Noble Vici Group, Inc. - Annual Report: 2013 (Form 10-K)
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, 2013
[ ] 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 000-54761
GOLD UNION INC.
(Exact name of registrant as specified in its charter)
Delaware | 42-1772663 |
(State or other jurisdiction of incorporation of organization) | (I.R.S. Employer Identification No.) |
Shop 35A, Ground Floor, Hop Yick Commercial Centre Phase 1,
33 Hop Choi Street
Yuen Long, NT, Hong Kong
(Address of Principal Executive Offices)
+86 18676364411
(Registrants
telephone number, including area code)
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 $0.0001
(Title
of class)
Indicate by check mark if the registrant is a well-known
seasoned issuer, as defined in Rule 405 of the Securities Act.
[
] Yes [X] No
Indicate by check mark if the registrant is not required to
file reports pursuant to Section 13 or 15(d) of the Exchange Act.
[ ] Yes [X] No
Indicate by check mark whether the registrant (1) filed all
reports required to be filed by Section 13 or 15(d) of the Exchange Act 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.
[X] Yes
[ ] No
Indicate by check mark whether the registrant has submitted
electronically and posted on its corporate Website, 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.
[X]
Yes [ ] No
Indicate by check mark if disclosure of delinquent filers in response to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrants 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. [ ]
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.
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Large accelerated filer [ ] | Accelerated filer [ ] |
Non-accelerated filer [ ] (do not check if a smaller reporting company) |
Smaller reporting company [X] |
Indicate by checkmark whether the registrant is a shell company
(as defined in Rule 12b-2 of the Exchange Act).
Yes
[X] No [ ]
The aggregate market value of the registrants stock held by non-affiliates of the registrant as of June 28, 2013, computed by reference to the price at which such stock was last sold on the OTC Bulletin Board ($0.05 per share) on that date, was approximately $1,828,125.
The registrant had 163,134,500 shares of common stock outstanding as of March 24, 2014.
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TABLE OF CONTENTS
iii
FORWARD LOOKING STATEMENTS
This annual report contains forward-looking statements that involve risks and uncertainties. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as may, will, should, expect, plan, intend, anticipate, believe, estimate, predict, potential or continue, the negative of such terms or other comparable terminology. In evaluating these statements, you should consider various factors, including the assumptions, risks and uncertainties outlined in this annual report under Risk Factors. These factors or any of them may cause our actual results to differ materially from any forward-looking statement made in this annual report. Forward-looking statements in this annual report include, among others, statements regarding:
-
our capital needs;
-
business plans; and
-
expectations.
While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding future events, our actual results will likely vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein.
We advise the reader that these cautionary remarks expressly qualify in their entirety all forward-looking statements attributable to us or persons acting on our behalf. Important factors that you should also consider, include, but are not limited to, the factors discussed under Risk Factors in this annual report.
The forward-looking statements in this annual report are made as of the date of this annual report and we do not intend or undertake to update any of the forward-looking statements to conform these statements to actual results, except as required by applicable law, including the securities laws of the United States.
AVAILABLE INFORMATION
Gold Union Inc. files annual, quarterly and current reports with the Securities and Exchange Commission (the Commission or SEC). You may read and copy documents referred to in this Annual Report on Form 10-K that have been filed with the Commission at the Commissions Public Reference Room, 100 F Street, N.E., Washington, D.C. You may obtain information on the operation of the Public Reference Room by calling the Commission at 1-800-SEC-0330. You can also obtain copies of our Commission filings by going to the Commissions website at http://www.sec.gov.
REFERENCES
As used in this Annual Report: (i) the terms we, us, our, Gold Union and the Company mean Gold Union Inc.; (ii) SEC refers to the Securities and Exchange Commission; (iii) Securities Act refers to the United States Securities Act of 1933, as amended; (iv) Exchange Act refers to the United States Securities Exchange Act of 1934, as amended; and (v) all dollar amounts refer to United States dollars unless otherwise indicated.
PART I
ITEM 1. BUSINESS
Name, Incorporation and Principal Offices
We were incorporated under the laws of the State of Delaware on July 6, 2010 under the name Advanced Ventures Corp. and are a development stage company. Effective January 6, 2014, we effected a name change to Gold Union Inc. This name change was effective under Delaware General Corporation Law as of January 6, 2014, pursuant to a Certificate of Amendment of Certificate of Incorporation that was filed with the State of Delaware, Division of Corporations office on January 6, 2014. A copy of the Certificate of Amendment was filed as Exhibit 3.1 to our Current report on Form 8-K filed with the SEC on January 10, 2014.
Our principal office is located at Shop 35A, Ground Floor, Hop Yick Commercial Centre Phase 1, 33 Hop Choi Street, Yuen Long, NT, Hong Kong. Our telephone number is +86 18676364411
1
Overview
On July 27, 2010, we entered into an exclusive worldwide patent sale agreement (the Patent Transfer and Sales Agreement) with Ilanit Appelfeld (the Seller), in relation to a patented technology, U.S. Patent Number: 6,743,209 (the Patent), for a catheter with a integral anchoring mechanism. The patented technology has the potential to be adopted as a standard in all medical facilities, making a decisive contribution towards significantly and reliably securing a urethral catheter to the outside of a patients body in order to prevent or restrict undesirable movement or displacement of the catheter. The invention concept is flexible enough that it can be applied to humans as well as to animals, thus further increasing the marketing potential for a product based on the Patent.
Based on the Patent, we believe that this apparatus will help prevent or restrict undesirable movement or displacement of a catheter. However, until we can successfully develop a prototype and test it, we cannot currently estimate the full extent of the benefits to be gained from this apparatus.
The patent and technology were transferred to us in exchange of payment to Ilanit Appelfeld of $17,500 (seventeen thousand five hundred United States Dollars), according to the terms and conditions specified in the Patent Transfer and Sales Agreement related to U.S. Patent Number: 6,743,209.
The invention that is the subject of the Patent is for a catheter with an integral anchoring means which is secured to the outside of a human or other animal body by suturing, tying or taping to a tubular, depression-shaped anchor member that is integrally formed during manufacture with the forming of the catheter, resulting in a one-piece multipurpose combination construction unit.
We maintain our statutory registered agents office at Delaware Intercorp, Inc. 113 Barksdale Professional Center, Newark, DE, 19711 and our business office is located at Shop 35A, Ground Floor, Hop Yick Commercial Centre Phase 1, 33 Hop Choi Street, Yuen Long, NT, Hong Kong.
Our Business
We acquired the patented technology to a catheter with an integral anchoring means which is secured to the outside of a human or other animal body by suturing, tying or taping to a tubular, depression-shaped anchor member that is integrally formed during manufacture with the forming of such catheter. To be effective a catheter with integral anchoring means must be easy to use and must be cost effective. Moreover, we believe that this catheter with integral anchoring means should greatly reduce bacterial growth and infection. With the foregoing in mind, it would be greatly advantageous to provide a catheter with an integral anchoring means that overcomes these costs and housekeeping problems associated with previous anchoring means, by operating with a standard catheter.
Based on the Patent, we believe that this apparatus will significantly reduce bacterial growth and infection. However, until we can successfully develop a prototype and test it, we cannot currently estimate the full extent of the benefits to be gained from this apparatus.
Our potential device is based on attaching urethral catheters to or at the outside of a human or other animal body by suturing, tying or taping to a tubular depression-shaped anchor member that is simultaneously and integrally constructively formed with the catheter tube proper during manufacture resulting in a single one-piece solitary tapered combination construction unit with no breaks or divisions. We believe it would be more advantageous that this tubular depression-shaped anchor member of the catheter be integrally formed during manufacture with the forming of the overall catheter resulting in a one-piece urethral catheter construction unit. The former construction requires the manufacture and assembly of multiple components in order to produce an equal unit. We believe the built-in tubular depression-shaped anchor member of this catheter requires less production material than that of other patents thereby significantly reducing manufacturing costs. Also there are no individual or additional anchoring components to inspect, test, sterilize, package or distribute. We intended to develop a fully operational valid working prototype, which could then be used to develop and manufacture the actual product. However, until we can successfully develop a prototype and test it, we cannot currently estimate the full extent of the benefits to be gained from this particular apparatus.
At this time we are considering other business opportunities that may bring quicker and greater value to our stockholder. Therefore, we intend to engage in the business of trading precious metal bullion. We intend to become involved in precious metal bullion trading primarily in the Asia Pacific region. We anticipate such business to be carried on through subsidiaries, which are expected to buy gold and silver bullion from refiners and subsequently sell the bullion to anticipated customers. Therefore, effective January 6, 2014, we changed our name to Gold Union Inc. to more adequately reflect our intended business operations.
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During the second quarter of 2011 the Company raised gross proceeds of $75,000 pursuant to an effective Form S-1 Registration Statement and issued 37,500,000 post forward stock split shares of common stock that were registered pursuant to the Form S-1 Registration Statement.
