GEORGIA
|
58-2558702
|
|
(State or other jurisdiction of
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(I.R.S. Employer Identification. No.)
|
|
incorporation or organization)
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PART 1-FINANCIAL INFORMATION
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3
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|||
4
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|||
5
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|||
12
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|||
13
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|||
18
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20
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PART II-OTHER INFORMATION
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|||
21
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|||
21
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|||
21
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|||
21
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|||
22
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|||
23
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Unaudited
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Audited
|
|||||||
December 31,
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September 30,
|
|||||||
2010
|
2010
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 8,995 | $ | 5,848 | ||||
Accounts Receivable-(Net of Allowance for Doubtful Accounts)
|
_
|
_
|
||||||
Total current assets
|
8,995 | 5,848 | ||||||
Unproved oil and gas properties-successful efforts, net
|
187,814 | 188,702 | ||||||
Other
|
50,000 | 50,000 | ||||||
Total Assets
|
$ | 246,809 | $ | 244,550 | ||||
LIABILITIES AND STOCKHOLDERS' DEFICIT
|
||||||||
Current liabilities:
|
||||||||
Notes payable to a stockholder
|
$ | 289,997 | $ | 289,997 | ||||
Accounts payable and accrued liabilities
|
1,055,489 | 1,003,737 | ||||||
Accounts payable-related party
|
158,308 | 158,308 | ||||||
Advances from stockholder/officer
|
77,897 | 51,397 | ||||||
Convertible debt to stockholder/officer
|
1,199,886 | 1,199,886 | ||||||
Total current liabilities
|
2,781,577 | 2,703,325 | ||||||
Asset Retirement Obligation
|
50,981 | 50,981 | ||||||
Total Liabilities
|
2,832,558 | 2,754,306 | ||||||
Commitments and contingencies
|
||||||||
Stockholders' deficit:
|
||||||||
Preferred stock: no par value, 1,000,000 shares authorized
|
||||||||
no shares outstanding as of December 31,2010 and September 30,2010
|
_
|
_
|
||||||
Common stock:no par value, 250,000,000 shares
|
||||||||
authorized, 53,041,897 and 53,041,897 shares
|
||||||||
issued and outstanding at December 31, 2010
|
||||||||
and September 30, 2010, respectively
|
10,558,437 | 10,558,437 | ||||||
Additional paid-in capital
|
1,379,409 | 1,379,409 | ||||||
Accumulated deficit
|
(1,803,507 | ) | (1,803,507 | ) | ||||
Losses accumulated in the development stage
|
(12,720,088 | ) | (12,644,095 | ) | ||||
Total stockholders' deficit
|
(2,585,749 | ) | (2,509,756 | ) | ||||
Total liabilities and stockholders' deficit
|
$ | 246,809 | $ | 244,550 | ||||
The accompanying notes are an integral part of these financial statements.
|
For the Three Months Ended December 31, 2010, and 2009 and for the Period From
Inception of the Development Stage, October 1, 2004 to December 31, 2010
|
Inception of
|
||||||||||||
Development
|
||||||||||||
THREE MONTHS ENDED
|
Stage to
|
|||||||||||
December 31,
|
December 31,
|
December 31,
|
||||||||||
2010
|
2009
|
2010
|
||||||||||
Revenue
|
$ | 159 | $ | 6,406 | $ | 36,623 | ||||||
Operating expenses, except items shown
|
||||||||||||
separately below
|
$ | 42,574 | $ | 55,126 | $ | 2,340,060 | ||||||
Stock-based compensation
|
_
|
177,500 | 7,452,389 | |||||||||
Professional fees
|
1,183,016 | |||||||||||
Impairment Expense
|
686,648 | |||||||||||
Lease expense
|
_
|
_
|
17,392 | |||||||||
Loss on write-off of leases and equipment
|
263,383 | |||||||||||
Depreciation expense
|
888 |
_
|
7,585 | |||||||||
Advertising expense
|
_
|
_
|
83,265 | |||||||||
Total Operating Expenses
|
43,462 | 232,626 | $ | 12,033,738 | ||||||||
Loss from operations
|
(43,303 | ) | (226,220 | ) | $ | (11,997,115 | ) | |||||
Other income and (expense):
|
||||||||||||
Legal settlement
|
_
|
_
|
204,000 | |||||||||
Other income
|
_
|
_
|
838 | |||||||||
Forbearance agreement costs
|
_
|
_
|
(211,098 | ) | ||||||||
Interest expense
|
(32,690 | ) | (32,289 | ) | (716,713 | ) | ||||||
Total other income and (expenses), net
|
(32,690 | ) | (32,289 | ) | (722,973 | ) | ||||||
Net loss
|
$ | (75,993 | ) | $ | (258,509 | ) | $ | (12,720,088 | ) | |||
Net loss per common share
|
||||||||||||
basic and diluted
|
$ |
-
|
$ | (0.01 | ) | |||||||
Weighted average number of common shares
|
||||||||||||
outstanding-basic and diluted
|
53,041,897 | 46,272,587 | ||||||||||
The accompanying notes are an integral part of the financial statements.
