10-Q

UNITED STATES

 SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

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

For the fiscal period ended: June 30, 2013

[ ] 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: 0-24721

SOCIAL CUBE INC.

(Formerly Lexon Technologies, Inc.)

 (Exact name of registrant as specified in charter)

Delaware	87-0502701
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer I.D. No.)

5670 Wilshire Boulevard, Suite 760, Los Angeles, California	90036
(Address of principal executive offices)	(Zip Code)

Issuer's telephone number, including area code: (323) 933-3500

Securities registered pursuant to section 12(b) of the Act:

Title of each class	Name of each exchange on which registered
None	N/A

Securities registered pursuant to section 12(g) of the Act:

Common Stock, par value $0.001 per share

 (Title of class)

Check whether the issuer is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act. [ ]

Check whether the issuer (1) filed all reports required to be filed by section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

 (1) Yes [ x ] No [ ]

 (2) 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, or a non-accelerated filer (as defined in Rule 12b-2 of the Act). See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [ x ]

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

Yes [ ] No [ x ]

1

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

As of July 31, 2013, Social Cube had 9,992,535 shares of common stock, par value $0.001 outstanding.

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SOCIAL CUBE INC.

QUARTERLY REPORT ON FORM 10-Q

SIX MONTHS ENDED JUNE 30, 2013 AND 2012

TABLE OF CONTENTS

Part I – FINANCIAL INFORMATION

		Page
ITEM 1.	FINANCIAL STATEMENTS
	Consolidated Balance Sheets (unaudited)	4
	Consolidated Statements of Comprehensive Loss (unaudited)	5
	Consolidated Statements of Cash Flows (unaudited)	6
	Notes to Consolidated Financial Statements (unaudited)	7
ITEM 2.	MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS	15
ITEM 3.	QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK	16
ITEM 4.	CONTROLS AND PROCEDURES	16

Part II – OTHER INFORMATION

ITEM 1.	LEGAL PROCEEDINGS	16
ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS	16
ITEM 3.	DEFAULT UPON SENIOR SECURITIES	16
ITEM 4.	SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS	17
ITEM 5.	OTHER INFORMATION	17
ITEM 6.	EXHIBITS	17
	EX-31.1 EX-31.2 EX-32	18 19 20

3

Part I – FINANCIAL INFORMATION
SOCIAL CUBE INC.
CONSOLIDATED BALANCE SHEETS
	(Unaudited)
	June 30,	December 31,
ASSETS	2013	2012
Current assets:
Cash and cash equivalents	$         59,797	$        213,722
Accounts receivable, net	1,178,639	1,267,113
Prepaid expenses	87,620	93,749
Other current assets	31,327	47,657
Total current assets	1,357,383	1,622,241
Property and equipment, net	453,472	664,178
Other assets:
Intangibles, net of amortization	267,632	548,082
Security deposits	21,034	21,034
Total other assets	288,666	569,116
Total assets	$   2,099,521	$   2,855,535
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$       687,867	$      151,228
Due to related parties	479,284	787,618
Current portion of loan payable	64,396	64,083
Accrued expenses	8,600	45,000
Other current liabilities	52,367	242,103
Total current liabilities	1,292,514	1,290,032
Long-term liabilities:
Loan payable, net of current portion	32,094	39,371
Pension plan benefit obligation	21,558	23,300
Total long-term liabilities	53,652	62,671
Total liabilities	1,346,166	1,352,703
Stockholders’ equity:
Common stock - $0.001 par value;
30,000,000 and 3,000,000,000 shares authorized,
9,992,535 and 9,992,535 shares issued and outstanding
as of June 30, 2013 and December 31, 2012, respectively	9,993	9,993
Additional paid-in capital	4,489,701	4,489,701
Accumulated deficit	(3,560,226)	(3,033,421)
Other comprehensive income (loss)	(106,806)	30,110
Noncontrolling interest	(79,307)	6,449
Total stockholders’ equity	753,355	1,502,832
Total liabilities and stockholders’ equity	$     2,099,521	$     2,855,535

See Accompanying Notes to Consolidated Financial Statements (Unaudited).

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SOCIAL CUBE INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited)
	Three Months Ended		Six Months Ended
	June 30,		June 30,
	2013	2012	2013	2012
Net sales	$          798,115	$    1,190,190	$ 1,594,109	$ 2,499,420
Cost of goods sold	806,272	1,185,096	1,636,517	2,250,523
Gross profits	(8,157)	5,094	(42,408)	248,897
Selling, general and administrative expenses	167,428	288,780	359,936	608,062
Loss from operations	(175,585)	(283,686)	(402,344)	(359,166)
Other income (expenses):
Interest income	2	101	5	144
Foreign currency transaction gain	42,252	14,587	80,885	20,993
Other income	6	-	1,096	83
Loss from settlement	-	-	-	(20,000)
Loss on disposal of equipment	(18,587)	-	(18,587)	-
Loss on impairment of intangible	(244,690)	-	(244,690)	-
Interest expense	(4,470)	(3,006)	(20,721)	(5,706)
Foreign currency transaction loss	(5,702)	(8,687)	(6,605)	(18,027)
Other expense	-	-	-	(9,503)
Net other income (expense)	(231,189)	2,995	(208,617)	(32,016)
Loss before income tax provision	(406,774)	(280,691)	(610,961)	(391,182)
Provision for income taxes	1,600	6,000	1,600	13,600
Loss before noncontrolling interest	(408,374)	(286,691)	(612,561)	(404,782)
Less : Noncontrolling interest	69,357	11,962	85,756	(17,042)
Net loss	$        (339,017)	$       (274,729)	$  (526,805)	$ (421,824)
Earnings per share of common stock -
Basic	$ (0.03)	$           (0.03)	$          (0.05)	$ (0.04)
Earnings per share of common stock - Diluted	$ (0.03)	$            (0.03)	$          (0.05)	$ (0.04)
Weighted average shares of common stock outstanding	9,992,535	9,992,535	9,992,535	9,992,535
Other comprehensive loss	(31,415)	(4,518)	(106,806)	(266)
Comprehensive loss attributable to Social Cube, Inc.	$        (370,432)	$      (279,247)	$   (633,611)	$      (422,090)
See Accompanying Notes to Consolidated Financial Statements (Unaudited).

5

SOCIAL CUBE INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Six Months Ended
	June 30,
	2013	2012
Cash flows from operating activities:
Net loss	$ (526,805)	$ (421,824)
Adjustments to reconcile net loss
to net cash provided by (used in) operating activities:
Noncontrolling interest	85,756	(17,042)
Depreciation and amortization	69,122	504,465
Loss on disposal of equipment	18,587	-
Loss on impairment of intangible	244,690	-
Changes in assets and liabilities:
Accounts receivable	88,474	(131,445)
Security deposit	-	(21,035)
Prepaid expense	6,129	-
Other current assets	16,330	39,269
Accounts payable	536,640	158,956
Accrued expenses	(36,400)	(12,432)
Pension plan benefit obligation	(1,742)	-
Other current liabilities	(189,736)	(96,136)
Total adjustments	837,848	424,600
Net cash provided by operating activities	311,045	2,776
Cash flows from investing activities:
Property and equipment	-	(15,370)
Intangible assets	-	(107,828)
Sale of fixed asset	(67,122)	-
Due to related party	(308,334)	-
Net cash (used in) investing activities	(375,456)	(123,198)
Cash flows from financing activities:
Payments on notes payable	(6,965)	(6,964)
Payments on capital lease obligation	-	(111,751)
Foreign currency translation adjustment	(82,549)	(18,201)
Stock subscription receivable	-	300,000
Net cash provided by (used in) financing activities	(89,514)	163,084
Net (decrease) increase in cash	(153,925)	42,662
Cash and cash equivalents, at the beginning of period	213,722	418,891
Cash and cash equivalents, at the end of period	$ 59,797	$ 461,553
See Accompanying Notes to Consolidated Financial Statements (Unaudited).

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SOCIAL CUBE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

SIX MONTHS ENDED JUNE 30, 2013 AND 2012

Note 1 - Nature of Business

Business Overview

Current Business

After Liveplex Co., Ltd. obtained a 60% controlling interest of the Company, Social Cube has refocused itself as a holding company of social gaming, mobile gaming and social networking companies.  Social Cube’s strategy is to grow both organically and by acquisition, and to leverage its existing network of social gaming and networking assets together with other social networking companies and their related technologies.

