Attached files

file filename
EX-32.1 - EXHIBIT 32.1 - THC Therapeutics, Inc.ex32_1.htm
EX-31.2 - EXHIBIT 31.2 - THC Therapeutics, Inc.ex31_2.htm
EX-31.1 - EXHIBIT 31.1 - THC Therapeutics, Inc.ex31_1.htm
EX-23.1 - EXHIBIT 23.1 - THC Therapeutics, Inc.ex23_1.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-K

 

[X] ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended July 31, 2011

 

[  ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT

 

For the transition period from _________ to ________

 

Commission file number: 333-145794
       
Harmonic Energy, Inc.
(Exact name of registrant as specified in its charter)

                 

 

Nevada 26-0164981

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

#406 - 917 85th Street SW, Suite 167

Calgary, Alberta, Canada

T3H 5K2
(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number: (403) 698-9477

 

 



Securities registered under Section 12(b) of the Exchange Act:

 

Title of each class Name of each exchange on which registered
None not applicable

 

Securities registered under Section 12(g) of the Exchange Act:

 

Title of each class
None  

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes [ ] No [X]

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes [] No [X]

 

Indicate by checkmark 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 preceeding 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 [ ]

 

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 [X]

 

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. [ ]

 

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 [ ] 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 [ ]

 

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter. Approx. $7,128,833 as of January 31, 2011.

 

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date. 54,724,119 as of November 9, 2010.

      

TABLE OF CONTENTS

 

Page
 
PART I
 
Item 1. Business 3
Item 1A. Risk Factors 3
Item 1B. Unresolved Staff Comments 3
Item 2. Properties 4
Item 3. Legal Proceedings 4
Item 4. Submission of Matters to a Vote of Security Holders 4
 
PART II
 
Item 5. Market for Registrant’s Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities 4
Item 6. Selected Financial Data 5
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 6
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 7
Item 8. Financial Statements and Supplementary Data 7
Item 9. Changes In and Disagreements With Accountants on Accounting and Financial Disclosure 8
Item 9A(T). Controls and Procedures 8
Item 9B. Other Information 9
 
PART III
 
Item 10. Directors, Executive Officers and Corporate Governance 9
Item 11. Executive Compensation 11
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 13
Item 13. Certain Relationships and Related Transactions, and Director Independence 14
Item 14. Principal Accountant Fees and Services
 
PART IV
 
Item 15. Exhibits, Financial Statement Schedules 15

 

2

PART I

Item 1. Business

 

Principal Place of Business

 

Our principal offices are located at Suite 167, #406 - 917 85th Street SW, Calgary, Alberta, Canada T3H 5K2.

 

Description of Business

 

We are a Nevada corporation, formed May 1, 2007.   Currently, we do not have any active business operations. Our management is evaluating new business opportunities.

 

Employees

 

Other than our officers and director, we do not have any full time employees.

 

Research and Development Expenditures

 

We have not incurred any research or development expenditures since our incorporation.

 

Subsidiaries

 

We not have any subsidiaries.

 

Intellectual Property

 

We do not currently have any intellectual property.

 

Item 1A. Risk Factors.

 

A smaller reporting company is not required to provide the information required by this Item.

 

Item 1B. Unresolved Staff Comments

 

A smaller reporting company is not required to provide the information required by this Item.

3

 

Item 2. Properties

 

We do not currently own or lease any real property.  

 

Our Executive Offices

 

Our principal executive offices are located at Suite 167, #406 - 917 85th Street SW, Calgary, Alberta, Canada T3H 5K2. Our mailing address is the same. Our telephone number is (403) 698-9477.

 

Item 3. Legal Proceedings

 

We are not currently a party to any legal proceedings. We are not aware of any pending legal proceeding to which any of our officers, directors, or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.

 

Our agent for service of process in Nevada is Nevada Agency and Transfer Company, 50 West Liberty St, Suite 880, Reno, NV 89501.

 

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

 

No matters were submitted to a vote of the Company's shareholders during the fiscal year ended July 31, 2011.

 

PART II

 

Item 5. Market for Registrant’s Common Equity and Related Stockholder Matters and Issuer Purchases of Equity Securities

 

Market Information

 

Our common stock is currently quoted on the OTC Bulletin Board (“OTCBB”), which is sponsored by FINRA. The OTCBB is a network of security dealers who buy and sell stock. The dealers are connected by a computer network that provides information on current "bids" and "asks", as well as volume information. Our shares are quoted on the OTCBB under the symbol “ASUV.OB.”

 

The following table sets forth the range of high and low bid quotations for our common stock for each of the periods indicated as reported by the OTCBB. These quotations reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not necessarily represent actual transactions.

 

Fiscal Year Ended July 31, 2011
Quarter Ended  High $  Low $
July 31, 2011  $1.52   $1.52 
April 30, 2011  $1.52   $1.52 
January 31, 2011  $1.52   $1.52 
October 31, 2010  $1.52   $0.75 
           
Fiscal Year Ended July 31, 2010
Quarter Ended   High $    Low $ 
July 31, 2009  $1.52   $0.13 
April 30, 2010  $0.15   $0.05 
January 31, 2010   n/a    n/a 
October 31, 2009   n/a    n/a 

 

On November 9, 2011, the last sales price per share of our common stock was $1.52.

