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EX-31 - SECTION 302 CERTIFICATION - Powder River Coal Corp. | section302certification.htm |
EX-32 - SECTION 1350 CERTIFICATION - Powder River Coal Corp. | section1350certification.htm |
United States
Security 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 June 30, 2011
Or
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT
For the transition period from ______________ to ___________.
Commission file number 333-168920
TITAN HOLDING GROUP, INC.
(Name of small business issuer in its charter)
Florida
(State or other jurisdiction of incorporation or organization)
27-3079741
(I.R.S. Employer Identification No.)
123 W. 1st Street, Suite 675, Casper, Wyoming 82601
(Address of principal executive offices and Zip Code)
Registrants telephone number, including area code: (307) 459-0571
Indicate by check mark whether the registrant (1) 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.
(X) Yes (___) No
Indicate by check mark whether the resistant 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). (___) Yes (_X_) No
Indicate by check mark whether the registrant is a large accelerated filer, and 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. (Check one):
Large accelerated filer (__) Accelerated filer (__) Non-accelerated filer (__) Smaller reporting company (_X_)
(Do not check if a 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 (__) No (_X_). The number of shares of the issuers common stock, par value $0.0000001 per share, outstanding as of August 12, 2011 was 10,000,000.
TITAN HOLDING GROUP, INC.
(A Development Stage Entity)
QUARTERLY REPORT ON FORM 10-Q
Quarter Ended June 30, 2011
TABLE OF CONTENTS
| Page |
PART I FINANCIAL INFORMATION | |
Item 1. Financial Statements | 3 |
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operation | 12 |
Item 3. Quantitative and Qualitative Disclosures About Market Risk | 14 |
Item 4. Controls and Procedures | 14 |
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PART II OTHER INFORMATION |
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Item 1. Legal Proceedings | 15 |
Item 1A. Risk Factors | 15 |
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 15 |
Item 3. Defaults Upon Senior Securities | 15 |
Item 4. (Removed and Reserved) | 15 |
Item 5. Other Information | 15 |
Item 6. Exhibits | 15 |
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Signatures | 17 |
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2
Part I FINANCIAL INFORMATION
Item 1. Financial Statements
TITAN HOLDING GROUP, INC.
(A Development Stage Entity)
INDEX TO FINANCIAL STATEMENTS
| Page |
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Balance Sheet at June 30, 2011 (unaudited) and December 31, 2010 (audited) | 4 |
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Statements of Operations for the three and six months ended June 30, 2011 and 2010 (unaudited) and the period October 9, 2009 (date of inception) through June 30, 2011 (unaudited) | 5 |
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Statements of Changes in Shareholders Equity for the period October 9, 2009 (date of inception) through June 30, 2011 (unaudited) | 6 |
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Statements of Cash Flows for the period ended June 30, 2011 and 2010 (unaudited) and the period October 9, 2009 (date of inception) through June 30, 2011 (unaudited) | 7 |
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Notes to Financial Statements | 8 |
3
TITAN HOLDING GROUP INC. (A Development Stage Entity) BALANCE SHEET | |||||
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| Dollar figures are exact. |
| June 30, |
| June 30, |
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| 2011 |
| 2010 |
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| (Unaudited) |
| (Audited) |
Assets |
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Current assets |
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| Cash | $ | 251 | $ | 251 |
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| Total current assets |
| 251 |
| 251 |
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| Total assets | $ | 251 | $ | 251 |
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Liabilities and Shareholder Equity |
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Current Liabilities |
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| Trade payable, related party (Note 3) |
| 52,220 |
| 41,077 |
| Total current liabilities |
| 52,220 |
| 41,077 |
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| Total liabilities |
| 52,220 |
| 41,077 |
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Shareholders equity (Note 5) |
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| Preferred stock, $.0000001 par value Authorized 250,000,000 shares |
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| -1- shares issued and outstanding |
