0001445866-13-000263.txt : 20130328 0001445866-13-000263.hdr.sgml : 20130328 20130328124156 ACCESSION NUMBER: 0001445866-13-000263 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20121231 FILED AS OF DATE: 20130328 DATE AS OF CHANGE: 20130328 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GREAT CHINA MANIA HOLDINGS, INC. CENTRAL INDEX KEY: 0001382112 STANDARD INDUSTRIAL CLASSIFICATION: COMMERCIAL PRINTING [2750] IRS NUMBER: 592318378 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-54446 FILM NUMBER: 13722683 BUSINESS ADDRESS: STREET 1: 203 HANKOW CENTER, 5-15 HANKOW ROAD STREET 2: TSIMSHATSUI CITY: KOWLOON STATE: K3 ZIP: 00000 BUSINESS PHONE: 852-2192-4808 MAIL ADDRESS: STREET 1: 6860 GULFPORT BLVD. S. STREET 2: # 159 CITY: ST PETERSBURG STATE: FL ZIP: 33707 FORMER COMPANY: FORMER CONFORMED NAME: Great East Bottles & Drinks (China) Holdings, Inc DATE OF NAME CHANGE: 20080515 FORMER COMPANY: FORMER CONFORMED NAME: Jomar Specialties, Inc. DATE OF NAME CHANGE: 20061127 10-K 1 gmec10k03262013.htm 10-K gmec10k03262013.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.20549
 
FORM 10-K
 
o ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2012

Or

o  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934
 
For the transition period from _______ to _______
 
Commission File No.: 333-139008

GREAT CHINA MANIA HOLDINGS, INC.
(Exact Name of Registrant as Specified in Its Charter)
 
Florida
59-2318378
(State or Other Jurisdiction of Incorporation or Organization)
(I.R.S. Employer Identification No.)
 
Room 1902, 19/F., Kodak House II, 321 Java Road, Hong Kong
(Address of Principal Executive Offices) (Zip Code)
 
Registrant’s telephone number, including area code: 852-2882-9810
 
Securities registered pursuant to Section 12(b) of the Act:  None
 
Securities registered pursuant to Section 12(g) of the Act: Common Stock, par value $.01 per share
 
Indicate by check mark if registrant is a well-known seasoned issuer, as defined under Rule 405 of the Securities Act.  Yes  ¨   No  x

Indicate by check mark if 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 registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act during the preceding 12 months (or for such shorter period that the issuer 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 Website, if any, every Interactive Date 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 whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,”“accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer o
Accelerated filer  o
Non-accelerated filer o  
(Do not check if a smaller reporting company)
Smaller reporting company  x


 
 

 

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

The aggregate market value of the registrant's voting stock held by non-affiliates (43,757,401 shares) of the registrant based upon the per share closing price of $0.08 on December 31, 2012 was approximately $3,500,592.

As of March 28, 2013, there were 80,498,453 shares of the issuer’s common stock outstanding.

Documents incorporated by reference: None
 

 
 

 


 
TABLE OF CONTENTS
 
 
Table of Contents  
     
Item 1. Business 4
     
Item 1A. Risk Factors 11
     
Item 1B. Unresolved Staff Comments 19
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
     
 


 
In this report, unless the context indicates otherwise, the terms  “Company,” “we,” “us,” and “our” refer to Great China Mania Holdings, Inc., a Florida corporation, and its wholly-owned subsidiaries for the period ending December 31, 2012.
 
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
 
This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, or the “Securities Act,” and Section 21E of the Securities Exchange Act of 1934 or the “Exchange Act.” These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or anticipated results.
 
In some cases, you can identify forward looking statements by terms such as “may,” “intend,” “might,” “will,” “should,” “could,” “would,” “expect,” “believe,” “anticipate,” “estimate,” “predict,” “potential,” or the negative of these terms. These terms and similar expressions are intended to identify forward-looking statements. The forward-looking statements in this report are based upon management's current expectations and belief, which management believes are reasonable.  In addition, we cannot assess the impact of each factor on our business or the extent to which any factor or combination of factors, or factors we are aware of, may cause actual results to differ materially from those contained in any forward looking statements.  You are cautioned not to place undue reliance on any forward-looking statements.  These statements represent our estimates and assumptions only as of the date of this report. Except to the extent required by federal securities laws, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.
 
You should be aware that our actual results could differ materially from those contained in the forward-looking statements due to a number of factors, including:

new competitors are likely to emerge and new technologies may further increase competition;
our operating costs may increase beyond our current expectations and we may be unable to fully implement our current business plan;
our ability to obtain future financing or funds when needed;
our ability to successfully obtain and maintain our diverse customer base;
our ability to protect our intellectual property through patents, trademarks, copyrights and confidentiality agreements;
our ability to attract and retain a qualified employee base;
our ability to respond to new developments in technology and new applications of existing technology before our competitors;
acquisitions, business combinations, strategic partnerships, divestures, and other significant transactions may involve additional uncertainties; and
our ability to maintain and execute a successful business strategy.
 
Other risks and uncertainties include such factors, among others, as market acceptance and market demand for our products and services, pricing, the changing regulatory environment, the effect of our accounting policies, potential seasonality, industry trends, adequacy of our financial resources to execute our business plan, our ability to attract, retain and motivate key technical, marketing and management personnel, and other risks described from time to time in periodic and current reports we file with the United States Securities and Exchange Commission, or the “SEC.” You should consider carefully the statements under “Item 1A. Risk Factors” and other sections of this report, which address additional factors that could cause our actual results to differ from those set forth in the forward-looking statements and could materially and adversely affect our business, operating results and financial condition. All subsequent written and oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the applicable cautionary statements.


Introduction

In February, 2011, three new subsidiaries of the Company were formed and have since maintained operations. These subsidiaries are “Great China Media limited” (which operates a publisher business), “Great China Game Limited” (which operates a game retail business), and “GME Holding Limited” (which operates an artist and artist management business). In June 2011, another new subsidiary GMEC Ventures Limited, a Hong Kong company, was formed and maintained for holding future investment if any.


 
Current Corporate Structure

As of the date of this filing, the corporate structure is as follows:

GMEC owns two wholly-owned subsidiaries named as Sharp Achieve Holdings Limited (BVI).and Super China Global Limited (BVI). Super China Global Limited (BVI) has two subsidiaries: 1) GME Holdings Limited which was incorporated February 18, 2011 and 2) GMEC Ventures Limited which was incorporated June 1, 2011. Sharp Achieve Holdings Limited (BVI) has two subsidiaries: 1) Great China Games Limited which was incorporated February 1, 2011 and 2) Great China Media Limited which was incorporated February 1, 2011.

General Description of Current Business

GMEC consists of 3 main business segments: Great China Media limited, an electronic content provider (“GCM”), GME Holding Limited, an artist and celebrity management company (“GMEH”) and Great China Game Limited, a video game retailer (“GCG”). In 2011, GCM was the main business segment of GMEC. During the mid of 2012, in order to capture the growing opportunities of artists management businesses in the region, the Company has reformed the businesses to position GMEH as the main business segment of GMEC.

GMEC is an artist management and entertainment company in located in Hong Kong and with talents all over Asia. Its major businesses include talent management, event management, music publishing, movie and TV series productions, multimedia and merchandise licensing in Hong Kong, China and across Asia. To leverage on the popularity and publicity of GMEC’s artists and celebrities in creating stories and events, GMEC also provides leisure and lifestyle-related electronic content to Hong Kong, Macau and China subscribers through cell phone networks and Internet.

GME Holdings Limited (“GMEH”)

GMEH currently manages 24 female artists and 5 male artists in Hong Kong, China, Malaysia and Australia.

Products and services

The profiles of the artists GMEH currently manages:

Female:

1.
Chrissie Chau
http://www.gmegroup.com.hk/index.php/talents/artist/chrissie
2.
Jeana Ho
http://www.gmegroup.com.hk/index.php/talents/artist/jeana
3.
Mia Chan
http://www.gmegroup.com.hk/index.php/talents/artist/mia
4.
Alin Chu
http://www.gmegroup.com.hk/index.php/talents/artist/a-lin
5.
Dada Lo
http://www.gmegroup.com.hk/index.php/talents/artist/dada
6.
Hidy Yu
http://www.gmegroup.com.hk/index.php/talents/artist/hidy
7.
Coco Yuen
http://www.gmegroup.com.hk/index.php/talents/artist/coco
8.
Waye
http://www.gmegroup.com.hk/index.php/talents/artist/waye
9.
Kabby Hiu
http://www.gmegroup.com.hk/index.php/talents/artist/kabby
10.
Suki Wong
http://www.gmegroup.com.hk/index.php/talents/artist/suki
11.
Annie G
http://www.gmegroup.com.hk/index.php/talents/artist/annie-g
12.
Haily C
http://www.gmegroup.com.hk/index.php/talents/artist/hailey
13.
Rika V
http://mm.taobao.com/gmerika?spm=0.0.0.0.tlqI6x
 
 
 
 
14.
Emily Lam
http://www.gmegroup.com.hk/index.php/talents/artist/emily
15.
Bao
http://www.gmegroup.com.hk/index.php/talents/artist/bao
16.
Chris Tong
http://www.gmegroup.com.hk/
17.
Amy Wong
http://gmeaustralia.com.au/artiste-8/
18.
Asiara Liu
http://gmeaustralia.com.au/artiste-8/
19.
Camilla
http://gmeaustralia.com.au/artiste-8/
20.
Fiona
http://gmeaustralia.com.au/artiste-8/
21.
Jennifer
http://gmeaustralia.com.au/artiste-8/
22.
Mia Lee
http://gmeaustralia.com.au/artiste-8/
23.
Toshika
http://gmeaustralia.com.au/artiste-8/
24.
Wendy Kong
http://gmeaustralia.com.au/artiste-8/

Male:

1.
Dominic Ho
http://www.gmegroup.com.hk/index.php/talents/artist/dominic
2.
La Ying
http://www.gmegroup.com.hk/index.php/talents/artist/la-ying
3.
KitJ
http://www.gmegroup.com.hk/index.php/talents/artist/kit-j
4.
Ben Yeung
http://www.gmegroup.com.hk/index.php/talents/artist/ben
5.
King Chiu
http://www.gmegroup.com.hk/index.php/talents/artist/king


During 2012, we have arranged our artists to participate in the following activities for revenue generations:

1.
Movie participations
   
 
'Journey to The West ' by Chrissie Chau http://goo.gl/BQ5qm
 
‘Ye Dian Gui Tan’ By Chrissie Chau http://goo.gl/s9VPl
 
‘Paper Moon’ by Chrissie Chau http://goo.gl/F0XVw
 
‘Lives in Flames’ by Jeana Ho http://goo.gl/M7cqS
 
‘Lan Kwai Fong 2’  By Mia Chan and Dominic Ho http://goo.gl/WGDu1
 
‘Young and Dangerous: Reloaded’ By Dominic Ho http://goo.gl/C45Pn
   
2.
TV series participations
   
 
Now TV 102 Channel Fiji Tour by Rika V, Hidy Yu and Dominc Ho http://goo.gl/txsrp
 
'Tang Dynasty Romantic Hero' By Chrissie Chau http://goo.gl/Ezcuw
 
Chrissie Chau on TV Series "IPMAN" http://goo.gl/Ncqp1
 
‘Memories’ by Chrissie Chau, Coco Yuen and Waye http://goo.gl/EEfD8
   
3.
Music and record productions
   
 
Coco Yuen and Waye perform their first plug song “Lemon Space-Time” http://goo.gl/CgSWE
 
Bro5 , OctoBeez ,LemonBeez perform in CoverStar competition http://goo.gl/XbbZn
 
Bro5 ‘Crazy” MV http://goo.gl/tqO52
   
4.
Promotional events for brands and institutional customers
   
 
Sydney Australia Tao Girls Recruitment promotion http://goo.gl/zVaqW
 
Alivenotdead x SONY XBA head phone promotion by Jeana Ho http://goo.gl/cseoP
 
 
 
 
 
Victoria Secret Macau grand opening DJ by Jeana Ho http://goo.gl/exGqX
 
Broadway Electronic Store TVC by Dominic Ho, Hailey C http://goo.gl/14ErS
 
MonsterBeez (Haily C and Annie G) DJing in Fanta Sai Yu party http://goo.gl/z2r6F
 
McDonald McCafe TVC by Dominic Ho http://goo.gl/dk1Nd
 
Gaga Club Jeana DJ show http://goo.gl/sgckS
 
Skin Peptoxyl promotion by Rika V http://goo.gl/Wft8Z
 
Mia Chan DJing in Open Gala Party of Shenzhen China ‘Face Club’ http://goo.gl/evw8m
   
5.
Spokesperson marketing
   
 
Chrissie Chau is chosen as the spokesman of Hong Kong's largest electronics retailers 'Citylink' http://goo.gl/oNYnL
 
Chrissie Chau becomes the spokesman of giant underwear and consumer goods brand ‘LA MIU’ in China http://goo.gl/78fmC
 
Chrissie Chau is chosen as the sole spokesman of Kentucky Fried Chicken ("KFC") and its signatory "Zinger Tower Burger" in Hong Kong http://goo.gl/hjuNh
   
6.
Artist – related merchandising
   
 
Chrissie Chau crossover famous Chinese fashion brand for revenue generating activities http://www.lamiu.com/article_847.html

GMEH also receives shared revenue from
 
1.
Intellectual property rights on CD, DVD and video products
 
2.
Musical product licenses
 
3.
MP3 downloads

Target customers

Since the majority of its artists appeal to adolescents and young generation, GMEH’s target customers are:
 
1.
Adolescents and young adults
 
2.
Brand owners and institutional customers who target adolescents and young adults as their end customers

The selected list of institutional clients of GMEH in 2012 includes:

1.
KFC
http://www.kfchk.com
2.
Bossini
http://www.bossini.com
3.
LA MIU
http://www.lamiu.com
4.
Giordano
http://www.giordano.com.hk
5.
McDonalds
http://www.mcdonalds.com.hk
6.
Taobao
http://mm.taobao.com
7.
Citilink
http://www.citylink.com.hk
8.
Funamedia
http://www.funamedia.com/
9.
Mega-Vision Pictures Limited
http://www.thefilmcatalogue.com/catalog/CompanyDetail.php?id=3041
10.
MTel Limited
http://www.mtelnet.com/

Currently GMEH’s artists are from Hong Kong, Malaysia, Australia and China.

Great China Media Limited (“GCM”)

GCM is an electronic content provider arm within GMEC. It is located and operated in Hong Kong. Through GCM, GMEC targets at Hong Kong’s electronic content market through provision of content in the form of electronic magazines and auxiliary products. GCM can leverage on the involvements of GMEH’s artists in various activities to create and produce more electronic contents that are appealing to and welcomed by adolescents and young adults.GCM owns the intellectual property rights of all the electronic content developed, which consists of a huge catalog of content and distribution rights.

Products

GCM provides mainly three products:

1.
Electronic content in the form of electronic magazines


Currently GCM publishes 7 electronic weekly / bi – weekly magazines:

Names of magazines
Themes and contents
   
GameWave
Reviews, previews and news about video games
AniWave
Reviews and previews about animated films
SoccerWave
News about world soccer
Hotmachine
News and information about sports cars and automobiles
AppsWave/AppsBible
Reviews and news about Apple App Store and Android Market products
C.P.U
Updates about computer hardware and software
PCGameWave
Reviews, previews and news about PC online games

Through the provision of these electronic magazines, revenues are generated from 2 sources:

Direct subscription from customers: Customers can subscribe to electronic magazines through traditional computers, iphones, iPads, Android handsets and tablets using:

 
1.
24 reader ( link here )

Revenue sharing with cell phone operators: GCM has distribution agreements with various major operators in Hong Kong and China:

 
1.
3HK ( link here )
 
2.
Smartone and China Mobile ( link here )
 
3.
3 Macau ( link here )
 
4.
China Viva ( link here )


 
2.
Traditional magazines

In order to fully utilize the electronic contents that GCM has produced, GCM has also made available the content in traditional paper magazines through over 2,000 points of sale throughout Hong Kong as follows:

Names of magazines
Available in
   
GameWave
7-Eleven, VanGo, Circle K, Book store
AniWave
7-Eleven, VanGo, Circle K, Book store
SoccerWave
7-Eleven, VanGo, Circle K, Book store
Hotmachine
7-Eleven, VanGo, Circle K, Book store
AppsBible
3Shop

 
3.
Advertisement

GCM generates advertisement revenue through the electronic media and traditional paper magazines.

Target customers

The core of GCM’s electronic contents relate to the leisure and lifestyle of adolescents and young adults. Each of these magazines is targeted to different groups of customers with different ages and preferences with the aim of covering all aspects of their leisure activities and hobbies:

Name of magazine
Target customers
 
Age group
Preferences in hobbies and activities
     
GameWave
8 – 35
Video console game player
AniWave
12 – 28
Young animation fans in HK
SoccerWave
12 – 40
Soccer fans in HK market
Hotmachine
12 – 35
Sports cars and automobile lovers
AppsWave/Appsbible
20 – 35
Smart phone user in HK
C.P.U
14 – 45
PC user in Hong Kong.
PCgamewave
8 – 30
Active online PC game player in Hong Kong

Great China Games Limited (GCG)


GCG targets at Hong Kong’s online and offline video games market. GCG is the official reseller of Microsoft Xbox360 and Monster Cable in Hong Kong.

The major brands of products that GCG has carried are as follows:

Product
Brands
   
Sony
PS3/PSP/PS VITA and accessories
Microsoft
Xbox360 and accessories
Other
Wii, and other brands

Industry and Market Environment

GMEH

China has one of the fastest growing entertainment industries in the world. The global entertainment industry is expected to show an annual growth of 10% in the next four years and that growth will be driven by China – movies, theme parks, media, etc. This growth in entertainment gives rise to many issues, including distribution, licensing, intellectual property, contract and investment.

Movies are very popular in China and there are approximately 15 movie studios in China, among the most famous are Shanghai studio, Beijing studio and Changchun studio. But the movies that are most popular are not produced by these studios, but come from foreign sources including the U.S. despite a variety of administrative measures by the Chinese central government, imported films represent a major share of the Chinese market. It is estimated that revenue from ten imported films was responsible for 70% of the market with the remaining 30% for 100 or more domestic films.

GCM

Hong Kong is a major center for Chinese-language publications. Some local Chinese newspapers and magazines are also distributed in Taiwan, the Chinese mainland and overseas communities where there are significant Chinese population.

Mainland market opening measures after the WTO accession are restricted to the formation of Sino-foreign joint-ventures in the publishing business and distribution of publications.

Hong Kong’s publishing industry is adapting to the digitalization trend, while the electronic book frenzy is sweeping the globe. In the past year, over 1,000 local e-books were published in Hong Kong. 24Reader, a local e-book integrator, has seen a steady growth of 10–20 percent in its mobile e-book apps business since last year. Responding to the growing popularity of electronic reading, the Hong Kong Book Fair 2011 featured two theme zones on e-publishing with 32 exhibitors, a 60 percent increase from last year. The Future Book Store, making its debut at the 2011 fair, attracted 10,000 visitors, and the e-book Reading Platform launched by 3 Hong Kong and HKTDC recorded more than 18,000 downloads since the end of June.

Underpinning Hong Kong’s publishing businesses is a highly developed printing industry. Meanwhile, many Hong Kong printing companies have relocated their factories to the PRC. According to the Hong Kong Printers Association, more than 70 percent of Hong Kong printing factories have moved to the PRC area.

Major Competitors

We have two major prevailing competitors in Hong Kong, specifically: China 3D Digital Entertainment Limited (“China 3D”) and Pegasus Entertainment Holdings Limited (“Pegasus”).

China 3D (Website: http://www.china3d8078.com) is a publicly trading company listed on the Growth Enterprise Market of The Hong Kong Stock Exchange (“GEM”) stock code: 8078 .  During 2011, China 3D reported a total revenue of approximately $6.9 million and a net loss of $1.1 million.

The expertise of China 3D is production of movies, acquisition of movie right and movie distribution.  During 2012, they have produced and distributed several successful movies with record breaking box offices revenues.  Looking forward in 2013, they will enter into the 3D movie market in Hong Kong and China as well.  They are in direct competition with GMEC’s movie business as GMEC plans to enter into the movie production and distribution rights business in 2013.


Pegasus (http://www.pegasusmovie.com) is also a publicly trading company listed GEM stock code: 8039.  Pegasus has an established brand name in the China movie market especially in comedy genre.  They have successfully acquired the theatrical distribution right and arranged the showing in Hong Kong and Macau for "Lost in Thailand", a wonderful comedy, who has grossed box office receipts over $200 million in China, setting the highest record of China box office receipts by a Chinese language movie.  They are also in direct competition with GMEC on the movie production and movie distribution right business in China market.

Competitive Advantages

GMEH

The management has identified several competitive factors in the industry:

 
1.
Management experience
 
2.
Business relationship in the industry
 
3.
Client relationship
 
4.
Relationship with theater networks within the region
 
5.
Experience in multimedia artist exposure

GMEC believes its management team has competitive advantages over these competitive factors:

 
1.
GMEC’s CEO and his management team has over 12 years experiences in this industry including over 10 years working experience in the largest entertainment company in Hong Kong.
 
2.
GMEC’s management team has an excellent relationship with TV channels, printed media, electronic media operators and theater network operators.
 
3.
CEO and his team have over 10 years’ experiences in establishing client relationship to organize and handle promotional events.
 
4.
GMEC management team has over 10 years’ working relationship with 2 major theater chains operators in Hong Kong to distribute movies in Hong Kong
 
5.
Through GCM operations, GMEC management team has the ability to utilize multimedia networks to create extensive public awareness and exposures over its artists and promotional events.

GCM

GCM utilizes crossover platforms, including traditional print media, online media, mobile media and outdoor media platform to create e – contents that enable GMEC to create extensive public exposure over its artists and events.  On the other hand, GMEH artists and events have supported GCM to ensure there are sufficient contents to be provided.  The synergies of combining GCM and GMEH operations cannot be easily imitated by GCM’s competitors.

The Company also has an in-house technology team that develops interactive applications, such as smart phone games that relate to magazine content or to adhere to a client’s brand promotion strategy.

Business development

GMEH

Looking forward in 2013, GMEC will develop its businesses organically through expanding the current businesses and penetrating into new businesses.

Current businesses expanding

GMEC will increase its extent of movie participations in Hong Kong and China by aggressively placing its artists in new movies to be produced in Hong Kong and China in 2013.  The main objective is to increase its revenue base and improves its artists’ exposure.

GMEC plans to penetrate into movie production business on top of movie participation by investing into new movies going to be produced in Hong Kong and China in 2013.  GMEC will also participate into overseas movie distribution businesses in 2013.

Penetrating into new businesses

GMEC plans develop the following new businesses in 2013:



 
1.
Cooperate with international celebrities / sport stars / artists to crossover merchandizes and products to be marketed in Hong Kong and China.  GMEC plans to leverage on the popularities of international celebrities and stars to: (1) assist GMEC’s artists to penetrate into international markets; (2) diversify revenue sources and increase sales through merchandizes and products.
 
2.
Cooperate with world class movie producers and experts to improve the quality of the movies produced by GMEC.  Through cooperation with world class movie experts, GMEC can improve the quality of its movies so produced to enhance movie revenues.
 
3.
Cooperate with famous and popular apparel brands and electronic products that are appealed to teenagers (e.g., headsets producers) as spokesman in order to better penetrate into teenagers’ market.

GCM

In 2013, GCM plans to create an online game point platform – ’GameWave Point’ with Ba-Bi (link here). It is estimated that the platform will commence into operations through Hong Kong’s convenience stores network in April 2013.

Employees

The following table summarizes the employees of GMEC and their operations of GCM, GMEH, GCG:

 
GMEC
GCM
GMEH
GCG
Total
           
CEO
1
--
--
--
1
General & Administration
2
4
3
1
10
Operation
--
33
3
--
36
Sales and broker
--
3
5
2
10
Total
3
40
11
3
57

Sales and Marketing

GMEH

We have 5 senior brokers in a public relations agency and production house to arrange and book model jobs for clients. Our General Manager and assistant manager will response negotiate television and film production units for artists’ jobs.

GCM

We have 3 sales representatives to directly approach clients and sell our printed and online banner space.

Our traditional magazines are distributed through distributors to over 2,000 point of sale in Hong Kong.

Our electronic magazine sell through various major operators in Hong Kong: 3HK link here, Smartone and China Mobile  link here , Macau (3 Macau ( link here ) ) and China (Viva ( link here ) ) to obtain revenue.


Before you invest in our common stock, you should be aware that there are risks, as described below.  You should carefully consider these risk factors together with all of the other information included in this prospectus before you decide to purchase shares of our common stock. Any of the following risks could adversely affect our business, financial condition and results of operations. We have incurred substantial losses from inception while realizing limited revenues and we may never generate substantial revenues or be profitable in the future.

Risks Associated with the Business operating units

Competition in this industry could result in us losing market share and charging lower prices for services, which could reduce our revenue.

We predominately compete in the fashion model management industry with numerous competitors, from large multi-national companies to local and boutique agencies.  We also compete in the general talent


management industry. “Talent” means any model, entertainer, artist, athlete or other talent or celebrity.  We endeavor to secure product endorsement contracts from branded consumer products companies for talent represented by us.

In many of our markets, our competitors may possess greater resources, greater name recognition, greater geographic reach and longer operating histories than us, which may give competitors an advantage in obtaining future clients and attracting qualified models and other talent in their markets.  Increased competition may lead to, among other things, loss of business and market share and pricing pressures that could negatively impact our business.

In addition, because one of our principal assets is people, and freedom of entry into the model management business is almost unlimited, a small agency may, on occasion, be able to develop business with our clients, particularly if the small agency is successful in recruiting other successful talent.

Our prospects and financial results may be adversely affected if we fail to identify, sign and retain quality talent.

We are dependent on identifying, signing and retaining models and other talent who are well received by clients and are likely to generate repeat business.  Our competitive position is dependent on our continuing ability to attract and develop talent whose work can achieve a high degree of client acceptance.  Our financial results may be adversely affected if we are unable to identify, sign and/or retain such talent under terms that are economically attractive to us.  Our business would be adversely affected by any of the following:

 
·
inability to recruit new models;
 
·
the loss of popularity of models among clients;
 
·
increased competition to maintain existing relationships with models;
 
·
non-renewals of current agreements with models; and
 
·
poor performance or negative publicity of models.

In addition, the fashion model industry is a youthful business, and models’ careers are inherently limited in length.  The loss or maturing of talent, particularly key talent responsible for significant gross billings, negatively impacts us.  If we are unable to replace lost talent, including by successfully recruiting or developing new talent, our business will suffer.  New talent is also important for us to continually show talent alternatives to clients, who regularly seek new “looks”.

We have relied upon our ability to enforce contracts entered into by models and other talent we represent.  If we are unable to protect and enforce our contractual rights, we may suffer a loss of revenue.

Our success depends, to a large degree, on our current talent under management and, in the future, scouting new talent and entering into new contracts.  To protect our contractual rights, we have traditionally vigorously defended our contractual rights vis-à-vis models and other talent, as well as other agencies and companies, for both financial reasons and to encourage ongoing strict adherence to contracts by all models and other talent.  Such strict enforcement through litigation and other legal means could result in substantial costs and diversion of resources and the potential loss of contractual rights, which could impair our results of operations and financial condition.

If we are unable to retain key management personnel or hire additional skilled personnel, we may not be able to successfully manage our business in the future.

Our key management personnel and their skills and relationships with clients are among our most important assets.  An important aspect of our competitiveness is our ability to attract and retain key management personnel, and our future success depends upon the continued service or involvement of key management personnel.  If we lose the services of one or more of our key management personnel, or if one or more of them decides to join a competitor or otherwise compete directly or indirectly with us, we may not be able to successfully manage our business or achieve our business objectives.  The loss of the services of any of our key management personnel or other key employees could have a material adverse effect on our business, prospects, financial condition and results of operations.  

In addition to retaining key existing management personnel, our future success may also depend on our ability to identify, attract, hire, train, and motivate other highly skilled management, agents and


administrative personnel.  Competition for such personnel is intense, and there can be no assurance that we will be able to successfully attract, assimilate or motivate sufficiently qualified personnel.  The failure to attract and retain the necessary personnel could have a material adverse effect on our business.

If we are unable to maintain our professional reputation and brand name, our business will be harmed.

We strongly depend on our overall reputation and brand name recognition, which we believe is strong in the industry, to secure new engagements and to sign qualified talent.  Our success also depends on the individual reputations of the talent that we represent.  In addition, any adverse effect on our reputation might negatively impact our businesses, which is driven largely by the value of the Company’s brand.  If any client is dissatisfied with our services, this may adversely affect our ability to secure new engagements.

If any factor, including poor performance, hurts our reputation, we may experience difficulties in competing successfully for both new client engagements and qualified talent.  Failing to maintain our professional reputation and the goodwill associated with our brand name could seriously harm our business.

Our revenue and net income may be affected by adverse economic conditions.

Recessions may impact gross billings for modeling services.  An important segment of the modeling industry is advertising, with advertising assignments typically generating amongst the highest daily fees in the business.  Because advertising expenditures are viewed by companies as discretionary and are curtailed during economic downturns, agency gross billings may also decline over recessionary periods.  There can be no assurance that current economic conditions will improve or even remain stable.  Our business, financial condition and results of operations could suffer if economic conditions weaken.

If some of our clients experience financial distress, their weakened financial position could negatively affect our financial position and results.

We have a diverse client base, and at any given time, one or more of our clients may experience financial distress, file for bankruptcy protection or go out of business.  If any client with whom we have a substantial amount of business experiences financial difficulty, it could delay or jeopardize the collection of accounts receivable, may result in significant reductions in services provided by us and may have a material adverse effect on our financial position, results of operations and liquidity.

We may undertake acquisitions to expand our business, which may dilute the ownership of existing stockholders.

As we pursue our business plan, we may pursue acquisitions of businesses, both domestic and international.  International acquisitions in particular would permit us to expand our global footprint.  To finance any acquisitions however, it may be necessary for us to raise additional funds through public or private financings.  Additional funds may not be available on favorable terms or at all, and, in the case of equity financings, would result in additional dilution to existing stockholders.  If we acquire any business and are unable to integrate the newly acquired entities effectively, our business and results of operations may suffer.  The time and expense associated with finding suitable and compatible businesses or services could also disrupt our ongoing business and divert management’s attention.  Future acquisitions by us could result in large and immediate write-offs or assumptions of debt and contingent liabilities, any of which could substantially harm our business and results of operations.

Any acquisitions that we attempt or complete could prove difficult to integrate or require a substantial commitment of management time and other resources.

