Attached files
file | filename |
---|---|
EX-31.1 - VIKING ENERGY GROUP, INC. | v165472_ex31-1.htm |
EX-31.2 - VIKING ENERGY GROUP, INC. | v165472_ex31-2.htm |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
DC 20549
FORM
10-Q
x
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For the
quarterly period ended: September 30,
2009
¨
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
For the
transition period from ______________
to _______________
Commission
file number 000-29219
SINOCUBATE,
INC.
|
(Exact
name of registrant as specified in its
charter)
|
Nevada
|
98-0199508
|
|
(State
or other jurisdiction of incorporation or
organization)
|
(IRS
Employer Identification No.)
|
65
Broadway, 7th
Floor
New
York, New York
|
10006
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Issuer’s
telephone number
|
(212)
359 4300
|
(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.
Yes x No ¨
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller 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
|
¨
|
Accelerated
Filer
|
¨
|
Non
Accelerated Filer
|
¨
|
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).
Yes x No ¨
APPLICABLE
ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING
THE
PRECEDING FIVE YEARS:
Indicate
by check mark whether the registrant has filed all documents and reports
required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act
of 1934 subsequent to the distribution of securities under a plan confirmed by a
court.
Yes ¨ No ¨ Not
Applicable
APPLICABLE
ONLY TO CORPORATE ISSUERS
The
number of shares of common stock outstanding as of September 30, 2009 was
995,655.
SINOCUBATE,
INC.
FORM
10-Q
PART
I – FINANCIAL INFORMATION
|
||
ITEM
1.
|
FINANCIAL
STATEMENTS
|
F-1
|
BALANCE
SHEETS (Unaudited)
|
F-2
|
|
STATEMENT
OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)
|
F-3
|
|
STATEMENT
OF CASH FLOWS (Unaudited)
|
F-4
|
|
STATEMENT
OF STOCKHOLDERS’ DEFICIENCY (Unaudited)
|
F-5
|
|
NOTES
TO FINANCIAL STATEMENTS (Unaudited)
|
F-8
|
|
ITEM
2.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
3
|
ITEM
3.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
5
|
ITEM
4.
|
CONTROLS
AND PROCEDURES
|
5
|
PART
II – OTHER INFORMATION
|
||
ITEM
1.
|
LEGAL
PROCEEDINGS
|
6
|
ITEM
1A.
|
RISK
FACTORS
|
6
|
ITEM
2.
|
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
6
|
ITEM
3.
|
DEFAULTS
UPON SENIOR SECURITIES
|
6
|
ITEM
4.
|
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY HOLDERS
|
6
|
ITEM
5.
|
OTHER
INFORMATION
|
6
|
ITEM
6.
|
EXHIBITS
|
6
|
SIGNATURES
|
7
|
2
PART
I – FINANCIAL INFORMATION
ITEM
1.
|
FINANCIAL
STATEMENTS
|
SINOCUBATE,
INC.
(A
Development Stage Company)
FINANCIAL
STATEMENTS
September
30, 2009
(Unaudited)
F-1
SINOCUBATE,
INC.
(A
Development Stage Company)
BALANCE
SHEET
(Unaudited)
September 30,
|
December 31,
|
|||||||
|
2009
|
2008
|
||||||
Unaudited
|
||||||||
ASSETS
|
||||||||
Current
|
||||||||
Cash
|
$
|
—
|
$
|
|||||
LIABILITIES
AND STOCKHOLDERS’ DEFICIT
|
||||||||
Current
|
||||||||
Accounts
payable and accrued liabilities
|
$
|
—
|
$
|
|||||
Notes
payable
|
—
|
|||||||
—
|
||||||||
Capital
stock
|
||||||||
Preferred
stock, $0.01 par value, 5,000,000 shares authorized, no shares issued or
outstanding as of September 30, 2009
|
||||||||
Common
stock, $0.01 par value, 100,000,000 shares authorized 995,655 shares
issued and outstanding as of September 30, 2009
|
996
|
996
|
||||||
Additional
paid-in capital
|
2,296,443
|
2,282,641
|
||||||
Deficit
|
(1,305,454
|
)
|
(1,305,454)
|
|||||
Deficit
accumulated during the development stage
|
(991,985
|
)
|
(978,183)
|
|||||
—
|
||||||||
$
|
—
|
$
|
SEE
ACCOMPANYING NOTE
F-2
SINOCUBATE,
INC.
