UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

  

For the quarterly period ended September 30, 2013

 

[ ]	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

  

Commission File Number: 000-52692

 

SAGA ENERGY, INC. 

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 (Exact name of registrant as specified in its charter)

 

	Florida		65-0921319
	(State or other Jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number)
	1509 East Chapman Ave, Orange, CA		92866
	(Address of principal executive offices)		(Zip Code)

 

(714) 532-1500

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 (Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  ☑   No  ☐

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes☑   No  ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

	Large accelerated filer   ☐	Accelerated filer   ☐
	Non-accelerated filer   ☐	Smaller reporting company   ☑
	(Do not check if a smaller reporting company)

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes☐ No☑

As of October 30, 2013, the number of shares of common stock outstanding was 49,100,000.

 

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FORM 10-Q

FOR THE QUARTER ENDED September 30, 2013

 

TABLE OF CONTENTS

 

		Page
PART I—FINANCIAL INFORMATION
Item 1.  Financial Statements.		1
Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations.		9
Item 3.  Quantitative and Qualitative disclosures about Market Risk.		12
Item 4.  Controls and Procedures.		12
PART II—OTHER INFORMATION
Item 1.  Legal Proceedings.		13
Item1A.  Risk Factors.		13
Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds.		13
Item 3.  Defaults Upon Senior Securities.		13
Item 4.  Mine Safety Disclosures.		13
Item 5.  Other Information.		13
Item 6.  Exhibits.		13
SIGNATURES		14
EXHIBIT INDEX		15

 

  

PART I - FINANCIAL INFORMATION

 

ITEM 1.                      FINANCIAL STATEMENTS

 

SAGA ENERGY, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED BALANCE SHEETS

SEPTEMBER 30, 2013 AND DECEMBER 31, 2012

(UNAUDITED)

 

		September 30, 2013				December 31, 2012
ASSETS
CURRENT ASSETS
Cash		$	140			$	6,684
Accounts receivable – related entity			187				187
TOTAL CURRENT ASSETS			327				6,871
OIL FIELD SERVICE EQUIPMENT, NET OF ACCUMULATED DEPRECIATION OF $26,529 AND $15,586			75,606				86,549
TOTAL ASSETS		$	75,933			$	93,420
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
CURRENT LIABILITIES
Accounts payable
Related		$	19,852			$	19,852
Unrelated			67,506				53,470
Note payable, stockholder			215,919				166,530
Accrued expenses			16,487				6,575
TOTAL CURRENT LIABILITIES			319,764				246,427
STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred stock, no stated value; Authorized - 10,000,000 shares; Issued and outstanding -0- shares			-				-
Common stock, no par value; Authorized - 100,000,000 shares; Issued and outstanding - 49,100,000 shares at September 30, 2013 and 49,100,000 at December 31, 2012			544,972				544,972
Accumulated deficit			(788,803	)			(697,979	)
TOTAL STOCKHOLDERS’ EQUITY (DEFICIT)			(243,831	)			(153,007	)
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)		$	75,933			$	93,420

 

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

  

 

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SAGA ENERGY, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(UNAUDITED)

 

 

		Three Month Periods Ended September 30,								Nine Month Periods Ended September 30,
		2013				2012				2013				2012
REVENUES		$	-			$	-			$	-			$	16,200
OPERATING EXPENSES			14,376				51,836				80,912				200,607
NET (LOSS) FROM OPERATIONS			(14,376	)			(51,836	)			(80,912	)			(184,407	)
INTEREST			3,589				3,205				9,912				3,205
NET (LOSS)		$	(17,965	)		$	(55,041	)		$	(90,824	)		$	(187,612	)
NET (LOSS) PER SHARE - BASIC AND DILUTED		$	-			$	-			$	-			$	-
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING - BASIC AND DILUTED			49,105,907				49,105,907				49,105,907				49,105,907

 

 

 

The accompanying notes are an integral part of these financial statements

 

 

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SAGA ENERGY, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(UNAUDITED)

 