Intellectual Property
On July 27, 2010, we signed a Patent Transfer and Sales Agreement with Ilanit Appelfeld, in relation to a patented technology (U.S. Patent number: 6,743,209), wherein we purchased all rights, title and interest in, a receptacle catheter with integral anchoring means. U.S. Patent Number 6,743,209 was issued on June 1, 2004 and will expire on June 6, 2022.
Employees
We currently do not have any full time or part time employees. Our Chief Executive Officer and Chief Financial Officer, Mr. Sae-Chua Supachai, is expected to work up to approximately five hours per week. If, and when, we develop our business of trading precious metal bullion, and are able to generate revenues from such intended business, we expect that Mr. Supachai will devote substantially more than five hours per week to our operations, and we may need to hire additional officers and employees for such operations.
Transfer Agent
We have engaged Nevada Agency and Transfer Company as our stock transfer agent. Nevada Agency and Transfer Company is located at 50 West Liberty Street, Reno, Nevada 89501. Their telephone number is (775) 322-0626 and their fax number is (775) 322-5623. The transfer agent is responsible for all record-keeping and administrative functions in connection with our issued and outstanding common stock.
Research and Development
We have incurred minimal research and development expenses to date and do not plan to undertake additional research and development activities during the next twelve months.
Subsidiaries
On March 27, 2012, we formed a wholly-owned subsidiary, Advanced Ventures (HK) Ltd., under the laws of the Hong Kong Special Administrative Region ("HK SAR") of the People's Republic of China ("PRC"). However, on November 1, 2013, we dissolved Advanced Ventures (HK) Ltd. which was inactive during its existence.
ITEM 1A. RISK FACTORS
As a smaller reporting company (as defined by §229.10(f)(1)), we are not required to provide the information required by this Item.
ITEM 1B. UNRESOLVED STAFF COMMENTS
Not applicable as we are not an accelerated or large accelerated filer.
ITEM 2. PROPERTIES
Our executive offices are located at Shop 35A, Ground Floor, Hop Yick Commercial Centre Phase 1, 33 Hop Choi Street, Yuen Long, NT, Hong Kong.
ITEM 3. LEGAL PROCEEDINGS
We are not a party to any pending legal proceeding. We are not aware of any pending legal proceeding to which any of our officers, directors, affiliates or any beneficial holders of 5% or more of our voting securities are adverse to us or have a material interest adverse to us.
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ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
PART II
ITEM 5. |
MARKET FOR REGISTRANTS COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES |
Market Information
Shares of our common stock are posted for trading on the OTC Bulletin Board under the symbol ANCV. Our common stock has been posted for trading since approximately July 6, 2011 with basically no trading or volume. The following table sets forth the high and low prices relating to our common stock for the periods indicated, as provided by the OTC Bulletin Board. These quotations reflect inter-dealer prices without retail mark-up, mark-down, or commissions, and may not reflect actual transactions.
QUARTER ENDED | HIGH | LOW |
December 31, 2013 | $0.05 | $0.05 |
September 30, 2013 | $0.05 | $0.05 |
June 30, 2013 | $0.05 | $0.05 |
March 31, 2013 | $0.00 | $0.00 |
December 31, 2012 | $0.05 | $0.05 |
September 30, 2012 | $0.05 | $0.05 |
June 30, 2012 | $0.05 | $0.05 |
March 31, 2012 | $0.00 | $0.00 |
Holders
As of December 31, 2013, we had 41 shareholders of record.
Dividend Policy
No dividends have been declared or paid on our common stock. We have incurred recurring losses and do not currently intend to pay any cash dividends in the foreseeable future.
Securities Authorized For Issuance Under Compensation Plans
We do not have any equity compensation plans.
Recent Sales of Unregistered Securities
On October 18, 2013, we completed a shares-for-debt private placement with 10 individuals involving the sale of an aggregate of 80,634,500 shares of our common stock at a subscription price of $0.002 per share, in settlement of an aggregate of $161,269 owed by us to the shares-for-debt purchasers.
With respect to such issuance of shares of our common stock in connection with the private placement described above, we relied on the exemption from registration under the Securities Act provided by Regulation S, based on representations and warranties provided by the purchasers of the shares in their respective subscription agreements entered into between each purchaser and us.
No Repurchases
Neither we nor any affiliated purchaser has made any purchases of our equity securities during the fourth quarter of our fiscal year ended December 31, 2013.
ITEM 6. SELECTED FINANCIAL DATA
We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.
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ITEM 7. |
MANAGEMENTS DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
The following discussion of our financial condition, changes in financial condition, plan of operations and results of operations should be read in conjunction with (i) our audited financial statements as at December 31, 2013, December 31, 2012 and for the period from July 6, 2010 inception (inception) through December 31, 2013 and (ii) the section entitled Business, included in this annual report. The discussion contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of many factors, including, but not limited to, those set forth under Risk Factors and elsewhere in this annual report.
Plan of Operations
We intended to develop a working prototype for our patented technology, however, we now intend to engage in the business of trading precious metal bullion. We intend to become involved in precious metal bullion trading primarily in the Asia Pacific region. We anticipate such business to be carried on through subsidiaries, which are expected to buy gold and silver bullion from refiners and subsequently sell the bullion to anticipated customers.
Financial Condition
During the twelve-month period following the date of this annual report, we anticipate that we will not generate any revenue. Accordingly, we will be required to obtain additional financing in order to pursue our plan of operations during and beyond the next twelve months. We believe that debt financing will not be an alternative for funding as we do not have tangible assets to secure any debt financing. We anticipate that additional funding will be in the form of equity financing from the sale of our common stock or shareholder loans. However, we do not have any financing arranged and we cannot provide investors with any assurance that we will be able to raise sufficient funding from the sale of our common stock or shareholder loans to develop a working prototype for the patented technology. In the absence of such financing, we will not be able to continue moving forward with developing a working prototype of the catheter with an integral anchoring means and our business plan will fail.
Results of Operations
The following table sets forth our results of operations from inception on July 6, 2010 through December 31, 2013 as well as for the fiscal years ended December 31, 2013 and 2012:
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July 6, 2010 | |||||||||
(inception) to | |||||||||
Fiscal year ended | Fiscal year ended | December 31, | |||||||
December 31, 2013 | December 31, 2012 | 2013 | |||||||
Revenues | $ | - | $ | - | $ | - | |||
Expenses: | |||||||||
Professional Fees | 85,592 | 87,098 | 242,461 | ||||||
Patent acquisition cost and expenses | - | - | 19,213 | ||||||
General and administrative expenses | 597 | 549 | 4,958 | ||||||
Total operating Expenses | 86,189 | 87,647 | 266,632 | ||||||
(Loss) From Operations | (86,189 | ) | (87,647 | ) | (266,632 | ) | |||
Other Income (Expense) | |||||||||
Foreign currency transaction (gain) loss | 418 | (703 | ) | (3,158 | ) | ||||
Other (income) expense, net | 418 | (703 | ) | (3,158 | ) | ||||
Loss before income tax provision | (86,607 | ) | (86,944 | ) | (263,474 | ) | |||
Income tax provision | - | - | - | ||||||
Net (Loss) | $ | (86,607 | ) | $ | (86,944 | ) | $ | (263,474 | ) |
Results of Operations for the Years Ended December 31, 2013 and 2012
During fiscal years ended December 31, 2013 and December 31, 2012, respectively, we did not generate any revenue.
During the fiscal year ended December 31, 2013, our operating expenses consisted of: (i) professional fees of $85,592 (2012: $87,098); and (ii) general and administrative expenses of $597 (2012: $549).
This resulted in a net operating loss of ($86,189) during fiscal year ended December 31, 2013 compared to a net operating loss of ($87,647) during fiscal year ended December 31, 2012.
During fiscal year ended December 31, 2013, we recorded total other expenses in the amount of $418 compared to total other income recorded during fiscal year ended December 31, 2012 in the amount of $703. The other expenses incurred during fiscal year ended December 31, 2013 consisted of $418 in foreign currency transaction loss (2012: $703 gain).
This resulted in a net loss for fiscal year ended December 31, 2013 of ($86,607) compared to a net loss for fiscal year ended December 31, 2012 of ($86,944).
The decrease in net loss of $337 during fiscal year ended December 31, 2013 compared to fiscal year ended December 31, 2013 is attributable primarily to the decrease in professional fees and increase in foreign current transaction loss.
Liquidity and Capital Resources
Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.
As of December 31, 2013, our current assets were $525 and our current liabilities were $47,430, resulting in a working capital deficit of ($46,905). As at December 31, 2013, our total assets were $525 compared to total assets of $342 as at December 31, 2012. Total assets as at December 31, 2013 consisted of $525 in cash. Our current liabilities consisted of $28,930 in accrued expenses and $18,500 in advances from stockholders.
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Stockholders deficit decreased from ($121,567) as of December 31, 2012 to ($46,905) as of December 31, 2013.
