UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB/A
|X| QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
OF 1934
FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2004
OR
|_| TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
FOR THE TRANSITION PERIOD FROM __________ TO
005-78248
(Commission file number)
GLOBAL PHARMATECH, INC.
(Exact name of small business issuer as specified in its charter)
DELAWARE
(State or other jurisdiction of incorporation or organization)
33-0976805
(IRS Employer Identification No.)
89 Ravine Edge Drive, Richmond Hill, Ontario, Canada L4E 4J6
(Address of principal executive offices)
(905) 787-8225
(Issuer's telephone number)
(Former name, former address and former fiscal year,
if changed since last report)
CLASS OUTSTANDING AS OF MARCH 8, 2005
----- -------------------------------
COMMON STOCK, $.0001 PAR VALUE 3,415,627
Transitional Small Business Disclosure Format (check one): |_| Yes |X| No
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GLOBAL PHARMATECH, INC. (F/K/A AUTOCARBON, INC.)
FORM 10-QSB
JUNE 30, 2004
INDEX
Page
Part I - FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets..........................................2
Consolidated Statements of Operations................................3
Consolidated Statements of Stockholders' Deficit.....................4
Consolidated Statements of Cash Flows................................5
Notes to Consolidated Financial Information..........................6
Item 2. Management's Discussion & Analysis..................................10
Item 3. Controls and Procedures.............................................11
Part II - OTHER INFORMATION
Item 1. Legal Proceedings...................................................11
Item 2. Changes In Securities...............................................11
Item 3. Defaults Upon Senior Securities.....................................11
Item 4. Submission Of Matters To A Vote Of Security Holders.................11
Item 5. Other Information...................................................11
Item 6. Exhibits and Reports on Form 8-K....................................11
Signatures...................................................................12
Certifications...............................................................12
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
To the Board of Directors and Stockholders
Global Pharmatech, Inc. (F/K/A Autocarbon, Inc.) and Subsidiary
I have reviewed the accompanying consolidated balance sheet of Global
Pharmatech, Inc. (F/K/A Autocarbon, Inc.) and Subsidiary (a development stage
company) as of June 30, 2004, and the related consolidated statements of
operations for the three-month periods ended June 30, 2004 and 2003 and for the
period from June 26, 2001 (Inception) to June 30, 2004, changes in stockholders'
deficit for the three-month periods ended June 30, 2004 and 2003 and for the
period from June 26, 2001 (Inception) to June 30, 2004, and cash flows for the
three-month periods ended June 30, 2004 and 2003 and for the period from June
26, 2001 (Inception) to June 30, 2004. These interim financial statements are
the responsibility of the Company's management.
I conducted my review in accordance with the standards of the Public Company
Accounting Oversight Board (United States). A review of interim financial
information consists principally of applying analytical procedures and making
inquiries of persons responsible for financial and accounting matters. It is
substantially less in scope than an audit conducted in accordance with the
standards of the Public Company Accounting Oversight Board, the objective of
which is the expression of an opinion regarding the financial statements taken
as a whole. Accordingly, I do not express such an opinion.
Based on my review, I am not aware of any material modifications that should to
the accompanying consolidated financial statements for them to be in conformity
with generally accepted accounting principles.
The accompanying consolidated financial statements have been prepared assuming
that the Company will continue as a going concern. As discussed in Note 1 to the
financial statements, the Company has suffered recurring losses from operations
and has a stockholders' deficit that raises substantial doubt about its ability
to continue as a going concern. Management's plans in regard to these matters
are also described in Note 1. The financial statements do not include any
adjustments that might result from the outcome of this uncertainty.
