o | REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 |
x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. |
o | SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934. |
Common Stock, $0.001 Par Value | OTC-QB |
(Title of Class) | (Exchange on which registered) |
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Note: | Checking the box above will not relieve any registrant required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 from their obligations under those Sections. |
Large accelerated filer o | Accelerated filer o | Non-accelerated filer þ |
U.S. GAAP þ | International Financial Reporting Standards as issued | Other o |
by the International Accounting Standards Board o |
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TABLE OF CONTENTS | ||
Item 1. | IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS | 5 |
Item 2. | OFFER STATISTICS AND EXPECTED TIMETABLE | 5 |
Item 3. | KEY INFORMATION | 5 |
Item 4. | INFORMATION ON THE COMPANY | 8 |
Item 4A. | UNRESOLVED STAFF COMMENTS | 10 |
Item 5. | OPERATING AND FINANCIAL REVIEW AND PROSPECTS | 10 |
Item 6. | DIRECTORS, SENIOR MANAGEMENT AND EMPLOYEES | 13 |
Item 7. | MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS | 16 |
Item 8. | FINANCIAL INFORMATION | 17 |
Item 9. | THE OFFER AND LISTING | 18 |
Item 10. | ADDITIONAL INFORMATION | 20 |
Item 11. | QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK ... | 21 |
Item 12. | DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES | 21 |
Item 13. | DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES | 21 |
Item 14. | MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS | 21 |
Item 15. | CONTROLS AND PROCEDURES | 21 |
Item 16A. | AUDIT COMMITTEE FINANCIAL EXPERT | 23 |
Item 16B. | CODE OF ETHICS | 23 |
Item 16C. | PRINCIPAL ACCOUNTANT FEES AND SERVICES | 23 |
Item 16D. | EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES... | 24 |
Item 16E. | PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS | 24 |
Item 16F. | CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT | 24 |
Item 16G. | CORPORATE GOVERNANCE | 24 |
Item 17. | FINANCIAL STATEMENTS | 26 |
Item 18. | FINANCIAL STATEMENTS | 27 |
Item 19. | EXHIBITS | 27 |
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Period from Jan. 1, 2007 to Dec. 31, 2007 | Period from Jan. 1, 2008 to Dec. 31, 2008 | Period from Jan. 1, 2009 to Dec. 31, 2009 | Period from Jan. 1, 2010 to Dec. 31, 2010 | Period from Jan. 1, 2011 to Dec. 31, 2011 | ||||||||||||||||
Amounts in Accordance with US GAAP (Presented in U.S. dollars): | ||||||||||||||||||||
Total Assets | $ | 647,903 | $ | 400,329 | $ | 175,357 | $ | 334,487 | $ | 244,595 | ||||||||||
Operating Revenue | - | - | - | - | - | |||||||||||||||
Net working capital | $ | 576,758 | $ | 194,096 | $ | (265,348 | ) | $ | 315,813 | $ | (195,592 | ) | ||||||||
Shareholders’ Equity | $ | 627,683 | $ | 229,713 | $ | (245,039 | ) | $ | 320,814 | $ | (195,592 | ) | ||||||||
Net Income (Loss) (from operations) | $ | (1,372,674 | ) | $ | (496,794 | ) | $ | (516,827 | ) | $ | 137,720 | $ | (526,369 | ) | ||||||
Loss per share (basic and diluted) | $ | (0.06 | ) | $ | (0.02 | ) | $ | (0.02 | ) | $ | 0.01 | $ | (0.02 | ) | ||||||
Weighted average number of common shares (basic and diluted) | 21,597,327 | 24,315,051 | 24,315,035 | 26,302,984 | 25,948,368 |
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For the Years Ended December 31 | ||||||||||||
2009 | 2010 | 2011 | ||||||||||
REVENUE: | - | - | - | |||||||||
Sales | - | - | - | |||||||||
Gross Profit: | - | - | - | |||||||||
EXPENSES: | ||||||||||||
Litigation | $ | 109,717 | $ | 6,579 | $ | 0 | ||||||
