CHASE PACKAGING CORP - Annual Report: 2010 (Form 10-K)

Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-K

 

x

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the fiscal year ended December 31, 2010

 

o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from                  to                   .

 

Commission File Number 0-21609

 

CHASE PACKAGING CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

Registrant’s telephone number, including area code:  (732) 741.1500

 

Securities registered pursuant to Section 12(b) of the Act:  None

 

Securities registered pursuant to Section 12(g) of the Act:  Common Stock, par value $.10 per share

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes o  No x

 

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes o  No x

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  x  No o

 

Indicate by check whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes o  No o

 

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (229.405) is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.  x

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes x  No o

 

The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold as of the last business day of the Registrant’s most recently completed second fiscal quarter was $479,919.

 

Number of shares of common stock outstanding as of March 30, 2011:  15,536,275

 

Documents incorporated by reference

 

Listed below are documents, parts of which are incorporated herein by reference, and the part of this report into which the document is incorporated:

 

Proxy statement for the 2011 annual meeting of shareholders — Part III

 

 

Table of Contents

 

PART I

 

ITEM 1.

BUSINESS.

 

General

 

Chase Packaging Corporation (“Chase,” the “Company,” “we,” or “us”) is a Texas corporation which, prior to 1998, was engaged in the specialty packaging business, primarily as a supplier of packaging products to the agricultural industry.  During 1997, the Company commenced an orderly liquidation of its assets (described below) which was completed in 1997.  At present, management of the Company is seeking to secure a suitable merger partner wishing to go public or to acquire private companies to create investment value for the Company.  For purposes of Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), the Company is considered a shell company.

 

History

 

Prior Business Operations

 

The Company was established in July of 1993 as a wholly-owned subsidiary of TGC Industries, Inc.  On July 30, 1993, the Company purchased certain assets of Union Camp Corporation’s packaging division for a purchase price of approximately $6.14 million.  The assets purchased included substantially all of the business of weaving and constructing Saxolin® paper mesh and polypropylene plastic mesh bagging material for agricultural and industrial applications and substantially all of the properties related to Union Camp’s packaging division. The properties acquired by Chase consisted of Union Camp’s plant facilities located in Portland, Oregon, and Idaho Falls, Idaho, and all machinery, equipment, and inventories connected with these facilities.

 

The Company experienced losses from 1994 through 1997, and in 1997 the Company’s secured lender decided not to renew the Company’s operating line of credit.  The Company’s Board of Directors therefore determined that it was in the best interest of the Company and all of its creditors to liquidate in an orderly fashion.

 

Effective July 21, 1997, the Company sold its operations at Idaho Falls, Idaho, to Lockwood Packing Corporation (“Lockwood”) as a going concern.  The assets sold included substantially all of the Company’s equipment, furniture, fixtures, and other assets located in the Idaho Falls, Idaho, facility for a total of $75,000.  In addition, the Company sold inventory from the Idaho Falls operation to Lockwood for $255,000.  The proceeds from these sales were used to reduce the Company’s loan balance with its lender.

 

On July 25, 1997, the Company notified its creditors by mail that the Company would begin an orderly liquidation of all of its remaining assets, outside of a formal bankruptcy or receivership proceeding, in a manner intended to maximize the asset values. The Company retained the firm of Edward Hostmann, Inc. to assist the Company in such liquidation which was completed during 1997.

 

Post-Liquidation Operations

 

Since 1999, the Board of Directors has devoted its efforts to establishing a new business or engaging in a merger or other reorganization transaction and, accordingly, the Company is being treated as a development stage company in accordance with Statement of Financial Accounting Standards No. 7 effective January 1, 1999.

 

The Company closed a private placement of 13,334 units (the “Units”) on September 7, 2007.  Each Unit was sold for $150 and consisted of:  one share of Series A 10% Convertible Preferred Stock ($100 stated value) convertible into 1,000 shares of the Company’s common stock (the “common stock”); 500 shares of common stock; and 500 five-year warrants, each warrant exercisable for one share of common stock at $0.15 per share.  Gross proceeds from the offering were $2,000,100, expenses of the offering were approximately $38,000, and net proceeds were approximately $1,962,000.

 

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ITEM 1A.

RISK FACTORS.

 

The expenses related to identifying a target business and to complete a business combination will increase our losses.

