Attached files
file | filename |
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EX-31 - EXHIBIT 31.2 - OAKRIDGE INTERNATIONAL CORP | ex312-063013oak.htm |
EX-31 - EXHIBIT 31.1 - OAKRIDGE INTERNATIONAL CORP | ex311-063013oak.htm |
EX-32 - EXHIBIT 32.2 - OAKRIDGE INTERNATIONAL CORP | ex322-063013oak.htm |
EX-32 - EXHIBIT 32.1 - OAKRIDGE INTERNATIONAL CORP | ex321-063013oak.htm |
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10 - K
[ x ] | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended June 30, 2013 | |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from [ ] to [ ] |
Commission File Number: 333-152312
(Exact Name of Registrant as Specified in Its Charter)
Nevada |
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(State or Other Jurisdiction of Incorporation or Organization) |
(IRS Employer Identification No.) |
Suite 5, Level 2, Malcolm Reid Building, 187 Rundle Street, Adelaide SA 5000, Australia |
n/a |
(Address of Principal Executive Offices) |
(Zip Code) |
Tel: +61 8 8120 0248 Fax: + 61 8 8312 0248
(Registrant's Telephone Number, Including Area Code)
Not Applicable
(Former Name, Former Address and Former
Fiscal Year if Changed Since Last Report)
Securities registered under Section 12(b) of the Act:
Title
of each class registered: |
Name
of each exchange on which registered: |
Securities registered under Section 12(g) of the Act:
Common Stock, $0.001 Par Value
(Title of Class)
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 check 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 past 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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K 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 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 "small reporting company" in Rule 12b-2 of the Exchange Act. (check one) |
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 [ ]
On September 25, 2013, the number of shares held by non-affiliates of the registrant was 710,000 shares of common stock. There is no calculation on the aggregate market value of the voting stock held by non-affiliates at the moment, as the Company's shares have not yet traded on the Over-the-counter Bulletin Board. |
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Exhibits incorporated by reference are referred under Part IV. |
FORWARD-LOOKING STATEMENTS |
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TABLE OF CONTENTS
PART I | |||
ITEM 1. | Business | 1 |
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ITEM 1A. | Risk Factors | 4 |
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ITEM 1B. | Unresolved Staff Comments | 10 |
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ITEM 2. | Properties | 10 |
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ITEM 3. | Legal Proceedings | 10 |
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ITEM 4. | Mine Safety Disclosures | 10 |
PART II |
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ITEM 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 11 |
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ITEM 6. | Selected Financial Data | 11 |
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ITEM 7. | Management's Discussion and Analysis of Financial Condition and Results of Operation | 12 |
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ITEM 7A. | Quantitative and Qualitative Disclosures About Market Risk | 14 |
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ITEM 8. | Financial Statements and Supplementary Data | 14 |
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ITEM 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosures | 15 |
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ITEM 9A | Controls and Procedures | 15 |
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ITEM 9B. | Other Information | 16 |
PART III |
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Item 10 | Directors, Executive Officers and Corporate Governance | 17 |
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Item 11 | Executive Compensation | 18 |
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Item 12 | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 20 |
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Item 13 | Certain Relationships and Related Transactions, and Director Independence | 20 |
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Item 14 | Principal Accounting Fees and Services | 21 |
PART IV |
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ITEM 15 | Exhibits, Financial Statement Schedules | 22 |
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SIGNATURES | 23 |
PART I |
ITEM 1. BUSINESS. |
Operation Overview |
Business of the Issuer |
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History In March 2008, the Company entered into an agreement for a technology for recovering electronic components from electronic printed circuit boards. The Company evaluated the technology but could not raise the necessary funds to keep the technology and our rights to the technology expired in October 2009. From that date onwards, we have been evaluating other technologies in the recovery of raw materials from Printed Circuit Boards. However due to our limited resources available, we were not able to actively pursue alternative solutions as that would involve investment into test equipment or process. |
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General |
The Company intends to work with design house to secure innovative products for marketing and distribution in the international markets. The Company further intends to try to secure by either acquisition or through licensing programs, international brands for our high end electronic products. |
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Build Up of Future Operational Infrastructure |
