UNITED STATES | ||||||
SECURITIES AND EXCHANGE COMMISSION | ||||||
Washington, D. C. 20549 | ||||||
Form 10-Q | ||||||
[X] QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||
For the quarterly period ended June 30, | ||||||
or | ||||||
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||||||
For the transition period from _____ to _____ | ||||||
Commission File Number: 333-1000046 | ||||||
Chun Can Capital Group | ||||||
(Exact name of registrant as specified in its charter) | ||||||
Nevada | 52-2360156 | |||||
(State or other jurisdiction of incorporation) | (IRS Employer Identification Number) | |||||
7325 Oswego Road | ||||||
Liverpool, New York | 13090 | |||||
(Address of principal executive offices and Zip Code) | (Zip Code) | |||||
(315) 451-7515 | ||||||
(Registrant's telephone number, including area code) | ||||||
Large Accelerated Filer | [ ] | Accelerated Filer | [ ] |
Non-accelerated Filer | [ ] | Smaller Reporting Company | [X] |
(Do not check if smaller reporting company) | Emerging growth company | [ ] |
APPLICABLE ONLY TO CORPORATE ISSUERS: | ||
As of February |
Chun Can Capital Group | |||
Form 10-Q | |||
For the Fiscal Quarter Ended June 30, | |||
TABLE OF CONTENTS | |||
Page | |||
Part I | |||
Item 1 | Financial Statements | 3 | |
Item 2 | Management Discussion and Analysis of Financial Condition and Results of Operations | 10 | |
Item 3 | Quantitave and Qualitative Disclosures About Market Risk | 13 | |
Item 4 | Controls and Procedures | 13 | |
Part II | |||
Item 1 | Legal Proceedings | 14 | |
Item 1A | Risk Factors | 14 | |
Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds | 14 | |
Item 3 | Defaults Upon Senior Securities | 14 | |
Item 4 | Mine Safety Disclosures | 14 | |
Item 5 | Other Information | 14 | |
Item 6 | Exhibits | 15 | |
Signatures | 16 |
PART I - FINANCIAL INFORMATION | |||
Item 1 | Financial Statements | ||
Chun Can Capital Group | |||
(Formerly Cintel Corp. and Sunsidiary) | |||
Financial Statements | |||
For the Fiscal Quarter Ended June 30, | |||
TABLE OF CONTENTS | |||
Page | |||
Condensed Consolidated Balance Sheets (unaudited) | F-2 | ||
Condensed Consolidated Statements of Operations and Comprehensive Income (unaudited) | F-3 | ||
Condensed Consolidated Statements of Cash Flows (unaudited) | F-4 | ||
Condenses Consolidated Statements if Stockholders Deficit (Unaudited) | F-5 | ||
Notes to the Financial Statements (unaudited) | F-6 | ||
F-1 |
CHUN CAN CAPITAL GROUP | ||||||||||||||||
(formerly CINTEL CORP. AND SUBSIDIARY) | ||||||||||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||||||||||
JUNE 30, 2014 AND DECEMBER 31, 2013 | ||||||||||||||||
JUNE 30, 2015 AND DECEMBER 31, 2014 | ||||||||||||||||
(In thousands, except share and per share amounts) | ||||||||||||||||
June 30, | December 31, | June 30, | December 31, | |||||||||||||
2014 | 2013 | 2015 | 2014 | |||||||||||||
(Unaudited) | (Unaudited) | |||||||||||||||
ASSETS | ||||||||||||||||
Current assets: | ||||||||||||||||
Cash and cash equivalents | $ | - | $ | - | $ | - | $ | - | ||||||||
Loans receivable | - | - | - | - | ||||||||||||
Total current assets | - | - | - | - | ||||||||||||
Long-term investments | - | - | - | - | ||||||||||||
Property and equipment, net | - | - | - | - | ||||||||||||
Equity method investments | - | - | - | - | ||||||||||||
Deposits and other assets | - | - | - | - | ||||||||||||
Total assets | $ | - | $ | - | $ | - | $ | - | ||||||||
LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||||||||||
Current liabilities: | ||||||||||||||||
Accounts payable | - | - | - | - | ||||||||||||
Accrued liabilities | - | - | - | - | ||||||||||||
Other current liabilities | - | - | - | - | ||||||||||||
Total current liabilities | - | - | - | - | ||||||||||||
Accrued severance benefits | - | - | - | - | ||||||||||||
