FLORIDA
|
65-1139235
|
|
(State
or other jurisdiction of
incorporation
|
(IRS
Employer Identification
No.)
|
|
or
organization)
|
|
PART
I. FINANCIAL INFORMATION
|
|
Item
1. Consolidated Condensed Financial Statements and Notes - Quarter
Ended
June 30, 2008
|
2
|
Item
2. Management's Discussion and Analysis or Plan of Operation
|
2
|
Item
3. Controls and Procedures
|
5
|
PART
II. OTHER INFORMATION
|
|
Item
1. Legal Proceedings
|
5
|
Item
2. Unregistered Sales of Equity Securities and Use of Proceeds
|
5
|
Item
3. Default Upon Senior Securities
|
5
|
Item
4. Submission of Matters to a Vote of Security Holders
|
5
|
Item
5. Other Information
|
5
|
Item
6. Exhibits and Reports on Form 8-K
|
6
|
Signatures
|
6
|
PAGE
|
1
|
CONDENSED
CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2008 (UNAUDITED) AND
DECEMBER
31, 2007 (AUDITED)
|
PAGE
|
2
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR
THE THREE
AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007 AND FOR THE PERIOD
FROM MAY
28, 2003 (INCEPTION) TO JUNE 30, 2008 (UNAUDITED)
|
PAGES
|
3 –
4
|
CONDENSED
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT) FOR THE PERIOD
FROM MAY 28, 2003 (INCEPTION) TO JUNE 30, 2008
(UNAUDITED)
|
PAGES
|
5
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED
JUNE 30,
2008 AND 2007 AND FOR THE PERIOD FROM MAY 28, 2003 (INCEPTION)
TO JUNE 30,
2008 (UNAUDITED)
|
PAGES
|
6 -
14
|
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
|
As of
|
As of
|
||||||
June 30
|
December 31,
|
||||||
2008
|
2007
|
||||||
(Unaudited)
|
|||||||
ASSETS
|
|||||||
CURRENT
ASSETS
|
|||||||
Cash
|
$
|
3,022
|
$
|
450
|
|||
Total
Assets
|
$
|
3,022
|
$
|
450
|
|||
LIABILITIES
AND STOCKHOLDERS' EQUITY (DEFICIT)
|
|||||||
CURRENT
LIABILITIES
|
|||||||
Accounts
payable and accrued expenses
|
$
|
84,422
|
$
|
87,085
|
|||
Loans
payable and accrued interest - related parties
|
277,329
|
208,898
|
|||||
Total
Current Liabilities
|
361,751
|
295,983
|
|||||
STOCKHOLDERS'
EQUITY (DEFICIT)
|
|||||||
Preferred
stock, $.0001 par value, 20,000,000 shares authorized, none issued
and
outstanding
|
-
|
-
|
|||||
Common
stock, $.0001 par value, 250,000,000 shares authorized, 143,742,500
and
108,292,500 shares issued and outstanding, respectively
|
14,375
|
10,830
|
|||||
Additional
paid-in capital
|
26,780,251
|
4,710,296
|
|||||
Deferred
stock compensation
|
(183,750
|
)
|
-
|
||||
Accumulated
deficit during development stage
|
(26,969,654
|
)
|
(5,016,659
|
)
|
|||
Accumulated
other comprehensive income
|
49
|
-
|
|||||
Total
Stockholders' Equity (Deficit)
|
(358,729
|
)
|
(295,533
|
)
|
|||
TOTAL
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)
|
$
|
3,022
|
$
|
450
|
For the
|
||||||||||||||||
Period From
|
