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EX-31.1 - CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002 OF THE PRINCIPAL EXECUTIVE OFFICER, PRINCIPAL FINANCIAL OFFICER AND PRINCIPAL ACCOUNTING OFFICER - RESOLUTE ONCOLOGY INCex311q093013.htm
EXCEL - IDEA: XBRL DOCUMENT - RESOLUTE ONCOLOGY INCFinancial_Report.xls
EX-32.1 - CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 OF THE PRINCIPAL EXECUTIVE OFFICER, PRINCIPAL FINANCIAL OFFICER AND PRINCIPAL ACCOUNTING OFFICER - RESOLUTE ONCOLOGY INCex321q093013.htm

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC20549

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
 
For the Transition Period From ________ to _________

Commission File Number 333-166848

Resolute Oncology, Inc.
 (Exact name of registrant as specified in its charter)

Nevada
 
27-0535237
(State or other jurisdiction of
 
(I.R.S. Employer
incorporation or organization)
 
Identification No.)
     
4759 Kester Avenue
   
Sherman Oaks, CA
 
91403
(Address of principal executive offices)
 
(Zip Code)

310-780-1558
(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 þ  No o
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, 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 o  Noþ
 
Indicate by check mark whether the registrant is a large accelerated filed, 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 o Accelerated filer o  
  Non-accelerated filer o (Do not check if a smaller reporting company) Smaller reporting company þ  
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.)
                                                Yes o    Noþ
 
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
 
Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.
 
[  ]
YES
[X ]
NO
 
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of November 10, 2013, our company had 41,586,000 common shares issued and outstanding.


 
 

 



PART I - FINANCIAL INFORMATION

ITEM 1.
FINANCIAL STATEMENTS

The financial statements of Resolute Oncology, Inc., (“Resolute Oncology”, the “Company”, or the “Registrant”) a Nevada corporation, included herein were prepared, without audit, pursuant to rules and regulations of the Securities and Exchange Commission.  Because certain information and notes normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America were condensed or omitted pursuant to such rules and regulations, these financial statements should be read in conjunction with the financial statements and notes thereto included in the audited financial statements of the Company in the Company's Form 10K for the fiscal year ended December 31, 2012, and all amendments thereto.

RESOLUTE ONCOLOGY, INC.
(FORMERLY PEQUOT RESOURCES, INC.)
(A DEVELOPMENT STAGE COMPANY)
INTERIM UNAUDITED FINANCIAL STATEMENTS
PERIOD ENDED SEPTEMBER 30, 2013


INDEX TO FINANCIAL STATEMENTS:
Page
   
Consolidated Balance Sheets
3
   
Consolidated Statements of Operations
4
   
Consolidated Statements of Cash Flows
5
   
 
Notes to Unaudited Consolidated Financial Statements
 
6-10

2
 
 

 

Resolute Oncology, Inc.
(Formerly Pequot Resources, Inc.)
(A Development Stage Company)
Consolidated Balance Sheets
 
 
ASSETS
      September 30,     December 31,
      2013
(unaudited)
    2012
Current Assets
         
 
Cash and cash equivalents
$
                    28,316
 
$
                 1,079,044
 
Advance on business transaction
 
                                -
   
                    637,585
 
Inventory
 
                      40,964
   
                                -
 
Prepaid
 
                      11,170
   
                                -
 
Total current assets
 
                    80,450
   
                 1,716,629
Property and Equipment
         
 
Accumulated depreciation
 
                       (1,502)
   
                       (1,079)
 
Computer equipment
 
                        1,690
   
                        1,690
 
Total property and equipment
 
188
   
                           611
Other Assets
         
 
Goodwill
 
                 1,103,574
   
                                -
 
Total other assets
 
                 1,103,574
   
                                -
 
Total assets
$
                 1,184,212
 
$
                 1,717,240
           
LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)
Current Liabilities
         
 
Accounts payable and accrued expenses
$
                    742,841
 
$
                      30,858
 
Accrued interest
 
2,536
   
                        1,132
 
Related party payable
 
                      47,167
   
                      49,167
 
Note payable
 
                    575,000
   
                    500,000
 
Convertible note payable, net
 
                      214,135
   
                                -
 
Payable on purchase
 
                    337,998
   
                                -
 
Payroll payable
 
4,547
   
                                -
 
Other payable
 
                       (1,033)
   
                                -
 
Stock subscription payable
 
                                -
   
                 1,208,000
 
Total current liabilities
 
                 1,923,191
   
                 1,789,157
 
Total liabilities
 
                 1,923,191
   
                 1,789,157
Commitments and Contingencies
 
  -
   
  -
Stockholders' Equity (Deficit)
         
 
Common stock, $.001 par value,
         
 
412,000,000 shares authorized;
         
 
41,586,000 and 37,400,000 shares issued
         
 
and outstanding, respectively
 
                      41,586
   
                      37,400
 
Additional paid-in capital
 
2,436,414
   
                       (2,400)
 
Deficit, accumulated during the development stage
 
                (3,192,297)
   
                   (106,917)
 
Translation adjustment
 
                       (24,682)
   
                                -
 
Total stockholders’ equity (deficit)
 
                     (738,979)
   
                     (71,917)
 
Total liabilities and stockholders’ equity (deficit)
$
                 1,184,212
 
$
                 1,717,240
 
The accompanying notes are an integral part of these financial statements.
 

