0001213900-19-023372.txt : 20191114 0001213900-19-023372.hdr.sgml : 20191114 20191114112936 ACCESSION NUMBER: 0001213900-19-023372 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 30 CONFORMED PERIOD OF REPORT: 20190930 FILED AS OF DATE: 20191114 DATE AS OF CHANGE: 20191114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Theron Resource Group CENTRAL INDEX KEY: 0001409431 STANDARD INDUSTRIAL CLASSIFICATION: GOLD & SILVER ORES [1040] IRS NUMBER: 260665325 STATE OF INCORPORATION: WY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-53845 FILM NUMBER: 191217856 BUSINESS ADDRESS: STREET 1: ROOM 318, PENINSULA CENTRE, STREET 2: 67 MODY ROAD CITY: KOWLOON, STATE: K3 ZIP: 00000 BUSINESS PHONE: 888-755-9766 MAIL ADDRESS: STREET 1: ROOM 318, PENINSULA CENTRE, STREET 2: 67 MODY ROAD CITY: KOWLOON, STATE: K3 ZIP: 00000 10-Q 1 f10q0919_theronresource.htm QUARTERLY REPORT

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

☒    QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2019

 

☐     TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT

 

For the transition period from _____ to _______

 

Commission file number:  000-53845

 

THERON RESOURCE GROUP

(Exact name of small business issuer in its charter)

 

Wyoming   26-0665325
(State or other jurisdiction of
incorporation or organization)
  (I.R.S. Employer
Identification No.)
     
23 Yihe Road, Luozhuang District
Linyi City, Shandong, P.R.C.
  276000
(Address of principal executive offices)   (Zip Code)

 

(86) 0539-563-1111

(Issuer’s telephone number, including area code)

 

Securities Registered Under Section 12(b) of the Exchange Act: None

 

Title of each class   Trading Symbol(s)   Name of each exchange on which registered
Not applicable   Not applicable   Not applicable

 

Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒     No  ☐

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files).  Yes  ☒     No  ☐

 

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

 

Large accelerated filer   ☐ Accelerated filer   ☐
Non-accelerated filer     ☒ Smaller reporting company   ☒
  Emerging Growth Company  ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes  ☒     No  ☐

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:  7,900,000 shares of Common Stock as of November 12, 2019.

 

 

 

 

 

THERON RESOURCE GROUP

 

TABLE OF CONTENTS

 

    Page
     
PART I FINANCIAL INFORMATION 1
     
Item 1 FINANCIAL STATEMENTS 1
     
  Balance Sheets as of September 30, 2019 (Unaudited) and December 31, 2018 1
     
  Unaudited Statements of Operations and Other Comprehensive Loss for the Three Months and Nine Months ended September 30, 2019 and 2018 2
     
  Unaudited Statements of Changes in Stockholders’ Deficit for the Nine Months ended September 30, 2019 and 2018 3
     
  Unaudited Statements of Cash Flows for the Nine Months ended September 30, 2019 and 2018 4
     
  Notes to Unaudited Financial Statements 5
     
Item 2 MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATIONS 8
     
Item 3 QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 10
     
Item 4 CONTROLS AND PROCEDURES 10
     
PART II OTHER INFORMATION 11
     
Item 6 EXHIBITS 11
     
  SIGNATURES 12

 

i

 

 

PART I – FINANCIAL INFORMATION

 

  ITEM 1. FINANCIAL STATEMENTS

 

Theron Resource Group

Balance Sheets

As of September 30, 2019, and December 31, 2018

(Unaudited)

(Stated in U.S. Dollars)

 

   September 30,   December 31, 
   2019   2018 
   (Unaudited)     
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY        
         
Current liabilities        
Accounts payable and accrued expenses  $17,295   $9,295 
Promissory note payable – in default   50,000    50,000 
Interest due on promissory note payable   21,457    19,582 
Advances from related companies   172,651    132,961 
Total current liabilities   261,403    211,838 
           
Stockholders’ deficiency          
Common stock, $0.001 par value, 500,000,000 shares authorized, 7,900,000 shares issued and outstanding   7,900    7,900 
Additional paid-in capital   430,574    430,574 
Accumulated other comprehensive loss   (222)   (222)
Accumulated deficit   (699,655)   (650,090)
Total stockholders’ deficiency   (261,403)   (211,838)
           
Total liabilities and stockholders’ deficiency  $-   $- 

 

The accompanying notes are an integral part of these unaudited condensed financial statements

 

1

 

 

Theron Resource Group

Statements of Operations and Other Comprehensive Loss

(Unaudited)

(Stated in U.S. Dollars)

 

   Three Months ended September 30,   Nine Months ended
September 30,
 
   2019  2018   2019   2018 
                
Revenue  $-    $-   $-   $- 
                      
General and administrative expenses   (11,593)    (11,681)   (47,690)   (47,695)
                      
Loss from operations   (11,593)    (11,681)   (47,690)   (47,695)
                      
Other income   -     -    -    298 
                      
Interest expense   (625)    (625)   (1,875)   (1,875)
                      
Net loss   (12,218)    (12,306)   (49,565)   (49,272)
                      
Other comprehensive loss                     
Currency exchange loss   -     -    -    - 
                      
Comprehensive loss  $(12,218)   $(12,306)  $(49,565)  $(49,272)
                      
Basic and diluted loss per common share  $**    $**    $**   $** 
                      
Weighted average number of common shares used in per share calculations   7,900,000     7,900,000    7,900,000    7,900,000 

 

** less than $0.01

 