Net Cash Used in Operating Activities
We have not generated positive cash flows from operating activities. For fiscal year ended December 31, 2013, net cash flow used in operating activities was ($72,992) compared to net cash flow used in operating activities of ($88,039) for fiscal year ended December 31, 2012. Net cash flow used in operating activities during fiscal year ended December 31, 2013 consisted of a net loss of ($86,607) and accrued expenses of $13,615. Net cash flow used in operating activities during fiscal year ended December 31, 2012 consisted of a net loss of ($86,944) and accrued expenses of ($1,095).
Net Cash from Financing Activities
During fiscal year ended December 31, 2013, net cash flow provided from financing activities was $73,175 compared to net cash flow provided from financing activities of $78,390 for fiscal year ended December 31, 2012. Net cash flow provided from financing activities during fiscal year ended December 31, 2013 pertained primarily to $73,175 received as advances from stockholders. Net cash flow provided from financing activities during the fiscal year ended December 31, 2012 pertained primarily to $78,390 received as advances from stockholders.
Going Concern
We have not attained profitable operations and are dependent upon obtaining financing to pursue the development of a working prototype of our patented technology. For these reasons our auditors stated in their report on our audited financial statements for the year ended December 31, 2013 that they have substantial doubt we will be able to continue as a going concern.
Future Financings
We anticipate continuing to rely on equity sales of our common shares and shareholder loans in order to continue to fund our business operations. Issuances of additional shares will result in dilution to our existing shareholders. There is no assurance that we will achieve any additional sales of our equity securities or arrange for debt or other financing to fund our plan of operations.
Subsequent Events
Effective January 6, 2014, we effected a name change to Gold Union Inc. This name change was effective under Delaware General Corporation Law as of January 6, 2014, pursuant to a Certificate of Amendment of Certificate of Incorporation that was filed with the State of Delaware, Division of Corporations office on January 6, 2014.
On February 7, 2014, one of our directors provided us with a loan in the amount of $32,600. This loan is unsecured, non-interest bearing and due on demand. No formal written agreement regarding this loan was signed; however, it is documented in the accounting records of the Company.
Effective February 12, 2014, our Board of Directors accepted the resignations of Christino Rio as our Chief Executive Officer and a director, Benson Lim as our Chief Financial Officer and a director, Brandon Low as our Chief Operating Officer and a director, and Jareth Goh as one of our directors. On the same date, our Board of Directors accepted the consent to act of Sae-Chua Supachai and appointed Mr. Supachai as our Chief Executive Officer, Chief Financial Officer and a director.
Off-Balance Sheet Arrangements
We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.
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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information required under this item.
ITEM 8. FINANCIAL STATEMENTS
8
Gold Union Inc.
(Formerly Advanced Ventures Corp.)
(A
Development Stage Company)
December 31, 2013 and 2012
Index to the Financial Statements
F - 1
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Stockholders of
Gold Union
Inc
(Formerly Advanced Ventures Corp)
(A Development Stage Company)
We have audited the accompanying balance sheets of Gold Union Inc, (Formerly Advanced Ventures Corp.) (the Company) as of December 31, 2013 and 2012 and the related statements of operations, stockholders equity (deficit) and cash flows for the years then ended and for the period from July 6, 2010 (inception) through December 31, 2013. These financial statements are the responsibility of the Companys management. Our responsibility is to express an opinion on these financial statements based on our audits.
The Companys financial statements for the period from July 6, 2010 (inception) through December 31, 2011 were audited by other auditors whose report dated February 28, 2012 included an explanatory paragraph as to an uncertainty with respect to the Companys ability to continue as a going concern. The other auditors report had been furnished to us, and our opinion, insofar as it relates to amounts included for such prior periods, is based solely on the report of such other auditors.
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 Companys internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes 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 the Company as of December 31, 2013 and 2012 and the results of its operations and its cash flows for the years then ended and for the period from July 6, 2010 (inception) through December 31, 2013 in conformity with accounting principles generally accepted in the United States of America.
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 3 to the financial statements, the Company had a deficit accumulated during the development stage at December 31, 2013 and had a net loss and net cash used in operating activities for the year then ended. These factors raise substantial doubt about the Companys ability to continue as a going concern. Managements plans in regards to these matters are also described in Note 3. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
/s/Li and Company, PC
Li and Company,
PC
Skillman, New Jersey
March 25, 2014
F - 2
Gold Union Inc.
(Formerly Advanced Ventures Corp.)
(A Development Stage Company)
Balance Sheets
December 31, 2013 | December 31, 2012 | |||||
Assets | ||||||
Current assets: | ||||||
Cash | $ | 525 | $ | 342 | ||
Total Current Assets | 525 | 342 | ||||
Total assets | $ | 525 | $ | 342 | ||
Liabilities and stockholders' deficit | ||||||
Current liabilities: | ||||||
Accounts payable and accrued expenses | $ | 28,930 | $ | 15,315 | ||
Advances from stockholders | 18,500 | 106,594 | ||||
Total current liabilities | 47,430 | 121,909 | ||||
Total liabilities | 47,430 | 121,909 | ||||
Stockholders' deficit: | ||||||
Common stock par
value $0.0001: 3,000,000,000 shares authorized; 163,134,500 and 82,500,000 shares issued and outstanding, respectively |
16,313 | 8,250 | ||||
Additional paid-in capital | 200,256 | 47,050 | ||||
Deficit accumulated during the development stage | (263,474 | ) | (176,867 | ) | ||
Total stockholders' deficit | (46,905 | ) | (121,567 | ) | ||
Total liabilities and stockholders' deficit | $ | 525 | $ | 342 |
See accompanying notes to the
consolidated financial statements.
F-3
Gold Union Inc.
(Formerly Advanced
Ventures Corp.)
(A Development Stage Company)
Statements of Operations
For the Period from | |||||||||
For the Year | For the Year | July 6, 2010 | |||||||
Ended | Ended | (inception) through | |||||||
December 31, 2013 | December 31, 2012 | December 31, 2013 | |||||||
Revenues earned during the development stage | $ | - | $ | - | $ | - | |||
Operating expenses: | |||||||||
Patent acquisition cost and expenses | - | - | 19,213 | ||||||
Professional fees | 85,592 | 87,098 | 242,461 | ||||||
General and administrative expenses | 597 | 549 | 4,958 | ||||||
Total operating expenses | 86,189 | 87,647 | 266,632 | ||||||
Loss from operations | (86,189 | ) | (87,647 | ) | (266,632 | ) | |||
Other (income) expense: | |||||||||
Foreign currency transactions (gain) loss | 418 | (703 | ) | (3,158 | ) | ||||
Other (income) expense, net | 418 | (703 | ) | (3,158 | ) | ||||
Loss before income tax provision | (86,607 | ) | (86,944 | ) | (263,474 | ) | |||
Income tax provision | - | - | - | ||||||
Net loss | $ | (86,607 | ) | $ | (86,944 | ) | $ | (263,474 | ) |
Net loss per common share | |||||||||
- Basic and diluted: | $ | (0.00 | ) | $ | (0.00 | ) | |||
Weighted average common shares outstanding | |||||||||
- Basic and diluted | 98,844,613 | 82,500,000 |
See accompanying notes to the consolidated financial
statements.
F-4
Gold Union Inc.
(Formerly Advanced
Ventures Corp.)
(A Development Stage Company)
Statement of Stockholders' Equity (Deficit)
For the Period from July 6, 2010 (inception) through December 31,
2013
Common Stock Par Value $0.0001 | |||||||||||||||
Deficit Accumulated | Total | ||||||||||||||
Number of | Additional Paid-in | during the | Stockholders'Equity | ||||||||||||
Shares | Amount | Capital | Development Stage | (Deficit) | |||||||||||
Balance, July 6, 2010 | - | $ | - | $ | - | $ | - | $ | - | ||||||
Issuance of common shares for cash upon formation | 45,000,000 | 4,500 | (4,200 | ) | 300 | ||||||||||
Net loss | (30,203 | ) | (30,203 | ) | |||||||||||
Balance, December 31, 2010 | 45,000,000 | 4,500 | (4,200 | ) | (30,203 | ) | (29,903 | ) | |||||||
Issuance of common shares for cash at $0.002 per share on June 16, 2011 | 37,500,000 | 3,750 | 71,250 | 75,000 | |||||||||||
Issuance costs | (20,000 | ) | (20,000 | ) | |||||||||||
Net loss | (59,720 | ) | (59,720 | ) | |||||||||||
Balance, December 31, 2011 | 82,500,000 | 8,250 | 47,050 | (89,923 | ) | (34,623 | ) | ||||||||
Net loss | (86,944 | ) | (86,944 | ) | |||||||||||
Balance, December 31, 2012 | 82,500,000 | 8,250 | 47,050 | (176,867 | ) | (121,567 | ) | ||||||||
Issuance of common shares for debt at $0.002 per share on October 18, 2013 | 80,634,500 | 8,063 | 153,206 | 161,269 | |||||||||||
Net loss | (86,607 | ) | (86,607 | ) | |||||||||||
Balance, December 31, 2013 | 163,134,500 | $ | 16,313 | $ | 200,256 | $ | (263,474 | ) | $ | (46,905 | ) |
See accompanying notes to the consolidated financialstatements.
