Attached files
file | filename |
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EX-5.1 - ADVANCED PIPE FITTING TECHNOLOGIES, INC. | apft_ex5.htm |
EX-3.1 - ADVANCED PIPE FITTING TECHNOLOGIES, INC. | apft_ex3-1.htm |
EX-3.2 - ADVANCED PIPE FITTING TECHNOLOGIES, INC. | apft_ex3-2.htm |
EX-23.1 - ADVANCED PIPE FITTING TECHNOLOGIES, INC. | apft_ex23-1.htm |
EX-23.3 - ADVANCED PIPE FITTING TECHNOLOGIES, INC. | apft_ex23-3.htm |
UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM S-1
REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OF 1933
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Advanced Pipe Fitting Technologies,
Inc
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Nevada
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1623
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27-0838546
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(State
or jurisdiction of incorporation or organization)
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(Primary
Standard Industrial Classification Code Number)
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(I.R.S.
Employer Identification No.)
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Agent
For service
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4790
Caughlin Pkwy, Ste 387
Reno,
NV 8951
775-851-7397
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Copies to:
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Novi
& Wilkin
Attorneys
at Law
1325
Airmotive Way, Suite 140
Reno,
NV 89502
775-232-1950
Fax: 775-201-8331
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Approximate
date of proposed sale to the public: As soon as practicable after this
Registration Statement becomes effective.
If this
Form is filed to register additional securities for an offering pursuant to Rule
462(b) under the Securities Act, please check the following box and list the
Securities Act Registration Statement number of the earlier effective
Registration Statement for the same offering. [ ]
_______________________________________
If this
Form is a post-effective amendment filed pursuant to Rule 462(c) under the
Securities Act, check the following box and list the Securities Act Registration
Statement number of the earlier effective Registration Statement for the same
offering. [ ] ______________________________
If this
Form is a post-effective amendment filed pursuant to Rule 462(d) under the
Securities Act, check the following box and list the Securities Act Registration
Statement number of the earlier effective Registration Statement for the same
offering. [ ] ______________________________
If this
Form is filed to register securities for an offering to be made on a continuous
or delayed basis pursuant to Rule 415 under the Securities Act, please check the
following box. [X]
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filed or a smaller reporting
company
Large
accelerated filer [ ]
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Accelerated
filer [ ]
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Non-accelerated
filer [ ]
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Smaller
reporting
company [X]
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CALCULATION
OF REGISTRATION FEE
Title
of Each Class of
Securities to be Registered
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Amount
to be
Registered
(1)
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Proposed
Maximum
Offering
Price
per
Share ($)
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Proposed
Maximum
Aggregate
Offering
Price
($)(2)
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Amount
of
Registration
Fee($)
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Shares of Common Stock, $.001 par
value
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600,000 | $ | 0.25 | $ | 150,000 | $ | 10.70 |
1
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The
shares of our Common Stock being registered hereunder for resale by the
selling security holders named in the prospectus. The Company
will not receive any of the proceeds.
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2
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Estimated
solely for purposes of calculating the registration fee in accordance with
Rule 457 of the Securities Act, based upon the fixed price of the
offering. The Company will derive no financial benefit
from the sales of these shares. The shares will be offered at prevailing
market prices or privately negotiated
prices.
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The
Registrant hereby amends this Registration Statement on such date or dates as
may be necessary to delay its effective date until the Registrant shall file a
further amendment which specifically states that this Registration Statement
shall thereafter become effective in accordance with Section 8(a) of the
Securities Act of 1933 or until the Registration Statement shall become
effective on such date as the Commission, acting pursuant to said Section 8(a),
may determine.
Neither
the Securities and Exchange Commission nor any state securities commission has
approved or disapproved of these securities or passed upon the adequacy or
accuracy of the Prospectus. Any representation to the contrary is a criminal
offense.
1
Prospectus
Advanced
Pipe Fitting Technologies, Inc
600,000
Shares of Common Stock
$0.25 per
share
$150,000
This is
the initial offering of Common stock of Advanced Pipe Fitting
Technologies, Inc (APFT) and no public market currently exists for the
securities being offered. APFT (“Company,” “we,” “us,” and
“our”) will derive no financial benefit from the sales of these
shares. The shares will be offered at $0.25 per share by its selling
shareholders until shares of our common stock are quoted on the OTC Bulletin
Board, or listed for trading or quoted on any other public market, and
thereafter at prevailing market prices or privately negotiated
prices. Our common stock is presently not traded on
any market or securities exchange, and we have not applied
for listing or quotation on any
public market. Further, there is no assurance that our
common stock will ever trade on any market or securities
exchange. We will not receive any proceeds from the resale of
shares of common stock by the selling shareholders. We will pay
for all of the expenses related to this offering.
Prior to
this offering, there has been no public market for the Company’s common
stock.
Number
of Shares
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Offering
Price
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Underwriting
Discounts & Commissions
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Proceeds
to the selling shareholders
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600,000 | $ | 0.25 | $ | 0.00 | $ | 150,000 |
This
investment involves a high degree of risk. You should purchase shares only if
you can afford a complete loss of your investment. See the section titled “Risk
Factors” beginning on Page 5 of this Prospectus.
Neither
the Securities and Exchange Commission nor any state securities commission has
approved or disapproved these securities, or determined if this Prospectus is
truthful or complete. Any representation to the contrary is a
criminal offense.
The
information in this Prospectus is not complete and may be changed. The Company
may not sell these securities until the registration statement filed with the
Securities and Exchange Commission is effective. This Prospectus is not an offer
to sell these securities and it is not the solicitation of an offer to buy these
securities in any state where the offer or sale is not permitted.
GOING
CONCERN
The
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern, which contemplates the realization of its
assets and the liquidation of its liabilities in the normal course of
business. However, the Company has generated no revenues, has
accumulated a loss during its development stage, and currently lacks the capital
to pursue its business plan. This raises substantial doubt about the
Company’s ability to continue as a going concern. The financial
statements do not include any adjustments that might result from this
uncertainty.
The
Company does not plan to use this offering Prospectus before the effective
date.
Subject
to Completion, Dated _________, 2010
2
TABLE
OF CONTENTS
PAGE
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DETERMINATION OF OFFERING PRICE | 17 |
DILUTION OF THE PRICE YOU PAY FOR YOUR SHARES | 17 |
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3
Advanced
Pipe Fitting Technologies, Inc
4790
Caughlin Pkwy, Ste 387
Reno,
NV 89519
775-851-7397
SUMMARY OF PROSPECTUS
You
should read the following summary together with the more detailed business
information, financial statements and related notes that appear elsewhere in
this Prospectus regarding Advanced Pipe Fitting Technologies,
Inc (the “Company”). In this Prospectus, unless the context
otherwise denotes, references to “we,” “us,” “our,” and “APFT” are to the
Company.
A
CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS
This
prospectus contains forward-looking statements, which relate to future events or
our future financial performance. In some cases, you can identify
forward-looking statements by terminology such as “may,” “should,” “expects,”
“plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” or
“continue” or the negative of these terms or other comparable terminology. These
statements are only predictions and involve known and unknown risks,
uncertainties and other factors, including the risks in the section entitled
“Risk Factors,” that may cause our or our industry’s actual results, levels of
activity, performance, or achievements to be materially different from any
future results, levels of activity, performance, or achievements expressed or
implied by these forward-looking statements.
While
these forward-looking statements, and any assumptions upon which they are based,
are made in good faith and reflect our current judgment regarding the direction
of our business, actual results will almost always vary, sometimes materially,
from any estimates, predictions, projections, assumptions or other future
performance suggested herein. Except as required by applicable law, including
the securities laws of the United States, we do not intend to update any of the
forward-looking statements to conform these statements to actual
results.
GENERAL INFORMATION ABOUT OUR COMPANY OUR
COMPANY
We were
incorporated in Nevada August 4th 2009
and our year end is October 31.
OUR
BUSINESS
We are a
start-up stage company. We are a company without revenues; we have minimal
assets and have incurred losses since inception. We will sell and
distribute a series of pipefitting, pressure conduits and coupling products
primarily used in oil and gas transfer, petroleum refinery, and sub-critical,
supercritical power plant projects.
WHERE
YOU CAN FIND US
Our
offices are located at:
Advanced
Pipe Fitting Technologies, Inc
United
States
4790
Caughlin Pkwy, Ste 387
Reno, NV
89519
775-851-7397
China
Ste 810,
NO: 98 Dong San Huan South Road
Chaoyang
District
Beijing,
P.R. China
Tel:
(8610) 5861-1818
4
Advanced Pipe Fitting Technologies, Inc (APFT) will sell a series of pipefitting, pressure conduits and coupling products used in oil and gas transfer, petroleum refinery, and sub-critical, supercritical power plant projects. We will supply a wide range of products from low end plain carbon steel and alloy steel pipefitting to high-grade steel heavy-caliber fittings for P91, P92, X70, X80, X100 pipelines, and special steel fittings including 347H, inconel800, titanium, and zirconium materials.
Our goal
is to become the largest pipefitting supplier for Chinese petroleum refinery,
oil and gas transfer projects and power plants. We hope to build an
integrated and well recognized brand for a full range of pipefitting products.
We will develop a real time product and order matching online database, where
our customer can conveniently source and track their entire pipefitting product
needs, at the same time, we can profit from price arbitrage. In order to build
long term competitive advantages and raise the barrier of entry, we hope to
build a product examining and detecting center and apply for national lab
qualification. Once the qualification has been granted, we will be able to set
up joint research projects with universities and field professionals, and be
involved in the development of national standards.
THE OFFERING
This
prospectus covers the resale by the selling shareholders named in this
prospectus of 600,000 shares of our common stock. The offered shares
were acquired by the selling shareholders in private placement transactions,
which were exempt from the registration requirements of the Securities Act of
1933. The selling shareholders will sell their shares of our common
stock at a maximum of $ 0.25 per share until our common stock is quoted on the
OTC Bulletin Board, or listed for trading or quotation on any other public
market, and thereafter at prevailing market prices or privately negotiated
prices. Our common stock is presently not traded on any market or
securities exchange and we have not applied for listing or quotation on any
public market. Further, there is no assurance that our common stock
will ever trade on any market or securities exchange.
This is
our initial public offering and no public market currently exists for shares of
our common stock. We can offer no assurance that an active trading
market will ever develop for our common stock.
Securities
Being Offered:
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600,000
Shares of common stock, $.0001 par value, at a price of $0.25 per share
held by 40 selling shareholders at $0.25, for which the Company will
receive no financial benefit.
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Offering
Price per Share:
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$0.25
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Offering
Period:
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The
shares are being offered for a period not to exceed 180 days
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Net
Proceeds to Our Company:
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We
will not receive proceeds from the sale of the 600,000 common shares
offered by our selling shareholders.
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Use
of Proceeds:
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No
proceeds to the Company
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Number
of Shares Outstanding
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Before
the Offering:
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10,000,000
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Number
of Shares Outstanding
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After
the Offering:
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10,000,000
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5
SELECTED
SUMMARY FINANCIAL DATA
This
table summarizes our operating and balance sheet data as of the periods
indicated. You should read this summary financial data in conjunction with the
“Plan of Operations” and our audited financial
Balance
Sheet Data:
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As of
October
31, 2009
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(Audited)
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Cash
and Cash equivalents
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$
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55,063
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Total
assets
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55,063
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Total
liabilities
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0
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Stockholders’
Equity
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$
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55,063
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As
of
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Statement of Operations Data:
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October
31, 2009
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(Audited)
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Revenues
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$
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0
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Total
cost and expenses
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2,612
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Net
(loss)
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$
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(2,612)
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Net
(loss) per share
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$
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0
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Weighted
average number of shares
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Outstanding –
basic and diluted
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10,000,000
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RISK FACTORS
RISKS ASSOCIATED WITH OUR COMPANY:
Investment
in the securities offered hereby involves certain risks and is suitable only for
investors of substantial financial means. Prospective investors should carefully
consider the following risk factors in addition to the other information
contained in this Prospectus, before making an investment decision concerning
the common stock.
WE
MAY CONTINUE TO LOSE MONEY, AND IF WE DO NOT ACHIEVE PROFITABILITY, WE MAY NOT
BE ABLE TO CONTINUE OUR BUSINESS.
We have,
in our history, generated no revenues from operations, have incurred substantial
expenses, and have sustained losses. In addition, we expect to
continue to incur significant operating expenses. As a result, we
will need to generate significant revenues to achieve profitability, which may
not occur. Even if we do achieve profitability, we may be unable to
sustain or increase profitability on a quarterly or annual basis in the
future. We expect to have quarter-to-quarter fluctuations in
revenues, expenses, losses, and cash flow, some of which could be
significant. Results of operations will depend upon numerous factors,
some beyond our control, market acceptance of our products, and services and
competition.
THE
COMPANY IS SUBJECT TO THE RISKS INHERENT IN THE CREATION OF A NEW
BUSINESS.
The
Company is subject to substantially all the risks inherent in the creation of a
new business. As a result of its small size and capitalization and limited
operating history, the Company is particularly susceptible to adverse effects of
changing economic conditions and consumer tastes, competition, and other
contingencies or events beyond the control of the Company. It may be more
difficult for the Company to prepare for and respond to these types of risks and
the risks described elsewhere in this Registration Statement than for a company
with an established business and operating cash flow.
WEBSITE
DEVELOPMENT
Currently
our website is being developed. We will setup a B2B (business to
business) website that is powered by an online product database that can
automatically match client's orders with our supplier's
inventory. Since we do not carry inventory, all merchandise will be
shipped directly from our supplier's warehouse to the
client.
6
The
website will further exhibit links to other service providers or marketers we
hope to have entered into strategic alliances with.
