VIKING ENERGY GROUP, INC. - Quarter Report: 2009 June (Form 10-Q)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

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

For the quarterly period ended: June 30, 2009

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

For the transition period from ______________ to _______________

Commission file number 000-29219

SINOCUBATE, INC.

(Exact name of registrant as specified in its charter)

Nevada		98-0199508
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)

65 Broadway, 7th Floor New York, New York		10006
(Address of principal executive offices)		(Zip Code)

Issuer’s telephone number

(212) 359 4300

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes

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.

Large Accelerated Filer	o	Accelerated Filer	o
Non Accelerated Filer	o	Smaller Reporting Company	x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes

No o

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS DURING

THE PRECEDING FIVE YEARS:

Indicate by check mark whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Securities Exchange Act of 1934 subsequent to the distribution of securities under a plan confirmed by a court.

Yes

No o Not Applicable

APPLICABLE ONLY TO CORPORATE ISSUERS

The number of shares of common stock outstanding as of June 30, 2009 was 995,655.

SINOCUBATE, INC.

FORM 10-Q

PART I – FINANCIAL INFORMATION		F-1
ITEM 1.	FINANCIAL STATEMENTS	F-1
	BALANCE SHEETS (Unaudited)	F-1
	STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)	F-2
	STATEMENT OF CASH FLOWS (Unaudited)	F-3
	STATEMENT OF STOCKHOLDERS’ DEFICIENCY	F-4
	NOTES TO FINANCIAL STATEMENTS (Unaudited)	F-7
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	3
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	6
ITEM 4.	CONTROLS AND PROCEDURES	6
PART II – OTHER INFORMATION		6
ITEM 1.	LEGAL PROCEEDINGS	6
ITEM 1A.	RISK FACTORS	7
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	7
ITEM 3.	DEFAULTS UPON SENIOR SECURITIES	7
ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS	7
ITEM 5.	OTHER INFORMATION	7
ITEM 6.	EXHIBITS	7
SIGNATURES		7

PART I – FINANCIAL INFORMATION

ITEM 1.

FINANCIAL STATEMENTS

SINOCUBATE, INC.

(A Development Stage Company)

BALANCE SHEETS

(Unaudited)

	June 30,			December 31,
	2009(unaudited)			2008(audited)

ASSETS	$	—		$	—

LIABILITIES AND STOCKHOLDERS’ DEFICIENCY		—			—

Capital stock
Preferred stock, $0.001 par value, 5,000,000 shares authorized, no shares issued or outstanding as of 06/30/2009
Common stock, $0.001 par value, 100,000,000 shares authorized, 995,655 shares issued and outstanding as of 06/30/2009		996			996
Additional paid-in capital		2,292,443			2,282,641
Deficit		(1,305,454	)		(1,305,454	)
Deficit accumulated during the development stage		(987,985	)		(978,183	)

	$	—		$	—

SEE ACCOMPANYING NOTES

F-1

SINOCUBATE, INC.

(A Development Stage Company)

STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS

(Unaudited)

	Three months ended, June 30, 2009						Six months ended June 30,						January 1, 2004 (Date of Inception of the Development Stage) to June 30,
	2009			2008			2009			2008			2009
General and administrative expenses
Amortization	$	-		$	-		$	-		$	-		$	27,077
Bad debt		-			-			-			-			525
Corporate promotion		-			-			-			-			13,920
Finance charges		-			12,051			-			16,102			27,397
Insurance					-			-			-			15,901
Interest on notes payable		-			3,079			-			7,986			34,648
Management and consultant fees		-			26,625			-			50,981			290,354
Office supplies and services		-			2,628			-			3,337			43,240
Professional fees		4,000			12,810			9,802			18,810			295,819
Rent		-			-			-			-			16,311
Wages		-						-			-			84,258

Loss before other items		(4,000	)		(57,192	)		(9,802	)		(97,216	)		(849,450	)

