Attached files

file filename
EX-31 - PetLife Pharmaceuticals, Inc.mtech_ex31.htm
EX-32 - PetLife Pharmaceuticals, Inc.mtech_ex32.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM 10-Q


[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended November 30, 2010

[   ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from to

COMMISSION FILE NUMBER:000-52445

Modern Renewable Technologies, INC.
(Exact name of small business issuer as specified in its charter)
 
Nevada
 
33-1133537
(State or other jurisdiction of incorporation or organization)
 
(IRS Employer Identification No.)
 
 
13520 Oriental St, Rockville, Md 20853
(Address of principal executive offices)
 
202-536-5191
(Registrants telephone number, including area code)
 
  __________
(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. [X] Yes [   ] No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). [X] Yes [ ] No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company; as defined within Rule 12b-2 of the Exchange Act.

[   ] Large accelerated filer
[   ] Accelerated filer
[   ] Non-accelerated filer
[X] Smaller reporting company

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). [   ] Yes [X] No

The number of shares outstanding of each of the issuer's classes of common equity as of  January 19, 2011: 9,215 shares of the issuers $.001 par value common stock issued and outstanding.





 
 

 

MODERN RENEWABLE TECHNOLOGIES, INC.
(A  DEVELOPMENT STAGE C OMPANY )

Contents

 
Page
 
Number
 
3
          Balance Sheets (unaudited)
 
     Item 6 Exhibits

















 
2

 

PART I.FINANCIAL INFORMATION
 
Item 1. Financial Statements
 
MODERN RENEWABLE TECHNOLOGIES, INC.
(A development Stage Company)
BALANCE SHEETS
(unaudited)


   
November 30,
   
August
31,
 
   
2010
   
2010
 
             
ASSETS
           
             
Current Assets
           
   
 
   
 
 
Prepaid expenses
  $ 1,105     $ 434  
TOTAL ASSETS
  $ 1,105     $ 434  
                 
LIABILITIES AND STOCKHOLDERS’ DEFICIT
               
                 
Current Liabilities
               
                 
                 
Accounts payable and accrued liabilities
  $ 133,733     $ 122,738  
Due to shareholders
    107,396       102,052  
Other loans
    342,226       337,726  
                 
TOTAL LIABILITIES
    583,355       562,516  
                 
Stockholders’ Deficit
               
Preferred Stock, $0.001 par value, 100,000,000 shares authorized
               
None issued
    -       -  
Common Stock, 750,000,000 common shares authorized with a par value of $0.001, 9,215  common shares issued and outstanding
    9       9  
Additional paid-in capital
    401,376       401,376  
Deficit accumulated during the development  stage
    (983,635 )     (963,467 )
                 
Total Stockholders’ Deficit
    (582,250 )     (562,082 )
                 
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT
  $ 1,105     $ 434  





See accompanying summary of  notes to the unaudited financial statements

 
3

 

MODERN RENEWABLE TECHNOLOGIES, INC.
(A Development Stage Company)
STATEMENTS OF EXPENSES
(unaudited)

   
For the Three Months ended
   
For the Three Months ended
   
April 5, 2002 (Inception) through
 
   
November 30,
   
November 30,
   
November 30
 
   
2010
   
2009
   
2010
 
                   
Expenses:
                 
General and administrative
  $ 11,590     $ 92,644     $ 1,292,922  
                         
Loss from operations
    (11,590 )     (92,644 )     (1,292,922 )
Interest
    (8,578 )     (8,408 )     (90,063 )
Debt forgiveness income
    -       -       399,350  
                         
NET LOSS
  $ (20,168 )   $ (101,052 )   $ (983,635 )
                         
                         
Net loss per share-basic and diluted
  $ (2.19 )   $ (11.36 )     N/A  
                         
Weighted average shares outstanding-basic and diluted
    9,215       8,897       N/A  




 
 

 




See accompanying summary of  notes to the unaudited financial statements

 
4

 

MODERN RENEWABLE TECHNOLOGIES, INC.
(A Development Stage Company)
STATEMENTS OF CASH FLOWS
(unaudited)

   
FOR THE THREE MONTHS ENDED
   
April 5, 2002 (Inception) through
 
   
November 30,
   
November 30,
   
November 30,
 
   
2010
   
2009
   
2010
 
                   
CASH FLOWS FROM OPERATING ACTIVITIES
                 
                   
Net loss
  $ (20,168 )   $ (101,052 )   $ (983,635 )
                         