| --- |
| --- |
| Common stock, $.0000001 par value Authorized 50,000,000,000 shares |
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| 10,000,000 and 10,000,000 issued and outstanding respectively |
| 1 |
| 1 |
| Additional paid-in-capital |
| 39 |
| 39 |
| (Accumulated deficit) retained earnings during development stage |
| (52,009) |
| (40,866) |
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| Total shareholders equity (deficit) |
| (51,969) |
| (40,826) |
| Total liabilities and shareholders equity | $ | 251 | $ | 251 |
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See accompanying notes to financial statements |
4
TITAN HOLDING GROUP, INC. (A Development Stage Entity STATEMENT OF OPERATIONS (Unaudited) | |||||||||||||||||
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| October 9, | |||||
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| 2009 | |||||
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| For the Three Months Ended |
| For the Six Months Ended |
| (Inception) Through | |||||||||
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| June 30, |
| June 30, |
| March 31, | |||||||||
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| 2011 |
| 2010 |
| 2011 |
| 2010 |
| 2011 | |||||
Revenue |
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| Net Sales | $ | --- | $ | 550 | $ | --- | $ | 1,095 | $ | 10,371 | ||||||
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| Total revenue |
| --- |
| 550 |
| --- |
| 1,095 |
| 10,371 | |||||
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Cost and expenses |
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| Cost of revenues |
| --- |
| --- |
| --- |
| 284 |
| 5,936 | ||||||
| Marketing samples |
| --- |
| 1,207 |
| --- |
| 10,353 |
| 10,352 | ||||||
| Professional |
| 5,900 |
| --- |
| 9,650 |
| --- |
| 31,000 | ||||||
| Rents |
| --- |
| 3,600 |
| 900 |
| 5,400 |
| 11,700 | ||||||
| Selling, general & administrative |
| --- |
| 1,533 |
| 593 |
| 2,498 |
| 7,735 | ||||||
| Research & development |
| --- |
| --- |
| --- |
| 900 |
| 900 | ||||||
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| Total operating expenses |
| 5,900 |
| 6,340 |
| 11,143 |
| 19,435 |
| 67,623 | |||||
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| Income (Loss) from operations |
| (5,900) |
| (5,790) |
| (11,143) |
| (18,340) |
| (57,252) | |||||
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| Income tax provision (Note 4) |
| --- |
| --- |
| --- |
| --- |
| --- | ||||||
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| Net income (loss) | $ | (5,900) | $ | (5,790) | $ | (11,143) | $ | (18,340) | $ | (57,252) | |||||
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Income (loss) per common share basic and diluted | $ | 0.00 | $ | 0.00 | $ | 0.00 | $ | 0.00 |
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Basic and diluted weighted average number of |
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| Common shares outstanding |
| 10,000,000 |
| 6,000,000 |
| 10,000,000 |
| 6,000,000 |
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| See accompanying notes to financial statements |
5
TIAN HOLDING GROUP, INC. (A Development Stage Entity) STATEMENT OF CHANGES IN SHAREHOLDERS EQUITY From Inception on October 9, 2009 through June 30, 2011 | |||||||||||||||||
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| Development Stage |
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| Additional |
| Retained |
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| Preferred Stock |
| Common Stock |
| Paid-in |
| Earnings |
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| Shares |
| Par Value |
| Shares |
| Par Value |
| Capital |
| (Deficit) |
| Total | ||||
Balance at October 9, 2009 (inception) | --- | $ | --- |
| --- | $ | --- | $ | --- | $ | --- | $ | --- | ||||
Issuance of common stock in payment of organizational expenses on behalf of the company (Note 5) | --- |
| --- |
| 6,000,000 |
| 0.60 |
| --- |
| --- |
| 1 | ||||
Net Income | --- |
| --- |
| --- |
| --- |
| --- |
| 1,438 |
| 1,438 | ||||
Balance at December 31, 2009 | --- | $ | --- |
| 6,000,000 | $ | 0.60 | $ | --- | $ | 1,438 | $ | 1,439 | ||||
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Sale of 4,000,000 shares of common stock to various accredited investors at $0.00001 per share, August 1,2010 (Note 5) | --- |
| --- |
| 4,000,000 |
| 0.40 |
| 39 |
| --- |
| 39 | ||||
Net Loss (Audited | --- |
| --- |
| --- |
| --- |
| --- |
| (42,304) |
| (42,304) | ||||
Balance at December 31, 2010 (Audited) | --- | $ | --- |
| 10,000,000 | $ | 1 | $ | 39 | $ | (40,866) | $ | (40,826) | ||||
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Issuance of 1 share of Class A Convertible Preferred stock at Par, $0.0000001 to a related party for Control | 1 |
| --- |