 

 
 

 


Resolute Oncology, Inc.
(Formerly Pequot Resources, Inc.)
(A Development Stage Company)
Consolidated Statements of Operations
(Unaudited)
                             
    For Three Months Ended September 30,     For Nine Months Ended September 30,     Accumulated from June 23, 2009 (inception) through September 30,
    2013     2012     2013     2012     2013
Revenue
$
189,148
 
$
                  -
 
$
        251,343
 
$
                 -
 
$
                    251,343
                               
Cost of Goods Sold
 
90,204
   
 -
   
130,494 
   
 -
   
130,494 
                               
Gross Profit
 
98,944
   
         -
   
     120,849
   
          -
   
          120,849
                             
Operating Expenses
                           
 
Consulting
 
224,995
   
           -
   
727,906
   
          -
   
           729,906
 
Debit discount interest expense
 
135,865
   
           -
   
      214,135
   
           -
   
           214,135
 
Discontinued business transaction
-
   
          -
   
   1,434,405
   
          -
   
      1,434,405
 
Exploration
 
-
   
          -
   
                 -
   
   500
   
              6,390
 
Impairment of mineral interest
 
-
   
 -
   
                 -
   
 -
   
             10,000
 
Legal and accounting
 
143,616
   
 2,315
   
     222,513
   
10,680
   
         277,096
 
Rent
 
13,923
   
   
        23,600
   
 -
   
              23,600
 
Salaries
 
181,076
   
   
      282,381
   
 -
   
           282,381
 
Operation and administration
 
187,475
   
  4,973
   
      299,899
   
17,781
   
          332,711
 
Total operating expense
 
886,950
   
7,288
   
   3,204,839
   
  28,961
   
       3,310,624
Net loss from operations
 
(788,006)
   
 (7,288)
   
(3,083,990)
   
(28,961)
   
  (3,189,775)
Other income (expense)
                           
 
Interest income
 
3
   
 -
   
               13
   
   
                   13
 
Interest expense
 
(434)
   
  (380)
   
       (1,403)
   
  (703)
   
            (2,535)
Total other income (expense)
 
(431)
   
     (380)
   
       (1,390)
   
  (703)
   
          (2,522)
Net loss prior to income tax
 
(788,437)
   
(7,668)
   
 (3,085,380)
   
(29,664)
   
   (3,192,297)
Income tax expense
 
-
   
  -
   
  -
   
  -
   
  -
Net loss
 
(788,437)
   
(7,668)
   
 (3,085,380)
   
(29,664)
   
 (3,192,297)
Gain (loss) translation adjustment foreign exchange
 
(16,936)
   
  -
   
        (24,682)
   
  -
   
                     (24,682)
Comprehensive net loss
$
(805,373)
 
$
(7,668)
 
$
 (3,110,062)
 
$
(29,664)
 
$
(3,216,979)
Loss per common share
                           
      Basic and diluted
$
(0.02)
 
$
(0.00)
 
$
          (0.08)
 
$
(0.00)
     
Weighted average common shares
                           
      Basic and diluted
 
40,174,949
   
37,400,000
   
40,174,949
   
37,400,000
     
 

 
The accompanying notes are an integral part of these financial statements.
 
4
 
 

 
 
 
Resolute Oncology, Inc.
(Formerly Pequot Resources, Inc.)
(A Development Stage Company)
Consolidated Statements of Cash Flow
(Unaudited)
 
         
           Accumulated from June 23, 2009
     For Nine Months September 30,     (inception) through September 30,
       
2013
     
2012
     
2013
Cash flows from operating activities
               
 
Net loss
$
(3,085,380)
 
$
(29,664)
 
$
              (3,192,297)
                   
 
Adjustments to reconcile net income (loss) to net
               
 
cash used in operating activities
               
 
     Debit discount interest expense
 
      214,135
   
 -
   
                     214,135
 
     Depreciation
 
          423
   
      423
   
                       1,502
 
Changes in operating assets and liabilities:
               
 
     Increase in goodwill
 
 (603,574)
   
 -
   
                 (603,574)
 
     Increase in inventory
 
   (40,964)
   
 -
   
                   (40,964)
 
     Increase in prepaid
 
   (11,170)
   
 -
   
                   (11,170)
 
     Increase in accounts payable and accrued expenses
 
711,983
   
430
   
                   742,841
 
     Increase in accrued interest
 
1,404
   
       703
   
                       2,536
 
     Increase in payable on purchase
 
   337,998
   
 -
   
                   337,998
 
     Increase in payroll payable
 
      4,547
   
 -
   
                     4,547
 
     Decrease in other payable
 
     (1,033)
   
 -
   
                     (1,033)
 
     Decrease in subscription payable
 
(1,208,000)
   
          -
   
                               -
 
Net cash provided by (used in) operating activities
 
(3,679,631)
   
(28,108)
   
              (2,545,479)
Cash flows from investing activities
               
 
     Advance on business transaction
 
    637,585
   
 -
   
                               -
 
     Cash paid for equipment
 
                  -
   
          -
   
                     (1,690)
 
Net cash provided by (used) in investing activities
 
   637,585
   
         -
   
                     (1,690)
Cash flows from financing activities
               
 
     Proceeds from related party payable
 
-
   
25,740
   
49,187
 
     Payments to related party payable
 
(2,000)
   
 -
   
(2,020)
 
     Notes Payable
 
75,000
   
 -
   
                   575,000
 
     Proceeds from convertible note payable
 
    350,000
   
-
   
                   350,000
 
     Proceeds from issuance of common stock
 
 1,593,000
   
 -
   
                1,628,000
 
Net cash provided by financing activities
 
2,016,000
   
 25,740
   
2,600,167
 
Effect of exchange rate changes on cash
 
       (24,682)
   
            -
   
                    (24,682)
Increase (decrease) in cash and cash equivalents
 
  (1,050,728)
   
(2,368)
   
                   28,316
Cash and cash equivalents, beginning of period
 
1,079,044
   
   2,457
   
                            -
Cash and cash equivalents, end of period
$
28,316
 
$
 89
 
$
                   28,316
 
 
The accompanying notes are an integral part of these financial statements.
 
5
 
 

 
 
 
 
 
Resolute Oncology, Inc.
(Formerly Pequot Resources, Inc.)
(A Development Stage Company)
Consolidated Statements of Cash Flow
(Unaudited)
                 
Supplement Disclosures:
               
Cash paid for interest
$
1,403
 
$
703
 
$
2,535
Cash paid for income tax
$
-
 
$
-
 
$
-
                   
Supplement Non-Cash Investing and Financing Information:
               
 
Issuance of common stock to acquire a company
$
500,000
 
$
   
$
500,000
 
Intrinsic value of beneficial conversion feature of convertible
$
271,730
 
$
   
$
271,730
 
 
 
The accompanying notes are an integral part of these financial statements.
 
6
 
 

 

Resolute Oncology, Inc.
(Formerly Pequot Resources, Inc.)
(A Development Stage Company)
Notes to the Financial Statements

 
Note 1 – Basis of Presentation

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, stockholders’ deficit or cash flows. It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation.  The unaudited interim financial statements should be read in conjunction with the Company’s registration statement Form 10K, which contains the audited financial statements and notes thereto, together with the Management’s Discussion and Analysis, for the year ended December 31, 2012. The interim results for the period ended September 30, 2013 are not necessarily indicative of the results for the full fiscal year.

