UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10 - Q
(Mark One) |
[ x ] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2010 |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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Commission File Number: [ ]
CHINA DIGITAL VENTURES CORPORATION
(Exact Name of Registrant as Specified in Its Charter)
Nevada | ------------- |
(State or Other Jurisdiction of Incorporation or Organization) | (IRS Employer Identification No.) |
Unit 603, 6/F., Malaysia Building 50 Gloucester Road, Wanchai, Hong Kong | n/a |
(Address of Principal Executive Offices) | (Zip Code) |
+011 (852) 6343-7704
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name, Former Address and Former
Fiscal Year if Changed Since Last Report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 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. |
Yes [ x ] 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 (S 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 [ ] No [ 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 accelerated filer, " " accelerated filer " and " small reporting company " in Rule 12b-2 of the Exchange Act. |
Large Accelerated Filer [ ] Accelerated Filer [ ] Non-Accelerated Filer [ ] Smaller Reporting Company [ x ]
SEC 1296 (03-10) | Potential persons who are to respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number. |
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Yes [ x ] No [ ]
The number of common equity shares outstanding as of April 30, 2010 was 15,228,000 shares of Common Stock, $0.001 par value. |
Page | ||
PART I. FINANCIAL INFORMATION | ||
Item 1. | Financial Statements | |
Consolidated Balance Sheet - March 31, 2010 (Unaudited) | 2 | |
Consolidated Statements of Operations - Three Months and Six Months ended March 31, 2010 and 2009 and from March 26, 2007 (Inception) to March 31, 2010 (Unaudited) | 3 | |
Consolidated Statement of Stockholders' Equity / (Deficit) - From March 26, 2007 (Inception) to March 31, 2010 (Unaudited) | 4 | |
Consolidated Statements of Cash Flows - Six Months ended March 31, 2010 and 2009 and from March 26, 2007 (Inception) to March 31, 2010 (Unaudited) | 5 | |
Notes to Consolidated Financial Statements | 7-19 |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3. | Quantitative and Qualitative Disclosure About Market Risk |
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Item 4. | Controls and Procedures |
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PART II. OTHER INFORMATION |
Item 1 | Legal Proceedings |
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Item 1A | Risk Factors |
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Item 2 | Unregistered Sales of Equity Securities and Use of Proceeds |
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Item 3 | Defaults Upon Senior Securities |
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Item 4 | (Removed and Reserved) |
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Item 5 | Other Information |
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Item 6. | Exhibits |
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SIGNATURES |
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PART I - FINANCIAL INFORMATION
CHINA DIGITAL VENTURES CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
CONSOLIDATED BALANCE SHEET |
AS AT MARCH 31, 2010 AND SEPTEMBER 30, 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
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(Unaudited) | (Audited) | ||||
US$ | US$ | ||||
ASSETS | |||||
Current assets: | |||||
Cash and cash equivalents | 17,932 | 36,227 | |||
Account receivable | 859 | 154 | |||
Other receivable | 1,487 | 2,884 | |||
Loan receivable | - | 14,049 | |||
Amount due from a director | 5 | 18,582 | 7,104 | ||
Deposits | 6 | 124,807 | 124,801 | ||
Inventory-resalable goods | 2,157 | 1,585 | |||
-------------------- | ------------------- | ||||
Total current assets | 165,824 | 186,804 | |||
-------------------- | ------------------- | ||||
Non-Current assets: | |||||
Property and equipment, net | 7 | 12,081 | 11,960 | ||
Goodwill | 13,902 | 13,902 | |||
-------------------- | ------------------- | ||||
Total non-current assets | 25,983 | 25,862 | |||
-------------------- | ------------------- | ||||
Total assets: | 191,087 | 212,666 | |||
