0001262463-14-000362.txt : 20140429 0001262463-14-000362.hdr.sgml : 20140429 20140429120004 ACCESSION NUMBER: 0001262463-14-000362 CONFORMED SUBMISSION TYPE: 10-K/A PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20130630 FILED AS OF DATE: 20140429 DATE AS OF CHANGE: 20140429 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Plandai Biotechnology, Inc. CENTRAL INDEX KEY: 0001317880 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 453642179 FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 000-51206 FILM NUMBER: 14792357 BUSINESS ADDRESS: STREET 1: 2226 EASTLAKE AVENUE EAST #156 CITY: SEATTLE STATE: WA ZIP: 98102 BUSINESS PHONE: (435) 881-8734 MAIL ADDRESS: STREET 1: 2226 EASTLAKE AVENUE EAST #156 CITY: SEATTLE STATE: WA ZIP: 98102 FORMER COMPANY: FORMER CONFORMED NAME: Diamond Ranch Foods, Ltd., NEW DATE OF NAME CHANGE: 20050215 10-K/A 1 plpl10k2013.htm FORM 10-K

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-K/A
(Amendment No. 2)

 

(Mark One)


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

 

For the fiscal year ended June 30, 2013

 

¨ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission File Number 000-51206

PLANDAÍ BIOTECHNOLOGY, INC.

(Name of small business issuer in its charter)

 

Nevada 20-1389815
(State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.)
   
2226 Eastlake Avenue East #156, Seattle, WA 98102
(Address of principal executive offices) (Zip Code)
   
Registrant’s telephone number, including area code:  (435) 881-8734
 
Securities registered under Section 12(b) of the Exchange Act: None
   
Securities registered under Section 12(g) of the Exchange Act: Common stock, par value $0.0001 per share
  (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 ¨ No x

 

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

 

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the last 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 has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No ¨

 

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

 

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

 

  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 ¨ No x


State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of June 30, 2013: $19,894,000.

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As of September 20, 2013, the registrant had 106,270,760 outstanding shares of Common Stock.


Documents incorporated by reference: None.

 

Explanatory Note:

 

This Amendment No. 2 on Form 10-K/A amends the Registrant’s Form 10-K/A, filed on November 27, 2017 and Annual Report filed on Form 10-K on September 30, 2013 with the Securities and Exchange Commission. Amendment No. 2 is being filed to include a new audit opinion letter provided by the Registrant’s certified public accountant resulting from a re-audit of the fiscal years ended June 30, 2012 and 2013 and to include additional disclosure regarding the note payable to Land and Agriculture Bank of South Africa.

 

 

 

 

 

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TABLE OF CONTENTS

PART I   PAGE
Item 1. Business 4
Item 1A. Risk Factors 5
Item 1B. Unresolved Staff Comments 12
Item 2. Properties 12
Item 3. Legal Proceedings 12
Item 4. Mining Safety Disclosures 13
PART II    
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 13
Item 6. Selected Financial Data 14
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations 15
Item 7A. Quantitative and Qualitative Disclosures About Market Risk 18
Item 8. Financial Statements and Supplementary Data 18
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 18
Item 9A Controls and Procedures 19
Item 9B. Other Information 20
PART III    
Item 10. Directors, Executive Officers and Corporate Governance 20
Item 11. Executive Compensation 22
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 23
Item 13. Certain Relationships and Related Transactions and Director Independence 24
Item 14. Principal Accountant Fees and Services 24
PART IV    
Item 15. Exhibits, Financial Statement Schedules 25

 

 

 

 

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PART I

 

ITEM 1. BUSINESS.

 

Plandaí Biotechnology, Inc. (the “Company”) and its subsidiaries focus on the production of proprietary botanical extracts for the nutriceutical and pharmaceutical industries. The company grows much of the live plant material used in its products on a 3,000 hectare estate it operates under a 49-year notarial lease in the Mpumalanga region of South Africa. Plandaí uses a patented extraction process that is designed to yield highly bioavailable products of pharmaceutical-grade purity. The first product to be brought to market is Phytofare™ Catechin Complex, a green-tea derived extract that has multiple potential wellness applications. The company’s principle holdings consist of land, farms and infrastructure in South Africa.

 

The Company was incorporated, as Jerry's Inc., in the State of Florida on November 30, 1942. The company catered airline flights and operated coffee shops, lounges and gift shops at airports and other facilities located in Florida, Alabama and Georgia. The company's airline catering services included the preparation of meals in kitchens located at, or adjacent to, airports and the distribution of meals and beverages for service on commercial airline flights. The company also provided certain ancillary services, including, among others, the preparation of beverage service carts, the unloading and cleaning of plates, utensils and other accessories arriving on incoming aircraft, and the inventory management and storage of airline-owned dining service equipment. In March of 2004 we moved our domicile to Nevada and changed our name to Diamond Ranch Foods, Ltd. Diamond Ranch Foods, Ltd. was engaged in the meat processing and distribution industry. Operations consisted of packing, processing, custom meat cutting, portion controlled meats, private labeling, and distribution of our products to a diversified customer base, including, but not limited to; in-home food service businesses, retailers, hotels, restaurants and institutions, deli and catering operators, and industry suppliers. On November 17, 2011, the Company, through its wholly-owned subsidiary, Plandaí Biotechnologies, Inc. consummated a share exchange with Global Energy Solutions Corporation Limited, an Irish corporation. Under the terms of the Share Exchange, GES received 76,000,000 shares of Diamond Ranch that had been previously issued to Plandaí Biotechnologies, Inc. in exchange for 100% of the issued and outstanding capital of GES.  On November 21, 2011, the Company filed an amendment to the articles of incorporation to change the name of the company to Plandaí Biotechnology, Inc.  GES was subsequently folded up into Plandaí and the legal status terminated, leaving Plandaí Biotechnology, Inc. as the surviving entity.

 

The Company is actively pursuing additional financing and has had discussions with various third parties, although no firm commitments have been obtained. Management believes these efforts will generate sufficient cash flows from future operations to pay the Company's obligations and realize positive cash flow. There is no assurance any of these transactions will occur. In April 2012, through our subsidiary companies, we secured a 100 million Rand (approximately $13 million) financing with the Land and Agriculture Bank of South Africa which has been used to build infrastructure and further operations.

 

DISPOSITION OF SUBSIDIARY

 

On November 17, 2011, the Company sold its subsidiary, Diamond Ranch, Ltd., together with its wholly-owned subsidiary, Executive Seafood, Inc. to the former officer and director of Diamond Ranch.  Under the terms of the sale, the purchaser assumed all associated debt as consideration.  During the three and six months ended December 31, 2011, Diamond Ranch, Ltd. and Executive Seafood, Inc. had negligible revenues from operations, generated a net loss of $126,000, and as of the date of disposition, liabilities exceeded assets by over $5,000,000.

 

As a result of the Share Exchange Agreement and disposition of Diamond Ranch, Ltd., the operations of Plandaí Biotechnology, Inc. consist entirely of the operations of the former GES entity its subsidiaries.

 

PRODUCTS AND SERVICES

 

Plandaí has a proprietary technology that extracts a high level of bio-available compounds from organic matter including green tea leaves and most other organic materials. Various tests have been conducted over the past ten years using this technology that generates functional chemical compounds possessing nutritive properties that act effectively as preventive agents in the healthcare field. Polyphenols from green tea are an excellent source antioxidant and anti-carcinogenic substances. The Company intends to use its plantation leases to focuses on the farming of whole fruits, vegetables and live plant material and the production of proprietary functional foods and botanical extracts for the health and wellness industry using its proprietary extraction technology.

 

Many botanical extracts have demonstrated varying degrees of health benefit, and many pharmaceutical drugs are either derived directly from plant extracts or are synthetic analogs of phytonutrient molecules. Green tea leaf, for example, has shown promising in-vitro results as an anti-oxidant, with hundreds of different published studies demonstrating its potential usefulness in weight loss, anti-viral, anti-cancer, and anti-parasitic applications, amongst others.

 

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The company is presently developing for market two unique extracts: Phytofare™ Catechin Complex and Phytofare™ Limonoid Glycoside Complex. The catechin complex is derived from green tea harvested locally on the Senteeko Tea Estate in Mpumalanga, South Africa, and then processed on a state-of-the-art extraction facility constructed onsite using funds obtained from the Land and Agriculture Bank of South Africa. The facility is expected to become operational in December 2013, with initial sales commencing first quarter 2014. The limonoid glycoside product is extracted from lemons which are sourced from local plantations in South Africa and then produced in the same factory that makes the green tea product. The Phytofare™ Limonoid Glycoside Complex will be introduced to the market in July 2014.

 

In August 2014, Plandaí entered into a license agreement with North-West University in Potchefstroom, South Africa, which granted the company the exclusive right to use the University’s Pheroid™ technology to product nano-entrapped botanical extracts for human and animal use. The company believes that this technology will enable it to develop products with much higher absorption coefficients in both topical use and oral consumption.

 

COMPETITION

 

The Company faces competition from a variety of sources. There are several large producers of farm products including green tea and there are numerous companies that develop and market nutraceutical products that include bio-available compounds including those from green tea and citrus extracts. Many of these competitors benefit from established distribution, market-ready products, and greater levels of financing. Plandaí intends to compete by producing higher quality and higher concentration extracts, producing at lower costs, and controlling a vertically integrated market that includes all stages from farming through production and marketing. The company’s unique patent-pending technology, combined with the patented Pheroid™ technology, should provide several unique market advantages in the form of higher absorption, increased bioavailability, and lower dosage requirements.

 

CUSTOMERS

 

Plandaí will market to nutriceutical and supplement companies that require high-quality bio-available extracts for their products. As pharmaceutical products clear their human clinical trials and receive market approval from the FDA, Plandaí will enlist distribution companies to sell to various end user outlets. In addition, the Company anticipates having surplus farm products including timber, fruits, and nuts which will be sold to local markets.

 

ITEM 1A. RISK FACTORS

 

An investment in our securities is highly speculative, involves a high degree of risk and is suitable only for investors with substantial means who can bear the economic risk of the investment for an indefinite period of time, have no need for liquidity of the investment, and have adequate means of providing for their current needs and contingencies. An investment in the securities should be made only by persons able to bear the risk in the event the investment results in a total loss.

 

We Have Historically Lost Money and Losses May Continue in the Future

 

We have historically lost money.   The loss for the fiscal year June 30, 2013 was $2,108,005 and future losses are likely to occur.  Accordingly, we may experience significant liquidity and cash flow problems if we are not able to raise additional capital as needed and on acceptable terms.  No assurances can be given we will be successful in reaching or maintaining profitable operations.

 

We Will Need to Raise Additional Capital to Finance Operations

 

Our operations have relied almost entirely on external financing to fund our operations.  Such financing has historically come from a combination of borrowings and from the sale of common stock and assets to third parties.  We will need to raise additional capital to fund our anticipated operating expenses and future expansion.  Among other things, external financing will be required to cover our operating costs.  We cannot assure you that financing whether from external sources or related parties will be available if needed or on favorable terms.  The sale of our common stock to raise capital may cause dilution to our existing shareholders.  Our inability to obtain adequate financing will result in the need to curtail business operations.  Any of these events would be materially harmful to our business and may result in a lower stock price.

 

There is Substantial Doubt About Our Ability to Continue as a Going Concern Due to Recurring Losses and Working Capital Shortages, Which Means that We May Not Be Able to Continue Operations Unless We Obtain Additional Funding

 

Our independent certified public accountant has stated in their report included in this filing that we have suffered recurring losses from operations that raise substantial doubt about our ability to continue as a going concern.

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The Company has experienced recurring operating losses and we currently have a working capital deficiency. There is a possibility that our revenues will not be sufficient to meet our operating costs. To date our liabilities have greatly exceeded our current assets. There is a substantial doubt that we can continue as a going concern.

 

There can be no assurance that we will continue to generate revenues from operations or obtain sufficient capital on acceptable terms, if at all.  Failure to obtain such capital or generate such operating revenues would have an adverse impact on our financial position and results of operations and ability to continue as a going concern.  Our operating and capital requirements during the next fiscal year and thereafter will vary based on a number of factors, including the level of sales and marketing activities for our services and products.  There can be no assurance that additional private or public finances, including debt or equity financing, will be available as needed or, if available, on terms favorable to us.  Any additional equity financing may be dilutive to stockholders and such additional equity securities may have rights, preferences or privileges that are senior to those of our existing common stock.

 

Furthermore, debt financing, if available, will require payment of interest and may involve restrictive covenants that could impose limitations on our operating flexibility.  Our failure to successfully obtain additional future funding may jeopardize our ability to continue our business and operations.

 

Our Common Stock May Be Affected By Limited Trading Volume and May Fluctuate Significantly

 

There has been a limited public market for our common stock and there can be no assurance that an active trading market for our common stock will develop.  As a result, this could adversely affect our shareholders' ability to sell our common stock in short time periods, or possibly at all.  Our common stock has experienced, and is likely to experience in the future, significant price and volume fluctuations that could adversely affect the market price of our common stock without regard to our operating performance.  In addition, we believe that factors such as quarterly fluctuations in our financial results and changes in the overall economy or the condition of the financial markets could cause the price of our common stock to fluctuate substantially. Substantial fluctuations in our stock price could significantly reduce the price of our stock.

 

There is no Assurance of Continued Public Trading Market and Being a Low Priced Security may Affect the Market Value of Our Stock

 

To date, there has been only a limited public market for our common stock. Our common stock is currently quoted on the OTCBB. As a result, an investor may find it difficult to dispose of, or to obtain accurate quotations as to the market value of our stock. Our stock is subject to the low-priced security or so called "penny stock" rules that impose additional sales practice requirements on broker-dealers who sell such securities. The Securities Enforcement and Penny Stock Reform Act of 1990 requires additional disclosure in connection with any trades involving a stock defined as a penny stock (generally, according to recent regulations adopted by the SEC, any equity security that has a market price of less than $5.00 per share, subject to certain exceptions that we no longer meet). For example, brokers/dealers selling such securities must, prior to effecting the transaction, provide their customers with a document that discloses the risks of investing in such securities. Included in this document are the following:

 

- the bid and offer price quotes in and for the "penny stock," and the number of shares to which the quoted prices apply,

- the brokerage firm's compensation for the trade, and

- the compensation received by the brokerage firm's sales person for the trade.

 

In addition, the brokerage firm must send the investor:

 

- a monthly account statement that gives an estimate of the value of each "penny stock" in the investor's account, and

- a written statement of the investor's financial situation and investment goals.

 

If the person purchasing the securities is someone other than an accredited investor or an established customer of the broker/dealer, the broker/dealer must also approve the potential customer's account by obtaining information concerning the customer's financial situation, investment experience and investment objectives. The broker/dealer must also make a determination whether the transaction is suitable for the customer and whether the customer has sufficient knowledge and experience in financial matters to be reasonably expected to be capable of evaluating the risk of transactions in such securities. Accordingly, the Commission's rules may limit the number of potential purchasers of the shares of our common stock.

 

Resale restrictions on transferring "penny stocks" are sometimes imposed by some states, which may make transaction in our stock more difficult and may reduce the value of the investment. Various state securities laws pose restrictions on transferring

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"penny stocks" and as a result, investors in our common stock may have the ability to sell their shares of our common stock impaired.

 

There can be no assurance we will have market makers in our stock. If the number of market makers in our stock should decline, the liquidity of our common stock could be impaired, not only in the number of shares of common stock which could be bought and sold, but also through possible delays in the timing of transactions, and lower prices for the common stock than might otherwise prevail. Furthermore, the lack of market makers could result in persons being unable to buy or sell shares of the common stock on any secondary market.

 

We Could Fail to Retain or Attract Key Personnel

 

Our future success depends in significant part on the continued services of Roger Duffield, our President.  We cannot assure we would be able to find an appropriate replacement for key personnel.  Any loss or interruption of our key personnel's services could adversely affect our ability to develop our business plan.  

 

Nevada Law and Our Charter May Inhibit a Takeover of Our Company That Stockholders May Consider Favorable

 

Provisions of Nevada law, such as its business combination statute, may have the effect of delaying, deferring or preventing a change in control of our company.  As a result, these provisions could limit the price some investors might be willing to pay in the future for shares of our common stock.

 

We have a history of operating losses and expect to incur losses for the foreseeable future. We may never generate revenues or, if we are able to generate revenues, achieve profitability.

 

We are focused on product development, and we have not generated any revenues to date. We have incurred losses in each year of our operations, and we expect to continue to incur operating losses for the foreseeable future. These operating losses have adversely affected and are likely to continue to adversely affect our working capital, total assets and shareholders’ equity.

 

The Company and its prospects should be examined in light of the risks and difficulties frequently encountered by new and early stage companies in new and rapidly evolving markets. These risks include, among other things, the speed at which we can scale up operations, our complete dependence upon development of products that currently have no market acceptance, our ability to establish and expand our brand name, our ability to expand our operations to meet the commercial demand of our clients, our development of and reliance on strategic and customer relationships and our ability to minimize fraud and other security risks.

 

The process of developing our products requires significant clinical, development and laboratory testing and clinical trials. In addition, commercialization of our product candidates will require that we obtain necessary regulatory approvals and establish sales, marketing and manufacturing capabilities, either through internal hiring or through contractual relationships with others. We expect to incur substantial losses for the foreseeable future as a result of anticipated increases in our research and development costs, including costs associated with conducting preclinical testing and clinical trials, and regulatory compliance activities.

 

Our ability to generate revenues and achieve profitability will depend on numerous factors, including success in:

 

·developing and testing product candidates;
·receiving regulatory approvals;
·commercializing our products;
·establishing a favorable competitive position.

 

Many of these factors will depend on circumstances beyond our control. We cannot assure you that we will ever have a product that we will bring to market or, if we are successful in doing so, that we will ever become profitable.

We expect to incur substantial additional operating expenses over the next several years as our research, development, pre-clinical testing, and clinical trial activities increase. The amount of future losses and when, if ever, we will achieve profitability are uncertain. We have no products that have generated any commercial revenue, do not expect to generate revenues from the commercial sale of products in the near future, and might never generate revenues from the sale of products. Our ability to generate revenue and achieve profitability will depend on, among other things, successful completion of the development of our product candidates; the successful testing of our product in both in in vitro and in vivo trials; establishing manufacturing, sales, and marketing arrangements with third parties; and raising sufficient funds to finance our activities. We might not succeed at any of these undertakings. If we are unsuccessful at some or all of these undertakings, our business, prospects, and results of operations may be materially adversely affected.

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We received a report from our independent registered public accounting firm with an explanatory paragraph for the year ended June 30, 2013 with respect to our ability to continue as a going concern. The existence of such a report may adversely affect our stock price and our ability to raise capital.

 

In their report dated September 25, 2013, our independent registered public accounting firm expressed substantial doubt about our ability to continue as a going concern as we have incurred losses, have a negative cash flow from operations and have working capital and stockholders’ deficiencies. Our ability to continue as a going concern is subject to our ability to generate a profit and/or obtain necessary funding from outside sources, including obtaining additional funding from the sale of our securities, increasing sales or obtaining loans and grants from various financial institutions where possible. Our continued net operating losses increase the difficulty in meeting such goals and there can be no assurances that such methods will prove successful.

 

We have no approved products on the market and have generated no product revenues to date.

 

To date, we have no approved product on the market and have generated no product revenues. Until and unless we receive approval from regulatory authorities for our product candidates, we cannot sell our products and will not have product revenues. Therefore, for the foreseeable future, we will have to fund all of our operations and capital expenditures from cash on hand, licensing fees and grants and additional financings, to the extent such financings can be obtained.

 

We need additional capital. If additional capital is not available or is available at unattractive terms, we may be forced to delay, reduce the scope of or eliminate our research and development programs, reduce our commercialization efforts or curtail our operations.

 

In order to develop and bring our product candidates to market, we must commit substantial resources to costly and time-consuming production development, research, clinical trials and marketing activities. We anticipate that our existing cash and cash equivalents will enable us to maintain our current operations for at least the next six months. We anticipate using our cash and cash equivalents to fund further research and development with respect to our lead product candidates. We may, however, need to raise additional funding sooner if our business or operations change in a manner that consumes available resources more rapidly than we anticipate. Our requirements for additional capital will depend on many factors, including:

 

·successful commercialization of our product candidates;
·the time and costs involved in obtaining regulatory approval for our product candidates;
·costs associated with protecting our intellectual property rights;
·development of marketing and sales capabilities;
·payments received under future collaborative agreements, if any; and
·market acceptance of our products.

 

To the extent we raise additional capital through the sale of equity securities, the issuance of those securities could result in dilution to our shareholders. In addition, if we obtain debt financing, a substantial portion of our operating cash flow may be dedicated to the payment of principal and interest on such indebtedness, thus limiting funds available for our business activities. If adequate funds are not available, we may be required to delay, reduce the scope of or eliminate our research and development programs, reduce our commercialization efforts or curtail our operations. In addition, we may be required to obtain funds through arrangements with collaborative partners or others that may require us to relinquish rights to technologies, product candidates or products that we would otherwise seek to develop or commercialize ourselves or license rights to technologies, product candidates or products on terms that are less favorable to us than might otherwise be available.

 

The Company will require substantial additional funds to support its research and development activities and eventual commercialization. Such additional sources of financing may not be available on favorable terms, if at all. If we do not succeed in raising additional funds on acceptable terms, we could be forced to discontinue product development, forego sales and marketing efforts and forego attractive business opportunities. Any additional sources of financing will likely involve the issuance of our equity securities, which will have a dilutive effect on our stockholders.

 

There is no assurance that we will be successful in raising the additional funds needed to fund our business plan. If we are not able to raise sufficient capital in the near future, our continued operations will be in jeopardy and we may be forced to cease operations and sell or otherwise transfer all or substantially all of our remaining assets.

 

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We face intense competition in the markets targeted by our lead product candidates. Many of our competitors have substantially greater resources than we do, and we expect that all of our product candidates under development will face intense competition from existing or future drugs.

 

We expect that all of our product candidates under development, if approved, will face intense competition from existing and future products marketed by large companies. These competitors may successfully market products that compete with our products, successfully identify and develop products earlier than we do, or develop products that are more effective or cost less than our products.

These competitive factors could require us to conduct substantial new research and development activities to establish new product targets, which would be costly and time consuming. These activities would adversely affect our ability to commercialize products and achieve revenue and profits.

 

Competition and technological change may make our product candidates and technologies less attractive or obsolete.

 

We compete with established pharmaceutical and food additive companies that are pursuing other products for the same indications we are pursuing and that have greater financial and other resources. Other companies may succeed in developing products earlier than us, or developing products that are more effective than our product candidates. Research and development by others may render our technology or product candidates obsolete or noncompetitive, or result in treatments or cures superior to any product we develop. We face competition from companies that internally develop competing technology or acquire competing technology from universities and other research institutions. As these companies develop their technologies, they may develop competitive positions that may prevent, make futile, or limit our product commercialization efforts, which would result in a decrease in the revenue we would be able to derive from the sale of any products.

