FLORIDA
|
65-1139235
|
(State
or other jurisdiction of incorporation
|
(IRS
Employer Identification No.)
|
or
organization)
|
PART
I. FINANCIAL INFORMATION
|
Item
1. Financial Statements and Condensed Notes - Quarter Ended March
31,
2007
|
Item
2. Management's Discussion and Analysis or Plan of Operation
|
Item
3. Controls and Procedures
|
PART
II. OTHER INFORMATION
|
Item
1. Legal Proceedings
|
Item
2. Unregistered Sales of Equity Securities and Use of Proceeds
|
Item
3. Default Upon Senior Securities
|
Item
4. Submission of Matters to a Vote of Security Holders
|
Item
5. Other Information
|
Item
6. Exhibits and Reports on Form 8-K
|
Signatures
|
PAGE
|
1
|
CONDENSED
BALANCE SHEET AS OF MARCH 31, 2007 (UNAUDITED)
|
PAGE
|
2
|
CONDENSED
STATEMENTS OF OPERATIONS FOR THE THREE MONTHS ENDED MARCH 31,
2007 AND
2006 AND FOR THE PERIOD FROM MAY 28, 2003 (INCEPTION) TO MARCH
31, 2007
(UNAUDITED)
|
PAGES
|
3
-
4
|
CONDENSED
STATEMENT OF STOCKHOLDERS’ EQUITY FOR THE PERIOD FROM MAY 28, 2003
(INCEPTION) TO MARCH 31, 2007 (UNAUDITED)
|
PAGES
|
5
-
6
|
CONDENSED
STATEMENTS OF CASH FLOWS FOR THE THREE MONTHS ENDED MARCH 31,
2007 AND
2006 AND FOR THE PERIOD FROM MAY 28, 2003 (INCEPTION) TO MARCH
31, 2007
(UNAUDITED)
|
PAGES
|
7
-
10
|
NOTES
TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
|
ASSETS
|
CURRENT
ASSETS
|
|||||||
Accounts
receivable, net
|
$
|
4,790
|
|||||
INVESTMENT
IN OIL AND GAS LEASES - NET
|
263,255
|
||||||
TOTAL
ASSETS
|
$
|
268,045
|
|||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
|||||||
CURRENT
LIABILITIES
|
|||||||
Accounts
payable and accrued expenses
|
$
|
73,255
|
|||||
Loans
payable - related party
|
140,504
|
||||||
Total
Current Liabilities
|
213,759
|
||||||
STOCKHOLDERS’
EQUITY
|
|||||||
Preferred
stock, $0.0001 par value, 20,000,000 shares authorized,
none issued and outstanding
|
-
|
||||||
Common
stock, $0.0001 par value, 100,000,000 shares authorized,
31,097,500 shares issued and outstanding
|
3,110
|
||||||
Additional
paid-in capital
|
459,016
|
||||||
Accumulated
deficit during development stage
|
(407,840
|
)
|
|||||
Total
Stockholders’ Equity
|
54,286
|
||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
268,045
|
For
the Three Months Ended March 31, 2007
|
For
the Three Months Ended March 31, 2006
|
For
the Period from
May
28, 2003 (Inception) To March 31, 2007
|
||||||||
REVENUE
|
$
|
4,790
|
-
|
$
|
24,035
|
|||||
OPERATING
EXPENSES
|
||||||||||
General
and administrative
|
7,313
|
-
|
35,448
|
|||||||
Professional
fees
|
17,966
|
4,995
|
88,903
|
|||||||
Amortization
|
3,344
|
-
|
18,076
|
|||||||
Total
Operating Expenses
|
28,623
|
4,995
|
142,427
|
|||||||
LOSS
FROM CONTINUING OPERATIONS
|
(23,833
|
)
|
(4,995
|
)
|
(118,392
|
)
|
||||
OTHER
INCOME (EXPENSE)
|
||||||||||
Interest
income
|
-
|
-
|
2,789
|
|||||||
Interest
expense
|
(2,766
|
)
|
(969
|
)
|
(11,068
|
)
|
||||
Total
Other (Expense)
|
(2,766
|
)
|
(969