		2013				2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net (loss) from continuing operations		$	(90,824	)		$	(187,612	)
Net (loss) from discontinued operations			-				-
Adjustments to reconcile net (loss) to net cash (used) by operating activities:
Depreciation			10,943				10,943
Recovery of consulting fees due to cancellation of common stock			-				(223	)
Changes in operating assets and liabilities:
Accounts receivable			-				7,013
Advance to related entity			-				4,000
Prepaid expenses			-				(10,000	)
Other receivable			-				750
Accounts payable			14,037				24,533
Accrued expenses			9,912				(15,796	)
NET CASH (USED) IN OPERATING ACTIVITIES			(55,932	)			(166,392	)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of oil field service equipment			-				(18,557	)
NET CASH (USED) BY INVESTING ACTIVITIES			-				(18,557	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from notes payable, stockholder			49,388				134,430
Repayment of Notes Payable			-				-
Proceeds from note payable, related entity			-				5,000
NET CASH (USED) IN OPERATING ACTIVITIES			49,388				139,430

 

The accompanying notes are an integral part of these financial statements

 

 

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SAGA ENERGY, INC. AND SUBSIDIARY

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012

(UNAUDITED)

 

		2013				2012
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		$	(6,544	)		$	(45,519	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD			6,684				45,995
CASH AND CASH EQUIVALENTS, END OF PERIOD		$	140			$	476
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
CASH PAID DURING THE YEAR FOR:
Interest		$	-			$	-
Taxes		$	-			$	125
NON-CASH FINANCING ACTIVITIES
Common stock re-purchased due to cancelled contract		$	-			$	223

  

The accompanying notes are an integral part of these financial statements

 

 

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SAGA ENERGY, INC. AND SUBSIDIARY

 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

 

NOTE 1                      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Nature of Business and History of Company

 

Saga Energy, Inc. (unless otherwise indicated, together with its subsidiary, Saga Services & Equipment, Inc., “the Company”), formerly known as Don Marcos Trading Co., was incorporated on May 11, 1999 in the state of Florida.  On August 15, 2011, control of the Company changed due to the majority stockholders selling their stock to a new group of stockholders.  The Company now concentrates on conducting activities in the energy industry, including leasing the Cardwell A150 Pulling Unit (Year: 1985, Model: DC9364B) (the “Workover Rig”) that the Company completed refurbishing on March 19, 2012 and expanding into the upstream sector of the oil industry in the United States.

 

Saga Services & Equipment, Inc. was formed on December 22, 2011 in the state of Texas.  The Company’s operations consist of leasing an oil field service rig in the state of Oklahoma.

 

Principles of Consolidation

 

For the nine months ended September 30, 2013, the Company was consolidated with its wholly-owned subsidiary, Saga Services & Equipment, Inc.  All inter-company accounts and transactions have been eliminated. 

 

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.

 

Cash and Cash Equivalents

 

For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with an original maturity of three months or less to be cash equivalents.

 

Fair value of financial instruments

 

For certain Company instruments, including cash, accounts receivable, accounts payable and accrued expenses, the carrying amounts approximate fair value due to their short maturities.

 

 

 

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SAGA ENERGY, INC. AND SUBSIDIARY

 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

 

NOTE 1                      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

   Common Stock Issued for Non-Cash Transaction

 

It is the Company’s policy to value stock issued for non-cash transactions, such as services, at the fair market value of the goods or services received or the consideration granted, whichever is more readily determinable, at the date the transaction is negotiated.

 

Revenue Recognition

 

Saga Energy, Inc. did not have any revenue for the three and nine months ended September 30, 2013.

 

Saga Services & Equipment, Inc. did not have any revenue for the three and nine months ended September 30, 2013.

 

Net Loss Per Share

 

The Company adopted ASC 260, “Earnings Per Share,” that requires the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflect the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In accordance with ASC 260, any anti-dilutive effects on net income (loss) per share are excluded.

 

Allowance for Doubtful Accounts

 

The allowance for doubtful accounts on accounts receivable is charged to income in amounts sufficient to maintain the allowance at a level management believes is adequate to cover any probable losses. Management determines the adequacy of the allowance based on expected collectability.

 

Oil Field Service Equipment

 

Oil field service equipment is stated at cost.  Major renewals and improvements are charged to the asset accounts while replacements, maintenance and repairs, which do not improve or extend the lives of respective assets, are expensed.  At the time the equipment is retired or otherwise disposed of, the assets and related depreciation accounts are relieved of the applicable amounts.  Gains or losses from retirements or sales are credited or charged to income.

