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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q

(Mark One)


[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended: March 31, 2014
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ____________ to _____________
 
Commission File No. 000-54820
 
 
 
SICHUAN LEADERS PETROCHEMICAL COMPANY
 (Exact name of small business issuer as specified in its charter)
 
 
FLORIDA
 
20-4138848
 
 
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Tax. I.D. No.)
 
 
6371 Business Blvd., Suite 200, Sarasota, Florida 34240
(Address of Principal Executive Offices)
 
(941) 907-6889
(Registrant's Telephone Number, Including Area Code)
 (Registrant's former name)
 
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 Website, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§229.405 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 þ  No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or 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  þ  No  o

The number of shares outstanding of each of the issuer's classes of common equity as of April 24, 2014  is as follows:
 
Class of Securities
 
Shares Outstanding
Common Stock, $0.01 par value
 
30,755,000
Documents incorporated by reference: N/A

TABLE OF CONTENTS
 
 
PART I – FINANCIAL INFORMATION

SICHUAN LEADERS PETROCHEMICAL COMPANY
Balance Sheets
As of March 31, 2014 (unaudited) and December 31, 2013 (audited)
 
 
US Dollars
 
March 31, 2014
(unaudited)
   
December 31, 2013
(audited)
 
ASSETS
 
   
 
Current Assets:
 
   
 
      Cash and Cash Equivalents
   
84,399
     
134,762
 
Prepaid Expenses
   
4,215
     
4,929
 
Total Current Assets
   
88,614
     
139,691
 
Total Assets:
   
88,614
     
139,691
 
 
               
LIABILITIES AND STOCKHOLDERS' EQUITY
               
Current Liabilities:
               
       Accounts Payable
   
3,400
     
1,076
 
Loans from Shareholder
   
-
     
44,122
 
Loan from Related Party
   
-
     
2,000
 
Total Current Liabilities
   
3,400
     
47,198
 
Total Liabilities
   
3,400
     
47,198
 
 
               
Stockholders' Equity:
               
Common Stock; $0.01 per share par value; 5,000,000,000 shares authorized; and 30,755,000 and 30,755,000 issued and outstanding at March 31, 2014 and December 31, 2013, respectively
   
307,550
     
307,550
 
Additional Paid in Capital
   
(68,566
)
   
(68,566
)
Accumulated Deficit
   
(153,770
)
   
(146,491
)
Total Stockholders' Equity
   
85,214
     
92,493
 
 
               
Total Liabilities and Stockholders' Equity
   
88,614
     
139,691
 
 
 
The accompanying notes are an integral part of these statements.
 
SICHUAN LEADERS PETROCHEMICAL COMPANY
STATEMENTS OF OPERATIONS
For the Three Months Ended March 31,
 
 
 
Three Months Ended March 31,
 

US Dollars
 
2014
(unaudited)
   
2013
(unaudited)
 
Revenue:
 
   
 
     Sales
   
-
     
-
 
     Direct Costs
   
-
     
-
 
Total Revenue
   
-
     
-
 
Operating Expenses:
               
     General and Administrative
   
7,279
     
23,976
 
Operations Income, Pre Tax
   
(7,279
)
   
(23,976
)
    Tax on Continued Operations
               
Net Loss Continued Operations
   
(7,279
)
   
(23,976
)
Discontinued Operations, net of tax (Note 7)
           
(27,596
)
Net Loss
   
(7,279
)
   
(51,572
)
 
               
Basic and Diluted Net (Loss) per share:
               
   Continuing Operations
   
(0.00
)
   
(0.00
)
   Discontinued Operations
   
-
     
(0.00
)
Weighted average number of shares outstanding
   
30,755,000
     
10,375,000
 
 
 
The accompanying notes are an integral part of these statements.
 
