Eastgate Biotech (ETBI) 10-Q 13 Nov 13 2013 Q3 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information (USD $)	9 Months Ended
	Sep. 30, 2013
Document and Entity Information:	'
Entity Registrant Name	'EASTGATE ACQUISITIONS CORP
Document Type	'10-Q
Document Period End Date	30-Sep-13
Amendment Flag	'false
Entity Central Index Key	'0001099574
Current Fiscal Year End Date	'--12-31
Entity Common Stock, Shares Outstanding	31,625,000
Entity Public Float	$31,625,000
Entity Filer Category	'Smaller Reporting Company
Entity Current Reporting Status	'Yes
Entity Voluntary Filers	'Yes
Entity Well-known Seasoned Issuer	'Yes
Document Fiscal Year Focus	'2013
Document Fiscal Period Focus	'Q3

Consolidated_Balance_Sheets

Consolidated Balance Sheets (USD $)	Sep. 30, 2013	Dec. 31, 2012
ASSETS	'	'
Cash	$26,444	$100,000
Prepaid Assets	'	4,500
Total Current Assets	26,444	104,500
PROPERTY & EQUIPMENT, net	57,730	'
LONG TERM DEPOSITS	17,625	'
Total Long Term Assets	75,355	'
TOTAL ASSETS	101,799	104,500
Accounts payable	419,024	229,250
Current portion of capital lease obligation	34,403	'
Accrued interest - related parties	74,641	35,155
Notes payable - related parties	817,690	449,103
Total Current Liabilities	1,345,758	713,508
Common stock;100,000,000 shares authorized, at $0.00001 par value, 31,625,000 and 31,625,000 shares issued and outstanding, respectively	316	316
Additional paid-in capital	134,884	134,884
Accumulated other comprehensive income	1,254	'
Deficit accumulated during the development stage	-1,380,413	-744,208
Total Stockholders' Deficit	-1,243,959	-609,008
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$101,799	$104,500

Consolidated_Statements_of_Ope

Consolidated Statements of Operations and Comprehensive Loss (USD $)	3 Months Ended		9 Months Ended		169 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
REVENUES	'	'	'	'	'
Professional fees	$13,370	'	$26,677	$111,459	$143,551
Research and development	44,757	38,684	107,503	59,127	212,925
General and administrative	158,673	121,412	449,711	218,408	937,410
Marketing and selling	9,327	'	9,327	'	9,327
Total Operating Expenses	226,127	160,096	593,218	388,994	1,303,213
LOSS FROM OPERATIONS	-226,127	-160,096	-593,218	-388,994	-1,303,213
Interest expense	-18,064	-5,628	-42,987	-8,600	-77,200
Total Other Expenses	-18,064	-5,628	-42,987	-8,600	-77,200
LOSS BEFORE INCOME TAXES	-244,191	-165,724	-636,205	-397,594	-1,380,413
NET INCOME (LOSS)	-244,191	-165,724	-636,205	-397,594	-1,380,413
BASIC LOSS PER SHARE	($0.01)	($0.01)	($0.02)	($0.02)	'
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING	31,625,000	31,625,000	31,625,000	21,260,036	'
Comprehensive Loss	-244,191	-165,724	-636,205	-397,594	-1,380,413
Other Comprehensive Income	1,291	'	1,254	'	1,254
Other Comprehensive Loss	($242,900)	($165,724)	($634,951)	($397,594)	($1,379,159)

Consolidated_Statements_of_Cas

Consolidated Statements of Cash Flows (USD $)	9 Months Ended		169 Months Ended
	Sep. 30, 2013	Sep. 30, 2012	Sep. 30, 2013
OPERATING ACTIVITIES	'	'	'
Net loss	($636,205)	($397,594)	($1,380,413)
Expenses paid on the Company's behalf by a related party	177,816	213,680	576,919
Common stock issued for services	'	50,000	50,000
Depreciation	10,461	'	10,461
Services contributed by shareholders	'	3,000	34,700
Accrued interest	39,486	8,600	74,641
Prepaid asset	4,500	'	'
Accounts payable	189,774	122,314	419,024
Long term deposit	-17,625	'	-17,625
Net cash used in Operating Activities	-231,793	'	-232,293
Purchase of property and equipment	-4,648	'	-4,648
Net Cash Used in Investing Activities	-4,648	'	-4,648
Payments on capital lease obligation	-29,140	-29,140	'
Proceeds from notes payable to related parties	190,771	'	290,771
Common stock issued for cash	'	'	500
Net Cash Provided (used in) by Financing Activities	161,631	'	262,131
NET INCREASE (DECREASE) IN CASH	-74,810	'	25,190
Effect of foreign currency translation adjustments	1,254	1,254	'
CASH AT BEGINNING OF PERIOD	100,000	'	'
CASH AT END OF PERIOD	26,444	'	26,444
Interest	3,502	'	3,502
Capital contribution by officer - payment of related party payable on behalf of company	'	50,000	50,000
Property & equipment purchased under capital lease obligation	$63,543	'	$63,543

Condensed_Financial_Statements

Condensed Financial Statements	9 Months Ended
	Sep. 30, 2013
Notes	'
Condensed Financial Statements	'
	NOTE 1 - CONDENSED FINANCIAL STATEMENTS
	The accompanying consolidated financial statements have been prepared by the Company without audit.  In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at September 30, 2013, and for all periods presented herein have been made.
	Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2012 audited financial statements.  The results of operations for the periods ended September 30, 2013 and 2012 are not necessarily indicative of the operating results for the full years.