The accompanying notes are an integral part of these unaudited condensed financial statements

 

2

 

 

Theron Resource Group

Statements of Changes in Stockholders’ Deficit

(Unaudited)

(Stated in U.S. Dollars)

 

   Common stock   Additional
paid-in
   Other comprehensive   Accumulated   Total stockholders’ 
   Shares   Amount   capital   loss   deficit   Deficiency 
                         
For the periods ended September 2019                        
Balance, December 31, 2018   7,900,000   $7,900   $430,574   $(222)  $(650,090)  $(211,838)
Net loss for the three-month period   -    -    -    -    (24,435)   (24,435)
Balance, March 31, 2019 (Unaudited)   7,900,000   $7,900   $430,574   $(222)  $(674,525)  $(236,273)
Net loss for the three-month period   -    -    -    -    (12,912)   (12,912)
Balance, June 30, 2019 (Unaudited)   7,900,000   $7,900   $430,574   $(222)  $(687,437)  $(249,185)
Net loss for the three-month period   -    -    -    -    (12,218)   (12,218)
Balance, September 30, 2019 (Unaudited)   7,900,000   $7,900   $430,574   $(222)  $(699,655)  $(261,403)
                               
For the periods ended September 2018                              
Balance, December 31, 2017   7,900,000   $7,900   $430,574   $(222)  $(588,639)  $(150,387)
Net loss for the three-month period   -    -    -    -    (24,768)   (24,768)
Balance, March 31, 2018 (Unaudited)   7,900,000    7,900    430,574   $(222)  $(613,407)  $(175,155)
Net loss for the three-month period   -    -    -    -    (12,198)   (12,198)

Balance, June 30, 2018

(Unaudited)

   7,900,000   $7,900   $430,574   $(222)  $(625,605)  $(187,353)
Net loss for the three-month period   -    -    -    -    (12,306)   (12,306)
Balance, September 30, 2018 (Unaudited)   7,900,000   $7,900   $430,574   $(222)  $(637,911)  $(199,659)

 

The accompanying notes are an integral part of these unaudited condensed financial statements

 

3

 

 

Theron Resource Group

Statements of Cash Flows

(Unaudited)

(Stated in U.S. Dollars)

 

   Nine Months
ended
September 30,
   Nine Months
ended
September 30,
 
   2019   2018 
         
Cash flows used from operating activities        
Net loss  $(49,565)  $(49,272)
           
Changes in operating assets and liabilities          
Increase (Decrease) in accounts payable and accrued expenses   8,000    (1,243)
Increase in interest accrued on promissory note payable   1,875    1,875 
Cash flows used in operating activities   (39,690)   (48,640)
           
Cash flows from financing activities          
Advances from related companies   39,690    48,640 
Cash flows provided by financing activities   39,690    48,640 
           
Decrease in cash and cash equivalents   -    - 
Cash and cash equivalents – Beginning of period   -    - 
Cash and cash equivalents – End of period  $-   $- 
           
Supplementary information          
Income tax paid  $-   $- 
Interest paid   -    - 

 

The accompanying notes are an integral part of these unaudited condensed financial statements

 

4

 

 

THERON RESOURCE GROUP

NOTES TO CONDENSED FINANCIAL STATEMENTS 
(Unaudited)

 

1. NATURE OF OPERATIONS

 

Theron Resource Group (the “Company”, “Theron”, or “THRO”) was incorporated in the State of Wyoming on April 11, 2006. There have been no material reclassifications, mergers, consolidations or purchases or sales of any significant assets not in the ordinary course of business since the date of incorporation. The Company has not yet commenced any revenue-generating operations, does not have any cash flows from operations, and is dependent on debt and equity funding to finance its operations.

 

2. BASIS OF PRESENTATION AND GOING CONCERN

 

Basis of Presentation

 

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

 

The condensed financial statements of the Company as of and for the three months and nine months ended September 30, 2019 and 2018 are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) that have been made are necessary to fairly present the financial position of the Company as of September 30, 2019, the results of its operations for the three months and nine months ended September 30, 2019 and 2018, and its cash flows for the nine months ended September 30, 2019 and 2018. Operating results for the interim periods presented are not necessarily indicative of the results to be expected for a full fiscal year. The balance sheet at December 31, 2018 has been derived from the Company’s audited financial statements included in its Form 10-K for the year ended December 31, 2018 (the “Form 10-K for 2018”).

 

The statements and related notes have been prepared pursuant to U.S. GAAP for interim information, and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (the “SEC”). Accordingly, certain information and footnote disclosures normally included in financial statements have been omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the financial statements and other information included in the Form 10-K for 2018.

 

Going Concern

 

The accompanying financial statements have been prepared under the assumption that we will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As of September 30, 2019, the Company has an accumulated deficit of $699,655 and a stockholders’ deficiency of $261,403. The Company has incurred recurring losses from operations, and utilized cash flow in operating activities of $39,690 during the nine months ended September 30, 2019. These factors, among others, raise substantial doubt about our ability to continue as a going concern. Additionally, the Company’s independent registered public accounting firm, in its report on the Company’s financial statements for the year ended December 31, 2018, raised substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

 

Management’s plan to support the Company in its operations and to maintain its business strategy is to raise funds through public or private offerings and to rely on officers and directors to perform essential functions with minimal compensation. If the Company does not raise all of the money it needs from such offerings, it will have to find alternative sources, such as a private placement of securities or loans or advances from its officers, directors or others. Such additional financing may not become available on acceptable terms, and there can be no assurance that any additional financing that the Company does obtain will be sufficient to meet its needs in the long term. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing, or cause substantial dilution for our stockholders, in the case of equity financing. If the Company requires additional cash and cannot raise it, it will either have to suspend operations or cease business entirely.