 

4

Penny Stock

 

The SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with a market price of less than $5.00, other than securities registered on certain national securities exchanges or quoted on the NASDAQ system, provided that current price and volume information with respect to transactions in such securities is provided by the exchange or system. The penny stock rules require a broker-dealer, prior to a transaction in a penny stock, to deliver a standardized risk disclosure document prepared by the SEC, that: (a) contains a description of the nature and level of risk in the market for penny stocks in both public offerings and secondary trading; (b) contains a description of the broker's or dealer's duties to the customer and of the rights and remedies available to the customer with respect to a violation of such duties or other requirements of the securities laws; (c) contains a brief, clear, narrative description of a dealer market, including bid and ask prices for penny stocks and the significance of the spread between the bid and ask price; (d) contains a toll-free telephone number for inquiries on disciplinary actions; (e) defines significant terms in the disclosure document or in the conduct of trading in penny stocks; and (f) contains such other information and is in such form, including language, type size and format, as the SEC shall require by rule or regulation.

 

The broker-dealer also must provide, prior to effecting any transaction in a penny stock, the customer with (a) bid and offer quotations for the penny stock; (b) the compensation of the broker-dealer and its salesperson in the transaction; (c) the number of shares to which such bid and ask prices apply, or other comparable information relating to the depth and liquidity of the market for such stock; and (d) a monthly account statement showing the market value of each penny stock held in the customer's account.

 

In addition, the penny stock rules require that prior to a transaction in a penny stock not otherwise exempt from those rules, the broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser's written acknowledgment of the receipt of a risk disclosure statement, a written agreement as to transactions involving penny stocks, and a signed and dated copy of a written suitability statement.

 

These disclosure requirements may have the effect of reducing the trading activity for our common stock. Therefore, stockholders may have difficulty selling our securities.

 

Holders of Our Common Stock

 

As of November 9, 2011, we had 54,724,119 shares of our common stock issued and outstanding, held by 7 shareholders of record, as well as other stockholders who hold shares in street name.

 

Dividend Policy

 

We have never declared or paid any cash dividends on our common stock.  We currently intend to retain future earnings, if any, to finance the expansion of our business. As a result, we do not anticipate paying any cash dividends in the foreseeable future.

 

Securities Authorized for Issuance under Equity Compensation Plans

 

We have not adopted any equity compensation plans at this time.

 

Recent Sales of Unregistered Securities

 

We have not engaged in any sales of unregistered securities during the fiscal year ended July 31, 2011, except as otherwise reported in our applicable Current Reports on Form 8-K.

 

Item 6. Selected Financial Data

 

A smaller reporting company is not required to provide the information required by this Item.

5

Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

Forward-Looking Statements

 

Certain statements, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives, and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements.” These forward-looking statements generally are identified by the words “believes,” “project,” “expects,” “anticipates,” “estimates,” “intends,” “strategy,” “plan,” “may,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Our ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on our operations and future prospects on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, and generally accepted accounting principles. These risks and uncertainties should also be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements.

 

Results of Operations for the years ended July 31, 2011 and 2010

 

We have not earned significant revenues since the inception of our business and we earned no revenues during the fiscal years ended July 31, 2011 and July 31, 2010.  During the year ended July 31, 2011, we incurred total expenses and net losses in the amount of $24,772. During the year ended July 31, 2010, we incurred total operating expenses of $124,411, interest expense of $201, and a gain on settlement of expenses in the amount of $86,748, resulting in a net loss of $37,864. We have incurred total net losses of $147,371 from inception on May 1, 2007 through July 31, 2011. Our losses are attributable to ongoing operating expenses together with a lack of any revenues.

 

Liquidity and Capital Resources

 

As of July 31, 2010, we had no cash or other current assets, current liabilities of $64,936, and a working capital deficit of $64,936. Our current liabilities consisted of $43,852 in accrued expenses, a note payable to a related party of $20,000, and accrued interest on the note of $1,346. We will require substantial additional financing in order to continue to pursue active business operations. We currently do not have any firm arrangements for financing and we may continue to be able to obtain financing when required. For these reasons, our auditors stated in their report that they have substantial doubt we will be able to continue as a going concern.

 

Going Concern

 

We have not attained profitable operations and are dependent upon obtaining financing to pursue significant business activities. We have incurred cumulative net losses of $147,371 since our inception and do not have a source of revenues. Our ability to raise additional capital through the future issuances of the common stock is unknown. For these reasons, our auditors stated in their report that they have substantial doubt we will be able to continue as a going concern.

 

Purchase or Sale of Equipment

 

We do not expect to purchase or sell any plant or significant equipment.

 

Personnel

 

We currently have no full-time employees. Our named executive officers are providing their time to our operations on an as-needed basis. We do not currently expect to increase our number of employees during the next twelve months.

 

6

Research and Development

 

We will not be conducting any product research or development during the next 12 months.

 

Off Balance Sheet Arrangements

 

As July 31, 2011, there were no off balance sheet arrangements.

 

Item 7A. Quantitative and Qualitative Disclosures about Market Risk

 

A smaller reporting company is not required to provide the information required by this Item.

