0001144204-12-062293.txt : 20121114 0001144204-12-062293.hdr.sgml : 20121114 20121114143104 ACCESSION NUMBER: 0001144204-12-062293 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 20120930 FILED AS OF DATE: 20121114 DATE AS OF CHANGE: 20121114 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MANTHEY REDMOND Corp CENTRAL INDEX KEY: 0001471089 STANDARD INDUSTRIAL CLASSIFICATION: ENGINES & TURBINES [3510] IRS NUMBER: 264722406 STATE OF INCORPORATION: DE FISCAL YEAR END: 1209 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 333-161600 FILM NUMBER: 121203374 BUSINESS ADDRESS: STREET 1: 10940 WILSHIRE BOULEVARD STREET 2: SUITE 1600 CITY: LOS ANGELES STATE: CA ZIP: 90024 BUSINESS PHONE: 310 443 4116 MAIL ADDRESS: STREET 1: 10940 WILSHIRE BOULEVARD STREET 2: SUITE 1600 CITY: LOS ANGELES STATE: CA ZIP: 90024 10-Q 1 v328150_10q.htm FORM 10-Q

 

Form 10-Q

 

(Mark One)

 

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

 

For the quarterly period ended September 30, 2012

 

or

 

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

 

For the transition period from                      to                     

 

Commission file number: 333-161600

 

MANTHEY REDMOND CORPORATION.

(Exact name of registrant as specified in its charter)

 

Delaware

(State or other

jurisdiction of

incorporation or

organization)

 

26-4722406

(I.R.S. Employer

Identification No.)

     

10940 Wilshire

Boulevard, Suite

1600

Los Angeles CA

(Address of principal

executive offices)

 

90024

(Zip Code)

  

(310) 443-4116

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  x   No ¨

 

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

 

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

 

Large accelerated filer ¨

  Accelerated filer ¨  

Non-accelerated filer ¨

  Smaller reporting company x
       

(Do not check if a

smaller

reporting

company.)

   

  

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

Yes ¨ No x

 

As of November 14, 2012, there were 10,250,000 outstanding shares of the registrant’s common stock, par value $0.0001 per share. 

 

 
 

 

MANTHEY REDMOND CORPORATION.

 

Quarterly Report on Form 10-Q

for the Quarter Ended September 30, 2012

 

INDEX

 

PART I. FINANCIAL INFORMATION    
Item 1. Financial Statements (unaudited)   3
Consolidated Balance Sheets   F-1
Consolidated Statements of Operations   F-2
Consolidated Statements of Cash Flows   F-3
Notes to Unaudited Consolidated Financial Statements   F-4
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations   4
Item 3. Quantitative and Qualitative Disclosures about Market Risk   9
Item 4. Controls and Procedures   10
     
PART II. OTHER INFORMATION    
Item 1. Legal Proceedings   10
Item 1A. Risk Factors   10
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds   10
Item 3. Defaults Upon Senior Securities   10
Item 4. [Removed and Reserved]   10
Item 5. Other Information   11
Item 6. Exhibits   11
     
SIGNATURES   11
     
EX-31.1    
EX- 31.2    
EX-32.    

 

2
 

 

PART I. FINANCIAL INFORMATION

 

Item 1.Financial Statements (Unaudited)

 

MANTHEY REDMOND CORPORATION

(A Development Stage Company)

 

INDEX TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2012

 

Unaudited Consolidated Financial Statements:  
   
Consolidated Balance Sheets F-1
   
Consolidated Statements of Operations F-2
   
Consolidated Statements of Cash Flows F-3
   
Notes to Unaudited Consolidated Financial Statements F-4

 

3
 

 

MANTHEY REDMOND CORPORATION

(A Development Stage Company)

 

CONSOLIDATED BALANCE SHEETS

 

   September 30,
2012
   December 31,
2011
 
   (Unaudited)   (Audited) 
         
Assets          
           
Current Assets          
Cash and cash equivalents  $21   $9,734 
           
Other Assets   1,050    1,050 
           
Total Assets  $1,071   $10,784 
           
Liabilities and Stockholders' Deficit          
           
Current Liabilities          
Accrued expense  $512,287   $507,727 
Other payable - related party   38,950    38,950 
Total Current Liabilities   551,237    546,677 
           
           
Stockholders' Deficit          
Preferred stock - $.0001 par value; 20,000,000 shares authorized, 0 shares issued and outstanding   -    - 
Common stock - $.0001 par value; 100,000,000 shares authorized, 10,250,000 shares issued and outstanding   1,025    1,025 
Additional paid-in capital   245,758    208,078 
Accumulated deficit   (796,949)   (744,996)
Total Stockholders' Deficit   (550,166)   (535,893)
           
Total Liabilities and Stockholders' Deficit  $1,071   $10,784 

 

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

 

F-1
 

 

MANTHEY REDMOND CORPORATION

(A Development Stage Company)

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

 

   For The Three
Months Ended
September 30,
2012
   For The Three
Months Ended
September 30,
2011
   For The Nine
Months Ended
September 30,
2012
   For The Nine
Months Ended
September 30,
2011
   From April 20,
2009 (Inception)
through
September 30,
2012
 
                     
Net revenue  $-   $-   $    $    $- 
                          
Operating expenses                         
Professional services   8,173    8,129    27,795    60,553    186,755 
Rent expense   3,181    3,364    9,576    10,089    41,276 
Advertising and promotion   -    -    7,500    497    8,917 
Other   150    616    7,082    8,312    20,001 
Research and development expense   -    -    -    139,000    540,000 
Total operating expenses   11,504    12,109    51,953    218,451    796,949 
                          
Net loss  $(11,504)  $(12,109)  $(51,953)  $(218,451)  $(796,949)
                          
Net loss per common share - basic and diluted  $(0.00)  $(0.00)  $(0.01)  $(0.02)  $(0.08)
                          
Weighted average number of common shares outstanding, basic and diluted   10,250,000    10,250,000    10,250,000    10,250,000    9,911,089 

 

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

 

F-2
 

 

MANTHEY REDMOND CORPORATION

(A Development Stage Company)

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

   For The Nine
Months Ended
September 30,
2012
   For The Nine
Months Ended
September 30,
2011
   From April 20,
2009 (Inception) to
September 30,
2012
 
CASH FLOWS FROM OPERATING ACTIVITIES               
Net loss  $(51,953)  $(218,451)  $(796,949)
Adjustments to reconcile net income to net cash provided by operating activities:               
Decrease (increase) in assets:               
Other assets   -    -    (1,050)
Increase (decrease) in liabilities:               
Accrued expense and other liabilities   4,560    144,000    512,287 
Net cash used in operating activities   (47,393)   (74,451)   (285,712)
                
CASH FLOWS FROM FINANCING ACTIVITIES               
Borrowings from related party   -    -    38,950 
Proceeds from issuance of common stock   -    -    1,025 
Additonal capital contribution   37,680    74,632    245,758 
Net cash provided by financing activities   37,680    74,632    285,733 
                
NET (DECREASE) INCREASE IN CASH & CASH EQUIVALENTS   (9,713)   181    21 
                
CASH & CASH EQUIVALENTS, BEGINNING BALANCE   9,734    1,569    - 
                
CASH & CASH EQUIVALENTS, ENDING BALANCE  $21   $1,750   $21 
                
SUPPLEMENTAL DISCLOSURES:               
Interest paid  $-   $-   $- 
Income tax paid  $-   $-   $- 

 

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

 

F-3
 

 

MANTHEY REDMOND CORPORATION

(A Development Stage Company)

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS

 

Manthey Redmond Corporation (the “Company”) is a development stage company incorporated in the State of Delaware in April, 2009 to research, design, manufacture, and market technology now leased and to be developed by the Company. Manthey Redmond (Aust) Pty Ltd., an Australian corporation ("Manthey Redmond (Aust)"), is the patent owner and developer of the Manthey Redmond Eco-Engine, a fuel-efficient, lightweight, low-emission, multi-fuel engine smaller and less expensive than conventional internal combustion engines initially targeted for marine applications.