=========== | =========== | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
Current liabilities: | |||||
Other payables | 8 | 226,425 | 179,727 | ||
Loan payable | 38,339 | 36,814 | |||
Amount due to held for sale subsidiary | 18,138 | - | |||
Accrued expenses | 31,396 | 40,087 | |||
Amounts due to directors | 5 | 31,480 | 26,498 | ||
------------------- | ------------------- | ||||
Total current liabilities | 345,778 | 283,126 | |||
------------------- | ------------------- | ||||
Minority interest | (16,546) | (2,091) | |||
Stockholders' equity: | |||||
Common stock, $0.001 par value, 75,000,000 shares authorized 15,228,000 (2009: 15,228,000) shares issued and outstanding | 4 | 15,228 | 15,228 | ||
Additional paid up capital | 4 | 69,332 | 69,332 | ||
Deficit accumulated during the development stage | (220,913) | (152,009) | |||
Comprehensive loss | (1,072) | (920) | |||
------------------- | ------------------- | ||||
Total stockholders' deficit | (137,425) | (68,369) | |||
------------------- | ------------------- | ||||
Total liabilities and stockholders' equity | 191,807 | 212,666 | |||
=========== | =========== |
See accompanying notes to the financial statements
2
CHINA DIGITAL VENTURES CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
CONSOLIDATED STATEMENTS OF OPERATIONS |
FOR THE THREE MONTHS AND SIX MONTHS ENDED MARCH 31, 2010 AND 2009 AND FROM MARCH 26, 2007 (INCEPTION) TO MARCH 31, 2010 |
(UNAUDITED) |
(Stated in US Dollars) |
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For the Three | For the Three | For the Six | For the Six | from March 26, | ||||||
Months Ended | Months Ended | Months Ended | Months Ended | 2007 (Inception) | ||||||
March 31, | March 31, | March 31, | March 31, | to March 31, | ||||||
2010 | 2009 | 2010 | 2009 | 2010 | ||||||
US$ | US$ | US$ | US$ | US$ | ||||||
----------------- | ----------------- | ----------------- | ----------------- | ------------------ | ||||||
Net Revenues | 577 | 6,178 | 1,127 | 12,064 | 31,912 | |||||
Cost of Revenues | - | 2,899 | 320 | 5,732 | 15,731 | |||||
----------------- | ----------------- | ----------------- | ----------------- | ------------------ | ||||||
Gross Profits | 577 | 3,279 | 807 | 6,332 | 16,181 | |||||
Other General and Administrative Expenses | 27,788 | 11,071 | 83,106 | 16,738 | 260,668 | |||||
----------------- | ----------------- | ------------------ | ------------------ | ------------------ | ||||||
Loss from Operations | (27,211) | (7,792) | (82,299) | (10,406) | (244,487) | |||||
Other Income /(Expenses) | ||||||||||
Interests income | - | - | 141 | - | 1,196 | |||||
Interests expenses | (475) | (54) | (1,201) | (54) | (2,052) | |||||
----------------- | ----------------- | ------------------ | ------------------ | ------------------ | ||||||
Net Loss before minority interest | (27,686) | (7,846) | (83,359) | (10,460) | (245,343) | |||||
Minority interest | 4,738 | - | 14,455 | - | 24,430 | |||||
----------------- | ----------------- | ------------------ | ------------------ | ------------------ | ||||||
Net Loss | (22,948) | (7,846) | (68,904) | (10,460) | (220,913) | |||||
Other comprehensive loss | ||||||||||
Foreign currency translation gain / (loss) | 401 | - | (152) | - | (1,072) | |||||
----------------- | ----------------- | ------------------ | ------------------ | ------------------ | ||||||
Comprehensive Loss | (22,547) | (7,846) | (69,056) | (10,460) | (221,985) | |||||
========== | ========== | ========== | ========== | ========== | ||||||
Weighted Average Basic and Diluted Shares Outstanding | 15,228,000 | 13,228,000 | 15,228,000 | 13,228,000 | 13,553,729 | |||||
========== | ========== | ========== | ========== | ========= | ||||||
Loss Per Share - basic and diluted | $ | (0.00) | $ | (0.00) | $ | (0.00) | $ | (0.00) | $ | (0.00) |
========== | ========= | =========== | ========= | ========= |
*Basic and diluted weighted average number of shares is the same since the Company has no dilutive securities
See accompanying notes to the financial statements
3
CHINA DIGITAL VENTURES CORPORATION | ||||||||||||
(A DEVELOPMENT STAGE COMPANY) | ||||||||||||
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY / (DEFICIT) | ||||||||||||
FOR THE PERIOD FROM MARCH 26, 2007 (INCEPTION) TO MARCH 31, 2010 | ||||||||||||
(UNAUDITED) | ||||||||||||
(Stated in US Dollars) | ||||||||||||
Deficit | ||||||||||||