SICHUAN LEADERS PETROCHEMICAL COMPANY
Statements Cash Flows
For the Three Months Ended March 31
 
 
 
Three Months Ended March 31,
 

US Dollars
 
2014
(unaudited)
   
2013
(unaudited)
 
Cash Flows from Operating Activities:
 
   
 
    Net Loss
   
(7,279
)
   
(51,572
)
    Loss from Discontinued Operations
         
27,596
 
    Loss from Continued Operations
         
(23,976
)
Adjustments to reconcile net loss to net cash (used in) provided by operations:
               
Changes in Operating Assets and Liabilities:
               
     Accounts Receivable
         
-
 
     Accounts Payable and Accrued Expenses
   
2,324
     
-
 
     Deposits and Prepaids
   
714
     
-
 
     Net Cash Flows Used in Operating Activities: Continued Operations
   
(4,241
)
   
(23,976
)
     Net Cash Flows Used in Operating Activities: Discontinued Operations
         
(24,546
)
 
   
(4,241
)
   
(48,522
)
Cash Flows from Investing Activities:
               
     Proceeds from sale of fixed assets (Discontinued Operations)
   
-
     
750
 
Net Cash Flows Provided by Investing Activities
   
-
     
750
 
 
               
Cash Flows from Financing Activities:
               
     Proceeds from Sale of Stock
         
10,000
 
     Loans from (to) Related Party
   
(2,000
)
   
43,200
 
     Repayment of loans from Shareholders
   
(44,122
)
   
-
 
Net Cash Provided by Financing Activities-Continuing Operations
   
(46,122
)
   
53,200
 
 
               
Change in Cash and Cash Equivalents:
   
(50,363
)
   
5,428
 
    Cash and Cash Equivalents, Beginning of Period
   
134,762
     
9,040
 
    Cash and Cash Equivalents, End of Period
   
84,399
     
14,468
 
 
               
Supplemental Cash Flow Information:
               
     Cash paid for interest
           
     Cash paid for taxes
           
 
The accompanying notes are an integral part of these statements.
 
Sichuan Leaders Petrochemical Company
Notes to Financial Statements
March 31, 2014
(Unaudited)
 
NOTE 1.                           NATURE OF BUSINESS

Organization
Sichuan Leaders Petrochemical Company (SLPC) was incorporated under the name Quality WallBeds, Inc. on June 29, 2000 in the state of Florida. The company was a furniture retailer specializing in the design, construction, and installation of wall beds, closets and shelving.  The company had a single retail location in Saint Petersburg, Florida.  The Company discontinued the Florida wall bed operations on May 21, 2013.
In December 2012, the Company changed its name in anticipation of new business opportunities.  SLPC is exploring various opportunities within the petrochemical field in China and Southeast Asia to determine the best strategic business direction of the company.
The Company's headquarters are located in Sarasota, Florida.  The elected year end is December 31.

NOTE 2.                                        SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation and Use of Estimates
The accompanying unaudited financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information regarding the Company's significant accounting policies, refer to the audited consolidated financial statements and footnotes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2013 filed with the Securities and Exchange Commission on March 25, 2014.  All Amounts referenced in these Financial Statements and this Report are in US Dollars unless otherwise stated.

In the opinion of management, all adjustments consisting of normal recurring adjustments necessary for a fair statement of (a) the result of operations for the three month period ended March 31, 2014 and 2013; (b) the financial position at March 31, 2014; and (c) cash flows for the three month period ended March 31, 2014 and 2013, have been made. Management believes that these estimates are reasonable and have been discussed with the Board of Directors; however, actual results could differ from those estimates.  Certain account balances have been reclassified to match the 2014 presentation.
 
Our financial statements may not be comparable to companies that comply with public company effective dates.  Due to our election  not to opt out of the extended transition period that allows us to delay the adoption of new or revised accounting standards that have different effective dates for public and private companies until those standards apply to private companies.

Going Concern
The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  The Company had a loss of sales for the first fiscal quarter and net loss of ($7,279) for the three months ended March 31, 2014, compared to a net loss of ($51,572) for the three months ended March 31, 2013. These factors raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time.

