x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||||||||||
For the quarterly period ended | December 31, 2011 | |||||||||||||||||||
or | ||||||||||||||||||||
o | TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |||||||||||||||||||
For the transition period from | to | |||||||||||||||||||
Commission File Number | 333-150775 | |||||||||||||||||||
POTASH AMERICA, INC. | ||||||||||||||||||||
(Exact name of registrant as specified in its charter) | ||||||||||||||||||||
Nevada | 41-2247537 | |||||||||||||||||||
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) | |||||||||||||||||||
8th Floor – 200 South Virginia Street, Reno, Nevada | 89501 | |||||||||||||||||||
(Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
775.398.3019 | ||||||||||||||||||||
(Registrant’s telephone number, including area code) | ||||||||||||||||||||
N/A | ||||||||||||||||||||
(Former name, former address and former fiscal year, if changed since last report) | ||||||||||||||||||||
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | ||||||||||||||||||||
x | YES | o | NO | |||||||||||||||||
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-K (§229.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). | ||||||||||||||||||||
x | YES | o | NO | |||||||||||||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act | ||||||||||||||||||||
Large accelerated filer | o | Accelerated filer | o | |||||||||||||||||
Non-accelerated filer | o | (Do not check if a smaller reporting company) | Smaller reporting company | x | ||||||||||||||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act | ||||||||||||||||||||
o | YES | x | NO | |||||||||||||||||
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE PRECEDING FIVE YEARS Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. | ||||||||||||||||||||
o | YES | o | NO | |||||||||||||||||
APPLICABLE ONLY TO CORPORATE ISSUERS | ||||||||||||||||||||
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. | ||||||||||||||||||||
147,565,000 common shares issued and outstanding as of February 10, 2012 |
Balance Sheets as of December 31, 2011 and March 31, 2011 | F-1 |
Statements of Operations for the three and nine months ended December 31, 2011 and 2010 and for the period from July 31, 2007 (Date of Inception) to December 31, 2011 | F-2 |
Statement of Stockholders’ Equity (Deficit) as of December 31, 2011 | F-3 |
Statements of Cash Flows for the nine months ended December 31, 2011 and 2010 and for the period from July 31, 2007 (Date of Inception) to December 31, 2011 | F-4 |
Notes to the Financial Statements | F-5 - F-11 |
December 31, | March 31, | |||||||
ASSETS | ||||||||
Current Assets | ||||||||
Cash and cash equivalents | $ | 29,998 | $ | 7,814 | ||||
Prepaid expenses | 199 | 419 | ||||||
Deposits | - | 30,000 | ||||||
Total Current Assets | 30,197 | 38,233 | ||||||
Fixed Assets | ||||||||
Mining claim | 514,865 | - | ||||||
Total Fixed Assets | 514,865 | - | ||||||
Total Assets | $ | 545,062 | $ | 38,233 | ||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT | ||||||||
Current Liabilities | ||||||||
Accrued expenses | $ | 7,214 | $ | 14,477 | ||||
Deferred compensation | 34,900 | 13,500 | ||||||
Accrued interest | 13,155 | 88 | ||||||
Notes payable – related parties | 35,500 | 35,500 | ||||||
Line of credit | 830,000 | 40,000 | ||||||
Total Liabilities | 920,769 | 103,565 | ||||||
Stockholders’ Deficit | ||||||||
Common stock, par value $0.0001; 200,000,000 shares authorized, 147,565,000 and 147,200,000 shares issued and outstanding | 14,757 | 14,720 | ||||||
Additional paid in capital | 328,524 | 49,524 | ||||||
Deficit accumulated during the exploration stage | (718,988 | ) | (129,576 | ) | ||||