Our majority shareholder is Liveplex Co., Ltd., an on-line game developer and publisher in Korea, which is publicly listed on the Korea Securities Dealers Automated Quotations (KOSDAQ:050120), a trading board of the Korea Exchange (KRX).  Liveplex Co., Ltd. is a leading developer and service provider of massively multiplayer online role-playing games.

We conduct our business through two operating segments as follows:

Social Cube Networks Co., Ltd.

We have a 73% ownership interest in Social Cube Networks Co., Ltd. (formerly AsiaNet Co., Ltd.), a privately held company incorporated in the Republic of Korea, which publishes the following game titles, primarily in the Philippines:  Dragona, Genghis Khan, Weapons of War, Cross Fire, Special Force, Twelve Sky 2 and iDate.

Social Cube Media.com, Inc.

We have a 100% ownership interest in Social Cube Media.com, Inc.(formerly Gameclub.com, Inc.), a privately held company incorporated in the state of California, which publishes online games in the United States.

While our chief decision makers monitor the revenue streams of our various products and services, operations are managed and financial performance is evaluated on a company-wide basis. Accordingly, we consider our operations to be aggregated in one reportable operating segment.

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SOCIAL CUBE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

SIX MONTHS ENDED JUNE 30, 2013 AND 2012 (Continued)

Corporate History

Lexon Technologies, Inc. ("the Company", "Lexon" or “Social Cube”) was incorporated in April 1989 under the laws of state of Delaware, and owned 90.16% of Lexon Semiconductor Corporation ("Lexon Semi" or formerly known as Techone Co., Ltd ("Techone")) which had developed and manufactured Low Temperature Cofired Ceramic (LTCC) components, including LTCC wafer probe cards, LTCC circuit boards, LTCC Light Emitting Diode (LED) displays and related products for the semiconductor testing and measurement, custom Printed Circuit Board (PCB), and cellular phone industries.  

Initially registered as California Cola Distributing Company, Inc., the Company changed its name four times; first to Rexford, Inc. in October 1992, second to Lexon Technologies, Inc. in July 1999, third to Social Planet Inc. in January 2012 and to the current name Social Cube Inc. in February 2012.  From July 1999 through October 2009, the Company performed three reverse acquisitions and recapitalizations, which resulted in the change of the control of the Company each time.

On January 1, 2011, all assets and all of the liabilities of the Paragon Toner Division of Lexon were exchanged for existing Lexon shares, specifically 133,300,000 shares held by James Park and 66,700,000 shares held by Young Won.  The Internet properties namely 7inkjet.com, nanoninket.com and Yourcartidges.com remained with Lexon, and became the main operation of the Company.

The Company’s Board of Directors and a majority of shareholders on June 6, 2011 approved a reverse share split of the Company’s common stock at a ratio of 641:1 from 315,789,721 shares to 492,535 issued and outstanding shares.

On October 3, 2011, Lexon entered into four subscription agreements: (1) Senderbell Holdings Limited subscribed to 900,000 common unregistered shares for $77,143; (2) Treasure Chest Holdings Limited subscribed to 900,000 common unregistered shares for $77,143; (3) Blueberry Enterprises Limited subscribed to 900,000 common unregistered shares for $77,143; and (4) Hockworth Holdings Limited subscribed to 800,000 common unregistered shares for $68,571.

On October 26, 2011, a shareholder resolution was executed to nominate and accept Byung Jin Kim, Eugene Lee and KyuSeok Lee as Directors (effective as of November 26, 2011) and to change the corporate name from Lexon to Social Planet Inc.

On November 23, 2011, the Company issued 6,000,000 shares of its common stock to Liveplex Co., Ltd. at a purchase price of approximately $0.417 per share for an aggregate of $2,500,000 representing approximately 60% of the total outstanding common stock.

On November 25, 2011, James Park, Young Won, Bong S. Park and Hyung Soon Lee resigned as the Directors and Officers of the Company.

Pursuant to a share subscription agreement dated November 30, 2011, the Company subscribed to 335,574 shares of Social Cube Networks Co., Ltd. (formerly Asianet Co., Ltd.), a company incorporated in the Republic of Korea, for a consideration of $1,500,000.  As a result of this subscription, the Company owns 73% of Social Cube Networks Co., Ltd.

On December 30, 2011, a majority of the Company’s directors appointed Byung Jin Kim as Chief Executive Officer and Jonathan Lee as Chief Financial Officer of the Company effective as of January 1, 2012.

8

SOCIAL CUBE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

SIX MONTHS ENDED JUNE 30, 2013 AND 2012 (Continued)

On January 31, 2012, the Company filed a Certificate of Amendment to the Company’s Certificate of Incorporation under the laws of the state of Delaware, changing the name of the Company from Lexon to Social Planet Inc.

On February 6, 2012, a majority of the Company’s directors and a majority of the Company’s shareholders approved changing the name of the Company from Social Planet Inc. to Social Cube Inc.

On February 16, 2012, the Company filed a Certificate of Amendment to the Company’s Certificate of Incorporation under the laws of the state of Delaware, changing the name of the Company from Social Planet Inc. to Social Cube Inc.

On March 22, 2012, a majority of all outstanding shares voted in favor of reducing the authorized shares of common stock of the Company from 2,000,000,000 shares to 30,000,000 shares.

The Financial Industry Regulatory Authority, Inc. (FINRA) approved the Company’s corporate name change to Social Cube Inc., effective as of March 28, 2012, and its ticker symbol change to “SOCC”, effective as of April 2, 2012.

On June 3, 2013, the board of directors of the Company decided to delist the Company’s common stock from the OTC and deregister from the reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

On June 7, 2013, the Company announced the delisting through a press release and filing of a current report on Form 8-K with the U.S. Securities and Exchange Commission (“SEC”).

On June 18, 2013, the Company filed a Form 25 with the SEC to delist its common stock from the OTC and to deregister the Company’s common stock from Section 12(b) of the Exchange Act.

On June 28, 2013 the Company filed a Form 15 with the SEC to suspend the Company’s reporting requirements under Section 15(d) of the Exchange Act.   

Note 2 - Summary of Significant Accounting Policies

This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements.  The financial statements and notes are representations of the Company’s management, who is responsible for their integrity and objectivity.  These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.

Use of Estimates

The preparation of the 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 amounts reported in the financial statements and accompanying notes. Estimates are primarily used for depreciation of property and equipment, amortization of intangible assets, allowances for doubtful accounts. Actual results could differ from those estimates.

Revenue Recognition

Online game revenue

We derive, and expect to continue to generate, most of our revenues from online game subscription revenue generated in the countries where our games are offered by us. We recognize revenue in accordance with Accounting Standard Codification (ASC) 605, Revenue Recognition and other related pronouncements. Online game revenue is deferred until prepaid subscription cards are consumed by users.

9

SOCIAL CUBE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

SIX MONTHS ENDED JUNE 30, 2013 AND 2012 (Continued)

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with original maturities of three months or less to be categorized as cash and cash equivalents.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is computed based upon the management’s estimate of uncollectible accounts and historical experience.  The Company performs ongoing credit evaluations of its customers to estimate potential credit losses.  Amounts are written off against the allowance in the period the Company determines that the receivable is uncollectible.

Property and Equipment

Property and equipment are stated at cost. The straight-line method is used to calculate depreciation over their estimated useful lives ranging as follows:

Automobile	3 to 5 years
Furniture & fixture	4 to 7 years
Leasehold improvement	5 years
Machinery and equipment	4 to 5 years

Leasehold improvements are depreciated to expense over the shorter of the life of the improvement or the remaining lease term. Capital expenditures that enhance the value or materially extend the useful life of the related assets are reflected as additions to property and equipment. Expenditures for repairs and maintenance are charged to expense as incurred. Upon a sale or disposition of assets, a gain or a loss is included in the statement of operations.

Impairment of Long-lived Assets

The Company periodically reviews the recoverability of its long-lived assets using the methodology prescribed in accounting guidance now codified as FASB ASC Topic 360, “Property, Plant and Equipment.” The Company also reviews these assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted future net cash flows from the operations to which the assets relate, based on management’s best estimates using appropriate assumptions and projections at the time, to the carrying amount of the assets. If the carrying value is determined not to be recoverable from future operating cash flows, the asset is deemed impaired and an impairment loss is recognized equal to the amount by which the carrying amount exceeds the estimated fair value of the asset. In management’s opinion, no such impairment existed as of June 30, 2013 and December 31, 2012

Accrued Expenses

The Company’s accrued expenses consist of amounts payable for professional fee, corporate income tax and interest.

