Attached files
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EX-32.1 - M45 Mining Resources, Inc. | v202376_ex32-1.htm |
EX-32.2 - M45 Mining Resources, Inc. | v202376_ex32-2.htm |
EX-31.1 - M45 Mining Resources, Inc. | v202376_ex31-1.htm |
EX-31.2 - M45 Mining Resources, Inc. | v202376_ex31-2.htm |
UNITED STATES
SECURITIES AND EXCHANGE
COMMISSION
Washington,
D.C. 20549
FORM 10-Q
(Mark
One)
x
|
Quarterly Report Pursuant to
Section 13 or 15 (d) of the Securities Exchange Act of
1934
for the Quarterly Period
ended September
30, 2010
|
o
|
Transition Report Pursuant to
Section 13 or 15 (d) of the Securities Exchange Act of
1934
for the Transition
Period from _______________ to
____________________
|
Commission
File No. 33-55254-42
Neuro-Biotech
Corp.
(Exact
name of registrant as specified in its charter)
NEVADA
|
87-0485310
|
(State or other
jurisdiction of
incorporation or
organization)
|
(I.R.S. Employer
Identification No.)
|
Aeschenvorstadt 71, CH-4051
Basel, Switzerland
(Address of
principal executive offices)
|
(Postal
Code)
|
Registrant’s
telephone number, including area code: 41 61 500 05 16
M45
Mining Resources Inc.
(Former
name, former address and former fiscal year, if changed since last
report)
Indicate
by check mark whether the registrant (1) has filed all reports required to be
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days.
Yes x No o
Indicate
by check mark whether the registrant is a large accelerated filer, an
accelerated filer, a non-accelerated filer, or a smaller reporting company. See
the definitions of “large accelerated filer, “ “ accelerated filer”
and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer o | Accelerated filer o | Non-accelerated filer o | Smaller reporting company x |
Indicate by check mark whether the
registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes o No x
662,807,500
shares of Company’s common stock, par value $0.001 per share, were outstanding
as of November 8, 2010.
Neuro-Biotech
Corp.
(A
Developmental Stage Company)
(formerly
M45 Mining Resources Inc.)
TABLE
OF CONTENTS FOR FORM 10-Q
PART
I. FINANCIAL INFORMATION
|
|||||
FINANCIAL
STATEMENTS
|
|||||
Balance
Sheets as of September 30, 2010 (unaudited) and March 31,
2010
|
3 | ||||
Statements
of operations for the three months ended September 30, 2010 and
2009, for the six months ended September 30, 2010 and 2009 and
for the period from April 1, 2004 (inception) to September 30,
2010 (Unaudited)
|
4 | ||||
Statements
of cash flows for the six months ended September 30, 2010 and 2009, and
for the period from April 1, 2004 (inception) to September 30, 2010
(Unaudited)
|
5 | ||||
Notes
to unaudited financial statements
|
6 | ||||
ITEM
2.
|
MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
|
17 | |||
ITEM
3.
|
QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
18 | |||
ITEM
4
|
CONTROLS
AND PROCEDURES
|
19 | |||
LEGAL
PROCEEDINGS
|
19 | ||||
RISK
FACTORS
|
19 | ||||
UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
20 | ||||
DEFAULTS
UPON SENIOR SECURITIES
|
20 | ||||
SUBMISSION
OF MATTERS TO A VOTE OF SECURITY HOLDERS
|
20 | ||||
OTHER
INFORMATION
|
20 | ||||
EXHIBITS
|
21 | ||||
SIGNATURES
|
22 |
PART
I - FINANCIAL INFORMATION
ITEM
I. FINANCIAL STATEMENTS
NEURO-BIOTECH
CORP.
(A
Development Stage Company)
(formerly
M45 Mining Resoures Inc.)
BALANCE
SHEETS
September
30,
|
March
31,
|
|||||||
2010
|
2010
|
|||||||
(Unaudited)
|
||||||||
Assets
|
||||||||
Current
assets:
|
||||||||
Cash
|
$ | - | $ | - | ||||
Prepaid
expense
|
- | - | ||||||
Total
current assets
|
- | - | ||||||
Fixed
assets, net
|
50,881 | 61,755 | ||||||
Website
development cost, net
|
11,906 | 14,599 | ||||||
Intangible
assets, net
|
604,750 | - | ||||||
Total
assets
|
$ | 667,537 | $ | 76,354 | ||||
Liabilities
and Stockholders' Deficit
|
||||||||
Current
liabilities
|
||||||||
Accounts
payable and accrued liabilites
|
$ | 71,691 | $ | 19,719 | ||||
Notes
payable - non-related parties
|
1,125,913 | - | ||||||
Notes
payable - related parties
|
456,150 | 401,849 | ||||||
Total
current liabilities
|
1,653,754 | 421,568 | ||||||
Stockholders'
deficit
|
||||||||
|
||||||||
Common
stock, $.001 par value; 1,000,000,000 shares authorized,
662,807,500 and 53,120,886 shares issued and
outstanding
|
662,808 | 53,121 | ||||||
Additional
paid-in capital
|
55,771,787 | 6,863,872 | ||||||
Deficit
accumulated during the development stage
|
(57,420,812 | ) | (7,262,207 | ) | ||||
Total
stockholders deficit
|
(986,217 | ) | (345,214 | ) | ||||
Total
liabilities and stockholders' deficit
|
$ | 667,537 | $ | 76,354 |
The accompanying notes are
an integral part of the financial statements.
NEURO-BIOTECH
CORP.
(A
Development Stage Company)
(formerly
M45 Mining Resoures Inc.)