Any strategy of acquiring other businesses involves a number of unique risks including:  (i) completing due diligence successfully, (ii) exposure to unforeseen liabilities of acquired companies and (iii) increased risk of costly and time-consuming litigation, including stockholder lawsuits.  If we pursue acquisitions, we may be unable to address these problems successfully.  Moreover, our future operating results will depend to a significant degree on our ability to integrate acquisitions (if any) successfully and manage operations while also controlling our expenses.  Integrating newly acquired businesses or services is likely to be expensive and time consuming.  We may be unable to select, manage or absorb or integrate any future acquisitions successfully, particularly acquisitions of large companies.  Any acquisition, even if effectively integrated, may not benefit our stockholders.


We may need additional debt or equity to sustain growth, but we do not have commitments for such funds.

We may need to finance future growth through a combination of borrowings, cash flow from operations, and equity financing.  Our ability to continue growing at the pace we have recently grown could depend in part on our ability to obtain either additional debt or equity financing.  The terms on which debt and equity financing is available to us varies from time to time and is influenced by our performance and by external factors, such as the economy generally and developments in the market, which are beyond our control.  If we are unable to obtain additional debt or equity financing on acceptable terms, we may have to curtail our growth by delaying new initiatives.  While we maintain a credit facility, our efforts to secure significant funds through debt financing have not been successful and, given the cautiousness of banks following the 2008 downturn, do not look likely in the foreseeable future.

Third parties may claim that we are infringing their intellectual property, and we could suffer significant litigation or licensing expenses or be prevented from selling products or services as a result.

We are not aware of any claims of infringement or challenges to our right to use any of our trademarks in the U.S.  Nevertheless, we could be subject to claims that we are misappropriating or infringing intellectual property or other proprietary rights of others.  Given that proprietary rights to photography, artwork and similar intellectual property rights are a fundamental part of marketing in the fashion and technology industry, we may be exposed at times to claims with respect to such rights.  Such claims, even if not meritorious, can be expensive to defend and divert management’s attention from our operations.  If we become liable to third parties for infringing these rights, we could be required to pay a substantial damage award and cease displaying, offering or selling works, products or services that use or contain the infringing intellectual property.  We may be unable to develop non-infringing products or services or obtain a license on commercially reasonable terms.  We may also be required to indemnify licensees and customers if they become subject to third-party claims relating to intellectual property that they license or otherwise provide to them, which could be costly.

We may not be able to adequately protect our media rights (including any intellectual property rights we have or may acquire).

Portions of our business rely on media and intellectual property.  Protecting these rights is difficult.  Piracy may adversely affect our revenue, particularly in countries where laws are less protective of such rights.  Further, reductions in the legal protection for intellectual property rights could adversely affect revenue.

Our future results could be materially adversely affected if it is found to have infringed on intellectual property rights.

Technology companies, including many of our subsidiaries’ competitors, frequently enter into litigation based on allegations of patent infringement or other violations of intellectual property rights. In addition, patent holding companies seek to monetize patents they have purchased or otherwise obtained. Although we have not encountered any intellectual property rights claims against it, as the Company grows, the intellectual property rights claims against it may increase.

Regardless of the scope or validity of such claims by potential or actual litigants, we may have to engage in litigation. If we are found to infringe any patents, it may be required to pay substantial damages. If there is a temporary or permanent injunction prohibiting us from marketing or selling certain products or a successful claim of infringement against us requiring it to pay royalties to a third-party, its financial condition and operating results could be materially adversely affected, regardless of whether it can develop non-infringing technology. In certain cases, we may consider the desirability of entering into licensing agreements, although no assurance can be given that such licenses can be obtained on acceptable terms or that litigation will not occur. These licenses may also significantly increase our operating expenses.

We may experience outages, data loss, and disruptions with the technology related to our services.    

Inefficiencies or operational failures, including temporary or permanent loss of customer data, could diminish the quality of our products, services, and user experience resulting in contractual liability, claims by customers and other third parties, damage to our reputation and loss of current and potential users, subscribers, and advertisers, each of which may harm our operating results and financial condition.


Investment in new business strategies and initiatives could disrupt our ongoing business and present risks not originally contemplated.

We have invested, and in the future may invest, in new business strategies or acquisitions. Such endeavors may involve significant risks and uncertainties, including distraction of management from current operations, insufficient revenue to offset liabilities assumed and expenses associated with the strategy, inadequate return of capital, and unidentified issues not discovered in the Company’s due diligence. These new ventures are inherently risky and may not be successful. They may materially adversely affect our financial condition and operating results.

Risks Relating to Business in Hong Kong

Substantially all of our assets are located in Hong Kong and substantially all of our revenues are derived from our operations in Hong Kong. Accordingly, our business, financial condition, results of operations and prospects are subject, to a significant extent, to economic, political and legal developments in Hong Kong.

The economic, political and social conditions, as well as governmental policies, could affect the financial markets in Hong Kong and our liquidity and access to capital and our ability to operate our business.

The Hong Kong economy differs from the economies of most countries in many respects, including the amount of government involvement, level of development, growth rate, control of foreign exchange, and allocation of resources. While the Hong Kong economy has experienced significant growth over the past, growth has been uneven, both geographically and among various sectors of the economy. The Hong Kong government has implemented various measures to encourage economic growth and guide the allocation of resources. Some of these measures benefit the overall Hong Kong economy, but may also have a negative effect on us. This may encourage foreign advertising companies with more experience, greater technological know-how and larger financial resources than we have to compete against us and limit the potential for our growth. Moreover, our financial condition and results of operations may be adversely affected by government control over capital investments or changes in tax regulations that are applicable to us.

The Hong Kong legal system embodies uncertainties which could limit the legal protections available to you and us.

The Hong Kong legal system is a civil law system based on written statutes. The overall effect of legislation over the past 26 years has significantly enhanced the protections afforded to various forms of foreign investment in Hong Kong. However, these laws, regulations and legal requirements change frequently, and their interpretation and enforcement involve uncertainties. For example, we may have to resort to administrative and court proceedings to enforce the legal protection that we enjoy either by law or contract. However, since Hong Kong administrative and court authorities have significant discretion in interpreting and implementing statutory and contractual terms, it may be more difficult to evaluate the outcome of administrative and court proceedings and the level of legal protection we enjoy than in more developed legal systems. For example, these uncertainties may impede our ability to enforce the contracts we have entered into. In addition, such uncertainties, including the inability to enforce our contracts, could materially and adversely affect our business and operation. In addition, intellectual property rights and confidentiality protections in Hong Kong may not be as effective as in the United States or other countries. Accordingly, we cannot predict the effect of future developments in the Hong Kong legal system, particularly with regard to the advertising industry, including the promulgation of new laws, changes to existing laws or the interpretation or enforcement thereof, or the preemption of local regulations by national laws. These uncertainties could limit the legal protections available to us, including our ability to enforce our agreements with our suppliers.

 If tax benefits currently available to us in Hong Kong were no longer available, our effective income tax rates for our Hong Kong operations could increase.

We generate a substantial portion or all our net income from our Hong Kong operations.  Our net income could be adversely affected by any change in the current tax laws in Hong Kong.

 The Hong Kong tax authorities may require us to pay additional taxes in connection with our acquisitions of offshore entities that conducted their Hong Kong operations through their affiliates in the United States.


Our operations and transactions are subject to review by the Hong Kong tax authorities pursuant to relevant Hong Kong laws and regulations. However, these laws, regulations and legal requirements change frequently, and their interpretation and enforcement involve uncertainties. For example, in the case of some of our future acquisitions of offshore entities that conduct their Hong Kong operations through their affiliates in the United States, we cannot assure you that the Hong Kong tax authorities will not require us to pay additional taxes in relation to such acquisitions, in particular where the Hong Kong tax authorities take the view that the previous taxable income of the Hong Kong affiliates of the acquired offshore entities needs to be adjusted and additional taxes be paid. In the event that the sellers failed to pay any taxes required under Hong Kong law in connection with these transactions, the Hong Kong tax authorities might require us to pay the tax, together with late-payment interest and penalties.

Hong Kong rules on mergers and acquisitions may subject us to sanctions, fines and other penalties and affect our future business growth through acquisition of complementary business.

We cannot assure you that the relevant Hong Kong government agency approval required for any issuance of our stock will be deemed legal. We may face sanctions by the Hong Kong regulatory agencies. In such event, this regulatory agency may impose fines and penalties on our operations in the Hong Kong, limit our operating privileges in the Hong Kong, delay or restrict the repatriation of the proceeds from any future sales of our stock into Hong Kong, or take other actions that could have a material adverse effect on our business, financial condition, results of operations, reputation and prospects.

Complying with the requirements of rules to complete such transactions could be time-consuming, and any required approval processes, including obtaining approval from the appropriate securities agency, may delay or inhibit the completion of such transactions, which could affect our ability to expand our business or maintain our market share.

Restrictions on currency exchange may limit our ability to utilize our revenues effectively.

Substantially all of our revenues and operating expenses are denominated in Hong Kong dollars. Since a significant amount of our future revenues will be denominated in Hong Kong dollars, any existing and future restrictions on currency exchange may limit our ability to utilize revenues generated in United States dollars (“USD”) to fund our business activities outside Hong Kong, if any, or expenditures denominated in foreign currencies. This could affect our ability to obtain foreign exchange through debt or equity financing, including by means of loans.

Fluctuations in exchange rates could result in foreign currency exchange losses.

Appreciation or depreciation in the value of the Hong Kong dollar relative to the U.S. dollar would affect our financial results reported in U.S. dollar terms without giving effect to any underlying change in our business or results of operations. The Hong Kong dollar may appreciate or depreciate significantly in value against the U.S. dollar in the long term, depending on the fluctuation of the basket of currencies against which it is currently valued or it may be permitted to enter into a full float, which may also result in a significant appreciation or depreciation of the Hong Kong dollar against the U.S. dollar. Fluctuations in the exchange rate will also affect the relative value of any dividend we issue in the future which will be exchanged into U.S. dollars and earnings from and the value of any U.S. dollar-denominated investments we make in the future.

Any future outbreak of severe acute respiratory syndrome or avian flu in Hong Kong, or similar adverse public health developments, may severely disrupt our business and operations.

From December 2002 to June 2003, Hong Kong and other countries experienced an outbreak of a new and highly contagious form of atypical pneumonia now known as severe acute respiratory syndrome, or SARS. On July 5, 2003, the World Health Organization declared that the SARS outbreak had been contained. Since September 2003, however, a number of isolated new cases of SARS have been reported, most recently in central Hong Kong in April 2004. During May and June of 2003, many businesses in Hong Kong were closed by the Hong Kong government to prevent transmission of SARS. In addition, many countries, including Hong Kong, have encountered incidents of the H5N1 strain of bird flu, or avian flu. This disease, which is spread through poultry populations, is capable in some circumstances of being transmitted to humans and is often fatal. A new outbreak of SARS or an outbreak of avian flu may result in health or other government authorities requiring the closure of our distributor’s offices or other businesses, including office buildings, retail stores and other commercial venues, which comprise the primary locations where we provide our digital out-of-home advertising services. Any recurrence of the SARS outbreak, an outbreak of avian flu or a development of a similar health hazard in Hong Kong, may deter people from congregating in public places, including a range of commercial locations such as office buildings and retail stores. Such occurrences would severely impact the value of our digital out-of-home advertising networks to advertisers, significantly reduce the advertising time purchased by advertisers and severely disrupt our business and operations.


 
Risks Associated with Our Stock

Our shares are listed for trading on the OTC Bulletin Board, and our shares will likely be classified as a “penny stock” as that term is generally defined in the Securities Exchange Act of 1934 to mean equity securities with a price less than $5.00.  Our shares will be subject to rules that impose sales practice and disclosure requirements on broker-dealers who engage in certain transactions involving a penny stock.
 
We are subject to the penny stock rules adopted by the Securities and Exchange Commission that require brokers to provide extensive disclosure to its customers prior to executing trades in penny stocks. These disclosure requirements may cause a reduction in the trading activity of our common stock, which in all likelihood would make it difficult for our stockholders to sell their securities.
 
Under the penny stock regulations, a broker-dealer selling a penny stock to anyone other than an established customer or accredited investor must make a special suitability determination regarding the purchaser and must receive the purchaser’s written consent to the transaction prior to the sale, unless the broker-dealer is otherwise exempt. Generally, an individual with a net worth in excess of $1,000,000, or annual income exceeding $200,000 individually, or $300,000 together with his or her spouse, is considered an accredited investor. In addition, under the penny stock regulations the broker-dealer is required to:

·
Deliver, prior to any transaction involving a penny stock, a disclosure schedule prepared by the Securities and Exchange Commission relating to the penny stock market, unless the broker-dealer or the transaction is otherwise exempt;
·
Disclose commissions payable to the broker-dealer and our registered representatives and current bid and offer quotations for the securities;
·
Send monthly statements disclosing recent price information pertaining to the penny stock held in a customer’s account, the account’s value and information regarding the limited market in penny stocks;
·
Make a special written determination that the penny stock is a suitable investment for the purchaser and receive the purchaser’s written agreement to the transaction, prior to conducting any penny stock transaction in the customer’s account.
 
Because of these regulations, broker-dealers may encounter difficulties in their attempt to sell shares of our common stock, which may affect the ability of selling stockholders or other holders to sell their shares in the secondary market and have the effect of reducing the level of trading activity in the secondary market. These additional sales practice and disclosure requirements could impede the sale of our securities. In addition, the liquidity for our securities may be decreased, with a corresponding decrease in the price of our securities. Our shares in all probability will be subject to such penny stock rules and our stockholders will, in all likelihood, find it difficult to sell their securities.

We do not anticipate paying dividends on our common stock in the foreseeable future, which may limit investor demand.

We do not anticipate paying any dividends on our common stock in the foreseeable future.  Such lack of dividend prospects may have an adverse impact on the market demand for our common stock as certain institutional investors may invest only in dividend-paying equity securities or may operate under other restrictions that may prohibit or limit their ability to invest in our common stock.

Our common stock is subject to price volatility unrelated to our operations.

The market price of our common stock could fluctuate substantially due to a variety of factors, including market perception of our ability to achieve our planned growth, trading volume in our common stock, changes in general conditions in the economy and the financial markets or other developments affecting us or our competitors.  In addition, the stock market is subject to extreme price and volume fluctuations.  This volatility has had a significant effect on the market price of securities issued by many companies for reasons unrelated to their operating performance and could have the same effect on our common stock.

Sales of substantial amounts of our common stock in the public market could depress the market price of our common stock.



The sale of a substantial amount of common stock in the public market, or the perception that such sales may occur, could cause the market price of our common stock to decline.  

The OTC Bulletin Board, or the OTCBB, is a quotation system, not an issuer listing service, market or exchange.  Therefore, buying and selling stock on the OTCBB is not as efficient as buying and selling stock through an exchange.  As a result, it may be difficult for you to sell your common stock or you may not be able to sell your common stock for an optimum trading price.

The OTCBB is a regulated quotation service that displays real-time quotes, last sale prices and volume limitations in over-the-counter securities.  Our common stock is traded on the OTC QX Marketplace, or OTCQX, which is the trading tier on the OTCBB with the most demanding listing standards.  Nevertheless, because trades and quotations on the OTCBB involve a manual process, the market information for such securities cannot be guaranteed.  In addition, quote information, or even firm quotes, may not be available.  The manual execution process may delay order processing and intervening price fluctuations may result in the failure of a limit order to execute or the execution of a market order at a significantly different price.  Execution of trades, execution reporting and the delivery of legal trade confirmations may be delayed significantly.  Consequently, one may not be able to sell shares of our common stock at the optimum trading prices.

When fewer shares of a security are being traded on the OTCBB, volatility of prices may increase and price movement may outpace the ability to deliver accurate quote information.  Lower trading volumes in a security may result in a lower likelihood of an individual’s orders being executed, and current prices may differ significantly from the price one was quoted by the OTCBB at the time of the order entry.  Orders for OTCBB securities may be canceled or edited like orders for other securities.  All requests to change or cancel an order must be submitted to, received and processed by the OTCBB.  Due to the manual order processing involved in handling OTCBB trades, order processing and reporting may be delayed, and an individual may not be able to cancel or edit his order.  Consequently, one may not be able to sell shares of common stock at the optimum trading prices.

The dealer’s spread (the difference between the bid and ask prices) may be large and may result in substantial losses to the seller of securities on the OTCBB if the common stock or other security must be sold immediately.  Further, purchasers of securities may incur an immediate “paper” loss due to the price spread.  Moreover, dealers trading on the OTCBB may not have a bid price for securities bought and sold through the OTCBB.  Due to the foregoing, demand for securities that are traded through the OTCBB may be decreased or eliminated.

Financial Industry Regulatory Authority, or FINRA, sales practice requirements may also limit a stockholder’s ability to buy and sell our common stock.

FINRA has adopted rules that require that in recommending an investment to a customer, a broker-dealer must, after conducting a thorough due diligence review of a customer’s financial condition, have reasonable grounds for believing that the investment is suitable for that customer.  Special rules on recommending speculative low priced securities to non-institutional customers require broker-dealers to make reasonable efforts to obtain information about the customer’s financial status, tax status, investment objectives and other relevant financial information.  Under interpretations of these rules, FINRA believes that there is a high probability that speculative low priced securities will not be suitable for at least some customers.  These FINRA requirements make it more difficult for broker-dealers to recommend that their customers buy our common stock, which may limit your ability to buy and sell our stock and may have an adverse effect on the market for our shares.

There has been no independent valuation of the stock, which means that the stock may be worth less than the purchase price.

This valuation of our stock is highly speculative and arbitrary. There is no relation to the market value, book value, or any other established criteria. We did not obtain an independent appraisal opinion on the valuation of the shares.

Investors may never receive cash distributions which could result in an investor receiving little or no return on his or her investment.

Distributions are payable at the sole discretion of our board of directors. We do not know the amount of cash that we will generate, if any, once we have more productive operations. Cash distributions are not assured, and we may never be in a position to make distributions.


Even if a market develops for our shares, our shares may be thinly traded with wide share price fluctuations, low share prices and minimal liquidity.

If a market for our shares develops, the share price may be volatile with wide fluctuations in response to several factors, including: potential investors’ anticipated feeling regarding our results of operations; ·increased competition; our ability or inability to generate future revenues; and market perception of the future of development of wood product manufacturing.

In addition, if our shares are quoted on the OTCBB, our share price may be affected by factors that are unrelated or disproportionate to our operating performance. Our share price might be affected by general economic, political, and market conditions, such as recessions, interest rates, or international currency fluctuations. In addition, even if our stock is approved for quotation by a market maker through the OTCBB, stocks traded over this quotation system are usually thinly traded, highly volatile and not followed by analysts. These factors, which are not under our control, may have a material effect on our share price.

We anticipate the need to sell additional authorized shares in the future.  This will result in a dilution to our existing shareholders and a corresponding reduction in their percentage ownership in the Company.

We may seek additional funds through the sale of our common stock. This will result in a dilution effect to our shareholders whereby their percentage ownership interest in the Company is reduced. The magnitude of this dilution effect will be determined by the number of shares we will have to issue in the future to obtain the funds required.  The sale of additional stock to new shareholders will reduce the ownership position of the current shareholders.  The price of each share outstanding common share may decrease in the event we sell additional shares.

Since our securities are subject to penny stock rules, you may have difficulty reselling your shares.

Our shares are “penny stocks” and are covered by Section 15(d) of the Securities Exchange Act of 1934 which imposes additional sales practice requirements on broker/dealers who sell our securities including the delivery of a standardized disclosure document; disclosure and confirmation of quotation prices; disclosure of compensation the broker/dealer receives; and, furnishing monthly account statements. For sales of our securities, the broker/dealer must make a special suitability determination and receive from its customer a written agreement prior to making a sale. The imposition of the foregoing additional sales practices could adversely affect a shareholder's ability to dispose of his stock.

 
Not Applicable.




The following properties are leased by the Company and the Subsidiaries:

Entity
 
Locations and addresses
 
Areas
 
Rent
 
Leasing period until
 
Owner
GMEC Ventures Limited
 
Suite 1902, 19/F., Tower II, Kodak House, Quarry Bay, Hong Kong
 
2,853 square feet
 
$6,949 per month
 
July 27, 2014
 
Vision China Limited
                     
Great China Media Limited
 
Room A, 18/F., Phase 1, Kingsford Industrial Building, 26-32 Kwai Hei Street, Kwai Chung, N.T., Hong Kong
 
4,100 square feet
 
$6,410 per month
 
January 31, 2014
 
China Culture Limited


To the knowledge of our management, there is no litigation currently pending or contemplated against us or any of our officers or directors in their capacity as such except the following:-

We are currently the defendant in a civil lawsuit that was brought by CMF Investments, Inc. in the state of New York. We intend to aggressively defend itself in this lawsuit. At issue in the lawsuit is the nonpayment by the plaintiffs for shares in the Company to a group of non affiliate shareholders and the attempts to collect the amount owed by the Plaintiff.  


There were no matters submitted to a vote of the Securities Holders.




 


Our common stock has been traded on the Over the Counter Bulletin Board (OTCBB) under the symbol “GEBD,” since May 22, 2008.On March 16, 2011, the symbol had been changed to “GMEC” because of the change of the Company name. The following table sets forth the high and low bid information for our common stock from January 1, 2011 through March 28, 2013, as reported by OTCBB.

 
Period
 
Low ($)
   
High ($)
 
                 
                 
2013 First Quarter
 
$
0.02
   
$
0.11
 
2012 Fourth Quarter
 
$
0.04
   
$
0.22
 
2012 Third Quarter
 
$
0.10
   
$
0.40
 
2012 Second Quarter
 
$
0.15
   
$
0.65
 
2012 First Quarter
 
$
0.04
   
$
0.45
 
2011 Fourth Quarter
 
$
0.06
   
$
0.06
 
2011 Third Quarter
 
$
0.01
   
$
0.08
 
2011 Second Quarter
 
$
0.01
   
$
0.12
 
2011 First Quarter
 
$
0.09
   
$
0.12
 

Number of Holders of Common Stock
 
The number of holders of record of our common stock on March 28, 2013 was 65.

Dividends
 
There were no cash dividends or other cash distributions made by us during the fiscal year ended December 31, 2011 or 2012. The payment of dividends in the future will be contingent upon our revenues and earnings, if any, capital requirements and general financial condition.  The payment of any dividends is within the discretion of our board of directors. It is the present intention of our board of directors to retain all earnings, if any, for use in our business operations and, accordingly, our board does not anticipate declaring any dividends in the foreseeable future.
 
Recent Sales of Unregistered Securities and Use of Proceeds

We issued 1,622,432 shares of common stock to a convertible note holder for final settlement of a convertible note totaling $40,000 during the period from January 2, 2013 to January 18, 2013.

We are offering to sell up to 10,600,000 shares of common stock issuable to one non affiliate investor as disclosed on our Form S-1 filed with the Securities and Exchange Commission on March 13, 2013.

Repurchases of Equity Securities

None.

Equity Compensation Plan Information

None.


As a smaller reporting company, we are not required to include this information in our annual report on Form 10-K.



Note regarding forward – looking statements

This annual report contains forward-looking statements within the meaning of the federal securities laws. These include statements about our expectations, beliefs, intentions or strategies for the future, which we indicate by words or phrases such as “anticipate,” “expect,” “intend,” “plan,” “will,” “we believe,” “the Company believes,” “management believes” and similar language. The forward-looking statements are based on the current expectations of the Company and are subject to certain risks, uncertainties and assumptions, including those set forth in the discussion under “Management's Discussion and Analysis of Financial Condition and Results of Operations” in this report. The actual results may differ materially from results anticipated in these forward-looking statements. We base the forward-looking statements on information currently available to us, and we assume no obligation to update them.

Investors are also advised to refer to the information in our filings with the Securities and Exchange Commission, specifically Forms 10-Q and 8-K, in which we discuss in more detail various important factors that could cause actual results to differ from expected or historic results. It is not possible to foresee or identify all such factors. As such, investors should not consider any list of such factors to be an exhaustive statement of all risks and uncertainties or potentially inaccurate assumptions.

Except as otherwise indicated by the context, references in this Form 10-K to “we”, “us”, “our”, the Registrant, our Company or the Company are to Great China Mania Holdings, Inc. (formerly known as Great East Bottles & Drinks (China) Holdings, Inc.), a Florida corporation and its consolidated subsidiaries. Unless the context otherwise requires, all references to (i) “BVI” are to British Virgin Islands; (ii) “PRC” and “China” are to the People’s Republic of China; (iii) “U.S. dollar”, “$” and “US$” are to United States dollars; (iv) “HKD” are to the Hong Kong Dollar; (v) “Securities Act” are to the Securities Act of 1933, as amended; and (vi) “Exchange Act” are to the Securities Exchange Act of 1934, as amended.

Critical Accounting Policies and Estimates

Our financial statements and related public financial information are based on the application of accounting principles generally accepted in the United States (“US GAAP”). US GAAP requires the use of estimates, assumptions, judgments, and subjective interpretations of accounting principles that have an impact on the assets, liabilities, revenues and expenses amounts reported. These estimates can also affect supplemental information contained in our external disclosures including information regarding contingencies, risk and financial condition. We believe our use of estimates and underlying accounting assumptions adhere to GAAP and are consistently and conservatively applied. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions or conditions. We continue to monitor significant estimates made during the preparation of our financial statements.

We believe the following is among the most critical accounting policies that impact our consolidated financial statements. We suggest that our significant accounting policies, as described in our consolidated financial statements in the Summary of Significant Accounting Policies, be read in conjunction with this Management's Discussion and Analysis of Financial Condition and Results of Operations.

Revenue recognition

Revenue represents the invoiced value of goods sold or services rendered during the year, net of sales discounts and returns. Generally revenue is recognized when all of the following criteria are met:
 
-
Persuasive evidence of an arrangement exists,
-
Delivery has occurred or services have been rendered,
-
The seller’s price to the buyer is fixed or determinable, and
-
Collectability is reasonably assured
 
Revenue recognition policies for each of the major products and services of continuing operations are illustrated as follows:

 
(i)
Revenue from provision of artist management, event management, and promotion for its clients are recognized when services are rendered.


 
(ii)
Revenue from traditional paper magazines sales is recognized when magazines are sold to customers, net of sales return.
 
(iii)
Revenue from the provision of advertising services is recognized when services are rendered.
 
(iv)
Revenue from electronic content sales like iPhone and Android applications is recognized when receipt is confirmed by service providers. In 2012, the revenue generated from digital content is not significant to the publication of magazines operation.
 
(v)
Revenue from retail operation of video games and accessories is recognized upon delivery of goods to customers.


Recent Accounting Pronouncements

In December 2011, the Financial Accounting Standards Board ("FASB") issued ASU 2011-11, Balance Sheet (Topic 210) Disclosures about Offsetting Assets and Liabilities. The amendments in this update will enhance disclosures required by U.S. GAAP by requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with either ASC 210-20-45 or ASC 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either ASC 210-20-45 or ASC 815-10-45. This information will enable users of an entity's financial statements to evaluate the effect or potential effect of netting arrangements on an entity's financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this Update. The amendments in this Update are effective for annual periods for fiscal years beginning on or after January 1, 2013. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In December 2011, the FASB has issued Accounting Standards Update (ASU) No.2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU No. 2011-11 is intended to supersede certain pending paragraphs in Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, to effectively defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. The amendments will be temporary to allow the Board time to redeliberate the presentation requirements for reclassifications out of accumulated other comprehensive income for annual and interim financial statements for public, private, and non-profit entities. All other requirements in ASU No. 2011-05 are not affected by ASU No. 2011-12, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. Nonpublic entities should begin applying these requirements for fiscal years ending after December 15, 2012, and interim and annual periods thereafter. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In August 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-03, Technical Amendments and Corrections to SEC Sections. This ASU amends various SEC paragraphs pursuant to SAB 114, SEC Release No. 33-9250, and ASU 2010-22, which amend or rescind portions of certain SAB Topics. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-04, Technical Corrections and Improvements. This ASU make technical corrections, clarifications, and limited-scope improvements to various Topics throughout the Codification. The amendments in this ASU that will not have transition guidance will be effective upon issuance for both public entities and nonpublic entities. For public entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. For nonpublic entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2013.The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

 
 

 

Results of Continued Operations – Year Ended December 31, 2012, as Compared to Year Ended December 31, 2011.

The following table summarizes the results of our continued operations during the year ended December 31, 2012 and 2011, and provides information regarding the dollar and percentage increase or (decrease) from the year ended December 31, 2011 to the year ended December 31, 2012.

   
2012
   
2011
   
Increase (decrease)
   
% Change
 
Revenue
                       
GMEH
  $ 1,931,005     $ 1,106,507     $ 824,498       74.51 %
GCM
    2,238,117       2,641,324       (403,207 )     (15.27 %)
GCG
    643,473       1,623,956       (980,483 )     (60.38 %)
      4,812,595       5,371,787       (559,192 )     (10.41 %)
Cost of sales
                               
GMEH
    1,282,555       850,380       432,175       50.82 %
GCM
    1,475,726       1,811,863       (336,137 )     (18.55 %)
GCG
    593,818       1,566,211       (972,393 )     (62.09 %)
      3,352,099       4,228,454       (876,355 )     (20.73 %)
Gross profit
                               
GMEH
    648,450       256,127       392,323       153.18 %
GCM
    762,391       829,461       (67,070 )     (8.09 %)
GCG
    49,655       57,745       (8,090 )     (14.01 %)
      1,460,496       1,143,333       317,163       27.74 %
General & administrative
    1,950,772       2,163,892       (213,120 )     (9.85 %)
Total operating expenses
    1,950,772       2,163,892       (213,120 )     (9.85 %)
Loss from operations
    (490,276 )     (1,020,559 )     530,283       51.96 %
Other income (expense)
    (44,211 )     (13,755 )     (30,456 )     (221.42 %)
Provision for taxation
    -       -       -       N/A  
   
Net (loss)/income from continuing operations
 
   
GMEH
  $ 114,358     $ (193,360 )   $ 307,718       159.14 %
GCM
    (51,730 )     (212,221 )     160,491       75.62 %
GCG
    (51,860 )     (68,251 )     16,391       24.02 %
Corporate
    (545,255 )     (560,482 )     15,227       2.72 %
    $ (534,487 )   $ (1,034,314 )   $ 499,827       48.32 %

Revenues

Revenues decreased by $559,192 to $4,812,595 for the year ended December 31, 2012 as compared to $5,371,787 for 2011. The decreases were mainly due to the decrease in revenue from GCM and GCG operations offset by the increases in revenue from GMEH operations.

Sales revenue of GMEH increased by $824,498 to $1,931,005for the year ended December 31, 2012 as compared to $1,106,507 for 2011, representing a 74.51% increase. The increase in revenue was mainly due to the increase of $638,839 by the artists’ performances in promotional events for brands and institutional customers, $164,480 by the artists’ performances in movies and TV shows and $21,179 by artist-related merchandising and shared profit of intellectual property rights.


Sales revenue of GCM decreased by $403,207 to $2,238,117 for the year ended December 31, 2012 as compared to$2,641,324 for 2011, representing a 15.27% decrease. The decrease in revenue was mainly due to the increase in electronic content sales by $107,213 offset by the decrease of traditional paper magazines sales by $510,420.

