Delaware | 56-2646797 |
(State or Other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification Number) |
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. |
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. |
PART I | PAGE | |
Item 1. | Business | |
Item | Risk Factors | |
Item | Unresolved Staff Comments | |
Item 2 | Properties | |
Item 3. | Legal Proceedings | |
Item 4. | Mine Safety Disclosures | |
PART II | ||
Item 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | |
Item 6. | Selected Financial Data | |
Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk. | |
Item 8. | Financial Statements and | |
Item 9. | Changes in and Disagreements With Accountants on Accounting and Financial Disclosure | |
Item 9A. | Controls and Procedures | |
Item 9B. | Other Information | |
PART III | ||
Item 10. | Directors, Executive Officers and Corporate Governance | |
Item 11. | Executive Compensation | |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |
Item 13. | Certain Relationships and Related Transactions and Director Independence. | |
Item 14. | Principal | |
PART IV | ||
Item 15. | Exhibits and Financial Statement Schedules | |
SIGNATURES |
Experience in operating passenger rail service |
Existing contracts with Class I railroads |
Liability insurance caps |
Experienced crew and maintenance teams |
Established ticketing infrastructure on- line for cross marketing opportunities |
Established relationships with host railroads |
Within 26 miles from LA |
Located in the sixth |
Links to Los Angeles County via public roads, bus and rail routes |
Very affluent |
Tourism-centric |
Connection to MetroLink services where there are over 15,000 daily boarding’s with easy connection to Union Station passengers |
Strategic marketing and ridership partnership opportunities with MetroLink |
Proximity to Disneyland for Las Vegas marketing efforts |
High-speed rail |
Las Vegas to Victorville, CA (85 miles from Los Angeles) |
Requires right-of-way acquisition |
$6 billion to construct new rail system |
7-10 years to complete if funded |
High-speed magnetic levitation technology |
Las Vegas to Anaheim, CA (25 miles from Los Angeles) |
Requires right-of-way acquisition |
$15 billion to construct |
15 years to complete if funded |
· | make it more difficult for us to satisfy its obligations with respect to the indebtedness and any failure to comply with the obligations under any of our debt instruments, including restrictive covenants, could result in further event of defaults under the loan agreements and instruments governing the indebtedness; |
· | require us to dedicate a substantial portion of any cash raised from financing or cash flow from future operations to payments on our indebtedness, thereby reducing funds available for working capital, capital expenditures, acquisitions, and other corporate purposes; |
· | increase our vulnerability to adverse economic and industry conditions, which could place us at a competitive disadvantage compared to competitors that have relatively less indebtedness; |
· | limit our flexibility in planning for, or reacting to, changes in business and the industry in which we operate; and |
· | limit our ability to borrow additional funds, or to dispose of assets to raise funds, if needed, for working capital, capital expenditures, acquisitions, and other corporate purposes. |
· | Union Pacific Railroad for the right to operate the X-Train service on the railroads between Daggett, California and Las Vegas; |
· | Amtrak for the provision of locomotive engineers, conductors, train servicing, maintenance, ticketing services, and other related services and for access to operate the X Train service on the Burlington Northern Santa Fe Railroad between Fullerton, California and Daggett, California; and |
· | The City of Fullerton and the City of North Las Vegas for the development and operation of departure and arrival stations; |
that a broker or dealer approve a person's account for transactions in penny stocks; and |
that the broker or dealer receives from the investor a written agreement to the transaction, setting forth the identity and quantity of the penny stock to be purchased. |
obtain financial information and investment experience objectives of the person; and |
make a reasonable determination that the transactions in penny stocks are suitable for that person and the person has sufficient knowledge and experience in financial matters to be capable of evaluating the risks of transactions in penny stocks. |
sets forth the basis on which the broker or dealer made the suitability determination; and |
that the broker or dealer received a signed, written agreement from the investor prior to the transaction. |
Common Shares | ||||||||||||||||
Year Ended March 31, 2013: | High | Low | ||||||||||||||
Quarter Ended June 30, 2012 | $ | 0.09 | $ | 0.06 | ||||||||||||
Quarter Ended September 30, 2012 | $ | 0.21 | $ | 0.065 | ||||||||||||
Quarter Ended December 31, 2012 | $ | 0.20 | $ | 0.07 | ||||||||||||
Quarter Ended March 31, 2013 | $ | 0.13 | $ | 0.075 | ||||||||||||
Common Shares | ||||||||||||||||
Year Ended March 31, 2012: | High | Low | High | Low | ||||||||||||
Quarter Ended June 30, 2011 | $ | 0.27 | $ | 0.15 | $ | 0.27 | $ | 0.15 | ||||||||
Quarter Ended September 30, 2011 | $ | 0.19 | $ | 0.095 | $ | 0.19 | $ | 0.09 | ||||||||
Quarter Ended December 31, 2011 | $ | 0.13 | $ | 0.07 | $ | 0.13 | $ | 0.07 | ||||||||
Quarter Ended March 31, 2012 | $ | 0.11 | $ | 0.06 | $ | 0.11 | $ | 0.06 | ||||||||
Year Ended March 31, 2011: | High | Low | ||||||||||||||
Quarter Ended June 30, 2010 | $ | 0.25 | $ | 0.13 | ||||||||||||
Quarter Ended September 30, 2010 | $ | 0.35 | $ | 0.18 | ||||||||||||
Quarter Ended December 31, 2010 | $ | 0.33 | $ | 0.08 | ||||||||||||
Quarter Ended March 31, 2011 | $ | 0.29 | $ | 0.11 |
Equity Compensation Plan Information | Equity Compensation Plan Information | Equity Compensation Plan Information | |||||||||||||||||||
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted- average exercise price of outstanding options, warrants and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | Number of securities to be issued upon exercise of outstanding options, warrants and rights (a) | Weighted-average exercise price of outstanding options, warrants and rights (b) | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) (c) | |||||||||||||||