Convertible debt | - | - | - | - | ||||||||||||
Total liabilities | - | - | - | - | ||||||||||||
Commitments | - | - | - | - | ||||||||||||
Stockholders' deficit: | ||||||||||||||||
Preferred stock: par value $0.001 per share, 30,000,000 | ||||||||||||||||
shares authorized, none issued and outstanding | - | - | - | - | ||||||||||||
Common stock: par value $0.001 per share, 270,000,000 | ||||||||||||||||
shares authorized, 33,011 and 33,011 shares issued and | ||||||||||||||||
outstanding | 3 | 3 | 3 | 3 | ||||||||||||
Additional paid-in capital | 20,666 | 20,666 | 20,666 | 20,666 | ||||||||||||
Accumulated deficit | (20,669 | ) | (20,669 | ) | (20,669 | ) | (20,669 | ) | ||||||||
Accumulated other comprehensive loss | - | - | - | - | ||||||||||||
Total stockholders' deficit | - | - | - | - | ||||||||||||
Total liabilities and stockholders' deficit | - | - | - | - | ||||||||||||
See accompanying notes to financial statements. | See accompanying notes to financial statements. | See accompanying notes to financial statements. |
CHUN CAN CAPITAL GROUP | ||||||||||||||||||||||||||||||||
(formerly CINTEL CORP. AND SUBSIDIARY) | ||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||||||||||||||||
THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 | ||||||||||||||||||||||||||||||||
THREE AND SIX MONTHS ENDED JUNE 30, 2015 AND 2014 | ||||||||||||||||||||||||||||||||
(Unaudited, in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||
For the Three Months Ended | For the Six Months Ended | For the Three Months Ended | For the Six Months Ended | |||||||||||||||||||||||||||||
June 30, | June 30, | June 30, | June 30, | |||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2015 | 2014 | 2015 | 2014 | |||||||||||||||||||||||||
Net revenues | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||||||||
General and administrative expenses | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Depreciation and amortization | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Goodwill impairment loss | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Total operating expenses | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Loss from operations | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Other income (expenses): | ||||||||||||||||||||||||||||||||
Net loss on sale of property and equipment | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Interest expense | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Impairment loss on investment | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Share of loss from equity investment | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Foreign currency transactions, net | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Gain on debt settlement | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Other income (expenses), net | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Income (loss) before income taxes | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Income tax expense | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||
Net income (loss) | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Income (loss) per share – basic and diluted: | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||
Weighted average number of | ||||||||||||||||||||||||||||||||
common shares outstanding - basic and diluted | 33,011 | 33,011 | 33,011 | 33,011 | 33,011 | 33,011 | 33,011 | 33,011 | ||||||||||||||||||||||||
See accompanying notes to financial statements. | See accompanying notes to financial statements. | See accompanying notes to financial statements. |
CINTEL CORP. AND SUBSIDIARY | ||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||
THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 | ||||||||||||||||
THREE AND SIX MONTHS ENDED JUNE 30, 2015 AND 2014 | ||||||||||||||||