Adjustments to reconcile net loss to
                       
cash used in operating activities
                       
      Debt forgiveness income
    -       -       (399,350 )
      Stock issued for services
    -       7,072       325,072  
      Note payable for services rendered
    4,500       -       4,500  
Change in:
                       
Prepaid expenses
    (671 )     4,437       (1,105 )
Accounts payable and accrued liabilities
    10,995       21,953       135,708  
NET CASH USED IN OPERATING ACTIVITIES
    (5,344 )     (67,590 )     (918,810 )
                         
CASH FLOWS FROM FINANCING ACTIVITIES
                       
Shareholder loans, net
    5,344       2,208       135,094  
Finance contracts, net
    -       -       306,648  
Related party loans, net
    -       65,382       312,952  
Other loans, net
    -       -       87,803  
Share subscription collected
    -       -       76,313  
                         
NET CASH PROVIDED BY FINANCING ACTIVITIES
    5,344       67,590       918,810  
                         
NET CHANGE IN CASH
    -       -       -  
                         
CASH AT BEGINNING OF PERIOD
    -       -       -  
                         
CASH AT END OF PERIOD
  $ -     $ -     $ -  
NON-CASH FINANCING ACTIVITIES
                       
                         
Reclass from Other loans to Due to Related Party
  $ -     $       $ 94,671  
Reclass from Accruals to Due to Related Party
  $ -     $       $ 1,975  
Reclass from Due to Related Party to Other Loans
  $ -     $       $ 322,619  
Supplemental Disclosures
                       
                         
Interest paid
  $ -     $ -     $ -  
Income taxes paid
  $ -     $ -     $ -  

 
See accompanying summary of  notes to the unaudited financial statements

 
5

 


MODERN RENEWABLE TECHNOLOGIES, INC.
(A Development Stage Company)
NOTES TO UNAUDITED  FINANCIAL STATEMENTS


NOTE 1 – BASIS OF PRESENTATION

The accompanying unaudited interim financial statements of Modern Renewable Technologies, Inc. have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with Modern Renewable Technologies audited 2010 annual financial statements and notes there to contained in Modern Renewable Technologies Annual Report filed with the SEC on form 10-K. In the opinion of management all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the result of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements, which would substantially duplicate the disclosure required in Modern Renewable Technologies 2010 financial statements have been omitted.

NOTE 2 – GOING CONCERN

The accompanying financial statements have been prepared assuming that Modern Renewable Technologies will continue as a going concern. As shown in the accompanying financial statements, Modern Renewable Technologies generated a loss for the three months ended November 30, 2010, and has an accumulated deficit at November 30, 2010. These conditions raise substantial doubt as to Modern Renewable Technologies ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if Modern Renewable Technologies is unable to continue as a going concern. Management intends to finance these deficits be selling its common stock.

NOTE 3 – RELATED PARTY TRANSACTIONS

During the three months period ended November 30, 2010, the current President advanced funds totaling $5,344 to the company. The balance at November 30, 2010 is $107,396 bears no interest, is unsecured and has no specific terms of repayment.

NOTE 4 – OTHER LOANS AND OFF-BALANCE SHEET OBLIGATIONS

As of August 31, 2010, there was a total of $337,726 of other loans. All of these loans have a term of one year, bear interest of 10% and are unsecured.  

On September 14, 2010 the Company signed a promissory note with JPF Securities Law, LLC in the amount of $7,500 for certain legal fees. This Note is subject to interest at 10% annum and payable on September 14, 2011. As of November 30, 2010 JPF Securities Law, LLC had rendered services for $4,500. The balance of this Promissory Note ($3,000) has been treated as an “Off-Balance Sheet Obligation” and is not recorded in the financial statements for the quarter ended November 30, 2010 since the company is not legally responsible for the liability if no services are provided.



 
6

 

Item 2 - Management's Discussion and Analysis of Financial Condition and Results of Operations

The following information specifies certain forward-looking statements of management of the company. Forward-looking statements are statements that estimate the happening of future events and are not based on historical fact. Forward-looking statements may be identified by the use of forward-looking terminology, such as “may”, “shall”, “could”, “expect”, “estimate”, “anticipate”, “predict”, “probable”, “possible”, “should”, “continue”, or similar terms, variations of those terms or the negative of those terms. The forward-looking statements specified in the following information have been compiled by our management on the basis of assumptions made by management and considered by management to be reasonable. Our future operating results, however, are impossible to predict and no representation, guaranty, or warranty is to be inferred from those forward-looking statements.