 

The accompanying financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

5

 

 

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Fair Value of Financial Instruments

 

Effective January 1, 2008, fair value measurements are determined by our adoption of authoritative guidance issued by the Financial Accounting Standards Board (“FASB”), with the exception of the application of the statement to non-recurring, non-financial assets and liabilities as permitted. The adoption of the authoritative guidance did not have a material impact on our fair value measurements. Fair value is defined in the authoritative guidance as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three broad levels as follows:

 

Level 1—Quoted prices in active markets for identical assets or liabilities.

 

Level 2—Inputs, other than the quoted prices in active markets, are observable either directly or indirectly.

 

Level 3—Unobservable inputs based on our assumptions.

 

We are required to use observable market data if such data is available without undue cost and effort.

 

At September 30, 2019 and December 31, 2018, the fair values of accounts payable approximate their carrying values.

 

Comprehensive Loss

 

Comprehensive loss consists of net loss and other gains and losses affecting stockholders’ equity that, under U.S. GAAP, are excluded from net loss. There was no recorded other comprehensive income or loss for both the three months and nine months ended September 30, 2019 and 2018.

 

Use of Estimates

 

In preparing financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses in the statement of operations. Actual results could differ from those estimates.

 

Basic and Diluted Net Loss Per Share

 

The Company’s computation of earnings per share (“EPS”) includes basic and diluted EPS. Basic EPS is measured as the income (loss) available to common stockholders divided by the weighted average common shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution, using the treasury stock method, that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the income (loss) of the Company as if they had been converted at the beginning of the periods presented, or issuance date, if later. In computing diluted income (loss) per share, the treasury stock method assumes that outstanding options and warrants are exercised and the proceeds are used to purchase common stock at the average market price during the period. Options and warrants may have a dilutive effect under the treasury stock method only when the average market price of the common stock during the period exceeds the exercise price of the options and warrants. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

 

Income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the respective periods. Basic and diluted (loss) per common share is the same for periods in which the company reported an operating loss because all warrants and stock options outstanding are anti-dilutive.

 

There were no adjustments to net loss required for purposes of computing dilutive earnings per share.

 

For the three months and nine months ended September 30, 2019 and 2018, there were no potential dilutive securities.

 

6

 

 

Recently Issued Accounting Pronouncements

 

In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820)”, reducing certain disclosures concerning the fair value hierarchy. The guidance is effective for the Company in annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Company does not expect the adoption of this guidance to have a material impact on our financial statements.

 

Other accounting pronouncements did not or are not believed by management to have a material impact on the Company’s present or future financial statements.

 

4. RELATED PARTY TRANSACTIONS

 

During the nine months ended September 30, 2019 and 2018, Linyi Yi Cheng Cultural Innovative Industry Zone Management Limited and Shandong Theron Education Management Co., Limited, two affiliates of the Company, in which Mr. Zhaoyu Gu, a director of the Company, holds a beneficial interest, provided net advances of $39,690 and $48,640, respectively, to finance the Company’s working capital requirements.

 

Advances from related companies are unsecured, due on demand, and non-interest bearing. The outstanding advances from related companies totaled $172,651 and $132,961 as of September 30, 2019 and December 31, 2018, respectively.

 

During the nine months ended September 30, 2019 and 2018, the Company’s office facility has been provided without charge by the Company’s major stockholder. Such cost was not material to the financial statements and accordingly, has not been reflected therein. In view of the Company’s limited operations and resources, the major stockholder did not receive any compensation from the Company during the nine months ended September 30, 2019 and 2018.

 

5. PROMISSORY NOTE PAYABLE – IN DEFAULT

 

On March 3, 2011, the Company obtained a $50,000 loan from an unrelated party as evidenced by a promissory note (the “Promissory Note”). The loan, which is unsecured and bears interest at 5% per annum, matured on March 3, 2012. The funds were used to repay all outstanding stockholder loans and accounts payable and to provide working capital through November 30, 2012.

 

In connection with a share purchase agreement dated May 23, 2016 entered into by the Company and Horizon Investment Club Limited (“Horizon”), Horizon entered into a Deed of Waiver and Assumption of Debt (the “Waiver”) with the Company pursuant to which Horizon and the Company agreed and confirmed that the Company shall novate and transfer to Horizon all its obligations and liabilities under the Promissory Note including all principal amount, accrued interests, or default interests arising thereunder and such other liabilities accrued or incurred by the Company prior to the closing of the share purchase on July 2, 2016.

 

However, the assignment of the Promissory Note has not been consented to by the creditor because the Company’s efforts to contact the creditor have not been successful. Therefore, the Company may still be liable until the earlier of the date on which (i) the loan is paid off, (ii) the creditor consents to the Waiver or (iii) the statute of limitation on the Promissory Note expires (which is set to occur on March 3, 2022). Therefore, the Promissory Note is currently deemed to be in default despite the Waiver.

 

During the three months and nine months ended September 30, 2019, the Company accrued $625 and $1,875 in interest payable under the note, respectively, as compared to $625 and $1,875 for the three months and nine months ended September 30, 2018.

 

7

 

 

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION.