 

In May, 2009, the Company entered into a Patent Licensing Agreements with Manthey Redmond (Aust) for the development, manufacture, use, sale, and sublicense of the Manthey Redmond Eco-Engine and all developed technology and products related to the technology patent (the "Technology") for a royalty payment to Manthey Redmond (Aust) of 5% of annual gross profits. Pursuant to an Investment Agreement entered into with the Company in May, 2009, Manthey Redmond (Aust) agreed to fund to the Company monthly payments of $40,000 up to a maximum of $4,200,000 in aggregate to assist the Company in commercializing products based on the Technology. All three of the Company’s directors serve as the directors of Manthey Redmond (Aust).

 

On May 17, 2012, the Company entered into a Technology License Agreement with Manthey Redmond (Aust) Pty Ltd that superseded the Patent Licensing Agreement (entered into between the parties in April 2009) so as to grant to the Company an exclusive license for intellectual property for the following territories: United States of America, Canada, Mexico, China and India.

 

In May, 2009, the Company entered into a Development Agreement with Manthey Holdings Pty Limited (“Manthey Holdings”) for the exclusive use of Manthey Holdings' engineering facility and employees for research and development of and related to the Technology at a monthly fee of $30,000 up to a maximum of $540,000 in aggregate. In November, 2009, the Development Agreement was amended to remove the exclusivity of the use of Manthey Holdings’ engineering facility and employees, and to defer the commencement date of the agreement and first payment to November 20, 2009. The Company’s president/director is the sole shareholder and director of Manthey Holdings which serves as the trustee of the Manthey Holdings Trust. The Company’s president/director is also the beneficiary of the Manthey Holdings Trust and may be deemed the beneficial owner of the 3,040,000 shares, or 29.6% of the Company’s common stock owned by the Manthey Holdings Trust. On November 6, 2009, the agreement was amended to revise the commencement date of payment from July 1, 2009 to November 20, 2009. The maximum amount of $540,000 has been reached in the second quarter of 2011 under the development agreement, $502,227 of which has not been paid. It was recorded as accrued expenses on the consolidated balance sheets as of September 30, 2012 and December 31, 2011.

 

On June 23, 2011, the Company set up a wholly owned subsidiary MRC Global Limited in Hong Kong.

 

NOTE 2 – GOING CONCERN

 

The Company’s consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

Management’s Plan to Continue as a Going Concern

 

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plans to obtain such resources for the Company include (1) obtaining capital from the sale of its securities, (2) the sublicensing and sale of the Manthey Redmond Eco-Engine, (3) additional capital injection from Manthey Redmond (Aust) pertaining to the Investment Agreement (see Note 4), and (3) short-term borrowings from shareholders or related party when needed. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans.

 

F-4
 

 

MANTHEY REDMOND CORPORATION

(A Development Stage Company)

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations.

 

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

The unaudited consolidated financial statements of Manthey Redmond Corporation have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and pursuant to the requirements for reporting on Form 10-Q.  Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for annual consolidated financial statements.  However, the information included in these interim consolidated financial statements reflects all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of management, necessary for the fair presentation of the financial position and the results of operations.  Results shown for interim periods are not necessarily indicative of the results to be obtained for a full year.  The consolidated balance sheet information as of December 31, 2011 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K.  These interim consolidated financial statements should be read in conjunction with that report.  Certain comparative amounts have been reclassified to conform to the current period's presentation.

 

Fiscal Year

 

The fiscal year of the Company is January 1 to December 31.

 

Cash and Cash Equivalents

 

Cash and cash equivalents include unrestricted deposits and short-term investments with an original maturity of three months or less.  The Company minimizes its risk associated with cash and cash equivalents by periodically evaluating the credit quality of its primary financial institution.  The balance at times may exceed federally insured limits.  At September 30, 2012, the balance did not exceed the federally insured limit. As of September 30, 2012 and December 31, 2011, cash and cash equivalents amounted to $21 and $9,734, respectively.

 

Revenue Recognition

 

We recognize product revenue when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) our price to the customer is fixed or determinable and (iv) collection of the resulting accounts receivable is reasonably assured. We recognize revenue for product sales upon transfer of title to the customer. Customer purchase orders and/or contracts are generally used to determine the existence of an arrangement. Shipping documents and the completion of any customer acceptance requirements, when applicable, are used to verify product delivery or that services have been rendered. We assess whether a price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. We will record reductions to revenue for estimated product returns and pricing adjustments in the same period that the related revenue is recorded. These estimates will be based on historical sales returns when available, analysis of credit memo data, and other factors known at the time.

 

Use of Estimates

 

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

 

F-5
 

 

MANTHEY REDMOND CORPORATION

(A Development Stage Company)

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

Net Loss per Common Share

 

Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period.  Diluted net loss per share reflects the potential dilution of securities by including common stock equivalents, such as stock options, stock warrants and convertible preferred stock, in the weighted average number of common shares outstanding for a period, if dilutive.  At September 30, 2012 and December 31, 2011, there were no potentially dilutive securities.

 

Recently Issued Accounting Pronouncements

 

The Company has adopted all recently issued accounting pronouncements.  The adoption of the accounting pronouncements, including those not yet effective, is not anticipated to have a material effect on the financial position or results of operations of the Company.

 

NOTE 4 – RELATED PARTY TRANSACTIONS

 

Advances from Related Party

 

On June 3, 2009, the Company received $38,950 of advances from Manthey Redmond (Aust), all directors of which are also directors of the Company.  The advances were non-interest bearing loan to be repaid at the discretion of the Board of Directors of the Company. As of September 30, 2012 and December 31, 2011, advances from related party remained at $38,950.

 

Patent Licensing Agreement

 

On May 1, 2009, the Company entered into a Patent Licensing Agreement with Manthey Redmond (Aust). Manthey Redmond is the owner, developer and patent applicant of the Eco-Engine and all related technology (the "Technology") developed and to be developed. Pursuant to the agreement, Manthey Redmond (Aust) has granted to the Company, a license to develop, manufacture, have manufactured, use and sell or supply the Technology in return for a royalty fee equal to 5% of the Company's gross profits earned as a result of the license agreement. The Company has the right to sublicense its rights under the agreement and is entitled to information and use of any inventions or improvements on the Technology made by Manthey Redmond (Aust) without additional charge. Manthey Redmond (Aust) will apply for valid patents pursuant to each invention or improvements on the Technology. The agreement may be terminated at the option of Manthey Redmond (Aust) in the event that the Company becomes insolvent, or seeks protection from its creditors under any United States federal or state bankruptcy act or if an outside administrator or controller is voluntary or involuntarily appointed to control the Company. The agreement is subject to and governed by the law of Queensland, Australia.

 

On May 17, 2012, the Company entered into a Technology License Agreement with Manthey Redmond (Aust) Pty Ltd. that superseded the Patent Licensing Agreement (entered into between the parties in April 2009) so as to grant to the Company an exclusive license for intellectual property for the following territories: United States of America, Canada, Mexico, China and India.

 

Investment Agreement

 

On May 1, 2009, the Company entered into an Investment Agreement with Manthey Redmond (Aust) by which Manthey Redmond (Aust) has agreed to invest a non-refundable amount of $40,000 per month beginning July 1, 2009, aggregating $4,200,000 to assist the Company in commercializing products based on the Technology.  Manthey Redmond (Aust) may terminate this agreement in the event that the Patent Licensing Agreement is terminated.  The agreement is subject to and governed by the law of Queensland, Australia. 

