|
[X] Quarterly
Report under Section 13 or 15(d) of the Securities Exchange Act of
1934.
|
|
[ ] Transition
Report under Section 13 or 15(d) of the Securities Exchange Act of
1934.
|
NEVADA
|
87-0564472
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer I.D. Number)
|
Page
No.
|
|
PART
1. FINANCIAL INFORMATION
|
|
Item
1. Financial
Statements
|
3
|
Consolidated
Balance Sheet, September 30, 2007 (unaudited) and
|
|
December
31, 2006
(audited)
|
3
|
Consolidated
Statement of Operations, for the three months ended September 30,
2007
|
|
and
2006, and cumulative from
inception to June 30, 2007 (unaudited)
|
4
|
Consolidated
Statement of Stockholders’ Equity (Deficit) for the period
from
|
|
January
7, 1982 (inception)
through September 30, 2007 (unaudited)
|
5
|
Consolidated
Statements of Cash Flows, for the three months ended
|
|
September
30, 2007 and 2006, and
cumulative from inception (Jan. 7, 1982)
|
|
to
September 30, 2007
(unaudited)
|
6
|
7
|
|
13
|
|
16
|
|
PART
II. OTHER INFORMATION
|
|
17
|
|
17
|
|
17
|
|
17
|
|
17
|
|
18
|
VICTORY
ENERGY CORPORATION AND SUBSIDIARIES
|
(A
Development Stage Company)
|
Consolidated
Balance Sheets
|
|
September
30,
|
December
31,
|
|||||||
ASSETS
|
2007
|
2006
|
||||||
Unaudited
|
||||||||
CURRENT
ASSETS
|
||||||||
Cash
and Cash Equivalents
|
$ |
129
|
$ |
-
|
||||
Subscriptions
Receivable
|
735,000
|
-
|
||||||
Total
Curent Assets
|
735,129
|
-
|
||||||
FIXED
ASSETS, NET
|
-
|
-
|
||||||
OTHER
ASSETS
|
||||||||
Investment
in Joint Venture
|
50,000
|
50,000
|
||||||
TOTAL
ASSETS
|
$ |
785,129
|
$ |
50,000
|
||||
LIABILITIES
& STOCKHOLDERS' DEFICIT
|
||||||||
CURRENT
LIABILITES
|
||||||||
Bank
Overdraft
|
$ |
-
|
$ |
79
|
||||
Accounts
Payable
|
34,600
|
19,142
|
||||||
Credit
Line - WFB Business Line
|
80,840
|
56,961
|
||||||
Prepaid
Subscriptions
|
203,500
|
203,500
|
||||||
Total
Current Liabilities
|
318,940
|
279,682
|
||||||
OTHER
LIABILITIES
|
||||||||
Loan
from Officer
|
1,148,235
|
690,085
|
||||||
Total
Other Liabilities
|
1,148,235
|
690,085
|
||||||
Total
Liabilities
|
1,467,175
|
969,767
|
||||||
Commitments
and contingencies (Note 6)
|
||||||||
STOCKHOLDERS'
DEFICIT
|
||||||||
Preferred
Stock, $0.001 par value, 10,000,000 shares
|
||||||||
authorized,
630,517 issued and outstanding
|
631
|
716
|
||||||
Common
Stock, $0.001 par value, 200,000,000 shares
|
||||||||
authorized, 31,285,366 issued
and outstanding
|
31,286
|
4,518
|
||||||
Additional
paid-in capital
|
7,999,041
|
4,566,320
|
||||||
Deficit
accumulated in the development stage
|
(8,713,004 | ) | (5,491,321 | ) | ||||
Total
Stockholders' Deficit
|
(682,046 | ) | (919,767 | ) | ||||
TOTAL
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
$ |
785,129
|
$ |
50,000
|
||||
VICTORY
ENERGY CORPORATION AND
SUBSIDIARIES
|
(A
Development Stage Company)
|
|||||||||||
Consolidated
Statement of Operations
|
|||||||||||
Unaudited
|
|||||||||||
For
the period
|
||||||||||||||||||||
of