The assumptions used for purposes of the forward-looking statements specified in the following information represent estimates of future events and are subject to uncertainty as to possible changes in economic, legislative, industry, and other circumstances. As a result, the identification and interpretation of data and other information and their use in developing and selecting assumptions from and among reasonable alternatives require the exercise of judgment. To the extent that the assumed events do not occur, the outcome may vary substantially from anticipated or projected results, and, accordingly, no opinion is expressed on the achievability of those forward-looking statements. We cannot guaranty that any of the assumptions relating to the forward-looking statements specified in the following information are accurate, and we assume no obligation to update any such forward-looking statements.

Critical Accounting Policies and Estimates

Our Management’s Discussion and Analysis of Financial Condition and Results of Operations section discusses our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. On an on-going basis, management evaluates its estimates and judgments, including those related to revenue recognition, accrued expenses, financing operations, and contingencies and litigation. Management bases its estimates and judgments on historical experience and on various other factors that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. The most significant accounting estimates inherent in the preparation of our financial statements include estimates as to the appropriate carrying value of certain assets and liabilities which are not readily apparent from other sources.

These accounting policies are described at relevant sections in this discussion and analysis and in the notes to the financial statements included in our Quarterly Report on Form 10-Q for the period ended November 30, 2010.

Results of Operations

For the three months ended November 30, 2010, as compared to the three months ended November 30, 2009.

Revenues. We have not earned any revenues to date.

Operating Expenses and Net Loss. Our net loss of $20,168 for the three months period ended November 30, 2010, was solely comprised of general and administrative expenses and interest associated with our loans payable. By comparison, our net loss of $101,052 for the three months period ended November 30, 2009, was comprised of general and administrative expenses and interest associated with our loans payable. We anticipate our accounting and legal expenses will also increase as a result of our ongoing reporting requirements under the Securities Exchange Act of 1934 and the increased merger and acquisitions activity.




 
7

 


Liquidity and Financial Condition

During the three-month period ending November 30, 2010 the Company’s cash position was unchanged beginning and ending with no cash. Cash used by operating activities totaled $5,344; and cash provided by financing activities for the period was $5,344from shareholder loans.

As of November 30, 2010, we had no cash  on hand. Since our inception, we have used our common stock and loans to raise money for our operations and for our property acquisitions. We have not generated any revenues to date and are dependent upon obtaining financing to pursue our plan of operation.

Over the last three months, we have continued to experienced difficulties in raising capital. We believe our inability to raise significant additional capital through equity or debt financings is due to various factors, including, but not limited to, a tightening in the equity and credit markets. As a result, we have funded our operations through loans from our current and prior Presidents.

We anticipate spending approximately $100,000 over the next twelve months in pursuing our plan of operation. We have a working capital deficit of $582,250 and we have not earned any revenues to date and do not anticipate earning revenues until we have completed commercial development of our anticipated products. Accordingly, we will require substantial additional financing in order to fund our plan of operation. We anticipate that any additional financing will likely be in the form of equity financing as substantial debt financing will likely not be as available at this stage of our business.

During 2009 and 2010, we incurred significant professional costs associated with the audit of our financial statements and our reporting requirements. We expect that the legal and accounting costs of being a public company will continue to impact our liquidity and we may need to obtain funds to pay those expenses. Other than the anticipated increases in legal and accounting costs due to the reporting requirements of being a public company, we are not aware of any other known trends, events or uncertainties, which may affect our future liquidity.




 
8

 


Plan of Operations

Modern Renewable Technologies, Inc. is a company currently seeking opportunities in the green building products industry.

On July 10, 2009 we signed a renewed non-binding Memorandum of Understanding to enter into an exclusive licensing and distribution agreement with EcoBlu Products, Inc. to distribute their Ecoblu line of green building products in the Caribbean, Central and South American markets. While we have since decided against moving forward with EcoBlu Products, we intend to continue to pursue potential business opportunities in this growing sector. There is a steady stream of new ideas, products and technologies in the green building products industry in which Modern Renewable Technologies would like to partake in. We will continue to focus on the green building products industry.

We intend to target green building product manufactures that have innovative green building products which will be first to market. We hope to avoid the competitive green building products that are dominated by our competition.  Our positioning strategy is first to come to an agreement with an innovative product new to market which will capture an audience keen on environmentally responsible energy efficient building. In order to obtain exclusivity, we hope to obtain the sole contractual rights to distribute a line of green building products.
 