Other
than investigating potential technologies in support of our business purpose and
the preparation of our plan of operations, we have had no material business
operations since inception. At present, we have yet to acquire or develop the
necessary technology assets in support of our business plan
The
Internet is a worldwide medium of interconnected electronic and/or computer
networks. Individuals and companies have recently recognized that the
communication capabilities of the Internet provide a medium for not only the
promotion and communication of ideas and concepts, but also for the presentation
and sale of information, goods and services.
WE
DO NOT HAVE ANY SIGNED AGREEMENTS OR CONTRACTS WITH ANY COMPANY AT THIS
TIME.
At this
time, January 18, 2010 we have no contracts or agreements with any suppliers or
customers.
THE
PIPELINE INDUSTRY HAS INHERENT OPERATIONAL RISKS THAT MAY NOT BE ADEQUATELY
COVERED BY INSURANCE.
We can give no assurance that we will be adequately insured against all risks or that our insurers will pay a particular claim. Furthermore, in the future, we may not be able to obtain adequate insurance coverage at reasonable rates for our operations. We may also be subject to calls, or premiums, in amounts based not only on our own claim records but also the claim records of all other members of the protection and indemnity associations through which we may receive indemnity insurance coverage for tort liability. Our insurance policies may also contain deductibles, limitations and exclusions which, although standard in the industry, may nevertheless increase our costs.
ANY
FAILURE TO MAINTAIN ADEQUATE GENERAL LIABILITY, COMMERCIAL, AND SERVICE
LIABILITY INSURANCE COULD SUBJECT US TO SIGNIFICANT LOSSES OF
INCOME.
We do not
currently carry general liability, service liability and commercial insurance,
and therefore, we have no protection against any general, commercial and/or
service liability claims. Any general, commercial and/or service
liability claims will have a material adverse effect on our financial
condition. There can be no assurance that we will be able to obtain
insurance on reasonable terms when we are able to afford it.
THE PLANNED INCREASE IN THE NUMBER OF
CUSTOMERS USING OUR SERVICE MAY MAKE OUR FUTURE RESULTS
UNPREDICTABLE.
Our
future results depend on various factors, including successful selection of new
markets, market acceptance of APFT, consumer recognition of the quality of our
services and products and willingness to pay our prices and general economic
conditions.
OUR
REVENUE GROWTH RATE DEPENDS PRIMARILY ON OUR ABILITY TO EXECUTE OUR BUSINESS
PLAN
We may
not be able to identify and maintain the necessary relationships with our
customers and suppliers. Our ability to execute our business plan also depends
on other factors, including:
1.
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negotiating
representation and marketing agreements with acceptable
terms;
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2.
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hiring
and training
qualified personnel
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3.
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managing
marketing and development costs at affordable
levels;
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4.
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cost
and availability of labor;
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7
A FAILURE TO MANAGE OUR GROWTH
EFFECTIVELY COULD HARM OUR BUSINESS AND OPERATING
RESULTS.
Our plans
call for a significant increase in the growth of China. Financial and management
controls and information systems may be inadequate to support our expansion.
Managing our growth effectively will require us to continue to enhance these
systems, procedures and controls and to hire, train and retain management and
staff. We may not respond quickly enough to the changing demands that our
expansion will impose on our management, employees and existing infrastructure.
We also place a lot of importance on our culture, which we believe will be an
important contributor to our success. As we grow, however, we may have
difficulty maintaining our culture or adapting it sufficiently to meet the needs
of our operations. Our failure to manage our growth effectively could harm our
business and operating results.
OUR QUARTERLY OPERATING RESULTS MAY
FLUCTUATE SIGNIFICANTLY AND COULD FALL BELOW THE EXPECTATIONS OF INVESTORS DUE
TO VARIOUS FACTORS.
Our
quarterly operating results may fluctuate significantly because of various
factors, including:
1.
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the
impact of inclement weather, natural disasters and other
calamities;
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2.
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unseasonably
cold or wet weather conditions;
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3.
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variations
in general economic conditions
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4.
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increases
in infrastructure costs; and
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5.
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the
overall Global economy and world
events
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Because
of these factors, results for any one quarter are not necessarily indicative of
results to be expected for any other quarter or for any year. In the future, our
operating results may fall below the expectations of investors. In that event,
the value of our Common Stock or other securities would likely
decrease.
OUR
REVENUE IS SUBJECT TO VOLATILITY BASED ON THE GLOBAL ECONOMY, IN PARTICULAR
CHINA
World
events and other factors could also cause our revenue to fluctuate from quarter
to quarter.
WE MAY NOT BE ABLE TO RAISE
ADDITIONAL CAPITAL ON ACCEPTABLE TERMS.
Developing
our business may require significant capital in the future. To meet our capital
needs, we expect to rely on our cash flow from operations and potentially,
third-party financing. Third-party financing may not, however, be available on
terms favorable to us, or at all. Our ability to obtain additional funding will
be subject to various factors, including market conditions, our operating
performance, lender sentiment and our ability to incur additional debt in
compliance with other contractual restrictions, such as financial covenants
under any future credit facility. These factors may make the timing, amount,
terms and conditions of additional financings unattractive. Our inability to
raise capital could impede our growth.
WE MAY INCUR COSTS RESULTING FROM
SECURITY RISKS WE MAY FACE IN CONNECTION WITH OUR ELECTRONIC PROCESSING AND
TRANSMISSION OF CONFIDENTIAL CUSTOMER INFORMATION.
We will
rely on commercially available software and other technologies to provide
security for processing and transmission of customer credit card data. Our
systems could be compromised in the future, which could result in the
misappropriation of customer information or the disruption of systems. Either of
those consequences could have a material adverse effect on our reputation and
business or subject us to additional liabilities.
8
WE ARE EXPOSED TO INCREASED COSTS AND
RISKS ASSOCIATED WITH COMPLIANCE WITH CHANGING LAWS, REGULATIONS AND STANDARDS
IN GENERAL, AND SPECIFICALLY WITH INCREASED AND NEW REGULATION OF CORPORATE
GOVERNANCE AND DISCLOSURE STANDARDS.
We expect
to spend an increased amount of management time and external resources to comply
with existing and changing laws, regulations and standards in general, and
specifically relating to corporate governance under the Sarbanes-Oxley Act of
2002. In particular, Section 404 of the Sarbanes-Oxley Act of 2002 requires
management to annually review and evaluate all of our internal control systems,
and file attestations of the effectiveness of these systems by our management
and by our independent auditors. This process may require us to hire additional
personnel and use outside advisory services and result in additional accounting
and legal expenses. If in the future our chief executive officer, chief
financial officer or independent auditors determine that our controls over
financial reporting are not effective as defined under Section 404, investor
perceptions may be adversely affected and could cause a decline in the value of
our stock. If our independent auditors are unable to provide an unqualified
attestation of management’s assessment of our internal control over financial
reporting, or disclaim an ability to issue an attestation, it could result in a
loss of investor confidence in our financial reports, adversely affect our stock
value and our ability to access the capital markets or borrow money. Failure to
comply with other existing and changing laws, regulations and standards could
also adversely affect the Company.
RISKS ASSOCIATED WITH THIS OFFERING
PURCHASERS
IN THIS OFFERING WILL HAVE LIMITED CONTROL OVER DECISION MAKING BECAUSE THE
COMPANY’S CEO AND ITS OFFICERS AND DIRECTORS WILL CONTROL NOT LESS THAN 94% OF
THE COMPANY’S ISSUED AND OUTSTANDING COMMON STOCK.
Presently,
the Company’s CEO and officers and directors beneficially own 9,800,000 (98%)
shares of the outstanding common stock of the Company. Because of such
ownership, investors in this offering will have limited control over matters
requiring approval by APFT shareholders, including the election of
directors. Such concentrated control may also make it
difficult for APFT stockholders to receive a premium for their shares of APFT in
the event the Company enters into transactions which require stockholder
approval. In addition, certain provisions of Nevada State law could
have the effect of making it more difficult or more expensive for a third party
to acquire, or of discouraging a third party from attempting to acquire control
of the Company. For example, Nevada law provides that a majority of the
stockholders is required to remove a director, which may make it more difficult
for a third party to gain control of the Company. This concentration of
ownership limits the power to exercise control by the minority
shareholders.
INVESTORS
MAY LOSE THEIR ENTIRE INVESTMENT IF APFT FAILS TO IMPLEMENT ITS BUSINESS
PLAN.
The
Company expects to face substantial risks, uncertainties, expenses, and
difficulties because it is a development-stage company. APFT was
formed in Nevada on August 4, 2009. The Company has no demonstrable operations
record of substance upon which investors can evaluate the Company’s business and
prospects. APFT prospects must be considered in light of the risks,
uncertainties, expenses and difficulties frequently encountered by companies in
their early stages of development. The Company cannot guarantee that it will be
successful in accomplishing its objectives.
THE
REPORT OF OUR INDEPENDENT AUDITORS INDICATES UNCERTAINTY CONCERNING OUR ABILITY
TO CONTINUE AS A GOING CONCERN AND THIS MAY IMPAIR OUR ABILITY TO RAISE CAPITAL
TO FUND OUR BUSINESS PLAN.
Our
independent auditors have raised substantial doubt about our ability to continue
as a going concern. We cannot assure you that this will not impair
our ability to raise capital on attractive terms. Additionally, we
cannot assure you that we will ever achieve significant revenues and therefore
remain a going concern.
COMPETITORS
WITH MORE RESOURCES MAY FORCE US OUT OF BUSINESS.
We will
compete with many well-established companies. Aggressive pricing by our
competitors or the entrance of new competitors into our markets could reduce our
revenue and profit margins.
9
APFT
MAY NOT BE ABLE TO ATTAIN PROFITABILITY WITHOUT ADDITIONAL FUNDING, WHICH MAY BE
UNAVAILABLE.
The
Company has limited capital resources. To date, the Company has funded its
operations from limited funding and has not generated sufficient cash from
operations to be profitable. Unless the Company begins to generate
sufficient revenues to finance operations as a going concern, the Company may
experience liquidity and solvency problems. Such liquidity and solvency problems
may force the Company to cease operations if additional financing is not
available.
THE
COSTS TO MEET OUR REPORTING AND OTHER REQUIREMENTS AS A PUBLIC COMPANY SUBJECT
TO THE EXCHANGE ACT OF 1934 WILL BE SUBSTANTIAL AND MAY RESULT IN US HAVING
INSUFFICIENT FUNDS TO EXPAND OUR BUSINESS OR EVEN TO MEET ROUTINE BUSINESS
OBLIGATIONS.
If we
become a public entity, subject to the reporting requirements of the Securities
Exchange Act of 1934, we will incur ongoing expenses associated with
professional fees for accounting, legal and a host of other expenses for annual
reports and proxy statements. We estimate that these accounting, legal and other
professional costs could range up to $15,000 per year in the next few years and
will be higher if our business volume and activity increases but lower during
the first years of being public because our overall business volume will be
lower, and we will not yet be subject to the requirements of Section 404 of
the Sarbanes-Oxley Act of 2002.
WE
MAY HAVE DIFFICULTY IN ATTRACTING AND RETAINING MANAGEMENT AND OUTSIDE
INDEPENDENT MEMBERS TO OUR BOARD OF DIRECTORS AS A RESULT OF THEIR CONCERNS
RELATING TO THEIR INCREASED PERSONAL EXPOSURE TO LAWSUITS AND STOCKHOLDER CLAIMS
BY VIRTUE OF HOLDING THESE POSITIONS IN A PUBLICLY-HELD COMPANY.
The
directors and management of publicly-traded corporations are increasingly
concerned with the extent of their personal exposure to lawsuits and stockholder
claims, as well as governmental and creditor claims which may be made against
them, particularly in view of recent changes in laws imposing additional duties,
obligations and liabilities on management and directors. Due to these
perceived risks, directors and management are also becoming increasingly
concerned with the availability of directors and officers’ liability insurance
to pay on a timely basis the costs incurred in defending such
claims. We currently do not carry directors and officers’ liability
insurance. Directors and officers’ liability insurance has recently
become much more expensive and difficult to obtain. If we are unable
to provide directors and officers’ liability insurance at affordable rates or at
all, it may become increasingly more difficult to attract and retain qualified
outside directors to serve on our board of directors.
We may
lose potential independent board members and management candidates to other
companies that have greater directors and officer’s liability insurance to
insure them from liability or to companies that have revenues or have received
greater funding to date, which can offer more lucrative compensation
packages. The fees of directors are also rising in response to their
increased duties, obligations and liabilities as well as increased exposure to
such risks. As a company with a limited operating history and limited
resources, we will have a more difficult time attracting and retaining
management and outside independent directors than a more established company due
to these enhanced duties, obligations and liabilities.
YOU MAY NOT BE ABLE TO SELL YOUR SHARES IN APFT BECAUSE THERE IS NO PUBLIC MARKET FOR THE COMPANY’S STOCK.
There is
currently no established public trading market for our securities and an active
trading market in our securities may not develop or, if developed, may not be
sustained. A market maker is needed to file an application with FINRA on
our behalf so as to be able to quote the shares of our common stock on the Over
the Counter Bulletin Board (“OTC Bulletin Board”) maintained by FINRA.
Commencing upon the effectiveness of our registration statement of which this
Prospectus is a part we will seek out a market maker The OTCBB is not a listing
service or exchange, but is instead a dealer quotation service for subscribing
members. There can be no assurance that the market maker’s
application will be accepted by FINRA, nor can we estimate as to the time period
that the application will require. If for any reason our common stock is
not quoted on the OTC Bulletin Board or a public trading market does not
otherwise develop, purchasers of the shares may have difficulty selling their
common stock should they desire to do so. No market makers have committed
to becoming market makers for our common stock at this time and none may do
so.