The Company has a decreasing gross profits, increasing general expenses and negative working capital. The Company is currently evaluating acquisitions and other business opportunities. The Company's continuation is a going concern and is dependent upon its ability to obtain clients and investment capital from future funding opportunities to fund at the current and planned operating levels.  No assurance can be given that the Company will be successful in these efforts.

Cash and Cash Equivalents
The majority of cash is maintained with a major financial institution in the United States.  Deposits with this bank may exceed the amount of insurance provided on such deposits.  Generally, these deposits may be redeemed on demand and, therefore, bear minimal risk.  The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents.
 
Stock-Based Compensation
The Company accounts for stock-based instruments issued to employees in accordance with ASC Topic 718.  ASC Topic 718 requires companies to recognize in the statement of operations the grant-date fair value of stock options and other equity based compensation issued to employees.  The value of the portion of an award that is ultimately expected to vest is recognized as an expense over the requisite service periods using the straight-line attribution method. The Company accounts for non-employee share-based awards in accordance with the measurement and recognition provisions ASC Topic 505-50.  The Company estimates the fair value of stock options at the grant date by using the Black-Scholes option-pricing model.


Income Taxes
The Company has adopted the provisions of ASC 740-10, "Accounting for Uncertain Income Tax Positions." When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained.  In accordance with the guidance of ASC 740-10, the benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any.  Tax positions taken are not offset or aggregated with other positions.  Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority.  The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above should be reflected as a liability for unrecognized tax benefits in the accompanying balance sheets along with any associated interest and penalties that would be payable to the taxing authorities upon examination.  

The Company believes its tax positions are all highly certain of being upheld upon examination.  As such, the Company has not recorded a liability for unrecognized tax benefits.  As of March 31, 2014, tax years 2013, 2012, 2011 and 2010 remain open for IRS audit.  The Company has received no notice of audit from the IRS for any of the open tax years.

The Company has adopted ASC 740-10, "Definition of Settlement in FASB Interpretation No. 48", ("ASC 740-10"), which was issued on May 2, 2007.  ASC 740-10 amends FIN 48 to provide guidance on how an entity should determine whether a tax position is effectively settled for the purpose of recognizing previously unrecognized tax benefits.  The term "effectively settled" replaces the term "ultimately settled" when used to describe recognition, and the terms "settlement" or "settled" replace the terms "ultimate settlement" or "ultimately settled" when used to describe measurement of a tax position under ASC 740-10.  ASC 740-10 clarifies that a tax position can be effectively settled upon the completion of an examination by a taxing authority without being legally extinguished.  For tax positions considered effectively settled, an entity would recognize the full amount of tax benefit, even if the tax position is not considered more likely than not to be sustained based solely on the basis of its technical merits and the statute of limitations remains open.  The adoption of ASC 740-10 did not have an impact on the accompanying consolidated financial statements.

Net Earnings (Loss) Per Share
In accordance with ASC 260-10, "Earnings Per Share," basic net earnings (loss) per common share is computed by dividing the net earnings (loss) for the period by the weighted average number of common shares outstanding during the period.  Diluted earnings
(loss) per share are computed using the weighted average number of common and dilutive common stock equivalent shares outstanding during the period.   At March 31, 2014 and December 31, 2013 there were no potentially dilutive securities.

Revenue Recognition
The Company recognizes revenue when it is realized or realizable and estimable in accordance with ASC 605, "Revenue Recognition".

 
Fair Value of Financial Instruments
FASB ASC "Fair Value Measurements and Disclosures" defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. This ASC also establishes a fair value hierarchy that distinguishes between (1) market participant assumptions developed based on market data obtained from independent sources (observable inputs) and (2) an entity's own assumptions about market participant assumptions developed based on the best information available in the circumstances (unobservable inputs). The fair value hierarchy consists of three broad levels, which gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3).