| --- |
| --- |
| --- |
| --- |
| --- | ||||
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Net Loss for the Period ended June 30, 2011 (Unaudited) | --- |
| --- |
| --- |
| --- |
| --- |
| (11,143) |
| (11,143) | ||||
Balance at June 30, 2011 (Unaudited) | 1 | $ | --- | $ | 10,000,000 | $ | 1 | $ | 39 | $ | (52,009) | $ | (51,969) | ||||
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See accompanying notes to financial statements |
6
TITAN HOLDING GROUP, INC. (A Development Stage Entity) STATEMENT OF CASH FLOWS (Unaudited) | ||||||||||||
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| October 9, 2009 | ||
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| (Inception) | ||
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| For the Six Months Ended |
| Through | ||||
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| June 30, |
| June 30, |
| June 30, | ||
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| 2011 |
| 2010 |
| 2011 | ||
Cash flows from operating activites |
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| Net income (loss) | $ | (11,143) | $ | (18,340) | $ | (52,009) | |||||
| Adjustments to reconcile net loss to net cash |
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| Provided by (used in) operating activities |
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| Account receivable |
| --- |
| 1,439 |
| --- | |||
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| Trade payable |
| 11,143 |
| 16,901 |
| 52,220 | |||
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| Net cash provided by (used in) operating activities |
| --- |
| --- |
| 211 | ||
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Cash flows from financing activities |
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| Proceeds from stock sales |
| --- |
| --- |
| 40 | |||||
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| Net cash provided by financing activities |
| --- |
| --- |
| 40 | ||
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| Net change in cash and cash equivalents |
| --- |
| --- |
| 251 | ||
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Cash and cash equivalents |
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| Beginning of period |
| 251 |
| --- |
| --- | |||||
| End of period | $ | 251 | $ | --- | $ | 251 | |||||
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See accompanying notes to financial statements |
7
TITAN HOLDING GROUP, INC.
(A Development Stage Entity)
NOTES TO FINANCIAL STATEMENTS
NOTE 1. Nature of Business
ORGANIZATION
Titan Holding Group, Inc., a Florida corporation, (the "Company"). The Company provides marketing of KC 9000® primarily to independent producers, refiners of petroleum products and other market participants located in the Midwest of the United States of America (the U.S.). Historically, we conducted initial marketing and sales activities to take advantage of opportunities related to time, location and quality of various crude oil treatment projects. We have conducted our operations primarily in Kansas with a focus on global marketing opportunities.
The Company is headquartered in Fort Wayne, Indiana.
NOTE 2. Significant Accounting Policies
GOING CONCERN
The Companys financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating cost and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.
In order to continue as a going concern, the Company will need, among other things, additional capital resources. Managements plan to obtain such resources for the Company include, obtaining capital from management and significant stockholders sufficient to meet its minimal operating expenses. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans.
There is no assurance that the Company will be able to obtain sufficient additional funds when needed or that such funds, if available, will be obtainable on terms satisfactory to the Company. In addition, profitability will ultimately depend upon the level of revenues received from business operations. However, there is no assurance that the Company will attain profitability. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
USE OF ESTIMATES
The Company prepares its financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP"), which require 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 reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
CASH
The Company considers all highly liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. There were no cash equivalents at June 30, 2011 or December 31, 2011.
8
DEFERRED INCOME TAXES AND VALUATION ALLOWANCE
The Company accounts for income taxes under FASB ASC 740 Income Taxes. Under the asset and liability method of FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. 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. Under FASB ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.