Inception,
|
||||||||||||||||||||
For
the
|
For
the
|
from
January 2,
|
||||||||||||||||||
Three
Months Ended
|
Nine
Months Ended
|
1982
through
|
||||||||||||||||||
September
30,
|
September
30,
|
September
30,
|
||||||||||||||||||
2007
|
2006
|
2007
|
2006
|
2007
|
||||||||||||||||
Revenues
|
$ |
-
|
$ |
-
|
$ |
-
|
$ |
-
|
$ |
20,207
|
||||||||||
Costs
and Expenses
|
||||||||||||||||||||
Consulting
Expense
|
95,000
|
254,350
|
3,007,501
|
997,165
|
6,901,855
|
|||||||||||||||
Land
Leases
|
-
|
-
|
1,680
|
24,040
|
25,720
|
|||||||||||||||
Wages
and Salaries
|
-
|
80,000
|
102,500
|
270,500
|
||||||||||||||||
General
& Administrative
|
47,159
|
11,074
|
212,502
|
378,571
|
1,407,969
|
|||||||||||||||
Total
Expenses
|
142,159
|
345,424
|
3,221,683
|
1,502,276
|
8,606,044
|
|||||||||||||||
Operating
Loss
|
(142,159 | ) | (345,424 | ) | (3,221,683 | ) | (1,502,276 | ) | (8,585,837 | ) | ||||||||||
Other
Income and (expenses)
|
||||||||||||||||||||
Loss
on abandonment of subsidiary
|
(50,900 | ) | ||||||||||||||||||
Loss
from reduction in debt
|
(48,363 | ) | ||||||||||||||||||
Interest
Expense
|
0
|
|||||||||||||||||||
Other
Income
|
2,096
|
|||||||||||||||||||
Total
Other Income and (expenses)
|
0
|
0
|
0
|
0
|
(97,167 | ) | ||||||||||||||
Net
Loss
|
$ | (142,159 | ) | $ | (345,424 | ) | $ | (3,221,683 | ) | $ | (1,502,276 | ) | $ | (8,683,004 | ) | |||||
Basic
and Dilutive net loss per share
|
$ | (0.00 | ) | $ | (0.11 | ) | $ | (0.15 | ) | $ | (0.56 | ) | ||||||||
Weighted
average number of shares
|
||||||||||||||||||||
outstanding,
basic and diluted
|
31,285,366
|
3,179,439
|
21,461,340
|
2,691,443
|
||||||||||||||||
(Restated)
|
(Restated)
|
|||||||||||||||||||
Note
2
|
Note
2
|
|||||||||||||||||||
Dilutive
effect of preferred stock,
|
0
|
0
|
||||||||||||||||||
(Note
2)
|
VICTORY
ENERGY CORPORATION AND SUBSIDIARIES
|
|||
(A
Development Stage Company)
|
|||
Consolidated
Statement of Stockholders' Equity (Deficit)
|
|||
Unaudited
|
Accumulated
|
||||||||||||||||||||||||||||
Additional
|
Deficit
During
|
|||||||||||||||||||||||||||
Common
Stock
|
Preferred
Stock
|
Paid-in
|
Development
|
|||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Stage
|
Total
|
||||||||||||||||||||||
Balances
at January 7, 1982
|
0
|
$ |
-
|
0
|
$ |
-
|
$ |
-
|
$ |
-
|
$ |
-
|
||||||||||||||||
Common
stock for cash at $7.50/sh
|
6,000
|
6
|
45,000
|
0
|
45,006
|
|||||||||||||||||||||||
Common
stock for cash at $0.39/sh.
|
168,503
|
169
|
65,819
|
0
|
65,988
|
|||||||||||||||||||||||
Net
loss from inception to Dec. 31,'82
|
0
|
0
|
0
|
(39,597 | ) | (39,597 | ) | |||||||||||||||||||||
Balances
at Dec. 31, 1982
|
174,503
|
175
|
110,819
|
(39,597 | ) |
71,397
|
||||||||||||||||||||||
Net
loss, year ended Dec. 31, 1983
|
0
|
0
|
0
|
(71,397 | ) | (71,397 | ) | |||||||||||||||||||||
Balances
at Dec. 31, 1983
|
174,503
|
175
|
110,819
|
(110,994 | ) | (0 | ) | |||||||||||||||||||||
Common
stock for cash at $25.00/sh.