(A
Development Stage Company)
STATEMENTS
OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
Three months ended
|
Nine months ended
|
January 1, 2004
(Date of Inception of
the Development
Stage) to
|
||||||||||||||||||
September 30,
|
September 30
|
September 30,
|
||||||||||||||||||
2009
|
2008
|
2009
|
2008
|
2009
|
||||||||||||||||
General
and administrative expenses
|
||||||||||||||||||||
Amortization
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
27,077
|
||||||||||
Bad
debt
|
-
|
-
|
-
|
-
|
525
|
|||||||||||||||
Corporate
promotion
|
13,920
|
|||||||||||||||||||
Finance
charges
|
10
|
16,112
|
27,397
|
|||||||||||||||||
Insurance
|
15,901
|
|||||||||||||||||||
Interest
on notes payable
|
3,234
|
11,220
|
34,648
|
|||||||||||||||||
Management
and consultant fees
|
14,774
|
65,755
|
290,354
|
|||||||||||||||||
Office
supplies and services
|
91
|
3,428
|
43,240
|
|||||||||||||||||
Professional
fees
|
4,000
|
13,802
|
18,810
|
299,819
|
||||||||||||||||
Rent
|
-
|
-
|
-
|
16311
|
||||||||||||||||
Wages
|
84,258
|
|||||||||||||||||||
Loss
before other items
|
(4,000
|
)
|
(18,109
|
)
|
(13,802
|
)
|
(130,325
|
)
|
(853,450
|
)
|
||||||||||
Other
items
|
|
|||||||||||||||||||
Loss
on disposition of equipment
|
-
|
-
|
-
|
-
|
(15,028
|
)
|
||||||||||||||
Write-down
of intangible assets
|
-
|
-
|
-
|
-
|
(50,001
|
)
|
||||||||||||||
Write-off
of payables
|
37,040
|
73,607
|
73,607
|
|||||||||||||||||
Write-off
of notes payable
|
14,823
|
|||||||||||||||||||
Gain
on settlement of lawsuit
|
31,874
|
44,445
|
||||||||||||||||||
Gain
on sales of investment
|
31,874
|
31,874
|
||||||||||||||||||
Other
income
|
36,512
|
36,512
|
42,530
|
|||||||||||||||||
Income
(loss) from continuing operations
|
(4,000
|
) |
87,317
|
(13,802)
|
26,668
|
(711,200
|
)
|
|||||||||||||
Operating
income (loss) from discontinued
Operations
|
(388,905
|
)
|
||||||||||||||||||
Gain
(Loss) on sale of discontinued operations
|
-
|
78,436
|
108,120
|
|||||||||||||||||
Net
income (loss)
|
$
|
(4,000
|
) |
$
|
87,317
|
$
|
(13,802
|
) |
$
|
105,104
|
$
|
(991,985
|
)
|
|||||||
Basic
and diluted income (loss) per common share
|
$
|
(0.004
|
) |
$
|
0.12
|
$
|
(0.01
|
) |
$
|
0.15
|
||||||||||
Weighted
average number of common share outstanding – basic and
diluted
|
995,655,
|
752,039
|
995,655
|
709,866
|
||||||||||||||||
Comprehensive
loss
|
||||||||||||||||||||
Net
income (loss)
|
$
|
(4,000
|
) |
$
|
87,317
|
$
|
(13,802
|
) |
$
|
105,104
|
$
|
(991,985
|
)
|
|||||||
Foreign
currency translation adjustment
|
(15
|
)
|
805
|
|||||||||||||||||
Total
comprehensive income(loss)
|
$
|
(4,000
|
) |
$
|
87,302
|
$
|
(13,802
|
) |
$
|
105,909
|
$
|
(991,985
|
)
|
SEE
ACCOMPANYING NOTES
F-3
SINOCUBATE,
INC.