General & Administration fees | $ | 118,951 | $ | 87,746 | $ | 65,558 | ||||||
Travel | $ | 15,647 | $ | 18,500 | $ | 15,811 | ||||||
Consulting | $ | 12,640 | $ | 4,455 | $ | 0 | ||||||
Director/Management Fees | $ | 260,000 | $ | 15,000 | $ | 445,000 | ||||||
Loss before other items: | $ | (516,955 | ) | $ | (132,280 | ) | $ | (526,369 | ) | |||
Other Items: | ||||||||||||
Interest income | $ | 128 | $ | 0 | $ | 0 | ||||||
Other Income | $ | 0 | $ | 270,000 | $ | 0 | ||||||
Net income/(loss) for the year: | $ | (516,827 | ) | $ | 137,720 | $ | (526,369 | ) |
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Name | Position | Other Reporting Companies In Canada or the United States | |
Company | Position | ||
Nicholas W. Baxter | President, Chief Executive | Lexaria Corp. (CNSX and OTC-QB) | Director |
Officer and Director | Dakar Resource Corp. | Director | |
Gerald R. Tuskey | Director | Opal Energy Corp. (TSX-V) | Director |
CellStop Systems Inc. (NEX) | Director | ||
Roger Thomas | Director | N/A | N/A |
Graham Crabtree | Chief Financial Officer | N/A | N/A |
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Annual Compensation | Long-term | ||||||||||||||||||||||||
Name and Principal Position | Year | Fees $ | Bonus $ | Other Annual Compensation $ | Restricted Stock Award $ | Securities Underlying Options / SARs # | All Other Compensation $ | ||||||||||||||||||
Nicholas W. Baxter President, C.E.O. and Director | 2011 | $ | 250,000(1) | $ | 0 | $ | 0 | $ | 0 | 1,000,000(2) | $ | 0 | |||||||||||||
Graham Crabtree C.F.O. | 2011 | $ | 180,000(1) | $ | 0 | $ | 0 | $ | 0 | 0 | $ | 0 |
(1) | These fees were accrued and settled through the issuance of shares of the Company at $0.05 per share after the December 31, 2011 year end. |
(2) | On June 1, 2011, Mr. Baxter was granted 1,000,000 incentive stock options at an exercise price of $0.05 for a period of five years. |
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Name and Position | Number of Shares Held | Percentage of Shares Held (%) (1) |
Nicholas W. Baxter | 7,573,364 common shares 1,000,000 stock options (2) | 21.9% |
Gerald R. Tuskey | 3,500,000 common shares 1,000,000 stock options (3) | 10.1% |
Roger Thomas | Nil 150,000 stock options (4) | 0% |
Graham Crabtree | 6,788,333 common shares 375,000 stock options (5) | 19.6% |
(1) | The percentage ownership positions are based on 34,548,368 shares outstanding as of April 30, 2012. |
(2) | 1,000,000 stock options at an exercise price of $0.05 expire on June 1, 2016. |
(3) | 1,000,000 stock options at an exercise price of $0.05 expire on June 1, 2016. |
(4) | 150,000 stock options at an exercise price of $0.05 expire on June 1, 2016. |
(5) | 375,000 stock options at an exercise price of $0.10 expire on November 23, 2012. |
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Name | Number of Common Shares Held | Percentage of Common Shares Held |
Nicholas W. Baxter Aberdeenshire, Scotland | 7,573,364 | 21.9% |
Graham Crabtree Anguilla, B.W.I. | 6,788,333 | 19.6% |
Gerald R. Tuskey Vancouver, B.C., Canada | 3,500,000 | 10.1% |
(a) | Corporate and administrative service charges of $10,736 to a law firm of which a director of the Company is the owner; |
(b) | Director fees of $15,000 to a director of the Company; and |
(c) | Management fees of $430,000 to two officers of the Company. |
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(a) | Five most recent full financial years (January 1, 2007 to December 31, 2011) – annual high and low prices: |
National Association of Securities Dealers OTC Bulletin Board | ||||||||
Year Ended: | High (Bid) | Low (Ask) | ||||||
December 31, 2011 | $ | 0.20 | $ | 0.0022 | ||||
December 31, 2010 | $ | 0.27 | $ | 0.008 | ||||