Other items
Loss on disposition of equipment		-			-			-			-			(15,028	)
Write-down of intangible assets					-			-			-			(50,001	)
Write-off of payables		-			36,567			-			36,567			73,607
Write-off of notes payable		-			-			-			-			14,823
Gain on settlement of lawsuit		-			-			-			-			44,445
Gain on sale of investment		-			-			-			-			31,874
Other income		-			-			-			- -			42,530

Income (loss) from continuing operations		(4,000	)		(20,626	)		(9,802	)		(60,649	)		(707,200	)

Operating loss (income) from discontinued operations		-			78,436			-			78,436			(388,905	)

Gain on sales of discontinued operations		-			-			-			-			108,120

Net income (loss)	$	(4,000	)	$	57,810		$	(9,802	)	$	17,787		$	(987,985	)

Basic and diluted income (loss) per
Common share – continuing operations		(0.004	)		0.08			(0.01	)		0.02

Weighted average number of common share outstanding – basic and diluted		995,655			731,522			995,655			731,522

Comprehensive income (loss)
Net income (loss)	$	(4,000	)	$	57,810		$	(9,802	)	$	17,787		$	(987,985	)
Foreign currency translation adjustment		-			1,443			-			821			-
Total comprehensive income (loss)	$	(4,000	)	$	59,253		$	(9,802	)	$	18,608		$	(987,985	)

SEE ACCOMPANYING NOTES

F-2

SINOCUBATE, INC.

(A Development Stage Company)

STATEMENT OF CASH FLOWS

(Unaudited)

	Six months ended				January 1, 2004 (Date of Inception of the Development Stage) to
	June 30,				June 30,
	2009		2008		2009
Cash flows from operating activities
Net income (loss)	$	(9,802)	$	17,787	$	(987,985	)
Adjustments to reconcile net loss to net cash used in operating activities:
Finance charges		—		16,102		27,387
Accrued interest on notes payable		—		7,986		31,414
Amortization		—		—		27,077
Accrued expenses		9,802				59,108
Foreign exchange effect on notes payable		—		(2,798)		5,303
Issuance of common stock for services		—		—		1,000
Stock-based compensation		—		—		4,460
Loss on disposition of equipment		—		—		225,184
Write-down of intangible assets		—		—		360,001
Write-off of payables		—		—		(73,607	)
Write-off of notes payable		—		(36,567)		(18,729	)
Gain on settlement of lawsuit		—		—		(44,445	)
Gain on sales of discontinued operations		—		(78,437)		(108,121	)
Gain on sale of investments		—		—		(31,874	)
Other income		—		—		(42,530	)
Changes in non-cash working capital items:
Accounts payable and accrued liabilities		—		10,013		143,521
Cash used in continuing operations		—		(65,914)		(422,836	)
Discontinued operations		—		(362)		(171,213	)

Net cash used in operating activities		—		(66,276)		(594,049	)

Cash flows from investing activities
Proceeds from sale of subsidiary				-		1
Proceeds from assets disposition		—		-		5,458
Purchase of equipment				-		(5,808	)
Net cash used in investing activities		—		-		(349	)

Cash flows from financing activities
Settlement of notes payable		—		-		398,614
Proceeds from issuance of common stock		—		-		1,000
Net cash provided by financing activities		—		-		399,614

Effect of exchange rate changes on cash		—		821		(14,734	)
Change in cash		—		(65,455)		(209,518	)
Cash, beginning of period		—		66,273		209,518
Cash, ending of period	$	—	$	818	$	—

F-3

SINOCUBATE, INC.