Going_Concern

Going Concern	9 Months Ended
	Sep. 30, 2013
Notes	'
Going Concern	'
	NOTE 2 - GOING CONCERN
	The Company's consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.
	In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management's plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking equity and/or debt financing. However management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.
	The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
	Use of Estimates
	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.
	Recent Accounting Pronouncements
	The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position or statements.
	Earnings (Loss) per Share
	The Company has adopted ASC 260, “Earnings Per Share,” (“EPS”) which requires presentation of basic and diluted EPS on the face of the income statement for all entities with complex capital structures, and requires a reconciliation of the numerator and denominator of the basic EPS computation to the numerator and denominator of the diluted EPS computation.  In the accompanying financial statements, basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period.
	The Company has no potentially dilutive securities, such as options or warrants, currently issued and outstanding.

Significant_Accounting_Policie

Significant Accounting Policies	9 Months Ended
	Sep. 30, 2013
Notes	'
Significant Accounting Policies	'
	NOTE 3 – SIGNIFICANT ACCOUNTING POLICIES
	Comprehensive Loss
	Comprehensive loss includes net loss as currently reported under U.S. GAAP and other comprehensive loss.  Other comprehensive loss considers the effects of additional economic events, such as foreign currency translation adjustments.
	Research and Development Policy
	Research and development costs are expensed as they are incurred.  Research and development expense was $107,503 and $59,127 for the nine months ended September 30, 2013 and 2012 and $212,925 from September 8, 1999 (inception) to September 30, 2013.
	Consolidation Policy
	The consolidated balance sheets and statement of operations and cashflows for the periods ended September 30, 2013 and December 31, 2012 include the books of Eastgate Acquisitions Corporation and its wholly owned subsidiary, Eastgate Pharmaceuticals Inc.  All intercompany transactions and balances have been eliminated in the consolidation.
	Foreign Currency Policy
	The Company’s wholly owned subsidiary, Eastgate Pharmaceuticals Inc.’s functional currency is the Canadian Dollar. All of its balance sheet accounts were translated to US Dollars at the September 30, 2013 spot rate. All of its income statement accounts were translated at the average translation rate between US Dollars and Canadian Dollars for the nine month’s ended September 30, 2013.
	Property and Equipment Policy
	Laboratory equipment and other equipment are stated at cost less accumulated depreciation.  Major renewals and improvements are capitalized: minor replacements, maintenance and repairs are charged to current operations.  Depreciation is computed by applying the straight-line method over the estimated useful lives which are generally five years.
		Method	Period
	Laboratory and other equipment	Straight line	5 years

Relatedparty_Transactions

Related-party Transactions	9 Months Ended
	Sep. 30, 2013
Notes	'
Related-party Transactions	'
	NOTE 4 – RELATED-PARTY TRANSACTIONS
	The Company has recorded loans from shareholders, amounts due to shareholders for expenses paid on its behalf by shareholders as Notes payable - related parties on the balance sheet. The amounts comprising Notes payable – related parties bear interest ranging from 5 percent per annum to 10 percent per annum are unsecured and are due and payable upon demand.
	-          During the year ended December 31, 2012, certain shareholders of the Company paid for expenses on behalf of the Company of $324,550. During 2012 in connection with the agreement to purchase patents from a related party (see Note 5 below), an officer and director of the Company agreed to pay $50,000 to a former officer thus reducing the amount owed to that former officer by $50,000. As consideration to the officer and director for this $50,000 payment on behalf of the Company, 10,000,000 shares of common stock were issued to the officer and director. The amount for patents purchased valued at $0 and the related party debt paid by the officer of $50,000 and has been recorded as contributed capital in equity (See Note 5).
	-
	-          During the nine months ended September 30, 2013, certain shareholders of the Company paid for expenses on behalf of the Company of $177,816 and advanced the Company $190,771.
	-          During the year ended December 31, 2012, an officer of the Company loaned the Company $100,000, for operating expenses.
	The resulting balance of Notes payable – related parties totaled $817,690 and $449,103 at September 30, 2013 and December 31, 2012, respectively.  The balance in interest accrued on the notes totaled $74,641 and $35,155 at September 30, 2013 and December 31, 2012, respectively.