|
For the Period from Development Stage , October 1, 2004 to June 30, 2010
|
Losses | ||||||||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||||||||
Additional | in the | |||||||||||||||||||||||||||
Preferred Stock
|
Common Stock
|
Paid -In
|
Accumulated
|
Development | ||||||||||||||||||||||||
Shares
|
Amount |
Shares
|
Amount
|
Capital
|
Deficit
|
Stage |
Total
|
|||||||||||||||||||||
Balance at September 30, 2004
|
$ | $ | 15,793,651 | $ | 1,532,111 | - | $ | (1,912,397 | ) | $ | $ | (380,286 | ) | |||||||||||||||
Inception of the development
|
||||||||||||||||||||||||||||
stage on October 1, 2004
|
- | - | - | |||||||||||||||||||||||||
Common stock issued for
|
||||||||||||||||||||||||||||
professional services
|
450,000 | 40,000 | - | 40,000 | ||||||||||||||||||||||||
Common stock issued for
|
||||||||||||||||||||||||||||
prepaid services
|
100,000 | 10,000 | - | 10,000 | ||||||||||||||||||||||||
Common stock issued to
|
||||||||||||||||||||||||||||
settle accounts payable
|
361,942 | 36,194 | - | 36,194 | ||||||||||||||||||||||||
Warrants issued under
|
||||||||||||||||||||||||||||
forbearence agreement
|
- | - | 211,098 | 211,098 | ||||||||||||||||||||||||
Net income (loss)
|
- | - | - | 108,890 |
(449,790
|
) | (340,900 | ) | ||||||||||||||||||||
Balance at September 30, 2005
|
$ | $ | 16,705,593 | 1,618,305 | 211,098 | $ | (1,803,507 | ) | $ |
(449,790
|
) | $ | (423,894 | ) | ||||||||||||||
TX HOLDINGS, INC.