Note 2 – Going Concern

These financial statements have been prepared on a going concern basis. The Company has incurred losses since inception resulting in an accumulated deficit of $3,192,297 and further losses are anticipated in the development of its business. This raises substantial doubt about the Company’s ability to continue as a going concern. Its ability to continue as a going concern is dependent upon the ability of the Company to generate profitable operations in the future and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has plans to seek additional capital through a private placement and public offering of its common stock. These financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

The ability of the Company to emerge from the development stage is dependent upon, among other things, obtaining additional financing to continue operations, and develop other business ventures.

These factors, among others raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying financial statements do not include any adjustments that might result from the outcome of this uncertainty.

Note 3 – Advance on Business Transaction

The Company has advanced $637,585 during the year ended December 31, 2012 to pay for consulting services, legal fees, license and permits, and rights in connection with its ongoing negotiations regarding a potential asset acquisition or business combination with GEN BioPharma Inc. dba Resolute Oncology. At the end of May 2013, the Company abandoned the potential asset acquisition or business combination with GEN BioPharma Inc. dba Resolute Oncology.
 
 
 

 
 
Resolute Oncology, Inc.
(Formerly Pequot Resources, Inc.)
(A Development Stage Company)
Notes to the Financial Statements
 

 
Note 3 – Advance on Business Transaction (continued)

The advance on business transaction accumulative total of $1,434,405 was expensed to discontinued business transaction expense. The accumulative total of $1,434,405 were comprised of the following expenses, $777,607 in licensing and rights, $29,896 in legal, $490,115 in consulting, and $136,787 in operating and administration expenses during the period ending September 30, 2013.

Note 4 – Goodwill

The Company completed the acquisition of Resolute Oncology GmbH, a newly-formed, single product company, from Oncocorp GmbH, and a private pharmaceutical company selling cancer products in Germany. The Company paid 250,000 Euros, issued 1,000,000 million shares and will provide another 250,000 Euros and other payments to the owner of Oncocorp.   Certain key mangers of Oncocorp have transferred to Resolute Oncology GmbH to manage German operations and the launch of additional oncology generic products in the future.   The company is a wholly owned subsidiary of our Irish subsidiary company, Resolute Oncology Limited.  The Company has determined that the total goodwill for this acquisition is $1,103,574 at period end September 30, 2013.

Note 5 – Related Party Note Payable

The officer of the Company advanced funds at various times from inception to the period ending September 30, 2013 in order to support operations. On April 1, 2012, the advance was turned into a loan and is unsecured, bearing three and half percent (3.5%) interest per annum and due on demand. The principal amount due to the officer was $47,167 and the accrued interest was $2,420 as of September 30, 2013.

Note 6 – Note Payable

The Company has taken a bridge loan of $500,000 dollars due on December 31, 2013. During the period ended September 30, 2013 the Company has taken additional $75,000 from the bridge loan for a total note payable of $575,000. The loan shall bear no interest until maturity date. If not repaid by maturity date, the loan shall bear interest at 10% per annum thereafter.
 
8
 
 

 

Resolute Oncology, Inc.
(Formerly Pequot Resources, Inc.)
(A Development Stage Company)
Notes to the Financial Statements
 
 
Note 7 – Convertible Note Payable

On May 9, 2013, the Company issued a Convertible Note for $350,000 which is partially offset by the debt discount of $135,865, totaling to $214,135 as of September 30, 2013. The note bears interest at $0.22% per annum and is due and payable on December 31, 2013. Principal and accrued interest is convertible into common share at the election of the lender at the rate of $0.50 per share.  Conversion of principal is mandatory upon completion of a qualified equity financing of $10,000,000 or more with interest conversion at the election of the lender.   Upon the earlier of a qualified financing or December 31, 2013, the lender will also be entitled to receive 700,000 share purchase warrants with each warrant exercisable for a period of five years for the purchase of 1 common share at $0.50 per share. The Note was issued to one (1) U.S. person (at that term as defined in Regulation S of the Securities Act of 1933), in reliance on Rule 506 of Regulation D of the Securities Act of 1933 on the basis that the investor represented to our company that they were an “accredited investor” as such term is defined in Rule 501(a) of Regulation D.. The Company incurred debt discount interest expense of $214,135 and accrued interest of $116.

Note 8 – Purchase Payable

Per the purchase agreement of Resolute Oncology GmbH, a newly-formed, single product company, from Oncocorp GmbH, and a private pharmaceutical company selling cancer products in Germany, the Company will provide another 250,000 Euros to the owner of Oncocorp over the next five months.  These payments have been deferred by verbal agreement of the parties until a mutually agreeable date.

Note 9 – Foreign currency translation

The Company adopted FASB ASC 220-10, “Comprehensive Income”. This guidance defines comprehensive income which includes net income and other comprehensive income comprising certain specific items previously reported directly in stockholders’ equity. Comprehensive income and its components are required to be presented for each year for which an income statement is presented.

As used in FASB ASC 220-10 the term comprehensive income thus encompasses net income. The term other comprehensive income refers to components of comprehensive income that are excluded from net income under GAAP. Note that use of the terms comprehensive income and other comprehensive income per se are not required; thus terms such as non-owner changes in equity and other equivalent descriptions are acceptable. Foreign currency translation adjustment is a component included under other comprehensive income.

The Company’s wholly owned subsidiary, Resolute Oncology Limited in Dublin, Ireland, has a functional currency that must be translated into US dollars for the purpose of reporting. The gain or loss from the translation adjustment is reported as part of the comprehensive income which is presented below the total of net income or loss in the income statement.

When the Company has transactional foreign currency fluctuation the gain or loss is recorded above in the net income or loss in the income statement.
 
9
 
 

 
 
Resolute Oncology, Inc.
(Formerly Pequot Resources, Inc.)
(A Development Stage Company)
Notes to the Financial Statements

Note 10 – Subsequent Events


On September 9, 2013, Resolute Oncology Inc. (the “Company”) entered into a binding term sheet (“Merger Agreement”) which set forth the terms by which Update Pharma Inc. (“Update”) would merge with and into the Company.  The transaction proposed in the Merger Agreement would have resulted in the Company being the surviving entity with shareholders of Update owning 70% of the Company and shareholders of the Company owning 30%.  
 
