Nevada | 98-0579157 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
10100 Santa Monica Blvd., Suite 300, Century City, Los Angeles, CA | 90067 |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of exchange on which registered | ||
Common Stock | CCOB | OTCQB | ||
Preferred Stock | N/A | N/A |
Large accelerated filer ☐ | Accelerated filer ☐ | |
Non-Accelerated filer ☒ | Smaller reporting company ☒ | Emerging growth company ☐ |
Explanatory Note
The purpose of this Amendment No. 1 to the Company's Quarterly Report on Form 10-Q for the quarterly period ended May 31, 2019, filed with the Securities and Exchange Commission on July 22, 2019 (the "Form 10-Q"), is solely to furnish Exhibit 101 to the Form 10-Q. Exhibit 101 provides the financial statements and related notes from the Form 10-Q formatted in XBRL (Extensible Business Reporting Language).
No other changes have been made to the Form 10-Q. This Amendment No. 1 to the Form 10-Q continues to speak as of the original filing date of the Form 10-Q, does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update in any way disclosures made in the original Form 10-Q.
Pursuant to rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Act of 1934, as amended, and otherwise are not subject to liability under those sections.
PART I - FINANCIAL INFORMATION | ||
Item 1. | Financial Statements | 3 |
Item 2. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 17 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 21 |
Item 4. | Controls and Procedures | 21 |
PART II - OTHER INFORMATION | ||
Item 1. | Legal Proceedings | 21 |
Item 1A. | Risk Factors | 21 |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 21 |
Item 3. | Defaults Upon Senior Securities | 22 |
Item 4. | Mine Safety Disclosures | 22 |
Item 5. | Other Information | 22 |
Item 6. | Exhibits | 22 |
SIGNATURES | 24 |
Restated | ||||||||
May 31, 2019 | November 30, 2018 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 25 | $ | 1,172 | ||||
Prepaid expenses | 17,479 | 10,787 | ||||||
Total current assets | 17,504 | 11,959 | ||||||
Other assets | ||||||||
Resource property | 248,000 | 248,000 | ||||||
Total other assets | 248,000 | 248,000 | ||||||
Total Assets | $ | 265,504 | $ | 259,959 | ||||
Liabilities and Stockholders' Equity (Deficit) | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 102,885 | $ | 81,280 | ||||
Accounts payable - related parties | 63,790 | 27,870 | ||||||
Accrued interest | 12,248 | 3,415 | ||||||
Accrued interest - related parties | 23,769 | 71,231 | ||||||
Due to related parties | 68,923 | 95,640 | ||||||
Notes payable - current portion | 41,700 | 10,000 | ||||||
Notes payable to related parties - current portion | 195,000 | 467,866 | ||||||
Total current liabilities | 508,315 | 757,302 | ||||||
Long term liabilities: | ||||||||
Notes payable | 132,875 | 114,575 | ||||||
Notes payable to related parties | 72,500 | 20,500 | ||||||
Total long term liabilities | 205,375 | 135,075 | ||||||
Total liabilities | 713,690 | 892,377 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity (deficit): | ||||||||
Preferred stock, $0.001 par value; 20,000,000 shares authorized, | ||||||||
-0- preferred stock shares issued and outstanding as of May 31, 2019 and November 30, 2018 | - | - | ||||||
Common stock, $0.001 par value, 3,500,000,000 shares authorized, | ||||||||
77,248,120 and 74,142,211 issued and outstanding as of May 31, 2019 and November 30, 2018, respectively | 77,248 | 74,142 | ||||||
Additional paid-in capital | 2,163,128 | 1,815,625 | ||||||
Common stock payable | 85,120 | 55,120 | ||||||
Accumulated deficit | (2,773,682 | ) | (2,577,305 | ) | ||||
Total stockholders' equity (deficit) | (448,186 | ) | (632,418 | ) | ||||
Total Liabilities and Stockholders' equity (deficit) | $ | 265,504 | $ | 259,959 |
