0001493152-13-001227.txt : 20130619 0001493152-13-001227.hdr.sgml : 20130619 20130619104750 ACCESSION NUMBER: 0001493152-13-001227 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 10 CONFORMED PERIOD OF REPORT: 20111231 FILED AS OF DATE: 20130619 DATE AS OF CHANGE: 20130619 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ASIA PROPERTIES INC CENTRAL INDEX KEY: 0001070789 STANDARD INDUSTRIAL CLASSIFICATION: LAND SUBDIVIDERS & DEVELOPERS (NO CEMETERIES) [6552] IRS NUMBER: 470855301 STATE OF INCORPORATION: NV FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-51048 FILM NUMBER: 13921079 BUSINESS ADDRESS: STREET 1: 12707 HIGH BLUFF DRIVE 2ND FL CITY: SAN DIEGO STATE: CA ZIP: 92130 BUSINESS PHONE: 6193504288 MAIL ADDRESS: STREET 1: 114 MAGNOLIA STREET STREET 2: STE 400-115 CITY: BELLINGHAM STATE: WA ZIP: 98225 10-K 1 form10k.htm ANNUAL REPORT FORM 10-K

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549

 

FORM 10-K

 

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

 

For the fiscal year ended December 31, 2011

 

Commission file number 000-51048

 

ASIA PROPERTIES, INC.

(Exact name of registrant as specified in its charter)

 

Nevada   47-0855301
(State or other jurisdiction of incorporation or organization)   (IRS Employer Identification No.)

 

119, Commercial Street

Suite 190-115, Bellingham

Washington 98225

(Address of principal executive offices, including zip code.)

 

(360) 392-2841

(Registrant’s telephone number, including country code)

 

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

None

 

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

Common Stock, $0.001 par value

 

Indicate by check mark if the Registrant is a well-known seasoned issuer (as defined in Rule 405 of the Securities Act): YES [  ] NO [X]

 

Check whether the issuer is not required to file reports pursuant to Section 13 or 15(d) of the Exchange Act YES [  ] NO [X]

 

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. YES [  ] NO [X]

 

Check if no disclosure of delinquent filers pursuant to Item 405 of Regulation S-B is contained herein, and no disclosure will be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-KSB or any amendment to this Form 10-KSB. [X]

 

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

 

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

 

Indicate by Checkmark whether the registrant is a Shell Company (as defined in Rule 126-2 of the Exchange Act. YES [  ] NO [X]

 

The aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked price of such common equity: As of December 31, 2011, the aggregate market value of the voting and non-voting common equity was $3,457,922 .

 

The number of shares outstanding of each of the issuer’s classes of common equity: As of December 31, 2011, there were 38,421,362 shares of Common Stock outstanding.

 

 

 

 
 

 

FORWARD LOOKING STATEMENT

 

We make forward-looking statements in this document. Our forward-looking statements are subject to risks and uncertainties. You should note that many factors, some of which are described in this section or discussed elsewhere in this document, could affect our company in the future and could cause our results to differ materially from those expressed in our forward-looking statements. Forward-looking statements include those regarding our goals, beliefs, plans or current expectations and other statements regarding matters that are not historical facts. For example, when we use the words “believe,” “expect,” “anticipate” or similar expressions, we are making forward-looking statements. We are not required to release publicly the results of any revisions to these forward-looking statements we may make to reflect future events or circumstances.

 

This annual report on Form 10-KSB contains predictions, projections and other statements about the future that are intended to be forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (collectively, forward-looking statements). Forward-looking statements involve risks and uncertainties. A number of important factors could cause actual results to differ materially from those in the forward-looking statements. In assessing forward-looking statements contained in this annual report on Form 10-KSB, readers are urged to read carefully all cautionary statements, including those contained in other sections of this annual report on Form 10-KSB. Among such risks and uncertainties is the risk that the Company will not complete its proposed Business Plan, that its management is adequate to carry out its Business Plan and that there will be adequate capital. Since the Company is a ‘penny stock’ company, the safe harbor for forward-looking statements contained in the private securities litigation reform act, as amended, does not apply to the Company.

 

2
 

 

    Page
     
PART I    
     
Item 1. Description of Business   4
Item 2. Description of Property   7
Item 3. Legal Proceedings   7
Item 4. Submission of Matters to a Vote of Security Holders   7
     
PART II    
     
Item 5. Market For Registrant Common Equity and Related Stockholder Matter and Issuer Purchases of Equity Securities   8
Item 6. Management’s Discussion and Analysis of Financial Condition and Results of Operations   9
Item 7 Financial statements and Supplementary Data   11
Item 8. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure   12
Item 8. A(T) Controls & procedures   12
Item 8. B. Other Information   12
     
PART III    
     
Item 9. Directors, Executive Officers, Promoters and Control Persons   13
Item 10. Executive Compensation   15
Item 11. Security Ownership of Certain Beneficial Owners and Management   16
Item 12. Certain relationships and Related Transactions, and Director Independence   16
Item 13. Principal Accounting Fees and Services   17
     
PART IV    
     
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8–K   18
Signatures   19

 

3
 

 

PART I

 

ITEM 1. DESCRIPTION OF BUSINESS

 

General

 

We were incorporated in Nevada on April 6, 1998.

 

Our principal executive offices are located at 119 Commercial Street, Suite 190-115, Bellingham, Washington 98225. Our fiscal year end is December 31 and our shares are traded on the Pink Sheets under the symbol “ASPZ”. We are also listed in the Mergent Manuals and News Reports.

 

The Company has one wholly owned subsidiary, Asia Properties (HK) Limited, registered in Hong Kong on November 7, 2007.

 

Industry

 

Asia Properties, Inc was established to seek opportunities to invest in real estate and develop resorts in South East Asia. We are now a junior mining and exploration company focused on gold and resources mining.

 

Our Planned Operations

 

We intend to acquire and develop gold mining claims as well as existing claims around the world as opportunities present themselves.

 

Website

 

We currently maintain a website at www.asiaprop.com.

 

Revenues

 

Currently we have no revenue generating assets.

 

Competition

 

We have numerous small and large mining competitors at present time.

 

Employees

 

We administer our business through consulting arrangements with our company’s officers, directors, other individuals and one full-time employee.

 

Consultants

 

During the year ended December 31, 2011, the Company spent $48,604 to hire geological and prospecting consultants.

 

Offices

 

We maintained two offices, one at 119 N. Commercial Street, Suite 190-115, Bellingham, Washington 98225, telephone number (360) 392-2841.

 

Our second office is at Two Exchange Square, 8th Floor, 8 Connaught Place, Central, Hong Kong, a shared serviced office leased from The Executive Centre.

 

4
 

 

Risk Factors

 

1. We lack an operating history for our current business and have losses that we expect to continue into the future. There is no assurance our future operations will result in profitable revenues. If we cannot generate sufficient revenues to operate profitably, you will lose your investment.

 

While we were incorporated in 1998, we have just initiated our current business operations. Therefore our current operating history cannot be used to determine our future success or failure. Our net loss since inception is $3,915,587. Our ability to achieve and maintain profitability and positive cash flow is dependent upon our ability to secure profitable business investments and opportunities. Based upon current plans, we expect to incur operating losses in the immediate future because we will be incurring expenses which will exceed our revenues. If we cannot generate a profit, we will have to suspend or cease operations and you will lose your investment.

 

2. We spent all of the proceeds from our private placement to maintain our business operations. If we can’t raise additional funds, we may be forced to curtail or cease future activities.

 

We have not initiated our operations. There is no assurance that we will be able to obtain additional funding when needed, or that such funding, if available, can be obtained on terms acceptable to us. If we cannot obtain needed funds, we may be forced to curtail or cease future activities.

 

3. Because our operations are all located outside of the United States, any change in the laws of the countries we operate in may adversely affect our business.

 

All of our operations are in South China, Hong Kong and South East Asia. This exposes us to risks, such as exchange controls and currency restrictions, currency fluctuations and devaluations, changes in local economic conditions, changes in laws and regulations, exposure to possible expropriation or other government actions, and unsettled political conditions. These factors may have a material adverse effect on our operations or on our business, results of operations and financial condition.

 

4. Our international expansion plans subject us to risks inherent in doing business internationally.

 

Our long-term business strategy relies on the securing of investment opportunities in South China and South East Asia. We are faced by challenges caused by distance, language and cultural differences, conflicting and changing laws and regulations, foreign laws, international import and export legislation, trading and investment policies, foreign currency fluctuations, the burdens of complying with a wide variety of laws and regulations, protectionist laws and business practices that favor local businesses in some countries, foreign tax consequences, higher costs associated with doing business internationally, restrictions on the export or import of technology, difficulties in staffing and managing international operations, trade and tariff restrictions, and variations in tariffs, quotas, taxes and other market barriers. These risks could harm our business efforts, and materially and adversely affect our operating results and financial condition.

 

5. We face risks associated with currency exchange rate fluctuations, any adverse fluctuation may adversely affect our operating margins.

 

Although we are incorporated in the United States, the majority of our activities are transacted in the currencies of the countries we operate in. Conducting business in currencies other than U.S. dollars subjects us to fluctuations in currency exchange rates that could have a negative impact on our reported operating results. Fluctuations in the value of the U.S. dollar relative to other currencies impact our revenues, cost of revenues and operating margins and result in foreign currency translation gains and losses. Historically, we have not engaged in exchange rate hedging activities. Although we may implement hedging strategies to mitigate this risk, these strategies may not eliminate our exposure to foreign exchange rate fluctuations and may involve costs and risks of their own, such as ongoing management time and expertise, external costs to implement the strategy and potential accounting implications.