10
There is
no public market for the Company’s common stock. Four officers and directors,
currently hold 98% of the APFT issued and outstanding common stock. Therefore,
the current and potential market for APFT common stock is limited. No market is
available for investors in APFT common stock to sell their shares if the Company
does not acquire listing status. The Company cannot guarantee that a meaningful
trading market will develop.
If APFT
stock ever becomes tradable, of which the Company cannot guarantee success the
trading price of APFT common stock could be subject to wide fluctuations in
response to various events or factors, many of which are or will be beyond the
Company’s control. In addition, the stock market may experience extreme price
and volume fluctuations, which, without a direct relationship to the operating
performance, may affect the market price of the Company stock.
ALL
OF APFT ISSUED AND OUTSTANDING COMMON SHARES ARE RESTRICTED UNDER RULE 144 OF
THE SECURITIES ACT, AS AMENDED. WHEN THE RESTRICTION ON THESE SHARES IS LIFTED,
AND THE SHARES ARE SOLD IN THE OPEN MARKET, THE PRICE OF APFT COMMON STOCK COULD
BE ADVERSELY AFFECTED.
All of
the presently outstanding shares of common stock, aggregating 10,000,000 shares
of common stock, are “restricted securities” as defined under Rule 144
promulgated under the Securities Act and may only be sold pursuant to an
effective registration statement or an exemption from registration, if
available. Rule 144, as amended, is an exemption that generally provides that a
person who has satisfied a one year holding period for such restricted
securities may sell, within any three month period (provided the company is
current in its reporting obligations under the Exchange Act), subject to certain
manner of resale provisions, an amount of restricted securities which does not
exceed the greater of 1% of a company’s outstanding common stock or the average
weekly trading volume in such securities during the four calendar weeks prior to
such sale. The Company currently has four shareholders who own 9,800,000
restricted shares or 98% of the outstanding common stock. When these
shares become unrestricted and available for sale, the sale of these shares by
these individuals, whether pursuant to Rule 144 or otherwise, may have an
immediate negative effect upon the price of the Company common stock in any
market that might develop.
IF
WE FAIL TO REMAIN CURRENT ON OUR REPORTING REQUIREMENTS, WE COULD BE REMOVED
FROM THE OTC BULLETIN BOARD, WHICH WOULD LIMIT THE ABILITY OF BROKER-DEALERS TO
SELL OUR SECURITIES AND THE ABILITY OF STOCKHOLDERS TO SELL THEIR SECURITIES IN
THE SECONDARY MARKET.
Companies
trading on the OTC Bulletin Board must be reporting issuers under Section 12 of
the Exchange Act, and must be current in their reports under Section 13 of the
Exchange Act, in order to maintain price quotation privileges on the OTC
Bulletin Board. If we fail to remain current on our reporting
requirements, we could be removed from the OTC Bulletin Board. As a
result, the market liquidity for our securities could be adversely affected by
limiting the ability of broker-dealers to sell our securities and the ability of
stockholders to sell their securities in the secondary market.
This is
our initial registration and there is currently no established public trading
market for our securities and an active trading market in our securities may not
develop or, if developed, may not be sustained. A market maker is needed
to file an application with FINRA on our behalf so as to be able to quote the
shares of our common stock on the OTCBB maintained by FINRA. Commencing upon the
effectiveness of our registration statement of which this Prospectus is a part
we will seek out a market maker. There can be no assurance that the market
maker’s application will be accepted by FINRA, nor can we estimate as to the
time period that the application will require. If for any reason our
common stock is not quoted on the Over the Counter Bulletin Board or a public
trading market does not otherwise develop, purchasers of the shares may have
difficulty selling their common stock should they desire to do so. No
market makers have committed to becoming market makers for our common stock and
none may do so.
11
DIVIDEND
RISK
At
present, we are not in a financial position to pay dividends on our common stock
and future dividends will depend on our profitability. Investors are
advised that until such time the return on our common stock is restricted to an
appreciation in the share price.
OUR
COMMON STOCK IS SUBJECT TO THE “PENNY STOCK” RULES OF THE SECURITIES AND
EXCHANGE COMMISSION, AND THE TRADING MARKET IN OUR COMMON STOCK IS LIMITED,
WHICH MAKES TRANSACTIONS IN OUR STOCK CUMBERSOME AND MAY REDUCE THE INVESTMENT
VALUE OF OUR STOCK.
Our
shares of common stock are “penny stocks” because they are not registered on a
national securities exchange or listed on an automated quotation system
sponsored by a registered national securities association, pursuant to Rule
3a51-1(a) under the Exchange Act. For any transaction involving a
penny stock, unless exempt, the rules require:
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That
a broker or dealer approve a person’s account for transactions in penny
stocks; and
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That
the broker or dealer receives from the investor a written agreement to the
transaction, setting forth the identity and quantity of the penny stock to
be purchased.
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The
broker or dealer must also deliver, prior to any transaction in a penny stock, a
disclosure schedule prescribed by the Securities and Exchange Commission
relating to the penny stock market, which sets forth the basis on which the
broker or dealer made the suitability determination. Additionally,
the broker or dealer must receive a signed, written agreement from the investor
prior to the transaction.
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Generally,
brokers may be less willing to execute transactions in securities subject
to the “penny stock” rules. This may make it more difficult for
investors to dispose of our common stock and cause a decline in the market
value of our stock.
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Disclosure
also has to be made about the risks of investing in penny stocks in both
public offerings and in secondary trading, the commission’s payable to
both the broker-dealer and the registered representative, current
quotations for the securities, and the rights and remedies available to an
investor in cases of fraud in penny stock
transactions. Finally, monthly statements have to be sent
disclosing recent price information for the penny stock held in the
account and information on the limited market in penny
stocks.
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Generally,
brokers may be less willing to execute transactions in securities subject to the
“penny stock” rules. This may make it more difficult for investors to
dispose of our common stock and cause a decline in the market value of our
stock.
THE
MARKET FOR PENNY STOCKS HAS SUFFERED IN RECENT YEARS FROM PATTERNS OF FRAUD AND
ABUSE.
Stockholders
should be aware that, according to SEC Release No. 34-29093, the market for
penny stocks has suffered in recent years from patterns of fraud and
abuse. Such patterns include:
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Control
of the market for the security by one or a few broker-dealers that are
often related to the promoter or
issuer;
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Manipulation
of prices through prearranged matching of purchases and sales and false
and misleading press releases;
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Boiler
room practices involving high-pressure sales tactics and unrealistic price
projections by inexperienced
salespersons;
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Excessive
and undisclosed bid-ask differential and markups by selling
broker-dealers; and
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The
wholesale dumping of the same securities by promoters and broker-dealers
after prices have been manipulated to a desired level, along with the
resulting inevitable collapse of those prices and with consequential
investor losses.
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Our
management is aware of the abuses that have occurred historically in the penny
stock market. Although we do not expect to be in a position to
dictate the behavior of the market or of broker-dealers who participate in the
market, management will strive within the confines of practical limitations to
prevent the described patterns from being established with respect to our
securities. The occurrence of these patterns or practices could
increase the volatility of our share price.
12
SHARES
ELIGIBLE FOR FUTURE SALE BY OUR CURRENT STOCKHOLDERS MAY ADVERSELY AFFECT OUR
STOCK PRICE.
To date,
we have had no trading volume in our common stock. As long as this
condition continues, the sale of a significant number of shares of common stock
at any particular time could be difficult to achieve at the market prices
prevailing immediately before such shares are offered. In addition,
sales of substantial amounts of common stock under Securities and Exchange
Commission Rule 144 or otherwise could adversely affect the prevailing market
price of our common stock and could impair our ability to raise capital at that
time through the sale of our securities.
This is
our initial registration and there is currently no established public trading
market for our securities and an active trading market in our securities may not
develop or, if developed, may not be sustained. A market maker is needed
to file an application with FINRA on our behalf so as to be able to quote the
shares of our common stock on the OTCBB maintained by FINRA commencing upon the
effectiveness of our registration statement of which this Prospectus is a part.
There can be no assurance that the market maker’s application will be
accepted by FINRA, nor can we estimate as to the time period that the
application will require. If for any reason our common stock is not quoted
on the Over the Counter Bulletin Board or a public trading market does not
otherwise develop, purchasers of the shares may have difficulty selling their
common stock should they desire to do so. No market makers have committed
to becoming market makers for our common stock and none may do so.
DESCRIPTION OF OUR BUSINESS
We will
sell and distribute a series of pipefitting, pressure conduits and coupling
products primarily used in oil and gas transfer, petroleum refinery, and
sub-critical, supercritical power plant projects. We hope to benefit from our
suppliers’ unique supply chain setup; we hope to enjoy a long term competitive
advantage via our well managed relationship with these cost
leaders.
We will
sell 90% of our merchandise domestically in the Chinese market; another 10% will
be distributed internationally.
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We
will ONLY sell the original products; and do NOT make any modification in
any way.
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We
will NOT carry regular inventory, we only order from suppliers after
customer ordered from us.
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Although
we sell all products under our brand name, product guaranties will
directly come from our suppliers.
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GENERAL INFORMATION ABOUT OUR COMPANY
We are a
start-up stage company. We are a company without revenues or operations; we have
minimal assets and have incurred losses since inception. We will sell
a series of pipefitting, pressure conduits and coupling products used in oil and
gas transfer, petroleum refinery, and sub-critical, supercritical power plant
projects. We will be able to supply a wide range of products from low end plain
carbon steel and alloy steel pipefitting to high-grade steel heavy-caliber
fittings for P91, P92, X70, X80, X100 pipelines, and special steel fittings
including 347H, inconel800, titanium, and zirconium materials.
Our goal
is to become the largest pipefitting supplier for Chinese petroleum refinery,
oil and gas transfer projects and power plants. We will build an
integrated and well recognized brand for a full range of pipefitting products.
We will develop a real time product and order matching online database, where
our customer can conveniently source and track their entire pipefitting product
needs, at the same time, we can profit from price arbitrage. In order to build
long term competitive advantages and raise barriers of entry, we plan to build a
product examining and detecting center and apply for national lab qualification.
Once the qualification been granted, we will be able to setup joint research
projects with universities and field professionals, and be able to involve in
the development of national standards.
INDUSTRY BACKGROUND
Pipe
fittings are generally used for connecting the bores of two or more pipes or
tubes, connecting a pipe to some other apparatus, and changing the direction of
fluid flow. They are also used for closing a pipe.
13
"The
Chinese pipe fittings market has been growing at a rate of 16-20% per year for
the past 20 years, and it still is under rapid growth and reshaping. The sector
is a competitive Market, where market participants are small informed Buyers and
Sellers of what they consider to be a commodity product. In 2008,
it’s estimated more than 10,000 pipe fitting producers competing in the sector,
produce 160 categories of product types. Lack of big players, and integrated
brands, in both buyers and sellers results in all market participants to need to
set their price equal to marginal cost. "Based on figures from its “10th
five-year plan”, China expects the aggregate industry output of its pipe fitting
industry to reach 100 billion RMB by year 2010. (16 billion USD
equivalent)"*.
*(Reference: All these
numbers come from " 2008-2012 Chinese Pipe Fitting Industry market survey and
investment forecast report" (http://www.51report.com/research/detail/167920265.html
Market
opportunities:
Internal
factor:
Our
biggest market opportunity is the nature of the industry’s current competition
landscape, which is lack of market integration. Upon completion of our
integrated brand development as well as a product examining and detecting Center
with national Lab qualification, we will be able to create some degree of
barrier of entry and differentiate our products. As a result, we will be able to
set certain standards for the industry which will allow us, to set our price
higher than marginal cost.
External
factor:
China is
still under rapid development, hungry for clear energy. China’s natural gas
resources are unevenly distributed, while the major part of the Chinese economy
and population centers are located in the east, most of the country’s natural
gas reserves are in the west. In order to re-distribute its natural gas
resources to population centers, China is currently undertaking large scale
natural gas distribution projects.
Some of
the Major natural gas distribution projects currently under construction
are:
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West
to East natural gas transfer
project.
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Xinjiang
to Shanghai natural gas transfer
project
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Sichuan
to East natural gas transfer
project
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On
November 2007, the Chinese government published the “nuclear power development
plan”, in the next 10 years; China will invest 4000 billion RMB (635 billion USD
equivalents) in nuclear power plant projects. Currently 30% of the world’s
construction of nuclear power plants is in China.
China is
speeding up its urbanization process, but at the same time, China is lacking in
water resources. 400 out of 660 Chinese cities lack a modern water supply and
110 cities have water shortages. China’s huge and still growing population leads
to more scarcity of water resource.
Most of
China’s northern cities lack effective water resources, it’s South to North
water transfer project will build 2000KM of pipe lines to re-distribute it’s
water resources. Pipe fitting products used in water and waste water
treatment distribution projects are also in great demand. Most
of China’s existing water distribution networks are more than 30 years old;
there is a need for upgrades from non-malleable pipeline and fittings to
malleable pipeline and fittings, which are lighter, thinner, stronger, and less
brittle.
PRINCIPAL SERVICES AND THEIR MARKETS
We will
sell a series of pipefitting, pressure conduits and coupling products used in
oil and gas transfer, petroleum refinery, and sub-critical, supercritical power
plant projects. We will supply a wide range of products from low end plain
carbon steel and alloy steel pipefitting to high-grade steel heavy-caliber
fittings for P91, P92, X70, X80, X100 pipelines, and special steel fittings
including 347H, inconel800, titanium, and zirconium materials.
The
principal uses of these products are in gas lines, piping systems of oil field,
oil refineries, chemical production facilities, power plants, pharmaceutical
factory , boilers and industrial piping, water and waste water treatment, heat
distribution, ship production, machinery production and building gas and water
systems.