Sales revenue of GCG decreased by $980,483 to $643,473for the year ended December 31, 2012 as compared to$1,623,956 for 2011, representing a 60.38% decrease. The decrease in revenue was mainly due to the closure of a retail shop in May 2012.

Cost of sales

Cost of sales decreased by $876,355 to $3,352,099 for the year ended December 31, 2012 as compared to $4,228,454 for 2011. The increase was mainly due to the decreases in cost of sales from GCM and GCG operations offset by the increase in cost of sales from GMEH.

Cost of sales of GMEH increased by $432,175 to $1,282,555 for the year ended December 31, 2012as compared to $850,380 for 2011, representing a 50.82% increase. The increase was mainly due to the increase of artist fee by $388,143 and other direct cost by $86,160 offset by the decrease in the agency fee of $42,128.

Cost of sales of GCM decreased by $336,137 to $1,475,726 for the year ended December 31, 2012 as compared to$1,811,863 for 2011, representing an 18.55% decrease. The decrease was mainly due to the decrease of: 1.) paper cost by $91,861, 2.) printer cost by $79,425, 3.) distribution fee by $104,051 and 4.) other production costs by $60,800.

Cost of sales of GCG decreased by $972,393 to $593,818 for the year ended December 31, 2012 as compared to $1,566,211 for 2011, representing a 62.09% decrease. The decrease in cost of sales was mainly due to the closure of a retail shop in May 2012.

Gross margin

Gross margin increased by $317,163 to $1,460,496 for the year ended December 31, 2012 as compared to $1,143,333 for 2011. The increases were mainly due to increases of gross margin from GMEH operations offset by a decrease of gross margin from GCM and GCG operation.

Gross margin of GMEH increased by $392,323 to $648,450 for the year ended December 31, 2012 as compared to $256,127 for 2011, representing a 153.18% increase. The increase was mainly due to the decrease of the agency fee boost up the gross margin.

Gross margin of GCM decreased by $67,070 to $762,391 for the year ended December 31, 2012 as compared to $829,461 for 2011, representing a 8.09% decrease. The decrease was mainly due to the decrease in gross margin of traditional magazines by $174,283 offset by increase in margin from electronic content by $107,213.

Gross margin of GCG decreased by $8,090 to $49,655 for the year ended December 31, 2012 as compared to $57,745 for 2011, representing a 14.01% decrease. The decrease was mainly due to the closure of a retail shop in May 2012.

General and administrative

The following table summarizes general and administrative expenses during the year ended December 31, 2012 and 2011, and provides information regarding the dollar and percentage (increase) / decrease from the year ended December 31, 2011 to the year ended December 31, 2012.

   
2012
   
2011
   
(Increase) decrease
   
%Change
 
                         
Payroll cost
    1,191,846       1,306,870       115,024       8.80 %
Rental expenses
    268,112       395,725       127,613       32.25 %
Legal and professional fee
    330,998       321,742       (9,256 )     (2.88 %)
Entertainment
    17,801       17,227       (574 )     (3.33 %)
Miscellaneous
    142,015       122,328       (19,687 )     (16.09 %)
      1,950,772       2,163,892       213,120       9.85 %



Payroll cost decreased by $115,024 to $1,191,846 for the year ended December 31, 2012 as compared to $1,306,870 for 2011, representing an 8.80% decrease. The decrease was mainly due to an increases of payroll cost $65,956 in GMEH operation offset by the total decrease of payroll cost $ 180,980 in all other segments.

Rental expenses decreased by $127,613 to $268,112 for the year ended December 31, 2012 as compared to $395,725 for 2011, representing a 32.25% decrease. The decrease was mainly due to $147,430 rent reduced by GCM, $8,118 rent saved by GCG due to closure of retail shop in May 2012 offset by $27,935 rent raised by corporate segment.

Legal and professional fee increased by $9,256 to $330,998 for the year ended December 31, 2012 as compared to $321,742 for 2011, representing a 2.88% increase. The increase was mainly due to the cost of preparing Form S-1 filed on March 13, 2013.

Miscellaneous expenses increased by $19,687 to $142,015 for the year ended December 31, 2012 as compared to$122,328 for 2011, representing a 16.09% decrease. The increase was mainly due to the increase of $5,436 by GCM, $137 by GMEH and $15,350 by corporate segment offset by the decrease of $1,236 by GCG. The increase of $15,350 by corporate segment consist a sum of $11,013 in other receivable written off and an increase of $4,337 in other general expenses.

Net loss from continuing operations

Net loss from continuing operations decreased by $499,827 to a net loss of $534,487 for the year ended December 31, 2012 as compared to $1,034,314 for 2011.

Liquidity and Capital Resources

Cash

Our cash balance as of December 31, 2012 was $218,773, representing a decrease of $86,439 as compared to $305,212 as of December 31, 2011.

Cash flow

Operating Activities

Net cash used in operating activities for the year ended December 31, 2012 amounted to $18,507 compared to net cash provided by operating activities of $262,434 in the same period of 2011. The change of $243,925 was mainly due to: 1.) a decrease of $208,372 in share based payments, 2.) an increase of $51,386 in amortization of discount on Convertible note, and 3.) an increase of $12,682 in interest income receivable.

Financing Activities

Net cash used in financing activities for the year ended December 31, 2012 amounted to $67,932 compared to net cash provided by financing activities of $566,154 for 2011. The change of $634,086 was mainly due to: 1.) an increase in short term loan receivable $127,813, 2.) a decrease in advance from related parties $284,948, 3.) a decrease in cash repayment of convertible note $96,899, 4.) a decrease in net proceeds from short-term borrowings $154,151, 5.) an increase in net proceeds from the convertible note $7,300 and 6.) an increase in settlement of subscription receivable $22,425.

Working capital

Our net current liabilities increased by $72,371 to $523,573 as of December 31, 2012 from net current liabilities of $595,944 as of December 31, 2011.

As of December 31, 2012 we may need additional cash resources to operate during the upcoming 12 months, and the continuation of the Company may dependent upon the continuing financial support of investors, directors and/or stockholders of the Company. We intends to attempt to acquire additional operating capital through private equity offerings to the public and existing investors to fund its business plan. However, there is no assurance that equity or debt offerings will be successful in raising sufficient funds to assure the eventual profitability of the Company. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.



Off-Balance Sheet Arrangements

We do not have any off balance sheet arrangements
 
Inflation

Inflation has not had a material impact on our business and we do not expect inflation to have an impact on our business in the near future.

 
As a smaller reporting company, we are not required to include this information in our annual report on Form 10-K.


The response to this item is included in a separate section of this Annual Report. See “Index to Consolidated Financial Statements” on Page F-1.


On March 19, 2013, we dismissed Madsen & Associates CPA, Inc. as our independent registered public accounting firm, and appointed Albert Wong & Co, CPA, as disclosed on our Current Report on Form 8-K filed with the Securities and Exchange Commission on March 20, 2013. In connection with the change in accountants, there have been no disagreements as required by this item.

 
Evaluation of Disclosure Controls and Procedures
 
We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed by us in reports that we file under the Exchange Act is recorded, processed, summarized and reported as specified in the SEC’s rules and forms and that such information required to be disclosed by us in reports that we file under the Exchange Act is accumulated and communicated to our management, including our Chief Executive Officer and our Principal Accounting Officer, to allow timely decisions regarding required disclosure. Management, with the participation of our Chief Executive Officer, Chief Financial Officer, and Principal Accounting Officer, performed an evaluation of the effectiveness of our disclosure controls and procedures as of December 31, 2012. Based on that evaluation and as described below under “Management’s Report on Internal Control Over Financial Reporting”, we have identified a material weakness in our internal control over financial reporting. As a result of this material weakness and as a result of our failure to identify this material weakness in our internal control over financial reporting as a material weakness in our disclosure controls and procedures, our management, including our Chief Executive Officer, Chief Financial Officer, and Principal Accounting Officer, concluded that our disclosure controls and procedures were not effective as of December 31, 2012.

Management’s Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f).  Under the supervision and with the participation of our management, including our chief executive officer, chief financial officer, and principal accounting officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. In connection with management's assessment of our internal control over financial reporting, we identified the following material weakness in our internal control over financial reporting as of December 31, 2012:
 
 
 
 
 
1.
Insufficient accounting personnel with the appropriate level of accounting knowledge, experience and training in the application of accounting principles generally accepted in the United States commensurate with financial statement reporting requirements.
 
As a result, we have concluded that our internal controls over financial reporting are not effective as of December 31, 2012.
 
Remediation of Material Weakness in Internal Control

All internal control systems, no matter how well designed, have inherent limitations. Therefore, even those systems determined to be effective can only provide reasonable assurances with respect to financial statement preparation and presentation. In addition, any evaluation of effectiveness for future periods is subject to the risk that controls may become inadequate because of changes in conditions in the future.

This annual report does not include an attestation report of our registered public accounting firm regarding internal control over financial reporting.  Management’s report was not subject to attestation by our registered public accounting firm pursuant to temporary rules of the Securities and Exchange Commission that permit us to provide only management’s report in this annual report.

To remediate the material weakness surrounding this, we have performed and are continuing to perform, among others, the following actions:

additional training of our accounting personnel by our independent accountants of the proper format and compilation of data for US GAAP financial statements; and
additional coordination with our local accountants and auditors to strengthen our controls in an attempt to supplement the additional training of our employees.
 
Changes in Internal Control over Financial Reporting
 
There were no significant changes made in our internal controls over financial reporting during the year ended December 31, 2012 that have materially affected or are reasonably likely to materially affect these controls. Thus, no corrective actions with regard to significant deficiencies or material weaknesses were necessary.


None.




 


At December 31, 2012, our directors and executive officers are as follows:
 
Name
 
Age
 
Position
Yau Wai Hung
 
38
 
Chief Executive Officer (CEO) and Director
Kwong Kwan Yin Roy
 
37
 
Director
Chan Wing Hing
 
45
 
Director
Cheung Wai Kit*
 
38
 
Director
 
*Additional information about this individual can be found on the Company’s previous Form 10-K for the period ending December 31, 2011, which was filed with the SEC on April 16, 2012.

On January 14, 2013, Mr. Cheung Wai Kit resigned as a director of the Company and Ms. Yum Ka Yan was appointed as a director of the Company. On the same day, Mr. Yau Wai Hung resigned as the Company’s CEO and Mr. Kwong Kwan Yin Roy was appointed as CEO and Chief Financial Officer (CFO).

Our current directors and executive officers are as follows:

Name
 
Age
 
Position
Kwong Kwan Yin Roy
 
37
 
CEO, CFO and Director
Yau Wai Hung
 
38
 
Director
Chan Wing Hing
 
45
 
Director
Yum Ka Yan
 
34
 
Director

Mr. Kwong Kwan Yin Roy, age 37, received his education at Poly University Hong Kong. He joined Hong Kong Television Broadcasts Limited in 1997, where he was responsible for variety and music shows and became familiar with the operation of the electronic media. He joined Hong Kong Emperor Entertainment in 2000, where he was responsible for corporate promotion of music, film, and production. Mr. Kwong has experience in advertising, corporate matters and brand building. In 2004, he successfully formed an alliance between California Red Group (a karaoke operator) with NEWAY (a karaoke operator) and Emperor Group. During his experience at Emperor Group, Mr. Kwong organized a number of large-scale publicity projects including work for the top artist in Hong Kong and China. Mr. Kwong was appointed as CEO and CFO of the company since January 14, 2013.

Mr. Yau Wai Hung, age 38, received his education at St. Francis Xavier College in Hong Kong. Mr. Yau started working at Gaming Industrial in 1991 and later sold his retail company to a listed company in Hong Kong in 1997. Mr. Yau joined China Culture Limited in 2006 and successfully converted its magazine content into electronic form and into a major mobile and broadband operator in Hong Kong, Singapore, Taiwan and Macau. In 2010 Mr. Yau successfully coordinated with soccer stars Gary Neville and Van De Sar to provide exclusive World Cup expert analysis to the Hong Kong Jockey Club. Mr. Yau was appointed as CEO and director since January 28, 2011 and resigned as CEO on January 14, 2013.

Mr. Chan Wing Hing, age 45, finished his formal education in Hong Kong. Mr. Chan set up his first publishing company in 1997 and has established several magazines.  In 2002, he consolidated all of his magazines into China Culture Limited. Mr. Chan has extensive experience in the areas of publishing and distribution.

Ms. Yum Ka Yan, age 34, received her education at University of Hong Kong. Ms. Yum joined Edko Films Limited in 2005, where she was responsible for marketing and promotion of movies and cinema opening; she joined Emperor Motion Pictures in 2007, where she was promoted to Assistant Marketing Manager, which she responsible for marketing and promotion planning of movie productions. Ms. Yum has experience in advertising, marketing and publicity planning. She participated in marketing and publicity campaigns in various blockbuster titles: Lust, Caution (2007), Spider Man 3 (2007), Curse of Golden Flower (2006) and Brokeback Mountain (2005) etc. She joined the company in 2011 and appointed as director on January 14, 2013.



Corporate Governance

Number and Term of Directors

We currently have four directors of the Company. All directors of our company hold office until the next annual meeting of our shareholders and until such director’s successor is elected and has been qualified, or until such director’s earlier death, resignation or removal. The above table sets forth the names, positions and ages of our executive officers and directors. Our board of directors elects officers and their terms of office are at the discretion of our board of directors.

Audit Committee

We do not currently have an Audit Committee but plans to form one as soon as practicable.
 
Other Committees

None.
 
Code of Ethics

We have adopted a Code of Business Conduct and Ethics (the “Code”) that applies to our directors and employees, including our principal executive officer, principal financial officer, principal accounting officer and controller, or persons performing similar functions in accordance with applicable federal securities laws. The Code was filed as Exhibit 14 to our Registration Statement on Form SB-2 (Registration No. 333-139008) on November 29, 2006. ).
 
Changes in Director Nomination Process for Stockholders
 
None.

Beneficial Ownership Reporting Compliance
 
Section 16(a) of the Securities Exchange Act requires our directors, executive officer and persons who own more than 10% of our common stock to file reports of ownership and changes in ownership of our common stock with the Securities and Exchange Commission. Our directors, executive officer and persons who own more than 10% of our common stock are required by Securities and Exchange Commission regulations to furnish to us copies of all Section 16(a) forms they file. To our knowledge, based solely upon a review of the copies of such reports furnished to us, our directors, executive officer or persons who own more than 10% of our common stock were complied with the beneficial ownership reporting requirements of Section 16(a).





The following table sets forth all cash compensation paid or to be paid by us, as well as certain other compensation paid or accrued, during each of our last two fiscal years to each of the following named executive officers (the “Named Executive Officers”):
 
EXECUTIVE OFFICERS COMPENSATION


 
 
 
 
Name & Principal Position
 
 
 
 
 
Year
 
 
 
 
Salary
($)
 
 
 
 
Bonus
($)
 
 
 
Stock Awards
($)
 
 
 
Option
Awards
($)
 
 
Non-Equity
Incentive Plan Compensation
($)
Change in Pension value and Non-qualified
Compensation earning
($)
 
 
 
All other Compensation
($)
 
 
 
 
Total
($)
                   
Yau Wai Hung,
2012
63,587
0
0
0
0
0
0
63,587
Former CEO
2011
60,641
0
118,800
0
0
0
0
179,441
                   
Kwong Kwan Yin
2012
70,766
0
0
0
0
0
32,306
103,072
Roy, CEO
2011
64,872
0
0
0
0
0
0
64,872


Employment Agreements

None.

Equity Compensation Plans
 
We do not maintain any equity compensation plans and we have not granted any stock options or stock appreciation rights or any awards under long-term incentive plans.

Pension Benefits

We do not sponsor any qualified or non-qualified defined benefit plans.

Nonqualified Deferred Compensation

We do not maintain any non-qualified defined contribution or deferred compensation plans.

DIRECTOR COMPENSATION

The following table summarizes compensation that our director and former directors earned during 2012 for services as members of our Board.

Name
Fees Earned or Paid in Cash ($)
Options Awards ($)
All Other Compensation ($)
Total ($)
Yau Wai Hung
0
0
0
0
Kwong Kwan Yin Roy
0
0
0
0
Cheung Wai Kit
21,538
0
0
21,538
Chan Ka Wai
0
0
0
0
Chan Wing Hing
0
0
0
0
Yum Ka Yan
0
0
0
0

Item 12.  Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
 
The following table sets forth, as of March 15, 2013, certain information regarding beneficial ownership of our common stock by each person who is known by us to beneficially own more than 5% of our common stock. The table also identifies the stock ownership of each of our directors, our officer, and all directors and our officer as a group. Except as otherwise indicated, the stockholders listed in the table have sole voting and investment powers with respect to the shares indicated.
 
Shares of common stock which an individual or group has a right to acquire within 60 days pursuant to the exercise or conversion of options, warrants or other similar convertible or derivative securities are


deemed to be outstanding for the purpose of computing the percentage ownership of such individual or group, but are not deemed to be outstanding for the purpose of computing the percentage ownership of any other person shown in the table.

Name and Address of Beneficial Owner
Amount and
Nature of Beneficial
Ownership(1)
Percentage of
Outstanding
Common Stock(1)
Cheung Wai Kit, Former Director
0
0%
Chan Ka Wai, Former Director
0
0%
Chan Wing Hing, Director
0
0%
Kwong Kwan Yin Roy, Director and CEO
25,320,950
31.15%
Yum Ka Yan, Director
0
0%
Yau Wai Hung, Director and Former CEO
9,797,670
12.17%

(1)  
Based on 80,498,453outstanding shares of common stock on March 28, 2013.
(2)  
The business address for each of our officers and directors is Room 1902, 19/F., Kodak House II, 321 Java Road, North Point, Hong Kong.

Item 13.  Certain Relationships and Related Transactions, and Director Independence

There has not been since January 1, 2012, nor is there currently pending any transaction or series of similar transactions to which we were or are to be a party in which the amount involved exceeded $120,000 and in which any director, executive officer, holder of more than 5% of our Common Stock or any member of the immediate family of any of these persons had or will have a direct or indirect material interest other than the following:

On January 19, 2012, we entered into a subscription agreement with Chan Ka Wai (“Chan”), former director the Company purchased 28,500,000 shares of common stock from us (the “Shares”).  The purchase price of the shares was $ 519,200.  The Shares were acquired for long-term investment, and the transferability of the Shares is restricted.

On September 4, 2012, Chan entered into a Stock Purchase Agreement with two other directors of the Company, Kwong Kwan Yin Roy (“Kwong”) and Yau Wai Hung (“Yau”), pursuant to which Chan agreed to sell to Kwong, Yau and an non affiliate corporation a total of 18,555,400 restricted shares (the “Shares”) of the Company’s common stock at a total sum of $1,855,400 or $0.10 per share. Of the total number of the Shares sold, Kwong purchased 11,080,200 shares and Yau purchased 7,698,200 shares. On the same day, Kwong and Yau entered into a Stock Purchase Agreement with a group of individuals (“Shareholders”) pursuant to which Kwong and Yau agreed to purchase a total number of 24,137,890 restricted shares (“Shares”) from the shareholders at a total sum of $2,413,789 or $0.10 per share. Of the total number of Shares purchased, Kwong purchased 14,240,750 shares and Yau purchased 1,099,470 shares.

Director Independence
 
Our directors as of December 31, 2012, and currently, are not “independent directors” within the meaning of Rule 121(A) of the American Stock Exchange Company Guide and Rule 10A-3 promulgated under the Securities Act of 1934, as amended.

Item 14.  Principal Accountant Fees and Services

On March 19, 2013, we dismissed Madsen & Associates CPA, Inc. (“Madsen”) as our independent registered public accounting firm, and appointed Albert Wong & Co, CPA (“Wong”), as disclosed on our Current Report on Form 8-K filed with the Securities and Exchange Commission on March 19, 2013. The above decision was approved by our Board of Directors.  During our fiscal years ended December 31, 2011, 2012 and through March 28, 2013, we did not consult with both Wong and Madsen on (i) the application of accounting principles to a specified transaction, either completed or proposed, or the type of audit opinion that may be rendered on our financial statements, and they did not provide either a written report or oral advice to us that was an important factor considered by us in reaching a decision as to any accounting, auditing, or financial reporting issue; or (ii) the subject of any disagreement, as defined in Item 304 (a)(1)(iv) of Regulation S-K and the related instructions, or a reportable event within the meaning set forth in Item 304(a)(1)(v) of Regulation S-K.



We paid the following fees to its auditors during its fiscal years ended December 31, 2012 and 2011:

Fee Category
 
2012
 
2011
 
Audit fees – Madsen
 
-
 
$13,500
 
Audit fees –Wong
 
$13,000
 
-
 

Audit Fees
 
Audit fees consist of fees for professional services rendered for the audit of our financial statements and review of the final financial statements included in our annual reports on Form 10-K.
 
Audit Related Fees
 
We did not incur any audit-related fees with Madsen and Wong for the years ended December 31, 2012, and 2011.
 
Tax Fees
 
We did not incur any tax fees with Madsen and Wong for the years ended December 31, 2012 and 2011.
 
All Other Fees
 
We incurred $4,500 service fees each year from Madsen in 2012 and 2011 separately.
 
Pre-Approval of Services
 
The Board of Director’s policy is to pre-approve all audit and permissible non-audit services provided by the independent auditors. These services may include audit services, audit-related services, tax services and other services. The Board may also pre-approve particular services on a case-by-case basis.

Item 15.  Exhibits, Financial Statement Schedules

(a)(1) Financial Statements
 
An index to Consolidated Financial Statements appears on page F-1.
 
(b) Exhibits
 
The following Exhibits are filed as part of this report:
 
Exhibit No.
 
Description
31.1
 
Certification of the Principal Executive Officer pursuant to Rule 13-14(a) of the Securities Exchange of 1934
31.2
 
Certification of the Acting Principal Accounting Officer and Principal Financial Officer pursuant to Rule 13-14(a) of the Securities Exchange of 1934
32.1
 
Certificate of the Principal Executive Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2
 
Certificate of the Acting Principal Accounting Officer and Principal Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002




 
SIGNATURES
 
In accordance with the requirements of the Securities and Exchange Act of 1934, the Registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 
GREAT CHINA MANIA HOLDINGS, INC
     
March 28, 2013
By:
/s/ Kwong Kwan Yin Roy 
 
Name:
Kwong Kwan Yin Roy
 
Title:
Chief Executive Officer and Director
 
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.


March 28, 2013
By:
/s/ Kwong Kwan Yin Roy
   
Name:
Kwong Kwan Yin Roy
   
Title:
Chief Executive Officer and Director
       
 

March 28, 2013
By:
/s/ Kwong Kwan Yin Roy
   
Name:
Kwong Kwan Yin Roy
   
Title:
Chief Financial Officer and Director
       
 

 
 

 

 
CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 2012

INDEX






 
Hong Kong
 
 


REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We have audited the accompanying consolidated balance sheets of Great China Mania Holdings, Inc. and subsidiaries (the Company) as of December 31, 2012 and the consolidated statements of income, stockholders’ equity and comprehensive income and cash flows for the year then ended. These consolidated financial statements are the responsibility of the Company’s management.  Our responsibility is to express an opinion on these consolidated financial statements based on our audit.

We conducted our audit in accordance with standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
 
We were not engaged to examine management’s assertion about the effectiveness of the Company’s internal control over financial reporting as of December 31, 2012 included in the Company’s Item 9A “Controls and Procedures” in the Annual Report on Form 10-K and, accordingly, we do not express an opinion thereon.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Company as of December 31, 2012 and the results of its operations and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America.

The accompanying consolidated financial statements have been prepared assuming that the Company will continue as a going concern. As discussed in Note 17 to the consolidated financial statements, the Company has suffered recurring losses from operations and has a significant accumulated deficit. In addition, the Company continues to experience negative cash flows from operations. These factors raise substantial doubt about the Company's ability to continue as a going concern. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

s/Albert Wong & Co. CPA
Albert Wong & Co. CPA
March 27, 2013
Hong Kong, China



To the Board of Directors and Shareholders of Great China Mania Holdings, Inc. and subsidiaries
Hong Kong
 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We have audited the accompanying consolidated balance sheets of Great China Mania Holdings, Inc. and subsidiaries (the Company) as of December 31, 2011 and the consolidated statements of income, stockholders’ equity and comprehensive income and cash flows for each of the years in the two year period ended December 31, 2011.  These consolidated financial statements are the responsibility of the Company’s management.  Our responsibility is to express an opinion on these consolidated financial statements based on our audit.

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

In our opinion, these consolidated financial statements referred to above present fairly, in all material aspects, the consolidated financial position of the Company as of December 31, 2011, and the consolidated results of its operations and cash flows for each of the years in the year period ended December 31, 2011 in conformity with accounting principles generally accepted in the United States of America.

The Company has restated its financial statements to correct an accounting error resulting from the sale of business assets.  The effects of this restatement is discussed in note 16 to the financial statements.

The accompanying financial statements have been prepared assuming that the Company will continue as a going concern.  The Company does not have the necessary working capital to service its debt and for its planned activity, which raises substantial doubt about its ability to continue as a going concern.  Management’s plans in regard to these matters are described in the notes to the financial statements.  These financial statements do not include any adjustments that might result from the outcome of this uncertainty.



 
s/Madsen& Associates CPA’s, Inc.
Madsen & Associates CPA’s, Inc.
April 16, 2012
Salt Lake City, Utah

 



CONSOLIDATED BALANCE SHEETS
December 31, 2012

   
2012
   
2011
 
ASSETS
           
CURRENT ASSETS
           
Cash and cash equivalents
  $ 218,773       305,212  
Accounts receivable
    353,122       396,295  
Inventories
    10,438       52,570  
Short term loan receivable
    140,495       -  
Deposits, prepaid expenses and other receivables
    165,932       175,123  
Total current assets
    888,760       929,200  
                 
TOTAL ASSETS
  $ 888,760     $ 929,200  
                 
LIABILITIES AND EQUITY
               
LIABILITIES
               
CURRENT LIABILITIES
               
Accounts payable
  $ 997,911     $ 792,482  
Accrued expenses and other payables
    84,720       145,151  
Unearned revenue
    27,691       20,588  
Amount due to a director
    -       2,051  
Short-term borrowings
    63,656       275,775  
Amount due to related parties
    38,128       160,897  
Convertible notes
    168,926       -  
Total current liabilities
    1,381,032       1,396,944  
                 
LONG-TERM LIABILITIES
               
Convertible note
    31,301       128,200  
      31,301       128,200  
                 
TOTAL LIABILITIES
  $ 1,412,333     $ 1,525,144  
                 
SHAREHOLDERS’ EQUITY
               
Common stock, Par value $0.01; 375,000,000 shares authorized; 78,876,021and 28,366,000 shares issued and outstanding as of December 31, 2012and 2011, respectively
  $ 788,761     $ 283,660  
Additional paid in capital
    7,640,618       7,042,086  
Accumulated deficits
    (8,457,669 )     (7,923,182 )
Accumulated other comprehensive income
    1,492       1,492  
Less: Subscription receivable
    (496,775 )     -  
                 
TOTALSHAREHOLDERS’ EQUITY
  $ (523,573 )   $ (595,944 )
                 
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  $ 888,760     $ 929,200  

See accompanying notes to consolidated financial statements

 


CONSOLIDATED STATEMENTS OF OPERATIONS
Year ended December 31, 2012

   
2012
   
2011
 
CONTINUING OPERATIONS
           
             
REVENUES
  $ 4,812,595     $ 5,371,787  
                 
COST OF SALES
    3,352,099       4,228,454  
                 
GROSS PROFIT
    1,460,496       1,143,333  
                 
EXPENSES
               
General and administrative expenses
    1,950,772       2,163,892  
      1,950,772       2,163,892  
                 
LOSS FROM CONTINUING OPERATIONS
    (490,276 )     (1,020,559 )
                 
OTHER INCOME/(EXPENSE)
               
Interest income
    12,682       -  
Interest expenses
    (54,116 )     -  
Other income
    22,350       13,342  
Other expenses
    (25,127 )     (27,097 )
      (44,211 )     (13,755 )
NET LOSS BEFORE PROVISION FOR INCOME TAXES
    (534,487 )     (1,034,314 )
                 
PROVISION FOR INCOME TAXES
    -       -  
                 
NET LOSS FROM CONTINUING OPERATIONS
  $ (534,487 )   $ (1,034,314 )
                 
DISCONTINUED OPERATIONS
               
Net loss from discontinued operations
    -       (80,233 )
Gain on disposal of discontinued operations
    -       958,855  
NET INCOME FROM DISCONTINUED OPERATIONS
    -       878,622  
                 
NETLOSS FOR THE YEAR
  $ (534,487 )   $ (155,692 )
                 
OTHER COMPREHENSIVE INCOME
               
Gain on foreign exchange translation
               
- Arising from continuing operations
    -       1,492  
- Arising from discontinued operations
    -       1,246  
      -       2,738  
                 
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR
 
- Arising from continuing operations
    (534,487 )     (1,032,822 )
- Arising from discontinued operations
    -       879,868  
    $ (534,487 )   $ (152,954 )
BASIC (LOSS)/EARNINGS PER SHARE–
               
- Arising from continuing operations
    (0.01 )     (0.04 )
- Arising from discontinued operations
    -       0.03  
    $ (0.01 )   $ (0.01 )
DILUTED (LOSS)/EARNINGS PER SHARE
               
- Arising from continuing operations
    (0.01 )     (0.04 )
- Arising from discontinued operations
    -       0.03  
    $ (0.01 )   $ (0.01 )
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING
               
Basic
    68,853,432       24,943,587  
Diluted
    68,853,432       24,943,587  

See accompanying notes to consolidated financial statements


CONSOLIDATED STATEMENTS OF STOCKHOLDER’S DEFICIT
Year ended December 31, 2012

                                     
   
Common Stock
   
Additional
paid in
capital
   
(Accumulated deficits)/ retained earnings
   
Accumulated other comprehensive income
   
Subscription receivable
   
Total
equity
 
 
Number
of shares
   
Amount
 
Balance at January 1, 2011
    9,202,000       92,020       5,406,259       (7,767,490 )     (1,246 )     -       (2,270,457 )
                                                         
Comprehensive loss from continuing operations
 
- Net loss for the year
    -       -       -       (1,034,314 )     -       -       (1,034,314 )
- Foreign currency translation adjustments
    -       -       -       -       1,492       -       1,492  
      -       -       -       (1,034,314 )     1,492       -       (1,032,822 )
                                                         
Comprehensive loss from discontinued operations
 
- Net loss for the year
    -       -       -       (80,233 )     -       -       (80,233 )
- Foreign currency translation adjustments
    -       -       -       -       1,246       -       1,246  
- Gain on disposal
    -       -       -       958,855       -       -       958,855  
      -       -       -       878,622       1,246       -       879,868  
                                                         
Share-based payment
    3,690,000       36,900       401,472       -       -       -       438,372  
Conversion of debt to shares
    15,474,000       154,740       1,234,355       -       -       -       1,389,095  
                                                         