A CORPORATION IN THE DEVELOPMENT STAGE
STATEMENT OF CHANGES IN STOCKHOLDERS' DEFICIT
For the Period from Development Stage, October 1, 2004 to June 30, 2010
|
Losses | |||||||||||||||||||||||||||||||
Accumulated | |||||||||||||||||||||||||||||||
Additional | in the | ||||||||||||||||||||||||||||||
Preferred Stock | Common Stock | Paid-in | Accumulated | Development | |||||||||||||||||||||||||||
Shares | Amount |
Shares
|
Amount
|
Capital
|
Deficit |
Stage
|
Total
|
||||||||||||||||||||||||
Balance at September 30, 2005
|
- | $ | - | 16,705,593 | $ | 1,618,305 | 211,098 | $ | (1,803,507 | ) | $ | (449,790 | ) | $ | (423,894 | ) | |||||||||||||||
Common stock issued for
|
|||||||||||||||||||||||||||||||
professional services
|
- | 4,649,300 | 2,318,295 | - | 2,318,295 | ||||||||||||||||||||||||||
Common stock issued for cash
|
- | 4,633,324 | 1,164,997 | - | 1,164,997 | ||||||||||||||||||||||||||
Common stock issued upon
|
|||||||||||||||||||||||||||||||
exercise of warrants
|
- | 294,341 | 2,943 | - | 2,943 | ||||||||||||||||||||||||||
Common stock surrendered
|
(500,000 | ) | - | - | |||||||||||||||||||||||||||
Warrants issued for services
|
- | - | 376,605 | - | - | 376,605 | |||||||||||||||||||||||||
- | - | - | |||||||||||||||||||||||||||||
Preferred stock issued to the
|
|||||||||||||||||||||||||||||||
Company's chief executive
|
- | - | - | - | - | ||||||||||||||||||||||||||
officer/stockholder
|
1,000 | $ | 1,018, 000 | - | 1,018,000 | ||||||||||||||||||||||||||
- | - | ||||||||||||||||||||||||||||||
Net income (loss)
|
- | - | - | - | - | (5,015,719 | ) | (5,015,719 | ) | ||||||||||||||||||||||
- | - | ||||||||||||||||||||||||||||||
Balance at September 30, 2006
|
1,000 | $ | 1,018,000 | 25,782,558 | $ | 5,104,541 | $ | 587,703 | $ | (1,803,507 | ) | $ | (5,465,509 | ) | $ | (558,772 | ) | ||||||||||||||
For the Period from Development Stage , October 1, 2004 to June 30, 2010
|
Losses
|
||||||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||||||
Additional
|
in the
|
|||||||||||||||||||||||||||||||
Preferred Stock
|
Common Stock |
Paid-In
|
Accumulated
|
Development
|
||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares |
Amount
|
Capital
|
Deficit
|
Stage
|
Total
|
|||||||||||||||||||||||||
Balance at September 30, 2006
|
1,000 | $ | 1,018,000 | 25,782,558 | $ | 5,104,541 | $ | 587,703 | $ | (1,803,507 | ) | $ | (5,465,509 | ) | $ | (558,772 | ) | |||||||||||||||
Common stock issued for
|
||||||||||||||||||||||||||||||||
professional services
|
- | - | 3,475,555 | 2,501,222 | - | - | 2,501,222 | |||||||||||||||||||||||||
Contribution by stockholder
|
- | - | - | - | 53,325 | - | 53,325 | |||||||||||||||||||||||||
Warrants issued for service
|
- | - | - | - | 159,381 | - | 159,381 | |||||||||||||||||||||||||
Common stock issued upon
|
||||||||||||||||||||||||||||||||
exercise of warrants
|
- | - | 355,821 | 75,461 | - | - | 75,461 | |||||||||||||||||||||||||
Common stock issued in
settlement of notes payable and
|
||||||||||||||||||||||||||||||||
and interest
|
- | - | 833,333 | 546,666 | - | - | 546,666 | |||||||||||||||||||||||||
Common stock issued in settle-
|
||||||||||||||||||||||||||||||||
of accounts payable
|
- | - | 1,437,088 | 215,114 | - | - | 215,114 | |||||||||||||||||||||||||
Net loss
|
- | - | - | - | - | - | (4,085,033 | ) | (4,085,033 | ) | ||||||||||||||||||||||
Balance at September 30, 2007
|
1,000 | $ | 1,018,000 | 31,884,355 | $ | 8,443,004 | $ | 800,409 | $ | (1,803,507 | ) | (9,550,542 | ) | (1,092,636 | ) | |||||||||||||||||
For the period from development Stage, October 1, 2004 to June 30, 2010
|
Losses | ||||||||||||||||||||||
Accumulated | ||||||||||||||||||||||
Additional
|
in the | |||||||||||||||||||||
Preferred Stock
|