On October 15, The Company and Update entered into a new binding term sheet (the “New Agreement”) which superseded and replaced the Merger Agreement.  Pursuant to the New Agreement, the Company and Update will, subject to the successful completion of a due diligence period, enter into a definitive asset purchase agreement within 45 days of the date hereof which will further define the terms by which Update will acquire all of the assets and liabilities of the Company’s European operation, which consist of Resolute Oncology Limited and Resolute Oncology GmbH (the “European Operation”), for a purchase price of 2,500,000 shares of Update’s common stock (restricted).  The stock will be issued pursuant to an exemption from registration pursuant to Regulation D promulgated under the Securities Act of 1933.  The closing of the proposed transaction will be contingent upon certain financing requirements.  Upon closing of the proposed transaction, Update will assume the name Resolute Oncology Inc. and continue doing business under that name while the Company will begin doing business under a different name that is yet to be determined. 

The Company has evaluated subsequent events through the date of issuance of the financial statements and, other than the above described subsequent event, did not have any material recognizable subsequent events after September 30, 2013.
 
10
 
 

 

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

SPECIAL NOTE OF CAUTION REGARDING FORWARD-LOOKING STATEMENTS

CERTAIN STATEMENTS IN THIS REPORT, INCLUDING STATEMENTS IN THE FOLLOWING DISCUSSION, ARE WHAT ARE KNOWN AS "FORWARD LOOKING STATEMENTS", WHICH ARE BASICALLY STATEMENTS ABOUT THE FUTURE. FOR THAT REASON, THESE STATEMENTS INVOLVE RISK AND UNCERTAINTY SINCE NO ONE CAN ACCURATELY PREDICT THE FUTURE. WORDS SUCH AS "PLANS," "INTENDS," "WILL," "HOPES," "SEEKS," "ANTICIPATES," "EXPECTS "AND THE LIKE OFTEN IDENTIFY SUCH FORWARD LOOKING STATEMENTS, BUT ARE NOT THE ONLY INDICATION THAT A STATEMENT IS A FORWARD LOOKING STATEMENT. SUCH FORWARD LOOKING STATEMENTS INCLUDE STATEMENTS CONCERNING OUR PLANS AND OBJECTIVES WITH RESPECT TO THE PRESENT AND FUTURE OPERATIONS OF OUR COMPANY, AND STATEMENTS WHICH EXPRESS OR IMPLY THAT SUCH PRESENT AND FUTURE OPERATIONS WILL OR MAY PRODUCE REVENUES, INCOME OR PROFITS. NUMEROUS FACTORS AND FUTURE EVENTS COULD CAUSE OUR COMPANY TO CHANGE SUCH PLANS AND OBJECTIVES OR FAIL TO SUCCESSFULLY IMPLEMENT SUCH PLANS OR ACHIEVE SUCH OBJECTIVES, OR CAUSE SUCH PRESENT AND FUTURE OPERATIONS TO FAIL TO PRODUCE REVENUES, INCOME OR PROFITS. THEREFORE, THE READER IS ADVISED THAT THE FOLLOWING DISCUSSION SHOULD BE CONSIDERED IN LIGHT OF THE DISCUSSION OF RISKS AND OTHER FACTORS CONTAINED IN THIS REPORT ON FORM 10-Q AND IN OUR COMPANY'S OTHER FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION. NO STATEMENTS CONTAINED IN THE FOLLOWING DISCUSSION SHOULD BE CONSTRUED AS A GUARANTEE OR ASSURANCE OF FUTURE PERFORMANCE OR FUTURE RESULTS.
 
Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.
 
In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares in our capital stock.
 
As used in this annual report, the terms “we”, “us”, “our”, and “company” mean Resolute Oncology Inc., and our wholly owned subsidiaries Resolute Oncology Limited, an Ireland corporation, and Resolute Oncology GmbH, a German corporation, unless the context clearly requires or states otherwise.
 
DESCRIPTION OF BUSINESS
 
We are a development stage company previously engaged in the acquisition, exploration and development of mineral properties.  As at the December 31, 2012, we have suspended our plan of operation as it relates to the exploration of our Portage Bay property and are investigating other business opportunities to enhance shareholder value.
 
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We were incorporated on  June 23, 2009 under the laws of the state of Nevada under the name “Atlas Resources, Incorp.”. Pursuant to a Certificate of Amendment dated June 22, 2011, we changed our name to “Pequot Resources, Inc.”.
 
Our company was incorporated for the purpose of engaging in mineral exploration activities. On December 10, 2009, we entered into an agreement with Terry Loney whereby we acquired a 100% interest in the Portage Bay claim located in Rathbun Township in the Sudbury Mining District of Ontario, Canada. We paid $10,000 to Mr. Loney in consideration of the claim.
 
Since our acquisition of the Portage Bay claim, our plan of operation was to conduct exploration work on our property in order to ascertain whether it possesses economic quantities of copper, nickel or platinum group elements. To date, we have not raised sufficient capital to conduct exploration activities on the claim and there is no assurance that it contains economically viable mineral deposits or reserves, if any.
 
Importantly, we were unable to ascertain whether economically viable mineral deposits or reserves exist on the claim until appropriate exploration work was done and an economic evaluation based on such work concluded that production of minerals from the property is economically feasible.
 
On November 1, 2012, we entered into a bridge loan agreement for $500,000 in order to facilitate exploring a further investment or business transaction with GEN BioPharma Inc. by our company.  The principal amount of the loan is due on December 31, 2013 and shall bear no interest until the maturity date. If not repaid by the maturity date, the loan shall bear interest at 10% per annum thereafter.
 
In December, 2012, in light of our historical inability to raise sufficient financing to conduct exploration activities on our mineral property, our management began evaluating available opportunities to increase shareholder value through the diversification or change of our business.
 
In December 2012, we entered into discussions regarding a potential business transaction with GEN BioPharma Inc. dba Resolute Oncology (“GEN BioPharma Inc.”), a private pharmaceutical company specializing in oncology products.  In anticipation of entering into a definitive agreement regarding the contemplated transaction, we undertook to change our corporate name to reflect our potential new business.
 
