0001072588-12-000150.txt : 20121017 0001072588-12-000150.hdr.sgml : 20121017 20121017144213 ACCESSION NUMBER: 0001072588-12-000150 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 9 CONFORMED PERIOD OF REPORT: 20120930 FILED AS OF DATE: 20121017 DATE AS OF CHANGE: 20121017 FILER: COMPANY DATA: COMPANY CONFORMED NAME: GOLDEN DRAGON HOLDING CO. CENTRAL INDEX KEY: 0001081938 STANDARD INDUSTRIAL CLASSIFICATION: BLANK CHECKS [6770] IRS NUMBER: 274635140 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-27055 FILM NUMBER: 121148199 BUSINESS ADDRESS: STREET 1: 2460 W. 26TH AVENUE, SUITE 380-C CITY: DENVER STATE: CO ZIP: 80211 BUSINESS PHONE: 303-380-8280 MAIL ADDRESS: STREET 1: 2460 W. 26TH AVENUE, SUITE 380-C CITY: DENVER STATE: CO ZIP: 80211 FORMER COMPANY: FORMER CONFORMED NAME: CCVG, INC. DATE OF NAME CHANGE: 20101117 FORMER COMPANY: FORMER CONFORMED NAME: CONCORD VENTURES, INC. DATE OF NAME CHANGE: 20071003 FORMER COMPANY: FORMER CONFORMED NAME: CAVION TECHNOLOGIES INC DATE OF NAME CHANGE: 19990423 10-Q 1 GDHC10Q93012.txt UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10Q (Mark One) [ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2012 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from __________ to ___________ Commission file number: 000-27055 GOLDEN DRAGON HOLDING CO. (Exact name of registrant as specified in its charter) DELAWARE 24-4635140 (State of Incorporation) (IRS Employer ID Number) 2460 WEST 26TH AVENUE, SUITE 380-C, DENVER, COLORADO 80211 (Address of principal executive offices) 303-704-4623 (Registrant's Telephone number) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days. Yes [X] No [ ] Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (ss.232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [ ] No [ ] Indicate by check mark whether the registrant is a large accelerated file, 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 [ ] (Do not check if a smaller reporting company) Smaller reporting company [X] Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [X] No [ ] Indicate the number of share outstanding of each of the issuer's classes of common stock, as of the latest practicable date. As of October 31, 2012, there were 2,384,407 shares of the registrant's common stock, $0.0001 par value, issued and outstanding. GOLDEN DRAGON HOLDING CO. INDEX PART I - FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Page ---- Balance Sheets As of September 30, 2012 (Unaudited) and December 31, 2011 (Audited) 3 Statements of Operations For the Three and Nine Month Periods Ended September 30, 2012 and 2011 and the Period from Inception (January 1, 2011) Through September 30, 2012 4 Statements of Cash Flows For the Nine Month Periods Ended September 30, 2012 and 2011 and the Period from Inception (January 1, 2011) Through September 30, 2012 5 Notes to Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 13 Item 3. Quantitative and Qualitative Disclosures About Market Risk 21 Item 4. Controls and Procedures 21 PART II - OTHER INFORMATION Item 1. Legal Proceedings 21 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21 Item 3. Defaults Upon Senior Securities 21 Item 4. Mine Safety Disclosures 22 Item 5. Other Information 22 Item 6. Exhibits 22 SIGNATURES 23 PART I ITEM 1. FINANCIAL STATEMENTS
GOLDEN DRAGON HOLDING CO. (A DEVELOPMENT STAGE CO.) BALANCE SHEETS SEPTEMBER 30, DECEMBER 31, 2012 2011 --------------- ----------------- (Unaudited) (Audited) ASSETS CURRENT ASSETS Cash and Cash Equivalents $ 25 $ 25 --------------- ----------------- Total Current Assets 25 25 --------------- ----------------- TOTAL ASSETS $ 25 $ 25 =============== ================= LIABILITIES & STOCKHOLDERS' (DEFICIT) CURRENT LIABILITIES Accounts Payable $ 42,407 $ 24,857 Accrued Expenses - Related Party 8,533 2,700 Related Party Loan 125,837 72,029 --------------- ----------------- Total Current Liabilities 176,777 99,586 --------------- ----------------- COMMITMENTS AND CONTINGENCIES (Note. 7) STOCKHOLDERS' DEFICIT Preferred Stock; $0.0001 par value, 10,000,000 shares authorized - - no shares issued and outstanding Class A Common Stock; $0.0001 par value, 100,000,000, 239 239 shares authorized as at September 30, 2012 and December 31, 2011, 2,384,407 shares issued and outstanding as at September 30, 2012 and December 31, 2011 Additional Paid In Capital 16,874,642 16,874,642 Accumulated Deficit (including $(176,851) and $ (99,661) respectively during the development stage) (17,051,633) (16,974,442) --------------- ----------------- Total Stockholders' (Deficit) (176,752) (99,561) --------------- ----------------- TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) $ 25 $ 25 =============== ================= See Accompanying Notes to Financial Statements. 3
GOLDEN DRAGON HOLDING CO. (A DEVELOPMENT STAGE CO.) STATEMENTS OF OPERATIONS (UNAUDITED) FROM INCEPTION OF DEVELOPMENT STAGE FOR THE THREE MONTHS FOR THE NINE MONTHS (JANUARY 1, 2011) ENDED ENDED THROUGH SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30, 2012 2011 2012 2011 2012 ----------- ----------- ----------- ----------- ---------- OPERATING EXPENSES General & Administrative Expenses 20,972 25,807 71,358 76,491 168,460 ----------- ----------- ----------- ----------- ---------- Total Operating Expenses 20,972 25,807 71,358 76,491 168,460 ----------- ----------- ----------- ----------- ---------- OPERATING LOSS (20,972) (25,807) (71,358) (76,491) (168,460) Interest and Other Income / (Expenses) Net (2,318) (749) (5,833) (1,314) (8,391) ----------- ----------- ----------- ----------- ---------- Loss before Income Taxes (23,290) (26,556) (77,191) (77,805) (176,851) Provision for Income Taxes - - - - - ----------- ----------- ----------- ----------- ---------- NET LOSS $ (23,290)$ (26,556)$ (77,191)$ (77,805) $ (176,851) =========== =========== =========== =========== ========== NET LOSS PER COMMON SHARE Basic & Diluted ($0.01) ($0.01) ($0.03) ($0.03) =========== =========== =========== =========== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic & Diluted 2,384,407 2,384,407 2,384,407 2,384,407 =========== =========== =========== =========== See accompanying Notes to Financial Statements. 4