Common Stock
|
Paid-In
|
Accumulated | Development | ||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Deficit | Stage | Total | |||||||||||||||
Balance at September 30, 2007
|
1,000
|
|
$
|
1,018,000
|
31,884,355
|
$
|
8,443,004
|
$
|
800,409
|
$
|
(1,803,507
|
) |
$
|
(9,550,542
|
) |
$
|
(1,092,636
|
) | ||||
Common stock issued in
|
||||||||||||||||||||||
exchange of preferred stock |
-1,000
|
-1,018,000
|
10,715,789
|
1,018,000
|
-
|
-
|
-
|
-
|
||||||||||||||
Common stock issued for
|
||||||||||||||||||||||
professional services |
-
|
-
|
450,680
|
128,440
|
-
|
-
|
-
|
128,440
|
||||||||||||||
Common stock issued for
|
||||||||||||||||||||||
cash |
-
|
-
|
780,000
|
73,000
|
-
|
-
|
-
|
73,000
|
||||||||||||||
Common stock issued in
|
||||||||||||||||||||||
settlement of legal claim |
-
|
-
|
175,000
|
31,500
|
-
|
-
|
-
|
31,500
|
||||||||||||||
Contribution by stockholder
|
-
|
-
|
-
|
-
|
10,643
|
10,643
|
||||||||||||||||
Common stock returned
|
||||||||||||||||||||||
to treasury |
-
|
-
|
-300,000
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||
Accrued salary contributed by
|
||||||||||||||||||||||
officer/stockholder |
-
|
-
|
-
|
-
|
125,000
|
-
|
-
|
125,000
|
||||||||||||||
Accounting for employee
|
||||||||||||||||||||||
stock warrants |
-
|
-
|
-
|
-
|
190,000
|
-
|
-
|
190,000
|
||||||||||||||
Accounting for options issued
|
||||||||||||||||||||||
to a consultant |
-
|
-
|
-
|
-
|
19,000
|
-
|
-
|
19,000
|
||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(676,123
|
) |
(676,123
|
) | ||||||||||||
Balance at September 30, 2008
|
-
|
$
|
-
|
43,705,824
|
$
|
9,693,944
|
$
|
1,145,052
|
$
|
(1,803,507
|
) |
$
|
(10,226,665
|
) |
$
|
(1,191,176
|
) | |||||
For the Period from Inception of the Development Stage, October 1, 2004, to June 30, 2010
|
Losses
|
||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||
Additional
|
in the
|
|||||||||||||||||||||||||
Preferred Stock
|
Common Stock
|
Paid in
|
Accumulated
|
Development
|
||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Deficit
|
Stage
|
Total
|
|||||||||||||||||||
Balance at
|
||||||||||||||||||||||||||
September 30, 2008
|
_
|
_
|
43,705,824 | $ | 9,693,944 | $ | 1,145,052 | $ | (1,803,507 | ) | $ | (10,226,665 | ) | $ | (1,191,176 | ) | ||||||||||
Common stock issued
|
||||||||||||||||||||||||||
in Payment for
|
||||||||||||||||||||||||||
Shareholders'advances
|
_
|
_
|
2,581,073 | 258,108 |
_
|
_
|
_
|
258,108 | ||||||||||||||||||
Common stock issued
|
||||||||||||||||||||||||||
for professional
|
||||||||||||||||||||||||||
services
|
_
|
_
|
2,450,000 | 244,000 |
_
|
_
|
_
|
244,000 | ||||||||||||||||||
Common stock sold
|
||||||||||||||||||||||||||
to private investors
|
_
|
_
|
200,000 | 20,000 |
_
|
_
|
_
|
20,000 | ||||||||||||||||||
Common stock returned
|
||||||||||||||||||||||||||
to treasury
|
_
|
_
|
(1,300,000 | ) |
_
|
_
|
_
|
_
|
_
|
|||||||||||||||||
Shareholders' advances
|
||||||||||||||||||||||||||
previously reported as
|
||||||||||||||||||||||||||
Additional Paid in Capital
|
_
|
_
|
_
|
_
|
(10,643 | ) |
_
|
_
|
(10,643 | ) | ||||||||||||||||
Imputed salary contributed
|
||||||||||||||||||||||||||
by officer/stockholder
|
_
|
_
|
_
|
_
|
125,000 |
_
|
_
|
125,000 | ||||||||||||||||||
Accounting for employee
|
||||||||||||||||||||||||||
stock warrant
|
_
|
_
|
_
|
_
|
120,000 |
_
|
_
|
120,000 | ||||||||||||||||||
Net Loss
|
_
|
_
|
_
|
_
|
_
|
_
|
(1,276,127 | ) | (1,276,127 | ) | ||||||||||||||||
Balance at
|
||||||||||||||||||||||||||
September 30, 2009
|
_
|
_
|
47,636,897 | $ | 10,216,052 | $ | 1,379,409 | $ | (1,803,507 | ) | $ | (11,502,792 | ) | $ | (1,710,838 | ) | ||||||||||
The accompanying notes are an integral part of these financial statements.