 

There can be no assurance that any of our product candidates will be accepted by the marketplace as readily as these or other competing treatments. Even if our products are successfully developed and approved for use by all governing regulatory bodies, there can be no assurance that 3rd party manufacturers and consumers will prefer our products to those already in the market.

 

Furthermore, the food additive industry is diverse, complex, and rapidly changing. By its nature, the business risks associated therewith are numerous and significant. The effects of competition, intellectual property disputes, and market acceptance preclude us from forecasting revenues or income with certainty or even confidence.

 

If we fail to protect our intellectual property rights, our ability to pursue the development of our technologies and products would be negatively affected.

 

Our success will depend in part on our ability to obtain patents and maintain adequate protection of our technologies and products. If we do not adequately protect our intellectual property, competitors may be able to use our technologies to produce and market drugs in direct competition with us and erode our competitive advantage. Some foreign countries lack rules and methods for defending intellectual property rights and do not protect proprietary rights to the same extent as the United States. Many companies have had difficulty protecting their proprietary rights in these foreign countries. We may not be able to prevent misappropriation of our proprietary rights.

 

We are currently seeking patent protection for numerous processes and finished products. However, the patent process is subject to numerous risks and uncertainties, and there can be no assurance that we will be successful in protecting our products by obtaining and defending patents. These risks and uncertainties include the following: patents that may be issued or licensed may be challenged, invalidated, or circumvented, or otherwise may not provide any competitive advantage; our competitors, many of which have substantially greater resources than us and many of which have made significant investments in competing technologies, may seek, or may already have obtained, patents that will limit, interfere with, or eliminate our ability to make, use, and sell our potential products either in the United States or in international markets; there may be significant pressure on the United States government and other international governmental bodies to limit the scope of patent protection both inside and outside the United States for treatments that prove successful as a matter of public policy regarding worldwide health concerns; countries other than the United States may have less restrictive patent laws than those upheld by United States courts, allowing foreign competitors the ability to exploit these laws to create, develop, and market competing products.

 

 

 

 

 

 

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Moreover, any patents issued to us may not provide us with meaningful protection, or others may challenge, circumvent or narrow our patents. Third parties may also independently develop products similar to our products, duplicate our unpatented products or design around any patents on products we develop. Additionally, extensive time is required for development, testing and regulatory review of a potential product. While extensions of patent term due to regulatory delays may be available, it is possible that, before any of our product candidates can be commercialized, any related patent, even with an extension, may expire or remain in force for only a short period following commercialization, thereby reducing any advantages of the patent.

 

In addition, the United States Patent and Trademark Office (the "PTO") and patent offices in other jurisdictions have often required that patent applications concerning biotechnology-related inventions be limited or narrowed substantially to cover only the specific innovations exemplified in the patent application, thereby limiting the scope of protection against competitive challenges. Thus, even if we or our licensors are able to obtain patents, the patents may be substantially narrower than anticipated.

 

Our success depends on patent applications that are licensed exclusively to us and other patents to which we may obtain assignment or licenses. We may not be aware, however, of all patents, published applications or published literature that may affect our business either by blocking our ability to commercialize our product candidates, by preventing the patentability of our product candidates to us or our licensors, or by covering the same or similar technologies that may invalidate our patents, limit the scope of our future patent claims or adversely affect our ability to market our product candidates.

In addition to patents, we rely on a combination of trade secrets, confidentiality, nondisclosure and other contractual provisions, and security measures to protect our confidential and proprietary information. These measures may not adequately protect our trade secrets or other proprietary information. If they do not adequately protect our rights, third parties could use our technology, and we could lose any competitive advantage we may have. In addition, others may independently develop similar proprietary information or techniques or otherwise gain access to our trade secrets, which could impair any competitive advantage we may have.

 

Patent protection and other intellectual property protection is crucial to the success of our business and prospects, and there is a substantial risk that such protections will prove inadequate.

 

If testing or clinical trials for our product candidates are unsuccessful or delayed, we will be unable to meet our anticipated development and commercialization timelines.

 

We rely and expect to continue to rely on third parties, including clinical research organizations and outside consultants, to conduct, supervise or monitor some or all aspects of testing or clinical trials involving our product candidates. We have less control over the timing and other aspects of testing or clinical trials than if we performed the monitoring and supervision entirely on our own. Third parties may not perform their responsibilities for our testing or clinical trials on our anticipated schedule or, for clinical trials, consistent with a clinical trial protocol. Delays in preclinical and clinical testing could significantly increase our product development costs and delay product commercialization. In addition, many of the factors that may cause, or lead to, a delay in the clinical trials may also ultimately lead to denial of regulatory approval of a product candidate.

 

The commencement of clinical trials can be delayed for a variety of reasons, including delays in:

 

·demonstrating sufficient safety and efficacy to obtain regulatory approval to commence a clinical trial;
·reaching agreement on acceptable terms with prospective contract research organizations and trial sites;
·manufacturing sufficient quantities of a product candidate; and
·obtaining institutional review board approval to conduct a clinical trial at a prospective site.
·

Once a clinical trial has begun, it may be delayed, suspended or terminated due to a number of factors, including:

 

·ongoing discussions with the FDA or other regulatory authorities regarding the scope or design of our clinical trials;
·failure to conduct clinical trials in accordance with regulatory requirements;
·lower than anticipated recruitment or retention rate of patients in clinical trials;
·lack of adequate funding to continue clinical trials; or
·negative results of clinical trials

 

10
 

If clinical trials are unsuccessful, and we are not able to obtain regulatory approvals for our product candidates under development, we will not be able to commercialize these products, and therefore may not be able to generate sufficient revenues to support our business.

 

If we are unable to hire additional qualified personnel, our ability to grow our business may be harmed.

 

Over time we will need to hire additional qualified personnel with expertise in clinical testing, clinical research and testing, government regulation, formulation and manufacturing, financial matters and sales and marketing. We compete for qualified individuals with numerous biopharmaceutical companies, universities and other research institutions. Competition for such individuals is intense, and we cannot be certain that our search for such personnel will be successful. Attracting and retaining qualified personnel will be critical to our success.

 

Data provided by collaborators and others upon which we rely that has not been independently verified could turn out to be false, misleading, or incomplete.

 

We rely on third-party vendors, scientists, and collaborators to provide us with significant data and other information related to our projects, clinical trials, and our business. If such third parties provide inaccurate, misleading, or incomplete data, our business, prospects, and results of operations could be materially adversely affected.

 

Successful development of our products is uncertain.

 

Our development of current and future product candidates is subject to the risks of failure and delay inherent in the development of new biotech products, including: delays in product development, clinical testing, or manufacturing; unplanned expenditures in product development, clinical testing, or manufacturing; failure to receive regulatory approvals; emergence of superior or equivalent products; inability to manufacture on its own, or through any others, product candidates on a commercial scale; and failure to achieve market acceptance.

 

Because of these risks, our research and development efforts may not result in any commercially viable products. If a significant portion of these development efforts are not successfully completed, required regulatory approvals are not obtained or any approved products are not commercially successfully, our business, financial condition, and results of operations may be materially harmed.

 

We do not have, and may never obtain, the regulatory approvals we need to market our product candidates.

 

Following completion of clinical trials, the results are evaluated and, depending on the outcome, may be submitted to the FDA in the form of an NDA in order to obtain approval to commence commercial marketing using the desired claims. While FDA approval will not be required to sell our products, in order to make certain health-related claims, FDA approval may be required. In responding to an NDA, the FDA may require additional testing or information, may require that the product labeling be modified, may impose post-approval study or reporting requirements or other restrictions on product distribution, or may deny the application. The FDA has established performance goals for review of NDAs - six months for priority applications and ten months for standard applications. However, the FDA is not required to complete its review within these time periods. The timing of final FDA review and action varies greatly, but can take years in some case and may involve the input of an FDA advisory committee of outside experts. Product sales in the United States may commence only when an NDA is approved.

 

To date, we have not applied for or received the regulatory approvals required for the commercial sale of any of our products in the United States or in any foreign jurisdiction. None of our product candidates has been determined to be safe and effective, and we have not submitted an NDA to the FDA or an equivalent application to any foreign regulatory authorities for any of our product candidates.

 

It is possible that none of our product candidates will be approved for marketing. Failure to obtain regulatory approvals, or delays in obtaining regulatory approvals, may adversely affect the successful commercialization of any products we develop, may impose additional costs on us or our collaborators, may diminish any competitive advantages that we or our partners may attain, and/or may adversely affect our receipt of revenues or royalties.

 

Even if we obtain regulatory approval to market our product candidates, our product candidates may not be accepted by the market.

 

Even if we receive regulatory approval to market one or more of our product candidates, consumers may not accept it or use it. Acceptance and use of our products will depend upon a number of factors including: perceptions by members of the health care community, including physicians, about the safety and effectiveness of our products; cost-effectiveness of our product relative to competing products; and effectiveness of marketing and distribution efforts by us and our licensees and distributors, if any.

11
 

If we fail to establish marketing, sales and distribution capabilities, or fail to enter into arrangements with third parties, we will not be able to create a market for our product candidates.

 

Our strategy with our lead product candidates is to control, directly or through contracted third parties, all or most aspects of the product development process, including marketing, sales and distribution. Currently, we do not have any sales, marketing or distribution capabilities. In order to generate sales of any product candidates that receive regulatory approval, we must either acquire or develop an internal marketing and sales force with technical expertise and with supporting distribution capabilities or make arrangements with third parties to perform these services for us. The acquisition or development of a sales and distribution infrastructure would require substantial resources, which may divert the attention of our management and key personnel and defer our product development efforts. To the extent that we enter into marketing and sales arrangements with other companies, our revenues will depend on the efforts of others. These efforts may not be successful. If we fail to develop sales, marketing and distribution channels, or enter into arrangements with third parties, we will experience delays in product sales and incur increased costs.

 

The establishment of a marketing, sales, and distribution capability would significantly increase our costs, possibly requiring substantial additional capital. In addition, there is intense competition for proficient sales and marketing personnel, and we may not be able to attract individuals who have the qualifications necessary to market, sell, and distribute our products. There can be no assurance that we will be able to establish internal marketing, sales, or distribution capabilities. If we are unable to, or choose not to establish these capabilities, or if the capabilities we establish are not sufficient to meet our needs, we will be required to establish collaborative marketing, sales, or distribution relationships with third parties.

 

We face the risk of product liability claims and may not be able to obtain insurance.

 

Our business exposes us to the risk of product liability claims that are inherent in the development of consumer products. If the use of one of our products harms people, we may be subject to costly and damaging product liability claims brought against us by clinical trial participants, consumers, or others selling our products. Our inability to obtain sufficient product liability insurance at an acceptable cost to protect against potential product liability claims could prevent or inhibit the commercialization of products we develop, alone or with collaborators. We currently do not carry clinical trial insurance or product liability insurance. We intend to obtain such insurance in the future. We cannot predict all of the possible harms or side effects that may result and, therefore, the amount of insurance coverage we hold now or in the future may not be adequate to cover all liabilities we might incur. If we are unable to obtain insurance at an acceptable cost or otherwise protect against potential product liability claims, we will be exposed to significant liabilities, which may materially and adversely affect our business and financial position. If we are sued for any injury allegedly caused by our or our collaborators' products, our liability could exceed our total assets and our ability to pay the liability. A product liability claim or series of claims brought against us would decrease our cash and could cause our stock price to fall.

 

EMPLOYEES

 

The Company, including subsidiaries, currently employs 100 full time employees, of which 80 are engaged in farming, 5 in research and development, and 15 in management and operations. Once the Company has completed testing on its Phytofare™ products and has its production facility nearing completion, management expects to increase the number of employees engaged in farming, production, and operations significantly. We assess employee relations to be excellent.

 

ITEM 1 B. UNRESOLVED STAFF COMMENTS

 

None.

 

ITEM 2. PROPERTIES

 

The Company, through its subsidiary, Dunn Roman Holdings, controls notarial leases in South Africa encompassing 8,000 acres of tea plantations, farms and associated buildings. The Company also leases office space in London, England and White River, Mpumalanga, South Africa, and Seattle, Washington.

 

We believe that our existing facilities are suitable and adequate to meet our current business requirements.

 

ITEM 3. LEGAL PROCEEDINGS

 

None.

12
 

 

ITEM 4. MINING SAFETY DISCLOSURES

 

Not applicable.

 

PART II

 

ITEM 5. MARKET FOR COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

 

Shares of the Company's common stock are quoted and traded from time to time on the OTC.BB with the trading symbol "PLPL."

The following table sets forth the high and low bid information for the Company’s common stock for each quarter within the two fiscal years. The prices reflect inter-dealer prices, without retail mark-up, mark-down or commission and may not represent actual transactions.

 

Quarter Ending   Quarterly High   Quarterly Low
6/30/2011   $0.19   $0.16
9/30/2011   $0.13   $0.12
12/31/2011   $0.17   $0.15
3/31/2012   $0.26   $0.21
6/30/2012   $0.34   $0.18
9/30/2012   $0.22   $0.12
12/31/2012   $0.15   $0.06
3/31/2013   $0.08   $0.04
6/30/2013   $0.54   $0.05

 

Secondary trading of our shares may be subject to certain state imposed restrictions.

 

The ability of individual shareholders to trade their shares in a particular state may be subject to various rules and regulations of that state. A number of states require that an issuer's securities be registered in their state or appropriately exempted from registration before the securities are permitted to trade in that state.

 

From time-to-time we may grant options or warrants, or promise registration rights to certain shareholders. We have no control over the number of shares of our common stock that our shareholders sell. The price of our common stock may be adversely affected if large amounts are sold in a short period of time.

 

Our shares most likely will be subject to the provisions of Section 15(g) and Rule 15g-9 of the Exchange Act, commonly referred to as the "penny stock" rule.

 

Section 15(g) sets forth certain requirements for transactions in penny stocks and Rule 15g-9(d)(1) incorporates the definition of penny stock as that used in Rule 3a51-1 of the Exchange Act.

 

The SEC generally defines penny stock to be any equity security that has a market price less than $5.00 per share, subject to certain exceptions. Rule 3a51-1 provides that any equity security is considered to be a penny stock unless that security is: registered and traded on a national securities exchange meeting specified criteria set by the SEC; authorized for quotation on

The NASDAQ Stock Market; issued by a registered investment company; excluded from the definition on the basis of price (at least $5.00 per share) or the issuer's net tangible assets; or exempted from the definition by the SEC. Broker-dealers who sell penny stocks to persons other than established customers and accredited investors (generally persons with assets in excess of $1,000,000 or annual income exceeding $200,000, or $300,000 together with their spouse), are subject to additional sales practice requirements.

 

For transactions covered by these rules, broker-dealers must make a special suitability determination for the purchase of such securities and must have received the purchaser's written consent to the transaction prior to the purchase. Additionally, for any transaction involving a penny stock, unless exempt, the rules require the delivery, prior to the first transaction, of a risk disclosure document relating to the penny stock market. A broker-dealer also must disclose the commissions payable to both the broker-dealer and the registered representative, and current quotations for the securities. Finally, monthly statements must be sent to clients disclosing recent price information for the penny stocks held in the account and information on the limited market in penny stocks. Consequently, these rules may restrict the ability of broker-dealers to trade and/or maintain a market in our common stock and may affect the ability of shareholders to sell their shares.

 

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As of June 30, 2013, there were approximately 299 holders of record of our common stock. This number does not include an indeterminate number of shareholders whose shares are held by brokers in street name.

 

TRANSFER AGENT

 

We have appointed Signature Stock Transfer, Inc., with offices at 2301 Ohio Drive, Suite 100, Plano, TX 75093, phone number 972-612-4120, as transfer agent for our shares of common stock. The transfer agent is responsible for all record-keeping and administrative functions in connection with the common shares and stock warrants.

 

DIVIDEND POLICY

 

We don't plan to pay dividends at this time or anytime soon. The board of directors will decide on any future payment of dividends, depending on our results of operations, financial condition, capital requirements, and any other relevant factors. However, we expect to use any future earnings for operations and in the business.

 

RECENT SALES OF UNREGISTERED SECURITIES.

 

In connection with the Share Exchange dated November 17, 2011, the Company issued 76,000,000 shares of unregistered, restricted common stock to the owners of Global Energy Solutions Corporation Limited. The shares were issued under Rule 144 of the Securities Act of 1933.

 

Prior to executing the share exchange, the Company issued 14,000,000 to various third parties in exchange for services rendered. These shares, together with the prior outstanding balance, have been treated as shares issued as of the share exchange date since Global Energy Solutions is the surviving company for reporting purposes. The shares were issued under Rule 144 of the Securities Act of 1933.

 

During the year ended June 30, 2012, the Company issued a total of 7,980,000 shares of restricted common stock in exchange for services previously rendered. The value of such shares on the date of issuance, $2,979,509, has been recorded as an expense in the period issued. The shares were issued under Rule 144 of the Securities Act of 1933.

 

In February 2012, the Company issued a total of 1,500,000 shares of restricted common stock to three individuals in exchange for shares of Dunn Roman Holdings stock which had been previously issued. The acquired Dunn Roman shares were then provided to thirds parties in order to comply with the BEE provisions associated with the loan from the Land Bank of South Africa, which required that 26% of Dunn Roman be black owned. The Company has therefore determined to treat the value of the shares issued to acquire the Dunn Roman stock as a cost of securing the financing. The value of the shares on the date of issuance, $585,000, has been recorded as a discount to Long Term Notes Payable. As funds are advanced on the loan, the $585,000 will be amortized over the life of the loan (7 years). The shares were issued under Rule 144 of the Securities Act of 1933.

 

During the year ended June 30, 2013, the company sold a total of 525,460 shares of restricted common stock for cash proceeds of $140,500. The shares were issued under Rule 144 of the Securities Act of 1933.

 

During the year ended June 30, 2013, the company received back 250,000 shares of stock that had been previously issued for services valued at $80,000. The company and the service provided determined that the services had not been fully rendered, thus the shares were returned to the company and cancelled. The company also purchased 4,900,000 shares of common stock from a former director of the company in exchange for $125,000, which represented a discount of 50% off the closing bid price on the date of purchase. These shares were subsequently cancelled.

 

In July of 2013, the Company issued 16,700 common shares for $5,000 cash. The shares were issued under Rule 144 of the Securities Act of 1933.

 

ITEM 6. SELECTED FINANCIAL DATA.

 

Not Applicable.

 

 

14
 

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.

 

ANALYSIS OF OPERATIONS

 

FOR THE YEARS ENDED JUNE 30, 2013 AND 2012

 

SALES

 

For the fiscal year ended June 30, 2013, sales were $359,143 compared to sales of $0 for the fiscal year ended June 30, 2012. Sales during 2013 consisted of avocado, macadamia nuts and timber from the company’s farming operations in South Africa. The company has not commenced sales of its botanical extracts and does not anticipate having product available for market until early 2014.

 

EXPENSES

 

Our total expenses for the fiscal year ended June 30, 2013 were $1,973,698 compared to $3,912,812 in the prior year. Of the prior year amount, $2,977,700 resulted from recording the fair value of stock issued for services previously rendered, which was recorded as salary and professional services. In 2013, the company also commenced recording rent expense of $320,927 and depreciation of $135,039 as assets were placed in service.

 

OTHER

 

For the years ended June 30, 2013 and 2012, the Company reported interest expense of $265,245 and $28,586, respectively, an increase of $236,659. The increase was primary due to the interest accrued on the Land Bank loans.

 

For the years ended June 30, 2013 and 2012, the Company reported derivative interest expense of $45,227 and $0, respectively, an increase of $45,227. The increase was due to the issuance of convertible debenture issued in May, 2013.

 

LIQUIDITY AND CAPITAL RESOURCES

 

For the fiscal year ended June 30, 2013; the Company's cash used in operating activities totaled $1,846,334, which was primarily attributable to operational costs in South Africa associated with getting the Senteeko estate operational. Cash used in investing activities was $1,986, 908, which consisted almost entirely of leasehold improvements and fixed asset acquisitions in South Africa. Cash provided by financing activities was $4,327,047, the majority of which was provided by a bank loan of $3,944,712 that was used to purchase equipment and leasehold improvements for the South African operations. As of June 30, 2013, the Company had current assets of $518,994 compared to current liabilities of $823,729. Cash on hand was $498,917.

 

PLAN OF OPERATION

 

The Company executed a 49-year notarial lease, giving it control over 8,000 acres of plantation properties in South Africa. Plandaí plans to use a proprietary extraction process to create bio-available extracts using the farm produce from the plantation, with an initial emphasis on green tea and citrus extracts. During the fiscal year ended June 30, 2013 commenced rehabilitation efforts on the plantation, which involved removing overgrowth, paring the tea bushes, refurbishing housing for the laborers, and repairing the roads and bridges. The company also commenced construction on a 3,000m2 extraction facility which was completed in September 2013. Management currently estimates that tea harvesting and extract production will commence in December 2013.

 

Plandaí also commenced several laboratory trials in preparation for releasing product to market. These trials focus on bioavailability, anti-inflammation, topical absorption, weight loss, and malaria. The Company expects to release product to market in early 2014 under Phytofare™ brand name.

 

Plandaí has entered into several distribution agreements covering nutriceutical sales in North America, Europe and parts of Africa, with additional markets opening in the coming months.

 

The Company's long-term existence is dependent upon our ability to execute our operating plan and to obtain additional debt or equity financing to fund payment of obligations and provide working capital for operations. In April 2012, the Company through majority-owned subsidiaries of Dunn Roman Holdings, Inc., executed final loan documents on a 100 million Rand (approx. $13 million USD) financing with the Land and Agriculture Bank of South Africa.

 

 

15
 

ACQUISITIONS

 

The company does not anticipate making any acquisitions in the coming twelve months.

 

TRENDS

 

Green tea and green tea extracts have become ever-present in consumer products throughout Europe, Asia and the Americas. Every major beverage manufacturer has a green tea-infused product, but there are also countless other green tea-derived products that have flooded the market in recent years, including:

 

  • Ice cream
  • Soda
  • Shampoo & conditioner
  • Lotion and skin care products
  • Nail polish
  • Vitamins
  • Weight loss supplements
  • Food additive
  • Soap

 A 2008 published report estimated that the market for green tea extract would grow by more than 13% for the next seven years as demand increases in Europe and the United States. Worldwide, sales for antioxidants, primarily green tea, was $34 billion in 2010. Sports supplements have also surged in recent years. In 2010, total worldwide sales were $4.7 billion, of which the US market comprised 66%, and growing at a rate of 15$ per year.