accumulated | ||||||||||||
Common stock | Additional | during the | Total | |||||||||
----------------------------- | paid-in | Comprehensive | development | stockholders' | ||||||||
Shares | Amount | capital | Loss | Stage | equity/(deficit) | |||||||
US$ | US$ | US$ | US$ | US$ | ||||||||
---------- | ----------- | ----------- | --------------------- | ------------ | ------------- | |||||||
Balance at March 26, 2007(inception) | - | - | - | - | - | - | ||||||
Issuance of founder shares for cash at $0.001 per share - | - | - | ||||||||||
March 28, 2007 | 10,000,000 | 10,000 | - | - | - | 10,000 | ||||||
Sale of shares for cash at $0.01 per share - April, 2007 | 3,000,000 | 3,000 | 27,000 | - | - | 30,000 | ||||||
Net loss | - | - | - | - | (38,799) | (38,799) | ||||||
--------------- | --------------- | ------------- | ------------------- | --------------- | -------------- | |||||||
Balance at September 30, 2007 | 13,000,000 | 13,000 | 27,000 | - | (38,799) | 1,201 | ||||||
Sale of shares for cash at $0.02 per share - Feb - Mar 2008 | 208,000 | 208 | 3,952 | - | - | 4,160 | ||||||
Issuance of shares for services at $0.02 per share - Jul 7, 2008 | 20,000 | - | 400 | - | - | 400 | ||||||
Net loss | - | - | - | - | (49,952) | (49,952) | ||||||
--------------- | ---------------- | -------------- | ------------------ | ---------------- | --------------- | |||||||
Balance at September 30, 2008 | 13,228,000 | 13,208 | 31,352 | - | (88,751) | (44,191) | ||||||
Issuance of shares for acquisition of subsidiary | 2,000,000 | 2,000 | 38,000 | - | - | 40,000 | ||||||
Comprehensive loss | - | - | - | (920) | - | (920) | ||||||
Reclassification | - | 20 | (20) | - | - | - | ||||||
Net loss | - | - | - | - | (63,258) | (63,258) | ||||||
--------------- | ---------------- | -------------- | ------------------- | ---------------- | --------------- | |||||||
Balance at September 30, 2009 | 15,228,000 | 15,228 | 69,332 | (920) | (152,009) | (68,369) | ||||||
Comprehensive loss | - | - | - | (152) | - | (152) | ||||||
Net loss | - | - | - | (68,904) | (68,904) | |||||||
--------------- | ---------------- | -------------- | -------------------- | ---------------- | --------------- | |||||||
Balance at March 31, 2010 | 15,228,000 | 15,228 | 69,332 | (1,072) | (220,913) | (137,425) | ||||||
========= | ========= | ========= | ============ | ========= | ========= |
See accompanying notes to the financial statements
4
CHINA DIGITAL VENTURES CORPORATION | ||||||
(A DEVELOPMENT STAGE COMPANY) | ||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||
FOR THE SIX MONTHS ENDED MARCH 31, 2010 AND 2009 AND FROM MARCH 26, 2007 (INCEPTION) TO MARCH 31, 2010 | ||||||
(UNAUDITED) | ||||||
(Stated in US Dollars) | ||||||
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For the Six | For the Six | from March 26, 2007 | ||||
Months Ended | Months Ended | (Inception) to | ||||
March 31, 2010 | March 31, 2009 | March 31, 2010 | ||||
US$ | US$ | US$ | ||||
----------------------- | ----------------------- | ------------------------ | ||||
Cash Flows from Operating Activities: | ||||||
Net Loss | (68,904) | (10,460) | (220,913) | |||
Adjustments to Reconcile Net Loss to Net Cash Used | ||||||
in Operating Activities: | ||||||
Depreciation | 2,115 | - | 2,914 | |||
Minority interest | (14,455) | - | (24,430) | |||
Common stock issuance for services | - | - | 400 | |||
Changes in Assets and Liabilities: | ||||||
Increase in Account Receivable | (705) | (2,158) | (859) | |||
Decrease in Other Receivable | 1,397 | - | 1,881 | |||
Decrease in Loan Receivables | 14,049 | - | 12,822 | |||
Increase in Deposits | (6) | - | (93) | |||
Increase in Inventory - resalable goods | (572) | - | (1,811) | |||
Increase in Amount due from director | (11,478) | - | (18,582) | |||
(Decrease) / Increase in Accrued Expenses | (8,691) | 2,054 | 30,998 | |||
Increase in Other Payable | 46,698 | 3,100 | 79,185 | |||
Increase in Loan Payable | 1,525 | - | 5,018 | |||
Increase in Amount due to a subsidiary | 18,138 | - | 18,138 | |||
Increase in Due to director | 4,982 | 3,673 | 27,037 | |||
----------------------- | ----------------------- | ----------------------- | ||||
Net Cash Used in Operating Activities | (15,907) | (3,791) | (88,295) | |||
----------------------- | ----------------------- | ----------------------- | ||||
Cash Flows from Investing Activities: | ||||||