The Company intends to build up its core competencies in sourcing innovative designs and products to offer a broad variety of current and new consumer electronic products to customers. In addition, the Company intends to enter into brand licensing arrangements to use trade names and trademarks on products to earn higher profit margin on the products. The Company will seek to enter into distribution agreements that leverage the branded products and utilize the logistical and sourcing infrastructures for products that are more efficiently marketed through these agreements. The Company intends to evaluate potential licenses and distribution agreements. The Companys new core business will consists of selling, distributing, and licensing various low to high priced consumer electronic products in various categories. It is planned that a substantial portion of the Companys marketing and sales efforts are concentrated in the Asia Pacific and Europe region, although we also sell our products in certain other international regions. |
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* source innovative consumer electronic products by securing product designs * create distribution channels for customers offering branded products; * focus on penetration into the markets with multiple branded products offered and sold; * expansion of the Companys customer base in the Asia Pacific region through our contacts and relationship of our directors and outside sales representative organizations; * development of the Companys direct to consumer sales channel, primarily through the development of our website; and * expansion through strategic mergers with and acquisitions of other businesses. A principal component of the Companys growth strategy is to build a global recognition of its sourcing services, and brand names and reputation for quality and cost competitive products to aggressively promote its products within its targeted markets. The Company believes that it will be able to compete more effectively by applying innovative approaches to its product lines and augmenting its product lines with complementary products. The Company intends to pursue such plans either independently or through relationships with other companies as well as license arrangements, distributorship agreements and joint ventures. |
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Sourcing of innovative and competitive electronic products from design houses |
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Securing reliable and quality manufacturers | |
* |
Securing customers for our products | |
* |
Securing and entering into brands and licensing arrangements |
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Competition |
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reliability |
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* |
quality | |
* |
price | |
* |
design | |
* |
quality of service and support provided to retailers and their customers |
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The Company intends to take out insurance coverage for its products and business operations, however, any claims substantially in excess of the Companys insurance coverage, or any substantial claim not covered by insurance, would have a material adverse effect on the Companys financial condition and results of operations. |
Warranties |
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3
ITEM 1A. RISK FACTORS |
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4
If we cannot find customers to purchase the consumer products from us on acceptable terms, we will not be able to establish our business and thus it will fail. |
Even if we source consumer electronic products, we may not be able to secure customers on acceptable terms. Without customers purchasing our consumer electronic products, we will not be able to proceed with our business plan. |
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5
Our management team is currently not earning salary or receiving expenses, which may affect the implementation of our business plan. |
Dr. Lee, our CEO and Mr. Unerkov, our CFO, anticipate that during the next 12 months they will each devote approximately 10% and 15%, respectively, of their time to our business, also in an unpaid capacity. Dr Lee and Mr. Unerkov may not be able to devote the time necessary to our business to assure successful implementation of our business plan. |
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6
Our shares will be "penny stocks" as that term is generally defined in the Securities Exchange Act of 1934 to mean equity securities with a price of less than $5.00. Our shares thus will be subject to rules that impose sales practice and disclosure requirements on broker-dealers who engage in certain transactions involving a penny stock. |
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7
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Risks associated with doing business in the PRC. |
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8
Because Chinese law may govern some of our material agreements for acquisition and sale of our products, we may not be able to enforce our rights within the PRC or elsewhere, which could result in a significant loss of business, business opportunities or capital. |
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ITEM 1B. UNRESOLVED STAFF COMMENTS |
None. |
ITEM 2. PROPERTIES. |
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ITEM 3. LEGAL PROCEEDINGS. |
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ITEM 4. MINE SAFETY DISCLOSURES |
Not applicable. |
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PART II |
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Market Information |
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Issuer's Repurchase Of Equity Securities |
None. |
Holders |
On October 14, 2013, the Company had 48 holders of record of our Common Stock. |
Dividends |
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Stock Options |
Currently, there are no stock options outstanding. |
ITEM 6. SELECTED FINANCIAL DATA |
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ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS. |
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Our financial plan is to obtain sufficient funding for the trading and marketing services for consumer electronic products. The trading of the consumer electronic products requires funding of about US$1,000,000 to buy consumer electronics and selling to our customers. The working capital funding is expected to be US$350,000. We will seek to raise development and operation funds for the next twelve months by equity offering to support these plans. In addition, management is seeking strategic investors and partners to support our business. |