 

F-6
 

 

MANTHEY REDMOND CORPORATION

(A Development Stage Company)

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

In November 2009, March 2010, May 2010, January 2011, March 2011, June 2011, August 2011, September 2011, October 2011, December 2011, February 2012, May 2012, and August 2012, the Company received $39,925, $955, $43,887, $29,596, $19,950, $20,000, $100, $4,986, $33,907, $14,771, $16,669, $17,009, and $4,003 of capital injection, respectively, or $245,758 in aggregate from Manthey Redmond(Aust) pursuant to the Investment Agreement, which was recorded as additional paid-in capital.

 

Development Agreement

 

On May 1, 2009 the Company entered into a Development Agreement with Manthey Holdings by which, commencing July 1, 2009, Manthey Holdings will provide exclusive use of its engineering facility and employees for the purpose of research and development related to the Technology for which the Company will pay Manthey Holdings $30,000 per month beginning July 1, 2009 up to a maximum of $540,000 at which time the agreement shall terminate. On November 6, 2009 the Company entered into an amended Development Agreement dated May 1, 2009 with Manthey Holdings.  The amended agreement removed the exclusivity of the use of Manthey Holdings’ engineering facility and employees, and deferred the commencement date of the agreement and first payment to November 20, 2009.  Our president/director is the sole shareholder and director of Manthey Holdings which serves as the trustee of the Manthey Holdings Trust.  Our president/director is also the beneficiary of the Manthey Holdings Trust and may be deemed the beneficial owner of the 3,040,000 shares, or 29.6% of the Company’s common stock owned by the Manthey Holdings Trust.

 

On November 6, 2009, the agreement was amended to revise the commencement date of payment from July 1, 2009 to November 20, 2009. For the three and nine months ended September 30, 2012, the Company incurred $0 of service fees pursuant to the amended agreement with Manthey Holdings and recorded in accrued expense. As of September 30, 2011, the maximum amount of $540,000 has been reached under the development agreement, $502,227 of which has not been paid. It was recorded as accrued expenses on the consolidated balance sheet as of September 30, 2012 and December 31, 2011, respectively.

 

The agreement will also terminate in the event that the Patent Licensing Agreement is terminated. Manthey Holdings has agreed to build and test prototypes based on the Technology at its research facility. The agreement is subject to and governed by the law of Queensland, Australia.

 

NOTE 5 - ACCRUED EXPENSES

 

Accrued expenses consisted of the following:

 

   September 30,   December 31, 
   2012   2011 
Accrued research and development expense – related party  $502,227   $502,227 
Accrued professional fees   9,000    5,500 
Accrued rent   1,060    - 
Total  $512,287   $507,727 

 

F-7
 

 

MANTHEY REDMOND CORPORATION

(A Development Stage Company)

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

 

NOTE 6 – STOCKHOLDERS’ DEFICIT

 

The Company is authorized to issue 100,000,000 shares of common stock with a par value of $.0001 and 20,000,000 shares of preferred stock with a par value of $.0001.  On June 1, 2009, the Company issued 10,250,000 shares of common stock at par value to its sixty-six (66) initial stockholders.

 

Holders of shares of common stock are entitled to one vote for each share on all matters to be voted on by the stockholders.  Holders of common stock do not have cumulative voting rights.  Holders of common stock are entitled to share ratably in dividends, if any, as may be declared from time to time by the board of directors in its discretion from funds legally available therefore.  In the event of a liquidation, dissolution or winding up, the holders of common stock are entitled to share pro rata all assets remaining after payment in full of all liabilities.  Holders of common stock have no preemptive rights to purchase the Company’s common stock.  There are no conversion or redemption rights or sinking fund provisions with respect to the common stock.

 

 In November 2009, March 2010, May 2010, January 2011, March 2011, June 2011, August 2011, September 2011, October 2011, December 2011, February 2012, May 2012, and August 2012, the Company received $39,925, $955, $43,887, $29,596, $19,950, $20,000, $100, $4,986, $33,907, $14,771, $16,669, and $17,009, and $4,003 of capital injection, respectively, or $245,758 in aggregate from Manthey Redmond(Aust) pursuant to the Investment Agreement(See Note 4), which was recorded as additional paid-in capital.

 

NOTE 7 – OPERATING LEASES

 

On July 10, 2009, the Company entered into a lease agreement with Premier Business Centers, under which the Company will lease approximately 165 square feet of office space located at 10940 Wilshire Boulevard, Suite 1600, Los Angeles, California 90024 at a monthly rate of $1,050.  The lease term is month-to-month commencing August 3, 2009 with security deposit of one-month rent of $1,050 recorded as Other Assets as of September 30, 2012 and December 31, 2011.

 

NOTE 8 – SUBSEQUENT EVENTS

 

The Company has evaluated events subsequent to the consolidated balance sheet date of September 30, 2012 through the date of this filing, which is the date the unaudited consolidated financial statements were available to be issued. 

 

F-8
 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

Forward-Looking Statements

 

This Quarterly Report on Form 10-Q, including "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 2 of Part I of this report include forward-looking statements. These forward looking statements are based on our management’s current expectations and beliefs and involve numerous risks and uncertainties that could cause actual results to differ materially from expectations. In some cases, you can identify forward-looking statements by terminology such as "may," "should," "expects," "plans," "anticipates," "believes," "estimates," "predicts," "potential," "proposed," "intended," or "continue" or the negative of these terms or other comparable terminology. You should read statements that contain these words carefully, because they discuss our expectations about our future operating results or our future financial condition or state other "forward-looking" information. Many factors could cause our actual results to differ materially from those projected in these forward-looking statements, including but not limited to: variability of our revenues and financial performance; risks associated with product development and technological changes; the acceptance our products in the marketplace by existing and potential future customers; general economic conditions. You should be aware that the occurrence of any of the events described in this Quarterly Report could substantially harm our business, results of operations and financial condition, and that upon the occurrence of any of these events, the trading price of our securities could decline. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, growth rates, levels of activity, performance or achievements. We are under no duty to update any of the forward-looking statements after the date of this Quarterly Report to conform these statements to actual results.

 

Current Operations

 

The Company was formed on April 20, 2009 and is a development stage company with no operating revenues or profits.  The Company has developed prototypes of the Manthey Redmond Eco-Engine which will be tested for performance validation by government agencies, potential joint venture partners and academic institutions.  After validation of the tests, the Company will market the Eco-Engine to manufacturers in the United States and overseas.

 

Expenses and Capital Expenditures

 

Other than the development agreement for use of the testing facilities at Manthey Holdings, the Company has not incurred any large expenses nor made or planned any large capital expenditures.

 

4
 

 

Report on Development of Technology

 

The Company intends to continue research and development of the Manthey Redmond Eco-Engine during 2012.  The Company is currently testing the latest prototype of the Eco-engine with field testing having commenced in mid. 2012. The Company is not incurring research and development cost for the three months ended September 30, 2012 as the facility was funded directly by the licensor. 

 

Development of the company’s licensed Technology is conducted in a competitive business environment as new technology related to internal combustion engines attempting to make engines more fuel efficient and more economical appear on the market frequently.  The successful marketing of the Technology will depend on the ability of the Company to demonstrate sustainable advantages over existing proven and other newly developed technology. Specifically, the licensed Technology must prove successful in field testing and match dynamometer performances that earlier prototypes of the Technology realized during laboratory testing.

 

Since the original 2009 prototype completed proof-of-concept status, subsequent prototypes (through ongoing advancements to various internal components) have yielded greater torque - output whilst maintaining the same cylinder displacement during dynamometer testing. In mid 2012 this ongoing refinement of the licensed Technology progressed to marine field testing. This development milestone was delayed until a marine vessel was properly adapted for prototype testing - a task undertaken by the Manthey Holdings’ development facility (the facility) in 2011 and completed by mid 2012.