(A
Development Stage Company)
STATEMENT
OF CASH FLOWS
(Unaudited)
January 1, 2004
|
|
|||||||||||
(Date of
Inception
|
||||||||||||
of the
Development
|
||||||||||||
Nine months ended
|
Stage) to
|
|||||||||||
September 30,
|
September 30,
|
|||||||||||
2009
|
2008
|
2009
|
||||||||||
Cash
flows from operating activities
|
||||||||||||
Net
income (loss)
|
$
|
(13,802
|
) |
$
|
(105,104
|
)
|
$
|
(991,985
|
)
|
|||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||||||
Finance
charges
|
-
|
16,102
|
27,387
|
|||||||||
Accrued
interest on notes payable
|
-
|
7,986
|
31,414
|
|||||||||
Amortization
|
-
|
-
|
27,077
|
|||||||||
Accrued
Expenses
|
13,802
|
(17,306
|
) |
63,108
|
||||||||
Foreign
exchange effect on notes payable
|
-
|
(2,798
|
) |
5,303
|
||||||||
Issuance
of common stock for services
|
-
|
-
|
1,000
|
|||||||||
Stock-based
compensation
|
-
|
-
|
4,460
|
|||||||||
Loss
on disposition of equipment
|
-
|
-
|
225,184
|
|||||||||
Write-down
of intangible assets
|
-
|
-
|
360,001
|
|||||||||
Write-off
of payables
|
-
|
(73,607
|
) |
(73,607)
|
||||||||
Write-off
of notes payable
|
-
|
-
|
(18,729
|
)
|
||||||||
Gain
on settlement of lawsuit
|
-
|
-
|
(44,445
|
)
|
||||||||
Gain
on sale of subsidiaries
|
-
|
(78,436
|
) |
(108,121
|
)
|
|||||||
Gain
on Sale of investment
|
-
|
(31,874
|
) |
-
|
||||||||
Other
Income
|
-
|
(36,512
|
) |
-
|
||||||||
Changes
in non-cash working capital items:
|
-
|
-
|
-
|
|||||||||
Prepaid
expenses and deposits
|
-
|
-
|
-
|
|||||||||
Accounts
payable and accrued liabilities
|
-
|
10,013
|
143,521
|
|||||||||
Cash
used in continuing operations
|
-
|
(66,716
|
) |
(422,836
|
)
|
|||||||
Discontinued
operations
|
-
|
(362
|
) |
(171,213
|
)
|
|||||||
Net
cash used in operating activities
|
-
|
(67,078
|
) |
(640,784
|
)
|
|||||||
Cash
flows from investing activities
|
||||||||||||
Proceeds
from sale of subsidiary
|
-
|
-
|
1
|
|||||||||
Proceeds
from assets disposition
|
-
|
-
|
5,458
|
|||||||||
Purchase
of equipment
|
-
|
-
|
(5,808
|
)
|
||||||||
Net
cash used in investing activities
|
-
|
-
|
(349
|
) | ||||||||
Cash
flows from financing activities
|
||||||||||||
Settlement
of notes payable
|
-
|
-
|
398,614
|
|||||||||
Proceeds
from issuance of common stock
|
-
|
-
|
1,000
|
|||||||||
Net
cash provided by financing activities
|
-
|
399,614
|
||||||||||
-
|
||||||||||||
Effect
of exchange rate changes on cash
|
-
|
805
|
(14,734
|
) | ||||||||
Change
in cash from continuing operations
|
(67,078
|
) |
(209,518
|
) | ||||||||
-
|
||||||||||||
Cash,
beginning
|
66,273
|
209,518
|
||||||||||
-
|
||||||||||||
Cash,
ending
|
$
|
-
|
-
|
$
|
-
|
Supplemental
cash flow information
SEE
ACCOMPANYING NOTES
F-4
SINOCUBATE, INC.