Research and Development |
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Costs and Effects of Compliance with Environmental Laws |
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Employees |
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Results of Operations |
FOR THE YEAR ENDED JUNE 30, 2013 AND 2012 AND FOR THE PERIOD FROM OCTOBER 31, 2007 (INCEPTION) TO JUNE 30, 2013 |
REVENUES |
For the period from October 31, 2007 (date of inception) to June 30, 2013, the Company realized revenue of $11,295, incurred a cost of revenue of $10,851 and achieved a gross profit of $474. |
OPERATING EXPENSES |
For the period from October 31, 2007 (date of inception) to June 30, 2013, the accumulated gross profit was $474, and our total operating expenses were $291,006, all of which were selling, general and administrative expenses. We incurred a gain on disposal of subsidiary of $2,279, resulting in an accumulated net loss to our shareholders for the period ended June 30, 2013 was $288,253. |
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Liquidity and Capital Resources |
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Going Concern Consideration |
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Off-Balance Sheet Arrangement |
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ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA |
Consolidated Financial Statements |
Please see page F-1 through F-11 of this Form 10-K. |
14
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE. |
There are no such reportable events. |
ITEM 9A. CONTROLS AND PROCEDURES. |
Disclosure Controls and Procedures |
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Management has identified specific remedial actions to address the material weaknesses described above: |
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Changes in Controls and Procedures |
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Attestation Report of the Registered Public Accounting Firm |
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ITEM 9B. OTHER INFORMATION. |
None. |
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PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE. |
Our directors and executive officers are as follows: |
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LEE Ying Chiu, Herbert | 60 |
President, Director & Chief Executive Officer | ||
Con UNERKOV | 44 |
Treasurer, Secretary, Director & Chief Financial Officer |
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Auditors; Code of Ethics; Financial Expert |
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Potential Conflicts of Interest |
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ITEM 11. EXECUTIVE COMPENSATION. |
Summary Compensation |
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Non-qualified |
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Non-Equity |
Deferred |
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Year |
Stock |
Option |
Incentive Plan |
Compensation |
All Other |
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Name and |
Ended |
Salary |
Bonus |
Awards |
Awards |
Compensation |
Earnings |
Compensation |
Total |
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Principal Position |
June 30 |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
($) |
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________________ |
________ |
______ |
_______ |
_______ |
______ |
____________ |
___________ |
____________ |
_____ |
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Dr. Lee Ying Chiu, |
2013 |
- |
- |
- |
- |
- |
- |
- |
- |
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Herbert1 | 201 2 |
- |
- |
- |
- |
- |
- |
- |
- |
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Mr. Con Unerkov2 | 2013 | - | - | - | - | - | - | - | - | ||||||||
2012 |
- |
- |
- |
- |
- |
- |
- |
- |
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Mr. Xiong Xu3 | 2013 |
- |
- |
- |
- |
- |
- |
- |
- |
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2012 |
- |
- |
- |
- |
- |
- |
- |
- |
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Mr. Sau Shan Ku4 | 2013 | - | - | - | - | - | - | - | - | ||||||||
2012 | - | - | - | - | - | - | - | - |
1. |
Dr. Lee Ying Chiu, Herbert was appointed as our CEO, President and Director of the Company on July 18, 2012. |
2. | Mr. Con Unerkov was appointed as our Director on May 4, 2012, as our CFO on May 18, 2012 and as our Treasurer and Secretary on July 18, 2012. |
3. | Mr. Xiong Xu resigned as President and Chief Executive Officer and Director of Oakridge May 4, 2012. |
4. | Mr. Sau Shan Ku resigned as Chairman, Treasurer, Secretary, Chief Executive Officer, and Director of Company on July 18, 2012. |
Outstanding Equity Awards |
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OUTSTANDING EQUITY AWARDS AT JUNE 30, 2013 |
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Name | Number of securities underlying unexercised options (#) Exercisable |
Number of securities underlying unexercised options (#) Unexercisable |
Equity Incentive Plan Awards: Number of Securities underlying unexercised unearned options (#) |
Option exercise price ($) |
Option expiration date |
Number of shares or units of stock that have not vested (#) |
Market value of shares or units of stock that have not vested ($) |
Equity incentive plan awards: number of unearned shares, units or other rights that have not vested (#) |
Equity incentive plan awards: Market or payout value of unearned shares, units or other rights that have not vested (#) |
Dr. Lee Ying Chiu, Herbert1 | - |
- |
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Mr. Con Unerkov2 | - |
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Mr. Xiong Xu3 | - |
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Mr. Sau Shan Ku4 | - |
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1. |
Dr. Lee Ying Chiu, Herbert was appointed as our CEO, President and Director of the Company on July 18, 2012. |
2. | Mr. Con Unerkov was appointed as our Director on May 4, 2012, as our CFO on May 18, 2012 and as our Treasurer and Secretary on July 18, 2012. |
3. | Mr. Xiong Xu resigned as President and Chief Executive Officer and Director of Oakridge May 4, 2012. |