On December 17, 2012, our company incorporated a wholly owned subsidiary, Resolute Oncology Limited in Dublin, Ireland for the purpose of managing our future operations in Europe.

On December 31, 2012, in connection with our ongoing negotiations regarding a potential asset acquisition or business combination with GEN BioPharma Inc, we entered into a bridge loan agreement and promissory note pursuant to which we advanced $637,585 to GEN BioPharma Inc. to pay for consulting services, legal fees, license and permits, and intellectual property rights for GEN BioPharma.  Subsequently, we advanced an additional $796,820 under the terms of the bridge loan agreement.  As at June 1, 2013, we had abandoned the potential business transaction with GEN BioPharma Inc. and have written down our aggregate advance of $1,434,405 as an expense in respect of the discontinued business transaction.
 
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Effective January 9, 2013, we changed our name from “Pequot Resources, Inc.” to “Resolute Oncology Inc.”, by way of a merger with our wholly-owned subsidiary Resolute Oncology Inc., which was formed solely for the change of name.  The name change became effective with the Over-the-Counter Bulletin Board at the opening of trading on January 9, 2013 under our company’s new symbol “REON”.   As at the date of this quarterly report, we have not entered into any definitive agreement regarding the potential transaction and there is no certainty that we will do so.

On February 4, 2013, we effected a forward split of our authorized, issued and outstanding shares of common stock on a 5.5 new for one old basis, such that our authorized capital increased from 75,000,000 to 412,500,000 shares of common stock and correspondingly, our issued and outstanding shares of common stock increased from 6,800,000 to 37,400,000 common shares, all with a par value of $0.001. Our new stock symbol is “REON”.

On April 12, 2013, we completed due diligence and finalized a license agreement dated March 24, 2013 with Reliance Life Sciences Limited (RLS), an pharmaceutical company incorporated under the laws of India, pursuant to which we acquired certain rights to RLS’ biosimilar therapeutic protein product referred to as Pegylated Granulocyte Colony-Stimulating Factor (Peg-G-CSF or PEG-Filgrastim). Pursuant to the agreement RLS has agreed to transfer and licence to our company the exclusive right to develop and commercialize RLS’ PEG-Filgrastim in North America (U.S., Canada, and Mexico) and the European Union.  RLS will manufacture and supply clinical formulations and commercial supplies of the product while we will be responsible for managing the regulatory approval process.   The term of the license shall be 10 years from the date of market approval in each applicable territory.  Subject to any mutually agreed renewals, the license term will automatically renew for an additional 2 years.  In consideration for product license and related rights, we have paid a total of $500,000 to date.  Additional fees of $6,000,000 in the aggregate will be due to Reliance Life Sciences upon successful completion of certain clinical and commercial milestones as follows:

·  
$500,000 upon completion of Phase I and II clinical studies;
·  
$1,000,000 upon completion of Phase II registration studies;
·  
$1,000,000 upon market approval in the U.S.;
·  
$300,000 upon market approval in EU;
·  
$100,000 upon market approval in Canada;
·  
$100,000 upon market approval in Mexico;
·  
$2,000,000 within 30 days of first commercial sales in North America;
·  
$1,000,000 within 30 days of first commercial sales in any European country.

We will also pay to RLS a 4% quarterly net sales royalty on all sales of licensed products.  The license agreement may be terminated by either party upon 30 days notice in the event of default by the other party that remains uncured for 60 days, upon the continuation of an event of force majeur for 90 days, or  in the event of the insolvency or bankruptcy of the other party.
 
On May 8, 2013 we and our wholly owned Irish subsidiary, Resolute Oncology Ltd. entered into and closed a Sale and Purchase and Assignment Agreement (the “Purchase Agreement”) with Oncocorp GmbH, Peter Gotzler, and Resolute Oncology GmbH (“Resolute Germany”). Pursuant to the terms of the agreement, we acquired, through Resolute Ireland, all issued and outstanding shares and assets of Resolute Germany from Oncocorp GmbH.   In full consideration of the transaction, we agreed to pay to Oncocorp GmbH €500,000 (approximately USD$667,000) in cash and the issuance of 1,000,000 common shares in Resolute Oncology valued at $0.50 cents per share.  We issued the securities to one non “U.S. person” in an “offshore transaction” (at those terms term are defined in Regulation S of the Securities Act of 1933), relying on Regulation S and/or Section 4(2) of the Securities Act of 1933.  As a result of the transaction, we had 41,386,000 issued and outstanding common shares as at the date of this Current Report.  The cash component of the consideration is payable in six installments as follows:
 
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·  
€250,000 (approximately USD$333,500) payable within seven days of the agreement (which amount has been paid);
·  
€50,000 (approximately USD$66,700) payable on July 15, 2013(which payment has been deferred by verbal agreement of the parties until a mutually agreeable date)
·  
€50,000 payable on August 15, 2013 (which payment has been deferred by verbal agreement of the parties until a mutually agreeable date);
·  
€50,000 payable on September 15, 2013(which payment has been deferred by verbal agreement of the parties until a mutually agreeable date);
·  
€50,000 payable on October 15, 2013(which payment has been deferred by verbal agreement of the parties until a mutually agreeable date); and
·  
€50,000 payable on November 15, 2013;
 
Any late payments in respect of the cash consideration will accrue interest at a per annum rate of 1,000 basis points above the Euro Interbank Offered Rate (EURIBOR).  Oncocorp may not dispose or encumber the 1,000,000 consideration shares for a period of twelve months from issuance.
 
The rights of Oncocorp to the unpaid portion of the purchase price are secured against the common shares of Resolute Germany pursuant to the Share Pledge Agreement dated concurrently with the Purchase and Assignment Agreement.
 