 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

 

This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. Some discussions in this report may contain forward-looking statements that involve risk and uncertainty. A number of important factors could cause our actual results to differ materially from those expressed in any forward-looking statements made by us in this report. Forward-looking statements are often identified by words like: “believe,” “expect,” “estimate,” “anticipate,” “intend,” “project,” “goal,” “seek,” “strategy,” “future,” “likely,” and similar expressions or words which, by their nature, refer to future events.

 

In some cases, you can also identify forward-looking statements by terminology such as “may,” “will,” “should,” “plans,” “predicts,” “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from future results, levels of activity, performance or achievements stated or implied by these statements.

 

As used in this quarterly report, the terms “we,” “us,” “our,” “Theron” and “THRO” mean Theron Resource Group, unless otherwise indicated.

 

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

 

Our financial statements are stated in United States Dollars (“USD” or “US$” or “$”) and are prepared in accordance with U.S. GAAP. All references to “common shares” refer to the common shares in our capital stock.

 

Overview

 

We were incorporated in the State of Wyoming on April 11, 2006 as Theron Resource Group. There have been no material reclassifications, mergers, consolidations or purchases or sales of any significant amount of assets not in the ordinary course of business since the date of incorporation.

 

RESULTS OF OPERATIONS

 

REVENUE

 

No revenue was generated for three months and nine months ended September 30, 2019 and 2018.

 

GENERAL AND ADMINISTRATIVE EXPENSES

 

General and administrative expenses amounted to $12,218 and $12,306 for the three months ended September 30, 2019 and 2018, respectively, and $49,565 and $49,272 for the nine months ended September 30, 2019 and 2018, respectively. The Company’s general and administrative expenses mainly represent professional fees incurred for its SEC filings.

 

INTEREST EXPENSE

 

Interest expense for both the three months ended September 30, 2019 and 2018 amounted to $625, and for both the nine months ended September 30, 2019 and 2018 amounted to $1,875. Interest expense for these periods is attributable to the $50,000 unsecured promissory note we issued in March 2011 with an annual interest rate of 5%.

 

INCOME TAX PROVISION

 

As a result of operating losses, there has been no provision for the payment of income taxes to date in 2019.

 

8

 

 

NET LOSS

 

For the three months and nine months ended September 30, 2019, the net losses were $12,218 ($0.00 per share) and $49,565 ($0.00 per share), compared with $12,306 ($0.00 per share) and $49,272 ($0.00 per share) for the same periods last year. The loss per share was based on a weighted average of 7,900,000 common shares outstanding as of September 30, 2019 and 2018.

 

The Company continues to carefully control its expenses and overall costs as it moves its business development plan forward.

 

PLAN OF OPERATION

 

As of September 30, 2019, we had a stockholders’ deficiency of $261,403.

 

We have not generated any revenues and have relied on shareholder advances and debt and equity offerings to finance our operating and capital expenses. We have incurred operating losses since inception. The working capital requirements of any new business we may acquire may be substantial and may depend on the terms of our potential acquisitions, whether for stock, debt or cash, or a combination thereof, as appropriate.

 

Due to the uncertainty of our ability to meet our current operating and capital expenses, in our annual report on the financial statements for the year ended December 31, 2018, our independent auditors included an explanatory paragraph regarding their substantial doubt about our ability to continue as a going concern. Our financial statements contain additional note disclosures describing the circumstances that led to this disclosure by our independent auditors. Our issuance of additional equity securities could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

 

There are no assurances that we will be able to obtain further funds required for continued operations. We are pursuing various financing alternatives to meet immediate and long-term financial requirements but results to date have not been encouraging. There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, we will not be able to meet our obligations as they become due.

 

LIQUIDITY AND CAPITAL RESOURCES

 

As of September 30, 2019, we have yet to generate any revenues from operations.

 

The accompanying condensed financial statements have been prepared under the assumption that we will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As of September 30, 2019, we have an accumulated deficit of $699,655 and a stockholders’ deficiency of $261,403. We have incurred recurring losses from operations, and utilized cash flow in operating activities of $39,690 during the nine months ended September 30, 2019. These factors, among others, raise substantial doubt about our ability to continue as a going concern. In addition, the Company’s independent registered public accounting firm, in its report on the Company’s financial statements for the year ended December 31, 2018, raised substantial doubt about the Company’s ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary should we be unable to continue as a going concern.

 

Since our inception in April 2006, we have used our common stock, promissory notes and loans or advances from our officers, directors and stockholders to raise money for our optioned acquisition and for corporate expenses. We issued 6,000,000 shares of common stock through a Section 4(2) offering in October 2006 for cash consideration of $6,000. We issued 900,000 shares of common stock through a Regulation D offering in November 2006 for cash consideration of $9,000 to a total of three subscribers. During May 2009, $50,000 cash was provided by financing activities as the result of the sale of 1,000,000 shares of common stock at a price of $0.05 per share issued under our SB-2 registration statement to a total of 44 subscribers.

 

As of September 30, 2019, the Company had a note payable of $50,000 plus accrued interest of $21,457. The note is unsecured and bears interest at a rate of 5% per annum. The note matured on March 3, 2012 and is currently in default.

 

As of September 30, 2019, we had no assets and our total liabilities were $261,403, mainly consisting of a promissory note payable of $50,000 and interest due thereon of $21,457, and advances from related companies of $172,651. We had a working capital deficit of $261,403.

 

NET CASH USED IN OPERATING ACTIVITIES: For the nine months ended September 30, 2019 and 2018, $39,690 and $48,640 in net cash was used, respectively.