4. | Mr. Sau Shan Ku resigned as Chairman, Treasurer, Secretary, Chief Executive Officer, and Director of Company on July 18, 2012. |
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Compensation of Director |
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Name | Fees
Earned or Paid in Cash |
Stock
Awards |
Option
Awards |
Non-Equity
Incentive Plan Compensation |
Nonqualified
Deferred Compensation Earnings |
All
Other Compensation |
Total |
Lee Ying Chiu, Herbert1 | - |
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- |
- |
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- |
- |
Con Unerkov2 | - |
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Xiong Xu 3 | - |
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Sau Shan Ku4 | - |
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1. |
Dr. Lee Ying Chiu, Herbert was appointed as our CEO, President and Director of the Company on July 18, 2012. |
2. | Mr. Con Unerkov was appointed our Director on May 4, 2012, as our CFO on May 18, 2012 and as our Treasurer and Secretary on July 18, 2012. |
3. | Mr. Xiong Xu resigned as President and Chief Executive Officer and Director of Oakridge on May 4, 2012. |
4. | Mr. Sau Shan Ku resigned as Chairman, Treasurer, Secretary, Chief Executive Officer, and Director of Oakridge on July 18, 2012. |
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ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT RELATED STOCKHOLDER MATTERAS. |
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Name | Security |
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Percentage |
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Shuet Ping LEUNG of Block C, Flat 6, 30th Floor, Mount Lodge, Quarry Bay, Hong Kong | Common |
1,800,000 |
27.65% |
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Ying Chiu Herbert LEE of 7/F., Siu On Centre, 188 Lockhart Road, Wanchai, Hong Kong | Common |
4,000,000 |
61.44% |
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All executive officers and directors as a group [2 persons] | Common |
4,000,000 |
61.44% |
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Except for |
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* |
Prior to being appointed as a Director, President and CEO of the Company, Mr. Michael Burney provided consulting services in the amount of $25,000 to the Company. On July 22, 2009 the Company issued 1,250,000 shares of common stock to Mr. Burney as payment for these services. On February 14, 2009, Mr. Burney resigned all his positions in the Company and he subsequently sold his 1,250,000 shares in the Company to Mr. Xiong Xu, the Company's former Director, President, and CEO; |
* |
On May 4, 2012, Mr. Xu tendered his resignation to all his positions in the Company, and on the same day sold all his 1,250,000 shares to Intek Solutions Pty. Limited ("Intek"), which is wholly owned by Mr. Con Unerkov, our current Director and CFO. On June 19, 2012 Intek sold all its shares in the Company to Mr. Shuet Ping Leung; and |
* |
On June 19, 2012 Mr. Sau Shan Ku sold all his shares to Dr. Herbert Ying Chiu Lee who became the new controlling shareholder of the Company. |
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None of the following parties has, since our date of incorporation, had any material interest, direct or indirect, in any transaction with us or in any presently proposed transaction that has or will materially affect us: |
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Any of our directors or officers; |
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Any person proposed as a nominee for election as a director; |
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Any person who beneficially owns, directly or indirectly, shares carrying more than 10% of the voting rights attached to our outstanding shares of common stock; or |
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Any member of the immediate family of any of the foregoing persons. |
ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES. |
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ALL OTHER FEES. None |
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PART IV
ITEM 15. EXIBITS, FINANCIAL STATEMENT SCHEDULES |
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Table of Contents |
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Report of Independent Registered Public Accounting Firm - Albert Wong & Co. LLP. |
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(c) Exhibits. |
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Description |
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Articles of Incorporation (1) |
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Bylaws (1) |
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Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Attached Hereto) |
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Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. (Attached Hereto) |
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Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350. (Attached Hereto) |
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Certification of Chief Financial Officer pursuant to 18 U.S.C. Section 1350. (Attached Hereto) |
1 |
Incorporated by reference to our Registration Statement on Form S-1 filed with the SEC on July 14, 2008 |
* | Filed herewith |
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SIGNATURES |
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Oakridge International Corporation |
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a Nevada corporation | |
/s/ Lee Ying Chiu, Herbert | |
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Lee Ying Chiu, Herbert | |
Chief Executive Officer | |
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By: |
/s/ Lee Ying Chiu, Herbert |
October 14, 2013 |
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Lee Ying Chiu, Herbert | ||
Its: | CEO, President | |
By: | /s/ Con Unerkov | |
-------------------------------------------- | ||
Con Unerkov | ||
Its: | Treasurer, Secretary, CFO |
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Oakridge International Corporation and Subsidiary |
Consolidated Financial Statements |
For the Years Ended June 30, 2013 and 2012 |