|
For the Period from Inception of the Development Stage , October 1, 2004 to September 30, 2010
|
Losses
|
||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||
Additional
|
in the
|
|||||||||||||||||||||||||
Preferred Stock
|
Common Stock
|
Paid in
|
Accumulated
|
Development
|
||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Deficit
|
Stage
|
Total
|
|||||||||||||||||||
Balance at
|
||||||||||||||||||||||||||
September 30, 2009
|
_
|
_
|
47,636,897 | $ | 10,216,052 | $ | 1,379,409 | $ | (1,803,507 | ) | $ | (11,502,792 | ) | $ | (1,710,838 | ) | ||||||||||
Common stock issued
|
||||||||||||||||||||||||||
for professional
|
||||||||||||||||||||||||||
services
|
_
|
_
|
3,355,000 | 239,885 |
_
|
_
|
_
|
239,885 | ||||||||||||||||||
Common stock sold
|
||||||||||||||||||||||||||
to private investors
|
_
|
_
|
2,050,000 | 102,500 |
_
|
_
|
_
|
102,500 | ||||||||||||||||||
Net Loss
|
_
|
_
|
_
|
_
|
_
|
_
|
(1,141,303 | ) | (1,141,303 | ) | ||||||||||||||||
Balance at
|
||||||||||||||||||||||||||
September 30, 2010
|
_
|
_
|
53,041,897 | $ | 10,558,437 | $ | 1,379,409 | $ | (1,803,507 | ) | $ | (12,644,095 | ) | $ | (2,509,756 | ) | ||||||||||
The accompanying notes are an integral part of these financial statements.
|
Additional
|
Losses
Accumulated
in the |
|||||||||||||||||||||||||
Preferred Stock
|
Common Stock
|
Paid in
|
Accumulated
|
Development
|
||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Deficit
|
Stage
|
Total
|
|||||||||||||||||||
Balance at
|
||||||||||||||||||||||||||
September 30, 2010
|
_
|
_
|
53,041,897 | $ | 10,558,437 | $ | 1,379,409 | $ | (1,803,507 | ) | $ | (12,644,095 | ) | $ | (2,509,756 | ) | ||||||||||
Net Loss
|
_
|
_
|
_
|
_
|
_
|
_
|
(75,993 | ) | (75,993 | ) | ||||||||||||||||
Balance at
|
||||||||||||||||||||||||||
December 31, 2010
|
_
|
_
|
53,041,897 | $ | 10,558,437 | $ | 1,379,409 | $ | (1,803,507 | ) | $ | (12,720,088 | ) | $ | (2,585,749 | ) | ||||||||||
The accompanying notes are an integral part of these financial statements.