Aaron Stein CPA
Woodmere, New York
March 4, 2005
1
GLOBAL PHARMATECH, INC. (F/K/A AUTOCARBON, INC.) AND SUBSIDIARY
(A Development Stage Company)
BALANCE SHEET
JUNE 30, 2004
(Unaudited)
ASSETS
Current Assets
Cash and Cash Equivalents $ --
-----------
Total current assets $ --
-----------
$ --
===========
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities
Shares Not Issued $ 1,200
Advance From Shareholders 51,114
-----------
Total Current Liabilities 52,314
STOCKHOLDERS' DEFICIT
Common Stock, $.0001 par value,
100,000,000 shares authorized,
33,056,185 issued and outstanding $ 3,306
Additional Paid-in Capital 1,011,901
Deficit Accumulated During the Development Stage (1,067,521)
-----------
Total Stockholders' Deficit (52,314)
-----------
$ --
===========
See accompanying notes to consolidated financial statements
2
GLOBAL PHARMATECH, INC. (F/K/A AUTOCARBON, INC.) AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
June 26, 2001
Three Months Three Months (Inception) to
Ended Ended June 30,
June 30, 2004 June 30, 2003 2004
----------- ------------ ------------
(Unaudited) (Unaudited) (Unaudited)
Revenues $ -- $ -- $ --
General and Administrative Expenses -- -- --
----------- ------------ ------------
Income (Loss) Before Discontinued
Operations Net of Income Taxes of $ -0- -- -- --
----------- ------------ ------------
Discontinued Operations, Net of Income
Taxes of $-0- -- (9,129) (1,065,561)
Expenses (Income) in Connection With
Discontinued Operations, Net of Income
Taxes of $-0- -- 9,400 1,960
----------- ------------ ------------
Net Loss $ -- $ (18,529) $ (1,067,521)
=========== ============ ============
Loss Per Share
Basic $ -- (0.01) (0.03)
=========== ============ ============
Weighted Average Number of
Common Shares Outstanding 33,056,185 1,357,677 33,056,185
=========== ============ ============
See accompanying notes to consolidated financial statements.
3
GLOBAL PHARMATECH, INC. (F/K/A AUTOCARBON, INC.) AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
Accumulated
Deficit
Additional During the
Common Stock Paid-In Development
Shares Amount Capital Stage Total
----------- ----------- ----------- ----------- -----------
Common stock issued at inception -
for services rendered 170,000 $ 17 $ 56,933 $ -- $ 56,950
Issuance of common stock - private
placement July 1 - September 30, 2001 5,185 1 129,599 -- 129,600
Issuance of common stock - private
placement - November 1 - November 30, 2001 2,280 -- 57,000 -- 57,000
Issuance of common stock -
for services rendered 30,000 3 9,997 -- 10,000
Issuance of common stock -
for services rendered 1,200 -- 30,000 -- 30,000
Net loss - year ended March 31, 2002 -- -- (425,932) (425,932)
----------- ----------- ----------- ----------- -----------
Balance - March 31, 2002 208,665 21 283,529 (425,932) (142,382)
Common stock issued 8,800 1 219,999 -- 220,000
Issuance of common stock -
for services rendered 12,900 1 317,499 -- 317,500
Common stock issued 1,200 -- 15,000 -- 15,000
Exercise of stock options 1,000 -- 12,500 -- 12,500
Issuance of common stock - private
placement - January 6 - January 30, 2003 993,520 99 49,577 -- 49,676
Net loss-year ended March 31, 2003 -- -- -- (607,276) (607,276)
----------- ----------- ----------- ----------- -----------
Balance-March 31, 2003 1,226,085 122 898,104 (1,033,208) (134,982)
Issuance of common stock-
for services rendered 25,000 3 13,243 -- 13,246
Common stock issued 200,000 20 9,980 -- 10,000
Issuance of stock for acquisition of subsidiary 31,295,000 3,130 (3,130) -- --
Rescission of common stock (9,900) (1) 1 -- --
Issuance of stock for settlement of accounts payable 320,000 32 93,703 -- 93,735
Net loss- year ended March 31, 2004 -- -- -- (34,313) (34,313)
----------- ----------- ----------- ----------- -----------
Balance-March 31, 2004 33,056,185 3,306 1,011,901 (1,067,521) (52,314)
Net loss - quarter ended June 30, 2004 -- -- -- -- --
----------- ----------- ----------- ----------- -----------
Balance - June 30, 2004 33,056,185.00 $ 3,306 $ 1,011,901 $(1,067,521) $ (52,314)
=========== =========== =========== =========== ===========
See accompanying notes to consolidated financial statements.