GOLDEN DRAGON HOLDING CO. (A DEVELOPMENT STAGE CO.) STATEMENTS OF CASH FLOWS (UNAUDITED) FROM INCEPTION OF DEVELOPMENT STAGE (JANUARY 1, 2011) FOR THE NINE MONTHS ENDED THROUGH SEPTEMBER 30, SPEPTEMBER 30, 2012 2011 2012 ----------- ------------ ---------- CASH FLOW PROVIDED BY / (USED IN) OPERATING ACTIVITIES NET PROFIT / (LOSS) (77,191) $ (77,805) $ (176,851) ADJUSTMENTS TO RECONCILE NET PROFIT / (LOSS) TO NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES Compensatory loan increases 45,000 45,000 105,000 CHANGES IN OPERATING ASSETS & LIABILITIES Increase / (decrease) in Accounts Payable 17,551 19,766 42,407 Increase / (decrease) in Accrued Expenses - Related Party 5,833 1,456 8,533 ----------- ------------ ---------- Total Cash Flow provided by / (used in) Operating Activities (8,807) (11,583) (20,911) ----------- ------------ ---------- CASH FLOW FROM INVESTING ACTIVITIES - - - ----------- ------------ ---------- Total Cash Flow provided by / (used in) Investing Activities - - - ----------- ------------ ---------- CASH FLOW FROM FINANCING ACTIVITIES Increase in Related Party Loan 8,807 11,488 20,836 ----------- ------------ ---------- Total Cash Flow provided by / (used in) Financing Activities 8,807 11,488 20,836 ----------- ------------ ---------- INCREASE / (DECREASE) IN CASH & CASH EQUIVALENTS - $ (95) $ (75) $ =========== ============ ========== Cash and Cash Equivalents at the beginning of the period 25 $ 100 $ 100 $ =========== ============ ========== Cash and Cash Equivalents at the end of the period 25 $ 5 $ 25 $ =========== ============ ========== NON-CASH INVESTING AND FINANCING ACTIVITIES Related party loans 45,000 $ 45,000 $ 90,000 $ ----------- ------------ ---------- SUPPLEMENTAL SCHEDULE OF CASH FLOW INFORMATION Cash paid for interest - $ - $ - $ =========== ============ ========== Cash paid for income tax - $ - $ - $ =========== ============ ========== See Accompanying Notes to Financial Statements. 5
GOLDEN DRAGON HOLDING CO. A DEVELOPMENT STAGE COMPANY NOTES TO FINANCIAL STATEMENTS JUNE 30, 2012 (UNAUDITED) 1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES: Nature of Operations Business Golden Dragon Holding Co. ("Golden Dragon," "We" or "Us") is a publicly quoted shell company seeking to create value for our shareholders by merging with another entity with experienced management and opportunities for growth in return for shares of our common stock. No potential merger candidate has been identified at this time. We are a development stage enterprise in accordance with Accounting Codification Standard (ACS) 915 "Development Stage Entities." We have been in the development stage since Inception (January 1, 2011). History Golden Dragon was incorporated in the State of Delaware in April 2010 as a wholly owned subsidiary of Concord Ventures, Inc. ("Concord"). Concord was a publicly quoted shell company with no assets, no operating business or other source of income and liabilities in excess of $590,000. Merger of Concord In order for Concord to re-domicile in the State of Delaware from the State of Colorado, on September 29, 2010, Concord entered into an Agreement and Plan of Merger ("the Merger Agreement") with one of its wholly owned subsidiary companies, CCVG, Inc. ("CCVG"). Under the terms of the Merger Agreement, Concord shares of common stock converted automatically to CCVG shares, without change or necessity to reissue. Also under the Merger Agreement, CCVG became the surviving company domiciled in Delaware. Reorganization into a Holding Company Structure Effective December 31, 2010, pursuant to the Delaware Holding Company formation statute, under Delaware General Corporate Law (DGCL) Section 251(g), CCVG completed an Agreement and Plan of Merger and Reorganization into a Holding Company ("the Reorganization") with CCAPS, Inc. ("CCAPS") and Golden Dragon, both wholly-owned subsidiaries of CCVG. The Reorganization provided for the merger of CCVG with and into CCAPS, with CCAPS being the surviving corporation in that merger. Contemporaneously with CCVG's merger with and into CCAPS, the shareholders of CCVG were converted into shareholders of Golden Dragon on a one share for one share basis. 6 As a result of this reorganization into a Holding Company structure, Golden Dragon became the surviving publicly quoted parent holding company with CCAPS, the surviving corporation of the merger between CCVG and CCAPS, becoming the sole remaining wholly-owned subsidiary of Golden Dragon. The Reorganization has been accounted for so as to reflect the fact that both CCVG and Golden Dragon were under common control at the date of the Reorganization, similar to a reverse acquisition of CCVG and its subsidiary company, CCAPS, by Golden Dragon. Sale of CCAPS On December 31, 2010, Golden Dragon entered into a Share Purchase Agreement with an unrelated third party. Under the terms of the Share Purchase Agreement, Golden Dragon sold 100% of the issued and outstanding shares of its sole remaining wholly owned subsidiary, CCAPS for $100 cash consideration, subject to its debts, and issued 25,000 restricted shares of Golden Dragon common stock, valued at $1,000, to CCAPS pursuant to the terms of the Share Purchase Agreement. At the time of the sale, CCAPS had no ongoing operations or assets and outstanding liabilities of approximately $678,000. Following the merger of CCVG with and into CCAPS, CCAPS, as the surviving corporation in that merger, retained all outstanding liabilities of CCVG in the divestiture. As a result of the sale of 100% of the issued and outstanding shares of CCAPS, Golden Dragon, the surviving publicly quoted holding company, will no longer consolidate the liabilities of CCAPS or CCVG. Basis of Presentation: The accompanying unaudited financial statements of Golden Dragon have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three and nine months ended September 30, 2012 are not necessarily indicative of the results that may be expected for the year ended December 31, 2012. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2011 included in our Form 10-K filed with the SEC. 7 Significant Accounting Policies: Development Stage Company - We are a development stage enterprise in accordance with ACS 915 "Development Stage Entities." We have been in the development stage since Inception (January 1, 2011). Among the disclosures required as a development stage company are that our financial statements are identified as those of a development stage company, and that the statements of operations, stockholders' deficit and cash flows disclose activity since the date of our Inception (January 1, 2011) as a development stage company. Use of Estimates -- The preparation of our consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. Due to uncertainties inherent in the estimation process, it is possible that these estimates could be materially revised within the next year. Cash and Cash Equivalents -- Cash and cash equivalents consist of cash and highly liquid debt instruments with original maturities of less than three months. Property and Equipment -- We owned no property and equipment during the three and nine month periods ended September 30, 2012 or 2011 and consequently we recorded no depreciation expense during the three and nine month periods ended September 30, 2012 or 2011. Deferred Costs and Other -- Offering costs with respect to issue of common stock, warrants or options by us were initially deferred and ultimately offset against the proceeds from these equity transactions if successful or expensed if the proposed equity transaction is unsuccessful. We had no deferred costs and other as at September 30, 2012 or 2011. Impairment of Long-Lived and Intangible Assets -- In the event that facts and circumstances indicated that the cost of long-lived and intangible assets may be impaired, an evaluation of recoverability was performed. If an evaluation was required, the estimated future undiscounted cash flows associated with the asset were compared to the asset's carrying amount to determine if a write-down to market value or discounted cash flow value was required. Financial Instruments -- The estimated fair values for financial instruments was determined at discrete points in time based on relevant market information. These estimates involved uncertainties and could not be determined with precision. The carrying amounts of notes receivable, accounts receivable, accounts payable and accrued liabilities approximated fair value because of the short-term maturities of these instruments. The fair value of notes payable approximated to their carrying value as generally their interest rates reflected our effective annual borrowing rate. Income Taxes -- We account for income taxes under the liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. 8 Advertising costs -- Advertising costs are expensed as incurred. No advertising costs were incurred during the three and nine month periods ended September 30, 2012 or 2011. Comprehensive Income (Loss) -- Comprehensive income is defined as all changes in stockholders' equity (deficit), exclusive of transactions with owners, such as capital investments. Comprehensive income includes net income or loss, changes in certain assets and liabilities that are reported directly in equity such as translation adjustments on investments in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. From our inception there were no differences between our comprehensive loss and net loss. Our comprehensive loss was identical to our net loss for the three and nine month periods ended September 30, 2012 or 2011. Income (Loss) Per Share -- Income (loss) per share is presented in accordance with Accounting Standards Update ("ASU"), Earning Per Share (Topic 260) which requires the presentation of both basic and diluted earnings per share ("EPS") on the consolidated income statements. Basic EPS would exclude any dilutive effects of options, warrants and convertible securities but does include the restricted shares of common stock issued. Diluted EPS would reflect the potential dilution that would occur if securities of other contracts to issue common stock were exercised or converted to common stock. Basic EPS calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted EPS calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. Basic and diluted EPS were identical for the three and nine month periods ended September 30, 2012 and 2011 as we had no stock options or warrants outstanding during those periods. Stock-Based Compensation -- We have adopted ASC Topic 718, "Accounting for Stock-Based Compensation," which establishes a fair value method of accounting for stock-based compensation plans. In accordance with guidance now incorporated in ASC Topic 718, the cost of stock options and warrants issued to employees and non-employees is measured on the grant date based on the fair value. The fair value is determined using the Black-Scholes option pricing model. The resulting amount is charged to expense on the straight-line basis over the period in which we expect to receive the benefit, which is generally the vesting period. The fair value of stock warrants was determined at the date of grant using the Black-Scholes option pricing model. The Black-Scholes option model requires management to make various estimates and assumptions, including expected term, expected volatility, risk-free rate, and dividend yield. No stock based compensation was issued or outstanding during the three and nine month periods ending September 30, 2012 or 2011. Business Segments -- We believe that our activities during the three and nine month periods ended September 30, 2012 and 2011 comprised a single segment. Recently Issued Accounting Pronouncements-- We have reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on our financial condition or the results of our operations. 