Nevada | 33-0677140 | |
State or other jurisdiction ofincorporation or organization | (IRS Employer | |
Identification Number) |
Large accelerated filer | o | Accelerated filer | o |
Non-accelerated filer | o | Smaller reporting company | x |
(Do not check if smaller reporting company) |
Period | High Bid | Low Bid | ||||||
1st Qtr. 2011 | .028 | .011 | ||||||
2nd Qtr. 2011 | .031 | .011 | ||||||
3rd Qtr. 2011 | .0297 | .011 | ||||||
4th Qtr. 2011 | .0297 | .015 | ||||||
1 st Qtr. 2012 | .0296 | .0098 | ||||||
2 nd Qtr. 2012 | .015 | .0045 | ||||||
3 rd. Qtr. 2012 | .01 | .0039 | ||||||
4 th Qtr. 2012 | .008 | .0023 |
Period | High Bid | Low Bid | ||||||
1st Qtr 2008 | .20 | .10 | ||||||
2nd Qtr 2008 | .16 | .07 | ||||||
3rd Qtr 2008 | .11 | .03 | ||||||
4th Qtr 2008 | .07 | .01 | ||||||
1 st Qtr 2009 | .11 | .02 | ||||||
2 nd Qtr 2009 | .075 | .02 | ||||||
3 rd Qtr 2009 | .11 | .03 | ||||||
4 th Qtr 2009 | .19 | .04 |
Name | Age | Positions Held and Tenure | ||
Steven Onoue | Director since July, 2002 | |||
Kenneth Bosket | CEO, Director since June 2008 | |||
Montse Zaman | Secretary, Treasurer, Director since February, 2008 | |||
Lowell Holden | CFO, Director since January 2010 |
Name and Principal Position | Annual compensation | Long-term compensation | |||||||
Salary ($) | Bonus ($) | Other annual compen -sation ($) | Awards | Payouts | All other compen- sation ($) (1) | ||||
Year | Restricted stock award(s) ($) | Securities under- lying options/ SARs (#) | LTIP payouts ($) | Total Compensation | |||||
Kenneth Bosket, CEO, Director | 2012 2011 2010 | 2,750 35,000 28,000 | - - | - - | 19,538 37,000 38,000 | - - | - - | 22,288 72,000 66,000 | |
Arnulfo Saucedo-Bardan, Chairman, Director (1) | 2012 2011 2010 | 2,750 35,000 29,400 | - - - | - - - | 19,538 37,000 39,600 - | - - - | - - - | 22,288 72,000 69,000 | |
Montse Zaman, Secretary, Treasurer, Director | 2012 2011 2010 | 3,000 64,500 61,250 | - - - | - - - | 43,385 79,500 87,950 | - - - | - - - | 46,385 144,000 149,200 | |
Lowell Holden CFO, Director | 2012 2011 2010 | 2,750 35,000 31,500 | - - - | - - | 34,077 37,000 28,500 | - - | - - | 36,827 72,000 60,000 - |
(1) | Mr. Saucedo-Bardan resigned as a director and chairman during 2012 |
Name | Position | Filed Reports | ||
Steven Onoue | Director | Yes | ||
Kenneth Bosket | Officer, Director | Yes | ||
Montse Zaman | Officer, Director | Yes | ||
Lowell Holden | Officer, Director | Yes | ||
Crown Marketing | Shareholder | Yes |
Names and Addresses | Number of Shares Owned Beneficially | Percent of Beneficially Owned Shares | ||||||
Steven Onoue (1) | 350,000 | 0.48 | % | |||||
5440 Sahara, Suite 205 | ||||||||
Las Vegas, NV 89146 | ||||||||
Kenneth Bosket (1) | 510,002 | 0.7 | % | |||||
5440 Sahara, Suite 205 | ||||||||
Las Vegas, NV 89146 | ||||||||
Arnulfo Saucedo-Bardan (1) | 680,000 | 0.93 | % | |||||
5440 Sahara, Suite 205 | ||||||||
Las Vegas, NV 89146 | ||||||||
Montse Zaman (1) | 1,082,000 | 1.48 | % | |||||
5440 Sahara, Suite 205 | ||||||||
Las Vegas, NV 89146 | ||||||||
Lowell Holden(1) | 156,000 | .22 | % | |||||
5440 Sahara, Suite 205 | ||||||||
Las Vegas, NV 89146 | ||||||||
Crown Marketing Corporation | 44,079,410 | 60.48 | ||||||
Mina #222 Sur, Gomez Palacio | ||||||||
Durango Mexico CP 35000 | ||||||||
Aida Bardan Gloria(2) | 44,079,410 | 60.48 | �� | |||||
Mina #222 Sur, Gomez Palacio | ||||||||