 

6. If relations between the United States and China or the countries in South East Asia change for the worse, our stock price may decrease and we may have difficulty accessing the U.S. capital markets.

 

At various times during recent years, the United States and the countries we operate in have had disagreements over political and economic issues. Any political or trade controversies which may arise in the future between the United States and these countries could adversely affect the market price of our common stock and our ability to access U.S. capital markets.

 

7. The governments of the countries we operate it could change its policies toward private enterprises, which could adversely affect our business.

 

Our business is subject to and may be adversely affected by political and economic uncertainties and social developments in the countries we operate in. Although the Philippine administrations have been relatively stable and the Chinese government has successfully pursued economic reform policies during the past several years, there is political unrest in Thailand and the Chinese face accusations regarding the valuation of the Renminbi. These governments may continue to pursue these policies or may alter them from time to time to our detriment. Changes in policies, laws and regulations, or in their interpretation or the imposition of confiscatory taxation, restrictions on currency conversion, restrictions or prohibitions on dividend payments to stockholders, devaluations of currency or the nationalization or other expropriation of private enterprises could have a material adverse effect on our business. Nationalization or expropriation could result in the total loss of our investments.

 

5
 

 

Risk Factors (continued)

 

8. The economic, political and social conditions in the countries we operate in could affect our business.

 

All of our business, assets and operations are located outside of the United States. In many respects, the economies of the other countries we operate in differs from the economies of most developed countries, including government involvement, level of development, growth rate, control of foreign exchange, and allocation of resources.

 

In particular, while the Chinese economy has transitioned from a planned economy to a market-oriented economy and the Chinese government has implemented measures emphasizing the utilization of market forces for economic reform, the reduction of state ownership of productive assets and the establishment of sound corporate governance in business enterprises, a substantial portion of productive assets in China is still owned by the government. The government continues to play a significant role in regulating industry by imposing industrial policies. It also exercises significant control over China’s economic growth through the allocation of resources, controlling payment of foreign currency-denominated obligations, setting monetary policy and providing preferential treatment to particular industries or companies. Therefore, the Chinese government’s involvement in the economy could adversely affect our business operations, results of operations and financial condition.

 

9. The significant but uneven growth in the economy of China in the past 20 years could have an adverse effect on our business and results of operations.

 

The Chinese government has implemented various measures from time to time to control the rate of economic growth. Some of these measures benefit the overall economy of China, but may have a negative effect on us.

 

10. Government control of currency conversion and future movements in exchange rates may adversely affect the Company’s operations and financial results.

 

All of our transactions are substantially in currencies other than the U.S. dollar, including the Renminbi, Thai Baht, Philippine Peso and the Hongkong Dollar. A portion of such monies will be converted into other currencies to meet our foreign currency obligations. Foreign exchange transactions continue to be subject to significant foreign exchange controls in the countries we operate in and in China, require the approval of the State Administration of Foreign Exchange in China. The Chinese government controls its foreign currency reserves through restrictions on imports and conversion of Renminbi into foreign currency. Although the exchange rate of the Renminbi to the U.S. dollar has been stable since January 1, 1994, and the Chinese government has stated its intention to maintain the stability of the value of Renminbi.

 

These limitations could affect our ability to obtain foreign exchange through debt or equity financing, or to obtain foreign exchange for capital expenditures.

 

There can be no assurance that exchange rates will remain stable. Any currency devaluation against the U.S. dollar might increase our cash flow required to satisfy our foreign currency-denominated obligations, adversely affecting our financial condition and results of operations.

 

11. It may be difficult to serve us with legal process or enforce judgments against our management or us.

 

All of our assets are located outside the United States. In addition, our officers and directors are not based in the United States. As a result, it may not be possible to effect service of process within the United States upon such persons to originate an action in the United States. Moreover, there is uncertainty that the courts of the countries we operate in will enforce judgments of U.S. courts against us or our directors and officers based on the civil liability provisions of the securities laws of the United States or any state, or entertain an original action brought in the countries we operate in based upon the securities laws of the United States or any state.

 

Investment risks:

 

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

 

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

 

6
 

 

Risk Factors (continued)

 

13. Because we may issue additional shares of common stock in public offerings or private placements, your ownership interest in us may be diluted.

 

Because in the future we may issue shares of common stock to pay for services, to pay for equipment, or to raise money for our operations, your ownership interest may be diluted which results in your percentage of ownership in us decreasing.

 

14. Because of the ongoing US-led global economic downturn, our ability to significantly complete our business plan may not materialize.

 

The recent financial turmoil following from the Wall Street failures has made it very difficult for us to secure financing for our business ventures at this time. This will adversely affect our market capitalization and, therefore, the price of our shares. We plan to engage other similar projects when the viability to finance such projects returns.

 

15Because our President and Chief Executive Office, Daniel McKinney, is our only employee at this time, any change in his status with our Company will negatively affect both the operations of our Company as well as our ability to secure funding in the future.

 

Any change in our sole employee, Daniel McKinney’s involvement with our Company may negatively affect our operations and our ability to execute our business plan. This may affect the value of shares in our Company.

 

ITEM 2. DESCRIPTION OF PROPERTY

 

The Company acquired the Banroy Gold Claim on 18 July, 2011, consisting of 16 claims covering an area of 677.52 hectares, being in La Pause Township, Quebec, Canada. On August 29, 2011, API entered into a definitive agreement to acquire the 1325 acre King’s Point, North Block Mining Concession, located in Newfoundland, Canada consisting of 53 claims.

 

ITEM 3. LEGAL PROCEEDINGS

 

As of the date of this report, we know of no legal proceedings to which we are a party or to which any of our property is the subject, which are pending, threatened or contemplated or any unsatisfied judgments against us.

 

 

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

 

During the period covered by this report, no matters requiring a vote were submitted to security holders by means of the solicitation of proxies or otherwise.

 

7
 

 

PART II

 

ITEM 5. MARKET FOR REGISTRANT COMMON EQUITY AND RELATED STOCKHOLDER MATTER AND ISSUER PURCHASES OF EQUITY SECURITIES

 

Our common stock is traded on the Over-the-Counter Pink Sheets under the symbol “ASPZ”. As of December 31, 2011, we had approximately 90 shareholders on record. Presented below is the high and low bid information of our common stock for the periods indicated. These quotations reflect inter-dealer prices, without retail mark-up, mark-down, or commission and may not represent actual transactions.

 

Common Stock      
   High   Low 
Fiscal Year Ending December 31, 2011          
First Quarter  $0.07   $0.05 
Second Quarter  $0.08   $0.03 
Third Quarter  $0.25   $0.05 
Fourth Quarter  $0.21   $0.05 
           
Fiscal Year Ending December 31, 2010          
First Quarter  $0.29   $0.15 
Second Quarter  $0.28   $0.14 
Third Quarter  $0.32   $0.10 
Fourth Quarter  $0.20   $0.06 
           
Fiscal Year Ending December 31, 2009          
First Quarter  $0.10   $0.02 
Second Quarter  $0.10   $0.04 
Third Quarter  $0.10   $0.04 
Fourth Quarter  $0.48   $0.07 

 

We were given our trading symbol “ASPZ” to trade on the NASD OTC Pink Sheets in January, 1999. On December 31, 2011, the last price of our common stock as reported on the OTCQB was $0.05 per share.

 

Dividend Policy

 

We have never paid cash dividends on our capital stock and do not anticipate paying any cash dividends in the foreseeable future.

 

We have however, paid stock dividends in April 2007 comprising of one share in Hertz Controller Technologies Corporation for every two shares of Common Stock held in our Company

 

Recent Sales of Unregistered Securities

 

There were no issues of unregistered securities during the period under review.

 

8
 

 

ITEM 5. (continued)

 

Section 15(g) of the Securities Exchange Act of 1934

 

Our company’s shares are covered by Section 15(g) of the Securities Exchange Act of 1934, as amended that imposes additional sales practice requirements on broker/dealers who sell such securities to persons other than established customers and accredited investors (generally institutions with assets in excess of $5,000,000 or individuals with net worth in excess of $1,000,000 or annual income exceeding $200,000 or $300,000 jointly with their spouses). For transactions covered by the Rule, the broker/dealer must make a special suitability determination for the purchase and have received the purchaser’s written agreement to the transaction prior to the sale.

 

Consequently, the Rule may affect the ability of broker/dealers to sell our securities and also may affect your ability to sell your shares in the secondary market.

 

Section 15(g) also imposes additional sales practice requirements on broker/dealers who sell penny securities. These rules require a one-page summary of certain essential items. The items include the risk of investing in penny stocks in both public offerings and secondary marketing; terms important to in understanding of the function of the penny stock market, such as “bid” and “offer” quotes, a dealers “spread” and broker/dealer compensation; the broker/dealer compensation, the broker/dealers duties to its customers, including the disclosures required by any other penny stock disclosure rules; the customers rights and remedies in causes of fraud in penny stock transactions; and, the NASD’s toll free telephone number and the central number of the North American Administrators Association, for information on the disciplinary history of broker/dealers and their associated persons.

 

Transfer agent

 

Our Transfer Agent is Transfer Online, Inc., 512 SE Salmon Street, Portland, OR 97214.

 

ITEM 6. MANAGEMENT DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

This section of the report includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like: believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements, which apply only as of the date of this report. These forward-looking states are subject to certain risks and uncertainties that could cause actual results to differ materially from historical results or our predictions.

 

Plan of Operation

 

We are a development stage Company and have not yet generated or realized any revenues from our current business operations. We are not going to buy or sell any plant or significant equipment during the next twelve months. We will not be conducting any product research or development. We do not expect significant changes in the number of employees.