Income Taxes

The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in income tax rates is recognized in the results of operations in the period that includes the enactment date. The realizability of deferred tax assets is evaluated based on a “more likely than not” standard, and to the extent this threshold is not met, a valuation allowance is recorded. See Note 9 Income Taxes for more information about the Company’s income taxes.

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SOCIAL CUBE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

SIX MONTHS ENDED JUNE 30, 2013 AND 2012 (Continued)

Recent Accounting Pronouncements

Indefinite-lived intangible assets impairment

In July 2012, the FASB issued an update to the authoritative guidance related to testing indefinite-lived intangible assets for impairment. This update gives an entity the option to first consider certain qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative impairment test. This update is effective for the indefinite-lived intangible asset impairment test performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. We do not expect that the adoption of this guidance will have a material impact on our consolidated financial statements.

Fair value measurements and disclosures

Effective January 1, 2012, we adopted an update to the accounting rules for fair value measurement. The new accounting principles establishes a consistent definition of fair value in an effort to ensure that the fair value measurement and disclosure requirements between U.S. GAAP and International Financial Reporting Standards (“IFRS”) are comparable. This update changes certain fair value measurement principles and enhances the disclosure requirements for fair value measurements. This update does not extend the use of fair value accounting, but provides guidance on how it should be applied where its use was already required or permitted by other standards within U.S. GAAP or IFRS. This update is effective for interim and annual periods beginning after December 15, 2011 and is applied prospectively. The adoption of this pronouncement did not have a material impact on the Company’s Consolidated Financial Statements and accompanying disclosures.

Statement of comprehensive income

Effective January 1, 2012, we adopted the FASB issued authoritative guidance on the presentation of comprehensive income. This update requires that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. This update does not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The adoption of this pronouncement did not have a material impact on the Company’s Consolidated Financial Statements and accompanying disclosures.

Note 3 – Accounts Receivable

The following table provides the components of accounts receivable as of June 30, 2013 and December 31, 2012:

	June 30,	December 31,
	2013	2012
Receivable from game sales	$ 1,178,639	$ 1,143,802
Other receivable	-	123,311
	1,178,639	1,267,113
Less: Allowance for bad debt expense	-	-
Accounts receivable, net	$ 1,178,639	$ 1,267,113

Note 4 – Prepaid Expense

The Company’s prepaid expenses consist of amounts prepaid for license, equipment rental, server and webpage.

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SOCIAL CUBE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

SIX MONTHS ENDED JUNE 30, 2013 AND 2012 (Continued)

Note 5 - Property and Equipment

Property and equipment consist of the following as of June 30, 2013 and December 31, 2012:

	June 30,	December 31,
	2013	2012
Automobile	$ 144,968	$ 145,121
Furniture and fixture	14,270	14,270
Leasehold improvement	1,100	1,100
Machinery and equipment	1,192,896	1,319,879
	1,353,234	1,480,370
Less: Accumulated depreciation	(899,762)	(816,192)
Net property and equipment	$ 453,472	$ 664,178

Depreciation expense amounted to $83,570 and $329,952 for the six months ended June 30, 2013 and 2012, respectively.

Note 6 - Intangibles

Intangibles consist of the following as of June 30, 2013 and December 31, 2012:

	June 30,	December 31,
	2013	2012
Software	$                30,226	$                46,088
License	400,000	1,027,925
Flash Game	1,597	1,597
	431,823	1,075,610
Less: Accumulated amortization	(164,191)	(527,528)
Net intangibles	$              267,632	$               548,082

The Company amortizes its software, license, and flash game over the estimated useful life of four years. Amortizable intangible assets are tested for impairment when impairment indicators are present, and, if impaired, written down to fair value based on either discounted cash flows or appraised values. As a result of the impairment testing, the Company determined that intangibles were not impaired as of June 30, 2013 and December 31, 2012.

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SOCIAL CUBE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

SIX MONTHS ENDED JUNE 30, 2013 AND 2012 (Continued)

Note 7 – Loan Payable

As of June 30, 2013 and December 31, 2012, the Company has loan payable as follows:

	June 30,	December 31,
	2013	2012
Auto loan payable to a bank, due in monthly installments of $1,346 including interest at 4.39% as of June 30, 2013 and December 31, 2012. The final payment for the loan is scheduled on June 27, 2016.	$ 46,490	$ 53,454
Loan payable to Playon Interactive, Inc. due on September 12, 2013. Interest rate is 11.00% as of June 30, 2013.	50,000	50,000
Less: Current portion	(64,396)	(64,083)
Loan payable, net of current	$ 32,094	$ 39,371

Note 8 - Commitments and Contingencies

Legal Proceedings

To the best knowledge of management, there are no pending legal proceeding against us.

On September 5, 2008, Vivien and David Bollenberg, a current shareholder (the “Bollenbergs”), filed a claim against Lexon and other third parties, including Byung Hwee Hwang (also referred to as "Ben Hwang") and other financial agents and institutions involved in the alleged fraudulent transaction.  The filed complaint alleges that Ben Hwang together with his representatives, including his accountant, escrow agent and real estate agent/broker, made certain representations to and solicited the Bollenbergs to make an investment in several companies and ventures including Lexon with the intent to misappropriate the solicited funds for personal use. The Bollenbergs allege that they invested a total of $1,500,000 among and between the various companies and ventures recommended by Ben Hwang, of which investment amount approximately $550,000 was invested in Lexon ($150,000 for 600,000 shares at $0.25 per share and $400,000 initially invested in Lexon Korea and later converted into 1,150,000 shares in Lexon for a total of 1,750,000 shares in Lexon). On April 1, 2011, after a trial was concluded, judgment was entered in favor of the Lexon Technologies whereby Lexon was not found liable for any causes of action brought by the Bollenbergs.  The Bollenbergs were served with a filed stamped copy of the judgment on June 2, 2011.  Thereafter, the Bollenbergs filed an appeal on December 2, 2011 and insisted that they were not served with the judgment on June 2, 2011 and filed the instant Motion to Vacate the Dismissal (or the Petition for Rehearing).  This appeal by the Bollenbergs was denied by the California Court of Appeals (4^th District) in February 2012, officially concluding this legal proceeding.

13

SOCIAL CUBE INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

SIX MONTHS ENDED JUNE 30, 2013 AND 2012 (Continued)

Note 9 - Income Taxes

Significant components of deferred tax assets are as follows:

	June 30,		December 31,
	2013		2012
Loss carry forwards	$	2,790,888	$	2,761,612
Other	229,720		229,720
Total deferred tax asset	3,020,608		2,991,332
Valuation allowance	(3,020,608)		(2,991,332)
Total deferred tax asset, net	$	-	$	-

As of June 30, 2013, the Company had approximately $5,100,000 of net operating loss (“NOL”) carryforwards for U.S. federal income tax purposes expiring in 2020 through 2030. In addition, the Company has California state NOL carryforwards of approximately $3,500,000 expiring in 2013 through 2020.  

The ability to realize the tax benefits associated with deferred tax assets, which includes benefits related to NOL’s, is principally dependent upon the Company’s ability to generate future taxable income from operations.  The Company has provided a full valuation allowance for its net deferred tax assets due to the Company’s net operating losses.  The valuation allowance has increased by $29,276 during the six months ended June 30, 2013.

Section 382 of the Internal Revenue Code (“IRC”) imposes limitations on the use of NOL’s and credits following changes in ownership as defined in the IRC. The limitation could reduce the amount of benefits that would be available to offset future taxable income each year, starting with the year of an ownership change.

Note 10 - Subsequent Events

Management has evaluated subsequent events through the date of issuance of the financial data included herein. There have been no subsequent events that occurred during such period that would require disclosure in this Form 10-Q or would be required to be recognized in the Consolidated Financial Statements (Unaudited) as of June 30, 2013.

14

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion and analysis should be read in conjunction with our financial statements, including the notes thereto, appearing elsewhere in this Report.

Cautionary Statement Regarding Forward-looking Statements

This report may contain “forward-looking” statements. Examples of forward-looking statements include, but are not limited to: (a) projections of revenues, capital expenditures, growth, prospects, dividends, capital structure and other financial matters; (b) statements of plans and objectives of our management or Board of Directors; (c) statements of future economic performance; (d) statements of assumptions underlying other statements and statements about us and our business relating to the future; and (e) any statements using the words “anticipate,” “expect,” “may,” “project,” “intend” or similar expressions.

Results of Operation for the Three Months Ended June 30, 2013 as Compared to the Three Months Ended June 30, 2012

Revenues.