The three levels of the fair value hierarchy are described below:

Level 1 Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
Level 2 Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly, including quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; inputs other than quoted prices that are observable for the asset or liability (e.g., interest rates); and inputs that are derived principally from or corroborated by observable data by correlation or other means.
Level 3 Inputs that are both significant to the fair value measurement and unobservable.

Accounts Receivable, Trade
The Company followed ASC 310-10, "Receivables". Our sales offerings were customer specific and required an initial deposit ranging between 35 and 50% at time of contract signing.  Accounts receivable were balances due from customers upon completion of the design, construction, and installation of our products.  These trade accounts receivable had a contractual maturity of one year or less. Receivables were determined to be past due based on payment terms of original invoices.  We do not typically charge interest on past due receivables.
An allowance for doubtful accounts is established for amounts that may not be recoverable and is based on an analysis of individual customer credit worthiness and an assessment of current economic trends. Based on management's review of accounts receivable no allowance for doubtful accounts was considered necessary at March 31, 2014 and December 31, 2013. An account determined to be fully non-collectable is expensed as bad debt using the direct write off method in the period determined noncollectable.  The bad debt expense was $0 for the first quarter ended March 31, 2014.  Bad debt expense was $450 for the year ended December 31, 2013; these Bad debt expenses were reflected in the discontinued operations.

Recent Accounting Pronouncements
The Company reviews new accounting standards as issued. No new standards had any material effect on these financial statements. The accounting pronouncements issued subsequent to the date of these financial statements that were considered significant by management were evaluated for the potential effect on these consolidated financial statements. Management does not believe any of the subsequent pronouncements will have a material effect on these consolidated financial statements as presented and does not anticipate the need for any future restatement of these consolidated financial statements because of the retro-active application of any accounting pronouncements issued subsequent to March 31, 2014 through the date these financial statements were issued.
 
NOTE 3.                          RELATED PARTY TRANSACTIONS

For the period ended March 31, 2014, the Company paid back a loan in the amount of $44,122 to the majority shareholder Andy Fan.
During the year ended December 31, 2013, the Company had a related party transaction from AF Ocean Investment Management Company in the amount of $2,000. On February 13, 2014 this loan was paid in full.
 
NOTE 4.                                        PROPERTY AND EQUIPMENT
 
Property consists of equipment purchased for the production of revenues:
 
US Dollars
 
For the Periods Ended
 
 
 
March 31, 2014
(unaudited)
   
December 31, 2013
(audited)
 
Property and equipment
   
-
     
-
 
Less accumulated depreciation
   
-
     
-
 
Property and equipment, net
   
-
     
-
 
Assets are depreciated over their useful lives when placed in service.  Depreciation expense  for the period ended March 31, 2014 was $0 as compared to $0 for the year ended December 31, 2013.  During the period ended July 31, 2013, the Company sold some of the equipment formally used in the production of revenues.  The proceeds from the sale of equipment totaled $6,022.  The rest of the equipment was donated to various charities.

NOTE 5.                                        INCOME TAXES
As of March 31, 2014 and December 31, 2013, the Company has net operating losses from operations. The carry forwards expire through the year 2029. The Company's net operating loss carry forward may be subject to annual limitations, which could reduce or defer the utilization of the losses as a result of an ownership change as defined in Section 382 of the Internal Revenue Code. A valuation allowance has been applied due to the uncertainty of realization.

NOTE 6.                                        DISCONTINUED OPERATIONS AND CHANGE IN DIRECTION

On May 21, 2013, the company discontinued the Florida wall bed operations and disposed of the Company assets directly related to the wall bed operations.

The Board  believed that to continue to protect and increase shareholder value, it would be to the advantage, welfare and best interests of the shareholders for the Company to consider alternative corporate strategies to generate new business revenue for the Company.

The Board of Directors believes the company should pursue the opportunities in Asia to acquire companies in the wholesale and resale of the automotive oil industry.  To facilitate this action, the Board voted to dispose of the Company assets related to the retail operation of the wall bed products.  This action was approved by Shareholders representing 87% of the shares issued and outstanding.