||||||||||||||||
For the Three
|
For the Three
|
For the Six
|
For the Six
|
May 28,2003
|
||||||||||||
Months Ended
|
Months Ended
|
Months Ended
|
Months Ended
|
(Inception)
|
||||||||||||
June 30, 2008
|
June 30, 2007
|
June 30, 2008
|
June 30, 2007
|
to June 30, 2008
|
||||||||||||
REVENUE
|
$
|
-
|
$
|
2,660
|
$
|
-
|
$
|
7,450
|
$
|
26,695
|
||||||
OPERATING
EXPENSES
|
||||||||||||||||
Drilling
costs and expenses
|
-
|
-
|
-
|
-
|
51,886
|
|||||||||||
General
and administrative
|
106,837
|
5,359
|
206,512
|
12,672
|
260,084
|
|||||||||||
Professional
fees
|
6,043
|
2,943
|
19,199
|
20,909
|
124,187
|
|||||||||||
Amortization
|
-
|
15,324
|
-
|
18,668
|
33,400
|
|||||||||||
Impairment
of investment in oil and gas leases
|
-
|
159,716
|
-
|
159,716
|
247,931
|
|||||||||||
Impairment
of bio-fuels plant development contract
|
21,717,235
|
-
|
21,717,235
|
-
|
21,717,235
|
|||||||||||
Acquisition
costs
|
-
|
-
|
-
|
-
|
4,250,000
|
|||||||||||
Total
Operating Expenses
|
21,830,115
|
183,342
|
21,942,946
|
211,965
|
26,684,723
|
|||||||||||
LOSS
FROM CONTINUING OPERATIONS
|
(21,830,115
|
)
|
(180,682
|
)
|
(21,942,946
|
)
|
(204,515
|
)
|
(26,658,028
|
)
|
||||||
OTHER
INCOME (EXPENSE)
|
||||||||||||||||
Interest
income
|
-
|
-
|
-
|
-
|
2,789
|
|||||||||||
Interest
expense
|
(5,211
|
)
|
(3,555
|
)
|
(10,049
|
)
|
(6,321
|
)
|
(33,246
|
)
|
||||||
Total
Other Expense
|
(5,211
|
)
|
(3,555
|
)
|
(10,049
|
)
|
(6,321
|
)
|
(30,457
|
)
|
||||||
LOSS
BEFORE DISCONTINUED OPERATIONS
|
(21,835,326
|
)
|
(184,237
|
)
|
(21,952,995
|
)
|
(210,836
|
)
|
(26,688,485
|
)
|
||||||
LOSS
FROM DISCONTINUED OPERATIONS
|
-
|
-
|
-
|
-
|
(4,026,761
|
)
|
||||||||||
LOSS
BEFORE PROVISION FOR INCOME TAXES
|
(21,835,326
|
)
|
(184,237
|
)
|
(21,952,995
|
)
|
(210,836
|
)
|
(30,715,246
|
)
|
||||||
Provision
for income taxes
|
-
|
-
|
-
|
-
|
-
|
|||||||||||
NET
LOSS
|
(21,835,326
|
)
|
(184,237
|
)
|
(21,952,995
|
)
|
(210,836
|
)
|
(30,715,246
|
)
|
||||||
OTHER
COMPREHENSIVE INCOME
|
||||||||||||||||
Foreign
currency translation gain (loss)
|
(89
|
)
|
-
|
49
|
-
|
49
|
||||||||||
COMPREHENSIVE
LOSS
|
$
|
(21,835,415
|
)
|
$
|
(184,237
|
)
|
$
|
(21,952,946
|
)
|
$
|
(210,836
|
)
|
$
|
(30,715,197
|
)
|
|
LOSS
PER COMMON SHARE - BASIC AND DILUTED
|
||||||||||||||||
Continuing
operations
|
$
|
(0.19
|
)
|
$
|
-
|
$
|
(0.22
|
)
|
$
|
-
|
||||||
Discontinued
operations
|
-
|
-
|
-
|
-
|
||||||||||||
Net
loss per share - basic and diluted
|
$
|
(0.19
|
)
|
$
|
-
|
$
|
(0.22
|
)
|
$
|
-
|
||||||
Weighted
average number of shares outstanding during the period - basic
and
diluted
|
114,127,115
|
93,292,500
|
100,204,615
|
93,292,500
|
For the
|
||||||||||
Period From
|
||||||||||
For the Six
|
For the Six