F-5
Gold Union Inc.
(Formerly Advanced Ventures Corp.)
(A Development Stage
Company)
Statements of Cash Flows
For the Period from | |||||||||
For the Year | For the Year | July 6, 2010 | |||||||
Ended | Ended | (inception) through | |||||||
December 31, 2013 | December 31, 2012 | December 31, 2013 | |||||||
Cash flows from operating activities: | |||||||||
Net loss | $ | (86,607 | ) | $ | (86,944 | ) | $ | (263,474 | ) |
Adjustments to reconcile net loss to net cash used in operating activities | |||||||||
Changes in operating assets and liabilities: | |||||||||
Accrued expenses | 13,615 | (1,095 | ) | 28,930 | |||||
Net cash used in operating activities | (72,992 | ) | (88,039 | ) | (234,544 | ) | |||
Cash flows from financing activities: | |||||||||
Advances from stockholders | 73,175 | 78,390 | 179,769 | ||||||
Proceeds from sale of common stock, net | - | - | 55,300 | ||||||
Net cash provided by financing activities | 73,175 | 78,390 | 235,069 | ||||||
Net change in cash | 183 | (9,649 | ) | 525 | |||||
Cash at beginning of period | 342 | 9,991 | - | ||||||
Cash at end of period | $ | 525 | $ | 342 | $ | 525 | |||
Supplemental disclosure of cash flows information: | |||||||||
Interest paid | $ | - | $ | - | $ | - | |||
Income tax paid | $ | - | $ | - | $ | - | |||
Non-cash investing and financing activities: | |||||||||
Stock issued for debt | $ | 161,269 | $ | - | $ | 161,269 |
See accompanying notes to the consolidated financial
statements.
F-6
Gold Union Inc.
(Formerly Advanced Ventures Corp.)
(A
Development Stage Company)
December 31, 2013 and 2012
Notes to the
Financial Statements
Note 1 Organization and Operations
Advanced Ventures Corp.
Advanced Ventures Corp. (the Advanced Ventures) was incorporated under the laws of the State of Delaware on July 6, 2010. The Company has revised its business plan to trade in precious metal bullion primarily in the Asia Pacific region.
Effective January 6, 2014, Advanced Ventures Corp. effected a name change to Gold Union Inc. (the Company) to more adequately reflect its intended business operations, which is expected to be the trading of precious metal bullion primarily in the Asia Pacific region.
Formation of Advanced Ventures (HK) Ltd.
On March 27, 2012, the Company formed a wholly-owned subsidiary, Advanced Ventures (HK) Ltd., under the laws of the Hong Kong Special Administrative Region (HK SAR) of the Peoples Republic of China (PRC). Advanced Ventures (HK) Ltd. engaged in the same line of business as that of the Company. On November 1, 2013 the Company dissolved Advanced Ventures (HK) Ltd. Advanced Ventures (HK) Ltd. which was inactive during its existence.
Certificate of Amendment of Certificate of Incorporation
On February 21, 2012, the Company filed a certificate of amendment of certificate of incorporation to increase the amount of authorized common shares from 200,000,000 to 3,000,000,000 and to effectuate a forward stock split of the issued and outstanding common shares of the Company on a basis of 15 for 1 effective as of March 7, 2012.
All shares and per share amounts in the financial statements have been adjusted to give retroactive effect to the Stock Split.
Note 2 Significant and Critical Accounting Policies and Practices
The Management of the Company is responsible for the selection and use of appropriate accounting policies and the appropriateness of accounting policies and their application. Critical accounting policies and practices are those that are both most important to the portrayal of the Companys financial condition and results and require managements most difficult, subjective, or complex judgments, often as a result of the need to make estimates about the effects of matters that are inherently uncertain. The Companys significant and critical accounting policies and practices are disclosed below as required by generally accepted accounting principles.
Basis of Presentation
The financial statements and related notes have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP).
Use of Estimates and Assumptions and Critical Accounting Estimates and Assumptions
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date(s) of the financial statements and the reported amounts of revenues and expenses during the reporting period(s).
Critical accounting estimates are estimates for which (a) the nature of the estimate is material due to the levels of subjectivity and judgment necessary to account for highly uncertain matters or the susceptibility of such matters to change and (b) the impact of the estimate on financial condition or operating performance is material. The Companys critical accounting estimates and assumptions affecting the financial statements were:
(i) |
Assumption as a going concern: Management assumes that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business. |
(ii) |
Valuation allowance for deferred tax assets: Management assumes that the realization of the Companys net deferred tax assets resulting from its net operating loss (NOL) carryforwards for Federal income tax purposes that may be offset against future taxable income was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by a full valuation allowance. Management made this assumption based on (a) the Company has incurred recurring losses, (b) general economic conditions, and (c) its ability to raise additional funds to support its daily operations by way of a public or private offering, among other factors. |
F - 7
These significant accounting estimates or assumptions bear the risk of change due to the fact that there are uncertainties attached to these estimates or assumptions, and certain estimates or assumptions are difficult to measure or value.
Management bases its estimates on historical experience and on various assumptions that are believed to be reasonable in relation to the financial statements taken as a whole under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources.
Management regularly evaluates the key factors and assumptions used to develop the estimates utilizing currently available information, changes in facts and circumstances, historical experience and reasonable assumptions. After such evaluations, if deemed appropriate, those estimates are adjusted accordingly.
Actual results could differ from those estimates.
Development Stage Company
The Company was a development stage company as defined by section 915-10-20 of the Financial Accounting Standards Board (FASB) Accounting Standards Codification. The Company is still devoting substantially all of its efforts on establishing the business and, therefore, qualifies as a development stage company. All losses accumulated from July 6, 2010 (inception) have been considered as part of the Companys development stage activities.
Fair Value of Financial Instruments
The Company follows paragraph 825-10-50-10 of the FASB Accounting Standards Codification for disclosures about fair value of its financial instruments and has adopted paragraph 820-10-35-37 of the FASB Accounting Standards Codification (Paragraph 820-10-35-37) to measure the fair value of its financial instruments. Paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a framework for measuring fair value in generally accepted accounting principles (GAAP), and expands disclosures about fair value measurements. To increase consistency and comparability in fair value measurements and related disclosures, paragraph 820-10-35-37 of the FASB Accounting Standards Codification establishes a fair value hierarchy which prioritizes the inputs to valuation techniques used to measure fair value into three (3) broad levels. The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The three (3) levels of fair value hierarchy defined by paragraph 820-10-35-37 of the FASB Accounting Standards Codification are described below:
Level 1 | Quoted market prices available in active markets for identical assets or liabilities as of the reporting date. |
Level 2 |
Pricing inputs other than quoted prices in active markets included in Level 1, which are either directly or indirectly observable as of the reporting date. |
Level 3 | Pricing inputs that are generally observable inputs and not corroborated by market data. |
Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable.
The fair value hierarchy gives the highest priority to quoted prices (unadjusted) in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.
The carrying amounts of the Companys financial assets and liabilities, such as cash and accounts payable and accrued expenses, approximate their fair values because of the short maturity of these instruments.
Transactions involving related parties cannot be presumed to be carried out on an arm's-length basis, as the requisite conditions of competitive, free-market dealings may not exist. Representations about transactions with related parties, if made, shall not imply that the related party transactions were consummated on terms equivalent to those that prevail in arm's-length transactions unless such representations can be substantiated.
F - 8
Cash Equivalents
The Company considers all highly liquid investments with maturities of three months or less at the time of purchase to be cash equivalents.
Related Parties
The Company follows subtopic 850-10 of the FASB Accounting Standards Codification for the identification of related parties and disclosure of related party transactions.
Pursuant to section 850-10-20 the related parties include a) affiliates of the Company; b) entities for which investments in their equity securities would be required, absent the election of the fair value option under the Fair Value Option Subsection of section 8251015, to be accounted for by the equity method by the investing entity; c) trusts for the benefit of employees, such as pension and profit-sharing trusts that are managed by or under the trusteeship of management; d) principal owners of the Company; e) management of the Company; f) other parties with which the Company may deal if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own separate interests; and g. other parties that can significantly influence the management or operating policies of the transacting parties or that have an ownership interest in one of the transacting parties and can significantly influence the other to an extent that one or more of the transacting parties might be prevented from fully pursuing its own separate interests.
The financial statements shall include disclosures of material related party transactions, other than compensation arrangements, expense allowances, and other similar items in the ordinary course of business. However, disclosure of transactions that are eliminated in the preparation of consolidated or combined financial statements is not required in those statements. The disclosures shall include: a) the nature of the relationship(s) involved; b) a description of the transactions, including transactions to which no amounts or nominal amounts were ascribed, for each of the periods for which income statements are presented, and such other information deemed necessary to an understanding of the effects of the transactions on the financial statements; c) the dollar amounts of transactions for each of the periods for which income statements are presented and the effects of any change in the method of establishing the terms from that used in the preceding period; and d. amount due from or to related parties as of the date of each balance sheet presented and, if not otherwise apparent, the terms and manner of settlement.