|
Inception of
|
||||||||||||
Development
|
||||||||||||
THREE MONTHS ENDED
|
Stage to
|
|||||||||||
12/31/2010
|
12/31/2009
|
12/31/2010
|
||||||||||
Cash flows used by operating activities:
|
||||||||||||
Net loss
|
$ | (75,993 | ) | $ | (258,509 | ) | $ | (12,720,088 | ) | |||
Adjustments to reconcile net loss to net cash used
|
||||||||||||
in operating activities:
|
||||||||||||
Warrants issued for forbearance agreement
|
_
|
_
|
211,098 | |||||||||
Loss on disposal of equipment
|
_
|
_
|
263,383 | |||||||||
Impairment of unproved oil and gas properties
|
686,648 | |||||||||||
Depreciation expense
|
888 |
_
|
7,585 | |||||||||
Bad Debt Expense
|
_
|
_
|
1,729 | |||||||||
Common and preferred stock issued for services
|
_
|
177,500 | 6,060,224 | |||||||||
Accounting for Warrants issued to employees and
|
||||||||||||
a consultant
|
_
|
_
|
329,000 | |||||||||
Warrants issued for services
|
_
|
_
|
376,605 | |||||||||
Common stock issued to settle accounts payable
|
_
|
_
|
251,308 | |||||||||
Common stock issued in payment of interest expense
|
_
|
_
|
196,666 | |||||||||
Common stock issued by an officer/stockholder to
|
||||||||||||
satisfy expenses of the Company and increase
|
||||||||||||
stockholder advances
|
_
|
_
|
616,750 | |||||||||
Common stock issued in settlement of legal claim
|
_
|
_
|
31,500 | |||||||||
Accrued salary contributed by stockholder/former officer
|
_
|
_
|
250,000 | |||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Accrued stock-based compensation reversal
|
||||||||||||
resulting from legal claim settlement
|
_
|
_
|
(231,000 | ) | ||||||||
Prepaid expenses and other assets
|
_
|
(2,000 | ) | (49,750 | ) | |||||||
Accounts receivable
|
_
|
_
|
(1,729 | ) | ||||||||
Accounts payable and accrued liabilities
|
51,752 | 38,366 | 1,960,686 | |||||||||
Net cash used by operating activities
|
$ | (23,353 | ) | (44,643 | ) | (1,759,385 | ) | |||||
Cash flows used in investing activities:
|
||||||||||||
Deposits paid for oil and gas property acquisitions
|
_
|
_
|
(378,000 | ) | ||||||||
Property and equipment additions
|
_
|
_
|
(425,329 | ) | ||||||||
Net cash used in investing activities
|
_
|
_
|
(803,329 | ) | ||||||||
Cash flows provided by financing activities:
|
||||||||||||
Proceeds from stockholder/officer contribution
|
_
|
_
|
10,643 | |||||||||
Repayment of note payable to a bank
|
_
|
_
|
(20,598 | ) | ||||||||
Proceeds from note payable to stockholder
|
_
|
_
|
520,000 | |||||||||
Proceeds from sale of common stock
|
_
|
55,000 | 1,360,497 | |||||||||
Proceeds from exercise of warrants
|
_
|
_
|
78,404 | |||||||||
Proceeds from stockholder/officer advances
|
26,500 |
_
|
629,663 | |||||||||
Payments of stockholders advances
|
_
|
(6,900 | ) | (6,900 | ) | |||||||
Net cash provided by financing activities
|
26,500 | 48,100 | 2,571,709 | |||||||||
Increase in cash and cash equivalents
|
3,147 | 3,457 | 8,995 | |||||||||
Cash and cash equivalents at beginning of period
|
5,848 | 6,588 |
_
|
|||||||||
Cash and cash equivalent at December 31, 2009 and 2008
|
$ | 8,995 | $ | 10,045 | $ | 8,995 | ||||||
Non-cash investing and financing activities:
|
||||||||||||
Common stock issued in payment of Shareholders' advances
|
_
|
_
|
$ | 258,107 | ||||||||
Shareholders'advances converted to notes payable from stockholder
|
_
|
_
|
$ | 119,997 | ||||||||
Shareholders' advances previously reported as paid-in capital
|
_
|
_
|
$ | (10,643 | ) | |||||||
Increase in property and equipment from recognition of asset retirement obligation
|
_
|
_
|
$ | 86,455 | ||||||||
The accompanying notes are an integral part of these financial statements.