December 31, 2009 | $ | 0.37 | $ | 0.005 | ||||
December 31, 2008 | $ | 0.20 | $ | 0.035 | ||||
December 31, 2007 | $ | 0.60 | $ | 0.13 |
(b) | Two most recent full financial years and subsequent period (January 1, 2010 to April 30, 2012) – high and low for each quarter: |
National Association of Securities Dealers OTC Bulletin Board | ||||||||
Quarter Ended: | High (Bid) | Low (Ask) | ||||||
April 1, 2012 to April 30, 2012 | $ | 0.003 | $ | 0.003 | ||||
March 31, 2012 | $ | 0.045 | $ | 0.0122 | ||||
December 31, 2011 | $ | 0.0121 | $ | 0.0022 | ||||
September 30, 2011 | $ | 0.0025 | $ | 0.0022 | ||||
June 30, 2011 | $ | 0.20 | $ | 0.0025 | ||||
March 31, 2011 | $ | 0.05 | $ | 0.025 | ||||
December 30, 2010 | $ | 0.07 | $ | 0.008 | ||||
September 30, 2010 | $ | 0.12 | $ | 0.07 | ||||
June 30, 2010 | $ | 0.27 | $ | 0.05 | ||||
March 31, 2010 | $ | 0.27 | $ | 0.07 |
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National Association of Securities Dealers OTC Bulletin Board | ||||||||
Month Ended | High (Bid) | Low (Ask) | ||||||
May, 2012 | $ | 0.llllll025 | $ | 0.0025 | ||||
April, 2012 | $ | 0.025 | $ | 0.025 | ||||
March, 2012 | $ | 0.025 | $ | 0.025 | ||||
February, 2012 | $ | 0.05 | $ | 0.025 | ||||
January, 2012 | $ | 0.05 | $ | 0.05 | ||||
December, 2011 | $ | 0.0121 | $ | 0.0022 |
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- | Our Company is managed by a small number of individuals working out of offices in Aberdeenshire, Scotland, Vancouver, British Columbia and Anguilla, B.W.I. We do not employ enough independent employees or members of management to provide third party oversight in review of our financial transactions on an ongoing basis. Our directors and C.F.O. are solely responsible for initiating, reviewing and recording of financial transactions. Electronic and physical records of all of our Company’s financial transactions are maintained by our Vancouver office but they are not subject to third party review. |
- | Our Company maintains a board of directors consisting of only three members. This small board of directors is inadequate for providing independent oversight of our management team and does not allow us to staff important board of director committees such as an independent audit committee. Given that our Company was facing material litigation, it was impossible to attract additional qualified members for our board of directors. Although this litigation is now resolved, this is still a material weakness in our internal control over financial reporting. Additionally, to date, we do not have a designated financial expert and we do not have an established whistleblower program. These are also material weaknesses in our internal control over financial reporting. |
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- | approved by our audit committee (which consists of our entire board of directors); or |
- | entered into pursuant to pre-approval policies and procedures established by the board of directors, provided the policies and procedures are detailed as to the particular service, the board of directors is informed of each service, and such policies and procedures do not include delegation of the board of directors' responsibilities to management. |
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● | Roger Thomas |
● | Nicholas W. Baxter, President and Chief Executive Officer |
● | Gerald R. Tuskey |
Name | Name of Reporting Issuers |
Gerald R. Tuskey | CellStop Systems Inc. Opal Energy Corp. |
Nicholas W. Baxter | Lexaria Corp. Dakar Resource Corp. |
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PART III