Balance at December 31, 2011 and January 1, 2012
    28,366,000       283,660       7,042,086       (7,923,182 )     1,492       -       (595,944 )
                                                         
Comprehensive loss from continuing operations
 
Net loss for the year
    -       -       -       (534,487 )     -       -       (534,487 )
      -       -       -       (534,487 )     -       -       (534,487 )
                                                         
Share-based payment
    2,300,000       23,000       207,000       -       -       -       230,000  
Settlement of debt to shares
    19,195,000       191,950       141,793       -       -       -       333,743  
Settlement of convertible note to shares
    515,021       5,151       15,539       -       -       -       20,690  
Issue of shares
    28,500,000       285,000       234,200       -       -       (496,775 )     22,425  
                                                         
Balance at December 31, 2012
    78,876,021       788,761       7,640,618       (8,457,669 )     1,492       (496,775 )     (523,573 )

See accompanying notes to consolidated financial statements


CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended December 31, 2012
   
2012
   
2011
 
Cash flows from operating activities
           
Net loss continuing operating activities
  $ (534,487 )   $ (1,034,314 )
Adjustments to reconcile net income to net cash flows used in operating activities for:
 
Amortization of discount on Convertible Notes
    51,386       -  
Accrued interest expense on Convertible Notes
    2,730       -  
Interest income receivable
    (12,682 )     -  
Share-based payments
    230,000       438,372  
Changes in operating assets and liabilities:
               
Decrease/(increase) in accounts receivable
    43,173       (396,295 )
Decrease/(increase) in inventories
    42,132       (52,570 )
Decrease/(increase) in prepaid expenses
    9,191       (175,123 )
(Decrease)/increase in amount due to a director
    (2,051 )     2,051  
Increase in receipt in advance
    7,103       20,588  
Increase in accounts payable
    205,429       792,482  
(Decrease)/increase in accrued expenses and other payables
    (60,431 )     142,375  
Net cash used in continuing operating activities
    (18,507 )     (262,434 )
Net cash used in discontinued operating activities
    -       (144,522 )
Net cash used in operating activities
    (18,507 )     (406,956 )
Cash flows from investing activities
               
Cash flows from continuing investing activities
    -       -  
Net cash used in discontinued investing activities
    -       (31,465 )
Net cash used in investing activities
    -       (31,465 )
Cash flows from financing activities
               
Cash flows from continuing financing activities
               
Issue of convertible note
    135,500       128,200  
Repayment of convertible note
    (96,899 )     -  
Decrease in subscription receivable
    22,425       -  
Proceeds from short-term borrowings
    121,624       275,775  
Advance to short term loan receivable
    (127,813 )     -  
Decrease /(increase)in amount due to related parties
    (122,769 )     162,179  
Net cash (used in)/provided by continuing financing activities
    (67,932 )     566,154  
Net cash provided by discontinued financing activities
    -       116,483  
Net cash (used in)/provided by financing activities
    (67,932 )     682,637  
                 
Net (decrease)/increase in cash and cash equivalents
               
- Continuing operations
    (86,439 )     303,720  
- Discontinued operations
    -       (59,504 )
      (86,439 )     244,216  
Effect of foreign exchange rate changes on cash and cash equivalents
               
- Continuing operations
    -       1,492  
- Discontinued operations
    -       2,769  
      -       4,261  
Cash and cash equivalents at beginning of year
               
- Continuing operations
    305,212       -  
- Discontinued operations
    -       56,735  
      305,212       56,735  
Cash and cash equivalents at end of year
               
- Continuing operations
    218,773       305,212  
- Discontinued operations
    -       -  
    $ 218,773     $ 305,212  
Non-cash financing activities
               
- Issue of shares unpaid
  $ 496,775     $ -  
- Conversion of note to shares
    20,690       -  
- Conversion of debt to shares
    333,743       1,389,095  
See accompanying notes to consolidated financial statements



Notes to Consolidated Financial Statements
December 31, 2012

NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES

Great China Mania Holdings, Inc. (“GMEC” or the “Company”) was incorporated in Florida on July 8, 1983. In February 2011, three new subsidiaries of the Company were formed and have since maintained operations. These subsidiaries are GME Holdings Limited, Great China Games Limited and Great China Media Limited. In June 2011, another new subsidiary GMEC Ventures Limited, a Hong Kong company, was formed and maintained for holding future investment if any. As of the date of this filing, our corporate structure is as follows:

GMEC owns two wholly-owned BVI subsidiary known as Sharp Achieve Holdings Limited (“Sharp Achieve”) and Super China Global Limited (SCGL). SCGL has two subsidiaries: 1) GME Holdings Limited (“GMEH”) which was incorporated February 18, 2011 and specialized in artiste and project management services; and 2) GMEC Ventures Limited (“GMEV”) was incorporated June 1, 2011and specialized in investment holding. Sharp Achieve has two subsidiaries: 1) Great China Media Limited (“GCM”) which was incorporated February 1, 2011 and specialized in publication of magazines; 2) Great China Games Limited (“GCG”) which was incorporated February 1, 2011and specialized in retail operation of video games and accessories

On March 16, 2011, the Company amended its Articles of Incorporation and changed the name of the Company from “Great East Bottles & Drinks (China) Holdings, Inc.” to “Great China Mania Holdings, Inc.”

On March 31, 2011, the Company disposed of Water Scientific.

In November, 2012, Sharp Achieve obtained the direct ownership of GCM and GCG by disposing the direct ownership of SCGL to GMEC. This restructuring transaction did not affect the company control of all fellow subsidiaries


NOTE 2 – PRINCIPLES OF CONSOLIDATION

The accompanying consolidated financial statements include the accounts of the Company and the Company’s subsidiaries. The consolidated financial statements are prepared in accordance with generally accepted accounting principles used in the United States of America, and all significant intercompany balances and transactions have been eliminated.

The functional currency for the majority of the Company’s continuing and discontinued operations is the Hong Kong Dollar (“HKD”), while the reporting currency is the US Dollar.




NOTE 3– SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a)  Economic and political risk

The Company’s continuing operations and discontinued operations are conducted in Hong Kong. Accordingly, the political, economic, and legal environments in the Hong Kong may influence the Company’s business, financial condition, and results of operations.

The Company’s major operations in the Hong Kong are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.

(b)  Cash and cash equivalents

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.  The Company’s continued operations maintain bank accounts in Hong Kong. The Company’s discontinued operations maintain bank accounts in Hong Kong and China.

(c)  Inventory

Inventories consisting of raw materials and finished goods are stated at the lower of cost or net realizable value. Inventory costs are calculated using a first in first out (FIFO) method of accounting.

(d) Income tax

Income taxes are based on pre-tax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. The Company periodically assesses the need to establish valuation allowances against its deferred tax assets to the extent the Company no longer believes it is more likely than not that the tax assets will be fully utilized.
 
The Company evaluates a tax position to determine whether it is more likely than not that the tax position will be sustained upon examination, based upon the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is subject to a measurement assessment to determine the amount of benefit to recognize and the appropriate reserve to establish, if any. If a tax position does not meet the more-likely-than-not recognition threshold, no benefit is recognized

In accordance with the relevant tax laws and regulations of Hong Kong, the applicable corporation income tax rate was 16.5% on assessable profits, if any, for the years ended December 31, 2012 and 2011, respectively.

(e) Fair value of financial instruments

The Company’s financial instruments primarily consist of cash and cash equivalents, amount due from a related company, prepaid expenses and accounts receivables, other receivables, accounts payable, accrued expenses and other payables, unearned revenue, short term borrowings, convertible note and amount due to related parties.

The estimated fair value amounts have been determined by the Company, using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.

As of the year-end dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented, due to the short maturities of these instruments and the fact that the interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profiles at respective year ends.

(f) Revenue recognition


Revenue represents the invoiced value of goods sold or services rendered during the year, net of sales discounts and returns. Generally revenue is recognized when all of the following criteria are met:

-
Persuasive evidence of an arrangement exists,
-
Delivery has occurred or services have been rendered,
-
The seller’s price to the buyer is fixed or determinable, and
-
Collectability is reasonably assured

Revenue recognition policies for each of the major products and services of continuing operations are illustrated as follows:
 
 
(i)
Revenue from provision of artist management, event management, and promotion for its clients is recognized when services are rendered.
 
(ii)
Revenue from traditional paper magazines sales is recognized when magazines are sold to customers, net of sales return.
 
(iii)
Revenue from the provision of advertising services is recognized when services are rendered.
 
(iv)
Revenue from electronic content sales like iPhone and Android applications is recognized when receipt is confirmed by service providers. In 2012, the revenue generated from digital content is not significant to the publication of magazines operation.
 
(v)
Revenue from retail of video games and accessories is recognized upon delivery of goods to customers.

For discontinued ecological products operations, bottles productions and OEM bottled water operations, revenue is recognized when delivery has occurred.

(g)  Earnings per share

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. For the years ended December 31, 2012, there are a total of 1,622,432 shares of common stock included in the calculation of diluted weighted average number of shares outstanding. They are not included in the calculation of diluted (loss) / earnings per share because they are considered anti dilutive when computing diluted (loss) / earnings per share.

(h) Use of estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Actual results may differ from those estimates.

(i) Comprehensive income

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements.  Comprehensive income includes net income and the foreign currency translation gain, net of tax.

(j) Foreign currency translation

The accompanying consolidated financial statements are presented in United States Dollars (US$). The functional currency of the Company is the Hong Kong Dollar (HK$). Capital accounts of the consolidated financial statements are translated into United States dollars from HK$ at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the year.  The translation rates are as follows:
 
   
December 31, 2012
   
December 31, 2011
 
             
Year end HK$ : US$ exchange rate
    0.1282       0.1282  
Average period/yearly HK$ : US$ exchange rate
    0.1282       0.1282  

 
 
(k) Stock-based compensation

The Company recognizes compensation expense for all stock-based payment awards made to employees, contractors and non-employee directors. Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period.

During the year ended December 31, 2012, the Company issued 2,300,000 shares in aggregate for services rendered to the Company. The fair value of $230,000, which is determined with refer to closing stock price on the dates of issue, was charged to operation as general and administrative expenses for the year then ended.

During the year ended December 31, 2011, the Company issued 3,690,000 shares in aggregate for employee’s compensation and services rendered to the Company. The fair value of $438,372 is determined with refer to the closing stock price on the date of issue.

(l) Recent accounting pronouncements

In December 2011, the Financial Accounting Standards Board ("FASB") issued ASU 2011-11, Balance Sheet (Topic 210) Disclosures about Offsetting Assets and Liabilities. The amendments in this update will enhance disclosures required by U.S. GAAP by requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with either ASC 210-20-45 or ASC 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either ASC 210-20-45 or ASC 815-10-45. This information will enable users of an entity's financial statements to evaluate the effect or potential effect of netting arrangements on an entity's financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this Update. The amendments in this Update are effective for annual periods for fiscal years beginning on or after January 1, 2013. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In December 2011, the FASB has issued Accounting Standards Update (ASU) No.2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU No. 2011-11 is intended to supersede certain pending paragraphs in Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, to effectively defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. The amendments will be temporary to allow the Board time to redeliberate the presentation requirements for reclassifications out of accumulated other comprehensive income for annual and interim financial statements for public, private, and non-profit entities. All other requirements in ASU No. 2011-05 are not affected by ASU No. 2011-12, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. Nonpublic entities should begin applying these requirements for fiscal years ending after December 15, 2012, and interim and annual periods thereafter. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In August 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-03, Technical Amendments and Corrections to SEC Sections. This ASU amends various SEC paragraphs pursuant to SAB 114, SEC Release No. 33-9250, and ASU 2010-22, which amend or rescind portions of certain SAB Topics. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-04, Technical Corrections and Improvements. This ASU make technical corrections, clarifications, and limited-scope improvements to various Topics throughout the Codification. The amendments in this ASU that will not have transition guidance will be effective upon issuance for both public entities and nonpublic entities. For public entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. For nonpublic entities, the amendments that are subject to the


transition guidance will be effective for fiscal periods beginning after December 15, 2013.The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

NOTE 4 – INVENTORIES

Inventories as of the year-end dates are summarized as follows:
   
2012
   
2011
 
Raw materials
  $ 6,795     $ 7,109  
Trading inventories
    3,643       45,461  
Total
  $ 10,438     $ 52,570  

The raw materials represent the paper used in publication of magazines and the trading inventories represent video games and accessories used in retail operation.

NOTE 5 – SHORT TERM LOAN RECEIVABLE

During the year, the Company granted a short term loan amount of $140,495 to a third party company at 6% interest per annum with no fixed payment terms. Interest income in conjunction with this short term loan for the year ended December 31, 2012 and 2011 was $12,682 and $0, respectively.

NOTE 6 –DEPOSITS, PREPAID EXPENSES AND OTHER RECEIVABLES

Deposits, prepaid expenses and other receivables consist of payments and deposits made by the Company to third parties in the normal course of business operations with no interest and no fixed repayment terms. These payments are made for the purchase of services that are used by the Company for its current operations.

The Company evaluates the amounts recorded as prepaid expenses on a periodic basis and records a charge to the current operations of the Company when the related expense has been incurred.

NOTE 7 – ACCRUED EXPENSES AND OTHER PAYABLES

As of the year-end dates, the Company’s accrued expenses and other payables are summarized as follows:
   
2012
   
2011
 
             
Accrued expenses
  $ 84,720     $ 144,813  
Other payables
    -       338  
    $ 84,720     $ 145,151  

NOTE 8 – AMOUNT DUE TO A DIRECTOR

As of the year-end dates, the Company’s current account due to the director is summarized as follows:
   
2012
   
2011
 
             
Mr. Yau Wai Hung
  $ -     $ 2,051  

The amount due to Mr. Yau Wai Hung represents temporary advances from the director for the Company’s working capital. The balance is unsecured, interest free, and has no fixed terms of repayment. During the year, Mr. Yau was the Chief Executive Officer and director of the Company.

NOTE 9 – SHORT-TERM BORROWINGS

The short-term borrowings are unsecured, interest free advances from three non affiliate individuals with no fixed repayment term. During the year, those individuals converted a portion of the short term borrowings of $333,743 into 19,195,000 shares of Company’s common stock.
 

 
 
 
NOTE 10 – AMOUNT DUE TO RELATED PARTIES

As of the year-end dates, the Company’s current accounts with related companies are summarized as follows:
   
2012
   
2011
 
             
China Culture Limited (CCL)
  $ 38,128     $ 109,583  
Global Mania Empire Management Limited (GME)
    -       51,314  
                 
Total amount due to related parties
  $ 38,128     $ 160,897  
                 

The amount due to CCL is a temporary advance to the Company for working capital purposes. The balance is unsecured, interest free and has no fixed repayment term. CCL is 100% owned by one of the Company’s directors.

The amount due to GME is a temporary advance to the Company for working capital purposes. The balance is unsecured, interest free and has no fixed repayment.

NOTE 11 –CONVERTIBLE NOTES

On June 1, 2011, the Company issued a non-interest bearing convertible note in the amount of $256,400 ( “Note 1”) to a third party note holder (“Holder 1”),which matures on May 31, 2016. On September 30, 2011, the first installment of $128,200 was received. Note 1 bears a call back option exercisable by Holder 1 on the unused portion of Note 1 after 12 months from the date of Note 1. Note 1 can be converted into common stock of the Company by Holder 1 under certain conditions. During the year, a total of $96,899 was repaid by the Company. As of December 31, 2012, Note 1 did not qualify to be converted under those conditions and is therefore not dilutive.

On May 31, 2012, the Company issued an 8% convertible note in the amount of $50,000 (“Note 2”) to another third party note holder (“Holder 2”), which matures on March 4, 2013 and had been fully received on June 20, 2012. The outstanding principal balance plus any accrued interest under Note 2 is convertible into common stock of the Company after 180 days from the date of issued with a 42% discount over the convertible price upon the option of Holder 2. The conversion price is determined by the average of the lowest 3 closing bid prices out of the 10 days prior to the Conversion Date. The Company has recorded a debt discount in the amount of $37,655 as the value of the beneficial conversion feature at the date the company entered into the note agreement. The discount is being amortized using the effective interest method over the life of Note 2. The total interest expense relative to Note 2 was $39,655 which consists of accrued interest expenses of $2,000 and amortization of the debt discount of $37,655 for the year ended December 31, 2012. On December 20, 2012, part of the note of $12,000 was converted into 515,021 shares of common stock by the holder. The gross outstanding balance Note 2 at December 31, 2012 was $ 68,965 after deducting the partial settlement of $20,690 by shares. As of December 31, 2012, Note 2 qualified to be converted 1,622,432 shares of common stock under the conditions of Note 2 and is therefore dilutive.

On October 22, 2012and December 12, 2012, the Company issued two 8% convertible note in the amount of $32,500 (“Note 3”) and $53,000 (“Note 4”) to Holder 2, respectively. Note 3 matures on July24, 2013 and was fully received on November 7, 2012. The Note 4 matures on September 14, 2013 and was fully received on December 27, 2012.The outstanding principal balance plus any accrued interest under both Note 3and Note 4 are convertible into common stock of the Company after 180 days from the date of issued with a 42% discount over the convertible price upon the option of Holder 2. The conversion price is determined by the average of the lowest 3 closing bid prices out of the 10 days prior to the Conversion Date. The Company has recorded debt discount in the amount of $ 24,476 and $39,914 for Note 3 and Note 4 respectively as the value of the beneficial conversion feature at the date the Company entered into the note agreement. The discount is being amortized using the effective interest method over the life of Note 3 and 4 separately. The total interest expense relative to Note 3 was $10,024 which consists of interest expenses of $506 and amortization of the debt discount of $9,518 for the year ended December 31, 2012. The total interest expense relative to Note 4 was $4,437 which consists of interest expenses of $224 and amortization of the debt discount of $4,213 for the year ended December 31, 2012.The gross outstanding balance Note 3 and 4 at December 31, 2012 was $42,524 and $57,437 separately. As of December 31, 2012, both Note 3and Note 4 did not qualify to be converted under the conditions of those notes and are therefore not dilutive.

The convertible notes as of the year-end dates are summarized as follows:
 
 

 
   
2012
   
2011
 
Noncurrent liabilities:
           
Non-interest bearing convertible note
  $ 31,301     $ 128,200  
                 
Current liabilities:
               
8% convertible note 2, net (including fair value adjustment on option $ 37,655, accrued interest expense $2,000,andsettlement by shares totaling of $20,690)
    68,965       -  
8% convertible note 3, net (including fair value adjustment on option $ 24,476, accrued interest expense $506, net of unamortized discount $14,958)
    42,524       -  
8% convertible note 4, net (including fair value adjustment on option $ 39,914, accrued interest expense $224, net of unamortized discount $35,701)
    57,437       -  
      168,926       -  
                 
Total convertible note outstanding
  $ 200,227     $ 128,200  
                 
 
NOTE 12–WEIGHTED AVERAGE NUMBER OF SHARES FOR EARNINGS PER SHARE CALCULATION

On January 19, 2012, the Company entered into a stock subscription agreement and issued 28,500,000 shares of common stock to a shareholder, who is an affiliate of the Company, for a consideration of $519,200. During the year, the major shareholder paid $22,425 and the remaining balance of $496,775 has been reported as a Subscription Receivable in the financial statements of the Company.

On January 26, 2012 the Company issued 9,410,000 shares of common stock to three non affiliate individuals for settlement of short term borrowings totaling $149,450.

On March 20, 2012 the Company issued 3,400,000 shares of common stock to one non affiliate individual for settlement of short term borrowings totaling $56,593.

On August 14, 2012 the Company issued 2,105,000 shares of common stock to one non affiliate individual for settlement of short term borrowings totaling $42,100.

On August 17 2012, we issued to a consultant 50,000 shares of our common stock in exchange for professional services rendered. Based on the share price of $0.10 per share on the grant date, the fair value of these issued shares is $5,000.

On August 24, 2012, we issued to two consultants 2,250,000 shares of our common stock in exchange for professional services rendered. Based on the share price of $0.10 per share on the grant date, the fair value of these issued shares is $225,000.

On December 5, 2012 the Company issued 4,280,000 shares of common stock to two non affiliate individuals for settlement of short term borrowings totaling $85,600.

On December 20, 2012 the Company issued 515,021 shares of common stock to a convertible note holder for partial settlement of a convertible note totaling $12,000.

The calculation of weighted average number of shares for the year ended December 31, 2012 is illustrated as follows:
   
2012
 
   
Number
of shares
   
Weighted average
number of shares
 
             
At January 1, 2012
    28,366,000       28,366,000  
Shares issued on January 19, 2012 for debt conversion
    28,500,000       27,098,361  
Shares issued on January 26, 2012 for debt conversion
    9,410,000       8,767,240  
Shares issued on March 20, 2012 for debt conversion
    3,400,000       2,666,120  
Shares issued on August 14, 2012 for debt conversion
    2,105,000       805,191  
Shares issued on August 17,2012 for share based payment
    50,000       18,716  
Shares issued on August 24 ,2012 for share based payment
    2,250,000       799,180  
Shares issued on December 5, 2012 for debt conversion
    4,280,000       315,738  
Shares issued on December 20, 2012 for debt conversion
    515,021       16,886  
                 
At December 31, 2012
    78,876,021       68,853,432  
                 



NOTE 13 – INTEREST EXPENSES

Interest expenses for the year ended December 31 2012 and 2011 are summarized as follows:

   
2012
   
2011
 
             
Amortization on discount of convertible note
  $ 51,386     $ -  
Accrued interest on convertible note
    2,730       -  
Total
  $ 54,116     $ -  

NOTE 14– RELATED PARTY TRANSACTION

In addition to the transactions detailed elsewhere in these financial statements, the Company and its subsidiaries entered into the following material transactions with the related parties for the year ended December 31, 2012:
 
   
2012
   
2011
 
From continuing operations
           
China Culture Limited
           
Rental charges paid by Company for offices premises
  $ 92,305     $ 247,745  
                 
 
China Culture Limited is a related party as it is a company owned by Mr. Chan Wing Hing, a Company director appointed during the year.

In the opinion of directors, the above transaction was entered into by the company in the normal course of business.

NOTE 15– CONTINGENCIES AND COMMITMENTS

As of December 31, 2012, the expected annual lease payments under operating leases are as follows:
       
For the year ending December 31,
     
2013
    90,338  
2014
    46,088  
Total
    136,426  

NOTE 16 – SEGMENT REPORTING

The Company’s reportable segments of business include artist and project management services, publication of magazines and retail of video games and accessories.  Each of these segments is conducted in a separate corporation and each functions independently of the others. The Company has no sales between segments.

Financial information of the Company’s business segments is as follows:
   
2012
   
2011
 
Revenues from:
           
Continuing operations
           
Artist and project management services
  $ 1,931,005     $ 1,106,507  
Publication of magazines
    2,238,117       2,641,324  
Retail of video games and accessories
    643,473       1,623,956  
Corporate
    -       -  
    $ 4,812,595     $ 5,371,787  
Discontinued operations
    -       -  
    $ 4,812,595     $ 5,371,787  
                 
Segment profit/(loss) from:
               
Artist and project management services
    131,024       (193,360 )
Publication of magazines
    (51,730 )     (212,221 )
Retail of video games and accessories
  $ (51,860 )   $ (68,251 )
Corporate
    (561,921 )     (560,482 )
    $ (534,487 )   $ (1,034,314 )
Discontinued operations
    -       878,622  
    $ (534,487 )   $ (155,692 )
                 
 
 
 
Segment result of discontinued operations in 2011 represents a gain of $958,855 on disposal of Water Scientific and net loss of $80,233 generated from Water Scientific up to March 31, 2011.

Segment assets:
 
2012
   
2011
 
             
Artist and project management services
  $ 582,568     $ 291,861  
Publication of magazines
    184,859       482,882  
Retail of video games and accessories
    42,422       121,772  
Corporate
    78,911       32,685  
    $ 888,760     $ 929,200  
Discontinued operations
    -       -  
    $ 888,760     $ 929,200  

NOTE 17- GOING CONCERN

As of December 31, 2012, the Company has accumulated deficits of $8,457,669, a negative working capital of $492,272, and also recorded a net loss from the continuing operations of $534,487 for the year then ended.
 
As of December 31, 2012 the Company may need additional cash resources to operate during the upcoming 12 months, and the continuation of the Company may dependent upon the continuing financial support of investors, directors and/or stockholders of the Company. The Company intends to attempt to acquire additional operating capital through private equity offerings to the public and existing investors to fund its business plan. However, there is no assurance that equity or debt offerings will be successful in raising sufficient funds to assure the eventual profitability of the Company. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

NOTE 18– SUBSEQUENT EVENTS

On January 14, 2013 Mr. Cheung Wai Kit resigned as a director of the Company and Ms. Yum Ka Yan was appointed as a director of the Company. On that same day, Mr. Yau Wai Hung resigned as the Company’s Chief Executive Officer and Mr. Kwong Kwan Yin Roy was appointed as Chief Executive Officer and Chief Financial Officer.

During the period from January 2, 2013 to January 18, 2013, we issued a total of 1,622,432 shares common stock for final settlement of a convertible note totaling $40,000.

We are offering to sell up to 10,600,000 shares of common stock issuable to one non affiliate investor as disclosed on our Form S-1 filed with the Securities and Exchange Commission on March 13, 2013.

 
F-16

 

EX-31.1 2 ex311.htm EXHIBIT 31.1 ex311.htm
Exhibit 31.1
 
CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER OF GREAT CHINA MANIA HOLDINGS
PURSUANT TO§ 302 OF THE SARBANES-OXLEY ACT OF 2002
 
I, Kwong Kwan Yin Roy, certify that:
 
1.  I have reviewed this annual report on Form 10-K of Great China Mania Holdings, 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 quarterly report;
 
4.  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 consolidated subsidiaries, 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.  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 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: March 28, 2013

/s/ Kwong Kwan Yin Roy
Kwong Kwan Yin Roy
Chief Executive  Officer

 
 

 

EX-31.2 3 ex312.htm EXHIBIT 31.2 ex312.htm
Exhibit 31.2
 

 
CERTIFICATION OF THE CHIEF FINANCIALOFFICER OF GREAT CHINA MANIA HOLDINGS, INC.
PURSUANT TO§ 302 OF THE SARBANES-OXLEY ACT OF 2002
 

I, Kwong Kwan Yin, Roy, certify that:
 
1.  I have reviewed this annual report on Form 10-K of Great China Mania Holdings, 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 quarterly report
 
4.  I am responsible for establishing and maintaining  disclosure controls and procedures (as defmed  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 consolidated subsidiaries, 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.  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 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: March 28,2013

/s/ Kwong Kwan Yin, Roy
Kwong Kwan Yin, Roy
Chief Financial Officer

 
 

 

EX-32.1 4 ex321.htm EXHIBIT 32.1 ex321.htm
  
Exhibit 32.1
 
 
CERTIFICATION OF THE CIDEF EXECUTIVE OFFICER OF GREAT CHINA MANIA HOLDINGS, INC. PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
§ 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of Great China Mania Holdings, Inc. (the "Company") on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certifies, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of2002, that, to the best of the undersigned's knowledge:

 
I) The Report fully complies with the requirements of Section 13(a) or IS(d) of the Securities Exchange Act ofl934; and.·

 
2) The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company for the period certified.
 
 
Signed on this March 28,2013
/s/ KwongKwan Yin. Rov
Kwong Kwan Yin, Roy
Chief Executive Officer

 
 

 

EX-32.2 5 ex322.htm EXHIBIT 32.2 ex322.htm
 
Exhibit 32.2

 
  CERTIFICATION  OF THE CHIEF FINANCIAL OFFICER OF GREAT CHINA MANIA HOLDINGS, INC. PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
§ 906 OF THE SARBANES-OXLEY ACT OF 2002
 

In connection with the Annual Report of Great China Mania Holdings, Inc. (the "Company") on Form 10-K for the year ended December 31, 2012, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), the undersigned hereby certifies, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of2002, that, to the best of the undersigned's knowledge:
 
1)  The Report  fully  complies  with  the  requirements  of  Section 13(a) or  15(d) of  the  Securities Exchange Act ofl934;  and
 
2)   The information  contained  in the Report  fairly presents,  in  all  material  respects,  the financial condition and results of operations of the Company.
 

