Nevada
|
86-0931332
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
Consolidated
Balance Sheets
|
F-1
|
Consolidated
Statements of Operations
|
F-2
|
Consolidated
Statements of Cash Flows
|
F-3
|
Notes
to Consolidated Financial Statements
|
F-4
|
CONSOLIDATED
BALANCE SHEETS
|
||||||||
ASSETS
|
||||||||
September
30,
|
December
31,
|
|||||||
2008
|
2007
|
|||||||
(Unaudited)
|
|
|||||||
TOTAL
ASSETS
|
-
|
-
|
||||||
LIABILITIES
AND STOCKHOLDERS’ DEFICIT
|
||||||||
CURRENT
LIABILITIES
|
||||||||
Net
liabilities of discontinued entities
|
$
|
$25,647,641
|
$
|
$34,412,897
|
||||
Total
Current Liabilities
|
25,647,641
|
34,412,897
|
||||||
STOCKHOLDERS’
DEFICIT
|
||||||||
Preferred
stock, par value $0.001, 5,000,000 shares
|
||||||||
authorized,
none issued and outstanding
|
||||||||
Common
stock, par value $0.001, 300,000,000 shares
|
||||||||
authorized,
257,600,680 and 257,600,680 issued and
|
||||||||
outstanding
in 2008 and 2007, respectively
|
257,600
|
257,600
|
||||||
Additional
paid-in capital
|
4,573,217
|
4,573,217
|
||||||
Accumulated
other comprehensive income
|
204,559
|
|
(1,843,600
|
)
|
||||
Accumulated
deficit
|
(30,683,017
|
)
|
(37,400,114
|
)
|
||||
Total
Stockholders’ Deficit
|
(25,647,641
|
)
|
(34,412,897
|
)
|
||||
Total
Liabilities and Stockholders’ Deficit
|
$
|
-
|
$
|
-
|
For
the Three Months Ended
|
For
the Nine Months Ended
|
|||||||||||||||
September
30th,
|
September
30th,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
DISCONTINUED
OPERATIONS
|
||||||||||||||||
Loss
from discontinued operations
|
||||||||||||||||
(Net
of income tax expense of $0)
|
$
|
111,479
|
$
|
598,056
|
$
|
566,616
|
$
|
4,730,732
|
||||||||
Gain
on disposal of discontinued assets
|
-
|
|
-
|
(7,283,713
|
)
|
-
|
||||||||||
(Net
of income tax expense of $0)
|
-
|
-
|
-
|
-
|
||||||||||||
Total
Discontinued Operations
|
111,479
|
598,056
|
(6,717,097
|
) |
4,730,732
|
|||||||||||
NET
Income (Loss)
|
$
|
(111,479
|
)
|
$
|
( 598,056
|
)
|
$
|
6,717,097
|
$
|
(4,730,732
|
)
|
|||||
NET
GAIN (LOSS) PER SHARE
|
||||||||||||||||
(BASIC
AND DILUTED)
|
||||||||||||||||
Continuing
operations
|
-
|
-
|
-
|
-
|
||||||||||||
Discontinued
operations
|
$
|
-
|
$
|
-
|
|
$
|
0.03
|
$
|
(0.02
|
)
|
||||||
WEIGHTED
AVERAGE COMMON SHARES
|
||||||||||||||||
OUTSTANDING
|
257,600,680
|
257,600,680
|
257,600,680
|
257,600,680
|
For
the Six Months Ended
|
||||||||
June
30,
|
||||||||
2008
|
2007
|
|||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
-
|
-
|
||||||
DISCONTINUED
OPERATIONS
|
||||||||
Loss
from discontinued operations
|
$
|
(566,616
|
)
|
$
|
(4,730,732
|
)
|
||
Gain
on sale of land, buildings, and equipment
|
7,283,713
|
-
|
||||||
(Decrease)
increase in net liabilities of entities discontinued
|
(8,765,256
|
)
|
4,870,286
|
|||||
Cash
provided by (used in) discontinued operations
|
(2,048,159
|
) |
139,554
|
|||||
EFFECT
OF EXCHANGE RATE ON CASH
|
2,048,159
|
(139,554
|
)
|
|||||
CASH
END OF YEAR
|
$
|
-
|
$
|
-
|
Sale
price of land, buildings, and plant equipment
|
$
|
11,091,600
|
||
Net
value of land, buildings, and plant equipment
|
3,414,373
|
|||
Gross
profit on sale of assets
|
7,677,227
|
|||
Administrative
expenses
|
393,514
|
|||
Net
gain on disposition
|
$
|
7,283,713
|
Balance
Sheet As at September 30th,
2008
|
Pro-Forma
Adjustments
|
Pro-Forma
Balance Sheet September 30th
2008
|
||||||||||
ASSETS
|
||||||||||||
Total
Assets
|
- | - | - | |||||||||
LIABILITIES
AND STOCKHOLDERS’ DEFICIT
|
||||||||||||
Current
Liabilities
|
||||||||||||
Net liabilities of discontinued
entities
|
$ | 25,647,641 | $ | (25,647,641 | ) (1) | |||||||
Total
Current Liabilities
|
25,647,641 | (25,647,641 | ) | |||||||||
Stockholders’
Deficit
|
|
|||||||||||
Preferred
stock, par value $0.001,
|
||||||||||||
300,000,000
shares authorized,
|
||||||||||||
257,600,680
issued and outstanding
|
||||||||||||
at
September 30, 2008
|
257,600 | $ | 257,600 | |||||||||
Additional paid
-in capital
|
4,573,217 | 4,573,217 | ||||||||||
Accumulated
other comprehensive income
|
204,559 | (204,559 | )(2) | |||||||||
Accumulated
deficit
|
204,559 | (2) | ||||||||||
(30,683,017 | ) | 25,647,641 | (1) | (4,830,817 | ) | |||||||
Total
Liabilities and Shareholders’ Deficit
|
$ | (25,647,641 | ) | 25,647,641 | $ | - |
(a)
|
Disclosure
Controls and Procedures.
|
|
●
|
certain
of your rights as shareholders will change as we will be governed by
different laws and different charter
documents,
|
|
●
|
the
number of our authorized stock will decrease from three-hundred million
shares of common stock and five million shares of preferred stock to one
hundred and forty five million shares of common stock and five million
shares of preferred stock,
|
|
●
|
every
one hundred of our shares currently held by our shareholders will be
exchanged for one share of our wholly-owned subsidiary’s common stock
resulting in an increase in the number of authorized but unissued common
stock,
|
|
●
|
our
name will become the name of our wholly-owned subsidiary,
and
|
|
●
|
certain
of our directors and their affiliates will sell their shares of our common
stock.
|