 

Once initial marine field testing commenced in mid 2012 it continued for approximately six (6) weeks so as to evaluate the performance of the engine in various conditions and under various loads in a marine environment. Considerable data was collated during this period of evaluation by the facility’s development team. Analysis by the facility’s development team (and particularly the inventor Steven Manthey) of the data highlighted that greater performance could be realized through the improved design of certain engine components. In particular the data highlighted that greater thermal efficiency was available for this latest prototype through improvements to air/fuel flow into the engine and also by raising the prototype’s in-cylinder compression ratio. Such enhancements, if successful, can translate into a more fuel efficient engine and further support the marketing of the licensed Technology and its performance when compared to our competitors’ current and future products.

 

The facility has elected to test the prototype (incorporating the new components) in the marine field testing vessel instead of on its laboratory’s dynamometer in the first instance. Ultimately the current prototype will also be tested on the facility’s dynamometer as it will enable additional data to be collated (particularly data related to emissions) to both further evaluate the performance of this prototype and identify possible enhancements whilst also providing data for future marketing purposes.

 

As part of the ongoing commercialization strategy of the licensed Technology, a revised provisional patent was filed by the Licensor in August 2012 and now forms part of the licensed Technology to the Company. This revised provisional patent incorporates the enhancements referred to above.

 

Future Research and Development

 

The current prototype is spark-ignited and is expected to have reached a suitable stage for marketing purposes to commence once the prototype has been evaluated on the Australia facility’s dynamometer as discussed above. Marketing of this engine will focus on the small to mid range powered engines in various applications. Future research planned for the Facility will target much larger applications such as heavy duty trucks and industrial power supply. This research will center on the development of compression-ignition prototypes of the licensed Technology.”

 

5
 

 

Results of Operations

 

Comparison of the results of operations for the Three Months ended September 30, 2012 and 2011:

 

   For The Three
Months Ended
September 30,
2012
   For The Three
Months Ended
September 30,
2011
   Change in $   Change in % 
                 
Net revenue  $-   $-   $-    0%
                     
Operating expenses                    
Professional services   8,173    8,129    44    1%
Rent expense   3,181    3,364    (183)   -5%
Other   150    616    (466)   -76%
Total operating expenses   11,504    12,109    (605)   -5%
                     
Net loss  $(11,504)  $(12,109)  $605    -5%

 

The Company was incorporated in April 2009 to primarily engage business in the development and commercialization of the Manthey Redmond Eco-Engine and related Technologies.  For the three months ended September 30, 2012 and 2011, the Company had not generated any revenue.

 

The Company incurred $11,504 operating expenses for the three months ended September 30, 2012 compared to $12,109 operating expenses incurred for the three months ended September 30, 2011.  The total operating expenses for the three months ended September 30, 2012 primarily consisted of professional services of $8,173 and rent expense of $3,181. The operating expenses for the three months ended September 30, 2012 remained substantially steady as compared to the same period last year.

 

6
 

 

Comparison of the results of operations for the Nine Months ended September 30, 2012 and 2011:

 

   For The Nine
Months Ended
September 30,
2012
   For The Nine
Months Ended
September 30,
2011
   Change in $   Change in % 
                 
Net revenue  $-   $-   $-    0%
                     
Operating expenses                    
Professional services   27,795    60,553    (32,758)   -54%
Rent expense   9,576    10,089    (513)   -5%
Advertising and promotion   7,500    497    7,003    1409%
Other   7,082    8,312    (1,230)   -15%
Research and development expense   -    139,000    (139,000)   -100%
Total operating expenses   51,953    218,451    (166,498)   -76%
                     
Net loss  $(51,953)  $(218,451)  $166,498    -76%

 

The Company was incorporated in April 2009 to primarily engage business in the development and commercialization of the Manthey Redmond Eco-Engine and related Technologies.  For the nine months ended September 30, 2012 and 2011, the Company had not generated any revenue.

 

The Company is not incurring research and development cost for the nine months ended September 30, 2012 as the facilities was funded directly by the licensor.   The Company incurred $51,953 operating expenses for the nine months ended September 30, 2012 compared to $218,451 operating expenses incurred for the nine months ended September 30, 2011, representing a decrease of $166,498, or approximately 76%.  

 

The total operating expenses for the nine months ended September 30, 2012 primarily consisted of professional services of $27,795, rent expense of $9,576, and advertising and promotion expense of $7,500.  Professional services expense has decreased by $32,758, or 54% from $60,553 for the nine months ended September 30, 2011 to $27,795 for the same period this year. The decrease in professional services expense for the nine months ended Sep 30, 2012 was mainly because some expenses incurred in 2011 was subject to one-time charge, including the agent's fee of $3,900 to set up a subsidiary in Hong Kong in 2011, the Company’s intranet security installation fee of $5,400, and a consulting fee of $11,000 for the Company’s S-1 filing. The research and development expenses of $139,000 for the nine months ended September 30, 2011 were incurred pursuant to the amended Development Agreement with Manthey Holdings on November 6, 2009, which revises the commencement date of development service fee payment from July 1, 2009 to November 20, 2009.  As of September 30, 2011, the maximum amount of $540,000 has been reached under the development agreement, $502,227 of which has not been paid. It was recorded as accrued expenses on the consolidated balance sheet as of September 30, 2012, and December 31, 2011, respectively. As a result, no research and development expense was recorded during the nine months ended September 30, 2012.

 

Liquidity and Capital Resources

 

The following summarizes and compares the key component of the company’s cash flows for the nine months ended September 30, 2012 and the nine months ended September 30, 2011.

 

7
 

 

   2012   2011 
Net cash used in operating activities  $(47,393)  $(74,451)
Net cash used in investing activities  $-   $- 
Net cash provided by financing activities  $37,680   $74,632 
Net (decrease)increase in cash and cash equivalents  $(9,713)  $181 

 

Net cash used in operating activities was $47,393 and $74,451 for the nine months ended September 30, 2012 and 2011, respectively, which were mainly driven by net losses in the amount of $51,953 and $218,451, partially offset by increases in accrued expense and other liabilities in the amount of $4,560 and $144,000, respectively.  Increases in accrued expense and other liabilities for the nine months ended September 30, 2012 and 2011 were primarily to record unpaid professional service fees and research and development expenses to Manthey Holdings Pty Ltd pursuant to the Development Agreement, respectively.

 

Net cash provided by financing activities was $37,680 and $74,632 for the nine months ended September 30, 2012 and 2011, respectively.  During its initial organization, the Company received $38,950 in advances from Manthey Redmond (Aust) not pursuant to the Investment Agreement, and is a loan, interest free, which must be repaid.  No formal loan terms were established, but the Company intends to repay the loan once in a position to do so.  In February 2012, May 2012, and August 2012, and in January 2011, March 2011, June 2011, August 2011, and September 2011, the Company received $16,669, $17,008, and $4,003 and $29,596, $19,950, $20,000, $100, and $4,986 of capital injection, respectively from Manthey Redmond (Aust) pursuant to the Investment Agreement, which was recorded as additional paid-in capital.

 

The Company’s consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.  The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern.  The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable.  If the Company is unable to obtain adequate capital, it could be forced to cease operations.  The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

Management’s Plan to Continue as a Going Concern

 

In order to continue as a going concern, the Company will need, among other things, additional capital resources.  Management’s plans to obtain such resources for the Company include (1) obtaining capital from the sale of its securities, (2) the sublicensing and sale of the Manthey Redmond Eco-Engine, (3) additional capital injection from Manthey Redmond (Aust) pertaining to the Investment Agreement, and (3) short-term borrowings from shareholders or related party when needed.  However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans.

 

8
 

 

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations.

 

Off-Balance Sheet Arrangements

 

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

 

Inflation

 

We do not believe our business and operations have been materially affected by inflation.