9 2. GOING CONCERN AND LIQUIDITY: At September 30, 2012, we had cash of $25, no other assets, no operating business or other source of income, outstanding liabilities totaling $176,777 and a stockholders' deficit of $176,752. In our financial statements for the fiscal years ended December 31, 2011 and 2010, the Report of the Independent Registered Public Accounting Firm includes an explanatory paragraph that describes substantial doubt about our ability to continue as a going concern. Our unaudited financial statements for the three and nine month periods ended September 30, 2012 and 2011 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. We had a working capital deficit of $176,752 and reported an accumulated deficit since Inception (January 1, 2011) of $176,851 as at September 30, 2012. It is our current intention to seek to raise debt and, or, equity financing to fund our ongoing operating expenses and attempt to create value for our shareholders by merging with another entity with experienced management and opportunities for growth in return for shares of our common stock. There is no assurance that this series of events will be satisfactorily completed. 3. ASSETS As at September 30, 2012 and December 31, 2011, our sole asset was Cash and Cash Equivalents of $25. 4. ACCOUNTS PAYABLE As at September 30, 2012, the balance of accounts payable represents legal and accounting fees payable. 5. ACCRUED EXPENSES As at September 30, 2012, the balance of accrued expenses represents interest payable on our related party loan (See Note 6.). 6. RELATED PARTY LOAN As at September 30, 2011, the related party loan represents a loan made to us by Mr. David J. Cutler, our sole officer, a director and majority shareholder. The loan is repayable on demand and as at September 30, 2012, the principal balance owed was $125,837 with accrued interest of $8,533. Interest is accrued on the loan at 8%. 10 7. COMMITMENTS: Capital and Operating Leases We had no capital or operating leases outstanding as at September 30, 2012. Litigation No legal proceedings are currently pending or threatened to the best of our knowledge. 8. RELATED PARTY TRANSACTIONS As at September 30, 2012, we owed Mr. Cutler, our sole officer, a director and majority shareholder, a principal balance of $125,837 with accrued interest of $8,533. During the nine months ended September 30, 2012, we accrued $45,000 (2011 - $45,000) of Mr. Cutler's remuneration as payable to Burlingham Corporate Finance, Inc. ("Burlingham") in the form of consulting fees. Mr. Cutler is the principal shareholder of Burlingham. 9. STOCKHOLDERS' DEFICIT: Preferred Stock We were authorized, without further action by the shareholders, to issue 10,000,000 shares of one or more series of preferred stock at a par value of $0.0001, all of which is nonvoting. The Board of Directors may, without shareholder approval, determine the dividend rates, redemption prices, preferences on liquidation or dissolution, conversion rights, voting rights and any other preferences. No shares of preferred stock were issued or outstanding during the three and nine month periods ended September 30, 2012 and 2011. Common Stock We were authorized to issue 100,000,000 shares of common stock, par value $0.0001 per share. On April 29, 2008, we held our annual meeting of stockholders at which meeting the majority of stockholders approved, an up to 3 for 1 reverse split of our shares of common stock. No such reverse split has been effected as yet. Recent Issuances No shares of our common stock were issued in the three and nine month periods ended September 30, 2012 or 2011. Warrants No warrants were issued or outstanding during the three and nine month periods ended September 30, 2012 or 2011. 11 Stock Options Effective March 19, 1999, we adopted a stock option plan (the "Plan"). The Plan provides for grants of incentive stock options, nonqualified stock options and restricted stock to designated employees, officers, directors, advisors and independent contractors. The Plan authorized the issuance of up to 75,000 shares of Class A Common Stock. Under the Plan, the exercise price per share of a non-qualified stock option must be equal to at least 50% of the fair market value of the common stock at the grant date, and the exercise price per share of an incentive stock option must equal the fair market value of the common stock at the grant date. No stock options were issued or outstanding during the three and nine month periods ended September 30, 2012 or 2011. 10. INCOME TAXES We have had losses since our Inception (January 1, 2011), and therefore have not been subject to federal or state income taxes since our Inception. Following our reorganization into a holding company structure and the sales of our subsidiary company, CCAPS, we disposed of the majority of our brought forward net operating losses ("NOLS.") Consequently, effective September 30, 2012, we had NOLS of approximately $177,000, which expire in 2031 and 2032. 