STATEMENTS
OF OPERATIONS
(Unaudited)
Three
Months Ended
September
30
|
Six
Months Ended September
30 |
Date
of
Inception
to
September
30,
|
||||||||||||||||||
2010
|
2009
|
2010
|
2009
|
2010
|
||||||||||||||||
Operating
revenues
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Operating
expenses:
|
||||||||||||||||||||
Mining
claim acquisition costs
|
- | (2,156,486 | ) | - | ||||||||||||||||
General
and administrative
|
23,023 | 12,532 | 575,302 | 35,292 | 5,106,647 | |||||||||||||||
Marketing
|
- | - | - | - | 49,391 | |||||||||||||||
Research
and development
|
- | 922 | 2,336 | 175,775 | ||||||||||||||||
Depreciation,
amortization and impairment
|
12,933 | 5,062 | 51,683,817 | 10,124 | 51,745,690 | |||||||||||||||
Total
expenses
|
35,956 | 18,516 | 50,102,633 | 47,752 | 57,077,503 | |||||||||||||||
Net
loss before Other Income (Expenses) and income
taxes
|
(35,956 | ) | (18,516 | ) | (50,102,633 | ) | (47,752 | ) | (57,077,503 | ) | ||||||||||
Interest
|
(40,960 | ) | (2,667 | ) | (55,972 | ) | (5,034 | ) | (136,260 | ) | ||||||||||
Net
effect of recapitlization
|
- | - | - | - | (124,668 | ) | ||||||||||||||
Discontinued
operations - subsidiary
|
- | - | - | - | (255,997 | ) | ||||||||||||||
Disposal
of subsidiary
|
- | - | - | - | 173,616 | |||||||||||||||
Net
loss before income taxes
|
(76,916 | ) | (21,183 | ) | (50,158,605 | ) | (52,786 | ) | (57,420,812 | ) | ||||||||||
Income
Taxes
|
- | - | - | - | ||||||||||||||||
Net
loss
|
$ | (76,916 | ) | $ | (21,183 | ) | $ | (50,158,605 | ) | $ | (52,786 | ) | $ | (57,420,812 | ) | |||||
Basic
and Diluted Loss Per Share:
|
||||||||||||||||||||
Net
loss per weighted average share
|
||||||||||||||||||||
Net
operating loss
|
$ | - | $ | - | (0.083 | ) | (0.001 | ) | ||||||||||||
Net
effect of recapitlization
|
- | - | - | - | ||||||||||||||||
Discontinued
operations
|
- | - | - | - | ||||||||||||||||
Disposal
of subsidiary
|
- | - | - | - | ||||||||||||||||
$ | - | $ | - | $ | (0.083 | ) | $ | (0.001 | ) | |||||||||||
Weighted
average number of common shares used to compute net loss
per
weighted average share
|
662,807,500 | 54,008,386 | 601,077,967 | 54,008,386 |
The
accompanying notes are an integral part of the financial statements.
NEURO-BIOTECH
CORP.
(A
Development Stage Company)
(formerly
M45 Mining Resoures Inc.)
STATEMENTS
OF CASH FLOWS
Six
Months Ended
|
Date
of Inception
to |
|||||||||||
September
30,
|
September
30,
|
September
30,
|
||||||||||
2010
|
2009
|
2010
|
||||||||||
Cash
flows from operations:
|
||||||||||||
Net
loss
|
$ | (50,158,605 | ) | $ | (52,786 | ) | $ | (57,420,812 | ) | |||
Adjustment
to reconcile net loss to net cash used in operarting
activiites
|
||||||||||||
Disposal
of subsidiary
|
- | - | (173,616 | ) | ||||||||
Discontinued
operations
|
- | - | 255,997 | |||||||||
Change
in receivables
|
- | - | 1,414 | |||||||||
Expenses
paid with stock, net of reversal of expenses
|
(1,631,486 | ) | - | 1,268,501 | ||||||||
Employee
Stock Option Plan
|
- | - | 3,319,117 | |||||||||
Prior
period Foreign Exchange Fluctuation
|
- | - | (15,548 | ) | ||||||||
Prepaid
deposits
|
- | - | ||||||||||
Depreciation,
amortization and impairment
|
51,683,817 | 10,124 | 51,745,690 | |||||||||
Increase
(decrease) in operating liabilities
|
||||||||||||
Changes
in receivables
|
(1,414 | ) | ||||||||||
Changes
in payables
|
51,973 | 2,336 | 68,778 | |||||||||
Net
cash provided by (used in) investing activities
|
(54,301 | ) | (41,740 | ) | (950,479 | ) | ||||||
Cash
flows from investing activities:
|
||||||||||||
Acquisition
of fixed assets
|
- | - | (108,743 | ) | ||||||||
Website
development
|
- | - | (16,156 | ) | ||||||||
Leasehold
improvements
|
- | - | (13,329 | ) | ||||||||
Net
effect of recapitalization
|
- | - | 124,668 | |||||||||
Net
cash provided by (used in) investing activities
|
- | - | (13,560 | ) | ||||||||
Cash
flows from financing activities:
|
||||||||||||
Issuance
of common stock
|
- | - | 28,182 | |||||||||
Net
effect of recapitalization
|
- | - | 5,470 | |||||||||
Increase
in notes payable - related parties
|
54,301 | 41,740 | 930,387 | |||||||||
Net
cash provided by financing activities
|
54,301 | 41,740 | 964,039 | |||||||||
Net
incresase in cash
|
- | - | - | |||||||||
Cash,
beginning of period
|
- | - | - | |||||||||
Cash,
end of period
|
$ | - | $ | - | $ | - | ||||||
Supplemental
disclosures of cash flow information:
|
||||||||||||
Interest
|
$ | - | $ | - | $ | 50,744 | ||||||
Income
tax
|
$ | - | $ | - | $ | - | ||||||
Noncash
financing and investing activities
|
||||||||||||
Acquisition
of licenses for common stock
|
$ | 52,275,000 | $ | - | $ | 52,275,000 |
The accompanying notes are an integral part of the financial
statements.
NEURO-BIOTECH
CORP..
(A
Development Stage Company)
(formerly
M45 Mining Resources Inc.)
NOTES
TO UNAUDITED FINANCIAL STATEMENTS
September
30, 2010
NOTE 1: ORGANIZATION AND SIGNIFICANT
ACCOUNTING PRINCIPLES
Basis
of Presentation
The
accompanying unaudited financial statements of Neuro-Biotech Corp., have been
prepared in accordance with accounting principles generally accepted in the
United States of America for interim financial information and with the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do
not include all of the information and notes required by generally accepted
accounting principles for a complete presentation of the financial statements.
In the opinion of management, the unaudited interim financial statements
furnished herein include all adjustments (consisting of a normal and recurring
nature) necessary for a fair presentation of the Company’s financial position at
September 30, 2010 (unaudited) and the results of its operations for the six
months ended September 30, 2010 (unaudited) and cash flows for the six months
ended September 30, 2010 (unaudited). Interim financial statements are prepared
on a basis consistent with the Company’s annual financial statements. Results of
operations for the six month period ended September 30, 2010 are not necessarily
indicative of the operating results that may be expected for the fiscal year
ended March 31, 2011.
These
financial statements and the notes hereto should be read in conjunction with
financial statements and notes thereto included in the Company’s Form 10-K for
the year ended March 31, 2010, which was filed July 2, 2010.
Neuro-Biotech
Corp.’s, new strategy is focused on building shareholder value though the
removal of its mining business and to focus toward the realm of
neuroscience.
Neuro-Biotech
Corp. is a public neuroscience medical diagnostic enterprise involved in the
unique international niche of clinical neuroscience with the emphasis being to
rapidly develop and commercialize innovative and competitive diagnostic
products, with the goal of becoming a world leader in this market.
