-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LNjk9jzpgc/KXKs9e175sY0MgSqfU1NF48zrDi7AtujgvYMN/JfXO+Gd5NNpQULK 8PTv0Xs6JzIoZf8LYHzDbg== 0001144204-10-055692.txt : 20101027 0001144204-10-055692.hdr.sgml : 20101027 20101027115140 ACCESSION NUMBER: 0001144204-10-055692 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20100930 FILED AS OF DATE: 20101027 DATE AS OF CHANGE: 20101027 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SinoCubate, Inc CENTRAL INDEX KEY: 0001102432 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-AMUSEMENT & RECREATION SERVICES [7900] IRS NUMBER: 980199508 STATE OF INCORPORATION: NV FISCAL YEAR END: 1206 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-29219 FILM NUMBER: 101144222 BUSINESS ADDRESS: STREET 1: 65 BROADWAY STREET 2: SUITE 501 CITY: NEW YORK STATE: NY ZIP: 10006 BUSINESS PHONE: 212-359-4301 MAIL ADDRESS: STREET 1: 65 BROADWAY STREET 2: SUITE 501 CITY: NEW YORK STATE: NY ZIP: 10006 FORMER COMPANY: FORMER CONFORMED NAME: Synthenol Inc DATE OF NAME CHANGE: 20061120 FORMER COMPANY: FORMER CONFORMED NAME: LegalPlay Entertainment Inc DATE OF NAME CHANGE: 20061011 FORMER COMPANY: FORMER CONFORMED NAME: POKER COM INC DATE OF NAME CHANGE: 20000111 10-Q 1 v198988_10q.htm Unassociated Document
 
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:  September 30, 2010

¨
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 x No ¨

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
¨
Accelerated Filer
¨
Non Accelerated Filer
¨
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 x No ¨
 
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 ¨ Not Applicable

APPLICABLE ONLY TO CORPORATE ISSUERS

The number of shares of common stock outstanding as of September 30, 2010 was 995,655.
 

 
 
 

SINOCUBATE, INC.

FORM 10-Q

PART I – FINANCIAL INFORMATION
    
ITEM 1.
FINANCIAL STATEMENTS
  
F-1
 
BALANCE SHEETS (Unaudited)
  
F-2
 
STATEMENT OF OPERATIONS AND COMPREHENSIVE LOSS (Unaudited)
  
F-3
 
STATEMENT OF CASH FLOWS (Unaudited)
  
F-4
 
STATEMENT OF STOCKHOLDERS’ DEFICIENCY (Unaudited)
  
F-5
 
NOTES TO FINANCIAL STATEMENTS (Unaudited)
  
F-8
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
    
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
  
8

 
2
 


PART I – FINANCIAL INFORMATION

ITEM 1.
FINANCIAL STATEMENTS

SINOCUBATE, INC. 
(A Development Stage Company)
FINANCIAL STATEMENTS
September 30, 2010
(Unaudited)

 
F-1
 

SINOCUBATE, INC.
(A Development Stage Company)
BALANCE SHEET
(Unaudited)
(Stated in US Dollars)

  
  
September 30,
  
  
December 31,
  
  
  
2010(unaudited)
  
  
2009(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 09/30/2010
    
—
      
—
  
Common stock, $0.001 par value, 100,000,000 shares authorized, 995,655 shares issued and outstanding as of 09/30/2010
    
996
      
996
  
Additional paid-in capital
    
2,346,665
      
2,334,665
  
Deficit
    
(1,305,454
)
    
(1,305,454
)
Deficit accumulated during the development stage
    
(1,042,207
)
    
(1,030,207
)
                 
   
$
—
    
$
—
  
SEE ACCOMPANYING NOTES

 
F-2
 

SINOCUBATE, INC.
(A Development Stage Company)
STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS
(Unaudited)
(Stated in US Dollars)
  
  
Three months ended
  
  
Nine months ended
  
  
January 1, 2004
(Date of Inception of
the Development 
Stage) to
  
  
  
September 30,
  
  
September 30
  
  
September 30,
  
   
2010
    
2009
    
2010
    
2009
    
2010
  
General and administrative expenses
                              
Amortization
  
$
-
    
$
-
    
$
-
    
$
-
    
$
27,077
  
Bad debt
    
-
      
-
      
-
      
-
      
525
  
Corporate promotion
                                    
13,920
  
Finance charges
            
-
              
-
      
27,397
  
Insurance
                                    
15,901
  
Interest on notes payable
            
-
              
-
      
34,648
  
Management and consultant fees
            
-
              
-
      
314,374
  
Office supplies and services
    
  1,000
      
-
      
  3,000
      
-
      
50,744
  
Professional fees
    
3,000
      
       4,000
      
9,000
      
13,802
      
318,517
  
Rent
    
-
      
-
              
-
      
16,311
  
Wages
                                    
84,258
  
                                         
Loss before other items
    
(4,000
)
    