Property_Equipment_and_Capital

Property & Equipment and Capital Lease Obligation	9 Months Ended
	Sep. 30, 2013
Notes	'
Property & Equipment and Capital Lease Obligation	'
	NOTE 6 – PROPERTY & EQUIPMENT AND CAPITAL LEASE OBLIGATION
	On January 4, 2013 the Company entered into a capital lease agreement to purchase equipment. The lease has a term of 19 months starting January 4, 2013 with the final payment due on August 1, 2014. The lease specifies a monthly rate of $3,600. The lease requires minimum lease payments of $68,400 over the term of the lease. The lease was initially recorded at $63,543, which is the present value of the minimum lease payments (less no executor cost) using the Company’s incremental borrowing rate of 10%.  During the nine months ended September 30, 2013 the Company paid principal of $29,140 ($0 during 2012) against the capital lease obligation and corresponding interest of $3,260, leaving an amount owing at the end of the period of $34,403 ($0 at December 31, 2012), $0 of which is a long-term obligation.
	Pursuant to ASC 840-30 for capital leases, the equipment was recorded at the same value as the initial capital lease obligation of $63,543.  Also during the nine months ending September 30, 2013, the Company purchased additional equipment for cash of $4,648. The estimated useful life of all equipment purchased during the period ended September 30, 2013 is 5 years. Depreciation expense of $10,461 and $0 was recorded during the nine months ended September 30, 2013 and September 30, 2012, respectively, which leaves a net balance in Property & Equipment of $57,730 and $0 at September 30, 2013 and December 31, 2012, respectively.

Long_Term_Deposits

Long Term Deposits	9 Months Ended
	Sep. 30, 2013
Notes	'
Long Term Deposits	'
	NOTE 7 – LONG TERM DEPOSITS
	During the third quarter the Company paid $17,625 in deposits for a tablet press to be used in the research and development department.  The equipment was received early in the fourth quarter and will be included in property and equipment on balance sheet.

Subsequent_Events

Subsequent Events	9 Months Ended
	Sep. 30, 2013
Notes	'
Subsequent Events	'
	NOTE 8 – SUBSEQUENT EVENTS
	In accordance with ASC 855 Company management reviewed all material events through the date of this report and determined that there are no material subsequent events to report.

Going_Concern_Use_of_Estimates

Going Concern: Use of Estimates (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Use of Estimates	'
	Use of Estimates
	The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.

Going_Concern_Recent_Accountin

Going Concern: Recent Accounting Pronouncements (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Recent Accounting Pronouncements	'
	Recent Accounting Pronouncements
	The Company has evaluated recent accounting pronouncements and their adoption has not had or is not expected to have a material impact on the Company’s financial position or statements.

Significant_Accounting_Policie1

Significant Accounting Policies: Comprehensive Loss (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Comprehensive Loss	'
	Comprehensive Loss
	Comprehensive loss includes net loss as currently reported under U.S. GAAP and other comprehensive loss.  Other comprehensive loss considers the effects of additional economic events, such as foreign currency translation adjustments.

Significant_Accounting_Policie2

Significant Accounting Policies: Research and Development Policy (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Research and Development Policy	'
	Research and Development Policy
	Research and development costs are expensed as they are incurred.  Research and development expense was $107,503 and $59,127 for the nine months ended September 30, 2013 and 2012 and $212,925 from September 8, 1999 (inception) to September 30, 2013.

Significant_Accounting_Policie3

Significant Accounting Policies: Consolidation Policy (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Consolidation Policy	'
	Consolidation Policy
	The consolidated balance sheets and statement of operations and cashflows for the periods ended September 30, 2013 and December 31, 2012 include the books of Eastgate Acquisitions Corporation and its wholly owned subsidiary, Eastgate Pharmaceuticals Inc.  All intercompany transactions and balances have been eliminated in the consolidation.

Significant_Accounting_Policie4

Significant Accounting Policies: Foreign Currency Policy (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Foreign Currency Policy	'
	Foreign Currency Policy
	The Company’s wholly owned subsidiary, Eastgate Pharmaceuticals Inc.’s functional currency is the Canadian Dollar. All of its balance sheet accounts were translated to US Dollars at the September 30, 2013 spot rate. All of its income statement accounts were translated at the average translation rate between US Dollars and Canadian Dollars for the nine month’s ended September 30, 2013.

Stockholders_Equity_Policies

Stockholders' Equity (Policies)	9 Months Ended
	Sep. 30, 2013
Policies	'
Stockholders' Equity	'
	NOTE 5 – STOCKHOLDERS’ EQUITY
	During 2012, an officer of the Company contributed various administrative services to the Company, including basic management and accounting services, and utilization of office space and equipment. This officer resigned during 2012, resulting in no expense recorded beyond June 2012. These services have been valued at $500 per month of service and have been recorded as capital contributions of $0 and $3,000 as of the periods ending September 30, 2013 and December 31, 2012, respectively.
	On May 22, 2012 pursuant to a patent acquisition agreement, the Company issued 10,000,000 shares of common stock valued at $0.005 per share to a Company officer in exchange for patent rights contributed, and forgiveness of debt to a related party of $50,000.  Also pursuant to the patent acquisition agreement, the Company issued an additional 10,000,000 shares of common stock to a third party in exchange for patent rights, valued also at $0.005 per share.