Durango Mexico CP 35000 | ||||||||
All directors and officers as a group (5) | 2,778,002 | 3.81 | % |
Names and Addresses | Number of Shares Owned Beneficially | Percent of Beneficially Owned Shares | ||||||
Steven Onoue (1) | 3,500,000 | .40 | % | |||||
5440 Sahara, Suite 205 | ||||||||
Las Vegas, NV 89146 | ||||||||
Kenneth Bosket (1) | 9,736,636 | 1.11 | % | |||||
5440 Sahara, Suite 205 | ||||||||
Las Vegas, NV 89146 | ||||||||
Montse Zaman (1) | 88,338,040 | 10.03 | % | |||||
5440 Sahara, Suite 205 | ||||||||
Las Vegas, NV 89146 | ||||||||
Lowell Holden(1) | 5,980,375 | .68 | % | |||||
5440 Sahara, Suite 205 | ||||||||
Las Vegas, NV 89146 | ||||||||
Crown Marketing Corporation | 440,794,100 | 50.07 | ||||||
Mina #222 Sur, Gomez Palacio | ||||||||
Durango Mexico CP 35000 | ||||||||
Aida Bardan Gloria(2) | 440,794,100 | 50.07 | ||||||
Mina #222 Sur, Gomez Palacio | ||||||||
Durango Mexico CP 35000 | ||||||||
All directors and officers as a group (4) | 107,555,051 | 12.22 | % |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |||||||||
(a) | (b) | (c) | ||||||||||
Equity compensation plans approved by security holders | 0 | n/a | 6,629,000 | |||||||||
Equity compensation plans not approved by security holders | 0 | |||||||||||
Total | 6,629,000 |
Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |||||||||
(a) | (b) | (c) | ||||||||||
Equity compensation plans approved by security holders | -- | -- | 66,290,000 | |||||||||
Equity compensation plans not approved by security holders | -- | -- | -- | |||||||||
Total | -- | -- | 66,290,000 |
· | Ken Bosket, CEO and director, |
· |
· |
2009 | 2008 | 2012 | 2011 | |||||||||||||
Audit fees | $ | 13,828 | $ | 12,223 | $ | 31,300 | 22,000 | |||||||||
Audit related fees | 0 | 0 | - | - | ||||||||||||
Tax fees | 6,000 | 0 | -- | 1,500 | ||||||||||||
All other fees | 0 | 0 | - | - |
(a) | Financial Statements and Schedules |
Report of Independent Registered Public Accounting Firm | F-1 | |||
Consolidated Balance Sheets as of December 31, | F-2 | |||
Consolidated Statements of Operations for the Years Ended December 31, | F-3 | |||
Consolidated Statement of Stockholders’ Equity for the Years Ended December 31, | F-4 | |||
F-5 | ||||
Notes to the Consolidated Financial Statements | F-6 |
ExhibitNumber | Description | |
Certifications Required by Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||
Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
101.INS ** | XBRL Instance Document | |
101.SCH ** | XBRL Taxonomy Extension Schema Document | |
101.CAL ** | XBRL Taxonomy Extension Calculation Linkbase Document | |
101.DEF ** | XBRL Taxonomy Extension Definition Linkbase Document | |
101.LAB ** | XBRL Taxonomy Extension Label Linkbase Document | |
101.PRE ** | XBRL Taxonomy Extension Presentation Linkbase Document |
CROWN EQUITY HOLDINGS, INC. | |||
By: | /s/ Kenneth Bosket | ||
Kenneth Bosket, Chief Executive Officer |
Signature | Title | ||
/s/ Kenneth Bosket | Director, Chief Executive Officer | ||
Kenneth Bosket | |||
/s/ Steven Onoue | Chairman, Director | ||
Steven Onoue | |||
/s/ Montse Zaman | Director, Secretary, Treasurer | ||
Montse Zaman | |||
/s/ Lowell Holden | Director, Chief Financial Officer (Principal Financial | ||
Lowell Holden | Officer), Principal Accounting Officer |