Equity compensation plans approved by security holders | - | $ | - | 20,000,000 | - | $ | - | 20,000,000 | |||||||||||||
Equity compensation plans not approved by security holders | 2,000,000 | $ | 0.14 | - | 60,496,842 | $ | 0.17 | - | |||||||||||||
Total | 2,000,000 | $ | - | 20,000,000 | 60,496,842 | $ | - | 20,000,000 |
Year Ended | ||||||||||||||||
March 31, | March 31, | |||||||||||||||
2013 | 2012 | $ Change | % Change | |||||||||||||
Operating Expenses: | ||||||||||||||||
Compensation and payroll taxes | $ | 3,034,474 | $ | 1,222,013 | $ | 1,812,461 | 148.3 | % | ||||||||
Selling, general and administrative | 651,503 | 233,577 | 417,926 | 178.9 | % | |||||||||||
Professional fees | 1,616,524 | 268,731 | 1,347,793 | 501.5 | % | |||||||||||
Depreciation expense | 1,976 | 320 | 1,656 | 517.5 | % | |||||||||||
Total expenses | 5,304,477 | 1,724,641 | 3,579,836 | 207.6 | % | |||||||||||
Loss from continuing operations | (5,304,477 | ) | (1,724,641 | ) | (3,579,836 | ) | 207.6 | % | ||||||||
Other (expense) income | ||||||||||||||||
Interest expense | (2,198,205 | ) | (295,131 | ) | (1,903,074 | ) | 644.8 | % | ||||||||
Change in derivative liability | 270,466 | 37,086 | 233,380 | 629.3 | % | |||||||||||
Total other (expense) income | (1,927,739 | ) | (258,045 | ) | (1,669,694 | ) | 647.1 | % | ||||||||
Net loss from continuing operations before tax provision | (7,232,216 | ) | (1,982,686 | ) | (5,249,530 | ) | 264.8 | % | ||||||||
Provision for income taxes | 13,571 | 42,343 | (28,772 | ) | -67.9 | % | ||||||||||
Net loss from continuing operations | (7,245,787 | ) | (2,025,029 | ) | (5,220,758 | ) | 257.8 | % | ||||||||
Discontinued operations: | ||||||||||||||||
Income from discontinued operations, net of income taxes | 479,696 | 18,996 | 460,700 | 2425.2 | % | |||||||||||
Net loss | $ | (6,766,091 | ) | $ | (2,006,033 | ) | $ | (4,760,058 | ) | 237.3 | % |
Year Ended | ||||||||||||||||
March 31, | March 31, | |||||||||||||||
2012 | 2011 | $ Change | % Change | |||||||||||||
(Restated) | ||||||||||||||||
Operating Expenses: | ||||||||||||||||
Compensation and payroll taxes | $ | 1,222,013 | $ | 780,849 | $ | 441,164 | 56.5 | % | ||||||||
Selling, general and administrative | 233,577 | 314,835 | (81,258 | ) | -25.8 | % | ||||||||||
Professional fees | 268,731 | 752,052 | (483,321 | ) | -64.3 | % | ||||||||||
Depreciation expense | 320 | - | 320 | 100.0 | % | |||||||||||
Total expenses | 1,724,641 | 1,847,736 | (123,095 | ) | -6.7 | % | ||||||||||
Loss from continuing operations | (1,724,641 | ) | (1,847,736 | ) | 123,095 | -6.7 | % | |||||||||
Other (expense) income | ||||||||||||||||
Interest income | - | 3,000 | (3,000 | ) | -100.0 | % | ||||||||||
Interest expense | (295,131 | ) | (198,813 | ) | (96,318 | ) | 48.4 | % | ||||||||
Change in derivative liability | 37,086 | - | 37,086 | 100.0 | % | |||||||||||
Loss on disposition of assets | - | (2,965 | ) | 2,965 | -100.0 | % | ||||||||||
Gain on extinguishment of debt | - | 238,374 | (238,374 | ) | -100.0 | % | ||||||||||
Total other (expense) income | (258,045 | ) | 39,596 | (297,641 | ) | -751.7 | % | |||||||||
Net loss from continuing operations before tax provision | (1,982,686 | ) | (1,808,140 | ) | (174,546 | ) | 9.7 | % | ||||||||
Provision for income taxes | 42,343 | - | 42,343 | 100.0 | % | |||||||||||
Net loss from continuing operations | (2,025,029 | ) | (1,808,140 | ) | (216,889 | ) | 12.0 | % | ||||||||
Discontinued operations: | ||||||||||||||||
Income from discontinued operations | 18,996 | 16,157 | 2,839 | 17.6 | % | |||||||||||
Net loss | $ | (2,006,033 | ) | $ | (1,791,983 | ) | $ | (214,050 | ) | 11.9 | % | |||||
· | obtain adequate sources of debt or equity financing to pay unfunded operating expenses and fund long-term business operations; and |
· | manage or control working capital requirements by controlling operating expenses. |
March 31, | March 31, | |||||||
2012 | 2011 | |||||||
(Restated) | (Restated) | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash | $ | 53,632 | $ | 16,313 | ||||
Other current assets | 47,028 | - | ||||||
Total current assets | 100,660 | 16,313 | ||||||
Property and equipment, net of accumulated depreciation | 2,880 | - | ||||||
Other assets | ||||||||
Goodwill | 843,697 | 843,697 | ||||||
Total other assets | 843,697 | 843,697 | ||||||
Total assets | $ | 947,237 | $ | 860,010 | ||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||
Current liabilities | ||||||||
Short term notes payable | $ | 785,116 | $ | - | ||||
Accounts payable and accrued expenses | 236,009 | 169,955 | ||||||
Derivative liability | 170,499 | - | ||||||
Liabilities to be disposed of, current | 905,950 | 999,122 | ||||||
Total current liabilities | 2,097,574 | 1,169,077 | ||||||
Deferred tax liability | 42,343 | - | ||||||
Total liabilities | 2,139,917 | 1,169,077 | ||||||
Commitments | ||||||||
Stockholders' deficiency | ||||||||
Common stock subscribed | 640,000 | 850,000 | ||||||
Common stock, $0.0001 par value, 200,000,000 shares authorized, 48,653,350 and 39,201,498 shares issued and outstanding as of March 31, 2012 and 2011, respectively | 4,865 | 3,920 | ||||||
Additional paid-in capital | 9,971,987 | 8,640,512 | ||||||
Accumulated deficit | (11,809,532 | ) | (9,803,499 | ) | ||||
Total stockholders' deficiency | (1,192,680 | ) | (309,067 | ) | ||||
Total liabilities and stockholders' deficiency | $ | 947,237 | $ | 860,010 | ||||
See accompanying notes to financial statements |
March 31, | March 31, | |||||||
2013 | 2012 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash | $ | 1,262,615 | $ | 53,632 | ||||
Other current assets | 471,772 | 47,028 | ||||||
Total current assets | 1,734,387 | 100,660 | ||||||
Property and equipment, net of accumulated depreciation | 393,789 | 2,880 | ||||||
Other assets | ||||||||
Deposit with Union Pacific | 600,000 | - | ||||||
Other assets | 25,958 | - | ||||||
Goodwill | 843,697 | 843,697 | ||||||
Total other assets | 1,469,655 | 843,697 | ||||||
Total assets | $ | 3,597,831 | $ | 947,237 | ||||
Liabilities and Stockholders' Deficit | ||||||||
Current liabilities | ||||||||