 

Until presented with a specific opportunity for a business combination, we will be unable to ascertain with any degree of certainty the time and costs required to select and evaluate a target business and to structure and complete the business combination.  Any costs incurred in connection with the identification and evaluation of a prospective target business with which a business combination is not ultimately completed will result in a loss to us and reduce the amount of capital otherwise available to complete a business combination and thereafter operate the acquired business.  We cannot provide assurance that we will be successful in identifying a target business and completing a business combination on terms favorable to our shareholders, if at all.

 

The tax treatment of a potential business combination is not clear.

 

We will endeavor to structure a business combination so as to achieve the most favorable tax treatment to us and to the target business and the shareholders of both companies.  We cannot provide assurance that the Internal Revenue Service or appropriate state tax authorities will agree with our tax treatment of the business combination.

 

We have limited ability to evaluate management’s target business.  We cannot anticipate what role, if any, our management will play in a combined business and whether our management has the necessary experience to manage the combined business.  We do not know if we will be able to recruit more management if necessary.

 

Although we intend to carefully scrutinize the management of a prospective target business before effecting a business combination, we cannot assure you that our assessment of the target’s management will prove to be correct.  In addition, we cannot assure you that the target’s future management will have the necessary skills, qualifications, or abilities to manage a public company.  Furthermore, the future role of our officers and directors, if any, in the target business cannot presently be stated with any certainty.  While it is possible that one or more of our officers and directors will remain associated in some capacity following a business combination, it is uncertain whether all of them will devote their full efforts to our affairs after a business combination.  Moreover, we cannot assure you that our officers and directors will have significant experience or knowledge relating to the operations of the particular target business.

 

We may seek to recruit additional management personnel to supplement the incumbent management of the target business.  We cannot assure you, however, that we will be able to recruit additional managers who have the requisite skills, knowledge, or experience necessary to enhance the incumbent management and successfully operate the target business.

 

In our search for an appropriate combination partner, we will have to compete with other entities with more experience and greater resources; after a successful business combination we will have to face the competitors of the operating company we combine with.

 

We may encounter intense competition from other entities seeking to combine with a privately held operating company.  Many of these entities, including financial consulting companies and venture capital firms, have longer operating histories and have extensive experience in identifying and effecting business combinations.  Many of these competitors also possess significantly greater financial, technical, and other resources than we do.  We cannot assure you that we will be able to effectively compete with these entities. Consequently, we may acquire a company with less favorable prospects then we would otherwise prefer, thus making our long-term prospects for success less likely.

 

If we effect a business combination, we will become subject to competition from the competitors of the acquired business.  In particular, industries that experience rapid growth frequently attract larger numbers of competitors, including competitors with greater financial, marketing, technical, and other resources than our resources.  We cannot ascertain the level of competition we will face if we effect a business combination, and we cannot assure you that we will be able to compete successfully with these competitors.

 

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The Pink Sheets are characterized by high volatility which may negatively affect our stock price.

 

Our common stock is quoted on the Pink Sheets under the symbol “CPKA.”  The Pink Sheets, and the price of our common stock, are characterized by high volatility.  We cannot guarantee any market for our shares of common stock and cannot guarantee that any stable market for our shares of common stock will develop or be sustained.  We cannot predict the effect, if any, that our business activities or a business combination might have on the market price.

 

ITEM 1B.

UNRESOLVED STAFF COMMENTS.

 

None.

 

ITEM 2.

PROPERTIES.

 

The Company neither rents nor owns any properties.  The Company utilizes the office space and equipment of its management at no cost.  Management estimates such amounts to be immaterial.  The Company currently has no policy with respect to investment or interests in real estate, real estate mortgages, or securities of, or interests in, persons primarily engaged in real estate activities.

 

ITEM 3.

LEGAL PROCEEDINGS.

 

None.

 

ITEM 4.

RESERVED.

 

PART II

 

ITEM 5.

MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS, AND ISSUER PURCHASES OF EQUITY SECURITIES.

 

The Company’s common stock trades in the Pink Sheets under the symbol “CPKA.”  American Stock Transfer and Trust Company has determined that there were approximately 270 holders of record on December 31, 2010.  Trading volume in the Company’s securities has been nominal.  The last reported high and low prices on December 31, 2010 were $0.08 and $0.08, respectively, and the last trade was $0.08.