December 31, 2009 | December 31, 2008 | |||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 249,612 | $ | 2,898 | ||||
Prepaid Expenses | 8,102 | — | ||||||
Total current assets | 257,714 | 2,898 | ||||||
Fixed assets | ||||||||
Equipment, net of accumulated depreciation | 17,993 | 43,373 | ||||||
Restricted securities | 204,500 | — | ||||||
Total Assets | $ | 480,207 | $ | 46,271 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY(DEFICIT) | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued expenses | $ | 14,332 | $ | 40,393 | ||||
Accounts payable - related party | — | 74,718 | ||||||
Salaries payable | — | 23,000 | ||||||
Advances from related party | — | 85,915 | ||||||
Note payable - related party | 51,210 | |||||||
Notes payable | — | 13,700 | ||||||
Tax payable | 16,990 | — | ||||||
Deferred revenue | 62,000 | — | ||||||
Total current liabilities | 93,322 | 288,936 | ||||||
Long term liabilities | ||||||||
Notes payable – related parties | 87,209 | — | ||||||
Total liabilities | 180,531 | 288,936 | ||||||
STOCKHOLDERS’ EQUITY(DEFICIT) | ||||||||
Preferred stock, $001 par value, 10,000,000 authorized, none issued | ||||||||
Common stock, $.001 par value, 490,000,000 shares authorized, | ||||||||
72,880,632 and 69,199,632 shares issued and outstanding, respectively | 72,881 | 69,200 | ||||||
Additional-paid-in-capital | 6,475,637 | 6,030,904 | ||||||
Accumulated deficit | (6,248,842 | ) | (6,342,769 | ) | ||||
Total stockholders’ equity(deficit) | 299,676 | (242,665 | ) | |||||
Total Liabilities and Stockholders’ Equity(Deficit) | $ | 480,207 | $ | 46,271 |
December 31, | ||||||||
2012 | 2011 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 1,209 | $ | 84,325 | ||||
Marketable securities | 105,000 | 82,400 | ||||||
Accounts receivable | -- | 12,395 | ||||||
Prepaid expense | 35,000 | 2,400 | ||||||
Total current assets | 141,209 | 181,520 | ||||||
Property and equipment, net of accumulated depreciation of $54,705 and $29,732, respectively | 19,286 | 44,208 | ||||||
Equity method investment held in related party | 132,988 | 737,377 | ||||||
Total assets | $ | 293,483 | $ | 963,105 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable and accrued expense | $ | 132,002 | $ | 182,697 | ||||
Notes payable to related parties | 109,819 | 95,209 | ||||||
Notes payable | 2,000 | -- | ||||||
Deferred revenue from related party | -- | 193,219 | ||||||
Total current liabilities | 243,821 | 471,125 | ||||||
Stockholders’ equity: | ||||||||
Preferred stock; $0.001 par value, 100,000,000 shares authorized, 99,000,000 undesignated authorized | ||||||||
Series A convertible preferred stock; $0.001 par value, 1,000,000 shares authorized, 0 and 600,000 shares issued and outstanding, respectively | -- | 600 | ||||||
Common stock, $0.001 par value, 4,900,000,000 authorized, 880,325,835and 798,360,078 issued and outstanding, respectively | 880,326 | 798,361 | ||||||
Additional paid-in capital | 7,938,818 | 7,673,372 | ||||||
Accumulated deficit | (8,769,482 | ) | (7,980,353 | ) | ||||
Total stockholders’ equity | 49,662 | 491,980 | ||||||
Total liabilities and stockholders’ equity | $ | 293,483 | 963,105 |
Years Ended | ||||||||
December 31, | ||||||||
2012 | 2011 | |||||||
Revenue | $ | 2,554 | $ | 989,033 | ||||
Revenue from related party | 21,800 | 581,781 | ||||||
Total revenue | 24,354 | 1,570,814 | ||||||
Direct material costs | 8,588 | 6,420 | ||||||