Short term notes payable | $ | 13,333 | $ | 785,116 | ||||
Accounts payable and accrued expenses | 375,295 | 236,009 | ||||||
Derivative liability | 3,181,537 | 170,499 | ||||||
Convertible notes payable, net of discount | 116,042 | - | ||||||
Liabilities to be disposed of, current | 194,041 | 905,950 | ||||||
Total current liabilities | 3,880,248 | 2,097,574 | ||||||
Deferred tax liability | 55,914 | 42,343 | ||||||
Total liabilities | 3,936,162 | 2,139,917 | ||||||
Commitments and contingencies | ||||||||
Stockholders' deficit | ||||||||
Common stock subscribed | - | 640,000 | ||||||
Common stock, $0.0001 par value, 200,000,000 shares authorized, 154,111,882 and 48,653,350 shares issued and outstanding as of March 31, 2013 and 2012, respectively | 15,411 | 4,865 | ||||||
Additional paid-in capital | 18,221,881 | 9,971,987 | ||||||
Accumulated deficit | (18,575,623 | ) | (11,809,532 | ) | ||||
Total stockholders' deficit | (338,331 | ) | (1,192,680 | ) | ||||
Total liabilities and stockholders' deficit | $ | 3,597,831 | $ | 947,237 |
Year Ended | ||||||||
March 31, | March 31, | |||||||
2012 | 2011 | |||||||
(Restated) | ||||||||
Operating Expenses: | ||||||||
Compensation and payroll taxes | $ | 1,222,013 | $ | 780,849 | ||||
Selling, general and administrative | 233,577 | 314,835 | ||||||
Professional fees | 268,731 | 752,052 | ||||||
Depreciation expense | 320 | - | ||||||
Total expenses | 1,724,641 | 1,847,736 | ||||||
Loss from continuing operations | (1,724,641 | ) | (1,847,736 | ) | ||||
Other (expense) income | ||||||||
Interest income | - | 3,000 | ||||||
Interest expense | (295,131 | ) | (198,813 | ) | ||||
Change in derivative liability | 37,086 | - | ||||||
Loss on disposition of assets | - | (2,965 | ) | |||||
Gain on extinguishment of debt | - | 238,374 | ||||||
Total other (expense) income | (258,045 | ) | 39,596 | |||||
Net loss from continuing operations before tax provision | (1,982,686 | ) | (1,808,140 | ) | ||||
Provision for income taxes | 42,343 | - | ||||||
Net loss from continuing operations | (2,025,029 | ) | (1,808,140 | ) | ||||
Discontinued operations: | ||||||||
Income from discontinued operations | 18,996 | 16,157 | ||||||
Net loss | $ | (2,006,033 | ) | $ | (1,791,983 | ) | ||
Net (loss) per share, continuing operations, basic and diluted | $ | (0.05 | ) | $ | (0.05 | ) | ||
Net income (loss) per share, discontinued operations, basic and diluted | $ | - | $ | - | ||||
Net (loss) per share basic and diluted | $ | (0.05 | ) | $ | (0.05 | ) | ||
Weighted average number of common | ||||||||
shares outstanding, basic and diluted | 43,680,249 | 36,253,005 | ||||||
See accompanying notes to financial statements |
March 31, | March 31, | |||||||
2013 | 2012 | |||||||
Operating Expenses: | ||||||||
Compensation and payroll taxes | $ | 3,034,474 | $ | 1,222,013 | ||||
Selling, general and administrative | 651,503 | 233,577 | ||||||
Professional fees | 1,616,524 | 268,731 | ||||||
Depreciation expense | 1,976 | 320 | ||||||
Total expenses | 5,304,477 | 1,724,641 | ||||||
Loss from operations | (5,304,477 | ) | (1,724,641 | ) | ||||
Other (expense) income | ||||||||
Interest expense | (2,198,205 | ) | (295,131 | ) | ||||
Change in derivative liability | 270,466 | 37,086 | ||||||
Total other (expense) income | (1,927,739 | ) | (258,045 | ) | ||||
Net loss from operations before tax provision | (7,232,216 | ) | (1,982,686 | ) | ||||
Provision for income taxes | 13,571 | 42,343 | ||||||
Net loss from continuing operations | (7,245,787 | ) | (2,025,029 | ) | ||||
Discontinued operations: | ||||||||
Income from discontinued operations, net of income taxes | 479,696 | 18,996 | ||||||
Net loss | $ | (6,766,091 | ) | $ | (2,006,033 | ) | ||
Net loss per share, continuing operations, basic and diluted | $ | (0.07 | ) | $ | (0.05 | ) | ||
Net income (loss) per share, discontinued operations, basic and diluted | $ | - | $ | - | ||||
Net loss per share, basic and diluted | $ | (0.06 | ) | $ | (0.05 | ) | ||
Weighted average number of common shares outstanding, basic and diluted | 106,256,044 | 43,680,249 |
Additional | ||||||||||||||||||||||||
Common Stock | Paid-in | Accumulated | ||||||||||||||||||||||
Shares | Amount | Subscriptions | Capital | Deficit | Total | |||||||||||||||||||
Balance, March 31, 2010 | 22,889,686 | $ | 2,289 | $ | 640,000 | $ | 6,464,307 | $ | (8,011,516 | ) | $ | (904,920 | ) | |||||||||||
Stock issued for cash | 8,049,411 | 805 | 1,268,196 | 1,269,001 | ||||||||||||||||||||
Stock issued from subscriptions payable | 4,000,000 | 400 | 159,600 | 160,000 | ||||||||||||||||||||
Stock issued for services | 2,388,416 | 239 | 210,000 | 267,655 | 477,894 | |||||||||||||||||||
Stock issued for compensation | 454,615 | 45 | 67,532 | 67,577 | ||||||||||||||||||||
Stock issued for debt | 1,451,174 | 145 | 154,287 | 154,432 | ||||||||||||||||||||
Stock issued for debt discount | 2,400,000 | 240 | 299,760 | 300,000 | ||||||||||||||||||||
Recission of stock issued for debt | (2,431,804 | ) | (243 | ) | (121,347 | ) | - | (121,590 | ) | |||||||||||||||
Stock based compensation | 80,522 | 80,522 | ||||||||||||||||||||||
Net loss | - | - | - | (1,791,983 | ) | (1,791,983 | ) | |||||||||||||||||
Balance, March 31, 2011 (restated) | 39,201,498 | 3,920 | 850,000 | 8,640,512 | (9,803,499 | ) | (309,067 | ) | ||||||||||||||||
Stock issued for cash | 3,785,023 | 379 | 382,875 | 383,254 | ||||||||||||||||||||
Stock issued from subscriptions payable | 600,000 | 60 | (210,000 | ) | 209,940 | - | ||||||||||||||||||
Stock issued for services | 982,741 | 98 | 127,395 | 127,493 | ||||||||||||||||||||
Stock issued for compensation (restated) | 4,334,268 | 433 | 514,933 | 515,366 | ||||||||||||||||||||
Warrants issued for debt discount (restated) | 53,285 | 53,285 | ||||||||||||||||||||||
Stock based compensation | - | - | 80,522 | - | 80,522 | |||||||||||||||||||
Recission of stock issued to former officer | (250,000 | ) | (25 | ) | (37,475 | ) | (37,500 | ) | ||||||||||||||||
Net loss (restated) | - | - | - | (2,006,033 | ) | (2,006,033 | ) | |||||||||||||||||
Balance, March 31, 2012 (Restated) | 48,653,530 | $ | 4,865 | $ | 640,000 | $ | 9,971,987 | $ | (11,809,532 | ) | $ | (1,192,680 | ) |
Additional | ||||||||||||||||||||||||
Common Stock | Paid-in | Accumulated | ||||||||||||||||||||||