|
57
|
0
|
1,425
|
0
|
1,425
|
|||||||||||||||||||||||
Common
stock for cash at $25.00/sh. per share
|
3
|
0
|
75
|
0
|
75
|
|||||||||||||||||||||||
Common
stock for cash at $0.025/sh. per share
|
1,580,000
|
1,580
|
38,373
|
0
|
39,953
|
|||||||||||||||||||||||
Net
loss - year ended Dec. 31, 1984
|
0
|
0
|
0
|
0
|
0
|
|||||||||||||||||||||||
Balances
at Dec. 31, 1984
|
1,754,563
|
1,755
|
150,692
|
(110,994 | ) |
41,453
|
||||||||||||||||||||||
Cancellation
of common stock
|
(1,296,132 | ) | (1,297 | ) | (1,297 | ) | ||||||||||||||||||||||
Net
loss - year ended Dec. 31, 1985
|
0
|
0
|
0
|
0
|
0
|
|||||||||||||||||||||||
Balances
at Dec. 31, 1985
|
458,431
|
458
|
150,692
|
(110,994 | ) |
40,156
|
||||||||||||||||||||||
Net
loss - year ended Dec. 31, 1986
|
0
|
0
|
0
|
0
|
0
|
|||||||||||||||||||||||
Balances
at Dec. 31, 1986
|
458,431
|
458
|
150,692
|
(110,994 | ) |
40,156
|
||||||||||||||||||||||
Net
loss - year ended Dec. 31, 1987
|
0
|
0
|
0
|
0
|
0
|
|||||||||||||||||||||||
Balances
at Dec. 31, 1987
|
458,431
|
458
|
150,692
|
(110,994 | ) |
40,156
|
||||||||||||||||||||||
Net
loss - year ended Dec. 31, 1988
|
0
|
0
|
0
|
0
|
0
|
|||||||||||||||||||||||
Balances
at Dec. 31, 1988
|
458,431
|
458
|
150,692
|
(110,994 | ) |
40,156
|
||||||||||||||||||||||
Net
loss - year ended Dec. 31, 1989
|
0
|
0
|
0
|
0
|
0
|
|||||||||||||||||||||||
Balances
at Dec. 31, 1989
|
458,431
|
458
|
150,692
|
(110,994 | ) |
40,156
|
||||||||||||||||||||||
Net
loss - year ended Dec. 31, 1990
|
0
|
0
|
0
|
0
|
0
|
|||||||||||||||||||||||
Balances
at Dec. 31, 1990
|
458,431
|
458
|
150,692
|
(110,994 | ) |
40,156
|
||||||||||||||||||||||
Net
loss - year ended Dec. 31, 1991
|
0
|
0
|
0
|
0
|
0
|
|||||||||||||||||||||||
Balances
at Dec. 31, 1991
|
458,431
|
458
|
150,692
|
(110,994 | ) |
40,156
|
||||||||||||||||||||||
Net
loss - year ended Dec. 31, 1992
|
0
|
0
|
0
|
0
|
0
|
|||||||||||||||||||||||
Balances
at Dec. 31, 1992
|
458,431
|
458
|
150,692
|
(110,994 | ) |
40,156
|
||||||||||||||||||||||
Net
loss - year ended Dec. 31, 1993
|
0
|
0
|
0
|
0
|
0
|
|||||||||||||||||||||||
Balances
at Dec. 31, 1993
|
458,431
|
458
|
150,692
|
(110,994 | ) |
40,156
|
||||||||||||||||||||||
Cancellation
of common stock
|
(316,000 | ) | (316 | ) | (316 | ) | ||||||||||||||||||||||
Net
loss - year ended Dec. 31, 1994
|
0
|
0
|
0
|
(6,656 | ) | (6,656 | ) | |||||||||||||||||||||
Balances
at Dec. 31, 1994
|
142,431
|
142
|
150,692
|
(117,650 | ) |
33,184
|
||||||||||||||||||||||
Common
stock for cash at $0.001/sh.
|
2,357,895
|
2,359
|
0
|
0
|
2,359
|
|||||||||||||||||||||||
Net
loss - year ended Dec. 31, 1995
|
0
|
0
|
0
|
(49,097 | ) | (49,097 | ) | |||||||||||||||||||||
Balances
at Dec. 31, 1995
|
2,500,326
|
2,500
|
150,692
|
(166,747 | ) | (13,555 | ) | |||||||||||||||||||||
Common
stock for cash at $0.001/sh.