11. SUBSEQUENT EVENTS We have evaluated subsequent events through October 31, 2012. Other than those set out above, there have been no subsequent events after September 30, 2012 for which disclosure is required. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with the consolidated financial statements and notes thereto and the other financial information included elsewhere in this report. This discussion contains forward-looking statements that involve risks and uncertainties. We believe that our expectations are based on reasonable assumptions within the bounds of our knowledge of our business and operations: there can be no assurance that actual results will not differ materially from our expectations. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated, including but not limited to, our ability to raise debt and, or, equity to fund our ongoing operating expenses and to create value for our shareholders by merging with another entity with experienced management and opportunities for growth in return for shares of our common stock. You are urged to carefully consider these factors, as well as other information contained in this Annual Report on Form 10-K and in our other periodic reports and documents filed with the SEC. 12 OVERVIEW Golden Dragon Holding Co. ("Golden Dragon") is a publicly quoted shell company seeking to create value for our shareholders by merging with another entity with experienced management and opportunities for growth in return for shares of our common stock. No such potential merger candidate has been identified at that time of this filing. History Golden Dragon was incorporated in the State of Delaware in April 2010 as a wholly owned subsidiary of Concord Ventures, Inc. ("Concord"). Concord was a publicly quoted shell company with no assets, no operating business or other source of income and liabilities in excess of $590,000. Merger of Concord In order for Concord to re-domicile in the state of Delaware from the state of Colorado, on September 29, 2010, Concord entered into an Agreement and Plan of Merger ("the Merger Agreement") with one of its wholly owned subsidiary companies, CCVG, Inc. ("CCVG"). Under the terms of the Merger Agreement, Concord shares of common stock converted automatically to CCVG shares, without change or necessity to reissue. Also under the Merger Agreement, CCVG became the surviving company domiciled in Delaware. Reorganization into a Holding Company Structure Effective December 31, 2010, pursuant to the Delaware Holding Company formation statute, under Delaware General Corporate Law (DGCL) Section 251(g), CCVG completed an Agreement and Plan of Merger and Reorganization into a Holding Company ("the Reorganization") with CCAPS, Inc. ("CCAPS") and Golden Dragon, both wholly-owned subsidiaries of CCVG. The Reorganization provided for the merger of CCVG with and into CCAPS, with CCAPS being the surviving corporation in that merger. Contemporaneously with CCVG's merger with and into CCAPS, the shareholders of CCVG were converted into shareholders of Golden Dragon on a one share for one share basis. As a result of this reorganization into a Holding Company structure, Golden Dragon became the surviving publicly quoted parent holding company with CCAPS, the surviving corporation of the merger between CCVG and CCAPS, becoming the sole remaining wholly-owned subsidiary of Golden Dragon. The Reorganization has been accounted for so as to reflect the fact that both CCVG and Golden Dragon were under common control at the date of the Reorganization, similar to a reverse acquisition of CCVG and its subsidiary company, CCAPS, by Golden Dragon. 13 Sale of CCAPS On December 31, 2010, Golden Dragon entered into a Share Purchase Agreement with an unrelated third party. Under the terms of the Share Purchase Agreement, Golden Dragon sold 100% of the issued and outstanding shares of its sole remaining wholly owned subsidiary, CCAPS for $100 cash consideration, subject to its debts, and issued 25,000 restricted shares of Golden Dragon common stock, valued at $1,000, to CCAPS pursuant to the terms of the Share Purchase Agreement. At the time of the sale, CCAPS had no ongoing operations or assets and outstanding liabilities of approximately $678,000. Following the merger of CCVG with and into CCAPS, CCAPS, as the surviving corporation in that merger, retained all outstanding liabilities of CCVG in the divestiture. As a result of the sale of 100% of the issued and outstanding shares of CCAPS, Golden Dragon, the surviving publicly quoted holding company, will no longer consolidate the liabilities of CCAPS or CCVG. PLAN OF OPERATIONS General Business Plan Our plan of operations is to raise debt and, or, equity to meet our ongoing operating expenses and attempt to merge with another entity with experienced management and opportunities for growth in return for shares of our common stock to create value for our shareholders. There can be no assurance that we will successfully complete these transactions. In particular there is no assurance that any such business will be located or that any stockholder will realize any return on their shares after such a transaction. Any merger or acquisition completed by us can be expected to have a significant dilutive effect on the percentage of shares held by our current stockholders. We believe we are an insignificant participant among the firms which engage in the acquisition of business opportunities. There are many established venture capital and financial concerns that have significantly greater financial and personnel resources and technical expertise than we have. In view of our limited financial resources and limited management availability, we will continue to be at a significant competitive disadvantage compared to our competitors. We intend to seek, investigate