RadTek 10K 2014 Annual report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

[X] ANNUAL REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES

EXCHANGE ACT OF 1934

For the fiscal year ended: December 31, 2014

[ ] 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: 000-54152

RADTEK, INC.

(Exact name of registrant in its charter)


Nevada		27-2039490
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification)

9900 Corporate Campus Drive, Suite 3000, Louisville, KY 40223

(Address of principal executive offices, including zip code)

Registrant's Telephone number, including area code: (502) 657-6005

Securities registered pursuant to Section 12(b) of the Act: None

Securities registered pursuant to Section 12(g) of the Act: Common Stock, $.001 par value

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [x]

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

Yes [ ] No [x]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (section 232.406 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 whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the part 90 days.

Yes [x] No [ ]

Indicate by check mark if disclosure of delinquent filers in response to Item 405 of Regulation S-K is not contained hereof, and will not be contained, to will be contained, to the best of registrant’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. [ ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.


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 [ ] No [X]

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 the last business day of the registrant’s most recently completed second fiscal quarter. The market value of the registrant’s voting $.001 par value common stock held by non-affiliates of the registrant was approximately $4,935,955.

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date. The number of shares outstanding of the registrant's only class of common stock, as of April 7, 2015 was 121,336,800 shares of its $.001 par value common stock.

No documents are incorporated into the text by reference.

Radtek, Inc.

Form 10-K

For the Fiscal Year Ended December 31, 2014

Table of Contents


		Page
Part I
Item 1. Business		4
Item 1A. Risk Factors		5
Item 1B. Unresolved Staff Comments		5
Item 2. Properties		5
Item 3. Legal Proceedings		6
Item 4. Mine Safety Disclosures		6

Part II
Item 5. Market for Registrant's Common Equity, Related Stockholders Matters and Issuer Purchases of Equity Securities		7
Item 6. Selected Financial Data		8
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations		8
Item 7A. Quantitative and Qualitative Disclosures about Market Risk		11
Item 8. Financial Statements and Supplementary Data		12
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure		29
Item 9A. Controls and Procedures		29
Item 9B. Other Information		30

Part III
Item 10. Directors, Executive Officers and Corporate Governance		31
Item 11. Executive Compensation		34
Item 12. Securities Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters		35
Item 13. Certain Relationships and Related Transactions, and Director Independence		36
Item 14. Principal Accounting Fees and Services		36

Part IV
Item 15. Exhibits and Financial Statement Schedules		38
Signatures		40

PART I

ITEM 1. BUSINESS

The registrant was originally incorporated in Nevada on December 18, 2009, for the purpose of providing management consulting services to small and medium sized private companies in Taiwan that want to look for business partners, agencies, financing resources, or to become public through an IPO or reverse merger in the United States or Canada.

The registrant was a subsidiary of USChina Channel Inc., and spun off on March 15, 2010. As of March 18, 2013, the registrant changed its name to RadTek, Inc.

On November 26, 2013, the registrant acquired RadTek, Co. Ltd. RadTek, Co., Ltd. was incorporated under the laws of Republic of Korea in May 2001, and is engaged in developing and marketing radiation-imaging system and equipment that employ digital radiography technology. The systems offered are primarily in the line of radiation scanning and related engineering services for users in various fields such as biotechnology, medical, product quality control, and security system. The specific product line includes food inspection systems, X-ray diagnosis related systems, baggage and container inspection systems, and radiation safety engineering. As the market in this field is dominated by high-priced systems for large users, the registrant aims to focus on the niche market of small users by offering low-cost models.

Operations:

The registrant develops and markets radiation-imaging systems and equipment that employs digital radiography technology. The systems offered are primarily radiation scanning and related engineering services for users in fields such as biotech, medical, product quality control, and security.

The registrant’s main business focuses on the Food Inspection System, the Portable X-ray Scan System, and the Container Inspection System.

The Food Inspection System will be sold to producers and distributors of agricultural, marine and livestock products.

The Portable X-ray Scan System will be sold to security companies, non-destruction test companies, government institutions and veterinary hospitals.

The Container Inspection System will be sold to security companies and transportation companies to search for dangerous objects inside shipping containers and packages without requiring them to be opened.

We take orders from our clients for customized products in terms of size and power. These products are made specifically for our client’s needs. Additionally, we provide service and maintenance for all the products that we sell. As the market in this field is dominated by high-priced systems for large users, we focus on the niche market of small users by offering low-cost models.

