x
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QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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o
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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Delaware
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26-0250418
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(State
or other jurisdiction of
incorporation
or organization)
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(I.R.S.
Employer Identification No.)
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150 Rainville
Rd
Tarpon
Springs, FL 34689
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34689
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(Address
of principal executive offices)
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(Zip
Code)
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(Former name, former address, if
changed since last report)
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Tel:
(727) 934-9593
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(Issuer’s
telephone number)
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Large
accelerated filer o
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Non-accelerated
filer o
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Accelerated
filer o
(do not check if smaller reporting company)
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Smaller
reporting company x
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PART
I - FINANCIAL INFORMATION
|
||
Item
1.
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Unaudited
financial statements
|
|
Item
2.
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Management’s
Discussion and Analysis of Financial Condition and Results of Operation or
Plan of Operation
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|
Item
3.
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Quantitative
and Qualitative Disclosures About Market Risk
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|
Item
4T.
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Controls
and Procedures
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PART
II -OTHER INFORMATION
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||
Item
1.
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Legal
Proceedings.
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|
Item
2.
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Unregistered
Sales of Equity Securities and Use of Proceeds.
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|
Item
3.
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Defaults
Upon Senior Securities.
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|
Item
4.
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Submission
of Matters to a Vote of Security Holders.
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Item
5.
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Other
Information.
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|
Item
6.
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Exhibits
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|
SIGNATURES
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Financial
Statements:
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|
Balance
Sheets June
30, 2008 (unaudited) and
December 31, 2007 (audited)
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F-1
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Statements
of Operations (unaudited)
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F-2
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Statements
of Changes in Stockholders’ Equity (unaudited)
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F-3
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Statements
of Cash Flows (unaudited)
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F-4
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Notes
to Financial Statements (unaudited)
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F-5
through F-11
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MagneGas
Corporation
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||||||||
(A
Development Stage Enterprise)
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||||||||
BALANCE
SHEET
|
||||||||
June
30,
2008
(unaudited)
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December
31, 2007
(audited)
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|||||||
ASSETS
|
||||||||
Current
Assets:
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||||||||
Cash
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$
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18,005
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$
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76,232
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||||
Accounts
Receivable
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2,649
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|||||||
Inventory
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1,232
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|||||||
Prepaid
Expenses
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2,000
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2,000
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||||||
Total
current assets
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23,886
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78,232
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||||||
Equipment,
net of accumulated depreciation of $0 and $173
respectively
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-
|
5,027
|
||||||
Intangible
license, net of amortization of $2,778 and $0
respectively
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97,222
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-
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||||||
TOTAL
ASSETS
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$
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121,108
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$
|
83,259
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||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||
CURRENT
LIABILITIES
|
||||||||
Accounts
Payable
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$
|
38,792
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$
|
-
|
||||
Accrued Expense
|
6,064
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5,630
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||||||
Advances from Related Party
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10,000
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10,000
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||||||
Note
Payable, Related Party
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30,510
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-
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||||||
TOTAL
CURRENT LIABILITIES
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$
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85,366
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$
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15,630
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||||
STOCKHOLDERS’
EQUITY
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||||||||
Preferred
Stock - Par value $0.001;
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||||||||
Authorized: 10,000,000
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||||||||
2,000 issued and outstanding
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$
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2
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$
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2
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||||
Common
Stock - Par value $0.001;
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||||||||
Authorized: 100,000,000
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||||||||
Issued and Outstanding: 67,996,500 and 67,639,500 at June 30,
2008
and
December 31, 2007, respectively
|
67,997
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67,640
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||||||
Additional
Paid-In Capital
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779,101
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422,458
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||||||
Prepaid
Consulting Services Paid with Common Stock
|
(98,333
|
)
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||||||
Accumulated
Deficit during development stage
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(713,025
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)
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(422,471
|
)
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||||
Total
Stockholders’ Equity
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35,742
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$
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67,629
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|||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
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$
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121,108
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$
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83,259
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||||
MagneGas
Corporation.