SHARE-BASED EXPENSES
FASB ASC 718 Compensation Stock Compensation prescribes accounting and reporting standards for all stock-based payments award to employees, including employee stock options, restricted stock, employee stock purchase plans and stock appreciation rights, may be classified as either equity or liabilities. The Company determines if a present obligation to settle the share-based payment transaction in cash or other assets exists. A present obligation to settle in cash or other assets exists if: (a) the option to settle by issuing equity instruments lacks commercial substance or (b) the present obligation is implied because of an entitys past practices or stated policies. If a present obligation exists, the transaction should be recognized as a liability; otherwise, the transaction should be recognized as equity the Company accounts for stock-based compensation issued to non-employees and consultants in accordance with the provisions of FASB ASC 505-50 Equity Based Payments to Non-Employees. Measurement of share-based payment transactions with non-employees is based on the fair value of whichever is more reliably measurable: (a) the goods or services received; or (b) the equity instruments issued. The fair value of the share-based payment transaction is determined at the earlier of performance commitment date or performance completion date. There have been no shares issued as compensation to date.
RECENTLY IMPLEMENTED STANDARDS
In June 2009, the FASB issued new accounting guidance that established the FASB Accounting Standards Codification (Codification), as the single source of authoritative GAAP to be applied by nongovernmental entities, except for the rules and interpretive releases of the SEC under authority of federal securities laws, which are sources of authoritative GAAP for SEC registrants. The FASB will no longer issue new standards in the form of Statements, FASB Staff Positions, or Emerging Issues Task Force Abstracts; instead the FASB will issue Accounting Standards Updates. Accounting Standards Updates will not be authoritative in their own right as they will only serve to update the Codification. These changes and the Codification itself do not change GAAP. This new guidance became effective for interim and annual periods ending after September 15, 2009. Other than the manner in which new accounting guidance is referenced, the Codification did not have an effect on the Companys consolidated financial statements.
In January 2010, the FASB issued ASU No. 2010-06 regarding fair value measurements and disclosures and improvement in the disclosure about fair value measurements. This ASU requires additional disclosures regarding significant transfers in and out of Levels 1 and 2 of fair value measurements, including a description of the reasons for the transfers. Further, this ASU requires additional disclosures for the activity in Level 3 fair value measurements, requiring presentation of information about purchases, sales, issuances, and settlements in the reconciliation for fair value measurements. This ASU is effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years. We are currently evaluating the impact of this ASU; however, we do not expect the adoption of this ASU to have a material impact on our financial statements.
9
In February 2010, the FASB issued ASU No. 2010-09 regarding subsequent events and amendments to certain recognition and disclosure requirements. Under this ASU, a public company that is a SEC filer, as defined, is not required to disclose the date through which subsequent events have been evaluated. This ASU is effective upon the issuance of this ASU. The adoption of this ASU did not have a material impact on our financial statements.
NOTE 3. BALANCE SHEET COMPONENTS
PAYABLES TO RELATED PARTY
Since inception, the cash account was maintained through the accounts of an inactive LLC (Freedom Formulations, LLC), wholly-owned by the sole shareholder of Titan Holdings Group, Brian Kistler. Gross sales are owed to Titan Holding Group, net of amounts paid out for product from this account. During the period, from inception, advances have been made to the Company by the sole shareholder for cash flow funding. The amounts advanced are temporary in nature, demand notes with no repayment terms and is non-interest bearing.
On June 20, 2011 Andrew Grant loaned $3,650 to the Company for general expenses. The loan is secured by a promissory note. The terms of the note is %0 interest with no repayment schedule.
Management will review these arrangements, in future period, to determine if terms are required to be formalized to reflect the economic relationship. The balance due to the related parties at June 30, 2011 and December 31, 2010 was $52,220 and $41,077, respectively.
NOTE 4. INCOME TAXES
The Company has not recognized an income tax benefit for its operating losses generated based on uncertainties concerning its ability to generate taxable income in future periods. The tax benefit for the periods presented is offset by a valuation allowance established against deferred tax assets arising from the net operating losses and other temporary differences, the realization of which could not be considered more likely than not. In future periods, tax benefits and related deferred tax assets will be recognized when management considers realization of such amounts to be more likely than not. As of June 30, 2011 and December 31, 2010 the Company incurred losses of $11,143 and $42,304, respectively. The net operating loss in the amount of $46,109, resulting from operating activities, result in deferred tax assets of approximately $16,138 at the effective statutory rates. The deferred tax asset has been off-set by an equal valuation allowance.
