 

2,215

 

2,734

Total Current Assets

 

671,640

 

1,446,836

Fixed Assets – Net

 

270,768

 

281,021

 

 

 

 

 

Total Assets

$

942,408

$

1,727,857

 

 

 

 

 

LIABILITIES & STOCKHOLDERS' EQUITY

 

 

 

 

Current Liabilities:

 

 

 

 

Bank overdraft

$

-

    $

48,660

Accounts Payable and Accrued Expenses

 

913,377

 

973,574

Accounts payable – Related party

 

1,935,755

 

1,874,408

Factoring Line of Credit

 

-

 

379,465

Shareholder Loans

 

2,640,942

 

2,526,887

Interest payable

 

510,719

 

425,689

Total Current Liabilities

 

6,000,793

 

6,228,683

 

 

 

 

 

TOTAL LIABILITIES

 

6,000,793

 

6,228,683

 

 

 

 

 

STOCKHOLDERS' DEFICIT

 

 

 

 

Preferred Stock, authorized 10,000,000 shares, par value $.0001, 5,284 shares issued and outstanding as of March 31, 2011 and March 31, 2010

 

1

 

1

Common Stock, authorized 500,000,000 shares, $0.0001 par value $.0001, 11,415,300 shares issued and outstanding as of March 31, 2011 and 11,290,300 March 31, 2010

 

1,142

 

1,129

Additional Paid-In Capital

 

4,475,102

 

4,484,942

Retained Deficit

 

(9,534,630)

 

(8,986,898)

Total Stockholders’ Deficit

 

(5,058,385)

 

(4,500,826)

Total Liabilities and Stockholders' Deficit

$

942,408

$

1,727,857


The accompanying notes are an integral part of these financial statements.



  June 30, June 30,
  2013 2012
ASSETS        
Current Assets:        
Cash  498,917   5,112 
Inventory  6,439   —   
Accounts Receivable  13,638   —   
Total Current Assets  518,994   5,112 
         
Deposits  10,648   5,813,990 
Other Assets  380,929   22,068 
Fixed Assets – Net  7,924,910   215,837 
Total Assets  8,835,482   6,057,007 
         
LIABILITIES & STOCKHOLDERS' DEFICIT        
Current Liabilities:        
Accounts Payable and Accrued Expenses  516,006   64,322 
Accrued Interest  93,184   28,219 
Convertible Note Payable  103,500   —   
Derivative Liability  45,227   —   
Related Party Payables  145,822   7,940 
Total Current Liabilities  903,739   100,481 
         
Loans from Related Parties  501,518   402,903 
Capitalized Lease Obligation  988,381   592,639 
Credit Line  752,503   614,168 
Long Term Debt, Net of Discount  9,173,702   5,228,990 
Total Liabilities  12,319,844   6,939,181 
         
STOCKHOLDERS' DEFICIT        
Common Stock, authorized 500,000,000 shares, $0.0001 par value; 106,270,760 and 110,895,300 issued and outstanding at June 30, 2013 and June 30, 2012, respectively  10,628   11,090 
Stock Subscription Payable  261,600   —   
Additional Paid-In Capital  7,833,976   7,894,278 
Retained Deficit  (10,903,811)  (8,715,808)
Cumulative Foreign Currency Translation Adjustment  169,437   4,225 
Total Stockholders’ Deficit  (2,628,171)  (806,215)
Non-controlling Interest  (856,191)  (75,959)
Stockholders’ Deficit Allocated to Plandaí Biotechnology  (3,484,362)  (882,174)
Total Liabilities and Stockholders' Deficit  8,835,482   6,057,007 
         
         

The accompanying notes are an integral part of these financial statements.





 PLANDAI BIOTECHNOLOGY, INC.
 CONSOLIDATED STATEMENTS OF OPERATIONS
        
        
  Years Ended
   June 30,
   2013  2012
 Revenues  $              359,143   $                 74,452
   Cost of Goods 963,209                               -   
 Gross Profit                 (604,066)                      74,452
       
 Expenses:     
   Salaries & Wages 764,230                2,301,534
   Rent 477,766                      64,053
   Utilities 15,003                      35,745
   Insurance 71,601   -
   Professional Services 231,074                1,135,056
   Depreciation 135,039   -
   General & Administrative 358,986                    347,839
 Total Expenses 2,053,698                3,884,226
       
 Operating Income (Loss)              (2,657,764)              (3,809,774)
       
 Other Income/(Expense):      
 Interest Expense                 (265,245)                    (28,586)
 Derivative Interest                    (45,227)                               -
 Total Other Income/(Expense):                  (310,472)                    (28,586)
        
 Net Income (Loss)              (2,968,236)              (3,838,360)
        
Income (Loss) Allocated to Non-controlling Interest                  780,231                      61,188
        
 Net Loss, Adjusted              (2,188,005)              (3,777,172)
        
 Other Comprehensive Income (loss):      
Foreign Currency Translation Adjustment  165,212                        4,225
 Comprehensive Income (Loss)   $         (2,022,793)   $         (3,772,947)
        
 Basic & diluted loss per share   $                   (0.01)   $                  (0.02)
 Weighted Avg. Shares Outstanding  110,895,300  96,323,533
        
 The accompanying notes are an integral part of these financial statements.

F-4


PLANDAI BIOTECHNOLOGY, INC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
                 
                            Cumulative     
                Stock            Currency     
    Shares    Common    Additional    Subscription    Accumulated    Non    Translation    Total 
    Outstanding    Stock    Paid-in Capital    Payable    Deficit    Controlling
Interest
    Adjustment    Equity 
Balance as of June 30, 2011  76,000,000  $7,600  $4,195,610  $—    $(4,938,636) $(14,771) $—    $(750,197)
                                 
Deemed capital contribution from                                
forgiveness of related party debt  —     —     139,458   —     —     —     —     139,458 
Stock issued on share exchange                                
November 17, 2011  25,415,300   2,542   (2,542)  —     —     —     —     —   
Foreign currency translation adjustment  —     —     —     —     —     —     4,225   4,225 
Shares issued as loan origination fee  1,500,000   150   584,850   —     —     —     —     585,000 
Shares issued for services  7,980,000   798   2,976,902   —     —     —     —     2,977,700 
Net loss for year ended June 30, 2012  —     —     —     —     (3,777,172)  (61,188)  —     (3,838,360)
Balance as of June 30, 2012  110,895,300   11,090   7,894,278   —     (8,715,808)  (75,959)  4,225   (882,174)
                                 
Forgiveness of shareholder loan interest  —     —     3,736   —     —     —     —     3,736 
Stock issued for cash  525,460   53   140,447   —     —     —     —     140,500 
Cancelled shares  (5,150,000)  (515)  (204,485)  —     —     —     —     (205,000)
Stock issuable to officers and directors                                
for services  —     —     —     261,600   —     —     —     261,600 
Foreign currency translation adjustment  —     —     —     —     —     —     165,212   165,212 
Net loss for year ended June 30, 2013  —     —     —     —     (2,188,005)  (780,231)  —     (2,968,236)
Balance as of June 30, 2013  106,270,760  $10,628  $7,833,976  $261,600  $(10,903,813) $(856,191) $169,437   (3,484,362)

DIAMOND RANCH FOODS, LTD.