For the Three Months Ended | For the Six Months Ended | |||||||||||||||
Restated | Restated | |||||||||||||||
May 31, 2019 | May 31, 2018 | May 31, 2019 | May 31, 2018 | |||||||||||||
Operating expenses: | ||||||||||||||||
Accounting and legal | $ | 11,869 | $ | 15,014 | $ | 28,686 | $ | 20,852 | ||||||||
Transfer agent and filing fees | 5,571 | 1,263 | 10,281 | 2,583 | ||||||||||||
Consulting | 35,765 | 32,425 | 71,488 | 32,425 | ||||||||||||
Exploration | 30,840 | - | 32,923 | - | ||||||||||||
General and administrative | 17,740 | 18,228 | 42,845 | 18,451 | ||||||||||||
Total operating expenses | 101,785 | 66,980 | 186,223 | 74,311 | ||||||||||||
Net operating income (loss) | (101,785 | ) | (66,980 | ) | (186,223 | ) | (74,311 | ) | ||||||||
Other income (expense): | ||||||||||||||||
Interest expense | (12,049 | ) | (6,564 | ) | (24,405 | ) | (13,190 | ) | ||||||||
Debt forgiveness | - | 100,000 | 14,251 | 100,000 | ||||||||||||
Total Other income (expense) | (12,049 | ) | 93,436 | (10,154 | ) | 86,810 | ||||||||||
Net income (loss) | $ | (113,834 | ) | $ | 26,456 | $ | (196,377 | ) | $ | 12,499 | ||||||
Basic and diluted income (loss) per share | $ | (0.00 | ) | $ | 0.00 | $ | (0.00 | ) | $ | 0.00 | ||||||
Weighted average number of common shares outstanding - | ||||||||||||||||
basic and diluted | 77,248,120 | 62,892,211 | 76,582,568 | 62,892,211 |
Common Stock | Preferred Stock | |||||||||||||||||||||||||||||||
Additional Paid-In | Common Stock | Accumulated | Total Stockholders' | |||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | Capital | Payable | Deficit | Deficiency | |||||||||||||||||||||||||
For the six months ended May 31, 2018 | ||||||||||||||||||||||||||||||||
Balance at November 28, 2017 | 62,892,211 | $ | 62,892 | - | $ | - | $ | 1,206,875 | $ | 15,120 | $ | (1,800,868 | ) | $ | (515,981 | ) | ||||||||||||||||
Net loss | 12,499 | 12,499 | ||||||||||||||||||||||||||||||
Balance at May 31, 2018 (restated) (unaudited) | 62,892,211 | $ | 62,892 | - | $ | - | $ | 1,206,875 | $ | 15,120 | $ | (1,788,369 | ) | $ | (503,482 | ) | ||||||||||||||||
For the three months ended May 31, 2018 | ||||||||||||||||||||||||||||||||
Balance at February 28, 2018 | 62,892,211 | $ | 62,892 | - | $ | - | $ | 1,206,875 | $ | 15,120 | $ | (1,814,825 | ) | $ | (529,938 | ) | ||||||||||||||||
Net loss | 26,456 | 26,456 | ||||||||||||||||||||||||||||||
Balance at May 31, 2018 (restated) (unaudited) | 62,892,211 | $ | 62,892 | - | $ | - | $ | 1,206,875 | $ | 15,120 | $ | (1,788,369 | ) | $ | (503,482 | ) | ||||||||||||||||
For the six months ended May 31, 2019 | ||||||||||||||||||||||||||||||||
Balance at November 30, 2018 | 74,142,211 | $ | 74,142 | - | $ | - | $ | 1,815,625 | $ | 55,120 | $ | (2,577,305 | ) | $ | (632,418 | ) | ||||||||||||||||
Shares issued for services | 3,105,909 | 3,106 | 347,503 | - | 350,609 | |||||||||||||||||||||||||||
Shares payable for services | - | 30,000 | 30,000 | |||||||||||||||||||||||||||||
Net loss | (196,377 | ) | (196,377 | ) | ||||||||||||||||||||||||||||
Balance at May 31, 2019 (unaudited) | 77,248,120 | $ | 77,248 | - | $ | - | $ | 2,163,128 | $ | 85,120 | $ | (2,773,682 | ) | $ | (448,186 | ) | ||||||||||||||||
For the three months ended May 31, 2019 | ||||||||||||||||||||||||||||||||
Balance at February 28, 2019 | 77,248,120 | $ | 77,248 | - | $ | - | $ | 2,154,169 | $ | 68,106 | $ | (2,659,848 | ) | $ | (360,325 | ) | ||||||||||||||||
Shares issued for services | - | - | 8,959 | 8,959 | ||||||||||||||||||||||||||||
Shares payable for services | 17,014 | 17,014 | ||||||||||||||||||||||||||||||
Net loss | (113,835 | ) | (113,835 | ) | ||||||||||||||||||||||||||||
Balance at May 31, 2019 (unaudited) | 77,248,120 | $ | 77,248 | - | $ | - | $ | 2,163,128 | $ | 85,120 | $ | (2,773,683 | ) | $ | (448,187 | ) |
The accompanying notes are an integral part of these financial statements.