 

The Company depreciates its oil field service equipment for financial reporting purposes using the straight-line method over a seven year period.

 

 

 

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SAGA ENERGY, INC. AND SUBSIDIARY

 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

 

NOTE 1                      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

 

Income Taxes

 

The Company follows the accounting principle for uncertainty in income tax guidance which clarifies the accounting and recognition for tax positions taken or expected to be taken in its income tax returns. The Company’s income tax filings are subject to audit by various taxing authorities.  The Company’s open audit periods are 2008 to 2012.  In evaluating the Company’s tax provisions and accruals, future taxable income, the reversal of temporary differences, and tax planning strategies are considered.

 

NOTE 2                     GOING CONCERN

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business.

 

The Company’s activities since inception have been financially sustained by issuance of common stock, stockholder contributions, and related party loans. The Company may raise additional funding to continue its operations through contributions from the current stockholders and stock issuance to other investors.

 

The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital from the sale of common stock and, ultimately, the achievement of significant operating revenues. The accompanying financial statements do not include any adjustments that might be required should the Company be unable to recover the value of its assets or satisfy its liabilities.

 

Management’s plan to eliminate the going concern situation includes, but is not limited to, obtaining investors to fund the working capital needs of the Company.

 

 

 

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SAGA ENERGY, INC. AND SUBSIDIARY

 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

 

NOTE 3                     RELATED PARTIES

 

The Company had multiple transactions with various related parties during the nine months ended September 30, 2013.  These included expenses of $90,824.

In addition, on September 30, 2013 , the Company entered into a one-year $7,266 promissory note with Blue Sky Energy & Power, Inc. (BSEP), one of our stockholders and an affiliate of our majority stockholder, with interest accruing at a rate of 7% per annum and payable quarterly (the “BSEP Note”).

 

 

NOTE 4                     NOTES PAYABLE, SHAREHOLDER

 

As of September 30, 2013, the Company had notes payable from an officer-shareholder of the Company. At September 30, 2013 and December 31, 2012, the outstanding amount of the notes was $215,919 and $166,530, respectively. The notes, which were unsecured, accrued interest at 7%.

 

 

NOTE 5                     SUBSEQUENT EVENTS

 

The Company’s management has reviewed all material events through the date of this report in accordance with ASC 855-10.

 

 

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ITEM 2.      MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

The following discussion and analysis should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this report.

 

Overview

 

We were incorporated on May 11, 1999 in the state of Florida.  On August 15, 1011, the control of the company changed due to the majority stockholders selling their stock to a new group of stockholders.  After the sale, we now concentrate on conducting activities in the energy industry, including leasing the Workover Rig that we completed refurbishing on March 19, 2012 and expanding into the upstream sector of the oil industry in the United States.  After the sale, we changed our name to Saga Energy, Inc. from Don Marcos Trading Co. and changed our trading symbol on the Over-the-Counter Quotation Bureau (OTC QB) from DNMO to SAGA.

 

Saga Services & Energy, Inc. was formed on December 22, 2011 in the state of Texas.  Its operations consist of leasing an oil field service rig in the state of Oklahoma.

 

Critical Accounting Policies

 

Our discussion and analysis of our financial condition and results of operations are based upon our financial statements, which have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses. In consultation with our Board of Directors, we have identified several accounting principles that we believe are key to the understanding of our financial statements. These important accounting policies require management’s most difficult, subjective judgments.

 

Principles of Consolidation

 

For the nine months ended September 30, 2013, we were consolidated with our wholly-owned subsidiary, Saga Services & Equipment, Inc.  All inter-company accounts and transactions have been eliminated.

 

Revenue Recognition

 

Saga Energy, Inc. did not have any revenue for the nine months ended September 30, 2013.

 

Saga Services & Equipment, Inc. recognizes revenue from the leasing of an oil field service rig when the services are completed. 

 

Oil Field Service Equipment

 

Oil field service equipment is stated at cost.  Major renewals and improvements are charged to the asset accounts while replacements, maintenance and repairs, which do not improve or extend the lives of respective assets, are expensed.  At the time the equipment is retired or otherwise disposed of, the assets and related depreciation accounts are relieved of the applicable amounts.  Gains or losses from retirements or sales are credited or charged to income.