 

Item 8. Financial Statements and Supplementary Data

 

Index to Financial Statements Required by Article 8 of Regulation S-X:

 

Audited Financial Statements:

 

F-1 Report of Independent Registered Public Accounting Firm
F-2 Consolidated Balance Sheets as of July 31, 2011  and 2010
F-3 Statements of Operations for the years ended July 31, 2011 and 2010 and period from May 1, 2007 (inception) to July 31, 2011
F-4 Statement of Stockholders’ Equity (Deficit) for period from May 1, 2007 (inception) to July 31, 2011
F-5 Statements of Cash Flows for the years ended July 31, 2011 and 2010 and period from May 1, 2007 (inception) to July 31, 2011
F-6 Notes to Financial Statements

 

7

Silberstein Ungar, PLLC CPAs and Business Advisors

Phone (248) 203-0080

Fax (248) 281-0940

30600 Telegraph Road, Suite 2175

Bingham Farms, MI 48025-4586

www.sucpas.com

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Boards of Directors

Harmonic Energy, Inc.

Las Vegas, Nevada

 

We have audited the accompanying balance sheets of Harmonic Energy, Inc., as of July 31, 2011 and 2010, and the related statements of operations, stockholders’ equity (deficit), and cash flows for the years then ended and the period from May 1, 2007 (date of inception) to July 31, 2011. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company has determined that it is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Harmonic Energy, Inc., as of July 31, 2011 and 2010 and the results of their operations and cash flows for the years then ended and the period from May 1, 2007 (date of inception) to July 31, 2011, in conformity with accounting principles generally accepted in the United States of America.

 

The accompanying financial statements have been prepared assuming that Harmonic Energy, Inc. will continue as a going concern. As discussed in Note 6 to the financial statements, the Company has incurred losses from operations, has negative working capital and is in need of additional capital to grow its operations so that it can become profitable. These factors raise substantial doubt about the Company’s ability to continue as a going concern. Management’s plans with regard to these matters are described in Note 6. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

/s/ Silberstein Ungar, PLLC

Silberstein Ungar, PLLC

 

Bingham Farms, Michigan

November 9, 2011

F-1

HARMONIC ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

BALANCE SHEETS

AS OF JULY 31, 2011 AND 2010

 

 

   July 31, 2011  July 31, 2010
ASSETS      
Current Assets      
Cash and equivalents  $0   $10,983 
           
TOTAL ASSETS  $0   $10,983 
           
LIABILITIES AND STOCKHOLDERS’ DEFICIT          
Liabilities          
Current Liabilities          
Accrued expenses  $43,582   $30,993 
Accrued interest – related party   1,354    154 
Note payable - related party   20,000    20,000 
Total Liabilities   64,936    51,147 
           
Stockholders’ Deficit          
Common Stock, $.001 par value, 100,000,000 shares authorized, 54,724,119 shares issued and outstanding   54,724    54,724 
Additional paid-in capital   27,711    27,711 
Deficit accumulated during the development stage   (147,371)   (122,599)
Total Stockholders’ Deficit   (64,936)   (40,164)
           
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT  $0   $10,983 

 

See accompanying notes to financial statements.

F-2

HARMONIC ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF OPERATIONS

FOR THE YEARS ENDED JULY 31, 2011 AND 2010

FOR THE PERIOD FROM MAY 1, 2007 (INCEPTION) TO JULY 31, 2011

 

   Year ended July 31, 2011  Year ended July 31, 2010  Period from May 1, 2007 (Inception) to July 31, 2011
          
REVENUES  $0   $0   $200 
                
EXPENSES               
Professional fees   22,622    114,531    218,647 
Website development   0    9,000    9,000 
General and administrative   950    880    5,108 
TOTAL EXPENSES   23,572    124,411    232,755 
                
LOSS FROM OPERATIONS   (23,572)   (124,411)   (232,555)
                
OTHER INCOME (EXPENSE)               
Interest expense   (1,200)   (201)   (1,564)
Gain on settlement of accrued expenses   0    86,748    86,748 
TOTAL OTHER INCOME (EXPENSE)   (1,200)   86,547    85,184 
                
LOSS BEFORE PROVISION FOR INCOME TAXES   (24,772)   (37,864)   (147,371)
                
PROVISION FOR INCOME TAXES   0    0    0 
                
NET LOSS  $(24,772)  $(37,864)  $(147,371)
                
NET LOSS PER SHARE: BASIC AND DILUTED  $(0.00)  $(0.00)     
                
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED   54,724,119    31,049,663      

 

 

See accompanying notes to financial statements.

F-3

HARMONIC ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT)

FOR THE PERIOD FROM MAY 1, 2007 (INCEPTION) TO JULY 31, 2011

 

   Common Stock  Additional paid-in  Deficit accumulated during the development   
   Shares  Amount  capital  Stage  Total
                          
Inception, May 1, 2007   0   $0   $0   $0   $0 
                          
Contributed capital   —      —      300    —      300 
                          
Issuance of common stock for cash @ $0.001 per share   11,798,803    11,799    (7,799)   —      4,000 
                          
Issuance of common stock for cash @ $0.004 per share   4,690,022    4,690    7,235    —      11,925 
                          
Net loss for the period ended July 31, 2007   —      —      —      (153)   (153)
                          