Neuro-Biotech's
vision is to be the first neuro-pharmaceutical company to bring to market
analytical diagnostic products specifically designed to facilitate early
diagnosis, and monitoring. This will allow follow-up treatments, through a
targeted therapeutic approach to the major psycho-social environmental diseases
related to the neuro-psycho-endocrine and immune systems.
Neuro-Biotech
Corp. Business aims are to: develop and commercialize quantitative diagnostic
blood tests for early diagnosis, monitoring and follow-up for a large range of
neuroscience and stress related disorders in order to accommodate unsatisfied
medical needs; develop its own extensive portfolio of diagnostic tests and
natural brain neuroceuticals; enter into strategic alliances with large
distributors in order to accelerate its worldwide market penetration in general
and, in particular some revenue interesting niche markets, by
initiating sales through its own sales force; and by forming business
partnerships with private laboratory networks on a worldwide basis.
Name
Change
On
February 11, 2010, the Company changed its name to Neuro-Biotech Corp.
The Company’s office is located at Aeschenvorstadt 71, CH-4051 Basel,
Switzerland.
On April
30, 2010, the Company’s Board of Directors approved a revision to the
Company’s charter to increase the number of common shares available for issuance
to an aggregate of 1,000,000,000 shares.
All other
provisions of the charter remain unchanged. The Company subsequently approved a
change in the par value of the Company’s common stock to $0.001 per
share.
As of
November 10, 2010, the Company has no full-time employees. The President
and Secretary-Treasurer have agreed to allocate a portion of their time without
compensation to the activities of the Company.
NEURO-BIOTECH
CORP..
(A
Development Stage Company)
(formerly
M45 Mining Resources Inc.)
NOTES
TO UNAUDITED FINANCIAL STATEMENTS
September
30, 2010
Significant
Accounting Policies
Effective
July 1, 2009, the Company adopted the Financial Accounting Standards Board
(“FASB”) Accounting Standards Codification (“ASC”) 105-10, Generally Accepted
Accounting Principles – Overall (“ASC 105-10”). ASC 105-10 establishes the FASB
Accounting Standards Codification (the “Codification”) as the source of
authoritative accounting principles recognized by the FASB to be applied by
nongovernmental entities in the preparation of financial statements in
conformity with U.S. GAAP. Rules and interpretive releases of the SEC under
authority of federal securities laws are also sources of authoritative U.S. GAAP
for SEC registrants. All guidance contained in the Codification carries an equal
level of authority. The Codification superseded all existing non-SEC accounting
and reporting standards.
All other
non-grandfathered, non-SEC accounting literature not included in the
Codification is non-authoritative. The FASB will not issue new standards in the
form of Statements, FASB Positions or Emerging Issue Task Force Abstracts.
Instead, it will issue Accounting Standards Updates (“ASUs”).
The FASB
will not consider ASUs as authoritative in their own right. ASUs will serve only
to update the Codification, provide background information about the guidance
and provide the bases for conclusions on the change(s) in the Codification.
References made to FASB guidance throughout this document have been updated for
the Codification.
Cash and cash
equivalents
The
Company considers all highly liquid investments with a maturity of three months
or less when purchased to be cash equivalents. There are no cash equivalents as
of September 30, 2010.
Property
and equipment
Property
and equipment are carried at cost less accumulated depreciation. Major additions
and improvements are capitalized, while maintenance and repairs that do not
extend the lives of assets are expensed. Gain or loss, if any, on the
disposition of fixed assets is recognized currently in operations. Depreciation
is calculated primarily on a straight-line basis over estimated useful lives of
the assets.
Website
development costs
The costs
of computer software developed or obtained for internal use, during the
preliminary project phase, as defined under ASC Topic 350-40, “Internal-Use
Software, ” will be
expensed as incurred. The costs of website development during the planning
stage, as defined under ASC 350-50, “Website Development Costs ”,
will also be expensed as incurred.
Computer
software, website development incurred during the application and infrastructure
development stage, including external direct costs of materials and services
consumed in developing the software and creating graphics and website content,
will be capitalized and amortized over the estimated useful life, beginning when
the software is ready for use and after all substantial testing is completed and
the website is operational.
Research
and development
Research
and development costs principally represent consulting fees of the Company’s
scientist and biotech professionals, material and payments to third
parties for clinical trials and additional product development and testing. All
research and development costs are charged to expense as incurred.
NEURO-BIOTECH
CORP..
(A
Development Stage Company)
(formerly
M45 Mining Resources Inc.)
NOTES
TO UNAUDITED FINANCIAL STATEMENTS
September
30, 2010
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, such as useful lives of property and equipment, 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 expenses during the reporting period. Actual results
could differ from those estimates.
Stock-based
compensation
The
Company follows ASC Topic 718, “Share Based Payment” which
requires all share-based payments, including grants of stock options, to be
recognized in the income statement as an operating expense, based on their fair
values. Stock-based compensation is included in general and administrative
expenses for all periods presented.
Fair
value of financial instruments
The
Company follows ASC 820, “Fair
Value Measurements” which defines fair value, establishes a framework for
measuring fair value and requires additional disclosures about fair value
measurements. The carrying amounts of cash and cash equivalents, accounts
payable, and accrued expenses approximate fair value based on their short-term
maturity. Stockholder loans are carried at cost.
Intangible
assets
Goodwill
and other intangible assets are accounted for in accordance with the FASB of ASC
350, “Goodwill and Other
Intangible Assets.” Under ASC 350, goodwill, including any goodwill
included in the carrying value of investments accounted for using the equity
method of accounting, and certain other intangible assets deemed to have
indefinite useful lives are not amortized. Rather, goodwill and such
indefinite-lived intangible assets are assessed for impairment at least annually
based on comparisons of their respective fair values to their carrying
values.
Impairment
of long lived assets
Finite-lived
intangible assets are amortized over their respective useful lives and, along
with other long-lived assets, are evaluated for impairment periodically whenever
events or changes in circumstances indicate that their related carrying amounts
may not be recoverable in accordance with ASC 360, “Accounting for the Impairment or
Disposal of Long-Lived Assets.”
In
evaluating long-lived assets for recoverability, including finite-lived
intangibles and property and equipment, the Company uses its best estimate of
future cash flows expected to result from the use of the asset and eventual
disposition in accordance with ASC 360. To the extent that estimated future
undiscounted net cash flows attributable to the asset are less than the carrying
amount, an impairment loss is recognized in an amount equal to the difference
between the carrying value of such asset and its fair value. Assets to be
disposed of and for which there is a committed plan of disposal, whether through
sale or abandonment, are reported at the lower of carrying value or fair value
less costs to sell.