Disposal of subsidiary, net of cash | - | - | 75,650 | |||
Purchase of property and equipment | (2,236) | - | (12,511) | |||
----------------------- | ----------------------- | ----------------------- | ||||
Cash Flows from Financing Activities: | (2,236,) | - | 63,139 | |||
Proceeds from Sale of Common Stock | - | - | 44,160 | |||
----------------------- | ----------------------- | ----------------------- | ||||
Net Cash Provided by Financing Activities | - | - | 44,160 | |||
----------------------- | ----------------------- | ----------------------- | ||||
(Decrease)/Increase in Cash | (18,143) | (3,791) | 19,004 | |||
Effect of exchange rate changes on cash and cash equivalent | (152) | - | (1,072)19,004 | |||
Cash - Beginning of Period | 36,227 | 8,517 | - | |||
----------------------- | ----------------------- | ----------------------- | ||||
Cash - End of Period | 17,932 | 4,726 | 17,932 | |||
============= | ============= | ============= | ||||
5
CHINA DIGITAL VENTURES CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
FOR THE SIX MONTHS ENDED MARCH 31, 2010 AND 2009 AND FROM MARCH 26, 2007 (INCEPTION) TO MARCH 31, 2010 |
(UNAUDITED) |
(Stated in US Dollars) |
Supplemental Disclosures of Cash Flow Information: | ||||||
Interest Paid | 1,201 | 54 | 2,052 | |||
============= | ============= | ============= | ||||
Income Taxes Paid | - | - | - | |||
============= | ============= | ============= |
See accompanying notes to the financial statements
6
CHINA DIGITAL VENTURES CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE SIX MONTHS ENDED MARCH 31, 2010 AND 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
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CHINA DIGITAL VENTURES CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE SIX MONTHS ENDED MARCH 31, 2010 AND 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
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CHINA DIGITAL VENTURES CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE SIX MONTHS ENDED MARCH 31, 2010 AND 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
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Furniture, fixture and equipment | 3-5 years |
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CHINA DIGITAL VENTURES CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE SIX MONTHS ENDED MARCH 31, 2010 AND 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
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CHINA DIGITAL VENTURES CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE SIX MONTHS ENDED MARCH 31, 2010 AND 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
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CHINA DIGITAL VENTURES CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE SIX MONTHS ENDED MARCH 31, 2010 AND 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
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CHINA DIGITAL VENTURES CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE SIX MONTHS ENDED MARCH 31, 2010 AND 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
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CHINA DIGITAL VENTURES CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE SIX MONTHS ENDED MARCH 31, 2010 AND 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
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In October 2009, the FASB issued FASB issued ASU No. 2009-13, Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements (a consensus of the FASB Emerging Issues Task Force)." ("ASC Update No. 2009-13). This updates set forth the guidance on the existing multiple-element arrangement currently in FASB Topic 605-25 (Revenue Recognition - Multiple-Element Arrangements). This new guidance eliminates the requirement that all undelivered elements have objective evidence of fair value before a company can recognize the portion of the overall arrangement fee that is attributable to the items that have already been delivered. Further, companies will be required to allocate revenue in arrangements involving multiple deliverables based on the estimated selling price of each deliverable, even though such deliverables are not sold separately by either company itself or other vendors. This new guidance also significantly expands the disclosures required for multiple-element revenue arrangements. The revised guidance will be effective for the first annual period beginning on or after June 15, 2010. The Company does not expect that the implementation of ASU No. 2009-13 will have a material effect on its financial statements. |
