Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended |
Dec. 31, 2014 | |
Document And Entity Information | |
Entity Registrant Name | BMB MUNAI INC |
Entity Central Index Key | 924805 |
Document Type | 10-Q |
Document Period End Date | 31-Dec-14 |
Amendment Flag | FALSE |
Current Fiscal Year End Date | -28 |
Is Entity a Well-known Seasoned Issuer? | No |
Is Entity a Voluntary Filer? | No |
Is Entity's Reporting Status Current? | Yes |
Entity Filer Category | Smaller Reporting Company |
Entity Common Stock, Shares Outstanding | 55,787,554 |
Document Fiscal Period Focus | Q3 |
Document Fiscal Year Focus | 2014 |
CONDENSED_BALANCE_SHEETS
CONDENSED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
CURRENT ASSETS | ||
Cash and cash equivalents | $8,638,978 | $8,587,245 |
Total current assets | 8,638,978 | 8,587,245 |
TOTAL ASSETS | 8,638,978 | 8,587,245 |
CURRENT LIABILITIES | ||
Accounts payable | 121,622 | 66,177 |
Deferred distribution payments | 8,537,905 | 8,540,365 |
Total current liabilities | 8,659,527 | 8,606,542 |
SHAREHOLDERS' EQUITY | ||
Preferred stock - $0.001 par value; 20,000,000 shares authorized; no shares issued or outstanding | 0 | 0 |
Common stock - $0.001 par value; 500,000,000 shares authorized; 55,787,554 and 55,787,554 shares outstanding, respectively | 55,788 | 55,788 |
Additional paid in capital | 89,363,319 | 89,363,319 |
Accumulated deficit | -89,439,656 | -89,438,404 |
Total shareholders' equity | -20,549 | -19,297 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $8,638,978 | $8,587,245 |
CONDENSED_BALANCE_SHEETS_Paren
CONDENSED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Mar. 31, 2014 |
SHAREHOLDERS' EQUITY | ||
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, authorized shares | 20,000,000 | 20,000,000 |
Preferred stock, issued shares | 0 | 0 |
Preferred stock, outstanding shares | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, authorized shares | 500,000,000 | 500,000,000 |
Common stock, issued shares | 55,787,554 | 55,787,554 |
Common stock, outstanding shares | 55,787,554 | 55,787,554 |
CONDENSED_STATEMENTS_OF_OPERAT
CONDENSED STATEMENTS OF OPERATIONS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | ||||
REVENUES | $0 | $0 | $0 | $0 |
COSTS AND OPERATING EXPENSES | ||||
General and administrative | 14,767 | 360,596 | 60,948 | 1,450,665 |
Amortization and depreciation | 0 | 28,982 | 0 | 86,946 |
Total costs and operating expenses | 14,767 | 389,578 | 60,948 | 1,537,611 |
LOSS FROM OPERATIONS | -14,767 | -389,578 | -60,948 | -1,537,611 |
OTHER INCOME | ||||
Interest income, net | 1,620 | 58 | 4,892 | 878 |
Total other income | 1,620 | 58 | 4,892 | 878 |
LOSS BEFORE INCOME TAXES | -13,147 | -389,520 | -56,056 | -1,536,733 |
INCOME TAX BENEFIT | 54,804 | 0 | 54,804 | 0 |
NET INCOME / (LOSS) | $41,657 | ($389,520) | ($1,252) | ($1,536,733) |
BASIC AND DILUTED NET LOSS PER COMMON SHARE | $0 | ($0.01) | $0 | ($0.03) |
CONDENSED_STATEMENTS_OF_CASH_F
CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||
Net income (loss) | $41,657 | ($389,520) | ($1,252) | ($1,536,733) |
Adjustments to reconcile net income to net cash used in operating activities: | ||||
Depreciation and amortization | 0 | 86,946 | ||
Changes in operating assets and liabilities: | ||||
Increase/(decrease) in accounts payable | 55,445 | -319,740 | ||
Decrease in taxes payables and accrued liabilities | 0 | -22,568 | ||
Net cash provided by (used in) operating activities | 54,193 | -1,792,095 | ||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||
Net cash provided by investing activities | 0 | 0 | ||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||
Deferred distribution payment | -2,460 | -6,300 | ||
Net cash used in financing activities | -2,460 | -6,300 | ||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 51,733 | -1,798,395 | ||
CASH AND CASH EQUIVALENTS at beginning of period | 8,587,245 | 10,463,531 | ||
CASH AND CASH EQUIVALENTS at end of period | $8,638,978 | $8,665,136 | $8,638,978 | $8,665,136 |
1_DESCRIPTION_OF_BUSINESS
1. DESCRIPTION OF BUSINESS | 9 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
DESCRIPTION OF BUSINESS | BMB Munai, Inc. (the “Company” or “BMB Munai”) is a Nevada corporation that originally incorporated in the State of Utah in 1981. From 2003 to 2011 the Company’s business activities focused on oil and natural gas exploration and production in the Republic of Kazakhstan through its then wholly-owned subsidiary Emir Oil LLP. |
On September 19, 2011 the Company completed the sale of all of its interests in Emir Oil (the “Sale”). | |
Since September 2011 the Company’s principal business operations have been focused on satisfying its post-closing undertakings in connection with the Sale, which were completed in September 2012, winding down its operations in Kazakhstan and exploring opportunities to exploit the expertise of the Company’s management staff and return value to the Company’s stockholders. | |