Revenues declined by $392,075 to $798,115 for the three months ended June 30, 2013 as compared to $1,190,190 for the three months ended June 30, 2012. This decline was attributed to decreased online game revenues.

Cost of Goods Sold.

Cost of Goods Sold declined by $378,824 to $806,272 for the three months ended June 30, 2013 as compared to $1,185,096 for the three months ended June 30, 2012.

Selling, General and Administrative Expenses.

Selling, General and Administrative Expenses (“SG&A”) decreased by $121,352 to $167,428 for the three months ended June 30, 2013 as compared to $288,780 for the three months ended June 30, 2012.

Other Income and Expenses.

Other income for the three months ended June 30, 2013 was $42,260 as compared to expenses of $273,449 for the three months ended June 30, 2013. For the three months June 30, 2013, interest income was $2, foreign currency transaction gain was $42,252, other income was $6, interest expense was $4,470, loss on disposal of equipment was $18,587, loss on impairment of intangible was $244,690 and foreign currency transaction loss was $5,702.

Net Loss.

As a result, we recorded a net loss of $339,017 for the three months ended June 30, 2013 compared with a net loss of $274,729 for the three months ended June 30, 2012.

Results of Operation for the Six Months Ended June 30, 2013 as Compared to the Six Months Ended June 30, 2012

Revenues.

Revenues declined by $905,311 to $1,594,109 for the six months ended June 30, 2013 as compared to $2,499,420 for the six months ended June 30, 2012. This decline was attributed to decreased online game revenues.

Cost of Goods Sold.

Cost of Goods Sold declined by $614,006 to $1,636,517 for the six months ended June 30, 2013 as compared to $2,250,523 for the six months ended June 30, 2012.

Selling, General and Administrative Expenses.

Selling, General and Administrative Expenses (“SG&A”) decreased by $248,126 to $359,936 for the six months ended June 30, 2013 as compared to $608,062 for the six months ended June 30, 2012.

Other Income and Expenses.

Other income for the six months ended June 30, 2013 was $81,986 as compared to expenses of $290,603 for the six months ended June 30, 2012. For the six months June 30, 2013, interest income was $5, foreign currency transaction gain was $80,885, other income

15

was $1,096, interest expense was $20,721, loss on disposal of equipment was $18,587, loss on impairment of intangible was $244,690 and foreign currency transaction loss was $6,605.

Net loss.

As a result, we recorded a net loss of $526,805 for the six months ended June 30, 2013 compared with a net loss of $421,824 for the six months ended June 30, 2012.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.

ITEM 4. CONTROLS AND PROCEDURES

Our Chief Executive Officer, President, and Chief Financial Officer (the “Certifying Officer”) is responsible for establishing and maintaining disclosure controls and procedures for the Company. The Certifying Officer has designed such disclosure controls and procedures to ensure that material information is made known to them, particularly during the period in which this report was prepared. The Certifying Officer has evaluated the effectiveness of the Company's disclosure controls and procedures within 90 days of the date of this report and believes that the Company’s disclosure controls and procedures are effective based on the required evaluation. There have been no significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

ITEM 4T. CONTROLS AND PROCEDURES

We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.

PART II

ITEM 1. LEGAL PROCEEDINGS

To the best knowledge of management, there are no pending legal proceedings against us.

On September 5, 2008, Vivien and David Bollenberg, a current shareholder (the “Bollenbergs”), filed a claim against Lexon and other third parties, including Byung Hwee Hwang (also referred to as "Ben Hwang") and other financial agents and institutions involved in the alleged fraudulent transaction.  The filed complaint alleges that Ben Hwang together with his representatives, including his accountant, escrow agent and real estate agent/broker, made certain representations to and solicited the Bollenbergs to make an investment in several companies and ventures including Lexon with the intent to misappropriate the solicited funds for personal use. The Bollenbergs allege that they invested a total of $1,500,000 among and between the various companies and ventures recommended by Ben Hwang, of which investment amount approximately $550,000 was invested in Lexon ($150,000 for 600,000 shares at $0.25 per share and $400,000 initially invested in Lexon Korea and later converted into 1,150,000 shares in Lexon for a total of 1,750,000 shares in Lexon). On April 1, 2011, after a trial was concluded, judgment was entered in favor of the Lexon Technologies whereby Lexon was not found liable for any causes of action brought by the Bollenbergs.  The Bollenbergs were served with a filed stamped copy of the judgment on June 2, 2011.  Thereafter, the Bollenbergs filed an appeal on December 2, 2011 and insisted that they were not served with the judgment on June 2, 2011 and filed the instant Motion to Vacate the Dismissal (or the Petition for Rehearing).  This appeal by the Bollenbergs was denied by the California Court of Appeals (4^th District) in February 2012, officially concluding this legal proceeding.

ITEM 2.	UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
None ITEM 3.	DEFAULT UPON SENIOR SECURITIES

None.

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS

16

None.

ITEM 5. OTHER INFORMATION

None.

ITEM 6. EXHIBITS

31.1* Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

31.2* Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

32** Certification of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

101.INS** XBRL Instance Document

101.SCH** XBRL Taxonomy Extension Schema Document

101.CAL** XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB** XBRL Taxonomy Extension Label Linkbase Document

101.PRE** XBRL Taxonomy Extension Presentation Linkbase Document

101.DEF** XBRL Taxonomy Extension Definition Linkbase Document

________________________

*Filed herewith.

**Furnished herewith.

SIGNATURES

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

	SOCIAL CUBE INC.
Date: August 14, 2013	By:	/s/ Byung Jin Kim
		Byung Jin Kim
		President, Chief Executive Officer

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

17

EX-31.1

Exhibit 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO THE SECURITIES EXCHANGE ACT OF 1934,

RULES 13a-14 AND 15d-14

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Byung Jin Kim, certify that:

1. I have reviewed this Report;

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 Company, 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 Company 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 Company, 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 Company'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 Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter (the Company’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company’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 Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’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 Company’s internal control over financial reporting.

/s/ Byung Jin Kim

 Byung Jin Kim

 Chief Executive Officer

 Date: August 14, 2013

EX-31.2

Exhibit 31.2

CERTIFICATION OF CHIEF FINANCIALOFFICER

PURSUANT TO THE SECURITIES EXCHANGE ACT OF 1934,

RULES 13a-14 AND 15d-14

AS ADOPTED PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jonathan Lee, certify that:

1. I have reviewed this Report;

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 Company, 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 Company 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 Company, 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 Company'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 Company’s internal control over financial reporting that occurred during the Company’s most recent fiscal quarter (the Company’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Company’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 Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):

(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company’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 Company’s internal control over financial reporting.

/s/ Jonathan Lee

Jonathan Lee

 Chief Financial Officer

 Date: August 14, 2013

EX-32

Exhibit 32

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Lexon Technologies, Inc. (the “Company”) on Form 10-Q for the period ended June 30, 2013, as filed with the Securities and Exchange Commission on the date hereof (“Report” ), I, Byung Jin Kim, Chief Executive Officer and I, Jonathan Lee, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

(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 result of operations of the Company.

/s/ Byung Jin Kim

 Byung Jin Kim

 Chief Executive Officer

  Date: August 14, 2013

/s/ Jonathan Lee

Jonathan Lee

Chief Financial Officer

 Date: August 14, 2013

XML

Note 1 - Nature of Business: Cash and Cash Equivalents (Policies)

6 Months Ended

Jun. 30, 2013

Policies

Cash and Cash Equivalents

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with original maturities of three months or less to be categorized as cash and cash equivalents.