(A Development Stage Company)

STATEMENT OF STOCKHOLDERS’ DEFICIENCY

														Accumulated						Deficit Accumulated
								Additional						Other						During the
	Common Shares				Treasury			Paid-in			Subscriptions			Comprehensive						Development
	Number		Amount		Stock			Capital			Received			Income			Deficit			Stage		Total
May 3, 1989 (Inception) through December 31, 1997		60,022	$	600	$	-		$	9,400		$	-		$	-		$	(10,000	)	$	-	$	-
Net loss		-		-		-			-			-			-			(148,931	)		-		(148,931	)
Shares issued for cash		180,000		1,800		-			148,200			2,000			-			-			-		152,000
Balance at December 31, 1998		240,022		2,400		-			157,600			2,000			-			(158,931	)		-		3,069
Net loss		-		-		-			-			-			-			(511,587	)		-		(511,587	)
Foreign currency translation adjustment		-		-		-			-			-			(14,130	)		-			-		(14,130	)
Share issued for services		15,000		150		-			124,850			-			-			-			-		125,000
Subscription receivable		12,000		120		-			99,880			8,000			-			-			-		108,000
Share issued for intangible assets		15,000		150		-			124,850			-			-			-			-		125,000
Balance at December 31, 1999		282,022		2,820		-			507,180			10,000			(14,130	)		(670,518	)		-		(164,648	)
Net loss		-		-		-			-			-			-			(339,063	)		-		(339,063	)
Foreign currency translation adjustment		-		-		-			-			-			18,885			-			-		18,885
Shares issued for cash		21,600		216		-			259,784			-			-			-			-		260,000
Shares issued for settlement of debt		4,500		45		-			174,955			-			-			-			-		175,000
Subscription receivable		600		6		-			9,994			(200	)		-			-			-		9,800
Subscription received		30,000		300		-			499,700			(9,350	)		-			-			-		490,650
Stock option benefit		-		-		-			14,235			-			-			-			-		14,235
Balance at December 31, 2000		338,722		3,387		-			1,465,848			450			4,755			(1,009,581	)		-		464,859
Net loss		-		-		-			-			-			-			375,621			-		375,621
Foreign currency translation adjustment		-		-		-			-			-			13,629			-			-		13,629
Shares issued for cash		300		3		-			2,247			-			-			-			-		2,250
Subscription received		-		-		-			-			200			-			-			-		200
Stock option benefit		-		-		-			118,920			-			-			-			-		118,920
Repurchase of common stock for treasury		-		-		(270	)		(6,611	)		-			-			-			-		(6,881	)
Balance at December 31, 2001		339,022		3,390		(270	)		1,580,404			650			18,384			(633,960	)		-		968,598
Net loss		-		-		-			-			-						(63,864	)		-		(63,864	)
Foreign currency translation adjustment		-		-		-			-						(1,155	)					-		(1,155	)
Shares issued for cash		4,500		45		-			33,705			-			-			-			-		33,750
Balance at December 31, 2002		343,522	$	3,435	$	(270	)	$	1,614,109		$	650		$	17,229		$	(697,824	)	$	-	$	937,329

SEE ACCOMPANYING NOTES

F-4

SINOCUBATE, INC.

(A Development Stage Company)