Shares | Amount | Subscriptions | Capital | Deficit | Total | |||||||||||||||||||
Balance, March 31, 2011 | 39,201,498 | $ | 3,920 | $ | 850,000 | $ | 8,640,512 | $ | (9,803,499 | ) | $ | (309,067 | ) | |||||||||||
Stock issued for cash | 3,785,023 | 379 | - | 382,875 | - | 383,254 | ||||||||||||||||||
Stock issued from subscriptions payable | 600,000 | 60 | (210,000 | ) | 209,940 | - | - | |||||||||||||||||
Stock issued for services | 982,741 | 98 | - | 127,395 | - | 127,493 | ||||||||||||||||||
Stock option compensation | 4,334,268 | 433 | - | 514,933 | - | 515,366 | ||||||||||||||||||
Warrants issued for debt discount | - | - | - | 53,285 | - | 53,285 | ||||||||||||||||||
Stock based compensation | - | - | - | 80,522 | - | 80,522 | ||||||||||||||||||
Recission of stock issued to former officer | (250,000 | ) | (25 | ) | - | (37,475 | ) | - | (37,500 | ) | ||||||||||||||
Net loss | - | - | - | - | (2,006,033 | ) | (2,006,033 | ) | ||||||||||||||||
Balance, March 31, 2012 | 48,653,530 | 4,865 | 640,000 | 9,971,987 | (11,809,532 | ) | (1,192,680 | ) | ||||||||||||||||
Stock issued from subscriptions payable | 16,000,000 | 1,600 | (640,000 | ) | 638,400 | - | - | |||||||||||||||||
Stock issued for servives | 9,277,357 | 928 | - | 1,537,749 | - | 1,538,677 | ||||||||||||||||||
Stock issued for cash | 45,640,000 | 4,564 | - | 2,277,436 | - | 2,282,000 | ||||||||||||||||||
Stock issued for conversion of debt | 33,640,995 | 3,364 | - | 2,052,742 | - | 2,056,106 | ||||||||||||||||||
Exercise of warrants | 900,000 | 90 | - | 8,910 | - | 9,000 | ||||||||||||||||||
Discount on convertible notes payable | - | - | - | 440,000 | - | 440,000 | ||||||||||||||||||
Warrants issued for services | - | - | - | 1,201,370 | - | 1,201,370 | ||||||||||||||||||
Warrants issued for property and equipment | - | - | - | 12,763 | - | 12,763 | ||||||||||||||||||
Stock option compensation | - | - | - | 80,524 | - | 80,524 | ||||||||||||||||||
Net loss | - | - | - | - | (6,766,091 | ) | (6,766,091 | ) | ||||||||||||||||
Balance, March 31, 2013 | 154,111,882 | $ | 15,411 | $ | - | $ | 18,221,881 | $ | (18,575,623 | ) | $ | (338,331 | ) |
March 31, | March 31, | |||||||
2012 | 2011 | |||||||
(Restated) | ||||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (2,006,033 | ) | $ | (1,791,983 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 320 | - | ||||||
Amortization of discounts on note payable | 257,653 | 166,930 | ||||||
Gain on extinguishment of debt | - | (238,374 | ) | |||||
Loss on disposition of assets | - | 2,965 | ||||||
Deferred tax provision | 42,343 | - | ||||||
Change in value of derivative liability | (37,086 | ) | - | |||||
Stock issued and subscribed for services | 127,493 | 477,894 | ||||||
Stock issued for compensation | 477,866 | 67,577 | ||||||
Stock option compensation | 80,522 | 80,522 | ||||||
Changes in operating assets and liabilities: | ||||||||
Other current assets | (47,028 | ) | 50,000 | |||||
Liabilities of discontinued operations, net | (93,172 | ) | (349,438 | ) | ||||
Accounts payable and accrued expenses | 66,054 | 126,073 | ||||||
Net cash used in operating activities | (1,131,068 | ) | (1,407,834 | ) | ||||
Cash flows from investing activities | ||||||||
Purchases of property and equipment | (3,200 | ) | - | |||||
Net cash used in investing activities | (3,200 | ) | - | |||||
Cash flows from financing activities | ||||||||
Proceeds from sale of stock | 383,254 | 1,269,001 | ||||||
Payments on related party notes payables | - | (20,725 | ) | |||||
Proceeds from notes payable | 788,333 | 175,000 | ||||||
Payments on note payable | - | (5,000 | ) | |||||
Net cash provided by financing activities | 1,171,587 | 1,418,276 | ||||||
Net change in cash | 37,319 | 10,442 | ||||||
Cash, beginning of the year | 16,313 | 5,871 | ||||||
Cash, end of the year | $ | 53,632 | $ | 16,313 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Interest paid | - | 28,850 | ||||||
Income taxes paid | - | - | ||||||
Supplemental disclosure of non-cash investing and financing transactions: | ||||||||
Warrants issued for debt | 53,285 | 160,000 | ||||||
Stock issued for debt | - | 154,432 | ||||||
Recission of stock previously issued for debt | - | 121,590 | ||||||
March 31, | March 31, | |||||||
2013 | 2012 | |||||||
Cash flows from operating activities | ||||||||
Net loss | $ | (6,766,091 | ) | $ | (2,006,033 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 1,976 | 320 | ||||||
Amortization of discounts on note payable | 2,096,482 | 257,653 | ||||||
Amortization of debt offering costs | 15,472 | - | ||||||
Deferred tax provision | 13,571 | 42,343 | ||||||
Change in value of derivative liability | (270,466 | ) | (37,086 | ) | ||||
Stock issued and subscribed for services | 1,538,677 | 605,359 | ||||||
Stock option compensation | 80,524 | 80,522 | ||||||
Warrants issued for services | 1,201,370 | - | ||||||
Changes in operating assets and liabilities: | ||||||||
Other current assets | (440,216 | ) | (47,028 | ) | ||||
Other assets | (25,958 | ) | - | |||||
Liabilities of discontinued operations, net | (510,631 | ) | (93,172 | ) | ||||
Accounts payable and accrued expenses | 282,200 | 66,054 | ||||||
Net cash used in operating activities | (2,783,090 | ) | (1,131,068 | ) | ||||
Cash flows from investing activities | ||||||||
Purchases of property and equipment | (380,122 | ) | (3,200 | ) | ||||
Deposit with Union Pacific | (600,000 | ) | - | |||||
Net cash used in investing activities | (980,122 | ) | (3,200 | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from sale of stock | 2,282,000 | 383,254 | ||||||
Proceeds from convertible notes payable | 1,900,000 | - | ||||||
Proceeds from notes payable | 820,000 | 788,333 | ||||||
Proceeds from exercise of warrants | 9,000 | - | ||||||
Payments on note payable | (38,805 | ) | - | |||||
Net cash provided by financing activities | 4,972,195 | 1,171,587 | ||||||
Net change in cash | 1,208,983 | 37,319 | ||||||
Cash, beginning of the year | 53,632 | 16,313 | ||||||
Cash, end of the year | $ | 1,262,615 | $ | 53,632 | ||||
Supplemental disclosure of cash flow information: | ||||||||
Interest paid | $ | 5,497 | $ | - | ||||
Income taxes paid | $ | - | $ | - | ||||
Supplemental disclosure of non-cash investing and financing transactions: | ||||||||