 

Critical Accounting Policies and Estimates

 

Our critical accounting policies are as follows:

 

Revenue Recognition

 

We recognize product revenue when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) our price to the customer is fixed or determinable and (iv) collection of the resulting accounts receivable is reasonably assured. We recognize revenue for product sales upon transfer of title to the customer. Customer purchase orders and/or contracts are generally used to determine the existence of an arrangement. Shipping documents and the completion of any customer acceptance requirements, when applicable, are used to verify product delivery or that services have been rendered. We assess whether a price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. We will record reductions to revenue for estimated product returns and pricing adjustments in the same period that the related revenue is recorded. These estimates will be based on historical sales returns when available, analysis of credit memo data, and other factors known at the time.

 

Use of Estimates

 

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

 

Recently Issued Accounting Pronouncements

 

The Company has adopted all recently issued accounting pronouncements.  The adoption of the accounting pronouncements, including those not yet effective, is not anticipated to have a material effect on the financial position or results of operations of the Company.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

As a “smaller reporting company”, we are not required to provide the information under this Item 3.

 

9
 

 

Item 4. Controls and Procedures.

 

Evaluation of Disclosure Controls and Procedures

 

Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 as of the end of the period covered by this report (the “Evaluation Date”). The framework used by management in making that assessment was the criteria set forth in the document entitled “ Internal Control – Integrated Framework” issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based upon the evaluation, our principal executive officer and principal financial officer concluded as of the Evaluation Date that our disclosure controls and procedures were effective. Disclosure controls are controls and procedures designed to reasonably ensure that information required to be disclosed in our reports filed under the Exchange Act, such as this report, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. Disclosure controls include controls and procedures designed to reasonably ensure that such information is accumulated and communicated to our management, including our chief executive officer and chief financial officer, as appropriate to allow timely decisions regarding required disclosure.

 

Changes in Internal Controls Over Financial Reporting

 

There were no changes in our internal controls over financial reporting that occurred during the quarterly period covered by this report that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

PART II. OTHER INFORMATION

 

Item 1. Legal Proceedings

 

None

 

Item 1A.  Risk Factors

 

Not applicable

 

Item 2  Unregistered Sales of Equity Securities and use of proceeds

 

None

 

Item 3  Defaults upon senior securities

 

None

 

Item 4.  [removed and reserved]

 

10
 

 

Item 5. Other Information 

 

None

 

Item 6. Exhibits

 

(a) Exhibits

 

Exhibit

Number

  Description
31.1*   Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
31.2*   Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
32*   Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 filed herewith.

 

SIGNATURES

 

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

 

  MANTHEY REDMOND CORPORATION.
  (Registrant)
     
Date: November 14, 2012 By: /s/ Steven Charles Manthey
    Steven Charles Manthey
    Director, President and
    Chief Executive Officer

 

11

EX-31.1 2 v328150_31-1.htm EXHIBIT 31.1

 

 

Exhibit 31.1

CERTIFICATIONS

 

I, Steven Charles Manthey, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q (the “report”) of Manthey Redmond Corporation;

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 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 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 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 controls 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, 2012

 

By:

/s/ Steven Charles Manthey

 Steven Charles Manthey

 Chief Executive Officer

  

 

 

 

 

 

EX-31.2 3 v328150_31-2.htm EXHIBIT 31.2

 

 

Exhibit 31.2

CERTIFICATIONS

 

I, Steven Charles Manthey, certify that:

 

1. I have reviewed this Quarterly Report on Form 10-Q (the “report”) of Manthey Redmond Corporation.;

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 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 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 controls 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, 2012

 

By:

/s/ Steven Charles Manthey

 Steven Charles Manthey

 Chief Financial Officer

 

 

 

 

 

 

EX-32.1 4 v328150_32-1.htm EXHIBIT 32.1

 

Exhibit 32.1

CERTIFICATIONS

 

Certification of Chief Executive Officer and Chief Financial Officer  Pursuant to 18 U.S.C. Section 1350

  

The undersigned, Steven Charles Manthey, in his capacities as Chief Executive Officer and director of Manthey Redmond Corporation. (the “Registrant”) does each hereby certify with respect to the Quarterly Report on Form 10-Q of the Registrant for the period ended  September 30, 2012, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), that, to the best of his knowledge:

 

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant as of, and for, the periods presented in this Report.

 

Date: November 14, 2012

/s/ Steven Charles Manthey

 

 

Steven Charles Manthey

Chief Executive Officer and Chief Financial Officer

 

 

 

The foregoing certification is being furnished solely pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, and is not being “filed” as part of the Form 10-Q or as a separate disclosure document for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to liability under that section. This certification shall not be deemed to be incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act except to the extent that this Exhibit 32.1 is expressly and specifically incorporated by reference in any such filing.

 

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

 

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Manthey Redmond (Aust) Pty Ltd., an Australian corporation ("Manthey Redmond (Aust)"), is the patent owner and developer of the Manthey Redmond Eco-Engine, a fuel-efficient, lightweight, low-emission, multi-fuel engine smaller and less expensive than conventional internal combustion engines initially targeted for marine applications.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">In May, 2009, the Company entered into a Patent Licensing Agreements with Manthey Redmond (Aust) for the development, manufacture, use, sale, and sublicense of the Manthey Redmond Eco-Engine and all developed technology and products related to the technology patent (the "Technology") for a royalty payment to Manthey Redmond (Aust) of 5% of annual gross profits. Pursuant to an Investment Agreement entered into with the Company in May, 2009, Manthey Redmond (Aust) agreed to fund to the Company monthly payments of $40,000 up to a maximum of $4,200,000 in aggregate to assist the Company in commercializing products based on the Technology. All three of the Company&#8217;s directors serve as the directors of Manthey Redmond (Aust).</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">On May 17, 2012, the Company entered into a Technology License Agreement with Manthey Redmond (Aust) Pty Ltd that superseded the Patent Licensing Agreement (entered into between the parties in April 2009) so as to grant to the Company an exclusive license for intellectual property for the following territories: United States of America, Canada, Mexico, China and India.</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">&#160;</p> <p style="text-align: justify; margin: 0pt 0px; font: 10pt times new roman, times, serif;">In May, 2009, the Company entered into a Development Agreement with Manthey Holdings Pty Limited (&#8220;Manthey Holdings&#8221;) for the exclusive use of Manthey Holdings' engineering facility and employees for research and development of and related to the Technology at a monthly fee of $30,000 up to a maximum of $540,000 in aggregate. 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RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 2012
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS

NOTE 4 – RELATED PARTY TRANSACTIONS

 

Advances from Related Party

 

On June 3, 2009, the Company received $38,950 of advances from Manthey Redmond (Aust), all directors of which are also directors of the Company.  The advances were non-interest bearing loan to be repaid at the discretion of the Board of Directors of the Company. As of September 30, 2012 and December 31, 2011, advances from related party remained at $38,950.

 

Patent Licensing Agreement

 

On May 1, 2009, the Company entered into a Patent Licensing Agreement with Manthey Redmond (Aust). Manthey Redmond is the owner, developer and patent applicant of the Eco-Engine and all related technology (the "Technology") developed and to be developed. Pursuant to the agreement, Manthey Redmond (Aust) has granted to the Company, a license to develop, manufacture, have manufactured, use and sell or supply the Technology in return for a royalty fee equal to 5% of the Company's gross profits earned as a result of the license agreement. The Company has the right to sublicense its rights under the agreement and is entitled to information and use of any inventions or improvements on the Technology made by Manthey Redmond (Aust) without additional charge. Manthey Redmond (Aust) will apply for valid patents pursuant to each invention or improvements on the Technology. The agreement may be terminated at the option of Manthey Redmond (Aust) in the event that the Company becomes insolvent, or seeks protection from its creditors under any United States federal or state bankruptcy act or if an outside administrator or controller is voluntary or involuntarily appointed to control the Company. The agreement is subject to and governed by the law of Queensland, Australia.

 

On May 17, 2012, the Company entered into a Technology License Agreement with Manthey Redmond (Aust) Pty Ltd. that superseded the Patent Licensing Agreement (entered into between the parties in April 2009) so as to grant to the Company an exclusive license for intellectual property for the following territories: United States of America, Canada, Mexico, China and India.

