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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

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

 

For the quarterly period ended June 30, 2014

 

OR

 

[  ]TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission file Number: 000-51048

 

ASIA PROPERTIES, INC.
(Exact name of registrant as specified in its charter)

 

Nevada   47-0855301
(State or other jurisdiction of   (IRS Employer
incorporation or organization)   Identification No.)
     

119 Commercial Street

Suite 190-115, Bellingham

Washington 98225

  98225
(Address of principal executive offices)   (Zip Code)

 

(360) 392-2841
(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 past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

 

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

 

Large accelerated filer [  ] Accelerated filer [  ]
   
Non-accelerated filer [  ] (Do not check if a smaller reporting company) Smaller reporting company [X]

 

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

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of January 8, 2014, the issuer had 50,199,362 shares of common stock outstanding.

 

 

 

 
 

 

ASIA PROPERTIES, INC.

Quarterly Report on Form 10-Q
For the Quarterly Period Ended June 30, 2014

 

FORWARD-LOOKING STATEMENTS

 

This Form 10-Q for the quarterly period ended June 30, 2014 contains forward-looking statements that involve risks and uncertainties. Forward-looking statements in this document include, among others, statements regarding our capital needs, business plans and expectations. Such forward-looking statements involve assumptions, risks and uncertainties regarding, among others, the success of our business plan, availability of funds, government regulations, operating costs, our ability to achieve significant revenues, our business model and products and other factors. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or “continue”, the negative of such terms or other comparable terminology. In evaluating these statements, you should consider various factors, including the assumptions, risks and uncertainties set forth in reports and other documents we have filed with or furnished to the SEC. These factors or any of them may cause our actual results to differ materially from any forward-looking statement made in this document. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding future events, our actual results will likely vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. The forward-looking statements in this document are made as of the date of this document and we do not intend or undertake to update any of the forward-looking statements to conform these statements to actual results, except as required by applicable law, including the securities laws of the United States.

 

2
 

 

TABLE OF CONTENTS

FORM 10-Q

QUARTER ENDED JUNE 30, 2014

 

  Page
PART I - FINANCIAL INFORMATION    
     
Item 1. Consolidated Financial Statements (Unaudited)   F-1
       
  Consolidated Balance Sheets as of June 30, 2014 and December 31, 2013   F-1
       
  Consolidated Statements of Comprehensive Loss for the three and six month periods ended June 30, 2014 and 2013 and for the period from inception through June 30, 2014   F-2 - F-3
       
  Consolidated Statements of Stockholders’ Deficit for the period from December 31, 2004 through June 30, 2014   F-4
       
  Consolidated Statements of Cash Flows for the three and six month periods ended June 30, 2014 and 2013 and for the period from April 6, 1998 (Inception) through June 30, 2014   F-5 - F-6
       
  Selected notes to consolidated financial statements   F-7
       
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations   4
       
Item 3. Quantitative and Qualitative Disclosures About Market Risk   5
       
Item 4. Controls and Procedures   5
     
PART II - OTHER INFORMATION    
     
Item 1. Legal Proceedings   6
     
Item 2. Unregistered Sales of Equity Securities and Proceeds   6
     
Item 3. Default upon Senior securities   6
     
Item 4. Submission of Matters to a Vote of Security Holders   6
     
Item 5. Other Information   6
     
Item 6. Exhibits   6

 

3
 

 

PART I - FINANCIAL INFORMATION

 

ITEM 1: CONSOLIDATED FINANCIAL STATEMENTS

 

ASIA PROPERTIES, INC.

(A DEVELOPMENT STAGE COMPANY)

CONSOLIDATED BALANCE SHEETS

AS OF JUNE 30, 2014 AND DECEMBER 31, 2013

 

 

   June 30, 2014   Dec 31, 2013 
Assets          
Current          
Cash and cash equivalents  $549   $5,475 
Total Current Assets   549    5,475 
           
Total Assets  $549   $5,475 
           
Liabilities and Stockholder’s equity          
           
Current liabilities          
Accounts payables and accrued liabilities   35,939   $34,038 
Notes payable (note 6)   12,500    12,500 
Line of Credit (note 5)   48,889    49,340 
Short Term Loans (note 3)   -    2,765 
Due to Related Party (note 4)   1,222,160    1,172,279 
Total Current liabilities  $1,319,488    1,270,922 
           
Stockholders’ Deficit          
Common stock, $0.001 par value, 1,000,000,000 shares authorized 41,921,362 issued and outstanding at June 30, 2014 and December 31, 2013   15,648    15,648 
Additional paid in capital   3,291,280    3,291,280 
Donated Capital   345,000    345,000 
Deficit accumulated during the development stage   (4,970,867)   (4,917,375)
    (1,318,939)   (1,265,447)
           
Total liabilities and stockholders’ deficit  $549   $5,475 

 

See accompanying notes to the financial statements

 

F-1
 

 

ASIA PROPERTIES, INC.