As material terms of the Purchase Agreement we have agreed to enter into the following material agreements:
 
·  
Supply Agreement with Oncocorp GmbH for the supply of Oncocorp’s Paclitaxel OC to our Company;
·  
Option Agreement for the Purchase of the marketing authorization and supply agreement with Stragen Pharma S.A. in relation to Paclitaxel OC;
 
Concurrently with the Purchase Agreement, on May 8, 2013 Resolute Germany entered into an Option Agreement with Oncocorp GmbH relating to the Marketing Authorization of Paclitaxel OC. Pursuant to the agreement our wholly owned subsidiary Resolute Germany acquired an option to purchase from Oncocorp the marketing authorization issued by the German Federal Office for Drugs and Medical Devices (“BfArM”) pursuant to the German Drug Act.  Transfer of the marketing authorization will require assignment to Resolute Germany of Oncocorp’s supply agreement for Paclitaxel OC with STRAGEN Pharma SA.  The assignment is subject to the consent of STRAGEN Pharma SA.   Pursuant to the Option Agreement, Resolute Germany may request, prior to December 31, 2013, the sale and transfer of the marketing authorization and supply agreement in consideration of a purchase price of €150,000 (approximately USD$200,100), plus value added tax, if applicable.
 
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On May 8, 2013, concurrent with our acquisition of Resolute Oncology GmbH, we appointed Mr. Peter Gotzler as president of Resolute Oncology GmbH.  Mr. Gotzler has over 20 years experience in pharmaceutical sales, marketing and product management.  In 1998, Mr. Gotzler founded Oncocorp GmbH and has since served as its founder and Chief Executive Officer.  Since 1995, he has served as director of marketing and sales of AMGEN GmbH, the German subsidiary of AMGEN Inc.  From 1988 through 1994 Mr. Gotzler held various positions at ESSEX PHARMA GmbH including Director of the oncology business unit (1992-1994) and senior oncology product manager (1990-1992),  Mr. Gotzler holds a Masters in Business Administration from the International Institute for Management Development in Lausanne, Switzerland.
 
On May 9, 2013, we issued a Convertible Note in consideration of $350,000. The note bears interest at $0.22% per annum and is due and payable on December 31, 2013. Principal and accrued interest are convertible into common share at the election of the lender at the rate of $0.50 per share.  Conversion of principal is mandatory upon completion of a qualified equity financing of $10,000,000 or more with interest conversion at the election of the lender.   Upon the earlier of a qualified financing or December 31, 2013, the lender will also be entitled to receive 700,000 share purchase warrants with each warrant exercisable for a period of five years for the purchase of 1 common share at $0.50 per share. The Note was issued to one (1) U.S. person (at that term as defined in Regulation S of the Securities Act of 1933), in reliance on Rule 506 of Regulation D of the Securities Act of 1933 on the basis that the investor represented to our company that they were an “accredited investor” as such term is defined in Rule 501(a) of Regulation D.. We incurred debt discount interest expense of $214,135 and accrued interest of $116 as at September 30, 2013.
 
On June 1, 2013, Resolute Germany entered into a Supply Agreement with Oncocorp GmbH pursuant to which Oncocorp GmbH shall be the exclusive supplier to Resolute Germany of Paclitaxel OC in the territory of Germany.  The products supplied shall include Paclitaxel 6 milligram/millilitre solution for injection in vials of 30 milligram/5 millilitre, 10mg/16.7ml, 150mg/25ml, and 300mg/50ml.  The agreement will allow Resolute Germany, subject to the acquisition of the marketing authorization for Germany contemplated by the Option Agreement with Oncocorp GmbH, to sell Paclitaxel OC under its own name and for its own account. In consideration of the distribution rights granted to Resolute Germany, Oncocorp GmbH shall be entitled to receive a royalty equal to 25% of our gross profits (gross sales, less product rebates, less cost of goods sold) from the sales of all licensed products under the agreement.
 
The term of the Agreement will commence with effect as of May 1, 2013 and will remain in force until December 31, 2013.  The Agreement may be terminated (i) by either party in the event of a default that remains uncured following 30 days notice by the non-defaulting party, (ii) upon the liquidation, bankruptcy or insolvency of either party, (iii) by written notice to Oncocorp of Oncocorp’s failure to maintain the marketing authorization in good standing.
 
During the period ending September 30, 2013, we received an additional $75,000 from the bridge loan agreement for a total of $575,000.  The principal amount of the loan is due on December 31, 2013 and shall bear no interest until the maturity date. If not repaid by the maturity date, the loan shall bear interest at 10% per annum thereafter.
 
We have two wholly owned subsidiaries, Resolute Oncology Limited (“Resolute Oncology Ireland”), a company incorporated under the laws of Ireland for the purpose of managing the development of our business in Europe, generally, and Resolute Oncology GmbH, a company incorporated under the laws of Germany.
 
15
 
 

 

Our principal executive office is located at 1200 Route 22 East, suite 2000, Bridgewater New Jersey 08807. The telephone number at our principal executive office is 908 253-3590.  Resolute Ireland maintains an office with an address at Building 3, Chiswick Park, 566 Chiswick High Road, Chiswick, London, W4 5YA.  Its telephone number is 0208 849 8290.

Our fiscal year end is December 31.
 
RESULTS OF OPERATIONS

The following discussion and analysis provides information that we believe is relevant to an assessment and understanding of our results of operation and financial condition for the three and nine months ended September 30, 2013 as compared to the three and six months ended September 30, 2012.

Results of Operations for the three months ended September 30, 2013 compared to the three months ended September 30 2012.

Revenue
 
During the three months period ended September 30, 2013, we generated $189,148 in revenue compared to no revenue generated during the three months period ended September 30, 2012.

Expenses

During the three months period ended September 30, 2013, we reported total operating expenses of $886,950 as compared to $7,288 during the three months period ended September 30, 2012, an increase of $879,662.   The increase in operating expenses is primarily due to increases in consulting, debt discount interest, legal and accounting, salaries and operation and administration expense. The increases in these expenses are primarily attributable to the obligatory filings, and the start-up of the wholly owned subsidiary, Resolute Oncology Limited in Dublin, Ireland and the wholly owned subsidiary, Resolute Oncology GmbH in Germany.

Results of Operations for the nine months ended September 30, 2013 compared to the nine months ended September 30 2012.

Revenue
 
During the nine months period ended September 30, 2013, we generated $251,343 in revenue compared to no revenue generated during the nine months period ended September 30, 2012.