|
120,000
|
120
|
0
|
0
|
120
|
|||||||||||||||||||||||
Net
loss - year ended Dec. 31, 1996
|
0
|
0
|
0
|
(1,681 | ) | (1,681 | ) | |||||||||||||||||||||
Balances
at Dec. 31, 1996
|
2,620,326
|
2,620
|
150,692
|
(168,428 | ) | (15,116 | ) | |||||||||||||||||||||
Net
loss - year ended Dec. 31, 1997
|
0
|
0
|
0
|
(3,517 | ) | (3,517 | ) | |||||||||||||||||||||
Balances
at Dec. 31, 1997
|
2,620,326
|
2,620
|
150,692
|
(171,945 | ) | (18,633 | ) | |||||||||||||||||||||
Net
loss - year ended Dec. 31, 1998
|
0
|
0
|
0
|
(2,479 | ) | (2,479 | ) | |||||||||||||||||||||
Balances
at Dec. 31, 1998
|
2,620,326
|
2,620
|
150,692
|
(174,424 | ) | (21,112 | ) | |||||||||||||||||||||
Net
loss - year ended Dec. 31, 1999
|
0
|
0
|
0
|
(6,307 | ) | (6,307 | ) | |||||||||||||||||||||
Balances
at Dec. 31, 1999
|
2,620,326
|
2,620
|
150,692
|
(180,731 | ) | (27,419 | ) | |||||||||||||||||||||
Net
loss - year ended Dec. 31, 2000
|
0
|
0
|
0
|
(9,011 | ) | (9,011 | ) | |||||||||||||||||||||
Balances
at Dec. 31, 2000
|
2,620,326
|
2,620
|
150,692
|
(189,742 | ) | (36,430 | ) | |||||||||||||||||||||
Net
loss - year ended Dec. 31, 2001
|
0
|
0
|
0
|
(19,461 | ) | (19,461 | ) | |||||||||||||||||||||
Balances
at Dec. 31, 2001
|
2,620,326
|
2,620
|
150,692
|
(209,203 | ) | (55,891 | ) | |||||||||||||||||||||
Contributed
capital for rent and
|
||||||||||||||||||||||||||||
other
compensation
|
0
|
0
|
1,950
|
0
|
1,950
|
|||||||||||||||||||||||
Net
loss - year ended Dec. 31, 2002
|
0
|
0
|
0
|
(13,960 | ) | (13,960 | ) | |||||||||||||||||||||
Balances
at Dec. 31, 2002
|
2,620,326
|
2,620
|
152,642
|
(223,163 | ) | (67,901 | ) | |||||||||||||||||||||
Contributed
capital for rent and
|
||||||||||||||||||||||||||||
officer
compensation
|
0
|
0
|
488
|
0
|
488
|
|||||||||||||||||||||||
Capital
contributed by shareholders
|
||||||||||||||||||||||||||||
via
accounts payable and interest
|
0
|
77,415
|
0
|
77,415
|
||||||||||||||||||||||||
Stock
issued for services $0.025/sh.
|
13,389,932
|
13,390
|
321,358
|
0
|
334,748
|
|||||||||||||||||||||||
Stock
issued for services at $0.61/sh.
|
100,000
|
100
|
60,900
|
0
|
61,000
|
|||||||||||||||||||||||
Stock
for consulting at $0.47/share
|
10,000
|
10
|
4,690
|
0
|
4,700
|
|||||||||||||||||||||||
Net
loss - year ended Dec. 31, 2003
|
0
|
0
|
0
|
(592,962 | ) | (592,962 | ) | |||||||||||||||||||||
Balances
at Dec. 31, 2003
|
16,120,258
|
16,120
|
617,493
|
(816,125 | ) | (182,512 | ) | |||||||||||||||||||||
Stock
issued for services at $0.16/sh
|
1,000,000
|
1,000
|
159,000
|
0
|
160,000
|
|||||||||||||||||||||||
Stock
issued for services at $0.17/sh.
|
1,800,000
|
1,800
|
304,200
|
0
|
306,000
|
|||||||||||||||||||||||
Stock
issued for services at $0.165/sh
|
800,000
|
800
|
131,200
|
0
|
132,000
|
|||||||||||||||||||||||
Stock
issued for services at $0.215/sh.
|
30,000
|
30
|
6,420
|
0
|
6,450
|
|||||||||||||||||||||||
Stock
issued for debt at $0.45 per sh.