|
)
|
(8,279
|
)
|
||||
LOSS
BEFORE DISCONTINUED OPERATIONS
|
(26,599
|
)
|
(5,964
|
)
|
(126,671
|
)
|
||||
LOSS
FROM DISCONTINUED OPERATIONS
|
-
|
(70,500
|
)
|
(4,026,761
|
)
|
|||||
LOSS
BEFORE PROVISION FOR INCOME TAXES
|
(26,599
|
)
|
(76,464
|
)
|
(4,153,432
|
)
|
||||
Provision
for Income Taxes
|
-
|
-
|
-
|
|||||||
NET
LOSS
|
$
|
(26,599
|
)
|
$
|
(76,464
|
)
|
$
|
(4,153,432
|
)
|
|
LOSS
PER COMMON SHARE - BASIC AND DILUTED
|
||||||||||
Continuing
operations
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Discontinued
operations
|
-
|
-
|
(.14
|
)
|
||||||
Net
loss per share - basic and diluted
|
$
|
-
|
$
|
-
|
$
|
(.14
|
)
|
|||
Weighted
average number of shares outstanding during the period - basic
and
diluted
|
31,097,500
|
33,175,009
|
29,283,896
|
Preferred
Stock
|
Common
Stock
|
Additional
Paid-In
|
Accumulated
Deficit During Development
|
|||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Stage
|
Total
|
||||||||||||||||
Common
stock issued to founders for cash ($0.10 per share)
|
-
|
$
|
-
|
2,500
|
$
|
1
|
$
|
249
|
$
|
-
|
$
|
250
|
||||||||||
Common
stock issued for license ($0.10 per share)
|
-
|
-
|
16,500,000
|
1,650
|
1,648,350
|
-
|
1,650,000
|
|||||||||||||||
Common
stock issued to officer as compensation ($0.10 per share)
|
-
|
-
|
7,125,000
|
713
|
711,787
|
-
|
712,500
|
|||||||||||||||
Common
stock issued for cash ($0.10 per share)
|
-
|
-
|
800,000
|
80
|
79,920
|
-
|
80,000
|
|||||||||||||||
Common
stock issued for cash ($0.45 per share)
|
-
|
-
|
277,778
|
28
|
124,972
|
-
|
125,000
|
|||||||||||||||
Common
stock issued to consultant for services ($0.10 per share)
|
-
|
-
|
8,200,000
|
820
|
819,180
|
-
|
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
|
-
|
-
|
32,905,278
|
3,292
|
3,384,458
|
(1,737,805
|
)
|
1,649,945
|
Preferred
Stock
|
Common
Stock
|
Additional
Paid-In
|
Accumulated
Deficit During Development
|
|||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Stage
|
Total
|
||||||||||||||||
Common
stock issued for cash ($0.45 per share)
|
-
|
-
|
672,231
|
66
|
302,437
|
-
|
302,503
|
|||||||||||||||
Net
loss, 2004
|
-
|
-
|
-
|
-
|
-
|
(551,203
|
)
|
(551,203
|
)
|
|||||||||||||
Balance,
December 31, 2004
|
-
|
-
|
33,577,509
|
3,358
|
3,686,895
|
(2,289,008
|
)
|
1,401,245
|
||||||||||||||
Common
stock cancelled related to license rights
($0.03 per share)
|
-
|
-
|
(16,500,000
|
)
|
(1,650
|
)
|
(493,350
|
)
|
-
|
(495,000
|
)
|
|||||||||||
Common
stock issued to officer for services
($0.03 per share)
|
-
|
-
|
5,000,000
|
500
|
149,500
|
-
|
150,000
|
|||||||||||||||
Shares
issued in reverse merger
|
-
|
-
|
11,097,500
|
1,110
|
(1,110
|
)
|
-
|
-
|
||||||||||||||
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
|
-
|
-
|
33,175,009
|
3,318
|
3,497,173
|
(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
|
-
|
-
|
(22,077,509
|
)
|
(2,208
|
)
|
(3,216,157
|
)
|
3,745,592
|
527,227
|
||||||||||||