Commitments and Contingencies
The Company follows subtopic 450-20 of the FASB Accounting Standards Codification to report accounting for contingencies. Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or un-asserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or un-asserted claims as well as the perceived merits of the amount of relief sought or expected to be sought therein.
If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Companys financial statements. If the assessment indicates that a potentially material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed.
Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed. Management does not believe, based upon information available at this time, that these matters will have a material adverse effect on the Companys consolidated financial position, results of operations or cash flows. However, there is no assurance that such matters will not materially and adversely affect the Companys business, financial position, and results of operations or cash flows.
Revenue Recognition
The Company applies paragraph 605-10-S99-1 of the FASB Accounting Standards Codification for revenue recognition. The Company recognizes revenue when it is realized or realizable and earned. The Company considers revenue realized or realizable and earned when all of the following criteria are met: (i) persuasive evidence of an arrangement exists, (ii) the product has been shipped or the services have been rendered to the customer, (iii) the sales price is fixed or determinable, and (iv) collectability is reasonably assured.
Income Tax Provision
F - 9
The Company adopted the provisions of paragraph 740-10-25-13 of the FASB Accounting Standards Codification. Paragraph 740-10-25-13.addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the financial statements. Under paragraph 740-10-25-13, the Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent (50%) likelihood of being realized upon ultimate settlement. Paragraph 740-10-25-13 also provides guidance on de-recognition, classification, interest and penalties on income taxes, accounting in interim periods and requires increased disclosures. The Company had no material adjustments to its liabilities for unrecognized income tax benefits according to the provisions of paragraph 740-10-25-13.
The estimated future tax effects of temporary differences between the tax basis of assets and liabilities are reported in the accompanying balance sheets, as well as tax credit carry-backs and carry-forwards. The Company periodically reviews the recoverability of deferred tax assets recorded on its balance sheets and provides valuation allowances as management deems necessary.
Management makes judgments as to the interpretation of the tax laws that might be challenged upon an audit and cause changes to previous estimates of tax liability. In addition, the Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. In managements opinion, adequate provisions for income taxes have been made for all years. If actual taxable income by tax jurisdiction varies from estimates, additional allowances or reversals of reserves may be necessary.
Uncertain Tax Positions
The Company did not take any uncertain tax positions and had no adjustments to its income tax liabilities or benefits pursuant to the provisions of Section 740-10-25 for the year ended December 31, 2013 or 2012.
Net Income (Loss) per Common Share
Net income (loss) per common share is computed pursuant to section 260-10-45 of the FASB Accounting Standards Codification. Basic net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the period. Diluted net income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock and potentially outstanding shares of common stock during the period to reflect the potential dilution that could occur from common shares issuable through contingent shares issuance arrangement, stock options or warrants.
There were no potentially outstanding dilutive shares for the year ended December 31, 2013 or 2012.
Cash Flows Reporting
The Company adopted paragraph 230-10-45-24 of the FASB Accounting Standards Codification for cash flows reporting, classifies cash receipts and payments according to whether they stem from operating, investing, or financing activities and provides definitions of each category, and uses the indirect or reconciliation method (Indirect method) as defined by paragraph 230-10-45-25 of the FASB Accounting Standards Codification to report net cash flow from operating activities by adjusting net income to reconcile it to net cash flow from operating activities by removing the effects of (a) all deferrals of past operating cash receipts and payments and all accruals of expected future operating cash receipts and payments and (b) all items that are included in net income that do not affect operating cash receipts and payments. The Company reports the reporting currency equivalent of foreign currency cash flows, using the current exchange rate at the time of the cash flows and the effect of exchange rate changes on cash held in foreign currencies is reported as a separate item in the reconciliation of beginning and ending balances of cash and cash equivalents and separately provides information about investing and financing activities not resulting in cash receipts or payments in the period pursuant to paragraph 830-230-45-1 of the FASB Accounting Standards Codification.
Subsequent Events
The Company follows the guidance in Section 855-10-50 of the FASB Accounting Standards Codification for the disclosure of subsequent events. The Company will evaluate subsequent events through the date when the financial statements were issued. Pursuant to ASU 2010-09 of the FASB Accounting Standards Codification, the Company as an SEC filer considers its financial statements issued when they are widely distributed to users, such as through filing them on EDGAR.
Recently Issued Accounting Pronouncements
In February 2013, the FASB issued ASU No. 2013-02, "Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income." The ASU adds new disclosure requirements for items reclassified out of accumulated other comprehensive income by component and their corresponding effect on net income. The ASU is effective for public entities for fiscal years beginning after December 15, 2013.
F - 10
In February 2013, the Financial Accounting Standards Board, or FASB, issued ASU No. 2013-04, "Liabilities (Topic 405): Obligations Resulting from Joint and Several Liability Arrangements for which the Total Amount of the Obligation Is Fixed at the Reporting Date." This ASU addresses the recognition, measurement, and disclosure of certain obligations resulting from joint and several arrangements including debt arrangements, other contractual obligations, and settled litigation and judicial rulings. The ASU is effective for public entities for fiscal years, and interim periods within those years, beginning after December 15, 2013.
In March 2013, the FASB issued ASU No. 2013-05, "Foreign Currency Matters (Topic 830): Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity." This ASU addresses the accounting for the cumulative translation adjustment when a parent either sells a part or all of its investment in a foreign entity or no longer holds a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity. The guidance outlines the events when cumulative translation adjustments should be released into net income and is intended by FASB to eliminate some disparity in current accounting practice. This ASU is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013.
In March 2013, the FASB issued ASU 2013-07, Presentation of Financial Statements (Topic 205): Liquidation Basis of Accounting. The amendments require an entity to prepare its financial statements using the liquidation basis of accounting when liquidation is imminent. Liquidation is imminent when the likelihood is remote that the entity will return from liquidation and either (a) a plan for liquidation is approved by the person or persons with the authority to make such a plan effective and the likelihood is remote that the execution of the plan will be blocked by other parties or (b) a plan for liquidation is being imposed by other forces (for example, involuntary bankruptcy). If a plan for liquidation was specified in the entitys governing documents from the entitys inception (for example, limited-life entities), the entity should apply the liquidation basis of accounting only if the approved plan for liquidation differs from the plan for liquidation that was specified at the entitys inception. The amendments require financial statements prepared using the liquidation basis of accounting to present relevant information about an entitys expected resources in liquidation by measuring and presenting assets at the amount of the expected cash proceeds from liquidation. The entity should include in its presentation of assets any items it had not previously recognized under U.S. GAAP but that it expects to either sell in liquidation or use in settling liabilities (for example, trademarks). The amendments are effective for entities that determine liquidation is imminent during annual reporting periods beginning after December 15, 2013, and interim reporting periods therein. Entities should apply the requirements prospectively from the day that liquidation becomes imminent. Early adoption is permitted.
Management does not believe that any other recently issued, but not yet effective accounting pronouncements, if adopted, would have a material effect on the accompanying financial statements.
Note 3 Going Concern
The financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates continuity of operations, realization of assets, and liquidation of liabilities in the normal course of business.
As reflected in the financial statements, the Company had a deficit accumulated during the development stage at December 31, 2013, a net loss and net cash used in operating activities for the reporting period then ended. These factors raise substantial doubt about the Companys ability to continue as a going concern.
The Company is attempting to commence operations and generate sufficient revenue; however, its cash position may not be sufficient to support its daily operations. While the Company believes in the viability of its strategy to commence operations and generate sufficient revenue and in its ability to raise additional funds by way of a public or private offering, there can be no assurances to that effect. The ability of the Company to continue as a going concern is dependent upon its ability to further implement its business plan and generate sufficient revenue and its ability to raise additional funds. The financial statements do not include any adjustments related to the recoverability and classification of recorded asset amounts or the amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
Note 4 Related Party Transactions
Advances from Stockholders
From time to time, stockholders of the Company advance funds to the Company for working capital purpose. Those advances are unsecured, non-interest bearing and due on demand.
Free Office Space from its Majority Stockholder and Chief Executive Officer
F - 11
The Company has been provided office space by its majority stockholder at no cost. The management determined that such cost is nominal and did not recognize the rent expense in its financial statements.
Note 5 Stockholders Deficit
Shares Authorized
Upon formation the total number of shares of common stock which the Company is authorized to issue is Two Hundred Million (200,000,000) shares, par value $.0001 per share.
Certificate of Amendment of Certificate of Incorporation
On February 21, 2012, the Company filed a certificate of amendment of certificate of incorporation to increase the amount of authorized common shares from 200,000,000 to 3,000,000,000 and to effectuate a 15 for 1 forward stock split of the issued and outstanding common shares of the Company to be effective as of March 7, 2012.
All shares and per share amounts in the financial statements have been adjusted to give retroactive effect to the Stock Split.
Common Stock
Upon formation the Company issued 45,000,000 shares of its common stock to the Directors and Officers of the Company for $300 in cash.