 

9

 

 

CASH FLOWS FROM FINANCING ACTIVITIES: For the nine months ended September 30, 2019 and 2018, we received advances from related companies of $39,690 and $48,640, respectively. There was no cash provided by equity financing activities during the nine months ended September 30, 2019 and 2018. No options or warrants were issued in the most recent period to purchase shares in a later date.

 

OFF-BALANCE SHEET ARRANGEMENTS

 

We have no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

 

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

 

Not applicable.

 

ITEM 4. CONTROLS AND PROCEDURES

 

(a) Evaluation of Disclosure Controls and Procedures.

 

We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act) that are designed to ensure that information required to be disclosed in our filings under the Exchange Act is recorded, processed, summarized and reported within the periods specified in the rules and forms of the SEC.  This information is accumulated to allow our management to make timely decisions regarding required disclosure.  Our President, who serves as our principal executive officer and principal financial officer, evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report and determined that our disclosure controls and procedures were ineffective due to a control deficiency.  During this period we did not have additional personnel to allow for segregation of duties to ensure the completeness or accuracy of our information.  Due to the size and operations of the Company, we are unable to remediate this deficiency until we acquire or merge with another company.

 

Our management, including our President, does not expect that our disclosure controls and procedures or our internal controls will prevent all errors or fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Further, the design of a control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. Due to the inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Accordingly, management believes that the financial statements included in this report fairly present in all material respects our financial condition, results of operations and cash flows for the periods presented.

 

(b) Changes in Internal Control Over Financial Reporting

 

During the quarter ended September 30, 2019, there were no changes in the Company’s internal control over financial reporting (as defined in Rule 13a-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, its internal control over financial reporting.

 

10

 

 

PART II – OTHER INFORMATION

 

ITEM 6. EXHIBITS

 

Exhibits

 

The following exhibits of the Company are included herein.

 

31.1 Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1* Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS XBRL Instance
101.SCH XBRL Taxonomy Extension Schema
101.CAL XBRL Taxonomy Extension Calculation Linkbase
101.DEF XBRL Taxonomy Extension Definition Linkbase
101.LAB XBRL Taxonomy Extension Labels Linkbase 
101.PRE XBRL Taxonomy Extension Presentation Linkbase

 

* Information is furnished and not filed or a part of a registration statement or prospectus for purpose of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.

 

11

 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  THERON RESOURCE GROUP
     
Date: November 14, 2019 BY: /s/ Zhaoyu Gu
    Zhaoyu Gu
    Chief Executive Officer and
Chief Financial Officer
    (Principal Executive Officer,
Principal Financial Officer and
Principal Accounting Officer)

 

 

12

 

 

EX-31.1 2 f10q0919ex31-1_theron.htm CERTIFICATION

EXHIBIT 31.1

 

CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER

 

I, Zhaoyu Gu, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Theron Resource Group;

 

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

 

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

 

4. 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 my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me 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 my 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 my 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 my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

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

 

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

 

Date: November 14, 2019  
  /s/ Zhaoyu Gu
  Zhaoyu Gu
  Chief Executive Officer
  (Principal Executive Officer)

 

EX-31.2 3 f10q0919ex31-2_theron.htm CERTIFICATION

EXHIBIT 31.2

 

CERTIFICATION OF THE CHIEF FINANCIAL OFFICER

 

I, Zhaoyu Gu, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q of Theron Resource Group;

 

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

 

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

 

4. 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 my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me 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 my 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 my 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 my most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

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

 

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

 

Date: November 14, 2019  
  /s/ Zhaoyu Gu
  Zhaoyu Gu
  Chief Financial Officer
  (Principal Financial Officer and
Principal Accounting Officer)

 

EX-32.1 4 f10q0919ex32-1_theron.htm CERTIFICATION

EXHIBIT 32.1

 

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906

OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with the Quarterly Report on Form 10-Q of Theron Resource Group (the “Company”) for the period ended September 30, 2019, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Zhaoyu Gu, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

 

  1. The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

 

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

 

Date: November 14, 2019  
  /s/ Zhaoyu Gu
  Zhaoyu Gu
  Chief Executive Officer and Chief Financial Officer
  (Principal Executive Officer,
Principal Financial Officer and
Principal Accounting Officer)

 

 

 

 

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Nature of Operations
9 Months Ended
Sep. 30, 2019
Nature of Operations [Abstract]  
NATURE OF OPERATIONS
1. NATURE OF OPERATIONS

 

Theron Resource Group (the "Company", "Theron", or "THRO") was incorporated in the State of Wyoming on April 11, 2006. There have been no material reclassifications, mergers, consolidations or purchases or sales of any significant assets not in the ordinary course of business since the date of incorporation. The Company has not yet commenced any revenue-generating operations, does not have any cash flows from operations, and is dependent on debt and equity funding to finance its operations.

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Balance Sheets (Unaudited) (Parenthetical) - $ / shares
Sep. 30, 2019
Dec. 31, 2018
Statement of Financial Position [Abstract]    
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 500,000,000 500,000,000
Common stock, shares issued 7,900,000 7,900,000
Common stock, shares outstanding 7,900,000 7,900,000
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Summary of Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2019
Accounting Policies [Abstract]  
Fair Value of Financial Instruments

Fair Value of Financial Instruments

 

Effective January 1, 2008, fair value measurements are determined by our adoption of authoritative guidance issued by the Financial Accounting Standards Board ("FASB"), with the exception of the application of the statement to non-recurring, non-financial assets and liabilities as permitted. The adoption of the authoritative guidance did not have a material impact on our fair value measurements. Fair value is defined in the authoritative guidance as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three broad levels as follows:

 

Level 1—Quoted prices in active markets for identical assets or liabilities.