Common
stock issued to purchase investment in oil and gas leases
|
-
|
-
|
20,000,000
|
2,000
|
163,000
|
-
|
165,000
|
|||||||||||||||
Net
loss, 2006
|
-
|
-
|
-
|
-
|
-
|
(140,836
|
)
|
(140,836
|
||||||||||||||
Balance,
December 31, 2006
|
-
|
-
|
31,097,500
|
3,110
|
456,016
|
(381,241
|
)
|
77,885
|
||||||||||||||
In-kind
contribution
|
-
|
-
|
-
|
-
|
3,000
|
-
|
3,000
|
|||||||||||||||
Net
loss during the three months ended March 31, 2007
|
-
|
-
|
-
|
-
|
-
|
(26,599
|
)
|
(26,599
|
)
|
|||||||||||||
BALANCE,
MARCH 31, 2007
|
-
|
$
|
-
|
$
|
31,097,500
|
$
|
3,110
|
$
|
459,016
|
$
|
(407,840
|
)
|
$
|
54,286
|
For
the Three Months Ended March 31, 2007
|
For
the Three Months Ended March 31, 2006
|
For
the Period from
May
28, 2003 (Inception) To March 31, 2007
|
||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||
Net
loss
|
$
|
(26,599
|
)
|
$
|
(76,464
|
)
|
$
|
(4,153,432
|
)
|
|
Net
loss from discontinued operations
|
-
|
(70,500
|
)
|
(4,026,761
|
)
|
|||||
Loss
from continuing operations
|
(26,599
|
)
|
(5,964
|
)
|
(126,671
|
)
|
||||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||||
In-kind
contribution
|
3,000
|
-
|
12,000
|
|||||||
Amortization
|
3,344
|
-
|
18,076
|
|||||||
Changes
in operating assets and liabilities:
|
||||||||||
(Increase)
decrease in accounts receivable
|
3,053
|
-
|
(4,790
|
)
|
||||||
Increase
(decrease) in accounts payable and accrued expenses
|
(37,386
|
)
|
(5,557
|
)
|
73,255
|
|||||
Cash
flows from operating activities in continuing operations
|
(54,588
|
)
|
(11,521
|
)
|
(28,130
|
)
|
||||
Cash
flows from operating activities in discontinued operations
|
-
|
(2,277
|
)
|
(1,034,023
|
)
|
|||||
Net
Cash Provided By (Used In) Operating Activities
|
(54,588
|
)
|
(13,798
|
)
|
(1,062,153
|
)
|
||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||
Purchase
of property and equipment
|
-
|
-
|
(116,331
|
)
|
||||||
Cash
flows from investing activities in continuing operations
|
-
|
-
|
(116,331
|
)
|
||||||
Cash
flows from investing activities in discontinued operations
|
-
|
-
|
-
|
|||||||
Net
Cash Used In Investing Activities
|
-
|
-
|
(116,331
|
)
|
||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||
Repayment
of stockholder’s loans
|
-
|
-
|
(609
|
)
|
||||||
Loans
payable - related party
|
54,588
|
-
|
141,113
|
|||||||
Cash
flows from financing activities in continuing operations
|
54,588
|
140,504
|
||||||||
Cash
flows from financing activities in discontinued operations
|
-
|
12,100
|
1,037,980
|
|||||||
Net
Cash Provided By Financing Activities
|
54,588
|
12,100
|
1,178,484
|
|||||||
NET
(DECREASE) IN CASH
|
-
|
(1,698
|
)
|
-
|
||||||
CASH
AND CASH EQUIVALENTS AT BEGINNING OF PERIOD
|
-
|
1,698
|
-
|
|||||||
CASH
AND CASH EQUIVALENTS AT END OF PERIOD
|
$
|
-
|
$
|
-
|
$
|
-
|
Cash
paid for income taxes
|
$
|
-
|
$
|
456
|
$
|
1,368
|
||||
Cash
paid for interest
|
$
|
-
|
$
|
-
|
$
|
-
|