 

We depreciate our oil field service equipment for financial reporting purposes using the straight-line method over a seven year period.

 

 

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Common Stock

 

On February 13, 2012, we cancelled our agreement for financial advisory and investment banking services with an investment banking firm.  The investment banking firm returned for cancellation the 25,000 shares of common stock it received under the contract.

 

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 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.

 

Net Loss Per Share

 

We adopted ASC 260, “Earnings Per Share” that requires the reporting of both basic and diluted earnings (loss) per share. Basic earnings (loss) per share is computed by dividing net income (loss) available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. In accordance with ASC 260, any anti-dilutive effects on net income (loss) per share are excluded.

 

Stock Issued for Non Cash Transactions

 

It is our policy to value stock issued for non-cash transactions, such as services, at the fair market value of the goods or services received or the consideration granted, whichever is more readily determinable, at the date the transaction is negotiated.

 

There were no shares of common stock issued for services during the nine months ended September 30, 2013 and 2012.

 

Going Concern

 

Our financial statements are prepared using 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. Our ability to continue as a going concern is dependent upon our ability to locate sources of capital, and attain future profitable operations. Our management is currently initiating our business plan. The accompanying financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern.

 

Results of Operations

 

Our operations currently consist of the leasing of the Workover Rig.  Due to the age of the Workover Rig and federal and state regulations, however, we only lease the Workover Rig for five-day periods.

 

Our operations are affected by weather conditions, as operators will shut down rig activity for safety reasons when they anticipate inclement weather.  Oklahoma faced an abundance of bad weather thus far this year, adversely affecting our results of operations.  We hope for better weather conditions as the year progresses.

 

You should read the selected financial data set forth below along with our discussion and our financial statements and the related notes. We have derived the financial data from our financial statements. We believe the financial data shown in the table below includes all adjustments only consisting of normal recurring adjustments, that we consider necessary for a fair presentation of such information. Operating results for the period are not necessarily indicative of the results that may be expected in the future.

 

 

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Results for the Three and Nine Months Ended September 30, 2013 compared to the Three and Nine Months Ended September 30, 2012 (unaudited)

 

		Nine Months Ended September 30, 2013 (Unaudited)				Nine Months Ended September  30, 2012 (Unaudited)				Three Months Ended September 30, 2013 (Unaudited)				Three Months Ended September 30, 2012 (Unaudited)
Revenue - related entity		$	0			$	16,200			$	0			$	0
Operating expenses			80,912				200,607				14,376				51,836
Net (loss) from Operations			(80,912	)			(184,407	)			(14,376	)			(51,836	)
Interest			9,912				3,205				3,589				3,205
Net (loss)		$	(90,824	)		$	(187,612	)		$	(17,965	)		$	(55,041	)
Net (loss) per share		$	(0.00	)		$	(0.00	)		$	(0.00	)		$	(0.00	)

  

  

Saga Energy, Inc. did not have any revenue for the nine months ended September 30, 2013.  Saga Services & Equipment, Inc. did not have any revenue from operations for the nine months ended September 30, 2013.  Saga Services & Equipment, Inc had $16,200 revenue from operations for the nine months ended September 30, 2012.

 

Operating Expenses

 

We had operating expenses of $80,912 for the nine months ended September 30, 2013 mainly due to legal, professional, and consulting fees, and contract services.  We had operating expenses of $200,607 for the nine months ended September 30, 2012 mainly due to legal, professional, and consulting fees, and contract services.

 

Net Loss

 

Primarily as a result of our operating expenses, we had a net loss of $90,824 for the nine months ended September 30, 2013.  As a result of our operating expenses, we had a net loss from of $187,612for the nine months ended September 30, 2012. 

 

Liquidity and Capital Resources

 

We currently have no material commitments for capital expenditures.

 

 

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Working capital is summarized and compared as follows:

 

		September 30, 2013				September 30, 2012
Current Assets		$	327			$	10,663
Current Liabilities			319,764				217,796
Deficit		$	(319,437	)		$	(207,133	)

 

The changes in our working capital are primarily due to the BSEP Notes and increased expenditures during the nine months ended September 30, 2013.