Signed on this March 28,2013
 
/s/ KwongKwan Yin. Roy
Kwong Kwan Yin,
Roy Chief Financial Officer

 
 

 

EX-101.INS 6 gmec-20121231.xml 142375 -60431 2051 -2051 792482 997911 396295 353122 2730 -7923182 1492 1492 7042086 7640618 127813 false 1492 -1032822 -0.04 -0.04 -534487 -0.01 -0.01 1246 879868 0.03 0.03 -0.01 -0.01 24943587 68853432 56735 305212 218773 .01 .01 283660 788761 375000000 375000000 28366000 78876021 28366000 78876021 303720 1492 305212 -86439 305212 218773 515021 15539 5151 20690 1389095 15474000 19195000 1234355 154740 1389095 141793 191950 333743 20690 128200 31301 4228454 3352099 --12-31 162179 -122769 22425 -396295 43173 -52570 42132 -175123 9191 175123 165932 -0.01 -0.01 24943587 69008583 -59504 2769 56735 FY 2012 2012-12-31 10-K 4261 0001382112 Yes Smaller Reporting Company 3500592 Great China Mania Holdings, Inc. No No 1492 1492 1246 1246 958855 958855 958855 2163892 1950772 1143333 1460496 792482 205429 20588 7103 12682 -12682 128200 135500 496775 28500000 234200 285000 22425 -496775 496775 244216 -86439 682637 -67932 566154 -67932 116483 -406956 -18507 -262434 -18507 -31465 -144522 -31465 878622 -1020559 -1034314 -490276 -534487 -80233 -1034314 -1034314 -534487 -534487 -80233 -80233 2738 27097 25127 13342 22350 275775 121624 -96899 3690000 2300000 401472 36900 438372 207000 23000 230000 438372 230000 9202000 28366000 78876021 28500000 140495 275775 63656 -152954 -534487 929200 888760 1396944 1381032 1525144 1412333 929200 888760 128200 31301 2163892 1950772 -13755 -44211 -1246 5406259 92020 -2270457 -7767490 1492 7042086 283660 -595944 -7923182 -595944 1492 7640618 788761 -523573 -8457669 -496775 -523573 20588 27691 <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'><b><u>NOTE 1 &#150; ORGANIZATION AND PRINCIPAL ACTIVITIES</u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>Great China Mania Holdings, Inc. (&#147;GMEC&#148; or the &#147;Company&#148;) was incorporated in Florida on July 8, 1983. In February 2011, three new subsidiaries of the Company were formed and have since maintained operations. These subsidiaries are GME Holdings Limited, Great China Games Limited and Great China Media Limited. In June 2011, another new subsidiary GMEC Ventures Limited, a Hong Kong company, was formed and maintained for holding future investment if any. As of the date of this filing, our corporate structure is as follows:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>GMEC owns two wholly-owned BVI subsidiary known as Sharp Achieve Holdings Limited (&#147;Sharp Achieve&#148;) and Super China Global Limited (SCGL). SCGL has two subsidiaries: 1) GME Holdings Limited (&#147;GMEH&#148;) which was incorporated February 18, 2011 and specialized in artiste and project management services; and 2) GMEC Ventures Limited (&#147;GMEV&#148;) was incorporated June 1, 2011and specialized in investment holding. Sharp Achieve has two subsidiaries: 1) Great China Media Limited (&#147;GCM&#148;) which was incorporated February 1, 2011 and specialized in publication of magazines; 2) Great China Games Limited (&#147;GCG&#148;) which was incorporated February 1, 2011and specialized in retail operation of video games and accessories</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>On March 16, 2011, the Company amended its Articles of Incorporation and changed the name of the Company from &#147;Great East Bottles &amp; Drinks (China) Holdings, Inc.&#148; to &#147;Great China Mania Holdings, Inc.&#148;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>On March 31, 2011, the Company disposed of Water Scientific.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>In November, 2012, Sharp Achieve obtained the direct ownership of GCM and GCG by disposing the direct ownership of SCGL to GMEC. This restructuring transaction did not affect the company control of all fellow subsidiaries.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'><b><u>NOTE 2 &#150; PRINCIPLES OF CONSOLIDATION</u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The accompanying consolidated financial statements include the accounts of the Company and the Company&#146;s subsidiaries. The consolidated financial statements are prepared in accordance with generally accepted accounting principles used in the United States of America, and all significant intercompany balances and transactions have been eliminated.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The functional currency for the majority of the Company&#146;s continuing and discontinued operations is the Hong Kong Dollar (&#147;HKD&#148;), while the reporting currency is the US Dollar.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'><b><u>NOTE </u></b><b><u>3</u></b><b><u>&#150; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(a)&nbsp;&nbsp;Economic and political risk</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The Company&#146;s continuing operations and discontinued operations are conducted in Hong Kong. Accordingly, the political, economic, and legal environments in the Hong Kong may influence the Company&#146;s business, financial condition, and results of operations. </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The Company&#146;s major operations in the Hong Kong are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment. The Company&#146;s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(b)&nbsp;&nbsp;Cash and cash equivalents</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.&nbsp;&nbsp;The Company&#146;s continued operations maintain bank accounts in Hong Kong. The Company&#146;s discontinued operations maintain bank accounts in Hong Kong and China.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(c)&nbsp;&nbsp;Inventory</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>Inventories consisting of raw materials and finished goods are stated at the lower of cost or net realizable value. Inventory costs are calculated using a first in first out (FIFO) method of accounting.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(d)<font style='letter-spacing:9.0pt'> </font>Income tax</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>Income taxes are based on pre-tax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. The Company periodically assesses the need to establish valuation allowances against its deferred tax assets to the extent the Company no longer believes it is more likely than not that the tax assets will be fully utilized.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The Company evaluates a tax position to determine whether it is more likely than not that the tax position will be sustained upon examination, based upon the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is subject to a measurement assessment to determine the amount of benefit to recognize and the appropriate reserve to establish, if any. If a tax position does not meet the more-likely-than-not recognition threshold, no benefit is recognized</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>In accordance with the relevant tax laws and regulations of Hong Kong, the applicable corporation income tax rate was 16.5% on assessable profits, if any, for the years ended December 31, 2012 and 2011, respectively.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(e)<font style='letter-spacing:9.0pt'>&nbsp;</font>Fair value of financial instruments</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The Company&#146;s financial instruments primarily consist of cash and cash equivalents, amount due from a related company, prepaid expenses and accounts receivables, other receivables, accounts payable, accrued expenses and other payables, unearned revenue, short term borrowings, convertible note and amount due to related parties.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The estimated fair value amounts have been determined by the Company, using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>As of the year-end dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented, due to the short maturities of these instruments and the fact that the interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profiles at respective year ends.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(f)<font style='letter-spacing:9.0pt'>&nbsp;</font>Revenue recognition</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Revenue represents the invoiced value of goods sold or services rendered during the year, net of sales discounts and returns. Generally revenue is recognized when all of the following criteria are met:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="24" valign="top" style='width:.25in;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>-</p> </td> <td valign="top" style='padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>Persuasive evidence of an arrangement exists,</p> </td> </tr> <tr align="left"> <td width="24" valign="top" style='width:.25in;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>-</p> </td> <td valign="top" style='padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>Delivery has occurred or services have been rendered,</p> </td> </tr> <tr align="left"> <td width="24" valign="top" style='width:.25in;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>-</p> </td> <td valign="top" style='padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>The seller&#146;s price to the buyer is fixed or determinable, and</p> </td> </tr> <tr align="left"> <td width="24" valign="top" style='width:.25in;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>-</p> </td> <td valign="top" style='padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>Collectability is reasonably assured</p> </td> </tr> </table> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Revenue recognition policies for each of the major products and services of continuing operations are illustrated as follows:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:35.4pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:-20.0pt;layout-grid-mode:char'>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue from provision of artist management, event management, and promotion for its clients is recognized when services are rendered.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:35.4pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:-20.0pt;layout-grid-mode:char'>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue from traditional paper magazines sales is recognized when magazines are sold to customers, net of sales return.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:35.4pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:-20.0pt;layout-grid-mode:char'>(iii)&nbsp;&nbsp;&nbsp;&nbsp; Revenue from the provision of advertising services is recognized when services are rendered.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:35.4pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:-20.0pt;layout-grid-mode:char'>(iv)&nbsp;&nbsp;&nbsp; Revenue from electronic content sales like iPhone and Android applications is recognized when receipt is confirmed by service providers. In 2012, the revenue generated from digital content is not significant to the publication of magazines operation.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:.5in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:35.4pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:-20.0pt;layout-grid-mode:char'>(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue from retail of video games and accessories is recognized upon delivery of goods to customers.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>For discontinued ecological products operations, bottles productions and OEM bottled water operations, revenue is recognized when delivery has occurred.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>(g)&nbsp;&nbsp;Earnings per share</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.&nbsp;For the years ended December 31, 2012, there are a total of 1,622,432 shares of common stock included in the calculation of diluted weighted average number of shares outstanding. They are not included in the calculation of diluted (loss) / earnings per share because they are considered anti dilutive when computing diluted (loss) / earnings per share.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(h)<font style='letter-spacing:9.0pt'>&nbsp;</font>Use of estimates</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Actual results may differ from those estimates.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(i)<font style='letter-spacing:9.0pt'>&nbsp;</font>Comprehensive income</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements.&nbsp;&nbsp;Comprehensive income includes net income and the foreign currency translation gain, net of tax.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(j)<font style='letter-spacing:9.0pt'>&nbsp;</font>Foreign currency translation</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The accompanying consolidated financial statements are presented in United States Dollars (US$). The functional currency of the Company is the Hong Kong Dollar (HK$). Capital accounts of the consolidated financial statements are translated into United States dollars from HK$ at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the year.&#160; The translation rates are as follows:</p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr align="left"> <td width="319" valign="top" style='width:239.3pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>December 31, 2012</p> </td> <td width="16" valign="top" style='width:11.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="98" valign="top" style='width:73.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>December 31, 2011</p> </td> <td width="18" valign="top" style='width:13.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="319" valign="top" style='width:239.3pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.15pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="98" valign="top" style='width:73.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="319" valign="top" style='width:239.3pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>Year end HK$ : US$ exchange rate</p> </td> <td width="20" valign="top" style='width:15.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>0.1282</p> </td> <td width="16" valign="top" style='width:11.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="98" valign="top" style='width:73.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>0.1282</p> </td> <td width="18" valign="top" style='width:13.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="319" valign="top" style='width:239.3pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>Average period/yearly HK$ : US$ exchange rate&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </p> </td> <td width="20" valign="top" style='width:15.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>0.1282</p> </td> <td width="16" valign="top" style='width:11.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="98" valign="top" style='width:73.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>0.1282</p> </td> <td width="18" valign="top" style='width:13.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> </table> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(k)<font style='letter-spacing:9.0pt'>&nbsp;</font>Stock-based compensation</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The Company recognizes compensation expense for all stock-based payment awards made to employees, contractors and non-employee directors. Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>During the year ended December 31, 2012, the Company issued 2,300,000 shares in aggregate for services rendered to the Company. The fair value of $230,000, which is determined with refer to closing stock price on the dates of issue, was charged to operation as general and administrative expenses for the year then ended.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>During the year ended December 31, 2011, the Company issued 3,690,000 shares in aggregate for employee&#146;s compensation and services rendered to the Company. The fair value of $438,372 is determined with refer to the closing stock price on the date of issue.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(l)<font style='letter-spacing:9.0pt'>&nbsp;</font>Recent accounting pronouncements</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>In December 2011, the Financial Accounting Standards Board (&quot;FASB&quot;) issued ASU&nbsp;2011-11, Balance Sheet (Topic 210) Disclosures about Offsetting Assets and Liabilities. The amendments in this update will enhance disclosures required by U.S.&nbsp;GAAP by requiring improved information about financial instruments and derivative instruments that are either (1)&nbsp;offset in accordance with either ASC&nbsp;210-20-45 or ASC&nbsp;815-10-45 or (2)&nbsp;subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either ASC&nbsp;210-20-45 or ASC&nbsp;815-10-45. This information will enable users of an entity's financial statements to evaluate the effect or potential effect of netting arrangements on an entity's financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this Update. The amendments in this Update are effective for annual periods for fiscal years beginning on or after January&nbsp;1, 2013. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>In December 2011, the FASB has issued Accounting Standards Update (ASU) No.2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU No. 2011-11 is intended to supersede certain pending paragraphs in Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, to effectively defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. The amendments will be temporary to allow the Board time to redeliberate the presentation requirements for reclassifications out of accumulated other comprehensive income for annual and interim financial statements for public, private, and non-profit entities. All other requirements in ASU No. 2011-05 are not affected by ASU No. 2011-12, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. Nonpublic entities should begin applying these requirements for fiscal years ending after December 15, 2012, and interim and annual periods thereafter. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>In August 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-03, Technical Amendments and Corrections to SEC Sections. This ASU amends various SEC paragraphs pursuant to SAB 114, SEC Release No. 33-9250, and ASU 2010-22, which amend or rescind portions of certain SAB Topics. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-04, Technical Corrections and Improvements. This ASU make technical corrections, clarifications, and limited-scope improvements to various Topics throughout the Codification. The amendments in this ASU that will not have transition guidance will be effective upon issuance for both public entities and nonpublic entities. For public entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. For nonpublic entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2013.The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'><b><u>NOTE </u></b><b><u>4</u></b><b><u> &#150; INVENTORIES</u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Inventories as of the year-end dates are summarized as follows:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="565" style='border-collapse:collapse'> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" valign="top" style='width:67.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2012</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" valign="top" style='width:67.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2011</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Raw materials</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="89" style='width:67.05pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>6,795</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="89" style='width:67.05pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>7,109</p> </td> </tr> <tr style='height:13.5pt'> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Trading inventories</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" style='width:67.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>3,643</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" style='width:67.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>45,461</p> </td> </tr> <tr style='height:13.5pt'> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Total</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="89" valign="bottom" style='width:67.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>10,438</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="89" valign="bottom" style='width:67.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>52,570</p> </td> </tr> </table> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>The raw materials represent the paper used in publication of magazines and the trading inventories represent video games and accessories used in retail operation.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'><b><u>NOTE 5 &#150; SHORT TERM LOAN RECEIVABLE</u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>During the year, the Company granted a short term loan amount of $140,495 to a third party company at 6% interest per annum with no fixed payment terms. Interest income in conjunction with this short term loan for the year ended December 31, 2012 and 2011 was $12,682 and $0, respectively.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'><b><u>NOTE 6 &#150; DEPOSITS, PREPAID EXPENSES AND OTHER RECEIVABLES</u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>Deposits, prepaid expenses and other receivables consist of payments and deposits made by the Company to third parties in the normal course of business operations with no interest and no fixed repayment terms. These payments are made for the purchase of services that are used by the Company for its current operations.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-indent:45.0pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The Company evaluates the amounts recorded as prepaid expenses on a periodic basis and records a charge to the current operations of the Company when the related expense has been incurred.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'><b><u>NOTE </u></b><b><u>7</u></b><b><u> &#150; ACCRUED EXPENSES AND OTHER PAYABLES</u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>As of the year-end dates, the Company&#146;s accrued expenses and other payables are summarized as follows:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="565" style='border-collapse:collapse'> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.65pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="93" valign="top" style='width:69.45pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2012</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2011</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.65pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="93" valign="top" style='width:69.45pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr style='height:13.5pt'> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Accrued expenses</p> </td> <td width="21" valign="top" style='width:15.65pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="93" valign="top" style='width:69.45pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;layout-grid-mode:char'>84,720</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="94" valign="top" style='width:70.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;layout-grid-mode:char'>144,813</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Other payables</p> </td> <td width="21" valign="top" style='width:15.65pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="93" valign="top" style='width:69.45pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;layout-grid-mode:char'>-</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;layout-grid-mode:char'>338</p> </td> </tr> <tr style='height:13.5pt'> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.65pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="93" valign="top" style='width:69.45pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;layout-grid-mode:char'>84,720</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="94" valign="top" style='width:70.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;layout-grid-mode:char'>145,151</p> </td> </tr> </table> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'><b><u>NOTE </u></b><b><u>8</u></b><b><u> &#150; AMOUNT DUE TO A DIRECTOR</u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>As of the year-end dates, the Company&#146;s current account due to the director is summarized as follows:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="97%" style='border-collapse:collapse'> <tr align="left"> <td width="59%" valign="top" style='width:59.88%;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="3%" valign="top" style='width:3.0%;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="17%" valign="top" style='width:17.04%;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2012</p> </td> <td width="3%" valign="top" style='width:3.36%;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="16%" valign="top" style='width:16.72%;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2011</p> </td> </tr> <tr align="left"> <td width="59%" valign="top" style='width:59.88%;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="3%" valign="top" style='width:3.0%;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="17%" valign="top" style='width:17.04%;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="3%" valign="top" style='width:3.36%;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="16%" valign="top" style='width:16.72%;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="59%" valign="top" style='width:59.88%;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Mr. Yau Wai Hung</p> </td> <td width="3%" valign="top" style='width:3.0%;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="17%" valign="top" style='width:17.04%;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;layout-grid-mode:char'>-</p> </td> <td width="3%" valign="top" style='width:3.36%;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="16%" valign="top" style='width:16.72%;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;layout-grid-mode:char'>2,051</p> </td> </tr> </table> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>The amount due to Mr. Yau Wai Hung represents temporary advances from the director for the Company&#146;s working capital. The balance is unsecured, interest free, and has no fixed terms of repayment. During the year, Mr. Yau was the Chief Executive Officer and director of the Company.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'><b><u>NOTE </u></b><b><u>9</u></b><b><u> &#150; SHORT-TERM BORROWINGS</u></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>The short-term borrowings are unsecured, interest free advances from three non affiliate individuals with no fixed repayment term. During the year, those individuals converted a portion of the short term borrowings of $333,743 into 19,195,000 shares of Company&#146;s common stock.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'><b><u>NOTE 1</u></b><b><u>0</u></b><b><u> &#150; AMOUNT DUE TO RELATED PARTIES</u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>As of the year-end dates, the Company&#146;s current accounts with related companies are summarized as follows:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="565" style='border-collapse:collapse'> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:center;text-indent:-.2pt;layout-grid-mode:char'>2012</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:center;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:center;text-indent:5.1pt;layout-grid-mode:char'>2011</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.1pt;layout-grid-mode:char'>China Culture Limited (CCL)</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>$</p> </td> <td width="95" valign="top" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>38,128</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>$</p> </td> <td width="95" valign="top" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>109,583</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.1pt;layout-grid-mode:char'>Global Mania Empire Management Limited (GME)</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>-</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>51,314</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.1pt;layout-grid-mode:char'><b>Total amount due to related parties</b></p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'><b>$</b></p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'><b>38,128</b></p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'><b>$</b></p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'><b>160,897</b></p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> </tr> </table> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>The amount due to CCL is a temporary advance to the Company for working capital purposes. The balance is unsecured, interest free and has no fixed repayment term. CCL is 100% owned by one of the Company&#146;s directors.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>The amount due to GME is a temporary advance to the Company for working capital purposes. The balance is unsecured, interest free and has no fixed repayment.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'><b><u>NOTE 1</u></b><b><u>1</u></b><b><u> &#150; CONVERTIBLE NOTES</u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>On June 1, 2011, the Company issued a non-interest bearing convertible note in the amount of $256,400 ( &#147;Note 1&#148;) to a third party note holder (&#147;Holder 1&#148;),which matures on May 31, 2016. On September 30, 2011, the first installment of $128,200 &#160;was received. Note 1 bears a call back option exercisable by Holder 1 on the unused portion of Note 1 after 12 months from the date of Note 1. Note 1 can be converted into common stock of the Company by Holder 1 under certain conditions. During the year, a total of $96,899 was repaid by the Company. As of December 31, 2012, Note 1 did not qualify to be converted under those conditions and is therefore not dilutive.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>On May 31, 2012, the Company issued an 8% convertible note in the amount of $50,000 (&#147;Note 2&#148;) to another third party note holder (&#147;Holder 2&#148;), which matures on March 4, 2013 and had been fully received on June 20, 2012. The outstanding principal balance plus any accrued interest under Note 2 is convertible into common stock of the Company after 180 days from the date of issued with a 42% discount over the convertible price upon the option of Holder 2. The conversion price is determined by the average of the lowest 3 closing bid prices out of the 10 days prior to the Conversion Date. The Company has recorded a debt discount in the amount of $37,655 as the value of the beneficial conversion feature at the date the company entered into the note agreement. The discount is being amortized using the effective interest method over the life of Note 2. The total interest&nbsp;expense relative&nbsp;to Note 2 was $39,655 which consists of&nbsp;accrued interest expenses of $2,000 and amortization of the debt discount of $37,655 for the year ended December 31, 2012. On December 20, 2012, part of the note of $12,000 was converted into 515,021 shares of common stock by the holder. The gross outstanding balance Note 2 at December 31, 2012 was $68,965 after deducting the partial settlement of $20,690 by shares. As of December 31, 2012, Note 2 qualified to be converted 1,622,432 shares of common stock under the conditions of Note 2 and is therefore dilutive.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>On October 22, 2012 and December 12, 2012, the Company issued two 8% convertible note in the amount of $32,500 (&#147;Note 3&#148;) and $53,000 (&#147;Note 4&#148;) to Holder 2, respectively. Note 3 matures on July 24, 2013 and was fully received on November 7, 2012. The Note 4 matures on September 14, 2013 and was fully received on December 27, 2012.The outstanding principal balance plus any accrued interest under both Note 3and Note 4 are convertible into common stock of the Company after 180 days from the date of issued with a 42% discount over the convertible price upon the option of Holder 2. The conversion price is determined by the average of the lowest 3 closing bid prices out of the 10 days prior to the Conversion Date. The Company has recorded debt discount in the amount of $24,476 and $39,914 for Note 3 and Note 4 respectively as the value of the beneficial conversion feature at the date the Company entered into the note agreement. The discount is being amortized using the effective interest method over the life of Note 3 and 4 separately. The total interest&nbsp;expense relative&nbsp;to Note 3 was $10,024 which consists of&nbsp;interest expenses of $506 and amortization of the debt discount of $9,518 for the year ended December 31, 2012. The total interest expense relative&nbsp;to Note 4 was $4,437 which consists of&nbsp;interest expenses of $224 and amortization of the debt discount of $4,213 for the year ended December 31, 2012.The gross outstanding balance Note 3 and 4 at December 31, 2012 was $42,524 and $57,437 separately. As of December 31, 2012, both Note 3and Note 4 did not qualify to be converted under the conditions of those notes and are therefore not dilutive.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The convertible notes as of the year-end dates are summarized as follows:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="565" style='border-collapse:collapse'> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:center;text-indent:-.2pt;layout-grid-mode:char'>2012</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:center;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:center;text-indent:5.1pt;layout-grid-mode:char'>2011</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.8pt;layout-grid-mode:char'><b>Noncurrent liabilities:</b></p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.55pt;layout-grid-mode:char'>Non-interest bearing convertible note </p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>$</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>31,301</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>$</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>128,200</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.6pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.6pt;layout-grid-mode:char'><b>Current liabilities:</b></p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="bottom" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.55pt;layout-grid-mode:char'>8% convertible note 2, net (including fair value adjustment on option $ 37,655, accrued interest expense $2,000,andsettlement by shares totaling of $20,690)</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>68,965</p> </td> <td width="19" valign="bottom" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char;word-break:break-all'>-</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.55pt;layout-grid-mode:char'>8% convertible note 3, net (including fair value adjustment on option $ 24,476, accrued interest expense $506, net of unamortized discount $14,958) </p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>42,524</p> </td> <td width="19" valign="bottom" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char;word-break:break-all'>-</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.55pt;layout-grid-mode:char'>8% convertible note 4, net (including fair value adjustment on option $ 39,914, accrued interest expense $224, net of unamortized discount $35,701) </p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>57,437</p> </td> <td width="19" valign="bottom" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char;word-break:break-all'>-</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.1pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>168,926</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char;word-break:break-all'>- </p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.1pt;layout-grid-mode:char'><b>Total convertible note outstanding</b></p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'><b>$</b></p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'><b>200,227</b></p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'><b>$</b></p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'><b>128,200</b></p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> </tr> </table> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'><b><u>NOTE 1</u></b><b><u>2 </u></b><b><u>&#150; WEIGHTED AVERAGE NUMBER OF SHARES FOR EARNINGS PER SHARE CALCULATION</u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>On January 19, 2012, the Company entered into a stock subscription agreement and issued 28,500,000 shares of common stock to a shareholder, who is an affiliate of the Company, for a consideration of $519,200. During the year, the major shareholder paid $22,425 and the remaining balance of $496,775 has been reported as a Subscription Receivable in the financial statements of the Company.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>On January 26, 2012 the Company issued 9,410,000 shares of common stock to three non affiliate individuals for settlement of short term borrowings totaling $149,450.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>On March 20, 2012 the Company issued 3,400,000 shares of common stock to one non affiliate individual for settlement of short term borrowings totaling $56,593.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>On August 14, 2012 the Company issued 2,105,000 shares of common stock to one non affiliate individual for settlement of short term borrowings totaling $42,100.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>On August 17 2012, we issued to a consultant 50,000 shares of our common stock in exchange for professional services rendered. Based on the share price of $0.10 per share on the grant date, the fair value of these issued shares is $5,000.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>On&nbsp;August 24,&nbsp;2012, we issued to two consultants 2,250,000 shares of our common stock in exchange for professional services rendered. Based on the share price of $0.10 per share on the grant date, the fair value of these issued shares is $225,000. </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>On December 5, 2012 the Company issued 4,280,000 shares of common stock to two non affiliate individuals for settlement of short term borrowings totaling $85,600.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>On December 20, 2012 the Company issued 515,021 shares of common stock to a convertible note holder for partial settlement of a convertible note totaling $12,000.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>The calculation of weighted average number of shares for the year ended December 31, 2012 is illustrated as follows:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="568" style='margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="228" colspan="3" valign="bottom" style='width:170.75pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2012</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="99" valign="bottom" style='width:74.15pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>Number</p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>of shares</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="top" style='width:83.1pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>Weighted average</p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>number of shares</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="top" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>At January 1, 2012</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>28,366,000</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>28,366,000</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>Shares issued on January 19, 2012 for debt conversion</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>28,500,000</p> </td> <td width="18" valign="bottom" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>27,098,361</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>Shares issued on January 26, 2012 for debt conversion</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>9,410,000</p> </td> <td width="18" valign="bottom" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>8,767,240</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>Shares issued on March 20, 2012 for debt conversion</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>3,400,000</p> </td> <td width="18" valign="bottom" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>2,666,120</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>Shares issued on August 14, 2012 for debt conversion</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>2,105,000</p> </td> <td width="18" valign="bottom" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>805,191</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>Shares issued on August 17,2012 for share based payment</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>50,000</p> </td> <td width="18" valign="bottom" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>18,716</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>Shares issued on August 24 ,2012 for share based payment</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>2,250,000</p> </td> <td width="18" valign="bottom" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>799,180</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>Shares issued on December 5, 2012 for debt conversion</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>4,280,000</p> </td> <td width="18" valign="bottom" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>315,738</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>Shares issued on December 20, 2012 for debt conversion</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>515,021</p> </td> <td width="18" valign="bottom" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>16,886</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="99" valign="top" style='width:74.15pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="top" style='width:83.1pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>At December 31, 2012</p> </td> <td width="99" valign="top" style='width:74.15pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>78,876,021</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="top" style='width:83.1pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>68,853,432</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="99" valign="top" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> </table> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'><b><u>NOTE </u></b><b><u>13</u></b><b><u> &#150; INTEREST EXPENSES</u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Interest expenses for the year ended December 31 2012 and 2011 are summarized as follows:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="565" style='border-collapse:collapse'> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" valign="top" style='width:67.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2012</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" valign="top" style='width:67.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2011</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" style='width:67.05pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" style='width:67.05pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char;word-break:break-all'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Amortization on discount of convertible note</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="89" style='width:67.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>51,386</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="89" style='width:67.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char;word-break:break-all'>- </p> </td> </tr> <tr style='height:13.5pt'> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Accrued interest on convertible note</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" style='width:67.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>2,730</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" style='width:67.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char;word-break:break-all'>- </p> </td> </tr> <tr style='height:13.5pt'> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Total</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="89" valign="bottom" style='width:67.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>54,116</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="89" valign="bottom" style='width:67.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char;word-break:break-all'>- </p> </td> </tr> </table> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'><b><u>NOTE 1</u></b><b><u>4 </u></b><b><u>&#150; RELATED PARTY TRANSACTION</u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>In addition to the transactions detailed elsewhere in these financial statements, the Company and its subsidiaries entered into the following material transactions with the related parties for the year ended December 31, 2012:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="555" style='border-collapse:collapse'> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="38" valign="top" style='width:28.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="85" valign="top" style='width:63.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2012</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>&nbsp;</p> </td> <td width="80" valign="top" style='width:60.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2011</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>From continuing operations</p> </td> <td width="38" valign="top" style='width:28.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="85" valign="top" style='width:63.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="80" valign="top" style='width:60.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>China Culture Limited </p> </td> <td width="38" valign="top" style='width:28.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="85" valign="top" style='width:63.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="80" valign="top" style='width:60.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Rental charges paid by Company for offices premises</p> </td> <td width="38" valign="bottom" style='width:28.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="85" valign="bottom" style='width:63.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>92,305</p> </td> <td width="24" valign="bottom" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="80" valign="bottom" style='width:60.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>247,745</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="38" valign="top" style='width:28.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="85" valign="top" style='width:63.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="80" valign="top" style='width:60.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> </table> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;layout-grid-mode:char'>China Culture Limited is a related party as it is a company owned by Mr. Chan Wing Hing, a Company director appointed during the year.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>In the opinion of directors, the above transaction was entered into by the company in the normal course of business.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'><b><u>NOTE 15 &#150; CONTINGENCIES AND COMMITMENTS</u></b></p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>As of December 31, 2012, the expected annual lease payments under operating leases are as follows:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="555" style='border-collapse:collapse'> <tr align="left"> <td width="451" valign="top" style='width:338.55pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="74" valign="top" style='width:55.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="451" valign="top" style='width:338.55pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>For the year ending December 31,</p> </td> <td width="30" valign="top" style='width:22.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="74" valign="top" style='width:55.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr style='height:13.5pt'> <td width="451" valign="top" style='width:338.55pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>2013</p> </td> <td width="30" valign="top" style='width:22.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="74" valign="bottom" style='width:55.15pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>90,338</p> </td> </tr> <tr style='height:13.5pt'> <td width="451" valign="top" style='width:338.55pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>2014</p> </td> <td width="30" valign="top" style='width:22.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="74" valign="bottom" style='width:55.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>46,088</p> </td> </tr> <tr style='height:13.5pt'> <td width="451" valign="top" style='width:338.55pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Total</p> </td> <td width="30" valign="top" style='width:22.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="74" valign="bottom" style='width:55.15pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>136,426</p> </td> </tr> </table> <!--egx--><p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'><b><u>NOTE 16 &#150; SEGMENT REPORTING</u></b></p> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>The Company&#146;s reportable segments of business include artist and project management services, publication of magazines and retail of video games and accessories. &nbsp;Each of these segments is conducted in a separate corporation and each functions independently of the others. The Company has no sales between segments.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt'>Financial information of the Company&#146;s business segments is as follows:</p> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" align="left" width="565" style='border-collapse:collapse;margin-left:6.75pt;margin-right:6.75pt'> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:center'>2012</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:center'>2011</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>Revenues from:</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Continuing operations</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Artist and project management services</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>1,931,005</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>1,106,507</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Publication of magazines</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>2,238,117</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>2,641,324</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Retail of video games and accessories </p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>643,473</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>1,623,956</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Corporate</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>-</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>-</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>4,812,595</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>5,371,787</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Discontinued operations</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>-</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>-</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>4,812,595</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>5,371,787</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>Segment profit/(loss) from: </p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Artist and project management services</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:5.0pt'>131,024</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:5.0pt'>(193,360)</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Publication of magazines</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(51,730)</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(212,221)</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Retail of video games and accessories </p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(51,860)</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(68,251)</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Corporate</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(561,921)</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(560,482)</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(534,487)</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(1,034,314)</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Discontinued operations</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>-</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>878,622</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(534,487)</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(155,692)</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:15.0pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:1.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> </table> <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Segment result of discontinued operations in 2011 represents a gain of $958,855 on disposal of Water Scientific and net loss of $80,233 generated from Water Scientific up to March 31, 2011.</p> <p style='margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" align="left" width="565" style='border-collapse:collapse;margin-left:6.75pt;margin-right:6.75pt'> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>Segment assets:</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="center" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:center'>2012</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="center" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="center" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:center'>2011</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:15.0pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:1.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Artist and project management services </p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>582,568</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>291,861</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Publication of magazines </p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>184,859</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>482,882</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Retail of video games and accessories</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>42,422</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>121,772</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Corporate</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>78,911</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>32,685</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>888,760</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>929,200</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Discontinued operations</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>-</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>-</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>888,760</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>929,200</p> </td> </tr> </table> <p style='margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal;layout-grid-mode:char'><b><u>NOTE 17- GOING CONCERN</u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>As of December 31, 2012, the Company has accumulated deficits of $8,457,669, a negative working capital of $492,272, and also recorded a net loss from the continuing operations of $534,487 for the year then ended.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>As of December 31, 2012 the Company may need additional cash resources to operate during the upcoming 12 months, and the continuation of the Company may dependent upon the continuing financial support of investors, directors and/or stockholders of the Company. The Company intends to attempt to acquire additional operating capital through private equity offerings to the public and existing investors to fund its business plan. However, there is no assurance that equity or debt offerings will be successful in raising sufficient funds to assure the eventual profitability of the Company. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'><b><u>NOTE 1</u></b><b><u>8</u></b><b><u>&#150; SUBSEQUENT EVENTS</u></b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>On January 14, 2013 Mr. Cheung Wai Kit resigned as a director of the Company and Ms.&nbsp;Yum Ka Yan&nbsp;was appointed as a director of the Company. On that same day, Mr. Yau Wai Hung resigned as the Company&#146;s Chief Executive Officer and Mr. Kwong Kwan Yin Roy was appointed as Chief Executive Officer and Chief Financial Officer.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>During the period from January 2, 2013 to January 18, 2013, we issued a total of 1,622,432 shares common stock for final settlement of a convertible note totaling $40,000.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>We are offering to sell up to 10,600,000 shares of common stock issuable to one non affiliate investor as disclosed on our Form S-1 filed with the Securities and Exchange Commission on March 13, 2013.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(a)&nbsp;&nbsp;Economic and political risk</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The Company&#146;s continuing operations and discontinued operations are conducted in Hong Kong. Accordingly, the political, economic, and legal environments in the Hong Kong may influence the Company&#146;s business, financial condition, and results of operations. </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The Company&#146;s major operations in the Hong Kong are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment. The Company&#146;s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(b)&nbsp;&nbsp;Cash and cash equivalents</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.&nbsp;&nbsp;The Company&#146;s continued operations maintain bank accounts in Hong Kong. The Company&#146;s discontinued operations maintain bank accounts in Hong Kong and China.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(c)&nbsp;&nbsp;Inventory</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>Inventories consisting of raw materials and finished goods are stated at the lower of cost or net realizable value. Inventory costs are calculated using a first in first out (FIFO) method of accounting.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(d)<font style='letter-spacing:9.0pt'> </font>Income tax</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>Income taxes are based on pre-tax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. The Company periodically assesses the need to establish valuation allowances against its deferred tax assets to the extent the Company no longer believes it is more likely than not that the tax assets will be fully utilized.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The Company evaluates a tax position to determine whether it is more likely than not that the tax position will be sustained upon examination, based upon the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is subject to a measurement assessment to determine the amount of benefit to recognize and the appropriate reserve to establish, if any. If a tax position does not meet the more-likely-than-not recognition threshold, no benefit is recognized</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>In accordance with the relevant tax laws and regulations of Hong Kong, the applicable corporation income tax rate was 16.5% on assessable profits, if any, for the years ended December 31, 2012 and 2011, respectively.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(e)<font style='letter-spacing:9.0pt'>&nbsp;</font>Fair value of financial instruments</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The Company&#146;s financial instruments primarily consist of cash and cash equivalents, amount due from a related company, prepaid expenses and accounts receivables, other receivables, accounts payable, accrued expenses and other payables, unearned revenue, short term borrowings, convertible note and amount due to related parties.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The estimated fair value amounts have been determined by the Company, using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>As of the year-end dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented, due to the short maturities of these instruments and the fact that the interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profiles at respective year ends.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(f)<font style='letter-spacing:9.0pt'>&nbsp;</font>Revenue recognition</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Revenue represents the invoiced value of goods sold or services rendered during the year, net of sales discounts and returns. Generally revenue is recognized when all of the following criteria are met:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="100%" style='width:100.0%'> <tr align="left"> <td width="24" valign="top" style='width:.25in;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>-</p> </td> <td valign="top" style='padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>Persuasive evidence of an arrangement exists,</p> </td> </tr> <tr align="left"> <td width="24" valign="top" style='width:.25in;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>-</p> </td> <td valign="top" style='padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>Delivery has occurred or services have been rendered,</p> </td> </tr> <tr align="left"> <td width="24" valign="top" style='width:.25in;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>-</p> </td> <td valign="top" style='padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>The seller&#146;s price to the buyer is fixed or determinable, and</p> </td> </tr> <tr align="left"> <td width="24" valign="top" style='width:.25in;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>-</p> </td> <td valign="top" style='padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>Collectability is reasonably assured</p> </td> </tr> </table> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Revenue recognition policies for each of the major products and services of continuing operations are illustrated as follows:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:35.4pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:-20.0pt;layout-grid-mode:char'>(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue from provision of artist management, event management, and promotion for its clients is recognized when services are rendered.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:35.4pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:-20.0pt;layout-grid-mode:char'>(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue from traditional paper magazines sales is recognized when magazines are sold to customers, net of sales return.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:35.4pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:-20.0pt;layout-grid-mode:char'>(iii)&nbsp;&nbsp;&nbsp;&nbsp; Revenue from the provision of advertising services is recognized when services are rendered.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:.5in;margin-bottom:.0001pt;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:35.4pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:-20.0pt;layout-grid-mode:char'>(iv)&nbsp;&nbsp;&nbsp; Revenue from electronic content sales like iPhone and Android applications is recognized when receipt is confirmed by service providers. In 2012, the revenue generated from digital content is not significant to the publication of magazines operation.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:.5in;line-height:115%;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:35.4pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:-20.0pt;layout-grid-mode:char'>(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Revenue from retail of video games and accessories is recognized upon delivery of goods to customers.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>For discontinued ecological products operations, bottles productions and OEM bottled water operations, revenue is recognized when delivery has occurred.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>(g)&nbsp;&nbsp;Earnings per share</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive.&nbsp;For the years ended December 31, 2012, there are a total of 1,622,432 shares of common stock included in the calculation of diluted weighted average number of shares outstanding. They are not included in the calculation of diluted (loss) / earnings per share because they are considered anti dilutive when computing diluted (loss) / earnings per share.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(h)<font style='letter-spacing:9.0pt'>&nbsp;</font>Use of estimates</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Actual results may differ from those estimates.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(i)<font style='letter-spacing:9.0pt'>&nbsp;</font>Comprehensive income</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements.&nbsp;&nbsp;Comprehensive income includes net income and the foreign currency translation gain, net of tax.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(j)<font style='letter-spacing:9.0pt'>&nbsp;</font>Foreign currency translation</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The accompanying consolidated financial statements are presented in United States Dollars (US$). The functional currency of the Company is the Hong Kong Dollar (HK$). Capital accounts of the consolidated financial statements are translated into United States dollars from HK$ at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the year.&#160; The translation rates are as follows:</p> <table border="0" cellspacing="0" cellpadding="0" style='border-collapse:collapse'> <tr align="left"> <td width="319" valign="top" style='width:239.3pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>December 31, 2012</p> </td> <td width="16" valign="top" style='width:11.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="98" valign="top" style='width:73.35pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>December 31, 2011</p> </td> <td width="18" valign="top" style='width:13.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="319" valign="top" style='width:239.3pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="20" valign="top" style='width:15.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.15pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="16" valign="top" style='width:11.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="98" valign="top" style='width:73.35pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="319" valign="top" style='width:239.3pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>Year end HK$ : US$ exchange rate</p> </td> <td width="20" valign="top" style='width:15.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>0.1282</p> </td> <td width="16" valign="top" style='width:11.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="98" valign="top" style='width:73.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>0.1282</p> </td> <td width="18" valign="top" style='width:13.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="319" valign="top" style='width:239.3pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>Average period/yearly HK$ : US$ exchange rate&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </p> </td> <td width="20" valign="top" style='width:15.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>0.1282</p> </td> <td width="16" valign="top" style='width:11.7pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="98" valign="top" style='width:73.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>0.1282</p> </td> <td width="18" valign="top" style='width:13.85pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> </table> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(k)<font style='letter-spacing:9.0pt'>&nbsp;</font>Stock-based compensation</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>The Company recognizes compensation expense for all stock-based payment awards made to employees, contractors and non-employee directors. Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>During the year ended December 31, 2012, the Company issued 2,300,000 shares in aggregate for services rendered to the Company. The fair value of $230,000, which is determined with refer to closing stock price on the dates of issue, was charged to operation as general and administrative expenses for the year then ended.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>During the year ended December 31, 2011, the Company issued 3,690,000 shares in aggregate for employee&#146;s compensation and services rendered to the Company. The fair value of $438,372 is determined with refer to the closing stock price on the date of issue.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>(l)<font style='letter-spacing:9.0pt'>&nbsp;</font>Recent accounting pronouncements</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>In December 2011, the Financial Accounting Standards Board (&quot;FASB&quot;) issued ASU&nbsp;2011-11, Balance Sheet (Topic 210) Disclosures about Offsetting Assets and Liabilities. The amendments in this update will enhance disclosures required by U.S.&nbsp;GAAP by requiring improved information about financial instruments and derivative instruments that are either (1)&nbsp;offset in accordance with either ASC&nbsp;210-20-45 or ASC&nbsp;815-10-45 or (2)&nbsp;subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either ASC&nbsp;210-20-45 or ASC&nbsp;815-10-45. This information will enable users of an entity's financial statements to evaluate the effect or potential effect of netting arrangements on an entity's financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this Update. The amendments in this Update are effective for annual periods for fiscal years beginning on or after January&nbsp;1, 2013. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>In December 2011, the FASB has issued Accounting Standards Update (ASU) No.2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU No. 2011-11 is intended to supersede certain pending paragraphs in Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, to effectively defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. The amendments will be temporary to allow the Board time to redeliberate the presentation requirements for reclassifications out of accumulated other comprehensive income for annual and interim financial statements for public, private, and non-profit entities. All other requirements in ASU No. 2011-05 are not affected by ASU No. 2011-12, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. Nonpublic entities should begin applying these requirements for fiscal years ending after December 15, 2012, and interim and annual periods thereafter. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>In August 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-03, Technical Amendments and Corrections to SEC Sections. This ASU amends various SEC paragraphs pursuant to SAB 114, SEC Release No. 33-9250, and ASU 2010-22, which amend or rescind portions of certain SAB Topics. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-04, Technical Corrections and Improvements. This ASU make technical corrections, clarifications, and limited-scope improvements to various Topics throughout the Codification. The amendments in this ASU that will not have transition guidance will be effective upon issuance for both public entities and nonpublic entities. For public entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. For nonpublic entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2013.The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="565" style='border-collapse:collapse'> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" valign="top" style='width:67.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2012</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" valign="top" style='width:67.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2011</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Raw materials</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="89" style='width:67.05pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>6,795</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="89" style='width:67.05pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>7,109</p> </td> </tr> <tr style='height:13.5pt'> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Trading inventories</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" style='width:67.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>3,643</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" style='width:67.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>45,461</p> </td> </tr> <tr style='height:13.5pt'> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Total</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="89" valign="bottom" style='width:67.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>10,438</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="89" valign="bottom" style='width:67.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>52,570</p> </td> </tr> </table> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="565" style='border-collapse:collapse'> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.65pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="93" valign="top" style='width:69.45pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2012</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2011</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.65pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="93" valign="top" style='width:69.45pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr style='height:13.5pt'> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Accrued expenses</p> </td> <td width="21" valign="top" style='width:15.65pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="93" valign="top" style='width:69.45pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;layout-grid-mode:char'>84,720</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="94" valign="top" style='width:70.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;layout-grid-mode:char'>144,813</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Other payables</p> </td> <td width="21" valign="top" style='width:15.65pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="93" valign="top" style='width:69.45pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;layout-grid-mode:char'>-</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;layout-grid-mode:char'>338</p> </td> </tr> <tr style='height:13.5pt'> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="21" valign="top" style='width:15.65pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="93" valign="top" style='width:69.45pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;layout-grid-mode:char'>84,720</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="94" valign="top" style='width:70.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;layout-grid-mode:char'>145,151</p> </td> </tr> </table> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="97%" style='border-collapse:collapse'> <tr align="left"> <td width="59%" valign="top" style='width:59.88%;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="3%" valign="top" style='width:3.0%;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="17%" valign="top" style='width:17.04%;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2012</p> </td> <td width="3%" valign="top" style='width:3.36%;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="16%" valign="top" style='width:16.72%;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2011</p> </td> </tr> <tr align="left"> <td width="59%" valign="top" style='width:59.88%;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="3%" valign="top" style='width:3.0%;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="17%" valign="top" style='width:17.04%;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="3%" valign="top" style='width:3.36%;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="16%" valign="top" style='width:16.72%;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="59%" valign="top" style='width:59.88%;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Mr. Yau Wai Hung</p> </td> <td width="3%" valign="top" style='width:3.0%;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="17%" valign="top" style='width:17.04%;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;layout-grid-mode:char'>-</p> </td> <td width="3%" valign="top" style='width:3.36%;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="16%" valign="top" style='width:16.72%;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:.1in;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;layout-grid-mode:char'>2,051</p> </td> </tr> </table> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="565" style='border-collapse:collapse'> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:center;text-indent:-.2pt;layout-grid-mode:char'>2012</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:center;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:center;text-indent:5.1pt;layout-grid-mode:char'>2011</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.1pt;layout-grid-mode:char'>China Culture Limited (CCL)</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>$</p> </td> <td width="95" valign="top" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>38,128</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>$</p> </td> <td width="95" valign="top" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>109,583</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.1pt;layout-grid-mode:char'>Global Mania Empire Management Limited (GME)</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>-</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>51,314</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.1pt;layout-grid-mode:char'><b>Total amount due to related parties</b></p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'><b>$</b></p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'><b>38,128</b></p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'><b>$</b></p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'><b>160,897</b></p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> </tr> </table> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="565" style='border-collapse:collapse'> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:center;text-indent:-.2pt;layout-grid-mode:char'>2012</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:center;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:center;text-indent:5.1pt;layout-grid-mode:char'>2011</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.8pt;layout-grid-mode:char'><b>Noncurrent liabilities:</b></p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.55pt;layout-grid-mode:char'>Non-interest bearing convertible note </p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>$</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>31,301</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>$</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>128,200</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.6pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.6pt;layout-grid-mode:char'><b>Current liabilities:</b></p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="bottom" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.55pt;layout-grid-mode:char'>8% convertible note 2, net (including fair value adjustment on option $ 37,655, accrued interest expense $2,000,andsettlement by shares totaling of $20,690)</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>68,965</p> </td> <td width="19" valign="bottom" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char;word-break:break-all'>-</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.55pt;layout-grid-mode:char'>8% convertible note 3, net (including fair value adjustment on option $ 24,476, accrued interest expense $506, net of unamortized discount $14,958) </p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>42,524</p> </td> <td width="19" valign="bottom" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char;word-break:break-all'>-</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-indent:.55pt;layout-grid-mode:char'>8% convertible note 4, net (including fair value adjustment on option $ 39,914, accrued interest expense $224, net of unamortized discount $35,701) </p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>57,437</p> </td> <td width="19" valign="bottom" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="bottom" style='width:70.9pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char;word-break:break-all'>-</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.1pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>168,926</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char;word-break:break-all'>- </p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.1pt;layout-grid-mode:char'><b>Total convertible note outstanding</b></p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'><b>$</b></p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'><b>200,227</b></p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'><b>$</b></p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:-.2pt;layout-grid-mode:char'><b>128,200</b></p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-align:right;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="95" valign="top" style='width:70.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:-5.2pt;margin-bottom:.0001pt;text-indent:5.8pt;layout-grid-mode:char'>&nbsp;</p> </td> </tr> </table> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="568" style='margin-left:5.4pt;border-collapse:collapse'> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="228" colspan="3" valign="bottom" style='width:170.75pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2012</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="99" valign="bottom" style='width:74.15pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>Number</p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>of shares</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="top" style='width:83.1pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>Weighted average</p> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>number of shares</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="top" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>At January 1, 2012</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>28,366,000</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>28,366,000</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>Shares issued on January 19, 2012 for debt conversion</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>28,500,000</p> </td> <td width="18" valign="bottom" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>27,098,361</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>Shares issued on January 26, 2012 for debt conversion</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>9,410,000</p> </td> <td width="18" valign="bottom" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>8,767,240</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>Shares issued on March 20, 2012 for debt conversion</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>3,400,000</p> </td> <td width="18" valign="bottom" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>2,666,120</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>Shares issued on August 14, 2012 for debt conversion</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>2,105,000</p> </td> <td width="18" valign="bottom" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>805,191</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>Shares issued on August 17,2012 for share based payment</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>50,000</p> </td> <td width="18" valign="bottom" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>18,716</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>Shares issued on August 24 ,2012 for share based payment</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>2,250,000</p> </td> <td width="18" valign="bottom" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>799,180</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>Shares issued on December 5, 2012 for debt conversion</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>4,280,000</p> </td> <td width="18" valign="bottom" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>315,738</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>Shares issued on December 20, 2012 for debt conversion</p> </td> <td width="99" valign="bottom" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>515,021</p> </td> <td width="18" valign="bottom" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>16,886</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>&nbsp;</p> </td> <td width="99" valign="top" style='width:74.15pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="top" style='width:83.1pt;border:none;border-top:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;layout-grid-mode:char'>At December 31, 2012</p> </td> <td width="99" valign="top" style='width:74.15pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>78,876,021</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="top" style='width:83.1pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt'>68,853,432</p> </td> </tr> <tr align="left"> <td width="340" valign="top" style='width:255.15pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:0in;margin-bottom:0in;margin-left:1.7pt;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="99" valign="top" style='width:74.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="111" valign="bottom" style='width:83.1pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-top:0in;margin-right:3.1pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> </table> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="565" style='border-collapse:collapse'> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" valign="top" style='width:67.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2012</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" valign="top" style='width:67.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2011</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" style='width:67.05pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" style='width:67.05pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char;word-break:break-all'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Amortization on discount of convertible note</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="89" style='width:67.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>51,386</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="89" style='width:67.05pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char;word-break:break-all'>- </p> </td> </tr> <tr style='height:13.5pt'> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Accrued interest on convertible note</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" style='width:67.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>2,730</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="89" style='width:67.05pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char;word-break:break-all'>- </p> </td> </tr> <tr style='height:13.5pt'> <td width="338" valign="top" style='width:253.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Total</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="89" valign="bottom" style='width:67.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>54,116</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="89" valign="bottom" style='width:67.05pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char;word-break:break-all'>- </p> </td> </tr> </table> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="555" style='border-collapse:collapse'> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="38" valign="top" style='width:28.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="85" valign="top" style='width:63.8pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2012</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>&nbsp;</p> </td> <td width="80" valign="top" style='width:60.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;layout-grid-mode:char'>2011</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>From continuing operations</p> </td> <td width="38" valign="top" style='width:28.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="85" valign="top" style='width:63.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="80" valign="top" style='width:60.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>China Culture Limited </p> </td> <td width="38" valign="top" style='width:28.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="85" valign="top" style='width:63.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="80" valign="top" style='width:60.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Rental charges paid by Company for offices premises</p> </td> <td width="38" valign="bottom" style='width:28.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="85" valign="bottom" style='width:63.8pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>92,305</p> </td> <td width="24" valign="bottom" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>$</p> </td> <td width="80" valign="bottom" style='width:60.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>247,745</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="38" valign="top" style='width:28.35pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="85" valign="top" style='width:63.8pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="24" valign="top" style='width:.25in;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="80" valign="top" style='width:60.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> </table> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" width="555" style='border-collapse:collapse'> <tr align="left"> <td width="451" valign="top" style='width:338.55pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>&nbsp;</p> </td> <td width="30" valign="top" style='width:22.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="74" valign="top" style='width:55.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="451" valign="top" style='width:338.55pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>For the year ending December 31,</p> </td> <td width="30" valign="top" style='width:22.8pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="74" valign="top" style='width:55.15pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> </tr> <tr style='height:13.5pt'> <td width="451" valign="top" style='width:338.55pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>2013</p> </td> <td width="30" valign="top" style='width:22.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="74" valign="bottom" style='width:55.15pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>90,338</p> </td> </tr> <tr style='height:13.5pt'> <td width="451" valign="top" style='width:338.55pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>2014</p> </td> <td width="30" valign="top" style='width:22.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="74" valign="bottom" style='width:55.15pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>46,088</p> </td> </tr> <tr style='height:13.5pt'> <td width="451" valign="top" style='width:338.55pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;layout-grid-mode:char'>Total</p> </td> <td width="30" valign="top" style='width:22.8pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>&nbsp;</p> </td> <td width="74" valign="bottom" style='width:55.15pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;layout-grid-mode:char'>136,426</p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" align="left" width="565" style='border-collapse:collapse;margin-left:6.75pt;margin-right:6.75pt'> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:center'>2012</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:center'>2011</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>Revenues from:</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Continuing operations</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Artist and project management services</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>1,931,005</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>1,106,507</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Publication of magazines</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>2,238,117</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>2,641,324</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Retail of video games and accessories </p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>643,473</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>1,623,956</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Corporate</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>-</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>-</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>4,812,595</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>5,371,787</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Discontinued operations</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>-</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>-</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>4,812,595</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>5,371,787</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>Segment profit/(loss) from: </p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Artist and project management services</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:5.0pt'>131,024</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt;text-indent:5.0pt'>(193,360)</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Publication of magazines</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(51,730)</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(212,221)</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Retail of video games and accessories </p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(51,860)</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(68,251)</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Corporate</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(561,921)</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(560,482)</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(534,487)</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(1,034,314)</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Discontinued operations</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>-</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>878,622</p> </td> </tr> <tr align="left"> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(534,487)</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>(155,692)</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:15.0pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:1.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> </table> <!--egx--><p style='margin-bottom:0in;margin-bottom:.0001pt'>&nbsp;</p> <table border="0" cellspacing="0" cellpadding="0" align="left" width="565" style='border-collapse:collapse;margin-left:6.75pt;margin-right:6.75pt'> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>Segment assets:</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="center" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:center'>2012</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="center" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="center" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:center'>2011</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:15.0pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:1.4pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Artist and project management services </p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>582,568</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>291,861</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Publication of magazines </p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>184,859</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>482,882</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Retail of video games and accessories</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>42,422</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>121,772</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Corporate</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>78,911</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>32,685</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>888,760</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>929,200</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph;text-indent:13.2pt'>Discontinued operations</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>-</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>-</p> </td> </tr> <tr style='height:13.5pt'> <td width="329" valign="top" style='width:246.4pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-bottom:0in;margin-bottom:.0001pt;text-align:justify;text-justify:inter-ideograph'>&nbsp;</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="94" valign="top" style='width:70.85pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>888,760</p> </td> <td width="19" valign="top" style='width:14.2pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p align="right" style='margin-bottom:0in;margin-bottom:.0001pt;text-align:right'>$</p> </td> <td width="104" valign="top" style='width:77.95pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt;height:13.5pt'> <p style='margin-top:0in;margin-right:2.2pt;margin-bottom:0in;margin-left:0in;margin-bottom:.0001pt'>929,200</p> </td> </tr> </table> 1622432 0.1282 0.1282 0.1282 0.1282 2300000 230000 3690000 438372 6795 7109 3643 45461 10438 52570 140495 12682 0 84720 144813 338 84720 145151 2051 333743 19195000 38128 109583 51314 38128 160897 256400 2016-05-31 128200 Note 1 bears a call back option exercisable by Holder 1 on the unused portion of Note 1 after 12 months from the date of Note 1. Note 1 can be converted into common stock of the Company by Holder 1 under certain conditions. 96899 0.0800 50000 2013-03-04 The outstanding principal balance plus any accrued interest under Note 2 is convertible into common stock of the Company after 180 days from the date of issued with a 42% discount over the convertible price upon the option of Holder 2. The conversion price is determined by the average of the lowest 3 closing bid prices out of the 10 days prior to the Conversion Date. 37655 39655 2000 37655 12000 515021 20690 As of December 31, 2012, Note 2 qualified to be converted 1,622,432 shares of common stock under the conditions of Note 2 and is therefore dilutive. 0.0800 0.0800 32500 53000 2013-06-24 2013-09-14 The outstanding principal balance plus any accrued interest under both Note 3and Note 4 are convertible into common stock of the Company after 180 days from the date of issued with a 42% discount over the convertible price upon the option of Holder 2. The conversion price is determined by the average of the lowest 3 closing bid prices out of the 10 days prior to the Conversion Date. 24476 39914 10024 506 9518 4437 224 4213 42524 57437 31301 128200 68965 42524 57437 168926 200227 128200 519200 22425 -496775 149450 56593 42100 0.10 5000 0.10 225000 85600 12000 28366000 28366000 28500000 27098361 9410000 8767240 3400000 2666120 2105000 805191 50000 18716 2250000 799180 4280000 315738 515021 16886 78876021 68853432 51386 2730 54116 92305 247745 90338 46088 136426 1931005 1106507 2238117 2641324 643473 1623956 4812595 5371787 4812595 5371787 131024 -193360 -51730 -212221 -51860 -68251 -561921 -560482 -1034314 878622 -534487 -155692 958855 -80233 582568 291861 184859 482882 42422 121772 78911 32685 888760 929200 888760 929200 -8457669 -492272 -534487 1622432 40000 10600000 80498453 0001382112 2012-01-01 2012-12-31 0001382112 2013-03-28 0001382112 2012-06-30 0001382112 2012-12-31 0001382112 2011-12-31 0001382112 2011-01-01 2011-12-31 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NET LOSS BEFORE PROVISION FOR INCOME TAXES NET LOSS BEFORE PROVISION FOR INCOME TAXES Common stock, Par value $0.01; 375,000,000 shares authorized; 78,876,021 and 28,366,000 shares issued and outstanding as of December 31, 2012and 2011, respectively Convertible note, long term Debt Conversion [Member] Artist and project management services Share Price Debt Security Debt Instrument, Decrease, Repayments Continuing operations {3} Continuing operations Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. 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While for technical reasons this element has no balance attribute, the default assumption is a debit balance consistent with its label. Changes in operating assets and liabilities: Cash flows from operating activities Other expenses Other expenses EXPENSES Common Stock, shares issued Entity Filer Category Stock Subscription Receivable [Member] Final settlement Discontinued Operations Legal Entity Operating Leases, Future Minimum Payments, Due in Rolling Year Two Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures Major Types of Debt Securities Debt Instrument, Periodic Payment Schedule of Future Minimum Rental Payments for Operating Leases Schedule of Inventory Table (b) Cash and Cash Equivalents Note 17- Going Concern Discontinued operations {3} Discontinued operations Cash and cash equivalents for discontinued operations during the reporting period. Net cash used in operating activities Net cash used in operating activities Interest income receivable Income Statement Disposal Group, Including Discontinued Operation, Revenue Interest Expense, Debt Note 4 Foreign Currency Exchange Rate, Translation Interest and Other Income {1} Interest and Other Income Convertible Notes Table (c) Inventory (a) Economic and Political Risk Note 2 - Principles of Consolidation Net cash used in discontinued investing activities Decrease/(increase) in inventories Foreign currency translation adjustments, continuing operations Foreign currency translation adjustments, continuing operations DILUTED (LOSS)/EARNINGS PER SHARE {1} DILUTED (LOSS)/EARNINGS PER SHARE Arising from continuing operations {2} Arising from continuing operations Accumulated deficits Accumulated deficits Deposits, prepaid expenses and other receivables Entity Common Stock, Shares Outstanding Document and Entity Information: Debt Instrument, Unamortized Discount Average Exchange Rate For The Period Exchange rate for the period Schedule Of Segment Reporting Information, By Segment 2 Tables/Schedules (g) Earnings Per Share Effect of foreign exchange rate changes on cash and cash equivalents Net cash (used in)/provided by financing activities Net cash (used in)/provided by financing activities Net cash used in investing activities Net cash used in investing activities Cash flows from investing activities Net cash used in discontinued operating activities Net loss, discontinued operations Common Stock BASIC (LOSS)/EARNINGS PER SHARE {1} BASIC (LOSS)/EARNINGS PER SHARE Arising from discontinued operations {2} Arising from discontinued operations TOTAL COMPREHENSIVE (LOSS) / INCOME FOR THE YEAR TOTAL COMPREHENSIVE (LOSS) / INCOME FOR THE YEAR Interest income TOTALSHAREHOLDERS' EQUITY TOTALSHAREHOLDERS' EQUITY Stockholders' Equity Stockholders' Equity Unearned revenue Inventories Statement {1} Statement Document Fiscal Period Focus Corporate [Member] Operating Leases, Future Minimum Payments Due Convertible Note Partial Settlement Professional Services Debt Instrument, Interest Rate, Stated Percentage Long-term Debt, Type Note 16 - Segment Reporting Continuing operations {2} Continuing operations Includes currency on hand as well as demand deposits with banks or financial institutions. It also includes other kinds of accounts that have the general characteristics of demand deposits in that the Entity may deposit additional funds at any time and also effectively may withdraw funds at any time without prior notice or penalty. Cash equivalents, excluding items classified as marketable securities, include short-term, highly liquid investments that are both readily convertible to known amounts of cash, and so near their maturity that they present minimal risk of changes in value because of changes in interest rates. Generally, only investments with original maturities of three months or less qualify under that definition. Original maturity means original maturity to the entity holding the investment. For example, both a three-month US Treasury bill and a three-year Treasury note purchased three months from maturity qualify as cash equivalents. However, a Treasury note purchased three years ago does not become a cash equivalent when its remaining maturity is three months. Compensating balance arrangements that do not legally restrict the withdrawal or usage of cash amounts may be reported as Cash and Cash Equivalents, while legally restricted deposits held as compensating balances against borrowing arrangements, contracts entered into with others, or company statements of intention with regard to particular deposits are not generally reported as cash and cash equivalents. Includes cash and cash equivalents associated with the entity's continuing operations. Excludes cash and cash equivalents associated with the disposal group (and discontinued operation). Decrease in subscription receivable GROSS PROFIT GROSS PROFIT Entity Well-known Seasoned Issuer GME Holdings Limited (GMEH) [Member] Publication of magazines Less: Subscription receivable {1} Less: Subscription receivable Total Interest Relation Total Interest Relation. Debt Instrument, Convertible, Effective Interest Rate Related Party {1} Related Party Schedule of Accounts Payable and Accrued Liabilities Table Effect of foreign exchange rate changes net Effect of foreign exchange rate changes net Discontinued operations Net Increase In Cash And Cash Equivalents Discontinued Operations during the period Advance to short term loan receivable Advance to short term loan receivable Issue of shares, shares Equity Components Additional paid in capital Amount due to related parties Entity Public Float Document Period End Date Financing [Axis] Corporate Debt Instrument, Call Feature Short term loan amount Short term loan amount Schedule of Weighted Average Number of Shares Table Notes Continuing operations {1} Continuing operations Repayment of convertible note Adjustments to reconcile net income to net cash flows used in operating activities for: Foreign currency translation adjustments, discontinued operations Foreign currency translation adjustments, discontinued operations REVENUES Common Stock, shares authorized Less: Subscription receivable Less: Subscription receivable LONG-TERM LIABILITIES Current Fiscal Year End Date Amendment Flag Document Type Mr Yau Wai Hung [Member] Subscription revenue Interest and Fee Income, Loans and Leases Inventory, Raw Materials, Gross Note 10 - Amount Due To Related Parties AMOUNT DUE TO RELATED PARTIES Note 3- Summary of Significant Accounting Policies Issue of shares unpaid Issue of shares unpaid Conversion of debt to shares, value Share-based payment, value COST OF SALES TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY Accrued expenses and other payables Capital Raising [Member] Offering Shares Common stock issuable to one non affiliate investor as disclosed on our Form S-1. Expected annual lease payment 2012 Lease payment to CCL Short-Term Borrowing Related Party (l) Recent Accounting Pronouncements Note 13 - Interest Expenses Note 11 - Convertible Notes Note 9 - Short-term Borrowings Net (decrease) /increase in cash and cash equivalents Net (decrease) /increase in cash and cash equivalents Increase in accounts payable (Decrease)/increase in amount due to a director Amortization of discount on Convertible Notes Conversion of convertible debt to shares, value Arising from continuing operations {1} Arising from continuing operations Comprehensive Income (loss) from continuing operations for the period. Gain on disposal of discontinued operations TOTAL OTHER EXPENSE TOTAL OTHER EXPENSE Other income LOSS FROM CONTINUING OPERATIONS LOSS FROM CONTINUING OPERATIONS SHAREHOLDERS' EQUITY Cash and cash equivalents Cash and cash equivalents at beginning of year net Cash and cash equivalents at end of year net Entity Voluntary Filers Great China Games Limited (GCG) [Member] Retail of video games and accessories Equity Component Professional Services 2 Debt Instrument, Convertible, Beneficial Conversion Feature Debt Instrument, Convertible, Terms of Conversion Feature (i) Comprehensive Income (f) Revenue Recognition Note 5 - Short Term Loan Receivable Discontinued operations {2} Discontinued operations Cash and cash equivalents for discontinued operations during the reporting period. 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Note 3- Summary of Significant Accounting Policies: (k) Stock-based Compensation (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Share-based payment, shares 2,300,000 3,690,000
Share-based payment, value $ 230,000 $ 438,372
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Note 16 - Segment Reporting (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Gain on disposal of discontinued operations   $ 958,855
Net loss 534,487 155,692
WaterScientificMember
   