Balance, July 31, 2007   16,488,825    16,489    (264)   (153)   16,072 
                          
Net loss for the year ended July 31, 2008   —      —      —      (15,709)   (15,709)
                          
Balance, July 31, 2008   16,488,825    16,489    (264)   (15,862)   363 
                          
Net loss for the year ended July 31, 2009   —      —      —      (68,873)   (68,873)
                          
Balance, July 31, 2009   16,488,825    16,489    (264)   (84,735)   (68,510)
                          
Conversion of shareholder loan and accrued interest to contributed capital   —      —      1,210    —      1,210 
                          
Issuance of common stock for cash   38,235,294    38,235    26,765    —      65,000 
                          
Net loss for the year ended July 31, 2010   —      —      —      (37,864)   (37,864)
                          
Balance, July 31, 2010   54,724,119    54,724    27,711    (122,599)   (40,164)
                          
Net loss for the year ended July 31, 2011   —      —      —      (24,772)   (24,772)
                          
Balance, July 31, 2011   54,724,119   $54,724   $27,711   $(147,371)  $(64,936)

 

See accompanying notes to financial statements.

F-4

HARMONIC ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

STATEMENTS OF CASH FLOWS

FOR THE YEARS ENDED JULY 31, 2011 AND 2010

FOR THE PERIOD FROM MAY 1, 2007 (INCEPTION) TO JULY 31, 2011

 

 

 

   Year ended July 31, 2011  Year ended July 31, 2010  Period from May 1, 2007 (Inception) to July 31, 2011
CASH FLOWS FROM OPERATING ACTIVITIES               
Net loss for the period  $(24,772)  $(37,864)  $(147,371)
Change in non-cash working capital items               
Conversion of accrued interest – related party to contributed capital   0    47    210 
Gain on settlement of accrued expenses   0    (86,748)   (86,748)
Changes in assets and liabilities:               
Increase in accrued expenses   12,589    48,756    130,330 
Increase in accrued interest – related party   1,200    154    1,354 
NET CASH USED BY OPERATING ACTIVITIES   (10,983)   (75,655)   (102,225)
                
CASH FLOWS FROM FINANCING ACTIVITIES               
Proceeds from issuance of common stock   0    65,000    81,225 
Proceeds from note payable – related party   0    20,000    21,000 
NET CASH PROVIDED BY FINANCING ACTIVITIES   0    85,000    102,225 
                
NET INCREASE (DECREASE) IN CASH   (10,983)   9,345    0 
                
Cash, beginning of period   10,983    1,638    0 
Cash, end of period  $0   $10,983   $0 
                
SUPPLEMENTAL CASH FLOW INFORMATION:               
Interest paid  $0   $0   $0 
Income taxes paid  $0   $0   $0 
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES               
Conversion of note payable – related party to contributed capital  $0   $1,000   $1,000 

 

 

 

See accompanying notes to financial statements.

F-5

HARMONIC ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

JULY 31, 2011

 

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Nature of Business

Harmonic Energy, Inc. (the Company), formerly known as Aviation Surveillance Systems, Inc. and Fairytale Ventures, Inc., was incorporated in the State of Nevada on May 1, 2007.  The Company is currently seeking to acquire oil and gas prospects and/or producing oil and gas properties in the United States and internationally. The Company has not realized significant revenues to date and therefore is classified as a development stage company.

 

Development Stage Company

The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development-stage companies. A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from.

 

Basis of Presentation

The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. The Company has adopted a July 31 fiscal year end.

 

Fair Value of Financial Instruments

The Company’s financial instruments consist of cash and cash equivalents, accrued expenses, accrued interest – related party and a note payable due to a related party. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.

 

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

 

Basic (Loss) per Common Share

Basic (loss) per share is calculated by dividing the Company’s net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Company’s net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of July 31, 2011.

 

Revenue Recognition

The Company recognizes revenue when products are fully delivered or services have been provided and collection is reasonably assured.

 

Advertising Costs

The Company’s policy regarding advertising is to expense advertising when incurred. The Company has not incurred any advertising expense as of July 31, 2011 and 2010.

F-6

HARMONIC ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

JULY 31, 2011

 

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Cash and Cash Equivalents

For purposes of the Statement of Cash Flows, the Company considers all highly liquid instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.

 

Reclassifications

Certain accounts and financial statement captions in the prior periods have been reclassified to conform to the current period financial statements.

 

Income Taxes

Income taxes are computed using the asset and liability method. Under the asset and liability method, deferred income tax assets and liabilities are determined based on the differences between the financial reporting and tax bases of assets and liabilities and are measured using the currently enacted tax rates and laws. A valuation allowance is provided for the amount of deferred tax assets that, based on available evidence, are not expected to be realized.

 

Stock-Based Compensation

Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. As of July 31, 2011, the Company has not issued any stock-based payments to its employees.

 

Recent Accounting Pronouncements

Harmonic Energy does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position or cash flow.

 

NOTE 3 – ACCRUED EXPENSES

 

Accrued expenses consisted of the following as of July 31, 2011 and 2010:

 

   2011  2010
Accrued legal fees  $33,707   $25,470 
Accrued accounting and audit fees   9,000    4,473 
Accrued filing fees   875    875 
Accrued bank fees   0    175 
Total Accrued Expenses  $43,582   $30,993 

 

On March 15, 2010, the Company settled an outstanding accrued expense of $142,748 for a cash payment of $59,000. The difference of $83,748 has been recorded as a gain on the settlement of accrued expenses. Additionally on March 15, 2010, the Company wrote off an accrued expense of $3,000 due to a vendor no longer in business. The $3,000 was also recorded as a gain on settlement of expenses.