Table of Contents |
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Report of Independent Registered Public Accounting Firm MaloneBailey, LLP | F-1 |
Report of Independent Registered Public Accounting Firm - Albert Wong & Co. LLP | F-2 |
Consolidated Financial Statements: | |
Consolidated Balance Sheets as of June 30, 2013 and 2012 | F-3 |
Consolidated Statements of Operations for the years ended June 30, 2013 and 2012 and from October 31, 2007 (Inception) to June 30, 2013 | F-4 |
Consolidated Statements of Stockholders' Deficit - From October 31, 2007 (Inception) to June 30, 2013 | F-5 |
Consolidated Statements of Cash Flows for the years ended June 30, 2013 and 2012 and from October 31, 2007 (Inception) to June 30, 2013 | F-6 |
Notes to Consolidated Financial Statements | F-7 |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
To the Board of Directors and Stockholders of |
Oakridge International Corporation (a development stage company) |
Adelaide, Australia |
We have audited the accompanying consolidated balance sheet of Oakridge International Corporation and its subsidiary (a development stage company) (collectively, the "Company") as of June 30, 2013, and the related consolidated statements of operations, stockholders deficit, and cash flows for the year ended June 30, 2013. 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 audit. The statements of operations, stockholders deficit, and cash flows for the period from October 31, 2007 (inception) through June 30, 2012 were audited by other auditors whose report dated July 13, 2012 expressed an unqualified opinion, with an explanatory paragraph discussing the Companys ability to continue as a going-concern. Our opinion on the statements of operations, stockholders deficit, and cash flows for the period from October 31, 2007 (inception) through June 30, 2013, insofar as it relates to amounts for prior periods through June 30, 2012, is based solely on the report of other auditors. |
We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform an audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audit 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 Companys 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 audit provides a reasonable basis for our opinion. |
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of Oakridge International Corporation and its subsidiary as of June 30, 2013 and the results of their operations and their cash flows for the year then ended and from October 31, 2007 (Inception) to June 30, 2013, in conformity with accounting principles generally accepted in the United States of America. |
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has a working capital deficit as of June 30, 2013 and has suffered recurring losses from operations, which raises substantial doubt about its ability to continue as a going concern. Managements plans regarding those matters are described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty. |
/s/ MaloneBailey, LLP |
www.malonebailey.com |
Houston, Texas |
October 14, 2013 |
F-1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM |
To the Stockholders and Board of Directors |
Oakridge International Corporation |
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/s/ Albert Wong & Co. LLP |
CERTIFIED PUBLIC ACCOUNTANTS |
New York, New York |
July 13, 2012 |
F-2
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
CONSOLIDATED BALANCE SHEETS |
AS OF JUNE 30, 2013 AND 2012 |
June 30, |
June 30, |
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2013 |
2012 |
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ASSETS |
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Current assets: | |||||
Cash and cash equivalents | $ 10,913 |
$ 117 |
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Total assets | $ 10,913 |
$ 117 |
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LIABILITIES AND STOCKHOLDERS' DEFICIT |
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Current liabilities: | |||||
Accrued expenses | $ 4,651 |
$ 9,650 |
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Amounts due to related parties | 257,415 |
72,653 |
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Total current liabilities | 262,066 |
82,303 |
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Stockholders' deficit: | |||||
Common stock,
$0.001 par value, 75,000,000 shares authorized; 6,510,000 shares issued and outstanding |
6,510 |
6,510 |
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Additional paid-in capital | 30,590 |
30,590 |
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Deficit accumulated during the development stage | ( 288,253) |
( 119,286) |
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Total stockholders' deficit | (251,153) |
(82,186) |
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Total liabilities and stockholders' deficit | $ 10,913 |
$ 117 |
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See accompanying notes to the consolidated financial statements.
F-3
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
CONSOLIDATED STATEMENTS OF OPERATIONS |
FOR THE YEARS ENDED JUNE 30, 2013 AND 2012 |
AND FROM OCTOBER 31, 2007 (INCEPTION) TO JUNE 30, 2013 |
October 31, |
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Years Ended |
2007 (Inception) |
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June 30, |
to June 30, |
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2013 |
2012 |
2013 |
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Net revenues | $ - |
$ - |
$ 11,295 |
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Cost of revenues | - |
- |
10,821 |
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Gross profit | - |
- |
474 |
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General and administrative expenses | 168,967 |
55,262 |
291,006 |
|||
Loss from operations | (168,967) |
(55,262) |
(290,532) |
|||
Other income (expenses): | ||||||
Gain on disposal of subsidiary | - |
2,279 |
2,279 |
|||
Net loss | $ (168,967) |
$ ( 52,983) |
$ ( 288,253) |
|||
Weighted average shares outstanding - basic and diluted | 6 ,510,000 |
6 ,510,000 |
||||
Net loss per share - basic and diluted | $ (0.00) |
$ (0.00) |
||||
See accompanying notes to the consolidated financial statements.