Gain on disposal of discontinued operations   958,855
Net loss   $ 80,233
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Note 12 - Weighted Average Number of Shares For Earnings Per Share Calculation (Details) (USD $)
0 Months Ended 12 Months Ended 0 Months Ended
Jan. 19, 2012
Dec. 31, 2012
Jan. 26, 2012
Short-Term Borrowing
Mar. 20, 2012
Short-Term Borrowing 2
Aug. 14, 2012
Short-Term Borrowing 3
Aug. 17, 2012
Professional Services
Aug. 24, 2012
Professional Services 2
Dec. 20, 2012
Short-Term Borrowing 4
Dec. 05, 2012
Short-Term Borrowing 4
Dec. 20, 2012
Convertible Note Partial Settlement
Conversion of convertible debt to shares, shares 28,500,000   9,410,000 3,400,000 2,105,000       4,280,000 515,021
Conversion of convertible debt to shares, value $ 519,200   $ 149,450 $ 56,593 $ 42,100     $ 12,000 $ 85,600  
Subscription revenue   22,425                
Less: Subscription receivable   496,775                
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures           50,000 2,250,000      
Share Price           $ 0.10 $ 0.10      
Stock Issued During Period, Value, Share-based Compensation, Net of Forfeitures           $ 5,000 $ 225,000      
XML 15 R55.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 16 - Segment Reporting: Schedule Of Segment Reporting Information, By Segment 2 (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
TOTAL ASSETS $ 888,760 $ 929,200
Artist and project management services
   