 

The Phytofare™ Citrus Limonoid Glycoside Complex targets multiple markets including sports medicine and nutrition, dietary supplements, and cold symptom relief. The market for nutriceutical market is even larger, with $176 billion being spent on food, beverages and supplements fortified with bioactive ingredients including proteins, vitamins and minerals. Of this amount, $48.8 billion is spent on dietary supplements alone. The United States comprises 32.8% of the worldwide market for nutriceuticals.

 

Initially, Plandaí will focus on developing markets within the following target industries:

 

·Fortification of food and beverages
·Wellness
·Dietary supplements
·Nutri-cosmetics
·Cosmeceutics
·Botanical drugs
·Athletic supplements

 

As food and beverage additives, Phytofare™ extracts can be added to virtually any consumable product, or converted into tablet/capsule form, to provide the health benefits in a highly bioavailable form. This creates a nearly limitless opportunity for food and beverage companies to incorporate Phytofare™-infused products into their product line. Likewise, supplement manufactures, who have long-touted antioxidant infused-products can now begin incorporating an extract that actually delivers on their claims.

 

The August 2013 license agreement with North-West University covering the use of Pheroid in animal and human use provides a stable delivery tool for getting Phytofare™ to the target tissues through topical creams, capsules, or an oral liquid. The Pheroid technology entraps nano particles and protects them until absorbed by cells. The process of glycolysis then breaks down the protective coating, releasing the phytonutrients into the tissues. This technology opens up several additional products lines for Plandaí products in the area of skin care, hair care and beverages.

 

CRITICAL ACCOUNTING POLICIES

 

The preparation of our financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and judgments that affect our reported assets, liabilities, revenues, and expenses, and the disclosure of contingent assets and liabilities.  We base our estimates and judgments on historical experience and on various other assumptions we believe to be reasonable under the circumstances.  Future events, however, may differ markedly from our current expectations and assumptions.  While there are a number of significant accounting policies affecting our financial statements, we believe the following critical accounting policies involve the most complex, difficult and subjective estimates and judgments.

16
 

Revenue recognition

 

The Company presently derives its revenue from the sale of timber and agricultural products produced on its farm and tea estate holdings in South Africa. Revenue is recognized when the product is delivered to the customer. Once production of the Company’s Phytofare™ botanical extracts commence in 2014, revenues will be recognized when product is shipped.

 

Intangible and Long-Lived Assets

 

We follow Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 360, “Property Plant and Equipment”, which establishes a “primary asset” approach to determine the cash flow estimation period for a group of assets and liabilities that represents the unit of accounting for a long lived asset to be held and used.  Long-lived assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable.  The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use and eventual disposition of the asset.  Long-lived assets to be disposed of are reported at the lower of carrying amount or fair value less cost to sell.  

 

Goodwill is accounted for in accordance with ASC Topic 350, “Intangibles – Goodwill and Other”. We assess the impairment of long-lived assets, including goodwill and intangibles on an annual basis or whenever events or changes in circumstances indicate that the fair value is less than its carrying value. Factors that we consider important which could trigger an impairment review include poor economic performance relative to historical or projected future operating results, significant negative industry, economic or company specific trends, changes in the manner of our use of the assets or the plans for our business, market price of our common stock, and loss of key personnel. We have determined that there was no impairment of goodwill during 2013 or 2012.

 

Potential Derivative Instruments

 

We periodically assess our financial and equity instruments to determine if they require derivative accounting. Instruments which may potentially require derivative accounting are conversion features of debt and common stock equivalents in excess of available authorized common shares.

 

Principles of Consolidation

 

Plandaí Biotechnology, Inc. and its subsidiaries, are encompassed in the following entities, which have been consolidated in the accompanying financial statements:

 

Global Energy Solutions, Ltd. 100% owned by Plandaí Biotechnology, Inc.  
Dunn Roman Holdings—Africa, Ltd 82% owned by Plandaí Biotechnology, Inc.  
Breakwood Trading 22 (Pty) Ltd. 74% owned by Dunn Roman Holdings-Africa  
Green Gold Biotechnologies (Pty) Ltd. 74% owned by Dunn Roman Holdings-Africa  

 

During the year ended June 30, 2013, the Company determined that the entity, Global Energy Solutions, was unnecessary to operations and decided to dissolve that corporation, resulting in the stock of Dunn Roman Holdings-Africa being held directly by Plandaí. All liabilities were either satisfied or forgiven and all bank accounts closed. There were no operations in Global Energy Solutions during the years ended June 30, 2012 or 2013. Global Energy Solutions went through a “voluntary strikeoff”, which then resulted in a formal dissolution.

 

Statement of Financial Accounting Standards No. 160, Non-controlling Interests in Consolidated Financial Statements, establishes standards for accounting for non-controlling interest, sometimes called a minority interest, which is that portion of equity in a subsidiary not attributable, directly or indirectly, to a parent. FAS 160 requires that the non-controlling portion of equity and net income/loss from operations of consolidated entities be reflected in the financial statements. The Company previously adopted FAS 160 and has reflected the impact in the accompanying consolidated financial statements. All intercompany balances have been eliminated in consolidation.

 

 

 

17
 

Foreign Currency Translation


Financial Accounting Statement No. 52, Foreign Currency Translation (FAS 52), sets forth the appropriate accounting treatment under U.S. GAAP for companies that consolidate the results of foreign operations denominated in local currencies. FAS 52 requires that all assets and liabilities be translated at the current spot rate at the date of translation. Equity items, other than retained earnings, are translated at the spot rates in effect on each related transaction date. Retained earnings are translated at the weighted-average rate for the relevant year and income statement items are translated at the average rate for the period, except where specific identification is practicable. The resulting adjustment is not recognized in current earnings, but rather as a component of other comprehensive income. The Company adopted FAS 52 in the year ended June 30, 2012 and has chosen US dollars as the local currency. The effect of adopting FAS 52 have been reflected in the accompanying consolidated financial statements.

 

OFF-BALANCE SHEET ARRANGEMENTS

 

We have no off-balance sheet arrangements.

 

GOING CONCERN OPINION BY COMPANY AUDITOR

 

The Company's financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustment relating to recoverability and classification of recorded amounts of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

 

The Company has incurred a net loss for the years ended June 30, 2013 and 2012.  These conditions raise substantial doubt as to the Company's ability to continue as a going concern.

 

The Company's continued existence is dependent upon its ability to execute its operating plan and to obtain additional debt or equity financing. There can be no assurance the necessary debt or equity financing will be available, or will be available on terms acceptable to the Company.

 

The Company is actively pursuing alternative financing and has had discussions with various third parties, although no firm commitments have been obtained. Management believes these efforts will generate sufficient cash flows from future operations to pay the Company's obligations and realize other assets. There is no assurance any of these transactions will occur.

 

Management does not consider our auditor's going concern opinion problematic because we have evaluated operating practices during the years ended 2013 and 2012, and have made modifications to our present-day operations accordingly.

 

We intend to expand our business through sales by introducing Phytofare™ branded products in the 2014 calendar year. We will also seek to obtain government grants to fund research and development and are exploring the potential to sell limited licenses to the Phytofare™ product.  We expect to raise capital either through a debt or equity transaction, or through the sale of licenses.

 

ITEM 7A. QUANITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Not applicable.

 

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

 

The financial statements and related notes are included as part of this report as indexed in the appendix on page F-1 through F-15.

 

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

 

In June 2012, the Company engaged Cronin & Company as the Company's independent accountant to audit the Company’s financial statements and to perform reviews of interim financial statements.  During the fiscal years ended June 30, 2011 and 2012 through October 1, 2012, neither the Company nor anyone acting on its behalf consulted with Cronin & Company regarding the application of any accounting principles to a specific completed or contemplated transaction of the Company, or the type of audit opinion that might be rendered by Cronin & Company on the Company's financial statements.

 

18
 

On December 3, 2012, the Company Board of Directors accepted the resignation of Michael F. Cronin, CPA from his engagement to be the independent certifying accountant for the Company so that he could pursue a career in the private sector. The reports of Michael F. Cronin, CPA on the Company’s financial statements for the fiscal year ended June 30, 2012 did not contain an adverse opinion or a disclaimer of opinion and were not qualified or modified as to uncertainty, audit scope or accounting principles, except that it included an emphasis paragraph on the substantial doubt about the Company's ability to continue as a going concern as of a result of the Company having suffered recurring losses from operations. In connection with the audit of the Company’s financial statements for the fiscal year ended June 30, 2012 and the subsequent interim period through December 3, 2012, (1) there were no disagreements with Michael F. Cronin, CPA on any matter of accounting principles or practices, financial statement disclosure or auditing scope and procedure which, if not resolved to the satisfaction of Michael F. Cronin, CPA, would have caused Michael F. Cronin, CPA to make reference to the matter in its report and (2) there were no “reportable events” as that term is defined in Item 304 of Regulation S-K promulgated under the Securities Exchange Act of 1934 (“Item 304”).

 

On December 3, 2012, the Company engaged Patrick Rodger, CPA, P.A. as the Company's independent accountant to audit the Company’s financial statements and to perform reviews of interim financial statements. During the fiscal years ended June 30, 2012 and March 31, 2011 through December 3, 2012 neither the Company nor anyone acting on its behalf consulted with Patrick Rodgers, CPA, P.A. regarding (i) either the application of any accounting principles to a specific completed or contemplated transaction of the Company, or the type of audit opinion that might be rendered by Patrick Rodgers, CPA, P.A. on the Company's financial statements; or (ii) any matter that was either the subject of a disagreement with Michael F. Cronin, CPA or a reportable event with respect to Michael F. Cronin, CPA.

 

ITEM 9A. CONTROLS AND PROCEDURES

Management, including our chief executive officer and chief financial officer, as of the end of the period covered by this Annual Report on Form 10-K, we have concluded our disclosure controls and procedures (as defined in Rules 13a-14(c) and 15d-14(c) under the Securities Exchange Act of 1934 were effective to ensure that information required to be disclosed in reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms.

 

Changes in Internal Controls.

 

There were no significant changes in our internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation. There were no significant deficiencies or material weaknesses and therefore there were no corrective actions taken. However, the design of any system of controls is based in part upon certain assumptions about the likelihood of future events and there is no certainty that any design will succeed in achieving its stated goal under all potential future considerations, regardless of how remote.  

 

Management’s Report on Internal Control over Financial Reporting

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting as defined in Rule 13a-15(f) under the Exchange Act. Internal control over financial reporting refers to a process designed by, or under the supervision of, our Chief Executive Officer and Chief Financial Officer and effected by our Board, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in connection with generally accepted accounting principles, including those policies and procedures that:

 

     
  - pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of our assets;
     
  - provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and
     
  - provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on our consolidated financial statements.

 

Because of its inherent limitations, internal control over financial reporting cannot provide absolute assurance of the prevention or detection of misstatements. In addition, projections of any evaluation of effectiveness to future periods are subject to risk

19
 

that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

 

In connection with the preparation of this Annual Report on Form 10-K for the year ended June 30, 2013, management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our internal controls over financial reporting, pursuant to Rule 13a-15 under the Exchange Act. Our Chief Executive Officer and Chief Financial Officer have concluded that the design and operation of our internal controls and procedures are effective as of June 30, 2013. There were no significant changes in our internal controls over financial reporting that occurred during the fourth fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

 

This Annual Report on Form 10-K does not include an attestation report of the Company’s independent 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 temporary rules of the Securities and Exchange Commission that permit us to provide only management’s report in this Annual Report on Form 10-K.

 

ITEM 9B. OTHER INFORMATION

 

Not Applicable.

  

PART III

 

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.

 

The following table sets forth as of June 30, 2013 certain information regarding our current directors and executive officers:

 

  Name Age Position
  Roger Duffield 70 Chairman, President, Secretary and Chief Financial Officer
  Callum Baylis-Duffield 28 Vice President-Sales, Director
  Daron Baylis Duffield 62 Director
  Brian Johnson 57 Director
  David Rzepnicki 42

Director

 

Roger Duffield – Chairman, President, Secretary and Chief Financial Officer

 

Roger Duffield has a significant background in the development   and management of start-ups, private and public companies, especially in the United States, Europe and South Africa. His previous contributions in the United States public sector include Klinair Technologies Inc. and Rhombic Inc. relating to energy and hydrocarbon technologies. Through his extensive involvement with research and development programs with a number of academic institutions, including Penn State, University of Southern California, University of Washington, and the University of Limerick, Ireland, he was awarded two honorary Russian doctorates in Natural Sciences from the University of Moscow and Novosibirsk. In 2001 the Foundation for International Services, California recognized a degree in BSc. Chemical Engineering.

 

In 2001 he co-founded Global Energy Solutions Corporation Limited, Dublin, Ireland, recently acquired by Plandaí Biotechnology, Inc., and in 2003, the USA-based Research Company, CRS Technologies Inc. Mr. Duffield now heads this group of companies specializing, through private and public investment in the farming and recovery of highly valuable botanical extracts with unique characteristics.

 

Callum Baylis-Duffield – Director, Vice President

 

Mr. Callum Baylis-Duffield is a graduate in International Business with French (BA Hons) from the University of the West of England. From 2007-2010, he was employed by Johnson and Johnson UK as a marketing & sales manager of a proprietary surgical device. Since 2010 he has been exclusively employed by Global Energy Solutions as the Director of Marketing and Sales and for the past 18 months has been based in South Africa where he has been integral to bringing the proprietary extract to market. Mr Baylis-Duffield has been involved with the research and development of the Plandaí’s proprietary emulsions since 2004 and has worked extensively with the USA scientific team.

 

 

20
 

Daron Baylis Duffield – Director

 

Daron Baylis Duffield has a PhD in Clinical Psychology and is a consultant psychiatrist with an international practice. She is the co-founder and Director of Global Energy Solutions Corporation Limited. Born in Malawi and has lived a great deal of her life in East and Southern Africa, she has an in-depth knowledge of the malnutrition crisis, alongside the accompanying physical and psychological dilemmas facing the people of Africa. During the 1990s she worked with the Red Cross in the HIV/Aids programs in South Africa.

 

Brian Johnson – Director

 

Mr. Johnson is a patent attorney with a Bachelor of Science degree in Electrical Engineering and Juris Doctorate degree, both from the University of Texas, Austin and a Bachelor of Science degree in Mechanical Engineering from the University of Colorado, Boulder. He has practiced as an engineer in the United States Air Force as well as in the private sector, was previously a patent inspector, and was admitted to the Texas State Bar in 1995. Since 2008, he has served a patent counsel for Intellectual Ventures, LLC, prior to which he was Of Counsel Attorney for Davis Wright Tremaine, LLP.

 

David Rzepnicki – Director

 

Mr. Rzepnicki holds a Bachelor of Science degree in Accounting from Barry University and has worked as a Chief Financial Officer or Controller for several companies across a diversified field of industries including fashion, real estate, energy, logistics and insurance. He currently serves as controller for Excess Health, Inc., prior to which he was controller for Missmatched, Inc. and Chief Financial Officer of Scott-Lawrence Realty and Development Corporation.

 

DIRECTOR COMPENSATION

 

The Company does not presently have any compensation agreements with its directors.

 

TERM OF OFFICE

 

The directors named above will serve until the next annual meeting of our shareholders. In absence of an employment agreement, officers hold their positions at the satisfaction of the Board of Directors.

 

FAMILY RELATIONSHIPS

 

Roger Duffield and Daron Baylis Duffield are married. Callum Baylis-Duffield is the son of Roger Duffield and Daron Baylis Duffield.

 

INVOLVEMENT IN CERTAIN LEGAL PROCEEDINGS

 

None of our directors or executive officers has, during the past five years,

 

1.      have been convicted in a criminal  proceeding  and none of our directors or executive officers is subject to a pending criminal proceeding,


2.      been  subject  to any order,  judgment,  or  decree,  not  subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining,  barring, suspending or otherwise limiting his involvement in any type of business, securities,  futures, commodities or banking activities, or


3.      been found by a court of competent  jurisdiction  (in a civil  action), the Securities and Exchange Commission or the Commodity Futures Trading Commission  to  have   violated  a federal  or  state   securities  or commodities law, and the judgment has not been reversed,  suspended, or vacated.

 

AUDIT COMMITTEE FINANCIAL EXPERT

 

The Company's board of directors does not have an "audit committee financial expert," within the meaning of such phrase under applicable regulations of the Securities and Exchange Commission, serving on its audit committee. The board of directors believes that all members of its audit committee are financially literate and experienced in business matters, and that one or more members of the audit committee are capable of (i) understanding generally accepted accounting principles ("GAAP") and financial statements, (ii) assessing the general application of GAAP principles in connection with our accounting for estimates, accruals and reserves, (iii) analyzing and evaluating our financial statements, (iv) understanding our internal controls and procedures for financial reporting; and (v) understanding audit committee functions, all of which are attributes of an audit committee financial expert. However, the board of directors believes that there is not any audit committee member who has obtained these attributes through the experience specified in the SEC's definition of "audit committee financial expert." Further, like many small companies, it is difficult for the Company to attract and retain board members who qualify as "audit committee financial experts," and competition for these individuals is significant. The board believes that its current audit committee is able to fulfill its role under SEC regulations despite not having a designated "audit committee financial expert."

21
 

 

COMPLIANCE WITH SECTION 16(A) OF THE EXCHANGE ACT

 

The Company does not have a class of securities registered pursuant to Section 12 of the Securities Exchange Act of 1934. Accordingly, the Company's executive officers and directors and persons who own more than 10% of its equity securities are not subject to the beneficial ownership reporting requirements of Section 16(a) of that Act. However, although not required, certain of such persons do file beneficial ownership reports with the Securities and Exchange Commission.

To the best of our knowledge and based solely upon our review of the reports filed and submitted to the Company during the fiscal year ended June 30, 2012, the Company believes that all reports were timely filed by such persons.

 

ITEM 11. EXECUTIVE COMPENSATION.

 

The following table provides certain summary information concerning the compensation earned by the named executive officers for the year ended June 30, 2013 and June 30, 2012, for services rendered in all capacities to the Company:

 

Name & Principal Position  Year  Salary ($)  Bonus ($)  Stock Awards ($)  Option Awards ($)  Non-Equity Incentive Plan Compensation ($)  Nonqualified Deferred Compensation Earnings ($)  All Other Compensation ($)  Total ($)
Roger Duffield.
CEO, CFO and Director
   2013    20,000    -0-    100,000    -0-    -0-    -0-    -0-    120,000 
    2012    -0-    -0-    -0-    -0-    -0-    -0-    -0-    -0- 
Callum Baylis-Duffield, Direcor, Vice President   2013    20,000    -0-    50,000    -0-    -0-    -0-    -0-    70,000 
    2012    7,410    -0-    -0-    -0-    -0-    -0-    -0-    7,410 
                                              
Daron Baylis Duffield, Director   2013    -0-    -0-    6,000    -0-    -0-    -0-    -0-    6,000 
    2012    -0-    -0-    -0-    -0-    -0-    -0-    -0-    -0- 
                                              
Brian Johnson
Director
   2013    -0-    -0-    6,000    -0-    -0-    -0-    -0-    6,000 
    2012    -0-    -0-    -0-    -0-    -0-    -0-    -0-    -0- 
                                              
David Rzepnicki
Director
   2013    20,000    -0-    6,000    -0-    -0-    -0-    -0-    26,000 
    2012    -0-    -0-    -0-    -0-    -0-    -0-    -0-    -0- 
                                              

We do not have a long-term incentive plan or arrangement of compensation with any individual in the group of officers and directors except as listed below:

 

In March 2013, the Company executed five-year employment contract with Roger Duffield, who serves as Chief Executive Officer and Chief Financial Officer. The contract stipulates that once the Company successfully raises $5,000,000 in capital equity, Roger Duffield is to be paid an annual salary of $180,000. As of right now, the Company has not raised the $5,000,000 in capital equity so it cannot sustain such payments and therefore pays Roger Duffield $5,000 per month in base compensation. The contract also calls for an annual payment of 2,000,000 common shares of Plandaí stock at the completion of each year of the contract.

22
 

 

In March 2013, the Company executed five-year employment contract with Callum Baylis Duffield, who serves as Vice President of Sales and Marketing and also as President of the company’s nutriceutical division. The contract stipulates that once the Company successfully raises $5,000,000 in capital equity, Callum Baylis Duffield is to be paid an annual salary of $120,000. As of right now, the Company has not raised the $5,000,000 in capital equity so it cannot sustain such payments and therefore pays Callum Baylis Duffield $5,000 per month in base compensation. The contract also calls for an annual payment of 1,000,000 common shares of Plandaí stock at the completion of each year of the contract.

 

EMPLOYMENT AGREEMENTS

 

All of the company’s employees operate under employment contracts pursuant to South African labor laws. These contracts vary in term and compensation depending on the individual employee and their position within the company.

 

In March 2013, the Company executed five-year employment contract with a member of management who serves as president of the company’s pharmaceutical division. The contract stipulates that once the Company successfully raises $5,000,000 in capital equity, the member of management is to be paid an annual salary of $120,000. As of right now, the Company has not raised the $5,000,000 in capital equity so it cannot sustain such payments and therefore pays the member of management $5,000 per month in base compensation. The contract also calls for an annual payment of 1,000,000 common shares of Plandaí stock at the completion of each year of the contract.

 

STOCK OPTION GRANTS AND EXERCISES

 

We granted no stock options to any of our officers or directors.

 

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.

 

The following table sets forth information regarding the beneficial ownership of our common stock with respect to each of our executive officers, each of our directors, each person known by us to own beneficially more than 5% of the common stock, and all of our directors and executive officers as a group. Each individual or entity named has sole investment and voting power with respect to shares of common stock indicated as beneficially owned by them, except where otherwise noted.

 

 

Name and Address (1)

Number of Shares Beneficially Owned(2) Class Percentage Beneficially Owned(3)                         

Roger Duffield

Chairman, President, Secretary and Chief Financial Officer

32,747,400(4)(5) Common 30%
Callum Baylis-Duffied, VP-Sales 1,232,000(5) Common *

Daron Baylis Duffield

Director

32,383,500(4) Common 30%

Brian Johnson

Director

1,500,000(5) Common 1.4%

David Rzepnicki

Director

150,000(5) Common *

All Officers and Directors as a group (6 in number)

 

*Denotes less than 1%

68,012,900 Common 64%

 

(1) Unless otherwise stated, the address of all persons is 2226 Eastlake Avenue East #156, Seattle, WA 98102.

(2) The information contained in this table with respect to beneficial ownership reflects "beneficial ownership" as defined in Rule 13d-3 under the Exchange Act. All information with respect to the beneficial ownership of any shareholder has been furnished by such shareholder and, except as otherwise indicated or pursuant to community property laws, each shareholder has sole voting and investment power with respect to shares listed as beneficially owned by such shareholder. Pursuant to the rules of the Commission, in calculating percentage ownership, each person is deemed to beneficially own shares subject to options or warrants exercisable within 60 days of the date of this Filing, but shares subject to options or warrants owned by others (even if exercisable within 60 days) are deemed not to be outstanding.