 

 

Changes in cash flows are summarized as follows:

 

Our net cash used by operations was $55,932 for the nine months ended September 30, 2013. During the nine months ended September 30, 2013, we experienced a net loss of $90,824, which included noncash items such as depreciation in the amount of $10,943. We had cash provided by an increase in accounts payable of $14,037, and an increase of accrued expenses of $9,912.

 

Our net cash used by operations for the nine months ended September 30, 2012 was $166,392.  During the nine months ended September 30, 2012, we experienced a net loss of $187,612, which included noncash items such as depreciation in the amount of $10,943 and a recovery of consulting fees due to the cancellation of a contract in the amount of $223.  We had cash provided by repayment of an advance to a related entity in the amount of $4,000, a decrease in accounts receivable of $7,013, a decrease in other receivable of $750, and an increase in accounts payable of $24,533. There were offset by an increase in prepaid expenses of $10,000 and a decrease in accrued expenses of $15,796.

 

There was not net cash used by, or provided from investing activities for the nine months ended September 30, 2013.

 

There was cash used by investing activities of $18,557 for the nine months ended September 30, 2012 due to the purchase of equipment to complete the refurbishment of the Workover Rig.

 

Cash provided by financing activities for the nine months ended September 30, 2013 and 2012 was $49,388 and $134,430, respectively. We had proceeds from the BESP Notes of $49,388 for the nine months ended September 30, 2013. We had proceeds from the BESP Notes of $134,430 and proceeds from a related party note of $5,000 for the nine months ended September 30, 2012.

 

ITEM 3.                        QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide information under this item.

 

ITEM 4.                       CONTROLS AND PROCEDURES

 

Evaluation of Disclosure Controls and Procedures

 

Our President and Chief Financial Officer have evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934) as of the end of period covered by this report.  Based upon such evaluation, the President and Chief Financial Officer concluded that our disclosure controls and procedures were effective to ensure that the information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and is accumulated and communicated to our management, including our President and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure.

 

Changes in Internal Control over Financial Reporting

 

There were no changes in our internal control over financial reporting during the period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 

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PART II - OTHER INFORMATION

 

ITEM 1.                        LEGAL PROCEEDINGS

 

To the best knowledge of our management, there are no legal proceedings pending or threatened against us.

 

ITEM 1A.                    RISK FACTORS

 

We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide information under this item.

 

ITEM 2.                        UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

 

None.

 

ITEM 3.                        DEFAULTS UPON SENIOR SECURITIES

 

None.

 

ITEM 4.                        MINE SAFETY DISCLOSURES

 

Not applicable.

 

ITEM 5.                        OTHER INFORMATION

 

The information required by this item is included in “Notes to Condensed Consolidated Financial Statements – Note 5 - Related Parties.”

 

ITEM 6.                        EXHIBITS

 

The information required by this Item is set forth on the Exhibit Index at the end of this report.

 

 

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SIGNATURES

 

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

 

DATED: November 12, 2013
	/s/ Ilyas Chaudhary
	BY: Ilyas Chaudary
	ITS: President and Chief Executive Officer
	(Principal Executive Officer)
	/s/ Ricardo Hsu
	BY: Ricardo Hsu
	ITS: Chief Financial Officer
	(Principal Financial Officer and Principal Accounting Officer)

 

 

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EXHIBIT INDEX

 

Exhibit Number		Description
31.1		Certification by the Chief Executive Officer of Registrant pursuant to the Securities Exchange Act of 1934, Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification by the Chief Financial Officer of Registrant pursuant to the Securities Exchange Act of 1934, Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1		Certifications Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*		XBRL Instance Document
101.SCH*		XBRL Taxonomy Extension Schema Document
101.CAL*		XBRL Taxonomy Extension Calculation Linkbase Document.
101.LAB*		XBRL Taxonomy Extension Label Linkbase Document.
101.PRE*		XBRL Taxonomy Extension Presentation Linkbase Document.
101.DEF*		XBRL Taxonomy Extension Definition Linkbase Document.

 

* Pursuant to Rule 406T of Regulation S-T, the interactive data files on Exhibit 101 hereto are deemed not filed or part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, are deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise are not subject to liability under those sections.

 

 

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