4
GLOBAL PHARMATECH, INC. (F/K/A AUTOCARBON, INC.) AND SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
June 26, 2001
Three Months Three Months (Inception) to
Ended Ended June 30,
June 30, 2004 June 30, 2003 2004
----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited)
Cash Flows from Operating Activities:
Net Loss $ -- $ (18,529) $(1,067,521)
Adjustments to reconcile net loss to cash
used in operating activities
Issuance of common stock for services -- 13,246 521,431
Depreciation -- -- 8,575
----------- ----------- -----------
-- (5,283) (537,515)
Changes in Assets and Liabilities
(Increase) decrease in:
Accounts Receivable -- -- --
Increase (decrease) in:
Accounts Payable -- (4,976) --
Deferred Revenue -- -- --
Customer Deposits Payable -- -- --
----------- ----------- -----------
Net Cash Used in Operating Activities -- (10,259) (537,515)
----------- ----------- -----------
Cash Flows from Investing Activities
Purchase of fixed assets - computer software -- -- (34,300)
Write-off of net assets of discontinued -
operation -- -- 25,725
----------- ----------- -----------
Net Cash Used in Investing Activities -- -- (8,575)
----------- ----------- -----------
Cash Flows from Financing Activities
Proceeds from issuance of common stock and options -- 10,000 493,776
Advance from shareholders -- -- 51,114
Payment for shares not issued -- -- 1,200
----------- ----------- -----------
Net Cash Provided by Financing Activities -- 10,000 546,090
----------- ----------- -----------
Net increase(decrease) in cash -- (259) --
Cash at beginning of periods -- 284 --
----------- ----------- -----------
Cash at end of periods $ -- $ 25 $ --
=========== =========== ===========
See accompanying notes to consolidated financial statements
5
GLOBAL PHARMATECH, INC. (F/K/A AUTOCARBON, INC.) AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1: GENERAL ORGANIZATION, BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation
The accompanying unaudited consolidated financial statements have been
prepared in accordance with accounting principles generally accepted in
the United States of America for interim financial statements and the
instructions to Form 10-QSB related to interim period financial
statements. Accordingly, these financial statements do not include
certain information and footnotes required by accounting principles
generally accepted in the United States of America for complete
financial statements. However, the accompanying unaudited financial
statements contain all adjustments (consisting only of normal recurring
accruals) which, in the opinion of management, are necessary in order
to make the financial statements not misleading. The results of
operations for interim periods are not necessarily indicative of the
results to be expected for the full year. The interim financial
statements should be read in conjunction with the financial statements
and related notes included in the Company's Form 10-KSB for the year
ended March 31, 2004
Organization
GlobalPharmatech, Inc. (formerly Autocarbon, Inc. and previously
Autocarbon.com, Inc.) (the "Company") was incorporated on June 26, 2001
under the laws of the State of Delaware as Autocarbon.com, Inc. On
October 25, 2002 Autocarbon, Inc. was incorporated under the laws of
the State of Delaware and became a wholly owned subsidiary of
Autocarbon.com, Inc. and was merged into Autocarbon.com, Inc. on
October 28, 2002. The surviving corporation, Autocarbon.com, Inc.
changed its name to Autocarbon, Inc. (see Note 3)
On January 26, 2004 the Board of Directors by unanimous consent elected
a new President and appointed a new Secretary of the Company.
On February 15, 2004 two members of the Board of Directors resigned
their respective positions.
Business
The Company is engaged in the sale and marketing of carbon fiber and
composite products. The Company's focus has historically been on the
auto industry and the many different types of components consisting of
wheels and other body parts that are used in the production of
automobiles. The Company has marketed and sold products manufactured
for the Company by Rocket Composites, Ltd., a privately owned company
that was located in the United Kingdom that was wholly owned,
controlled and operated by the Company's Chairman, James Miller,
pursuant to a five-year distribution agreement. The distribution
agreement with Rocket has been terminated and Rocket has been placed in
liquidation. As a result, the Company has had to secure other sources
for product manufacturing. In order to do so, the Company had entered
into a share exchange agreement with Autocarbon Ltd. and the
shareholders of Autocarbon Ltd., pursuant to which the Company had
agreed to purchase all of the issued and outstanding capital stock of
Autocarbon Ltd. in exchange for an aggregate of 9,447,160 shares of the
Company. Autocarbon Ltd. is a privately owned company located in the
United Kingdom, in which James Miller; the Company's Chairman is a
minority shareholder. Due to Autocarbon Ltd's inability to fulfill the
terms of the share exchange agreement on March 22, 2004, the Directors
of the Company have deemed this transaction null and void. As A result
of the aforementioned facts the Company has determined to discontinue
virtually all of its operations and will seek to effectuate an
acquisition or merge into another business entity. The Company has
negotiating settlement agreements with all of its creditors.