Stock issued to settle stock subscriptions | $ | 640,000 | $ | - | ||||
Stock issued for debt | $ | 1,907,050 | $ | - | ||||
Warrants issued for debt | $ | - | $ | 53,285 | ||||
Increase in liabilities of discountinued operations from forbearance agreement | $ | 58,754 | $ | - | ||||
Warrants issued for payment of property and equipment | $ | 12,763 | $ | - |
As of March 31, 2012: | ||||||||||||
As Previously | ||||||||||||
Reported | Adjustments | Restated | ||||||||||
Notes payable | $ | 788,333 | $ | (3,217 | ) | $ | 785,116 | |||||
Derivative liability | - | 170,499 | 170,499 | |||||||||
Stock subscription payable | 640,000 | (640,000 | ) | - | ||||||||
Total current liabilities | 2,570,292 | (472,718 | ) | 2,097,574 | ||||||||
Deferred tax liability | - | 42,343 | 42,343 | |||||||||
Total liabilities | 2,570,292 | (430,375 | ) | 2,139,917 | ||||||||
Common stock subscribed | - | 640,000 | 640,000 | |||||||||
Additional paid in capital | 9,995,692 | (23,705 | ) | 9,971,987 | ||||||||
Retained earnings | (11,623,612 | ) | (185,920 | ) | (11,809,532 | ) | ||||||
Total stockholders' deficit | (1,623,055 | ) | (430,375 | ) | (1,192,680 | ) | ||||||
For the year ended March 31, 2012: | ||||||||||||
As Previously | ||||||||||||
Reported | Adjustments | Restated | ||||||||||
Operating Expenses: | ||||||||||||
Compensation and payroll taxes | $ | 1,128,689 | $ | 93,324 | $ | 1,222,013 | ||||||
Selling, general and administrative | 233,577 | - | 233,577 | |||||||||
Professional fees | 268,731 | - | 268,731 | |||||||||
Depreciation expense | 320 | - | 320 | |||||||||
Total expenses | 1,631,317 | 93,324 | 1,724,641 | |||||||||
Loss from operations | (1,631,317 | ) | (93,324 | ) | (1,724,641 | ) | ||||||
Other income (expense): | ||||||||||||
Change in derivative liability | - | 37,086 | 37,086 | |||||||||
Interest income (expense) | (207,792 | ) | (87,339 | ) | (295,131 | ) | ||||||
Total other income (expense) | (207,792 | ) | (50,253 | ) | (258,045 | ) | ||||||
Net loss from continuing operations before tax provision | (1,839,109 | ) | (143,577 | ) | (1,982,686 | ) | ||||||
Provision for income taxes | - | 42,343 | 42,343 | |||||||||
Net loss from continuing operations | (1,839,109 | ) | (185,920 | ) | (2,025,029 | ) | ||||||
Discontinued operations: | ||||||||||||
Income (loss) from discontinued operations, net of income tax | 18,996 | 18,996 | ||||||||||
Net loss | $ | (1,820,113 | ) | $ | (185,920 | ) | $ | (2,006,033 | ) | |||
As of March 31, 2011: | As Previously | |||||||||||
Reported | Adjustments | Restated | ||||||||||
Stock subscription payable | $ | 640,000 | $ | (640,000 | ) | $ | - | |||||
Total liabilities | 1,809,077 | (640,000 | ) | 1,169,077 | ||||||||
Common stock subscribed | 210,000 | 640,000 | 850,000 | |||||||||
Total stockholders' deficit | (949,067 | ) | 640,000 | (309,067 | ) | |||||||
Year Ended | Year Ended | |||
March 31, | March 31, | |||
2013 | 2012 | |||
Expected life in years | 1.5 - 10 years | N/A | ||
Stock price volatility | 158.6% - 286.0% | N/A | ||
Risk free interest rate | 0.25% - 1.62% | N/A | ||
Expected dividends | None | N/A | ||
Forfeiture rate | 0% | N/A |
March 31, | March 31, | |||||||
2012 | 2011 | |||||||
Furniture and fixtures | $ | 112,413 | $ | 112,413 | ||||
Equipment | 177,023 | 173,823 | ||||||
Leasehold improvements | 63,250 | 63,250 | ||||||
Software | 30,722 | 30,722 | ||||||
383,408 | 380,208 | |||||||
Less: accumulated depreciation | (188,689 | ) | (188,369 | ) | ||||
Less: impairment of assets | (191,839 | ) | (191,839 | ) | ||||
$ | 2,880 | $ | - |
March 31, | March 31, | |||||||
2013 | 2012 | |||||||
Furniture and fixtures | $ | - | $ | 112,413 | ||||
Office equipment | 40,921 | 177,023 | ||||||
Leasehold improvements | - | 63,250 | ||||||
Software | 14,192 | 30,722 | ||||||
Transportation equipment under construction | 354,557 | - | ||||||
409,670 | 383,408 | |||||||
Less: accumulated depreciation | (15,881 | ) | (188,689 | ) | ||||
Less: impairment of assets | - | (191,839 | ) | |||||
$ | 393,789 | $ | 2,880 |
March 31, | March 31, | |||||||
2012 | 2011 | |||||||
Notes payable - discontinued operations | ||||||||
Secured promissory notes, dated June 25, 2008, to two | $ | 126,005 | $ | 126,005 | ||||
investors, bearing interest at 10% per annum, payable | ||||||||
September 1, 2010. | ||||||||
Unsecured promissory notes payable dated October 1, 2009 | ||||||||
22,055 | 24,055 | |||||||
Notes included in liabilities from discontinued operations | $ | 148,060 | $ | 150,060 | ||||
Notes payable - current operations | ||||||||
Unsecured promissory note, dated April 4, 2011, to | ||||||||
an investor bearing interest at 8% per annum, payable on | ||||||||
April 4, 2012. | $ | 97,266 | $ | - | ||||
Secured promissory notes, dated May 17, 2011 through | ||||||||
May 17, 2012 to an investor bearing interest at 8% per annum, | ||||||||
payable on May 17, 2012. | 12,850 | - | ||||||
Secured promissory note, dated August 15, 2011, to an | ||||||||
investor, bearing interest at 10% per annum, payable | ||||||||
February 11, 2012. | 100,000 | - | ||||||
Secured promissory note, dated September 30, 2011, to | ||||||||
an investor bearing interest at 10% per annum, payable on | ||||||||
March 28, 2012. | 50,000 | - | ||||||
Secured promissory notes, dated October 8, 2011, | ||||||||
to three investors bearing interest at 10% per annum, | ||||||||
payable on April 10, 2012. | 225,000 | - | ||||||
Secured promissory note, dated January 25, 2012, to | ||||||||
an investor bearing interest at 10% per annum, payable on | ||||||||
demand, convertible to common shares at $0.10 per share. | 100,000 | - | ||||||
Secured promissory note, dated February 24, 2012, to an | ||||||||
investor bearing interest at 10% per annum, payable on | ||||||||
demand, convertible to common shares at $0.10 per share. | 200,000 | - | ||||||
Total outstanding notes payable from continuing operations | $ | 785,116 | $ | - | ||||
2013 | 2012 | |||||||
Notes payable - discontinued operations | ||||||||
Secured promissory notes, dated June 25, 2008, to two investors, bearing interest at 10% per annum, payableptember 1, 2010. | $ | - | $ | 126,005 | ||||
Unsecured promissory notes payable dated October 1, 2009 bearing interest at 10% per annum, payable September 1, 2010 | - | 22,055 | ||||||