14
Market
overview:
Most of
the small Chinese pipe fittings producers lack ability to supply a full range of
products and have a limited marketing budget to build brand and manage customer
relationships. Low end products are typically carried and sold via distributors
with single product orders (which the client can only demand a specific
product), High end products are sold via direct sales force of the producer by
project based orders (which the client will be looking for a larger producer who
can supply a range of products for the project).
Our group
of suppliers represents a famous phenomenon in Chinese economy, named by Chinese
economists, called “economic mosaic”; which refers to a large group of producers
big and small, saturated in one small geographic area; they are supply and
demand for each other via both social ties and business relationships to
significantly reduce sourcing, marketing and transaction costs.
We
believe a smarter and optimized business model, well defined with a competitive
strategy, and effective market communication approach will help us to succeed.
We divide our merchandises into two categories:
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Commodity
products, which are normally less technologically advanced; many of our
competitors carrying the same or substitutable products, we compete with
these commodity products on price.
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Differentiated
products, which are normally technologically advanced products that can
only be produced by certain specialized suppliers, we compete
differentiated products on
availability.
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DISTRIBUTION METHODS
Selling
pipe fitting products to business clients is a straight forward process, in
which the client already knows what he is looking for before he comes to us.
However, since there are thousands of pipe fitting products in different sizes,
the client wants to find a one stop supplier who can supply a wide variety of
products, and negotiate for better prices.
To serve
our clients better, we will:
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Setup
a B2B (business to business) website, that is powered by an online product
database, that can automatically matching client's order with our
supplier's inventory.
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Hire
an in-house sales team to manage client relationships and close
sales.
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Since
we do not carry inventory, all merchandise will be shipped directly form
our supplier's warehouse to the
client.
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WEBSITE
MARKETING STRATEGY
We will
spend a significant amount of our resources into brand and website
marketing. Our goal is to promote our website as a "one stop pipe fitting
product supper store for business clients”, our selected marketing vehicles will
include the following:
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Search
engine optimization
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Industry
web portal advertising, promotion and soft
articles.
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Affiliate
and referral programs
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Trade
show
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Trade
journal and magazine advertising
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Sponsorship
to selected industry events
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Direct
mailing campaigns.
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We are
operating in a highly competitive market. We compete with a large number of
companies in China that sell or distribute pipefitting products. We also compete
with “in house” sales departments of larger pipefitting product producers; some
of these competitors can allocate more resources and are significantly larger
than us in term of capital and assets.
15
SOURCES OF AND AVAILABILITY OF SERVICES
We can
supply a wide range of products from low end plain carbon steel and alloy steel
pipefitting to high-grade steel heavy-caliber fittings for P91, P92, X70, X80,
X100 pipelines, and special steel fittings including 347H, inconel800, titanium,
and zirconium materials.
These
products are widely used in oil and gas transfer projects, petroleum refinery
and sub-critical, supercritical power plants.
We will
source our selling goods directly from Yan Shan area in China. Yan Shan area is
an economic mosaic that specializes in producing a full range of pipefitting,
pressure conduits and coupling products.
DEPENDENCE ON ONE OR A FEW MAJOR CUSTOMERS
We
currently do not have any customer or signed any sales contracts with our
potential customers.
PATENTS AND TRADEMARKS
The
Company currently has no registered patents or trademarks.
GOVERNMENT AND INDUSTRY REGULATION
In order
to operate in China, we have to obtain the following certificates of
approval:
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“Establishment
of Enterprises with Foreign Investment in the People’s Republic of China”
from provincial government.
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“Foreign
Exchange Registration Certificate of Foreign-funded Enterprise” from local
branch of Administration of Foreign
Exchange
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“Notice
of record-keeping of the enterprise investment project” from local branch
of Foreign Trade & Economic Cooperation
Bureau
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To the
best of our knowledge, we do not need other special approval.
RESEARCH AND DEVELOPMENT ACTIVITIES
To
further enhance our competitive advantage, and set barriers of entry, we plan to
undertake the following development projects:
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Real-time
online database for product and order
matching
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product
examining and detecting center with national lab
qualification
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ENVIRONMENTAL LAWS
Company
operations currently have no material effect on the environment.
EMPLOYEES AND EMPLOYMENT AGREEMENTS
The
company has two full time employees at this time. There are no employee
agreements in effect
SPECIAL
NOTE REGARDING FORWARD-LOOKING STATEMENTS
This
Prospectus contains forward-looking statements about the Company’s business,
financial condition, and prospects that reflect APFT management’s assumptions
and beliefs based on information currently available. The Company can give no
assurance that the expectations indicated by such forward-looking statements
will be realized. If any of the Company assumptions should prove incorrect, or
if any of the risks and uncertainties underlying such expectations should
materialize, the actual results may differ materially from those indicated by
the forward-looking statements.
16
The key
factors that are not within the Company’s control and that may have a direct
bearing on operating results include, but are not limited to, the Company’s
ability to establish a customer base, managements’ ability to raise capital in
the future, the retention of key employees and changes in the regulation of the
industry in which the Company functions.
There may
be other risks and circumstances that management may be unable to predict to
sustain operations. When used in this Prospectus, words such as, “believes,”
“expects,” “intends,” “plans,” “anticipates,” “estimates” and similar
expressions are intended to identify and qualify forward-looking statements,
although there may be certain forward-looking statements not accompanied by such
expressions.
DETERMINATION OF OFFERING PRICE
The
offering price of the common stock has been arbitrarily determined and bears no
relationship to any objective criterion of value. The price does not bear any
relationship to the Company’s assets, book value, historical earnings, or net
worth. In determining the offering price, management considered such factors as
the prospects, if any, for similar companies, anticipated results of operations,
present financial resources and the likelihood of acceptance of this
offering.
DILUTION OF THE PRICE YOU PAY FOR YOUR SHARES
The
common stock to be sold by the selling security holders is common stock that is
currently issued and outstanding. Accordingly, there will be no dilution of
equity interests to our existing stockholders.
SELLING
SHAREHOLDERS
The
following table sets forth the shares beneficially owned, as
of December 8, 2009 by the selling shareholders prior to the
offering contemplated by this Prospectus, the number of shares each selling
security holder is offering by this Prospectus and the number of shares which
each would own beneficially if all such offered shares are sold.
Beneficial
ownership is determined in accordance with Securities and Exchange Commission
rules. Under these rules, a person is deemed to be a beneficial owner of a
security if that person has or shares voting power, which includes the power to
vote or direct the voting of the security, or investment power, which includes
the power to dispose of, or to direct the disposition of, the security. The
person is also deemed to be a beneficial owner of any security of which that
person has a right to acquire beneficial ownership within 60 days. Under the
Securities and Exchange Commission rules, more than one person may be deemed to
be a beneficial owner of the same securities, and a person may be deemed to be a
beneficial owner of securities as to which he or she may not have any pecuniary
beneficial interest. Except as noted below, each person has sole voting and
investment power.
None of
the selling shareholders is a registered broker-dealer or an affiliate of a
registered broker-dealer. Each of the selling shareholders has acquired his, her
or its shares pursuant to a private placement solely for investment and not with
a view to or for resale or distribution of such securities. The shares were
offered and sold to the selling shareholders at a purchase price of $0.001 to
the four officers and directors and $.25 per share in a private placement to the
remaining selling shareholders pursuant to the exemption from the registration
under the Securities Act provided by section 4(2) of the Securities Act. Four of
the selling shareholders are affiliates or controlled by our affiliates * and
offering their shares under Rule 144 and the 1% Rule.
The
percentages below are calculated based on 10,000,000 shares of our common stock
issued and outstanding. We do not have any outstanding options,
warrants or other securities presently exercisable for or convertible into
shares of our common stock.
17
Name
of Selling Stockholder and Position, Office or Material Relationship with
Company (NA)
|
Common
Shares Owned by the Selling Stockholder2
|
Total
Shares to be Registered Pursuant to this Offering
|
Percentage
of Common Stock Before Offering
|
Number
of Shares Owned by Selling Stockholder After Offering and Percent of Total
Issued and Outstanding1
|
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1
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Yanzhang,
Li, CEO *
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3266000
|
100,000
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32.66%
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3,166,000
|
2
|
Xiusheng,
Xing, CFO *
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3266000
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100,000
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32.66%
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3,166,000
|
3
|
Guoxing,
Liu *
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1634000
|
100,000
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16.34%
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1,534000
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4
|
Qiong,
Xie *
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1634000
|
100,000
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16.34%
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1,534000
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5
|
Ramona
Smith
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25000
|
25000
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0.25%
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0
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6
|
YuJia,
Guo
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5000
|
5000
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.05%
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0
|
7
|
Hongxia,
Liu
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5000
|
5000
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.05%
|
0
|
8
|
Chen,
Chen
|
5000
|
5000
|
.05%
|
0
|
9
|
Paul
Augustine Chinyik, Chang
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5000
|
5000
|
.05%
|
0
|
10
|
Yanqi,
Zhang
|
5000
|
5000
|
.05%
|
0
|
11
|
Ranymond,
Wong
|
5000
|
5000
|
.05%
|
0
|
12
|
Sha,
Xu
|
5000
|
5000
|
.05%
|
0
|
13
|
Tim
Wei Chen, Xu
|
5000
|
5000
|
.05%
|
0
|
14
|
Jian
Ling, Li
|
5000
|
5000
|
.05%
|
0
|
15
|
Wing
Yin, Ho
|
5000
|
5000
|
.05%
|
0
|
16
|
Yan
Pin, Chen
|
5000
|
5000
|
.05%
|
0
|
17
|
Ching-Fang,
yang
|
5000
|
5000
|
.05%
|
0
|
18
|
Tsai
Chien, Ho
|
5000
|
5000
|
.05%
|
0
|
19
|
Su-Fen,
Ho
|
5000
|
5000
|
.05%
|
0
|
20
|
Xia,
Xie
|
5000
|
5000
|
.05%
|
0
|
21
|
Rui
Dong, Kang
|
5000
|
5000
|
.05%
|
0
|
22
|
Jing
Mei, Wang
|
5000
|
5000
|
.05%
|
0
|
23
|
Jiucheng,
Zhang
|
5000
|
5000
|
.05%
|
0
|
24
|
Xiao,
Guo
|
5000
|
5000
|
.05%
|
0
|
25
|
Ankie
Yee Man, Wong
|
5000
|
5000
|
.05%
|
0
|
26
|
Hansheng,
Li
|
5000
|
5000
|
.05%
|
0
|
27
|
Ruixing,
Kang
|
5000
|
5000
|
.05%
|
0
|
28
|
Zhaoyu,
Zhang
|
5000
|
5000
|
.05%
|
0
|
29
|
Pei-Jan,
Liu
|
5000
|
5000
|
.05%
|
0
|
30
|
Cari
Anna Davis, Chan
|
5000
|
5000
|
.05%
|
0
|
31
|
Di,
Xie
|
5000
|
5000
|
.05%
|
0
|
32
|
Zhuang,
Lin
|
5000
|
5000
|
.05%
|
0
|
33
|
Yufei,
Zheng
|
5000
|
5000
|
.05%
|
0
|
34
|
Shiqun,
Lu
|
5000
|
5000
|
.05%
|
0
|
35
|
Li
Fen, Chen
|
5000
|
5000
|
.05%
|
0
|
36
|
Xiaoran,
Guo
|
5000
|
5000
|
.05%
|
0
|
37
|
jing,
Xu
|
5000
|
5000
|
.05%
|
0
|
38
|
Wensen,
Fu
|
5000
|
5000
|
.05%
|
0
|
39
|
Wu,
Chen
|
5000
|
5000
|
.05%
|
0
|
40
|
Zhoulei,
Fang
|
5000
|
5000
|
.05%
|
0
|
|
Total
|
10000000
|
600000
|
100%
|
9,400,000
|
18
1) Assumes
all of the shares of common stock offered are sold and, 10,000,000 common shares
are issued and outstanding.
2) Beneficial
ownership is determined in accordance with SEC rules and generally includes
voting or investment power with respect to securities.
There are
no agreements between the company and any selling shareholder pursuant to which
the shares subject to this registration statement were issued.
To our
knowledge, none of the selling shareholders or their beneficial
owners:
* has
had a material relationship with us other than as a shareholder at any time
within the past three years; or
* has
ever been one of our officers or directors or an officer or director of our
predecessors or affiliates
* are
broker-dealers or affiliated with broker-dealers.
We may
require the selling shareholders to suspend the sales of the securities offered
by this Prospectus upon the occurrence of any event that makes any statement in
this Prospectus, or the related registration statement, untrue in any material
respect or that requires the changing of statements in these documents in order
to make statements in those documents not misleading. We will file a
post-effective amendment to this registration statement to reflect any material
changes to this Prospectus.
PLAN
OF DISTRIBUTION
This
prospectus relates to the registration of 600,000 shares of common stock on
behalf of the selling stockholders. We anticipate applying for
trading of our common stock on the over-the-counter (OTC) Bulletin Board upon
the effectiveness of the registration statement of which this prospectus forms a
part. To have our securities quoted on the OTC Bulletin Board we must: (1) be a
company that reports its current financial information to the Securities and
Exchange Commission, banking regulators or insurance regulators; and (2) has at
least one market maker who completes and files a Form 211 with NASD Regulation,
Inc. The OTC Bulletin Board differs substantially from national and regional
stock exchanges because it (1) operates through communication of bids, offers
and confirmations between broker-dealers, rather than one centralized market or
exchange; and, (2) securities admitted to quotation are offered by one or more
broker-dealers rather than “specialists” which operate in stock exchanges. We
have not yet engaged a market maker to assist us to apply for quotation on the
OTC Bulletin Board and we are not able to determine the length of time that such
application process will take. Such time frame is dependent on comments we
receive, if any, from the NASD regarding our Form 211 application. Upon
effectiveness of this registration we will seek out a market maker.
