The Company was incorporated in the
State of Nevada on June 5, 2007, as Gas Salvage Corp. for the purpose of engaging in the exploration and development of oil and
gas. In July 2008, the Company changed its name to Pinnacle Energy Corp. On February 1, 2010, the Company completed the acquisition
of the aircraft component part design, engineering and manufacturing assets of Harbin Aerospace Company, LLC (HAC).
The transaction was structured as a business combination. Following completion of the HAC acquisition, the Companys Board
of Directors decided to dispose of the oil and gas business interests and focus on the aircraft component market. On February 10,
2010, the Company completed the sale of all of its oil and gas business interests in exchange for cancellation of all obligations
under an outstanding promissory note having a principal amount of $1,000,000. Pursuant to FASB standards, the Company has retro-actively
presented its oil and gas business as discontinued operations.
In March 2010, the Company changed its
name to Trans-Pacific Aerospace Company, Inc.
On July 27, 2008, the Company completed
a three-for-one stock split of the Companys common stock. The share and per-share information disclosed within this Form
10-K reflect the completion of this stock split.
The Company was in the business of acquiring
and developing oil and gas properties until February 2010.
The Companys aircraft component
business was commenced on February 1, 2010. To date, its operations have focused on product design and engineering. The
Company has not commenced commercial manufacture or sales of its products.
The Company designs, manufactures and
sells aerospace quality component parts for commercial and military aircraft, space vehicles, power plants and surface and undersea
vessels. These parts have applications in both newly constructed platforms and as spares for existing platforms. The
Companys initial products are self-lubricating spherical bearings that help with several flight-critical tasks, including
aircraft flight controls and landing gear.
The Company's financial statements are
prepared using the accrual method of accounting in accordance with accounting principles generally accepted in the United States
of America, and have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of
liabilities in the normal course of business. The Company incurred a net loss from operations of $1,537,219 during the year ended
October 31, 2012, and an accumulated deficit of $10,467,660 since inception. The Company has not yet established an ongoing source
of revenues sufficient to cover its operating costs and to 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 development of operations.
In order to continue as a going concern,
develop a reliable source of revenues, and achieve a profitable level of operations, the Company will need, among other things,
additional capital resources. Managements plans to continue as a going concern include raising additional capital through
sales of common stock and or a debt financing. However, management cannot provide any assurances that the Company will be successful
in accomplishing any of its plans.
The ability of the Company to continue
as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and
eventually secure other sources of financing and attain profitable operations. The Company anticipates that losses will continue
until such time, if ever, that the Company is able to generate sufficient revenues to support its operations. The accompanying
financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.