CONSOLIDATED INCOME STATEMENTS

 

 

 

 

 

 

 

 

 

 

 

 

March 31,

 

 

          2011                                        2010

 

 

 

 

 

 

 

 

 

 

Revenues, net

$

7,162,889

$

8,548,888

Cost of Goods Sold

 

5,273,182

 

7,007,977

 

 

 

 

 

Gross Profit

$

1,889,707

$

1,540,911

 

 

 

 

 

Expenses:

 

 

 

 

Payroll

 

912,066

 

703,586

Factoring Fee

 

21,573

 

81,610

Rent Expense

 

160,338

 

223,523

Depreciation & Amortization

 

22,587

 

18,398

General & Admin.

 

804,195

 

797,355

Sales Commission

 

453,485

 

406,599

 

 

 

 

 

Total Expenses

$

2,374,244

$

2,231,071

 

 

 

 

 

Net (Loss) from Operations

 

(484,537)

 

(690,160)

 

 

 

 

 

Other Income (Expense):

 

 

 

 

Interest Income and Other

 

42,943

 

10

Bad Debt Expense

 

(21,088)

 

-

Debt Forgiveness

 

-

 

55,000

Realized Loss on Securities

 

-

 

(102,122)

Interest and Financing Expense

 

(85,050)

 

(92,551)

 

 

 

 

 

Net Income (Loss)

$

(547,732)

$

(829,823)

 

 

 

 

 

Basic & Diluted (Loss) Per Share

$

(0.05)

$

(0.08)

 

 

 

 

 

Weighted Avg. Shares Outstanding

 

11,342,697

 

10,802,800









The accompanying notes are an integral part of these financial statements.

PLANDAI BIOTECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
     Years Ended
     June 30,
     2013 2012
CASH FLOWS FROM OPERATING ACTIVITIES:  
Net loss     $  (2,188,005)  $  (3,777,172)
Adjustments to reconcile net loss to net cash    
      provided by operating activities:    
Depreciation              135,039                         -
Loss allocated to non-controlling owners          (780,232)            (61,118)
Stock issued for services             (80,000)         2,977,700
Common stock issuable             261,600                         -
Foreign currency translation adjustment            165,212                4,225
Forgiveness of interest                  3,736                         -
Derivative liability                45,227                         -
Capitalized lease obligation             395,742              64,053
Prepaid expenses              (10,647)            (22,068)
Accounts receivable              (13,638)                         -
Inventory                 (6,439)                         -
Other assets            (358,861)                         -
Accounts payable and accrued expenses            451,684              27,347
Related party payables              137,882            (37,482)
Accrued interest                64,965              28,219
Net cash used in operating activities       (1,776,735)          (796,296)
        
CASH FLOWS FROM INVESTING ACTIVITIES:   
Deposits on equipment                           -       (5,813,990)
Loans from related parties             (26,385)            402,903
Purchase of fixed assets        (2,030,122)          (215,837)
Net cash used in investing activities       (2,056,507)       (5,626,924)
        
CASH FLOWS FROM FINANCING ACTIVITIES:   
Proceeds from long-term debt, net of discount         3,944,712         5,813,990
Borrowings under convertible note             103,500  
Net borrowings under credit line             138,335            614,168
Proceeds from the sale of common stock            140,500                         -
Net cash provided by financing activities         4,327,047         6,428,158
Net (decrease) increase in cash and cash equivalents           493,805                4,938
Cash and cash equivalents at beginning of year                5,112                    174
Cash and cash equivalents at end of year  $        498,917  $            5,112

 

The accompanying notes are an integral part of these financial statements.

 

         






DIAMOND RANCH FOODS, LTD.
CONSOLIDATED STATEMENTS OF EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additional

 

Retained

 

 

 

Preferred Stock

 

Common Stock

 

Paid-in

 

Earnings

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Capital

 

(Deficit)

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance March 31, 2009

5,284

 

1

 

10,777,800

 

1,078

 

4,459,368

 

(8,157,075)

 

(3,696,628)

Shares issued for services

-

 

-

 

512,500

 

51

 

25,574

 

-

 

25,625

Net loss

 

 

 

 

 

 

 

 

(829,823)

(829,823)

 

 

 

 

 

 

 

 

 

 

 

Balance March 31, 2010

5,284

 

1

 

11,290,300

 

1,129

 

4,484,942

 

(8,986,898)

 

(4,500,826)

Forgiveness of related party debt

-

 

-

 

-

 

-

 

(109,827)

 

-

 

(109,827)

Stock issued for cash

-

 

-

 

125,000

 

13

 

99,987

 

-

 

100,000

Net loss

-

 

-

 

-

 

-

 

-

 

(547,732)

 

(547,732)

Balance March 31, 2011


5,284

 

1

 

11,415,300

 

1,142

 

4,475,102

 

(9,534,630)

 

(5,058,385)




 


The accompanying notes are an integral part of these financial statements.




F-6


DIAMOND RANCH FOODS, LTD.

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

 

 

 

 

 

 

 

 

For the year ended

March 31,

 

2011

 

2010

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

Net Loss

(547,732)

 

$ (829,823)

Adjustments to reconcile net loss to net cash

 

 

 

      provided by operating activities:

 

 

 

Depreciation and Amortization

22,587

 

18,398

Forgiveness of debt

-

 

(55,000)

Loss on sale of available for sale securities

-

 

102,122

Decrease (Increase) in Inventory

136,255

 

(96,453)

(Increase) Decrease in Accounts Receivable

608,998

 

(548,993)

(Increase) Decrease in Other Current Assets

519

 

14,754

Stock Issued in Exchange for Services

-

 

25,625

(Decrease) Increase in Accounts Payable and  Accrued Expenses

(60,197)

 

1,103,414

Increase in Related Party Payable

61,347

 

-

Interest Payable

85,030

 

89,859

Net Cash Provided by (Used in) Operating Activities

306,807

 

(176,097)

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

Proceeds from sale of available for sale securities

22,000

 

320,178

Purchase of available for sale securities

-

 

(381,900)

Acquisition of fixed assets

(12,334)

 

(277,708)

Net Cash Used in Investing Activities

9,666

 

(339,430)

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

Bank overdraft

(48,660)

 

48,660

Payments on Capital Lease Obligation

-

 

(2,849)

Factoring Payable

(379,465)

 

62,684

Shareholder Loans

114,055

 

442,399

Payments on Notes Payable

-

 

(35,000)

Sale of Common Stock

100,000

 

--

Contribution of Capital from Stockholders

(109,827)

 

--

Net Cash Provided by (Used in) Financing Activities

(323,897)

 

515,894

 

 

 

 

Net (Decrease) Increase in Cash and Cash Equivalents

(7,424)

 

367

Cash and Cash Equivalents at Beginning of Period

(7,424)

 

7,057

 

 

 

 

Cash and Cash Equivalents at End of Period

-

 

7,424

 

 

 

 

 

 

 

 

SUPPLEMENTAL CASH FLOW INFORMATION:

 

 

 

Cash paid during the year for:

 

 

 

Interest

$ --

 

$ --

Income taxes

$ --

 

$ --

 

 

 

 

SUPPLEMENTAL DISCLOSURE OF NO-CASH INVESTING AND FINANCING ACTIVITIES:

 

 

 

Stock issued for services

$ --

 

$25,625

 

 

 

 


The accompanying notes are an integral part of these financial statements.







PLANDAI BIOTECHNOLOGY, INC.