The Company commenced a capital formation activity by filing a Registration Statement on Form S-1 with the SEC to register and sell in a self-directed offering 37,500,000 shares of its common stock for gross proceeds of up to $75,000. The Registration Statement was declared effective on May 10, 2011. On June 16, 2011, the Company issued 37,500,000 shares of its common stock pursuant to the Registration Statement for gross proceeds of $75,000. Offering costs of $20,000 related to this capital formation activity were charged against the capital raised.
On October 18, 2013, the Company completed a shares-for-debt private placement with 10 individuals involving the sale of an aggregate of 80,634,500 shares of the Companys common stock, in settlement of an aggregate of $161,269 owed by the Company to the shares-for-debt purchasers.
Note 6 Income Tax Provision
The Company is subject to the United States of America income taxes.
United States Income Tax
The Company is incorporated in the State of Delaware and is subjected to United States of America tax law.
Deferred Tax Assets
At December 31, 2013, the Company has available for federal income tax purposes a net operating loss (NOL) carry-forwards of $263,474 that may be used to offset future taxable income through the fiscal year ending December 31, 2033. No tax benefit has been reported with respect to these net operating loss carry-forwards in the accompanying financial statements since the Company believes that the realization of its net deferred tax asset of approximately $89,581 was not considered more likely than not and accordingly, the potential tax benefits of the net loss carry-forwards are offset by the full valuation allowance.
Deferred tax assets consist primarily of the tax effect of NOL carry-forwards. The Company has provided a full valuation allowance on the deferred tax assets because of the uncertainty regarding its realization. The valuation allowance increased approximately $29,510 and $29,497 for the year ended December 31, 2013 and 2012, respectively.
Components of deferred tax assets are as follows:
December 31, 2013 | December 31, 2012 | |||||
Net deferred tax assets Non-current: | ||||||
Expected income tax benefit from NOL carry-forwards | $ | 89,581 | $ | 60,071 | ||
Less valuation allowance | (89,581 | ) | (60,071 | ) | ||
Deferred tax assets, net of valuation allowance | $ | - | $ | - |
F - 12
Income Tax Provision in the Consolidated Statements of
Operations
A reconciliation of the federal statutory income
tax rate and the effective income tax rate as a percentage of income before
income taxes is as follows:
For the Year | For the Year | |||||
Ended | Ended | |||||
December 31, | December 31, | |||||
2013 | 2012 | |||||
Federal statutory income tax rate | 34.0% | 34.0% | ||||
Change in valuation allowance on net operating loss carry-forwards | (34.0 | ) | (34.0 | ) | ||
Effective income tax rate | 0.0 % | 0.0% |
Note 7 Subsequent Events
The Company has evaluated all events that occurred after the balance sheet date through the date when the financial statements were issued to determine if they must be reported. The Management of the Company determined that there were no reportable subsequent event(s) to be disclosed
F - 13
ITEM 9. |
CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE |
On March 14, 2013, our Board of Directors approved and authorized the dismissal of Weinberg & Baer, LLC, (W&B), as our independent registered public accounting firm. On the same date, our Board of Directors approved and authorized the engagement of the accounting firm of Li and Company, PC, as our new independent registered public accounting firm.
W&Bs reports on our financial statements dated February 28, 2012, for the fiscal years ended December 31, 2011, and 2010, did not contain an adverse opinion or disclaimer of opinion, or qualification or modification as to uncertainty, audit scope, or accounting principles, except that W&Bs reports contained an explanatory paragraph in respect to the substantial doubt as to our ability to continue as a going concern.
In connection with the audit of our financial statements for the fiscal years ended December 31, 2011, and 2010, and in the subsequent interim periods through the effective date of dismissal on March 14, 2013, there were no disagreements, resolved or not, with W&B on any matters of accounting principles or practices, financial statement disclosure or auditing scope or procedures, which disagreements, if not resolved to the satisfaction of W&B would have caused them to make reference to the subject matter of the disagreements in connection with their reports on the financial statements for such years.
During our fiscal years ended December 31, 2011 and 2010 and in any subsequent interim periods through the effective date of dismissal of W&B on March 14, 2013, there were no reportable events as described in Item 304(a)(1)(v) of Regulation S-K.
During the fiscal years ended December 31, 2011 and 2010 and any subsequent interim periods through the effective date of appointment of Li and Company, PC on March 14, 2013, we had not, nor had any person on our behalf, consulted with Li and Company, PC regarding either the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that might be rendered on our financial statements, nor had Li and Company, PC provided to us a written report or oral advice regarding such principles or audit opinion on any matter that was the subject of a disagreement as set forth in Item 304(a)(1)(iv) of Regulation S-K or a reportable event as set forth in Item 304(a)(1)(v) of Regulation S-K with our former independent registered public accounting firm.
ITEM 9A. CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by the Company in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time specified in the Commission's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer's management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
As required by Rule 13a-15 under the Securities Exchange Act of 1934, as of the end of the period covered by this report, we have carried out an evaluation of the effectiveness of the design and operation of our companys disclosure controls and procedures. Under the direction of our Chief Executive Officer and our Chief Financial Officer, we evaluated our disclosure controls and procedures and internal control over financial reporting and concluded that (i) there continue to be material weaknesses in the Companys internal controls over financial reporting, that the weaknesses constitute a deficiency and that this deficiency could result in misstatements of the foregoing accounts and disclosures that could result in a material misstatement to the financial statements for the period covered by this report that would not be detected, and (ii) accordingly, our disclosure controls and procedures were not effective as of December 31, 2013.
9
Management's Annual Report On Internal Control Over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting to provide reasonable assurance regarding the reliability of our financial reporting and the preparation of financial statements for external purposes in accordance with accounting principles generally accepted in the United States. Internal control over financial reporting includes those policies and procedures that: (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with accounting principles generally accepted in the United States, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the assets of the Company that could have a material effect on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluations of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Accordingly, even an effective system of internal control over financial reporting will provide only reasonable assurance with respect to financial statement preparation.
As of December 31, 2013 management, with the participation of our principal executive officer and principal financial officer, assessed the effectiveness of our internal control over financial reporting based on the criteria for effective internal control over financial reporting established in Internal ControlIntegrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO) and SEC guidance on conducting such assessments. Based on that evaluation, our management concluded that, during the period covered by this report, such internal controls and procedures were not effective to detect the inappropriate application of US GAAP rules as more fully described below. This was due to deficiencies that existed in the design or operation of our internal controls over financial reporting that adversely affected our internal controls and that may be considered to be material weaknesses.
The matters involving internal controls and procedures that our management considered to be material weaknesses under the standards of the Public Company Accounting Oversight Board were: (1) lack of a functioning audit committee due to a lack of a majority of independent members and a lack of a majority of outside directors on our Board of Directors, resulting in ineffective oversight in the establishment and monitoring of required internal controls and procedures; (2) inadequate segregation of duties consistent with control objectives; and (3) ineffective controls over period end financial disclosure and reporting processes. The aforementioned material weaknesses were identified by our Chief Executive Officer and Chief Financial Officer in connection with the review of our financial statements as of December 31, 2013.
Management believes that the material weaknesses set forth in items (2) and (3) above did not have an effect on our financial results. However, management believes that the lack of a functioning audit committee and the lack of a majority of outside directors on our Board of Directors results in ineffective oversight in the establishment and monitoring of required internal controls and procedures, which could result in a material misstatement in our financial statements in future periods.
This Annual Report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting. Management's report was not subject to attestation by our registered public accounting firm pursuant to rules of the Securities and Exchange Commission that permit the company to provide only management's report.
10
Changes in Internal Controls
There have been no changes in our internal control over financial reporting during our fourth fiscal quarter of our fiscal year ended December 31, 2013 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
ITEM 9B. OTHER INFORMATION
Not applicable.
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Our executive officers and directors and their respective ages as of the date of this Annual Report are as follows:
Name | Age | Position Held |
Sae-Chua Supachai | 36 | Chief Executive Officer, Chief Financial Officer and Director |
Vincent Kim | 41 | Director |
The following describes the business experience of our directors and executive officers:
Mr. Sae-Chua Supachai has been the Chief Executive Officer, Chief Financial Officer and a director of the Company since February 12, 2014. Mr. Supachai served as the Head of Business development at Ausiris Co., Ltd., part of the Baan Chang Thong Group in Thailand from July 2006 to May 2013. In his capacity as the Head of Business Development, he led a team in developing the company's sales distribution of precious metal products as well as growing the new business segments in brokerage and consultancy services for retail investors. Ausiris Co., Ltd. is a major domestic gold trading company in Thailand and its key operations apart from production include brokerage and advisory services for investors. Mr. Suapchai graduated with a Bachelor of Business Administration (International Business) in 1999 from Ramkhamhaeng University (Thailand).