NOTE 5. SHAREHOLDERS' EQUITY
COMMON STOCK
The authorized common stock of the Company consists of 50,000,000,000 shares with a par value of $0.0000001. There were 10,000,000 and 10,000,000 shares of common stock issued and outstanding at June 30, 2011 and at December 31, 2010, respectively.
PREFERRED STOCK
The authorized preferred stock of the Company consists of 250,000,000 shares with a par value of $0.0000001. The Company issued one (1) share of Class A Convertible Preferred Stock to Andrew Grant on June 17, 2011 for control.
10
NET INCOME (LOSS) PER COMMON SHARE
Net income (loss) per share is calculated in accordance with FASB ASC 260, Earnings Per Share. The weighted-average number of common shares outstanding during each period is used to compute basic earning or loss per share. Diluted earnings or loss per share is computed using the weighted average number of shares and diluted potential common shares outstanding. Dilutive potential common shares are additional common shares assumed to be exercised.
Basic net income (loss) per common share is based on the weighted average number of shares of common stock outstanding at June 30, 2011 and at December 31, 2010. As of June 30, 2011 and at December 31, 2010, the Company had no dilutive potential common shares.
NOTE 6. COMMITMENTS AND CONTINGENCY
LEASE ARRANGEMENTS
The Company rents office space in Indiana under an operating lease agreement which expired on January 31, 2011. After January 31, 2011 the Company has no rent obligation.
Rent expense for the period ended June 30, 2011 and for the year ended December 31, 2010 was $900 and $9,900, respectively.
The future minimum annual rent payable under such leases approximates the following:
Year Ending December 31 |
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2011 | $ | 900 |
2012 and thereafter |
| 0 |
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| $ | 900 |
NOTE 7. WARRANTS AND OPTIONS
As of June 30, 2011 there are not warrants or options outstanding to acquire any additional shares of common stock of the company
NOTE 8. SUBSEQUENT EVENTS
On July 5, 2011, Titan Holding Group, Inc. entered into a Subscription Agreement with Evpatoria Holdings, Ltd., an entity maintaining its principal address at Trust Company Complex, Ajeltake Road, Ajeltake Island, Marshall Islands. To issue 120,000 Units of the Companys unregistered Securities (as hereinafter defined) at the aggregate price of US $30,000.00 ($0.25 per Unit).
Each Unit consists of one share of common stock of the Company (each, a Share) and one common share purchase warrant (a Warrant) subject to adjustment. One Warrant shall be non-transferable and shall entitle the holder thereof to purchase one share of common stock of the Company (each, a Warrant Share), as presently constituted, for a period of three (3) years commencing from the purchase date of July 5, 2011, at a price per Warrant Share of US$1.25 per Warrant Share. The Shares, Warrants and the Warrant Shares are referred to as the Securities.
11
Item 2. Managements Discussion and Analysis of Financial Condition and Results of Operations
The following Managements Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. Our actual results could differ materially from those anticipated in these forward-looking statements as a result of various factors, including those set forth under Risk Factors and elsewhere in this report. The managements discussion, analysis of financial condition, and results of operations should be read in conjunction with our financial statements and notes thereto contained elsewhere in this prospectus.
Our Business Overview
Titan Holding Group, Inc., a Florida corporation, (the "Company"). The Company provides marketing of KC 9000® primarily to independent producers, refiners of petroleum products and other market participants located in the Midwest of the United States of America (the U.S.). Historically, we conducted initial marketing and sales activities to take advantage of opportunities related to time, location and quality of various crude oil treatment projects.
Results of Operation for the six months ended June 30, 2011 and June 30, 2010
Revenues
Revenues for October 9, 2009, inception, through the period ending June 30, 2011 in the amount of $10,371 are derived from sales of KC 9000® to independent producers in South East Kansas and South West Missouri. Revenues for the six months ended June 30, 2011 and the six months ended June 30, 2010 were $-0- and $1,095, respectively.