On January 19, 2004 the Company entered into a stock purchase agreement
and plan of reorganization to acquire all of the issued and outstanding
shares of New Concept Nutriceuticals, Inc. (NCN) in a transaction
intended to qualify as a tax-free exchange pursuant to section
368(a)(1)(B) of the Internal Revenue Code of 1986, as amended. NCN will
be a wholly owned subsidiary of the Company. NCN is in the business of
offering for sale weight management and nutritional supplement products
to the general public.
6
GLOBAL PHARMATECH, INC. (F/K/A AUTOCARBON, INC.) AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1: GENERAL, ORGANIZATION, BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES,
CONTINUED
Going concern considerations
The accompanying consolidated financial statements have been prepared
assuming that the Company will continue as a going concern. The Company
has no operating history nor any revenues or earnings from operations.
The Company's continued existence is dependent upon its ability to
resolve its liquidity problems, principally by obtaining additional
debt financing and equity capital until such time the Company becomes
profitable or effectuates a merger or acquisition by or into a
profitable company. The lack of financial resources and liquidity
raises substantial doubt about its ability to continue as a going
concern. The financial statements do not include any adjustments that
might result from the outcome of this uncertainty.
Significant accounting policies
USE OF ESTIMATES IN FINANCIAL STATEMENTS - Management uses estimates
and assumptions in preparing these financial statements in accordance
with generally accepted accounting principles. Those estimates and
assumptions affect the reported amounts of assets and liabilities, the
disclosure of contingent assets and liabilities, and the reported
revenue and expenses. Actual results could vary from the estimates that
were used.
CASH AND CASH EQUIVALENTS - For purposes of reporting cash flows, the
Company considers all cash accounts, which are not subject to
withdrawal restrictions or penalties, as cash and equivalents in the
accompanying balance sheet.
FIXED ASSETS - Fixed assets consists of CAD production software stated
at cost. Major expenditures that substantially increase the useful
lives are capitalized. Maintenance, repairs and minor renewals are
expensed as incurred. When assets are retired or otherwise disposed of,
their costs and related accumulated amortization are removed from the
accounts and resulting gains or losses are included in income.
Amortization will be provided on a straight- line basis over the
estimated useful lives of the assets.
DEFERRED REVENUE - Deferred revenue represents amounts received from
customers for tooling costs that will be amortized over an estimated
number of units delivered pursuant to the customers purchase order.
INCOME TAXES - Any provision (benefit) for income taxes is computed
based on the loss before income tax included in the Statement of
Operations. The asset and liability approach is used to recognize
deferred tax assets and liabilities for the expected future tax
consequences of temporary differences between the carrying amounts and
the tax bases of assets and liabilities. At present the Company has a
benefit due to a net tax loss carry forward. The benefit has been fully
reserved due to the uncertainty of its use. The Company has a tax net
operating loss of $1,033,208 that may be carried over and utilized
against taxable income in future years.
EARNINGS PER COMMON SHARE - Basic earnings per share are computed using
the weighted average number of shares outstanding during the year.
Basic earnings per share also exclude any dilutive effects of options,
warrants and convertible securities. Diluted net loss per share does
not include options, warrants or convertible securities, as they would
be anti-dilutive.
7
GLOBAL PHARMATECH, INC. (F/K/A AUTOCARBON, INC.) AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2: STOCKHOLDERS' DEFICIT
Authorized Stock
The Company is authorized to issue 100,000,000 shares of common stock
with a par value of $0.0001 per share.
Private Placement
The Company, from July 1, 2001 through September 30, 2001 offered for
sale 40,000 Units at a value of $0.50 per Unit consisting of one share
of common stock and one warrant to purchase one additional share of
common stock at a value of $0.25 in a "private placement" pursuant to
Regulation D, Rule 506 of the Securities Act of 1933.
The Company, from November 1, 2001 through November 30, 2001 offered
for sale an additional 40,000 Units at a value of $0.50 per Unit
consisting of one share of common stock and one warrant to purchase one
additional share of common stock at a value of $0.25 in a "private
placement" pursuant to Regulation D, Rule 506 of the Securities Act of
1933.
The Company, from January 6, 2003 through January 30, 2003 offered for
sale 20,000 Units at a value of $.05 per unit consisting of one share
of common stock and one common stock purchase warrant.