This past fiscal year we were unable to secure new opportunities in the green building products sector. We continue to be optimistic about the green building products space and will continue to focus our efforts on securing new opportunities in the sector. We have not generated any revenues to date. We are strictly a service-oriented company, with no bricks-and-mortar features other than the corporate office.

Because the Company is still developing its current strategy, the Company’s operating expenses will largely consist of professional fees. For the fiscal year 2010, we anticipate there will be no revenue generated and therefore the Company will operate at a loss. If the Company is able to become a distributor of green building products, funding will be necessary to fulfill any contractual obligations we may enter into.


Off-Balance Sheet Arrangements

On September 14, 2010 the Company signed a Promissory note with JPF Securities Law, LLC in the amount of $7,500 for certain legal fees. This Note is subject to interest at 10% annum and payable on September 14, 2011. As of November 30, 2010 JPF Securities Law, LLC had rendered services for $4,500. The balance of this Promissory Note ($3,000) has been treated as an “Off-Balance Sheet Obligation” and is not recorded in the financial statements for the quarter ending November 30, 2010 since the company is not legally responsible for the liability if no services are provided.

 



 
9

 


Item 3 - Quantitative and Qualitative Disclosures About  Market Risk

Not Applicable

Item 4T - Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our Principal Executive Officer and Principal Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures, or “disclosure controls,” pursuant to Exchange Act Rule 15d-15(b). Disclosure controls are controls and procedures designed to reasonably ensure that information required to be disclosed in our reports filed under the Exchange Act, such as this quarterly report, is recorded, processed, summarized and reported within the time periods specified in the U.S. Securities and Exchange Commission’s rules and forms. Disclosure controls include, without limitation, controls and procedures designed to ensure that information required to be disclosed in our reports filed under the Exchange Act is accumulated and communicated to our management, including our principal executive officer and principal financial officer, or persons performing similar functions, as appropriate, to allow timely decisions regarding required disclosure. Based upon this evaluation, our principal executive officer concluded that our disclosure controls and procedures (as defined in Rule 15d-15(e) under the Exchange Act) were not effective due to adjustments.

Changes in Internal Controls

During the most recently completed fiscal quarter, there has been no change in our internal control over financial reporting in connection with the evaluation required by Rule 15d-15(d) under the Exchange Act that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Internal control systems, no matter how well designed and operated, have inherent limitations. Therefore, even a system which is determined to be effective cannot provide absolute assurance that all control issues have been detected or prevented. Our systems of internal controls are designed to provide reasonable assurance with respect to financial statement preparation and presentation.











 
10

 


Part II - OTHER INFORMATION

Item 1 - Legal Proceedings

No legal proceedings were initiated or served upon the Company in the period ending November 30, 2010.

From time to time the Company may be named in claims arising in the ordinary course of business. Currently, no legal proceedings or claims, other than those disclosed above, are pending against or involve the Company that, in the opinion of management, could reasonably be expected to have a material adverse effect on its business and financial condition.

Item 2 - Unregistered Sales of Equity Securities and Use of Proceeds

None, for the period ending November 30, 2010.

Item 3 - Defaults Upon Senior Securities

None, for the period ending November 30, 2010.

Item 4 - Submission of Matters to a Vote of Security Holders

None for the period ending November 30, 2010.

Item 5 - Other Information

None for the period ending November 30, 2010.

Item 6 - Exhibits and Reports

Exhibits

Modern Renewable Technologies, Inc. includes herewith the following exhibits:

31.1    
Certification of Principal Executive Officer and Principal Financial Officer (Rule 13a-14(a)/15(d)-14(a))
 
32.1     
Certification of Principal Executive Officer and Principal Financial Officer (18 U.S.C. 1350)

 





 
11

 



In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Modern Renewable Technologies, Inc.
Registrant
 
Date: January 19, 2011 
 
       By: 
 
/s/ Randy White
       
Randy White, President 
       
Principal Executive Officer 
 
Date: January 19, 2011 
 
       By: 
 
/s/ Randy White
       
Randy White, Treasurer, 
       
Controller, Principal Financial Officer 

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Date: January 19, 2011 
 
By: 
 
/s/ Randy White
       
Randy White, President and Director 
       
Principal Executive Officer 
 
Date: January 19, 2011 
 
By: 
 
/s/ Randy White
       
Randy White, Treasurer,
       
Controller, Principal Financial Officer 





 
 
 
 
 
 
 
 
 
 

 






 
12