and, if such investigation warrants, acquire an interest in business opportunities presented to us by persons or firms which desire to seek the advantages of an issuer who has complied with the Securities Act of 1934 (the "1934 Act"). We will not restrict our search to any specific business, industry or geographical location, and we may participate in business ventures of virtually any nature. This discussion of our proposed business is purposefully general and is not meant to be restrictive of our unlimited discretion to search for and enter into potential business opportunities. We anticipate that we may be able to participate in only one potential business venture because of our lack of financial resources. We may seek a business opportunity with entities which have recently commenced operations, or that desire to utilize the public marketplace in order to raise additional capital in order to expand into new products or markets, to develop a new product or service, or for other corporate purposes. We may acquire assets and establish wholly owned subsidiaries in various businesses or acquire existing businesses as subsidiaries. 14 We expect that the selection of a business opportunity will be complex. Due to general economic conditions, rapid technological advances being made in some industries and shortages of available capital, we believe that there are numerous firms seeking the benefits of an issuer who has complied with the 1934 Act. Such benefits may include facilitating or improving the terms on which additional equity financing may be sought, providing liquidity for incentive stock options or similar benefits to key employees, providing liquidity (subject to restrictions of applicable statutes) for all stockholders and other factors. Potentially, available business opportunities may occur in many different industries and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex. We have, and will continue to have, essentially no assets to provide the owners of business opportunities. However, we will be able to offer owners of acquisition candidates the opportunity to acquire a controlling ownership interest in an issuer who has complied with the 1934 Act without incurring the cost and time required to conduct an initial public offering. The analysis of new business opportunities will be undertaken by, or under the supervision of, our Board of Directors. We intend to concentrate on identifying preliminary prospective business opportunities which may be brought to our attention through present associations of our director, professional advisors or by our stockholders. In analyzing prospective business opportunities, we will consider such matters as (i) available technical, financial and managerial resources; (ii) working capital and other financial requirements; (iii) history of operations, if any, and prospects for the future; (iv) nature of present and expected competition; (v) quality, experience and depth of management services; (vi) potential for further research, development or exploration; (vii) specific risk factors not now foreseeable but that may be anticipated to impact the proposed activities of the company; (viii) potential for growth or expansion; (ix) potential for profit; (x) public recognition and acceptance of products, services or trades; (xi) name identification; and (xii) other factors that we consider relevant. As part of our investigation of the business opportunity, we expect to meet personally with management and key personnel. To the extent possible, we intend to utilize written reports and personal investigation to evaluate the above factors. We will not acquire or merge with any company for which audited financial statements cannot be obtained within a reasonable period of time after closing of the proposed transaction. Acquisition Opportunities In implementing a structure for a particular business acquisition, we may become a party to a merger, consolidation, reorganization, joint venture, or licensing agreement with another company or entity. We may also acquire stock or assets of an existing business. Upon consummation of a transaction, it is probable that our present management and stockholders will no longer be in control of us. In addition, our sole director may, as part of the terms of the acquisition transaction, resign and be replaced by new directors without a vote of our stockholders, or sell his stock in us. Any such sale will only be made in compliance with the securities laws of the United States and any applicable state. It is anticipated that any securities issued in any such reorganization would be issued in reliance upon exemption from registration under application federal and state securities laws. In some circumstances, as a negotiated element of the transaction, we may agree to register all or a part of such securities immediately after the transaction is consummated or at specified times thereafter. If such registration occurs, it will be undertaken by the surviving entity after it has successfully consummated a merger or acquisition and is no longer considered an inactive company. The issuance of substantial additional 15 securities and their potential sale into any trading market which may develop in our securities may have a depressive effect on the value of our securities in the future. There is no assurance that such a trading market will develop. While the actual terms of a transaction cannot be predicted, it is expected that the parties to any business transaction will find it desirable to avoid the creation of a taxable event and thereby structure the business transaction in a so-called "tax-free" reorganization under Sections 368(a)(1) or 351 of the Internal Revenue Code (the "Code"). In order to obtain tax-free