Expenses

During the nine months period ended September 30, 2013, we reported total operating expenses of $3,204,839 as compared to $28,961 during the nine months period ended September 30, 2012, an increase of $3,175,878.   The increase in operating expenses is primarily due to increases in consulting, debit discount interest expense, discontinued business transaction, legal and accounting, rent, salaries and operation and administration expense.   The increases in these expenses are primarily attributable to the discontinued business transaction, and the start-up of the wholly owned subsidiary, Resolute Oncology Limited in Dublin, Ireland and the wholly owned subsidiary, Resolute Oncology GmbH in Germany.
 
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ANALYSIS OF FINANCIAL CONDITION

Liquidity and Capital Resources

Management currently believes that our company does not have sufficient working capital needed to complete all of its plans; however we have engaged an investment bank to help us secure additional funds.

Current Assets and Total Assets

As of September 30, 2013, the unaudited consolidated balance sheet reflects that our company had: i) total current assets of $80,450, as compared to total current assets of $1,716,629 at December 31, 2012, a decrease of $1,636,179, or approximately 95%; and ii) total assets of $1,184,212, as compared to total assets of $1,717,240 at December 31, 2012, an decrease of $533,028 or approximately 31%.  The decrease in total current assets and total assets was primarily attributable to the decrease in advance on asset transfer which was partially offset by the Goodwill from the acquisition of the wholly owned subsidiary, Resolute Oncology GmbH in Germany.

Total Current Liabilities and Total Liabilities

As of September 30, 2013, the unaudited consolidated balance sheet reflects that our company had total current liabilities and total liabilities of $1,923,191, as compared to total current liabilities and total liabilities of $1,789,157 at December 31, 2012, an increase of $134,034 or approximately 7%.  This increase was due to an increase in accounts payable and accrued expense, convertible note, and payable on purchase.

Cash Flow

During the nine months ended September 30, 2013 cash was primarily used to fund operations. Our company reported a net decrease in cash during the nine months ended September 30, 2013 as compared to September 30, 2012 from proceeds from sales of issuance of common stock which was partial offset by acquisition of a privately owned company in Germany and the on-going cost from our Ireland and German whole-owned subsidiary company.  See below for additional discussion and analysis of cash flow.
 
17
 
 

 

 
   For the nine months ended September 30,
  2013   2012
           
Net cash provided by (used in) operating activities
$  
                   (3,679,631)
  $  
                  (28,108)
Net cash used in investing activities
 
637,585
   
-
Net cash provided by financing activities
 
2,016,000
   
25,740
Effect of exchange rate changes
 
(24,682)
   
-
           
Net Change in Cash
$  
                   (1,050,728)
  $  
                     (2,368)

During the nine months ended September 30, 2013, net cash used in operating activities was $3,679,631, compared to net cash used in operating activities of $28,108 during the nine months ended September 30, 2012.  The increase in net cash used in operating activities of $3,651,523 is primarily due to an increase in expense is primarily attributable to the discontinued business transaction, the on-going cost of the wholly owned subsidiaries, Resolute Oncology Limited in Dublin, Ireland and Resolute Oncology GmbH in Germany.

During the nine months ended September 30, 2013, net cash provided by investing activities was $637,585, compared to no cash provided by financing activities of $0 during the nine months ended September 30, 2012.  The increase in net cash provided by financing activities was due to proceeds advance on asset transfer.

During the nine months ended September 30, 2013, net cash provided by financing activities was $2,016,000, compared to net cash provided by financing activities of $25,740 during the nine months ended September 30, 2012.  The increase in net cash provided by financing activities was due to proceeds issuance of common stock, proceeds from a convertible note payable, and proceeds from note payable.

As discussed herein, our company reported a net loss of $3,085,380 during the nine months ended September 30, 2013, compared to $29,664 during the nine months ended September 30, 2012. The increase was primarily due to increases in: consulting expense, debit discount interest expense, discontinued business transaction, legal and accounting, rent, salaries and operation and administration expenses.

OFF BALANCE SHEET ARRANGEMENTS

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, and capital expenditures or capital resources that are material to stockholders.
 
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GOING CONCERN

We have not attained profitable operations and are dependent upon obtaining financing to pursue any extensive acquisitions and activities. For these reasons, our auditors stated in their report on our audited financial statements that they have substantial doubt that we will be able to continue as a going concern without further financing.

CRITICAL ACCOUNTING POLICIES

Our financial statements and accompanying notes have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods.

We regularly evaluate the accounting policies and estimates that we use to prepare our financial statements. A complete summary of these policies is included in the notes to our financial statements. In general, management's estimates are based on historical experience, on information from third party professionals, and on various other assumptions that are believed to be reasonable under the facts and circumstances. Actual results could differ from those estimates made by management.
 
ITEM 3.          QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

As a "smaller reporting company", we are not required to provide the information required by this Item

ITEM 4.          CONTROLS AND PROCEDURES.

Management’s Report on Disclosure Controls and Procedures

The Securities and Exchange Commission defines the term “disclosure controls and procedures” to mean a company's controls and other procedures of an issuer that are designed to ensure that information required to be disclosed in the reports that it files or submits under the Securities Exchange Act of 1934 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 by an issuer in the reports that it files or submits under the Securities Exchange Act of 1934 is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.  Our company maintains such a system of controls and procedures in an effort to ensure that all information which it is required to disclose in the reports it files under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified under the SEC's rules and forms and that information required to be disclosed is accumulated and communicated to principal executive and principal financial officers to allow timely decisions regarding disclosure.
 
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As of the end of the period covered by this report, our company carried out an evaluation, under the supervision and with the participation of our chief executive officer and chief financial officer (our principal executive officer, principal financial officer and principal accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures.  Based on this evaluation, our chief executive officer and chief financial officer (our principal executive officer, principal financial officer and principal accounting officer) concluded that the disclosure controls and procedures are designed to provide reasonable assurance of achieving the objectives of timely alerting them to material information required to be included in our company’s periodic SEC reports and of ensuring that such information is recorded, processed, summarized and reported within the time periods specified.  Our company’s chief executive officer and chief financial officer (our principal executive officer, principal financial officer and principal accounting officer) also concluded that the disclosure controls and procedures were effective as of the end of the period covered by this report to provide reasonable assurance of the achievement of these objectives.

Changes in Internal Control over Financial Reporting

There was no change in our company's internal control over financial reporting during the period ended September 30, 2013, that has materially affected, or is reasonably likely to materially affect, our company's internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1.          LEGAL PROCEEDINGS.