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CHINA DIGITAL VENTURES CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE SIX MONTHS ENDED MARCH 31, 2010 AND 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
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CHINA DIGITAL VENTURES CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE SIX MONTHS ENDED MARCH 31, 2010 AND 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
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CHINA DIGITAL VENTURES CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE SIX MONTHS ENDED MARCH 31, 2010 AND 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
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Deposits are summarized as follows: | ||||
As of March 31, 2010 | As of September 30, 2009 | |||
----------------------- | ----------------------- | |||
US$ | US$ | |||
Rental deposits | 285 | 284 | ||
Deposit for IPTV | 124,522 | 124,517 | ||
----------------------- | ----------------------- | |||
124,807 | 124,801 | |||
============== | ============== |
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CHINA DIGITAL VENTURES CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE SIX MONTHS ENDED MARCH 31, 2010 AND 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
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---------------------- | ---------------------- | |||
Cost and Acquisition during year | US$ | US$ | ||
Computers | 13,403 | 13,403 | ||
Furniture, fixture and equipment | 1,434 | 1,434 | ||
----------------------- | ----------------------- | |||
14,837 | 14,837 | |||
Additional | 2,236 | 1,434 | ||
Accumulated depreciation | (4,992) | (2,877) | ||
----------------------- | ----------------------- | |||
12,081 | 11,960 | |||
============== | ============== |
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CHINA DIGITAL VENTURES CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE SIX MONTHS ENDED MARCH 31, 2010 AND 2009 |
(UNAUDITED) |
(Stated in US Dollars) |
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There was no significant difference between reportable income tax and statutory income tax. The gross deferred tax asset balance as of March31, 2010 was approximately $41,348 of which $17,070 was for US federal income tax, $4,328 was for Hong Kong income tax, $14,590 was for China income tax and $5,360 was for Australia income tax. A 100% valuation allowance has been established against the deferred tax asset, as the utilization of the loss carry-forwards cannot reasonably be assured. |
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$ | |||
United States federal income tax rate | 15% | ||
Valuation allowance-US federal income tax | (15%) | ||
---------------------- | |||
Provision for income tax | - | ||
================== | |||
Hong Kong statutory rate | 16.5% | ||
Valuation allowance - Hong Kong Rate | (16.5%) | ||
---------------------- | |||
Provision for income tax | - | ||
================== | |||
China statutory rate | 25% | ||
Valuation allowance - China Rate | (25%) | ||
---------------------- | |||
Provision for income tax | - | ||
================== | |||
Australia statutory rate | 30% | ||
Valuation allowance - Australia Rate | (30%) | ||
---------------------- | |||
Provision for income tax | - | ||
================== |
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Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
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Forward-Looking Statements |
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Critical Accounting Policy and Estimates |
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Overview |
General |
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Overview Telecom Market |
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Telecom Services |
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* | Tiered costing models based on volume and purchase frequency; and | |
* | Prizes, additional compensation and other incentive programs for top resellers' sales people. |
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General |