F-7

HARMONIC ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

JULY 31, 2011

 

NOTE 4 – LOAN PAYABLE – RELATED PARTY

 

The Company had a loan of $1,000 outstanding to an officer as of July 31, 2009. The loan was unsecured, due on demand with an interest rate of 8%. The loan and accrued interest were converted to capital during the year ended July 31, 2010. The total amount recorded as contributed capital was $1,210. Interest expense on the above loan was $47 for the year ended July 31, 2010.

 

On June 14, 2010, the Company signed a promissory note for $20,000 with an officer.  The loan was due on June 14, 2011, bears 6% interest and is unsecured. The terms of the notes were revised to adjust maturity to due on demand during the year ended July 31, 2011. Interest expense on this loan was $1,200 and $154 for the years ended July 31, 2011 and 2010.

 

NOTE 5 – COMMON STOCK

 

The Company has 100,000,000 shares of $0.001 par value common stock authorized.

 

On May 14, 2007, the Company received $4,000 from its founders for 7,374,252 shares of its common stock. On June 22, 2007, the Company completed an unregistered private offering under the Securities Act of 1933, as amended, relying upon the exemption from registration afforded by Rule 504 of Regulation D promulgated there under.  The Company sold 2,931,265 shares of its $0.001 par value common stock at a price of $0.004 per share for $11,925 in cash.

 

On July 21, 2008, the Company’s shares of common stock were forward split on the basis of 1.84356289 shares for 1.

 

On May 1, 2009, the Company’s shares of common stock were forward split on the basis of 1.6 shares for 1. The forward stock split has been recognized in the Company’s financial statements on a retroactive basis.

 

On March 15, 2010, the Company sold 38,235,294 shares of common stock for total cash proceeds of $65,000.

 

There were no issuances of common stock during the year ended July 31, 2011.

 

As of July 31, 2011, the Company has 54,724,119 shares of common stock issued and outstanding.

 

NOTE 6 – GOING CONCERN

 

The accompanying financial statements have been prepared in conformity with generally accepted accounting principle, which contemplate continuation of the Company as a going concern.  However, the Company has an accumulated deficit of $147,371 as of July 31, 2011.  The Company currently has a working capital deficit, and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time.

 

Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of management’s efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.

F-8

HARMONIC ENERGY, INC.

(A DEVELOPMENT STAGE COMPANY)

NOTES TO THE FINANCIAL STATEMENTS

JULY 31, 2011

 

NOTE 7 – INCOME TAXES

 

As of July 31, 2011, the Company had net operating loss carry forwards of approximately $147,371 that may be available to reduce future years’ taxable income in various amounts through 2030. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.

 

The provision for Federal income tax consists of the following:

 

   2011  2010
Federal income tax benefits attributable to:          
Current operations  $8,422   $12,874 
Less: valuation allowance   (8,422)   (12,874)
Net provision for Federal income taxes  $0   $0 

 

The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:

 

   2011  2010
Deferred tax asset attributable to:          
Net operating loss carryover  $50,106   $41,684 
Less: valuation allowance   (50,106)   (41,684)
Net deferred tax asset  $0   $0 

 

Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of $147,371 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.

 

NOTE 8 – COMMITMENTS AND CONTINGENCIES

 

Harmonic Energy neither owns nor leases any real or personal property. An officer has provided office services without charge. There is no obligation for this arrangement to continue. Such costs are immaterial to the financial statements and accordingly are not reflected herein. The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future.

 

NOTE 9 – SUBSEQUENT EVENTS

 

In accordance with ASC Topic 855-10, the Company has analyzed its operations subsequent to July 31, 2011 to November 9, 2011, the date these financial statements were issued, and has determined that it does not have any material subsequent events to disclose in these financial statements.

 

F-9

 

Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure

 

None

 

Item 9A. Controls and Procedures

 

Disclosure controls and procedures are controls and other procedures that are designed to ensure that information required to be disclosed in company reports filed or submitted under the Securities Exchange Act of 1934 (the “Exchange Act”) is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include without limitation, controls and procedures designed to ensure that information required to be disclosed in company reports filed or submitted under the Exchange Act is accumulated and communicated to management, including our chief executive officer and treasurer, as appropriate to allow timely decisions regarding required disclosure.

 

As required by Rules 13a-15 and 15d-15 under the Exchange Act, our chief executive officer and chief financial officer carried out an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures as of July 31, 2011. Based on their evaluation, they concluded that our disclosure controls and procedures were ineffective.

 

Management is responsible for establishing and maintaining adequate internal control over our financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act). Our internal control over financial reporting is a process designed by, or under the supervision of, our chief executive officer and chief financial officer and effected by our board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of our financial statements for external purposes in accordance with generally accepted accounting principles. Internal control over financial reporting includes policies and procedures that pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets; provide reasonable assurance that transactions are recorded as necessary to permit preparation of our financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with the authorization of our board of directors and management; and provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our financial statements.

