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EXCEL - IDEA: XBRL DOCUMENT - GENERAL CANNABIS CORPFinancial_Report.xls

U.S. SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

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FORM 10-Q/A


AMENDMENT NO. 1

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x   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended June 30, 2011


¨   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. 333-163342


PROMAP CORPORATION

(Name of registrant in its charter)


Colorado

  

20-8096131

(State or other jurisdiction of incorporation or formation)

   

(I.R.S. employer identification number)


7060B South Tucson Way, Centennial, Colorado  80112

(Address of principal executive offices)

 

(720) 990-0510

(Registrant’s telephone number, including area code) 


Not Applicable

(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.

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).  

 ¨ 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. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.


Large accelerated filer  ¨

 

Accelerated filer  ¨

Non-accelerated filer    ¨

(Do not check if a smaller reporting company)

 

Smaller reporting company  x


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

¨  Yes   x  No


Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.  On August 12, 2011, there were 9,724,000 shares of Common Stock issued and outstanding.




PROMAP CORPORATION

FORM 10-Q


TABLE OF CONTENTS


PART I.  FINANCIAL INFORMATION

 

Page

 

 

 

 

Item 1.

Financial Statements

 

3

 

  Balance sheets

 

3

 

  Statements of operations (unaudited)

 

4

 

  Statements of cash flows (unaudited)

 

5

 

  Notes to unaudited consolidated financial statements

 

6-7

 

 

 

 

Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

 


8

 

 

 

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

 

9

 

 

 

 

Item 4.

Controls and Procedures

 

9

 

 

 

 

PART II.  OTHER INFORMATION

 

10

 

 

 

 

Item 1.

Legal Proceedings

 

10

 

 

 

 

Item 1A.

Risk Factors

 

10

 

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

10

 

 

 

 

Item 3.

Defaults Upon Senior Securities

 

10

 

 

 

 

Item 4.

(Removed and Reserved)

 

10

 

 

 

 

Item 5.

Other Information

 

10

 

 

 

 

Item 6.

Exhibits

 

10

 

 

 

 

 

Signatures

 

11

 

 

 

 






2





PART I—FINANCIAL INFORMATION


Item 1.

Financial Statements.


PROMAP CORPORATION
BALANCE SHEETS

(06/30/2011 Unaudited)

 

 

 

 

 

12/31/2010

06/30/2011

 

 

 

ASSETS

 

 

 

 

 

Current Assets:

 

 

  Cash

15,361    

83,087    

  Accounts receivable-related party-net

23,512    

18,632    

    Total Current Assets

38,873    

101,719    

 

 

 

    Total Assets

38,873    

101,719    

 

 

 

Current Liabilities:

 

 

  Accrued payables

100    

15    

  Income tax payable

1,318    

2,694    

    Total current liabilities

1,418    

2,709    

 

 

 

    Total Liabilities

1,418    

2,709    

 

 

 

Stockholders' Equity:

 

 

  Preferred stock

0[1]

0[1]

  Common stock

20,000[2]

76,050[3]

  Additional paid in capital

24,000    

24,000    

  Retained earnings

-6,545    

-1,040    

 

 

 

    Total Stockholders' Equity

37,455    

99,010    

 

 

 

    Total Liabilities and Stockholders' Equity

38,873    

101,719    


[1]  No par value; 5,000,000 shares authorized; no shares issued and outstanding.

[2]  No par value; 100,000,000 shares authorized; 9,500,000 shares issued and outstanding.

[3]  No par value; 100,000,000 shares authorized; 9,724,200 shares issued and outstanding.



The accompanying notes are an integral part of the financial statements.



3






PROMAP CORPORATION
STATEMENT OF OPERATIONS (UNAUDITED)

 

 

 

 

 

 

 

04/01/2010 to

06/30/2010

04/01/2011 to 06/30/2011

01/01/2010 to  06/30/2010

01/01/2011 to 06/30/2011

 

 

 

 

 

Revenue:

 

 

 

 

  Sales (net of returns) - related party

8,334

13,669

26,448

32,241

  Cost of goods sold

0

0

0

308

  Gross profit

8,334

13,669

26,448

31,933

 

 

 

 

 

Operating expenses:

 

 

 

 

  General and administrative

3,460

6,664

11,964

25,112

Total operating expenses

3,460

6,664

11,964

25,112

 

 

 

 

 

Income (loss) from operations

4,874

7,005

14,484

6,821

 

 

 

 

 

Other income (expense):

 

 

 

 

  Interest income

6

39

11

60

  Other income

0

0

0

0

Total other income (expense)

6

39

11

60

 

 

 

 

 

Income (loss) before provision for income taxes

4,880

7,044

14,495

6,881

 

 

 

 

 

Provision for income tax

1,276

1,376

3,499

1,376

 

 

 

 

 

Net income (loss)

3,604

5,668

10,996

5,505

 

 

 

 

 

Net income (loss) per share (basic and fully diluted)

0

0

0

0

 

 

 

 

 

Weighted average number of common shares outstanding

9,500,000

9,724,200

9,500,000

9,686,833



The accompanying notes are an integral part of the financial statements.