Operating expenses: | ||||||||
General and administrative expense | 346,651 | 1,989,524 | ||||||
Depreciation | 24,973 | 19,209 | ||||||
Loss from operations | (355,858 | ) | (444,339 | ) | ||||
Other income (expenses): | ||||||||
Other income | 2,972 | 1,064 | ||||||
Realized loss on marketable securities | (4,484 | ) | (84,841 | ) | ||||
Unrealized gain (loss) on marketable securities | 28,000 | (1,435,600 | ) | |||||
Interest expense | (43,865 | ) | (11,668 | ) | ||||
Impairment of equity method investment in related party | (172,617 | ) | -- | |||||
Loss on equity method investment in related party | (234,581 | ) | (37,623 | ) | ||||
Loss on debt extinguishment | (7,200 | ) | -- | |||||
Other expense | (1,496 | ) | (8,787 | ) | ||||
Total other expense | (433,271 | ) | (1,577,455 | ) | ||||
Net loss | (789,129 | ) | (2,021,794 | ) | ||||
Deemed dividend on Series A convertible preferred stock | -- | (600,000 | ) | |||||
Net loss attributable to common stockholders | $ | (789,129 | ) | $ | (2,621,794 | ) | ||
Net loss per share, basic and diluted | $ | (0.00 | ) | $ | (0.00 | ) | ||
Weighted average number of shares outstanding, basic and diluted | 856,423,784 | 786,135,684 |
2009 | 2008 | |||||||
Revenues | $ | 659,907 | $ | 23,190 | ||||
Cost of revenues | 2,805 | 17,341 | ||||||
Operating expenses: | ||||||||
General and administrative | 568,643 | 293,675 | ||||||
Depreciation | 25,380 | 25,380 | ||||||
Operating income(loss) | 63,079 | (313,204 | ) | |||||
Other income | ||||||||
Gain on debt forgiveness | 16,083 | — | ||||||
Interest income | 225 | — | ||||||
Realized gain(loss) | 9,515 | — | ||||||
Unrealized gain(loss) | 26,387 | — | ||||||
Total other income | 52,210 | — | ||||||
Other expenses: | ||||||||
Interest expense | (3,015 | ) | (2,927 | ) | ||||
Other expense | (1,357 | ) | — | |||||
Total other expense | (4,372 | ) | (2,927 | ) | ||||
Total other income(expense) | (47,838 | ) | (2,927 | ) | ||||
Net income(loss) before taxes | $ | 110,917 | $ | (316,131 | ) | |||
Tax | $ | 16,990 | — | |||||
Net income (loss) | $ | 93,927 | $ | (316,131 | ) | |||
Net income(loss) per share: | ||||||||
Net income(loss) basic and diluted | $ | 0.00 | $ | (0.00 | ) | |||
Weighted average shares outstanding: | ||||||||
Basic and diluted | 71,881,265 | 68,793,729 |
Additional | Total | |||||||||||||||||||||||||||
Preferred Stock | Common Stock | Paid-In | Accumulated | Stockholders’ | ||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Deficit | Equity | ||||||||||||||||||||||
Balances at December 31, 2010 | -- | $ | -- | 753,737,071 | $ | 753,737 | $ | 6,222,775 | $ | (5,958,559 | ) | $ | 1,017,953 | |||||||||||||||
Issuance of common stock for services | -- | -- | 44,623,007 | 44,624 | 851,197 | -- | 895,821 | |||||||||||||||||||||
Issuance of preferred stock for cash | 600,000 | 600 | -- | -- | 599,400 | -- | 600,000 | |||||||||||||||||||||
Beneficial conversion feature on preferred stock | -- | -- | -- | -- | 600,000 | -- | 600,000 | |||||||||||||||||||||
Deemed dividend on preferred stock | -- | -- | -- | -- | (600,000 | ) | -- | (600,000 | ) | |||||||||||||||||||
Net loss | -- | -- | -- | -- | -- | (2,021,794 | ) | (2,021,794 | ) | |||||||||||||||||||
Balances at December 31, 2011 | 600,000 | 600 | 798,360,078 | 798,361 | 7,673,372 | (7,980,353 | ) | 491,980 | ||||||||||||||||||||