There is
currently no market for our shares of common stock. There can be no assurance
that a market for our common stock will be established or that, if established,
such market will be sustained. Therefore, purchasers of our shares registered
hereunder may be unable to sell their securities, because there may not be a
public market for our securities. As a result, you may find it more difficult to
dispose of, or obtain accurate quotes of our common stock. Any purchaser of our
securities should be in a financial position to bear the risks of losing their
entire investment.
SALES
BY SELLING SHAREHOLDERS
The
selling shareholders may sell up to 600,000 common shares at $0.25 or prevailing
market prices or privately negotiated prices once our shares of common stock are
quoted on the Over-the-Counter Bulletin Board or listed for trading or quoted on
any other public market.
The
selling shareholders may sell some or all of their common stock in one or more
transactions, including block transactions:
*
|
on
such public markets as the common stock may be
trading;
|
*
|
in
privately negotiated transactions;
or
|
*
|
in
any combination of these methods of
distribution.
|
19
The sales
price to the public may be:
*
|
$0.25
as in this offering
|
*
|
the
market price prevailing at the time of
sale;
|
*
|
a
price related to such prevailing market price;
or
|
*
|
such
other price as the selling shareholders
determine.
|
We are
bearing all costs relating to the registration of the common stock. The selling
shareholders, however, will pay any commissions or other fees payable to brokers
or dealers in connection with any sale of the common stock.
The
selling shareholders must comply with the requirements of the Securities Act and
the Exchange Act in the offer and sale of the common stock. In particular,
during such times as the selling shareholders may be deemed to be engaged in a
distribution of the common stock, and therefore be considered to be an
underwriter, they must comply with applicable laws and may, among other
things:
*
|
not
engage in any stabilization activities in connection with our common
stock;
|
*
|
furnish
each broker or dealer through which common stock may be offered, such
copies of this Prospectus, as amended from time to time, as may be
required by such broker or dealer;
and
|
*
|
not
bid for or purchase any of our securities or attempt to induce any person
to purchase any of our securities other than as permitted under the
Exchange Act.
|
None of
the selling shareholders will engage in any electronic offer, sale or
distribution of the shares. Further, neither we nor any of the selling
shareholders have any arrangements with a third party to host or access our
Prospectus on the Internet.
The
selling shareholders and any underwriters, dealers or agents that participate in
the distribution of our common stock may be deemed to be underwriters, and any
commissions or concessions received by any such underwriters, dealers or agents
may be deemed to be underwriting discounts and commissions under the Securities
Act. Shares may be sold from time to time by the selling shareholders in one or
more transactions at a fixed offering price, which may be changed, or at any
varying prices determined at the time of sale or at negotiated prices. We may
indemnify any underwriter against specific civil liabilities, including
liabilities under the Securities Act.
DESCRIPTION OF SECURITIES
COMMON
STOCK
Our
authorized capital stock consists of 100,000,000 shares of common stock, $.0001
par value per share. The holders of our common stock (i) have equal
ratable rights to dividends from funds legally available therefore, when and if
declared by our Board of Directors; (ii) are entitled to share in all of our
assets available for distribution to holders of common stock upon liquidation,
dissolution or winding up of our affairs; (iii) do not have preemptive,
subscription or conversion rights and there are no redemption or sinking fund
provisions or rights; and (iv) are entitled to one non-cumulative vote per share
on all matters on which stockholders may vote.
SECURITY
HOLDERS
As of
January 18, 2010, there were 10,000,000 common shares issued and outstanding,
which were held by 40 stockholders of record.
NON-CUMULATIVE
VOTING
Holders
of shares of our common stock do not have cumulative voting rights, which means
that the holders of more than 50% of the outstanding shares, voting for the
election of directors, can elect all of the directors to be elected, if they so
choose, and, in such event, the holders of the remaining shares will not be able
to elect any of our directors.
20
DIVIDEND
POLICY
The
Company does not anticipate paying dividends on the Common Stock at any time in
the foreseeable future. The Company’s Board of Directors currently
plans to retain earnings for the development and expansion of the Company’s
business. Any future determination as to the payment of dividends
will be at the discretion of the Board of Directors of the Company and will
depend on a number of factors including future earnings, capital requirements,
financial conditions and such other factors as the Board of Directors may deem
relevant.
INTERESTS
OF NAMED EXPERTS AND COUNSEL
None of
the below described experts or counsel have been hired on a contingent basis and
none of them will receive a direct or indirect interest in the
Company.
Our
audited financial statements for the period ended October 31, 2009 included in
this Prospectus have been audited by the firm of Maddox Unger Silberstein,
PLLC. We include the financial statements in reliance on their
report, given upon their authority as experts in accounting and
auditing.
The Law
Offices of Novi & Wilkin has passed upon the validity of the shares being
offered and certain other legal matters and is representing us in connection
with this offering.
STATUS
OF ANY PUBLICLY ANNOUNCED NEW SERVICES
The
Company currently has made no public announcements regarding its
services.
EMPLOYEES
AND EMPLOYMENT AGREEMENTS
There are
two full time employees at this time. There are no employment agreements in
effect
DESCRIPTION OF PROPERTY
The
Company currently uses office space donated by Yanzhang Li, CEO of the company
at no cost to APFT
LEGAL PROCEEDINGS
There are
no lawsuits filed or pending against the Company by others, and no lawsuits
filed or pending against others by the Company. There are no
contingencies, sureties or guaranties in existence.
MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER
MATTERS
As of
January 18, 2010, the Company has a total of 40 shareholders. No
public market currently exists for shares of our common
stock. Concurrently with the completion of this offering, we will be
applying to have our common stock listed for quotation on the Over-the-Counter
Bulletin Board.
STOCK TRANSFER
AGENT
None at
this time
REPORTS
We are
subject to certain reporting requirements and will furnish annual financial
reports to our stockholders, certified by our independent accountants, and will
furnish un-audited quarterly financial reports in our quarterly reports filed
electronically with the SEC. All reports and information filed by us
can be found at the SEC website, www.sec.gov.
Our
fiscal year end is October 31. We intend to provide financial
statements audited by an Independent Registered Accounting Firm (PCOAB) to our
shareholders in our annual reports. The audited financial statement
at October 31, 2009, immediately follows.
21
ADVANCED
PIPE FITTING TECHNOLOGIES, INC.
(A
DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS
OCTOBER
31, 2009
22
ADVANCED
PIPE FITTING TECHNOLOGIES, INC.
(A DEVELOPMENT STAGE COMPANY)
TABLE
OF CONTENTS
OCTOBER
31, 2009
F-1
|
|
F-2
|
|
F-3
|
|
F-4
|
|
F-5
|
|
F-6
- F-9
|
23
Maddox
Ungar Silberstein, PLLC CPAs and Business
Advisors
Phone
(248) 203-0080
Fax (248)
281-0940
30600
Telegraph Road, Suite 2175
Bingham
Farms, MI 48025-4586
www.maddoxungar.com
Report of
Independent Registered Public Accounting Firm
To the
Board of Directors of
Advanced
Pipe Fitting Technologies, Inc.
Reno,
Nevada
We have
audited the accompanying balance sheet of Advanced Pipe Fitting Technologies,
Inc. (the “Company”) as of October 31, 2009, and the related statements of
operations, stockholders’ equity, and cash flows for the period from August 4,
2009 (Date of Inception) through October 31, 2009. 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
audit.
We
conducted our audit 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 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 also includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides 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 Advanced Pipe Fitting Technologies,
Inc. as of October 31, 2009 and the results of its operations and its
cash flows for the period from August 4, 2009 (Date of Inception) through
October 31, 2009 in conformity with accounting principles generally accepted in
the United States of America.
The
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern. As discussed in Note 2 to the
financial statements, the Company has limited working capital, has not yet
received revenue from sales of products or services, and has incurred losses
from operations. These factors raise substantial doubt about the
Company’s ability to continue as a going concern. Management’s plans
with regard to these matters are described in Note 2. The accompanying financial
statements do not include any adjustments that might result from the outcome of
this uncertainty.
/s/ Maddox Ungar
Silberstein, PLLC
Bingham
Farms, Michigan
January
8, 2010
F-1
24
ADVANCED
PIPE FITTING TECHNOLOGIES, INC.
(A
DEVELOPMENT STAGE COMPANY)
BALANCE SHEET
AS
OF OCTOBER 31, 2009
October
31, 2009
|
||||
ASSETS
|
||||
Current
assets
|
||||
Cash
and cash equivalents
|
$ | 55,063 | ||
TOTAL
ASSETS
|
$ | 55,063 | ||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||
LIABILITIES
|
||||
Current
Liabilities
|
||||
Accrued
expenses
|
$ | 2,600 | ||
Due
to shareholder
|
1,500 | |||
Commitments
and contingencies
|
0 | |||
Total
Liabilities
|
4,100 | |||
STOCKHOLDERS’
EQUITY
|
||||
Common
stock, $.0001 par value, 100,000,000 shares authorized, 10,000,000 shares
issued and outstanding
|
1,000 | |||
Additional
paid in capital
|
52,575 | |||
Deficit
accumulated during the development stage
|
(2,612 | ) | ||
Total
Stockholders’ Equity
|
50,963 | |||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$ | 55,063 |
See
accompanying notes to financial statements.
F-2
25
ADVANCED
PIPE FITTING TECHNOLOGIES, INC.
(A
DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
FOR
THE PERIOD FROM AUGUST 4, 2009 (INCEPTION) TO OCTOBER 31, 2009
Period
from August 4, 2009 (Inception) to October 31, 2009
|
||||
REVENUES
|
$ | 0 | ||
OPERATING
EXPENSES
|
||||
Professional
fees
|
2,600 | |||
General
and administrative
|
12 | |||
TOTAL
OPERATING EXPENSES
|
2,612 | |||
NET
LOSS BEFORE INCOME TAXES
|
(2,612 | ) | ||
PROVISION
FOR INCOME TAXES
|
0 | |||
NET
LOSS
|
$ | (2,612 | ) | |
NET
LOSS PER SHARE: BASIC AND DILUTED
|
$ | (0.00 | ) | |
WEIGHTED
AVERAGE SHARES OUTSTANDING: BASIC AND DILUTED
|
10,000,000 |
See
accompanying notes to financial statements.
F-3
26
ADVANCED
PIPE FITTING TECHNOLOGIES, INC.
(A
DEVELOPMENT STAGE COMPANY)
STATEMENT OF STOCKHOLDERS’ EQUITY
FOR
THE PERIOD FROM AUGUST 4, 2009 (INCEPTION) TO OCTOBER 31, 2009
Common
stock
|
Additional
paid-in
|
Deficit
accumulated during the development
|
||||||||||||||||||
Shares
|
Amount
|
capital
|
stage
|
Total
|
||||||||||||||||
Inception,
August 4, 2009
|
- | $ | - | $ | - | $ | - | $ | - | |||||||||||
Issuance
of common stock for cash to founders
|
9,800,000 | 980 | 8,820 | - | 9,800 | |||||||||||||||
Common
stock issued for $.001 per share
|
25,000 | 2 | 23 | - | 25 | |||||||||||||||
Common
stock issued for $.25 per share
|
175,000 | 18 | 43,732 | - | 43,750 | |||||||||||||||
Net
loss for the period ended October 31, 2009
|
- | - | - | (2,612 | ) | (2,612 | ) | |||||||||||||
Balance,
October 31, 2009
|
10,000,000 | $ | 1,000 | $ | 52,575 | $ | (2,612 | ) | $ | 50,963 |
See
accompanying notes to financial statements.
F-4
27
ADVANCED
PIPE FITTING TECHNOLOGIES, INC.
(A
DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
FOR
THE PERIOD FROM AUGUST 4, 2009 (INCEPTION) TO OCTOBER 31, 2009
Period
from August 4, 2009 (Inception) to October 31, 2009
|
||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||
Net
loss for the period
|
$ | (2,612 | ) | |
Changes
in assets and liabilities:
|
||||
Increase
in accrued expenses
|
2,600 | |||
Increase
in due to shareholder
|
1,500 | |||
CASH
FLOWS USED IN OPERATING ACTIVITIES
|
1,488 | |||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||
Proceeds
from sale of common stock
|
53,575 | |||
CASH
FLOWS PROVIDED BY FINANCING ACTIVITIES
|
53,575 | |||
NET
INCREASE IN CASH
|
55,063 | |||
Cash,
beginning of period
|
0 | |||
Cash,
end of period
|
$ | 55,063 | ||
SUPPLEMENTAL
CASH FLOW INFORMATION:
|
||||
Interest
paid
|
$ | 0 | ||
Income
taxes paid
|
$ | 0 |
See
accompanying notes to financial statements.
F-5
28
ADVANCED
PIPE FITTING TECHNOLOGIES, INC.
(A
DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
OCTOBER
31, 2009
NOTE
1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Nature of
Business
Advanced
Pipe Fitting Technologies, Inc. (the “Company”) was incorporated in the State of
Nevada on August 4, 2009. The Company plans to sell a series of pipefitting,
pressure conduits and coupling products used in oil and gas transfer, petroleum
refinery, and sub-critical, supercritical power plant projects.
Development Stage
Company
The
accompanying financial statements have been prepared in accordance with
generally accepted accounting principles related to development stage companies.
A development-stage company is one in which planned principal operations have
not commenced or if its operations have commenced, there has been no significant
revenues there from.
Use of
Estimates
The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the balance sheet. Actual results could
differ from those estimates.
Basic Loss Per
Share
Basic
loss per share has been calculated based on the weighted average number of
shares of common stock outstanding during the period.