(3) The above percentages are based on 106,270,760 shares of common stock outstanding as of June 30, 2013.

(4) Includes 63,867,000 shares held by a trust of which Roger Duffield and Daron Baylis-Duffield are equal beneficiaries.

(5) Amount does not includes shares awarded in FY2013 which have not been issued as of June 30, 2013 (2,000,000 shares to R. Duffield, 1,000,000 shares to C. Duffield, 150,000 shares each to Johnson and Rzepnicki).

 

 

 

23
 

 

CHANGES IN CONTROL

 

We are unaware of any contract or other arrangement, the operation of which may, at a subsequent date, result in a change in control of our Company. Presently in the by-laws there are no provisions that could delay a change in control of the Company.

 

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

 

To the best of our knowledge, there are no other transactions involving any Director, Executive Officer, any nominee for election as a Director or Officer, or any 5% shareholder who is a beneficial owner or any member of the immediate family of the same, except as listed below:

 

In June 2012, the Company’s subsidiary, Green Gold Biotechnology (Pty), Ltd., ordered machinery and equipment from CRS Technology, Inc., a company controlled by a trust of which Roger Duffield and Daron Baylis Duffield are the beneficiaries. The total purchase price of the assets acquired of approximately $5,779,200 (R47,793,992) was paid for from proceeds from the Land and Agriculture Bank of South Africa

 

As of June 30, 2013 and 2012, the Company has accounts payable to related parties totaling $145,822 and $7,940 which consists primary of amounts owed to a company controlled by an officer and director of the company which previously paid expenses on behalf of the company.

 

As of June 30, 2013 and 2012, the Company has outstanding loans from the Company’s Chief Executive Officer in the amount of $501,518 and $402,903. These loans were provided for short-term working capital purposes and bear interest at a rate of 4%. The loans cannot be called until the Company’s obligations under the Land & Agriculture Bank of South Africa have been met.

 

The Company leases its South African Office space from a trust of which one of the beneficiaries serves on the Board of Directors of Dunn Roman Holding—Africa, Ltd., a subsidiary of the Company. The lease agreement calls for monthly payments of $2,500. During the years ended June 30, 2013 and 2012, a total of $32,154 and $0 has been paid in rent expense.

 

ITEM 14. PRINCIPAL ACCOUNTANT FEES & SERVICES.

 

The following is a summary of the fees billed to the Company by the Company’s auditors for professional services rendered during 2013 and 2012:

 

   2013  2012
Audit Fees  $34,000   $18,000 
Audit-Related Fess   —      —   
Tax Fees   —      —   
Total  $34,000   $18,000 

 

AUDIT FEES. Consist of fees billed for professional services rendered for the audits of our consolidated financial statements included in our annual report, reviews of our interim consolidated financial statements included in quarterly reports, other services performed in connection with filings with the Securities and Exchange Commission and related comfort letters and other services that were provided by Patrick Rodgers, CPA, PA, Mike Cronnin, CPA, PA and Robison, Hill & Company in connection with statutory and regulatory filings or engagements.

 

TAX FEES. Consist of fees billed for professional services for tax compliance, tax advice and tax planning. These services include assistance regarding federal, state and local tax compliance and consultation in connection with various transactions and acquisitions.

 

ALL OTHER FEES. Consist of fees billed for products and services provided by the principal accountant other than Audit Fees, Audit-Related Fees and Tax Fees.

 

 

 

 

 

 

 

24
 

 

 

 

 

 

 

ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES

      Incorporated by reference
Exhibit Exhibit Description Filed herewith Form Period ending Exhibit Filing date
3.1 Plandaí Biotechnology, Inc. Articles   10SB-12G   3.1 3/6/2005
3.2

Plandaí Biotechnology, Inc.

By-Laws

  10SB-12G   3.2 3/6/2005
10.1 The Shamile Communal Property Association Lease   10-K   10.1 9/30/2013
31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 X        
31.2 Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 X        
32.1 Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 X        
32.2 Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 X        
101.INS XBRL Instance Document X        
101.SCH XBRL Taxonomy Extension Schema Document X        
101.CAL XBRL Taxonomy Extension Calculation Linkbase Document X        
101.LAB XBRL Taxonomy Extension Label Linkbase Document X        
101.PRE XBRL Taxonomy Extension Presentation Linkbase Document X        
101.DEF XBRL Taxonomy Extension Definition Linkbase Definition X        

 

25
 

 

 

 

C O N T E N T S

 

  PAGE
   
Reports of Independent Registered Public Accounting Firm F-2
   
Consolidated Balance Sheets as of June 30, 2013 and 2012 F-3
   
Consolidated Statements of Operations for the years ended June 30, 2013 and 2012 F-4
   
Consolidated Statement of Cash Flows for the years ended June 30, 2013 and 2012 F-5
   
Consolidated Statement of Stockholders’ Deficit for the years ended June 30, 2013 and 2012 F-6
   
Notes to Consolidated Financial Statements F-7
   

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

F-1
 

TERRY L. JOHNSON, CPA

406 Greyford Lane

Casselberry, Florida 32707

Phone 407-721-4753

Fax/Voice Message 866-813-3428

E-mail cpatlj@yahoo.com

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Shareholders
Plandai Biotechnology, Inc., and Subsidiary
Seattle, WA

I have audited the accompanying balance sheets of Plandai Biotechnology, Inc., and Subsidiary ("the Company") as of June 30, 2013 and 2012 and the statements of operations, stockholders' equity, and cash flows for the years then ended.  These financial statements are the responsibility of the Company's management. My responsibility is to express an opinion on these financial statements based on my audit.

I conducted my audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatements. I was not engaged to perform an audit of its internal control over financial reporting. My audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company's internal control over financial reporting. Accordingly, I 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. I believe that my audits provide a reasonable basis for my opinion. In my opinion, these financial statements present fairly, in all material respects, the financial position of Plandai Biotechnology, Inc, and Subsidiary as of June 30, 2013 and 2012 and the results of its operations and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States.

In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Plandai Biotechnology, Inc., and Subsidiary as of June 30, 2013 and 2012 and the results of its operations and its cash flows for the year ended June 30, 2013 and 2012 in conformity with accounting principles generally accepted in the United States.

 

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern. As described in Note 15 of the accompanying financial statements, the Company has incurred losses since inception, has a negative working capital balance at June 30, 2013, and has an accumulated deficit, which raises substantial doubt about its ability to continue as a going concern. Management’s plans in regard to this matter are described in Note 15. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

/s/ Terry L. Johnson, CPA

Casselberry, Florida

April 29, 2014

 

 

 

 

F-2
 

 

PLANDAI BIOTECHNOLOGY, INC.

CONSOLIDATED BALANCE SHEETS 

 

   June 30,  June 30,
   2013  2012
ASSETS          
Current Assets:          
Cash   498,917    5,112 
Inventory   6,439    —   
Accounts Receivable   13,638    —   
Total Current Assets   518,994    5,112 
           
Deposits   10,648    5,813,990 
Other Assets   380,929    22,068 
Fixed Assets – Net   7,924,910    215,837 
Total Assets   8,835,482    6,057,007 
           
LIABILITIES & STOCKHOLDERS' DEFICIT          
Current Liabilities:          
Accounts Payable and Accrued Expenses   516,006    64,322 
Accrued Interest   93,184    28,219 
Convertible Note Payable   103,500    —   
Derivative Liability   45,227    —   
Related Party Payables   145,822    7,940 
Total Current Liabilities   903,739    100,481 
           
Loans from Related Parties   501,518    402,903 
Capitalized Lease Obligation   988,381    592,639 
Credit Line   752,503    614,168 
Long Term Debt, Net of Discount   9,173,702    5,228,990 
Total Liabilities   12,319,844    6,939,181 
           
STOCKHOLDERS' DEFICIT          
Common Stock, authorized 500,000,000 shares, $0.0001 par value; 106,270,760 and 110,895,300 issued and outstanding at June 30, 2013 and June 30, 2012, respectively   10,628    11,090 
Stock Subscription Payable   261,600    —   
Additional Paid-In Capital   7,833,976    7,894,278 
Retained Deficit   (10,903,811)   (8,715,808)
Cumulative Foreign Currency Translation Adjustment   169,437    4,225 
Total Stockholders’ Deficit   (2,628,171)   (806,215)
Non-controlling Interest   (856,191)   (75,959)
Stockholders’ Deficit Allocated to Plandaí Biotechnology   (3,484,362)   (882,174)
Total Liabilities and Stockholders' Deficit   8,835,482    6,057,007 
           
           

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

 

 

 

F-3
 

 

 

  PLANDAI BIOTECHNOLOGY, INC.
  CONSOLIDATED STATEMENTS OF OPERATIONS
               
               
    Years Ended
      June 30,
      2013     2012
  Revenues    $              359,143      $                 74,452
    Cost of Goods   963,209                                  -   
  Gross Profit                   (604,066)                         74,452
             
  Expenses:          
    Salaries & Wages   764,230                   2,301,534
    Rent   477,766                         64,053
    Utilities   15,003                         35,745
    Insurance   71,601      -
    Professional Services   231,074                   1,135,056
    Depreciation   135,039      -
    General & Administrative   358,986                       347,839
  Total Expenses   2,053,698                   3,884,226
             
  Operating Income (Loss)                (2,657,764)                 (3,809,774)
             
  Other Income/(Expense):            
  Interest Expense                   (265,245)                       (28,586)
  Derivative Interest                       (45,227)                                  -
  Total Other Income/(Expense):                     (310,472)                       (28,586)
               
  Net Income (Loss)                 (2,968,236)                 (3,838,360)
               
Income (Loss) Allocated to Non-controlling Interest                   780,231                         61,188
               
  Net Loss, Adjusted                 (2,188,005)                 (3,777,172)
               
  Other Comprehensive Income (loss):            
Foreign Currency Translation Adjustment     165,212                           4,225
  Comprehensive Income (Loss)      $         (2,022,793)      $         (3,772,947)
               
  Basic & diluted loss per share      $                   (0.01)      $                  (0.02)
  Weighted Avg. Shares Outstanding     110,895,300     96,323,533
               
  The accompanying notes are an integral part of these financial statements.
F-4
 

 

PLANDAI BIOTECHNOLOGY, INC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
                         
                                   Cumulative       
                    Stock                Currency       
     Shares      Common      Additional      Subscription      Accumulated      Non      Translation      Total  
     Outstanding      Stock      Paid-in Capital      Payable      Deficit      Controlling
Interest
     Adjustment      Equity  
Balance as of June 30, 2011   76,000,000   $7,600   $4,195,610   $—     $(4,938,636)  $(14,771)  $—     $(750,197)
                                         
Deemed capital contribution from                                        
forgiveness of related party debt   —      —      139,458    —      —      —      —      139,458 
Stock issued on share exchange                                        
November 17, 2011   25,415,300    2,542    (2,542)   —      —      —      —      —   
Foreign currency translation adjustment   —      —      —      —      —      —      4,225    4,225 
Shares issued as loan origination fee   1,500,000    150    584,850    —      —      —      —      585,000 
Shares issued for services   7,980,000    798    2,976,902    —      —      —      —      2,977,700 
Net loss for year ended June 30, 2012   —      —      —      —      (3,777,172)   (61,188)   —      (3,838,360)
Balance as of June 30, 2012   110,895,300    11,090    7,894,278    —      (8,715,808)   (75,959)   4,225    (882,174)
                                         
Forgiveness of shareholder loan interest   —      —      3,736    —      —      —      —      3,736 
Stock issued for cash   525,460    53    140,447    —      —      —      —      140,500 
Cancelled shares   (5,150,000)   (515)   (204,485)   —      —      —      —      (205,000)
Stock issuable to officers and directors                                        
for services   —      —      —      261,600    —      —      —      261,600 
Foreign currency translation adjustment   —      —      —      —      —      —      165,212    165,212 
Net loss for year ended June 30, 2013   —      —      —      —      (2,188,005)   (780,231)   —      (2,968,236)
Balance as of June 30, 2013   106,270,760   $10,628   $7,833,976   $261,600   $(10,903,813)  $(856,191)  $169,437    (3,484,362)

 

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

 

F-5
 

 

PLANDAI BIOTECHNOLOGY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
          Years Ended
          June 30,
          2013   2012
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net loss          $  (2,188,005)    $  (3,777,172)
Adjustments to reconcile net loss to net cash        
      provided by operating activities:        
Depreciation                  135,039                           -
Loss allocated to non-controlling owners            (780,232)              (61,118)
Stock issued for services                (80,000)           2,977,700
Common stock issuable                261,600                           -
Foreign currency translation adjustment              165,212                  4,225
Forgiveness of interest                      3,736                           -
Derivative liability                    45,227                           -
Capitalized lease obligation                395,742                64,053
Prepaid expenses                  (10,647)              (22,068)
Accounts receivable                  (13,638)                           -
Inventory                      (6,439)                           -
Other assets                (358,861)                           -
Accounts payable and accrued expenses              451,684                27,347
Related party payables                  137,882              (37,482)
Accrued interest                    64,965                28,219
Net cash used in operating activities         (1,776,735)            (796,296)
               
CASH FLOWS FROM INVESTING ACTIVITIES:      
Deposits on equipment                               -         (5,813,990)
Loans from related parties                (26,385)              402,903
Purchase of fixed assets           (2,030,122)            (215,837)
Net cash used in investing activities         (2,056,507)         (5,626,924)
               
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from long-term debt, net of discount           3,944,712           5,813,990
Borrowings under convertible note                103,500    
Net borrowings under credit line                138,335              614,168
Proceeds from the sale of common stock              140,500                           -
Net cash provided by financing activities           4,327,047           6,428,158
Net (decrease) increase in cash and cash equivalents            493,805                  4,938
Cash and cash equivalents at beginning of year                  5,112                      174
Cash and cash equivalents at end of year    $        498,917    $            5,112

 

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

 

                 

 

 

F-6
 

PLANDAI BIOTECHNOLOGY, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED JUNE 30, 2013 AND 2012

 

 

NOTE 1 - NATURE OF OPERATIONS AND GOING CONCERN

 

Plandaí Biotechnology, Inc.’s (the “Company” or “Plandaí”) consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustment relating to recoverability and classification of recorded amounts of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

 

The Company's continued existence is dependent upon its ability to continue to execute its operating plan and to obtain additional debt or equity financing. There can be no assurance the necessary debt or equity financing will be available, or will be available on terms acceptable to the Company.

 

Plandaí and its subsidiaries focus on the production of proprietary botanical extracts for the nutriceutical and pharmaceutical industries. The company grows much of the live plant material used in its products on a 3,000 hectare estate it operates under a 49-year notarial lease in the Mpumalanga region of South Africa. Plandaí uses a patented extraction process that is designed to yield highly bioavailable products of pharmaceutical-grade purity. The first product to be brought to market is Phytofare™ Catechin Complex, a green-tea derived extract that has multiple potential wellness applications. The company’s principle holdings consist of land, farms and infrastructure in South Africa. The Company is actively pursuing additional financing and has had discussions with various third parties, although no firm commitments have been obtained. Management believes these efforts will generate sufficient cash flows from future operations to pay the Company's obligations and realize positive cash flow. There is no assurance any of these transactions will occur.

 

Organization

 

On November 17, 2011, the Company, through its wholly-owned subsidiary, Plandaí Biotechnologies, Inc., consummated a share exchange with Global Energy Solutions, Inc. (“GES”), an Irish corporation. Under the terms of the share exchange, GES received 76,000,000 shares of the Company’s common stock that had been previously issued to Plandaí in exchange for 100% of the issued and outstanding capital of GES. Concurrent with the share exchange, the Company sold its subsidiary, Diamond Ranch, Ltd., together with its wholly-owned subsidiary, Executive Seafood, Inc., to a former officer and director of Diamond Ranch. Under the terms of the sale, the purchasers assumed all associated debt as consideration. During the three months ended September 30, 2011 and through the date of the share exchange, Diamond Ranch, Ltd. and Executive Seafood, Inc. had negligible revenues from operations, generated a net loss of $126,000, and as of September 30, 2011, liabilities exceeded assets by over $5,000,000. The Company subsequently changed its name to Plandaí Biotechnology, Inc. and dissolved GES.

 

For accounting purposes, the share exchange has been treated as a reverse merger since the acquired entity now forms the basis for operations and the transaction resulted in a change in control, with the acquired company electing to become the successor issuer for reporting purposes. The accompanying financial statements have been prepared to reflect the assets, liabilities and operations of Plandaí Biotechnology, Inc. exclusive of Diamond Ranch Foods since the acquisition and sale were executed simultaneously. For equity purposes, the shares issued to acquire GES (76,000,000 shares) have been shown to be issued and outstanding since inception, with the previous balance outstanding (25,415,300 shares Common) treated as a new issuance as of the date of the share exchange. The additional paid-in capital and retained deficit shown are those of Plandaí and its subsidiary operations.

 

In management’s opinion, all adjustments necessary for a fair statement of the results for the presented periods have been made.  All adjustments made were of a normal recurring nature.

 

Basis of Presentation

 

The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

 

NOTE 2 – SUMMARY OF ACCOUNTING POLICIES

 

This summary of accounting policies for Plandaí Biotechnology, Inc. and its wholly-owned subsidiaries, is presented to assist in understanding the Company's financial statements. The accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the financial statements.

 

F-7
 

Use of Estimates

 

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the financial statements, management is required to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the balance sheet and statement of operations for the year then ended. Actual results may differ from these estimates. Estimates are used when accounting for allowance for bad debts, collect ability of accounts receivable, amounts due to service providers, depreciation and litigation contingencies, among others.

 

Cash and Cash Equivalents

 

For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.

 

Revenue recognition

 

The Company presently derives its revenue from the sale of timber and agricultural products produced on its farm and tea estate holdings in South Africa. Revenue is recognized when the product is delivered to the customer. Once production of the Company’s Phytofare™ botanical extracts commence in 2014, revenues will be recognized when product is shipped.

 

Concentration of Credit Risk

 

The Company has no significant off-balance sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.

 

Property and equipment

 

Property and equipment are stated at cost less accumulated depreciation and amortization.  The Company provides for depreciation and amortization using the straight-line method over the estimated useful lives of the related assets, which range from three to five years. Maintenance and repair costs are expensed as they are incurred while renewals and improvements which extend the useful life of an asset are capitalized.  At the time of retirement or disposal of property and equipment, the cost and related accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is reflected in the results of operations.

 

Impairment of Long-Lived Assets

 

In accordance with ASC Topic 360, formerly SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, the Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable. The assessment of possible impairment is based on the Company’s ability to recover the carrying value of its asset based on estimates of its undiscounted future cash flows. If these estimated future cash flows are less than the carrying value of the asset, an impairment charge is recognized for the difference between the asset's estimated fair value and its carrying value. As of the date of these financial statements, the Company is not aware of any items or events that would cause it to adjust the recorded value of its long-lived assets for impairment.


Earnings per Share

 

Basic gain or loss per share has been computed by dividing the loss for the period applicable to the common stockholders by the weighted average number of common shares outstanding during the years. There are no dilutive outstanding common stock equivalents as of June 30, 2013 and 2012.

 

Income Taxes

 

The Company accounts for income taxes under ASC Topic 740, formerly SFAS No. 109, Accounting for Income Taxes, as clarified by ASC Topic 740, formerly FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, (“FIN No. 48”). Deferred tax assets and liabilities are determined based upon differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized.

 

The Company adopted the provisions of ASC Topic 740, formerly FIN No. 48 on January 1, 2007. Previously, the Company had accounted for tax contingencies in accordance with Statement of Financial Accounting Standards No. 5, Accounting for

F-8
 

Contingencies. As required by ASC Topic 450, formerly FIN No. 48, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. At the adoption date, the Company applied ASC Topic 740, formerly FIN No. 48 to all tax positions for which the statute of limitations remained open. As a result of the implementation of ASC Topic 740, formerly FIN No. 48, the Company did not recognize any change in the liability for unrecognized tax benefits.

 

The Company is subject to income taxes in the U.S. federal jurisdiction and that of South Africa. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before April 1, 2007.

 

The Company is not currently under examination by any federal or state jurisdiction.

 

The Company’s policy is to record tax-related interest and penalties as a component of operating expenses.

 

Off-Balance Sheet Arrangements

 

We have no off-balance sheet arrangements.

 

Emerging Growth Company

 

We qualify as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, we can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period.

 

Fair Value of Financial Instruments

 

Fair value of certain of the Company’s financial instruments including cash and cash equivalents, accounts receivable, account payable, accrued expenses, notes payables, and other accrued liabilities approximate cost because of their short maturities. The Company measures and reports fair value in accordance with ASC 820, “Fair Value Measurements and Disclosure” defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments.

 

Fair value, as defined in ASC 820, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset should reflect its highest and best use by market participants, principal (or most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the risk of nonperformance, which includes, among other things, the Company’s credit risk.

 

Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability, and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting measurement as follows:

 

Level 1 – Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities the Company has the ability to access.

Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

 

Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

 

Fair value measurements are required to be disclosed by the Level within the fair value hierarchy in which the fair value measurements in their entirety fall. Fair value measurements using significant unobservable inputs (in Level 3 measurements) are subject to expanded disclosure requirements including a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and

F-9
 

unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earning are reported in the statement of income.

 

Advertising

 

Advertising costs are expensed as incurred.

 

Principles of Consolidation

 

Plandaí Biotechnology, Inc. and its subsidiaries, are encompassed in the following entities, which have been consolidated in the accompanying financial statements:

 

Global Energy Solutions, Ltd. 100% owned by Plandaí Biotechnology, Inc.  
Dunn Roman Holdings—Africa, Ltd 82% owned by Plandaí Biotechnology, Inc.  
Breakwood Trading 22 (Pty) Ltd. 74% owned by Dunn Roman Holdings-Africa  
Green Gold Biotechnologies (Pty) Ltd. 74% owned by Dunn Roman Holdings-Africa  

 

During the year ended June 30, 2013, the Company determined that the entity, Global Energy Solutions, was unnecessary to operations and decided to dissolve that corporation, resulting in the stock of Dunn Roman Holdings-Africa being held directly by Plandaí. All liabilities were either satisfied or forgiven and all bank accounts closed. There were no operations in Global Energy Solutions during the periods presented. Global Energy Solutions was officially dissolved during the year ended June 30, 2013.

 

All intercompany balances have been eliminated in consolidation.