Issuance of common stock for services | -- | -- | 15,779,045 | 15,778 | 223,333 | -- | 239,111 | |||||||||||||||||||||
Common stock issued for preferred stock | (600,000 | ) | (600 | ) | 60,000,000 | 60,000 | (59,400 | ) | -- | -- | ||||||||||||||||||
Issuance of common stock for cash | -- | -- | 1,000,000 | 1,000 | 9,000 | -- | 10,000 | |||||||||||||||||||||
Stock returned and cancelled | -- | -- | (713,288 | ) | (713 | ) | 713 | -- | -- | |||||||||||||||||||
Stock issued for debt | -- | -- | 5,900,000 | 5,900 | 60,300 | -- | 66,200 | |||||||||||||||||||||
Beneficial conversion feature on debt | -- | -- | -- | -- | 31,500 | -- | 31,500 | |||||||||||||||||||||
Net loss | -- | -- | -- | -- | -- | (789,129 | ) | (789,129 | ) | |||||||||||||||||||
Balances at December 31, 2012 | -- | $ | -- | 880,325,835 | $ | 880,326 | $ | 7,938,818 | $ | (8,769,482 | ) | $ | 49,662 |
Additional | ||||||||||||||||||||
Common Shares | Paid In | Accumulated | ||||||||||||||||||
Shares | Amount | Capital | Deficit | Total | ||||||||||||||||
Balance, December 31, 2007 | 68,572,984 | $ | 68,573 | $ | 5,922,397 | $ | (6,026,638 | ) | $ | (35,668 | ) | |||||||||
Issuance of common stock for accounts payable | 100,000 | 100 | 14,900 | 15,000 | ||||||||||||||||
Issuance of common stock for services | 836,668 | 837 | 93,297 | 94,134 | ||||||||||||||||
Cancellation of common stock | (310,020 | ) | (310 | ) | 310 | — | ||||||||||||||
Net loss | (316,131 | ) | (316,131 | ) | ||||||||||||||||
Balance, December 31, 2008 | 69,199,632 | $ | 69,200 | $ | 6,030,904 | $ | (6,342,769 | ) | $ | (242,665 | ) | |||||||||
Issuance of common stock for cash | 250,000 | 250 | 24,750 | 25,000 | ||||||||||||||||
Issuance of common stock for accounts payable | 60,000 | 60 | 5,940 | 6,000 | ||||||||||||||||
Issuance of common stock for service | 896,000 | 896 | 72,024 | 72,920 | ||||||||||||||||
issuance of common stock for service to related parties | 2,475,000 | 2,475 | 235,955 | 238,430 | ||||||||||||||||
Debt forgiveness related party | 106,064 | 106,064 | ||||||||||||||||||
Net income | 93,927 | 93,927 | ||||||||||||||||||
Balance , December 31, 2009 | 72,880,632 | 72,881 | 6,457,637 | (6,248,842 | ) | 299,676 |
Years Ended | ||||||||
December 31, | ||||||||
2012 | 2011 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (789,129 | ) | $ | (2,021,794 | ) | ||
Adjustments to reconcile net loss to net cash | ||||||||
used in operating activities: | ||||||||
Depreciation expense | 24,973 | 19,209 | ||||||
Common stock issued for services | 239,111 | 895,821 | ||||||
Amortization of debt discount | 31,500 | -- | ||||||
Bad debt expense | 12,395 | -- | ||||||
Unrealized (gain) loss on marketable securities | (28,000 | ) | 1,435,600 | |||||
Realized loss on marketable securities | 4,484 | 84,841 | ||||||
Marketable securities received for revenue | -- | (705,857 | ) | |||||
Securities held in related party equity method investee received for related party revenue | -- | (581,781 | ) | |||||
Impairment of equity method investment held in related party | 172,617 | -- | ||||||
Loss on equity method investment held in related party | 234,581 | 37,623 | ||||||
Loss on extinguishment of debt | 7,200 | -- | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | -- | (1,730 | ) | |||||
Prepaid expense | (32,600 | ) | -- | |||||