|
May 28,2003
|
||||||||
Months Ended
|
Months Ended
|
(Inception)
|
||||||||
June 30, 2008
|
June 30, 2007
|
to June 30, 2008
|
||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||
Net
loss
|
$
|
(21,952,995
|
)
|
$
|
(210,836
|
)
|
$
|
(30,715,246
|
)
|
|
Net
loss from discontinued operations
|
-
|
-
|
(4,026,761
|
)
|
||||||
Loss
from continuing operations
|
(21,952,995
|
)
|
(210,836
|
)
|
(26,688,485
|
)
|
||||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||||
In-kind
contributions
|
189,750
|
6,000
|
210,750
|
|||||||
Amortization
|
-
|
18,668
|
33,400
|
|||||||
Impairment
of investment in oil and gas leases
|
-
|
159,716
|
247,931
|
|||||||
Impairment
of bio-fuels plant development contract
|
21,717,235
|
-
|
21,717,235
|
|||||||
Acquisition
costs
|
-
|
-
|
4,250,000
|
|||||||
Changes
in operating assets and liabilities:
|
||||||||||
(Increase)
decrease in accounts receivable
|
-
|
7,843
|
-
|
|||||||
Increase
(decrease) in accounts payable and accrued expenses
|
7,386
|
(31,852
|
)
|
109,366
|
||||||
Cash
flows from operating activities in continuing operations
|
(38,624
|
)
|
(50,461
|
)
|
(119,803
|
)
|
||||
Cash
flows from operating activities in discontinued operations
|
-
|
-
|
(1,034,023
|
)
|
||||||
Net
Cash (Used In) Operating Activities
|
(38,624
|
)
|
(50,461
|
)
|
(1,153,826
|
)
|
||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||
Purchase
of property and equipment
|
-
|
-
|
(116,331
|
)
|
||||||
Acquisition
of ALG Bio Oils Ltd. net of cash purchased
|
180
|
-
|
180
|
|||||||
Cash
flows from investing activities in continuing operations
|
180
|
-
|
(116,151
|
)
|
||||||
Cash
flows from investing activities in discontinued operations
|
-
|
-
|
-
|
|||||||
Net
Cash Provided By (Used In) Investing Activities
|
180
|
-
|
(116,151
|
)
|
||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||
Repayment
of stockholder's loans
|
-
|
-
|
(609
|
)
|
||||||
Loan
payable - related parties
|
40,967
|
57,911
|
230,441
|
|||||||
Cash
flows from financing activities in continuing operations
|
40,967
|
57,911
|
229,832
|
|||||||
Cash
flows from financing activities in discontinued operations
|
-
|
-
|
1,043,118
|
|||||||
Net
Cash Provided By Financing Activities
|
40,967
|
57,911
|
1,272,950
|
|||||||
EFFECT
ON EXCHANGE RATE ON CASH
|
49
|
-
|
49
|
|||||||
NET
INCREASE IN CASH
|
2,572
|
7,450
|
3,022
|
|||||||
CASH
AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
450
|
-
|
-
|
|||||||
CASH
AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
3,022
|
$
|
7,450
|
$
|
3,022
|
For the
|
||||||||||
Period From
|
||||||||||
For the Six
|
For the Six
|
May 28,2003
|
||||||||
Months Ended
|
Months Ended
|
(Inception)
|
||||||||
June 30, 2008
|
June 30, 2007