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|||||||||||||||||||
(A
Development Stage Enterprise)
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|||||||||||||||||||
STATEMENT
OF OPERATIONS
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|||||||||||||||||||
For
the three and six months ended June 30, 2008 and
2007
|
|||||||||||||||||||
And
for the period December 9, 2005 (date of inception) to June 30,
2008
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|||||||||||||||||||
(unaudited)
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|||||||||||||||||||
Three
Months Ended
June
30,
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Six
Months Ended
June
30,
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Inception
Date to
June
30,
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|||||||||||||||||
2008
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2007
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2008
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2007
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2008
|
|||||||||||||||
REVENUE
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$
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7,297
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$
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-
|
$
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8,079
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$
|
-
|
$
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8,079
|
|||||||||
COST
OF SERVICES
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7,319
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-
|
8,044
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-
|
8,044
|
||||||||||||||
GROSS
(LOSS) OR PROFIT
|
(22
|
)
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-
|
35
|
-
|
35
|
|||||||||||||
GENERAL
AND ADMINISTRATIVE EXPENSES
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66,947
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256,937
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290,589
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257,687
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713,060
|
||||||||||||||
NET
LOSS
|
$
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(66,969
|
)
|
$
|
(256,937
|
)
|
$
|
(290,554
|
)
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$
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(257,687
|
)
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$
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(713,025
|
)
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||||
Loss
per share, basic and diluted
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$
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(0.00
|
)
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$
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(0.01
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)
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$
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(0.00
|
)
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$
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(0.01
|
)
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$
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(0.02
|
)
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||||
Basic
and diluted weighted average number of common shares
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67,921,423
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37,976,501
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67,841,038
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19,038,249
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31,722,216
|
||||||||||||||
MagneGas
Corporation
|
|||||||||||||||||||||||||||
(A
Development Stage Enterprise)
|
|||||||||||||||||||||||||||
STATEMENT
OF CHANGES IN STOCKHOLDERS’ EQUITY
|
|||||||||||||||||||||||||||
For
the six months ended June 30, 2008 and for each of the years
from
December
9, 2005 (date of inception) to June 30, 2008
|
|||||||||||||||||||||||||||
Preferred
|
Common
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Additional
Paid in
|
Prepaid
Consulting Services Paid with Common
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Accumulated
Deficit During Development
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Total
|
||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
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Capital
|
Stock
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Stage
|
Equity
|
||||||||||||||||||||
Stock
issued on acceptance of incorporation expenses, December 9,
2005
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100,000
|
$
|
100
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$
|
100
|
||||||||||||||||||||||
Net
loss
|
(400
|
)
|
(400
|
)
|
|||||||||||||||||||||||
Balance
at December 31, 2005
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-
|
-
|
100,000
|
100
|
-
|
(400
|
)
|
(300
|
)
|
||||||||||||||||||
Net
loss
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(1,450
|
)
|
(1,450
|
)
|
|||||||||||||||||||||||
Balance
at December 31, 2006
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-
|
-
|
100,000
|
100
|
-
|
(1,850
|
)
|
(1,750
|
)
|
||||||||||||||||||
Acquisition
of controlling interest, payment of liabilities
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2,500
|
2,500
|
|||||||||||||||||||||||||
Recapitalization:
Issuance
of preferred stock to founders, valued at par, April 2,
2007
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2,000
|
2
|
(2
|
)
|
-
|
||||||||||||||||||||||
Recapitalization:
Issuance
of common stock to founders, valued at par, May 12,
2007
|
67,052,000
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67,052
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(67,052
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)
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-
|
||||||||||||||||||||||