Long-lived
assets, which include property, plant and equipment and the licenses, are
reviewed for impairment whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. On April 30, 2010,
it was determined that the licenses did not have a value greater than par value
and Management recorded an impairment charge of $51,660,000 to bring the value
of the licenses to $615,000 from the recorded fair value of $0.085 per hare that
the 615,000,000 shares of common stock were issued to acquire the
licenses.
NEURO-BIOTECH
CORP..
(A
Development Stage Company)
(formerly
M45 Mining Resources Inc.)
NOTES
TO UNAUDITED FINANCIAL STATEMENTS
September
30, 2010
Income taxes
The
Company follows the liability method of accounting for income taxes in
accordance with FASB ASC 740, “Income Taxes,” (“ASC 740”),
formerly SFAS No. 109, Accounting for Income Taxes.
Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax
bases and operating loss and tax credit carry forwards, if any. Deferred tax
assets and liabilities are measured using enacted tax rates expected to apply to
taxable income in the years in which those temporary differences are expected to
be recovered or settled. The effect on deferred tax assets and liabilities of a
change in tax rates is recognized in the Statements of Income in the period that
includes the enactment date.
The
Company’s policy is to record a valuation allowance against deferred tax assets,
when the deferred tax asset is not recoverable. The Company considers estimated
future taxable income or loss and other available evidence when assessing the
need for its deferred tax valuation allowance.
Uncertainty
in Income Taxes
The
Company follows ASC 740-10, “Accounting for Uncertainty in
Income Taxes” (“ASC 740-10”). This interpretation requires recognition
and measurement of uncertain income tax positions using a “more-likely-than-not”
approach. ASC 740-10 is effective for fiscal years beginning after December 15,
2006. Management has adopted ASC 740-10 for 2009, and they evaluate their tax
positions on an annual basis, and has determined that as of September 30, 2010,
no additional accrual for income taxes other than the federal and state
provisions and related interest and estimated penalty accruals is not considered
necessary.
Comprehensive income
(loss)
The
Company adopted ASC 220-10, “Reporting Comprehensive
Income,” (formerly SFAS No. 130). ASC 220-10 requires the reporting of
comprehensive income in addition to net income from operations.
Comprehensive
income is a more inclusive financial reporting methodology that includes
disclosure of information that historically has not been recognized in the
calculation of net income.
Foreign
Currency Translation
The
Company's functional currency is the United States dollar. In those instances
where the Company has foreign currency transactions, the financial statements
are translated to U.S. dollars in accordance with Financial Accounting Standard
Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 830, “Foreign Currency Maters.”
Monetary assets and liabilities denominated in foreign currencies are translated
using the exchange rate prevailing at the balance sheet date. Gains and losses
arising on translation or settlement of foreign currency denominated
transactions or balances are included in the determination of net income. The
Company has not entered into derivative instruments to offset the impact of
foreign currency fluctuations. The Company has had nominal translation or
transaction gains or losses of substance to reflect during the periods ended
September 30, 2010 and 2009.
NEURO-BIOTECH
CORP..
(A
Development Stage Company)
(formerly
M45 Mining Resources Inc.)
NOTES
TO UNAUDITED FINANCIAL STATEMENTS
September
30, 2010
Basic
and Diluted Net Income (Loss) Per Share
The
Company computes net income (loss) per share in accordance with ASC Topic 260,
“Earnings per Share”
which requires dual presentation of both basic and diluted earnings per share
(EPS) on the face of the income statement. Basic EPS is computed by dividing net
income (loss) attributable to common stockholders (numerator) by the weighted
average number of common shares outstanding (denominator) during the period. The
Company had no potential common stock instruments which would result in a
diluted loss per share.
Development Stage
Enterprise
The
Company currently has no revenues and is considered to be a development stage
company under the provisions of ASC Topic 915, "Development Stage
Entities." The Company has devoted substantially all of its efforts
to business planning, and development. Additionally, the Company has allocated a
substantial portion of its time and investment in bringing its product to the
market, and the raising of capital.
Reclassifications
Certain
amounts reported in the previous year’s consolidated financial statements have
been reclassified to conform to the current period’s presentation.
Recent
Accounting Pronouncements
In
December 2009, the FASB issued Accounting Standards Update (ASU) 2009-17, “Consolidations (FASB ASC Topic 810)
- Improvements to Financial Reporting by Enterprises Involved with Variable
Interest Entities,” which codifies FASB Statement No. 167, Amendments to
FASB Interpretation No. 46(R). ASU 2009-17 represents a revision to former FASB
Interpretation No. 46 (Revised December 2003), “Consolidation of Variable
Interest Entities,” and changes how a reporting entity determines when an entity
that is insufficiently capitalized or is not controlled through voting (or
similar rights) should be consolidated. The determination of whether a reporting
entity is required to consolidate another entity is based on, among other
things, the other entity’s purpose and design and the reporting entity’s ability
to direct the activities of the other entity that most significantly impact the
other entity’s economic performance. ASU 2009-17also requires a reporting entity
to provide additional disclosures about its involvement with variable interest
entities and any significant changes in risk exposure due to that involvement. A
reporting entity will be required to disclose how its involvement with a
variable interest entity affects the reporting entity’s financial statements.
ASU 2009-17 is effective at the start of a reporting entity’s first fiscal year
beginning after November 15, 2009, or the Company’s fiscal year beginning
January 1, 2010. Early application is not permitted. We have not yet determined
the impact, if any, which of the provisions of ASU 2009-15 may have on the
Company’s financial statements.
NEURO-BIOTECH
CORP..
(A
Development Stage Company)
(formerly
M45 Mining Resources Inc.)
NOTES
TO UNAUDITED FINANCIAL STATEMENTS
September
30, 2010
Recent
Accounting Pronouncements (Continued)
In May
2009, the FASB issued authoritative guidance for subsequent events, now codified
as FASB ASC Topic 855, “Subsequent Events,” which
establishes general standards of accounting for and disclosures of events that
occur after the balance sheet date but before the financial statements are
issued or are available to be issued. The guidance sets forth the circumstances
under which an entity should recognize events or transactions occurring after
the balance sheet date in its financial statements. The guidance also requires
the disclosure of the date through which an entity has evaluated subsequent
events and whether this date represents the date the financial statements were
issued or were available to be issued. The Company adopted this guidance
effective October 1, 2009 with no significant impact on the Company’s financial
statements or related footnotes.