(4,000
)
    
(12,000
)
    
(13,802
)
    
(903,672
)
 
                                       
Other items
    
  
                                  
Loss on disposition of equipment
    
-
      
-
      
-
      
-
      
(15,028
)
Write-down of intangible assets
    
-
      
-
      
-
      
-
      
(50,001
)
Write-off of payables
            
-
              
-
      
73,607
  
Write-off of notes payable
              
-
                    
14,823
  
Gain on settlement of lawsuit
            
-
                      
44,445
  
Gain on sales of investment
                            
-
      
31,874
  
Other income
            
-
              
-
      
42,530
  
                                         
Income (loss) from continuing operations
    
(4,000
) 
    
(4,000
 )     
(12,000)
      
(13,802
 )     
(761,422
)
                                         
Operating income (loss) from discontinued Operations
                                    
(388,905
)
Gain (Loss) on sale of discontinued operations
            
-
              
-
      
108,120
  
                                         
Net income (loss)
  
$
(4,000
) 
  
$
(4,000
 )   
$
(12,000
) 
  
$
(13,802
 )   
$
(1,042,207
)
                                         
Basic and diluted income (loss) per common share
  
$
(0.004
) 
  
$
(0.004
 )   
$
(0.01
) 
  
$
(0.01
 )         
 
                                       
Weighted average number of common share outstanding – basic and diluted
    
995,655,
      
995,655
      
995,655
      
995,655
          
                                         
Comprehensive loss
                                        
Net income (loss)
  
$
(4,000
) 
  
$
(4,000
 )   
$
(12,000
) 
  
$
(13,802
 )   
$
(1,042,207
)
Foreign currency translation adjustment
            
-
              
-
          
Total comprehensive income(loss)
  
$
(4,000
) 
  
$
(4,000
 )   
$
(12,000
) 
  
$
(13,802
 )   
$
(1,042,207
)

SEE ACCOMPANYING NOTES

 
F-3
 

SINOCUBATE, INC.
(A Development Stage Company)
STATEMENT OF CASH FLOWS
(Unaudited)
(Stated in US Dollars)

  
  
  
  
  
  
  
  
January 1, 2004
  
  
  
  
  
  
  
  
  
(Date of
Inception
  
  
  
  
  
  
  
  
  
of the
Development
  
  
  
Nine months ended
  
  
Stage) to
  
  
  
September 30,
  
  
September 30,
  
   
2010
    
2009
    
2010
  
Cash flows from operating activities
                  
Net income (loss)
  
$
(12,000
) 
  
$
(13,802
)
  
$
(1,042,207
)
Adjustments to reconcile net loss to net cash used in operating activities:
                        
Finance charges
    
-
      
-
      
27,387
  
Accrued interest on notes payable
    
-
      
-
      
31,414
  
Amortization
    
-
      
-
      
27,077
  
Accrued Expenses and service costs assumed by majority shareholder
    
12,000
      
13,802
      
89,310
  
Foreign exchange effect on notes payable
    
-
      
-
      
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
    
-
      
-
      
(18,729
)
Gain on settlement of lawsuit
    
-
      
-
      
(44,445
)
Gain on sale of discontinued operations
    
-
      
-
      
(108,121
)
Gain on sale of investments
    
-
      
-
      
(31,874)
  
Other Income
    
-
      
-
      
(45,530)
  
Changes in non-cash working capital items:
    
-
      
-
      
-
  
Accounts payable and accrued liabilities
    
-
      
-
      
143,521
  
Cash used in continuing operations
    
-
      
-
      
(422,836
)
Discontinued operations
    
-
        
-
    
(171,213
)
 
                       
Net cash used in operating activities
    
-
      
-
      
(640,784
)
 
                       
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
    
-
      
-
      
(14,734
) 
 
                       
Change in cash from continuing operations
            
-
      
(209,518
) 
 
   
-
                  
Cash, beginning of period
            
-
      
209,518
  
 
   
-
                  
Cash, ending of period
  
$
-
      
-
    
$
-
  
 
Supplemental cash flow information

SEE ACCOMPANYING NOTES

 
F-4
 

SINOCUBATE, INC.
 (A Development Stage Company)
STATEMENT OF STOCKHOLDERS’ DEFICIENCY
(Unaudited)
(Stated in US Dollars)
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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-5
 
 
SINOCUBATE, INC.
 (A Development Stage Company)
STATEMENT OF STOCKHOLDERS’ DEFICIENCY
(Unaudited)
(Stated in US Dollars)
 
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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-6
 

SINOCUBATE, INC.
 (A Development Stage Company)
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ DEFICIENCY
(Unaudited)
(Stated in US Dollars)

  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
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
) 
                                    
-
  
Service costs assumed by 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
                                   <