 

Investment Agreement

 

On May 1, 2009, the Company entered into an Investment Agreement with Manthey Redmond (Aust) by which Manthey Redmond (Aust) has agreed to invest a non-refundable amount of $40,000 per month beginning July 1, 2009, aggregating $4,200,000 to assist the Company in commercializing products based on the Technology.  Manthey Redmond (Aust) may terminate this agreement in the event that the Patent Licensing Agreement is terminated.  The agreement is subject to and governed by the law of Queensland, Australia. 

 

In November 2009, March 2010, May 2010, January 2011, March 2011, June 2011, August 2011, September 2011, October 2011, December 2011, February 2012, May 2012, and August 2012, the Company received $39,925, $955, $43,887, $29,596, $19,950, $20,000, $100, $4,986, $33,907, $14,771, $16,669, $17,009, and $4,003 of capital injection, respectively, or $245,758 in aggregate from Manthey Redmond(Aust) pursuant to the Investment Agreement, which was recorded as additional paid-in capital.

 

Development Agreement

 

On May 1, 2009 the Company entered into a Development Agreement with Manthey Holdings by which, commencing July 1, 2009, Manthey Holdings will provide exclusive use of its engineering facility and employees for the purpose of research and development related to the Technology for which the Company will pay Manthey Holdings $30,000 per month beginning July 1, 2009 up to a maximum of $540,000 at which time the agreement shall terminate. On November 6, 2009 the Company entered into an amended Development Agreement dated May 1, 2009 with Manthey Holdings.  The amended agreement removed the exclusivity of the use of Manthey Holdings’ engineering facility and employees, and deferred the commencement date of the agreement and first payment to November 20, 2009.  Our president/director is the sole shareholder and director of Manthey Holdings which serves as the trustee of the Manthey Holdings Trust.  Our president/director is also the beneficiary of the Manthey Holdings Trust and may be deemed the beneficial owner of the 3,040,000 shares, or 29.6% of the Company’s common stock owned by the Manthey Holdings Trust.

 

On November 6, 2009, the agreement was amended to revise the commencement date of payment from July 1, 2009 to November 20, 2009. For the three and nine months ended September 30, 2012, the Company incurred $0 of service fees pursuant to the amended agreement with Manthey Holdings and recorded in accrued expense. As of September 30, 2011, the maximum amount of $540,000 has been reached under the development agreement, $502,227 of which has not been paid. It was recorded as accrued expenses on the consolidated balance sheet as of September 30, 2012 and December 31, 2011, respectively.

 

The agreement will also terminate in the event that the Patent Licensing Agreement is terminated. Manthey Holdings has agreed to build and test prototypes based on the Technology at its research facility. The agreement is subject to and governed by the law of Queensland, Australia.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
9 Months Ended
Sep. 30, 2012
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

The unaudited consolidated financial statements of Manthey Redmond Corporation have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and pursuant to the requirements for reporting on Form 10-Q.  Accordingly, they do not include all the information and footnotes required by accounting principles generally accepted in the United States of America for annual consolidated financial statements.  However, the information included in these interim consolidated financial statements reflects all adjustments (consisting solely of normal recurring adjustments) which are, in the opinion of management, necessary for the fair presentation of the financial position and the results of operations.  Results shown for interim periods are not necessarily indicative of the results to be obtained for a full year.  The consolidated balance sheet information as of December 31, 2011 was derived from the audited consolidated financial statements included in the Company’s Annual Report on Form 10-K.  These interim consolidated financial statements should be read in conjunction with that report.  Certain comparative amounts have been reclassified to conform to the current period's presentation.

 

Fiscal Year

 

The fiscal year of the Company is January 1 to December 31.

 

Cash and Cash Equivalents

 

Cash and cash equivalents include unrestricted deposits and short-term investments with an original maturity of three months or less.  The Company minimizes its risk associated with cash and cash equivalents by periodically evaluating the credit quality of its primary financial institution.  The balance at times may exceed federally insured limits.  At September 30, 2012, the balance did not exceed the federally insured limit. As of September 30, 2012 and December 31, 2011, cash and cash equivalents amounted to $21 and $9,734, respectively.

 

Revenue Recognition

 

We recognize product revenue when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) our price to the customer is fixed or determinable and (iv) collection of the resulting accounts receivable is reasonably assured. We recognize revenue for product sales upon transfer of title to the customer. Customer purchase orders and/or contracts are generally used to determine the existence of an arrangement. Shipping documents and the completion of any customer acceptance requirements, when applicable, are used to verify product delivery or that services have been rendered. We assess whether a price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. We will record reductions to revenue for estimated product returns and pricing adjustments in the same period that the related revenue is recorded. These estimates will be based on historical sales returns when available, analysis of credit memo data, and other factors known at the time.

 

Use of Estimates

 

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

 

Net Loss per Common Share

 

Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period.  Diluted net loss per share reflects the potential dilution of securities by including common stock equivalents, such as stock options, stock warrants and convertible preferred stock, in the weighted average number of common shares outstanding for a period, if dilutive.  At September 30, 2012 and December 31, 2011, there were no potentially dilutive securities.

 

Recently Issued Accounting Pronouncements

 

The Company has adopted all recently issued accounting pronouncements.  The adoption of the accounting pronouncements, including those not yet effective, is not anticipated to have a material effect on the financial position or results of operations of the Company.

XML 15 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED BALANCE SHEETS (USD $)
Sep. 30, 2012
Dec. 31, 2011
Current Assets    
Cash and cash equivalents $ 21 $ 9,734
Other Assets 1,050 1,050
Total Assets 1,071 10,784
Current Liabilities    
Accrued expense 512,287 507,727
Other payable - related party 38,950 38,950
Total Current Liabilities 551,237 546,677
Stockholders' Deficit    
Preferred stock - $.0001 par value; 20,000,000 shares authorized, 0 shares issued and outstanding 0 0
Common stock - $.0001 par value; 100,000,000 shares authorized, 10,250,000 shares issued and outstanding 1,025 1,025
Additional paid-in capital 245,758 208,078
Accumulated deficit (796,949) (744,996)
Total Stockholders' Deficit (550,166) (535,893)
Total Liabilities and Stockholders' Deficit $ 1,071 $ 10,784
XML 16 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
ORGANIZATION AND NATURE OF OPERATIONS
9 Months Ended
Sep. 30, 2012
Organization, Consolidation and Presentation Of Financial Statements [Abstract]  
ORGANIZATION AND NATURE OF OPERATIONS

NOTE 1 – ORGANIZATION AND NATURE OF OPERATIONS

 

Manthey Redmond Corporation (the “Company”) is a development stage company incorporated in the State of Delaware in April, 2009 to research, design, manufacture, and market technology now leased and to be developed by the Company. Manthey Redmond (Aust) Pty Ltd., an Australian corporation ("Manthey Redmond (Aust)"), is the patent owner and developer of the Manthey Redmond Eco-Engine, a fuel-efficient, lightweight, low-emission, multi-fuel engine smaller and less expensive than conventional internal combustion engines initially targeted for marine applications.

 

In May, 2009, the Company entered into a Patent Licensing Agreements with Manthey Redmond (Aust) for the development, manufacture, use, sale, and sublicense of the Manthey Redmond Eco-Engine and all developed technology and products related to the technology patent (the "Technology") for a royalty payment to Manthey Redmond (Aust) of 5% of annual gross profits. Pursuant to an Investment Agreement entered into with the Company in May, 2009, Manthey Redmond (Aust) agreed to fund to the Company monthly payments of $40,000 up to a maximum of $4,200,000 in aggregate to assist the Company in commercializing products based on the Technology. All three of the Company’s directors serve as the directors of Manthey Redmond (Aust).