In April
2009, the FASB provided additional guidance for estimating fair value in
accordance with FASB ASC Topic 820, “Fair Value Measurements and
Disclosures,” when the volume and level of activity for the asset or
liability have significantly decreased. This additional guidance re-emphasizes
that regardless of market conditions the fair value measurement is an exit price
concept and clarifies and includes additional factors to consider in determining
whether there has been a significant decrease in market activity for an asset or
liability. This guidance also provides additional clarification on estimating
fair value when the market activity for an asset or liability has declined
significantly. The scope of this guidance does not include assets and
liabilities measured under quoted prices in active markets. This guidance is
applied prospectively to all fair value measurements where appropriate and will
be effective for interim and annual periods ending after June 15, 2009. The
adoption of the provisions of this guidance did not have any material impact on
the Company’s financial statements.
In August
2009, the FASB issued Accounting Standards Update 2009-05 (ASU 2009-05), “Fair Value Measurements and
Disclosures (Topic 820) – Measuring Liabilities at Fair Value,” to amend
FASB ASC Topic 820, “Fair
Value Measurements and Disclosures,” to provide guidance on the
measurement of liabilities at fair value. The guidance provides clarification
that in circumstances in which a quoted market price in an active market for an
identical liability is not available, an entity is required to measure fair
value using a valuation technique that uses the quoted price of an identical
liability when traded as an asset or, if unavailable, quoted prices for similar
liabilities or similar assets when traded as assets. If none of this information
is available, an entity should use a valuation technique in accordance with
existing fair valuation principles. The Company adopted the guidance effective
October 1, 2009, and there was no material impact on the Company’s financial
statements or related footnotes.
ASC Topic
350, "Intangibles—Goodwill and
Other" amended the factors that should be considered in developing
renewal or extension assumptions used to determine the useful life of a
recognized intangible asset under previously issued goodwill and intangible
assets topics. This change was intended to improve the consistency between the
useful life of a recognized intangible asset and the period of expected cash
flows used to measure the fair value of the asset under topics related to
business combinations and other GAAP. The requirement for determining useful
lives must be applied prospectively to intangible assets acquired after the
effective date and the disclosure requirements must be applied prospectively to
all intangible assets recognized as of, and subsequent to, the effective date.
FSP SFAS No. 142-3 became effective for financial statements issued for fiscal
years beginning after December 15, 2008, and interim periods within those fiscal
years. The adoption of this guidance did not impact the Company’s financial
statements.
NEURO-BIOTECH
CORP..
(A
Development Stage Company)
(formerly
M45 Mining Resources Inc.)
NOTES
TO UNAUDITED FINANCIAL STATEMENTS
September
30, 2010
Recent
Accounting Pronouncements (Continued)
On
October 1, 2009, The Company adopted FASB ASC Topic 805 (ASC 805), “Business Combinations,”
which generally requires an acquirer to recognize the identifiable assets
acquired, liabilities assumed, contingent purchase consideration and any
noncontrolling interest in the acquiree at fair value on the date of
acquisition. It also requires an acquirer to recognize as expense most
transaction and restructuring costs as incurred, rather than include such items
in the cost of the acquired entity. For the Company, ASC 805 applies
prospectively to business combinations for which the acquisition date is on or
after October 1, 2009. The adoption of ASC 805 did not have a material impact on
the Company’s financial statements.
In April
2009, FASB issued FSP FAS 107-1 and APB 28-1, now codified in FASB ASC Topic
825-10-65, “Interim
Disclosures about Fair Value of Financial Instruments,” which amends U.S.
GAAP to require entities to disclose the fair value of financial instruments in
all interim financial statements. The additional requirements of this guidance
also require disclosure of the method(s) and significant assumptions used to
estimate the fair value of those financial instruments. Previously, these
disclosures were required only in annual financial statements. The additional
requirements of this guidance are effective for interim reporting periods ending
after June 15, 2009. The adoption of the additional requirements did not have
any financial impact on the Company’s financial statements.
In
January 2010, the FASB issued Accounting Standards Update 2010-06, “Fair Value Measurements and
Disclosures (Topic 820) - Improving Disclosures about Fair Value
Measurements” (ASU 2010-06), to require new disclosures related to
transfers into and out of Levels 1 and 2 of the fair value hierarchy and
additional disclosure requirements related to Level 3 measurements. The guidance
also clarifies existing fair value measurement disclosures about the level of
disaggregation and about inputs and valuation techniques used to measure fair
value. The additional disclosure requirements are effective for the first
reporting period beginning after December 15, 2009, except for the additional
disclosure requirements related to Level 3 measurements, which are effective for
fiscal years beginning after December 15, 2010. The adoption of the additional
requirements is not expected to have any financial impact on the Company’s
financial statements
Other
ASU’s that have been issued or proposed by the FASB ASC that do not require
adoption until a future date and are not expected to have a material impact on
the financial statements upon adoption.
NOTE
2: GOING CONCERN
The
accompanying financial statements have been prepared assuming the Company will
continue as a going concern. This contemplates the realization of assets and the
liquidation of liabilities in the normal course of business. As shown in these
financial statements, the Company has an accumulated deficit of $57,420,812 from
inception to September 30, 2010. The Company does not have any cash and relies
on notes payable at this point for cash flow. In addition, the Company used its
common stock to acquire 16 licenses that will be utilized to operate their new
business. The value of the licenses has been significantly impaired, and
represents approximately 90% of the Company’s assets at September 30, 2010. In
addition, the Company does not have operations or a source of revenue sufficient
to cover its operation costs and allow it to continue as a going concern. The
future of the Company is dependent upon its ability to obtain financing and upon
future profitable operations from the development of its new business. The
Company’s continuation as a going concern is dependent upon management either
individually or through the securing of additional notes to meet any costs and
expenses incurred. Management realizes that this situation may continue until
the Company obtains additional working capital through equity
financing.
NEURO-BIOTECH
CORP..
(A
Development Stage Company)
(formerly
M45 Mining Resources Inc.)
NOTES
TO UNAUDITED FINANCIAL STATEMENTS
September
30, 2010
NOTE
3: PROPERTY AND EQUIPMENT
Machinery
and equipment consist of the following:
September
30,
|
March
31,
|
Estimated
|
|||||||
2010
|
2010
|
Useful
Lives
|
|||||||
(unaudited)
|
|||||||||
Furniture
and equipment
|
$ | 108,743 | $ | 110,789 |
3 -
5 years
|
||||
Leasehold
improvements
|
13,329 | 13,329 |
3
years
|
||||||
122,072 | 124,118 | ||||||||
Less
accumulated depreciation
|
71,191 | 62,363 | |||||||
Property
and equipment, net
|
$ | 50,881 | $ | 61,755 |
Depreciation
of fixed assets utilized in research and development activities is included in
research and development expense. All other depreciation is included in general
and administrative expense. Depreciation expense for the six months
ended September 30, 2010 and 2009 was $10,874, and $10,124,
respectively.