(A DEVELOPMENT STAGE COMPANY)

UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

FOR THE THREE MONTHS ENDED JUNE 30, 2014 AND 2013

 

   For the three
months ended
June 30, 2014
   For the three
months ended
June 30, 2013
 
Revenue  $-   $- 
           
Operating expenses          
General and administrative expenses   4,718    9,271 
Management fees   15,000    15,000 
Professional fees   7,944    868 
Consulting fees   -    1,694 
Total operating expenses   27,662    26,833 
           
Loss from operations   (27,662)   (26,833)
Interest income   -    - 
Gain on disposal of subsidiary   -    - 
Gain on settlement of debt   -    - 
Income taxes recovered   -    - 
Write-down of property and equipment   -    - 
Net comprehensive loss  $(27,662)  $(26,833)

 

See accompanying notes to the financial statements

 

F-2
 

 

ASIA PROPERTIES, INC.

(A DEVELOPMENT STAGE COMPANY)

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE SIX MONTHS ENDED JUNE 30, 2014 AND 2013

 

   For the Six
Months Ended
June 30, 2014
   For the Six
Months Ended
June 30, 2013
   For the Period
From April 6, 1998
(Inception) Through
June 30, 2014
 
Revenue  $-   $-   $(46,432)
                
Operating expenses               
General and administrative   10,929    24,966    1,954,571 
Commission Expenses   -    -    42,000 
Management Fees   30,000    30,000    1,373,614 
Professional Fees   12,563    2,830    844,666 
Consulting   -    1,694    386,261 
Total operating expenses   53,492    59,940    4,601,112 
                
Loss from operations   (53,492)   (59,940)   (4,647,544)
Interest income   -    -    3,294 
Disposal of subsidiary   -    -    27,120 
Gain on settlement of debt   -    -    178,307 
Income taxes recovered   -    -    595 
Write-off of investments in mining claims   -    -    (525,000)
Write-down of property and equipment   -    -    (7,639)
Net Comprehensive Loss  $(53,492)  $(59,940)  $(4,970,867)
                
Weighted average number of shares outstanding -basic and diluted   41,921,362    38,421,362      
                
Basic and diluted loss per share  $(0.0012)  $(0.0015)     

 

See accompanying notes to the financial statements

 

F-3
 

 

ASIA PROPERTIES, INC.

(A DEVELOPMENT STAGE COMPANY)

UNAUDITED STATEMENTS OF STOCKHOLDERS’ DEFICIT

FROM DECEMBER 31, 2004 THROUGH JUNE 30, 2014

 