Accounts payable and accrued expense | (50,695 | ) | (2,801 | ) | ||||
Deferred revenue | -- | (216,095 | ) | |||||
Net cash used in operating activities | (173,563 | ) | (1,056,964 | ) | ||||
Cash flows from investing activities: | ||||||||
Proceeds from the sale of marketable securities | 4,888 | 398,767 | ||||||
Cash paid for acquisition of fixed assets | (51 | ) | (7,205 | ) | ||||
Net cash provided by investing activities | 4,837 | 391,562 | ||||||
Cash flows from financing activities: | ||||||||
Proceeds from the issuance of related party debt | 14,610 | -- | ||||||
Proceeds from issuance of preferred stock | -- | 600,000 | ||||||
Proceeds from issuance of common stock | 10,000 | -- | ||||||
Proceeds from the issuance of convertible debt | 35,000 | -- | ||||||
Proceeds from the issuance of debt | 26,000 | -- | ||||||
Net cash provided by financing activities | 85,610 | 600,000 | ||||||
Net decrease in cash | (83,116 | ) | (65,402 | ) | ||||
Cash – beginning of year | 84,325 | 149,727 | ||||||
Cash – end of year | $ | 1,209 | $ | 84,325 | ||||
SUPPLEMENT DISCLOSURES: | ||||||||
Interest paid | $ | 13 | $ | 48 | ||||
Income taxes paid | -- | -- | ||||||
NONCASH INVESTING AND FINANCING ACTIVITIES: | ||||||||
Common stock issued for the conversion of preferred stock | $ | 60,000 | $ | -- | ||||
Common stock issued for the conversion of debt | 59,000 | -- | ||||||
Beneficial conversion feature on debt | 31,500 | -- | ||||||
Common stock returned and cancelled | 713 | -- | ||||||
Related party deferred revenue written-off against carrying value of equity method investment in related party | 193,219 | -- | ||||||
Equity method investment received for related party deferred revenue | -- | 193,219 | ||||||
Deemed dividend beneficial conversion feature on convertible preferred stock | -- | 600,000 |
2009 | 2008 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net income(loss) | $ | 93,927 | $ | (316,131 | ) | |||
Adjustments to reconcile net loss to cash used | ||||||||
in operating activities: | ||||||||
Depreciation expense | 25,380 | 25,380 | ||||||
Common stock issued for services | 311,350 | 94,135 | ||||||
Unrealized (gain)/loss on securities | (26,387 | ) | — | |||||
Realized (gain)/loss on securities | (9,515 | ) | — | |||||
Net Change in: | ||||||||
Accounts receivable | — | 14,004 | ||||||
Accounts payable and accrued expenses | (16,736 | ) | 22,357 | |||||
Accounts payable and accrued expense- related party | (14,187 | ) | 32,861 | |||||
Prepaid expenses | (8,102 | ) | — | |||||
Restricted Securities | (106,597 | ) | — | |||||
Income Tax Payable | 16,990 | — | ||||||
Accrued salaries | (23,000 | ) | — | |||||
TOTAL CASH FLOWS PROVIDED IN OPERATING ACTIVITIES | 243,123 3 | (127,394 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Advances- related party | (10,409 | ) | 66,005 | |||||
Note payable payments to - related party | (10,000 | ) | 14,335 | |||||
(Payments on) note payable | (1,000 | ) | 1,000 | |||||
Proceeds for sale of stock | 25,000 | — | ||||||
TOTAL CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | 3,591 | 81,340 | ||||||
Net Increase (Decrease) in Cash | 246,714 | (46,054 | ) | |||||
Cash, beginning of period | 2,898 | 48,952 | ||||||
Cash, end of period | $ | 249,612 | $ | 2,898 | ||||
SUPPLEMENTAL DISCLOSURES: | ||||||||
Cash paid for interest | $ | - | $ | - | ||||
Cash paid for income taxes | - | - | ||||||