Summary of results of discontinued operations is as follows:
 
Summary of Results of Discontinued Operations
 
 
 
Three Months Ended March 31,
 

US Dollars
 
2014
(unaudited)
   
2013
(audited)
 
Discontinued Revenues
   
-
     
-
 
Discontinued Expenses
   
-
     
(27,596
)
    Discontinued Income, Pre Tax
   
-
     
(27,596
)
Gain on Disposal of Operations, Pre Tax
   
-
     
-
 
    Tax
   
-
     
-
 
    Total Discontinued Operations, Net of Tax
   
-
     
(27,596
)
 
NOTE 7.                                        COMMITMENTS AND CONTINGENCIES

Related Party
The controlling shareholders have pledged support to fund continuing operations, as necessary.  From time to time, the Company is dependent upon the continued support of these parties, through temporary advances or through arrangements of their personal credit.  However there is no written commitment to this effect.

The amounts and terms of the above transactions may not necessarily be indicative of the amounts and terms that would have been incurred had comparable transactions been entered into with independent third parties.

The Company does not have employment contracts with its key employees, including the officers of the Company.

Leases And Facility
The Company leases its facilities on a month to month lease.

Legal Matters
From time to time the Company may become a party to litigation matters involving claims against the Company.  Management believes that there are no current matters that would have a material effect on the Company's financial position or results of operations.

NOTE 8.                          STOCKHOLDERS' EQUITY
No stock was issued for the period ended March 31, 2014.
During the year ended December 31, 2013, the majority shareholder advanced the Company $203,800, of which $213,800 was converted to 21,380,000 shares of common stock (a conversion price of $0.01 per share). The company owed $44,122 as of December 31, 2013 to the majority shareholder, which has been repaid as of March 31, 2014.
Shares Issued
 
 
   
 
      
Dates Issued
 
Value ($)
   
Shares Issued
 
Price Per Share
1/4/13
 
$
10,000
     
1,000,000
 
$0.01 Per Share
8/7/13
 
$
18,100
     
1,810,000
 
$0.01 Per Share
8/15/13
 
$
150,000
     
15,000,000
 
$0.01 Per Share
10/25/13
 
$
35,700
     
3,570,000
 
$0.01 Per Share
 
No shares were issued during the three months ended March 31, 2014.

The Company has no options or warrants issued or outstanding.
No preferred shares have been issued.

NOTE 9.                                         FINANCIAL INSTRUMENTS AND RISK CONCENTRATION

Financial Instruments
The Company's financial assets are comprised of cash and cash equivalents, accounts receivable, and inventory.  Our liabilities consist of accounts payable, customer deposits, and other current liabilities.

Our financial assets and liabilities are carried at fair value, which is described in Note 2. The carrying values for other current financial assets and liabilities, such as accounts receivable and accounts payable, approximate fair value due to the short maturity of such instruments.

Financial instruments that could subject us to concentrations of credit risk are primarily cash and cash equivalents and accounts receivable. Our cash and cash equivalents are within FDIC limits.

No single customer represents a significant portion of revenues or accounts receivable for the three months ended March 31, 2014, or the year ended December 31, 2013.

Liquidity Risk
The Company's objective in managing liquidity risk is to maintain sufficient available reserves to meet its liquidity requirements at any point in time.  The Company achieves this by managing capital and operating expenditures and maintaining sufficient funds for anticipated short-term spending in our cash and cash equivalent accounts
 
NOTE 10.                                        SUBSEQUENT EVENTS

The Company has evaluated subsequent events through the date the financial statements were issued to assess the need for potential recognition or disclosure in this report.  Based upon this evaluation, management determined that all subsequent events that require recognition in the financial statements have been included.
ITEM 2.                          MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION

The following discussion should be read in conjunction with our financial statements and the notes thereto.