       Additional              
   Common Stock   Paid In   Donated         
   Number of   Amount   Capital   Capital   Deficit   Total 
   shares   $   $   $   $   $ 
Balance December 31, 2004   30,076,112    7,519    1,729,509    270,000    (2,064,981)   (57,953)
Issued for services at $0.26 per share   40,000    40    10,360    -    -    10,400 
Issued for services at $0.50 per share   160,000    50    24,950    -    -    25,000 
Issued for properties at $0.50 per share   200,000    600    299,400    -    -    300,000 
Issued for properties at $1.45 per share   2,400,000    45    159,955    -    -    160,000 
Issued for properties at $2.55 per share   180,000    350    899,650    -    -    900,000 
Issued for cash at $0.50 per share   1,400,000    1,050    523,950    -    -    525,000 
Finders fee paid   4,200,000    -    (25,000)   -    -    (25,000)
Donated capital   -    -    -    60,000    -    60,000 
Net loss for the year   -    -    -    -    (247,792)   (247,792)
Balance, December 31, 2005   38,616,112    9,654    3,622,774    330,000    (2,312,773)   1,649,655 
Option exercised for cash at $1.00 per share   160,000    40    39,960    -    -    40,000 
Issued for cash at $1.00   420,000    105    104,895    -    -    105,000 
Donated capital   -    -    -    15,000    -    15,000 
Net loss for the year   -    -    -    -    (252,278)   (252,278)
Balance December 31, 2006   39,196,112    9,799    3,767,629    345,000    (2,565,051)   1,557,377 
Issued for cash at $1.00   220,000    55    54,945    -    -    55,000 
Finders fee paid   11,000    3    2,747    -    -    2,750 
4 for 1 split on 16 April   -    -    -    -    -    - 
Net loss for the year   -    -    -    -    (298,260)   (298,260)
Balance December 31, 2007   39,115,112    9,857    3,825,321    345,000    (2,863,311)   1,316,867 
Issued for cash at $0.20   225,000    225    44,775    -    -    45,000 
Finders’ fee paid   11,250    11    2,239    -    -    2,250 
Cancelled due to unsuccessful transfer of property rights   (3,940,000)   (985)   (1,323,460)   -    -    (1,324,445)
Net loss for the year   -    -    -    -    (513,977)   (513,977)
Balance December 31, 2008   35,411,362    9,108    2,548,875    345,000    (3,377,288)   (474,305)
Cancelled due to unsuccessful transfer of property rights   (40,000)   (10)   (35,545)   -    -    (35,555)
Net loss for the period   -    -    -    -    (114,528)   (114,528)
Balance December 31, 2009   35,371,362    9,098    2,513,330    345,000    (3,491,816)   (624,388)
Issued for services   350,000    350    52,150    -    -    52,500 
Net loss for the period   -    -    -    -    (179,258)   (179,258)
Balance December 31, 2010   35,721,362    9,448    2,565,480    345,000    (3,671,074)   (751,146)
Net loss for the period   -    -    -    -    (32,957)   (32,957)
Issued for properties at $0.05 per share   500,000    500    24,500    -    -    25,000 
Issued for properties at $0.245 per share   2,000,000    2,000    488,000    -    -    490,000 
Issued for commission at $0.21 per share   200,000    200    41,800    -    -    42,000 
Net comprehensive loss for the year   -    -    -    -    (244,512)   (244,512)
Balance December 31, 2011   38,421,362    12,148    3,119,780    345,000    (3,915,588)   (438,659)
Net comprehensive loss for the year                       (190,792)   (190,792)
Balance December 31, 2012   38,421,362    12,148    3,119,780    345,000    (4,106,380)   (629,452)
Issued for debt settlement and services at $0.05 per share   3,500,000    3,500    171,500    -    -    175,000 
Net comprehensive loss for the year   -    -    -    -    (810,995)   (810,995)
Balance December 31, 2013   41,921,362    15,648    3,291,280    345,000    (4,917,375)   (1,265,447)
Net comprehensive loss for the quarter   -    -    -    -    (25,830)   (25,830)
Balance March 31, 2014   41,921,362    15,648    3,291,280    345,000    (4,943,205)   (1,291,277)
Net comprehensive loss for the quarter   -    -    -    -    (27,662)   (27,662)
Balance June 30,2014   41,921,362    15,648    3,291,280    345,000    (4,970,867)   (1,318,939)

 

See accompanying notes to the financial statements

 

F-4
 

 

ASIA PROPERTIES, INC.

(A DEVELOPMENT STAGE COMPANY)

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE THREE MONTHS ENDED JUNE 30, 2014 AND 2013

 

   For The Three
Months Ended
June 30, 2014
   For The Three
Months Ended
June 30, 2013
 
         
Cash flows used in operating activities          
Net loss  $(27,662)  $(26,833)
Adjustments to reconcile net loss to net cash used in operating activities          
Amortized property rights   -    - 
Cancellation of shares issued for property rights   -    - 
Deferred assets amortized   -    - 
Depreciation   -    - 
Donated management services   -    - 
Gain on settlement of debt   -    - 
Gain on disposal of subsidiary   -    - 
Investments in mining claims acquired   -    - 
Investment written off   -    - 
Property rights written off   -    - 
Shares issued for investments acquired   -    - 
Shares issued for services received   -    - 
Additional paid-in-capital realized on shares issued   -    - 
Write down of investment to net realizable value   -    - 
Write down of property and equipment   -    - 
Changes in operating assets and liabilities          
Increase/ (decrease) in short term loans   (134)   (3,739)
Increase/ (decrease) in due to related parties   27,296    29,473 
(Decrease) Increase in accounts payable and accrued liabilities   750    960 
Net cash used in operating activities  $250   $(140)
Cash flow used in investing activities          
Property rights acquired for resale   -    - 
Increase in deferred assets   -    - 
Purchase of property and equipment   -    - 
Purchase of investment   -    - 
Net cash used in investing activities   -    - 
Cash flows from financing activities          
Issuance of stock   -    - 
Wells Fargo Business Line   (689)   86 
Payments made on long term loan   -    - 
Advances from related party   -    - 
Net cash provided by (used in) financing activities   (689)   86 
           