STATEMENT OF STOCKHOLDERS’ DEFICIENCY

																			Deficit
													Accumulated						Accumulated
								Additional					Other						During the
	Common Shares				Treasury			Paid-in		Subscriptions			Comprehensive						Development
	Number		Amount		Stock			Capital		Received			Income			Deficit			Stage			Total
Balance at December 31, 2002		343,522		3,435		(270	)		1,614,109		650			17,229			(697,824	)		-			937,329
Net loss		-		-		-			-		-			-			(607,630	)		-			(607,630	)
Foreign currency translation adjustment		-		-		-			-		-			1,752			-			-			1,752
Stock option benefit		-		-		-			11,800					-			-			-			11,800
Cancellation of agreement		-		-		-					(650	)		-			-			-			(650	)
Share issues for cash on exercise of options		12,000		120		-			11,880		-			-			-			-			12,000
Share issues for consulting services		45,000		450		-			49,675		-			-			-			-			50,125
Share issues for intangible assets		60,000		600		-			104,400		-			-			-			-			105,000
Share issued for software		60,000		600		-			53,400		-			-			-			-			54,000
Balance at December 31, 2003		520,522		5,205		(270	)		1,845,264		-			18,981			(1,305,454	)		-			563,726
Net loss		-		-		-			-		-			-			-			(795,364	)		(795,364	)
Foreign currency translation adjustment		-		-		-			-		-			(238	)		-			-			(238	)
Stock-based compensation		-		-		-			4,460		-			-			-			-			4,460
Shares issued for cash on exercise of options		1,000		10		-			990		-			-			-			-			1,000
Share issued for debt		140,000		1,400		-			68,600		-			-			-			-			70,000
Share issued for consulting services		2,000		20		-			980		-			-			-			-			1,000
Balance at December 31, 2004		663,522		6,635		(270	)		1,920,294		-			18,743			(1,305,454	)		(795,364	)		(155,416	)
Net loss		-		-		-			-		-			-			-			(54,416	)		(54,416	)
Foreign currency translation adjustment		-		-		-			-		-			(702	)		-			-			(702	)
Share issues for consulting services		18,000		180		-			8,820		-			-			-			-			9,000
Balance at December 31, 2005		681,522		6,815		(270	)		1,929,114		-			18,041			(1,305,454	)		(849,780	)		(201,534	)
Net loss		-		-		-			-		-			-			-			(36,575	)		(36,575	)
Foreign currency translation adjustment		-		-		-			-		-			563			-			-			563
Share issues for debt		50,000		500		-			24,500		-			-			-			-			25,000
Balance at December 31, 2006		731,522	$	7,315	$	(270	)	$	1,953,614	$	-		$	18,604		$	(1,305,454	)	$	(886,355	)	$	(212,546	)

SEE ACCOMPANYING NOTES

F-5

SINOCUBATE, INC.

(A Development Stage Company)

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY

																		Deficit
												Accumulated						Accumulated
								Additional				Other						During the
	Common Shares				Treasury			Paid-in		Subscriptions		Comprehensive						Development
	Number		Amount		Stock			Capital		Received		Income			Deficit			Stage			Total
Balance at December 31, 2006		731,522	$	7,315	$	(270	)	$	1,953,614	$	-	$	18,604		$	(1,305,454	)	$	(886,355	)	$	(212,546	)
Net loss		-		-		-			-		-		-			-			(170,950	)		(170,950	)
Discount on notes payable		-		-		-			20,573		-		-			-			-			20,573
Foreign currency translation adjustment		-		-		-			-		-		(13,391	)		-			-			(13,391	)
Balance at December 31, 2007		731,522		7,315		(270	)		1,974,187		-		5,213			(1,305,454	)		(1,057,305	)		(376,314	)
Issuance of new shares		284,637		2,846					267,559													270,405
Cancellation of shares		(20,504)		(205)		270			(65)													-
Donation from majority stockholder									32,000													32,000
Change in par value of common share from $0.01 per share to $0.001 per share				(8,960)					8,960
Net income		-		-		-			-		-		-			-			79,122			79,122
Foreign currency translation adjustment		-		-		-			-		-		(5,213	)		-						(5,213	)
Balance at December 31, 2008 (audited)		995,655	$	996	$	—		$	2,282,641	$	—	$	—		$	(1,305,454	)	$	(978,183	)	$	—
Donation from majority shareholders									9,802													9,802
Net loss																			(9,802)			(9,802)
Balance at June 30, 2009(unaudited)		995,655	$	996		—		$	2,292,443		—		—			(1,305,454	)		(987,985	)		—

SEE ACCOMPANYING NOTES

F-6

SINOCUBATE, INC.

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

June 30, 2009

(Unaudited)

Note 1

Interim Financial Statements

The foregoing unaudited interim financial statements have been prepared in accordance with generally accepted accounting principles or GAAP for interim financial information and with the instructions to Form 10-Q as promulgated by the Securities and Exchange Commission or the SEC. Accordingly, these financial statements do not include all of the disclosures required by generally accepted accounting principles for complete financial statements. The accompanying unaudited financial statements and related notes should be read in conjunction with the audited financial statements and the Form 10-K of the Company for the year ended December 31, 2008. In the opinion of management, the unaudited interim financial statements furnished herein include all adjustments, all of which are of a normal recurring nature, necessary for a fair statement of the results for the interim period presented.