We know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, executive officers or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to our interest.

ITEM 1A.       RISK FACTORS.

As a "smaller reporting company", we are not required to provide the information required by this Item.

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

On February 4, 2013, we closed a private placement by issuing an aggregate of 2,870,000 shares of our common stock at a price of $0.50 per share, for gross proceeds of $1,435,000. We issued the securities to six non U.S. persons (at that term as defined in Regulation S of the Securities Act of 1933), relying on Regulation S and/or Section 4(2) of the Securities Act of 1933 and to five U.S. persons (as that term is defined in Regulation S of the Securities Act of 1933) relying upon Rule 506 of Regulation D of the Securities Act of 1933.
 
20
 
 

 

On March 13, 2013, we closed a private placement by issuing 116,000 shares of our common stock at a price of $0.50 per share, for gross proceeds of $58,000. We issued the securities to one non U.S. person (at that term as defined in Regulation S of the Securities Act of 1933), relying on Regulation S and/or Section 4(2) of the Securities Act of 1933.
 
May 8, 2013 Resolute we authorized the issuance of 1,000,000 shares to Oncocorp GmbH pursuant to our Sale and Purchase and Assignment Agreement dated May 8, 2013 with Oncocorp GmbH, Peter Gotzler, and Resolute Oncology GmbH.  The shares were issued to one non “U.S. person” in an “offshore transaction” (at those terms term are defined in Regulation S of the Securities Act of 1933), relying on Regulation S and/or Section 4(2) of the Securities Act of 1933.

On May 9, 2013, we issued a Convertible Note in consideration of $350,000. The note bears interest at $0.22% per annum and is due and payable on December 31, 2013. Principal and accrued interest is convertible into common share at the election of the lender at the rate of $0.50 per share.  Conversion of principal is mandatory upon completion of a qualified equity financing of $10,000,000 or more with interest conversion at the election of the lender.   Upon the earlier of a qualified financing or December 31, 2013, the lender will also be entitled to receive 700,000 share purchase warrants with each warrant exercisable for a period of five years for the purchase of 1 common share at $0.50 per share. The Note was issued to one (1) U.S. person (at that term as defined in Regulation S of the Securities Act of 1933), in reliance on Rule 506 of Regulation D of the Securities Act of 1933 on the basis that the investor represented to our company that they were an “accredited investor” as such term is defined in Rule 501(a) of Regulation D.
 
On August , 2013, we closed a private placement by issuing 200,000 shares of our common stock at a price of $0.50 per share, for gross proceeds of $100,000. We issued the securities to one non U.S. person (at that term as defined in Regulation S of the Securities Act of 1933), relying on Regulation S and/or Section 4(2) of the Securities Act of 1933.
 
ITEM 3.          DEFAULTS UPON SENIOR SECURITIES.

None.

ITEM 4.          MINE SAFETY DISCLOSURES.

Not applicable.

ITEM 5.          OTHER INFORMATION.

None.
 
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ITEM 6.          EXHIBITS.

Exhibit Number
Description
(3)
(i) Articles of Incorporation; (ii) By-laws
3.1
Articles of Incorporation (incorporated by reference to our Registration Statement on Form S-1 filed May 14, 2010)
3.2
By-laws (incorporated by reference to our Registration Statement on Form S-1 filed May 14, 2010)
3.3
Amended Articles of Incorporation (incorporated by reference to our Amended Registration Statement on Form S-1/A filed on August 17, 2011)
3.4
Articles of Merger (incorporated by reference to our Current Report on Form 8-K filed on January 9, 2013)
3.5
Certificate of Change (incorporated by reference to our Current Report on Form 8-K filed on February 2, 2013)
(10)
Material Contracts
10.1
Mineral Property Purchase Agreement with Terry Loney dated December 10, 2009 (incorporated by reference to our Registration Statement on Form S-1 filed May 14, 2010)
10.2
Bridge Loan Agreement dated November 1, 2012 (incorporated by reference to our Annual Report on Form 10-K filed on March 28, 2013)
10.3
Promissory Note with GEN BioPharma Inc. dated December 31, 2012 (incorporated by reference to our Annual Report on Form 10-K filed March 28, 2013).
10.4
Bridge Loan Agreement with GEN BioPharma Inc. dated December 31, 2012 (incorporated by reference to our Annual Report on Form 10-K filed March 28, 2013).
10.5
License agreement dated March 24, 2013 with Reliance Life Sciences Limited*
10.6
Sale and Purchase and Assignment Agreement dated May 8, 2013 with Oncocorp GmbH, Peter Gotzler, and Resolute Oncology GmbH*
10.7
Option Agreement with Oncocorp GmbH*
10.8
Supply Agreement with Oncocorp GmbH*
(14)
Code of Ethics
14.1
Code of Business Conduct and Ethics (incorporated by reference to our Quarterly Report on Form 10-Q/A filed May 24, 2013).
(21)
Subsidiaries of the Registrant**
 
22
 
 

 
 
 
Exhibit Number
Description
(31)
Rule 13a-14(a) / 15d-14(a) Certifications
31.1*
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer.
(32)
Section 1350 Certifications
32.1*
Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of the Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer.
101**
Interactive Data File (Form 10-Q for the period ended September 30, 2013 furnished in XBRL)
101.INS
101.SCH
101.CAL
101.DEF
101.LAB
101.PRE
XBRL Instance Document
XBRL Taxonomy Extension Schema Document
XBRL Taxonomy Extension Calculation Linkbase Document
XBRL Taxonomy Extension Definition Linkbase Document
XBRL Taxonomy Extension Label Linkbase Document
XBRL Taxonomy Extension Presentation Linkbase Document
 
*
Filed herewith.
**
Furnished herewith. Pursuant to Rule 406T of Regulation S-T, the Interactive Data Files on Exhibit 101 hereto are deemed not filed or part of any registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, are deemed not filed for purposes of Section 18 of the Securities and Exchange Act of 1934, and otherwise are not subject to liability under those sections.
 
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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.



   
RESOLUTE ONCOLOGY, INC.
   
           
Date:
 November 14, 2013
By:
/s/ Blair Sorby
   
     
Blair Sorby
     
President, Chief Executive Officer, and Director
(Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer)

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