DIAMOND RANCH FOODS, LTD
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED MARCH 31, 2011JUNE 30, 2013 AND MARCH 31, 20102012


NOTE 1 - NATURE OF OPERATIONS AND GOING CONCERN


The Company'sPlandaíBiotechnology, Inc.’s (the “Company” or “Plandaí”) consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustment relating to recoverability and classification of recorded amounts of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

The Company incurred an operating loss of $547,732 for the year ended March 31, 2011 and has a negative stockholders equity of $5,058,385 and has a negative working capital of $5,329,153.

The Company's continued existence is dependent upon its ability to continue to execute its operating plan and to obtain additional debt or equity financing. There can be no assurance the necessary debt or equity financing will be available, or will be available on terms acceptable to the Company.

Management plans include acquiring additional meat processing

Plandaíand distribution operationsits subsidiaries focus on the production of proprietary botanical extracts for the nutriceutical and obtaining additional financingpharmaceutical industries. The company grows much of the live plant material used in its products on a 3,000 hectare estate it operates under a 49-year notarial lease in the Mpumalanga region of South Africa. Plandaí uses a patented extraction process that is designed to fund paymentyield highly bioavailable products of obligationspharmaceutical-grade purity. The first product to be brought to market is Phytofare™ Catechin Complex, a green-tea derived extract that has multiple potential wellness applications. The company’s principle holdings consist of land, farms and to provide working capital for operations and to finance future growth.infrastructure in South Africa. The Company is actively pursuing alternativeadditional financing and has had discussions with various third parties, although no firm commitments have been obtained. In the interim, shareholders of the Company have committed to meeting its operating expenses. Management believes these efforts will generate sufficient cash flows from future operations to pay the Company's obligations and realize other assets.positive cash flow. There is no assurance any of these transactions will occur.

Organization

On November 17, 2011, the Company, through its wholly-owned subsidiary, Plandaí Biotechnologies, Inc., consummated a share exchange with Global Energy Solutions, Inc. (“GES”), an Irish corporation. Under the terms of the share exchange, GES received 76,000,000 shares of the Company’s common stock that had been previously issued to Plandaí in exchange for 100% of the issued and Basisoutstanding capital of Presentation

GES. Concurrent with the share exchange, the Company sold its subsidiary, Diamond Ranch, Ltd., together with its wholly-owned subsidiary, Executive Seafood, Inc., to a former officer and director of Diamond Ranch. Under the terms of the sale, the purchasers assumed all associated debt as consideration. During the three months ended September 30, 2011 and through the date of the share exchange, Diamond Ranch, Ltd. and Executive Seafood, Inc. had negligible revenues from operations, generated a net loss of $126,000, and as of September 30, 2011, liabilities exceeded assets by over $5,000,000. The Company was incorporated under the laws of the State of Florida on November 30, 1942 under the name Jerry's Inc. The Company ceased all operating activities during the period from January 1, 1998 to March 8, 2004 and was considered dormant. On March 8, 2004 the Company changed its domicile to the State of Nevada. On March 30, 2004, the companysubsequently changed its name to Diamond Ranch Foods, Ltd.Plandaí Biotechnology, Inc. and dissolved GES.

On May 1, 2004,

For accounting purposes, the shareholders of the Diamond Ranch Foods, Ltd. (formerly Jerry's Inc.) completed a stock purchase agreement with MBC Foods, Inc., a Nevada corporation. The merger was accounted forshare exchange has been treated as a reverse merger since the acquired entity now forms the basis for operations and the transaction resulted in a change in control, with MBC Foods, Inc. being treated as the acquiring entityacquired company electing to become the successor issuer for financial reporting purposes. In connection with this merger,The accompanying financial statements have been prepared to reflect the assets, liabilities and operations of Plandaí Biotechnology, Inc. exclusive of Diamond Ranch Foods Ltd. (formerly Jerry's Inc.)since the acquisition and sale were executed simultaneously. For equity purposes, the shares issued 31,607,650to acquire GES (76,000,000 shares) have been shown to be issued and outstanding since inception, with the previous balance outstanding (25,415,300 shares Common) treated as a new issuance as of common stockthe date of the share exchange. The additional paid-in capital and retained deficit shown are those of Plandaí and its subsidiary operations.

In management’s opinion, all adjustments necessary for a fair statement of the results for the acquisitionpresented periods have been made.  All adjustments made were of MBC Foods, Inc. which was recorded as a reverse merger and shown on the Statementnormal recurring nature.

Basis of Stockholders Equity as a net issuance of 25,692,501 shares.Presentation

For financial reporting purposes, MBC Foods, Inc. was considered the new reporting entity.

Nature of Business

The Company is a meat and seafood processing and distribution company now locatedCompany’s financial statements have been prepared in accordance with accounting principles generally accepted in the Hunts Point Coop Market, Bronx, NY. The Companies operations consistUnited States of packing, processing, labeling, and distributing products to a customer base, including, but not limited to; in-home food service businesses, retailers, hotels, restaurants, and institutions, deli and catering operators, and industry suppliers.America (“U.S. GAAP”).


NOTE 2 - SUMMARY OF ACCOUNTING POLICIES

This summary of accounting policies for Diamond Ranch Foods, Ltd.Plandaí Biotechnology, Inc. and its wholly-owned subsidiary, Executive Seafood, Inc.,subsidiaries, is presented to assist in understanding the Company's financial statements. The accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the financial statements.

Reverse Stock Split

On September 19, 2008 the Company affected a 2,000 to 1, reverse stock split and changed its symbol to DRFO. The financials have been restated for all periods presented to reflect this reverse stock split.

F-7

Use of Estimates

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the financial statements, management is required to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the balance sheet and statement of operations for the year then ended. Actual results may differ from these estimates. Estimates are used when accounting for allowance for bad debts, collect ability of accounts receivable, amounts due to service providers, depreciation and litigation contingencies, among others.




Cash and Cash Equivalents

For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.

Revenue recognition

The Company presently derives its revenue from the sale of meattimber and seafoodagricultural products produced on its farm and the revenuetea estate holdings in South Africa. Revenue is recognized when the product is delivered to the customer. Once production of the Company’s Phytofare™ botanical extracts commence in 2014, revenues will be recognized when product is shipped.

Concentration of Credit Risk

The Company has no significant off-balance sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.

Fixed Assets

FixedProperty and equipment

Property and equipment are stated at cost less accumulated depreciation and amortization.  The Company provides for depreciation and amortization using the straight-line method over the estimated useful lives of the related assets, which range from three to five years.Maintenance and repair costs are recorded at cost. Majorexpensed as they are incurred while renewals and improvements which extend the useful life of an asset are capitalized, while maintenancecapitalized.  At the time of retirement or disposal of property and repairsequipment, the cost and related accumulated depreciation and amortization are expensed when incurred. Asremoved from the accounts and any resulting gain or loss is reflected in the results of March 31, 2011 depreciation is computed as follows:operations.


 

 

 

 

 

 

 

 

 

 

Accumulated

 

 

Cost

Method

Life

Depreciation

Net

Equipment

$ 347,900

Straight Line

3-5 Years

$ 341,505

$ 6,395

Building and land

264,373

Straight Line

20 Years

-

264,373

 

$ 612,273

 

 

$ 341,505

$ 270,768



Total depreciation expense for the year ended March 31, 2011 and 2010 was $22,587 and $18,399, respectively.