The results of operations for such periods are not necessarily indicative of the results expected for a full year or for any future period.

Note 2

Nature of business and going concern

The Company was incorporated under the laws of the State of Florida on May 3, 1989 as Sparta Ventures Corp. and remained inactive until June 27, 1998. The name of the Company was changed to Thermal Ablation Technologies Corporation on October 8, 1998 and then to Poker.com, Inc. on August 10, 1999. On September 15, 2003, the Company changed its name to LegalPlay Entertainment Inc. and November 8, 2006, the name of the Company was changed to Synthenol Inc. The Company’s business through December 31, 2003 was primarily related to the operations of online gaming. In 2004, the Company discontinued the online gaming operations and redirected its business strategy to acquisition and marketing of new poker software to on-line gaming websites worldwide. The Company is a development stage company as defined by Statement of Financial Accounting Standards or SFAS No. 7, “Development Stage Enterprises.”

On August 15, 2008, pursuant to a stock purchase agreement, Viking Investments Group LLC or Viking acquired 366,520 shares of the Company’s common stock from certain of the Company’s stockholders for $350,000 in cash. In connection with the acquisition of the shares, certain promissory notes and debt in the aggregate principal amount of $243,500 owed to the selling stockholders by the Company were assigned by the stockholders to Viking as reported on a Current Report on Form 8-K filed with the SEC on August 21, 2008. The shares acquired by Viking represented approximately 50.1% of the Company’s then issued and outstanding capital stock calculated on a diluted basis and the sale of the shares represented a change of control of the Company.

On September 29, 2008, the Board of Directors of the Company ratified the cancellation of shares (aggregate of 20,504 shares) of common stock previously held by the Company in its treasury. The cancellation of the shares, which were effective on September 23, 2008, reduced the number of issued and outstanding shares of common stock of the Company from 1,016,159 to 995,655 shares as of the date of this Report.

F-7

SINOCUBATE, INC.

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

June 30, 2009

(Unaudited)

Effective November 3, 2008, the Company merged with and into its wholly-owned subsidiary, SinoCubate, Inc., a newly formed Nevada corporation, which remains the surviving entity of the merger. SinoCubate was formed in the State of Nevada on September 11, 2008. The merger has resulted in a change of name of the Company from Synthenol Inc. to SinoCubate, Inc. and a change in the state of incorporation of the Company from Florida to Nevada. Pursuant to the terms of an agreement and plan of merger dated September 29, 2008 (attached as exhibit to a Definitive Information Statement on Schedule 14C filed with the SEC on October 14, 2008) and effective as of November 3, 2008, SinoCubate possesses all the rights, privileges, powers of the Company, and the Company’s debts and liabilities are now debts and liabilities of SinoCubate. In addition, all the issued and outstanding shares of common stock of Synthenol were automatically converted into shares of SinoCubate common stock at the rate of one share of SinoCubate common stock, par value $0.001 per share. The articles of incorporation and bylaws of SinoCubate now govern the Company.

Prior to August 15, 2008, the Company disposed of its subsidiaries and made settlements with its creditors, leaving the company with no significant assets and liabilities. The new management of the Company decided to focus on a new business strategy pursuant to which the Company will seek to enter into contractual arrangements with entities that enables the Company to either purchase outright the assets and/or business operations of such entities or to enter into business arrangements, such as joint ventures or similar combinations with such entities to manage and operate such entities.

As of the date of this Report, the Company has not entered into an agreement with any entity and there can be no assurance that the Company will ever be able to identify and enter into an agreement with an entity or whether, if the Company successful enters into an agreement with a suitable entity, such combination may become successful and/or profitable.

Note 3

Summary of Significant Accounting Policies

Basis of Presentation and Going Concern Assumption

The financial statements of the Company have been prepared in accordance with GAAP and are expressed in U.S. dollars. The Company’s fiscal year-end is December 31.