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1.1 | Articles of Incorporation and amendments thereto, as filed with the Registrant’s Form 10-SB on February 27, 2004, incorporated herein by reference. |
1.2 | Bylaws as filed with the Registrant’s Form 10-SB on February 27, 2004, incorporated herein by reference. |
1.3 | Certificate of Amendment to Articles of Incorporation filed with the Registrant’s Form S-4 on July 23, 2007, incorporated herein by reference. |
1.4 | Articles of Continuance filed with the Registrant’s Form S-4 on July 23, 2007, incorporated herein by reference. |
2.1 | Dissent and Appraisal Rights of the Nevada Revised Statutes filed with the Registrant’s Form S-4 on July 23, 2007, incorporated herein by reference. |
2.2 | Form of Dissenter’s Appraisal Notice filed with the Registrant’s Form S-4 on July 23, 2007, incorporated herein by reference. |
2.3 | Plan of Conversion dated November 1, 2006, as filed with the Registrant’s Form S-4 on July 23, 2007, incorporated herein by reference. |
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11.1 | Code of Ethics filed with the Registrant’s Form 10-KSB on March 30, 2007, incorporated herein by reference. |
EURASIA ENERGY LIMITED | ||||
Dated: | May 15, 2012 | Per: | ||
/s/Nicholas W. Baxter | ||||
Nicholas W. Baxter, | ||||
President and Chief Executive Officer | ||||
Per: | ||||
/s/Graham Crabtree | ||||
Graham Crabtree, | ||||
Chief Financial Officer |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders
Eurasia Energy Limited
Aberdeenshire, U.K. Scotland
We have audited the accompanying balance sheets of Eurasia Energy Limited (an exploration stage company) ("the Company") as of December 31, 2011 and 2010, and the related statements of operations and comprehensive income, stockholders' equity (deficit), and cash flows for each of the years in the three-year period then ended, and for the period from November 28, 2005 (the effective date of the exploration stage) to December 31, 2011. These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Eurasia Energy Limited (an exploration stage company) as of December 31, 2011 and 2010, and the results of its operations and its cash flows for each of the years in the three-year period then ended, and for the period from November 28, 2005 (the effective date of the exploration stage) to December 31, 2011, in conformity with accounting principles generally accepted in the United States.
The accompanying financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has limited operations and has sustained operating losses resulting in an accumulated deficit at December 31, 2011. These conditions raise substantial doubt about the Company's ability to continue as a going concern. Management's plans regarding these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/S/ PETERSON SULLIVAN
Seattle, Washington
May 15, 2012
EURASIA ENERGY LIMITED | ||||||||
(an exploration stage company) | ||||||||
BALANCE SHEETS | ||||||||
December 31, 2011 and 2010 | ||||||||
(Expressed in U.S. Dollars) | 2011 | 2010 | ||||||
ASSETS | ||||||||
Current assets | ||||||||
Cash | $ | 228,439 | $ | 298,611 | ||||
Prepaid expenses | 16,156 | 30,875 | ||||||
Total current assets | 244,595 | 329,486 | ||||||
Capital assets, net (Note 6) | - | 5,001 | ||||||
Total assets | $ | 244,595 | $ | 334,487 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
Current liabilities | ||||||||
Accounts payable and accrued expenses | $ | 4,411 | $ | 5,887 | ||||
Accounts payable and accrued expenses - related party | 435,776 | 7,786 | ||||||
Total current liabilities | 440,187 | 13,673 | ||||||
Stockholders' equity (deficit) (Note 7) | ||||||||
Common stock, par value $0.001, authorized 100,000,000 | ||||||||