Common Stock Issued for Services
The Company issued common stock to various individuals and companies
(non- employees) in return for services rendered. 170,000 shares of
common stock along with warrants to acquire an additional 37,500 shares
of common stock at a value of $0.25 were issued.
The Company has determined that the value of the common stock issued is
more reliably determined based on the value of the services rendered.
All services were provided prior to the Private Placement. The 170,000
shares of common stock were valued at $56,950.
Legal and consulting services valued at $10,000 were paid for with the
issuance of 30,000 shares of common stock and warrants to acquire an
additional 15,000 shares of common stock at a value of $0.25.
Additionally, $30,000 of marketing, and promotional expenses was paid
for with the issuance of 1,200 shares of common stock.
Consulting services valued at $317,500 were paid for with the issuance
of 12,900 shares of common stock.
8
GLOBAL PHARMATECH, INC. (F/K/A AUTOCARBON, INC.) AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 2: STOCKHOLDERS' DEFICIT, CONTINUED
The Company issued 31,295,000 shares of common stock to the
shareholders of New Concept Nutriceuticals, Inc. (NCN) in exchange for
all of the issued and outstanding shares of NCN. The shares were
exchanged on the basis of 10 shares of the Company for each share owned
of NCN. The Company's President owned 3,000,000 shares of NCN at the
time of this transaction. As a result of this transaction 30,000,000
shares of the Company were issued to the Company's President.
The Company issued 320,000 shares of common stock in settlement with
creditors who collectively were owed $93,735.
Individuals who were both Officers and Directors received 66,850 shares
of common stock valued at $22,395, individuals who were solely
Directors received 5,000 shares of common stock valued at $1,675, and
others who are neither Officer nor Directors received 98,150 shares of
common stock valued at $32,880.
Reverse Stock Split
Pursuant to the written consent of a majority of the stockholders dated
August 21, 2002, the Company effected a one-for-fifty reverse stock
split of the Company's Common Stock. All per share amounts have been
retroactively restated for the effect of this reverse split. All
information pertaining to shares issued pursuant to a private placement
or for service has been retroactively restated as well.
NOTE 3: SUBSEQUENT EVENT
On December 23, 2004, the Company entered into an agreement with Simon
Piers Thurlow ("Thurlow") and certain Purchasers (the "Purchasers").
Pursuant to the Agreement, Thurlow agreed to sell 29,500,00 shares of
the Company's common stock, representing approximately 90% of the
outstanding shares to the Purchasers. On December 28, 2004, the
purchase of the shares was completed and Ms. Qu Liangin was appointed
as Chairman of the Board of Directors.
On January 31, 2005 the Company filed an amendment to its Certificate
of Incorporation whereby it changed its name from Autocarbon, Inc. to
Global Pharmatech, Inc., declared a one for ten reverse stock split and
authorized the issuance of 5,000,000 shares of preferred stock.
On January 24, 2005 the Company entered into a Share Purchase
Agreement, with Natural Pharmatech, Inc., a British Virgin Islands
corporation ("Natural Pharmatech") and the shareholders of Natural
Pharmatech. Under the terms of the Share Purchase Agreement, the
Company agreed to acquire 100% of the Natural Pharmatech's shares in
exchange for 80% of the Company's common stock, which will be issued to
the Natural Pharmatech shareholders. The Company's acquisition of
Natural Pharmatech was completed on February 9, 2005.
9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS
FORWARD-LOOKING STATEMENTS
The following discussion should be read in conjunction with our audited
financial statements and notes thereto included herein. In connection with, and
because we desire to take advantage of, the "safe harbor" provisions of the
Private Securities Litigation Reform Act of 1995, we caution readers regarding
certain forward looking statements in the following discussion and elsewhere in
this report and in any other statement made by, or on our behalf, whether or not
in future filings with the Securities and Exchange Commission. Forward-looking
statements are statements not based on historical information and which relate
to future operations, strategies, financial results or other developments.
Forward-looking statements are necessarily based upon estimates and assumptions
that are inherently subject to significant business, economic and competitive
uncertainties and contingencies, many of which are beyond our control and many
of which, with respect to future business decisions, are subject to change.
These uncertainties and contingencies can affect actual results and could cause
actual results to differ materially from those expressed in any forward looking
statements made by, or our behalf. We disclaim any obligation to update
forward-looking statements.