Comprehensive
Income
The
Company has established standards for reporting and display of comprehensive
income, its components and accumulated balances. When applicable, the
Company would disclose this information on its Statement of Stockholders’
Equity. Comprehensive income comprises equity except those resulting
from investments by owners and distributions to owners. The Company has not had
any significant transactions that are required to be reported in other
comprehensive income.
Income
Tax
Deferred
income taxes reflect the net effect of (a) temporary difference between carrying
amounts of assets and liabilities for financial purposes and the amounts used
for income tax reporting purposes, and (b) net operating loss carry-forwards. No
net provision for refundable Federal income tax has been made in the
accompanying statement of loss because no recoverable taxes were paid
previously. Similarly, no deferred tax asset attributable to the net operating
loss carry-forward has been recognized, as it is not deemed likely to be
realized.
Fair Value of Financial
Instruments
The
Company’s financial instruments consist of cash and cash equivalents, acrrued
expenses, and an amount due to shareholder. The carrying amount of these
financial instruments approximates fair value due either to length of maturity
or interest rates that approximate prevailing market rates unless otherwise
disclosed in these financial statements.
F-6
29
ADVANCED
PIPE FITTING TECHNOLOGIES, INC.
(A
DEVELOPMENT STAGE COMPANY)
NOTES
TO THE FINANCIAL STATEMENTS
OCTOBER
31, 2009
NOTE
1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Accounting
Basis
The basis
is accounting principles generally accepted in the United States of
America. The Company has adopted an October 31 fiscal year
end.
Cash and Cash
Equivalents
The
Company considers all highly liquid investments with the original maturities of
three months or less to be cash equivalents. At October 31, 2009 an
officer had not yet deposited into the Company’s bank account amounts received
from shareholders for common stock – these amounts are also classified as cash
and cash equivalents.
Stock-based
Compensation.
For the
period ended October 31, 2009, the Company has not issued any share-based
payments to its employees. Under the modified prospective method the
Company uses, stock compensation expense includes compensation expense for all
stock-based compensation awards granted, based on the grant-date estimated fair
value.
Recent Accounting
Pronouncements
The
Company does not expect the adoption of recently issued accounting
pronouncements to have a significant impact on the Company’s results of
operations, financial position or cash flow.
NOTE
2 - GOING CONCERN
The
accompanying financial statements have been prepared in conformity with
generally accepted accounting principle, which contemplate continuation of the
Company as a going concern. However, the Company has no revenues as
of October 31, 2009. The Company currently has limited working
capital, and has not completed its efforts to establish a stabilized source of
revenues sufficient to cover operating costs over an extended period of
time.
Management
anticipates that the Company will be dependent, for the near future, on
additional investment capital to fund operating expenses The Company intends to
position itself so that it may be able to raise additional funds through the
capital markets. In light of management’s efforts, there are no assurances that
the Company will be successful in this or any of its endeavors or become
financially viable and continue as a going concern.
NOTE
3 – ACCRUED EXPENSES
Accrued
expenses at October 31, 2009 consisted of amounts owed to the Company’s outside
independent auditors for services rendered for periods reported on in these
financial statements.
F-7
30
ADVANCED
PIPE FITTING TECHNOLOGIES, INC.
(A
DEVELOPMENT STAGE COMPANY)
NOTES
TO THE FINANCIAL STATEMENTS
OCTOBER
31, 2009
NOTE
4 – DUE TO SHAREHOLDER
The
Company received a loan from a shareholder to fund their bank
account. The loan is unsecured, interest free and due on
demand. The balance of the loan was $1,500 as of October 31,
2009.
NOTE
5 – INCOME TAXES
The
provision for Federal income tax consists of the following:
October
31, 2009
|
||||
Refundable
Federal income tax attributable to:
|
||||
Current
Operations
|
$ | 888 | ||
Less:
valuation allowance
|
(888 | ) | ||
Net
provision for Federal income taxes
|
$ | - |
The
cumulative tax effect at the expected rate of 34% of significant items
comprising our net deferred tax amount is as follows:
October
31, 2009
|
||||
Deferred
tax asset attributable to:
|
||||
Net
operating loss carryover
|
$ | 888 | ||
Less:
valuation allowance
|
(888 | ) | ||
Net
deferred tax asset
|
$ | - |
At
October 31, 2009, the Company had an unused net operating loss carryover
approximating $2,600 that is available to offset future taxable income; it
expires beginning in 2029.
NOTE
6 – COMMON STOCK
On August
4, 2009, the Company issued 9,800,000 shares to its founders for cash totaling
$9,800. Also on August 4, 2009, an additional 200,000 shares were
sold for cash totaling $43,775.
As of
October 31, 2009, a total of 10,000,000 shares were issued and
outstanding.
F-8
31
ADVANCED
PIPE FITTING TECHNOLOGIES, INC.
(A
DEVELOPMENT STAGE COMPANY)
NOTES
TO THE FINANCIAL STATEMENTS
OCTOBER
31, 2009
NOTE
7– COMMITMENTS AND CONTINGENCIES
The
Company neither owns nor leases any real or personal property. An officer has
provided office services without charge. There is no obligation for
the officer to continue this arrangement. Such costs are immaterial
to the financial statements and accordingly are not reflected
herein. The officers and directors are involved in other business
activities and most likely will become involved in other business activities in
the future.
A
shareholder has paid certain expenditures on behalf of the Company that will
only be due back to the shareholder upon successful listing of the Company on
the OTCBB. Until that occurs the Company does not owe the funds to
the shareholder. In the event that the Company does not become listed
on the OTCBB, nothing will be due back to the shareholder.
As of
October 31, 2009, the expenditures were as follows.
Incorporation
fees
|
$ | 1,500 | ||
Listing
service fees
|
25,000 | |||
Accounting
fees
|
3,500 | |||
Transfer
agent fees
|
375 | |||
Total
|
$ | 30,375 |
NOTE
8 – SUBSEQUENT EVENTS
The
Company has analyzed its operations subsequent to October 31, 2009 and has
determined that it does not have any material subsequent events to disclose in
these financial statements.
F-9
32
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
You
should read this section in conjunction with our financial statements and the
related notes included in this Prospectus. Some of the information
contained in this section or set forth elsewhere in this Prospectus, including
information with respect to our plans and strategies for our business,
statements regarding the industry outlook, our expectations regarding the future
performance of our business, and the other non-historical statements contained
herein are forward-looking statements.
OVERVIEW/BUSINESS
OF ISSUER/ PLAN OF OPERATION
We sell
and distribute a series of pipefitting, pressure conduits and coupling products
primarily used in oil and gas transfer, petroleum refinery, and sub-critical,
supercritical power plant projects. We hope to benefit from our suppliers’
unique supply chain setup; we hope to enjoy a long term competitive advantage
via our well managed relationship with these cost leaders.
We will
sell 90% of our merchandise domestically in the Chinese market; another 10% will
be distributed internationally.
To get a
clear understanding of our business, you can think of us as a commodity price
arbitrage trader or broker with the following characteristics:
l
|
We
profit from price arbitrage.
|
l
|
We
will ONLY sell the original products; and do NOT make any modification in
any way.
|
l
|
We
will NOT carry regular inventory, we only order from suppliers after
customer ordered from us.
|
l
|
Although
we sell all products under our brand name, product guaranties will
directly come from our suppliers.
|
GENERAL
INFORMATION ABOUT OUR COMPANY
We are a
start-up stage company. We are a company without revenues or operations; we have
minimal assets and have incurred losses since inception. We sell a
series of pipefitting, pressure conduits and coupling products used in oil and
gas transfer, petroleum refinery, and sub-critical, supercritical power plant
projects. We can supply a wide range of products from low end plain carbon steel
and alloy steel pipefitting to high-grade steel heavy-caliber fittings for P91,
P92, X70, X80, X100 pipelines, and special steel fittings including 347H,
inconel800, titanium, and zirconium materials.
Our goal
is to become the largest pipefitting supplier for Chinese petroleum refinery,
oil and gas transfer projects and power plants. We will build an
integrated and well recognized brand for a full range of pipefitting products.
We will develop a real time product and order matching online database, where
our customer can conveniently source and track their entire pipefitting product
needs, at the same time, we can profit from price arbitrage. In order to build
long term competitive advantages and raise barriers of entry, we plan to build a
product examining and detecting center and apply for national lab qualification.
Once the qualification been granted, we will be able to setup joint research
projects with universities and field professionals, and be able to involve in
the development of national standards.
INDUSTRY
BACKGROUND
Pipe
fittings are generally used for connecting the bores of two or more pipes or
tubes, connecting a pipe to some other apparatus, and changing the direction of
fluid flow. They are also used for closing a pipe.
33
"The
Chinese pipe fittings market has been growing at a rate of 16-20% per year for
the past 20 years, and it still is under rapid growth and reshaping. The sector
is a competitive Market, where market participants are small informed Buyers and
Sellers of what they consider to be a commodity product. In 2008,
it’s estimated more than 10,000 pipe fitting producers competing in the sector,
produce 160 categories of product types. Lack of big players, and integrated
brands, in both buyers and sellers results in all market participants to need to
set their price equal to marginal cost. "Based on figures from its “10th
five-year plan”, China expects the aggregate industry output of its pipe fitting
industry to reach 100 billion RMB by year 2010. (16 billion USD
equivalent)"*.
*reference:
All these numbers come from " 2008-2012 Chinese Pipe Fitting Industry market
survey and investment forecast report" (http://www.51report.com/research/detail/167920265.html
Market
opportunities:
Internal
factor:
Our
biggest market opportunity is the nature of the industry’s current competition
landscape, which is lack of market integration. Upon completion of our
integrated brand development as well as a product examining and detecting Center
with national Lab qualification, we will be able to create some degree of
barrier of entry and differentiate our products. As a result, we will be able to
set certain standards for the industry which will allow us, to set our price
higher than marginal cost.
External
factor:
China is
still under rapid development, hungry for clear energy. China’s natural gas
resources are unevenly distributed, while the major part of the Chinese economy
and population centers are located in the east, most of the country’s natural
gas reserves are in the west. In order to re-distribute its natural gas
resources to population centers, China is currently undertaking large scale
natural gas distribution projects.
Some of
the Major natural gas distribution projects currently under construction
are:
l
|
West
to East natural gas transfer
project.
|
l
|
Xinjiang
to Shanghai natural gas transfer
project
|
l
|
Sichuan
to East natural gas transfer
project
|
On
November 2007, the Chinese government published the “nuclear power development
plan”, in the next 10 years; China will invest 4000 billion RMB (635 billion USD
equivalents) in nuclear power plant projects. Currently 30% of the world’s
construction of nuclear power plants is in China.
China is
speeding up its urbanization process, but at the same time, China is lacking in
water resources. 400 out of 660 Chinese cities lack a modern water supply and
110 cities have water shortages. China’s huge and still growing population leads
to more scarcity of water resource.
Most of
China’s northern cities lack effective water resources, it’s South to North
water transfer project will build 2000KM of pipe lines to re-distribute it’s
water resources. Pipe fitting products used in water and waste water
treatment distribution projects are also in great demand. Most
of China’s existing water distribution networks are more than 30 years old;
there is a need for upgrades from non-malleable pipeline and fittings to
malleable pipeline and fittings, which are lighter, thinner, stronger, and less
brittle.
RESULTS
OF OPERATIONS FOR THE PERIOD ENDED AUGUST 31, 2009
FOR
THE PERIOD ENDED October 31, 2009 we had no revenues and anticipated
expenses of $60,000 for this registration process.
LIQUIDITY
We have
cash assets at October 31 2009 of $55,063. We will be reliant upon shareholder
loans, private placements or public offerings of equity to fund any kind of
operations. We have secured no sources of loans. We had no cash
flow or revenues during the year ended October 31, 2009.
34
SHORT
TERM
On a
short-term basis, we have generated no revenues to cover
operations. However, we will have insufficient revenue to satisfy
current and recurring liabilities as we continue to build the business. For
short term needs we will be dependent on receipt, if any, of public offering or
private placement proceeds.
Our assets consist of a checking account with a balance of $55,063.00 as of October 31 2009
The
following table sets forth an estimate of the costs and expenses payable by the
registrant in connection with the issuance and distribution of the common stock
being registered.
SEC
registration fee
|
$ | 140 | ||
Blue
Sky Expense
|
260 | |||
Legal
fees and expenses
|
50,000 | |||
Accountants’
fees and expenses
|
9,600 | |||
|
||||
Total
|
$ | 60,000 |
All
amounts except the SEC registration fee are estimated. All of the
expenses set forth above are being paid by the Company.
CAPITAL
RESOURCES
We have
only common stock as our capital resource.
As we
continue to build markets for APFT services and programs, substantial capital
will be needed to pay for sales and marketing, website development, equipment
and service, plus usual start up and normal operating costs.
NEED
FOR ADDITIONAL FINANCING
We do not
have capital sufficient to meet our expected cash requirements; therefore, we
will have to seek loans or equity placements.
No
commitments to provide additional funds have been made by our management or
other stockholders. Accordingly, there can be no assurance that any
additional funds will be available to us to allow it to cover our expenses as
they may be incurred.
We will
need additional capital to support our proposed future
development. We have no revenues at this time. We have no
committed source for additional funding. No representation is made
that any funds will be available when needed. In the event funds
cannot be raised when needed, we may not be able to carry out our business plan,
may never achieve sales or income, and could fail in business as a result of
these uncertainties.
LIMITED
FINANCING
We
may borrow money to finance our future operations.
Any such borrowing will increase the risk of loss to the investor in the event
we are unsuccessful in repaying such loans.
We may
issue additional shares to finance our future operations, although the Company
does not currently contemplate doing so. Any such issuance will reduce the
control of previous investors and may result in substantial additional dilution
to investors purchasing shares from this offering.