shares; issued and outstanding shares | ||||||||
(2011: 25,948,368; 2010: 25,948,368) | 25,948 | 25,948 | ||||||
Additional paid-in capital | 6,675,080 | 6,665,117 | ||||||
Accumulated deficit | (9,066 | ) | (9,066 | ) | ||||
Deficit accumulated during the exploration stage | (6,887,554 | ) | (6,361,185 | ) | ||||
Total stockholders' equity (deficit) | (195,592 | ) | 320,814 | |||||
Total liabilities and stockholders' equity (deficit) | $ | 244,595 | $ | 334,487 |
EURASIA ENERGY LIMITED | ||||||||||||||||
(an exploration stage company) | ||||||||||||||||
STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME | ||||||||||||||||
For the years ended December 31, 2011, 2010 and 2009, and for the period from | ||||||||||||||||
November 28, 2005 (the effective date of the exploration stage) through December 31, 2011 | ||||||||||||||||
Cumulative | ||||||||||||||||
During the | ||||||||||||||||
Exploration | ||||||||||||||||
(Expressed in U.S. Dollars) | 2011 | 2010 | 2009 | Stage | ||||||||||||
Revenue | $ | - | $ | - | $ | - | $ | - | ||||||||
Expenses | ||||||||||||||||
Consulting | - | 4,455 | 12,640 | 286,177 | ||||||||||||
Data acquisition cost | - | - | - | 19,300 | ||||||||||||
Director and management fees - related party (Note 8) | 445,000 | 15,000 | 230,000 | 864,583 | ||||||||||||
General and administrative | 44,859 | 58,548 | 95,313 | 624,956 | ||||||||||||
General and administrative - related party (Note 8) | 10,736 | 9,398 | 11,563 | 86,095 | ||||||||||||
General and administrative - stock-based compensation (Note 7) | 9,963 | 19,800 | 42,075 | 4,318,349 | ||||||||||||
Litigation expenses | - | 6,579 | 109,717 | 711,444 | ||||||||||||
Travel | 15,811 | 18,500 | 15,647 | 299,654 | ||||||||||||
526,369 | 132,280 | 516,955 | 7,210,558 | |||||||||||||
Operating Loss | (526,369 | ) | (132,280 | ) | (516,955 | ) | (7,210,558 | ) | ||||||||
Other income and expenses | ||||||||||||||||
Other income (Note 9) | - | 270,000 | - | 270,000 | ||||||||||||
Interest income | - | - | 128 | 53,004 | ||||||||||||
Net income (loss) and comprehensive income (loss) | $ | (526,369 | ) | $ | 137,720 | $ | (516,827 | ) | $ | (6,887,554 | ) | |||||
Net loss per common share (Note 5) | ||||||||||||||||
-basic | $ | (0.02 | ) | $ | 0.01 | $ | (0.02 | ) | ||||||||
-fully diluted | $ | (0.02 | ) | $ | 0.01 | $ | (0.02 | ) | ||||||||
Weighted average number of common (Note 5) shares outstanding | ||||||||||||||||
-basic | 25,948,368 | 25,943,893 | 24,315,035 | |||||||||||||
-fully diluted | 25,948,368 | 26,302,984 | 24,315,035 |
EURASIA ENERGY LIMITED | ||||||||||||||||||||||||
(an exploration stage company) | ||||||||||||||||||||||||
STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||||||||||||||||||
For the years ended December 31, 2011, 2010 and 2009, and for the period from | ||||||||||||||||||||||||
November 28, 2005 (the effective date of the exploration stage) through December 31, 2011 | ||||||||||||||||||||||||
Deficit | ||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||
During the | Total | |||||||||||||||||||||||
Common Stock | Additional | Accumulated | Exploration | Stockholders' | ||||||||||||||||||||
(Expressed in U.S. Dollars) | Shares | Amount | paid-in capital | Deficit | Stage | Equity | ||||||||||||||||||
Balance, November 28, 2005 | 20,065,135 | $ | 20,065 | $ | 204,326 | $ | (9,066 | ) | $ | - | $ | 215,325 | ||||||||||||
Net loss | - | (13,598 | ) | (13,598 | ) | |||||||||||||||||||
Balance, December 31, 2005 | 20,065,135 | 20,065 | 204,326 | (9,066 | ) | (13,598 | ) | 201,727 | ||||||||||||||||
Issuance of common stock and warrants, February 2006 | 250,000 | 250 | 749,750 | - | - | 750,000 | ||||||||||||||||||