Net increase/ (decrease) in cash  $(439)  $(54)
Cash, beginning of period  $988   $525 
Cash, end of period  $549   $471 

 

See accompanying notes to the financial statements

 

F-5
 

 

ASIA PROPERTIES, INC.

(A DEVELOPMENT STAGE COMPANY)

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2014 AND 2013

 

  

For the Six

months ended

June 30, 2014

  

For the Six

months ended

June 30, 2013

  

Cumulative for

the Period from

April 6, 1998

(Inception) through

June 30, 2014

 
             
Cash flows used in operating activities               
Net loss  $(53,492)   (59,941)  $(4,970,867)
Adjustments to reconcile net loss to net cash used in operating activities               
Amortized property rights   -    -    97,310 
Cancellation of shares issued for property rights   -    -    (1,360,000)
Deferred assets amortized   -    -    12,507 
Depreciation   -    -    12,599 
Donated management services   -    -    345,000 
Gain on settlement of debt   -    -    (178,307)
Gain on disposal of subsidiary   -    -    - 
Write-off of investments in mining claims   -    -    525,000 
Investment written off   -    -    20,000 
Property rights written off   -    -    1,637,900 
Shares issued for investments acquired   -    -    2,500 
Shares issued for services received   -    -    928,326 
Additional paid-in-capital realized on shares issued   -    -    606,450 
Write down of investment to net realizable value   -    -    37,400 
Write down of property and equipment   -    -    7,639 
Changes in operating assets and liabilities               
Increase/ (decrease) in short term loans   (2,765)   (12,975)   (11,599)
Increase/ (decrease) in due to related parties   49,881    65,979    1,416,703 
Increase in payables and accruals   1,900    4,093    484,248 
Net cash used in operating activities   (4,476)   (2,394)   (387,191)
Cash flow used in investing activities               
Property rights acquired for resale   -    -    (375,209)
Increase in deferred assets   -    -    (12,507)
Purchase of property and equipment   -    -    (20,238)
Purchase of investment   -    -    (20,000)
Investment in mining claims acquired   -    -    (652,000)
Net cash used in investment activities   -    -    (1,079,954)
Cash flows from financing activities               
Issuance of stock   -    -    1,406,600 
Wells Fargo Business Line   (450)   (27)   8,109 
Payments made on long term loan   -    (2,045)   52,985 
Net cash used in financing activities   (450)   1,062    1,467,694 
                
Net increase/ (decrease) in cash  $(4,926)  $(9,135)   549 
Cash, beginning of period  $5,475   $10,175    - 
Cash, end of period  $549   $1,040    549 

 

See accompanying notes to the financial statements

 

F-6
 

  

Asia Properties, Inc.

Notes to the Financial Statements

June 30, 2014 (Unaudited)

 

1. Basis of Presentation

 

The accompanying unaudited interim consolidated financial statements of Asia Properties, Inc. (the “Company” or “Asia Properties”), have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in Asia Properties’ Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for fiscal 2013 as reported in the form 10-K have been omitted.

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of Asia Properties Inc. and its 100% owned subsidiary, Asia Properties (HK) Limited that was registered in Hong Kong on November 7, 2007, after elimination of all significant inter-company accounts and transactions.

 

2. Going Concern

 

Planned principal activities have begun but Asia Properties has not generated significant revenues to date. The Company had a net loss of $53,492 and had a negative working capital ($1,318,939) and stockholders’ deficit of $1,318,939 at June 30, 2014. These matters raise substantial doubt about Asia Properties’ ability to continue as a going concern. Continuation of Asia Properties’ existence depends upon its ability to obtain additional capital. Management’s plans in regards to this matter include receiving continued financial support from directors and raising additional equity financing in 2013. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

3. Short-term Loan

 

In February 2008, the Company secured financing from Capital One in the amount of $100,000. The loan requires the Company to repay $1,739 on a monthly basis. Interest is charged at the annual prime rate plus 3.25%. As of June 30, 2014, the Capital One Loan has been paid in full (2013 - $2,765). The short term loan is secured personally by the sole director and officer of the Company.