Mr. Vincent Kim has been a director of the Company since July 17, 2012. Mr. Kim has experience in sales and marketing as well as legal and human resources. From March 2009 to April 2012, Mr. Kim was the Regional Sales Director for Boehringer Ingelheim Singapore Pte. Ltd. whereby he managed and led a team of 100 sales managers and representatives for Singapore and Malaysia and achieved 120% over sales target for 2009 and 2011. From March 2007 to February 2009, Mr. Kim was the Head of Legal and Human Resources whereby he managed and lead a team of 30 human resource personnel and spearheaded and developed payroll workflows for complicated real estate commission payout process. From January 1996 to December 2006, Mr. Kim was a licensed aircraft engineer for the Republic of Singapore Air Force. Mr. Kim received his diploma in Mechanical Engineering from Singapore Polytechnic in 1995.
Term of Office
Our directors hold office until the next annual general meeting of our stockholders or until removed from office in accordance with our bylaws. Our officers are appointed by our board of directors and hold office until removed by the board.
Significant Employees
We have no significant employees other than our officers described above.
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Family Relationships
There are no family relationships among our directors or officers.
Involvement in Certain Legal Proceedings
To the best of our knowledge and belief, none of our directors or executive officers has been involved in any of the following events during the past ten years that is material to an evaluation of the ability of such person to serve as an executive officer or director of our Company:
1. |
a petition under the federal bankruptcy laws or any state insolvency law was filed by or against, or a receiver, fiscal agent or similar officer was appointed by a court for the business or property of such person, or any partnership in which he was a general partner at or within two years before the time of such filing, or any corporation or business association of which he was an executive officer at or within two years before the time of such filing; | ||
2. |
such person was convicted in a criminal proceeding or is a named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses); | ||
3. |
such person was the subject of any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from, or otherwise limiting, the following activities: | ||
(i) |
acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the Commodity Futures Trading Commission, or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity; | ||
(ii) |
engaging in any type of business practice; or | ||
(iii) |
engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of federal or state securities laws or federal commodities laws; | ||
4. |
such person was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any federal or state authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described in paragraph 3(i) above, or to be associated with persons engaged in any such activity; | ||
5. |
such person was found by a court of competent jurisdiction in a civil action or by the SEC to have violated any federal or state securities law, and the judgment in such civil action or finding by the SEC not been subsequently reversed, suspended, or vacated; | ||
6. |
such person was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated; | ||
7. |
such person was the subject of, or a party to, any federal or state judicial or administrative order, judgment, decree, or finding, not subsequently reversed, suspended or vacated, relating to an alleged violation of: | ||
(i) |
any federal or state securities or commodities law or regulation; |
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(ii) |
any law or regulation respecting financial institutions or insurance companies including, but not limited to, a temporary or permanent injunction, order of disgorgement or restitution, civil money penalty or temporary or permanent cease-and-desist order, or removal or prohibition order; or | |
(iii) |
any law or regulation prohibiting mail or wire fraud or fraud in connection with any business entity; or |
8. |
such person was the subject of, or a party to, any sanction or order, not subsequently reversed, suspended or vacated, of any self-regulatory organization (as defined in Section 3(a)(26) of the Exchange Act), any registered entity (as defined in Section 1(a)(29) of the United States Commodity Exchange Act), or any equivalent exchange, association, entity or organization that has disciplinary authority over its members or persons associated with a member. |
We are not aware of any material legal proceedings in which any of the following persons is a party adverse to our Company or has a material interest adverse to our Company: (a) any current director, officer, or affiliate of the Company, or any owner of record or beneficial owner of more than five percent of any class of voting securities of the Company; (b) any person proposed for appointment or election as a director or officer of our Company; or (c) any associate of any such person.
Code of Ethics
We do not currently have a Code of Ethics applicable to our principal executive, financial and accounting officers; however, we plan to consider implementing such a code in the near future.
Audit Committee
We do not have a separately-designated standing audit committee. The entire Board of Directors performs the functions of an audit committee, but no written charter governs the actions of the Board when performing the functions of what would generally be performed by an audit committee. The Board approves the selection of our independent accountants and meets and interacts with the independent accountants to discuss issues related to financial reporting. In addition, the Board reviews the scope and results of the audit with the independent accountants, reviews with management and the independent accountants our annual operating results, considers the adequacy of our internal accounting procedures and considers other auditing and accounting matters including fees to be paid to the independent auditor and the performance of the independent auditor.
We intend to adopt an audit committee in the near future.
We do not have an audit committee financial expert serving on our Board of Directors/audit committee at this time and each financial transaction is viewed by our entire Board of Directors.
Nomination Committee
At the present time, we do not have a nomination committee. We intend to adopt a nomination committee in the future.
Compliance with Section 16(a) of the Exchange Act
Section 16(a) of the Exchange Act requires our directors and officers, and the persons who beneficially own more than ten percent of our common stock, to file reports of ownership and changes in ownership with the SEC. Copies of all filed reports are required to be furnished to us pursuant to Rule 16a-3 promulgated under the Exchange Act. Based solely on the reports received by us and on the representations of the reporting persons, we believe that these persons have complied with all applicable filing requirements during the fiscal year ended December 31, 2013.
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ITEM 11. EXECUTIVE COMPENSATION
Compensation Discussion and Analysis
The table below summarizes all compensation awarded to, earned by or paid to our executive officers by any person for all services rendered in all capacities to us during our fiscal years ended December 31, 2013 and 2012.
Summary Compensation Table
Name and Principal Position |
Year |
Salary ($) |
Bonus ($) |
Stock Awards ($) |
Option Awards ($) |
Non- Equity Incentive Plan Compen- sation ($) |
Nonqualified Deferred Compen- sation Earnings ($) |
All Other Compen- sation ($) |
Total ($) |
Christino Rio
Chief Executive Officer(1) |
2013 2012 |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Benson Lim Chief Financial Officer(2) |
2013 2012 |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Brandon Low
Chief Operating Officer(3) |
2013 2012 |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Nil Nil |
Xu Fei (former) President, Chief Executive Officer, Chief Financial Officer, Secretary and Treasurer(4) |
2012 |
Nil |
Nil |
Nil |
Nil |
Nil |
Nil |
Nil |
Nil |
(1) |
Mr. Christino Rio resigned as our Chief Executive Officer and a director on February 12, 2014. |
(2) |
Mr. Benson Lim resigned as our Chief Financial Officer and a director on February 12, 2014. |
(3) |
Mr. Brandon Low resigned as our Chief Operating Officer and a director on February 12, 2014. |
(4) |
Mr. Xu Fei was appointed as our President, Chief Executive Officer, Chief Financial Officer, Secretary and Treasurer on September 26, 2011 and resigned as Chief Financial Officer on July 6, 2012 and from all other positions on July 17, 2012. |
Outstanding Equity Awards
We do not have any equity compensation plans in effect.
Compensation of Directors
Except as disclosed below, we did not pay our directors any fees or other compensation for acting as directors during our fiscal year ended December 31, 2013. Certain of our then directors served as officers of the Company, and any compensation they received due to their service as an officer is disclosed in the table above and is not included in the table below.
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Director Compensation | |||||||
Non-Equity | Nonqualified | ||||||
Incentive | Deferred | ||||||
Fees earned | Plan | Compen- | All Other | ||||
or paid in | Stock | Option | Compen- | sation | Compen- | ||
Name and Principal | cash | Awards | Awards | sation | Earnings | sation | Total |
Position | ($) | ($) | ($) | ($) | ($) | ($) | ($) |
Christino Rio (1) | Nil | Nil | Nil | Nil | Nil | Nil | Nil |
Benson Lim (1) | Nil | Nil | Nil | Nil | Nil | Nil | Nil |
Brandon Low (1) | Nil | Nil | Nil | Nil | Nil | Nil | Nil |
Jareth Goh | Nil | Nil | Nil | Nil | Nil | Nil | Nil |
Vincent Kim | Nil | Nil | Nil | Nil | Nil | Nil | Nil |
(1) See summary compensation table above.
Employment Contracts, Termination of Employment, Change-in-Control Arrangements
There are currently no employment agreements or other contracts or arrangements with our Officers or Directors. There are no compensation plans or arrangements, including payments to be made by us, with respect to our Officers, Directors or consultants that would result from the resignation, retirement or any other termination of any of our Directors, officers or consultants. There are no arrangements for our Directors, Officers, Employees or consultants that would result from a change-in-control.
ITEM 12. |
SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS |
The following table sets forth certain information concerning the number of shares of our common stock owned beneficially as of the date of this annual report by: (i) each person (including any group) known to us to own more than 5% of any class of our voting securities, (ii) each of our directors, (iii) each of our officers and (iv) our officers and directors as a group. Each stockholder listed possesses sole voting and investment power with respect to the shares shown.