4







PROMAP CORPORATION
STATEMENTS OF CASH FLOWS (UNAUDITED)

 

 

 

 

 

01/01/2010 to 06/30/2010

01/01/2011 to 06/30/2011

 

 

 

Cash flows from operating activities:

 

 

  Net income (loss)

10,996

5,505

 

 

 

Adjustments to reconcile net loss to net cash provided by (used for) operating activities:

 

 

  Donated services

3,000

0

  Accounts receivable-related party-net

926

4,880

  Accrued payables

3,499

1,291

Net cash provided by (used for) operating activities

18,421

11,676

 

 

 

Cash flows from investing activities:

 

 

  Net cash provided by (used for) investing activities

0

0

 

 

 

Cash flows from financing activities:

 

 

  Sales of common stock

0

56,050

Net cash provided by (used for) financing activities

0

56,050

 

 

 

Net increase (decrease) in cash

18,421

67,726

 

 

 

Cash at the beginning of the period

28,131

15,361

 

 

 

Cash at the end of the period

46,552

83,087

 

 

 

Schedule of non-cash and financing activities:

 

 

  None

 

 

 

 

 

Supplemental disclosure:

 

 

  Cash paid for interest

0

0

  Cash paid for income taxes

0

0



The accompanying notes are an integral part of the financial statements.





5









6



PROMAP CORPORATION

NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)



NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES


Promap Corporation (the “Company”), was incorporated in the State of Colorado on November 12, 1989. The Company sells oil and gas maps to oil and gas industry businesses.


Basis of Presentation


The accompanying unaudited financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and disclosures required by generally accepted accounting principles for complete financial statements. All adjustments which are, in the opinion of management, necessary for a fair presentation of the results of operations for the interim periods have been made and are of a recurring nature unless otherwise disclosed herein. The results of operations for such interim periods are not necessarily indicative of operations for a full year.


Use of Estimates


The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect 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 revenues and expenses during the reporting period. Actual results could differ from those estimates.


Cash and cash equivalents


The Company considers all highly liquid investments with an original maturity of three months or less as cash equivalents.


Accounts receivable


The Company reviews accounts receivable periodically for collectability and establishes an allowance for doubtful accounts and records bad debt expense when deemed necessary.


Property and equipment


Property and equipment are recorded at cost and depreciated under accelerated or straight line methods over each item's estimated useful life.



7



PROMAP CORPORATION

NOTES TO FINANCIAL STATEMENTS

(UNAUDITED)



NOTE 1. ORGANIZATION, OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued):


Revenue recognition


Revenue is recognized on an accrual basis as earned under contract terms. Specifically, revenue from product sales is recognized subsequent to a customer ordering a product at an agreed upon price, delivery has occurred, and collectability is reasonably assured.


Income tax


The Company accounts for income taxes pursuant to ASC 740. Under ASC 740 deferred taxes are provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and operating loss carryforwards and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.


Net income (loss) per share


The net income (loss) per share is computed by dividing the net income (loss) by the weighted average number of shares of common outstanding. Warrants, stock options, and common stock issuable upon the conversion of the Company's preferred stock (if any), are not included in the computation if the effect would be anti-dilutive and would increase the earnings or decrease loss per share.


Financial Instruments


The carrying value of the Company’s financial instruments, as reported in the accompanying balance sheets, approximates fair value.


Long-Lived Assets


In accordance with ASC 350, the Company regularly reviews the carrying value of intangible and other long-lived assets for the existence of facts or circumstances, both internally and externally, that suggest impairment. If impairment testing indicates a lack of recoverability, an impairment loss is recognized by the Company if the carrying amount of a long-lived asset exceeds its fair value.








8







Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations.


The following discussion and analysis should be read in conjunction with the Financial Statements (unaudited) and Notes to Financial Statements (unaudited) filed herein.


BUSINESS OVERVIEW


Promap Corporation was incorporated in the State of Colorado on November 12, 1987. We are an independent GIS and custom draft energy mapping company for the oil and gas industry in the United States and Canada.  We provide hard copy and digital format oil and gas production maps which cover various geologic basins in numerous areas including:  Denver Basin, Powder River Basin, Michigan Basin, Williston Basin, Arkoma Basin, Illinois Basin, Cincinnati Arch, Uintah - Piceance Basins and The Nevada Basin.  We also provide maps of the North American Coal Basin and Coal Bed Methane Activity and North American Devonian - Mississippian Shale Map with detailed pipeline locations.


RESULTS OF OPERATION FOR THE THREE MONTHS ENDED JUNE 30, 2011 AS COMPARED TO THE THREE MONTHS ENDED JUNE 30, 2010.


Revenues for the three months ended June 30, 2011 were $13,669 as compared to the revenues of $8,334 for the three months ended June 30, 2010.  The revenues increased 64% due to the increase in oil and gas drilling activity of the Company’s clients.


The only operating expenses during these periods consisted of general and administrative expenses which were $6,664 in the three months ended June 30, 2011 as compared to $3,460 for the three months ended June 30, 2010.  The $3,204 increase was due to the increase in the Company’s business during the most recent three months.