 

Our specific goal is to identify and secure profitable investment opportunities in mining claims.

 

Limited Operating History; Need for Additional Capital

 

There is no historical financial information about us upon which to base an evaluation of our performance. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services.

 

Critical Accounting Policies and Estimates

 

We did not generate revenues from operations in 2011 or 2010. We have recognized losses from operations, and the foregoing discussion of our plan of operation is based in part on our financial statements. These have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The estimates and critical accounting policies that are most important in fully understanding and evaluating our financial statements and results of operations are discussed below.

 

9
 

 

ITEM 6. (continued)

 

Liquidity and Capital Resources

 

We did not sell any common shares during 2011.

 

We are a development stage company and management has devoted considerable effort to find profitable investment opportunities. As of the date of this report, we have initiated operations, but have not generated any revenues. During the preceding year we acquired a number of gold mining claims in Canada and will continue to look into acquiring claims in Canada and the Philippines as opportunities arise.

 

We had a net loss of $244,512 for the year ended December 31, 2011. As of December 31, 2011, we had cash and total assets of $635,175 and total liabilities of $1,073,834. Our working capital and stockholders’ deficit was $438,659.

 

Results of Operations

 

We had no revenues in 2011 or 2010.

 

10
 

 

PART II

 

ITEM 7. FINANCIAL STATEMENTS.

 

Asia Properties, Inc.

 

Consolidated Financial Statements

 

Contents

 

    Page
     
Reports of Independent Registered Public Accounting Firm   F-1
 
Balance Sheets   F-3
 
Statements of Operations   F-4
 
Statements of Stockholders’ Equity   F-5
 
Statements of Cash Flows   F-6
 
Notes to the Financial Statements   F-7

 

11
 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

Board of Directors and Stockholders

Asia Properties, Inc.

(A Development Stage Company)

 

We have audited the accompanying consolidated balance sheets of Asia Properties, Inc., a development stage company, as of December 31, 2011, and the related consolidated statements of comprehensive income, stockholders’ equity, and cash flows for the year then ended. These financial statements are the responsibility of the entity’s management. Our responsibility is to express an opinion on these financial statements based on our audits. The financial statements of Asia Properties, Inc. as of December 31, 2010, were audited by other auditors whose report dated March 31, 2011, expressed an unqualified opinion on those statements.

 

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

 

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Asia Properties, Inc. as of December 31, 2011, and the results of its operations and its cash flows for the year then-ended, in conformity with accounting principles generally accepted in the United States of America.

 

The accompanying financial statements have been prepared assuming that the entity will continue as a going concern. As discussed in Note 1 to the financial statements, the entity has suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 1. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

/s/ MJF & ASSOCIATES, APC  
   
Los Angeles, California, United States of America  
June 3, 2013  

 

F-1
 

 

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

 

To the Board of Directors

Asia Properties, Inc.

(A Development Stage Company)

Bellingham, Washington

 

We have audited the accompanying consolidated balance sheets of Asia Properties, Inc. (the “Company”) as of December 31, 2010 and the related consolidated statements of operations, changes in stockholders’ deficit and cash flows for the year ended December 31, 2010. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. The accompanying consolidated balance sheets of the Company as of December 31, 2009 and the related consolidated statements of operations, changes in stockholders’ deficit and cash flows for the year ended December 31, 2009 are only for comparison.

 

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

 

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2010, and the results of its operations and its cash flows for the year ended December 31, 2010 in conformity with U.S. generally accepted accounting principles. Also, in our opinion, the related financial statement schedule, when consolidated in relation to the basic consolidated financial statements taken as a whole, presents fairly, in all material respects, the information set forth therein.

 

The accompanying consolidated financial statements for the year ended December 31, 2010, have been prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the company’s recurring losses from operations, stockholders; deficit and inability to generate sufficient cash flow to meet its obligations and sustain its operations raise substantial doubt about its ability to continue as a going concern. Management’s plans concerning these matters are also discussed in Note 2 to the consolidated financial statements. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

Your truly,

 

/s/ PARKER RANDALL CF  
PARKER RANDALL CF (H.K.) CPA LIMITED  
Certified Public Accountants  
Hong Kong  
March 31, 2011  

 

F-2
 

 

Asia Properties, Inc.

(A Development Stage Company)

CONSOLIDATED BALANCE SHEETS

FOR THE YEAR ENDED DECEMBER 31, 2011 AND 2010

(Stated in US Dollars)

 

       2011   2010 
   Note   US$   US$ 
Assets            
             
Current            
Cash and cash equivalents        10,175    342 
Total current assets        10,175    342 
                
Investments in mining claims        625,000    - 
                
Total assets        635,175    342 
                
Liabilities and stockholders’ equity               
                
Current liabilities               
Other payables and accrued liabilities        139,135    25,441 
Short term loans        41,791    59,263 
Amount due to related party   5    845,036    618,906 
Total current liabilities        1,025,962    703,610 
                
Long term liabilities               
Long term loan        47,872    47,879 
                
Stockholders’ equity (deficit)   8           
Common Stock, $0.001 par value, 200,000,000 shares (38,421,362 and 35,721,362 common shares issued and outstanding at December 31, 2011 and
2010)
       12,148    9,448 
Additional paid - in capital        3,119,780    2,565,480 
Donated capital        345,000    345,000 
Deficit accumulated during the development stage        (3,915,587)   (3,671,075)
Total stockholders’ equity (deficit)        (438,659)   (751,147)
                
Total liabilities and stockholders’ equity        635,175    342 


See accompanying notes to the financial statements.

 

F-3
 


Asia Properties, Inc.

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010

AND FROM INCEPTION ON APRIL 6, 1998 THROUGH DECEMBER 31, 2011

(Stated in US Dollars)

 

       For the year ended   Cumulative Total Since 
       December 31,   Inception 
       2011   2010     
    Note    US$    US$    US$ 
                     
Revenue        -    -    (46,432)
                     
Operating expenses                    
General and administrative expenses        87,908    68,259    1,831,988 
Commission expenses        42,000    -    42,000 
Management fees        60,000    60,000    1,223,614 
Professional fees        6,000    6,000    789,469 
Consulting fees        48,604    45,000    183,761 
Total operating expenses        244,512    179,259    4,070,832 
                     
Loss from operations        (244,512)   (179,259)   (4,117,264)
                     
Interest income        -    -    3,294 
                     
Gain on disposal of subsidiary        -    -    27,120 
Gain on settlement of debt        -    -    178,307 
Income taxes recovered   6    -    -    595 
Write-down of property and equipment        -    -    (7,639)
                     
Net Comprehensive loss        (244,512)   (179,259)   (3,915,587)
                     
Weighted average number of shares:                    
Basic and diluted        38,421,362    35,721,362      
                     
Net loss per share – Basic and diluted        (0.01)   (0.01)     

 

See accompanying notes to the financial statements.

 

F-4
 

 

Asia Properties, Inc.

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF STOCKHOLDERS EQUITY

FROM DECEMBER 31, 2004 THROUGH DECEMBER 31, 2011

 

           Additional             
   Common Stock   Paid in   Donated         
   Number of   Amount   Capital   Capital   Deficit   Total 
   shares   $   $   $   $   $ 
                         
Balance December 31, 2004
   7,519,028    7519    1,729,509    270,000    (2,064,981)   (57,953)
Issued for services at $0.26 per share   40,000    40    10,360    -    -    10,400 
Issued for services at $0.50 per share   50,000    50    24,950    -    -    25,000 
Issued for properties at $0.50 per share   600,000    600    299,400    -    -    300,000 
Issued for properties at $1.45 per share   45,000    45    159,955    -    -    160,000 
Issued for properties at $2.55 per share   350,000    350    899,650    -    -    900,000 
Issued for cash at $0.50 per share   1,050,000    1,050    523,950    -    -    525,000 
Finders fee paid   -    -    (25,000)        -    (25,000)
Donated capital   -    -    -    60,000    -    60,000 
Net loss for the year   -    -    -    -    (247,792)   (247,792)
                               
Balance, December 31, 2005   9,654,028    9,654    3,622,774    330,000    (2,312,773)   1,649,655 
                               
Option exercised for cash at $1.00 per share   40,000    40    39,960    -    -    40,000 
Issued for cash at $1.00   105,000    105    104,895    -    -    105,000 
Donated capital   -    -    -    15,000    -    15,000 
Net loss for the year   -    -    -    -    (252,278)   (252,278)
                               
Balance December 31, 2006   9,799,028    9,799    3,767,629    345,000    (2,565,051)   1,557,377 
                               
Issued for cash at $1.00   55,000    55    54,945    -    -    55,000 
Finders fee paid   2,750    3    2,747    -    -    2,750 
4 for 1 split on 16 April   29,570,334    -    -    -    -    - 
Shares cancelled on 24 October 2007   (312,000)   -    -    -    -    - 
Net loss for the year   -    -    -    -    (298,260)   (298,260)
                               
Balance December 31, 2007   39,115,112    9,857    3,825,321    345,000    (2,863,311)   1,316,867 
                               
Issued for cash at $0.20   225,000    225    44,775    -    -    45,000 
Finders fee paid   11,250    11    2,239    -    -    2,250 
Cancelled due to unsuccessful transfer of property rights   (3,940,000)   (985)   (1,323,460)   -    -    (1,324,445)
Net loss for the year   -    -    -    -    (513,977)   (513,977)
                               
Balance December 31, 2008   35,411,362    9,108    2,548,875    345,000    (3,377,288)   (474,305)
                               
Cancelled due to unsuccessful transfer of property rights   (40,000)   (10)   (35,545)   -    -    (35,555)
Net loss for the year   -    -    -    -    (114,528)   (114,528)
                               
Balance December 31, 2009   35,371,362    9,098    2,513,330    345,000    (3,491,816)   (624,388)
                               
Issued for services   350,000    350    52,150    -    -    52,500 
Net comprehensive loss for the year   -    -    -    -    (179,259)   (179,259)
                               
Balance December 31, 2010   35,721,362    9,448    2,565,480    345,000    (3,671,075)   (751,147)
                               
Issued for properties at $0.05 per share   500,000    500    24,500    -    -    25,000 
Issued for properties at $0.245 per share   2,000,000    2,000    488,000    -    -    490,000 
Issued for commission at $0.21 per share   200,000    200    41,800    -    -    42,000 
Net comprehensive loss for the year   -    -    -    -    (244,512)   (244,512)
                               
Balance December 31, 2011   38,421,362    12,148    3,119,780    345,000    (3,915,587)   (438,659)

 

See accompanying notes to the unaudited consolidated financial statements

 

F-5
 

 

ASIA PROPERTIES, INC.