Issuance
of stock for services, valued at $1 per share, May 12,
2007
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245,000
|
245
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244,755
|
245,000
|
|||||||||||||||||||||||
Stock
issued for cash:
|
|||||||||||||||||||||||||||
June 12, 2007; $1 per share
|
30,000
|
30
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29,970
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30,000
|
|||||||||||||||||||||||
August
28, 2007; $1 per share
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13,000
|
13
|
12,987
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13,000
|
|||||||||||||||||||||||
September 17,2007; $1 per share
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54,000
|
54
|
53,946
|
54,000
|
|||||||||||||||||||||||
October
11, 2007; $1 per share
|
60,500
|
61
|
60,439
|
60,500
|
|||||||||||||||||||||||
Issuance
of stock for services, valued at $1 per share, October 11,
2007
|
85,000
|
85
|
84,915
|
85,000
|
|||||||||||||||||||||||
Net
loss, through December 31, 2007
|
(420,621
|
)
|
(420,621
|
)
|
|||||||||||||||||||||||
Balance
at December 31, 2007
|
2,000
|
$
|
2
|
67,639,500
|
$
|
67,640
|
$
|
422,458
|
-
|
$
|
(422,471
|
)
|
$
|
67,629
|
|||||||||||||
Issuance
of stock for license, valued at $1 per share, February 15, 2008
(unaudited)
|
100,000
|
100
|
99,900
|
100,000
|
|||||||||||||||||||||||
Issuance
of stock for services, valued at $1 per share, February 15, 2008
(unaudited)
|
145,000
|
145
|
144,855
|
145,000
|
|||||||||||||||||||||||
Issuance
of stock in execution of consulting agreement, valued at $1 per share, May
31, 2008 (unaudited)
|
100,000
|
100
|
99,900
|
(100,000
|
)
|
-
|
|||||||||||||||||||||
Amortization
of prepaid consulting services paid with common stock, June 30,
2008 (unaudited)
|
1,667
|
1,667
|
|||||||||||||||||||||||||
Stock
issued for cash:
|
|||||||||||||||||||||||||||
May
31, 2008; $1 per share (unaudited)
|
12,000
|
12
|
11,988
|
12,000
|
|||||||||||||||||||||||
Net
loss, through June 30, 2008 (unaudited)
|
(290,554
|
)
|
(290,554
|
)
|
|||||||||||||||||||||||
Balance
at June 30, 2008 (unaudited)
|
2,000
|
$
|
2
|
67,996,500
|
$
|
67,997
|
$
|
779,101
|
$
|
(99,333)
|
$
|
(713,025
|
)
|
$
|
35,472
|
||||||||||||
MagneGas
Corporation
|
||||||||||||
(A
Development Stage Enterprise)
|
||||||||||||
STATEMENTS
OF CASH FLOWS
|
||||||||||||
For
the six months ended June 30, 2008 and 2007,
|
||||||||||||
And
for the period December 9, 2005 (date of inception) to June 30,
2008
|
||||||||||||
(unaudited)
|
||||||||||||
Six
Months Ended
June
30,
|
Inception
Date to
June
30,
|
|||||||||||
2008
|
2007
|
2008
|
||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||
Net
loss
|
$
|
(290,554
|
)
|
$
|
(257,687
|
)
|
$
|
(713,025
|
)
|
|||
Adjustments
to reconcile net loss to cash used in operating
activities:
|
||||||||||||
Stock
compensation
|
146,667
|
245,000
|
476,767
|
|||||||||
Depreciation
and Amortization
|
3,298
|
-
|
3,471
|
|||||||||
Loss
on disposal of equipment
|
2,757
|
2,757
|
||||||||||
Changes
in operating assets:
|
||||||||||||
Increase
in Accounts Receivable
|
(2,649
|
)
|
(2,649
|
)
|
||||||||
Increase in
Inventory
|
(1,232
|
)
|
(1,232
|
)
|
||||||||
Increase in
Prepaid Expenses
|
-
|
(2,000
|
)
|
|||||||||
Increase
in Accounts Payable
|
38,792
|
38,792
|
||||||||||
Increase in
Accrued Expenses
|
434
|
4,250
|
6064
|
|||||||||
Total
adjustments to net loss
|
188,067
|
249,250
|
521,970
|
|||||||||
Net
cash (used in) operating activities
|
(102,487
|
)
|
(8,437
|
)
|
(191,055
|
)
|
||||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||
Acquisition
of reporting entity
|
-
|
-
|
(5,200
|
)
|
||||||||
Gross proceeds from sale of equipment
|
1,750
|
1,750
|
||||||||||
Net
cash flows (used in) investing activities
|
1,750
|
-
|
(3,450
|
)
|
||||||||
CASH FLOWS FROM FINANCING
ACTIVITIES
|
||||||||||||
Advances
from Related Party
|
-
|
10,000
|
||||||||||
Proceeds
from Note Payable to Related Party
|
30,000
|
-
|
30,000
|
|||||||||
Accrued
interest on note payable from related party
|
510
|
510
|
||||||||||
Capital
contribution; liability payment at acquisition
|
-
|
2,500
|
2,500
|
|||||||||
Proceeds
from issuance of common stock
|
12,000
|
30,000
|
169,500
|
|||||||||
Net
cash flows provided by investing activities
|
42,510
|
32,500
|
212,510
|
|||||||||
Net
increase in cash
|
(58,227
|
)
|
24,063
|
18,005
|
||||||||
Cash
- beginning balance
|
76,232
|
-
|
||||||||||
CASH
BALANCE - END OF PERIOD
|
$
|
18,005
|
$
|
24,063
|
$
|
18,005
|
||||||
Supplemental
disclosure of cash flow information and non cash investing and financing
activities:
|
||||||||||||
Interest
paid
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Taxes
paid
|
$
|
-
|
$
|
-
|
$
|
-
|
|
June
30,
2008
|
December
31, 2007
|
||||||
Equipment
|
$
|
0
|
$
|
5,200
|
||||
Less accumulated depreciation
|
0
|
173
|
||||||
Property
and equipment, net
|
$
|
0
|
$
|
5,027
|
(a)
|
Reports
on Form 8-K and Form 8K-A - 8K Change in Auditor,
etc.
|
|
None
|
||
(b)
|
Exhibits
|
|
Exhibit Number
|
Exhibit Title
|
|
3.1
|
Certificate
of Incorporation*
|
|
3.2
|
By-Laws
*
|
|
10.1
|
Consulting Agreement with
Dr. Santilli
|
|
31.1
|
Certification
of Dr. Ruggero Santilli pursuant to 18 U.S.C. Section 1350 as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
|
31.2
|
Certification
of Luisa Ingargiola, pursuant to 18 U.S.C. Section 1350 as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
|
32.1
|
Certification
of Dr. Rugerro Maria Santilli pursuant to 18 U.S.C. Section
1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
|
32.2
|
Certification
of Luisa Ingargiola, pursuant to 18 U.S.C. Section 1350 as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
|
*Incorporated
by reference to Exhibit 3.2 to our registration statement on Form 10-SB
filed on April 3, 2006 (File no: 000-51883)
|
MagneGas
Corporation
|
|
By:
|
/s/Dr. Ruggero Maria Santilli
|
Dr. Ruggero Maria Santilli
Chief
Executive Officer
|
Dated:
|
August
13, 2008
|