XML

Statement of Income (USD $)	3 Months Ended		6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Income Statement
Sales Revenue, Goods, Net	$ 798,115	$ 1,190,190	$ 1,594,109	$ 2,499,420
Revenues	798,115	1,190,190	1,594,109	2,499,420
Cost of Goods Sold	806,272	1,185,096	1,636,517	2,250,523
Cost of Revenue	806,272	1,185,096	1,636,517	2,250,523
Gross Profit	(8,157)	5,094	(42,408)	248,897
Selling, General and Administrative Expense	167,428	288,780	359,936	608,063
Operating Expenses	167,428	288,780	359,936	608,063
Operating Income (Loss)	(175,585)	(283,686)	(402,344)	(359,166)
GainLossOnDispositionOfAssets	(18,587)		(18,587)
LossesGainsOnSalesOfAssetsAndAssetImpairmentCharges	(244,690)		(244,690)
InterestIncomeOther	2	101	5	144
Other Nonoperating Income (Expense)	6		1,096	83
GainLossRelatedToLitigationSettlement				(20,000)
ForeignCurrencyTransactionGainBeforeTax	36,550	5,900	74,280	2,966
Nonoperating Income (Expense)	(226,719)	6,001	(187,896)	(16,807)
Interest Expense	4,470	3,006	20,721	5,706
OtherExpenses				9,503
Interest and Debt Expense	4,470	3,006	20,721	15,209
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest	(406,774)	(280,691)	(610,961)	(391,182)
Current Income Tax Expense (Benefit)	1,600	6,000	1,600	13,600
Income Tax Expense (Benefit)	1,600	6,000	1,600	13,600
IncomeLossFromContinuingOperationsIncludingPortionAttributableToNoncontrollingInterest	(408,374)	(286,691)	(612,561)	(404,782)
NetIncomeLossAttributableToNoncontrollingInterest	69,357	11,962	85,756	(17,042)
Net Income (Loss) Attributable to Parent	(339,017)	(274,729)	(526,805)	(421,824)
Earnings Per Share, Basic	$ (0.03)	$ (0.03)	$ (0.05)	$ (0.04)
Weighted Average Number of Shares Outstanding, Basic	9,992,535	9,992,535	9,992,535	9,992,535
Earnings Per Share, Diluted	$ (0.03)	$ (0.03)	$ (0.05)	$ (0.04)
Weighted Average Number of Shares Outstanding, Diluted	9,992,535	9,992,535	9,992,535	9,992,535
OtherComprehensiveIncomeLossNetOfTax	(31,415)	(4,518)	(106,806)	(266)
ComprehensiveIncomeNetOfTax	$ (370,432)	$ (279,247)	$ (633,611)	$ (422,090)

XML

Note 6 - Intangibles

6 Months Ended

Jun. 30, 2013

Notes

Note 6 - Intangibles

Note 6 - Intangibles

Intangibles consist of the following as of June 30, 2013 and December 31, 2012:

	June 30, 2013	December 31, 2012
Software	$                30,226	$                46,088
License	400,000	1,027,925
Flash Game	1,597	1,597
	431,823	1,075,610
Less: Accumulated amortization	(164,191)	(527,528)
Net intangibles	$              267,632	$               548,082

The Company amortizes its software, license, and flash game over the estimated useful life of four years. Amortizable intangible assets are tested for impairment when impairment indicators are present, and, if impaired, written down to fair value based on either discounted cash flows or appraised values. As a result of the impairment testing, the Company determined that intangibles were not impaired as of June 30, 2013 and December 31, 2012.

XML

Note 1 - Nature of Business: Fair Value Measurements and Disclosures (Policies)

6 Months Ended

Jun. 30, 2013

Policies

Fair Value Measurements and Disclosures

Fair value measurements and disclosures

Effective January 1, 2012, we adopted an update to the accounting rules for fair value measurement. The new accounting principal establishes a consistent definition of fair value in an effort to ensure that the fair value measurement and disclosure requirements between U.S. GAAP and International Financial Reporting Standards (“IFRS”) are comparable. This update changes certain fair value measurement principles and enhances the disclosure requirements for fair value measurements. This update does not extend the use of fair value accounting, but provides guidance on how it should be applied where its use was already required or permitted by other standards within U.S. GAAP or IFRS. This update is effective for interim and annual periods beginning after December 15, 2011 and is applied prospectively. The adoption of this pronouncement did not have a material impact on the Company’s Consolidated Financial Statements and accompanying disclosures.

XML

Note 1 - Nature of Business: Allowance For Doubtful Accounts (Policies)

6 Months Ended

Jun. 30, 2013

Policies

Allowance For Doubtful Accounts

Allowance for Doubtful Accounts

The allowance for doubtful accounts is computed based upon the management’s estimate of uncollectible accounts and historical experience.  The Company performs ongoing credit evaluations of its customers to estimate potential credit losses.  Amounts are written off against the allowance in the period the Company determines that the receivable is uncollectible.

XML

Note 5 - Property and Equipment: Property, Plant and Equipment (Tables)

6 Months Ended

Jun. 30, 2013

Tables/Schedules

Property, Plant and Equipment

	June 30, 2013	December 31, 2012
Automobile	$             144,968	$               145,121
Furniture and fixture	14,270	14,270
Leasehold improvement	1,100	1,100
Machinery and equipment	1,192,896	1,319,879
	1,353,234	1,480,370
Less: Accumulated depreciation	(899,762)	(816,192)
Net property and equipment	$             453,472	$            664,178

XML

Note 3 - Accounts Receivable: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables)

6 Months Ended

Jun. 30, 2013

Tables/Schedules

Schedule of Accounts, Notes, Loans and Financing Receivable

	June 30, 2013	December 31, 2012
Receivable from game sales	$               1,178,639	$              1,143,802
Other receivable	-	123,311
	1,178,639	1,267,113
Less: Allowance for bad debt expense	-	-
Accounts receivable, net	$               1,178,639	$              1,267,113

XML

Note 7 - Loan Payable: Schedule of Debt (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Details
Auto loans payable	$ 46,490	$ 53,454
Loan Payable To Playon	50,000	50,000
Other Notes Payable, Current	(64,396)	(64,083)
Long-term Debt, Excluding Current Maturities	$ 32,094	$ 39,371

XML

Note 3 - Accounts Receivable: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Details
Accounts Receivable, Gross, Current	$ 1,178,639	$ 1,143,802
Other Receivables		123,311
Accounts Receivable, Net	$ 1,178,639	$ 1,267,113

XML

Note 1 - Nature of Business: Statement of Comprehensive Income (Policies)

6 Months Ended

Jun. 30, 2013

Policies

Statement of Comprehensive Income

Statement of comprehensive income

Effective January 1, 2012, we adopted the FASB issued authoritative guidance on the presentation of comprehensive income. This update requires that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. This update does not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The adoption of this pronouncement did not have a material impact on the Company’s Consolidated Financial Statements and accompanying disclosures.

XML

Note 1 - Nature of Business

6 Months Ended

Jun. 30, 2013

Notes

Note 1 - Nature of Business

Note 1 - Nature of Business

Business Overview

Current Business

After Liveplex Co., Ltd. obtained a 60% controlling interest of the Company, Social Cube has refocused itself as a holding company of social gaming, mobile gaming and social networking companies.  Social Cube’s strategy is to grow both organically and by acquisition, and to leverage its existing network of social gaming and networking assets together with other social networking companies and their related technologies.

Our majority shareholder is Liveplex Co., Ltd., an on-line game developer and publisher in Korea, which is publicly listed on the Korea Securities Dealers Automated Quotations (KOSDAQ:050120), a trading board of the Korea Exchange (KRX).  Liveplex Co., Ltd. is a leading developer and service provider of massively multiplayer online role-playing games.

We conduct our business through two operating segments as follows:

Social Cube Networks Co., Ltd.

We have a 73% ownership interest in Social Cube Networks Co., Ltd. (formerly AsiaNet Co., Ltd.), a privately held company incorporated in the Republic of Korea, which publishes the following game titles, primarily in the Philippines:  Dragona, Genghis Khan, Weapons of War, Cross Fire, Special Force, Twelve Sky 2 and iDate.

Social Cube Media.com, Inc.

We have a 100% ownership interest in Social Cube Media.com, Inc.(formerly Gameclub.com, Inc.), a privately held company incorporated in the state of California, which publishes online games in the United States.

While our chief decision makers monitor the revenue streams of our various products and services, operations are managed and financial performance is evaluated on a company-wide basis. Accordingly, we consider our operations to be aggregated in one reportable operating segment.

Corporate History

Lexon Technologies, Inc. ("the Company", "Lexon" or “Social Cube”) was incorporated in April 1989 under the laws of state of Delaware, and owned 90.16% of Lexon Semiconductor Corporation ("Lexon Semi" or formerly known as Techone Co., Ltd ("Techone")) which had developed and manufactured Low Temperature Cofired Ceramic (LTCC) components, including LTCC wafer probe cards, LTCC circuit boards, LTCC Light Emitting Diode (LED) displays and related products for the semiconductor testing and measurement, custom Printed Circuit Board (PCB), and cellular phone industries.  

Initially registered as California Cola Distributing Company, Inc., the Company changed its name four times; first to Rexford, Inc. in October 1992, second to Lexon Technologies, Inc. in July 1999, third to Social Planet Inc. in January 2012 and to the current name Social Cube Inc. in February 2012.  From July 1999 through October 2009, the Company performed three reverse acquisitions and recapitalizations, which resulted in the change of the control of the Company each time.