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF CASH FLOW

FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010

AND FROM INCEPTION ON APRIL 6, 1998 THROUGH DECEMBER 31, 2011

(Stated in US Dollars)

 

   For the year ended 31 December,   Cumulative total  
   2011   2010   since inception 
    US$    US$    US$ 
Cash flows used in operating activities               
Net loss   (244,512)   (179,259)   (3,915,587)
Adjustments to reconcile net loss to net cash used in operating activities               
Amortized property rights   -    -    97,310 
Cancellation of shares issued for property rights   -    -    (1,360,000)
Deferred assets amortized   -    -    12,507 
Depreciation   -    -    12,599 
Donated management services   -    -    345,000 
Gain on settlement of debt   -    -    (178,307)
Gain on disposal of subsidiary   -    -      
Investments in mining claims acquired   (625,000)   -    (652,000)
Investment written off   -    -    20,000 
Property rights written off   -    -    1,637,900 
Shares issued for investments acquired   2,500         2,500 
Shares issued for services received   200    350    756,826 
Additional paid-in-capital realized on shares issued   554,300    52,150    606,450 
Write down of investment to NRV   -    -    37,400 
Write down of property and equipment   -    -    7639 
Changes in operating assets and liabilities               
 
Increase/ (decrease) in short term loans
   (17,472)   (16,637)   30,192 
Increase/ (decrease) in due to related parties   226,130    132,484    1,039,579 
Increase in payables and accruals   113,694    7,635    472,050 
Net cash used in operating activities   9,840    (3,277)   (1,027,942)
                
Cash flow used in investing activities               
Property rights acquired for resale   -    -    (375,209)
Increase in deferred assets   -    -    (12,507)
Purchase of property and equipment   -    -    (20,238)
Purchase of securities   -    -    (20,000)

 

F-6
 

 

ASIA PROPERTIES, INC.

(A Development Stage Company)

CONSOLIDATED STATEMENTS OF CASH FLOW (Continued)

FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010

AND FROM INCEPTION ON APRIL 6, 1998 THROUGH DECEMBER 31, 2011

(Stated in US Dollars)

 

   For the year ended 31 December,   Cumulative total 
   2011   2010   since inception 
    US$    US$    US$ 
Cash flow used in investing activities (Continued)               
Purchase of investment   -    -      
Net cash used in investment activities   -    -    (427,954)
                
Cash flows from financing activities               
Issuance of stock   -    -    1,406,600 
Payments made on long term loan   (7)   (9)   59,471.00 
Advances from related party   -    -      
Net cash used in financing activities   (7)   (9)   1,466,071 
                
Net increase/ (decrease) in cash   9,833    (3,286)   10,175 
Cash, beginning of year   342    3,628    - 
Cash, end of year   10,175    342    10,175 
                
Cash paid for interest   10,292    12,929    54,665 

 

See accompanying notes to the financial statements.

 

F-7
 

 

Asia Properties, Inc.

Notes to the Consolidated Financial Statements

December 31, 2011 and 2010

 

1. Summary of Significant Accounting Policies

 

Method of Accounting

 

The Company maintains its general ledger and journals using the accrual method accounting for financial reporting purposes. The consolidated financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America (“US GAAP”) and have been consistently applied in the presentation of financial statements, which are compiled using the accrual basis of accounting.

 

Principles of consolidation

 

The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter – company balances and transactions have been eliminated on consolidation.

 

Use of Estimates

 

In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.

 

Concentration of Credit Risk

 

Financial instruments that may subject the Company to concentrations of credit risks consist primarily of cash and cash equivalents. The Company’s cash and cash equivalents are held in safekeeping by certain large creditworthy financial institutions.

 

Cash and Cash Equivalents

 

The Company considers all highly liquid investments purchases with original maturities of three months or loss to be cash equivalents. At December 31, 2011 and 2010, the company had $10,175 and $342 in cash equivalents respectively.

 

Loss Per Share

 

Basis loss per stock is calculated by dividing net loss by weighted – average number of common stocks outstanding during the year, and does not include the impact of any potentially dilutive common stock equivalents. Potential common stocks are not included in included in the computation of loss per stock, if their effect is anti – dilutive

 

Financial Instruments

 

The carrying values of the Company’s financial instruments, including cash and cash equivalents, short term loans, amount due to related party and, other payables and accrued liabilities approximate their fair values due to the short-term maturity of such instruments.

 

It is management’s opinion that the Company is not exposed to significant interest, price or credit risks arising from these financial instruments.

 

2. Organization, Development Stage and Going Concern

 

Asia Properties, Inc. was incorporated in Nevada, the United States of America on April 6, 1998.

 

The management intends to acquire and develop mining resources around the world.

 

Two claim areas have been acquired in Canada and geological exploration activities have begun, but the Company has not generated revenues to date.

 

The Company had a net loss of $244,512 for the year ended December 31, 2011, an accumulated deficit of $3,915,587 and working capital and stockholders’ deficits of $438,659 at December 31, 2011.

 

The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and to continue to raise funds through debt or equity raises. The financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.

 

The Company did not have any hedging activities during the reporting period

 

F-8
 

 

Asia Properties, Inc.

Notes to the Consolidated Financial Statements

December 31, 2011 and 2010

 

Recent Accounting Pronouncements (continued)

 

In May 2011, the FASB issued updated accounting guidance related to fair value measurements and disclosures that result in common fair value measurements and disclosures between U.S. GAAP and International Financial Reporting Standards. This guidance includes amendments that clarify the application of existing fair value measurement requirements, in addition to other amendments that change principles or requirements for measuring fair value and for disclosing information about fair value measurements.

 

In June 2011, the FASB issued new accounting guidance related to the presentation of comprehensive income that eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity. The amendments require 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.

 

None of the above new pronouncements has current application to the Group, but may be applicable to the Company’s future financial reporting. Lastly, new pronouncements issued but not effective until after December 31, 2012, are not expected to have a material impact on our financial position, results of operations or liquidity.

 

3. Property Rights

 

During 2011, the Company has acquired several gold mining claims in Canada and is looking to acquire more claims in Canada and the USA.

 

4. Related Party Transactions

 

a) In 2011 and 2010, the Company accrued salary of $60,000 per year to the Chief Executive Officer

 

b) As of December 31, 2011 and 2010, the Company owed its CEO $845,036 and $618,906 as expense reimbursements and unpaid salary.

 

F-9
 

 

Asia Properties, Inc.

Notes to the Consolidated Financial Statements

December 31, 2011 and 2010

 

5. Income Taxes

 

The Company computes deferred tax assets arising from net operating loss carry forwards. These deferred tax assets are reduced by a valuation allowance to the extent that it is deemed more likely than not that these assets will not be realized through future taxable income. As of December 31, 2011, any available deferred tax asset arising from the Company’s net operating loss carry forwards has been eliminated by a full valuation allowance. At December 31, 2011, the Company had a net operating loss carry-forward of approximately $3,600,000 expiring ranging from 2017 through 2028. The resulting deferred tax asset is fully reserved. The loss carry forwards are subject to certain limitations under the Internal Revenue Code including Section 382.

 

6. Common Stock

 

The following table summarizes common stock issuances and retirements as of December 31, 2011:

 

   Number of Shares   Common Stock Amount 
           
Balance as of December 31, 2008   39,411,362   $9,108 
Shares cancelled   (40,000)   (10)
           
Balance as of December 31, 2009   35,371,362   $9,098 
Shares issued for services   350,000    350 
           
Balance as of December 31, 2010   35,721,362   $9,448 
Shares issued for properties acquired   2,500,000    2,500 
Shares issued for services   200,000    200 
           
Balance as of December 31, 2011   38,421,362   $12,148 

 

a)On October 6, 2011 the Company issued 200,000 shares for commission on services rendered.

 

b)On July 18 and August 30, 2011 the Company issued 500,000 and 2,000,000 common shares with an estimated fair value of $515,000 as consideration for mining claims acquired in Canada.

 

c)On April 10, 2010 the Company issued 350,000 shares for services rendered.

 

d)On December 31, 2009 the Company cancelled the remaining 40,000 shares issued in 2005 for the Thailand land purchase as a result of the non-delivery of title.

 

e)On December 31, 2008 as a result of non-delivery of good title, the Company cancelled 3,940,000 shares issued in 2005 for the Thailand land purchase.

 

f) On June 12, 2008 the Company sold 125,000 common shares for cash proceeds of $25,000 and issued 6,250 common shares as a finders fees.

 

g)On March 5, 2008 the Company sold 100,000 common shares for cash proceeds of $20,000 and issued 5,000 common shares as finders fees.