Title of class |
Name and address of beneficial owner(1) |
Amount and nature of beneficial owner(2) |
Percentage of
class(3) |
Persons owing more than 5% of voting securities | |||
Common Stock | Xu Fei Shop 35A, Ground Floor, Hop Yick Commercial Centre Phase 1, 33 Hop Choi Street, Yuen Long, NT, Hong Kong |
45,000,000 |
27.6% |
Officers and Directors | |||
Common Stock | Sae-Chua Supachai | Nil | Nil |
Common Stock | Vincent Kim | Nil | Nil |
Common Stock |
All executive officers and
directors as a group (two persons) |
Nil |
Nil |
1. |
The address of our officers and directors is our Companys address, which is Shop 35A, Ground Floor, Hop Yick Commercial Centre Phase 1, 33 Hop Choi Street, Yuen Long, NT, Hong Kong |
2. |
Under Rule 13d-3 of the Exchange Act a beneficial owner of a security includes any person who, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise has or shares: (i) voting power, which includes the power to vote or to direct the voting of shares; and (ii) investment power, which includes the power to dispose or direct the disposition of shares. Certain shares may be deemed to be beneficially owned by more than one person (if, for example, persons share the power to vote or the power to dispose of the shares). In addition, shares are deemed to be beneficially owned by a person if the person has the right to acquire the shares (for example, upon exercise of an option) within 60 days of the date as of which the information is provided. In computing the percentage ownership of any person, the amount of shares outstanding is deemed to include the amount of shares beneficially owned by such person (and only such person) by reason of these acquisition rights. |
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3. |
Based on 163,134,500 shares of our common stock issued and outstanding as of March 24, 2014. |
Changes in Control
We are unaware of any contract, or other arrangement or provision of our Articles, the operation of which may at any subsequent date result in a change in control of the Company.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE
Other than as disclosed below, there are no transactions during our two most recent fiscal years ended December 31, 2012 and December 31, 2013, or any currently proposed transaction, in which our Company was or to be a participant and the amount exceeds the lesser of $120,000 or one percent of the average of our Companys total assets at year end for our last two completed years, in which any of our directors, officers or principal stockholders, or any other related person as defined in Item 404 of Regulation S-K, had or have any direct or indirect material interest.
On May 7, 2012, Mr. Xu Fei, our then President, CEO, CFO, Secretary, Treasurer and Director, provided us with a loan in the amount of $20,084. This loan is unsecured, non-interest bearing and due on demand. No formal written agreement regarding this loan was signed; however, it is documented in the accounting records of the Company.
On May 16, 2012, Mr. Xu Fei, our then President, CEO, CFO, Secretary, Treasurer and Director, provided us with a loan in the amount of $1,288. This loan is unsecured, non-interest bearing and due on demand. No formal written agreement regarding this loan was signed; however, it is documented in the accounting records of the Company.
On June 30, 2012, Mr. Xu Fei, our then President, CEO, CFO, Secretary, Treasurer and Director, provided us with a loan in the amount of $18,000. This loan is unsecured, non-interest bearing and due on demand. No formal written agreement regarding this loan was signed; however, it is documented in the accounting records of the Company.
On November 9, 2012, Mr. Xu Fei, our former officer and director, provided us with a loan in the amount of $206,426. This loan is unsecured, non-interest bearing and due on demand. No formal written agreement regarding this loan was signed; however, it is documented in the accounting records of the Company. On November 20, 2012 we repaid $106,156 to Mr. Xu Fei. On December 7, 2012 we repaid $28,247 to Mr. Xu Fei. On December 17, 2012 we repaid $50,448 to Mr. Xu Fei.
On February 27, 2013, Mr. Xu Fei, our principal stockholder, provided us with a loan in the amount of $22,025. This loan is unsecured, non-interest bearing and due on demand. No formal written agreement regarding this loan was signed; however, it is documented in the accounting records of the Company.
On September 3, 2013, Mr. Xu Fei, our principal stockholder, provided us with a loan in the amount of $28,975. This loan is unsecured, non-interest bearing and due on demand. No formal written agreement regarding this loan was signed; however, it is documented in the accounting records of the Company.
On September 30, 2013, Mr. Xu Fei, our principal stockholder, provided us with a loan in the amount of $3,592. This loan is unsecured, non-interest bearing and due on demand. No formal written agreement regarding this loan was signed; however, it is documented in the accounting records of the Company.
On October 11, 2013, Mr. Xu Fei assigned his outstanding loans in the aggregate amount of $161,269 to 10 individuals who then converted such debt into shares of common stock of the Company pursuant to a shares-for-debt private placement on October 18, 2013 at a price $0.002 per share for an aggregate issuance of 80,634,500 shares.
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On November 18, 2013, Mr. Vincent Kim, one of our directors, provided us with a loan in the amount of $18,500. This loan is unsecured, non-interest bearing and due on demand. No formal written agreement regarding this loan was signed; however, it is documented in the accounting records of the Company.
Director Independence
As of the date of this Annual Report, our common stock is posted for trading on the OTC Bulletin Board (the OTCBB). The OTCBB does not impose on us standards relating to director independence or the makeup of committees with independent directors, or provide definitions of independence. However, under the definition of Independent Director as set forth in the NYSE MKT Company Guide Section 8.03A, we currently have one director, Mr. Vincent Kim, that would qualify as independent directors under the definition in the NYSE MKT Company Guide.
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Weinberg & Baer LLC reviewed our financial statement in each of the first three quarters for the fiscal year ended December 31, 2012, and Li and Company, PC has served as our independent registered public accounting firm since March 18, 2013 to audit our financial statement for the fiscal years ended December 31, 2012 and December 31, 2013. Aggregate fees for professional services billed by our auditors are set forth below:
Year Ended | Year Ended | |
December 31, 2013 | December 31, 2012 | |
Audit Fees | $13,500 | $9,500 |
Audit-Related Fees | Nil | Nil |
Tax Fees | $2,000 | $500 |
All Other Fees | Nil | Nil |
Total | $15,500 | $10,000 |
Audit Fees
Audit fees are the aggregate fees billed for professional services rendered by our independent auditors for the audit of our annual financial statements, the review of the financial statements included in each of our quarterly reports and services provided in connection with statutory and regulatory filings or engagements.
Audit Related Fees
Audit related fees are the aggregate fees billed by our independent auditors for assurance and related services that are reasonably related to the performance of the audit or review of our financial statements and are not described in the preceding category.
Tax Fees
Tax fees are billed by our independent auditors for tax compliance, tax advice and tax planning.
All Other Fees
All other fees include fees billed by our independent auditors for products or services other than as described in the immediately preceding three categories.
Policy on Pre-Approval of Services Performed by Independent Auditors
It is our Board of Directors policy to pre-approve all audit and permissible non-audit services performed by the independent auditors. We approved all services that our independent accountants provided to us in the past two fiscal years.
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ITEM 15. EXHIBITS
The following exhibits are filed with this Annual Report on Form 10-K:
Exhibit | |
Number | Description of Exhibit |
3.1 | Articles of Incorporation(1) |
3.2 | Bylaws (1) |
3.3 |
Certificate of Amendment of the Certificate of Incorporation filed on March 7, 2012 (3) |
3.4 |
Certificate of Amendment of the Certificate of Incorporation filed on January 6, 2014 (5) |
10.1 |
Patent Transfer and Sales Agreement dated July 27, 2010 (1) |
10.2 |
Quotation from Eyal Artsiely (2) |
10.3 |
Form of Shares for Debt Subscription Agreement for Common Shares (4) |
31.1 | |
31.2 | |
32.1 | |
101.INS |
XBRL Instance Document |
101.SCH |
XBRL Taxonomy Extension Schema |
101.CAL |
XBRL Taxonomy Extension Calculation Linkbase |
101.DEF |
XBRL Taxonomy Extension Definition Linkbase |
101.LAB |
XBRL Taxonomy Extension Label Linkbase |
101.PRE |
XBRL Taxonomy Extension Presentation Linkbase |
(1) |
Filed as an Exhibit to our Registration Statement on Form S-1 filed with the SEC on October 12, 2010 and incorporated herein by this reference. |
(2) |
Filed as an Exhibit to our Registration Statement of Form S-1/A (Amendment No. 3) filed with the SEC on February 28, 2011 and incorporated herein by this reference. |
(3) |
Filed as an Exhibit to our Current Report on Form 8-K filed with the SEC on March 7, 2012 and incorporated herein by this reference. |
(4) |
Filed as an Exhibit to our Current Report on Form 8-K filed with the SEC on October 23, 2013 and incorporated herein by this reference. |
(5) |
Filed as an Exhibit to our Current Report on Form 8-K filed with the SEC on January 10, 2014 and incorporated herein by this reference. |
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SIGNATURES
Pursuant to the requirements of Section 13 and 15 (d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
GOLD UNION INC. | |
Dated: March 25, 2014 | By: /s/ Sae-Chua Supachai |
Sae-Chua Supachai, Chief Executive Officer | |
(Principal Executive Officer, Principal Financial | |
Officer and Principal Accounting Officer) |
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, this report has been signed below by the following persons no behalf of the registrant and in the capacities and on the dates indicated.
Dated: March 25, 2014 | By: /s/ Sae-Chua Supachai |
Sae-Chua Supachai, Chief Executive Officer, | |
Chief Financial Officer and a director | |
Dated: March 25, 2014 | By: /s/ Vincent Kim |
Vincent Kim, Director |
__________