For the Six Months Ended | ||||||||
Restated | ||||||||
May 31, 2019 | May 31, 2018 | |||||||
Cash flows from operating activities: | ||||||||
Net income (loss) | $ | (196,377 | ) | $ | 12,499 | |||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Stock based compensation | 32,768 | - | ||||||
Forgiveness of debt | (14,250 | ) | (100,000 | ) | ||||
Changes in operating assets and liabilities: | ||||||||
Prepaid expenses | (501 | ) | (4,650 | ) | ||||
Accounts payable | (5,112 | ) | 21,722 | |||||
Accounts payable expenses - related parties | 35,920 | 2,425 | ||||||
Accrued expenses | 8,833 | 12,870 | ||||||
Accrued expenses - related parties | 15,572 | 320 | ||||||
Due to related parties | - | 14,609 | ||||||
Net cash used in operating activities | (123,147 | ) | (40,205 | ) | ||||
Cash flows from financing activities | ||||||||
Proceeds from notes payable - current portion | - | 10,000 | ||||||
Proceeds from notes payable to related parties - current portion | 20,000 | 30,000 | ||||||
Proceeds from notes payable - long term portion | 50,000 | - | ||||||
Proceeds from notes payable to related parties - long term portion | 52,000 | - | ||||||
Net cash provided by financing activities | 122,000 | 40,000 | ||||||
Net increase (decrease) in cash | (1,147 | ) | (205 | ) | ||||
Cash - beginning of the year | 1,172 | 541 | ||||||
Cash - end of the year | $ | 25 | $ | 336 | ||||
Supplemental disclosures: | ||||||||
Interest paid | $ | - | $ | - | ||||
Income taxes | $ | - | $ | - | ||||
Non-cash transactions: | ||||||||
Stock Compensation | $ | 32,768 | $ | - |
Description | May 31, 2019 | November 30, 2018 | ||||||
Consulting | $ | 14,812 | $ | 8,620 | ||||
Listing Fees | 2,167 | 2,167 | ||||||
Other | 500 | - | ||||||
Total | $ | 17,479 | $ | 10,787 |
Date of Note | Note Amount | Interest Rate | Maturity Date | Collateral | Interest Accrued | |||||||||||
May 1, 2016 (1) | $ | - | 8 | % | May 1, 2017 (Default) | None | $ | - | ||||||||
October 20, 2016 | $ | 5,000 | 8 | % | October 20, 2017 (Default) | None | $ | 1,044 | ||||||||
January 9, 2017 | $ | 9,000 | 8 | % | January 9, 2018 (Default) | None | $ | 1,720 | ||||||||
April 24, 2017 | $ | 10,000 | 8 | % | April 24, 2018 (Default) | None | $ | 1,681 | ||||||||
June 19, 2017 | $ | 7,000 | 8 | % | June 19, 2018 (Default) | None | $ | 1,091 | ||||||||
September 18, 2017 | $ | 6,000 | 8 | % | September 18, 2018 (Default) | None | $ | 815 | ||||||||
January 5, 2018 | $ | 10,000 | 8 | % | January 5, 2019 (Default) | None | $ | 1,120 | ||||||||
April 17, 2018 | $ | 30,000 | 8 | % | April 17, 2019 (Default) | None | $ | 2,689 | ||||||||
July 27, 2018 | $ | 31,700 | 12 | % | July 27, 2019 | None | $ | 3,209 | ||||||||
August 15, 2018 | $ | 108,000 | 12 | % | August 15, 2019 | None | $ | 10,261 | ||||||||
September 7, 2018 | $ | 15,000 | 12 | % | July 31, 2020 | None | $ | 1,312 | ||||||||
September 12, 2018 | $ | 20,500 | 12 | % | August 15, 2020 | None | $ | 1,759 | ||||||||
September 27, 2018 | $ | 10,000 | 12 | % | July 31, 2020 | None | $ | 809 | ||||||||
October 10, 2018 | $ | 42,000 | 12 | % | July 31, 2020 | None | $ | 3,217 | ||||||||
November 20, 2018 | $ | 7,905 | 12 | % | July 31, 2020 | None | $ | 499 | ||||||||
November 20, 2018 | $ | 7,970 | 12 | % | July 31, 2020 | None | $ | 503 | ||||||||
December 18, 2018 | $ | 25,000 | 12 | % | February 18, 2020 | None | $ | 1,347 | ||||||||
January 24, 2019 | $ | 42,000 | 12 | % | August 15, 2020 | None | $ | 1,756 | ||||||||
February 18, 2019 | $ | 20,000 | 12 | % | February 18, 2020 | None | $ | 671 | ||||||||
March 6, 2019 | $ | 10,000 | 12 | % | August 15, 2020 | None | $ | 283 | ||||||||