NOTE
4: WEBSITE DEVELOPMENT COSTS
Website
development costs consist of the following:
September
30,
|
March
31,
|
Estimated
|
|||||||
2010
|
2010
|
Useful
Lives
|
|||||||
(unaudited)
|
|||||||||
Web
development cost
|
$ | 16,156 | $ | 16,156 |
3
years
|
||||
16,156 | 16,156 | ||||||||
Less
accumulated amortization
|
4,250 | 1,557 | |||||||
Web
development cost, net
|
$ | 11,906 | $ | 14,599 |
Amortization
of Web development cost utilized in research and development activities is
included in research and development expense. All other amortization is included
in general and administrative expense. Amortization expense for the three months
ended September 30, 2010 and 2009 was $2,693 and $4, respectively.
NEURO-BIOTECH
CORP..
(A
Development Stage Company)
(formerly
M45 Mining Resources Inc.)
NOTES
TO UNAUDITED FINANCIAL STATEMENTS
September
30, 2010
NOTE
5 – INTANGIBLE ASSETS
The
Company's intangible assets are defined as non-monetary long-term assets which
have no physical substance and are held for the production of goods and
provision of services, lease, operation or management. They are mainly
intellectual property rights assets, including trademarks, certificates and
manufacture license, design patents. Intangible assets are stated at actual cost
of acquisition, and are amortized over 25 years according to the beneficiaries
of the contract period. On April 30, 2010, it was determined that the licenses
did not have a value greater than par value and Management recorded an
impairment charge of $51,660,000 to bring the value of the licenses to $615,000
from the recorded fair value of $0.085 per hare that the 615,000,000 shares of
common stock were issued to acquire the licenses.
License
fees consists of the following:
September
30,
2010
|
March 31,
2010
|
Estimated
Useful
Lives
|
|||||||
(unaudited)
|
|
||||||||
License
fees
|
$ | 615,000 | $ | - |
25
years
|
||||
615,000 | - | ||||||||
Less
accumulated amortization
|
10,250 | - | |||||||
Intangible
asset, net
|
$ | 604,750 | $ | - |
Amortization
of the intangible assets for the three months ended September 30, 2010 and 2009
was $10,250 and $0, respectively.
NOTE
6: NOTES PAYABLE – RELATED PARTY
At
September 30, 2010, the Company was indebted to Northern Carrabean Stars, Inc.,
a shareholder of the Company for $456,150 plus accrued interest of $29,123. The
note bears interest at 6 % per annum and is payable on demand. The note was for
cash flow purposes for the Company. Squib & Waves Research Inc. and Northern
Carrabean Star Inc. have agreed to invest the sum of $2,000,000 in the Company
within fifteen (15) months from the date of April 30, 2010, as a direct and
proximate result of the above-styled license agreements. Northern Carrabean
Stars, Inc. acquired the debt from a former executive upon the acquisition of
the licenses by the Company.
NOTE 7: NOTES PAYABLE – NON-RELATED
PARTIES
The
Company and former debt holders entered into notes payable in the amount
$1,125,913. The amount was originally due the debt holders prior to a conversion
of this debt into shares of common stock. The common stock was returned to the
Company and cancelled in June 2010. The Company and the debt holders agreed to
new terms for the repayment of the debt. The notes all entered into on June 8,
2010, are for a period of one-year and accrued interest at 12% per year.
Interest expense for the six months ended September 30, 2010 and accrued as of
September 30, 2010 on these notes is $42,569.
NEURO-BIOTECH
CORP..
(A
Development Stage Company)
(formerly
M45 Mining Resources Inc.)
NOTES
TO UNAUDITED FINANCIAL STATEMENTS
September
30, 2010
NOTE 8: COMMON STOCK
The
Company has authorized capital stock of 1,000,000,000 shares of common stock
with a par value of $.001, of which 662,807,500 shares were issued and
outstanding as of September 30, 2010. The Company's common stock commenced
trading on January 27, 1999 on the OTC Bulletin Board (OTCBB) operated by the
National Association of Securities Dealers, Inc., under the symbol
"MRES."
During
the six months ended September 30, 2010, the Company issued 615,000,000 shares
of common stock at the then current market value of $52,275,000. The Company’s
management determined that the licenses that were acquired for the shares of
common stock had a fair value of $615,000 (par). The resulting impairment charge
of $51,660,000 was recorded at the time of the transaction.
The
Company also issued 15,000,000 shares of common stock for services rendered at a
value of $525,000 ($0.035) to a former executive, which is based on the value of
the stock on the day it was issued. In addition, the Company cancelled
13,154,296 shares of common stock that were initially issued as conversion of a
note payable, that have been returned by the recipients and agreed to by the
Company to reinstate the terms of the note payable and adjust the dates (see
Note 7). Another 7,159,090 shares of common stock were acquired as treasury
stock under the cost method for the acquisition of mining claims previously
expensed by the Company in 2007 and 2008. These treasury shares were
subsequently cancelled and returned to treasury. The value of the mineral rights
was $2,156,486 and is reflected in the statement of operations as an expense
that reduced the mining claims acquisition costs in the development stage
columns to $0. The Company received the shares back from the mining claim
company as the business of the Company changed and they no longer wish to pursue
this business.
As of
March 31, 2010 the Company had authorized to issue 55,000,000 shares of $.001
par value common stock and the Company’s board of directors approved the
increase in the authorized shares to 1,000,000,000.
Included
in the March 2009 a total of 8,895,000 shares were issued to vendors for
invoices due, and 550,000 shares issued to the officers and directors of the
company for services rendered. In addition, included in the March 2009 a total
8,164,356 shares were issued to convert a note payable.
NOTE 9: BASIC AND DILUTED NET LOSS PER
SHARE
Basic net
loss per common share is computed by dividing net loss by the weighted average
number of common shares outstanding during the period. Diluted net loss per
common share is computed giving effect to all dilutive potential common shares
that were outstanding during the period. Diluted potential common shares would
consist of incremental shares issuable upon exercise of stock options and
warrants. In computing diluted net loss per share for the six months ended
September 30, 2010 and 2009, there are no common stock equivalents.
NOTE 10: COMMITMENTS AND
CONTINGENCIES
The
Company is obligated under various operating lease agreements for office space.
Generally, the lease agreements require the payment of base rent plus
escalations for increases in building operating costs and real estate taxes.
Rental expense under operating leases totaled $0 and $10,500 for the six months
ended September 30, 2010 and 2009, respectively.
Squib
& Waves Research Inc. and Northern Carrabean Star Inc. have agreed to invest
the sum of $2,000,000 in the Company within fifteen (15) months from the date of
April 30, 2010, as a direct and proximate result of the above-styled license
agreements.