 

High and low closing stock prices for the Company’s common stock in the years ended December 31, 2010 and December 31, 2009 are displayed in the following table:

 

		2010 Market Price						2009 Market Price
Quarter Ended		High			Low			High			Low
March 31		$	0.14		$	0.14		$	0.10		$	0.10
June 30		$	0.05		$	0.05		$	0.10		$	0.10
September 30		$	0.15		$	0.15		$	0.25		$	0.25
December 31		$	0.08		$	0.08		$	0.24		$	0.15

 

The Company has never paid cash dividends on its shares of common stock and does not anticipate the payment of dividends on its shares of common stock in the foreseeable future.

 

ITEM 6.

SELECTED FINANCIAL DATA.

 

Not Applicable.

 

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ITEM 7.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION.

 

Results of Operations

 

During 2010, the Company had no operations and its only income was from interest income on its short-term investments which are classified as cash and cash equivalents.  General and administrative expenses were $88,113 in fiscal 2010 compared to $94,880 in fiscal 2009.  The Company had fiscal 2010 interest and other income of $829, and a net loss of ($87,284), compared with interest and other income of $2,720, and a net loss of ($92,160) for fiscal 2009.

 

Liquidity and Capital Resources

 

At December 31, 2010, the Company had cash and cash equivalents of approximately $1,582,000 consisting mostly of money market funds.  Management believes that its cash and cash equivalents are sufficient for its business activities for at least the next twelve months and for the costs of seeking an acquisition of an operating business.

 

Net cash of approximately $88,000 was used in operations during fiscal 2010, a decrease of approximately $9,000 over the $97,000 used in operations during fiscal 2009.

 

No cash flows were used or provided by investing activities for each of the periods presented.

 

Net cash of approximately $1,200 was used in financing activities during both fiscal years 2010 and 2009.

 

New Authoritative Pronouncements

 

See Note 2, “Summary of Significant Accounting Policies,” in the notes to the financial statements in Item 8 for a full description of recently issued accounting pronouncements, including the expected dates of adoption and estimated effects on results of operations and financial condition, which is incorporated herein.

 

Factors Which May Affect Future Results

 

Future earnings of the Company are dependent on interest rates earned on the Company’s invested balances and expenses incurred. The Company expects to incur significant expenses in connection with its objective of identifying a merger partner or acquiring an operating business.

 

ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

Not Applicable.

 

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ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA.

 

CHASE PACKAGING CORPORATION

FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009

 

- INDEX TO FINANCIAL STATEMENTS -

 

	Page(s)
Report of Independent Registered Public Accounting Firm	7
Financial Statements:
Balance Sheets	8
Statements of Operations	9
Statements of Shareholders’ Equity	10-11
Statements of Cash Flows	12
Notes to Financial Statements	13-18

 

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors and
Shareholders of Chase Packaging Corporation

 

We have audited the accompanying balance sheets of Chase Packaging Corporation (a development stage company) (the “Company”) as of December 31, 2010 and 2009, and the related statements of operations, shareholders’ equity, and cash flows for the years then ended and for the period from January 1, 1999 (inception), to December 31, 2010. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Chase Packaging Corporation as of December 31, 2010 and 2009, and the results of its operations and its cash flows for the years then ended and from January 1, 1999 (inception), to December 31, 2010, in conformity with accounting principles generally accepted in the United States of America.

 

/s/ ParenteBeard LLC

 

ParenteBeard LLC

 

New York, New York

 

March 31, 2011

 

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CHASE PACKAGING CORPORATION

(A Development Stage Company)

BALANCE SHEETS

DECEMBER 31, 2010 AND 2009

 

		2010			2009
- ASSETS -
CURRENT ASSETS:
Cash and cash equivalents		$	1,581,989		$	1,671,574
TOTAL ASSETS		$	1,581,989		$	1,671,574
- LIABILITIES AND SHAREHOLDERS’ EQUITY -
CURRENT LIABILITIES:
Accounts payable and accrued expenses		$	1,388		$	2,509
TOTAL CURRENT LIABILITIES		1,388			2,509
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
Preferred stock, $1.00 par value; 4,000,000 authorized: Series A 10% Convertible Preferred stock; 50,000 shares authorized; 18,775 and 17,078 shares issued and outstanding in 2010 and 2009, respectively: liquidation preference of $1,877,500 and $1,707,800 in 2010 and 2009, respectively		18,775			17,078
Common stock, $.10 par value 200,000,000 shares authorized; 15,536,275 shares issued and outstanding		1,553,628			1,553,628
Additional paid-in capital		4,077,068			4,079,945
Accumulated deficit		(3,626,121		)	(3,626,121		)
Deficit accumulated during the development stage		(442,749		)	(355,465		)
TOTAL SHAREHOLDERS’ EQUITY		1,580,601			1,669,065
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	1,581,989		$	1,671,574

 

The accompanying notes are an integral part of these financial statements.