TOTAL ASSETS 582,568 291,861
Publication of magazines
   
TOTAL ASSETS 184,859 482,882
Retail of video games and accessories
   
TOTAL ASSETS 42,422 121,772
Corporate
   
TOTAL ASSETS 78,911 32,685
Continued Operations
   
TOTAL ASSETS $ 888,760 $ 929,200
XML 16 R46.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 11 - Convertible Notes (Details) (USD $)
12 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2012
Note 1
Jun. 01, 2011
Note 1
Dec. 31, 2012
Note 2
Dec. 31, 2012
Note 2
Dec. 31, 2012
Note 3
Dec. 12, 2012
Note 3
Oct. 22, 2012
Note 3
Dec. 31, 2012
Note 4
Dec. 12, 2012
Note 4
Debt Instrument, Face Amount       $ 256,400 $ 50,000 $ 50,000     $ 32,500   $ 53,000
Debt instrument fully received     May 31, 2016     Mar. 04, 2013 Jun. 24, 2013     Sep. 14, 2013  
Debt Instrument, Periodic Payment     128,200                
Debt Instrument, Call Feature     Note 1 bears a call back option exercisable by Holder 1 on the unused portion of Note 1 after 12 months from the date of Note 1.                
Debt Instrument, Convertible, Terms of Conversion Feature     Note 1 can be converted into common stock of the Company by Holder 1 under certain conditions.   As of December 31, 2012, Note 2 qualified to be converted 1,622,432 shares of common stock under the conditions of Note 2 and is therefore dilutive. The outstanding principal balance plus any accrued interest under Note 2 is convertible into common stock of the Company after 180 days from the date of issued with a 42% discount over the convertible price upon the option of Holder 2. The conversion price is determined by the average of the lowest 3 closing bid prices out of the 10 days prior to the Conversion Date. The outstanding principal balance plus any accrued interest under both Note 3and Note 4 are convertible into common stock of the Company after 180 days from the date of issued with a 42% discount over the convertible price upon the option of Holder 2. The conversion price is determined by the average of the lowest 3 closing bid prices out of the 10 days prior to the Conversion Date.        
Debt Instrument, Decrease, Repayments     96,899                
Debt Instrument, Convertible, Effective Interest Rate           8.00%          
Debt Instrument, Convertible, Beneficial Conversion Feature           37,655          
Total Interest Relation           39,655       4,437  
Debt Instrument, Convertible, Interest Expense           2,000 506     224  
Amortization of Debt Discount (Premium)           37,655 9,518     4,213  
Conversion of debt to shares 333,743 1,389,095       12,000          
Debt Conversion, Converted Instrument, Shares Issued 19,195,000         515,021          
Convertible notes 168,926       68,965 68,965 42,524 42,524   57,437 57,437
Extinguishment of Debt, Amount           20,690          
Debt Instrument, Interest Rate, Stated Percentage                 8.00%   8.00%
Debt Instrument, Unamortized Discount             24,476     39,914  
Interest Expense, Debt             $ 10,024        
XML 17 R33.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 14 - Related Party Transaction: Schedule of Related Party Transactions (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
Schedule of Related Party Transactions

 

 

 

2012

 

2011

From continuing operations

 

 

 

 

China Culture Limited

 

 

 

 

Rental charges paid by Company for offices premises

$

92,305

$

247,745

 

 

 

 

 

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Note 18- Subsequent Events (Details) (USD $)
0 Months Ended 0 Months Ended
Jan. 19, 2012
Mar. 13, 2013
Jan. 02, 2013
Final settlement
Conversion of convertible debt to shares, shares 28,500,000   1,622,432
Conversion of convertible debt to shares, value $ 519,200   $ 40,000
Offering Shares   10,600,000  
XML 20 R25.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 3- Summary of Significant Accounting Policies (Policies)
12 Months Ended
Dec. 31, 2012
Policies  
(a) Economic and Political Risk

(a)  Economic and political risk

 

The Company’s continuing operations and discontinued operations are conducted in Hong Kong. Accordingly, the political, economic, and legal environments in the Hong Kong may influence the Company’s business, financial condition, and results of operations.

 

The Company’s major operations in the Hong Kong are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.

(b) Cash and Cash Equivalents

(b)  Cash and cash equivalents

 

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.  The Company’s continued operations maintain bank accounts in Hong Kong. The Company’s discontinued operations maintain bank accounts in Hong Kong and China.

(c) Inventory

(c)  Inventory

 

Inventories consisting of raw materials and finished goods are stated at the lower of cost or net realizable value. Inventory costs are calculated using a first in first out (FIFO) method of accounting.

(d) Income Tax

(d) Income tax

 

Income taxes are based on pre-tax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. The Company periodically assesses the need to establish valuation allowances against its deferred tax assets to the extent the Company no longer believes it is more likely than not that the tax assets will be fully utilized.

 

The Company evaluates a tax position to determine whether it is more likely than not that the tax position will be sustained upon examination, based upon the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is subject to a measurement assessment to determine the amount of benefit to recognize and the appropriate reserve to establish, if any. If a tax position does not meet the more-likely-than-not recognition threshold, no benefit is recognized

 

In accordance with the relevant tax laws and regulations of Hong Kong, the applicable corporation income tax rate was 16.5% on assessable profits, if any, for the years ended December 31, 2012 and 2011, respectively.

(e) Fair Value of Financial Instruments

(e) Fair value of financial instruments

 

The Company’s financial instruments primarily consist of cash and cash equivalents, amount due from a related company, prepaid expenses and accounts receivables, other receivables, accounts payable, accrued expenses and other payables, unearned revenue, short term borrowings, convertible note and amount due to related parties.

 

The estimated fair value amounts have been determined by the Company, using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.

 

As of the year-end dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented, due to the short maturities of these instruments and the fact that the interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profiles at respective year ends.

(f) Revenue Recognition

(f) Revenue recognition

 

Revenue represents the invoiced value of goods sold or services rendered during the year, net of sales discounts and returns. Generally revenue is recognized when all of the following criteria are met:

 

-

Persuasive evidence of an arrangement exists,

-

Delivery has occurred or services have been rendered,

-

The seller’s price to the buyer is fixed or determinable, and

-

Collectability is reasonably assured

 

Revenue recognition policies for each of the major products and services of continuing operations are illustrated as follows:

 

(i)        Revenue from provision of artist management, event management, and promotion for its clients is recognized when services are rendered.

(ii)      Revenue from traditional paper magazines sales is recognized when magazines are sold to customers, net of sales return.

(iii)     Revenue from the provision of advertising services is recognized when services are rendered.

(iv)    Revenue from electronic content sales like iPhone and Android applications is recognized when receipt is confirmed by service providers. In 2012, the revenue generated from digital content is not significant to the publication of magazines operation.

(v)      Revenue from retail of video games and accessories is recognized upon delivery of goods to customers.

 

For discontinued ecological products operations, bottles productions and OEM bottled water operations, revenue is recognized when delivery has occurred.

(g) Earnings Per Share

(g)  Earnings per share

 

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. For the years ended December 31, 2012, there are a total of 1,622,432 shares of common stock included in the calculation of diluted weighted average number of shares outstanding. They are not included in the calculation of diluted (loss) / earnings per share because they are considered anti dilutive when computing diluted (loss) / earnings per share.

(h) Use of Estimates

(h) Use of estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Actual results may differ from those estimates.

(i) Comprehensive Income

(i) Comprehensive income

 

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements.  Comprehensive income includes net income and the foreign currency translation gain, net of tax.

(j) Foreign Currency Translation

(j) Foreign currency translation

 

The accompanying consolidated financial statements are presented in United States Dollars (US$). The functional currency of the Company is the Hong Kong Dollar (HK$). Capital accounts of the consolidated financial statements are translated into United States dollars from HK$ at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the year.  The translation rates are as follows:

 

 

December 31, 2012

 

December 31, 2011

 

 

 

 

 

 

 

Year end HK$ : US$ exchange rate

 

0.1282

 

0.1282

 

Average period/yearly HK$ : US$ exchange rate           

 

0.1282

 

0.1282

 

(k) Stock-based Compensation

(k) Stock-based compensation

 

The Company recognizes compensation expense for all stock-based payment awards made to employees, contractors and non-employee directors. Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period.

 

During the year ended December 31, 2012, the Company issued 2,300,000 shares in aggregate for services rendered to the Company. The fair value of $230,000, which is determined with refer to closing stock price on the dates of issue, was charged to operation as general and administrative expenses for the year then ended.

 

During the year ended December 31, 2011, the Company issued 3,690,000 shares in aggregate for employee’s compensation and services rendered to the Company. The fair value of $438,372 is determined with refer to the closing stock price on the date of issue.

(l) Recent Accounting Pronouncements

(l) Recent accounting pronouncements

 

In December 2011, the Financial Accounting Standards Board ("FASB") issued ASU 2011-11, Balance Sheet (Topic 210) Disclosures about Offsetting Assets and Liabilities. The amendments in this update will enhance disclosures required by U.S. GAAP by requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with either ASC 210-20-45 or ASC 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either ASC 210-20-45 or ASC 815-10-45. This information will enable users of an entity's financial statements to evaluate the effect or potential effect of netting arrangements on an entity's financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this Update. The amendments in this Update are effective for annual periods for fiscal years beginning on or after January 1, 2013. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

 

In December 2011, the FASB has issued Accounting Standards Update (ASU) No.2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU No. 2011-11 is intended to supersede certain pending paragraphs in Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, to effectively defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. The amendments will be temporary to allow the Board time to redeliberate the presentation requirements for reclassifications out of accumulated other comprehensive income for annual and interim financial statements for public, private, and non-profit entities. All other requirements in ASU No. 2011-05 are not affected by ASU No. 2011-12, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. Nonpublic entities should begin applying these requirements for fiscal years ending after December 15, 2012, and interim and annual periods thereafter. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

 

In August 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-03, Technical Amendments and Corrections to SEC Sections. This ASU amends various SEC paragraphs pursuant to SAB 114, SEC Release No. 33-9250, and ASU 2010-22, which amend or rescind portions of certain SAB Topics. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

 

In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-04, Technical Corrections and Improvements. This ASU make technical corrections, clarifications, and limited-scope improvements to various Topics throughout the Codification. The amendments in this ASU that will not have transition guidance will be effective upon issuance for both public entities and nonpublic entities. For public entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. For nonpublic entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2013.The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

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Note 13 - Interest Expenses: Interest and Other Income (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Amortization of discount on Convertible Notes $ 51,386
Interest Expense, Debt, Excluding Amortization 2,730
Interest expense $ 54,116
XML 22 R42.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 7 - Accrued Expenses and Other Payables: Schedule of Accounts Payable and Accrued Liabilities Table (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Accrued expenses and other payables $ 84,720 $ 144,813
Accounts Payable, Other, Current   $ 338
XML 23 R37.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 3- Summary of Significant Accounting Policies: (g) Earnings Per Share (Details)
12 Months Ended
Dec. 31, 2012
Weighted Average Number Diluted Shares Outstanding Adjustment 1,622,432
XML 24 R52.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 15 - Contingencies and Commitments: Schedule of Future Minimum Rental Payments for Operating Leases (Details) (USD $)
Dec. 31, 2012
Expected annual lease payment 2012 $ 90,338
Operating Leases, Future Minimum Payments, Due in Rolling Year Two 46,088
Operating Leases, Future Minimum Payments Due $ 136,426
XML 25 R47.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 11 - Convertible Notes: Convertible Notes Table (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Dec. 31, 2012
Note 2
Dec. 31, 2012
Note 3
Dec. 12, 2012
Note 3
Dec. 31, 2012
Note 4
Dec. 12, 2012
Note 4
Convertible Debt, Noncurrent $ 31,301 $ 128,200          
Convertible notes 168,926   68,965 42,524 42,524 57,437 57,437
Convertible Notes Payable $ 200,227 $ 128,200          
XML 26 R9.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 3- Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2012
Notes  
Note 3- Summary of Significant Accounting Policies

NOTE 3– SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

(a)  Economic and political risk

 

The Company’s continuing operations and discontinued operations are conducted in Hong Kong. Accordingly, the political, economic, and legal environments in the Hong Kong may influence the Company’s business, financial condition, and results of operations.

 

The Company’s major operations in the Hong Kong are subject to special considerations and significant risks not typically associated with companies in North America and Western Europe. These include risks associated with, among others, the political, economic, and legal environment. The Company’s results may be adversely affected by changes in governmental policies with respect to laws and regulations, anti-inflationary measures, and rates and methods of taxation, among other things.

 

(b)  Cash and cash equivalents

 

The Company considers all highly liquid investments purchased with original maturities of three months or less to be cash equivalents.  The Company’s continued operations maintain bank accounts in Hong Kong. The Company’s discontinued operations maintain bank accounts in Hong Kong and China.

 

(c)  Inventory

 

Inventories consisting of raw materials and finished goods are stated at the lower of cost or net realizable value. Inventory costs are calculated using a first in first out (FIFO) method of accounting.

 

(d) Income tax

 

Income taxes are based on pre-tax financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary differences between the tax bases of assets and liabilities and their reported amounts. The Company periodically assesses the need to establish valuation allowances against its deferred tax assets to the extent the Company no longer believes it is more likely than not that the tax assets will be fully utilized.

 

The Company evaluates a tax position to determine whether it is more likely than not that the tax position will be sustained upon examination, based upon the technical merits of the position. A tax position that meets the more-likely-than-not recognition threshold is subject to a measurement assessment to determine the amount of benefit to recognize and the appropriate reserve to establish, if any. If a tax position does not meet the more-likely-than-not recognition threshold, no benefit is recognized

 

In accordance with the relevant tax laws and regulations of Hong Kong, the applicable corporation income tax rate was 16.5% on assessable profits, if any, for the years ended December 31, 2012 and 2011, respectively.

 

(e) Fair value of financial instruments

 

The Company’s financial instruments primarily consist of cash and cash equivalents, amount due from a related company, prepaid expenses and accounts receivables, other receivables, accounts payable, accrued expenses and other payables, unearned revenue, short term borrowings, convertible note and amount due to related parties.

 

The estimated fair value amounts have been determined by the Company, using available market information or other appropriate valuation methodologies. However, considerable judgment is required in interpreting market data to develop estimates of fair value. Consequently, the estimates are not necessarily indicative of the amounts that could be realized or would be paid in a current market exchange.

 

As of the year-end dates, the estimated fair values of the financial instruments were not materially different from their carrying values as presented, due to the short maturities of these instruments and the fact that the interest rates on the borrowings approximate those that would have been available for loans of similar remaining maturity and risk profiles at respective year ends.

 

(f) Revenue recognition

 

Revenue represents the invoiced value of goods sold or services rendered during the year, net of sales discounts and returns. Generally revenue is recognized when all of the following criteria are met:

 

-

Persuasive evidence of an arrangement exists,

-

Delivery has occurred or services have been rendered,

-

The seller’s price to the buyer is fixed or determinable, and

-

Collectability is reasonably assured

 

Revenue recognition policies for each of the major products and services of continuing operations are illustrated as follows:

 

(i)        Revenue from provision of artist management, event management, and promotion for its clients is recognized when services are rendered.

(ii)      Revenue from traditional paper magazines sales is recognized when magazines are sold to customers, net of sales return.

(iii)     Revenue from the provision of advertising services is recognized when services are rendered.

(iv)    Revenue from electronic content sales like iPhone and Android applications is recognized when receipt is confirmed by service providers. In 2012, the revenue generated from digital content is not significant to the publication of magazines operation.

(v)      Revenue from retail of video games and accessories is recognized upon delivery of goods to customers.

 

For discontinued ecological products operations, bottles productions and OEM bottled water operations, revenue is recognized when delivery has occurred.

 

(g)  Earnings per share

 

Basic earnings per share is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares were dilutive. For the years ended December 31, 2012, there are a total of 1,622,432 shares of common stock included in the calculation of diluted weighted average number of shares outstanding. They are not included in the calculation of diluted (loss) / earnings per share because they are considered anti dilutive when computing diluted (loss) / earnings per share.

 

(h) Use of estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the year. Actual results may differ from those estimates.

 

(i) Comprehensive income

 

Comprehensive income is defined to include all changes in equity except those resulting from investments by owners and distributions to owners. Among other disclosures, all items that are required to be recognized under current accounting standards as components of comprehensive income are required to be reported in a financial statement that is presented with the same prominence as other financial statements.  Comprehensive income includes net income and the foreign currency translation gain, net of tax.

 

(j) Foreign currency translation

 

The accompanying consolidated financial statements are presented in United States Dollars (US$). The functional currency of the Company is the Hong Kong Dollar (HK$). Capital accounts of the consolidated financial statements are translated into United States dollars from HK$ at their historical exchange rates when the capital transactions occurred. Assets and liabilities are translated at the exchange rates as of balance sheet date. Income and expenditures are translated at the average exchange rate of the year.  The translation rates are as follows:

 

 

December 31, 2012

 

December 31, 2011

 

 

 

 

 

 

 

Year end HK$ : US$ exchange rate

 

0.1282

 

0.1282

 

Average period/yearly HK$ : US$ exchange rate           

 

0.1282

 

0.1282

 

 

(k) Stock-based compensation

 

The Company recognizes compensation expense for all stock-based payment awards made to employees, contractors and non-employee directors. Stock-based compensation expense is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period, which is generally the vesting period.

 

During the year ended December 31, 2012, the Company issued 2,300,000 shares in aggregate for services rendered to the Company. The fair value of $230,000, which is determined with refer to closing stock price on the dates of issue, was charged to operation as general and administrative expenses for the year then ended.

 

During the year ended December 31, 2011, the Company issued 3,690,000 shares in aggregate for employee’s compensation and services rendered to the Company. The fair value of $438,372 is determined with refer to the closing stock price on the date of issue.

 

(l) Recent accounting pronouncements

 

In December 2011, the Financial Accounting Standards Board ("FASB") issued ASU 2011-11, Balance Sheet (Topic 210) Disclosures about Offsetting Assets and Liabilities. The amendments in this update will enhance disclosures required by U.S. GAAP by requiring improved information about financial instruments and derivative instruments that are either (1) offset in accordance with either ASC 210-20-45 or ASC 815-10-45 or (2) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with either ASC 210-20-45 or ASC 815-10-45. This information will enable users of an entity's financial statements to evaluate the effect or potential effect of netting arrangements on an entity's financial position, including the effect or potential effect of rights of setoff associated with certain financial instruments and derivative instruments in the scope of this Update. The amendments in this Update are effective for annual periods for fiscal years beginning on or after January 1, 2013. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

 

In December 2011, the FASB has issued Accounting Standards Update (ASU) No.2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. ASU No. 2011-11 is intended to supersede certain pending paragraphs in Accounting Standards Update No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income, to effectively defer only those changes in Update 2011-05 that relate to the presentation of reclassification adjustments out of accumulated other comprehensive income. The amendments will be temporary to allow the Board time to redeliberate the presentation requirements for reclassifications out of accumulated other comprehensive income for annual and interim financial statements for public, private, and non-profit entities. All other requirements in ASU No. 2011-05 are not affected by ASU No. 2011-12, including the requirement to report comprehensive income either in a single continuous financial statement or in two separate but consecutive financial statements. Public entities should apply these requirements for fiscal years, and interim periods within those years, beginning after December 15, 2011. Nonpublic entities should begin applying these requirements for fiscal years ending after December 15, 2012, and interim and annual periods thereafter. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

 

In August 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-03, Technical Amendments and Corrections to SEC Sections. This ASU amends various SEC paragraphs pursuant to SAB 114, SEC Release No. 33-9250, and ASU 2010-22, which amend or rescind portions of certain SAB Topics. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

 

In October 2012, FASB has issued Accounting Standards Update (ASU) No. 2012-04, Technical Corrections and Improvements. This ASU make technical corrections, clarifications, and limited-scope improvements to various Topics throughout the Codification. The amendments in this ASU that will not have transition guidance will be effective upon issuance for both public entities and nonpublic entities. For public entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2012. For nonpublic entities, the amendments that are subject to the transition guidance will be effective for fiscal periods beginning after December 15, 2013.The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.

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M("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@ M("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@ M("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@ M("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@ M("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@ M("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@ M("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N M/CPO=&0^#0H@("`@("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N M/CPO=&0^#0H@("`@("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@("`@(#QT M9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@("`@(#QT M9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@ M("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@ M("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@ M("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@ M("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@ M("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@ M("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@ M("`@(#QT9"!C;&%S'0O:F%V87-C3X-"B`@("`\=&%B;&4@8VQA&-L=61I;F<@06UOF%T:6]N 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M'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@("`@(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@("`\+W1R/@T*("`@("`@ M/'1R(&-L87-S/3-$'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@("`@ M(#QT9"!C;&%S'0^/'-P86X^/"]S<&%N/CPO=&0^#0H@("`@("`\ M+W1R/@T*("`@("`@/'1R(&-L87-S/3-$'0O:F%V87-C3X-"B`@("`\=&%B;&4@8VQA3X- M"CPO:'1M;#X-"@T*+2TM+2TM/5].97AT4&%R=%]E-&,S-3'0O:'1M M;#L@8VAA'0^/'-P86X^/"]S<&%N/CPO=&0^ M#0H@("`@("`\+W1R/@T*("`@(#PO=&%B;&4^#0H@(#PO8F]D>3X-"CPO:'1M M;#X-"@T*+2TM+2TM/5].97AT4&%R=%]E-&,S-3'0O:'1M;#L@8VAA M&UL;G,Z;STS1")U'1087)T7V4T8S,U-S XML 29 R43.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 8 - Amount Due To A Director: Amount Due to a Director Table (Details) (USD $)
Dec. 31, 2011
Amount due to a director $ 2,051

XML 30 R29.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 10 - Amount Due To Related Parties: Schedule of amount due to related parties table (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
Schedule of amount due to related parties table

 

 

 

2012

 

2011

 

 

 

 

 

China Culture Limited (CCL)

$

38,128

$

109,583

Global Mania Empire Management Limited (GME)

 

-

 

51,314

 

 

 

 

 

Total amount due to related parties

$

38,128

$

160,897

 

 

 

 

 

XML 31 R28.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 8 - Amount Due To A Director: Amount Due to a Director Table (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
Amount Due to a Director Table

 

 

 

2012

 

2011

 

 

 

 

 

Mr. Yau Wai Hung

$

-

$

2,051

XML 32 R56.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 17- Going Concern (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Accumulated deficits $ 8,457,669 $ 7,923,182
Working capital 492,272  
Net loss continuing operating activities $ 534,487 $ 1,034,314
XML 33 R44.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 9 - Short-term Borrowings (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Conversion of debt to shares $ 333,743 $ 1,389,095
Debt Conversion, Converted Instrument, Shares Issued 19,195,000  
XML 34 R30.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 11 - Convertible Notes: Convertible Notes Table (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
Convertible Notes Table

 

 

 

2012

 

2011

Noncurrent liabilities:

 

 

 

 

Non-interest bearing convertible note

$

31,301

$

128,200

 

 

 

 

 

Current liabilities:

 

 

 

 

8% convertible note 2, net (including fair value adjustment on option $ 37,655, accrued interest expense $2,000,andsettlement by shares totaling of $20,690)

 

68,965

 

-

8% convertible note 3, net (including fair value adjustment on option $ 24,476, accrued interest expense $506, net of unamortized discount $14,958)

 

42,524

 

-

8% convertible note 4, net (including fair value adjustment on option $ 39,914, accrued interest expense $224, net of unamortized discount $35,701)

 

57,437

 

-

 

 

168,926

 

-

 

 

 

 

 

Total convertible note outstanding

$

200,227

$

128,200

 

 

 

 

 

XML 35 R31.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 12 - Weighted Average Number of Shares For Earnings Per Share Calculation: Schedule of Weighted Average Number of Shares Table (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
Schedule of Weighted Average Number of Shares Table

 

 

2012

 

Number

of shares

 

Weighted average

number of shares

 

 

 

 

At January 1, 2012

28,366,000

 

28,366,000

Shares issued on January 19, 2012 for debt conversion

28,500,000

 

27,098,361

Shares issued on January 26, 2012 for debt conversion

9,410,000

 

8,767,240

Shares issued on March 20, 2012 for debt conversion

3,400,000

 

2,666,120

Shares issued on August 14, 2012 for debt conversion

2,105,000

 

805,191

Shares issued on August 17,2012 for share based payment

50,000

 

18,716

Shares issued on August 24 ,2012 for share based payment

2,250,000

 

799,180

Shares issued on December 5, 2012 for debt conversion

4,280,000

 

315,738

Shares issued on December 20, 2012 for debt conversion

515,021

 

16,886

 

 

 

 

At December 31, 2012

78,876,021

 

68,853,432

 

 

 

 

XML 36 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 2 - Principles of Consolidation
12 Months Ended
Dec. 31, 2012
Notes  
Note 2 - Principles of Consolidation

NOTE 2 – PRINCIPLES OF CONSOLIDATION

 

The accompanying consolidated financial statements include the accounts of the Company and the Company’s subsidiaries. The consolidated financial statements are prepared in accordance with generally accepted accounting principles used in the United States of America, and all significant intercompany balances and transactions have been eliminated.

 

The functional currency for the majority of the Company’s continuing and discontinued operations is the Hong Kong Dollar (“HKD”), while the reporting currency is the US Dollar.