NEURO-BIOTECH
CORP..
(A
Development Stage Company)
(formerly
M45 Mining Resources Inc.)
NOTES
TO UNAUDITED FINANCIAL STATEMENTS
September
30, 2010
NOTE
11: INCOME TAXES
Income
taxes are accounted for under the asset and liability method in accordance with
FASB ASC 740, “Income
Taxes,” (“ASC 740”), formerly SFAS No. 109, “Accounting for Income Taxes.”
Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax
bases and operating loss and tax credit carry forwards, if any. Deferred tax
assets and liabilities are measured using enacted tax rates expected to apply to
taxable income in the years in which those temporary differences are expected to
be recovered or settled. The effect on deferred tax assets and liabilities of a
change in tax rates is recognized in the Statements of Income in the period that
includes the enactment date. A valuation allowance related to
deferred tax assets is recorded when it is more likely than not that some
portion or all of the deferred tax assets will not be realized.
Included
in the Company’s net deferred tax assets are approximately $1.9 million of
potential future tax benefits from prior unused tax
losses. Realization of these tax assets depends on sufficient
future taxable income before the benefits expire. It is not certain
that the Company will have sufficient future taxable income to utilize the loss
carryforward benefits before they expire. Therefore, an allowance has been
provided for the full amount of the net deferred tax asset.
The
provision for income taxes differs from the amount computed by applying the
statutory federal income tax rate to income before provision for income taxes.
The sources and tax effects of the differences for the periods presented are as
follows:
September
30,
|
||||||||
2010
|
2009
|
|||||||
Income
tax provision at the federal statutory rate
|
34 | % | 34 | % | ||||
Effect
of operating losses
|
-34 | % | -34 | % | ||||
0 | % | 0 | % |
Net
deferred tax assets consist of the following:
September
30,
|
||||
2010
|
||||
Gross
deferred tax asset
|
$ | 1,958,676 | ||
Valuation
allowance
|
(1,958,676 | ) | ||
Net
deferred tax asset
|
$ | - |
At
September 30, 2010, the Company has net operating loss (NOL carry forwards
totalling approximately $5,760,812. The carry forwards begin to expire in the
fiscal year 2030. Deferred tax assets have been reduced by a valuation allowance
because of uncertainties as to future recognition of taxable income to assure
realization.
NEURO-BIOTECH
CORP..
(A
Development Stage Company)
(formerly
M45 Mining Resources Inc.)
NOTES
TO UNAUDITED FINANCIAL STATEMENTS
September
30, 2010
NOTE
12—SUBSEQUENT EVENTS
As of
November 10, 2010, the Company has signed confidentiality agreements with
various interested parties, including a Spanish group representing the vast
majority of hospitals and private clinics in Spain. This group has shown a
particular appreciation for the distribution of all our blood tests. Seeing that
there is language and historical ties, all private clinics and private hospitals
located in South America will be automatically granted access.
ITEM
2.
|
MANAGEMENT
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS.
|
FORWARD-LOOKING
STATEMENTS
This
document contains “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. All statements other than statements
of historical fact are “forward-looking statements” for purposes of federal and
state securities laws, including, but not limited to, any projections of
earnings, revenue or other financial items; any statements of the plans,
strategies and objections of management for future operations; any statements
concerning proposed new services or developments; any statements regarding
future economic conditions or performance; any statements or belief; and any
statements of assumptions underlying any of the foregoing.
Forward-looking
statements may include the words “may,” “could,” “estimate,” “intend,”
“continue,” “believe,” “expect,” “anticipate” or other similar words. These
forward-looking statements present our estimates and assumptions only as of the
date of this report. Except for our ongoing securities laws, we do not intend,
and undertake no obligation, to update any forward-looking
statement.
Although
we believe that the expectations reflected in any of our forward-looking
statements are reasonable, actual results could differ materially from those
projected or assumed in any of our forward-looking statements. Our future
financial condition and results of operations, as well as any forward-looking
statements, are subject to change and inherent risks and uncertainties. The
factors impacting these risks and uncertainties include, but are not limited to:
i) changes in external factors or in our internal budgeting process which might
impact trends in our results of operations; ii) unanticipated working capital or
other cash requirements; iii) changes in our business strategy or an inability
to execute our strategy due to unanticipated changes in the industries in which
we operate; and iv) various competitive market factors that may prevent us from
competing successfully in the marketplace
The
following discussion of our financial condition and results of our operations
should be read in conjunction with the Financial Statements and Notes attached
thereto. Our current fiscal year ends March 31.
RISK
FACTORS
Our
auditor has raised a concern regarding our ability to continue as a going
concern. Neuro-Biotech is in the development stage and we have not
generated revenues since inception. We continue to incur operating
expenses, legal and accounting expenses, consulting fees, and marketing
expenses. These factors raise substantial doubt about our ability to
continue as a going concern.
BUSINESS
OVERVIEW
Business
of Issuer
Neuro-Biotech
Corp.’s, new strategy is focused on building shareholder value though the
removal of its mining business and to focus toward the realm of
neuroscience.
Neuro-Biotech
Corp. is a public neuroscience medical diagnostic enterprise involved in the
unique international niche of clinical neuroscience with the emphasis being to
rapidly develop and commercialize innovative and competitive diagnostic
products, with the goal of becoming a world leader in this market.
Neuro-Biotech's
vision is to be the first neuro-pharmaceutical companies to bring to market
analytical diagnostic products specifically designed to facilitate early
diagnosis, and monitoring. This will allow follow-up treatments, through a
targeted therapeutic approach to the major psycho-social environmental diseases
related to the neuro-psycho-endocrine and immune systems.
Business
of Issuer (continued)
Neuro-Biotech
Corp. Business aims are to: develop and commercialize quantitative diagnostic
blood tests for early diagnosis, monitoring and follow-up for a large range of
neuroscience and stress related disorders in order to accommodate unsatisfied
medical needs; develop its own extensive portfolio of diagnostic tests and
natural brain neuroceuticals; enter into strategic alliances with large
distributors in order to accelerate its worldwide market penetration in general
and, in particular some revenue interesting niche markets, by
initiating sales through its own sales force; and by forming business
partnerships with private laboratory networks on a worldwide basis.
The
Company expects to encounter intense competition in its efforts to become a
leader in mining exploration. Many large and small companies compete in this
intense market. The principal means of competition vary among categories and
business groups; however, the value of the territories is certainly to be taken
into consideration. The competing entities will have significantly greater
experience, financial resources, facilities, contacts and managerial expertise,
than the Company.