(A
Development Stage Company)
STATEMENT
OF STOCKHOLDERS’ DEFICIENCY
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
Deficit
Accumulated
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
Additional
|
|
|
|
|
Other
|
|
|
|
|
During the
|
|
|
|
|||||||||||||||||
|
|
Common Shares
|
|
|
Treasury
|
|
|
Paid-in
|
|
|
Subscriptions
|
|
|
Comprehensive
|
|
|
|
|
Development
|
|
|
|
||||||||||||||
Number
|
Amount
|
Stock
|
Capital
|
Received
|
Income
|
Deficit
|
Stage
|
Total
|
||||||||||||||||||||||||||||
May
3, 1989 (Inception) through
December
31, 1997
|
60,022
|
$
|
600
|
$
|
-
|
$
|
9,400
|
$
|
-
|
$
|
-
|
$
|
(10,000
|
)
|
$
|
-
|
$
|
-
|
||||||||||||||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(148,931
|
)
|
-
|
(148,931
|
)
|
|||||||||||||||||||||||||
Shares
issued for cash
|
180,000
|
1,800
|
-
|
148,200
|
2,000
|
-
|
-
|
-
|
152,000
|
|||||||||||||||||||||||||||
Balance
at December 31, 1998
|
240,022
|
2,400
|
-
|
157,600
|
2,000
|
-
|
(158,931
|
)
|
-
|
3,069
|
||||||||||||||||||||||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(511,587
|
)
|
-
|
(511,587
|
)
|
|||||||||||||||||||||||||
Foreign
currency translation adjustment
|
-
|
-
|
-
|
-
|
-
|
(14,130
|
)
|
-
|
-
|
(14,130
|
)
|
|||||||||||||||||||||||||
Share
issued for services
|
15,000
|
150
|
-
|
124,850
|
-
|
-
|
-
|
-
|
125,000
|
|||||||||||||||||||||||||||
Subscription
receivable
|
12,000
|
120
|
-
|
99,880
|
8,000
|
-
|
-
|
-
|
108,000
|
|||||||||||||||||||||||||||
Share
issued for intangible assets
|
15,000
|
150
|
-
|
124,850
|
-
|
-
|
-
|
-
|
125,000
|
|||||||||||||||||||||||||||
Balance
at December 31, 1999
|
282,022
|
2,820
|
-
|
507,180
|
10,000
|
(14,130
|
)
|
(670,518
|
)
|
-
|
(164,648
|
)
|
||||||||||||||||||||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(339,063
|
)
|
-
|
(339,063
|
)
|
|||||||||||||||||||||||||
Foreign
currency translation adjustment
|
-
|
-
|
-
|
-
|
-
|
18,885
|
-
|
-
|
18,885
|
|||||||||||||||||||||||||||
Shares
issued for cash
|
21,600
|
216
|
-
|
259,784
|
-
|
-
|
-
|
-
|
260,000
|
|||||||||||||||||||||||||||
Shares
issued for settlement of debt
|
4,500
|
45
|
-
|
174,955
|
-
|
-
|
-
|
-
|
175,000
|
|||||||||||||||||||||||||||
Subscription
receivable
|
600
|
6
|
-
|
9,994
|
(200
|
)
|
-
|
-
|
-
|
9,800
|
||||||||||||||||||||||||||
Subscription
received
|
30,000
|
300
|
-
|
499,700
|
(9,350
|
)
|
-
|
-
|
-
|
490,650
|
||||||||||||||||||||||||||
Stock
option benefit
|
-
|
-
|
-
|
14,235
|
-
|
-
|
-
|
-
|
14,235
|
|||||||||||||||||||||||||||
Balance
at December 31, 2000
|
338,722
|
3,387
|
-
|
1,465,848
|
450
|
4,755
|
(1,009,581
|
)
|
-
|
464,859
|
||||||||||||||||||||||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
-
|
375,621
|
-
|
375,621
|
|||||||||||||||||||||||||||
Foreign
currency translation adjustment
|
-
|
-
|
-
|
-
|
-
|
13,629
|
-
|
-
|
13,629
|
|||||||||||||||||||||||||||
Shares
issued for cash
|
300
|
3
|
-
|
2,247
|
-
|
-
|
-
|
-
|
2,250
|
|||||||||||||||||||||||||||
Subscription
received
|
-
|
-
|
-
|
-
|
200
|
-
|
-
|
-
|
200
|
|||||||||||||||||||||||||||
Stock
option benefit
|
-
|
-
|
-
|
118,920
|
-
|
-
|
-
|
-
|
118,920
|
|||||||||||||||||||||||||||
Repurchase
of common stock for treasury
|
-
|
-
|
(270
|
)
|
(6,611
|
)
|
-
|
-
|
-
|
-
|
(6,881
|
)
|
||||||||||||||||||||||||
Balance
at December 31, 2001
|
339,022
|
3,390
|
(270
|
)
|
1,580,404
|
650
|
18,384
|
(633,960
|
)
|
-
|
968,598
|
|||||||||||||||||||||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
(63,864
|
)
|
-
|
(63,864
|
)
|
||||||||||||||||||||||||||
Foreign
currency translation adjustment
|
-
|
-
|
-
|
-
|
(1,155
|
)
|
-
|
(1,155
|
)
|
|||||||||||||||||||||||||||
Shares
issued for cash
|
4,500
|
45
|
-
|
33,705
|
-
|
-
|
-
|
-
|
33,750
|
|||||||||||||||||||||||||||
Balance
at December 31, 2002
|
343,522
|
$
|
3,435
|
$
|
(270
|
)
|
$
|
1,614,109
|
$
|
650
|
$
|
17,229
|
$
|
(697,824
|
)
|
$
|
-
|
$
|
937,329
|
SEE
ACCOMPANYING NOTES
F-5
SINOCUBATE,
INC.