Notes included in liabilities from discontinued operations | $ | - | $ | 148,060 | ||||
Notes payable - current operations | ||||||||
Unsecured promissory note, dated April 4, 2011, to an investor bearing interest at 8% per annum, payable on April 4, 2012. | $ | - | $ | 97,266 | ||||
Secured promissory notes, dated May 17, 2011 through May 17, 2012 to an investor bearing interest at 8% per annum, payable on May 17, 2012. The Company is in default on this note. | 13,333 | 12,850 | ||||||
Secured promissory note, dated August 15, 2011, to an investor, bearing interest at 10% per annum, payable February 11, 2012. | - | 100,000 | ||||||
Secured promissory note, dated September 30, 2011, to an investor bearing interest at 10% per annum, payable on March 28, 2012. | - | 50,000 | ||||||
Secured promissory notes, dated October 8, 2011, to three investors bearing interest at 10% per annum, payable on April 10, 2012. | - | 225,000 | ||||||
Secured promissory note, dated January 25, 2012, to an investor bearing interest at 10% per annum, payable on demand, convertible to common shares at $0.10 per share. | - | 100,000 | ||||||
Secured promissory note, dated February 24, 2012, to an investor bearing interest at 10% per annum, payable on demand, convertible to common shares at $0.10 per share. | - | 200,000 | ||||||
Total outstanding notes payable from continuing operations | $ | 13,333 | $ | 785,116 |
Year Ended | ||||
March 31, | ||||
2014 | $ | 13,333 | ||
Total | $ | 13,333 |
March 31, | ||||
2013 | ||||
Principal balance of convertible notes payable outstanding | $ | 1,795,000 | ||
Less: discount on convertible notes payable | (1,678,958 | ) | ||
Convertible notes payable, net | $ | 116,042 | ||
Year Ended | ||||
March 31, | ||||
2014 | $ | 1,795,000 | ||
Total | $ | 1,795,000 |
Years ending March 31, | Years ending March 31, | |||||||
2013 | $ | 58,400 | ||||||
2014 | $ | 138,034 | ||||||
2015 | 144,882 | |||||||
2016 | 149,129 | |||||||
2017 | 12,457 | |||||||
Total | $ | 58,400 | 444,502 |
Year Ended March 31, 2012 | ||||||||||||
Conversion Feature | ||||||||||||
of | ||||||||||||
Warrants | Notes Payable | Total | ||||||||||
Beginning balance, March 31, 2011 | $ | - | $ | - | $ | - | ||||||
Additional issuances | 171,877 | 35,708 | 207,585 | |||||||||
Exercised/converted | - | - | - | |||||||||
Change in derivative liability | (37,086 | ) | - | (37,086 | ) | |||||||
Ending balance, March 31, 2012 | $ | 134,791 | $ | 35,708 | $ | 170,499 |
Year Ended March 31, 2013 | Year Ended March 31, 2012 | |||||||||||||||||||||||
Conversion Feature | Conversion Feature | |||||||||||||||||||||||
of | of | |||||||||||||||||||||||
Warrants | Notes Payable | Total | Warrants | Notes Payable | Total | |||||||||||||||||||
Beginning balance, April 1, 2012 | $ | 134,791 | $ | 35,708 | $ | 170,499 | $ | - | $ | - | $ | - | ||||||||||||
Additional issuances | 1,800,725 | 1,831,865 | 3,632,590 | 171,877 | 35,708 | 207,585 | ||||||||||||||||||
Exercised/converted | (172,591 | ) | (178,495 | ) | (351,086 | ) | - | - | - | |||||||||||||||
Change in derivative liability | (99,531 | ) | (170,935 | ) | (270,466 | ) | (37,086 | ) | - | (37,086 | ) | |||||||||||||
Ending balance, March 31 | $ | 1,663,394 | $ | 1,518,143 | $ | 3,181,537 | $ | 134,791 | $ | 35,708 | $ | 170,499 |
Warrants | ||||
Outstanding - March 31, 2011 | 826,174 | |||
Granted | 1,500,000 | |||
Exercised | - | |||
Cancelled | - | |||
Outstanding - March 31, 2012 | 2,326,174 | |||
Granted | 58,496,842 | |||
Exercised | (900,000 | ) | ||
Cancelled | (1,426,174 | ) | ||
Outstanding - March 31, 2013 | 58,496,842 |
March 31, 2012 | March 31, 2011 | |||||||||||||
Weighted | Weighted | |||||||||||||
Average | Average | |||||||||||||
Exercise | Exercise | |||||||||||||
Options | Price | Options | Price | |||||||||||
Outstanding - March 31, 2011 | 2,000,000 | $ | 0.50 | 2,000,000 | $ | 0.50 | ||||||||
Granted | - | - | - | - | ||||||||||
Exercised | - | - | - | - | ||||||||||
Cancelled | - | - | - | - | ||||||||||
Outstanding - March 31, 2012 | 2,000,000 | $ | 0.50 | 2,000,000 | $ | 0.50 | ||||||||
Exercisable - end of year | 1,600,000 | $ | 0.50 | 1,200,000 | $ | 0.50 |
Weighted | ||||||
Average | ||||||
Exercise | ||||||
Options | Price | |||||
Outstanding - March 31, 2011 | 2,000,000 | $ | 0.50 | |||
Granted | - | - | ||||
Exercised | - | - | ||||
Cancelled | - | - | ||||
Outstanding - March 31, 2012 | 2,000,000 | $ | 0.50 | |||
Granted | - | - | ||||
Exercised | - | - | ||||
Cancelled | - | - | ||||
Outstanding - March 31, 2013 | 2,000,000 | $ | 0.50 | |||
Vested and expected to vest at March 31, 2013 | 2,000,000 | $ | 0.50 | |||
Exercisable at March 31, 2013 | 2,000,000 | $ | 0.50 |
March 31, | March 31, | |||||||
Deferred tax assets | 2012 | 2011 | ||||||
Net operating loss carryforward | $ | 6,243,339 | $ | 5,577,000 | ||||
Stock option compensation | 27,377 | - | ||||||
Warrants issued in connection with debt | 18,117 | - | ||||||
Total deferred tax assets | (6,288,833 | ) | (5,577,000 | ) | ||||
Net deferred tax assets | $ | - | $ | - | ||||
Deferred tax liabilities | ||||||||
Goodwill | $ | 42,343 | $ | - | ||||
Net deferred tax liabilities | $ | 42,343 | $ | - |
March 31, | March 31, | |||||||
Deferred tax assets | 2013 | 2012 | ||||||
Net operating loss carryforward | $ | 7,470,147 | $ | 6,243,339 | ||||
Share based compensation | 477,373 | 27,377 | ||||||
Warrants issued in connection with debt | 567,839 | 18,117 | ||||||
Total deferred tax assets | (8,515,359 | ) | (6,288,833 | ) | ||||
Net deferred tax assets | $ | - | $ | - | ||||
Deferred tax liabilities | ||||||||
Goodwill | $ | 55,914 | $ | 42,343 | ||||
Net deferred tax liabilities | 55,914 | 42,343 |
March 31, | March 31, | |||||||
2012 | 2011 | |||||||
Income tax benefit computed at the Federal statutory rate of 34% | $ | (682,051 | ) | $ | (487,000 | ) | ||
Increase in valuation allowance | 669,442 | 487,000 | ||||||
Other | 12,609 | - | ||||||
Amortization of goodwill | 42,343 | - | ||||||
Provision for income taxes | $ | 42,343 | $ | - |
March 31, | March 31, | |||||||
2013 | 2012 | |||||||
Income tax benefit from continuing operations computed at the Federal statutory rate of 34% | $ | (2,463,568 | ) | $ | (682,051 | ) | ||