|
to June 30, 2008
|
||||||||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW INFORMATION:
|
||||||||||
Cash
paid for income taxes
|
$
|
-
|
$
|
-
|
$
|
1,824
|
Accumulated
|
||||||||||||||||||||||||||||
Deficit
|
Accumulated
|
|||||||||||||||||||||||||||
Additional
|
During
|
Other
|
Deferred
|
|||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Paid-In
|
Development
|
Comprehensive
|
Stock
|
|||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Stage
|
Income
|
Compensation
|
Total
|
||||||||||||||||||||
Common
stock issued to founders for cash ($.03 per share)
|
-
|
$
|
-
|
7,500
|
$
|
1
|
$
|
249
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
250
|
||||||||||||
Common
stock issued for license ($.03 per share
|
-
|
-
|
49,500,000
|
4,950
|
1,645,050
|
-
|
-
|
-
|
1,650,000
|
|||||||||||||||||||
Common
stock issued to officer as compensation ($.03 per share)
|
-
|
-
|
21,375,000
|
2,138
|
710,362
|
-
|
-
|
-
|
712,500
|
|||||||||||||||||||
Common
stock issued for cash ($.03 per share)
|
-
|
-
|
2,400,000
|
240
|
79,760
|
-
|
-
|
-
|
80,000
|
|||||||||||||||||||
Common
stock issued for cash ($.15 per share)
|
-
|
-
|
833,334
|
83
|
124,917
|
-
|
-
|
-
|
125,000
|
|||||||||||||||||||
-
|
-
|
|||||||||||||||||||||||||||
Common
stock issued to consultant for services ($.03 per share)
|
-
|
-
|
24,600,000
|
2,460
|
817,540
|
-
|
-
|
-
|
820,000
|
|||||||||||||||||||
Net
loss for the period from May 28, 2003 (inception) to December 31,
2003
|
-
|
-
|
-
|
-
|
-
|
(1,737,805
|
)
|
-
|
-
|
(1,737,805
|
)
|
|||||||||||||||||
Balance,
December 31, 2003
|
-
|
-
|
98,715,834
|
9,872
|
3,377,878
|
(1,737,805
|
)
|
-
|
-
|
1,649,945
|
||||||||||||||||||
Common
stock issued for cash ($.15 per share)
|
-
|
-
|
2,016,693
|
202
|
302,301
|
-
|
-
|
-
|
302,503
|
|||||||||||||||||||
Net
loss, 2004
|
-
|
-
|
-
|
-
|
-
|
(551,203
|
)
|
-
|
-
|
(551,203
|
)
|
|||||||||||||||||
Balance,
December 31, 2004
|
-
|
-
|
100,732,527
|
10,074
|
3,680,179
|
(2,289,008
|
)
|
-
|
-
|
1,401,245
|
||||||||||||||||||
Common
stock issued in reverse merger
|
-
|
-
|
33,292,500
|
3,329
|
(3,329
|
)
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Common
stock issued to consultant for services ($.01 per share)
|
-
|
-
|
15,000,000
|
1,500
|
148,500
|
-
|
-
|
-
|
150,000
|
|||||||||||||||||||
Common
stock cancelled related to license rights ($.01 per share)
|
-
|
-
|
(49,500,000
|
)
|
(4,950
|
)
|
(490,050
|
)
|
-
|
-
|
-
|
(495,000
|
)
|
|||||||||||||||
In-kind
contribution
|
-
|
-
|
-
|
-
|
12,000
|
-
|
-
|
-
|
12,000
|
|||||||||||||||||||
Warrants
issued for non-exclusive license
|
-
|
-
|
-
|
-
|
143,238
|
-
|
-
|
-
|
143,238
|
|||||||||||||||||||
Net
loss, 2005
|
-
|
-
|
-
|
-
|
-
|
(1,696,989