 

Level 2—Inputs, other than the quoted prices in active markets, are observable either directly or indirectly.

 

Level 3—Unobservable inputs based on our assumptions.

 

We are required to use observable market data if such data is available without undue cost and effort.

 

At September 30, 2019 and December 31, 2018, the fair values of accounts payable approximate their carrying values.

Comprehensive Loss

Comprehensive Loss

 

Comprehensive loss consists of net loss and other gains and losses affecting stockholders' equity that, under U.S. GAAP, are excluded from net loss. There was no recorded other comprehensive income or loss for both the three months and nine months ended September 30, 2019 and 2018.

Use of Estimates

Use of Estimates

 

In preparing financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses in the statement of operations. Actual results could differ from those estimates.

Basic and Diluted Net Loss Per Share

Basic and Diluted Net Loss Per Share

 

The Company's computation of earnings per share ("EPS") includes basic and diluted EPS. Basic EPS is measured as the income (loss) available to common stockholders divided by the weighted average common shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution, using the treasury stock method, that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the income (loss) of the Company as if they had been converted at the beginning of the periods presented, or issuance date, if later. In computing diluted income (loss) per share, the treasury stock method assumes that outstanding options and warrants are exercised and the proceeds are used to purchase common stock at the average market price during the period. Options and warrants may have a dilutive effect under the treasury stock method only when the average market price of the common stock during the period exceeds the exercise price of the options and warrants. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

 

Income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the respective periods. Basic and diluted (loss) per common share is the same for periods in which the company reported an operating loss because all warrants and stock options outstanding are anti-dilutive.

 

There were no adjustments to net loss required for purposes of computing dilutive earnings per share.

 

For the three months and nine months ended September 30, 2019 and 2018, there were no potential dilutive securities.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

 

In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820)", reducing certain disclosures concerning the fair value hierarchy. The guidance is effective for the Company in annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Company does not expect the adoption of this guidance to have a material impact on our financial statements.

 

Other accounting pronouncements did not or are not believed by management to have a material impact on the Company's present or future financial statements.

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Basis of Presentation and Going Concern (Details) - USD ($)
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Sep. 30, 2018
Jun. 30, 2019
Mar. 31, 2019
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Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
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Cash flows in operating activities $ 39,690 $ 48,640            
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Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Cash flows used from operating activities        
Net loss $ (12,218) $ (12,306) $ (49,565) $ (49,272)
Changes in operating assets and liabilities        
Increase (Decrease) in accounts payable and accrued expenses     8,000 (1,243)
Increase in interest accrued on promissory note payable     1,875 1,875
Cash flows used in operating activities     (39,690) (48,640)
Cash flows from financing activities        
Advances from related companies     39,690 48,640
Cash flows provided by financing activities     39,690 48,640
Decrease in cash and cash equivalents    
Cash and cash equivalents - Beginning of period    
Cash and cash equivalents - End of period
Supplementary information        
Income tax paid    
Interest paid    
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Balance Sheets (Unaudited) - USD ($)
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Current liabilities    
Accounts payable and accrued expenses $ 17,295 $ 9,295
Promissory note payable - in default 50,000 50,000
Interest due on promissory note payable 21,457 19,582
Advances from related companies 172,651 132,961
Total current liabilities 261,403 211,838
Stockholders' deficiency    
Common stock, $0.001 par value, 500,000,000 shares authorized, 7,900,000 shares issued and outstanding 7,900 7,900
Additional paid-in capital 430,574 430,574
Accumulated other comprehensive loss (222) (222)
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Total liabilities and stockholders' deficiency
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Promissory Note Payable - in Default
9 Months Ended
Sep. 30, 2019
Debt Disclosure [Abstract]  
PROMISSORY NOTE PAYABLE - IN DEFAULT
5. PROMISSORY NOTE PAYABLE – IN DEFAULT

 

On March 3, 2011, the Company obtained a $50,000 loan from an unrelated party as evidenced by a promissory note (the "Promissory Note"). The loan, which is unsecured and bears interest at 5% per annum, matured on March 3, 2012. The funds were used to repay all outstanding stockholder loans and accounts payable and to provide working capital through November 30, 2012.

 

In connection with a share purchase agreement dated May 23, 2016 entered into by the Company and Horizon Investment Club Limited ("Horizon"), Horizon entered into a Deed of Waiver and Assumption of Debt (the "Waiver") with the Company pursuant to which Horizon and the Company agreed and confirmed that the Company shall novate and transfer to Horizon all its obligations and liabilities under the Promissory Note including all principal amount, accrued interests, or default interests arising thereunder and such other liabilities accrued or incurred by the Company prior to the closing of the share purchase on July 2, 2016.

 

However, the assignment of the Promissory Note has not been consented to by the creditor because the Company's efforts to contact the creditor have not been successful. Therefore, the Company may still be liable until the earlier of the date on which (i) the loan is paid off, (ii) the creditor consents to the Waiver or (iii) the statute of limitation on the Promissory Note expires (which is set to occur on March 3, 2022). Therefore, the Promissory Note is currently deemed to be in default despite the Waiver.

 

During the three months and nine months ended September 30, 2019, the Company accrued $625 and $1,875 in interest payable under the note, respectively, as compared to $625 and $1,875 for the three months and nine months ended September 30, 2018.