F-4
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT |
FROM OCTOBER 31, 2007 (INCEPTION) TO JUNE 30, 2013 |
Deficit |
|||||||||
Accumulated |
Total |
||||||||
Additional |
During the |
Stockholders' |
|||||||
Common stock |
Paid-in |
Development |
Equity |
||||||
Shares |
Amount |
Capital |
Stage |
(Deficit) |
|||||
Balances at October 31, 2007 (inception) | - |
$ - |
$ - |
$ - |
$ - |
||||
Issuance of founder shares for cash at $0.001 per share - November 30 2007 |
4,500,000 |
4,500 |
- |
- |
4,500 |
||||
Sale of shares for cash at $0.01 per share - March 15, 2008 |
760,000 |
760 |
6,840 |
- |
7,600 |
||||
Net loss | - |
- |
- |
(6,142) |
(6,142) |
||||
Balances at June 30, 2008 | 5,260,000 |
5,260 |
6,840 |
(6,142) |
5,958 |
||||
Net loss | - |
- |
- |
(38,689) |
(38,689) |
||||
Balances at June 30, 2009 | 5,260,000 |
5,260 |
6,840 |
(44,831) |
(32,731) |
||||
Issuance of shares for services at $0.02 per share - July 17, 2009 |
1,250,000 |
1,250 |
23,750 |
- |
25,000 |
||||
Net loss | - |
- |
- |
(11,549) |
(11,549) |
||||
Balances at June 30, 2010 | 6,510,000 |
6,510 |
30,590 |
(56,380) |
(19,280) |
||||
Net loss | - |
- |
- |
(9,923) |
(9,923) |
||||
Balances at June 30, 2011 | 6,510,000 |
6,510 |
30,590 |
(66,303) |
(29,203) |
||||
Net loss | - |
- |
- |
(52,983) |
(52,983) |
||||
Balances at June 30, 2012 | 6,510,000 |
6,510 |
30,590 |
(119,286) |
(82,186) |
||||
Net loss | - |
- |
- |
(168,967) |
(168,967) |
||||
Balances at June 30, 2013 | 6,510,000 |
$ 6,510 |
$ 30,590 |
$ (288,253) |
$ (251,153) |
See accompanying notes to the consolidated financial statements.
F-5
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
CONSOLIDATED STATEMENTS OF CASH FLOWS |
FOR THE YEARS ENDED JUNE 30, 2013 AND 2012 |
AND FROM OCTOBER 31, 2007 (INCEPTION) TO JUNE 30, 2013 |
October 31, |
||||||
Years Ended |
2007 (Inception) |
|||||
June 30, |
to June 30, |
|||||
2013 |
2012 |
2013 |
||||
Cash Flows from Operating Activities: | ||||||
Net loss | $ (168,967) |
$ (52,983) |
$ (288,253) |
|||
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
||||||
Common stock issuance for services | - |
- |
25,000 |
|||
Changes in operating assets and liabilities: | ||||||
Accrued expenses | (4,999) |
(2,559) |
4,651 |
|||
Amounts payable to related parties | 54,762 |
55,219 |
127,415 |
|||
Net cash provided by (used in) operating activities | (119,204) |
(323) |
(131,187) |
|||
Cash Flows from Financing Activities: | ||||||
Advances from related parties | 130,000 |
- |
130,000 |
|||
Proceeds from the sale of common stock | - |
- |
12,100 |
|||
Net cash provided by financing activities | 130,000 |
- |
142,100 |
|||
Increase (decrease) in cash | 10,796 |
( 323) |
10,913 |
|||
Cash - beginning of period | 117 |
440 |
- |
|||
Cash - end of period | $ 10,913 |
$ 117 |
$ 10,913 |
|||
Supplemental Disclosures of Cash Flow Information: | ||||||
Interest paid | $ - |
$ - |
$ 1,680 |
|||
Income taxes paid | - |
- |
- |
See accompanying notes to the consolidated financial statements.