Total Stockholders’ Deficit | (375,707 | ) | (65,332 | ) | ||||
Total Liabilities and Stockholders’ Deficit | $ | 545,062 | $ | 38,233 |
Three Months Ended |
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| Nine Months Ended |
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| Period from July 31, 2007 (Inception) to |
| |||||||||||||
December 31, |
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| December 31, |
|
| December 31, |
| |||||||||||||
2011 | 2010 |
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| 2011 |
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| 2010 |
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| 2011 | ||||||||||
REVENUE | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
OPERATING EXPENSES | ||||||||||||||||||||
Professional fees | 20,315 | 1,632 | 59,169 | 11,367 | 130,460 | |||||||||||||||
Transfer agent and filing fees | 1,926 | 200 | 14,164 | 2,716 | 38,075 | |||||||||||||||
Consulting | 60,296 | 4,464 | 110,446 | 11,964 | 123,946 | |||||||||||||||
Web development | 1,226 | - | 20,740 | - | 28,108 | |||||||||||||||
Stock compensation | 97,322 | - | 279,037 | - | 279,037 | |||||||||||||||
Exploration costs | 2,500 | - | 26,700 | - | 27,700 | |||||||||||||||
General and administrative | 37,384 | 103 | 66,088 | 1,490 | 78,507 | |||||||||||||||
TOTAL OPERATING EXPENSES | 220,969 | 6,399 | 576,344 | 27,537 | 705,833 | |||||||||||||||
LOSS FROM OPERATIONS | (220,969 | ) | (6,399 | ) | (576,344 | ) | (27,537 | ) | (705,833 | ) | ||||||||||
OTHER INCOME (EXPENSES) | ||||||||||||||||||||
Interest expense | (8,161 | ) | - | (13,068 | ) | - | (13,155 | ) | ||||||||||||
TOTAL OTHER INCOME (EXPENSES) | (8,161 | ) | - | (13,068 | ) | - | (13,155 | ) | ||||||||||||
NET LOSS PRIOR TO INCOME TAXES | (229,130 | ) | (6,399 | ) | (589,412 | ) | (27,537 | ) | (718,988 | ) | ||||||||||
PROVISION FOR INCOME TAXES | - | - | - | - | - | |||||||||||||||
NET LOSS | $ | (229,130 | ) | $ | (6,399 | ) | $ | (589,412 | ) | $ | (27,537 | ) | $ | (718,988 | ) | |||||
NET LOSS PER SHARE: BASIC AND DILUTED | $ | - | $ | - | $ | - | $ | - | ||||||||||||
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING | 147,323,266 | 147,200,000 | 147,323,266 | 147,200,000 |
Common Stock |
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| Additional |
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| Deficit Accumulated |
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|
|
| ||||||||||
Shares |
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| Amount |
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| Capital |
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| Stage |
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| Total |
| |||||||
Balance, July 31, 2007 (date of inception) | - | $ | - | $ | - | $ | - | $ | - | |||||||||||
Shares issued to founders for cash | 80,000,000 | 100 | 7,900 | - | 8,000 | |||||||||||||||
Shares issued for cash | 67,200,000 | 84 | 41,916 | - | 42,000 | |||||||||||||||
Net loss for the period ended March 31, 2008 | - | - | - | (14,180 | ) | (14,180 | ) | |||||||||||||
Balance, March 31, 2008 | 147,200,000 | 184 | 49,816 | (14,180 | ) | 35,820 | ||||||||||||||
Net loss for the year ended March 31, 2009 | - | - | - | (41,059 | ) | (41,059 | ) | |||||||||||||
Balance, March 31, 2009 | 147,200,000 | 184 | 49,816 | (55,239 | ) | (5,239 | ) | |||||||||||||
Net loss for the year ended March 31, 2010 | - | - | - | (18,805 | ) | (18,805 | ) | |||||||||||||
Balance, March 31, 2010 | 147,200,000 | 184 | 49,816 | (74,044 | ) | (24,044 | ) | |||||||||||||