 

On May 17, 2012, the Company entered into a Technology License Agreement with Manthey Redmond (Aust) Pty Ltd that superseded the Patent Licensing Agreement (entered into between the parties in April 2009) so as to grant to the Company an exclusive license for intellectual property for the following territories: United States of America, Canada, Mexico, China and India.

 

In May, 2009, the Company entered into a Development Agreement with Manthey Holdings Pty Limited (“Manthey Holdings”) for the exclusive use of Manthey Holdings' engineering facility and employees for research and development of and related to the Technology at a monthly fee of $30,000 up to a maximum of $540,000 in aggregate. In November, 2009, the Development Agreement was amended to remove the exclusivity of the use of Manthey Holdings’ engineering facility and employees, and to defer the commencement date of the agreement and first payment to November 20, 2009. The Company’s president/director is the sole shareholder and director of Manthey Holdings which serves as the trustee of the Manthey Holdings Trust. The Company’s president/director is also the beneficiary of the Manthey Holdings Trust and may be deemed the beneficial owner of the 3,040,000 shares, or 29.6% of the Company’s common stock owned by the Manthey Holdings Trust. On November 6, 2009, the agreement was amended to revise the commencement date of payment from July 1, 2009 to November 20, 2009. The maximum amount of $540,000 has been reached in the second quarter of 2011 under the development agreement, $502,227 of which has not been paid. It was recorded as accrued expenses on the consolidated balance sheets as of September 30, 2012 and December 31, 2011.

 

On June 23, 2011, the Company set up a wholly owned subsidiary MRC Global Limited in Hong Kong.

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XML 18 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
GOING CONCERN
9 Months Ended
Sep. 30, 2012
Going Concern [Abstract]  
GOING CONCERN

NOTE 2 – GOING CONCERN

The Company’s consolidated financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations. The accompanying consolidated financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

Management’s Plan to Continue as a Going Concern

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plans to obtain such resources for the Company include (1) obtaining capital from the sale of its securities, (2) the sublicensing and sale of the Manthey Redmond Eco-Engine, (3) additional capital injection from Manthey Redmond (Aust) pertaining to the Investment Agreement (see Note 4), and (3) short-term borrowings from shareholders or related party when needed. However, management cannot provide any assurance that the Company will be successful in accomplishing any of its plans.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations.

XML 19 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Preferred stock, par value $ 0.0001 $ 0.0001
Preferred stock, shares authorized 20,000,000 20,000,000
Preferred stock, shares issued 0 0
Preferred stock, shares outstanding 0 0
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 100,000,000 100,000,000
Common stock, shares issued 10,250,000 10,250,000
Common stock, shares outstanding 10,250,000 10,250,000
XML 20 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
Summary of Significant Accounting Policies - Additional Information (Detail) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Sep. 30, 2011
Dec. 31, 2010
Apr. 20, 2009
Summary Of Significant Accounting Policies [Line Items]          
Cash and cash equivalents $ 21 $ 9,734 $ 1,750 $ 1,569 $ 0
XML 21 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
Document and Entity Information
9 Months Ended
Sep. 30, 2012
Nov. 14, 2012
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2012  
Document Fiscal Year Focus 2012  
Document Fiscal Period Focus Q3  
Trading Symbol MHYR  
Entity Registrant Name MANTHEY REDMOND CORP  
Entity Central Index Key 0001471089  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock Shares Outstanding   10,250,000
XML 22 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
Related Party Transactions - Additional Information (Detail) (USD $)
1 Months Ended 3 Months Ended 9 Months Ended 41 Months Ended 1 Months Ended
Aug. 31, 2012
May 31, 2012
Feb. 29, 2012
Dec. 31, 2011
Oct. 31, 2011
Sep. 30, 2011
Aug. 31, 2011
Jun. 30, 2011
Mar. 31, 2011
Jan. 31, 2011
May 31, 2010
Mar. 31, 2010
Nov. 30, 2009
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Jun. 03, 2009
May 31, 2009
Patent Licensing Agreements [Member]
May 31, 2009
Patent Licensing Agreements [Member]
Maximum [Member]
May 31, 2009
Patent Licensing Agreements [Member]
Monthly Payment [Member]
May 31, 2009
Development Agreement [Member]
Maximum [Member]
May 31, 2009
Development Agreement [Member]
Monthly Payment [Member]
Related Party Transaction [Line Items]                                                
Advances from related party       $ 38,950                   $ 38,950   $ 38,950   $ 38,950 $ 38,950          
Royalty payment, percentage of annual gross profit                                       5.00%        
Funding from Manthey Redmon (Aust)                                         4,200,000 40,000    
Proceeds received from Manthey Redmond(Aust) pursuant to the Investment Agreement 4,003 17,009 16,669 14,771 33,907 4,986 100 20,000 19,950 29,596 43,887 955 39,925                      
Additional paid-in capital       208,078                   245,758   245,758   245,758            
Research and development expense                           0 0 0 139,000 540,000         540,000 30,000
Manthey Holdings Trust, common stock                           3,040,000   3,040,000   3,040,000            
Manthey Holdings Trust, percentage of common stock owned                           29.60%   29.60%   29.60%            
Accrued expenses       $ 502,227                   $ 502,227   $ 502,227   $ 502,227            
XML 23 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
3 Months Ended 9 Months Ended 41 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Net revenue $ 0 $ 0 $ 0 $ 0 $ 0
Operating expenses          
Professional services 8,173 8,129 27,795 60,553 186,755
Rent expense 3,181 3,364 9,576 10,089 41,276
Advertising and promotion 0 0 7,500 497 8,917
Other 150 616 7,082 8,312 20,001
Research and development expense 0 0 0 139,000 540,000
Total operating expenses 11,504 12,109 51,953 218,451 796,949
Net loss $ (11,504) $ (12,109) $ (51,953) $ (218,451) $ (796,949)
Net loss per common share - basic and diluted $ 0.00 $ 0.00 $ (0.01) $ (0.02) $ (0.08)
Weighted average number of common shares outstanding, basic and diluted 10,250,000 10,250,000 10,250,000 10,250,000 9,911,089
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OPERATING LEASES
9 Months Ended
Sep. 30, 2012
Leases [Abstract]  
OPERATING LEASES

NOTE 7 – OPERATING LEASES

 

On July 10, 2009, the Company entered into a lease agreement with Premier Business Centers, under which the Company will lease approximately 165 square feet of office space located at 10940 Wilshire Boulevard, Suite 1600, Los Angeles, California 90024 at a monthly rate of $1,050.  The lease term is month-to-month commencing August 3, 2009 with security deposit of one-month rent of $1,050 recorded as Other Assets as of September 30, 2012 and December 31, 2011.

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STOCKHOLDERS' DEFICIT
9 Months Ended
Sep. 30, 2012
Equity [Abstract]  
STOCKHOLDERS' DEFICIT

NOTE 6 – STOCKHOLDERS’ DEFICIT

 

The Company is authorized to issue 100,000,000 shares of common stock with a par value of $.0001 and 20,000,000 shares of preferred stock with a par value of $.0001.  On June 1, 2009, the Company issued 10,250,000 shares of common stock at par value to its sixty-six (66) initial stockholders.

 

Holders of shares of common stock are entitled to one vote for each share on all matters to be voted on by the stockholders.  Holders of common stock do not have cumulative voting rights.  Holders of common stock are entitled to share ratably in dividends, if any, as may be declared from time to time by the board of directors in its discretion from funds legally available therefore.  In the event of a liquidation, dissolution or winding up, the holders of common stock are entitled to share pro rata all assets remaining after payment in full of all liabilities.  Holders of common stock have no preemptive rights to purchase the Company’s common stock.  There are no conversion or redemption rights or sinking fund provisions with respect to the common stock.