F-6
OAKRIDGE INTERNATIONAL CORPORATION |
(A DEVELOPMENT STAGE COMPANY) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
1. NATURE OF OPERATIONS |
Oakridge International Corporation (the "Company") is a Nevada corporation, incorporated on October 31, 2007. The Company is currently a development stage enterprise, as defined by Accounting Standards Codification ("ASC") 915 "Development Stage Entities." The Company's office is located in Hong Kong and its principal business was trading of electronic components, recycling scrap and electronic Printed Circuit Boards ("PCB"), and the establishment of recycling operations in Asia and Australia. |
On March 25, 2008, the Company commenced its operations in the recycling business by entering into a non-exclusive contract to license a proprietary PCB recycling license technology and has begun the evaluation of this technology. In October 2009, the technology agreement expired. The Company is now focusing on the sourcing, marketing and trading of consumer electronic products. |
2. GOING CONCERN |
The Company's consolidated financial statements are prepared using the generally accepted accounting principles applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has generated modest revenues since inception and has never paid any dividends and is unlikely to pay dividends or generate significant earnings in the immediate or foreseeable future. The continuation of the Company as a going concern is dependent upon the ability of the Company to obtain necessary debt or equity financing to continue operations and the attainment of profitable operations. |
From inception through June 30, 2013, the Company has generated modest revenue of $11,295 and has incurred an accumulated deficit since inception totaling $119,286 at June 30, 2012 and $288,253 at June 30, 2013; and its current liabilities for the relevant fiscal year ended 2012 and 2013 exceed its current assets by $82,186 and $251,153. These consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern. These factors noted above raise substantial doubts regarding the Company's ability to continue as a going concern. |
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
Basis of Presentation |
These financial statements and related notes are presented in accordance with accounting principles generally accepted in the United States, and are expressed in U.S. dollars. The Company's fiscal year end is June 30. |
Use of Estimates |
The preparation of financial statements in conformity with generally accepted accounting principles requires 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 the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
F-7
Principles of Consolidation |
The consolidated financial statements for the year ended June 30, 2013 include the financial statements of the Company and its wholly owned subsidiary Oakridge (Hong Kong) Corporation Limited from the date of acquisition on December 28, 2012 to June 30, 2013. The results of subsidiary acquired or sold during the period are consolidated from their effective dates of acquisition or through their effective dates of disposition, respectively. |
All significant inter-company transactions and balances have been eliminated in consolidation. |
Basic and Diluted Net Loss per Share |
The Company computes net loss per share in accordance with ASC 260 "Earnings per Share." ASC 260 requires presentation of both basic and diluted earnings per share (EPS) on the face of the income statement. Basic EPS is computed by dividing net income (loss) available to common shareholders (numerator) by the weighted average number of shares outstanding (denominator) during the period. Diluted EPS gives effect to all dilutive potential common shares outstanding during the period using the treasury stock method and convertible preferred stock using the if-converted method. In computing diluted EPS, the average stock price for the period is used in determining the number of shares assumed to be purchased from the exercise of stock options or warrants. Diluted EPS excludes all dilutive potential shares if their effect is anti dilutive. |
Fair Value of Financial Instruments | |
FASB ASC 820 "Fair Value Measurements" establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. The hierarchy prioritizes the inputs into three levels based on the extent to which inputs used in measuring fair value are observable in the market. |
|
These tiers include: | |
- | Level 1 - defined as observable inputs such as quoted prices in active markets; |
- | Level 2 - defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and |
- | Level 3 - defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. |
The carrying amounts of financial assets and liabilities, such as cash and cash equivalents, accounts receivable, notes receivable, other receivables, advances to suppliers, accounts payable, notes payable, other payables and accrued expenses and advances from customers, approximate their fair values because of the short maturity of these instruments. |
Cash and Cash Equivalents |
The Company considers all liquid investments with a maturity of three months or less from the date of purchase that are readily convertible into cash to be cash equivalents. |
F-8
Income Taxes |
Deferred tax assets and liabilities are recognized for the future tax consequence attributable to differences between the financial statement 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 be applied to taxable income in the years in which those temporary differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the statement of operations in the period that includes the enactment date. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. |
The Company follow FASB ASC 740 Which addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under FASB ASC 740, we may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. FASB ASC 740 also provides guidance on recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. At June 30, 2013 and 2012, the Company did not have a liability for unrecognized tax benefits. |
Foreign Currency Translation |