 

h)On October 24, 2007 the Company cancelled 312,000 shares.

 

i)On April 16, 2007 the authorized capital of the Company was increased by means of a 4 for 1 share split from 50,000,000 common shares with a par value of $0.001 each to 200,000,000 shares

 

j)On April 16, 2007 the Company paid a stock dividend of three common shares for every common share issued and outstanding.

 

k)On March 10, 2007 the Company sold 25,000 common shares for cash proceeds of $20,000 and issued 2,750 common shares as finders fees.

 

l)On March 2, 2007 the Company sold 30,000 common shares for cash proceeds of $30,000.

 

m)Between July and September of 2005, the Company issued 995,000 common shares with an estimated fair value of $1,360,000 to purchase 57 plots of land in Baan Naiyang, Phuket, Thailand.

 

n)Between April and June 2005 the Company issued 10,000 and 30,000 common shares with an estimated fair value of $2,600 and $7,800 as fees to a consultant and a director respectively.

 

8. Commitments and contingencies

 

For the year ended December 31, 2011 the Company is committed to pay $100,000 as consideration for the acquisition of mining claims in Canada.

 

9. Subsequent Events

 

The Company signed a Memorandum of Understanding “MOU” on April 4, 2013 with Wonderland Limited, which has a contract to provide mining services for the Siu Kiu Mine Peru. The term of the MOU is for 90 days and both parties are now conducting due diligence.

 

F-10
 

 

ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.

 

Parker Randall CF (H.K.) CPA Limited was appointed our independent accountants in April 2010. On June 26, 2011, MJF & Associates APC, was appointed as our independent accountants in replacement of the predecessor accountant, Parker Randall CF (H.K.).

 

ITEM 8A. CONTROLS AND PROCEDURES

 

The Company maintains disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended) that are designed to ensure that information required to be disclosed by the Company in reports it files or submits under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to the Company’s management, including the Company’s Chief Executive Officer/Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. As of the end of the period covered by this report, and under the supervision and with the participation of management, including its Chief Executive Officer/Chief Financial Officer, who is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act, such persons conducted an evaluation of the effectiveness of the design and operation of these disclosure controls and procedures.

 

Based on this evaluation and subject to the foregoing, the Company’s Chief Executive Officer/Chief Financial Officer concluded that these controls are not effective because there is a material weakness in our internal controls over financial reporting. A material weakness is a deficiency, or a combination of control deficiencies, in internal control over reporting such that there is a reasonable possibility that that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.

 

The material weakness identified is that all of the Company’s accounting functions, including the preparation of audit and financial statements are carried out and reviewed by our Chief Executive Officer/Chief Financial Officer. The Company does not have a separate audit committee at this time. The lack of accounting staff results in a lack of segregation of duties and technical accounting experience necessary for an effective internal control system.

 

The Company recognizes the importance of internal controls. As the Company is currently a development stage company with limited ongoing financial operations, in an effort to mitigate this material weakness to the fullest extent possible, at present the Chief Executive Officer reviews the Company’s financial information and reports for reasonableness. All unexpected results are investigated. At any time, if it appears that any control can be implemented to continue to mitigate such weakness, it will be immediately implemented. As the Company grows in size and as its finances allow, management will hire sufficient accounting staff and implement appropriate procedures for monitoring and review of work performed by our financial consultant.

 

Management’s Annual Report on Internal Control over Financial Reporting

 

Section 404 of the Sarbanes-Oxley Act of 2002 requires that management document and test the Company’s internal control over financial reporting and include in this Annual Report on Form 10-KSB a report on management’s assessment of the effectiveness of our internal control over financial reporting.

 

Our management is responsible for establishing and maintaining adequate internal control over financial reporting; as such term is defined in Rule 13a-15(f) of the Securities Exchange Act of 1934, as amended. Under the supervision and with the participation of our management, including our Chief Executive Officer/Chief Financial Officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based upon the framework in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). Based on that evaluation, our management certifies that this report is complete, that this report complies with all relevant regulatory requirements, and that our internal control over financial reporting is not effective, as of December 31, 2011.

 

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

 

Changes in Internal Controls

 

During the year ended December 31, 2011, there have not been any changes in the Company’s internal controls that have materially affected or are reasonably likely to materially affect, the Company’s internal control over financial reporting. However, please note the discussion above.

 

ITEM 8B. OTHER INFORMATION

 

None

 

12
 

 

PART III

 

ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS; COMPLIANCE WITH SECTION 16(a) OF THE EXCHANGE ACT.

 

Each of our directors serves until his successor is elected and qualified. Each of our officers is elected by the board of directors to a term of one (1) year and serves until his successor is duly elected and qualified, or until he is removed from office. The board of directors has no nominating, auditing or compensation committees.

 

The names, addresses, ages and positions of our present officers and directors is as follows:

 

Name and Address   Age   Position Held
         

Daniel McKinney
Two Exchange Square, 8/fl
8 Connaught Place, Central, Hong Kong

  52   President and Chief Executive Officer
         

Geoff Armstrong
27/93 Sokolovska, Prague 18600
Czech Republic

  70   Secretary, and member of the board of directors
         

Dennis Burns
INVest Train PO Box 362, Tiffin, OH 44883

  50   Investor relations

 

The persons named above are have held their offices for the last 12 months and are expected to continue until the next annual meeting of our stockholders.

 

Background of Officers and Directors

 

Daniel McKinney

President and Chief Executive Officer

 

Mr. McKinney founded the Company in April 1998.

 

From 1981 to 1999, Mr. McKinney established McKinney International, a Hong Kong based company engaged in cutting gemstones and supplying world markets.

 

From 1982 to 1984, he founded the Hong Kong Gem & Jewelry show.

 

From 1984 to 1987, he established Wynmere Ltd., Thailand, a direct selling jewelry company with its manufacturing in Bangkok and gemstone sourcing in Hong Kong.

 

In 1989, he established Coldway Ltd., an investment banking firm.

 

In 1994, founded Cement Services, Ltd., a construction company, based in Bangkok.

 

From 1999 to 2001, served as a board member of Sunflower (USA) Ltd., a public company with a large industrial facility in China manufacturing copper pipes.

 

From 2004 to 2006, served as a director of Savoy Resources Corp, a publicly traded mining company. Director and CEO of Sino Bioenergy Corp from 2006 to now.

 

Mr. McKinney studied in the Hong Kong International School and read Chemistry and Biology at Houston Baptist University.

 

He speaks Cantonese, Thai, and some Portuguese.

 

Geoff Armstrong

Secretary and Director

 

Geoff Armstrong has been our secretary since March 2003.

 

Gilbert Loke

Chief Financial Officer

 

Mr Loke, appointed to his position in 2010, has substantial accounting and business experience in Malaysia, HongKong and China. Mr. Loke resigned on 28 March 2012.

 

Conflicts of Interest

 

There are no potential conflicts of interest.

 

13
 

 

ITEM 9. (continued)

 

Involvement in Certain Legal Proceedings

 

Other than as described in this section, to our knowledge, during the past five years, no present or former director or executive officer of our company:

 

1)filed a petition under the federal bankruptcy laws or any state insolvency law, nor had a receiver, fiscal agent or similar officer appointed by a court for the business or present of such a person, or any partnership in which he was a general partner at or within two years before the time of such filing, or any corporation or business association of which he was an executive officer within two years before the time of such filing;
   
2)was convicted in a criminal proceeding or named subject of a pending criminal proceeding (excluding traffic violations and other minor offenses);
   
3)was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from or otherwise limiting the following activities:
   
(i)acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, associated person of any of the foregoing, or as an investment advisor, underwriter, broker or dealer in securities, or as an affiliated person, director of any investment company, or engaging in or continuing any conduct or practice in connection with such activity;
   
(ii)engaging in any type of business practice;
   
(iii)engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of federal or state securities laws or federal commodity laws;
   
4)was the subject of any order, judgment or decree, not subsequently reversed, suspended or vacated, of any federal or state authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described above under this Item, or to be associated with persons engaged in any such activity;
   
5)was found by a court of competent jurisdiction in a civil action or by the Securities and Exchange Commission to have violated any federal or state securities law and the judgment in subsequently reversed, suspended or vacate;
   
6)was found by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed, suspended or vacated.

 

Audit Committee and Charter

 

We do not have a separately designated audit committee of the board. Audit committee functions are performed by our board of directors, all of whom are deemed independent as they do not hold positions as officers of our Company. Our audit committee is responsible for:

 

(1)Selection and oversight of our independent accountant;
   
(2)Establishing procedures for the receipt, retention and treatment of complaints regarding accounting, internal controls and auditing matters;
   
(3)Establishing procedures for the confidential, anonymous submission by our employees of concerns regarding accounting and auditing matters;
   
(4)Engaging outside advisors; and,
   
(5)Funding for the outside auditory and any outside advisors engagement by the audit committee.

 

Audit Committee Financial Expert

 

None of our directors or officers have the qualifications or experience to be considered a financial expert. We believe the cost related to retaining a financial expert at this time is prohibitive. Further, because of our limited operations, we believe the services of a financial expert are not warranted.

 

Section 16(a) of the Securities Exchange Act of 1934

 

As of the date of this report, we are not subject to section 16(a) of the Securities Exchange Act of 1934.

 

14
 

 

ITEM 10. EXECUTIVE COMPENSATION

 

The following table sets forth the compensation paid by us for the last three fiscal years ending December 31 for each of our officers. This information includes the dollar value of base salaries, bonus awards and number of stock options granted, and certain other compensation, if any. The compensation discussed addresses all compensation awarded to, earned by, or paid or named executive officers.