OVERVIEW
Global Pharmatech, Inc. (formerly Autocarbon, Inc., and previously
Autocarbon.com, Inc.) was incorporated on June 26, 2001 under the laws of the
State of Delaware as Autocarbon.com, Inc. On October 25, 2002 Autocarbon, Inc.
was incorporated under the laws of the State of Delaware and became a wholly
owned subsidiary of Autocarbon.com, Inc. and was merged into Autocarbon.com,
Inc. on October 28, 2002. The surviving corporation, Autocarbon.com, Inc.
changed its name to Autocarbon, Inc.
10
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS, CONTINUED
BUSINESS
We were previously engaged in the sale and marketing of carbon fiber and
composite products. That business was discontinued on or before February 2003.
In 2004 we refocused our business model to market and distribute a cosmetic
product aimed toward the construction industry for blocking fiberglass
insulation fibers from becoming lodged on a workman's skin. We conducted this
business through our wholly-owned subsidiary, New Concepts Nutraceuticals, Inc.,
a Delaware corporation ("NCN").
NCN sells its product through its website www.newconceptsnutra.com and hopes to
expand its range of products through the coming year.
While we may, under certain circumstances, seek to effect business combinations
with one or more than one target business, unless and until additional financing
is available, we do not believe that we will have sufficient financing to pursue
an additional business combination without effecting a further change in control
in our company. We are however constantly looking for any business transaction
that would be in the best interests of our shareholders.
EQUIPMENT AND EMPLOYEES
As of March 31, 2004, we had acquired our subsidiary, NCN, which has very
limited business operations, and thus no equipment and no employees. Mr.
Thurlow, the President, Chief Financial Officer and director of our company and
the subsidiary during the reported period for this Report, does not receive any
salary.
SUBSEQUENT TRANSACTIONS
None.
RESULTS OF OPERATIONS
During the first quarter of our fiscal year, ending June 30, 2004, our operating
unit did not have any sales. Therefore a comparison of sales to the previous
year is not an accurate representation of the increase or decrease of the
revenues, costs and sales of our company.
LIQUIDITY AND FINANCIAL RESOURCES
We experienced sales, expenses, and a profit of zero for the quarter ended June
30, 2004. For the quarter ended June 30, 2003, we incurred a net loss of
$(18,529).
These factors raise substantial doubt about our ability to continue as a going
concern. It is the intention of management to increase revenues significantly,
through growth and acquisitions. The ultimate success of these measures is not
reasonably determinable at this time.
11
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ITEM 3. CONTROLS AND PROCEDURES
Our principal executive officer and principal financial officer, after
evaluating our disclosure controls and procedures (as defined in Rules 13a-14
(c) of the Securities Exchange Act of 1934) within 90 days before the filing
date of this quarterly report, have concluded that our disclosure controls and
procedures are adequate and effective to ensure that material information
relating to the registrants and their consolidated subsidiaries is recorded,
processed, summarized and reported within the time periods specified by the
SEC's rules and forms, particularly during the period in which this quarterly
report has been prepared.
Our principal executive officer and principal financial officer have concluded
that there were no significant changes in our internal controls or in other
factors that could significantly affect these controls subsequent to July 1,
2004, the date of their most recent evaluation of such controls, and that there
was no significant deficiencies or material weaknesses in the registrant's
internal controls.
PART II: OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS.
None.
ITEM 2. CHANGES IN SECURITIES.
None.
ITEM 3. DEFAULTS UPON SENIOR SECURITIES.
None.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
None.
ITEM 5. OTHER INFORMATION.
None.
12
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ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits
3.1 Articles of Incorporation of the Registrant*
3.2 By-laws of the Registrant*
31.1 Section 302 Certification of Principal Executive Officer
31.2 Section 302 Certification of Principal Financial Officer
32.1 Section 906 Certification of Principal Executive Officer
32.2 Section 906 Certification of Principal Financial Officer
------------
* These documents are hereby incorporated by reference to Form SB-2, as amended,
filed on August 17, 2001
(b) Reports on Form 8-K filed during the three months ended June 30, 2004.
None.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Date: March 10, 2005 By: /s/ Xiaobo Sun
----------------
Name: Xiaobo Sun
Title: President and Chief Executive Officer
(Principal Executive Officer)
Date: March 10, 2005 By: /s/ Zongsheng Zhang
---------------------
Name: Zongsheng Zhang
Title: Chief Financial Officer
(Principal Financial Officer)
13