The net income for the three months ended June 30, 2011 was $7,044 as compared to a net income of $4,880 for the three months ended June 30, 2010.  The primary reason for the increase in net income was due to the increased level of sales.


RESULTS OF OPERATION FOR THE SIX MONTHS ENDED JUNE 30, 2011 AS COMPARED TO THE SIX MONTHS ENDED JUNE 30, 2010.


Revenues for the six months ended June 30, 2011 were $32,241 as compared to the revenues of $26,448 for the six months ended June 30, 2010.  The revenues increased 22% due to the increase in drilling activity of the Company’s clients during the last six months.


The only operating expenses during these periods consisted of general and administrative expenses which were $25,112 in the six months ended June 30, 2011 as compared to $11,964 for the six months ended June 30, 2010.  The $13,148 increase was due to one time legal and accounting expenses related to the initial public offering and the increase in the Company’s business during the most recent six months.

 

The net income for the six months ended June 30, 2011 was $5,505 as compared to a net income of $10,996 for the six months ended June 30, 2010.  The reason for the $5,491 reduction in net income was primarily due to the one time legal and accounting expenses related to the initial public offering.


LIQUIDITY AND CAPITAL RESOURCES


As of June 30, 2011, we had $99,010 of working capital compared to $37,455 of working capital as of December 31, 2010.


Net cash provided by operating activities during the six months ended June 30, 2011 was $11,676 as compared to net cash provided by operating activities in the six months ended June 30, 2010 of $18,421.  The primary reason for the reduction in this item was that the operating income for the six months ended June 30, 2011 was $5,491 lower than the comparable period in 2010.


Net cash provided by financing activities during the six months ended June 30, 2011 was $56,050 as compared to no cash provided by or used for financing activities in the six months ended June 30, 2010.  The $56,050 represents the proceeds from the Company’s initial public offering.


CONTRACTUAL OBLIGATIONS


None.




9





OFF-BALANCE SHEET ARRANGEMENTS


We do not have any off-balance sheet arrangements (as that term is defined in Item 303 of Regulation S-K) that are reasonably likely to have a current or future material effect on our financial condition, revenue or expenses, results of operations, liquidity, capital expenditures or capital resources.


Item 3.

Quantitative and Qualitative Disclosures About Market Risk.


Not applicable.


Item 4.

Controls and Procedures.


(a)  Evaluation of Disclosure Controls and Procedures.


Our Chief Executive Officer and Principal Financial Officer have evaluated the effectiveness of the design and operations of our disclosure controls and procedures as of the end of the period covered by this quarterly report, and have concluded that our disclosure controls and procedures are adequate.


(b)  Changes in Internal Control over Financial Reporting.


No change in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.



10





PART II – OTHER INFORMATION

 

Item 1.

Legal Proceedings.


None.


Item 1A.

Risk Factors.


Not applicable.


Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.


We received a total of $56,050 in gross proceeds from the sale of 224,200 shares of common stock in our initial public offering which was closed on January 21, 2011.  The effective date of the registration statement for our initial public offering was June 25, 2010, and the SEC file number was 333-163342.  The offering terminated on January 21, 2011, which was the end of the offering period, and 575,800 shares which were registered for sale by the Company were not sold.


From the effective date of the registration statement (June 25, 2010) through March 15, 2011 we incurred and paid approximately $12,239 in expenses in connection with the offering.  There were no payments made to officers or directors of the Company or to affiliates of the Company.  The net offering proceeds after deducting the above expenses was $43,811.  Since the offering was closed, the only other expenditure from the offering proceeds through June 30, 2011was the payment of $4,000 to the Company’s auditor in connection with the audit for the fiscal year ended December 31, 2010.  The remaining funds were placed in an interest bearing savings account.


The registration statement also registered 1,500,000 shares of common stock to be offered by selling shareholders.  The selling shareholders have not started offering any of their shares for sale.


Item 3.

Defaults Upon Senior Securities.

 

Not applicable.


Item 4.

(Removed and Reserved)


Item 5.

Other Information.


Not applicable.


Item 6.

Exhibits.

 

(a)  Exhibits required by Item 601 of Regulation S-K.

 

Exhibit

 

Description

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31.1

 

Certification of CEO and Principal Executive Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) - Previously filed.

 

 

 

31.2

 

Certification of CFO and Principal Financial and Accounting Officer pursuant to Rule 13a-14(a) or Rule 15d-14(a) - Previously filed.

 

 

 

32.1

 

Certification of CEO and Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Previously filed.

 

 

 

32.2

 

Certification of CFO and Principal Financial and Accounting Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 - Previously filed.

 

 

 

101

 

Interactive Data File - filed herewith.

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SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

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PROMAP CORPORATION

 

 

 

 

 

 

Date:  August 19, 2011

By:

/s/ Steven A. Tedesco

 

 

Steven A. Tedesco, President and CEO

(Principal Executive Officer)

 

 

 

 

 

 

Date:  August 19, 2011

By:

/s/ Robert W. Carington, Jr.

 

 

Robert W. Carington, Jr., CFO

(Principal Financial Officer and Principal Accounting Officer)

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