 

Straight-lining of Lease Obligation

 

Plandaí’s subsidiaries have two long-term, material leases which either have escalating terms or included several months of “free” rent, including the 49-year notarial lease for the Senteeko Tea Estate. In accordance with US Generally Accepted Accounting Principles, the Company has calculated a straight-line monthly cost on the leases and recorded the corresponding difference between the amount actually paid and the amount calculated as a Capitalized Lease Obligation. As of June 30, 2013, the amount of this deferred liability was $988,381.


Recent Accounting Pronouncements

 

The Company has adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 105-10, Generally Accepted Accounting Principles – Overall (“ASC 105-10”), which was formerly known as SFAS 168. ASC 105-10 establishes the FASB Accounting Standards Codification (the “Codification”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with U.S. GAAP. Rules and interpretive releases of the Securities and Exchange Commission (the "SEC") under authority of federal securities laws are also sources of authoritative U.S. GAAP for SEC registrants.  All guidance contained in the Codification carries an equal level of authority.  The Codification superseded all existing non-SEC accounting and reporting standards and all other non-grandfathered, non-SEC accounting literature not included in the Positions or Emerging Issues Task Force Abstracts.  Instead, it will issue Accounting Standards Updates (“ASUs”). The FASB will not consider ASUs as authoritative in their own right.  ASUs will serve only to update the Codification, provide background information about the guidance and provide the basis of conclusions on the change(s) in the Codification. References made to FASB guidance throughout this document have been updated for the Codification.

 

In May 2011, the Financial Accounting Standards Board (FASB) issued authoritative guidance regarding Fair Value Measurement: Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, which resulted in common requirements for measuring fair value and for disclosing information about fair value measurement under both U.S. GAAP and International Financial Reporting Standards (IFRS), including a consistent definition of the term "fair value." The amendments were effective beginning in the first quarter of 2012, and did not have a material effect on our consolidated financial statements.

 

In June 2011, the FASB issued Accounting Standards Update 2011-05, Presentation of Comprehensive Income. This update amended the provisions of FASB ASC 220-10 by eliminating the option of reporting other comprehensive income in the statement of changes in stockholders’ equity. Companies will have the option of presenting net income and other comprehensive income in a single, continuous statement of comprehensive income or presenting two separate but consecutive statements of net income and comprehensive income. The new presentation requirements are effective for interim and annual periods beginning after December 15, 2011. The adoption of this standard is not anticipated to have a material impact on our financial statements.

F-10
 

 

In September 2011, the FASB issued Accounting Standards Update 2011-08, Testing Goodwill for Impairment. This update amended the provisions of FASB ASC 350-20-35 by allowing an entity the option to make a qualitative evaluation about the likelihood of goodwill impairment to determine whether it should calculate the fair value of a reporting unit. The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted, including for annual and interim goodwill impairment tests performed as of a date before September 15, 2011, if an entity’s financial statements for the most recent annual or interim period have not yet been issued. The adoption of this standard is not anticipated to have a material impact on our financial statements.

 

The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its results of operation, financial position or cash flows.  Based on that review, the Company believes that none of these pronouncements will have a significant effect on its consolidated financial statements.

 

NOTE 3 – SEGMENT INFORMATION

 

Geographical Locations

 

The following information summarizes the financial information regarding Plandaí Biotechnology Inc. and its three South African subsidiaries at June 30, 2013:

 

  South Africa United States
Assets $          8,829,559 $                       5,923
Liabilities             11,678,121                561,723
Revenues                359,143                           -
Expenses  $         1,387,660  $               312,438

 

NOTE 4 –LOANS FROM RELATED PARTIES

 

As of June 30, 2013, the Company has outstanding loans to various related parties in the amount of $501,518. These loans were provided for short-term working capital purposes, bear interest at rates between 8-10%, and mature on January 1, 2014.

 

NOTE 5 - LINE OF CREDIT

 

During the year ended June 30, 2012, the company entered into a line of credit agreement for $500,000 which was later increased to $1,000,000. The line of credit matures on January 5, 2014 and bears interest at the rate of ten percent (10%) per annum. As of June 30, 2013, the balance drawn down on the credit line was $752,503 and accrued interest was $93,184. The company is in negotiations to convert the balance outstanding plus accrued interest into common stock and anticipates consummating a resolution to this debt prior to the due date.

 

NOTE 6 – DEBENTURE PAYABLE

 

In May 2013, the company issued an 8% interest rate convertible debenture in the amount of $103,500 which becomes due and payable in February 2014. The debenture is convertible into common stock of the company at a discount of 42% off the market price of the company’s common stock six months after issuance (November 2013). The company has the right to pre-pay the debenture prior to conversion and has made arrangements to do so. The Company recorded a derivative liability of $45,227 which represents the estimated value of the shares over and above the amount of debenture that would be issued on conversion.

 

NOTE 7 – LONG-TERM DEBT

 

In June 2012, the Company, through the majority-owned subsidiaries of Dunn Roman Holdings, Inc., executed final loan documents on a 100 million Rand (approx. $13 million USD) financing with the Land and Agriculture Bank of South Africa. The total loan is comprised of multiple agreements totaling, between Green Gold Biotechnologies (Pty) Ltd. and Breakwood Trading 22(Pty) Ltd., 100 million rand. The loans all bear interest at the rate of prime plus 0.5% per annum and are all due in seven years. In addition, the loans have a 25-month “holiday” in which no payments or interest are due until 25 months after the first drawn down of funds. The loans are collateralized by the assets and operations, including the Senteeko lease, agriculture production and receivables of Dunn Roman Holdings, which is the African operating arm of Plandaí. In addition, Dunn Roman Holdings was required to grant a 15% profit share agreement to the Land Bank which extends through the duration of the loan agreements (7 years unless pre-paid). The profit share agreement extends only to profits generated by Dunn Roman Holdings exclusive of operations of Plandaí and outside of South Africa. In connection with this financing arrangement, the Land and Agriculture Bank of South Africa (the Bank) required the Company to maintain the following loan covenants: debt to equity of 1.5:1, interest coverage ratio of 1.5:1, and security coverage ratio of 1:1.  However, the Company consistantly notified the Bank of this situation. The Company has requested written documentation as to the Bank’s intention. The Bank has not provided this documentation in writing, however they have given verbal approval. In addition they have not started any action against the Company.

 

 

F-11
 

 

As of June 30, 2013, a total of $7,740,800 had been drawn down against the loans by Green Gold Biotechnologies (Pty) Ltd., which was used to purchase fixed assets that will be employed in South Africa to produce the company’s botanical extracts. Additionally, $2,017,903 had been drawn down against the loans by Breakwood Trading22 (Pty) Ltd. to fund the rehabilitation of the Senteeko Tea Estate, including the repair of roads, bridges, and onsite worker housing, and the pruning, weeding and fertilizing of plantation.

 

During the year ended June 30, 2012, the Company issued 1,500,000 shares of restricted common stock to three individuals in exchange for shares of Dunn Roman Holdings stock which had been previously issued. The acquired Dunn Roman shares were then provided to thirds parties in order to comply with the BEE provisions associated with the loan from the Land Bank of South Africa, which required that 15% of Dunn Roman be black owned. The Company has therefore determined to treat the value of the shares issued to acquire the Dunn Roman stock ($585,000) as a cost of securing the financing and recorded as a loan discount which will be amortized over the life of the loan (7 years) once payment of the loan commences in July 2014.

 

As of June 30, 2013, the loan balance was:

 

Loan Principle $9,758,702  
Less: Discount 585,000  
Net Loan per Books $9,173,702  
     

 

NOTE 8 – CURRENCY ADJUSTMENT

 

The Company’s principle operations are located in South Africa and the primary currency used is the South African Rand. Accordingly, the financial statements are first prepared in using Rand and then converted to US Dollars for reporting purposes, with the average conversion rate being used for income statement purposes and the closing exchange rate as of June 30, 2012 applied to the balance sheet. Differences resulting from the fluctuation in the exchange rate are recorded as an offset to equity in the balance sheet. As of June 30, 2013, the cumulative currency translation adjustments were $169,437.

 

NOTE 9 – FIXED ASSETS

 

Fixed assets, stated at cost, less accumulated depreciation at June 30, 2013 and June 30, 2012 consisted of the following:

 

   June 30,
2013
  June 30,
2012
           
Total Fixed Assets  $8,043,692   $215,837 
Less: Accumulated Depreciation   (118,782)   —   
           
Fixed Assets, net  $7,924,910   $215,837 
           

 

Depreciation expense

 

Depreciation expense for the year ended June 30, 2013 and 2012 was $135,039 and $0, respectively. The Company did not commence depreciating the leasehold improvements and other fixed assets until placed in service. The difference between accumulated depreciation and depreciation expense in 2013 resulted from the application of the currency adjustment (see Note 8).

 

NOTE 10 – DEPOSITS

 

Deposits as of June 30, 2012 consisted of machinery and equipment ordered from CRS Technologies. A deposit of $5,813,990 was paid to CRS Technologies via a loan from Land Bank described in Note 6. During the year ended June 30, 2013, this equipment was received by Plandaí and the balance was transferred to Fixed Assets.

 

 

 

 

 

 

F-12
 

NOTE 11 – COMMON STOCK

 

During the year ended June 30, 2012, the Company recorded the following issuances of stock:

 

A total of 76,000,000 shares of common stock were issued to acquire 100% of the capital of Plandaí Biotechnologies, Inc., which owns several subsidiary companies located in South Africa.  For reporting purposes, these shares have been reflected as outstanding since inception and the issued and outstanding capital immediately prior to the share exchange has been shown as issued as of the date of the share exchange.

 

Prior to executing the share exchange, the Company issued 14,000,000 to various third parties in exchange for services rendered.  These shares, together with the prior outstanding balance, have been treated as shares issued as of the share exchange date since Plandaí is the surviving company for reporting purposes.

 

The Company issued a total of 7,980,000 shares of restricted common stock in exchange for services previously rendered.  The value of such shares on the date of issuance, $2,979,509, has been recorded as an expense in the current period.

 

In February 2012, the Company issued a total of 1,500,000 shares of restricted common stock to three individuals in exchange for shares of Dunn Roman Holdings stock which had been previously issued. The acquired Dunn Roman shares were then provided to thirds parties in order to comply with the BEE provisions associated with the loan from the Land Bank of South Africa, which required that 26% of Dunn Roman be black owned.  The Company has therefore determined to treat the value of the shares issued to acquire the Dunn Roman stock as a cost of securing the financing. The value of the shares on the date of issuance, $585,000, has been recorded as a discount to Long Term Notes Payable. As funds are advanced on the loan, the $585,000 will be amortized over the life of the loan (7 years).

 

During the year ended June 30, 2013, the Company recorded the following common stock transactions:

 

In February of 2013, the Company cancelled 250,000 shares of common stock that had been issued in the prior year for services to be performed. Those services were never rendered, resulting in the shares being returned to the company and cancelled. The value of the shares was previously recorded as an $80,000 operating expense. As a result of the canceled shares, the Company recorded an $80,000 reduction in operating expenses.

 

In February 2013, the Company repurchased 4,900,000 shares of common stock from a former director of the Company which had been issued for services rendered for total consideration of $125,000, which represented a 50% discount to market on the date of purchase. The shares were returned to treasury and subsequently cancelled.

 

In May and June of 2013, the Company issued a total of 525,460 shares of restricted common stock in exchange for proceeds of $140,500.

 

In February of 2013, the Company’s Board of Directors authorized the issuance of 4,360,000 shares of restricted common stock to officers and directors of the Company. As of the date of this report, the shares are yet to be issued and have been recorded as a stock subscription payable. The shares were for professional services provided to the Company and completed prior to June 30, 2013. The Company has recorded an expense of $261,600 which was calculated using the fair market price of the stock on the date of the board resolution authorizing the issuance of shares.

 

NOTE 12 – NON-CONTROLLING INTEREST

 

Plandaí owns 82% of Dunn Roman Holdings—Africa, which in turn owns 74% each of Breakwood Trading 22 (Pty, Ltd. and Green Gold Biotechnologies (Pty), Ltd., in order to be compliant with the Black Economic Empowerment rules imposed by the South African Land Bank. While the Company, under the Equity Method of Accounting, is required to consolidate 100% of the operations of its majority-owned subsidiaries, that portion of subsidiary net equity attributable to the non-controlling ownership, together with an allocated portion of net income or net loss incurred by the subsidiaries, must be reflected on the consolidated financial statements. On the balance sheet, non-controlling interest has been shown in the Equity Section, separated from the equity of Plandaí, while on the income statement, the non-controlling shareholder allocation of net loss has been shown in the Consolidated Statement of Operations.

 

 

 

 

 

 

 

F-13
 

NOTE 13 – FUTURE OBLIGATIONS

 

Leases

 

In February 2012, the Company entered into a long-term (49 year) lease of tea, avocado, macadamia and timber plantation estates totaling roughly 8 thousand acres in South Africa. Under the terms of the lease, the Company is required to pay annual rent of R250,000 ($30,000) plus an annual dividend of 26% of net income generated from the use of the property with a R500,000 ($60,000) annual minimum dividend. The first payment of R20,883 ($2,610) was due April 2012, but by mutual agreement this payment has been extended until funding is received under the loan from the Land Bank of South Africa.

 

On March 1, 2012, the Company entered into a 10 year lease for office space for its subsidiary Dunn Roman Holdings. Under the terms of the lease, payments will be $2,500 a month. The leaser is a related party to the Company. See note 14 for more information.

 

The table below summarized the future lease obligations for the fiscal years ended.

 

   Tea Estate  Office Space
June 30, 2014  $360,000   $30,000 
June 30, 2015   360,000    30,000 
June 30, 2016   360,000    30,000 
June 30, 2017   360,000    30,000 
June 30, 2018   360,000    30,000 
Total five year lease obligation  $1,800,000   $150,000 

 

Both of these leases either have escalating terms or included several months of “free” rent, including the 49-year notarial lease for the Senteeko Tea Estate. In accordance with US Generally Accepted Accounting Principles, the Company has calculated a straight-line monthly cost on the leases and recorded the corresponding difference between the amount actually paid and the amount calculated as a Capitalized Lease Obligation. As of June 30, 2013, the amount of this deferred liability was $988,381.

 

Employment Agreements

 

The company executed three employment agreements in March of 2013 with two officers and one management level employee. Each contract is for a five year term. Once the Company successfully raises $5,000,000 in raised capital equity, the employment agreements call for annual salaries of $420,000 for the three employment agreements combined. As of right now, the Company has not raised the $5,000,000 in capital equity so it cannot sustain such payments and therefore pays only $180,000 annually for the three employment agreements combined. Pursuant to the three employment agreements in aggregate, the Company is also obligated to issue 4,000,000 common shares at the end of each completed year for services rendered to the Company. The Company valued the 4,000,000 shares at the closing stock price on the date of the executed agreement which was $0.06/share. At June 30, 2013, with regards to the future issuance of 4,000,000 shares, the Company accrued compensation expense for services completed in the amount of $80,000.

 

NOTE 14 – RELATED PARTY TRANSACTION

 

In addition to the loans payable as discussed above (see Note 4), the Company had the following related party transactions during the years ended June 30, 2013 and 2012.

 

Deposits on Equipment

 

In June 2012, the Company’s subsidiary, Green Gold Biotechnology (Pty), Ltd., ordered machinery and equipment from CRS Technology, Inc., a company controlled by a trust of which Roger Duffield and Daron Baylis Duffield are the beneficiaries. The total purchase price of the assets acquired of approximately $5,779,200 (R47,793,992) was paid for from proceeds from the Land and Agriculture Bank of South Africa.

 

Accounts Payable to Related Parties

 

As of June 30, 2013 and 2012, the Company has accounts payable to related parties balances totaling $145,822 and $7,940 which consists primary of amounts owed to a company controlled by an officer and director of the company which paid certain operating expenses on behalf of the company.

 

 

 

F-14
 

Shareholder Loans

 

As of June 30, 2013 and 2012, the Company has outstanding loans from the Company’s Chief Executive Officer in the amount of $501,518 and $402,903. These loans were provided for short-term working capital purposes and bear interest at a rate of 4%. The loans cannot be called until the Company’s obligations under the Land & Agriculture Bank of South Africa have been met.

 

Office Lease

 

The Company leases its South African Office space from a trust of which one of the beneficiaries serves on the Board of Directors of Dunn Roman Holding—Africa, Ltd., a subsidiary of the Company. The lease agreement calls for monthly payments of $2,500. During the years ended June 30, 2013 and 2012, a total of $32,154 and $0 has been paid in rent expense.

 

Compensation to Officers and Management

 

Pursuant to three employment agreements executed on March 1, 2013 by the Company with two of its officers and one manager, the Company is also obligated to issue 4,000,000 common shares at the end of each completed year for services rendered to the Company. The Company valued the 4,000,000 shares at the closing stock price on the date of the executed agreement which was $0.06/share. At June 30, 2013, with regards to the future issuance of 4,000,000 shares, the Company accrued compensation expense for services completed in the amount of $80,000.

 

NOTE 15 - GOING CONCERN

 

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statement, the Company has an accumulated deficit of $10,903,811 as of June 30, 2013. The ability of the Company to continue as a going concern is in doubt and dependent upon achieving a profitable level of operations or on the ability of the Company to obtain necessary financing to fund ongoing operations. Management believes that its current and future plans enable it to continue as a going concern for the next twelve months.

 

To meet these objectives, the Company continues to raise additional working capital through the private placement of our common stock in order to support existing operations and expand the range and scope of its business. However, there are no assurances that we will be successful through the private placement of our securities on acceptable terms and timely manner, if at all.  The failure to obtain the necessary working capital would have a material adverse effect on the business prospects and, depending upon the shortfall, the Company may have to curtail or cease its operations.

 

The accompanying consolidated financial statements do not include any adjustment to the recorded assets or liabilities that might be necessary should the Company have to curtail operations or be unable to continue in existence.

 

NOTE 16 – SUBSEQUENT EVENTS

 

Management was evaluated subsequent events pursuant to the requirements of ASC Topic 855 and has determined that besides listed below, no material subsequent events exist through the date of this filing.

 

  1. On August 20, 2013, the Company executed two convertible promissory notes totaling $550,000. The notes bear interest at the rate of 8% per annum and become due and payable in six months from the date of issuance. During the first 90 days from issuance, the notes are repayable without incurring any interest charges. As of August 26, 2013, the company had been advanced $125,000 against the two notes. When the notes become payable, the holder has the option of converting the unpaid balance of any advances into common stock of the company at a discount of 40% off the then current price per share. Management has made arrangements for these notes to be repaid prior to conversion.

 

  1. In July of 2013, the Company issued 16,700 common shares for $5,000 cash.

 

F-15
 

SIGNATURES

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  PLANDAI BIOTECHNOLOGY, INC.
(Registrant)
   
 April 29, 2014

 

 

 

By: /s/ Roger Duffield

Roger Duffield, President
(On behalf of the Registrant and as Principal Executive Officer) and
Chairman of the Board of Directors

 

 

 

In accordance with the Exchange Act, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

Date:   April 29, 2014    

/s/ Daron Baylis Duffield

Daron Baylis Duffield, Director

   
Date:   April 29, 2014    

/s/ Brian Johnson

Brian Johnson, Director

   
Date:  April 29, 2014    

/s/ Roger Duffield

Roger Duffield, Director

 

 

 

 


                                       

 

26
 

 

 


 

EX-31 2 ex311.htm EXHIBIT 31.1

EXHIBIT 31.1

 

Plandaí Biotechnology, Inc.

a Nevada Corporation

SECTION 302

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

 

I, Roger Duffield, Chief Executive Officer certify that:

 

(1)   I have reviewed this annual report on Form 10-K/A of Plandaí Biotechnology, Inc.;

 

(2)  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

(3)  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

(4)  The registrant's other certifying officer(s) and I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

     (a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its unconsolidated investments, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

     (b)  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

     (c)  Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

     (d)  Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

(5)  The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

   (a)  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

   

  (b)  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Date: April 29, 2014

 

/s/ Roger Duffield            

Roger Duffield
Chief Executive Officer 

(Principal Executive Officer)

 

 
 

 

EX-31 3 ex312.htm EXHIBIT 31.2

EXHIBIT 31.2

 

Plandaí Biotechnology, Inc.

a Nevada Corporation

SECTION 302

CERTIFICATION OF CHIEF FINANCIAL OFFICER

 

I, Roger Duffield, certify that:

 

(1)   I have reviewed this annual report on Form 10-K/A of Plandaí Biotechnology, Inc.;

 

(2)  Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

(3)  Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

(4)  The registrant's other certifying officer(s) and I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

     (a)  Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its unconsolidated investments, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

     (b)  Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

     (c)  Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

     (d)  Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

(5)  The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

     (a)  All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

     (b)  Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

Date: April 29, 2014

 

/s/ Roger Duffield

Roger Duffield

Chief Financial Officer
(Principal Financial Officer and Principal Accounting Officer)

 

 

 
 

 

EX-32 4 ex321.htm EXHIBIT 32.1

Exhibit 32.1

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

 

Pursuant to Section 906 of the Corporate Fraud Accountability Act of 2002 (18 U.S.C. Section 1350, as adopted), Roger Duffield, Chief Executive Officer of Plandaí Biotechnology, Inc. (the "Company"), hereby certifies that, to the best of his knowledge:

 

1. the Annual Report on Form 10-K/A of the Company for the fiscal year ended June 30, 2013 (the Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

 

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

   
Dated: April 29, 2014

/s/ Roger Duffield

Roger Duffield

Chief Executive Officer (Principal Executive Officer)

   

 

 
 

 

EX-32 5 ex322.htm EXHIBIT 32.2

Exhibit 32.2

 

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

Pursuant to Section 906 of the Corporate Fraud Accountability Act of 2002 (18 U.S.C. Section 1350, as adopted), Roger Duffield, Chief Financial Officer of Plandaí Biotechnology, Inc. (the "Company"), hereby certifies that, to the best of his knowledge:

 

1. the Annual Report on Form 10-K/A of the Company for the fiscal year ended June 30, 2013 (the Report) fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and

 

2. the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

 

   

Dated: April 29, 2014

 

 

/s/ Roger Duffield

Roger Duffield
Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer)

 

 

 
 

 