These financial statements have been prepared in accordance with GAAP applicable to a going concern, which assumes that the Company will be able to meet its obligations and continue its operations for its next fiscal year. Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities should the Company be unable to continue as a going concern. At June 30, 2009, the Company has accumulated losses of $2,289,439 since its inception and expects to incur further losses in the development of its business, both of which casts substantial doubt about the Company’s ability to continue as a going concern. The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. The Company’s current business plan is to seek, investigate, and, if warranted, enter into contractual arrangements with entities that enables the Company to either purchase outright the assets and and/or business operations of such entities or to enter into business arrangements, such as joint ventures or similar combinations with such entities to manage and operate such entities as affiliated entities of the Company.

F-8

SINOCUBATE, INC.

(A Development Stage Company)

NOTES TO FINANCIAL STATEMENTS

June 30, 2009

(Unaudited)

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts and timing of revenues and expenses, the reported amounts and classification of assets and liabilities, and disclosure of contingent assets and liabilities. The Company’s actual results could vary materially from management’s estimates and assumptions. Significant areas requiring the use of management estimates relate to the determination expected tax rates for future income tax recoveries and determining the fair values of financial instruments.

Foreign Currency Translation

For the year ended December 31, 2008 and the quarter ended June 30, 2009, the Company’s functional currency and the reporting currency are the United States dollar. Monetary assets and liabilities denominated in foreign currencies are translated into United States dollar equivalents at rates of exchange in effect at the balance sheet date. Non-Monetary items are translated at historical rates. Average rates for the year are used to translate revenues and expenses. The gains and losses arising from foreign currency translations are included in results of operations.

Other Comprehensive Income

SFAS No. 130 “Reporting Comprehensive Income,” establishes standards for the reporting and display of comprehensive income and its components in the financial statements. For the quarters ended June 30, 2008 and 2009, comprehensive income (loss) was $18,608 and ($9,802), respectively.

Income Taxes

The Company uses the asset and liability method of accounting for income taxes pursuant to SFAS No. 109 "Accounting for Income Taxes". Under this method, deferred income tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled.

Note 4

Related Party Transactions

For the six months ended June 30, 2009, Viking, the majority stockholder of the Company, would pay the professional fee in the amount of $9,802, for the Company and assumed the expenses on its own.

Note 5

Supplemental Cash Flow Information

	Six months ended June 30,				January 1, 2004 (Date of Inception of the Development Stage) to June 30,
	2009		2008		2009

Cash paid for:
Interest	$	-	$	-	$	-
Income taxes (recovery)	$	-	$	-	$	(3,934	)

Common shares issued to settle notes payable	$	-	$	-	$	295,405
Expenses assumed by principal stockholders	$	9,802	$	-	$	41,802

F-9

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

In preparing the management’s discussion and analysis, the registrant presumes that you have read or have access to the discussion and analysis for the proceeding fiscal year.

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS

This document includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 or the Reform Act. All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, any projections of earning, revenue or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new services or developments; any statements regarding future economic conditions of performance; and statements of belief; and any statements of assumptions underlying any of the foregoing. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others, the following: our ability to raise capital and the terms thereof; ability to gain an adequate player base to generate the expected revenue; competition with established gaming websites; adverse changes in government regulations or polices; and other factors referenced in this Form 10-Q.

The use in this Form 10-Q of such words as “believes”, “plans”, “anticipates”, “expects”, “intends”, and similar expressions are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements present the Company’s estimates and assumptions only as of the date of this Report. Except for the Company’s ongoing obligation to disclose material information as required by the federal securities laws, the Company does not intend, and undertakes no obligation, to update any forward-looking statements.

Although the Company believes that the expectations reflected in any of the forward-looking statements are reasonable, actual results could differ materially from those projected or assumed or any of the Company’s forward-looking statements. The Company’s future financial condition and results of operations, as well as any forward-looking statements, are subject to change and inherent risks and uncertainties.