Income tax expense from discontinued operations computed at the Federal statutory rate of 34% | 163,097 | - | ||||||
Increase in valuation allowance | 2,226,526 | 669,442 | ||||||
Other | 73,945 | 12,609 | ||||||
Amortization of goodwill | 13,571 | 42,343 | ||||||
Provision for income taxes | $ | 13,571 | $ | 42,343 |
Year Ended | ||||||||
March 31, | March 31, | |||||||
2012 | 2011 | |||||||
Revenues | $ | 4,315 | $ | 52,506 | ||||
Cost of sales | - | - | ||||||
Gross profit | 4,315 | 52,506 | ||||||
Operating Expenses: | ||||||||
Selling, general and administrative | - | 4,528 | ||||||
Total expenses | - | 4,528 | ||||||
Loss from discontinued operations | 4,315 | 47,978 | ||||||
Other (expense) income | ||||||||
Interest expense | (32,649 | ) | (31,831 | ) | ||||
Write down of payables | 47,330 | - | ||||||
Total other (expense) income | 14,681 | (31,831 | ) | |||||
Net income from discontinued operations | $ | 18,996 | $ | 16,147 |
Year Ended | ||||||||
March 31, | March 31, | |||||||
2013 | 2012 | |||||||
Revenues | $ | - | $ | 4,315 | ||||
Cost of sales | - | - | ||||||
Gross profit | - | 4,315 | ||||||
Operating Expenses: | ||||||||
Selling, general and administrative | - | - | ||||||
Total expenses | - | - | ||||||
Loss from discontinued operations | - | 4,315 | ||||||
Other (expense) income | ||||||||
Interest expense | - | (32,649 | ) | |||||
Write down of payables | 479,696 | 47,330 | ||||||
Total other (expense) income | 479,696 | 14,681 | ||||||
Net income from discontinued operations | $ | 479,696 | $ | 18,996 |
March 31, | March 31, | |||||||
2012 | 2011 | |||||||
Accounts payable and accrued expenses | $ | 622,603 | $ | 684,302 | ||||
Notes payable | 148,060 | 150,060 | ||||||
Notes payable, related party | 135,287 | 164,760 | ||||||
$ | 905,950 | $ | 999,122 |
March 31, | March 31, | |||||||
2013 | 2012 | |||||||
Accounts payable and accrued expenses | $ | - | 622,603 | |||||
Notes payable | - | 148,060 | ||||||
Notes payable, related party | 194,041 | 135,287 | ||||||
$ | 194,041 | $ | 905,950 |
Name | Age | Office |
John D. McPherson | 65 | Chairman of the Board of Directors |
Michael A. Barron | Chief Executive Officer, President and Director | |
Gilbert H. Lamphere | 61 | Director |
Wanda Witoslawski | Chief Financial Officer | |
John | Director | |
John H. Marino | Director | |
Thomas Mulligan | 61 | Director |
George Rebensdorf | 58 | Director |
· | Had a bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time. |
· | Been convicted in a criminal proceeding or been subject to a pending criminal proceeding, excluding traffic violations and other minor offenses. |
· | Been subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities. |
· | Been found by a court of competent jurisdiction (in a civil action), the SEC, or the Commodities Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated. |
· | Been the subject to, or a party to, any sanction or order, not subsequently reverse, suspended or vacated, of any self-regulatory organization, any registered entity, or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member. |
● | any breach of their duty of loyalty to our company or our stockholders; |
● | acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law; |
● | unlawful payments of dividends or unlawful stock repurchases or redemptions as provided in Section 174 of the Delaware General Corporation Law; and |
● | any transaction from which the director derived an improper personal benefit. |
Name and Principal Position | Year | Salary | Bonus | Other | Long-term Compensation Shares Granted | All Other Compensation | Total | Year | Salary | Bonus | Long-term Compensation Shares Granted (1) | All Other Compensation | Total | |||||||||||||||||||||||||||||||||
Michael A. Barron, | 2012 | $ | 180,000 | $ | - | $ | - | - | $ | 12,000 | $ | 192,000 | 2013 | $ | 246,967 | $ | - | $ | 70,000 | $ | 24,000 | $ | 340,967 | |||||||||||||||||||||||
CEO, President | 2011 | $ | 180,000 | - | - | - | 12,000 | $ | 192,000 | |||||||||||||||||||||||||||||||||||||
and Director | - | - | ||||||||||||||||||||||||||||||||||||||||||||
CEO, President and Director | 2012 | $ | 180,000 | - | - | 12,000 | $ | 192,000 | ||||||||||||||||||||||||||||||||||||||
Wanda Witoslawski | 2012 | $ | 120,000 | - | - | - | $ | 6,000 | $ | 126,000 | 2013 | $ | 142,055 | - | $ | 255,000 | $ | 7,500 | $ | 404,555 | ||||||||||||||||||||||||||
(appointed CFO on May 19, 2011) | 2011 | $ | 67,000 | - | - | 3,000,000 | - | $ | 67,000 | |||||||||||||||||||||||||||||||||||||
- | - | - | - | - | - | 2012 | 120,000 | - | $ | 220,000 | 6,000 | 346,000 |
(1) | Stock value calculation based on the price of the stock at agreement date. |
Name | Fees Earned or Paid in Cash ($) (b) | Stock Awards ($) (c) | Total ($) (h) | Fees Earned or Paid in Cash ($) | Stock Awards ($) (1) | Total ($) | ||||||||||||||||||
Gilbert H. Lamphere | 6,000 | 12,000 | 18,000 | |||||||||||||||||||||
John D. McPherson | 3,000 | 50,000 | 53,000 | 12,000 | - | 12,000 | ||||||||||||||||||
John H. Marino | 3,000 | 50,000 | 53,000 | 12,000 | - | 12,000 | ||||||||||||||||||
Thomas Mulligan | 0 | 0 | 0 | 11,000 | 50,000 | 61,000 | ||||||||||||||||||
Gilbert H. Lamphere | 12,000 | - | 12,000 | |||||||||||||||||||||
John O’Connor | 3,000 | 50,000 | 53,000 |
(1) | Stock value calculation based on the price of the stock at agreement date |
OPTION AWARDS | OPTION AWARDS | STOCK AWARDS | OPTION AWARDS | STOCK AWARDS | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name (a) | Number of Securities Underlying Unexercised Options (#) Exercisable (b) | Number of Securities Underlying Unexercised Options (#) Unexercisable (c) | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) (d) | Option Exercise Price ($) (e) | Option Expiration Date (f) | Number of Shares or Units of Stock That Have Not Vested (#) (g) | Market Value of Shares or Units of Stock That Have Not Vested ($) (h) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) (i) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (#) (j) | Number of Securities Underlying Unexercised Options (#) Exercisable (b) | Number of Securities Underlying Unexercised Options (#) Unexercisable (c) | Equity Incentive Plan Awards: Number of Securities Underlying Unexercised Unearned Options (#) (d) | Option Exercise Price ($) (e) | Option Expiration Date (f) | Number of Shares or Units of Stock That Have Not Vested (#) (g) | Market Value of Shares or Units of Stock That Have Not Vested ($) (h) | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) (i) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested (#) (j) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Michael A. Barron | 1,000,000 | - | - | $ | 0.50 | 10/31/13 | - | - | - | - | 1,000,000 | - | - | $ | 0.50 | 10/31/13 | - | - | - | - | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Joseph Cosio-Barron | 1,000,000 | - | - | $ | 0.50 | 10/31/13 | - | - | - | - |