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Results of Operations |
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The Company has realized revenue of $6,178 for the three months period ended March 31, 2009. The Company incurred a cost of revenue of $2,899, achieving a gross profit of $3,279 for the three months period ended March 31, 2009. We hope to generate additional revenue when we receive more contracts or develop other projects. The Company has realized revenue of $1,127 for the six months period ended March 31, 2010. The Company incurred a cost of revenue of $320, achieving a gross profit of $807 for the six months period ended March 31, 2010. We hope to generate additional revenue when we receive more contracts or develop other projects. The Company has realized revenue of $12,064 for the six months period ended March 31, 2009. The Company incurred a cost of revenue of $5,732, achieving a gross profit of $6,332 for the six months period ended March 31, 2009. We hope to generate additional revenue when we receive more contracts or develop other projects. For the period from March 26, 2007 (date of inception) to March 31, 2010, the Company realized revenue of $31,912, incurred a cost of revenue of $15,731 and achieved a gross profit of $16,181. |
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For the three months period ended March 31, 2009, our gross profit was $3,279 and our total operating expenses were $11,071, all of which were selling, general and administrative expenses. We also had $54 in interest expenses. Our net loss to our shareholders for the three months period ended March 31, 2009 was $7,846. For the six months period ended March 31, 2010, our gross profit was $807 and our total operating expenses were $83,106, all of which were selling, general and administrative expenses. We also had $1,201 in interest expenses, $141 in interest income and loss attributable to minority interest of $14,455. Our net loss to our shareholders for the six months period ended March 31, 2010 was $68,904. For the six months period ended March 31, 2009, our gross profit was $6,332 and our total operating expenses were $16,738, all of which were selling, general and administrative expenses. We also had $54 in interest expenses. Our net loss to our shareholders for the six months period ended March 31, 2009 was $10,460. For the period from March 26, 2007 (date of inception) to March 31, 2010, the accumulated gross profit was $16,181, the total operating expenses was $260,668 which was all selling, general and administrative expenses and had $2,052 in interest expenses, $1,196 in interest income and loss attributable to minority interest of $24,430 and resulting in an accumulated net loss to our shareholders of $220,913. |
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Liquidity and Capital Resources |
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Item 3. Quantitative and Qualitative Disclosures about Market Risk. |
Quantitative and Qualitative Disclosures about Market Risk: |
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Item 4. Controls and Procedures. |
Evaluation of Controls and Procedures: |
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Evaluation of Disclosure Controls and Procedures: |
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Changes in Internal Controls over Financial Reporting: |
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PART II. OTHER INFORMATION |
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| Description |
3.1 | Articles of Incorporation (1) |
3.2 | Bylaws (1) |
10.1 | A letter agreement for the loan advance dated September 30, 2009 (2) |
31.1 | Rule 13a-14(a)/15d14(a) Certification of CEO (Attached Hereto) |
31.2 | Rule 13a-14(a)/15d14(a) Certification of CFO (Attached Hereto) |
32.1 | Section 1350 Certifications (Attached Hereto) |
32.2 | Section 1350 Certifications (Attached Hereto) |
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SIGNATURES |
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By: | /s/ Con Unerkov | |
Name: | Con Unerkov | |
Title: | President and Director | |
(Principal Executive Officer | ||
By: | /s/ Bing He | |
Name: | Bing He | |
Title: | Treasurer and Director | |
(Principal Financial and | ||
Accounting Officer) |
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