On January 1, 2011, all assets and all of the liabilities of the Paragon Toner Division of Lexon were exchanged for existing Lexon shares, specifically 133,300,000 shares held by James Park and 66,700,000 shares held by Young Won.  The Internet properties namely 7inkjet.com, nanoninket.com and Yourcartidges.com remained with Lexon, and became the main operation of the Company.

The Company’s Board of Directors and a majority of shareholders on June 6, 2011 approved a reverse share split of the Company’s common stock at a ratio of 641:1 from 315,789,721 shares to 492,535 issued and outstanding shares.

On October 3, 2011, Lexon entered into four subscription agreements: (1) Senderbell Holdings Limited subscribed to 900,000 common unregistered shares for $77,143; (2) Treasure Chest Holdings Limited subscribed to 900,000 common unregistered shares for $77,143; (3) Blueberry Enterprises Limited subscribed to 900,000 common unregistered shares for $77,143; and (4) Hockworth Holdings Limited subscribed to 800,000 common unregistered shares for $68,571.

On October 26, 2011, a shareholder resolution was executed to nominate and accept Byung Jin Kim, Eugene Lee and KyuSeok Lee as Directors (effective as of November 26, 2011) and to change the corporate name from Lexon to Social Planet Inc.

On November 23, 2011, the Company issued 6,000,000 shares of its common stock to Liveplex Co., Ltd. at a purchase price of approximately $0.417 per share for an aggregate of $2,500,000 representing approximately 60% of the total outstanding common stock.

On November 25, 2011, James Park, Young Won, Bong S. Park and Hyung Soon Lee resigned as the Directors and Officers of the Company.

Pursuant to a share subscription agreement dated November 30, 2011, the Company subscribed to 335,574 shares of Social Cube Networks Co., Ltd. (formerly Asianet Co., Ltd.), a company incorporated in the Republic of Korea, for a consideration of $1,500,000.  As a result of this subscription, the Company owns 73% of Social Cube Networks Co., Ltd.

On December 30, 2011, a majority of the Company’s directors appointed Byung Jin Kim as Chief Executive Officer and Jonathan Lee as Chief Financial Officer of the Company effective as of January 1, 2012.

On January 31, 2012, the Company filed a Certificate of Amendment to the Company’s Certificate of Incorporation under the laws of the state of Delaware, changing the name of the Company from Lexon to Social Planet Inc.

On February 6, 2012, a majority of the Company’s directors and a majority of the Company’s shareholders approved changing the name of the Company from Social Planet Inc. to Social Cube Inc.

On February 16, 2012, the Company filed a Certificate of Amendment to the Company’s Certificate of Incorporation under the laws of the state of Delaware, changing the name of the Company from Social Planet Inc. to Social Cube Inc.

On March 22, 2012, a majority of all outstanding shares voted in favor of reducing the authorized shares of common stock of the Company from 2,000,000,000 shares to 30,000,000 shares.

The Financial Industry Regulatory Authority, Inc. (FINRA) approved the Company’s corporate name change to Social Cube Inc., effective as of March 28, 2012, and its ticker symbol change to “SOCC”, effective as of April 2, 2012.

On June 3, 2013, the board of directors of the Company decided to delist the Company’s common stock from the OTC and deregister from the reporting requirements of the Securities Exchange Act of 1934, as amended (the “Exchange Act”).

On June 7, 2013, the Company announced the delisting through a press release and filing of a current report on Form 8-K with the U.S. Securities and Exchange Commission (“SEC”).

On June 18, 2013, the Company filed a Form 25 with the SEC to delist its common stock from the OTC and to deregister the Company’s common stock from Section 12(b) of the Exchange Act.

On June 28, 2013 the Company filed a Form 15 with the SEC to suspend the Company’s reporting requirements under Section 15(d) of the Exchange Act.  

Note 2 - Summary of Significant Accounting Policies

This summary of significant accounting policies of the Company is presented to assist in understanding the Company’s financial statements.  The financial statements and notes are representations of the Company’s management, who is responsible for their integrity and objectivity.  These accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently applied in the preparation of the financial statements.

Use of Estimates

The preparation of the 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 amounts reported in the financial statements and accompanying notes. Estimates are primarily used for depreciation of property and equipment, amortization of intangible assets, allowances for doubtful accounts. Actual results could differ from those estimates.

Revenue Recognition

Online game revenue

We derive, and expect to continue to generate, most of our revenues from online game subscription revenue generated in the countries where our games are offered by us. We recognize revenue in accordance with Accounting Standard Codification (ASC) 605, Revenue Recognition and other related pronouncements. Online game revenue is deferred until prepaid subscription cards are consumed by users.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with original maturities of three months or less to be categorized as cash and cash equivalents.

Allowance for Doubtful Accounts

The allowance for doubtful accounts is computed based upon the management’s estimate of uncollectible accounts and historical experience.  The Company performs ongoing credit evaluations of its customers to estimate potential credit losses.  Amounts are written off against the allowance in the period the Company determines that the receivable is uncollectible.

Property and Equipment

Property and equipment are stated at cost. The straight-line method is used to calculate depreciation over their estimated useful lives ranging as follows:

Automobile	3 to 5 years
Furniture & fixture	4 to 7 years
Leasehold improvement	5 years
Machinery and equipment	4 to 5 years

Leasehold improvements are depreciated to expense over the shorter of the life of the improvement or the remaining lease term. Capital expenditures that enhance the value or materially extend the useful life of the related assets are reflected as additions to property and equipment. Expenditures for repairs and maintenance are charged to expense as incurred. Upon a sale or disposition of assets, a gain or a loss is included in the statement of operations.

Impairment of Long-lived Assets

The Company periodically reviews the recoverability of its long-lived assets using the methodology prescribed in accounting guidance now codified as FASB ASC Topic 360, “Property, Plant and Equipment.” The Company also reviews these assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted future net cash flows from the operations to which the assets relate, based on management’s best estimates using appropriate assumptions and projections at the time, to the carrying amount of the assets. If the carrying value is determined not to be recoverable from future operating cash flows, the asset is deemed impaired and an impairment loss is recognized equal to the amount by which the carrying amount exceeds the estimated fair value of the asset. In management’s opinion, no such impairment existed as of June 30, 2013 and December 31, 2012

Accrued Expenses

The Company’s accrued expenses consist of amounts payable for professional fee, corporate income tax and interest.

Income Taxes

The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in income tax rates is recognized in the results of operations in the period that includes the enactment date. The realizability of deferred tax assets is evaluated based on a “more likely than not” standard, and to the extent this threshold is not met, a valuation allowance is recorded. See Note 9 Income Taxes for more information about the Company’s income taxes.

Recent Accounting Pronouncements

Indefinite-lived intangible assets impairment

In July 2012, the FASB issued an update to the authoritative guidance related to testing indefinite-lived intangible assets for impairment. This update gives an entity the option to first consider certain qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative impairment test. This update is effective for the indefinite-lived intangible asset impairment test performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. We do not expect that the adoption of this guidance will have a material impact on our consolidat

ed financial statements.

Fair value measurements and disclosures

Effective January 1, 2012, we adopted an update to the accounting rules for fair value measurement. The new accounting principal establishes a consistent definition of fair value in an effort to ensure that the fair value measurement and disclosure requirements between U.S. GAAP and International Financial Reporting Standards (“IFRS”) are comparable. This update changes certain fair value measurement principles and enhances the disclosure requirements for fair value measurements. This update does not extend the use of fair value accounting, but provides guidance on how it should be applied where its use was already required or permitted by other standards within U.S. GAAP or IFRS. This update is effective for interim and annual periods beginning after December 15, 2011 and is applied prospectively. The adoption of this pronouncement did not have a material impact on the Company’s Consolidated Financial Statements and accompanying disclosures.

Statement of comprehensive income

Effective January 1, 2012, we adopted the FASB issued authoritative guidance on the presentation of comprehensive income. This update requires that all non-owner changes in stockholders’ equity be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements. This update does not change the items that must be reported in other comprehensive income or when an item of other comprehensive income must be reclassified to net income. The adoption of this pronouncement did not have a material impact on the Company’s Consolidated Financial Statements and accompanying disclosures.

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Note 4 - Prepaid Expense

6 Months Ended

Jun. 30, 2013

Notes

Note 4 - Prepaid Expense

Note 4 – Prepaid expense

The Company’s prepaid expenses consist of amounts prepaid for license, equipment rental, server and webpage.