|
)
|
-
|
-
|
(1,696,989
|
)
|
|||||||||||||||||
Balance,
December 31, 2005
|
-
|
-
|
99,525,027
|
9,953
|
3,490,538
|
(3,985,997
|
)
|
-
|
-
|
(485,506
|
)
|
|||||||||||||||||
In-kind
contribution
|
-
|
-
|
-
|
-
|
12,000
|
-
|
-
|
-
|
12,000
|
|||||||||||||||||||
Common
stock cancelled in connection with exchange of ownership in
CardioBioMedical
|
||||||||||||||||||||||||||||
Corporation
to its original stockholders
|
-
|
-
|
(66,232,527
|
)
|
(6,623
|
)
|
(3,211,742
|
)
|
3,745,592
|
-
|
-
|
527,227
|
||||||||||||||||
Common
stock issued to purchase investment in oil and gas leases ($.003
per
share)
|
-
|
-
|
60,000,000
|
6,000
|
159,000
|
-
|
-
|
-
|
165,000
|
|||||||||||||||||||
Net
loss, 2006
|
-
|
-
|
-
|
-
|
-
|
(140,836
|
)
|
-
|
-
|
(140,836
|
)
|
|||||||||||||||||
Balance,
December 31, 2006
|
-
|
-
|
93,292,500
|
9,330
|
449,796
|
(381,241
|
)
|
-
|
-
|
77,885
|
||||||||||||||||||
In-kind
contribution
|
-
|
-
|
-
|
-
|
12,000
|
-
|
-
|
-
|
12,000
|
|||||||||||||||||||
Common
shares issued to acquire 100% of outstanding common shares of
Uranium
|
||||||||||||||||||||||||||||
Acquisition
Corp., Inc.
|
-
|
-
|
15,000,000
|
1,500
|
4,248,500
|
-
|
-
|
-
|
4,250,000
|
|||||||||||||||||||
Net
loss, 2007
|
-
|
-
|
-
|
-
|
-
|
(4,635,418
|
)
|
-
|
-
|
(4,635,418
|
)
|
|||||||||||||||||
Balance,
December 31, 2007
|
-
|
-
|
108,292,500
|
10,830
|
4,710,296
|
(5,016,659
|
)
|
-
|
-
|
(295,533
|
)
|
|||||||||||||||||
In-kind
contribution
|
-
|
-
|
-
|
-
|
6,000
|
-
|
-
|
-
|
6,000
|
|||||||||||||||||||
Common
stock issued to consultant for services ($.82 per share)
|
-
|
-
|
450,000
|
45
|
367,455
|
-
|
-
|
(183,750
|
)
|
183,750
|
||||||||||||||||||
Common
shares issued to acquire 100% of outstanding common shares of ALG
Bio Oils
Ltd.
|
-
|
-
|
35,000,000
|
3,500
|
21,696,500
|
-
|
-
|
-
|
21,700,000
|
|||||||||||||||||||
Other
comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
49
|
-
|
49
|
|||||||||||||||||||
Net
loss for the six months ended June 30, 2008
|
-
|
-
|
-
|
-
|
-
|
(21,952,995
|
)
|
-
|
-
|
(21,952,995
|
)
|
|||||||||||||||||
Balance,
June 30, 2008
|
-
|
$
|
-
|
143,742,500
|
$
|
14,375
|
$
|
26,780,251
|
$
|
(26,969,654
|
)
|
$
|
49
|
$
|
(183,750
|
)
|
$
|
(358,729
|
)
|
NOTE 1 |
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES AND
ORGANIZATION
|
NOTE 2 |
ACQUISITION
|
$
|
180
|
|||
Intangible
asset
|
21,717,235
|
|||
Total
Assets Acquired
|
21,717,415
|
|||
(17,415
|
)
|
|||
Net
Assets Acquired
|
$
|
21,700,000
|
NOTE 3 |
LOANS
PAYABLE – RELATED
PARTY
|
NOTE 4 |
STOCKHOLDERS’
EQUITY
|
NOTE 5 |
RELATED
PARTY TRANSACTIONS
|
NOTE 6 |
DISCONTINUED
OPERATIONS
|
NOTE 7 |
COMMITMENTS
AND CONTINGENCIES
|
NOTE 8 |
GOING
CONCERN
|
NOTE 9 |
SUBSEQUENT
EVENTS
|