Forward stock split (80:1) | - | 14,536 | (14,536 | ) | - | 0 | ||||||||||||||
Forgiveness of shareholder debt | - | - | 14,244 | - | 14,244 | |||||||||||||||
Net loss for the year ended March 31, 2011 | - | - | - | (55,532 | ) | (55,532 | ) | |||||||||||||
Balance, March, 31, 2011 | 147,200,000 | 14,720 | 49,524 | (129,576 | ) | (65,332 | ) | |||||||||||||
Valuation of stock options | - | - | 38,482 | - | 38,482 | |||||||||||||||
Shares issued for compensation | 365,000 | 37 | 240,518 | - | 240,555 | |||||||||||||||
Net loss for the nine months ended December 31, 2011 | - | - | - | (589,412 | ) | (589,412 | ) | |||||||||||||
Balance, December 31, 2011 | 147,565,000 | $ | 14,757 | $ | 328,524 | $ | (718,988 | ) | $ | (375,707 | ) |
Nine Months Ended |
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| Period from July 31, 2007 (Inception) to | |||||||||
December 31, |
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| December 31, | |||||||||
2011 |
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| 2010 |
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| 2011 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||||
Net loss for the period | $ | (589,412 | ) | $ | (27,537 | ) | $ | (718,988 | ) | |||
Adjustment to reconcile net income to net cash provided by operating activities: | ||||||||||||
Stock and options issued as compensation | 279,037 | - | 279,037 | |||||||||
Changes in assets and liabilities: | ||||||||||||
(Increase) in prepaid expenses | 220 | (1,200 | ) | (199 | ) | |||||||
(Increase) decrease deposit | 30,000 | - | - | |||||||||
Increase in accrued expenses | (7,264 | ) | (1,926 | ) | 7,214 | |||||||
Increase in accrued interest | 13,068 | - | 13,155 | |||||||||
Increase in deferred compensation | 21,400 | - | 34,900 | |||||||||
Net Cash Used in Operating Activities | (252,951 | ) | (30,663 | ) | (384,881 | ) | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||||
Deposit for mineral property | (514,865 | ) | - | (514,865 | ) | |||||||
Net Cash Used in Investing Activities | (514,865 | ) | - | (514,865 | ) | |||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||||
Proceeds from notes payable – related parties | - | 18,195 | 35,500 | |||||||||
Proceeds from line of credit | 790,000 | 14,244 | 844,244 | |||||||||
Proceeds from sale of stock | - | - | 50,000 | |||||||||
Net Cash Provided by Financing Activities | 790,000 | 32,439 | 929,744 | |||||||||
INCREASE (DECREASE) IN CASH | 22,184 | 1,776 | 29,998 | |||||||||
Cash, beginning balance | 7,814 | 187 | - | |||||||||
Cash, ending balance | $ | 29,998 | $ | 1,963 | $ | 29,998 | ||||||
SUPPLEMENTAL CASH FLOW INFORMATION: | ||||||||||||
Cash paid for interest | $ | - | $ | - | $ | - | ||||||
Cash paid for income taxes | $ | - | $ | - | $ | - | ||||||
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING INFORMATION: | ||||||||||||
Forgiveness of debt from former shareholder converted to capital | $ | - | $ | - | $ | 14,244 |
(a) | $200,000 on November 31, 2011 (paid); |
(b) | $50,000 on July 1, 2012; |
(c) | $1,500,000, which will be paid in equal payments of $500,000 on or before January 1st of 2013, 2014 and 2015; |
(d) | 2,500,000 shares of the Company’s common stock based on the Sellers’ pro-rata interest in the claims and a total of 500,000 shares to those parties designated by the Sellers on or before July 1st of 2012, 2013 and 2014; |
December 31, | March 31, | |||||||
Accounting fees | $ | 1,500 | $ | 6,000 | ||||
Legal fees | 714 | 4,617 | ||||||
Filing fees | - | 860 | ||||||
Professional fees | - | - | ||||||
Consulting fees | 5,000 | - | ||||||
Marketing | - | - | ||||||
Web development | - | 3,000 | ||||||