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Promissory Note Payable - in Default (Details) - USD ($)
3 Months Ended 9 Months Ended
Mar. 03, 2011
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Promissory Note Payable - in Default (Textual)          
Loan from an unrelated party $ 50,000        
Unsecured and bears interest rate 5.00%        
Debt instrument maturity date Mar. 03, 2012        
Promissory note description       The Company may still be liable until the earlier of the date on which (i) the loan is paid off, (ii) the creditor consents to the Waiver or (iii) the statute of limitation on the Promissory Note expires (which is set to occur on March 3, 2022).  
Accrued interest payable   $ 625 $ 625 $ 1,875 $ 1,875
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Statements of Operations and Other Comprehensive Loss (Unaudited) - USD ($)
3 Months Ended 9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2019
Sep. 30, 2018
Income Statement [Abstract]        
Revenue
General and administrative expenses (11,593) (11,681) (47,690) (47,695)
Loss from operations (11,593) (11,681) (47,690) (47,695)
Other income 298
Interest expense (625) (625) (1,875) (1,875)
Net loss (12,218) (12,306) (49,565) (49,272)
Other comprehensive loss        
Currency exchange loss
Comprehensive loss $ (12,218) $ (12,306) $ (49,565) $ (49,272)
Basic and diluted loss per common share [1]
Weighted average number of common shares used in per share calculations 7,900,000 7,900,000 7,900,000 7,900,000
[1] less than $0.01
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Basis of Presentation and Going Concern
9 Months Ended
Sep. 30, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
BASIS OF PRESENTATION AND GOING CONCERN
2. BASIS OF PRESENTATION AND GOING CONCERN

 

Basis of Presentation

 

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

 

The condensed financial statements of the Company as of and for the three months and nine months ended September 30, 2019 and 2018 are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) that have been made are necessary to fairly present the financial position of the Company as of September 30, 2019, the results of its operations for the three months and nine months ended September 30, 2019 and 2018, and its cash flows for the nine months ended September 30, 2019 and 2018. Operating results for the interim periods presented are not necessarily indicative of the results to be expected for a full fiscal year. The balance sheet at December 31, 2018 has been derived from the Company's audited financial statements included in its Form 10-K for the year ended December 31, 2018 (the "Form 10-K for 2018").

 

The statements and related notes have been prepared pursuant to U.S. GAAP for interim information, and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X promulgated by the Securities and Exchange Commission (the "SEC"). Accordingly, certain information and footnote disclosures normally included in financial statements have been omitted pursuant to such rules and regulations. These financial statements should be read in conjunction with the financial statements and other information included in the Form 10-K for 2018.

 

Going Concern

 

The accompanying financial statements have been prepared under the assumption that we will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. As of September 30, 2019, the Company has an accumulated deficit of $699,655 and a stockholders' deficiency of $261,403. The Company has incurred recurring losses from operations, and utilized cash flow in operating activities of $39,690 during the nine months ended September 30, 2019. These factors, among others, raise substantial doubt about our ability to continue as a going concern. Additionally, the Company's independent registered public accounting firm, in its report on the Company's financial statements for the year ended December 31, 2018, raised substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary should the Company be unable to continue as a going concern.

 

Management's plan to support the Company in its operations and to maintain its business strategy is to raise funds through public or private offerings and to rely on officers and directors to perform essential functions with minimal compensation. If the Company does not raise all of the money it needs from such offerings, it will have to find alternative sources, such as a private placement of securities or loans or advances from its officers, directors or others. Such additional financing may not become available on acceptable terms, and there can be no assurance that any additional financing that the Company does obtain will be sufficient to meet its needs in the long term. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations, in the case of debt financing, or cause substantial dilution for our stockholders, in the case of equity financing. If the Company requires additional cash and cannot raise it, it will either have to suspend operations or cease business entirely.

 

The accompanying financial statements do not include any adjustments related to the recoverability and classification of assets or the amounts and classifications of liabilities that might be necessary should the Company be unable to continue as a going concern.

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Summary of Significant Accounting Policies
9 Months Ended
Sep. 30, 2019
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Fair Value of Financial Instruments

 

Effective January 1, 2008, fair value measurements are determined by our adoption of authoritative guidance issued by the Financial Accounting Standards Board ("FASB"), with the exception of the application of the statement to non-recurring, non-financial assets and liabilities as permitted. The adoption of the authoritative guidance did not have a material impact on our fair value measurements. Fair value is defined in the authoritative guidance as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. A fair value hierarchy was established, which prioritizes the inputs used in measuring fair value into three broad levels as follows:

 

Level 1—Quoted prices in active markets for identical assets or liabilities.

 

Level 2—Inputs, other than the quoted prices in active markets, are observable either directly or indirectly.

 

Level 3—Unobservable inputs based on our assumptions.

 

We are required to use observable market data if such data is available without undue cost and effort.

 

At September 30, 2019 and December 31, 2018, the fair values of accounts payable approximate their carrying values.

 

Comprehensive Loss

 

Comprehensive loss consists of net loss and other gains and losses affecting stockholders' equity that, under U.S. GAAP, are excluded from net loss. There was no recorded other comprehensive income or loss for both the three months and nine months ended September 30, 2019 and 2018.

 

Use of Estimates

 

In preparing financial statements, management makes estimates and assumptions that affect the reported amounts of assets and liabilities in the balance sheets and revenues and expenses in the statement of operations. Actual results could differ from those estimates.