|
TX HOLDINGS, INC.
|
A CORPORATION IN THE DEVELOPMENT STAGE
|
TX HOLDINGS, INC.
|
A CORPORATION IN THE DEVELOPMENT STAGE
|
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
|
TX HOLDINGS, INC.
|
A CORPORATION IN THE DEVELOPMENT STAGE
|
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS |
Deferred tax assets:
|
|||
Net operating losses
|
$ | 1,783,000 | |
Accrued expenses
|
257,000 | ||
Valuation allowance
|
(2,040,000 | ) | |
Total deferred tax assets
|
_
|
||
Deferred tax liabilities:
|
|||
Basis of property and equipment
|
_
|
||
Net deferred tax asset
|
$ |
_
|
|
TX HOLDINGS, INC.
|
A CORPORATION IN THE DEVELOPMENT STAGE
|
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
|
Three Months Ended Dec. 31,
|
|||||||
2010
|
2009
|
||||||
Benefit for income tax at federal
|
|||||||
statutory rate
|
$
|
26,000
|
$
|
88,000
|
|||
Change in valuation allowance
|
_
|
(28,000
|
) | ||||
Non-deductible stock-based
|
|||||||
Compensation
|
(26,000
|
) |
(60,000
|
) | |||
$
|
-
|
$
|
-
|
1.
|
Super voting rights: The preferred stock has the right to vote on any item of business submitted to the common shareholders for a vote the equivalent number of votes representing 50% of the outstanding common shares then issued by the Company.
|
2.
|
No other rights: The preferred shares have no other rights, including but not limited to no conversion rights; no dividend rights; and no liquidation priority rights.
|
TX HOLDINGS, INC.
|
A CORPORATION IN THE DEVELOPMENT STAGE
|
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
|
Number of
|
Exercise
|
Weighted
|
||||||||||
Shares
|
Price
|
Avg. Price
|
||||||||||
Warrants at September 30,2010
|
1,000,000 | $ | 0.28 | $ | 0.28 | |||||||
Issued
|
_
|
_
|
_
|
|||||||||
Expired
|
_
|
_
|
_
|
|||||||||
Warrants at December 31, 2010
|
1,000,000 | $ | 0.28 | $ | 0.28 |
Contractual
|
||||||||||||
Remaining
|
||||||||||||
Number of
|
Exercise
|
Life
|
||||||||||
Expiration Date
|
Shares
|
Price
|
(Years)
|
|||||||||
September, 2011
|
1,000,000 | 0.28 | .75 | |||||||||
1,000,000 |
TX HOLDINGS, INC.
|
A CORPORATION IN THE DEVELOPMENT STAGE
|
NOTES TO UNAUDITED CONDENSED FINANCIAL STATEMENTS
|
Exhibit 31.1
|
Section 302 Certification of Chief Executive Officer
|
Exhibit 31.2
|
Section 302 Certification of Chief Financial Officer
|
Exhibit 32.1
|
Section 906 Certification of Chief Executive Officer
|
Exhibit 32.2
|
Section 906 Certification of Chief Financial Officer
|
TX HOLDINGS, INC. | |||||
By: |
/s/ William “Buck” Shrewsbury
|
||||
William “Buck” Shrewsbury
|
|||||
Chief Executive Officer
|
/s/ William “Buck” Shrewsbury
|
Chairman of the Board of Directors and | ||||
William “Buck” Shrewsbury | Chief Executive Officer | ||||
February 10, 2011 | |||||
/s/ Richard (Rick) Novack | President and Director | ||||
Richard (Rick) Novack
|
|||||
February 10, 2011 | |||||
/s/ Jose Fuentes | Chief Financial Officer | ||||
Jose Fuentes
|
|||||
February 10, 2011 | |||||
/s/ Bobby S. Fellers | Director | ||||
Bobby S. Fellers
|
|||||
February 10, 2011 | |||||
/s/ Martin Lipper | Director | ||||
Martin Lipper
|
|||||
February 10, 2011 |