Total Accrued Expenses | $ | 7,214 | $ | 14,477 |
Number of Shares | Weighted Average | |||||||
Outstanding, March 31, 2011 | - | $ | - | |||||
Options granted | 790,000 | .84 | ||||||
Options expired | - | - | ||||||
Options cancelled | - | - | ||||||
Outstanding, December 31, 2011 | 790,000 | $ | .84 | |||||
Exercisable, December 31, 2011 | 790,000 | $ | .84 |
Stock Options Outstanding | Stock Options Exercisable | ||||||||||||||||||||
Range of Exercise Prices |
| Number Outstanding |
|
| Weighted Average Exercise Price |
|
| Weighted Average Remaining Contractual Life (in years) |
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| Number of Options |
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| Weighted Average Exercise Price | |||||||
$ | . 60 to 1.00 | 790,000 | $ | .84 | 4.01 | 790,000 | $ | 0.84 |
(a) | $20,000.00, of which $5,000.00 was disbursed to Ms. Diaz, contemporaneously with the execution of the letter of intent; and |
(b) | $5,000.00, upon the execution of the letter of intent, to enable Ms. Diaz and Elwayne E. Everett to commence the bentonite project on the adjacent property; |
(a) | $200,000 on November 31, 2011 (paid); |
(b) | $50,000 on July 1, 2012; |
(c) | $1,500,000, which will be paid in equal payments of $500,000 on or before January 1st of 2013, 2014 and 2015; |
(d) | 2,500,000 shares of our company’s common stock based on the Sellers’ pro-rata interest in the claims and a total of 500,000 shares to those parties designated by the Sellers on or before July 1st of 2012, 2013 and 2014; |
Three Month |
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| Three Month |
|
| Change Between | |||
Revenue | $ | Nil | $ | Nil | $ | Nil | |||
Professional fees | $ | 20,315 | $ | 1,632 | $ | 18,683 | |||
Transfer agent and filing fees | $ | 1,926 | $ | 200 | $ | 1,726 | |||
Consulting fees | $ | 60,296 | $ | 4,464 | $ | 55,832 | |||
Web development | $ | 1,226 | $ | Nil | $ | 1,226 | |||
Stock compensation | $ | 97,322 | $ | Nil | $ | 97,322 | |||
Exploration costs | $ | 2,500 | $ | Nil | $ | 2,500 | |||
General and administrative | $ | 37,384 | $ | 103 | $ | 37,281 | |||
Interest Expense | $ | 8,161 | $ | Nil | $ | 8,161 | |||
Net loss | $ | (229,130 | ) | $ | (6,399 | ) | $ | 222,731 |
Nine Month |
|
| Nine Month |
|
| Change Between | |||
Revenue | $ | Nil | $ | Nil | $ | Nil | |||
Professional fees | $ | 59,169 | $ | 11,367 | $ | 47,802 | |||
Transfer agent and filing fees | $ | 14,164 | $ | 2,716 | $ | 11,448 | |||
Consulting fees | $ | 110,446 | $ | 11,964 | $ | 98,502 | |||
Web development | $ | 20,740 | $ | Nil | $ | 20,740 | |||
Stock compensation | $ | 279,037 | $ | Nil | $ | 279,037 | |||
Exploration costs | $ | 26,700 | $ | Nil | $ | 26,700 | |||
General and administrative | $ | 66,088 | $ | 1,490 | $ | 64,598 | |||
Interest Expense | $ | 13,068 | $ | Nil | $ | 13,068 | |||
Net loss | $ | (589,412 | ) | $ | (27,537 | ) | $ | 561,875 |
At |
|
| At |
|
| Change Between | ||||||
Current Assets | $ | 30,197 | $ | 7,814 | $ | 22,383 | ||||||
Current Liabilities | $ | 920,768 | $ | 103,565 | $ | 817,203 | ||||||
Working Capital / (Deficit) | $ | (718,988 | ) | $ | (95,751 | ) | $ | (623,237 | ) |
Nine Months Ended |
|
| Nine Months Ended |
|
| Period from Inception | ||||||
Cash Flows from Operating Activities | $ | (252,951 | ) | $ | (30,663 | ) | $ | (384,881 | ) | |||
Cash Flows provided by/(used in) Investing Activities | $ | (514,865 | ) | $ | Nil | $ | (514, 865 | ) | ||||
Cash Flows from Financing Activities | $ | 790,000 | $ | 32,439 | $ | 929,744 | ||||||
Net Increase (Decrease) in Cash During Period | $ | 22,184 | $ | 1,776 | $ | 29,988 |
Not Applicable.