Results
of Operation
For the
six month periods ended September 30, 2010 and 2009, the Company reported $-0-
revenue, respectively. For the six months ended September 30, 2010,
total expenses were $50,158,605, a $50,105,819, or 99%, increase from the
$52,786 reported for the same period in 2009. Approximately $42,698 of this
increase is attributable to an increase in consulting and professional fees,
with the majority of the increase attributable to the impairment charge of
$51,660,000 on the intangible assets and the $525,000 in common stock issued for
professional fees. Total expenses reported for the six months ended
September 30, 2010 and 2009 primarily represent expenses incurred for general
administration, occupancy (rent, utilities, and other related costs at $0 and
$3,500 monthly, respectively), impairment, amortization and depreciation,
consulting, travel, filing fees, professional services, and interest against a
note payable.
Liquidity
and Capital Resources
Neuro-Biotech
is a development stage company, and through the date of this Report, it has not
generated revenue from operations. The Company does not have
sufficient cash or cash equivalents to satisfy its cash requirements for the
next twelve months.
The
Company has an accumulated deficit of $57,420,812. The Company continues to
report negative stockholders’ equity and does not have sufficient assets to pay
current liabilities as they come due. These matters raise substantial doubt
about the Company’s ability to continue as a going concern. The Company’s
consolidated financial statements do not include any adjustments that might
result from the outcome of this uncertainty.
The
Company’s continued existence is dependent upon several factors; including the
ability to attain profitable business operations and generate a positive cash
flow. Management plans to raise additional capital investment in the Company,
and it believes the necessary investment will be forthcoming within the next six
month period. There can be no assurance that equity financings will be available
to the Company in the future that will be obtained on terms satisfactory to the
Company. In the event that the Company’s efforts to obtain such financing prove
unsuccessful, the Company may be required to abandon its current business goals
and cease operations.
Neuro-Biotech’s
current management have indicated a willingness to continue rendering services
to the Company, to advance sufficient funds to meet our operational needs, and
not to demand payment of sums owed. The Company believes, therefore, that it can
continue as a going concern in the near future.
Off-Balance
Sheet Arrangements
For the
period ended September 30, 2010, the Company had no off-balance sheet
arrangements.
ITEM 3. Quantitative and
Qualitative Disclosures about Market Risk
Not
required for smaller reporting companies as defined in Rule 12b-2 of the
Exchange Act.
ITEM 4. Controls and
Procedures
Our
management, under the supervision of and with the participation of the chief
executive officer and chief financial officer performed an evaluation of the
effectiveness of our disclosure controls and procedures (as defined in Rules
13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (the “Exchange
Act”)) as of September 30, 2010, the period covered by this
report. Based on this evaluation, our principal executive officer and
principal financial officer concluded that our disclosure controls were not
effective as of that date.
Except
for the material weaknesses in internal control over financial reporting as
referenced in our Annual Report on Form 10-K for the fiscal year ended March 31,
2010 (and further described above), no other material weaknesses were identified
in our evaluation of internal controls as of September 30, 2010.
In light
of the foregoing, once we have the adequate funds, management plans to develop
the following additional procedures to help address these material
weaknesses:
The
Company has created and refined a structure in which critical accounting
policies and estimates are identified, and together with other complex areas, is
subject to multiple reviews by accounting personnel. In addition, we plan to
enhance and test our month-end and year-end financial close process.
Additionally, management will increase its review of our disclosure controls and
procedures. We also intend to develop and implement policies and procedures for
the financial close and reporting process, such as identifying the roles,
responsibilities, methodologies, and review/approval process.
Hire a
qualified accounting staff to manage, review, and verify the day-to-day
accounting and the financial statements.
We
believe these actions will remediate the material weaknesses by focusing
additional attention and resources in our internal accounting functions.
However, the material weaknesses will not be considered remediated until the
applicable remedial controls operate for a sufficient period of time and
management has concluded, through testing, that these controls are operating
effectively.
Changes
in Internal Control over Financial Reporting
Remediation
plans established and initiated by management during the fiscal year ended March
31, 2010 continue to be implemented. There were no other changes in
our internal controls over financial reporting during the three months ended
September 30, 2010 that have materially affected or are reasonably likely to
materially affect, our internal controls over financial reporting.
While we
have implemented or continue to implement our remediation activities, we believe
it will take multiple quarters of effective application of the control
activities, including adequate testing of such control activities, in order for
us to revise our conclusion regarding the effectiveness of our internal controls
over financial reporting.
ITEM
1. Legal Proceedings
We are
not aware of any pending or threatened litigation against us that we expect will
have a material adverse effect on our business, financial condition, liquidity,
or operating results. However, legal claims are inherently uncertain and we
cannot assure you that we will not be adversely affected in the future by legal
proceedings.
ITEM 1A. Risk Factors
Smaller
reporting companies are not required to provide the information required by this
item.
ITEM 2. Unregistered Sales of Equity Security
and Use of Proceeds
There
were no sales or unregistered securities during the period covered by this
report.
ITEM 3. Defaults Upon Senior
Securities
There
were no defaults upon senior securities during the period covered by this
report.
ITEM 4. Submission of Matters to a Vote of
Security Holders
There
were no matters submitted to a vote of security holders during the period
covered by this report.
ITEM 5. Other Information
None
ITEM 6. Exhibits
(a) Exhibits.
The
following exhibits are filed with this report:
3.1
|
Articles
of Incorporation of Neuro-Biotech Corp., as filed with the Nevada
Secretary of State on July 16,
1990.
|
3.2
|
Bylaws
of Neuro-Biotech Corp.. 14.1 Code of Ethics (incorporated by reference to
Exhibit 14.1 of the Company's Quarterly Report on Form 10-QSB for the
period ended March 31, 2004 and filed with the Securities and Exchange
Commission on May 17, 2004).
|
31.1
|
Certification
of the Chief Executive Officer pursuant to Rule
13a-14(a)/15d-14(a)
|
31.2
|
Certification
of the Chief Financial Officer pursuant to Rule
13a-14(a)/15d-14(a)
|
32.1
|
Certification
of the Chief Executive Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
|
32.2
|
Certification
of the Chief Financial Officer pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
|
(b)
Reports on
Form 8-K
There
were no Form 8-K filings made during the period covered by this
report.
SIGNATURES
In
accordance with the requirements of the Exchange Act, the registrant caused this
report to be signed on its behalf by the undersigned, thereunto duly
authorized.
Dated:
November 15, 2010
|
By:
|
/s/
Dr Claude Poulin
|
|
Dr
Claude Poulin, CEO and Director
|
Dated:
November 15, 2010
|
By:
|
/s/
Michel Yamani
|
|
Michel
Yamani, Secretary/Treasurer,
and Principal Financial Officer |