May 3, 2019 | $ | 25,000 | 12 | % | July 31, 2020 | None | $ | 230 | ||||||||
Total | $ | 442,075 | $ | 36,016 |
(1) | On January 8, 2019, the Company agreed to convert principle and interest of $341,650 into 3,105,909 unregistered shares of the Company’s common stock to fully satisfy the obligation. The common stock was valued at $0.11 per share. In-addition, the Company recognized $14,250 income from debt forgiveness for the portion of the Promissory note accrued interest not converted to the Company’s common stock. The Company calculated the fair value of the beneficial conversion feature on the debt modification as the difference between the conversion price and the fair market value of the Company’s common stock into on the date of modification. The fair value of the conversion provision in connection with the note on the date of modification was $-0-. |
Balance, November 30, 2018 | $ | 612,941 | ||
Borrowings | 122,000 | |||
Less repayments | 292,866 | |||
Balance, May 31, 2019 | $ | 442,075 |
Year Due | Principal | Interest | Total | ||||||||||
2019 | $ | 216,700 | $ | 23,632 | $ | 240,332 | |||||||
2020 | 225,375 | 12,384 | 237,759 | ||||||||||
Total | $ | 442,075 | $ | 36,016 | $ | 478,091 |
Risk-free interest rate | 2.54 | % | ||
Expected life (in years) | 3 | |||
Expected volatility | 310.6 | % | ||
Grant date fair value | $ | .097 |
August 31, 2018 | ||||||||||||
As Reported | Adjustment | As Restated | ||||||||||
Balance Sheet: | ||||||||||||
Current Assets | $ | 236,693 | $ | (221,457 | ) | $ | 15,236 | |||||
Resource Property | 378,000 | (130,000 | ) | 248,000 | ||||||||
Total assets | $ | 614,693 | $ | (351,457 | ) | $ | 263,236 | |||||
Accounts payable | $ | 53,688 | $ | 10,910 | $ | 64,598 | ||||||
Accounts payable – related parties | 32,635 | 12,740 | 45,375 | |||||||||
Due to related party | 97,513 | (10,907 | ) | 86,606 | ||||||||
Accrued interest | - | 886 | 886 | |||||||||
Accrued interest – related party | 60,282 | 2,993 | 63,275 | |||||||||
Notes payable | - | 41,700 | 41,700 | |||||||||
Notes payable – related party | 479,566 | (11,700 | ) | 467,866 | ||||||||
Total liabilities | 723,684 | 46,622 | 770,306 | |||||||||
Common stock | 65,392 | - | 65,392 | |||||||||
Additional paid-in capital | 1,429,375 | (125,000 | ) | 1,304,375 | ||||||||
Common stock payable | 310,120 | (5,000 | ) | 305,120 | ||||||||
Accumulated deficit | (1,913,878 | ) | (268,079 | ) | (2,181,957 | ) | ||||||
Total Stockholders’ Equity | (108,991 | ) | (398,079 | ) | (507,070 | ) | ||||||
Total liabilities and stockholders’ equity | $ | 614,693 | $ | (351,457 | ) | $ | 263,236 |
For the nine months ended August 31, 2018 | ||||||||||||
As Reported | Adjustment | As Restated | ||||||||||
Operating expenses | $ | 191,745 | $ | 264,200 | $ | 455,945 | ||||||
Interest expense | 21,265 | 3,879 | 25,144 | |||||||||
Forgiveness of debt | (100,000 | ) | - | (100,000 | ) | |||||||
Net Loss | $ | (113,010 | ) | $ | 268,079 | $ | 381,089 |
May 31, 2018 | ||||||||||||
As Reported | Adjustment | As Restated | ||||||||||
Balance Sheet: | ||||||||||||
Current Assets | $ | 5,924 | $ | (938 | ) | $ | 4,986 | |||||
Deposit | 591 | - | 591 | |||||||||
Total assets | $ | 6,515 | $ | - | $ | 5,577 | ||||||
Accounts payable | $ | 69,894 | $ | (46,844 | ) | $ | 23,050 | |||||
Accounts payable – related parties | 7,085 | 7,425 | 14,510 | |||||||||
Due to related party | 38,170 | 11,256 | 49,426 | |||||||||
Accrued interest | - | 320 | 320 | |||||||||
Accrued interest – related party | 52,497 | (610 | ) | 51,887 | ||||||||
Notes payable | - | 10,000 | 10,000 | |||||||||