Exhibit No. | Description |
(3) | Articles of Incorporation and Bylaws |
3.1 | Articles of Incorporation (incorporated by reference to our Registration Statement on Form S-1 filed on May 9, 2008) |
3.2 | Certificate of Amendment (incorporated by reference to our Current Report on Form 8-K filed on September 10, 2010). |
3.3. | Certificate of Amendment (incorporated by reference to our Current Report on Form 8-K filed on March 7, 2011) |
(10) | Material Contracts |
10.1 | Credit Facility Agreement dated March 2011 (incorporated by reference to our Current Report on Form 8-K filed on March 17, 2011) |
10.2 | 2011 Stock Option Plan (incorporated by reference to our Current Report on Form 8-K filed on April 26, 2011) |
10.3 | Form of Stock Option Agreement (incorporated by reference to our Current Report on Form 8-K filed on April 26, 2011) |
10.4 | Director’s Association Agreement between our company and Alan B. Brass (incorporated by reference to our Current Report on Form 8-K filed on April 26, 2011) |
10.5 | Director’s Association Agreement between our company and Norman Marcus (incorporated by reference to our Current Report on Form 8-K filed on April 26, 2011) |
10.6 | Stock Option Agreement between our company and Alan B. Brass (incorporated by reference to our Current Report on Form 8-K filed on April 26, 2011) |
10.7 | Stock Option Agreement between our company and Norman Marcus (incorporated by reference to our Current Report on Form 8-K filed on April 26, 2011) |
10.8 | Property Acquisition Agreement dated June 6, 2011 between our company and Habitants Minerals Ltd. (incorporated by reference to our Current Report on Form 8-K filed on June 17, 2011) |
10.9 | Purchase and Sale Agreement dated August 31, 2011 between our company and Kim Diaz and Sonseeahray Diaz (incorporated by reference to our Current Report on Form 8-K filed on September 12, 2011) |
(14) | Code of Ethics |
14.1 | Code of Business Conduct and Ethics (incorporated by reference to our Current Report on Form 8-K filed on June 17, 2011) |
(31) | Rule 13a-14(a)/15d-14(a) Certifications |
31.1* | |
(32) | Section 1350 Certifications |
32.1* | |
101** | Interactive Data File |
101.INS 101.SCH 101.CAL 101.DEF 101.LAB 101.PRE | XBRL Instance Document XBRL Taxonomy Extension Schema Document XBRL Taxonomy Extension Calculation Linkbase Document XBRL Taxonomy Extension Definition Linkbase Document XBRL Taxonomy Extension Label Linkbase Document XBRL Taxonomy Extension Presentation Linkbase Document |
* | Filed herewith. |
** | Furnished herewith. Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of any registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, and otherwise are not subject to liability under those sections. |
POTASH AMERICA, INC. | |
(Registrant) | |
/s/ Barry Wattenberg | |
Dated: February 13, 2012 | Barry Wattenberg |
President, Chief Executive Officer, Chief Financial Officer, Secretary, Treasurer and Director | |
(Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer) |