NONCASH TRANSACTIONS: | ||||||||
Common stock issued for stock payable | $ | — | $ | 15,000 | ||||
Securities received for deferred revenue | 62,000 | — | ||||||
Stock for accounts payable and accrued liabilities | 6,000 | — | ||||||
Related party liabilities converted to long term debt-related party | 97,209 | — |
December 31, 2011 | ||||||||
As Previously | As | |||||||
Reported | Revised | |||||||
Marketable securities held in related party | $ | 480,000 | $ | -- | ||||
Total current assets | 661,520 | 181,520 | ||||||
Equity method investments held in related party | -- | 737,377 | ||||||
Total assets | 705,728 | 963,105 | ||||||
Accumulated deficit | (8,237,730 | ) | (7,980,353 | ) | ||||
Total stockholders’ equity | 234,603 | 491,980 | ||||||
Total liabilities and stockholders’ equity | $ | 705,728 | $ | 963,105 |
Year Ended | ||||||||
December 31, 2011 | ||||||||
As Previously | As | |||||||
Reported | Revised | |||||||
Unrealized loss on marketable securities | $ | (1,730,600 | ) | $ | (1,435,600 | ) | ||
Loss on equity method investment in related party | -- | (37,623 | ) | |||||
Total other expense | (1,834,810 | ) | (1,577,455 | ) | ||||
Net loss | (2,279,171 | ) | (2,021,794 | ) | ||||
Net loss attributable to common stockholders | $ | (2,879,171 | ) | $ | (2,621,794 | ) |
Year Ended | ||||||||
December 31, 2011 | ||||||||
As Previously | As | |||||||
Reported | Revised | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (2,279,171 | ) | $ | (2,021,794 | ) | ||
Adjustments to reconcile net loss to net cash | ||||||||
used in operating activities: | ||||||||
Unrealized loss on related party marketable securities | 295,000 | -- | ||||||
Marketable securities received for related party revenue | (581,781 | ) | -- | |||||
Securities held in related party equity method investee received for related party revenue | -- | (581,781 | ) | |||||
Loss on equity method investments held in related party | $ | -- | $ | 37,623 |
2009 | 2008 | 2012 | 2011 | |||||||||||||
Computer equipment | $ | 76,134 | 76,134 | |||||||||||||
Computer equipment (useful lives of 3 to 5 years) | $ | 73,991 | $ | 73,940 | ||||||||||||
Less: accumulation depreciation | (58,141 | ) | (32,761 | ) | (54,705 | ) | (29,732) | |||||||||
Net property and equipment | $ | 17,993 | 43,373 | $ | 19,286 | $ | 44,208 |
Description | 2009 | |||
Tax provision at statutory rates | $ | 20,948 | ||
Unrealized gain on securities (temporary difference) | (3,958 | ) | ||
– | ||||
Total income tax provision | $ | 16,990 |
· | Two 60-day unsecured notes bearing interest at 6% per annum for $10,000 and $14,000 |
· | One 60-day note for $35,000 bearing no interest that automatically converts into 3,500,000 shares of the Company stock if the note is not paid within the 60 day time period. |
· | A demand non-interest bearing note for $2,000 from a non-related party. |
· | 15,779,045 common shares for services with a value of $239,111 |
· | 60,000,000 common shares for the conversion of 600,000 preferred shares |
· | 1,000,000 common shares for cash of $10,000, |
· | and 5,900,000 common shares for the conversion of notes payable valued at $66,200 (see Note 6). |
2012 | 2011 | |||||||
Net operating loss | $ | 203,000 | $ | 1,000 | ||||
Valuation allowance | (203,000 | ) | (1,000 | ) | ||||
Net deferred tax asset | $ | - | $ | - |