 

Under the supervision and with the participation of our management, including our chief executive officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on this evaluation under the criteria established in Internal Control – Integrated Framework, our management concluded that our internal control over financial reporting was ineffective as of July 31, 2011.

8

Management determined that the material weaknesses that resulted in controls being ineffective are primarily due to lack of resources and number of employees. Material weaknesses exist in the segregation of duties required for effective controls and various reconciliation and control procedures not regularly performed due to the lack of staff and resources.

 

This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management’s report was not subject to attestation by our registered public accounting firm pursuant to an exemption for non-accelerated filers set forth in Section 989G of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

 

During the most recently completed fiscal quarter, there has been no change in our internal control over financial reporting that has materially affected or is reasonably likely to materially affect, our internal control over financial reporting.

 

Item 9B. Other Information

 

None

 

 

PART III

 

Item 10. Directors, Executive Officers and Corporate Governance

 

The following persons are our executive officers and directors.

 

Name Age Office(s) held
Dan Forigo 39 President, CEO, CFO, and Director
Eden Ho 34 Secretary and Director

 

Set forth below is a brief description of the background and business experience of each of our current executive officers and directors.

 

Dan Forigo is our President, CEO, CFO and a member of our board directors. Mr. Forigo has over 15 years of experience in senior level management roles at both U.S. and Canadian listed public companies. In addition to his advisory role with AFH, Mr. Forigo is the President of Omega Capital Corporation, where he has advised numerous companies on U.S. and Canadian exchange listings through both traditional and alternative methods. His experience spans a wide range of project development and contract negotiations within the mining, energy, technology, and real estate industries. Mr. Forigo focuses on the creation and implementation of market strategies, contract negotiations and financing options for maximum return on investments. His business experience includes diverse international assignments in Europe, Canada, the United States and China. Mr. Forigo has worked extensively with overseas investor groups and within the energy and petroleum markets of North America. He currently serves on the board of directors for Meadow Bay Capital, a mineral and resource company. Mr. Forigo is involved in a number of charities including the Calgary Flames Ambassador Program, a National Hockey League organization that serves the community.

 

Eden Ho is our Secretary and a member of our board of directors. Mr. Ho is currently a business consultant in the electronic field focusing on power supply management of semiconductors. Mr. Ho has past experience in this field as a sales manager, forecast analyst and marketing manager at Advanced Analogic Technologies Inc. Mr. Ho has previous marketing experience in implementing and overseeing communications programs of existing and new electronic product lines. Mr. Ho has a B.A. in economics from the University of Victoria.

 

Directors

 

Our bylaws authorize no less than one (1) and no more than fifteen (15) directors. We currently have two Directors.

9

Term of Office

 

Our Directors are appointed for a one-year term to hold office until the next annual general meeting of our shareholders or until removed from office in accordance with our bylaws. Our officers are appointed by our Board of Directors and hold office until removed by the Board.

 

Family Relationships

 

There are no family relationships between or among the Directors, executive officers or persons nominated or chosen by the Company to become Directors or executive officers.

 

Committees of the Board

 

We do not currently have a compensation committee, executive committee, or stock plan committee.

 

Involvement in Certain Legal Proceedings

 

To the best of our knowledge, during the past ten years, none of the following occurred with respect to a present or former director, executive officer, or employee: (1) any bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy or within two years prior to that time; (2) any conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses); (3) being subject to any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise limiting his or her involvement in any type of business, securities or banking activities; and (4) being found by a court of competent jurisdiction (in a civil action), the SEC or the Commodities Futures Trading Commission to have violated a federal or state securities or commodities law, and the judgment has not been reversed, suspended or vacated.

 

Audit Committee

 

We do not have a separately-designated standing audit committee. The entire board of directors performs the functions of an audit committee, but no written charter governs the actions of the board of directors when performing the functions of that would generally be performed by an audit committee. The board of directors approves the selection of our independent accountants and meets and interacts with the independent accountants to discuss issues related to financial reporting. In addition, the board of directors reviews the scope and results of the audit with the independent accountants, reviews with management and the independent accountants our annual operating results, considers the adequacy of our internal accounting procedures and considers other auditing and accounting matters including fees to be paid to the independent auditor and the performance of the independent auditor.

 

We do not have an audit committee financial expert because of the size of our company and our board of directors at this time. We believe that we do not require an audit committee financial expert at this time because we retain outside consultants who possess these attributes.

 

For the fiscal year ending July 31, 2011, the board of directors:

 

  1. Reviewed and discussed the audited financial statements with management, and

  1. Reviewed and discussed the written disclosures and the letter from our independent auditors on the matters relating to the auditor's independence.

Based upon the board of directors’ review and discussion of the matters above, the board of directors authorized inclusion of the audited financial statements for the year ended July 31, 2011 to be included in this Annual Report on Form 10-K and filed with the Securities and Exchange Commission.