PLAN OF OPERATIONS

Overview

The Company’s current business plan is to seek, investigate, and, if warranted, enter into contractual arrangements with entities that enables the Company to either purchase outright the assets and and/or business operations of such entities or to enter into business arrangements, such as joint ventures or similar combinations with such entities to manage and operate such entities as affiliated entities of the Company.

As of the date of this Report, the Company has not entered into an agreement with any such entity and there can be no assurance that the Company will ever be able to identify and enter into an agreement with an entity or whether, if the Company successful enters into an agreement with an entity, such combination may become successful and/or profitable.

The Company is in immediate need of further working capital and options are being explored with respect to financing in the form of debt, equity or a combination thereof.

Investigation and Selection of Business Opportunities

To a large extent, a decision to participate in a specific contractual arrangement may be made upon the principal shareholders’ analysis of the quality of the other company’s management and personnel, the anticipated acceptability of new products or marketing concepts, the merit of technological changes, the perceived benefit the Company will derive from entering into such an arrangement, and numerous other factors which are difficult, if not impossible, to analyze through the application of any objective criteria. In many instances, it is anticipated that the historical operations of a specific business opportunity may not necessarily be indicative of the potential for the future because of the possible need to access capital, shift marketing approaches substantially, expand significantly, change product emphasis, change or substantially augment management, or make other changes. The Company will be dependent upon the owners of a business opportunity to identify any such problems which may exist and to implement, or be primarily responsible for the implementation of, required changes. Because the Company may participate in a business opportunity with a newly organized firm or with a firm which is entering a new phase of growth, it should be emphasized that the Company will incur further risks, because management in many instances will not have proved its abilities or effectiveness, the eventual market for such company’s products or services will likely not be established, and such company may not be profitable when acquired.

It is emphasized that the Company may effect transactions having a potentially adverse impact upon the Company’s shareholders pursuant to the authority and discretion of the Company’s management and board of directors without submitting any proposal to the stockholders for their consideration. Holders of the Company’s securities should not anticipate that the Company will necessarily furnish such holders, prior to any contractual arrangement or combination, with financial statements, or any other documentation, concerning a target company or its business. In some instances, however, a proposed arrangement may be submitted to the stockholders for their consideration, either voluntarily by such directors to seek the stockholders’ advice and consent or because federal and/or state law so requires.

The Company is unable to predict when it may participate in a business opportunity. Prior to making a decision to participate in a business opportunity, the Company will generally request that it be provided with written materials regarding the business opportunity containing such items as a description of products, services and company history; management resumes; financial information; available projections, with related assumptions upon which they are based; an explanation of proprietary products and services; evidence of existing patents, trademarks, or services marks, or rights thereto; present and proposed forms of compensation to management; a description of transactions between such company and its affiliates during relevant periods; a description of present and required facilities; an analysis of risks and competitive conditions; a financial plan of operation and estimated capital requirements; audited financial statements, or if they are not available, unaudited financial statements, together with reasonable assurances that audited financial statements would be able to be produced within a reasonable period of time following completion of a merger transaction; and other information deemed relevant.

As part of the Company’s investigation, the Company’s officers may meet personally with management and key personnel of the target entity, may visit and inspect material facilities, obtain independent analysis or verification of certain information provided, check references of management and key personnel, and take other reasonable investigative measures, to the extent of the Company’s limited financial resources.

There are no loan arrangements or arrangements for any financing whatsoever relating to any business opportunities is currently available.

Going Concern Qualification

The Company’s ability to continue as a going concern is dependent upon its ability to generate future profitable operations and/or to obtain the necessary financing to meet its obligations and repay its liabilities arising from normal business operations when they come due. Management has no formal plan in place to address this concern but considers that the Company will be able to obtain additional funds by equity financing and/or related party advances; however there is no assurance of additional funding being available.

RESULTS OF CONTINUING OPERATIONS

The following discussion of the financial condition and results of operation of the Company should be read in conjunction with the Financial Statements and the related Notes included elsewhere in this Report.