The Company does not anticipate generating revenue unless it is able to identify and exploit a new business opportunity. No assurance can be given that the Company will be able to identify or exploit a new business opportunity. Further, no assurance can be given that the Company will have the funds available to it that would enable it to take advantage of such opportunity should one be identified. These factors, coupled with the fact that the Company’s current liabilities exceed its current assets, raise substantial doubt about the Company’s ability to continue as a going concern. |
2_SIGNIFICANT_ACCOUNTING_POLIC
2. SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended | |
Dec. 31, 2014 | ||
Notes to Financial Statements | ||
SIGNIFICANT ACCOUNTING POLICIES | Going concern | |
As a result of the Sale, the Company has no subsidiaries and no continuing operations that generate positive cash flow and the Company’s current liabilities exceed its current assets, these factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company plans to continue its efforts to reduce expenses to preserve the minimal funds it has available for as long as possible. | ||
Subsequent event | ||
The Company’s management has evaluated subsequent events through the date the financial statements were issued and has found no subsequent events to report. | ||
Use of estimates | ||
The preparation of unaudited condensed financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the unaudited financial statements and revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates and affect the results reported in these unaudited financial statements. | ||
Concentration of credit risk | ||
Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash. The Company places its cash with high credit quality financial institutions. | ||
Functional currency | ||
The Company makes its principal investing and financing transactions in U.S. Dollars and the U.S. Dollar is therefore its functional currency. | ||
Income taxes | ||
Provisions for income taxes are based on taxes payable or refundable for the current year and deferred taxes. Deferred taxes are provided on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, and tax carryforwards. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. | ||
Cash and cash equivalents | ||
The Company considers all demand deposits, money market accounts and marketable securities purchased with an original maturity of three months or less to be cash and cash equivalents. The fair value of cash and cash equivalents approximates their carrying amounts due to their short-term maturity. | ||
Other fixed assets | ||
Other fixed assets are valued at historical cost adjusted for impairment loss less accumulated depreciation. Historical cost includes all direct costs associated with the acquisition of the fixed assets. | ||
Depreciation of other fixed assets is calculated using the straight-line method based upon the following estimated useful lives: | ||
Vehicles | 3-5 years | |
Office equipment | 3-5 years | |
Software | 3-4 years | |
Furniture and fixtures | 2-7 years | |
Maintenance and repairs are charged to expense as incurred. Renewals and betterments are capitalized as leasehold improvements, which are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of the lease. | ||
Other fixed assets of the Company are evaluated annually for impairment. If the sum of expected undiscounted cash flows is less than net book value, unamortized costs of other fixed assets will be reduced to a fair value. Based on the Company’s analysis at December 31, 2014 no impairment of other assets is necessary. | ||
Income (Loss) per common share | ||
Basic income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted income (loss) per share reflects the potential dilution that could occur if all contracts to issue common stock were converted into common stock, except for those that are anti-dilutive. | ||
Recent accounting pronouncements | ||
In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This standard sets forth management’s responsibility to evaluate, each reporting period, whether there is substantial doubt about our ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for annual reporting periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. We are currently evaluating this new standard and after adoption, we will incorporate this guidance in our assessment of going concern. |
3_CASH_AND_CASH_EQUIVALENTS
3. CASH AND CASH EQUIVALENTS | 9 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
CASH AND CASH EQUIVALENTS | As of December 31, 2014 and March 31, 2014 cash and cash equivalents included deposits in U.S. banks in the amount of $8,638,978 and $8,587,245, respectively. The Company’s deposits in U.S. banks are in non-FDIC insured accounts which means they are not insured to the $250,000 FDIC insurance limit. |