 

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CHASE PACKAGING CORPORATION

(A Development Stage Company)

STATEMENTS OF OPERATIONS

 

		Cumulative During the Development Stage (January 1, 1999 to			For the Year Ended December 31,
		December 31, 2010			2010			2009
NET SALES		$	—		$	—		$	—
EXPENSES:
General and administrative expense		493,500			88,113			94,880
LOSS FROM OPERATIONS		(493,500		)	(88,113		)	(94,880		)
OTHER INCOME (EXPENSE)
Interest expense		(8,591		)	—			—
Interest and other income		59,342			829			2,720
TOTAL OTHER INCOME (EXPENSE)		50,751			829			2,720
LOSS BEFORE INCOME TAXES		(442,749		)	(87,284		)	(92,160		)
Provision for income taxes		—			—			—
NET LOSS		$	(442,749	)	$	(87,284	)	$	(92,160	)
BASIC AND DILUTED LOSS PER COMMON SHARE					$	(.01	)	$	(.01	)
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING — BASIC AND DILUTED					15,536,275			15,536,275

 

The accompanying notes are an integral part of these financial statements.

 

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CHASE PACKAGING CORPORATION

(A Development Stage Company)

STATEMENTS OF SHAREHOLDERS’ EQUITY

 

		Preferred Stock					Common Stock					Additional Paid- in			Common Stock			Accumulated			Deficit Accumulated During the Development
		Shares		Amount			Shares		Amount			Capital			Subscribed			Deficit			Stage			Total
Balance at January 1, 1999		—		$	—		7,002,964		$	700,296		$	2,914,207		$	—		$	(3,626,121	)	$	—		$	(11,618	)
Net loss for the year ended December 31, 1999		—		—			—		—			—			—			—			(5,510		)	(5,510		)
Balance at December 31, 1999		—		—			7,002,964		700,296			2,914,207			—			(3,626,121		)	(5,510		)	(17,128		)
Net loss for the year ended December 31, 2000		—		—			—		—			—			—			—			(891		)	(891		)
Balance at December 31, 2000		—		—			7,002,964		700,296			2,914,207			—			(3,626,121		)	(6,401		)	(18,019		)
Private placement and warrant exercise		—		—			1,624,311		162,432			(156,932		)	—			—			—			5,500
Net loss for the year ended December 31, 2001		—		—			—		—			—			—			—			(5,086		)	(5,086		)
Balance at December 31, 2001		—		—			8,627,275		862,728			2,757,275			—			(3,626,121		)	(11,487		)	(17,605		)
Stock subscriptions		—		—			—		—			—			8,000			—			—			8,000
Net loss for the year ended December 31, 2002		—		—			—		—			—			—			—			(7,082		)	(7,082		)
Balance at December 31, 2002		—		—			8,627,275		862,728			2,757,275			8,000			(3,626,121		)	(18,569		)	(16,687		)
Net loss for the year ended December 31, 2003		—		—			—		—			—			—			—			(8,221		)	(8,221		)
Balance at December 31, 2003		—		—			8,627,275		862,728			2,757,275			8,000			(3,626,121		)	(26,790		)	(24,908		)
Net income for the year ended December 31, 2004		—		—			—		—			—			—			—			1,237			1,237
Balance at December 31, 2004		—		—			8,627,275		862,728			2,757,275			8,000			(3,626,121		)	(25,553		)	(23,671		)
Net loss for the year ended December 31, 2005		—		—			—		—			—			—			—			(16,627		)	(16,627		)
Balance at December 31, 2005		—		—			8,627,275		862,728			2,757,275			8,000			(3,626,121		)	(42,180		)	(40,298		)

 

The accompanying notes are an integral part of these financial statements.