(A
Development Stage Company)
STATEMENT
OF STOCKHOLDERS’ DEFICIENCY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deficit
|
|
|
|
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
Accumulated
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
Additional
|
|
|
|
|
Other
|
|
|
|
|
During the
|
|
|
|
|||||||||||||||
|
|
Common Shares
|
|
|
Treasury
|
|
|
Paid-in
|
|
|
Subscriptions
|
|
|
Comprehensive
|
|
|
|
|
Development
|
|
|
|
||||||||||||||
Number
|
Amount
|
Stock
|
Capital
|
Received
|
Income
|
Deficit
|
Stage
|
Total
|
||||||||||||||||||||||||||||
Balance
at December
31,
2002
|
343,522
|
3,435
|
(270
|
)
|
1,614,109
|
650
|
17,229
|
(697,824
|
)
|
-
|
937,329
|
|||||||||||||||||||||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(607,630
|
)
|
-
|
(607,630
|
)
|
|||||||||||||||||||||||||
Foreign
currency translation adjustment
|
-
|
-
|
-
|
-
|
-
|
1,752
|
-
|
-
|
1,752
|
|||||||||||||||||||||||||||
Stock
option benefit
|
-
|
-
|
-
|
11,800
|
-
|
-
|
-
|
11,800
|
||||||||||||||||||||||||||||
Cancellation
of agreement
|
-
|
-
|
-
|
(650
|
)
|
-
|
-
|
-
|
(650
|
)
|
||||||||||||||||||||||||||
Share
issues for cash on exercise of options
|
12,000
|
120
|
-
|
11,880
|
-
|
-
|
-
|
-
|
12,000
|
|||||||||||||||||||||||||||
Share
issues for consulting services
|
45,000
|
450
|
-
|
49,675
|
-
|
-
|
-
|
-
|
50,125
|
|||||||||||||||||||||||||||
Share
issues for intangible assets
|
60,000
|
600
|
-
|
104,400
|
-
|
-
|
-
|
-
|
105,000
|
|||||||||||||||||||||||||||
Share
issued for software
|
60,000
|
600
|
-
|
53,400
|
-
|
-
|
-
|
-
|
54,000
|
|||||||||||||||||||||||||||
Balance
at December 31, 2003
|
520,522
|
5,205
|
(270
|
)
|
1,845,264
|
-
|
18,981
|
(1,305,454
|
)
|
-
|
563,726
|
|||||||||||||||||||||||||
Net
loss
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(795,364
|
)
|
(795,364
|
)
|
|||||||||||||||||||||||||
Foreign
currency translation adjustment
|
-
|
-
|
-
|
-
|
-
|
(238
|
)
|
-
|
-
|
(238
|
)
|
|||||||||||||||||||||||||
Stock-based
compensation
|
-
|
-
|
-
|
4,460
|
-
|
-
|
-
|
-
|
4,460
|
|||||||||||||||||||||||||||
Shares
issued for cash on exercise of options
|
1,000
|
10
|
-
|
990
|
-
|
-
|
-
|
-
|
1,000
|
|||||||||||||||||||||||||||
Share
issued for debt
|
140,000
|
1,400
|
-
|
68,600
|
-
|
-
|
-
|
-
|
70,000
|
|||||||||||||||||||||||||||
Share
issued for consulting services
|
2,000
|
20
|
-
|
980
|
-
|
-
|
-
|
-
|
1,000
|
|||||||||||||||||||||||||||
Balance
at December 31, 2004
|
663,522
|
6,635
|
(270
|
)
|
1,920,294
|
-
|