10

Section 16(a) Beneficial Ownership Reporting Compliance

 

Section 16(a) of the Exchange Act requires our directors and executive officers and persons who beneficially own more than ten percent of a registered class of the Company’s equity securities to file with the SEC initial reports of ownership and reports of changes in ownership of common stock and other equity securities of the Company. Officers, directors and greater than ten percent beneficial shareholders are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file. To the best of our knowledge based solely on a review of Forms 3, 4, and 5 (and any amendments thereof) received by us during or with respect to the year ended July 31, 2011, the following persons have failed to file, on a timely basis, the identified reports required by Section 16(a) of the Exchange Act during fiscal year ended July 31, 2011:

 

Name and principal position Number of late reports Transactions not timely reported Known failures to file a required form
Dan Forigo 0 0 0
Eden Ho 0 0 0

 

Code of Ethics

 

As of July 31, 2011, we had not adopted a Code of Ethics for Financial Executives, which would include our principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

 

Item 11. Executive Compensation


Compensation Discussion and Analysis

 

The Company presently not does have employment agreements with any of its named executive officers and it has not established a system of executive compensation or any fixed policies regarding compensation of executive officers.  Due to financial constraints typical of those faced by a development stage business, the company has not paid any cash and/or stock compensation to its named executive officers

 

As our business and operations expand and mature, we expect to develop a formal system of compensation designed to attract, retain and motivate talented executives.

11

Summary Compensation Table

 

The table below summarizes all compensation awarded to, earned by, or paid to our current executive officers for each of the last two completed fiscal years.

 

SUMMARY COMPENSATION TABLE

 

Name and principal position Year Salary ($) Bonus($) Stock Awards ($) Option Awards ($) Non-Equity Incentive Plan Compensation($) Nonqualified Deferred Compensation Earnings ($) All Other Compensation ($) Total ($)
Dan Forigo, President, CEO, CFO and director

2011

2010

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Eden Ho, Secretary and director

2011

2010

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Tim Elias, former officer and director

2011

2010

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Mark Mroczkowski, former officer and director 

2011

2010

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

Michael J. Korte, former officer and director

2011

2010

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

 

Outstanding Equity Awards at Fiscal Year-end Table

 

The table below summarizes all unexercised options, stock that has not vested, and equity incentive plan awards for each named executive officer outstanding as of the end of our last completed fiscal year.

 

OUTSTANDING EQUITY AWARDS AT FISCAL YEAR-END
OPTION AWARDS STOCK AWARDS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Name

 

 

 

 

 

 

 

 

 

Number of Securities

Underlying Unexercised

Options (#)

Exercisable

 

 

 

 

 

 

 

 

 

Number of Securities Underlying Unexercised Options (#)Unexercisable

 

 

 

 

 

Equity

Incentive

Plan Awards

Number of Securities

Underlying Unexercised

Unearned Options (#)

 

 

 

 

 

 

 

 

 

 

 

 

Option Exercise Price ($)

 

 

 

 

 

 

 

 

 

 

 

 

Option Expiration Date

 

 

 

 

 

 

Number of Shares or Shares

of Stock That

Have Not Vested(#)

 

 

 

Market Value of

Shares or Shares of

Stock That

Have Not

Vested ($)

 

Equity Incentive Plan Awards: Number of Unearned Shares,

Shares or Other

Rights That Have Not Vested (#)

Equity Incentive

Plan Awards:

Market or Payout

Value of Unearned

Shares, Shares or

Other Rights

That Have Not Vested (#)

Dan Forigo 0 0 0 0 0 0 0 0 0
Eden Ho 0 0 0 0 0 0 0 0 0
Tim Elias, former officer and director 0 0 0 0 0 0 0 0 0
Mark Mroczkowski, former officer and director  0 0 0 0 0 0 0 0 0
Michael J. Korte, former officer and director 0 0 0 0 0 0 0 0 0

12

Compensation of Directors Table

 

The table below summarizes all compensation paid to our directors for our last completed fiscal year.

 

DIRECTOR COMPENSATION

Name

 

Fees Earned or

Paid in

Cash

($)

 

 

Stock Awards

($)

 

 

Option Awards

($)

Non-Equity

Incentive

Plan

Compensation

($)

Non-Qualified

Deferred

Compensation

Earnings

($)

 

All

Other

Compensation

($)

 

 

 

Total

($)

Dan Forigo 0 0 0 0 0 0 0
Eden Ho 0 0 0 0 0 0 0
Tim Elias, former director 0 0 0 0 0 0 0
Mark Mroczkowski, former director 0 0 0 0 0 0 0
Michael J. Korte, former director 0 0 0 0 0 0 0
Michael O’Derrick, former director 0 0 0 0 0 0 0

 


Narrative Disclosure to the Director Compensation Table

Directors do not currently receive any cash compensation from the Company or for their service as members of the Board of Directors.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 

Security Ownership of Certain Beneficial Owners and Management

 

The following table sets forth, as of November 9, 2011, certain information as to shares of our common stock owned by (i) each person known by us to beneficially own more than 5% of our outstanding common stock, (ii) each of our directors, and (iii) all of our executive officers and directors as a group:

 


Title of class
Name and address of beneficial owner (1) Amount of beneficial ownership Percent of class (2)
Executive Officers & Directors:
Common

Dan Forigo

Suite 167, #406 - 917 85th Street SW

Calgary, Alberta, Canada T3H 5K2

0 0%
Common

Eden Ho

701 Xiang Mi Hu Road

Xi Yuan, Futian Dist., Shenzhen

Peoples Republic of China

0 0%
Total of All Directors and Executive Officers: 0 Shares 0%
 
More Than 5% Beneficial Owners:
Common

Alp Investments, Ltd. (3)

1 Mapp Street

Belize City, Belize, Central America

39,784,097 72.70%
Common

Mobiliare, SA

87 Calle Ocho

Panama City, Panama

10,000,000 18.27%

 

13

 

(1)       As used in this table, "beneficial ownership" means the sole or shared power to vote, or to direct the voting of, a security, or the sole or shared investment power with respect to a security (i.e., the power to dispose of, or to direct the disposition of, a security). In addition, for purposes of this table, a person is deemed, as of any date, to have "beneficial ownership" of any security that such person has the right to acquire within 60 days after such date.