 

 In November 2009, March 2010, May 2010, January 2011, March 2011, June 2011, August 2011, September 2011, October 2011, December 2011, February 2012, May 2012, and August 2012, the Company received $39,925, $955, $43,887, $29,596, $19,950, $20,000, $100, $4,986, $33,907, $14,771, $16,669, and $17,009, and $4,003 of capital injection, respectively, or $245,758 in aggregate from Manthey Redmond(Aust) pursuant to the Investment Agreement(See Note 4), which was recorded as additional paid-in capital.

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Accrued Expenses (Detail) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Schedule of Accrued Liabilities [Line Items]    
Accrued research and development expense - related party $ 502,227 $ 502,227
Accrued professional fees 9,000 5,500
Accrued rent 1,060 0
Total $ 512,287 $ 507,727
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ACCRUED EXPENSES (Tables)
9 Months Ended
Sep. 30, 2012
Payables and Accruals [Abstract]  
Accrued Expenses

Accrued expenses consisted of the following:

 

    September 30,     December 31,  
    2012     2011  
Accrued research and development expense – related party   $ 502,227     $ 502,227  
Accrued professional fees     9,000       5,500  
Accrued rent     1,060       -  
Total   $ 512,287     $ 507,727  

XML 29 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUBSEQUENT EVENTS
9 Months Ended
Sep. 30, 2012
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 8 – SUBSEQUENT EVENTS

 

The Company has evaluated events subsequent to the consolidated balance sheet date of September 30, 2012 through the date of this filing, which is the date the unaudited consolidated financial statements were available to be issued.

XML 30 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
9 Months Ended
Sep. 30, 2012
Accounting Policies [Abstract]  
Fiscal Year

Fiscal Year

 

The fiscal year of the Company is January 1 to December 31.
Cash and Cash Equivalents

Cash and Cash Equivalents

 

Cash and cash equivalents include unrestricted deposits and short-term investments with an original maturity of three months or less.  The Company minimizes its risk associated with cash and cash equivalents by periodically evaluating the credit quality of its primary financial institution.  The balance at times may exceed federally insured limits.  At September 30, 2012, the balance did not exceed the federally insured limit. As of September 30, 2012 and December 31, 2011, cash and cash equivalents amounted to $21 and $9,734, respectively.

Revenue Recognition

Revenue Recognition

 

We recognize product revenue when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred, (iii) our price to the customer is fixed or determinable and (iv) collection of the resulting accounts receivable is reasonably assured. We recognize revenue for product sales upon transfer of title to the customer. Customer purchase orders and/or contracts are generally used to determine the existence of an arrangement. Shipping documents and the completion of any customer acceptance requirements, when applicable, are used to verify product delivery or that services have been rendered. We assess whether a price is fixed or determinable based upon the payment terms associated with the transaction and whether the sales price is subject to refund or adjustment. We will record reductions to revenue for estimated product returns and pricing adjustments in the same period that the related revenue is recorded. These estimates will be based on historical sales returns when available, analysis of credit memo data, and other factors known at the time.
Use of Estimates

Use of Estimates

 

The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. 
Net Loss per Common Share

Net Loss per Common Share

 

Basic net loss per share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period.  Diluted net loss per share reflects the potential dilution of securities by including common stock equivalents, such as stock options, stock warrants and convertible preferred stock, in the weighted average number of common shares outstanding for a period, if dilutive.  At September 30, 2012 and December 31, 2011, there were no potentially dilutive securities.

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

 

The Company has adopted all recently issued accounting pronouncements.  The adoption of the accounting pronouncements, including those not yet effective, is not anticipated to have a material effect on the financial position or results of operations of the Company.
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Organization and Nature of Operations - Additional Information (Detail) (USD $)
3 Months Ended 9 Months Ended 41 Months Ended 1 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Dec. 31, 2011
May 31, 2009
May 31, 2009
Development Agreement [Member]
Maximum [Member]
May 31, 2009
Development Agreement [Member]
Monthly Payment [Member]
May 31, 2009
Patent Licensing Agreements [Member]
May 31, 2009
Patent Licensing Agreements [Member]
Maximum [Member]
May 31, 2009
Patent Licensing Agreements [Member]
Monthly Payment [Member]
Organization and Nature of Operations [Line Items]                        
Royalty payment, percentage of annual gross profit                   5.00%    
Funding from Manthey Redmon (Aust)                     $ 4,200,000 $ 40,000
Number of Company directors that serve as directors of Manthey Redmond (Aust)             3          
Research and development expense 0 0 0 139,000 540,000     540,000 30,000      
Manthey Holdings Trust, common stock 3,040,000   3,040,000   3,040,000              
Manthey Holdings Trust, percentage of common stock owned 29.60%   29.60%   29.60%              
Accrued expenses $ 502,227   $ 502,227   $ 502,227 $ 502,227            
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Operating Leases - Additional Information (Detail) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Jul. 10, 2009
Operating Leased Assets [Line Items]      
Lease agreement, office space leased     165
Lease agreement, monthly payment     $ 1,050
Other Assets $ 1,050 $ 1,050  
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CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
9 Months Ended 41 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
CASH FLOWS FROM OPERATING ACTIVITIES      
Net loss $ (51,953) $ (218,451) $ (796,949)
Decrease (increase) in assets:      
Other assets 0 0 (1,050)
Increase (decrease) in liabilities:      
Accrued expense and other liabilities 4,560 144,000 512,287
Net cash used in operating activities (47,393) (74,451) (285,712)
CASH FLOWS FROM FINANCING ACTIVITIES      
Borrowings from related party 0 0 38,950
Proceeds from issuance of common stock 0 0 1,025
Additonal capital contribution 37,680 74,632 245,758
Net cash provided by financing activities 37,680 74,632 285,733
NET (DECREASE) INCREASE IN CASH & CASH EQUIVALENTS (9,713) 181 21
CASH & CASH EQUIVALENTS, BEGINNING BALANCE 9,734 1,569 0
CASH & CASH EQUIVALENTS, ENDING BALANCE 21 1,750 21
SUPPLEMENTAL DISCLOSURES:      
Interest paid 0 0 0
Income tax paid $ 0 $ 0 $ 0
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ACCRUED EXPENSES
9 Months Ended
Sep. 30, 2012
Payables and Accruals [Abstract]  
ACCRUED EXPENSES

NOTE 5 - ACCRUED EXPENSES

 

Accrued expenses consisted of the following:

 

    September 30,     December 31,  
    2012     2011  
Accrued research and development expense – related party   $ 502,227     $ 502,227  
Accrued professional fees     9,000       5,500  
Accrued rent     1,060       -  
Total   $ 512,287     $ 507,727
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Stockholders Deficit - Additional Information (Detail) (USD $)
1 Months Ended
Aug. 31, 2012
May 31, 2012
Feb. 29, 2012
Dec. 31, 2011
Oct. 31, 2011
Sep. 30, 2011
Aug. 31, 2011
Jun. 30, 2011
Mar. 31, 2011
Jan. 31, 2011
May 31, 2010
Mar. 31, 2010
Nov. 30, 2009
Sep. 30, 2012
Jun. 01, 2009
Class of Stock [Line Items]                              
Common stock, shares authorized       100,000,000                   100,000,000  
Common stock, par value       $ 0.0001                   $ 0.0001  
Preferred stock, shares authorized       20,000,000                   20,000,000  
Preferred stock, par value       $ 0.0001                   $ 0.0001  
Common stock, shares issued       10,250,000                   10,250,000 10,250,000
Common stock, number of initial stockholders issued                             66
Common stock, votes per share           1                  
Proceeds received from Manthey Redmond(Aust) pursuant to the Investment Agreement $ 4,003 $ 17,009 $ 16,669 $ 14,771 $ 33,907 $ 4,986 $ 100 $ 20,000 $ 19,950 $ 29,596 $ 43,887 $ 955 $ 39,925    
Additional paid-in capital       $ 208,078                   $ 245,758