(Unaudited, in thousands) | ||||||||||||||||
For the Six Months Ended | For the Six Months Ended | |||||||||||||||
June 30, | June 30, | |||||||||||||||
2014 | 2013 | 2015 | 2014 | |||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income (loss) | $ | - | $ | - | $ | - | $ | - | ||||||||
Adjustments to reconcile net loss to net cash | ||||||||||||||||
provided by (used in) operating activities: | ||||||||||||||||
Investment impairment | - | - | - | - | ||||||||||||
Impairment of goodwill | - | - | - | - | ||||||||||||
Depreciation expense | - | - | - | - | ||||||||||||
Share of loss from equity investment | - | - | - | - | ||||||||||||
Net loss on sale of property | - | - | - | - | ||||||||||||
Foreign currency transaction (gain) loss | - | - | - | - | ||||||||||||
Shares issued for services | - | - | - | - | ||||||||||||
Gain on debt settlement | - | - | - | - | ||||||||||||
(Increase) decrease in assets: | ||||||||||||||||
Prepaid expenses and other assets | - | - | - | - | ||||||||||||
Security deposits | - | - | - | - | ||||||||||||
Increase (decrease) in liabilities: | ||||||||||||||||
Accounts payable | - | - | - | - | ||||||||||||
Accrued liabilities | - | - | - | - | ||||||||||||
Cash provided by (used in) operating activities | - | - | - | - | ||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Payments on loan receivable | - | - | - | - | ||||||||||||
Proceeds from loan receivable | - | - | - | - | ||||||||||||
Cash provided by investing activities | - | - | - | - | ||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Proceeds from notes payable | - | - | - | - | ||||||||||||
Principal payments of notes payable | - | - | - | - | ||||||||||||
Cash used in financing activities | - | - | - | - | ||||||||||||
Net decrease in cash and cash equivalent | - | - | - | - | ||||||||||||
Effect of foreign currency translation | - | - | - | - | ||||||||||||
Cash and cash equivalent - beginning of period | - | - | - | - | ||||||||||||
Cash and cash equivalent - end of period | $ | - | $ | - | $ | - | $ | - | ||||||||
Supplemental Disclosure of Cash Flows Information: | ||||||||||||||||
Cash paid during the year for: | ||||||||||||||||
Interest | $ | - | $ | - | $ | - | $ | - | ||||||||
Income taxes | $ | - | $ | - | $ | - | $ | - | ||||||||
See accompanying notes to financial statements. | See accompanying notes to financial statements. | See accompanying notes to financial statements. |
CHUN CAN CAPITAL GROUP | ||||||||||||||||||||||||||||||||||||||||
(formerly CINTEL CORP. AND SUBSIDIARY) | ||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT | CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT | CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT | ||||||||||||||||||||||||||||||||||||||
THREE AND SIX MONTHS ENDED JUNE 30, 2014 AND 2013 | ||||||||||||||||||||||||||||||||||||||||
THREE AND SIX MONTHS ENDED JUNE 30, 2015 AND 2014 | THREE AND SIX MONTHS ENDED JUNE 30, 2015 AND 2014 | |||||||||||||||||||||||||||||||||||||||
(Unaudited, in thousands, except per share amounts) | ||||||||||||||||||||||||||||||||||||||||
Additional | Additional | |||||||||||||||||||||||||||||||||||||||
Common stock | Paid-in | Accumulated | Common stock | Paid-in | Accumulated | |||||||||||||||||||||||||||||||||||
Shares | Amount | Capital | Deficit | Total | Shares | Amount | Capital | Deficit | Total | |||||||||||||||||||||||||||||||
Balance, December 31, 2013 | 33,011 | $ | 3 | $ | 20,666 | (20,669 | ) | $ | - | |||||||||||||||||||||||||||||||
Balance, December 31, 2014 | 33,011 | $ | 3 | $ | 20,666 | (20,669 | ) | $ | - | |||||||||||||||||||||||||||||||
Net income (loss) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Balance, March 31, 2015 | 33,011 | 3 | 20,666 | (20,669 | ) | - | ||||||||||||||||||||||||||||||||||