Forward-Looking Statements

This quarterly report contains forward-looking statements relating to us that are based on the beliefs of our management as well as assumptions made by, and information currently available to, our management. When used in this Report, the words "anticipate", "believe", "estimate", "expect", "intend", "plan" and similar expressions, as they relate to us or our management, are intended to identify forward-looking statements. These statements reflect management's current view of us concerning future events and are subject to certain risks, uncertainties and assumptions, including among many others: our potential inability to raise additional capital, the possibility that third parties hold proprietary rights that preclude us from marketing our products, the emergence of additional competing technologies, changes in domestic and foreign laws, regulations and taxes, changes in economic conditions, a general economic downturn, a downturn in the securities markets, Securities and Exchange Commission regulations which affect trading in the securities of "penny stocks," and other risks and uncertainties. Should any of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in this Report as anticipated, estimated or expected.

Use of Certain Defined Terms

Except as otherwise indicated by the context, references in this report to "SLPC" "we," "us," or "our" and the "Company" are references to the business of SICHUAN LEADERS PETROCHEMICAL COMPANY

Use of GAAP Financial Measures

We use GAAP financial measures in the section of this quarterly report captioned "Management's Discussion and Analysis and Results of Operation." All of the GAAP financial measures used by us in this report relate to the inclusion of financial information.

Overview

This subsection of MD&A is an overview of the important factors that management focuses on in evaluating our businesses, financial condition and operating performance, our overall business strategy and our earnings for the periods covered.

General
Sichuan Leaders Petrochemical Company (SLPC), formally known as Quality Wallbeds, Inc., was an operating company that provided quality space saving custom home furniture and closet organizing systems to the general public. During our thirteen (13) years of operations we had both profits and losses in prior years.  
In December 2012, the Company changed its name in anticipation of new business opportunities.
The Company discontinued the Florida wall bed operations on May 21, 2013.
We are exploring various opportunities, including the petrochemical field, to determine the best strategic business direction of the company.  Since the change in the business model, current management has seen a direct impact on the revenues of the company. Future cash flows, if any, are impossible to predict at this time. We may raise cash from sources other than our operations. Our only other source for cash at this time is investments by others in the Company or our President and Director, Andy Z. Fan.  Any change in the strategic business direction of the company may take years to complete and future cash flows, if any, are impossible to predict at this time.
Employees

As of March 31, 2014, we have no paid employees. This includes the two (2) officers and directors who run the corporation.
 
Critical Accounting Policies

The preparation of our financial statements 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 period.  Our actual results could differ from those estimates.  To be as accurate with our estimates as possible, we use our historical data to forecast our future results.  Deviations from our projections are addressed when our financials are reviewed on a monthly basis.  This allows us to be proactive in our approach to managing our business.  It also allows us to rely on proven data rather than having to make assumptions regarding our estimates.

Management does not believe that our actual results are related to any sensitivity in estimates made by management.  The year-end consistency of our results has shown that our prior year's historical data is the best projector of our future results.

Income Taxes

We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date.

We record net deferred tax assets to the extent we believe these assets will more likely than not be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of their net recorded amount, we would make an adjustment to the valuation allowance, which would reduce the provision for income taxes.

Impairment of Long-Lived Assets

FASB ASC 360 requires that long-lived assets and certain identifiable intangibles held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  We assess the potential impairment of long-lived assets, principally property and equipment, whenever events or changes in circumstances indicate that the carrying value may not be recoverable. We determine if there is impairment by comparing undiscounted future cash flows from the related long-lived assets with their respective carrying values. In determining future cash flows, significant estimates are made by us with respect to future operating results of the restaurant over its remaining lease term. If assets are determined to be impaired, the impairment charge is measured by calculating the amount by which the asset carrying amount exceeds its fair value. This process of assessing fair values requires the use of estimates and assumptions, which are subject to a high degree of judgment. If these assumptions change in the future, we may be required to record impairment charges for these assets. The adoption of ASC 360 has not materially affected the Company's reported earnings, financial condition or cash flows.