Name and Address of Beneficial Owner (1) | Number of Shares Beneficially Owned (2) | % of Common Stock Beneficially Owned (3) | ||||||
Gilbert H. Lamphere, Chairman (5) | 100,000 | 0.21 | % | |||||
Allegheny Nevada Holdings Corporation (6) | 1,98,866 | 4.07 | % | |||||
Michael A. Barron, CEO and President (1) | 2,642,857 | 5.43 | % | |||||
JMW Fund LLC (4) | 2,584,477 | 5.38 | % | |||||
John D. McPherson, Director | 600,000 | 1.23 | % | |||||
John Marino, Director | 1,000,000 | 2.06 | % | |||||
Wanda Witoslawski, CFO, Secretary and Treasurer | 1,000,000 | 2.06 | % | |||||
Officers and Directors as a group | 5,342,857 | 10.99 | % |
Name and Address of Beneficial Owner (1) | Number of Shares Beneficially Owned (2) | % of Common Stock Beneficially Owned (3) | ||||||
John D. McPherson, Chairman | 600,000 | 0.4 | % | |||||
Michael A. Barron, CEO and President (4) | 25,654,502 | 15.6 | % | |||||
Wanda Witoslawski, CFO and Treasury | 2,728,571 | 1.8 | % | |||||
Gilbert H. Lamphere (5) | 14,471,981 | 9.1 | % | |||||
John H. Marino (6) | 1,721,000 | 1.1 | % | |||||
Thomas M. Mulligan | 500,000 | 0.3 | % | |||||
John M.B. O’Connor | 500,000 | 0.3 | % | |||||
Officers and Directors as a group | 46,176,054 | 28.6 | % |
(1) | The address of each of the beneficial owners is 6650 Via Austi Parkway, Suite 170, Las Vegas Nevada | |
(2) | In computing the number of shares beneficially owned by a person and the percentage ownership of that person, shares of common stock subject to options held by that person that are currently exercisable, or become exercisable within 60 days are deemed outstanding. However, such shares are not deemed outstanding for purposes of computing the percentage ownership of any other person. | |
(3) | Based on | |
(4) | ||
(5) | ||
(6) |
(1) | Financial Statements: The following financial statements are included in Item 8 of this report: | ||
● | Balance Sheets as of March 31, | ||
● | Statements of Operations for the fiscal years ended March 31, | ||
● | Statements of Cash Flows for the fiscal years ended March 31, | ||
● | Statement of Stockholders’ | ||
● | Notes to | ||
● |
Exhibit No. | Description | |
3.2 | Articles of Incorporation (incorporated herein by reference to Form SB-2, filed on July 31, | |
3.3 | By-Laws of the Registrant (incorporated herein by reference to Form SB-2, filed on July 31, | |
3.4A | Amended By-Laws of the Registrant dated November 3, 2008 (incorporated herein as referenced on Form 10-K, as filed on June 30, | |
3.4B | Amended Articles of Incorporation (incorporated herein as referenced on Form 10-K, as filed on June 30, | |
3.5 | Amended Articles of Incorporation as dated March 19, 2010 (incorporated herein as referenced on Form 10-K, as filed on June 30, | |
3.6 | Certificate of Merger, as dated March 19, 2010, by and between Liberty Capital Asset Management, Inc. and Las Vegas Railway Express (incorporated herein as referenced on Form 10-K, as filed on June 30, | |
3.7 | Amended Articles of Incorporation as dated April 19, 2010 (incorporated herein as referenced on Form 10-K, as filed on June 30, | |
3.8 | Amended By-Laws of the Registrant (incorporated herein as referenced on Form 10-K, as filed on June 30, | |
10.1 | Advisory Agreement, by and between E/W Capital and Las Vegas Railway Express, Inc., dated July 1, 2010 (incorporated herein as referenced to Exhibit 12 on Form 8-K, as filed July 8, 2010) | |
10.2 | Employment Agreement with Michael A. Barron, dated February 1, 2012 (incorporated herein as referenced on Form 10-K, as filed on July 10, 2012) | |
10.3 | Employment Agreement with Wanda Witoslawski, dated February 1, 2012 (incorporated herein as referenced on Form 10-K, as filed on July 10, 2012) | |
10.4 | Memorandum of Understanding with T-UPR (The Plaza Hotel & Casino), dated May 1, | |
10.5 | Union Pacific Railroad Company Public Project Reimbursement Agreement, dated December 1, | |
10.6 | Memorandum of Understanding with National Railroad Passenger Corporation, dated January 13, | |
10.7 | Form of Subscription Agreement (filed as exhibit to 8-K filed on March 19, 2013 and incorporated herein by reference). | |
10.8 | Form of Note (filed as exhibit to 8-K filed on March 19, 2013 and incorporated herein by reference). | |
10.9 | Form of Investor Warrant (filed as exhibit to 8-K filed on March 19, 2013 and incorporated herein by reference). | |
31.1 | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
31.2 | Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |
32.1 | Certification of Chief Executive | |
32.2 | Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
101 INS | XBRL Instance Document* | |
101 SCH | XBRL Schema Document* | |
101 CAL | XBRL Calculation Linkbase Document* | |
101 DEF | XBRL Definition Linkbase Document* | |
101 LAB | XBRL Labels Linkbase Document* | |
101 PRE | XBRL Presentation Linkbase Document* | |
LAS VEGAS RAILWAY EXPRESS, INC. | |
By: | /s/Michael A. Barron |
Michael A. Barron, Chief Executive Officer Principal Executive Officer |
Name | Title | Date | ||
/s/Michael A. Barron | Chief Executive Officer, Director (principal executive officer) | |||
Michael A. Barron | ||||
Chief Financial Officer (principal financial and accounting officer) | ||||
Wanda Witoslawski | ||||
/s/John D. McPherson | Chairman | |||
John D. McPherson | ||||
/s/John H. Marino | Director | |||
John H. Marino | ||||
/s/Gilbert H. Lamphere | Director | |||
Gilbert H. Lamphere | ||||
/s/ | Director | |||
/s/John O’Connor | Director | July 1, 2013 | ||
John O’Connor | ||||
/s/George Rebensdorf | Director | July 1, 2013 | ||
George Rebensdorf |