 

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CHASE PACKAGING CORPORATION

(A Development Stage Company)

STATEMENTS OF SHAREHOLDERS’ EQUITY (CONTINUED)

 

		Preferred Stock							Common Stock							Additional Paid- in					Common Stock					Accumulated					Deficit Accumulated During the Development
		Shares		Amount					Shares		Amount					Capital					Subscribed					Deficit					Stage					Total
Net loss for the year ended December 31, 2006		—		—					—		—					—					—					—					(12,707				)	(12,707				)
Balance at December 31, 2006		—		—					8,627,275		862,728					2,757,275					8,000					(3,626,121				)	(54,887				)	(53,005				)
Private placement		13,334		13,334					6,667,000		666,700					1,282,324					—					—					—					1,962,358
Prior stock subscription		68		68					34,000		3,400					6,732					(8,000				)	—					—					2,200
Convertible debt		416		416					208,000		20,800					41,184					—					—					—					62,400
Net loss for the year ended December 31, 2007		—		—					—		—					—					—					—					(32,227				)	(32,227				)
Balance at December 31, 2007		13,818		13,818					15,536,275		1,553,628					4,087,515					—					(3,626,121				)	(87,114				)	1,941,726
Preferred shares issued as Dividend		1,718		1,718					—		—					(1,718				)	—					—					—					—
Cash in lieu of stock		—		—					—		—					(3,150				)	—					—					—					(3,150				)
Net loss for the year ended December 31, 2008		—		—					—		—					—					—					—					(176,191				)	(176,191				)
Balance at December 31, 2008		15,536		15,536					15,536,275		1,553,628					4,082,647					—					(3,626,121				)	(263,305				)	1,762,385
Preferred shares issued as dividend		1,542		1,542					—		—					(1,542				)	—					—					—					—
Cash in lieu of stock		—		—					—		—					(1,160				)	—					—					—					(1,160				)
Net loss for the year ended December 31, 2009		—		—					—		—					—					—					—					(92,160				)	(92,160				)
Balance at December 31, 2009		17,078		17,078					15,536,275		1,553,628					4,079,945					—					(3,626,121				)	(355,465				)	1,669,065
Preferred shares issued as dividend		1,697		1,697					—		—					(1,697				)	—					—					—					—
Cash in lieu of stock		—		—					—		—					(1,180				)	—					—					—					(1,180				)
Net loss for the year ended December 31, 2010		—		—					—		—					—					—					—					(87,284				)	(87,284				)
Balance at December 31, 2010		18,775		$			18,775		15,536,275		$			1,553,628		$			4,077,068		$			—		$			(3,626,121	)	$			(442,749	)	$			1,580,601

 

The accompanying notes are an integral part of these financial statements.

 

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CHASE PACKAGING CORPORATION

(A Development Stage Company)

STATEMENTS OF CASH FLOWS

 

		Cumulative During the Development Stage (January 1, 1999 to			For The Year Ended December 31,
		December 31, 2010)			2010			2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss		$	(442,749	)	$	(87,284	)	$	(92,160	)
Change in assets and liabilities:
Accounts payable and accrued expenses		(13,791		)	(1,121		)	(4,845		)
Net cash used in operating activities		(456,540		)	(88,405		)	(97,005		)
CASH FLOWS FROM INVESTING ACTIVITIES		—			—			—
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from convertible debt		56,500			—			—
Proceeds from private placement/exercise of stock warrants		5,500			—			—
Capital contribution		8,000			—			—
Proceeds from private placement		1,962,358			—			—
Cash dividends paid on preferred stock		(5,490		)	(1,180		)	(1,160		)
Net cash provided by (used in) financing activities		2,026,868			(1,180		)	(1,160		)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		1,570,328			(89,585		)	(98,165		)
Cash and cash equivalents, at beginning of period		11,661			1,671,574			1,769,739
CASH AND CASH EQUIVALENTS, END OF PERIOD		$	1,581,989		$	1,581,989		$	1,671,574
SUPPLEMENTAL CASH FLOW INFORMATION:
Cash paid for:
Interest		$	—		$	—		$	—
Income taxes		$	—		$	—		$	—
Preferred stock issued as stock dividend		$	4,957		$	1,697		$	1,542
416 Private Placement Units were issued in exchange for $56,500 of convertible notes plus $5,900 of accrued interest		$	62,400		$	—		$	—
68 Private Placement Units were issued in exchange for $8,000 of stock subscriptions plus $2,200 of accrued interest		$	10,200		$	—		$	—

 

The accompanying notes are an integral part of these financial statements.

 

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