Impairment of Long-Lived Assets


In accordance with ASC Topic 360, formerly SFAS No. 144,Accounting for the Impairment or Disposal of Long-Lived Assets, the Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable. The assessment of possible impairment is based on the Company’s ability to recover the carrying value of its asset based on estimates of its undiscounted future cash flows. If these estimated future cash flows are less than the carrying value of the asset, an impairment charge is recognized for the difference between the asset's estimated fair value and its carrying value. As of the date of these financial statements, the Company is not aware of any items or events that would cause it to adjust the recorded value of its long-lived assets for impairment.


Earnings per Share

Basic gain or loss per share has been computed by dividing the loss for the period applicable to the common stockholders by the weighted average number of common shares outstanding during the years. There are no dilutive outstanding common stock equivalents as of March 31, 2011June 30, 2013 and 2010.2012.

Income Taxes


The Company accounts for income taxes under ASC Topic 740, formerly SFAS No. 109,Accounting for Income Taxes, as clarified by ASC Topic 740, formerly FASB Interpretation No. 48,Accounting for Uncertainty in Income Taxes, (“FIN No. 48”). Deferred tax assets and liabilities are determined based upon differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized.


The Company adopted the provisions of ASC Topic 740, formerly FIN No. 48 on January 1, 2007. Previously, the Company had accounted for tax contingencies in accordance with Statement of Financial Accounting Standards No. 5,Accounting for

F-8

Contingencies. As required by ASC Topic 450, formerly FIN No. 48, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. At the adoption date, the Company applied ASC Topic 740, formerly FIN No. 48 to all tax positions for which the statute of limitations remained open. As a result of the implementation of ASC Topic 740, formerly FIN No. 48, the Company did not recognize any change in the liability for unrecognized tax benefits.




The Company is subject to income taxes in the U.S. federal jurisdiction the Stateand that of New York and New York City.South Africa. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before April 1, 2007.


The Company is not currently under examination by any federal or state jurisdiction.


The Company’s policy is to record tax-related interest and penalties as a component of operating expenses.


InventoryOff-Balance Sheet Arrangements

Inventory consists

We have no off-balance sheet arrangements.

Emerging Growth Company

We qualify as an “emerging growth company” under the 2012 JOBS Act. Section 107 of finished meat and seafood products, and is valued at the lowerJOBS Act provides that an emerging growth company can take advantage of cost, determined on the first-in, first-out basis (FIFO),extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or market value.revised accounting standards. As an emerging growth company, we can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period.


Fair Value of Financial Instruments


Fair value of certain of the Company’s financial instruments including cash and cash equivalents, accounts receivable, account payable, accrued expenses, notes payables, and other accrued liabilities approximate cost because of their short maturities. The Company measures and reports fair value in accordance with ASC 820, “Fair Value Measurements and Disclosure” defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments.


Fair value, as defined in ASC 820, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset should reflect its highest and best use by market participants, principal (or most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the risk of nonperformance, which includes, among other things, the Company’s credit risk.


Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability, and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting measurement as follows:


Level 1


Quoted – Inputs are quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities; Theliabilities the Company values it’s available for sale securities using Level 1.has the ability to access.


Level 2


Quoted prices for similar assets or liabilities in active markets; - Valuations based on quoted prices for identical or similar assets or liabilities in markets that are not active;active or for which all significant inputs other than quoted prices that are observable, for the asseteither directly or liability; andindirectly.

Level 3 -Valuations based on inputs that are derived principally from or corroborated by observable market data for substantially the full term of the assets or liabilities;unobservable and


Level 3


Unobservable inputs for the asset or liability that are supported by little or no market activity and that are significant to the overall fair values.value measurement.


Fair value measurements are required to be disclosed by the Level within the fair value hierarchy in which the fair value measurements in their entirety fall. Fair value measurements using significant unobservable inputs (in Level 3 measurements) are subject to expanded disclosure requirements including a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and

F-9

unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earning are reported in the statement of income.

 





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Marketable Securities

Marketable securities consist of publicly-traded securities that are classified as available-for-sale securities. On the balance sheet, available-for-sale securities are classified as current assets. Available-for-sale securities are recorded at fair market value based upon quoted market prices. Unrealized gains and losses, net of related income taxes, are recorded in accumulated other comprehensive income (loss) in stockholders’ equity (deficit).

Realized gains and losses from the sale of available-for-sale securities are recorded in other income (expense) and are computed using the specific identification method.  During the year ended March 31, 2011, the Company sold available-for-sale securities for proceeds of $22,000 which was the acquisition price, resulting in no realized gain or loss.  The Company had no marketable securities as of March 31, 2011.

The Company’s policy for assessing recoverability of its available-for-sale securities is to record a charge against net earnings when the Company determines that a decline in the fair value of a security drops below the cost basis and judges that decline to be other-than-temporary.

Advertising

Advertising costs are expensed as incurred.

Recent

Principles of Consolidation

PlandaíBiotechnology, Inc. and its subsidiaries, are encompassed in the following entities, which have been consolidated in the accompanying financial statements:

Global Energy Solutions, Ltd.100% owned by Plandaí Biotechnology, Inc.
Dunn Roman Holdings—Africa, Ltd82% owned by Plandaí Biotechnology, Inc.
Breakwood Trading 22 (Pty) Ltd.74% owned by Dunn Roman Holdings-Africa
Green Gold Biotechnologies (Pty) Ltd.74% owned by Dunn Roman Holdings-Africa

During the year ended June 30, 2013, the Company determined that the entity, Global Energy Solutions, was unnecessary to operations and decided to dissolve that corporation, resulting in the stock of Dunn Roman Holdings-Africa being held directly by Plandaí. All liabilities were either satisfied or forgiven and all bank accounts closed. There were no operations in Global Energy Solutions during the periods presented. Global Energy Solutions was officially dissolved during the year ended June 30, 2013.

All intercompany balances have been eliminated in consolidation.

Straight-lining of Lease Obligation

Plandaí’s subsidiaries have two long-term, material leases which either have escalating terms or included several months of “free” rent, including the 49-year notarial lease for the Senteeko Tea Estate. In accordance with US Generally Accepted Accounting Pronouncements


Recent accounting pronouncements thatPrinciples, the Company has adopted or that will be required to adopt incalculated a straight-line monthly cost on the future are summarized below.leases and recorded the corresponding difference between the amount actually paid and the amount calculated as a Capitalized Lease Obligation. As of June 30, 2013, the amount of this deferred liability was $988,381.


Recent Accounting Pronouncements

On September 30, 2009, the

The Company has adopted updates issued by the Financial Accounting Standards Board (FASB) to the authoritative hierarchy of GAAP. These changes establish(“FASB”) Accounting Standards Codification (“ASC”) 105-10,Generally Accepted Accounting Principles – Overall (“ASC 105-10”), which was formerly known as SFAS 168. ASC 105-10 establishes the FASB Accounting Standards Codification TM (ASC)(the “Codification”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with U.S. GAAP. Rules and interpretive releases of the Securities and Exchange Commission (“SEC”(the "SEC") under authority of federal securities laws are also sources of authoritative U.S. GAAP for SEC registrants.  The FASB will no longer issue new standardsAll guidance contained in the formCodification carries an equal level of Statements, FASB Staffauthority.  The Codification superseded all existing non-SEC accounting and reporting standards and all other non-grandfathered, non-SEC accounting literature not included in the Positions or Emerging Issues Task Force Abstracts; instead the FASBAbstracts.  Instead, it will issue Accounting Standards Updates. Accounting Standards Updates (“ASUs”). The FASB will not beconsider ASUs as authoritative in their own right as theyright.  ASUs will serve only serve to update the Codification. These changesCodification, provide background information about the guidance and provide the Codification itself do not change GAAP. Other than the manner in which new accounting guidance is referenced, the adoptionbasis of these changes had no impactconclusions on the Consolidated Financial Statements.change(s) in the Codification. References made to FASB guidance throughout this document have been updated for the Codification.