Results of Operations

The following table provides a summary of the results of operations for the three month period ended March 31, 2014 and 2013 as well as our last two full fiscal years.
 
Table 2.0 Summary of Results of Operations
 
Period ended:
 
Revenue
   
Expenses
   
Net Income (Loss)
 
March 31, 2014
 
$
-
   
$
(7,279
)
 
$
(7,279
)
March 31, 2013
 
$
-
   
$
(51,572
)
 
$
(51,572
)
December 31, 2013
 
$
-
   
$
(80,156
)
 
$
(80,156
)
December 31, 2012
 
$
53,565
   
$
(117,023
)
 
$
(63,458
)
 
Discontinued Operations

As of May 21, 2013, the Company completed the cessation of operations of the retail wall bed store.

The Board believed that to continue to protect and increase shareholder value, it would be to the advantage, welfare and best interests of the shareholders for the Company to consider alternative corporate strategies to generate new business revenue for the Company.  Our Board of Directors believes we can explore various opportunities within the petrochemical field to determine the best strategic business direction of the company.  Management has determined that the opportunities in the petrochemical field in Asia are expanding.
 
Results of Operations and Discontinued Operations for the Three Months Ended March 31, 2014 and 2013

The following tables set forth key components of our results of operations and revenue for the periods indicated in dollars.
 
Table 3.0 Comparison of our Statement of Operations for the Three Months Ended March 31, 2014 and 2013
 
 
 
Three Months Ended March 31,
   
 
 
 
2014
   
2013
   
%Change
 
Sales
 
$
-
   
$
-
     
100
%
Cost of Sales
 
$
-
   
$
-
     
100
%
General and Administrative Expense
 
$
7,279
   
$
23,976
     
70
%
Loss from Operations
 
$
(7,279
)
 
$
(23,976
)
   
(70
%)
Loss from Discontinued Operations
  $      
$
(27,596
)
   
100
%
Net Loss
 
$
(7,279
)
 
$
(51,572
)
   
(86
%)
Loss Per Share: Basic and Diluted
 
$
(0.00
)
 
$
(0.00
)
   
-
 
 
Revenue from Operations.
For the three months ended March 31, 2014, and March 31, 2013, the total sales were $0.

Operating Expenses.
Expenses were $7,279 for the three months ended March 31, 2014 and for the three months ended March 31, 2013 the expenses were $23,976, which is a 70% decrease. The decrease in our general and administrative expenses is directly related to the accounting procedures that are now in place for gaining a better control over the expenses going out while we pursue a different direction for the company.

Net Income (Loss).As a result of the factors described above, there was a net loss of ($7,279) for the three months ended March 31, 2014. Compared to a net loss of ($51,572) for the three month ended March 31, 2013.

Liquidity and Capital Resources

General. At March 31, 2014, we had cash and cash equivalents of $84,399.

Our operating activities used cash of ($4,241) and of ($23,976) for the three months ended March 31, 2014 and 2013, respectively.

Cash used in our financing activities was ($46,122) for the three months ended March 31, 2014, compared to $53,200 generated during the comparable period in 2013.
As of March 31, 2014, our current assets exceed our current liabilities.  Management believes that it current cash and cash equivalents will allow the Company to continue to operate with no further financing activities.

In the event we are unable to generate sufficient funds to continue our business efforts or if the company is pursued by a larger company for a business combination we will analyze all strategies to continue the company and maintain or increase shareholder value.  Under these circumstances we would consider a merger, acquisition, joint venture, strategic alliance, a roll-up, or other business combination for the purposes of continuing the business and maintaining or increasing shareholder value.  Management believes its responsibility to maintain shareholder value is of paramount importance, which means the Company should consider the aforementioned alternatives in the event funding is not available on favorable terms to the Company when needed.

Going Concern

The Company had no revenue and a net loss of ($7,279) for the three months ended March 31, 2014.  These factors do raise substantial doubt about the ability of the Company to continue as a going concern for a reasonable period of time.