Six months ended June 30, 2009 compared to the six months ended June 30, 2008

Liquidity and Capital Resources

At June 30, 2009, the Company had no cash holding compared to $818 at June 30, 2008. The decrease in cash was mainly due to payments of G&A expenses and the discharge of liabilities.

The Company is in immediate need of further working capital and options may be considered with respect to financing in the form of debt, equity or a combination thereof.

The ability of the Company to continue as a going concern and fund its operations through the remainder of 2009 is contingent upon being able to raise funds through either equity or debt financing or a combination of both. The Company is not currently pursuing or negotiating either financing option; however we believe, but cannot provide assurance, that the Company should be able to obtain financing to fund its liabilities as they come due.

Revenue

The Company had no net sales for the six months ended June 30, 2009 or June 30, 2008.

Expenses

Operating expenses for the six months ended June 30, 2009 were $9,802 compared to $60,649 for the six months ended June 30, 2008, a decrease due mainly to lower finance charges, management and consulting fees.

Net Loss

The Company incurred a net loss of $9,802 for the six months ended June 30, 2009 compared with net income of $17,787 for the six months ended June 30, 2008. The increase in net loss was mainly due to no asset disposal in the six months ended June 30, 2009 compared to the same period of 2008.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The Company has adopted various accounting policies that govern the application of accounting principles generally accepted in the United States of America in the preparation of the Company’s financial statements which requires it to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes.

Although these estimates are based on management’s knowledge of current events and actions the Company may undertake in the future, the final results may ultimately differ from actual results. Certain accounting policies involve significant judgments and assumptions, which have a material impact on the Company’s financial condition and results. Management believes its critical accounting policies reflect its most significant estimates and assumptions used in the presentation of the Company’s financial statements. The Company’s critical accounting policies include debt management and accounting for stock-based compensation. The Company does not have off-balance sheet arrangements, financings, or other relationships with unconsolidated entities or other persons, also known as “special purpose entities”.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

As a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934, the Company is not required to provide the information under this item.

ITEM 4.

CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

The Company does not currently maintain controls and procedures that are designed to ensure that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act are recorded, processed, summarized, and reported within the time periods specified by the Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to provide reasonable assurance that information required to be disclosed by the Company in the reports it files or submits under the Exchange Act is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

Under the supervision and with the participation of management, including the Company’s Chief Executive Officer, the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) as of June 30, 2009 have been evaluated, and, based upon this evaluation, the Company’s Chief Executive Officer has concluded that these controls and procedures are effective in providing reasonable assurance of compliance.

Changes in Internal Control over Financial Reporting

During the six months ended June 30, 2009, management took steps to improve the internal controls over financial reporting by (1) searching for outside directors to establish an effective audit committee, (2) utilizing existing office staff in order to remedy the segregation of duties deficiencies, (3) writing accounting and financial reporting procedures to comply with the requirements of GAAP and SEC disclosures, and (4) following the newly written accounting and financial reporting procedures in (3) which tightens the control over the period ends.

Management and directors will continue to monitor and evaluate the effectiveness of the Company's internal controls and procedures and the Company's internal controls over financial reporting on an ongoing basis and are committed to taking further action and implementing additional enhancements or improvements, as necessary and as funds allow.

PART II—OTHER INFORMATION

ITEM 1.

LEGAL PROCEEDINGS

None.

ITEM 1A.

RISK FACTORS

As a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934, the Company is not required to provide the information under this item.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

None.

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

None.

ITEM 4.

SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 5.

OTHER INFORMATION

None.

ITEM 6.

EXHIBITS

Exhibit Number		Description
31.1		Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer and Chief Financial Officer

32.1		Certificate of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350

SIGNATURES

Pursuant to the requirements 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.

SINOCUBATE, INC.

(Registrant)

/s/ Tom Simeo		Date: August 3, 2009
Tom Simeo Chief Executive Officer, Treasurer Director and Secretary