 

Executive Officer Compensation Table
                                     
                       Non-Equity   Nonqualified         
Name                      Incentive   Deferred   All     
And              Stock   Option   Plan   Compensation   Other     
Principal      Salary   Bonus   Awards   Awards   Compensation   Earnings   Compensation   Total 
Position  Year   (US$)   (US$)   (US$)   (US$)   (US$)   (US$)   (US$)   (US$) 
(a)  (b)   (c)   (d)   (e)   (f)   (g)   (h)   (i)   (j) 
Daniel McKinney   2011    60,000    0    0    0    0    0    0    60,000 
President & Chief Executive Officer   2010    60,000    0    0    0    0    0    0    60,000 
                                              
Geoff Armstrong   2011    0    0    0    0    0    0    0    0 
Secretary   2010    0    0    45,000    0    0    0    0    45,000 
                                              
Gilbert Loke   2011    0    0    0    0    0    0    0    0 
Chief Financial Officer   2010    0    0    0    0    0    0    0    0 

 

Compensation of Directors

 

There are no contractual arrangements with any member of the board of directors. They have no director’s service contracts and are not compensated for their services as directors. On September 30, 1998, Asia Properties, Inc. authorized a stock option plan known as the “Asia Properties, Inc. Stock Option Plan”. Awards are not restricted to any specified form or structure and may include, without limitation, sales or Stock and Derivative securities. The aggregate number of shares of stock which may be purchased pursuant to the plan is 1,000,000 shares. No award holder has any rights as a stockholder prior to the date of issuance to him of a certificate or certificates for such shares. The Board may amend, suspend or discontinue the plan anytime. The plan is intended to comply with Rule 16b-3 promulgated by the Securities and Exchange Commission under the exchange Act and is subject to all applicable federal and state laws, rules and regulations and to approvals by relevant government or regulatory agencies. There were no stock options issued and outstanding as of December 31, 2011.

 

Director’s Compensation Table
 
       Fees               Nonqualified         
       Earned or           Non-Equity   Deferred         
       Paid in   Stock   Option   Incentive Plan   Compensation   All Other     
       Cash   Awards   Awards   Compensation   Earnings   Compensation   Total 
Name  Year   (US$)   (US$)   (US$)   (US$)   (US$)   (US$)   (US$) 
(a)  (b)   (c)   (d)   (e)   (f)   (g)   (h)   (i) 
Daniel McKinney   2011    60,000    0    0    0    0    0    60,000 
    2010    60,000    0    0    0    0    0    60,000 
                                         
Geoff Armstrong   2011    0    0    0    0    0    0    45,000 
    2010    0    0    0    0    0    0    0 

 

Indemnification

 

Under our Articles of Incorporation and Bylaws of the corporation, we may indemnify an officer or director who is made a party to any proceeding, including a lawsuit, because of his position, if he acted in good faith and in a manner he reasonably believed to be in our best interest. We may advance expenses incurred in defending a proceeding. To the extent that the officer or director is successful on the merits in a proceeding as to which he is to be indemnified, we must indemnify him against all expenses incurred, including attorney’s fees. With respect to a derivative action, indemnity may be made only for expenses actually and reasonably incurred in defending the proceeding, and if the officer or director is judged liable, only by a court order. The indemnification is intended to be to the fullest extent permitted by the laws of the State of Nevada. Regarding indemnification for liabilities arising under the Securities Act of 1933, which may be permitted to directors or officers under Nevada law, we are informed that, in the opinion of the Securities and Exchange Commission, indemnification is against public policy, as expressed in the Act and is, therefore, unenforceable.

 

15
 

 

ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

 

The following table sets forth, as of the date of this report, the total number of shares owned beneficially by each of our directors, officers and key employees, individually and as a group, and the present owners of 5% or more of our total outstanding shares. The table also reflects what their ownership will be assuming completion of the sale of all shares in our public offering. The stockholder listed below has direct ownership of his shares and possesses sole voting and dispositive power with respect to the shares.

 

   As of December 31, 2011 
Name and Address of Beneficial Owner  Shares(1)   Percent 
         
Named Executive Officers and Directors          
           
Daniel Mckinney
Two Exchange Square, 8/fl
8 Connaught Place, Central, Hong Kong
   72,000    0.2%
           
Geoffrey Armstrong
27/93 Sokolovska, Prague 18600
Czech Republic
   540,000    1.4%
           
Directors and Executive Officers as a Group (Two Persons)   612,000    1.6%
           
Beneficial Owners of in Excess of 5% (other than Named Executive Officers and Directors)          
           
Cede & Co
55 Water Street FRNT 3
NY10041
   13,194,765    34.5%
           
Indian Ocean Management Limited
Cyber Tower, Ebene Reduit
Mauritius
   3,200,000    8.4%
           

Mastermind Group Limited
9374 Sc 7th Avenue Road
Ocala, FL 34480, USA

   2,750,000    7.2%
           
TD Ameritrade, Inc
Cage 1005 North Ameritrade Place
Belleview, NE 68005
   1,917,000    5.0%
           
CS Harborne
c/o Dieterich and Associates
11835 W Olympic Boulevard, Suite 1235E
Los Angeles, CA 90064
   3,409,984    8.9%
           
Lim Ah Swee
TWO IFC, 39th floor, 8 Finance Street
Hong Kong
   2,800,000    7.3%
           
Wong Kin Wang
c/o 188 Connaught Road 18/fl, Central
Hongkong
   2,400,000    6.3%

 

[1] The persons named above may be deemed to be a “parent” and “promoter” of our company, within the meaning of such terms under the Securities Act of 1933, as amended, by virtue of his/its direct and indirect stock holdings.

 

Changes in Control

 

There are no arrangements or known persons who may result in a change of control of Asia Properties, Inc.

 

ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, and DIRECTOR INDEPENDENCE

 

During the year ended December 31, 2011, the Company accrued a total of $60,000 as salary to the Company’s CEO. As of December 31, 2011, the Company owed the CEO $845,036 as expense reimbursements and unpaid salary.

 

16
 

 

ITEM 13. PRINCIPAL ACCOUNTING FEES AND SERVICES

 

(1) Audit Fees

 

The aggregate fees for each of the last two years for professional services rendered by the principal accountant for our audits of annual financial statements and reviews of financial statements included in our Form 10-KSB and Form 10-QSBs or services that are normally provided by the accountant in connection with statutory and regulatory filings or engagements for those years was:

 

2011  $5,000   JTC MJF & Associates, APC
2010  $6,000   JTC Parker Randall CF (H.K.) CPA Limited

 

(2) Audit-Related Fees

 

The aggregate fees for each of the last two years for assurance and related services rendered by the principal accountants that are reasonably related to the performance of the audits or reviews of our financial statements and are not reported in the preceding paragraph:

 

2011  $0   MJFMJF & Associates, APC
2010  $0   Parker Randall CF (H.K.) CPA Limited

 

(3) Tax Fees

 

The aggregate fees for each of the last two years for professional services rendered by the principal accountant for tax compliance, tax advice, and tax planning was:

 

2011  $0   Parker Randall CF (H.K.) CPA Limited
2010  $0   Parker Randall CF (H.K.) CPA Limited

 

(4) All Other Fees

 

The aggregate fees for each of the last two years for the products and services provided by the principal accountant, other than the services reported in paragraphs (1), (2), and (3) was:

 

2011  $0   Parker Randall CF (H.K.) CPA Limited
2010  $0   Parker Randall CF (H.K.) CPA Limited

 

(5) The percentage of hours expended on the principal accountant’s engagement to audit our financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full time, permanent employees was 0%.

 

17
 

 

PART IV

 

ITEM 14. EXHIBITS, FINANCIAL STATEMENTS, SCHEDULES and Reports on form 8-K

 

No reports on Form 8-K have been filed

 

Exhibit No.   Document Description
     
3.1   Articles of Incorporation(1)
     
3.2   Bylaws(1)
     
4.1   Specimen Stock Certificate(1)
     
31.1   Certification of Principal Executive Officer pursuant to Rule 13a-15(e) and 15d-15(e), promulgated under the Securities and Exchange Act of 1934, as amended.
     
31.2   Certification of Principal Financial Officer pursuant to Rule 13a-15(e) and 15d-15(e), promulgated under the Securities and Exchange Act of 1934, as amended.
     
32.1   Certification 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.DEF*   XBRL Taxonomy Extension Definition Linkbase Document
     
101.LAB*   XBRL Taxonomy Extension Label Linkbase Document
     
101.PRE*   XBRL Taxonomy Extension Presentation Linkbase Document

 

(1) Incorporated by reference. Filed pursuant to Form 10-SB Registration Statement filed November 26, 2004.

 

* Filed Herewith.

 

18
 

 

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.

 

ASIA PROPERTIES, INC.