OFF-BALANCE
SHEET ARRANGEMENTS
The
Company maintains no off-balance sheet arrangements.
35
GOING
CONCERN
The
accompanying financial statements have been prepared assuming that the Company
will continue as a going concern, which contemplates the realization of its
assets and the liquidation of its liabilities in the normal course of
business. However, the Company has no revenues and is in its
development stage, and currently lacks the capital to pursue its business
plan. This raises substantial doubt about the Company’s ability to
continue as a going concern. The financial statements do not include
any adjustments that might result from this uncertainty.
DESCRIBE
ANY UNUSUAL OR INFREQUENT EVENTS OR TRANSACTIONS OR ANY SIGNIFICANT ECONOMIC
CHANGES THAT MATERIALLY AFFECTED THE AMOUNT OF REPORTED INCOME FROM CONTINUING
OPERATIONS AND, IN EACH CASE, INDICATE THE EXTENT TO WHICH INCOME WAS SO
AFFECTED. IN ADDITION, DESCRIBE ANY OTHER SIGNIFICANT COMPONENTS OF REVENUES OR
EXPENSES THAT, IN THE REGISTRANT'S JUDGMENT, SHOULD BE DESCRIBED IN ORDER TO
UNDERSTAND THE REGISTRANT'S RESULTS OF OPERATIONS.
We have
yet to initiate operations and know of no unusual or infrequent events or
transactions or any significant economic changes that would materially affected
the amount of reported income from future operations
DESCRIBE
ANY KNOWN TRENDS OR UNCERTAINTIES THAT HAVE HAD OR THAT THE REGISTRANT
REASONABLY EXPECTS WILL HAVE A MATERIAL FAVORABLE OR UNFAVORABLE IMPACT ON NET
SALES OR REVENUES OR INCOME FROM CONTINUING OPERATIONS.
At this
time we know of no specific trends or uncertainties that would materially impact
our current business plan.
IF
THE REGISTRANT KNOWS OF EVENTS THAT WILL CAUSE A MATERIAL CHANGE IN THE
RELATIONSHIP BETWEEN COSTS AND REVENUES (SUCH AS KNOWN FUTURE INCREASES IN COSTS
OF LABOR OR MATERIALS OR PRICE INCREASES OR INVENTORY ADJUSTMENTS), THE CHANGE
IN THE RELATIONSHIP SHALL BE DISCLOSED.
At this
time we know of no specific events or uncertainties that would materially impact
our current business plan, we have had no past or current
operations.
TO
THE EXTENT THAT THE FINANCIAL STATEMENTS DISCLOSE MATERIAL INCREASES IN NET
SALES OR REVENUES, PROVIDE A NARRATIVE DISCUSSION OF THE EXTENT TO WHICH SUCH
INCREASES ARE ATTRIBUTABLE TO INCREASES IN PRICES OR TO INCREASES IN THE VOLUME
OR AMOUNT OF GOODS OR SERVICES BEING SOLD OR TO THE INTRODUCTION OF NEW SERVICES
OR SERVICES.
There
have been no material changes in net sales or revenues.
FOR
THE TWO MOST RECENT FISCAL YEARS OF THE REGISTRANT, OR FOR THOSE FISCAL YEARS IN
WHICH THE REGISTRANT HAS BEEN ENGAGED IN BUSINESS, WHICHEVER PERIOD IS SHORTEST,
DISCUSS THE IMPACT OF INFLATION AND CHANGING PRICES ON THE REGISTRANT'S NET
SALES AND REVENUES AND ON INCOME FROM CONTINUING OPERATIONS.
The
Company is a start up and has had no operations. However, one can
only assume as the company grows it would need to make necessary adjustments to
higher prices and future market conditions as would all of its competitors to
stay competitive in the market place.
36
CRITICAL
ACCOUNTING POLICIES
BASIS OF
ACCOUNTING
The
statements were prepared following generally accepted accounting principles of
the United States of America consistently applied.
BASIC
EARNINGS PER SHARE
The basic
earnings (loss) per share is calculated by dividing the Company’s net income
available to common shareholders by the weighted average number of common shares
during the year. The diluted earnings (loss) per share is calculated by dividing
the Company’s net income (loss) available to common shareholders by the diluted
weighted average number of shares outstanding during the year. The diluted
weighted average number of shares outstanding is the basic weighted number of
shares adjusted for any potentially dilutive debt or equity.
CASH
EQUIVALENTS
The
Company considers all highly liquid investments purchased with an original
maturity of three months or less to be cash equivalents.
DIVIDENDS
The
Company has not adopted any policy regarding payment of dividends. No dividends
have been paid.
USE OF
ESTIMATES AND ASSUMPTIONS
The
preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses during
the reporting period. Actual results could differ from those
estimates.
REVENUE
AND COST RECOGNITION
We
recognize revenue at the time the services and products are paid
for. We follow EITF Issue 00-10, “Accounting for Shipping and
Handling Fees and Costs” (Issue 00-10). Issue 00-10 requires that all amounts
billed to customers related to shipping and handling should be classified as
revenues. Our service costs include amounts for shipping and handling,
therefore, we charge our customers shipping and handling fees at the time the
services are shipped or when services are performed. The cost of shipping
services to the customer is recognized at the time the services are shipped to
the customer and our policy is to classify them as shipping expenses. The cost
of shipping services to the customer is classified as shipping
expense.
Staff
Accounting Bulletin No. 101, Revenue Recognition in Financial Statements (SAB
101) and Staff Accounting Bulletin No. 104, Revenue Recognition, corrected copy
(SAB 104) address certain criteria for revenue recognition. SAB 101 and SAB 104
outline the criteria that must be met to recognize revenue and provides guidance
for disclosures related to revenue recognition policies. Our revenue recognition
policies comply with the guidance contained in SABs 101 and 104.
INCOME
TAXES
At
October 31, 2009, the Company had no income.
NEW
ACCOUNTING PRONOUNCEMENTS
Below is
a listing of the most recent Statement of Financial Accounting Standards (SFAS)
SFAS 155, 157, and 158 and their effect on the Company.
37
Statement
No. 158, "Employers' Accounting for Defined Benefit Pension and Other
Postretirement Plans"-an amendment of FASB Statements No. 87, 88, 106, and 123R.
This Statement improves financial reporting by requiring an employer to
recognize the over funded or under funded status of a defined benefit
postretirement plan (other than a multiemployer plan) as an asset or liability
in its statement of financial position and to recognize changes in that funded
status in the year in which the changes occur through comprehensive income of a
business entity or changes in unrestricted net assets of a not-for-profit
organization.
Statement
No. 157, "Fair Value Measurements". This Statement defines fair value,
establishes a framework for measuring fair value in generally accepted
accounting principles (GAAP), and expands disclosures about fair value
measurements. This Statement applies under other accounting pronouncements that
require or permit fair value measurements.
Statement
No. 155, Accounting for Certain Hybrid Financial Instruments-an amendment of
FASB Statement No. 133 and 140. This Statement amends FASB Statements No.
133, Accounting for Derivative
Instruments and Hedging Activities , and No. 140, Accounting for Transfers
and Servicing of Financial Assets and Extinguishments of Liabilities
.
The
adoption of these new Statements is not expected to have a material effect on
the Company’s current financial position, results or operations, or cash
flows.
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None
OFFICERS AND KEY PERSONNEL OF THE COMPANY
The
address of each executive officer and director is c/o:
|
Advanced
Pipe Fitting Technologies, Inc
|
4790
Caughlin Pkwy, Ste 387
|
|
Reno,
Nv 89519
|
Mr.
Yanzhang, Li (first, last) CEO, COO and chairman of the board.
45 years
old, Mr. Li has 20 years of extensive experience in pipe fittings
industry.
From 1982
to 1988, he was an employee for Hanji County government, Hebei Provence,
China
From 1988
to 2008, he was the general manager for Yan Shan Great Sea Pipe Fittings
Ltd.
From 2008
to now, as an expert and insider of Pipe Fitting industry, Mr. Li actively
studies the industry trends
Mr.
Guoxing, Liu (first, last) CFO and director
46 years
old, held an associate degree in architect. From 1980 to 1997, he was
a project manager for China Xin Xing Construction group. From 1998 to 2007, he
was a director, vice president for Beijing Yuan Hong real estate development
Ltd. From 2007 to now, he is the director of project development (business
development) for Beijing International investment Ltd.
DIRECTORS
OF THE COMPANY
Number of
Directors: 2
Directors
are elected annually.
List of
Outside/Independent Directors
None
38
HAVE
ANY OF THE OFFICERS OR DIRECTORS EVER WORKED FOR OR MANAGED A COMPANY IN THE
SAME BUSINESS AS THE COMPANY?
Mr. Li
and Mr. Liu have many years experience in the Pipe Fitting and Construction
industry
IF
ANY OF THE OFFICERS, DIRECTORS OR OTHER KEY PERSONNEL HAVE EVER WORKED FOR OR
MANAGED A COMPANY IN THE SAME BUSINESS OR INDUSTRY AS THE COMPANY OR IN A
RELATED BUSINESS OR INDUSTRY, DESCRIBE WHAT PRECAUTIONS, IF ANY, (INCLUDING THE
OBTAINING OF RELEASES OR CONSENTS FROM PRIOR EMPLOYERS) HAVE BEEN TAKEN TO
PRECLUDE CLAIMS BY PRIOR EMPLOYERS FOR CONVERSION OR THEFT OF TRADE SECRETS,
KNOW-HOW OR OTHER PROPRIETARY INFORMATION.
No action
has been taken in this regard.
IF
THE COMPANY HAS NEVER CONDUCTED OPERATIONS OR IS OTHERWISE IN THE DEVELOPMENT
STAGE, INDICATE WHETHER ANY OF THE OFFICERS OR DIRECTORS HAS EVER MANAGED ANY
OTHER COMPANY IN THE START-UP OR DEVELOPMENT STAGE AND DESCRIBE THE
CIRCUMSTANCES, INCLUDING RELEVANT DATES.
None
IF
ANY OF THE COMPANY'S KEY PERSONNEL ARE NOT EMPLOYEES BUT ARE CONSULTANTS OR
OTHER INDEPENDENT CONTRACTORS, STATE THE DETAILS OF THEIR ENGAGEMENT BY THE
COMPANY.
None at
this time
IF
THE COMPANY HAS KEY MAN LIFE INSURANCE POLICIES ON ANY OF ITS OFFICERS,
DIRECTORS OR KEY PERSONNEL, EXPLAIN, INCLUDING THE NAMES OF THE PERSONS INSURED,
THE AMOUNT OF INSURANCE, WHETHER THE INSURANCE PROCEEDS ARE PAYABLE TO THE
COMPANY AND WHETHER THERE ARE ARRANGEMENTS THAT REQUIRE THE PROCEEDS TO BE USED
TO REDEEM SECURITIES OR PAY BENEFITS TO THE ESTATE OF THE INSURED PERSON OR A
SURVIVING SPOUSE.
None at
this time
IF
A PETITION UNDER THE BANKRUPTCY ACT OR ANY STATE INSOLVENCY LAW WAS FILED BY OR
AGAINST THE COMPANY OR ITS OFFICERS, DIRECTORS OR OTHER KEY PERSONNEL, OR A
RECEIVER, FISCAL AGENT OR SIMILAR OFFICER WAS APPOINTED BY A COURT FOR THE
BUSINESS OR PROPERTY OF ANY SUCH PERSONS, OR ANY PARTNERSHIP IN WHICH ANY OF
SUCH PERSONS WAS A GENERAL PARTNER AT OR WITHIN THE PAST FIVE YEARS, OR ANY
CORPORATION OR BUSINESS ASSOCIATION OF WHICH ANY SUCH PERSON WAS AN EXECUTIVE
OFFICER AT OR WITHIN THE PAST FIVE YEARS, SET FORTH BELOW THE NAME OF SUCH
PERSONS, AND THE NATURE AND DATE OF SUCH ACTIONS.
No
petition under the bankruptcy act or any state insolvency law has been filed by
or against the company or its officers, directors or other key personnel. No
receiver, fiscal agent or similar officer has been appointed by a court for the
business or property of any such persons, or any partnership in which any of
such persons was a general partner at or within the past five years, or any
corporation or business association of which any such person was an executive
officer at or within the past five years.
39
SECTION
16(a) BENEFICIAL OWNERSHIP REPORTING COMPLIANCE
Section
16(a) of the Securities Exchange Act of 1934 requires our directors and
executive officers, and persons who own more than ten percent of our common
stock, to file with the Securities and Exchange Commission initial reports of
ownership and reports of change of ownership of our common
stock. Officers, directors and greater than ten percent stockholders
are required by SEC regulation to furnish us with copies of all Section 16(a)
forms they file.
We intend
to ensure to the best of our ability that all Section 16(a) filing requirements
applicable to our officers, directors and greater than ten percent beneficial
owners are complied with in a timely fashion.
EXECUTIVE COMPENSATION
We do not
currently compensate our Officers and Directors, as outlined in this document.
We do not currently offer benefits, such as health or life
insurance.
CERTAIN RELATIONSHIPS AND RELATED
TRANSACTIONS
The
Company issued 3,266,000 shares @ $.001 to Yanzhang Li, CEO for services
rendered valued at $3,266.00 on September 4th 2009
The
Company issued 3,266,000 shares @ $.001 to Xiusheng Xing for services rendered
valued at $3,266.00 on September 4th 2009
The
Company issued 1,634,000 shares @ $.001 to Guoxing Liu, CFO/Director for
services rendered valued at $1,634.00 on September 4th 2009
The
Company issued 1,634,000 shares @ $.001 to Qiong Xie for services rendered
valued at $1,634.00 on September 4th 2009
The
Company issued 25,000shares to Ramona Smith for services rendered on September
4th 2009
in developing the company’s business plan
(See
table in section titled “SELLING
SHAREHOLDERS”)
SUMMARY
COMPENSATION
At this
time there is no compensation being offered to any of the
Officers/Directors
STOCK
AND OPTION AWARDS
There
have been no stock options or awards other than the original “founders” stock,
which was issued for services to the founders.