In December 2010,May 2011, the FASB (FinancialFinancial Accounting Standards Board)Board (FASB) issued Accountingauthoritative guidance regardingFair Value Measurement: Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, which resulted in common requirements for measuring fair value and for disclosing information about fair value measurement under both U.S. GAAP and International Financial Reporting Standards Update 2010-29 (ASU 2010-29)(IFRS), Business Combinations (Topic 805) – Disclosureincluding a consistent definition of Supplementary Pro Forma Information for Business Combinations. This Accounting Standards Update requires a public entity to disclose pro forma information for business combinations that occurredthe term "fair value." The amendments were effective beginning in the current reporting period. The disclosures include pro forma revenuefirst quarter of 2012, and earnings of the combined entity for the current reporting period as though the acquisition date for all business combinations that occurred during the year had been as of the beginning of the annual reporting period. If comparative financial statements are presented, the pro forma revenue and earnings of the combined entity for the comparable prior reporting period should be reported as though the acquisition date for all business combinations that occurred during the current year had been as of the beginning of the comparable prior annual reporting period. The amendments in this Update affect any public entity as defined by Topic 805 that enters into business combinations that are material on an individual or aggregate basis. The amendments in this Update are effective prospectively for business combinations for which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after December 15, 2010.  Early adoption is permitted. The Company doesdid not expect the provisions of ASU 2010-29 to have a material effect on itsour consolidated financial position, results of operations or cash flows.statements.


In August 2009,June 2011, the FASB issued ASU 2009-05, which amends ASC 820 to provide further guidance on measuring the fair value of a liability. It primarily does three things: 1) sets forth the types of valuation techniques to be used to value a liability when a quoted price in an active market for the identical liability is not available, 2) clarifies that when estimating the fair value of a liability, a reporting entity is not required to include a separate input or adjustment to other inputs relating to the existence of a restriction that prevents the transfer of the liability, and 3) clarifies that both a quoted price in an active market for the identical liability at the measurement date and the quoted price for the identical liability when traded as an asset in an active market, when no adjustments to the quoted price of the asset are required, are Level 1 fair value measurements. The Company’s adoption of ASU 2009-05 did not have a material impact on its financial position, results of operations or liquidity.






In June 2009, the FASB issued guidance now codified as ASC Topic 105, “Generally Accepted Accounting Principles” (“ASC 105”), which establishes the FASB Accounting Standards Codification asUpdate 2011-05,Presentation of Comprehensive Income. This update amended the sourceprovisions of GAAP to be applied to nongovernmental agencies.FASB ASC 105 explicitly recognizes rules220-10 by eliminating the option of reporting other comprehensive income in the statement of changes in stockholders’ equity. Companies will have the option of presenting net income and interpretive releasesother comprehensive income in a single, continuous statement of the SEC under authoritycomprehensive income or presenting two separate but consecutive statements of federal securities laws as authoritative GAAP for SEC registrants. ASC 105 becamenet income and comprehensive income. The new presentation requirements are effective for interim or annual periods ending after September 15, 2009. ASC 105 does not have a material impact on the Company’s consolidated financial statements presented hereby.


In January 2010, the FASB issued Update No. 2010-6, “Improving Disclosures About Fair Value Measurements” (“ASU 2010-6”), which requires reporting entities to make new disclosures about recurring or nonrecurring fair-value measurements including significant transfers into and out of Level 1 and Level 2 fair-value measurements and information on purchases, sales, issuances, and settlements on a gross basis in the reconciliation of Level 3 fair-value measurements. ASU 2010-6 is effective for annual reporting periods beginning after December 15, 2009, except for Level 3 reconciliation disclosures, which are effective for annual periods beginning after December 15, 2010.2011. The Company is currently evaluating the effectadoption of this update on its financial position, results of operations and liquidity.


In October 2009, the FASB issued authoritative guidance on revenue recognition that became effective for the Company beginning July 1, 2010, with earlier adoption permitted. Under the new guidance on arrangements that include software elements, tangible products that have software components that are essentialstandard is not anticipated to the functionality of the tangible product will no longer be within the scope of the software revenue recognition guidance, and software-enabled products will now be subject to other relevant revenue recognition guidance. Adoption of this new guidance did not have a material impact on our financial statements.

F-10


In August 2010,September 2011, the FASB issued Accounting Standards Update 2010-22 (ASU 2010-22), 2011-08,AccountingTesting Goodwill for Various Topics -- Technical Corrections to SEC Paragraphs - An announcement made by the staff of the U.S. Securities and Exchange CommissionImpairment. This Accounting Standards Update amends various SEC paragraphs based on external comments received and the issuance of SAB 112, which amends or rescinds portions of certain SAB topics.  The Company does not expectupdate amended the provisions of ASU 2010-22FASB ASC 350-20-35 by allowing an entity the option to havemake a material effect on its financial position, results of operations or cash flows.


In August 2010, the FASB issued Accounting Standards Update 2010-21 (ASU 2010-21), Accounting for Technical Amendments to Various SEC Rules and Schedules: Amendments to SEC Paragraphs Pursuant to Release No. 33-9026: Technical Amendments to Rules, Forms, Schedules and Codification of Financial Reporting Policies. The Company does not expect the provisions of ASU 2010-21 to have a material effect on its financial position, results of operations or cash flows.

In July 2010, the FASB issued Accounting Standards Update 2010-20 (ASU 2010-20), Receivables (Topic 310): Disclosuresqualitative evaluation about the Credit Qualitylikelihood of Financing Receivables andgoodwill impairment to determine whether it should calculate the Allowance for Credit Losses. fair value of a reporting unit. The amendments in this Update are to provide financial statement users with greater transparency about an entity’s allowance for credit losses and the credit quality of its financing receivables. The disclosures about activity that occurs during the reporting period are effective for annual and interim and annual reporting periodsgoodwill impairment tests performed for fiscal years beginning on or after December 15, 2010.  The Company does not expect the provisions of ASU 2010-20 to have a material effect on its financial position, results of operations or cash flows.


In April 2010, the FASB issued Accounting Standards Update 2010-17 (ASU 2010-17), Revenue Recognition – Milestone Method (Topic 605).  ASU 2010-17 provides guidance on applying the milestone method of revenue recognition in arrangements with research and development activities. The amendments in this Update are effective on a prospective basis for milestones achieved in fiscal years, and interim periods within those years, beginning on or after June 15, 2010.  The Company’s adoption of the provisions of ASU 2010-17 did not have a material impact on its revenue recognition.