 

4. Due to related party

 

During the quarter ended June 30, 2014, the Company accrued management fees of $15,000 (2013 - $15,000) to the Chief Executive Officer (“CEO”) and sole director of the Company. As of June 30, 2014, the Company owed its CEO $1,222,160 (2013 - $1,172,279) for expense reimbursements and accrued management fees, which are reflected as due to related party on the balance sheet. These advances are unsecured, non-interest bearing and payable upon demand.

 

5. Line of Credit

 

In February 2007, the Company was approved for a revolving credit facility at Wells Fargo for a maximum business line amount of $50,000. Interest is charged at 12.75% annually. As at June 30, 2014, the balance amounted to $48,889 (2013 - $49,340). The line of credit is secured personally by the sole director and officer of the Company.

 

F-7
 

 

Asia Properties, Inc.

Notes to the Financial Statements

June 30, 2014 (Unaudited)

 

6. Notes Payable

 

The Company issued demand promissory notes to two individuals during 2011 and 2012. The original principal of $16,000 is payable upon demand. Interest is accrued at 2% per month. During the year ended December 31, 2013, $3,500 of the demand promissory notes were transferred to an arm’s length party and settled by the issuance of common stock. See Note 7(a). As at June 30, 2014, notes payable due was $12,500 (2013 - $12,500).

 

7. Common Stock

 

The following table summarizes common stock issuances for the years ended as of December 31, 2012 and 2013, and to the period ended June 30, 2014:

 

   Number of
Shares
   Common Stock
Amount
 
         
Balance as of December 31, 2012   38,421,362   $12,148 
Issued 3,500,000 shares for the settlement of debt and servicesa 3,500,000    3,500 
           
Balance as of December 31, 2013 and June 30, 2014   41,921,362   $15,648 

 

a) On September 26, 2013, the Company issued 3,500,000 shares valued at $175,000, based on the current market price of $0.05, to settle a debt of $3,500 (See Note 7) and for consulting fees of $171,500, which have been charged to the consolidated statement of comprehensive loss.

 

8. Commitments and Contingencies

 

The Company has a monthly office rental of $77 in Hong Kong.

 

The Company rents an office in Bellingham, Washington which costs $100 per month on a month to month basis.

 

9. Subsequent Events

 

On August 25, 2014, the Company issued 408,000 common shares to settle a debt of $20,400 which included promissory notes of $14,000 plus accrued interest of $6,400.

 

On August 27, 2014, the Company issued 500,000 common shares in lieu of services rendered.

 

On December 29, 2014, the Company issued 370,000 restricted common shares in settlement of $18,500 of debt.

 

On January 1, 2015, the Company issued 6,800,000 restricted common shares to settle $340,000 of debt owed to the director and officer of the Company.

 

On January 1, 2015, the Company issued 200,000 restricted common shares for services rendered.

 

On January 6, 2015, the Company entered into a Purchase and Sale Agreement (“PSA”) to acquire 100% of the shares of Asia Innovation Technology Limited (“AITL”). Pursuant to the PSA, the Company will issue 950-million restricted common shares of the Company to AITL. Please see January 6, 2015 8K filing for addition details.

 

F-8
 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation.

 

Asia Properties, Inc. was established to seek opportunities to invest in real estate and develop resorts in South East Asia. The Company has in July, 2011 restructured itself into a junior mining exploration company

 

At the moment, it intends to deploy Asian based capital to develop and acquire mining assets in North America and other favorable mining jurisdictions.

 

The Company is not highly leveraged and expects to be able to capitalize on suitable possibilities when identified.

 

Limited Operating History; Need for Additional Capital

 

There is no historical financial information about us upon which to base an evaluation of our performance. We have no revenue generating assets. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services.

 

We will require additional financing to cover our costs that we expect to incur over the next twelve months. We believe that debt financing will not be an alternative for funding our operations as we do not have tangible assets to secure any debt financing. We anticipate that additional funding will be in the form of equity financing from the sale of our common stock. However, we cannot provide any assurance that we will be able to raise sufficient funding from the sale of our common stock to fund our plan of operations. In the absence of such financing, we will not be able to continue and our business plan will fail.

 

Results of Operations

 

Revenues

 

We have not generated any revenues from our operations during the three-month period ended June 30, 2014 or during last two years.