Stock-based compensation expense | - | - | 3,675,633 | - | - | 3,675,633 | ||||||||||||||||||
Net loss | - | - | - | - | (4,099,012 | ) | (4,099,012 | ) | ||||||||||||||||
Balance, December 31, 2006 | 20,315,135 | 20,315 | 4,629,709 | (9,066 | ) | (4,112,610 | ) | 528,348 | ||||||||||||||||
Common stock issued for cash, August 2007 | 4,000,000 | 4,000 | 596,000 | - | - | 600,000 | ||||||||||||||||||
Warrants issued with common stock | - | - | 400,000 | - | - | 400,000 | ||||||||||||||||||
Stock-based compensation expense | - | - | 472,009 | - | - | 472,009 | ||||||||||||||||||
Net loss | - | - | - | - | (1,372,674 | ) | (1,372,674 | ) | ||||||||||||||||
Balance, December 31, 2007 | 24,315,135 | 24,315 | 6,097,718 | (9,066 | ) | (5,485,284 | ) | 627,683 | ||||||||||||||||
Cancellation of shares by exercise of dissent rights | (100 | ) | - | (45 | ) | - | - | (45 | ) | |||||||||||||||
Stock-based compensation expense | - | - | 98,869 | - | - | 98,869 | ||||||||||||||||||
Net loss | - | - | - | - | (496,794 | ) | (496,794 | ) | ||||||||||||||||
Balance, December 31, 2008 | 24,315,035 | $ | 24,315 | $ | 6,196,542 | $ | (9,066 | ) | $ | (5,982,078 | ) | $ | 229,713 | |||||||||||
Stock-based compensation expense | - | - | 42,075 | - | - | 42,075 | ||||||||||||||||||
Net loss | - | - | - | - | (516,827 | ) | (516,827 | ) | ||||||||||||||||
Balance, December 31, 2009 | 24,315,035 | $ | 24,315 | $ | 6,238,617 | $ | (9,066 | ) | $ | (6,498,905 | ) | $ | (245,039 | ) | ||||||||||
Issuance of shares for debt settlement | 1,633,333 | 1,633 | 406,700 | - | - | 408,333 | ||||||||||||||||||
Stock-based compensation expense | - | - | 19,800 | - | - | 19,800 | ||||||||||||||||||
Net income | - | - | - | - | 137,720 | 137,720 | ||||||||||||||||||
Balance, December 31, 2010 | 25,948,368 | $ | 25,948 | $ | 6,665,117 | $ | (9,066 | ) | $ | (6,361,185 | ) | $ | 320,814 | |||||||||||
Stock-based compensation expense | - | - | 9,963 | - | - | 9,963 | ||||||||||||||||||
Net loss | - | - | - | - | (526,369 | ) | (526,369 | ) | ||||||||||||||||
Balance, December 31, 2011 | 25,948,368 | $ | 25,948 | $ | 6,675,080 | $ | (9,066 | ) | $ | (6,887,554 | ) | $ | (195,592 | ) |
EURASIA ENERGY LIMITED | ||||||||||||||||
(an exploration stage company) | ||||||||||||||||
STATEMENTS OF CASH FLOWS | ||||||||||||||||
For the years ended December 31, 2011, 2010 and 2009, and for the period from | ||||||||||||||||
November 28, 2005 (the effective date of the exploration stage) through December 31, 2011 | ||||||||||||||||
Cumulative | ||||||||||||||||
During the | ||||||||||||||||
Exploration | ||||||||||||||||
(Expressed in U.S. Dollars) | 2011 | 2010 | 2009 | Stage | ||||||||||||
Cash flows from (used in) operating activities | ||||||||||||||||
Net Income (Loss) | $ | (526,369 | ) | $ | 137,720 | $ | (516,827 | ) | $ | (6,887,554 | ) | |||||
Adjustments to reconcile net income (loss) to | ||||||||||||||||
net cash flows from operating activities | ||||||||||||||||
General and administrative - stock-based compensation | 9,963 | 19,800 | 42,075 | 4,318,349 | ||||||||||||
Depreciation | 5,001 | 15,308 | 15,308 | 76,540 | ||||||||||||
Change in operating assets and liabilities | ||||||||||||||||
Accounts receivable, related party | - | - | - | 5,000 | ||||||||||||
Interest receivable | - | - | 29 | - | ||||||||||||
Prepaid expenses | 14,719 | (28,497 | ) | 9,574 | (16,156 | ) | ||||||||||
Accounts payable and accrued expenses | (1,476 | ) | (51,492 | ) | 34,773 | 3,811 | ||||||||||
Accounts payable and accrued expenses - related party | 427,990 | 53,102 | 215,007 | 844,109 | ||||||||||||
Net cash provided by (used in) operating activities | (70,172 | ) | 145,941 | (200,061 | ) | (1,655,901 | ) | |||||||||