|
150,000
|
150
|
67,350
|
0
|
67,500
|
|||||||||||||||||||||||
Stock
issued for services at $0.40/sh
|
300,000
|
300
|
119,700
|
0
|
120,000
|
|||||||||||||||||||||||
Stock
issued for services at $0.34/sh.
|
700,000
|
700
|
237,300
|
0
|
238,000
|
|||||||||||||||||||||||
Stock
issued for services at $0.41/sh.
|
300,000
|
300
|
122,700
|
0
|
123,000
|
|||||||||||||||||||||||
Stock
issued for services at $0.27/sh.
|
300,000
|
300
|
80,700
|
0
|
81,000
|
|||||||||||||||||||||||
Stock
issued for services at $0.22/sh.
|
600,000
|
600
|
131,400
|
0
|
132,000
|
|||||||||||||||||||||||
Net
loss - year ended Dec. 31, 2004
|
(1,606,057 | ) | (1,606,057 | ) | ||||||||||||||||||||||||
Balances
at Dec. 31, 2004
|
22,100,258
|
22,100
|
1,977,463
|
(2,422,182 | ) | (422,619 | ) | |||||||||||||||||||||
Contributed
capital for general and administrative expenses
|
138,701
|
138,701
|
||||||||||||||||||||||||||
Stock
issued for services at $0.03/sh.
|
19,860,000
|
19,860
|
575,940
|
595,800
|
||||||||||||||||||||||||
Net
loss - year ended Dec. 31, 2005
|
(1,323,775 | ) | (1,323,775 | ) | ||||||||||||||||||||||||
Balances
at December 31, 2005
|
41,960,258
|
41,960
|
0
|
0
|
2,692,104
|
(3,745,957 | ) | (1,011,893 | ) | |||||||||||||||||||
Stock
issued for services at $0.027/sh.
|
17,583,334
|
17,583
|
459,917
|
477,500
|
||||||||||||||||||||||||
Common
stock issued in debt
|
||||||||||||||||||||||||||||
restructuring
at $0.06 and $0.03
|
10,666,667
|
10,667
|
429,333
|
440,000
|
||||||||||||||||||||||||
Stock
issued for debt at $0.06/ sh.
|
5,000,000
|
5,000
|
295,000
|
300,000
|
||||||||||||||||||||||||
Stock
issued for services at $0.03/sh.
|
2,500,000
|
2,500
|
72,500
|
75,000
|
||||||||||||||||||||||||
Stock
issued for services at $0.05/sh.
|
500,000
|
500
|
24,500
|
25,000
|
||||||||||||||||||||||||
Stock
issued for services at $0.008/sh.
|
10,000,000
|
10,000
|
70,000
|
80,000
|
||||||||||||||||||||||||
Stock
for consulting at $0.008/sh.
|
4,500,000
|
4,500
|
31,500
|
36,000
|
||||||||||||||||||||||||
Stock
for consulting at $0.008/sh.
|
500,000
|
500
|
3,500
|
4,000
|
||||||||||||||||||||||||
Stock
for consulting at $0.008/sh.
|
4,000,000
|
4,000
|
28,000
|
32,000
|
||||||||||||||||||||||||
Stock
for consulting at $0.008/sh.
|
700,000
|
700
|
4,900
|
5,600
|
||||||||||||||||||||||||
Stock
for consulting at $0.008/sh.
|
300,000
|
300
|
2,100
|
2,400
|
||||||||||||||||||||||||
Stock
for consulting at $0.008/sh.
|
3,600,000
|
3,600
|
25,200
|
28,800
|
||||||||||||||||||||||||
Stock
for consulting at $0.008/sh.
|
3,000,000
|
3,000
|
21,000
|
24,000
|
||||||||||||||||||||||||
Stock
for consulting at $0.008/sh.
|
4,000,000
|
4,000
|
28,000
|
32,000
|
||||||||||||||||||||||||
Balances
before reverse split
|
108,810,259
|
108,810
|
0
|
0
|
4,187,554
|
(3,745,957 | ) |
550,407
|
||||||||||||||||||||
Reverse
split 25 to 1
|
(104,457,849 | ) | (104,458 | ) |
0
|
0
|
104,458
|
0
|
||||||||||||||||||||
New
Stock issued for rounding
|
890
|
1
|
(1 | ) |
0
|
|||||||||||||||||||||||
Balances
after reverse split
|
4,353,300
|
4,353
|
0
|
0
|
4,292,011
|
(3,745,957 | ) |
550,407
|
||||||||||||||||||||
Preferred
stock for cash at $0.467/sh.