4_SHAREHOLDERS_EQUITY
4. SHAREHOLDER'S EQUITY | 9 Months Ended |
Dec. 31, 2014 | |
Notes to Financial Statements | |
SHAREHOLDER'S EQUITY | Shareholder distributions |
On October 24, 2011 the Company made an initial cash distribution of $1.04 per share to common stockholders of record on October 10, 2011 from the proceeds of the Sale. The total amount calculated for this distribution to common stockholders was $58,019,056. | |
Following the completion of its post-closing obligations in connection with the Sale, on October 30, 2012 the Company declared and made a second cash distribution of $0.30 per share to common stockholders of record on October 15, 2012. The total amount calculated for this distribution to common stockholders was $16,736,266. | |
As of December 31, 2014 the amount paid from the first distribution was $51,398,433 with $6,620,623 payable, and the amount paid from the second distribution was $14,818,983 with $1,917,282 payable. These payables have been accrued and included in deferred distribution payments on the balance sheet. |
5_INCOME_TAXES
5. INCOME TAXES | 9 Months Ended |
Dec. 31, 2014 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | During the quarter ended December 31, 2014 the Company received tax refunds of previously overpaid estimated tax payments in amount of $54,804. |
6_EARNINGS_PER_SHARE_INFORMATI
6. EARNINGS PER SHARE INFORMATION | 9 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Notes to Financial Statements | ||||||||
EARNINGS PER SHARE INFORMATION | The calculation of basic earnings per share is based on the following data: | |||||||
Three months ended | Nine months ended | |||||||
December 31, 2014 | 31-Dec-13 | December 31, 2014 | December 31, 2013 | |||||
Net income/(loss) | $41,657 | ($389,520) | ($1,252) | ($1,536,733) | ||||
Basic weighted-average common shares outstanding | 55,787,554 | 55,787,554 | 55,787,554 | 55,787,554 | ||||
Basic loss per common share | $0.00 | $ (0.01) | $0.00 | $ (0.03) | ||||
As of December 31, 2014 and 2013 there were no options, warrants, or restricted stock grants outstanding. |
2_SIGNIFICANT_ACCOUNTING_POLIC1
2. SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended | |
Dec. 31, 2014 | ||
Significant Accounting Policies Policies | ||
Going concern | As a result of the Sale, the Company has no subsidiaries and no continuing operations that generate positive cash flow and the Company’s current liabilities exceed its current assets, these factors raise substantial doubt about the Company’s ability to continue as a going concern. The Company plans to continue its efforts to reduce expenses to preserve the minimal funds it has available for as long as possible. | |
Subsequent event | The Company’s management has evaluated subsequent events through the date the financial statements were issued and has found no subsequent events to report. | |
Use of estimates | The preparation of unaudited condensed financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect certain reported amounts of assets and liabilities and the disclosures of contingent assets and liabilities at the date of the unaudited financial statements and revenues and expenses during the reporting period. Accordingly, actual results could differ from those estimates and affect the results reported in these unaudited financial statements. | |
Concentration of credit risk | Financial instruments that potentially subject the Company to a concentration of credit risk consist principally of cash. The Company places its cash with high credit quality financial institutions. | |
Functional Currency | The Company makes its principal investing and financing transactions in U.S. Dollars and the U.S. Dollar is therefore its functional currency. | |
Income Taxes | Provisions for income taxes are based on taxes payable or refundable for the current year and deferred taxes. Deferred taxes are provided on differences between the tax bases of assets and liabilities and their reported amounts in the financial statements, and tax carryforwards. Deferred tax assets and liabilities are included in the financial statements at currently enacted income tax rates applicable to the period in which the deferred tax assets and liabilities are expected to be realized or settled. As changes in tax laws or rates are enacted, deferred tax assets and liabilities are adjusted through the provision for income taxes. | |
Cash and cash equivalents | The Company considers all demand deposits, money market accounts and marketable securities purchased with an original maturity of three months or less to be cash and cash equivalents. The fair value of cash and cash equivalents approximates their carrying amounts due to their short-term maturity. | |