Inflation

Inflation does not materially affect our business or the results of our operations.

Recent Accounting Pronouncements

The Company has carefully considered the new pronouncements that altered generally accepted accounting principles.  The Company does not believe that any new or modified principles will have a material impact on the Company's reported financial position or operations in the near term, other than the following as reported in our financial statements:

Off-Balance Sheet Arrangements

We do not have any off-balance arrangements.
ITEM 3.                          QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The following discussion about the Company's market rate risk involves forward-looking statements. Actual results could differ materially from those projected in the forward-looking statements.

In general, business enterprises can be exposed to market risks, including fluctuation in the unemployment rate, foreign currency exchange rates, and interest rates that can adversely affect the cost and results of operating, investing, and financing. In seeking to minimize the risks and/or costs associated with such activities, the Company manages exposure to changes in the unemployment rate, interest rates and foreign currency exchange rates through its regular operating and financing activities. The Company does not utilize financial instruments for trading or other speculative purposes, nor does the Company utilize leveraged financial instruments or other derivatives.

Our operations are conducted primarily in the United States and are not subject to foreign currency exchange rate risk.

ITEM 4T.                          CONTROLS AND PROCEDURES
 
Disclosure Controls and Procedures.
 
The Company maintains disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended) that are designed to ensure that information required to be disclosed in the Company's Securities Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms and that such information is accumulated and communicated to the Company's management, as appropriate, to allow timely decisions regarding required disclosure.

The Company's management has evaluated the effectiveness of the Company's disclosure controls and procedures as of the end of the period covered by this report. Based upon that evaluation, management has concluded that, as of the end of the period covered by this report, the Company's disclosure controls and procedures were not effective.

Changes in Internal Control over Financial Reporting
There was a change in the Company's internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Exchange Act Rules 13a-15 that occurred during the year ended December 31, 2013, that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.  Management determined that there was a weakness in the reporting of our bank account balances.  Management instituted a new policy to have only the Corporate Secretary manage and review all bank statements to correctly report all cash balances.
 

PART II – OTHER INFORMATION
ITEM 1.                          LEGAL PROCEEDINGS

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

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

We did not issue unregistered equity securities during the quarter ended March 31, 2014.

ITEM 3.                          DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.                          MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.                          OTHER INFORMATION

None.
ITEM 6.                        EXHIBITS
Exhibit No.
Description
3.1
Articles of Incorporation
Filed on May 9, 2012 as Exhibit 3.1 to the issuer's Registration Statement on Form S-1 (File No. 333-181276) and incorporated herein by reference.
3.2
Amended and Restated Articles of Incorporation
Filed on May 9, 2012 as Exhibit 3.2 to the issuer's Registration Statement on Form S-1 (File No. 333-181276) and incorporated herein by reference.
3.3
By-Laws
Filed on May 9, 2012 as Exhibit 3.3 to the issuer's Registration Statement on Form S-1 (File No. 333-181276) and incorporated herein by reference.
31
Certification of Principal Executive Officer and Principal Financial Officer filed pursuant to Exchange Act Rules 13a-14(a) and 15d -14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
Filed herewith
32
Certification of Chief Executive Officer and Chief Financial Officer furnished pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Furnished herewith
 
 
 
 
101
Financial statements from the quarterly report on Form 10-Q of SICHUAN LEADERS PETROCHEMICAL COMPANY for the quarter ended September 30, 2012, formatted in XBRL: (i) the Balance Sheet, (ii) the Statement of Income, (iii) the Statement of Cash Flows and (iv) the Notes to the Financial Statements.
Filed herewith

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.
 
 
 
 
 
 
SICHUAN LEADERS PETROCHEMICAL COMPANY
 
 
 
 
Dated April 24, 2014
/s/ANDY Z. FAN
 
Andy Z. Fan
 
Principal Executive Officer