 

Expenses

 

We incurred general and administrative expenses of $4,718 for the three-month period ended June 30, 2014 (2013 - $9,271) a decrease of $4,552 or 49%.

 

Our management fees remained the same at $15,000 for the three-months ended June 30, 2014 as for last year.

 

We incur professional fees of $7,944 during the three month ended June 30, 2014 (2013 - $868).

 

We did not incur consulting fees for the three month ended June 30, 2014 (2013-$1,694).

 

Liquidity and Capital Resources

 

As at June 30, 2014, we had cash of $549 (2013 - $5,475).

 

Cash Used in Operating Activities

 

Net cash used in operating activities was $249, for the three month period ended June 30, 2014 (2013 - $140).

 

Cash Used in Investing Activities

 

We did not incur any investment costs in the three-month period ended June 30, 2014 or June 30, 2012. Net cash used in investing activities was $197,046 for the period from April 6, 1998 (inception) to June 30, 2014.

 

4
 

 

Cash from Financing Activities

 

For the three month period ended June 30, 2014, the Company used $689 (2013 - $0) in financing activities. In the six month period ended June 30, 2014, the Company paid $451 (2013 - $27 in repayments) in financing activities. We have funded our business to date primarily from sales of our common stock but did not issue any common stock during the six month period ended June 30, 2014. There is no assurance that we will be able to achieve further sales of our common stock or any other form of additional financing.

 

Going Concern

 

We are a development stage company. In a development stage company, management devotes most of its activities to developing a market for its products and services. Planned principal activities have begun, but we have not generated revenues to date.

 

Future Financing

 

We anticipate continuing to rely on equity sales of our common stock in order to continue to fund our business operations. Issuances of additional shares will result in dilution to our existing shareholders. There is no assurance that we will achieve any additional sales of our equity securities or arrange for debt or other financing to fund our planned operations.

 

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, capital expenditures or capital resources that is material to stockholders.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

Not applicable.

 

Item 4. Controls and Procedures.

 

Disclosure Controls and Procedures

 

We maintain 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 by us in reports we file or submit under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including the our Chief Executive Officer (as our chief executive officer and chief financial officer), to allow timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. As of the end of the period covered by this report, and under the supervision and with the participation of management, including our Chief Executive Officer, who is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act, such persons conducted an evaluation of the effectiveness of the design and operation of these disclosure controls and procedures. Based on this evaluation and subject to the foregoing, our Chief Executive Officer concluded that these controls are not effective because there are material weaknesses in our internal controls over financial reporting. A material weakness is a deficiency, or a combination of control deficiencies, in internal control over reporting such that there is a reasonable possibility that that a material misstatement our annual or interim financial statements will not be prevented or detected on a timely basis.

 

Changes in Internal Control Over Financial Reporting

 

During the period covered by this report, there have not been any changes in our internal controls that have materially affected or are reasonably likely to materially affect, the our internal control over financial reporting. However, please note the discussion above.

 

5
 

  

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

We are not presently a party to any legal proceedings and, to our knowledge, no such proceedings are threatened or pending.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

No stock was sold for valuable consideration during the six months ended June 30, 2014.

 

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Submission of Matters to a Vote of Security Holders.

 

No matters were submitted to our security holders for a vote during the six months ended June 30, 2014.

 

Item 5. Other Information.

 

None.

 

Item 6. Exhibits.

 

The following exhibits are attached hereto:

 

Exhibit No.   Description of Exhibit
     
31.1   Certification of principal Executive Officer pursuant to Rule 13a-15(e) and 15d-15(e), promulgated under the Securities and Exchange Act of 1934, as amended, filed herewith
     
31.2   Certification of principal Financial Officer pursuant to Rule 13a-15(e) and 15d-15(e), promulgated under the Securities and Exchange Act of 1934, as amended, filed herewith
     
32.1   Certification of principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith
     
32.2   Certification of principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith
   
101.INS   XBRL Instance Document*
101.SCH   XBRL Taxonomy Extension Schema Document*
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF   XBRL Taxonomy Extension Definition Linkbase Document*
101.LAB   XBRL Taxonomy Extension Label Linkbase Document*
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document*

 

 * Filed herewith.

  

6
 

 

SIGNATURES

 

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

ASIA PROPERTIES, INC.

 

By: /s/ Daniel McKinney  
  Daniel Mckinney  
  Chief Executive Officer  
  (Principal Executive Officer and Principal Financial Officer)  

 

Date: January 14, 2015

 

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