UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K /A (2)
Current Report
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES ACT OF
1934.
Date of Report (Date of Earliest event reported):
June 20, 2005
Commission file number 000-27825
EXIM INTERNET GROUP, INC.
(formerly Global Trade Portal Corporation;
Hydro Environmental Resources, Inc.)
(Exact Name of Registrant as specified in its charter)
Nevada 73-1552304
(State or other jurisdiction of (IRS Employer
Incorporation or organization) Identification Number)
7683 SE 27TH Street
Mercer Island, Washington 98040
(Address of principal executive offices)
(City, State and Zip Code)
(866)571-0200
Company's telephone number, including area code
ii
ITEM 4.0 CHANGES IN REGISTRANT'S CERTIFYING ACCOUNTANT:
(1) Previous Independent Auditors: Cordovano & Honeck, LLP
(i) Effective June 20, 2005, Exim Internet Group, Inc., formerly Global Trade
Portal Corporation and Hydro Environmental Resources, Inc, (the Company)
determined to change the Company's independent accountants, and, accordingly,
ended the engagement of Cordovano & Honeck, LLP, in that role and retained
Madsen & Associates, CPA's, Inc. as its independent accountants. The Audit
Committee of the Board of Directors (the "Audit Committee") and the Board of
Directors of the Company approved the decision to change independent accountants
and Cordovano & Honeck, LLP were dismissed as the Company's independent
auditors.
(ii) Management of Exim Internet Group, Inc., formerly Global Trade Portal
Corporation and Hydro Environmental Resources, Inc., is unaware of any
disagreements with Cordovano & Honeck, LLP related to any matter of accounting
principles or practices, financial statement disclosure or auditing scope or
procedure from their engagement through June 20, 2005 and for the most recent
fiscal year of December 31, 2003 through June 20, 2005 when Cordovano & Honeck,
LLP was terminated.
(iii) The Company's Board of Directors participated in and approved the
decision to change independent accountants. Cordovano & Honeck, LLP's audit
report on the financial statements for the years ended December 31, 2003 and for
the year ended December 31, 2002 contained no adverse opinion or disclaimer of
opinion and was not qualified or modified as to audit scope or accounting
principles, with the exception of the following "going concern" qualification
for the December 31, 2002 and December 31, 2003 audited financial statements.
For the financial period ending December 31, 2003, Cordovano and Honeck, LLP
reported the following:
"BASIS OF PRESENTATION
The accompanying financial statements have been prepared on a going concern
basis, which contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business. As shown in the accompanying
financial statements, the Company is a development stage company that is in
default on certain loans at December 31, 2003 and has suffered significant
operating losses since inception. These factors, among others, may indicate that
the Company will be unable to continue as a going concern for reasonable period
of time.
The financial statements do not include any adjustments relating to the
recoverability and classification of liabilities that might be necessary should
the Company be unable to continue as a going concern. The Company's continuation
as a going concern is dependent upon its ability to generate sufficient cash
flow to meet its obligations on a timely basis and ultimately to attain
profitability. The Company's management intends to satisfy cash requirements
through the sale of its common stock and cash advances from officers and
principal shareholders in exchange for debt or restricted common stock. In
addition, management plans to continue the policy of issuing common stock in
exchange for services. Management is also considering (1) a private offering and
sale of common stock, (2) a public offering and sale of common stock, or (3) a
combination of the two previous options. The Company's future success is
dependent upon its ability to create an effective product and provide
competitive services on a timely and cost-effective basis and, ultimately, to
attain profitability.
1
DEVELOPMENT STAGE COMPANY
Hydro Environmental Resources, Inc. (the "Company") is in the development stage
in accordance with Financial Accounting Standards Board ("FASB") Statements of
Financial Accounting Standards ("SFAS") No. 7 "Accounting and Reporting by
Development Stage Enterprises"."
For the financial period ending December 31, 2002, Cordovano & Honeck, LLP
reported the following:
"Basis of presentation
The accompanying financial statements have been prepared on a going concern
basis, which contemplates the realization of assets and the satisfaction of
liabilities in the normal course of business. As shown in the accompanying
financial statements, the Company is a development stage company that is in
default on certain loans at December 31, 2002 and has suffered significant
operating losses since inception. These factors, among others, may indicate that
the Company will be unable to continue as a going concern for reasonable period
of time.
The financial statements do not include any adjustments relating to the
recoverability and classification of liabilities that might be necessary should
the Company be unable to continue as a going concern. The Company's continuation
as a going concern is dependent upon its ability to generate sufficient cash
flow to meet its obligations on a timely basis and ultimately to attain
profitability. The Company's management intends to satisfy cash requirements
through cash infusions from officers and principal shareholders in exchange for
debt or restricted common stock. In addition, management plans to continue the
policy of issuing common stock in exchange for services. Management is also
considering (1) a private offering and sale of common stock, (2) a public
offering and sale of common stock, or (3) a combination of the two previous
options. The Company's future success is ultimately dependent upon its ability
to create and provide effective and competitive services on a timely and
cost-effective basis.
2
Development stage company
Hydro Environmental Resources, Inc. (the "Company") is in the development stage
in accordance with Financial Accounting Standards Board ("FASB") Statements of
Financial Accounting Standards ("SFAS") No. 7 "Accounting and Reporting by
Development Stage Enterprises".
(iv) In connection with its audits for the two most recent fiscal years and
review of financial statements through June 20, 2005, there have been no
disagreements with Cordovano & Honeck, LLP on any matter of accounting
principles or practices, financial statement disclosure, or auditing scope or
procedure, which disagreements if not resolved to the satisfaction of Cordovano
& Honeck, LLP would have caused them to make reference thereto in their report
on the financial statements.
(v) During the two most recent fiscal years of December 31, 2002 and 2003, and
the interim period to June 20, 2005, there have been no reportable events with
the Company as set forth in Item 304(a(i)(v) of Regulation S-K.
(vi) The Company requested that Cordovano & Honeck, LLP furnish it with a letter
addressed to the SEC stating whether or not it agrees with the above statements.
(2) New Independent Accountants:
(i) The Company engaged Madsen & Associates, CPA's Inc., Inc., Murray, Utah as
its new independent auditors as of June 20, 2005. Prior to such date,
the Company, did not consult with Madsen & Associates, CPA's, Inc. regarding (i)
the application of accounting principles, (ii) the type of audit opinion that
might be rendered by Madsen & Associates, CPA's, Inc, or (iii) any other matter
that was the subject of a disagreement between the Company and its former
auditor as described in Item 304(a)(1)(iv) of Regulation S-B.
October 27, 2005 EXIM INTERNET GROUP, INC.
By /s/ Mr. Nicholas Alexander
------------------------------
Mr. Nicholas Alexander, Secretary and
Director