XML 37 R32.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 13 - Interest Expenses: Interest and Other Income (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
Interest and Other Income

 

 

 

2012

 

2011

 

 

 

 

 

Amortization on discount of convertible note

$

51,386

$

-

Accrued interest on convertible note

 

2,730

 

-

Total

$

54,116

$

-

XML 38 R40.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 4 - Inventories: Schedule of Inventory Table (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Inventory, Raw Materials, Gross $ 6,795 $ 7,109
Other Inventory, Gross 3,643 45,461
Inventories $ 10,438 $ 52,570
XML 39 R53.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 16 - Segment Reporting: Schedule of Segment Reporting Information, by Segment (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
REVENUES $ 4,812,595 $ 5,371,787
Net loss continuing operating activities (534,487) (1,034,314)
NET LOSS (534,487) (155,692)
Artist and project management services
   
REVENUES 1,931,005 1,106,507
Net loss continuing operating activities 131,024 (193,360)
Publication of magazines
   
REVENUES 2,238,117 2,641,324
Net loss continuing operating activities (51,730) (212,221)
Retail of video games and accessories
   
REVENUES 643,473 1,623,956
Net loss continuing operating activities (51,860) (68,251)
Corporate
   
Net loss continuing operating activities (561,921) (560,482)
Continued Operations
   
REVENUES 4,812,595 5,371,787
Discontinued Operations
   
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest   $ 878,622
XML 40 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED BALANCE SHEETS (USD $)
Dec. 31, 2012
Dec. 31, 2011
CURRENT ASSETS    
Cash and cash equivalents $ 218,773 $ 305,212
Accounts receivable 353,122 396,295
Inventories 10,438 52,570
Short term loan receivable 140,495  
Deposits, prepaid expenses and other receivables 165,932 175,123
Total current assets 888,760 929,200
TOTAL ASSETS 888,760 929,200
CURRENT LIABILITIES    
Accounts payable 997,911 792,482
Accrued expenses and other payables 84,720 145,151
Unearned revenue 27,691 20,588
Amount due to a director   2,051
Short-term borrowings 63,656 275,775
Amount due to related parties 38,128 160,897
Convertible notes 168,926  
Total current liabilities 1,381,032 1,396,944
LONG-TERM LIABILITIES    
Convertible note, long term 31,301 128,200
Total long-term liabilities 31,301 128,200
TOTAL LIABILITIES 1,412,333 1,525,144
SHAREHOLDERS' EQUITY    
Common stock, Par value $0.01; 375,000,000 shares authorized; 78,876,021 and 28,366,000 shares issued and outstanding as of December 31, 2012and 2011, respectively 788,761 283,660
Additional paid in capital 7,640,618 7,042,086
Accumulated deficits (8,457,669) (7,923,182)
Accumulated other comprehensive income 1,492 1,492
Less: Subscription receivable (496,775)  
TOTALSHAREHOLDERS' EQUITY (523,573) (595,944)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 888,760 $ 929,200
XML 41 R45.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 10 - Amount Due To Related Parties: Schedule of amount due to related parties table (Details) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Amount due to related parties $ 38,128 $ 160,897
China Culture Limited CCL
   
Amount due to related parties 38,128 109,583
Global Mania Empire Management Limited GME
   
Amount due to related parties   $ 51,314
XML 42 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Cash flows from operating activities    
Net loss continuing operating activities $ (534,487) $ (1,034,314)
Adjustments to reconcile net income to net cash flows used in operating activities for:    
Amortization of discount on Convertible Notes 51,386  
Accrued interest expense on Convertible Notes 2,730  
Interest income receivable (12,682)  
Share-based payments 230,000 438,372
Changes in operating assets and liabilities:    
Decrease/(increase) in accounts receivable 43,173 (396,295)
Decrease/(increase) in inventories 42,132 (52,570)
Decrease/(increase) in prepaid expenses 9,191 (175,123)
(Decrease)/increase in amount due to a director (2,051) 2,051
Increase in receipt in advance 7,103 20,588
Increase in accounts payable 205,429 792,482
(Decrease)/increase in accrued expenses and other payables (60,431) 142,375
Net cash used in continuing operating activities (18,507) (262,434)
Net cash used in discontinued operating activities   (144,522)
Net cash used in operating activities (18,507) (406,956)
Cash flows from investing activities    
Cash flows from continuing investing activities      
Net cash used in discontinued investing activities   (31,465)
Net cash used in investing activities   (31,465)
Cash flows from continuing financing activities    
Issue of convertible note 135,500 128,200
Repayment of convertible note (96,899)  
Decrease in subscription receivable 22,425  
Proceeds from short-term borrowings 121,624 275,775
Advance to short term loan receivable (127,813)  
Decrease /(increase)in amount due to related parties (122,769) 162,179
Net cash (used in)/provided by continuing financing activities (67,932) 566,154
Net cash provided by discontinued financing activities    116,483
Net cash (used in)/provided by financing activities (67,932) 682,637
Net (decrease)/increase in cash and cash equivalents    
Continuing operations (86,439) 303,720
Discontinued operations   (59,504)
Net (decrease) /increase in cash and cash equivalents (86,439) 244,216
Effect of foreign exchange rate changes on cash and cash equivalents    
Continuing operations   1,492
Discontinued operations   2,769
Effect of foreign exchange rate changes net   4,261
Cash and cash equivalents at beginning of year    
Continuing operations 305,212  
Discontinued operations   56,735
Cash and cash equivalents at beginning of year net 305,212 56,735
Cash and cash equivalents at end of year    
Continuing operations 218,773 305,212
Discontinued operations      
Cash and cash equivalents at end of year net 218,773 305,212
Non-cash financing activities    
Issue of shares unpaid 496,775  
Conversion of note to shares 20,690  
Conversion of debt to shares $ 333,743 $ 1,389,095
XML 43 R35.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 16 - Segment Reporting: Schedule of Segment Reporting Information, by Segment (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
Schedule of Segment Reporting Information, by Segment

 

 

 

2012

 

2011

Revenues from:

 

 

 

 

Continuing operations

 

 

 

 

Artist and project management services

$

1,931,005

$

1,106,507

Publication of magazines

 

2,238,117

 

2,641,324

Retail of video games and accessories

 

643,473

 

1,623,956

Corporate

 

-

 

-

 

$

4,812,595

$

5,371,787

Discontinued operations

 

-

 

-

 

$

4,812,595

$

5,371,787

 

 

 

 

 

Segment profit/(loss) from:

 

 

 

 

Artist and project management services

 

131,024

 

(193,360)

Publication of magazines

 

(51,730)

 

(212,221)

Retail of video games and accessories

$

(51,860)

$

(68,251)

Corporate

 

(561,921)

 

(560,482)

 

$

(534,487)

$

(1,034,314)

Discontinued operations

 

-

 

878,622

 

$

(534,487)

$

(155,692)

 

 

 

 

 

XML 44 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 16 - Segment Reporting
12 Months Ended
Dec. 31, 2012
Notes  
Note 16 - Segment Reporting

NOTE 16 – SEGMENT REPORTING

 

The Company’s reportable segments of business include artist and project management services, publication of magazines and retail of video games and accessories.  Each of these segments is conducted in a separate corporation and each functions independently of the others. The Company has no sales between segments.

 

Financial information of the Company’s business segments is as follows:

 

 

 

2012

 

2011

Revenues from:

 

 

 

 

Continuing operations

 

 

 

 

Artist and project management services

$

1,931,005

$

1,106,507

Publication of magazines

 

2,238,117

 

2,641,324

Retail of video games and accessories

 

643,473

 

1,623,956

Corporate

 

-

 

-

 

$

4,812,595

$

5,371,787

Discontinued operations

 

-

 

-

 

$

4,812,595

$

5,371,787

 

 

 

 

 

Segment profit/(loss) from:

 

 

 

 

Artist and project management services

 

131,024

 

(193,360)

Publication of magazines

 

(51,730)

 

(212,221)

Retail of video games and accessories

$

(51,860)

$

(68,251)

Corporate

 

(561,921)

 

(560,482)

 

$

(534,487)

$

(1,034,314)

Discontinued operations

 

-

 

878,622

 

$

(534,487)

$

(155,692)

 

 

 

 

 

Segment result of discontinued operations in 2011 represents a gain of $958,855 on disposal of Water Scientific and net loss of $80,233 generated from Water Scientific up to March 31, 2011.

 

Segment assets:

 

2012

 

2011

 

 

 

 

 

Artist and project management services

$

582,568

$

291,861

Publication of magazines

 

184,859

 

482,882

Retail of video games and accessories

 

42,422

 

121,772

Corporate

 

78,911

 

32,685

 

$

888,760

$

929,200

Discontinued operations

 

-

 

-

 

$

888,760

$

929,200

 

XML 45 R36.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 16 - Segment Reporting: Schedule Of Segment Reporting Information, By Segment 2 (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
Schedule Of Segment Reporting Information, By Segment 2

 

Segment assets:

 

2012

 

2011

 

 

 

 

 

Artist and project management services

$

582,568

$

291,861

Publication of magazines

 

184,859

 

482,882

Retail of video games and accessories

 

42,422

 

121,772

Corporate

 

78,911

 

32,685

 

$

888,760

$

929,200

Discontinued operations

 

-

 

-

 

$

888,760

$

929,200

XML 46 R24.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 18- Subsequent Events
12 Months Ended
Dec. 31, 2012
Notes  
Note 18- Subsequent Events

NOTE 18– SUBSEQUENT EVENTS

 

On January 14, 2013 Mr. Cheung Wai Kit resigned as a director of the Company and Ms. Yum Ka Yan was appointed as a director of the Company. On that same day, Mr. Yau Wai Hung resigned as the Company’s Chief Executive Officer and Mr. Kwong Kwan Yin Roy was appointed as Chief Executive Officer and Chief Financial Officer.

 

During the period from January 2, 2013 to January 18, 2013, we issued a total of 1,622,432 shares common stock for final settlement of a convertible note totaling $40,000.

 

We are offering to sell up to 10,600,000 shares of common stock issuable to one non affiliate investor as disclosed on our Form S-1 filed with the Securities and Exchange Commission on March 13, 2013.

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XML 48 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 1 - Organization and Principal Activities
12 Months Ended
Dec. 31, 2012
Notes  
Note 1 - Organization and Principal Activities

NOTE 1 – ORGANIZATION AND PRINCIPAL ACTIVITIES

 

Great China Mania Holdings, Inc. (“GMEC” or the “Company”) was incorporated in Florida on July 8, 1983. In February 2011, three new subsidiaries of the Company were formed and have since maintained operations. These subsidiaries are GME Holdings Limited, Great China Games Limited and Great China Media Limited. In June 2011, another new subsidiary GMEC Ventures Limited, a Hong Kong company, was formed and maintained for holding future investment if any. As of the date of this filing, our corporate structure is as follows:

 

GMEC owns two wholly-owned BVI subsidiary known as Sharp Achieve Holdings Limited (“Sharp Achieve”) and Super China Global Limited (SCGL). SCGL has two subsidiaries: 1) GME Holdings Limited (“GMEH”) which was incorporated February 18, 2011 and specialized in artiste and project management services; and 2) GMEC Ventures Limited (“GMEV”) was incorporated June 1, 2011and specialized in investment holding. Sharp Achieve has two subsidiaries: 1) Great China Media Limited (“GCM”) which was incorporated February 1, 2011 and specialized in publication of magazines; 2) Great China Games Limited (“GCG”) which was incorporated February 1, 2011and specialized in retail operation of video games and accessories

 

On March 16, 2011, the Company amended its Articles of Incorporation and changed the name of the Company from “Great East Bottles & Drinks (China) Holdings, Inc.” to “Great China Mania Holdings, Inc.”

 

On March 31, 2011, the Company disposed of Water Scientific.

 

In November, 2012, Sharp Achieve obtained the direct ownership of GCM and GCG by disposing the direct ownership of SCGL to GMEC. This restructuring transaction did not affect the company control of all fellow subsidiaries.

XML 49 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONDENSED CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (USD $)
Dec. 31, 2012
Dec. 31, 2011
Common Stock, par or stated value $ 0.01 $ 0.01
Common Stock, shares authorized 375,000,000 375,000,000
Common Stock, shares issued 78,876,021 28,366,000
Common Stock, shares oustanding 78,876,021 28,366,000
XML 50 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 11 - Convertible Notes
12 Months Ended
Dec. 31, 2012
Notes  
Note 11 - Convertible Notes

NOTE 11 – CONVERTIBLE NOTES

 

On June 1, 2011, the Company issued a non-interest bearing convertible note in the amount of $256,400 ( “Note 1”) to a third party note holder (“Holder 1”),which matures on May 31, 2016. On September 30, 2011, the first installment of $128,200  was received. Note 1 bears a call back option exercisable by Holder 1 on the unused portion of Note 1 after 12 months from the date of Note 1. Note 1 can be converted into common stock of the Company by Holder 1 under certain conditions. During the year, a total of $96,899 was repaid by the Company. As of December 31, 2012, Note 1 did not qualify to be converted under those conditions and is therefore not dilutive.

 

On May 31, 2012, the Company issued an 8% convertible note in the amount of $50,000 (“Note 2”) to another third party note holder (“Holder 2”), which matures on March 4, 2013 and had been fully received on June 20, 2012. The outstanding principal balance plus any accrued interest under Note 2 is convertible into common stock of the Company after 180 days from the date of issued with a 42% discount over the convertible price upon the option of Holder 2. The conversion price is determined by the average of the lowest 3 closing bid prices out of the 10 days prior to the Conversion Date. The Company has recorded a debt discount in the amount of $37,655 as the value of the beneficial conversion feature at the date the company entered into the note agreement. The discount is being amortized using the effective interest method over the life of Note 2. The total interest expense relative to Note 2 was $39,655 which consists of accrued interest expenses of $2,000 and amortization of the debt discount of $37,655 for the year ended December 31, 2012. On December 20, 2012, part of the note of $12,000 was converted into 515,021 shares of common stock by the holder. The gross outstanding balance Note 2 at December 31, 2012 was $68,965 after deducting the partial settlement of $20,690 by shares. As of December 31, 2012, Note 2 qualified to be converted 1,622,432 shares of common stock under the conditions of Note 2 and is therefore dilutive.

 

On October 22, 2012 and December 12, 2012, the Company issued two 8% convertible note in the amount of $32,500 (“Note 3”) and $53,000 (“Note 4”) to Holder 2, respectively. Note 3 matures on July 24, 2013 and was fully received on November 7, 2012. The Note 4 matures on September 14, 2013 and was fully received on December 27, 2012.The outstanding principal balance plus any accrued interest under both Note 3and Note 4 are convertible into common stock of the Company after 180 days from the date of issued with a 42% discount over the convertible price upon the option of Holder 2. The conversion price is determined by the average of the lowest 3 closing bid prices out of the 10 days prior to the Conversion Date. The Company has recorded debt discount in the amount of $24,476 and $39,914 for Note 3 and Note 4 respectively as the value of the beneficial conversion feature at the date the Company entered into the note agreement. The discount is being amortized using the effective interest method over the life of Note 3 and 4 separately. The total interest expense relative to Note 3 was $10,024 which consists of interest expenses of $506 and amortization of the debt discount of $9,518 for the year ended December 31, 2012. The total interest expense relative to Note 4 was $4,437 which consists of interest expenses of $224 and amortization of the debt discount of $4,213 for the year ended December 31, 2012.The gross outstanding balance Note 3 and 4 at December 31, 2012 was $42,524 and $57,437 separately. As of December 31, 2012, both Note 3and Note 4 did not qualify to be converted under the conditions of those notes and are therefore not dilutive.

 

The convertible notes as of the year-end dates are summarized as follows:

 

 

 

2012

 

2011

Noncurrent liabilities:

 

 

 

 

Non-interest bearing convertible note

$

31,301

$

128,200

 

 

 

 

 

Current liabilities:

 

 

 

 

8% convertible note 2, net (including fair value adjustment on option $ 37,655, accrued interest expense $2,000,andsettlement by shares totaling of $20,690)

 

68,965

 

-

8% convertible note 3, net (including fair value adjustment on option $ 24,476, accrued interest expense $506, net of unamortized discount $14,958)

 

42,524

 

-

8% convertible note 4, net (including fair value adjustment on option $ 39,914, accrued interest expense $224, net of unamortized discount $35,701)

 

57,437

 

-

 

 

168,926

 

-

 

 

 

 

 

Total convertible note outstanding

$

200,227

$

128,200

 

 

 

 

 

XML 51 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2012
Mar. 28, 2013
Jun. 30, 2012
Document and Entity Information:      
Entity Registrant Name Great China Mania Holdings, Inc.    
Document Type 10-K    
Document Period End Date Dec. 31, 2012    
Amendment Flag false    
Entity Central Index Key 0001382112    
Current Fiscal Year End Date --12-31    
Entity Filer Category Smaller Reporting Company    
Entity Current Reporting Status Yes    
Entity Voluntary Filers No    
Entity Well-known Seasoned Issuer No    
Document Fiscal Year Focus 2012    
Document Fiscal Period Focus FY    
Entity Common Stock, Shares Outstanding   80,498,453  
Entity Public Float     $ 3,500,592
XML 52 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 12 - Weighted Average Number of Shares For Earnings Per Share Calculation
12 Months Ended
Dec. 31, 2012
Notes  
Note 12 - Weighted Average Number of Shares For Earnings Per Share Calculation

NOTE 12 – WEIGHTED AVERAGE NUMBER OF SHARES FOR EARNINGS PER SHARE CALCULATION

 

On January 19, 2012, the Company entered into a stock subscription agreement and issued 28,500,000 shares of common stock to a shareholder, who is an affiliate of the Company, for a consideration of $519,200. During the year, the major shareholder paid $22,425 and the remaining balance of $496,775 has been reported as a Subscription Receivable in the financial statements of the Company.

 

On January 26, 2012 the Company issued 9,410,000 shares of common stock to three non affiliate individuals for settlement of short term borrowings totaling $149,450.

 

On March 20, 2012 the Company issued 3,400,000 shares of common stock to one non affiliate individual for settlement of short term borrowings totaling $56,593.

 

On August 14, 2012 the Company issued 2,105,000 shares of common stock to one non affiliate individual for settlement of short term borrowings totaling $42,100.

 

On August 17 2012, we issued to a consultant 50,000 shares of our common stock in exchange for professional services rendered. Based on the share price of $0.10 per share on the grant date, the fair value of these issued shares is $5,000.

 

On August 24, 2012, we issued to two consultants 2,250,000 shares of our common stock in exchange for professional services rendered. Based on the share price of $0.10 per share on the grant date, the fair value of these issued shares is $225,000.

 

On December 5, 2012 the Company issued 4,280,000 shares of common stock to two non affiliate individuals for settlement of short term borrowings totaling $85,600.

 

On December 20, 2012 the Company issued 515,021 shares of common stock to a convertible note holder for partial settlement of a convertible note totaling $12,000.

 

The calculation of weighted average number of shares for the year ended December 31, 2012 is illustrated as follows:

 

 

2012

 

Number

of shares

 

Weighted average

number of shares

 

 

 

 

At January 1, 2012

28,366,000

 

28,366,000

Shares issued on January 19, 2012 for debt conversion

28,500,000

 

27,098,361

Shares issued on January 26, 2012 for debt conversion

9,410,000

 

8,767,240

Shares issued on March 20, 2012 for debt conversion

3,400,000

 

2,666,120

Shares issued on August 14, 2012 for debt conversion

2,105,000

 

805,191

Shares issued on August 17,2012 for share based payment

50,000

 

18,716

Shares issued on August 24 ,2012 for share based payment

2,250,000

 

799,180

Shares issued on December 5, 2012 for debt conversion

4,280,000

 

315,738

Shares issued on December 20, 2012 for debt conversion

515,021

 

16,886

 

 

 

 

At December 31, 2012

78,876,021

 

68,853,432

 

 

 

 

XML 53 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
REVENUES $ 4,812,595 $ 5,371,787
COST OF SALES 3,352,099 4,228,454
GROSS PROFIT 1,460,496 1,143,333
EXPENSES    
General and administrative expenses 1,950,772 2,163,892
TOTAL OPERATING EXPENSES 1,950,772 2,163,892
LOSS FROM CONTINUING OPERATIONS (490,276) (1,020,559)
OTHER INCOME/(EXPENSE)    
Interest income 12,682  
Interest expenses (54,116)  
Other income 22,350 13,342
Other expenses (25,127) (27,097)
TOTAL OTHER EXPENSE (44,211) (13,755)
NET LOSS BEFORE PROVISION FOR INCOME TAXES (534,487) (1,034,314)
PROVISION FOR INCOME TAXES      
NET LOSS FROM CONTINUING OPERATIONS (534,487) (1,034,314)
DISCONTINUED OPERATIONS    
Net loss from discontinued operations   (80,233)
Gain on disposal of discontinued operations   958,855
NET INCOME FROM DISCONTINUED OPERATIONS   878,622
NET LOSS (534,487) (155,692)
OTHER COMPREHENSIVE INCOME    
Arising from continuing operations   1,492
Arising from discontinued operations   1,246
TOTAL OTHER COMPREHENSIVE INCOME   2,738
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR    
Arising from continuing operations (534,487) (1,032,822)
Arising from discontinued operations   879,868
TOTAL COMPREHENSIVE (LOSS) / INCOME FOR THE YEAR $ (534,487) $ (152,954)
BASIC (LOSS)/EARNINGS PER SHARE    
Arising from continuing operations $ (0.01) $ (0.04)
Arising from discontinued operations   $ 0.03
BASIC (LOSS)/EARNINGS PER SHARE $ (0.01) $ (0.01)
DILUTED (LOSS)/EARNINGS PER SHARE    
Arising from continuing operations $ (0.01) $ (0.04)
Arising from discontinued operations   $ 0.03
DILUTED (LOSS)/EARNINGS PER SHARE $ (0.01) $ (0.01)
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING    
Basic 68,853,432 24,943,587
Diluted 69,008,583 24,943,587
XML 54 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 6 - Deposits, Prepaid Expenses and Other Receivables
12 Months Ended
Dec. 31, 2012
Notes  
Note 6 - Deposits, Prepaid Expenses and Other Receivables

NOTE 6 – DEPOSITS, PREPAID EXPENSES AND OTHER RECEIVABLES

 

Deposits, prepaid expenses and other receivables consist of payments and deposits made by the Company to third parties in the normal course of business operations with no interest and no fixed repayment terms. These payments are made for the purchase of services that are used by the Company for its current operations.

 

The Company evaluates the amounts recorded as prepaid expenses on a periodic basis and records a charge to the current operations of the Company when the related expense has been incurred.

XML 55 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 5 - Short Term Loan Receivable
12 Months Ended
Dec. 31, 2012
Notes  
Note 5 - Short Term Loan Receivable

NOTE 5 – SHORT TERM LOAN RECEIVABLE

 

During the year, the Company granted a short term loan amount of $140,495 to a third party company at 6% interest per annum with no fixed payment terms. Interest income in conjunction with this short term loan for the year ended December 31, 2012 and 2011 was $12,682 and $0, respectively.

XML 56 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 17- Going Concern
12 Months Ended
Dec. 31, 2012
Notes  
Note 17- Going Concern

NOTE 17- GOING CONCERN

 

As of December 31, 2012, the Company has accumulated deficits of $8,457,669, a negative working capital of $492,272, and also recorded a net loss from the continuing operations of $534,487 for the year then ended.

 

As of December 31, 2012 the Company may need additional cash resources to operate during the upcoming 12 months, and the continuation of the Company may dependent upon the continuing financial support of investors, directors and/or stockholders of the Company. The Company intends to attempt to acquire additional operating capital through private equity offerings to the public and existing investors to fund its business plan. However, there is no assurance that equity or debt offerings will be successful in raising sufficient funds to assure the eventual profitability of the Company. The financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence.

XML 57 R19.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 13 - Interest Expenses
12 Months Ended
Dec. 31, 2012
Notes  
Note 13 - Interest Expenses

NOTE 13 – INTEREST EXPENSES

 

Interest expenses for the year ended December 31 2012 and 2011 are summarized as follows:

 

 

 

2012

 

2011

 

 

 

 

 

Amortization on discount of convertible note

$

51,386

$

-

Accrued interest on convertible note

 

2,730

 

-

Total

$

54,116

$

-

XML 58 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 9 - Short-term Borrowings
12 Months Ended
Dec. 31, 2012
Notes  
Note 9 - Short-term Borrowings

NOTE 9 – SHORT-TERM BORROWINGS

 

The short-term borrowings are unsecured, interest free advances from three non affiliate individuals with no fixed repayment term. During the year, those individuals converted a portion of the short term borrowings of $333,743 into 19,195,000 shares of Company’s common stock.

XML 59 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 7 - Accrued Expenses and Other Payables
12 Months Ended
Dec. 31, 2012
Notes  
Note 7 - Accrued Expenses and Other Payables

NOTE 7 – ACCRUED EXPENSES AND OTHER PAYABLES

 

As of the year-end dates, the Company’s accrued expenses and other payables are summarized as follows:

 

 

 

2012

 

2011

 

 

 

 

 

Accrued expenses

$

84,720

$

144,813

Other payables

 

-

 

338

 

$

84,720

$

145,151

XML 60 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 8 - Amount Due To A Director
12 Months Ended
Dec. 31, 2012
Notes  
Note 8 - Amount Due To A Director

NOTE 8 – AMOUNT DUE TO A DIRECTOR

 

As of the year-end dates, the Company’s current account due to the director is summarized as follows:

 

 

 

2012

 

2011

 

 

 

 

 

Mr. Yau Wai Hung

$

-

$

2,051

 

The amount due to Mr. Yau Wai Hung represents temporary advances from the director for the Company’s working capital. The balance is unsecured, interest free, and has no fixed terms of repayment. During the year, Mr. Yau was the Chief Executive Officer and director of the Company.

XML 61 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 10 - Amount Due To Related Parties
12 Months Ended
Dec. 31, 2012
Notes  
Note 10 - Amount Due To Related Parties

NOTE 10 – AMOUNT DUE TO RELATED PARTIES

 

As of the year-end dates, the Company’s current accounts with related companies are summarized as follows:

 

 

 

2012

 

2011

 

 

 

 

 

China Culture Limited (CCL)

$

38,128

$

109,583

Global Mania Empire Management Limited (GME)

 

-

 

51,314

 

 

 

 

 

Total amount due to related parties

$

38,128

$

160,897

 

 

 

 

 

 

The amount due to CCL is a temporary advance to the Company for working capital purposes. The balance is unsecured, interest free and has no fixed repayment term. CCL is 100% owned by one of the Company’s directors.

 

The amount due to GME is a temporary advance to the Company for working capital purposes. The balance is unsecured, interest free and has no fixed repayment.

XML 62 R34.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 15 - Contingencies and Commitments: Schedule of Future Minimum Rental Payments for Operating Leases (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
Schedule of Future Minimum Rental Payments for Operating Leases

 

 

 

 

For the year ending December 31,

 

 

2013

 

90,338

2014

 

46,088

Total

 

136,426

XML 63 R51.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 14 - Related Party Transaction: Schedule of Related Party Transactions (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Lease payment to CCL $ 92,305 $ 247,745
XML 64 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 15 - Contingencies and Commitments
12 Months Ended
Dec. 31, 2012
Notes  
Note 15 - Contingencies and Commitments

NOTE 15 – CONTINGENCIES AND COMMITMENTS

 

As of December 31, 2012, the expected annual lease payments under operating leases are as follows:

 

 

 

 

For the year ending December 31,

 

 

2013

 

90,338

2014

 

46,088

Total

 

136,426

XML 65 R26.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 4 - Inventories: Schedule of Inventory Table (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
Schedule of Inventory Table

 

 

 

2012

 

2011

Raw materials

$

6,795

$

7,109

Trading inventories

 

3,643

 

45,461

Total

$

10,438

$

52,570

XML 66 R49.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 12 - Weighted Average Number of Shares For Earnings Per Share Calculation: Schedule of Weighted Average Number of Shares Table (Details)
0 Months Ended 0 Months Ended
Jan. 19, 2012
Dec. 31, 2012
Dec. 31, 2011
Jan. 26, 2012
Short-Term Borrowing
Mar. 20, 2012
Short-Term Borrowing 2
Aug. 14, 2012
Short-Term Borrowing 3
Aug. 17, 2012
Professional Services
Aug. 24, 2012
Professional Services 2
Dec. 05, 2012
Short-Term Borrowing 4
Dec. 20, 2012
Convertible Note Partial Settlement
Jan. 19, 2012
Subscription receivable
Shares, Outstanding   78,876,021 28,366,000               28,500,000
Weighted Average of Shares Issued   68,853,432 28,366,000               27,098,361
Conversion of convertible debt to shares, shares 28,500,000     9,410,000 3,400,000 2,105,000     4,280,000 515,021  
Weighted Average of Shares Issued   68,853,432 28,366,000 8,767,240 2,666,120 805,191 18,716 799,180 315,738 16,886 27,098,361
Stock Issued During Period, Shares, Share-based Compensation, Net of Forfeitures             50,000 2,250,000      
Shares, Outstanding   78,876,021 28,366,000               28,500,000
Weighted Average of Shares Issued   68,853,432 28,366,000 8,767,240 2,666,120 805,191 18,716 799,180 315,738 16,886 27,098,361
XML 67 R41.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 5 - Short Term Loan Receivable (Details) (USD $)
12 Months Ended
Dec. 31, 2012
Dec. 31, 2011
Short term loan amount $ 140,495  
Interest and Fee Income, Loans and Leases $ 12,682 $ 0
XML 68 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED STATEMENTS OF STOCKHOLDER'S DEFICIT (USD $)
Common Stock
Additional paid in capital
(Accumulated deficits)/ retained earnings
Accumulated other comprehensive income
Subscription receivable
Total equity
Stockholders' Equity at Dec. 31, 2010 $ 92,020 $ 5,406,259 $ (7,767,490) $ (1,246)   $ (2,270,457)
Shares, Outstanding at Dec. 31, 2010 9,202,000          
Net loss, continuing operations     (1,034,314)     (1,034,314)
Foreign currency translation adjustments, continuing operations       1,492   1,492
Net loss, discontinued operations     (80,233)     (80,233)
Foreign currency translation adjustments, discontinued operations       1,246   1,246
Gain on disposal of discontinued operations     958,855     958,855
Share-based payment, value 36,900 401,472       438,372
Share-based payment, shares 3,690,000          
Conversion of debt to shares, value 154,740 1,234,355       1,389,095
Conversion of debt to shares, shares 15,474,000          
Stockholders' Equity at Dec. 31, 2011 283,660 7,042,086 (7,923,182) 1,492   (595,944)
Shares, Outstanding at Dec. 31, 2011 28,366,000          
Net loss, continuing operations     (534,487)     (534,487)
Share-based payment, value 23,000 207,000       230,000
Share-based payment, shares 2,300,000          
Conversion of debt to shares, value 191,950 141,793       333,743
Conversion of debt to shares, shares 19,195,000          
Conversion of convertible debt to shares, value 5,151 15,539       20,690
Conversion of convertible debt to shares, shares 515,021          
Issue of shares, value 285,000 234,200     (496,775) 22,425
Issue of shares, shares 28,500,000          
Stockholders' Equity at Dec. 31, 2012 $ 788,761 $ 7,640,618 $ (8,457,669) $ 1,492 $ (496,775) $ (523,573)
Shares, Outstanding at Dec. 31, 2012 78,876,021          
XML 69 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 4 - Inventories
12 Months Ended
Dec. 31, 2012
Notes  
Note 4 - Inventories

NOTE 4 – INVENTORIES

 

Inventories as of the year-end dates are summarized as follows:

 

 

 

2012

 

2011

Raw materials

$

6,795

$

7,109

Trading inventories

 

3,643

 

45,461

Total

$

10,438

$

52,570

 

The raw materials represent the paper used in publication of magazines and the trading inventories represent video games and accessories used in retail operation.

XML 70 R27.htm IDEA: XBRL DOCUMENT v2.4.0.6
Note 7 - Accrued Expenses and Other Payables: Schedule of Accounts Payable and Accrued Liabilities Table (Tables)
12 Months Ended
Dec. 31, 2012
Tables/Schedules  
Schedule of Accounts Payable and Accrued Liabilities Table

 

 

 

2012

 

2011

 

 

 

 

 

Accrued expenses

$

84,720

$

144,813

Other payables

 

-

 

338

 

$

84,720

$

145,151

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Note 3- Summary of Significant Accounting Policies: (j) Foreign Currency Translation (Details)
Dec. 31, 2012
Dec. 31, 2011
Foreign Currency Exchange Rate, Translation 0.1282 0.1282
Average Exchange Rate For The Period 0.1282 0.1282
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Note 14 - Related Party Transaction
12 Months Ended
Dec. 31, 2012
Notes  
Note 14 - Related Party Transaction

NOTE 14 – RELATED PARTY TRANSACTION

 

In addition to the transactions detailed elsewhere in these financial statements, the Company and its subsidiaries entered into the following material transactions with the related parties for the year ended December 31, 2012:

 

 

 

2012

 

2011

From continuing operations

 

 

 

 

China Culture Limited

 

 

 

 

Rental charges paid by Company for offices premises

$

92,305

$

247,745

 

 

 

 

 

China Culture Limited is a related party as it is a company owned by Mr. Chan Wing Hing, a Company director appointed during the year.

 

In the opinion of directors, the above transaction was entered into by the company in the normal course of business.