In March 2010, the FASB issued Accounting Standards Update 2010-11 (ASU 2010-11), Derivatives and Hedging (Topic 815): Scope Exception Related to Embedded Credit Derivatives. The amendments in this Update are effective for each reporting entity at the beginning of its first fiscal quarter beginning after June 15, 2010.2011. Early adoption is permitted, atincluding for annual and interim goodwill impairment tests performed as of a date before September 15, 2011, if an entity’s financial statements for the beginning of each entity’s first fiscal quarter beginning after issuancemost recent annual or interim period have not yet been issued. The adoption of this Update. The Company’s adoption of the provisions of ASU 2010-11 did not have a material effect on its financial position, results of operations or cash flows.

In February 2010, the FASB Accounting Standards Update 2010-10 (ASU 2010-10), Consolidation (Topic 810): Amendments for Certain Investment Funds. The amendments in this Update are effective as of the beginning of a reporting entity’s first annual period that begins after November 15, 2009 and for interim periods within that first reporting period. Early applicationstandard is not permitted. The Company’s adoption of provisions of ASU 2010-10 did not have a material effect on its financial position, results of operations or cash flows.


In February 2010, the FASB issued ASU No. 2010-09 Subsequent Events (ASC Topic 855) - Amendments to Certain Recognition and Disclosure Requirements (ASU 2010-09).  ASU No. 2010-09 requires an entity that is an SEC filer to evaluate subsequent events through the date that the financial statements are issued and removes the requirement for an SEC filer to disclose a date, in both issued and revised financial statements, through which the filer had evaluated subsequent events. The adoption did not have an impact on the Company’s financial position, results of operations or cash flows.





Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the AICPA, and the SEC did not or are not believed by managementanticipated to have a material impact on the Company's present or futureour financial statements.


The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its results of operation, financial position or cash flows.  Based on that review, the Company believes that none of these pronouncements will have a significant effect on its consolidated financial statements.

NOTE 3-MARKETABLE SECURITIES3 – SEGMENT INFORMATION

Geographical Locations

The following information summarizes the financial information regarding Plandaí Biotechnology Inc. and its three South African subsidiaries at June 30, 2013:

 South AfricaUnited States
Assets$          8,829,559$                       5,923
Liabilities            11,678,121               561,723
Revenues               359,143                          -
Expenses $         1,387,660 $               312,438

NOTE 4 –LOANS FROM RELATED PARTIES

As of June 30, 2013, the Company has outstanding loans to various related parties in the amount of $501,518. These loans were provided for short-term working capital purposes, bear interest at rates between 8-10%, and mature on January 1, 2014.

NOTE 5 - LINE OF CREDIT

During the year ended March 31, 2011,June 30, 2012, the company entered into a line of credit agreement for $500,000 which was later increased to $1,000,000. The line of credit matures on January 5, 2014 and bears interest at the rate of ten percent (10%) per annum. As of June 30, 2013, the balance drawn down on the credit line was $752,503 and accrued interest was $93,184. The company is in negotiations to convert the balance outstanding plus accrued interest into common stock and anticipates consummating a resolution to this debt prior to the due date.

NOTE 6 – DEBENTURE PAYABLE

In May 2013, the company issued an 8% interest rate convertible debenture in the amount of $103,500 which becomes due and payable in February 2014. The debenture is convertible into common stock of the company at a discount of 42% off the market price of the company’s common stock six months after issuance (November 2013). The company has the right to pre-pay the debenture prior to conversion and has made arrangements to do so. The Company recorded a derivative liability of $45,227 which represents the estimated value of the shares over and above the amount of debenture that would be issued on conversion.

NOTE 7 – LONG-TERM DEBT

In June 2012, the Company, liquidated 2,000,000through the majority-owned subsidiaries of Dunn Roman Holdings, Inc., executed final loan documents on a 100 million Rand (approx. $13 million USD) financing with the Land and Agriculture Bank of South Africa. The total loan is comprised of multiple agreements totaling, between Green Gold Biotechnologies (Pty) Ltd. and Breakwood Trading 22(Pty) Ltd., 100 million rand. The loans all bear interest at the rate of prime plus 0.5% per annum and are all due in seven years. In addition, the loans have a 25-month “holiday” in which no payments or interest are due until 25 months after the first drawn down of funds. The loans are collateralized by the assets and operations, including the Senteeko lease, agriculture production and receivables of Dunn Roman Holdings, which is the African operating arm of Plandaí. In addition, Dunn Roman Holdings was required to grant a 15% profit share agreement to the Land Bank which extends through the duration of the loan agreements (7 years unless pre-paid). The profit share agreement extends only to profits generated by Dunn Roman Holdings exclusive of operations of Plandaí and outside of South Africa. In connection with this financing arrangement, the Land and Agriculture Bank of South Africa (the Bank) required the Company to maintain the following loan covenants: debt to equity of 1.5:1, interest coverage ratio of 1.5:1, and security coverage ratio of 1:1.  However, the Company consistantly notified the Bank of this situation. The Company has requested written documentation as to the Bank’s intention. The Bank has not provided this documentation in writing, however they have given verbal approval. In addition they have not started any action against the Company.

As of June 30, 2013, a total of $7,740,800 had been drawn down against the loans by Green Gold Biotechnologies (Pty) Ltd., which was used to purchase fixed assets that will be employed in South Africa to produce the company’s botanical extracts. Additionally, $2,017,903 had been drawn down against the loans by Breakwood Trading22 (Pty) Ltd. to fund the rehabilitation of the Senteeko Tea Estate, including the repair of roads, bridges, and onsite worker housing, and the pruning, weeding and fertilizing of plantation.

During the year ended June 30, 2012, the Company issued 1,500,000 shares of restricted common stock to three individuals in exchange for shares of an unaffiliated companyDunn Roman Holdings stock which had been previously issued. The acquired at $0.011 cents per share.   Total proceeds on liquidationDunn Roman shares were $22,000, resultingthen provided to thirds parties in no gain or loss onorder to comply with the sale.BEE provisions associated with the loan from the Land Bank of South Africa, which required that 15% of Dunn Roman be black owned. The Company had no marketable securitieshas therefore determined to treat the value of the shares issued to acquire the Dunn Roman stock ($585,000) as a cost of March 31, 2011.securing the financing and recorded as a loan discount which will be amortized over the life of the loan (7 years) once payment of the loan commences in July 2014.

NOTE 4 - INCOME TAXES

As of March 31, 2011,June 30, 2013, the Company had a net operating loss carryforward for income tax reporting purposes of approximately $9,500,000 which can be offset against future taxable income through 2031. Current tax laws limitloan balance was:

Loan Principle$9,758,702
Less: Discount585,000
Net Loan per Books$9,173,702

NOTE 8 – CURRENCY ADJUSTMENT

The Company’s principle operations are located in South Africa and the amount of loss available to be offset against future taxable income when a substantial change in ownership occurs. Therefore,primary currency used is the amount available to offset future taxable income may be limited. No tax benefit has been reported inSouth African Rand. Accordingly, the financial statements becauseare first prepared in using Rand and then converted to US Dollars for reporting purposes, with the average conversion rate being used for income statement purposes and the closing exchange rate as of June 30, 2012 applied to the balance sheet. Differences resulting from the fluctuation in the exchange rate are recorded as an offset to equity in the balance sheet. As of June 30, 2013, the cumulative currency translation adjustments were $169,437.