DIRECTORS’
COMPENSATION
Directors
are not compensated.
EMPLOYMENT
CONTRACTS AND OFFICERS’ COMPENSATION
There are
no employment agreements
INCENTIVE
STOCK OPTION PLAN AND INCENTIVE STOCK OPTION AGREEMENT
None at
this time
LONG-TERM
INCENTIVE PLAN (“LTIP”) AWARDS
None at
this time
40
SECURITY
OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT
The
following table sets forth, as of the date of this Prospectus, the total number
of shares owned beneficially by our directors, officers and key employees,
individually and as a group, and the present owners of 5% or more of our total
outstanding shares. The officers and directors currently own
9,800,000 common shares. The table also reflects what the percentage
of ownership will be assuming completion of the sale of all shares in this
offering, which we cannot guarantee. The stockholders listed below
have direct ownership of their shares and possess sole voting and dispositive
power with respect to the shares.
Beneficial
Owner Officer/Directors (1)
|
Percent
of
Voting
Shares
Owned (2)
|
Number
of
Common
Shares
Owned (3)
|
||||||
Yanzhang
Li, CEO
|
32.7 | % | 3,266,000 | |||||
Guoxing
Liu, CFO/Director
|
16.3 | % | 1,634,000 | |||||
Xiusheng
Xing, shareholder
|
32.7 | % | 3,266,000 | |||||
Qiong
Xie, shareholder
|
16.34 | % | 1,634.000 |
Total
Shares Outstanding
|
10,000,000 | |||
Total
Shares Authorized
|
100,000,000 | |||
Total
Shares owned by Officers and Directors
|
9,800,000 |
The
address of each executive officer and director is c/o the Company.
(1) As
used in this table, “beneficial ownership” means the sole or shared power to
vote, or to direct the voting of, a security, or the sole or share investment
power with respect to a security (i.e., the power to dispose of, or to direct
the disposition of, a security).
(2)
Assumes the sale of the maximum amount of this offering (the Company shares of
common stock) by the Company.
(3) The
aggregate amount of shares to be issued by the Company and outstanding after the
offering is 10,000,000
Pursuant
to the Articles of Incorporation and By-Laws of the corporation, we may
indemnify an officer or director who is made a party to any proceeding,
including a law suit, because of his position, if he acted in good faith and in
a manner he reasonably believed to be in our best interest. In
certain cases, we may advance expenses incurred in defending any such
proceeding. To the extent that the officer or director is successful
on the merits in any such proceeding as to which such person is to be
indemnified, we must indemnify him against all expenses incurred, including
attorney’s fees. With respect to a derivative action, indemnity may
be made only for expenses actually and reasonably incurred in defending the
proceeding, and if the officer or director is judged liable, only by a court
order. The indemnification is intended to be to the fullest extent
permitted by the laws of the State of Nevada.
In so far
as indemnification for liabilities arising under the Securities Act may be
permitted to our directors, officers and controlling persons pursuant to the
provisions above, or otherwise, we have been advised that in the opinion of the
Securities and Exchange Commission, such indemnification is against public
policy as expressed in the Securities Act, and is, therefore,
unenforceable.
In the
event that a claim for indemnification against such liabilities, other than the
payment by us of expenses incurred or paid by one of our directors, officers, or
controlling persons in the successful defense of any action, suit or proceeding,
is asserted by one of our directors, officers, or controlling person in
connection with the securities being registered, we will, unless in the opinion
of our counsel the matter has been settled by controlling precedent, submit to a
court of appropriate jurisdiction the question whether such indemnification is
against public policy as expressed in the Securities Act, and we will be
governed by the final adjudication of such issue.
AVAILABLE INFORMATION
We have
filed a registration statement on Form S-1, of which this Prospectus is a part,
with the U.S. Securities and Exchange Commission. Upon completion of
the registration, we will be subject to the informational requirements of the
Exchange Act and, in accordance therewith, will file all requisite reports, such
as Forms 10-K, 10-Q, and 8-K, proxy statements, under Section 14 of the Exchange
Act and other information with the Commission. Such reports, proxy
statements, this registration statement and other information, may be inspected
and copied at the public reference facilities maintained by the Commission at
100 F Street NE, Washington, D.C. 20549. Copies of all materials may
be obtained from the Public Reference Section of the Commission’s Washington,
D.C. office at prescribed rates. You may obtain information regarding
the operation of the Public Reference Room by calling the SEC at
1-800-SEC-0330. The Commission also maintains a Web site that
contains reports, proxy and information statements and other information
regarding registrants that file electronically with the Commission at http://www.sec.gov.
41
Advanced
Pipe Fitting Technologies, Inc.
600,000
SHARES OF COMMON STOCK
PROSPECTUS
YOU
SHOULD RELY ONLY ON THE INFORMATION CONTAINED IN THIS DOCUMENT OR THAT WE HAVE
REFERRED YOU TO. WE HAVE NOT AUTHORIZED ANYONE TO PROVIDE YOU WITH INFORMATION
THAT IS DIFFERENT. THIS PROSPECTUS IS NOT AN OFFER TO SELL COMMON STOCK AND IS
NOT SOLICITING AN OFFER TO BUY COMMON STOCK IN ANY STATE WHERE THE OFFER OR SALE
IS NOT PERMITTED.
Until
_____________, all dealers that effect transactions in these securities whether
or not participating in this offering may be required to deliver a prospectus.
This is in addition to the dealer’s obligation to deliver a prospectus when
acting as underwriters and with respect to their unsold allotments or
subscriptions.
The
Date of This Prospectus is_____, 2010
42
PART
II – INFORMATION NOT REQUIRED IN PROSPECTUS
ITEM 13OTHER EXPENSES OF ISSUANCE AND
DISTRIBUTION
The
following table sets forth an estimate of the costs and expenses, other than the
underwriting discounts and commissions, payable by the registrant in connection
with the issuance and distribution of the common stock being
registered:
SEC
registration fee
|
$ | 140 | ||
Blue
Sky Expense
|
260 | |||
Legal
fees and expenses
|
50,000 | |||
Accountants’
fees and expenses
|
9,600 | |||
|
||||
Total
|
$ | 60,000 |
All
amounts except the SEC registration fee are estimated. All of the
expenses set forth above are being paid by us.
ITEM 14 INDEMNIFICATION OF DIRECTORS AND
OFFICERS
Article 4
of the Articles of Incorporation (as amended) address indemnification of
Directors and Officers and provides for the following:
“No
director of the corporation will be liable to the corporation or its
shareholders for monetary damages for an act or omission in the director's
capacity as a director, except as provided by the Code; and, the corporation
will indemnify its directors and officers to the fullest extent permitted by the
Code and may, of and to the extent authorized by the board of directors,
indemnify any other person whom it has the power to indemnify against liability,
reasonable expense, or any other matter whatever; and, the corporation may at
the discretion of the board of directors purchase and maintain insurance on behalf of
the corporation and any person whom it has the power to indemnify pursuant to
law, the certificate of formation, or these bylaws, or otherwise.”
ITEM
15 RECENT SALES OF UNREGISTERED SECURITIES
On
November 4th 2009
the Company initiated and filed a Reg D 504 @ $.25 per share
ITEM
16 EXHIBITS
The
following exhibits are included with this registration statement:
Exhibit Number
|
Name/Identification of
Exhibit
|
3.1
|
Articles
of Incorporation
|
3.2
|
Bylaws
|
5.1
|
Opinion
of Novi & Wilkin, Esq. Attorneys at Law
|
23.1
|
Consent
of Independent Auditor
|
23.2
|
Consent
of Counsel (See Exhibit 5.1)
|
23.3
|
Subscription
Agreement
|
43
ITEM
17 UNDERTAKINGS
The
undersigned Registrant hereby undertakes to:
The
undersigned Registrant hereby undertakes to:
(a)(1)
File, during any period in which it offers or sells securities, a
post-effective amendment to this registration statement to:
(i)
Include any prospectus required by Section 10(a)(3) of the Securities
Act;
(ii)
Reflect in the prospectus any facts or events which, individually or together,
represent a fundamental change in the information in the registration statement.
Notwithstanding the foregoing, any increase or decrease in volume of securities
offered (if the total dollar value of securities offered would not exceed that
which was registered) and any deviation from the low or high end of the
estimated maximum offering range may be reflected in the form of prospectus
filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the
changes in volume and price represent no more than a 20 percent change in the
maximum aggregate offering price set forth in the “Calculation of Registration
Fee” table in the effective registration statement;
(iii)
Include any additional or changed material information on the plan of
distribution.
(2) For
determining liability under the Securities Act, each post-effective amendment
shall be deemed to be a new registration statement of the securities offered,
and the offering of the securities at that time shall be deemed to be the
initial bona fide offering.
(3) File
a post-effective amendment to remove from registration any of the securities
that remain unsold at the end of the offering.
(4) For
determining liability of the undersigned Registrant under the Securities Act to
any purchaser in the initial distribution of the securities, the undersigned
Registrant undertakes that in a primary offering of securities of the
undersigned Registrant pursuant to this registration statement, regardless of
the underwriting method used to sell the securities to the purchaser, if the
securities are offered or sold to such purchaser by means of any of the
following communications, the undersigned Registrant will be a seller to the
purchaser and will be considered to offer or sell such securities to such
purchaser:
(i) Any
preliminary prospectus or prospectus of the undersigned Registrant relating to
the offering required to be filed pursuant to Rule 424;
(ii) Any free writing prospectus relating to the offering prepared by or on behalf of the undersigned Registrant or used or referred to by the undersigned Registrant;
(iii) The
portion of any other free writing prospectus relating to the offering containing
material information about the undersigned Registrant or its securities provided
by or on behalf of the undersigned Registrant; and
(iv) Any
other communication that is an offer in the offering made by the undersigned
Registrant to the purchaser.
(b)
Insofar as indemnification for liabilities arising under the Securities Act of
1933 (the “Act”) may be permitted to Directors, officers and controlling persons
of the Registrant pursuant to the foregoing provisions, or otherwise, the
Registrant has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable.
44
In the
event that a claim for indemnification against such liabilities (other than the
payment by the Registrant of expenses incurred or paid by a Director, officer or
controlling person of the Registrant in the successful defense of any action,
suit or proceeding) is asserted by such Director, officer or controlling person
in connection with the securities being registered, the Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the
Securities Act and will be governed by the final adjudication of such
issue.
(c) That,
for the purpose of determining liability under the Securities Act to any
purchaser:
(2) If
the Registrant is subject to Rule 430C,
Each
prospectus filed pursuant to Rule 424(b) as part of a registration statement
relating to an offering, other than registration statements relying on Rule 430B
or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be
part of and included in the registration statement as of the date it is first
used after effectiveness. Provided, however, that no statement made in a
registration statement or prospectus that is part of the registration statement
or made in a document incorporated or deemed incorporated by reference into the
registration statement or prospectus that is part of the registration statement
will, as to a purchaser with a time of contract of sale prior to such first use,
supersede or modify any statement that was made in the registration statement or
prospectus that was part of the registration statement or made in any such
document immediately prior to such date of first use.
(b)
Insofar as indemnification for liabilities arising under the Securities Act of
1933 (the “Act”) may be permitted to Directors, officers and controlling persons
of the Registrant pursuant to the foregoing provisions, or otherwise, the
Registrant has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable.
In the
event that a claim for indemnification against such liabilities (other than the
payment by the Registrant of expenses incurred or paid by a Director, officer or
controlling person of the Registrant in the successful defense of any action,
suit or proceeding) is asserted by such Director, officer or controlling person
in connection with the securities being registered, the Registrant will, unless
in the opinion of its counsel the matter has been settled by controlling
precedent, submit to a court of appropriate jurisdiction the question whether
such indemnification by it is against public policy as expressed in the
Securities Act and will be governed by the final adjudication of such
issue.
(c) That,
for the purpose of determining liability under the Securities Act to any
purchaser:
(2) If
the Registrant is subject to Rule 430C,
Each
prospectus filed pursuant to Rule 424(b) as part of a registration statement
relating to an offering, other than registration statements relying on Rule 430B
or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be
part of and included in the registration statement as of the date it is first
used after effectiveness. Provided, however, that no statement made in a
registration statement or prospectus that is part of the registration statement
or made in a document incorporated or deemed incorporated by reference into the
registration statement or prospectus that is part of the registration statement
will, as to a purchaser with a time of contract of sale prior to such first use,
supersede or modify any statement that was made in the registration statement or
prospectus that was part of the registration statement or made in any such
document immediately prior to such date of first use.
45
SIGNATURES
In
accordance with the requirements of the Securities Act of 1933, the Registrant
has duly caused this Registration Statement to be signed on its behalf by the
undersigned, in the City of Reno, State of Nevada on December 8th
2009
Advanced Pipe Fitting
Technologies, Inc
|
|
(Registrant)
|
|
By: /s/ Yanzhang Li
|
|
Yanzhang
Li
|
Date
|
Chairman,
President and CEO
|
January 18, 2010
|
In
accordance with the requirements of the Securities Act of 1933, this
Registration Statement was signed by the following persons in the capacities and
on the dates indicated.
Signature
|
Title
|
Date
|
/s/ Guozing
Liu
Guoxing,
Liu
|
CFO/Director
|
January
18, 2010
|
46