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Is Entity a Voluntary Filer? Is Entity's Reporting Status Current? Entity Filer Category Entity Public Float Entity Common Stock, Shares Outstanding Document Fiscal Period Focus Document Fiscal Year Focus Amendment Description Statement of Financial Position [Abstract] ASSETS Current Assets: Cash Inventory Accounts Receivable Total Current Assets Deposits Other Assets Fixed Assets – Net Total Assets LIABILITIES & STOCKHOLDERS' DEFICIT Current Liabilities: Accounts Payable and Accrued Expenses Accrued Interest Convertible Note Payable Derivative Liability Related Party Payables Total Current Liabilities Loans from Related Parties Capitalized Lease Obligation Credit Line Long Term Debt, Net of Discount Total Liabilities STOCKHOLDERS' DEFICIT Common Stock, $0.0001 par value; authorized 500,000,000 shares; 106,270,760 and 110,895,300 issued and outstanding at June 30, 2013 and June 30, 2012, respectively Stock Subscritption Payable Additional Paid-In Capital Accumulated Deficit Cumulative Foreign Currency Translation Adjustment Total Stockholders' Deficit Non-controlling Interest Stockholder's Deficit Allocated to Plandai Biotechnology Total Liabilities and Stockholders' Deficit Common Stock, Par Value Common Stock, Shares Authorized Common Stock, Shares Issued Common Stock, Shares Outstanding Income Statement [Abstract] Revenues Cost of Goods Gross Profit Expenses: Salaries & Wages Rent Utilities Insurance Professional Services Depreciation General and Administrative Total Expenses Operating Loss Other Expense Interest Expense Derivative Interest Total Other Expense Net Loss Loss Allocated to Non-controlling Interest Net Loss, Adjusted Other Comprehensive Income Foreign Currency Translation Adjustment Comprehensive Loss Basic & diluted loss per share Weighted Avgerage Shares Outstanding Statement of Cash Flows [Abstract] CASH FLOWS FROM OPERATING ACTIVITIES: Net Loss Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation Loss Allocated to Non-Controlling Owners Stock Issued for Services Common Stock Issuable Foreign Currency Translation Adjustment Forgiveness of Interest Derivative Liability Capitalized Lease Obligation Prepaid Expenses Accounts Receivable Inventory Other Assets Accounts Payable and Accrued Expenses Related Party Payables Accrued Interest Net Cash Used in Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES: Deposits on Equipment Loans from Related Parties Purchase of Fixed Assets Net Cash Used in Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds From Long-term Debt, Net of Discount Borrowings under Convertible Note Net Borrowings Under Credit Line Proceeds from the Sale of Common Stock Net Cash Provided by Financing Activities Net (Decrease) Increase in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of Year Cash and Cash Equivalents at End of Year Statement [Table] Statement [Line Items] Balance Shares Balance Value Deemed capital contribution from forgiveness of related party debt Stock Issued On Share Exchange, 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Total Fixed Assets Less: Accumulated Depreciation Fixed Assets, net Schedule of Operating Leased Assets [Table] Operating Leased Assets [Line Items] June 30, 2014 June 30, 2015 June 30, 2016 June 30, 2017 June 30, 2018 Total Five Years Lease Obligations Net loss Name of acquired entity Percentage of ownership acquired Excess of liabilities over assets taken over Shares issued to GES Noncontrolling Interest [Table] Noncontrolling Interest [Line Items] Holding by parent company Minority holding percentage Schedule of Long-term Debt Instruments [Table] Debt Instrument [Line Items] Debt instrument interest rate, minimum Debt instrument interest rate, maximum Debt instrument maturity date Line of Credit Facility [Table] Line of Credit Facility [Line Items] Line of credit available at the time of entering into agreement Line of credit increase during the period Line of credit maturity date Interest rate on line of credit Accrued interest Line of credit Debt instrument face amount Debt 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Policy disclosure for off balance sheet arrangements Policy disclosure for emerging growth company Diamond Ranch Ltd and Executive Seafood Inc Global Energy Solutions Inc Subsidiary of the company Subsidiary of the company Subsidiary of the company Various third parties Three individuals Director one Employment agreement Officer and Manager CRS Technology Inc Officer and director Assets, Current Liabilities, Current Additional Paid in Capital Retained Earnings (Accumulated Deficit) Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest Stockholders' Equity Attributable to Parent Liabilities and Equity Gross Profit Operating Expenses Operating Income (Loss) Interest Expense Other Nonoperating Income (Expense) Comprehensive Income (Loss), Net of Tax, Attributable to Parent Depreciation, Depletion and Amortization Foreign Currency Transaction Gain (Loss), Unrealized Increase (Decrease) in Derivative Liabilities Capital Lease Obligations Incurred Increase 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Future Obligations (Narrative) (Details)
12 Months Ended 0 Months Ended 1 Months Ended 0 Months Ended 12 Months Ended
Jun. 30, 2013
USD ($)
Jun. 30, 2012
USD ($)
Mar. 01, 2013
Two Officers And Manager
Three Employment Agreements
Jun. 30, 2013
Two Officers And Manager
Three Employment Agreements
USD ($)
Apr. 30, 2012
Tea Estate
USD ($)
Feb. 29, 2012
Tea Estate
USD ($)
acre
Apr. 30, 2012
Tea Estate
South Africa, Rand
ZAR
Feb. 29, 2012
Tea Estate
South Africa, Rand
ZAR
Mar. 01, 2012
Office Space
Director - Dunn Roman Holding, Ltd
USD ($)
Jun. 30, 2013
Office Space
Director - Dunn Roman Holding, Ltd
USD ($)
Jun. 30, 2012
Office Space
Director - Dunn Roman Holding, Ltd
USD ($)
Lease period           49 years     10 years    
Land area           8,000          
Annual rent $ 477,766 $ 64,053       $ 30,000   250,000   $ 32,154 $ 0
Lease terms          

Under the terms of the lease, the Company is required to pay annual rent of R250,000 ($30,000) plus an annual dividend of 26% of net income generated from the use of the property with a R500,000 ($60,000) annual minimum dividend.

         
Lease rent due in April 2012         2,610   20,883        
Monthly rent                 2,500    
Employment agreements description    

The company executed three employment agreements in March of 2013 with two officers and one management level employee. Each contract is for a five year term. Once the Company successfully raises $5,000,000 in raised capital equity, the employment agreements call for annual salaries of $420,000 for the three employment agreements combined. Pursuant to the three employment agreements in aggregate, the Company is also obligated to issue 4,000,000 common shares at the end of each completed year for services rendered to the Company. The Company valued the 4,000,000 shares at the closing stock price on the date of the executed agreement which was $0.06/share.

               
Annual payment for three employment agreements       180,000              
Accrued compensation expenses $ 516,006 $ 64,322   $ 80,000              
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Summary Of Accounting Policies (Narrative) (Details)
Jun. 30, 2013
Global Energy Solutions Ltd
 
Noncontrolling Interest [Line Items]  
Holding by parent company 100.00%
Dunn Roman Holdings-Africa, Ltd
 
Noncontrolling Interest [Line Items]  
Holding by parent company 82.00%
Breakwood Trading 22 (Pty) Ltd
 
Noncontrolling Interest [Line Items]  
Minority holding percentage 74.00%
Green Gold Biotechnologies (Pty) Ltd
 
Noncontrolling Interest [Line Items]  
Minority holding percentage 74.00%
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Long Term Debt (Tables)
12 Months Ended
Jun. 30, 2013
Long Term Debt Tables  
Schedule Of Long Term Debt

As of June 30, 2013, the loan balance was:

  

Loan Principle   $ 9,758,702  
Less: Discount     585,000  
Net Loan per Books   $ 9,173,702  

 

XML 17 R37.htm IDEA: XBRL DOCUMENT v2.4.0.8
Long Term Debt (Narrative) (Details)
1 Months Ended
Jun. 30, 2013
USD ($)
Jun. 30, 2012
Loan - Land And Agriculture Bank Of South Africa
USD ($)
Jun. 30, 2013
Loan - Land And Agriculture Bank Of South Africa
Green Gold Biotechnologies (Pty) Ltd
USD ($)
Jun. 30, 2013
Loan - Land And Agriculture Bank Of South Africa
Breakwood Trading 22 (Pty) Ltd
USD ($)
Jun. 30, 2012
Loan - Land And Agriculture Bank Of South Africa
South Africa, Rand
ZAR
Debt instrument face amount   $ 13,000,000     100,000,000
Interest rate on loan   Prime plus 0.50 % per annum      
Loan duration   7 years      
Loans executed through   Green Gold Biotechnologies (Pty) Ltd and Breakwood Trading 22(Pty) Ltd      
Loan description  

In addition, the loans have a 25-month “holiday” in which no payments or interest are due until 25 months after the first drawn down of funds. The loans are collateralized by the assets and operations, including the Senteeko lease, agriculture production and receivables of Dunn Roman Holdings, which is the African operating arm of Plandaí. In addition, Dunn Roman Holdings was required to grant a 15% profit share agreement to the Land Bank which extends through the duration of the loan agreements (7 years unless pre-paid). The profit share agreement extends only to profits generated by Dunn Roman Holdings exclusive of operations of Plandaí and outside of South Africa.

     
Amount drawn against loan $ 9,758,702   $ 7,740,800 $ 2,017,903  
XML 18 R9.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Information
12 Months Ended
Jun. 30, 2013
Segment Reporting [Abstract]  
Segment Information

NOTE 3 – SEGMENT INFORMAION

 

Geographical Locations

 

The following information summarizes the financial information regarding Plandaí Biotechnology Inc. and its three South African subsidiaries at June 30, 2013:

 

  South Africa   United States
Assets $ 8,829,559     $ 5,923  
Liabilities   11,678,121       561,723  
Revenues   359,143       —    
Expenses   1,387,660       312,438  

 

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Long Term Debt (Details) (USD $)
Jun. 30, 2013
Jun. 30, 2012
Long Term Debt Details    
Loan Principle $ 9,758,702  
Less: Discount 585,000  
Net Loan Per books $ 9,173,702 $ 5,228,990
XML 21 R28.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segment Information (Details) (USD $)
12 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Assets $ 8,835,482 $ 6,057,007
Liabilities 12,319,844 6,939,181
Revenues 359,143 74,452
South Africa
   
Assets 8,829,559  
Liabilities 11,678,121  
Revenues 359,143  
Expenses 1,387,660  
United States
   
Assets 5,923  
Liabilities 561,723  
Revenues     
Expenses $ 312,438  
XML 22 R30.htm IDEA: XBRL DOCUMENT v2.4.0.8
Fixed Assets (Details) (USD $)
Jun. 30, 2013
Jun. 30, 2012
Fixed Assets Details    
Total Fixed Assets $ 8,043,692 $ 215,837
Less: Accumulated Depreciation 118,782   
Fixed Assets, net $ 7,924,910 $ 215,837
XML 23 R31.htm IDEA: XBRL DOCUMENT v2.4.0.8
Future Obligations (Details) (USD $)
Jun. 30, 2013
Tea Estate
 
Operating Leased Assets [Line Items]  
June 30, 2014 $ 360,000
June 30, 2015 360,000
June 30, 2016 360,000
June 30, 2017 360,000
June 30, 2018 360,000
Total Five Years Lease Obligations 1,800,000
Office Space
 
Operating Leased Assets [Line Items]  
June 30, 2014 30,000
June 30, 2015 30,000
June 30, 2016 30,000
June 30, 2017 30,000
June 30, 2018 30,000
Total Five Years Lease Obligations $ 150,000
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Summary Of Accounting Policies
12 Months Ended
Jun. 30, 2013
Summary Of Accounting Policies  
Summary Of Accounting Policies

NOTE 2 – SUMMARY OF ACCOUNTING POLICIES

 

This summary of accounting policies for Plandaí Biotechnology, Inc. and its wholly-owned subsidiaries, is presented to assist in understanding the Company's financial statements. The accounting policies conform to generally accepted accounting principles and have been consistently applied in the preparation of the financial statements.

 

Use of Estimates

 

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the financial statements, management is required to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the balance sheet and statement of operations for the year then ended. Actual results may differ from these estimates. Estimates are used when accounting for allowance for bad debts, collect ability of accounts receivable, amounts due to service providers, depreciation and litigation contingencies, among others.

 

Cash and Cash Equivalents

 

For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.

 

Revenue recognition

 

The Company presently derives its revenue from the sale of timber and agricultural products produced on its farm and tea estate holdings in South Africa. Revenue is recognized when the product is delivered to the customer. Once production of the Company’s Phytofare™ botanical extracts commence in 2014, revenues will be recognized when product is shipped.

 

Concentration of Credit Risk

 

The Company has no significant off-balance sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.

 

Property and equipment

 

Property and equipment are stated at cost less accumulated depreciation and amortization.  The Company provides for depreciation and amortization using the straight-line method over the estimated useful lives of the related assets, which range from three to five years. Maintenance and repair costs are expensed as they are incurred while renewals and improvements which extend the useful life of an asset are capitalized.  At the time of retirement or disposal of property and equipment, the cost and related accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is reflected in the results of operations.

 

Impairment of Long-Lived Assets

 

In accordance with ASC Topic 360, formerly SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, the Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable. The assessment of possible impairment is based on the Company’s ability to recover the carrying value of its asset based on estimates of its undiscounted future cash flows. If these estimated future cash flows are less than the carrying value of the asset, an impairment charge is recognized for the difference between the asset's estimated fair value and its carrying value. As of the date of these financial statements, the Company is not aware of any items or events that would cause it to adjust the recorded value of its long-lived assets for impairment.


Earnings per Share

 

Basic gain or loss per share has been computed by dividing the loss for the period applicable to the common stockholders by the weighted average number of common shares outstanding during the years. There are no dilutive outstanding common stock equivalents as of June 30, 2013 and 2012.

 

Income Taxes

 

The Company accounts for income taxes under ASC Topic 740, formerly SFAS No. 109, Accounting for Income Taxes, as clarified by ASC Topic 740, formerly FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, (“FIN No. 48”). Deferred tax assets and liabilities are determined based upon differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized.

 

The Company adopted the provisions of ASC Topic 740, formerly FIN No. 48 on January 1, 2007. Previously, the Company had accounted for tax contingencies in accordance with Statement of Financial Accounting Standards No. 5, Accounting for Contingencies. As required by ASC Topic 450, formerly FIN No. 48, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. At the adoption date, the Company applied ASC Topic 740, formerly FIN No. 48 to all tax positions for which the statute of limitations remained open. As a result of the implementation of ASC Topic 740, formerly FIN No. 48, the Company did not recognize any change in the liability for unrecognized tax benefits.

 

The Company is subject to income taxes in the U.S. federal jurisdiction and that of South Africa. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before April 1, 2007.

 

The Company is not currently under examination by any federal or state jurisdiction.

 

The Company’s policy is to record tax-related interest and penalties as a component of operating expenses.

 

Off-Balance Sheet Arrangements

 

We have no off-balance sheet arrangements.

 

Emerging Growth Company

 

We qualify as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, we can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period.

 

Fair Value of Financial Instruments

 

Fair value of certain of the Company’s financial instruments including cash and cash equivalents, accounts receivable, account payable, accrued expenses, notes payables, and other accrued liabilities approximate cost because of their short maturities. The Company measures and reports fair value in accordance with ASC 820, “Fair Value Measurements and Disclosure” defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments.

 

Fair value, as defined in ASC 820, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset should reflect its highest and best use by market participants, principal (or most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the risk of nonperformance, which includes, among other things, the Company’s credit risk.

 

Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability, and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting measurement as follows:

 

Level 1 – Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities the Company has the ability to access.

 

Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

 

Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

 

Fair value measurements are required to be disclosed by the Level within the fair value hierarchy in which the fair value measurements in their entirety fall. Fair value measurements using significant unobservable inputs (in Level 3 measurements) are subject to expanded disclosure requirements including a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earning are reported in the statement of income.

 

Advertising

 

Advertising costs are expensed as incurred.

 

Principles of Consolidation

 

Plandaí Biotechnology, Inc. and its subsidiaries, are encompassed in the following entities, which have been consolidated in the accompanying financial statements:

 

Global Energy Solutions, Ltd. 100% owned by Plandaí Biotechnology, Inc.
Dunn Roman Holdings—Africa, Ltd 82% owned by Plandaí Biotechnology, Inc.
Breakwood Trading 22 (Pty) Ltd. 74% owned by Dunn Roman Holdings-Africa
Green Gold Biotechnologies (Pty) Ltd. 74% owned by Dunn Roman Holdings-Africa

 

During the year ended June 30, 2013, the Company determined that the entity, Global Energy Solutions, was unnecessary to operations and decided to dissolve that corporation, resulting in the stock of Dunn Roman Holdings-Africa being held directly by Plandaí. All liabilities were either satisfied or forgiven and all bank accounts closed. There were no operations in Global Energy Solutions during the periods presented. Global Energy Solutions was officially dissolved during the year ended June 30, 2013.

 

All intercompany balances have been eliminated in consolidation.

 

Straight-lining of Lease Obligation

 

Plandaí’s subsidiaries have two long-term, material leases which either have escalating terms or included several months of “free” rent, including the 49-year notarial lease for the Senteeko Tea Estate. In accordance with US Generally Accepted Accounting Principles, the Company has calculated a straight-line monthly cost on the leases and recorded the corresponding difference between the amount actually paid and the amount calculated as a Capitalized Lease Obligation. As of June 30, 2013, the amount of this deferred liability was $988,381.


Recent Accounting Pronouncements

 

The Company has adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 105-10, Generally Accepted Accounting Principles – Overall (“ASC 105-10”), which was formerly known as SFAS 168. ASC 105-10 establishes the FASB Accounting Standards Codification (the “Codification”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with U.S. GAAP. Rules and interpretive releases of the Securities and Exchange Commission (the "SEC") under authority of federal securities laws are also sources of authoritative U.S. GAAP for SEC registrants.  All guidance contained in the Codification carries an equal level of authority.  The Codification superseded all existing non-SEC accounting and reporting standards and all other non-grandfathered, non-SEC accounting literature not included in the Positions or Emerging Issues Task Force Abstracts.  Instead, it will issue Accounting Standards Updates (“ASUs”). The FASB will not consider ASUs as authoritative in their own right.  ASUs will serve only to update the Codification, provide background information about the guidance and provide the basis of conclusions on the change(s) in the Codification. References made to FASB guidance throughout this document have been updated for the Codification.

 

In May 2011, the Financial Accounting Standards Board (FASB) issued authoritative guidance regarding Fair Value Measurement: Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, which resulted in common requirements for measuring fair value and for disclosing information about fair value measurement under both U.S. GAAP and International Financial Reporting Standards (IFRS), including a consistent definition of the term "fair value." The amendments were effective beginning in the first quarter of 2012, and did not have a material effect on our consolidated financial statements.

 

In June 2011, the FASB issued Accounting Standards Update 2011-05, Presentation of Comprehensive Income. This update amended the provisions of FASB ASC 220-10 by eliminating the option of reporting other comprehensive income in the statement of changes in stockholders’ equity. Companies will have the option of presenting net income and other comprehensive income in a single, continuous statement of comprehensive income or presenting two separate but consecutive statements of net income and comprehensive income. The new presentation requirements are effective for interim and annual periods beginning after December 15, 2011. The adoption of this standard is not anticipated to have a material impact on our financial statements.

 

In September 2011, the FASB issued Accounting Standards Update 2011-08, Testing Goodwill for Impairment. This update amended the provisions of FASB ASC 350-20-35 by allowing an entity the option to make a qualitative evaluation about the likelihood of goodwill impairment to determine whether it should calculate the fair value of a reporting unit. The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted, including for annual and interim goodwill impairment tests performed as of a date before September 15, 2011, if an entity’s financial statements for the most recent annual or interim period have not yet been issued. The adoption of this standard is not anticipated to have a material impact on our financial statements.

 

The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its results of operation, financial position or cash flows.  Based on that review, the Company believes that none of these pronouncements will have a significant effect on its consolidated financial statements.

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Nature Of Operations And Going Concern (Narrative) (Details) (USD $)
0 Months Ended 12 Months Ended 3 Months Ended
Nov. 17, 2011
Global Energy Solutions, Inc (GES)
Jun. 30, 2012
Global Energy Solutions, Inc (GES)
Sep. 30, 2011
Diamond Ranch Ltd And Executive Seafood Inc
Net loss     $ 126,000
Name of acquired entity Global Energy Solutions, Inc. ("GES"), an Irish corporation    
Percentage of ownership acquired 100.00%    
Excess of liabilities over assets taken over     $ 5,000,000
Shares issued to GES 76,000,000 25,415,300  

XML 27 R40.htm IDEA: XBRL DOCUMENT v2.4.0.8
Related Party Transaction (Narrative) (Details)
1 Months Ended
Jun. 30, 2013
USD ($)
Jun. 30, 2012
USD ($)
Jun. 30, 2012
CRS Technology Inc
USD ($)
Jun. 30, 2012
CRS Technology Inc
South Africa, Rand
ZAR
Jun. 30, 2013
Officer And Director
USD ($)
Jun. 30, 2012
Officer And Director
USD ($)
Jun. 30, 2013
Chief Executive Officer
Loans From Related Parties
USD ($)
Jun. 30, 2012
Chief Executive Officer
Loans From Related Parties
USD ($)
Total Asset Purchase     $ 5,779,200 47,793,992        
Related Party Payables 145,822 7,940     145,822 7,940    
Loans from Related Parties $ 501,518 $ 402,903         $ 501,518 $ 402,903
XML 28 R2.htm IDEA: XBRL DOCUMENT v2.4.0.8
Consolidated Balance Sheets (USD $)
Jun. 30, 2013
Jun. 30, 2012
Current Assets:    
Cash $ 498,917 $ 5,112
Inventory 6,439   
Accounts Receivable 13,638   
Total Current Assets 518,994 5,112
Deposits 10,648 5,813,990
Other Assets 380,929 22,068
Fixed Assets – Net 7,924,910 215,837
Total Assets 8,835,482 6,057,007
Current Liabilities:    
Accounts Payable and Accrued Expenses 516,006 64,322
Accrued Interest 93,184 28,219
Convertible Note Payable 103,500   
Derivative Liability 45,227   
Related Party Payables 145,822 7,940
Total Current Liabilities 903,739 100,481
Loans from Related Parties 501,518 402,903
Capitalized Lease Obligation 988,381 592,639
Credit Line 752,503 614,168
Long Term Debt, Net of Discount 9,173,702 5,228,990
Total Liabilities 12,319,844 6,939,181
STOCKHOLDERS' DEFICIT    
Common Stock, $0.0001 par value; authorized 500,000,000 shares; 106,270,760 and 110,895,300 issued and outstanding at June 30, 2013 and June 30, 2012, respectively 10,628 11,090
Stock Subscritption Payable 261,600   
Additional Paid-In Capital 7,833,976 7,894,278
Accumulated Deficit (10,903,811) (8,715,808)
Cumulative Foreign Currency Translation Adjustment 169,437 4,225
Total Stockholders' Deficit (2,628,171) (806,215)
Non-controlling Interest (856,191) (75,959)
Stockholder's Deficit Allocated to Plandai Biotechnology (3,484,362) (882,174)
Total Liabilities and Stockholders' Deficit $ 8,835,482 $ 6,057,007
XML 29 R6.htm IDEA: XBRL DOCUMENT v2.4.0.8
Consolidated Statements Of Equity (USD $)
Common Stock
Additional Paid-In Capital
Stock Subscription Payable
Accumulated Deficit
Non-Controlling Interest
Cummulative Currency Translation Adjustment
Total
Balance Value at Jun. 30, 2011 $ 7,600 $ 4,195,610    $ (4,938,636) $ (14,771)    $ (750,197)
Balance Shares at Jun. 30, 2011 76,000,000            
Deemed capital contribution from forgiveness of related party debt   139,458         139,458
Stock Issued On Share Exchange, Shares 25,415,300            
Stock Issued On Share Exchange, Value 2,542 (2,542)               
Foreign Currency Translation Adjustment           4,225 4,225
Shares Issued As Loan Origination Fee, Shares 1,500,000            
Shares Issued as Loan Origination Fee, Value 150 584,850             585,000
Shares Issued For Services, Shares 7,980,000            
Shares Issued For Services, Value 798 2,976,902             2,977,700
Forgiveness Of Shareholder Loan Interest               
Net Loss For The Period       (3,777,172) (61,188)    (3,838,360)
Balance Value at Jun. 30, 2012 11,090 7,894,278    (8,715,808) (75,959) 4,225 (882,174)
Stock issuable to officers and directors for services at Jun. 30, 2012               
Balance Shares at Jun. 30, 2012 110,895,300           110,895,300
Foreign Currency Translation Adjustment           165,212 165,212
Forgiveness Of Shareholder Loan Interest   3,736             3,736
Stock Issued For Cash, Shares 525,460            
Stock Issued For Cash, Value 53 140,447             140,500
Cancelled Shares, Shares (5,150,000)            
Cancelled Shares, Value (515) (204,485)             (205,000)
Net Loss For The Period       (2,188,005) (780,231)    (2,968,236)
Balance Value at Jun. 30, 2013 10,628 7,833,976 261,600 (10,903,813) (856,191) 169,437 (3,484,362)
Stock issuable to officers and directors for services at Jun. 30, 2013      $ 261,600          $ 261,600
Balance Shares at Jun. 30, 2013 106,270,760           106,270,760
XML 30 R35.htm IDEA: XBRL DOCUMENT v2.4.0.8
Line Of Credit (Narrative) (Details) (USD $)
12 Months Ended
Jun. 30, 2012
Jun. 30, 2013
Line of Credit Facility [Line Items]    
Accrued interest $ 28,219 $ 93,184
Line of credit 614,168 752,503
Line Of Credit
   
Line of Credit Facility [Line Items]    
Line of credit available at the time of entering into agreement 500,000  
Line of credit increase during the period 1,000,000  
Line of credit maturity date Jan. 05, 2014  
Interest rate on line of credit 10.00%  
Accrued interest   93,184
Line of credit   $ 752,503
XML 31 R22.htm IDEA: XBRL DOCUMENT v2.4.0.8
Subsequent Events
12 Months Ended
Jun. 30, 2013
Subsequent Events  
Subsequent Events

NOTE 16 – SUBSEQUENT EVENTS

 

Management was evaluated subsequent events pursuant to the requirements of ASC Topic 855 and has determined that besides listed below, no material subsequent events exist through the date of this filing.