Cash flows used in investing activities | ||||||||||||||||
Fixed assets addition | - | - | - | (76,540 | ) | |||||||||||
Cash used in investing activities | - | - | - | (76,540 | ) | |||||||||||
Cash flows from financing activities | ||||||||||||||||
Proceeds from issuance of common stock and warrants | - | - | - | 1,749,955 | ||||||||||||
Cash provided by financing activities | - | - | - | 1,749,955 | ||||||||||||
Increase (decrease) in cash | (70,172 | ) | 145,941 | (200,061 | ) | 17,514 | ||||||||||
Cash, beginning of period | 298,611 | 152,670 | 352,731 | 210,925 | ||||||||||||
Cash, end of period | $ | 228,439 | $ | 298,611 | $ | 152,670 | $ | 228,439 | ||||||||
Non Cash Transaction: | ||||||||||||||||
Stock issued for debt settlement | $ | - | $ | 408,333 | $ | - | $ | 408,333 |
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(a) | Principles of Accounting |
Motor vehicle | 20 | % | ||
Office equipment | 20 | % |
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(i) | Stock-Based Compensation |
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(a) | Recent accounting pronouncements adopted during the period: |
(ii) | Stock Compensation - Effect of Denominating the Exercise Price of a Share-Based Payment Award in the Currency of the Market in Which the Underlying Equity Security Trades |
(iv) | When to Perform Step 2 of the Goodwill Impairment Test for Reporting Units with Zero or Negative Carrying Amounts |
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2011 | 2010 | 2009 | ||||||||
Numerator - net income (loss) available to common stockholders | $ | (526,369 | ) | $ | 137,720 | $ | (516,827 | ) | ||
Denominator - weighted average number of common shares outstanding | 25,948,368 | 25,943,893 | 24,315,035 | |||||||
Dilutive common stock equivalents - stock options | — | 359,091 | — | |||||||
Denominator - weighted average number of fully diluted common shares outstanding | 25,948,368 | 26,302,984 | 24,315,035 | |||||||
Basic earnings (loss) per common share | $ | (0.02 | ) | $ | 0.01 | $ | (0.02 | ) | ||
Diluted earnings (loss) per common share | $ | (0.02 | ) | $ | 0.01 | $ | (0.02 | ) |
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2011 | 2010 | |||||||
Motor vehicle | $ | 74,500 | $ | 74,500 | ||||
Office equipment | 2,040 | 2,040 | ||||||
76,540 | 76,540 | |||||||
Less: Accumulated depreciation | (76,540 | ) | (71,539 | ) | ||||
$ | — | $ | 5,001 |
(a) | Common Stock |
(b) | Warrants |
(c) | Options |
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(c) | Options - Continued |
Weighted | |||||||
average | |||||||
Number of options | exercise price | ||||||
Balance, December 31, 2010 and 2009 | 3,950,000 | $ | 0.10 | ||||
Granted | 2,500,000 | 0.05 | |||||
Cancelled | (1,500,000 | ) | 0.10 | ||||
Balance, December 31, 2011 | 4,950,000 | 0.07 |
Weighted | ||||||||||||||
Weighted | Number | Average | Number | |||||||||||
Average | Outstanding at | Remaining | Exercisable at | Average | ||||||||||
Exercise | December 31, | Contractual | December 31, | Intrinsic | ||||||||||
Price | 2011 | Life (Years) | 2011 | Value | ||||||||||
$ | 0.05 | 2,500,000 | 4.42 | 2,500,000 | $ | — | ||||||||
0.10 | 2,450,000 | 0.46 | 2,450,000 | — | ||||||||||
4,950,000 | 2.46 | 4,950,000 |
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(c) | Options - Continued |
Number of options | Fair value per share | ||||||
Nonvested, December 31, 2009 | 660,000 | 0.18 | |||||
Vested | (330,000 | ) | 0.18 | ||||
Nonvested, December 31, 2010 | 330,000 | 0.18 | |||||
Vested | (330,000 | ) | 0.18 | ||||
Nonvested, December 31, 2011 | — | 0.18 |
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