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Note 7 - Loan Payable

6 Months Ended

Jun. 30, 2013

Notes

Note 7 - Loan Payable

Note 7 – Loan Payable

As of June 30, 2013 and December 31, 2012, the Company has loan payable as follows:

	June 30, 2013	December 31, 2012
Auto loan payable to a bank, due in monthly installments of $1,346 including interest at 4.39% as of June 30, 2013 and December 31, 2012. The final payment for the loan is scheduled on June 27, 2016.	$        46,490	$        53,454
Loan payable to Playon Interactive, Inc. due on September 12, 2013. Interest rate is 11.00% as of June 30, 2013.	50,000	50,000
Less: Current portion	(64,396)	(64,083)
Loan payable, net of current	$        32,094	$        39,371

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Note 5 - Property and Equipment

6 Months Ended

Jun. 30, 2013

Notes

Note 5 - Property and Equipment

Note 5 - Property and Equipment

Property and equipment consist of the following as of June 30, 2013 and December 31, 2012:

	June 30, 2013	December 31, 2012
Automobile	$             144,968	$               145,121
Furniture and fixture	14,270	14,270
Leasehold improvement	1,100	1,100
Machinery and equipment	1,192,896	1,319,879
	1,353,234	1,480,370
Less: Accumulated depreciation	(899,762)	(816,192)
Net property and equipment	$             453,472	$            664,178

Depreciation expense amounted to $83,570 and $329,952 for the six months ended June 30, 2013 and 2012, respectively.

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Note 6 - Intangibles: Schedule of Intangible Assets and Goodwill (Tables)

6 Months Ended

Jun. 30, 2013

Tables/Schedules

Schedule of Intangible Assets and Goodwill

	June 30, 2013	December 31, 2012
Software	$                30,226	$                46,088
License	400,000	1,027,925
Flash Game	1,597	1,597
	431,823	1,075,610
Less: Accumulated amortization	(164,191)	(527,528)
Net intangibles	$              267,632	$               548,082

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Note 5 - Property and Equipment: Property, Plant and Equipment (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Details
Automobile	$ 144,968	$ 145,121
Furniture and Fixtures, Gross	14,270	14,270
Leasehold Improvements, Gross	1,100	1,100
Machinery and Equipment, Gross	1,192,896	1,319,879
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment	(899,762)	(816,192)
Property, Plant and Equipment, Other, Net	$ 453,472	$ 664,178

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Statement of Financial Position - Parenthetical (USD $)	Jun. 30, 2013	Dec. 31, 2012
Balance Sheets
Common Stock, Par Value	$ 0.001	$ 0.001
Common Stock, Shares Authorized	3,000,000,000	3,000,000,000
Common Stock, Shares Issued	9,992,535	9,992,535
Common Stock, Shares Outstanding	9,992,535	9,992,535

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Note 10 - Subsequent Events

6 Months Ended

Jun. 30, 2013

Notes

Note 10 - Subsequent Events

Note 10 - Subsequent Events

Management has evaluated subsequent events through the date of issuance of the financial data included herein. There have been no subsequent events that occurred during such period that would require disclosure in this Form 10-Q or would be required to be recognized in the Consolidated Financial Statements (Unaudited) as of June 30, 2013.

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Statement of Cash Flows (USD $)	6 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Statement of Cash Flows
Net Income (Loss) Attributable to Parent	$ (526,805)	$ (421,824)
NoncontrollingInterestIncreaseFromBusinessCombination	85,756	(17,042)
Depreciation, Depletion and Amortization	69,122	504,465
PropertyPlantAndEquipmentTransfersAndChanges	18,587
GoodwillAndIntangibleAssetImpairment	244,690
Increase (Decrease) in Receivables	88,474	(131,445)
IncreaseDecreaseInSecurityDeposits		(21,035)
Increase (Decrease) in Prepaid Expense and Other Assets	6,129
IncreaseDecreaseInOtherCurrentAssets	16,330	39,269
Increase (Decrease) in Accounts Payable	536,640	158,956
Increase (Decrease) in Accrued Liabilities	(36,400)	(12,432)
IncreaseDecreaseInPensionPlanObligations	(1,742)
Increase (Decrease) in Other Operating Liabilities	(189,736)	(96,136)
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities	837,850	424,600
Net Cash Provided by (Used in) Operating Activities	311,045	2,776
Payments to Acquire Property, Plant, and Equipment		(15,370)
Proceeds from Sale of Intangible Assets		(107,828)
Proceeds from Sale of Other Productive Assets	(67,122)
Proceeds from Collection of (Payments to Fund) Long-term Loans to Related Parties	(308,334)
Net Cash Provided by (Used in) Investing Activities	(375,456)	(123,198)
Proceeds from (Repayments of) Notes Payable	(6,965)	(6,964)
RepaymentsOfDebtAndCapitalLeaseObligations		(111,751)
ForeignCurrencyTransactionGainLossBeforeTax	(82,549)	(18,201)
Proceeds from Issuance of Common Stock		300,000
Net Cash Provided by (Used in) Financing Activities	(89,514)	163,084
Cash and Cash Equivalents, Period Increase (Decrease)	(153,925)	42,662
Cash and Cash Equivalents, at Carrying Value	213,722	418,891
Cash and Cash Equivalents, at Carrying Value	$ 59,797	$ 461,553

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Statement of Financial Position (USD $)	Jun. 30, 2013	Dec. 31, 2012
Balance Sheets
Cash and Cash Equivalents, at Carrying Value	$ 59,797	$ 213,722
Accounts Receivable, Net, Current	1,178,639	1,267,113
Prepaid Expense, Current	87,620	93,749
Other Assets, Current	31,327	47,657
Assets, Current	1,357,383	1,622,241
PropertyPlantAndEquipmentNet	453,472	664,178
IntangibleAssetsNetExcludingGoodwill	267,632	548,082
SecurityDeposit	21,034	21,034
Assets, Noncurrent	742,138	1,233,294
Assets	2,099,521	2,855,535
Accounts Payable, Current	687,867	151,228
Accrued Liabilities, Current	8,600	45,000
NotesPayableRelatedPartiesCurrent	479,284	787,618
Loans Payable, Current	64,396	64,083
Other Liabilities, Current	52,367	242,103
Liabilities, Current	1,292,514	1,290,032
Loans Payable, Noncurrent	32,094	39,371
Pension and Other Postretirement Defined Benefit Plans, Liabilities, Noncurrent	21,558	23,300
Liabilities, Noncurrent	53,652	62,671
Liabilities	1,346,166	1,352,703
Common Stock, Value, Issued	9,993	9,993
Additional Paid in Capital, Common Stock	4,489,701	4,489,701
Accumulated Other Comprehensive Income (Loss), Net of Tax	(106,806)	30,110
Retained Earnings (Accumulated Deficit)	(3,560,226)	(3,033,421)
Stockholders' Equity Attributable to Noncontrolling Interest	(79,307)	6,449
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	753,355	1,502,832
Liabilities and Equity	$ 2,099,521	$ 2,855,535

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Note 7 - Loan Payable: Schedule of Debt (Tables)

6 Months Ended

Jun. 30, 2013

Tables/Schedules

Schedule of Debt

	June 30, 2013	December 31, 2012
Auto loan payable to a bank, due in monthly installments of $1,346 including interest at 4.39% as of June 30, 2013 and December 31, 2012. The final payment for the loan is scheduled on June 27, 2016.	$        46,490	$        53,454
Loan payable to Playon Interactive, Inc. due on September 12, 2013. Interest rate is 11.00% as of June 30, 2013.	50,000	50,000
Less: Current portion	(64,396)	(64,083)
Loan payable, net of current	$        32,094	$        39,371

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Note 1 - Nature of Business: Indefinite-lived Intangible Assets Impairment (Policies)

6 Months Ended

Jun. 30, 2013

Policies

Indefinite-lived Intangible Assets Impairment

Indefinite-lived intangible assets impairment

In July 2012, the FASB issued an update to the authoritative guidance related to testing indefinite-lived intangible assets for impairment. This update gives an entity the option to first consider certain qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the fair value of an indefinite-lived intangible asset is less than its carrying amount as a basis for determining whether it is necessary to perform the quantitative impairment test. This update is effective for the indefinite-lived intangible asset impairment test performed for fiscal years beginning after September 15, 2012. Early adoption is permitted. We do not expect that the adoption of this guidance will have a material impact on our consolidat

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Note 9 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Details
Operating Loss Carryforwards	$ 2,790,888	$ 2,761,612
Loss Carry Forwards	229,720	229,720
Deferred Tax Assets, Gross	3,020,608	2,991,332
Deferred Tax Assets, Valuation Allowance	$ (3,020,608)	$ (2,991,332)

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Note 9 - Income Taxes

6 Months Ended

Jun. 30, 2013

Notes

Note 9 - Income Taxes

Note 9 - Income Taxes

Significant components of deferred tax assets are as follows:

	June 30, 2013		December 31, 2012
Loss carry forwards	$	2,790,888	$	2,761,612
Other	229,720		229,720
Total deferred tax asset	3,020,608		2,991,332
Valuation allowance	(3,020,608)		(2,991,332)
Total deferred tax asset, net	$	-	$	-

As of June 30, 2013, the Company had approximately $5,100,000 of net operating loss (“NOL”) carryforwards for U.S. federal income tax purposes expiring in 2020 through 2030. In addition, the Company has California state NOL carryforwards of approximately $3,500,000 expiring in 2013 through 2020. 