 

  1. On August 20, 2013, the Company executed two convertible promissory notes totaling $550,000. The notes bear interest at the rate of 8% per annum and become due and payable in six months from the date of issuance. During the first 90 days from issuance, the notes are repayable without incurring any interest charges. As of August 26, 2013, the company had been advanced $125,000 against the two notes. When the notes become payable, the holder has the option of converting the unpaid balance of any advances into common stock of the company at a discount of 40% off the then current price per share. Management has made arrangements for these notes to be repaid prior to conversion.

 

  2. In July of 2013, the Company issued 16,700 common shares for $5,000 cash.
XML 32 R36.htm IDEA: XBRL DOCUMENT v2.4.0.8
Debenture Payable (Narrative) (Details) (USD $)
1 Months Ended
Jun. 30, 2013
Jun. 30, 2012
May 31, 2013
Convertible Notes Payable
Jun. 30, 2013
Convertible Notes Payable
Debt Instrument [Line Items]        
Debt instrument face amount     $ 103,500  
Debt instrument interest rate     8.00%  
Debt instrument conversion terms    

The debenture is convertible into common stock of the company at a discount of 42% off the market price of the company’s common stock six months after issuance (November 2013).

 
Debt instrument maturity description     February 2014  
Convertible note payable 103,500      103,500
Derivative liability $ 45,227      $ 45,227
XML 33 R24.htm IDEA: XBRL DOCUMENT v2.4.0.8
Segement Information (Tables)
12 Months Ended
Jun. 30, 2013
Segement Information Tables  
Schedule Of Segment Information

The following information summarizes the financial information regarding Plandaí Biotechnology Inc. and its three South African subsidiaries at June 30, 2013:

 

  South Africa   United States
Assets $ 8,829,559     $ 5,923  
Liabilities   11,678,121       561,723  
Revenues   359,143       —    
Expenses   1,387,660       312,438  

 

XML 34 Show.js IDEA: XBRL DOCUMENT /** * Rivet Software Inc. * * @copyright Copyright (c) 2006-2011 Rivet Software, Inc. All rights reserved. * Version 2.4.0.3 * */ var Show = {}; Show.LastAR = null, Show.hideAR = function(){ Show.LastAR.style.display = 'none'; }; Show.showAR = function ( link, id, win ){ if( Show.LastAR ){ Show.hideAR(); } var ref = link; do { ref = ref.nextSibling; } while (ref && ref.nodeName != 'TABLE'); if (!ref || ref.nodeName != 'TABLE') { var tmp = win ? win.document.getElementById(id) : document.getElementById(id); if( tmp ){ ref = tmp.cloneNode(true); ref.id = ''; link.parentNode.appendChild(ref); } } if( ref ){ ref.style.display = 'block'; Show.LastAR = ref; } }; Show.toggleNext = function( link ){ var ref = link; do{ ref = ref.nextSibling; }while( ref.nodeName != 'DIV' ); if( ref.style && ref.style.display && ref.style.display == 'none' ){ ref.style.display = 'block'; if( link.textContent ){ link.textContent = link.textContent.replace( '+', '-' ); }else{ link.innerText = link.innerText.replace( '+', '-' ); } }else{ ref.style.display = 'none'; if( link.textContent ){ link.textContent = link.textContent.replace( '-', '+' ); }else{ link.innerText = link.innerText.replace( '-', '+' ); } } }; XML 35 R7.htm IDEA: XBRL DOCUMENT v2.4.0.8
Nature Of Operations And Going Concern
12 Months Ended
Jun. 30, 2013
Nature Of Operations And Going Concern  
Nature Of Operations And Going Concern

NOTE 1 - NATURE OF OPERATIONS AND GOING CONCERN

 

Plandaí Biotechnology, Inc.’s (the “Company” or “Plandaí”) consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustment relating to recoverability and classification of recorded amounts of assets and liabilities that might be necessary should the Company be unable to continue as a going concern.

 

The Company's continued existence is dependent upon its ability to continue to execute its operating plan and to obtain additional debt or equity financing. There can be no assurance the necessary debt or equity financing will be available, or will be available on terms acceptable to the Company.

 

Plandaí and its subsidiaries focus on the production of proprietary botanical extracts for the nutriceutical and pharmaceutical industries. The company grows much of the live plant material used in its products on a 3,000 hectare estate it operates under a 49-year notarial lease in the Mpumalanga region of South Africa. Plandaí uses a patented extraction process that is designed to yield highly bioavailable products of pharmaceutical-grade purity. The first product to be brought to market is Phytofare™ Catechin Complex, a green-tea derived extract that has multiple potential wellness applications. The company’s principle holdings consist of land, farms and infrastructure in South Africa. The Company is actively pursuing additional financing and has had discussions with various third parties, although no firm commitments have been obtained. Management believes these efforts will generate sufficient cash flows from future operations to pay the Company's obligations and realize positive cash flow. There is no assurance any of these transactions will occur.

 

Organization

 

On November 17, 2011, the Company, through its wholly-owned subsidiary, Plandaí Biotechnologies, Inc., consummated a share exchange with Global Energy Solutions, Inc. (“GES”), an Irish corporation. Under the terms of the share exchange, GES received 76,000,000 shares of the Company’s common stock that had been previously issued to Plandaí in exchange for 100% of the issued and outstanding capital of GES. Concurrent with the share exchange, the Company sold its subsidiary, Diamond Ranch, Ltd., together with its wholly-owned subsidiary, Executive Seafood, Inc., to a former officer and director of Diamond Ranch. Under the terms of the sale, the purchasers assumed all associated debt as consideration. During the three months ended September 30, 2011 and through the date of the share exchange, Diamond Ranch, Ltd. and Executive Seafood, Inc. had negligible revenues from operations, generated a net loss of $126,000, and as of September 30, 2011, liabilities exceeded assets by over $5,000,000. The Company subsequently changed its name to Plandaí Biotechnology, Inc. and dissolved GES.

 

For accounting purposes, the share exchange has been treated as a reverse merger since the acquired entity now forms the basis for operations and the transaction resulted in a change in control, with the acquired company electing to become the successor issuer for reporting purposes. The accompanying financial statements have been prepared to reflect the assets, liabilities and operations of Plandaí Biotechnology, Inc. exclusive of Diamond Ranch Foods since the acquisition and sale were executed simultaneously. For equity purposes, the shares issued to acquire GES (76,000,000 shares) have been shown to be issued and outstanding since inception, with the previous balance outstanding (25,415,300 shares Common) treated as a new issuance as of the date of the share exchange. The additional paid-in capital and retained deficit shown are those of Plandaí and its subsidiary operations.

 

In management’s opinion, all adjustments necessary for a fair statement of the results for the presented periods have been made.  All adjustments made were of a normal recurring nature.

 

Basis of Presentation

 

The Company’s financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”).

XML 36 R3.htm IDEA: XBRL DOCUMENT v2.4.0.8
Consolidated Balance Sheets (Parenthetical) (USD $)
Jun. 30, 2013
Jun. 30, 2012
Statement of Financial Position [Abstract]    
Common Stock, Par Value $ 0.0001 $ 0.0001
Common Stock, Shares Authorized 500,000,000 500,000,000
Common Stock, Shares Issued 106,270,760 110,895,300
Common Stock, Shares Outstanding 106,270,760 110,895,300
XML 37 R17.htm IDEA: XBRL DOCUMENT v2.4.0.8
Common Stock
12 Months Ended
Jun. 30, 2013
DisclosureCommonStockAbstract  
Common Stock

NOTE 11 – COMMON STOCK

 

During the year ended June 30, 2012, the Company recorded the following issuances of stock:

 

A total of 76,000,000 shares of common stock were issued to acquire 100% of the capital of Plandaí Biotechnologies, Inc., which owns several subsidiary companies located in South Africa.  For reporting purposes, these shares have been reflected as outstanding since inception and the issued and outstanding capital immediately prior to the share exchange has been shown as issued as of the date of the share exchange.

 

Prior to executing the share exchange, the Company issued 14,000,000 to various third parties in exchange for services rendered.  These shares, together with the prior outstanding balance, have been treated as shares issued as of the share exchange date since Plandaí is the surviving company for reporting purposes.

 

The Company issued a total of 7,980,000 shares of restricted common stock in exchange for services previously rendered.  The value of such shares on the date of issuance, $2,979,509, has been recorded as an expense in the current period.

 

In February 2012, the Company issued a total of 1,500,000 shares of restricted common stock to three individuals in exchange for shares of Dunn Roman Holdings stock which had been previously issued. The acquired Dunn Roman shares were then provided to thirds parties in order to comply with the BEE provisions associated with the loan from the Land Bank of South Africa, which required that 26% of Dunn Roman be black owned.  The Company has therefore determined to treat the value of the shares issued to acquire the Dunn Roman stock as a cost of securing the financing. The value of the shares on the date of issuance, $585,000, has been recorded as a discount to Long Term Notes Payable. As funds are advanced on the loan, the $585,000 will be amortized over the life of the loan (7 years).

 

During the year ended June 30, 2013, the Company recorded the following common stock transactions:

 

In February of 2013, the Company cancelled 250,000 shares of common stock that had been issued in the prior year for services to be performed. Those services were never rendered, resulting in the shares being returned to the company and cancelled. The value of the shares was previously recorded as an $80,000 operating expense. As a result of the canceled shares, the Company recorded an $80,000 reduction in operating expenses.

 

In February 2013, the Company repurchased 4,900,000 shares of common stock from a former director of the Company which had been issued for services rendered for total consideration of $125,000, which represented a 50% discount to market on the date of purchase. The shares were returned to treasury and subsequently cancelled.

 

In May and June of 2013, the Company issued a total of 525,460 shares of restricted common stock in exchange for proceeds of $140,500.

 

In February of 2013, the Company’s Board of Directors authorized the issuance of 4,360,000 shares of restricted common stock to officers and directors of the Company. As of the date of this report, the shares are yet to be issued and have been recorded as a stock subscription payable. The shares were for professional services provided to the Company and completed prior to June 30, 2013. The Company has recorded an expense of $261,600 which was calculated using the fair market price of the stock on the date of the board resolution authorizing the issuance of shares.

XML 38 R1.htm IDEA: XBRL DOCUMENT v2.4.0.8
Document and Entity Information (USD $)
12 Months Ended
Jun. 30, 2013
Sep. 20, 2013
Document And Entity Information    
Entity Registrant Name Plandai Biotechnology, Inc.  
Entity Central Index Key 0001317880  
Document Type 10-K  
Document Period End Date Jun. 30, 2013  
Amendment Flag true  
Current Fiscal Year End Date --06-30  
Is Entity a Well-known Seasoned Issuer? No  
Is Entity a Voluntary Filer? No  
Is Entity's Reporting Status Current? Yes  
Entity Filer Category Smaller Reporting Company  
Entity Public Float $ 19,894,000  
Entity Common Stock, Shares Outstanding   106,270,760
Document Fiscal Period Focus FY  
Document Fiscal Year Focus 2013  
Amendment Description

This Amendment No. 2 on Form 10-K/A amends the Registrant’s Form 10-K/A, filed on November 27, 2017 and Annual Report filed on Form 10-K on September 30, 2013 with the Securities and Exchange Commission. Amendment No. 2 is being filed to include a new audit opinion letter provided by the Registrant’s certified public accountant resulting from a re-audit of the fiscal years ended June 30, 2012 and 2013 and to include additional disclosure regarding the note payable to Land and Agriculture Bank of South Africa.

 
XML 39 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
Non-Controlling Interest
12 Months Ended
Jun. 30, 2013
DisclosureMinorityInterestAbstract  
Non-Controlling Interest

NOTE 12 – NON-CONTROLLING INTEREST

 

Plandaí owns 82% of Dunn Roman Holdings—Africa, which in turn owns 74% each of Breakwood Trading 22 (Pty, Ltd. and Green Gold Biotechnologies (Pty), Ltd., in order to be compliant with the Black Economic Empowerment rules imposed by the South African Land Bank. While the Company, under the Equity Method of Accounting, is required to consolidate 100% of the operations of its majority-owned subsidiaries, that portion of subsidiary net equity attributable to the non-controlling ownership, together with an allocated portion of net income or net loss incurred by the subsidiaries, must be reflected on the consolidated financial statements. On the balance sheet, non-controlling interest has been shown in the Equity Section, separated from the equity of Plandaí, while on the income statement, the non-controlling shareholder allocation of net loss has been shown in the Consolidated Statement of Operations. 

XML 40 R4.htm IDEA: XBRL DOCUMENT v2.4.0.8
Consolidated Statements Of Operations (USD $)
12 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Income Statement [Abstract]    
Revenues $ 359,143 $ 74,452
Cost of Goods 963,209   
Gross Profit (604,066) 74,452
Expenses:    
Salaries & Wages 764,230 2,301,534
Rent 477,766 64,053
Utilities 15,003 35,745
Insurance 71,601   
Professional Services 231,074 1,135,056
Depreciation 135,039   
General and Administrative 358,986 347,839
Total Expenses 2,053,698 3,884,226
Operating Loss (2,657,764) (3,809,774)
Other Expense    
Interest Expense (265,245) (28,586)
Derivative Interest (45,227)   
Total Other Expense (310,472) (28,586)
Net Loss (2,968,236) (3,838,360)
Loss Allocated to Non-controlling Interest (780,231) (61,188)
Net Loss, Adjusted (2,188,005) (3,777,172)
Other Comprehensive Income    
Foreign Currency Translation Adjustment 165,212 4,225
Comprehensive Loss $ (2,022,793) $ (3,772,947)
Basic & diluted loss per share $ (0.01) $ (0.02)
Weighted Avgerage Shares Outstanding 110,895,300 96,323,533
XML 41 R12.htm IDEA: XBRL DOCUMENT v2.4.0.8
Debenture Payable
12 Months Ended
Jun. 30, 2013
Debt Disclosure [Abstract]  
Debenture Payable

NOTE 6 – DEBENTURE PAYABLE

 

In May 2013, the company issued an 8% interest rate convertible debenture in the amount of $103,500 which becomes due and payable in February 2014. The debenture is convertible into common stock of the company at a discount of 42% off the market price of the company’s common stock six months after issuance (November 2013). The company has the right to pre-pay the debenture prior to conversion and has made arrangements to do so. The Company recorded a derivative liability of $45,227 which represents the estimated value of the shares over and above the amount of debenture that would be issued on conversion.

 

XML 42 R11.htm IDEA: XBRL DOCUMENT v2.4.0.8
Line Of Credit
12 Months Ended
Jun. 30, 2013
DisclosurePrepaidExpensesAbstract  
Line of Credit

NOTE 5 - LINE OF CREDIT

 

During the year ended June 30, 2012, the company entered into a line of credit agreement for $500,000 which was later increased to $1,000,000. The line of credit matures on January 5, 2014 and bears interest at the rate of ten percent (10%) per annum. As of June 30, 2013, the balance drawn down on the credit line was $752,503 and accrued interest was $93,184. The company is in negotiations to convert the balance outstanding plus accrued interest into common stock and anticipates consummating a resolution to this debt prior to the due date.

XML 43 R23.htm IDEA: XBRL DOCUMENT v2.4.0.8
Summary Of Accounting Policies (Policies)
12 Months Ended
Jun. 30, 2013
Summary Of Accounting Policies Policies  
Use Of Estimates

Use of Estimates

 

The financial statements are prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the financial statements, management is required to make estimates and assumptions that effect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the balance sheet and statement of operations for the year then ended. Actual results may differ from these estimates. Estimates are used when accounting for allowance for bad debts, collect ability of accounts receivable, amounts due to service providers, depreciation and litigation contingencies, among others.

Cash And Cash Equivalents

Cash and Cash Equivalents

 

For purposes of the statement of cash flows, the Company considers all highly liquid debt instruments purchased with a maturity of three months or less to be cash equivalents to the extent the funds are not being held for investment purposes.

Revenue Recognition

Revenue recognition

 

The Company presently derives its revenue from the sale of timber and agricultural products produced on its farm and tea estate holdings in South Africa. Revenue is recognized when the product is delivered to the customer. Once production of the Company’s Phytofare™ botanical extracts commence in 2014, revenues will be recognized when product is shipped.

 

Concentration Of Credit Risk

Concentration of Credit Risk

 

The Company has no significant off-balance sheet concentrations of credit risk such as foreign exchange contracts, options contracts or other foreign hedging arrangements.

Property And Equipment

Property and equipment

 

Property and equipment are stated at cost less accumulated depreciation and amortization.  The Company provides for depreciation and amortization using the straight-line method over the estimated useful lives of the related assets, which range from three to five years. Maintenance and repair costs are expensed as they are incurred while renewals and improvements which extend the useful life of an asset are capitalized.  At the time of retirement or disposal of property and equipment, the cost and related accumulated depreciation and amortization are removed from the accounts and any resulting gain or loss is reflected in the results of operations.

 

Impairment Of Long-Lived Assets

Impairment of Long-Lived Assets

 

In accordance with ASC Topic 360, formerly SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, the Company reviews its long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of these assets may not be fully recoverable. The assessment of possible impairment is based on the Company’s ability to recover the carrying value of its asset based on estimates of its undiscounted future cash flows. If these estimated future cash flows are less than the carrying value of the asset, an impairment charge is recognized for the difference between the asset's estimated fair value and its carrying value. As of the date of these financial statements, the Company is not aware of any items or events that would cause it to adjust the recorded value of its long-lived assets for impairment.

Earnings Per Share

Earnings per Share

 

Basic gain or loss per share has been computed by dividing the loss for the period applicable to the common stockholders by the weighted average number of common shares outstanding during the years. There are no dilutive outstanding common stock equivalents as of June 30, 2013 and 2012.

 

Income Taxes

Income Taxes

 

The Company accounts for income taxes under ASC Topic 740, formerly SFAS No. 109, Accounting for Income Taxes, as clarified by ASC Topic 740, formerly FASB Interpretation No. 48, Accounting for Uncertainty in Income Taxes, (“FIN No. 48”). Deferred tax assets and liabilities are determined based upon differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. A valuation allowance is provided when it is more likely than not that some portion or all of a deferred tax asset will not be realized.

 

The Company adopted the provisions of ASC Topic 740, formerly FIN No. 48 on January 1, 2007. Previously, the Company had accounted for tax contingencies in accordance with Statement of Financial Accounting Standards No. 5, Accounting for Contingencies. As required by ASC Topic 450, formerly FIN No. 48, the Company recognizes the financial statement benefit of a tax position only after determining that the relevant tax authority would more likely than not sustain the position following an audit. For tax positions meeting the more-likely-than-not threshold, the amount recognized in the financial statements is the largest benefit that has a greater than 50 percent likelihood of being realized upon ultimate settlement with the relevant tax authority. At the adoption date, the Company applied ASC Topic 740, formerly FIN No. 48 to all tax positions for which the statute of limitations remained open. As a result of the implementation of ASC Topic 740, formerly FIN No. 48, the Company did not recognize any change in the liability for unrecognized tax benefits.

 

The Company is subject to income taxes in the U.S. federal jurisdiction and that of South Africa. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before April 1, 2007.

 

The Company is not currently under examination by any federal or state jurisdiction.

 

The Company’s policy is to record tax-related interest and penalties as a component of operating expenses.

 

Off-Balance Sheet Arrangements

Off-Balance Sheet Arrangements

 

We have no off-balance sheet arrangements.

 

Emerging Growth Company

Emerging Growth Company

 

We qualify as an “emerging growth company” under the 2012 JOBS Act. Section 107 of the JOBS Act provides that an emerging growth company can take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards. As an emerging growth company, we can delay the adoption of certain accounting standards until those standards would otherwise apply to private companies. We have elected to take advantage of the benefits of this extended transition period.