 

By: /s/ Daniel McKinney  
  Daniel McKinney  
  President and Chief Executive Officer  

 

Date: 19 June 2013

 

19
 

 

EX-31.1 2 ex31-1.htm CERTIFICATION

 

Exhibit 31.1

 

CERTIFICATION

 

I, Danile McKinney, certify that;

 

(1) I have reviewed this Report on Form 10-K for the year ended December 31, 2011 of Asia Properties, Inc.;

 

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

 

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

 

(4) The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

 

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(c) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

(5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

 

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

 

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

 

Date: 19 June 2013

 

/s/ Daniel McKinney  
Daniel McKinney  
President and Chief Executive Officer  
(Principal Executive Officer)  

 

 

 

EX-31.2 3 ex31-2.htm CERTIFICATION

 

Exhibit 31.2

 

CERTIFICATION

 

I, Daniel McKinney, the President and Chief Executive Officer of Asia Properties, Inc., certify that;

 

(1) I have reviewed this report on Form 10-K for the year ended December 31, 2011 of Asia Properties, Inc.;

 

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

 

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

 

(4) The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the registrant and have:

 

(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

(b) evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

(c) disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

(5) The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of the internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

 

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

 

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

 

Date: 19 June 2013

 

/s/ Daniel McKinney  
Daniel McKinney  
President and Chief Executive Officer  
(Principal Accounting Officer)  

 

 

 

EX-32.1 4 ex32-1.htm CERTIFICATION

 

Exhibit 32.1

 

CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER

 

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

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

The undersigned, Daniel McKinney, the President and Chief Executive Officer of Asia Properties, Inc. hereby certifies, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to his knowledge, the Annual Report on Form 10-K of Asia Properties, Inc., for the year ended December 31, 2011, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that the information contained in the Annual Report on Form 10-KSB/A (Amendment No. 1) fairly presents in all material respects the financial condition and results of operations of Asia Properties, Inc.

 

Date: 19 June 2013

 

/s/ Daniel McKinney  
Daniel McKinney  
President and Chief Executive Officer  
(Principal Executive, Financial and Accounting Officer)  

 

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appear in typed form within the electronic version of this written statement required by Section 906, has been provided to Asia Properties, Inc. and will be retained by Asia Properties, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

 

 

 

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Consolidated Statements of Comprehensive Income (USD $)
12 Months Ended 165 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2011
Income Statement [Abstract]      
Revenue       $ (46,432)
Operating expenses      
General and administrative expenses 87,908 68,259 1,831,988
Commission expenses 42,000    42,000
Management fees 60,000 60,000 1,223,614
Professional fees 6,000 6,000 789,469
Consulting 48,604 45,000 183,761
Total operating expenses 244,512 179,259 4,070,832
Loss from operations (244,512) (179,259) (4,117,264)
Interest income       3,294
Gain on disposal of subsidiary       27,120
Gain on settlement of debt       178,307
Income taxes recovered       595
Write-down of property and equipment       (7,639)
Net Comprehensive loss $ (244,512) $ (179,259) $ (3,915,587)
Weighted average number of shares:      
Basic and diluted 38,421,362 35,721,362  
Net loss per share - Basic and diluted $ (0.01) $ (0.01)  
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Property Rights
12 Months Ended
Dec. 31, 2011
Property Rights  
Property Rights

3. Property Rights

 

During 2011, the Company has acquired several gold mining claims in Canada and is looking to acquire more claims in Canada and the USA.

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Consolidated Statements of Shareholders Equity (Parenthetical) (USD $)
12 Months Ended
Dec. 31, 2011
Dec. 31, 2008
Dec. 31, 2007
Dec. 31, 2006
Dec. 31, 2005
Statement of Stockholders' Equity [Abstract]          
Common stock issued for services, price per share         $ 0.26
Common stock issued for services, price per share         $ 0.50
Common stock issued for properties, price per share $ 0.05       $ 0.50
Common stock issued for properties, price per share $ 0.245       $ 1.45
Common stock issued for properties, price per share         $ 2.55
Common stock issued for commission, price per share $ 0.21        
Common stock issued for cash, price per share   $ 0.20 $ 1.00 $ 1.00 $ 0.50
Option exercised for cash, price per share       $ 1.00  
XML 16 R8.htm IDEA: XBRL DOCUMENT v2.4.0.6
Summary of Significant Accounting Policies
12 Months Ended
Dec. 31, 2011
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

1. Summary of Significant Accounting Policies

 

Method of Accounting

 

The Company maintains its general ledger and journals using the accrual method accounting for financial reporting purposes. The consolidated financial statements and notes are representations of management. Accounting policies adopted by the Company conform to generally accepted accounting principles in the United States of America (“US GAAP”) and have been consistently applied in the presentation of financial statements, which are compiled using the accrual basis of accounting.

 

Principles of consolidation

 

The consolidated financial statements include the financial statements of the Company and its subsidiaries. All significant inter – company balances and transactions have been eliminated on consolidation.

 

Use of Estimates

 

In preparing financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates.

 

Concentration of Credit Risk

 

Financial instruments that may subject the Company to concentrations of credit risks consist primarily of cash and cash equivalents. The Company’s cash and cash equivalents are held in safekeeping by certain large creditworthy financial institutions.

 

Cash and Cash Equivalents

 

The Company considers all highly liquid investments purchases with original maturities of three months or loss to be cash equivalents. At December 31, 2011 and 2010, the company had $10,175 and $342 in cash equivalents respectively.

 

Loss Per Share

 

Basis loss per stock is calculated by dividing net loss by weighted – average number of common stocks outstanding during the year, and does not include the impact of any potentially dilutive common stock equivalents. Potential common stocks are not included in included in the computation of loss per stock, if their effect is anti – dilutive

 

Financial Instruments

 

The carrying values of the Company’s financial instruments, including cash and cash equivalents, short term loans, amount due to related party and, other payables and accrued liabilities approximate their fair values due to the short-term maturity of such instruments.

 

It is management’s opinion that the Company is not exposed to significant interest, price or credit risks arising from these financial instruments.

XML 17 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
Related Party Transactions
12 Months Ended
Dec. 31, 2011
Related Party Transactions [Abstract]  
Related Party Transactions

4. Related Party Transactions

 

a) In 2011 and 2010, the Company accrued salary of $60,000 per year to the Chief Executive Officer

 

b) As of December 31, 2011 and 2010, the Company owed its CEO $845,036 and $618,906 as expense reimbursements and unpaid salary.

XML 18 R9.htm IDEA: XBRL DOCUMENT v2.4.0.6
Organization, Development Stage and Going Concern
12 Months Ended
Dec. 31, 2011
Organization Development Stage And Going Concern  
Organization, Development Stage and Going Concern

2. Organization, Development Stage and Going Concern

 

Asia Properties, Inc. was incorporated in Nevada, the United States of America on April 6, 1998.

 

The management intends to acquire and develop mining resources around the world.

 

Two claim areas have been acquired in Canada and geological exploration activities have begun, but the Company has not generated revenues to date.

 

The Company had a net loss of $244,512 for the year ended December 31, 2011, an accumulated deficit of $3,915,587 and working capital and stockholders’ deficits of $438,659 at December 31, 2011.

 

The ability of the Company to continue as a going concern is dependent upon the Company’s ability to further implement its business plan and to continue to raise funds through debt or equity raises. The financial statements do not include any adjustments relating to the recovery of the recorded assets or the classification of the liabilities that might be necessary should the Company be unable to continue as a going concern.

 

The Company did not have any hedging activities during the reporting period

  

In May 2011, the FASB issued updated accounting guidance related to fair value measurements and disclosures that result in common fair value measurements and disclosures between U.S. GAAP and International Financial Reporting Standards. This guidance includes amendments that clarify the application of existing fair value measurement requirements, in addition to other amendments that change principles or requirements for measuring fair value and for disclosing information about fair value measurements.

 

In June 2011, the FASB issued new accounting guidance related to the presentation of comprehensive income that eliminates the option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity. The amendments require 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.

 

None of the above new pronouncements has current application to the Group, but may be applicable to the Company’s future financial reporting. Lastly, new pronouncements issued but not effective until after December 31, 2012, are not expected to have a material impact on our financial position, results of operations or liquidity.

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Consolidated Balance Sheets (Parenthetical) (USD $)
Dec. 31, 2011
Dec. 31, 2010
Statement of Financial Position [Abstract]    
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 200,000,000 200,000,000
Common stock, shares issued 38,421,362 35,721,362
Common stock, shares outstanding 38,421,362 35,721,362
XML 22 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Commitments and Contingencies
12 Months Ended
Dec. 31, 2011
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

8. Commitments and contingencies

 

For the year ended December 31, 2011 the Company is committed to pay $100,000 as consideration for the acquisition of mining claims in Canada.