The Company's functional and reporting currency is the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated in accordance with ASC 830 "Foreign Currency Translation" using the exchange rate prevailing at the balance sheet date. Gains and losses arising on translation or settlement of foreign currency denominated transactions or balances are included in the determination of income. Foreign currency transactions are primarily undertaken in Hong Kong dollars. The Company has not, to the date of these financial statements, entered into derivative instruments to offset the impact of foreign currency fluctuations. |
Stock-based Compensation |
Share-based compensation including stock options and common stock awards granted to employees and directors for services and are accounted for in accordance with FASB ASC 718 "Compensation - Stock Compensation" and share-based compensation including warrants and common stock awards granted to consultants and nonemployees are accounted for in accordance with FASB ASC 505-50 "Equity-Based Payment to Non-employees. |
All grants of common stock awards and stock options/warrants to employees and directors are recognized in the financial statements based on their grant date fair values. Awards to consultants and nonemployees are recognized based upon their fair value as of the earlier of a commitment date or completion of services. |
The Company estimates fair value of common stock awards based the quoted price of the Company's common stock on the date of grant. The fair value of stock options and warrants is determined using the Black-Scholes option pricing model. |
F-9
Revenue Recognition |
The Company recognizes its revenue in accordance with ASC 605 "Revenue Recognition." Revenue is recognized upon shipment, provided that evidence of an arrangement exists, title and risk of loss have passed to the customer or services have been provided, fees are fixed or determinable and collection of the related receivable is reasonably assured. Revenue is recorded net of estimated product returns, which is based upon the Company's return policy, sales agreements, management estimates of potential future product returns related to current period revenue, current economic trends, changes in customer composition and historical experience. |
Recently Issued Accounting Pronouncements |
The Company does not expect the adoption of any recently issued accounting pronouncements to have a significant impact on its financial position, results of operations or cash flows. |
4. RELATED PARTY TRANSACTIONS |
On April 1, 2012 the Company entered into a service agreement with Asiarim Associates Limited to provide consulting, corporate, accounting, Edgar filing and company secretarial services to the Company on a monthly fee of $10,000 for a period from April 1, 2012 to December 31, 2012. Under the agreement, the Company is obligated to pay the fee for the first two months and then the remainder of the fees shall only be paid once the Company can raise funds. Asiarim Associates Limited is majority owned by our former director and CEO, Mr. Sau Shan Ku. |
On May 1, 2012 the Company entered into a service agreement with Intek Solutions Pty Limited ("Intek") to provide consulting services to manage and develop the Company's business for a monthly fee of $10,000 for a period from May 1, 2012 to December 31, 2012. Under the agreement, the Company is obligated to pay the fee for the first two months and then the remainder of the fees shall only be paid once the Company has raise funds. Intek is wholly owned by the current director Mr. Con Unerkov. |
On May 4, 2012, Mr. Xiong Xu sold all of his 1,250,000 shares in the Company to Intek. On the same date, (i) Mr. Xiong Xu also tendered his resignation as CEO, President and member of the board of directors of the Company, (ii) Mr. Sau Shan Ku was appointed as CEO and President of the Company and (iii) Mr. Con Unerkov was appointed to as a member of the board of directors of the Company. |
As a result, our current director, Mr. Con Unerkov, indirectly held 1,250,000 shares through Intek, representing about 19.2% equity interest, in the Company. On June 19, 2012 Intek sold all its shares in the Company to Mr. Shuet Ping Leung. |
On June 19, 2012 Mr. Sau Shan Ku sold all his shares to Mr. Herbert Ying Chiu Lee who became the new controlling shareholder of the Company. |
During the year ended June 30, 2013, the President paid $9,187 in expenses on behalf of the Company. This amount is unsecured, non-interest bearing, and due on demand. |
During the year ended June 30, 2013, Marvel Digital Limited, a company controlled by the President, paid $140,881 in expenses on behalf of the Company and advanced $130,000 to the Company. As of June 30, 2013, $248,228 was due. This amount is unsecured, non-interest bearing, and due on demand. |
F-10
5. STOCKHOLDERS' EQUITY |
As of June 30, 2013, the Company has 75,000,000 shares authorized and 6,510,000 shares issued and outstanding. |
From inception through June 30, 2013, the Company issued an aggregate of 4,500,000 shares to founders for cash of $4,500, issued 760,000 shares for cash of $7,600 and issued 1,250,000 shares for services valued at $25,000. |
6. INCOME TAXES | |
No provision was made for income tax for the period from October 31, 2007 (Inception) to June 30, 2013 as the Company and its subsidiary had operating losses. For the period from October 31, 2007 (Inception) to June 30, 2013, the Company and its subsidiary incurred net operating losses for tax purposes of approximately $288,253. The Companys total net operating loss carry-forward was $288,253 as of June 30, 2013. The net operating loss carry-forward may be used to reduce taxable income through the year 2026. The availability of the Company's net operating loss carry-forwards is subject to limitation if there is a 50% or more change in the ownership of the Company's stock.. |
|
There was no significant difference between reportable income tax and statutory income tax. The gross deferred tax asset balance as of June 30, 2013 was approximately $100,889. A 100% valuation allowance has been established against the deferred tax asset, as the utilization of the loss carry-forwards cannot reasonably be assured. |
|
As reconciliation between the income taxes computed at the United States and Hong Kong statutory rate and the Group's provision for income taxes is as follows: |
|
|
|
United States federal income tax rate | 35% |
Valuation allowance-US federal income tax | 35% |
Provision for income tax | - |
Hong Kong statutory rate | 16.5% |
Valuation allowance - Hong Kong Rate | 16.5% |
Provision for income tax | - |
F-11