|
715,517
|
716
|
246,234
|
246,950
|
||||||||||||||||||||||||
Common
stock for rounding$0.50/sh.
|
1
|
0
|
0
|
0
|
||||||||||||||||||||||||
Common
stock for services $0.20/sh
|
5,200
|
5
|
1,035
|
1,040
|
||||||||||||||||||||||||
Common
stock for rounding$0.20/sh.
|
14
|
0
|
0
|
0
|
||||||||||||||||||||||||
Common
stock for services $0.17/sh.
|
160,000
|
160
|
27,040
|
27,200
|
||||||||||||||||||||||||
Net
loss - year ended Dec. 31, 2006
|
(1,745,364 | ) | (1,745,364 | ) | ||||||||||||||||||||||||
Balances
at December 31, 2006
|
4,518,515
|
4,518
|
715,517
|
716
|
4,566,320
|
(5,491,321 | ) | (919,767 | ) | |||||||||||||||||||
Common
stock for services $0.15/sh
|
6,277,251
|
6,278
|
935,310
|
941,588
|
||||||||||||||||||||||||
Common
stock sold @ $0.21/sh
|
5,662,000
|
5,662
|
1,183,358
|
1,189,020
|
||||||||||||||||||||||||
Common
stock for services $0.21/sh
|
40,000
|
40
|
8,360
|
8,400
|
||||||||||||||||||||||||
Common
stock for services $0.21/sh
|
2,787,600
|
2,788
|
582,608
|
585,396
|
||||||||||||||||||||||||
Common
stock subscribed, issued $0.21
|
3,500,000
|
3,500
|
731,500
|
735,000
|
||||||||||||||||||||||||
Preferred
Stock converted to common
|
8,500,000
|
8,500
|
(85,000 | ) | (85 | ) | (8,415 | ) |
0
|
|||||||||||||||||||
Net
loss - 9 mo ended Sep. 30, 2007
|
(3,221,683 | ) | (3,221,683 | ) | ||||||||||||||||||||||||
Balances
at September 30, 2007
|
31,285,366
|
$ |
31,286
|
630,517
|
$ |
631
|
$ |
7,999,041
|
$ | (8,713,004 | ) | $ | (682,046 | ) |
VICTORY
ENERGY CORPORATION AND SUBSIDIARIES
|
||||||
(A
Development Stage Company)
|
||||||
Consolidated
Statements of Cash Flows
|
||||||
Unaudited
|
For
the
|
For
the
|
Inception
from
|
||||||||||||||||||
Three
Months Ended
|
Nine Months
Ended
|
Jan.
7, 1982
|
||||||||||||||||||
September
30,
|
September
30,
|
through
|
||||||||||||||||||
2007
|
2006
|
2007
|
2006
|
Sep.
30, 2007
|
||||||||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||||||||||
Net
Loss
|
$ | (142,159 | ) | $ | (345,424 | ) | $ | (3,221,683 | ) | $ | (1,502,276 | ) | $ | (8,584,504 | ) | |||||
Adjustments
to reconcile net loss to net cash
|
||||||||||||||||||||
used
by operating activities:
|
||||||||||||||||||||
Depreciation
|
299
|
898
|
2,294
|
|||||||||||||||||
Loss
on extinguishment of debt
|
48,363
|
|||||||||||||||||||
Loss
on abandonment of subsidiary
|
50,900
|
|||||||||||||||||||
Issuance
of common stock for services rendered
|
244,800
|
1,535,384
|
1,122,300
|
6,178,540
|
||||||||||||||||
Increase
in Short Term Receivables
|
||||||||||||||||||||
Decrease
(Increase) in Prepaid Expenses
|
43,450
|
246,950
|
||||||||||||||||||
Increase
(Decrease) in Deposits
|
||||||||||||||||||||
Incrrease
(Decrease) in Prepaid Subscriptions
|
203,500
|
|||||||||||||||||||
(Incrrease)
Decrease in Subscriptions Receivable
|
(735,000 | ) | (735,000 | ) | ||||||||||||||||
Increase
(Decrease) in accounts payable
|
(5,840 | ) |
9,176
|
15,458
|
(321,794 | ) |
34,600
|
|||||||||||||
Increase
(Decrease) in accrued liabilities
|
16,006
|
4,590
|