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Consolidated Statements of Shareholders Equity (USD $)
Common Stock [Member]
Additional Paid-In Capital [Member]
Donated Capital [Member]
Deficit [Member]
Total
Balance at Dec. 31, 2004 $ 7,519 $ 1,729,509 $ 270,000 $ (2,064,981) $ (57,953)
Balance, shares at Dec. 31, 2004 7,519,028        
Issued for services 40 10,360     10,400
Issued for services, shares 40,000        
Issued for services 50 24,950     25,000
Issued for services, shares 50,000        
Issued for properties 600 299,400     300,000
Issued for properties, shares 600,000        
Issued for properties 45 159,955     160,000
Issued for properties, shares 45,000        
Issued for properties 350 899,650     900,000
Issued for properties, shares 350,000        
Issued for cash 1,050 523,950     525,000
Issued for cash, shares 1,050,000        
Finders fee paid   (25,000)     (25,000)
Donated capital     60,000   60,000
Net comprehensive loss for the year       (247,792) (247,792)
Balance at Dec. 31, 2005 9,654 3,622,774 330,000 (2,312,773) 1,649,655
Balance, shares at Dec. 31, 2005 9,654,028        
Option exercised for cash at $1.00 per share 40 39,960     40,000
Option exercised for cash at $1.00 per share, shares 40,000        
Issued for cash 105 104,895     105,000
Issued for cash, shares 105,000        
Donated capital     15,000   15,000
Net comprehensive loss for the year       (252,278) (252,278)
Balance at Dec. 31, 2006 9,799 3,767,629 345,000 (2,565,051) 1,557,377
Balance, shares at Dec. 31, 2006 9,799,028        
Issued for cash 55 54,945     55,000
Issued for cash, shares 55,000        
Finders fee paid 3 2,747     2,750
Finders fee paid, shares 2,750        
4 for 1 split on 16 April, shares 29,570,334        
Shares cancelled on 24 October 2007 (312,000)        
Net comprehensive loss for the year       (298,260) (298,260)
Balance at Dec. 31, 2007 9,857 3,825,321 345,000 (2,863,311) 1,316,867
Balance, shares at Dec. 31, 2007 39,115,112        
Issued for cash 225 44,775     45,000
Issued for cash, shares 225,000        
Finders fee paid 11 2,239     2,250
Finders fee paid, shares 11,250        
Cancelled due to unsuccessful transfer of property rights (985) (1,323,460)     (1,324,445)
Cancelled due to unsuccessful transfer of property rights, shares (3,940,000)        
Net comprehensive loss for the year       (513,977) (513,977)
Balance at Dec. 31, 2008 9,108 2,548,875 345,000 (3,377,288) (474,305)
Balance, shares at Dec. 31, 2008 35,411,362        
Cancelled due to unsuccessful transfer of property rights (10) (35,545)     (35,555)
Cancelled due to unsuccessful transfer of property rights, shares (40,000)        
Net comprehensive loss for the year       (114,528) (114,528)
Balance at Dec. 31, 2009 9,098 2,513,330 345,000 (3,491,816) (624,388)
Balance, shares at Dec. 31, 2009 35,371,362        
Issued for services 350 52,150     52,500
Issued for services, shares 350,000        
Net comprehensive loss for the year       (179,259) (179,259)
Balance at Dec. 31, 2010 9,448 2,565,480 345,000 (3,671,075) (751,147)
Balance, shares at Dec. 31, 2010 35,721,362        
Issued for properties 500 24,500     25,000
Issued for properties, shares 500,000        
Issued for properties 2,000 488,000     490,000
Issued for properties, shares 2,000,000        
Issued for commission 200 41,800     42,000
Issued for commission, shares 200,000        
Net comprehensive loss for the year       (244,512) (244,512)
Balance at Dec. 31, 2011 $ 12,148 $ 3,119,780 $ 345,000 $ (3,915,587) $ (438,659)
Balance, shares at Dec. 31, 2011 38,421,362        
XML 24 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
Consolidated Balance Sheets (USD $)
Dec. 31, 2011
Dec. 31, 2010
Current    
Cash and cash equivalents $ 10,175 $ 342
Total current assets 10,175 342
Investments in mining claims 625,000   
Total Assets 635,175 342
Current liabilities    
Other payables and accrued liabilities 139,135 25,441
Short term bank loans 41,791 59,263
Amount due to related party 845,036 618,906
Total Current Liabilities 1,025,962 703,610
Long term liabilities    
Long term loan 47,872 47,879
Stockholders' Equity (Deficit)    
Common Stock, $0.001 par value, 200,000,000 shares (38,421,362 and 35,721,362 common shares issued and outstanding at December 31, 2011 and 2010) 12,148 9,448
Additional paid-in capital 3,119,780 2,565,480
Donated capital 345,000 345,000
Deficit accumulated during the development stage (3,915,587) (3,671,075)
Total stockholders' equity (deficit) (438,659) (751,147)
Total liabilities and stockholders' equity $ 635,175 $ 342
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Common Stock
12 Months Ended
Dec. 31, 2011
Equity [Abstract]  
Common Stock

6. Common Stock

 

The following table summarizes common stock issuances and retirements as of December 31, 2011:

 

    Number of Shares     Common Stock Amount  
                 
Balance as of December 31, 2008     39,411,362     $ 9,108  
Shares cancelled     (40,000 )     (10 )
                 
Balance as of December 31, 2009     35,371,362     $ 9,098  
Shares issued for services     350,000       350  
                 
Balance as of December 31, 2010     35,721,362     $ 9,448  
Shares issued for properties acquired     2,500,000       2,500  
Shares issued for services     200,000       200  
                 
Balance as of December 31, 2011     38,421,362     $ 12,148  

 

  a) On October 6, 2011 the Company issued 200,000 shares for commission on services rendered.

 

  b) On July 18 and August 30, 2011 the Company issued 500,000 and 2,000,000 common shares with an estimated fair value of $515,000 as consideration for mining claims acquired in Canada.

 

  c) On April 10, 2010 the Company issued 350,000 shares for services rendered.

 

  d) On December 31, 2009 the Company cancelled the remaining 40,000 shares issued in 2005 for the Thailand land purchase as a result of the non-delivery of title.

 

  e) On December 31, 2008 as a result of non-delivery of good title, the Company cancelled 3,940,000 shares issued in 2005 for the Thailand land purchase.

 

  f) On June 12, 2008 the Company sold 125,000 common shares for cash proceeds of $25,000 and issued 6,250 common shares as a finders fees.

 

  g) On March 5, 2008 the Company sold 100,000 common shares for cash proceeds of $20,000 and issued 5,000 common shares as finders fees.

 

  h) On October 24, 2007 the Company cancelled 312,000 shares.

 

  i) On April 16, 2007 the authorized capital of the Company was increased by means of a 4 for 1 share split from 50,000,000 common shares with a par value of $0.001 each to 200,000,000 shares

 

  j) On April 16, 2007 the Company paid a stock dividend of three common shares for every common share issued and outstanding.

 

  k) On March 10, 2007 the Company sold 25,000 common shares for cash proceeds of $20,000 and issued 2,750 common shares as finders fees.

 

  l) On March 2, 2007 the Company sold 30,000 common shares for cash proceeds of $30,000.

 

  m) Between July and September of 2005, the Company issued 995,000 common shares with an estimated fair value of $1,360,000 to purchase 57 plots of land in Baan Naiyang, Phuket, Thailand.

 

  n) Between April and June 2005 the Company issued 10,000 and 30,000 common shares with an estimated fair value of $2,600 and $7,800 as fees to a consultant and a director respectively.

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Income Taxes
12 Months Ended
Dec. 31, 2011
Income Tax Disclosure [Abstract]  
Income Taxes

5. Income Taxes

 

The Company computes deferred tax assets arising from net operating loss carry forwards. These deferred tax assets are reduced by a valuation allowance to the extent that it is deemed more likely than not that these assets will not be realized through future taxable income. As of December 31, 2011, any available deferred tax asset arising from the Company’s net operating loss carry forwards has been eliminated by a full valuation allowance. At December 31, 2011, the Company had a net operating loss carry-forward of approximately $3,600,000 expiring ranging from 2017 through 2028. The resulting deferred tax asset is fully reserved. The loss carry forwards are subject to certain limitations under the Internal Revenue Code including Section 382.

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Consolidated Statements of Cash Flow (USD $)
12 Months Ended 165 Months Ended
Dec. 31, 2011
Dec. 31, 2010
Dec. 31, 2011
Cash flows used in operating activities      
Net loss $ (244,512) $ (179,259) $ (3,915,587)
Adjustments to reconcile net loss to net cash used in operating activities      
Amortized property rights       97,310
Cancellation of shares issued for property rights       (1,360,000)
Deferred assets amortized       12,507
Depreciation       12,599
Donated management services       345,000
Gain on settlement of debt       (178,307)
Gain on disposal of subsidiary       (27,120)
Investments in mining claims acquired (625,000)    (652,000)
Investment written off       20,000
Property rights written off       1,637,900
Shares issued for investments acquired 2,500   2,500
Shares issued for services rendered 200 350 756,826
Additional paid-in-capital realized on shares issued 554,300 52,150 606,450
Write down of investment to NRV       37,400
Write down of property and equipment       7,639
Changes in operating assets and liabilities      
Increase/ (decrease) in short term loans (17,472) (16,637) 30,192
Increase/ (decrease) in due to related parties 226,130 132,484 1,039,579
Increase in payables and accruals 113,694 7,635 472,050
Net cash used in operating activities 9,840 (3,277) (1,027,942)
Cash flow used in investing activities      
Property rights acquired for resale       (375,209)
Increase in deferred assets       (12,507)
Purchase of property and equipment       (20,238)
Purchase of securities       (20,000)
Purchase of investment        
Net cash used in investment activities       (427,954)
Cash flows from financing activities      
Issuance of stock       1,406,600
Payments made on long term loan (7) (9) 59,471
Advances from related party        
Net cash provided by financing activities (7) (9) 1,466,071
Net increase/ (decrease) in cash 9,833 (3,286) 10,175
Cash, beginning of year 342 3,628   
Cash, end of year 10,175 342 10,175
Cash paid for interest $ 10,292 $ 12,929 $ 54,665
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Subsequent Events
12 Months Ended
Dec. 31, 2011
Subsequent Events [Abstract]  
Subsequent Events

9. Subsequent Events

 

The Company signed a Memorandum of Understanding “MOU” on April 4, 2013 with Wonderland Limited, which has a contract to provide mining services for the Siu Kiu Mine Peru. The term of the MOU is for 90 days and both parties are now conducting due diligence.

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Document and Entity Information (USD $)
12 Months Ended
Dec. 31, 2011
Document And Entity Information  
Entity Registrant Name ASIA PROPERTIES INC
Entity Central Index Key 0001070789
Document Type 10-K
Document Period End Date Dec. 31, 2011
Amendment Flag false
Current Fiscal Year End Date --12-31
Is Entity a Well-known Seasoned Issuer? No
Is Entity a Voluntary Filer? No
Is Entity's Reporting Status Current? No
Entity Filer Category Smaller Reporting Company
Entity Public Float $ 3,457,922
Entity Common Stock, Shares Outstanding 38,421,362
Document Fiscal Period Focus FY
Document Fiscal Year Focus 2011