Other fixed assets | Other fixed assets are valued at historical cost adjusted for impairment loss less accumulated depreciation. Historical cost includes all direct costs associated with the acquisition of the fixed assets. | |
Depreciation of other fixed assets is calculated using the straight-line method based upon the following estimated useful lives: | ||
Vehicles | 3-5 years | |
Office equipment | 3-5 years | |
Software | 3-4 years | |
Furniture and fixtures | 2-7 years | |
Maintenance and repairs are charged to expense as incurred. Renewals and betterments are capitalized as leasehold improvements, which are amortized on a straight-line basis over the shorter of their estimated useful lives or the term of the lease. | ||
Other fixed assets of the Company are evaluated annually for impairment. If the sum of expected undiscounted cash flows is less than net book value, unamortized costs of other fixed assets will be reduced to a fair value. Based on the Company’s analysis at December 31, 2014 no impairment of other assets is necessary. | ||
Income (Loss) per common share | Basic income (loss) per common share is computed by dividing net income (loss) by the weighted-average number of common shares outstanding during the period. Diluted income (loss) per share reflects the potential dilution that could occur if all contracts to issue common stock were converted into common stock, except for those that are anti-dilutive. | |
Recent accounting pronouncements | In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements-Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. This standard sets forth management’s responsibility to evaluate, each reporting period, whether there is substantial doubt about our ability to continue as a going concern, and if so, to provide related footnote disclosures. The standard is effective for annual reporting periods ending after December 15, 2016 and interim periods within annual periods beginning after December 15, 2016. We are currently evaluating this new standard and after adoption, we will incorporate this guidance in our assessment of going concern. |
2_SIGNIFICANT_ACCOUNTING_POLIC2
2. SIGNIFICANT ACCOUNTING POLICIES (Tables) | 9 Months Ended | |
Dec. 31, 2014 | ||
Notes to Financial Statements | ||
Depreciation of other fixed assets | Vehicles | 3-5 years |
Office equipment | 3-5 years | |
Software | 3-4 years | |
Furniture and fixtures | 2-7 years |
6_EARNINGS_PER_SHARE_INFORMATI1
6. EARNINGS PER SHARE INFORMATION (Tables) | 9 Months Ended | |||||||
Dec. 31, 2014 | ||||||||
Earnings Per Share Information Tables | ||||||||
Calculation Of The Basic Earnings Per Share | Three months ended | Nine months ended | ||||||
December 31, 2014 | 31-Dec-13 | December 31, 2014 | December 31, 2013 | |||||
Net income/(loss) | $41,657 | ($389,520) | ($1,252) | ($1,536,733) | ||||
Basic weighted-average common shares outstanding | 55,787,554 | 55,787,554 | 55,787,554 | 55,787,554 | ||||
Basic loss per common share | $0.00 | $ (0.01) | $0.00 | $ (0.03) |
2_SIGNIFICANT_ACCOUNTING_POLIC3
2. SIGNIFICANT ACCOUNTING POLICIES (Details) | 9 Months Ended |
Dec. 31, 2014 | |
Vehicles | Minimum | |
Property Plant And Equipment Useful Life | |
Property Plant And Equipment Useful Life | 3 years |
Vehicles | Maximum | |
Property Plant And Equipment Useful Life | |
Property Plant And Equipment Useful Life | 5 years |
Office Equipment | Minimum | |
Property Plant And Equipment Useful Life | |
Property Plant And Equipment Useful Life | 3 years |
Office Equipment | Maximum | |
Property Plant And Equipment Useful Life | |
Property Plant And Equipment Useful Life | 5 years |
Software | Minimum | |
Property Plant And Equipment Useful Life | |
Property Plant And Equipment Useful Life | 3 years |
Software | Maximum | |
Property Plant And Equipment Useful Life | |
Property Plant And Equipment Useful Life | 4 years |
Furniture And Fixtures | Minimum | |
Property Plant And Equipment Useful Life | |
Property Plant And Equipment Useful Life | 2 years |
Furniture And Fixtures | Maximum | |
Property Plant And Equipment Useful Life | |
Property Plant And Equipment Useful Life | 7 years |
4_SHAREHOLDERS_EQUITY_Details_
4. SHAREHOLDERS' EQUITY (Details Narrative) (USD $) | Dec. 31, 2014 |
Notes to Financial Statements | |
Amount paid from the first distribution | $51,398,433 |
Amount payable from the first distribution | 6,620,623 |
Amount paid from the second distribution | 14,818,983 |
Amount payable from the second distribution | $1,917,282 |
6_EARNINGS_PER_SHARE_INFORMATI2
6. EARNINGS PER SHARE INFORMATION (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | |
EARNINGS PER SHARE INFORMATION | ||||
Net income/(loss) | $41,657 | ($389,520) | ($1,252) | ($1,536,733) |
Basic weighted-average common shares outstanding | 55,787,554 | 55,787,554 | 55,787,554 | 55,787,554 |
Basic loss per common share | $0 | ($0.01) | $0 | ($0.03) |