Competition:

The industry is currently experiencing a limited degree of competition with regard to availability, price, service, quality and location. There are well-established market leaders that are nationally and internationally recognized and which possess substantially greater financial resources and marketing personnel than us. There are also a small number of local or regional vendors. It is also likely that other competitors will emerge in the near future. There is no assurance that we will compete successfully with other established products. We shall compete on the basis of availability, price, service, quality and location once we secure product lines for distribution.

Marketing Strategy:

The registrant’s general marketing strategy is to provide products and services for established clients. We manufacture key components such as semiconductor radiation sensors, radiation detector modules, X-ray sources, and related imaging software. We customize our products and services according to our customer’s needs.

We intend to offer our products and services at various locations through the United States and internationally. We will employ a marketing director who will be primarily responsible for exploiting the opportunities created through promotion.

Employees:

The registrant currently employs six full time employees and four part time employees.

ITEM 1A. RISK FACTORS

Not applicable to a smaller reporting company.

ITEM 1B. UNRESOLVED STAFF COMMENTS

Not applicable.

ITEM 2. PROPERTIES

The registrant’s executive offices, which consist of 1,000 square feet, are located at 9900 Corporate Campus Dr, Suite 3000, Louisville, KY 40223. We currently use office space shared with PEG Inc. and have not entered into a lease for this office at this time. The space provided has no monthly fees at this time.

The registrant also has offices in Korea. These offices consist of approximately 5,000 square feet. They are located at 3F Taejoon B/D, 341-2 Jangdae-dong, Yuseong-gu Daejeon, Republic of Korea. We pay $1,000 per month.

Positive
Negative
Uncertain
Constraining
Legalese
Litigious
Readability	7th grade Avg


Quarter Ended	High Bid	Low Bid
3/31/14	0.10	0.07
6/30/14	0.11	0.09
9/30/14	0.11	0.06
12/31/14	0.25	0.10

3/31/13	0.02	0.02
6/30/13	0.02	0.02
9/30/13	0.04	0.02
12/30/13	0.04	0.03


		2014		2013
Assets
Current assets:
Cash and cash equivalents		$	213,247	$	106,908
Accounts receivable, net			6,295		52,748
Prepaid expenses and other assets			899,729		560,462
Inventories			1,513		-
Total Current assets			1,120,784		720,118

Investment			8,311		4,998
Property and equipment, net			-		-
Intangible assets			88,325		98,303
Security deposits			27,293		28,428
			123,929		131,729

Total assets		$	1,244,713	$	851,847

Liabilities and equity
Current liabilities:
Accounts and other payable		$	355,910	$	157,556
Short-term borrowings			136,463		145,648
Loan from related party			160,000		-
Advances from related party			440,817		249,298
Advance payments on contracts			1,025,051		263,561
Other current liabilities			3,394		93,032
			2,121,635		909,095
Non-current liabilities:
Accrued severance benefits, net			32,683		25,165
			32,683		25,165

Total liabilities			2,154,318		934,260

Equity:
Preferred Stock:
	Authorized: 10,000,000 shares, $0.001 par value
	Issued and outstanding shares: 0
Common stock;
	Authorized: 1,990,000,000 shares, $0.001 par value
	Issued and outstanding: 121,336,800 and 101,336,800 shares


		December 31, 2014		December 31, 2013
Net revenues		$	1,104,710	$	2,549,372

Cost of sales			1,003,675		1,573,541

Gross profit			101,035		975,831

Operating expenses :
Depreciation and Amortization			6,316		11,372
Selling and administrative expenses			1,867,568		421,094

Total Operating expenses			1,873,884		432,466

Gain(Loss) from operations			(1,772,849)		543,365

Other income(expenses) :
Interest expense, net			(8,456)		(6,916)
Loss on investment valuation			-		(22,580)
Foreign exchange transaction gain (loss)			(20,865)		3,399
Other income, net			36,593		6,103
			7,272		(19,994)
Income for the year before tax			(1,765,577)		523,371
Provision for income tax			-		-
Net income			(1,765,577)		523,371

Other Comprehensive income (loss)
	Foreign currency translation adjustments		54,872		25,006
	Gain on investment		3,513		-

Comprehensive income (loss)		$	(1,707,192)	$	548,377

Net income (loss) per common share-basic and diluted		$	(0.01)	$	0.01

Weighted average number of common stock outstanding			120,624,471		70,621,350

RadTek (RDTK) Inactive 10-K2014 FY Annual report

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