NOTE 9 – FIXED ASSETS

Fixed assets, stated at cost, less accumulated depreciation atJune 30, 2013and June 30, 2012 consisted of the following:

  June 30,
2013
 June 30,
2012
         
Total Fixed Assets $8,043,692  $215,837 
Less: Accumulated Depreciation  (118,782)  —   
         
Fixed Assets, net $7,924,910  $215,837 
         

Depreciation expense

Depreciation expense for the year ended June 30, 2013 and 2012 was $135,039 and $0, respectively. The Company did not commence depreciating the leasehold improvements and other fixed assets until placed in service. The difference between accumulated depreciation and depreciation expense in 2013 resulted from the application of the currency adjustment (see Note 8).

NOTE 10 – DEPOSITS

Deposits as of June 30, 2012 consisted of machinery and equipment ordered from CRS Technologies. A deposit of $5,813,990 was paid to CRS Technologies via a loan from Land Bank described in Note 6. During the year ended June 30, 2013, this equipment was received by Plandaí and the balance was transferred to Fixed Assets.

F-12

NOTE 11 – COMMON STOCK

During the year ended June 30, 2012, the Company believes there is a 50% or greater chancerecorded the carry-forwards will expire unused. Accordingly, the potential tax benefitsfollowing issuances of stock:

A total of 76,000,000 shares of common stock were issued to acquire 100% of the loss carry-forwards are offset by a valuation allowancecapital of Plandaí Biotechnologies, Inc., which owns several subsidiary companies located in South Africa.  For reporting purposes, these shares have been reflected as outstanding since inception and the issued and outstanding capital immediately prior to the share exchange has been shown as issued as of the same amount.


 

 

 

 

 

 

 

 

 

 

 

 

 

 

2011

 

 

2010

 

 

 

 

 

 

Net Operating Losses

$

2,945,000

 

$

2,790,000

 

 

 

 

 

 

Valuation Allowance

 

(2,945,000)

 

 

(2,790,000)

 

$

-

 

$

-

The Company evaluates its valuation allowance requirements based on projected future operations. When circumstances change and cause a change in management's judgment about the recoverability of deferred tax assets, the impactdate of the change onshare exchange.

Prior to executing the valuationshare exchange, the Company issued 14,000,000 to various third parties in exchange for services rendered.  These shares, together with the prior outstanding balance, have been treated as shares issued as of the share exchange date since Plandaí is reflected in current income.the surviving company for reporting purposes.

NOTE 5 - OPERATING LEASE COMMITMENTS

The Companies operating facility consists of approximately 3,500 sq. ft. The Company leases the space on a month-to-month basis at $9,000 per month.

The Company leases six delivery trucks under non-cancelableissued a total of 7,980,000 shares of restricted common stock in exchange for services previously rendered.  The value of such shares on the date of issuance, $2,979,509, has been recorded as an expense in the current period.

In February 2012, the Company issued a total of 1,500,000 shares of restricted common stock to three individuals in exchange for shares of Dunn Roman Holdings stock which had been previously issued. The acquired Dunn Roman shares were then provided to thirds parties in order to comply with the BEE provisions associated with the loan from the Land Bank of South Africa, which required that 26% of Dunn Roman be black owned.  The Company has therefore determined to treat the value of the shares issued to acquire the Dunn Roman stock as a cost of securing the financing. The value of the shares on the date of issuance, $585,000, has been recorded as a discount to Long Term Notes Payable. As funds are advanced on the loan, the $585,000 will be amortized over the life of the loan (7 years).

During the year ended June 30, 2013, the Company recorded the following common stock transactions:

In February of 2013, the Company cancelled 250,000 shares of common stock that had been issued in the prior year for services to be performed. Those services were never rendered, resulting in the shares being returned to the company and cancelled. The value of the shares was previously recorded as an $80,000 operating losses.expense. As a result of the canceled shares, the Company recorded an $80,000 reduction in operating expenses.

In February 2013, the Company repurchased 4,900,000 shares of common stock from a former director of the Company which had been issued for services rendered for total consideration of $125,000, which represented a 50% discount to market on the date of purchase. The minimum rentals dueshares were returned to treasury and subsequently cancelled.

In May and June of 2013, the Company issued a total of 525,460 shares of restricted common stock in exchange for proceeds of $140,500.

In February of 2013, the Company’s Board of Directors authorized the issuance of 4,360,000 shares of restricted common stock to officers and directors of the Company. As of the date of this report, the shares are yet to be issued and have been recorded as a stock subscription payable. The shares were for professional services provided to the Company and completed prior to June 30, 2013. The Company has recorded an expense of $261,600 which was calculated using the fair market price of the stock on these six delivery trucks are as follows at March 31, 2011 and 2010:the date of the board resolution authorizing the issuance of shares.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2011

 

 

March 31, 2010

 

 

 

 

 

 

Year ending March 31, 2011

 

-

 

 

87,048

Year ending March 31, 2012

 

24,552

 

 

24,552

Total

$

24,552

 

$

111,600


NOTE 7- NOTES PAYABLE12 – NON-CONTROLLING INTEREST

Factoring Line

Plandaí owns 82% of CreditDunn Roman Holdings—Africa, which in turn owns 74% each of Breakwood Trading 22 (Pty, Ltd. and Green Gold Biotechnologies (Pty), Ltd., in order to be compliant with the Black Economic Empowerment rules imposed by the South African Land Bank. While the Company, under the Equity Method of Accounting, is required to consolidate 100% of the operations of its majority-owned subsidiaries, that portion of subsidiary net equity attributable to the non-controlling ownership, together with an allocated portion of net income or net loss incurred by the subsidiaries, must be reflected on the consolidated financial statements. On the balance sheet, non-controlling interest has been shown in the Equity Section, separated from the equity of Plandaí, while on the income statement, the non-controlling shareholder allocation of net loss has been shown in the Consolidated Statement of Operations.

F-13

NOTE 13 – FUTURE OBLIGATIONS

Leases

In 2007February 2012, the Company entered into an agreement with a factoring corporation.long-term (49 year) lease of tea, avocado, macadamia and timber plantation estates totaling roughly 8 thousand acres in South Africa. Under the terms of the agreement,lease, the Company would receive 90 percentis required to pay annual rent of R250,000 ($30,000) plus an annual dividend of 26% of net income generated from the use of the purchase price up front and 10 percent would be held in reservesproperty with a R500,000 ($60,000) annual minimum dividend. The first payment of R20,883 ($2,610) was due April 2012, but by mutual agreement this payment has been extended until the receivables are collected. The term of the agreementfunding is one year, renewable at the Corporations discretion. A discount charge of sixty-five hundredths of one percent (.0065) modified from nine tenths of one per cent (.0090) on March 23, 2009 is charged, with increases based upon a time frame of receivables outstanding. Receivables over 90 days are returned to the Company.

These factoring lines of credit have been treated as a secured financing arrangement. As of March 31, 2011, the Company did not have any advancesreceived under the factoring lineloan from the Land Bank of credit.  As ofSouth Africa.

On March 31, 2010 the company had factored receivables in the





amount of $422,406 and recorded a liability of $379,465. Discount provided during factoring of the accounts receivable have been expensed on the accompanying Statements of Operations as Factoring Fees.

NOTE 8 – LOANS PAYABLE

As of March 31, 2011, the Company has outstanding notes payable to a shareholder in the amount of $2,640,942. These loans bear interest at rates of 3% per annum.  Accrued interest as of March 31, 2011 was $510,719.  During the year ended March 31, 2011, the shareholder forgave $109,827 of this indebtedness, which was charged to Additional Paid-in Capital.