treatment under the Code, it may be necessary for the owner of the acquired business to own 80% or more of the voting stock of the surviving entity. In such event, our stockholders would retain less than 20% of the issued and outstanding shares of the surviving entity. This would result in significant dilution in the equity of our stockholders. As part of our investigation, we expect to meet personally with management and key personnel, visit and inspect material facilities, obtain independent analysis of verification of certain information provided, check references of management and key personnel, and take other reasonable investigative measures, to the extent of our limited financial resources and management expertise. The manner in which we participate in an opportunity will depend on the nature of the opportunity, the respective needs and desires of both parties, and the management of the opportunity. With respect to any merger or acquisition, and depending upon, among other things, the target company's assets and liabilities, our stockholders will in all likelihood hold a substantially lesser percentage ownership interest in us following any merger or acquisition. The percentage ownership may be subject to significant reduction in the event we acquire a target company with assets and expectations of growth. Any merger or acquisition can be expected to have a significant dilutive effect on the percentage of shares held by our stockholders. We will participate in a business opportunity only after the negotiation and execution of appropriate written business agreements. Although the terms of such agreements cannot be predicted, generally we anticipate that such agreements will (i) require specific representations and warranties by all of the parties; (ii) specify certain events of default; (iii) detail the terms of closing and the conditions which must be satisfied by each of the parties prior to and after such closing; (iv) outline the manner of bearing costs, including costs associated with the Company's attorneys and accountants; (v) set forth remedies on defaults; and (vi) include miscellaneous other terms. As stated above, we will not acquire or merge with any entity which cannot provide independent audited financial statements within a reasonable period of time after closing of the proposed transaction. If such audited financial statements are not available at closing, or within time parameters necessary to insure our compliance within the requirements of the 1934 Act, or if the audited financial statements provided do not conform to the representations made by that business to be acquired, the definitive closing documents will provide that the proposed transaction will be voidable, at the discretion of our present management. If such transaction is voided, the definitive closing documents will also contain a provision providing for reimbursement for our costs associated with the proposed transaction. 16 Competition We believe we are an insignificant participant among the firms which engage in the acquisition of business opportunities. There are many established venture capital and financial concerns that have significantly greater financial and personnel resources and technical expertise than we have. In view of our limited financial resources and limited management availability, we will continue to be at a significant competitive disadvantage compared to our competitors. Investment Company Act 1940 Although we will be subject to regulation under the Securities Act of 1933, as amended, and the 1934 Act, we believe we will not be subject to regulation under the Investment Company Act of 1940 (the "1940 Act") insofar as we will not be engaged in the business of investing or trading in securities. In the event we engage in business combinations that result in us holding passive investment interests in a number of entities, we could be subject to regulation under the 1940 Act. In such event, we would be required to register as an investment company and incur significant registration and compliance costs. We have obtained no formal determination from the SEC as to our status under the 1940 Act and, consequently, any violation of the 1940 Act would subject us to material adverse consequences. We believe that, currently, we are exempt under Regulation 3a-2 of the 1940 Act. Liquidity and Capital Resources At September 30, 2012, we had cash of $25, no other assets, no operating business or other source of income, outstanding liabilities totaling $176,777 and a stockholders' deficit of $176,752. In our financial statements for the fiscal years ended December 31, 2011 and 2010, the Report of the Independent Registered Public Accounting Firm includes an explanatory paragraph that describes substantial doubt about our ability to continue as a going concern. Our unaudited financial statements for the three and nine month periods ended September 30, 2012 and 2011 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. We had a working capital deficit of $176,752 and reported an accumulated deficit since Inception (January 1, 2011) of $176,851 as at September 30, 2012. It is our current intention to seek to raise debt and, or, equity financing to fund our ongoing operating expenses and attempt to create value for our shareholders by merging with another entity with experienced management and opportunities for growth in return for shares of our common stock. There is no assurance that this series of events will be satisfactorily completed. 