Operating Expenses
The Company expenses for six months ended June 30, 2011 and the six months ended June 30, 2010, were $11,143 and $19,435, respectively. Operating expense consists of the following:
Cost of revenues. Cost of revenues for the six months ended June 30, 2011 and the six months ended June 30, 2010 were $-0- and $284, respectively. Cost of revenues is related to the chemicals and shipping expenses incurred to purchase the KC 9000®.
Marketing samples. Marketing samples for the six months ended June 30, 2011 and the six months ended June 30, 2010 were $-0- and $10,353, respectively. Marketing samples are related to the expense incurred while testing KC 9000® on various crude oil samples and asphalt shingle reclamation testing.
Selling, general and administrative expenses. Selling, general and administrative expenses for the six months ended June 30, 2011 and six months ended June 30, 2010 were $593 and $2,498, respectively. This result is from postage and delivery, and telephone expense.
Professional Fees. Professional fees for the six months ended June 30, 2011 and six months ended June 30, 2010 were $9,650 and $-0-, respectively. This results from expenses associated with filing the appropriate forms with the Securities and Exchange Commission.
Rents. Rents for the six months ended June 30, 2011 and six months ended June 30, 2010 were $900 and $5,400, respectively.
12
Research & Development. Research & Development expense for the six months ended June 30, 2011 and six months ended June 30, 2010 were $-0- and $900, respectively. This result is from laboratory testing services paid to Blackstone Labs.
Net Loss. Net loss for the six months ended June 30, 2011 and six months ended June 30, 2010 was $11,143 and $18,340, respectively.
Financial Condition
Total assets. Total assets at June 30, 2011 and December 31, 2010 were $251 and $251, respectively. Total assets consist of cash.
Total liabilities. Total liabilities at June 30, 2011 and December 31, 2010 were $52,220 and $41,077 respectively. Total liabilities at June 30, 2011consist of trade payables of $750 and due to related parties of $51,470
Liquidity and Capital Resources
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern which contemplates, among other things, the realization of assets and satisfaction of liabilities in the ordinary course of business.
The Company has a net loss for the six months ended June 30, 2011 and six months ended June 30, 2010 of $11,143 and $18,340, respectively. Because of the absence of positive cash flows from operations, the Company will require additional funding for continuing the development and marketing of products. These factors raise substantial doubt about the Companys ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.
We are presently able to meet our obligations as they come due. At June 30, 2011 we had working capital deficit of $51,969, or the amount by which our current liabilities exceed our current assets. Our working capital deficit was due to the results of operations.
Net cash used in operating activities for the six months ended June 30, 2011 and six months ended June 30, 2010 was $-0- and $-0-, respectively. Net cash used in investing activities for the six months ended June 30, 2011 and six months ended June 30, 2010 was $-0- and $-0-, respectively. Net cash provided by financing activities for the six months ended June 30, 2011 and six months ended June 30, 2010 was $-0- and $-0-, respectively.
We anticipate that our future liquidity requirements will arise from the need to fund our growth from operations, pay current obligations and future capital expenditures. The primary sources of funding for such requirements are expected to be cash generated from operations and raising additional funds from the private sources and/or debt financing. However, we can provide no assurances that we will be able to generate sufficient cash flow from operations and/or obtain additional financing on terms satisfactory to us, if at all, to remain a going concern. Our continuation as a going concern is dependent upon our ability to generate sufficient cash flow to meet our obligations on a timely basis and ultimately to attain profitability. Our CEO has agreed to continue to fund our operations as needed over the next 12 months until cash flows are sufficient to sustain operations. Pursuant to the agreement it is binding on our CEO and he has agreed to only the return of his capital with no interest or other consideration. In addition, our Plan of Operation for the next twelve months is to raise capital to continue to expand our operations. Although we are not presently engaged in any capital raising activities, we anticipate that we may engage in one or more private offering of our companys securities after the completion of this filing. We would most likely rely upon the transaction exemptions from registration provided by Regulation D, Rule 506 or conduct
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another private offering under Section 4(2) of the Securities Act of 1933. See Note 2 Going Concern in our
financial statements for additional information as to the possibility that we may not be able to continue as a going concern.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Because we are a Smaller Reporting Company, we are not required to provide the information required by this item.