The ability to realize the tax benefits associated with deferred tax assets, which includes benefits related to NOL’s, is principally dependent upon the Company’s ability to generate future taxable income from operations.  The Company has provided a full valuation allowance for its net deferred tax assets due to the Company’s net operating losses.  The valuation allowance has increased by $29,276 during the six months ended June 30, 2013.

Section 382 of the Internal Revenue Code (“IRC”) imposes limitations on the use of NOL’s and credits following changes in ownership as defined in the IRC. The limitation could reduce the amount of benefits that would be available to offset future taxable income each year, starting with the year of an ownership change.

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Note 9 - Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables)

6 Months Ended

Jun. 30, 2013

Tables/Schedules

Schedule of Deferred Tax Assets and Liabilities

	June 30, 2013		December 31, 2012
Loss carry forwards	$	2,790,888	$	2,761,612
Other	229,720		229,720
Total deferred tax asset	3,020,608		2,991,332
Valuation allowance	(3,020,608)		(2,991,332)
Total deferred tax asset, net	$	-	$	-

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Note 1 - Nature of Business: Revenue Recognition (Policies)

6 Months Ended

Jun. 30, 2013

Policies

Revenue Recognition

Revenue Recognition

Online game revenue

We derive, and expect to continue to generate, most of our revenues from online game subscription revenue generated in the countries where our games are offered by us. We recognize revenue in accordance with Accounting Standard Codification (ASC) 605, Revenue Recognition and other related pronouncements. Online game revenue is deferred until prepaid subscription cards are consumed by users.

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Note 8 - Commitments and Contingencies

6 Months Ended

Jun. 30, 2013

Notes

Note 8 - Commitments and Contingencies

Note 8 - Commitments and Contingencies

Legal Proceedings

To the best knowledge of management, there are no pending legal proceedings against us.

On September 5, 2008, Vivien and David Bollenberg, a current shareholder (the “Bollenbergs”), filed a claim against Lexon and other third parties, including Byung Hwee Hwang (also referred to as "Ben Hwang") and other financial agents and institutions involved in the alleged fraudulent transaction.  The filed complaint alleges that Ben Hwang together with his representatives, including his accountant, escrow agent and real estate agent/broker, made certain representations to and solicited the Bollenbergs to make an investment in several companies and ventures including Lexon with the intent to misappropriate the solicited funds for personal use. The Bollenbergs allege that they invested a total of $1,500,000 among and between the various companies and ventures recommended by Ben Hwang, of which investment amount approximately $550,000 was invested in Lexon ($150,000 for 600,000 shares at $0.25 per share and $400,000 initially invested in Lexon Korea and later converted into 1,150,000 shares in Lexon for a total of 1,750,000 shares in Lexon). On April 1, 2011, after a trial was concluded, judgment was entered in favor of the Lexon Technologies whereby Lexon was not found liable for any causes of action brought by the Bollenbergs.  The Bollenbergs were served with a filed stamped copy of the judgment on June 2, 2011.  Thereafter, the Bollenbergs filed an appeal on December 2, 2011 and insisted that they were not served with the judgment on June 2, 2011 and filed the instant Motion to Vacate the Dismissal (or the Petition for Rehearing).  This appeal by the Bollenbergs was denied by the California Court of Appeals (4^th District) in February 2012, officially concluding this legal proceeding.

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Note 3 - Accounts Receivable

6 Months Ended

Jun. 30, 2013

Notes

Note 3 - Accounts Receivable

Note 3 – Accounts receivable

The following table provides the components of accounts receivable as of June 30, 2013 and December 31, 2012:

	June 30, 2013	December 31, 2012
Receivable from game sales	$               1,178,639	$              1,143,802
Other receivable	-	123,311
	1,178,639	1,267,113
Less: Allowance for bad debt expense	-	-
Accounts receivable, net	$               1,178,639	$              1,267,113

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Note 6 - Intangibles: Schedule of Intangible Assets and Goodwill (Details) (USD $)	Jun. 30, 2013	Dec. 31, 2012
Details
Capitalized Computer Software, Net	$ 30,226	$ 46,088
Finite-Lived License Agreements, Gross	400,000	1,027,925
Flash Game	1,597	1,597
Finite-Lived Intangible Assets, Accumulated Amortization	(164,191)	(527,528)
Other Intangible Assets, Net	$ 267,632	$ 548,082

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Note 1 - Nature of Business: Property and Equipment (Policies)

6 Months Ended

Jun. 30, 2013

Policies

Property and Equipment

Property and Equipment

Property and equipment are stated at cost. The straight-line method is used to calculate depreciation over their estimated useful lives ranging as follows:

Automobile	3 to 5 years
Furniture & fixture	4 to 7 years
Leasehold improvement	5 years
Machinery and equipment	4 to 5 years

Leasehold improvements are depreciated to expense over the shorter of the life of the improvement or the remaining lease term. Capital expenditures that enhance the value or materially extend the useful life of the related assets are reflected as additions to property and equipment. Expenditures for repairs and maintenance are charged to expense as incurred. Upon a sale or disposition of assets, a gain or a loss is included in the statement of operations.

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Note 1 - Nature of Business: Use of Estimates (Policies)

6 Months Ended

Jun. 30, 2013

Policies

Use of Estimates

Use of Estimates

The preparation of the 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 amounts reported in the financial statements and accompanying notes. Estimates are primarily used for depreciation of property and equipment, amortization of intangible assets, allowances for doubtful accounts. Actual results could differ from those estimates.

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Note 1 - Nature of Business: Income Taxes (Policies)

6 Months Ended

Jun. 30, 2013

Policies

Income Taxes

Income Taxes

The Company uses the asset and liability method of accounting for income taxes. Under the asset and liability method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and net operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in income tax rates is recognized in the results of operations in the period that includes the enactment date. The realizability of deferred tax assets is evaluated based on a “more likely than not” standard, and to the extent this threshold is not met, a valuation allowance is recorded. See Note 9 Income Taxes for more information about the Company’s income taxes.

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Note 1 - Nature of Business: Impairment of Long-lived Assets (Policies)

6 Months Ended

Jun. 30, 2013

Policies

Impairment of Long-lived Assets

Impairment of Long-lived Assets

The Company periodically reviews the recoverability of its long-lived assets using the methodology prescribed in accounting guidance now codified as FASB ASC Topic 360, “Property, Plant and Equipment.” The Company also reviews these assets for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of these assets is determined by comparing the forecasted undiscounted future net cash flows from the operations to which the assets relate, based on management’s best estimates using appropriate assumptions and projections at the time, to the carrying amount of the assets. If the carrying value is determined not to be recoverable from future operating cash flows, the asset is deemed impaired and an impairment loss is recognized equal to the amount by which the carrying amount exceeds the estimated fair value of the asset. In management’s opinion, no such impairment existed as of June 30, 2013 and December 31, 2012

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Document and Entity Information (USD $)	6 Months Ended
	Jun. 30, 2013	Jul. 31, 2013
Document and Entity Information:
Entity Registrant Name	SOCIAL CUBE INC
Document Type	10-Q
Document Period End Date	Jun. 30, 2013
Amendment Flag	false
Entity Central Index Key	0001065189
Current Fiscal Year End Date	--12-31
Entity Common Stock, Shares Outstanding		9,992,535
Entity Public Float		$ 19,124,023
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	Q2

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Note 1 - Nature of Business: Accrued Expenses (Policies)

6 Months Ended

Jun. 30, 2013

Policies

Accrued Expenses

Accrued Expenses

The Company’s accrued expenses consist of amounts payable for professional fee, corporate income tax and interest.