Net income (loss) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Balance, June 30, 2015 | 33,011 | $ | 3 | $ | 20,666 | (20,669 | ) | $ | - | |||||||||||||||||||||||||||||||
Balance, December 31, 2015 | 33,011 | $ | 3 | $ | 20,666 | (20,669 | ) | $ | - | |||||||||||||||||||||||||||||||
Net income (loss) | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Balance, March 31, 2014 | 33,011 | 3 | 20,666 | (20,669 | ) | - | 33,011 | $ | 3 | $ | 20,666 | (20,669 | ) | $ | - | |||||||||||||||||||||||||
Net income (loss) | - | - | - | - | - | - | - | - | - | - | ||||||||||||||||||||||||||||||
Balance, June 30, 2014 | 33,011 | $ | 3 | $ | 20,666 | (20,669 | ) | $ | - | 33,011 | $ | 3 | $ | 20,666 | (20,669 | ) | $ | - | ||||||||||||||||||||||
Balance, December 31, 2012 | 33,011 | $ | 3 | $ | 20,666 | (20,669 | ) | $ | - | |||||||||||||||||||||||||||||||
Net income (loss) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Balance, March 31, 2013 | 33,011 | $ | 3 | $ | 20,666 | (20,669 | ) | $ | - | |||||||||||||||||||||||||||||||
Net income (loss) | - | - | - | - | - | |||||||||||||||||||||||||||||||||||
Balance, June 30, 2013 | 33,011 | $ | 3 | $ | 20,666 | (20,669 | ) | $ | - | |||||||||||||||||||||||||||||||
See accompanying notes to financial statements. | See accompanying notes to financial statements. | See accompanying notes to financial statements. |
2014 | 2013 | 2015 | 2014 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Income tax – current | $ | - | $ | - | $ | - | $ | - | ||||||||
Income tax – deferred | - | - | - | - | ||||||||||||
$ | - | $ | - | $ | - | $ | - |
2014 | 2013 | 2015 | 2014 | |||||||||||||
(In thousands) | (In thousands) | |||||||||||||||
Net operating loss carryforwards | $ | - | $ | - | $ | - | $ | - | ||||||||
Valuation allowance | (- | ) | (- | ) | (- | ) | (- | ) | ||||||||
$ | - | $ | - | $ | - | $ | - |
ITEM 2. | MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION OR PLAN OF OPERATION. |
June 30, | December 31, | June 30, | December 31, | |||||||||||||
2014 | 2013 | 2015 | 2014 | |||||||||||||
Current Assets | $ | - | $ | - | $ | - | $ | - | ||||||||
Current Liabilities | - | - | - | - | ||||||||||||
Working Capital (Deficit) | $ | - | $ | - | $ | - | $ | - |
June 30, | June 30, | June 30, | June 30, | |||||||||||||
2014 | 2013 | 2015 | 2014 | |||||||||||||
Cash Flows from (used in) Operating Activities | $ | - | $ | - | $ | - | $ | - | ||||||||
Cash Flows provided by Investing Activities | - | - | - | - | ||||||||||||
Cash Flows from (used in) Financing Activities | - | - | - | - | ||||||||||||
Net Increase (decrease) in Cash During Period | - | - | - | - |
Operating Revenues |
Operating Expenses and Net Loss |
Liquidity and Capital Resources |
Cashflow from Operating Activities |
Cashflow from Financing Activities |
During the six months ended June 30, |
Subsequent Developments |
Going Concern |
Off-Balance Sheet Arrangements |
Future Financings |
ITEM 3. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 3. | DEFAULTS UPON SENIOR SECURITIES. |
ITEM 4. | MINE SAFETY DISCLOSURE. |
ITEM 5. | OTHER INFORMATION. |
None |
ITEM 6. | EXHIBITS |
Exhibit Number | Form | Date | Number | Filed Herewith | |
31.1 | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | X | |||
31.2 | Certification of Principal 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 | |||
101.INS | XBRL Instance Document. | X | |||
101.SCH | XBRL Taxonomy Extension – Schema. | X | |||
101.CAL | XBRL Taxonomy Extension – Calculations. | X | |||
101.LAB | XBRL Taxonomy Extension – Labels. | X | |||
101.PRE | XBRL Taxonomy Extension – Presentation. | X | |||
101.DEF | XBRL Taxonomy Extension – Definition. | X | |||
Reports on Form 8-K: | |||||
CHUN CAN CAPITAL GROUP | ||
(the "Registrant") | ||
BY: | /s/Clara I. Gomez | |
Clara I Gomez | ||
Chief Executive Officer, | ||