Notes payable – related party | 339,866 | 20,000 | 359,866 | |||||||||
Total liabilities | 507,512 | 1,547 | 509,059 | |||||||||
Common stock | 62,892 | - | 62,892 | |||||||||
Additional paid-in capital | 1,206,875 | - | 1,206,875 | |||||||||
Common stock payable | 15,120 | - | 15,120 | |||||||||
Accumulated deficit | (1,785,884 | ) | (2,485 | ) | (1,788,369 | ) | ||||||
Total Stockholders’ Equity | (500,997 | ) | (2,485 | ) | (503,482 | ) | ||||||
Total liabilities and stockholders’ equity | $ | 6,515 | $ | - | $ | 5,577 |
For the six months ended May 31, 2018 | ||||||||||||
As Reported | Adjustment | As Restated | ||||||||||
Operating expenses | $ | 71,536 | $ | 2,775 | $ | 74,311 | ||||||
Interest expense | 13,480 | (290 | ) | 13,190 | ||||||||
Forgiveness of debt | (100,000 | ) | - | (100,000 | ) | |||||||
Net Income (Loss) | $ | 14,984 | $ | 2,485 | $ | 12,499 |
Expense | Cost | |||
General and administrative expenses | $ | 25,000 | ||
Management and administrative costs | $ | 150,000 | ||
Legal Fees | $ | 10,000 | ||
Auditor Fees | $ | 12,000 | ||
Exploration | $ | 150,000 | ||
Total | $ | 347,000 |
Exhibit Number | Description | ||
(3 | ) | (i) Articles of Incorporation; (ii) By-laws | |
3.1 | Articles of Incorporation (Incorporated by reference to our Registration Statement filed on Form S-1 on February 25, 2009). | ||
3.2 | By-laws (Incorporated by reference to our Registration Statement filed on Form S-1 on February 25, 2009) | ||
3.3 | Certificate of Amendment (Incorporated by reference to our Registration Statement filed on Form S-1 on February 25, 2009). | ||
3.4 | Articles of Merger (Incorporated by reference to our Current Report filed on Form 8-K on July 15, 2010). | ||
3.5 | Certificate of Change (Incorporated by reference to our Current Report filed on Form 8-K on July 15, 2010). | ||
3.6 | Articles of Merger (Incorporated by reference to our Current Report filed on Form 8-K on June 25, 2018). |
(10 | ) | Material Contracts | |
10.1 | 2011 Stock Option Plan (incorporated by reference to our Current Report filed on Form 8-K on November 14, 2011). | ||
10.2 | Foxglove Promissory Note dated June 28, 2015 (incorporated by reference to our Quarterly Report filed on Form 10-Q on October 14, 2015). | ||
10.3 | $7,000 Convertible Promissory Note dated October 15, 2015 issued to Consorcio Empresarial Vesubio SA (incorporated by reference to our Quarterly Report filed on Form 10-Q on October 14, 2015). | ||
10.4 | Assignment Agreement dated effective August 7, 2018 between Oriental Rainbow Group Ltd. and Century Cobalt Corp. (incorporated by reference to our Current Report filed on Form 8-K on August 14, 2018). | ||
10.5 | Consulting Agreement with Alexander Stanbury, dated September 14, 2018. (incorporated by reference to Exhibit 10.10 to our Quarterly Report filed on Form 10-Q on October 22, 2018). | ||
10.6 | Consulting Agreement with Lester Kemp, dated September 11, 2018. (incorporated by reference to Exhibit 10.11 to our Quarterly Report filed on Form 10-Q on October 22, 2018). | ||
(31 | ) | Rule 13a-14(a) / 15d-14(a) Certifications | |
31.1 | * | Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. | |
(32 | ) | Section 1350 Certifications | |
32.1 | * | Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. | |
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 |
CENTURY COBALT CORP. | |||
(Registrant) | |||
Dated: July 25, 2019 | /s/ Alexander Stanbury | ||
Alexander Stanbury | |||
President, Chief Executive Officer, Treasurer, Secretary and Director | |||
` | (Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer) |