||||||||||||||||||
Increase
(Decrease ) in Accrued Payroll,P'roll Taxes
|
43,994
|
510,970
|
||||||||||||||||||
Increase
(Decrease) in Short Term Receivables
|
||||||||||||||||||||
Repayment
of long term debt
|
||||||||||||||||||||
Increase
(decrease) in Accrued Liabilities-Related
|
4,500
|
4,500
|
||||||||||||||||||
Non-cash
contributed capital
|
(524 | ) | ||||||||||||||||||
Net
Cash provided by (used by)
|
||||||||||||||||||||
Operating
Activities
|
(147,999 | ) |
16,801
|
(2,405,841 | ) |
66,138
|
(2,801,831 | ) | ||||||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||||||||||
Purchase
of Fixed Assets
|
(2,294 | ) | ||||||||||||||||||
Purchase
/ Sale of Marketable Securities
|
88,300
|
|||||||||||||||||||
Investment
in Joint Venture
|
(50,000 | ) | (50,000 | ) | ||||||||||||||||
Net
Cash (used by) Investing Activities
|
0
|
0
|
0
|
38,300
|
(52,294 | ) | ||||||||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||||||||||
Proceeds
of Note Payable
|
3,027
|
|||||||||||||||||||
Proceeds
(Repayment) of Loans
|
(210,984 | ) | ||||||||||||||||||
Increase
(decrease) in Credit Line
|
218
|
61,128
|
23,879
|
61,128
|
80,840
|
|||||||||||||||
Proceeds
(Repayment) of Loan from Officer
|
159,670
|
(75,000 | ) |
458,150
|
41,664
|
1,019,735
|
||||||||||||||
Proceeds
(Repayment) of Note Payable-Related Party
|
(2,500 | ) | ||||||||||||||||||
Increase
(Decrease) in Other Loans Payable
|
19,000
|
19,000
|
||||||||||||||||||
Contributed
capital for rent and officers' compensation
|
2,438
|
|||||||||||||||||||
Proceeds
from the sale of Preferred Stock
|
||||||||||||||||||||
Proceeds
from the sale/conversion of Common Stock
|
1,189,020
|
1,504,291
|
||||||||||||||||||
Commons
stock subscribed, issued
|
735,000
|
|||||||||||||||||||
Proceeds
from the sale/conversion of Preferred Stock
|
246,950
|
|||||||||||||||||||
Contributed
Capital by shareholders
|
||||||||||||||||||||
Net
Cash provided by Financing Activities
|
159,888
|
5,128
|
2,406,049
|
(88,665 | ) |
2,854,254
|
||||||||||||||
NET
INCREASE IN CASH
|
11,889
|
21,929
|
208
|
15,773
|
129
|
|||||||||||||||
CASH
AT BEGINNING OF PERIOD
|
(11,760 | ) | (2,082 | ) | (79 | ) |
4,074
|
-
|
||||||||||||
CASH
AT END OF PERIOD
|
$ |
129
|
$ |
19,847
|
$ |
129
|
$ |
19,847
|
$ |
129
|
||||||||||
CASH
PAID FOR:
|
||||||||||||||||||||
Interest
|
$ |
-
|
$ |
-
|
$ |
-
|
$ |
-
|
$ |
-
|
||||||||||
Income
Taxes
|
$ |
-
|
$ |
-
|
$ |
-
|
$ |
-
|
$ |
-
|
September
30, 2007
|
September
30,
2006
|
|||||||
Numerator:
|
||||||||
Basic
and diluted net loss per share:
|
||||||||
Net
Loss
|
$ | (3,221,683 | ) | $ | (1,502,276 | ) | ||
Denominator
|
||||||||
Basic
and diluted weighted average
|
||||||||
number
of shares outstanding
|
21,461,340
|
2,691,443
|
||||||
Basic
and Diluted Net Loss Per Share
|
$ | (0.15 | ) | $ | (0.56 | ) | ||
|
(Restated)
|
|||||||
Dilutive
effect of Preferred Stock
|
Nil
|
N/A
|
Description
|
Years
|
Furniture
and fixtures
|
7
|
Computer
hardware and software
|
3-5
|
Exhibit
No.
|
Description
of Exhibit
|
31
|
|
32
|
|