 

(2)       The percent of class is based on 54,724,119 shares of common stock issued and outstanding as of November 9, 2011.

 

(3)       Millcove Management, Inc. is the shareholder of Alp Investments, Ltd.  Michele Celestine, Kavorn Kyte-Williams, and Jan Moran are the Directors of Millcove Management, Inc.  In their capacities as the Directors of Millcove Management, Inc., these individuals exercise voting and investment power with respect to the securities held by Alp Investments, Ltd.

 

The persons named above have full voting and investment power with respect to the shares indicated. Under the rules of the Securities and Exchange Commission, a person (or group of persons) is deemed to be a "beneficial owner" of a security if he or she, directly or indirectly, has or shares the power to vote or to direct the voting of such security, or the power to dispose of or to direct the disposition of such security. Accordingly, more than one person may be deemed to be a beneficial owner of the same security. A person is also deemed to be a beneficial owner of any security, which that person has the right to acquire within 60 days, such as options or warrants to purchase our common stock.

 

Disclosure of Commission Position of Indemnification for Securities Act Liabilities

 

In accordance with the provisions in our articles of incorporation, we will indemnify an officer, director, or former officer or director, to the full extent permitted by law.

 

Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the "Act") may be permitted to our directors, officers and controlling persons pursuant to the foregoing provisions, or otherwise, we have been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by us of expenses incurred or paid by a director, officer or controlling person of us in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, we will, unless in the opinion of our counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

 

Item 13. Certain Relationships and Related Transactions, and Director Independence

 

Except as set forth below, none of our directors or executive officers, nor any proposed nominee for election as a director, nor any person who beneficially owns, directly or indirectly, shares carrying more than 5% of the voting rights attached to all of our outstanding shares, nor any members of the immediate family (including spouse, parents, children, siblings, and in-laws) of any of the foregoing persons has any material interest, direct or indirect, in any transaction since our incorporation or in any presently proposed transaction which, in either case, has or will materially affect us:

14

 

1. On June 14, 2010, we borrowed the sum of $20,000 from our then-current President, CEO, and sole director, Eden Ho, pursuant to a Promissory Note dated June 14, 2010 (the “Note”). The Note bears interest at a rate of six percent (6%) per year and matures on June 14, 2011. The Note may be pre-paid in whole or in part without penalty.

 

2. Tim Elias, our former COO and a director, and Michael J. Korte, our former Chief Geologist and a Director, are the owners of Shale Gas Partners, LLC and Checotah Pipeline, LLC. We acquired, by way of an assignment, an option to purchase the working interest in a group of oil and gas leases covering approximately 4,480 acres in McIntosh County, Oklahoma known as the Checotah Field Development Project . The seller of the leasehold interests was Shale Gas Partners, LLC. In addition, our option included the purchase of a natural gas gathering, treatment, and pipeline system located within the Checotah Project. The seller of the natural gas gathering system was Checotah Pipeline, LLC. The option has expired and is not longer in effect.

 

Item 14. Principal Accounting Fees and Services

 

Below is the table of Audit Fees (amounts in US$) billed by our auditor in connection with the audit of the Company’s annual financial statements for the years ended:

 

Financial Statements for the Year Ended July 31 Audit Services Audit Related Fees Tax Fees Other Fees
July 31, 2011 $8,500 $0 $0 $0
July 31, 2010 $8,500 $0 $0 $0

 

PART IV

 

Item 15. Exhibits, Financial Statements Schedules

 

(a) Financial Statements and Schedules

 

The following financial statements and schedules listed below are included in this Form 10-K.

 

Financial Statements (See Item 8)

 

(b) Exhibits

 

Exhibit Number Description
3.1 Articles of Incorporation, as amended (1)
3.2 Bylaws, as amended (1)
23.1 Consent of Silberstein Ungar, PLLC
31.1 Certification of Chief Executive Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2 Certification of Chief Financial Officer pursuant to Securities Exchange Act Rule 13a-14(a)/15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1 Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

 

1          Incorporated by reference to Registration Statement on Form SB-2 filed August 30, 2007.

 

15

SIGNATURES

 

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.

 

 

  Harmonic Energy, Inc.
   
By: /s/ Dan Forigo

Dan Forigo

President, Chief Executive Officer, Chief Financial Officer,

and Director

 

November 10, 2011

 

In accordance with Section 13 or 15(d) of the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

 

By: /s/ Dan Forigo

Dan Forigo

President, Chief Executive Officer, Chief Financial Officer

and Director

 

November 10, 2011

 

By: /s/Eden Ho

Eden Ho, Secretary

and Director

 

November 10, 2011

 

16