Item 4. CONTROLS AND PROCEDURES.
(a) Managements Annual Report on Internal Control over Financial Reporting.
The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. The Companys internal control over financial reporting is a process designed under the supervision of the Companys Chief Executive Officer and Chief Financial Officer to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Companys financial statements for external purposes in accordance with U.S. generally accepted accounting principles.
As of June 30, 2011, under the supervision and with the participation of our management, we conducted an evaluation of the effectiveness of the design and operations of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) promulgated under the Securities Exchange Act of 1934. Based on this evaluation, management concluded that our financial disclosure controls and procedures were not effective so as to timely identify, correct and disclose information required to be included in our Securities and Exchange Commission (SEC) reports due to the Companys limited internal resources and lack of ability to have multiple levels of transaction review. Through the use of external consultants and the review process, management believes that the financial statements and other information presented herewith are materially correct.
The Companys disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives. The Companys management, including its Chief Executive Officer and Chief Financial Officer, does not expect that its disclosure controls and procedures, or its internal controls will prevent all error and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefit of controls must be considered relative to their costs. Because of the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within the Company have been detected.
This report shall not be deemed to be filed for purposes of Section 18 of the Securities Exchange Act of 1934, or otherwise subject to the liabilities of that section, and is not incorporated by reference into any filing of the Company, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Changes in internal controls
There have been no changes in the Companys internal control over financial reporting during the period ended June 30, 2011 that have materially affected, or are reasonably likely to materially affect, the Companys internal controls over financial reporting.
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PART II OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
We are not currently a party to any legal proceedings nor are any contemplated by us at this time.
Item 1A. RISK FACTORS
Because we are a Smaller Reporting Company, we are not required to provide the information required by this item.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
NONE
Item 3. Defaults Upon Senior Securities
NONE
ITEM 4. [REMOVED AND RESERVED]
ITEM 5. Other Information.
NONE.
ITEM 6. Exhibits.
Exhibit Number and Description
Location Reference
(a)
Financial Statements
Filed Herewith
(b)
Exhibits required by Item 601, Regulation S-K;
(3.0)
Articles of Incorporation, Bylaws
(3.1)
Articles of Incorporation filed
See Exhibit Key
with S-1Registration Statement
on August 18, 2010
(3.2)
Bylaws filed with S-1 Registration
See Exhibit Key
Statement on August 18, 2010
(10.0)
Material Contracts
(10.1)
Kistler Demand Note dated October 9, 2009
See Exhibit Key
(10.2)
Sales Representative Agreement
See Exhibit Key
dated October 9, 2009
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(11.0)
Statement re: computation of per share
Note 5 to
Earnings
Financial Stmts.
(31.1)
Certificate of Chief Executive Officer
Filed herewith
Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
(31.2)
Certificate of Chief Financial Officer
Filed herewith
Pursuant to Section 302 of the
Sarbanes-Oxley Act of 2002
(32.1)
Certification of Chief Executive Officer
Filed herewith
pursuant to 18 U.S.C. § 1350,
as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
(32.2)
Certification of Chief Financial Officer
Filed herewith
pursuant to 18 U.S.C. § 1350,
as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
Exhibit Key
3.1
Incorporated by reference herein to the Companys Form S-1
Registration Statement filed with the Securities and Exchange
Commission on August 18, 2010.
3.2
Incorporated by reference herein to the Companys Form S-1
Registration Statement filed with the Securities and Exchange
Commission on August 18, 2010.
10.1
Incorporated by reference herein to the Companys Form S-1
Registration Statement filed with the Securities and Exchange
Commission on August 18, 2010.
10.2
Incorporated by reference herein to the Companys Form S-1
Registration Statement filed with the Securities and Exchange
Commission on August 18, 2010.
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Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, there unto duly authorized.
TITAN HOLDING GROUP, INC.
NAME | TITLE | DATE |
|
|
|
/s/ Brian Kistler | Principal Executive and Director | August 12, 2011 |
Brian Kistler |
|
|
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