In September 2006, the Company received $100,000 for a note bearing interest at 7.5%, payable in monthly installments starting February 2009 of $5,000 per month.  On July 28, 20091, 2012, the Company entered into a mutual release agreement in which10 year lease for office space for its subsidiary Dunn Roman Holdings. Under the parties agreedterms of the lease, payments will be $2,500 a month. The leaser is a related party to settle the remaining $90,000 debtCompany. See note 14 for $35,000. more information.

The table below summarized the future lease obligations for the fiscal years ended.

  Tea Estate Office Space
June 30, 2014 $360,000  $30,000 
June 30, 2015  360,000   30,000 
June 30, 2016  360,000   30,000 
June 30, 2017  360,000   30,000 
June 30, 2018  360,000   30,000 
Total five year lease obligation $1,800,000  $150,000 

Both of these leases either have escalating terms or included several months of “free” rent, including the 49-year notarial lease for the Senteeko Tea Estate. In accordance with US Generally Accepted Accounting Principles, the Company has calculated a straight-line monthly cost on the leases and recorded forgivenessthe corresponding difference between the amount actually paid and the amount calculated as a Capitalized Lease Obligation. As of debt inJune 30, 2013, the amount of $55,000this deferred liability was $988,381.

Employment Agreements

The company executed three employment agreements in March of 2013 with two officers and one management level employee. Each contract is for a five year term. Once the Company successfully raises $5,000,000 in raised capital equity, the employment agreements call for annual salaries of $420,000 for the year ended March 31, 2010 and has recorded the amount as other income.

NOTE 9 - RELATED PARTY TRANSACTIONS

At March 31, 2011three employment agreements combined. As of right now, the Company was indebtedhas not raised the $5,000,000 in capital equity so it cannot sustain such payments and therefore pays only $180,000 annually for the three employment agreements combined. Pursuant to a vendor, a related party, representing 65% of the total payables. Whilethree employment agreements in aggregate, the Company can, if needed, replace this vendor in buying productis also obligated to sell,issue 4,000,000 common shares at the lossend of this relationship would have a material impact on the Company.

NOTE 11-COMMON STOCK TRANSACTIONS

During theeach completed year ended March 31, 2010, the Company issued 512,500 shares of common stock for services rendered.rendered to the Company. The Company valued the 4,000,000 shares issued were valued at $.05, the bidclosing stock price on the date of issuance.the executed agreement which was $0.06/share. At June 30, 2013, with regards to the future issuance of 4,000,000 shares, the Company accrued compensation expense for services completed in the amount of $80,000.

NOTE 14 – RELATED PARTY TRANSACTION

In addition to the loans payable as discussed above (see Note 4), the Company had the following related party transactions during the years ended June 30, 2013 and 2012.

Deposits on Equipment

In June 2012, the Company’s subsidiary, Green Gold Biotechnology (Pty), Ltd., ordered machinery and equipment from CRS Technology, Inc., a company controlled by a trust of which Roger Duffield and Daron Baylis Duffield are the beneficiaries. The total purchase price of the assets acquired of approximately $5,779,200 (R47,793,992) was paid for from proceeds from the Land and Agriculture Bank of South Africa.

Accounts Payable to Related Parties

As of June 30, 2013 and 2012, the Company has accounts payable to related parties balances totaling $145,822 and $7,940 which consists primary of amounts owed to a company controlled by an officer and director of the company which paid certain operating expenses on behalf of the company.

F-14

Shareholder Loans

As of June 30, 2013 and 2012, the Company has outstanding loans from the Company’s Chief Executive Officer in the amount of $501,518 and $402,903. These loans were provided for short-term working capital purposes and bear interest at a rate of 4%. The loans cannot be called until the Company’s obligations under the Land & Agriculture Bank of South Africa have been met.

Office Lease

The Company leases its South African Office space from a trust of which one of the beneficiaries serves on the Board of Directors of Dunn Roman Holding—Africa, Ltd., a subsidiary of the Company. The lease agreement calls for monthly payments of $2,500. During the years ended June 30, 2013 and 2012, a total of $32,154 and $0 has been paid in rent expense.

Compensation to Officers and Management

Pursuant to three employment agreements executed on March 1, 2013 by the Company with two of its officers and one manager, the Company is also obligated to issue 4,000,000 common shares at the end of each completed year ended March 31, 2011,for services rendered to the Company. The Company valued the 4,000,000 shares at the closing stock price on the date of the executed agreement which was $0.06/share. At June 30, 2013, with regards to the future issuance of 4,000,000 shares, the Company accrued compensation expense for services completed in the amount of $80,000.

NOTE 15 - GOING CONCERN

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statement, the Company has an accumulated deficit of $10,903,811 as of June 30, 2013. The ability of the Company to continue as a going concern is in doubt and dependent upon achieving a profitable level of operations or on the ability of the Company to obtain necessary financing to fund ongoing operations. Management believes that its current and future plans enable it to continue as a going concern for the next twelve months.

To meet these objectives, the Company continues to raise additional working capital through the private placement of our common stock in order to support existing operations and expand the range and scope of its business. However, there are no assurances that we will be successful through the private placement of our securities on acceptable terms and timely manner, if at all.  The failure to obtain the necessary working capital would have a material adverse effect on the business prospects and, depending upon the shortfall, the Company may have to curtail or cease its operations.

The accompanying consolidated financial statements do not include any adjustment to the recorded assets or liabilities that might be necessary should the Company have to curtail operations or be unable to continue in existence.

NOTE 16 – SUBSEQUENT EVENTS

Management was evaluated subsequent events pursuant to the requirements of ASC Topic 855 and has determined that besides listed below, no material subsequent events exist through the date of this filing.

  1. On August 20, 2013, the Company executed two convertible promissory notes totaling $550,000. The notes bear interest at the rate of 8% per annum and become due and payable in six months from the date of issuance. During the first 90 days from issuance, the notes are repayable without incurring any interest charges. As of August 26, 2013, the company had been advanced $125,000 against the two notes. When the notes become payable, the holder has the option of converting the unpaid balance of any advances into common stock of the company at a discount of 40% off the then current price per share. Management has made arrangements for these notes to be repaid prior to conversion.

  1. In July of 2013, the Company issued 125,00016,700 common shares of common stock for cash of $100,000.

    $5,000 cash.




F-15


SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

DIAMOND RANCH FOODS, LTD.
(Registrant)


PLANDAI BIOTECHNOLOGY, INC.
(Registrant)
 April 29, 2014

July 14, 2011



By:/s/ Louis Vucci, Jr.Roger Duffield

Louis Vucci, Jr., Chief Executive OfficerRoger Duffield, President
       (On(On behalf of the Registrant and as Principal Executive Officer) and
      DirectorChairman of the Board of Directors



In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.



July 14, 2011



Date:   April 29, 2014    

/s/ Louis Vucci, Jr.Daron Baylis Duffield

Louis Vucci, Jr., Chief Executive Officer (Principal Executive Officer,) andDaron Baylis Duffield, Director

July 14, 2011

Date:   April 29, 2014    

/s/ Philip SerlinBrian Johnson

Philip Serlin,Brian Johnson, Director


July 14, 2011

Date:  April 29, 2014    

/s/ Victor PetroneRoger Duffield

Victor Petrone

Chief Financial Officer andRoger Duffield, Director (Principal Financial Officer and Principal Accounting Officer)