 

Basic and Diluted Net Loss Per Share

 

The Company's computation of earnings per share ("EPS") includes basic and diluted EPS. Basic EPS is measured as the income (loss) available to common stockholders divided by the weighted average common shares outstanding for the period. Diluted income (loss) per share reflects the potential dilution, using the treasury stock method, that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the income (loss) of the Company as if they had been converted at the beginning of the periods presented, or issuance date, if later. In computing diluted income (loss) per share, the treasury stock method assumes that outstanding options and warrants are exercised and the proceeds are used to purchase common stock at the average market price during the period. Options and warrants may have a dilutive effect under the treasury stock method only when the average market price of the common stock during the period exceeds the exercise price of the options and warrants. Potential common shares that have an anti-dilutive effect (i.e., those that increase income per share or decrease loss per share) are excluded from the calculation of diluted EPS.

 

Income (loss) per common share is computed by dividing net income (loss) by the weighted average number of shares of common stock outstanding during the respective periods. Basic and diluted (loss) per common share is the same for periods in which the company reported an operating loss because all warrants and stock options outstanding are anti-dilutive.

 

There were no adjustments to net loss required for purposes of computing dilutive earnings per share.

 

For the three months and nine months ended September 30, 2019 and 2018, there were no potential dilutive securities.

 

Recently Issued Accounting Pronouncements

 

In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820)", reducing certain disclosures concerning the fair value hierarchy. The guidance is effective for the Company in annual periods beginning after December 15, 2019, and interim periods within those annual periods. The Company does not expect the adoption of this guidance to have a material impact on our financial statements.

 

Other accounting pronouncements did not or are not believed by management to have a material impact on the Company's present or future financial statements.

XML 27 R5.htm IDEA: XBRL DOCUMENT v3.19.3
Statements of Changes in Stockholders’ Deficit (Unaudited) - USD ($)
Common stock
Additional paid-in capital
Other comprehensive loss
Accumulated deficit
Total
Balance at Dec. 31, 2017 $ 7,900 $ 430,574 $ (222) $ (588,639) $ (150,387)
Balance, shares at Dec. 31, 2017 7,900,000        
Net loss for the three-month period (24,768) (24,768)
Balance at Mar. 31, 2018 $ 7,900 430,574 (222) (613,407) (175,155)
Balance, shares at Mar. 31, 2018 7,900,000        
Net loss for the three-month period (12,198) (12,198)
Balance at Jun. 30, 2018 $ 7,900 430,574 (222) (625,605) (187,353)
Balance, shares at Jun. 30, 2018 7,900,000        
Net loss for the three-month period (12,306) (12,306)
Balance at Sep. 30, 2018 $ 7,900 430,574 (222) (637,911) (199,659)
Balance, shares at Sep. 30, 2018 7,900,000        
Balance at Dec. 31, 2018 $ 7,900 430,574 (222) (650,090) (211,838)
Balance, shares at Dec. 31, 2018 7,900,000        
Net loss for the three-month period (24,435) (24,435)
Balance at Mar. 31, 2019 $ 7,900 430,574 (222) (674,525) (236,273)
Balance, shares at Mar. 31, 2019 7,900,000        
Net loss for the three-month period (12,912) (12,912)
Balance at Jun. 30, 2019 $ 7,900 430,574 (222) (687,437) (249,185)
Balance, shares at Jun. 30, 2019 7,900,000        
Net loss for the three-month period (12,218) (12,218)
Balance at Sep. 30, 2019 $ 7,900 $ 430,574 $ (222) $ (699,655) $ (261,403)
Balance, shares at Sep. 30, 2019 7,900,000        
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Document and Entity Information - shares
9 Months Ended
Sep. 30, 2019
Nov. 12, 2019
Document and Entity Information [Abstract]    
Entity Registrant Name Theron Resource Group  
Entity Central Index Key 0001409431  
Amendment Flag false  
Current Fiscal Year End Date --12-31  
Document Type 10-Q  
Document Period End Date Sep. 30, 2019  
Document Fiscal Period Focus Q3  
Document Fiscal Year Focus 2019  
Entity Current Reporting Status Yes  
Entity Filer Category Non-accelerated Filer  
Entity Ex Transition Period false  
Entity Small Business true  
Entity Shell Company true  
Entity Emerging Growth Company false  
Entity Common Stock, Shares Outstanding   7,900,000
Entity Filer Number 000-53845  
Entity Interactive Data Current Yes  
Entity Incorporation State Country Code WY  
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Related Party Transactions
9 Months Ended
Sep. 30, 2019
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS
4. RELATED PARTY TRANSACTIONS

 

During the nine months ended September 30, 2019 and 2018, Linyi Yi Cheng Cultural Innovative Industry Zone Management Limited and Shandong Theron Education Management Co., Limited, two affiliates of the Company, in which Mr. Zhaoyu Gu, a director of the Company, holds a beneficial interest, provided net advances of $39,690 and $48,640, respectively, to finance the Company's working capital requirements.

 

Advances from related companies are unsecured, due on demand, and non-interest bearing. The outstanding advances from related companies totaled $172,651 and $132,961 as of September 30, 2019 and December 31, 2018, respectively.

 

During the nine months ended September 30, 2019 and 2018, the Company's office facility has been provided without charge by the Company's major stockholder. Such cost was not material to the financial statements and accordingly, has not been reflected therein. In view of the Company's limited operations and resources, the major stockholder did not receive any compensation from the Company during the nine months ended September 30, 2019 and 2018.

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Related Party Transactions (Details) - USD ($)
9 Months Ended
Sep. 30, 2019
Sep. 30, 2018
Dec. 31, 2018
Related Party Transactions (Textual)      
Provided net advances $ 39,690 $ 48,640  
Outstanding advances from a related company total $ 172,651   $ 132,961