 

Fair Value Of Financial Instruments

Fair Value of Financial Instruments

 

Fair value of certain of the Company’s financial instruments including cash and cash equivalents, accounts receivable, account payable, accrued expenses, notes payables, and other accrued liabilities approximate cost because of their short maturities. The Company measures and reports fair value in accordance with ASC 820, “Fair Value Measurements and Disclosure” defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosures about fair value investments.

 

Fair value, as defined in ASC 820, is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The fair value of an asset should reflect its highest and best use by market participants, principal (or most advantageous) markets, and an in-use or an in-exchange valuation premise. The fair value of a liability should reflect the risk of nonperformance, which includes, among other things, the Company’s credit risk.

 

Valuation techniques are generally classified into three categories: the market approach; the income approach; and the cost approach. The selection and application of one or more of the techniques may require significant judgment and are primarily dependent upon the characteristics of the asset or liability, and the quality and availability of inputs. Valuation techniques used to measure fair value under ASC 820 must maximize the use of observable inputs and minimize the use of unobservable inputs. ASC 820 also provides fair value hierarchy for inputs and resulting measurement as follows:

 

Level 1 – Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities the Company has the ability to access.

 

Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly.

 

Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement.

 

Fair value measurements are required to be disclosed by the Level within the fair value hierarchy in which the fair value measurements in their entirety fall. Fair value measurements using significant unobservable inputs (in Level 3 measurements) are subject to expanded disclosure requirements including a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (i) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings, and a description of where those gains or losses included in earning are reported in the statement of income.

Advertising

Advertising

 

Advertising costs are expensed as incurred.

Principles of Consolidation

Principles of Consolidation

 

Plandaí Biotechnology, Inc. and its subsidiaries, are encompassed in the following entities, which have been consolidated in the accompanying financial statements:

 

Global Energy Solutions, Ltd. 100% owned by Plandaí Biotechnology, Inc.
Dunn Roman Holdings—Africa, Ltd 82% owned by Plandaí Biotechnology, Inc.
Breakwood Trading 22 (Pty) Ltd. 74% owned by Dunn Roman Holdings-Africa
Green Gold Biotechnologies (Pty) Ltd. 74% owned by Dunn Roman Holdings-Africa

 

During the year ended June 30, 2013, the Company determined that the entity, Global Energy Solutions, was unnecessary to operations and decided to dissolve that corporation, resulting in the stock of Dunn Roman Holdings-Africa being held directly by Plandaí. All liabilities were either satisfied or forgiven and all bank accounts closed. There were no operations in Global Energy Solutions during the periods presented. Global Energy Solutions was officially dissolved during the year ended June 30, 2013.

 

All intercompany balances have been eliminated in consolidation.

Straight-lining of Lease Obligation

Straight-lining of Lease Obligation

 

Plandaí’s subsidiaries have two long-term, material leases which either have escalating terms or included several months of “free” rent, including the 49-year notarial lease for the Senteeko Tea Estate. In accordance with US Generally Accepted Accounting Principles, the Company has calculated a straight-line monthly cost on the leases and recorded the corresponding difference between the amount actually paid and the amount calculated as a Capitalized Lease Obligation. As of June 30, 2013, the amount of this deferred liability was $988,381.

 

Recent Accounting Pronouncements

Recent Accounting Pronouncements

 

The Company has adopted the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 105-10, Generally Accepted Accounting Principles – Overall (“ASC 105-10”), which was formerly known as SFAS 168. ASC 105-10 establishes the FASB Accounting Standards Codification (the “Codification”) as the source of authoritative accounting principles recognized by the FASB to be applied by nongovernmental entities in the preparation of financial statements in conformity with U.S. GAAP. Rules and interpretive releases of the Securities and Exchange Commission (the "SEC") under authority of federal securities laws are also sources of authoritative U.S. GAAP for SEC registrants.  All guidance contained in the Codification carries an equal level of authority.  The Codification superseded all existing non-SEC accounting and reporting standards and all other non-grandfathered, non-SEC accounting literature not included in the Positions or Emerging Issues Task Force Abstracts.  Instead, it will issue Accounting Standards Updates (“ASUs”). The FASB will not consider ASUs as authoritative in their own right.  ASUs will serve only to update the Codification, provide background information about the guidance and provide the basis of conclusions on the change(s) in the Codification. References made to FASB guidance throughout this document have been updated for the Codification.

 

In May 2011, the Financial Accounting Standards Board (FASB) issued authoritative guidance regarding Fair Value Measurement: Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs, which resulted in common requirements for measuring fair value and for disclosing information about fair value measurement under both U.S. GAAP and International Financial Reporting Standards (IFRS), including a consistent definition of the term "fair value." The amendments were effective beginning in the first quarter of 2012, and did not have a material effect on our consolidated financial statements.

 

In June 2011, the FASB issued Accounting Standards Update 2011-05, Presentation of Comprehensive Income. This update amended the provisions of FASB ASC 220-10 by eliminating the option of reporting other comprehensive income in the statement of changes in stockholders’ equity. Companies will have the option of presenting net income and other comprehensive income in a single, continuous statement of comprehensive income or presenting two separate but consecutive statements of net income and comprehensive income. The new presentation requirements are effective for interim and annual periods beginning after December 15, 2011. The adoption of this standard is not anticipated to have a material impact on our financial statements.

 

In September 2011, the FASB issued Accounting Standards Update 2011-08, Testing Goodwill for Impairment. This update amended the provisions of FASB ASC 350-20-35 by allowing an entity the option to make a qualitative evaluation about the likelihood of goodwill impairment to determine whether it should calculate the fair value of a reporting unit. The amendments are effective for annual and interim goodwill impairment tests performed for fiscal years beginning after December 15, 2011. Early adoption is permitted, including for annual and interim goodwill impairment tests performed as of a date before September 15, 2011, if an entity’s financial statements for the most recent annual or interim period have not yet been issued. The adoption of this standard is not anticipated to have a material impact on our financial statements.

 

The Company has reviewed all other recently issued, but not yet adopted, accounting standards in order to determine their effects, if any, on its results of operation, financial position or cash flows.  Based on that review, the Company believes that none of these pronouncements will have a significant effect on its consolidated financial statements.

XML 44 R19.htm IDEA: XBRL DOCUMENT v2.4.0.8
Future Obligations
12 Months Ended
Jun. 30, 2013
Future Obligations  
Future Obligation

NOTE 13 – FUTURE OBLIGATIONS

 

Leases

 

In February 2012, the Company entered into a long-term (49 year) lease of tea, avocado, macadamia and timber plantation estates totaling roughly 8 thousand acres in South Africa. Under the terms of the lease, the Company is required to pay annual rent of R250,000 ($30,000) plus an annual dividend of 26% of net income generated from the use of the property with a R500,000 ($60,000) annual minimum dividend. The first payment of R20,883 ($2,610) was due April 2012, but by mutual agreement this payment has been extended until funding is received under the loan from the Land Bank of South Africa.

 

On March 1, 2012, the Company entered into a 10 year lease for office space for its subsidiary Dunn Roman Holdings. Under the terms of the lease, payments will be $2,500 a month. The leaser is a related party to the Company. See note 14 for more information.

 

The table below summarized the future lease obligations for the fiscal years ended.

 

    Tea Estate   Office Space
June 30, 2014   $ 360,000     $ 30,000  
June 30, 2015     360,000       30,000  
June 30, 2016     360,000       30,000  
June 30, 2017     360,000       30,000  
June 30, 2018     360,000       30,000  
Total five year lease obligation   $ 1,800,000     $ 150,000  

 

Both of these leases either have escalating terms or included several months of “free” rent, including the 49-year notarial lease for the Senteeko Tea Estate. In accordance with US Generally Accepted Accounting Principles, the Company has calculated a straight-line monthly cost on the leases and recorded the corresponding difference between the amount actually paid and the amount calculated as a Capitalized Lease Obligation. As of June 30, 2013, the amount of this deferred liability was $988,381.

 

Employment Agreements

 

The company executed three employment agreements in March of 2013 with two officers and one management level employee. Each contract is for a five year term. Once the Company successfully raises $5,000,000 in raised capital equity, the employment agreements call for annual salaries of $420,000 for the three employment agreements combined. As of right now, the Company has not raised the $5,000,000 in capital equity so it cannot sustain such payments and therefore pays only $180,000 annually for the three employment agreements combined. Pursuant to the three employment agreements in aggregate, the Company is also obligated to issue 4,000,000 common shares at the end of each completed year for services rendered to the Company. The Company valued the 4,000,000 shares at the closing stock price on the date of the executed agreement which was $0.06/share. At June 30, 2013, with regards to the future issuance of 4,000,000 shares, the Company accrued compensation expense for services completed in the amount of $80,000.

XML 45 R15.htm IDEA: XBRL DOCUMENT v2.4.0.8
Fixed Assets
12 Months Ended
Jun. 30, 2013
Property, Plant and Equipment [Abstract]  
Fixed Assets

NOTE 9 – FIXED ASSETS

 

Fixed assets, stated at cost, less accumulated depreciation at June 30, 2013 and June 30, 2012 consisted of the following:

 

    June 30,
2013
  June 30,
2012
                 
Total Fixed Assets   $ 8,043,692     $ 215,837  
Less: Accumulated Depreciation     (118,782 )     —    
Fixed Assets, net   $ 7,924,910     $ 215,837  

 

Depreciation expense

 

Depreciation expense for the year ended June 30, 2013 and 2012 was $135,039 and $0, respectively. The Company did not commence depreciating the leasehold improvements and other fixed assets until placed in service. The difference between accumulated depreciation and depreciation expense in 2013 resulted from the application of the currency adjustment (see Note 8).

 

XML 46 R13.htm IDEA: XBRL DOCUMENT v2.4.0.8
Long Term Debt
12 Months Ended
Jun. 30, 2013
Long Term Debt  
Long Term Debt

NOTE 7 – LONG-TERM DEBT

 

In June 2012, the Company, through the majority-owned subsidiaries of Dunn Roman Holdings, Inc., executed final loan documents on a 100 million Rand (approx. $13 million USD) financing with the Land and Agriculture Bank of South Africa. The total loan is comprised of multiple agreements totaling, between Green Gold Biotechnologies (Pty) Ltd. and Breakwood Trading 22(Pty) Ltd., 100 million rand. The loans all bear interest at the rate of prime plus 0.5% per annum and are all due in seven years. In addition, the loans have a 25-month “holiday” in which no payments or interest are due until 25 months after the first drawn down of funds. The loans are collateralized by the assets and operations, including the Senteeko lease, agriculture production and receivables of Dunn Roman Holdings, which is the African operating arm of Plandaí. In addition, Dunn Roman Holdings was required to grant a 15% profit share agreement to the Land Bank which extends through the duration of the loan agreements (7 years unless pre-paid). The profit share agreement extends only to profits generated by Dunn Roman Holdings exclusive of operations of Plandaí and outside of South Africa. In connection with this financing arrangement, the Land and Agriculture Bank of South Africa (the Bank) required the Company to maintain the following loan covenants: debt to equity of 1.5:1, interest coverage ratio of 1.5:1, and security coverage ratio of 1:1.  However, the Company consistantly notified the Bank of this situation. The Company has requested written documentation as to the Bank’s intention. The Bank has not provided this documentation in writing, however they have given verbal approval. In addition they have not started any action against the Company.

 

As of June 30, 2013, a total of $7,740,800 had been drawn down against the loans by Green Gold Biotechnologies (Pty) Ltd., which was used to purchase fixed assets that will be employed in South Africa to produce the company’s botanical extracts. Additionally, $2,017,903 had been drawn down against the loans by Breakwood Trading22 (Pty) Ltd. to fund the rehabilitation of the Senteeko Tea Estate, including the repair of roads, bridges, and onsite worker housing, and the pruning, weeding and fertilizing of plantation.

 

During the year ended June 30, 2012, the Company issued 1,500,000 shares of restricted common stock to three individuals in exchange for shares of Dunn Roman Holdings stock which had been previously issued. The acquired Dunn Roman shares were then provided to thirds parties in order to comply with the BEE provisions associated with the loan from the Land Bank of South Africa, which required that 15% of Dunn Roman be black owned. The Company has therefore determined to treat the value of the shares issued to acquire the Dunn Roman stock ($585,000) as a cost of securing the financing and recorded as a loan discount which will be amortized over the life of the loan (7 years) once payment of the loan commences in July 2014.

 

As of June 30, 2013, the loan balance was:

  

Loan Principle   $ 9,758,702  
Less: Discount     585,000  
Net Loan per Books   $ 9,173,702  

 

XML 47 R14.htm IDEA: XBRL DOCUMENT v2.4.0.8
Currency Adjustment
12 Months Ended
Jun. 30, 2013
Currency Adjustment  
Currency Adjustment

NOTE 8 – CURRENCY ADJUSTMENT

 

The Company’s principle operations are located in South Africa and the primary currency used is the South African Rand. Accordingly, the financial statements are first prepared in using Rand and then converted to US Dollars for reporting purposes, with the average conversion rate being used for income statement purposes and the closing exchange rate as of June 30, 2012 applied to the balance sheet. Differences resulting from the fluctuation in the exchange rate are recorded as an offset to equity in the balance sheet. As of June 30, 2013, the cumulative currency translation adjustments were $169,437.

 

XML 48 R16.htm IDEA: XBRL DOCUMENT v2.4.0.8
Deposits
12 Months Ended
Jun. 30, 2013
Notes to Financial Statements  
Deposits

NOTE 10 – DEPOSITS

 

Deposits as of June 30, 2012 consisted of machinery and equipment ordered from CRS Technologies. A deposit of $5,813,990 was paid to CRS Technologies via a loan from Land Bank described in Note 6. During the year ended June 30, 2013, this equipment was received by Plandaí and the balance was transferred to Fixed Assets.

XML 49 R34.htm IDEA: XBRL DOCUMENT v2.4.0.8
Loans From Related Parties (Narrative) (Details) (Loans From Related Parties, Chief Executive Officer)
12 Months Ended
Jun. 30, 2013
Loans From Related Parties | Chief Executive Officer
 
Debt Instrument [Line Items]  
Debt instrument interest rate, minimum 8.00%
Debt instrument interest rate, maximum 10.00%
Debt instrument maturity date Jan. 01, 2014
XML 50 R21.htm IDEA: XBRL DOCUMENT v2.4.0.8
Going Concern
12 Months Ended
Jun. 30, 2013
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Going Concern

NOTE 15 - GOING CONCERN

 

The accompanying consolidated financial statements have been prepared on a going concern basis, which contemplates realization of assets and the satisfaction of liabilities in the normal course of business. As shown in the accompanying consolidated financial statement, the Company has an accumulated deficit of $10,903,811 as of June 30, 2013. The ability of the Company to continue as a going concern is in doubt and dependent upon achieving a profitable level of operations or on the ability of the Company to obtain necessary financing to fund ongoing operations. Management believes that its current and future plans enable it to continue as a going concern for the next twelve months.

 

To meet these objectives, the Company continues to raise additional working capital through the private placement of our common stock in order to support existing operations and expand the range and scope of its business. However, there are no assurances that we will be successful through the private placement of our securities on acceptable terms and timely manner, if at all.  The failure to obtain the necessary working capital would have a material adverse effect on the business prospects and, depending upon the shortfall, the Company may have to curtail or cease its operations.

 

The accompanying consolidated financial statements do not include any adjustment to the recorded assets or liabilities that might be necessary should the Company have to curtail operations or be unable to continue in existence.

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Fixed Assets (Tables)
12 Months Ended
Jun. 30, 2013
Fixed Assets Tables  
Schedule Of Fixed Assets

Fixed assets, stated at cost, less accumulated depreciation at June 30, 2013 and June 30, 2012 consisted of the following:

 

    June 30,
2013
  June 30,
2012
                 
Total Fixed Assets   $ 8,043,692     $ 215,837  
Less: Accumulated Depreciation     (118,782 )     —    
Fixed Assets, net   $ 7,924,910     $ 215,837  

 

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Subsequent Events (Narrative) (Details) (USD $)
12 Months Ended 1 Months Ended 0 Months Ended
Jun. 30, 2013
Jun. 30, 2013
Common Stock
Jul. 31, 2013
Subsequent Event
Common Stock
Aug. 20, 2013
Subsequent Event
Two Convertible Promissory Notes
Aug. 26, 2013
Subsequent Event
Two Convertible Promissory Notes
Debt instrument face amount       $ 550,000  
Interest rate on debt       8.00%  
Debt instrument term       6 months  
Debt repayment terms      

During the first 90 days from issuance, the notes are repayable without incurring any interest charges.

 
Debt conversion terms      

When the notes become payable, the holder has the option of converting the unpaid balance of any advances into common stock of the company at a discount of 40% off the then current price per share.

 
Proceeds from convertible debt 103,500       125,000
Shares issued for cash, shares   525,460 16,700    
Shares issued for cash, value $ 140,500 $ 53 $ 5,000    
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Consolidated Statements Of Cash Flows (USD $)
12 Months Ended
Jun. 30, 2013
Jun. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net Loss $ (2,188,005) $ (3,777,172)
Adjustments to reconcile net loss to net cash provided by operating activities:    
Depreciation 135,039   
Loss Allocated to Non-Controlling Owners (780,232) (61,118)
Stock Issued for Services (80,000) 2,977,700
Common Stock Issuable 261,600   
Foreign Currency Translation Adjustment 165,212 4,225
Forgiveness of Interest 3,736   
Derivative Liability 45,227   
Capitalized Lease Obligation 493,805 64,053
Prepaid Expenses (10,647) (22,068)
Accounts Receivable (13,638)   
Inventory (6,439)   
Other Assets (358,861)   
Accounts Payable and Accrued Expenses 451,684 27,347
Related Party Payables 137,882 (37,482)
Accrued Interest 64,965 28,219
Net Cash Used in Operating Activities (1,776,736) (796,296)
CASH FLOWS FROM INVESTING ACTIVITIES:    
Deposits on Equipment    5,813,990
Loans from Related Parties (26,385) 402,903
Purchase of Fixed Assets 2,030,122 215,837
Net Cash Used in Investing Activities (2,056,507) (5,626,924)
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds From Long-term Debt, Net of Discount 3,944,712 5,813,990
Borrowings under Convertible Note 103,500  
Net Borrowings Under Credit Line 138,335 614,168
Proceeds from the Sale of Common Stock 140,500   
Net Cash Provided by Financing Activities 4,327,047 6,428,158
Net (Decrease) Increase in Cash and Cash Equivalents 493,805 4,938
Cash and Cash Equivalents at Beginning of Year 5,112 174
Cash and Cash Equivalents at End of Year $ 498,917 $ 5,112
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Loans From Related Parties
12 Months Ended
Jun. 30, 2013
DisclosureLoansFromRelatedPartiesAbstract  
Loans From Related Parties

NOTE 4 –LOANS FROM RELATED PARTIES

 

As of June 30, 2013, the Company has outstanding loans to various related parties in the amount of $501,518. These loans were provided for short-term working capital purposes, bear interest at rates between 8-10%, and mature on January 1, 2014.

 

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Future Obligations (Tables)
12 Months Ended
Jun. 30, 2013
Future Obligations Tables  
Schedule Of Future Lease Obligations

The table below summarized the future lease obligations for the fiscal years ended.

 

    Tea Estate   Office Space
June 30, 2014   $ 360,000     $ 30,000  
June 30, 2015     360,000       30,000  
June 30, 2016     360,000       30,000  
June 30, 2017     360,000       30,000  
June 30, 2018     360,000       30,000  
Total five year lease obligation   $ 1,800,000     $ 150,000  

 

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Common Stock (Narrative) (Details) (USD $)
12 Months Ended 2 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended 12 Months Ended 1 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Restricted Common Stock
Jun. 30, 2012
Restricted Common Stock
Feb. 28, 2013
Restricted Common Stock
Officers And Directors
Feb. 28, 2013
Common Stock
Jun. 30, 2013
Common Stock
Jun. 30, 2012
Common Stock
Feb. 28, 2013
Common Stock
Former Director
Jun. 30, 2012
Various Third Parties
Common Stock
Feb. 29, 2012
Three Individuals
Restricted Common Stock
Shares issued for services, shares       7,980,000       7,980,000   14,000,000  
Shares issued for services, value   $ 2,977,700   $ 2,979,509       $ 798      
Shares issued as loan origination fees, shares               1,500,000     1,500,000
Shares issued as loan origination fees, value   585,000           150     585,000
Shares repurchased or cancelled, shares           (250,000) (5,150,000)   (4,900,000)    
Shares repurchased or cancelled, value (205,000)         (80,000) (515)   (125,000)    
Shares issued for cash, shares     525,460       525,460        
Proceeds from the sale of stock 140,500    140,500                
Shares of restricted common stock authorized by the board         4,360,000            
Stock Subscritption Payable $ 261,600        $ 261,600            
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Related Party Transaction
12 Months Ended
Jun. 30, 2013
Related Party Transaction  
Related Party Transaction

NOTE 14 – RELATED PARTY TRANSACTION

 

In addition to the loans payable as discussed above (see Note 4), the Company had the following related party transactions during the years ended June 30, 2013 and 2012.

 

Deposits on Equipment

 

In June 2012, the Company’s subsidiary, Green Gold Biotechnology (Pty), Ltd., ordered machinery and equipment from CRS Technology, Inc., a company controlled by a trust of which Roger Duffield and Daron Baylis Duffield are the beneficiaries. The total purchase price of the assets acquired of approximately $5,779,200 (R47,793,992) was paid for from proceeds from the Land and Agriculture Bank of South Africa.

 

Accounts Payable to Related Parties

 

As of June 30, 2013 and 2012, the Company has accounts payable to related parties balances totaling $145,822 and $7,940 which consists primary of amounts owed to a company controlled by an officer and director of the company which paid certain operating expenses on behalf of the company.

 

Shareholder Loans

 

As of June 30, 2013 and 2012, the Company has outstanding loans from the Company’s Chief Executive Officer in the amount of $501,518 and $402,903. These loans were provided for short-term working capital purposes and bear interest at a rate of 4%. The loans cannot be called until the Company’s obligations under the Land & Agriculture Bank of South Africa have been met.

 

Office Lease

 

The Company leases its South African Office space from a trust of which one of the beneficiaries serves on the Board of Directors of Dunn Roman Holding—Africa, Ltd., a subsidiary of the Company. The lease agreement calls for monthly payments of $2,500. During the years ended June 30, 2013 and 2012, a total of $32,154 and $0 has been paid in rent expense.

 

Compensation to Officers and Management

 

Pursuant to three employment agreements executed on March 1, 2013 by the Company with two of its officers and one manager, the Company is also obligated to issue 4,000,000 common shares at the end of each completed year for services rendered to the Company. The Company valued the 4,000,000 shares at the closing stock price on the date of the executed agreement which was $0.06/share. At June 30, 2013, with regards to the future issuance of 4,000,000 shares, the Company accrued compensation expense for services completed in the amount of $80,000.