17 RESULTS OF OPERATIONS THREE MONTHS ENDED SEPTEMBER 30, 2012 COMPARED TO THE THREE MONTHS ENDED SEPTEMBER 30, 2011 Revenue During the three months ended September 30, 2012 and 2011, we did not recognize any revenues and do not anticipate having revenue generating activities in the near future. General and Administrative Expenses During the three months ended September 30, 2012, we incurred $20,972 in general and administrative expenses compared to $25,807 in the three months ended September 30, 2011, a decrease of $4,835. The decrease was largely due to the fact that in the three months ended September 30, 2011 we incurred certain legal fees which we did not incur in the three months ended September 30, 2012. Interest Expense We recognized an interest expense of $2,318 during the three months ended September 30, 2012, compared to $749 during the three months ended September 30, 2011, an increase of $1,569. This interest expense relates to the interest accrued on the loans made to us by one of our directors. The increase in the amount of interest between the two periods reflects the increase in the average principal balance of the loans made to us by our director between the two periods . Profit / (Loss) before Income Tax In the three months ended September 30, 2012, we recognized a loss before income tax of $23,290 compared to a loss before income tax of $26,556 in the three months ended September 30, 2011, a decrease of $3,266 due to the factors discussed above. Provision for Income Taxes No provision for income taxes was required in the three months ended September 30, 2012 or 2011 as we generated tax losses both periods. Net Profit / (Loss) and Comprehensive Profit / (Loss) In the three months ended September 30, 2012 we recognized a net loss of $23,920 compared to net a loss of $26,556 in the three months ended September 30, 2011, a decrease of $3,266 due to the factors discussed above. The comprehensive loss was identical to the net loss in both the three months ended September 30, 2012 and 2011. 18 NINE MONTHS ENDED SEPTEMBER 30, 2012 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER 30, 2011 Revenue During the nine months ended September 30, 2012 and 2011, we did not recognize any revenues and do not anticipate having revenue generating activities in the near future. General and Administrative Expenses During the nine months ended September 30, 2012, we incurred $71,358 in general and administrative expenses compared to $76,491 in the nine months ended September 30, 2011, a decrease of $5,133. The decrease was largely due to the fact that in the nine months ended September 30, 2011 we incurred certain legal fees which we did not incur in the nine months ended September 30, 2012. Interest Expense We recognized an interest expense of $5,833 during the nine months ended September 30, 2012, compared to $1,314 during the nine months ended September 30, 2011, an increase of $4,519. This interest expense relates to the interest accrued on the loans made to us by one of our directors. The increase in the amount of interest between the two periods reflects the increase in the average principal balance of the loans made to us by our director between the two periods . Profit / (Loss) before Income Tax In the nine months ended September 30, 2012, we recognized a loss before income tax of $77,191 compared to a loss before income tax of $77,805 in the nine months ended September 30, 2011, a decrease of $614 due to the factors discussed above. Provision for Income Taxes No provision for income taxes was required in the nine months ended September 30, 2012 or 2011 as we generated tax losses both periods. Net Profit / (Loss) and Comprehensive Profit / (Loss) In the nine months ended September 30, 2012, we recognized a net loss of $77,191 compared to net a loss of $77,805 in the nine months ended September 30, 2011, a decrease of $614 due to the factors discussed above. The comprehensive loss was identical to the net loss in both the nine months ended September 30, 2012 and 2011. 19 CASH FLOW INFORMATION FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 COMPARED TO THE NINE MONTHS ENDED SEPTEMBER 30, 2011 At September 30, 2012, we had cash of $25, no other assets, no operating business or other source of income, outstanding liabilities totaling $176,777 and a stockholders' deficit of $176,752. In our financial statements for the fiscal years ended December 31, 2011 and 2010, the Report of the Independent Registered Public Accounting Firm includes an explanatory paragraph that describes substantial doubt about our ability to continue as a going concern. Our unaudited financial statements for the three and nine month periods ended September 30, 2012 and 2011 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. At September 30, 2012, we had a working capital deficit of $176,752 and reported an accumulated deficit since Inception (January 1, 2011) of $176,851. It is our current intention to seek to raise debt and, or, equity financing to fund our ongoing operating expenses and attempt to create value for our shareholders by merging with another entity with experienced management and opportunities for growth in return for shares of our common stock. There is no assurance that this series of events will be satisfactorily completed. Net cash used in operations for the nine months ended September 30, 2012 was $8,807 compared to $11,583 in the nine months ended September 30, 2011, a decrease of $82,776. In the nine months ended September 30, 2012, our net losses were $77,191, which we partially offset by a $45,000 non-cash item relating to compensatory loan increases and by an increase of $23,384 in our accounts payable and accrued expenses. In the nine months ended September 30, 2011, our net losses were $77,805, which were offset by a $45,000 non-cash item relating to compensatory loan increases and by an increase of $21,222 in our accounts payable and accrued expenses. No cash was provided by, or used in, investing activities during the nine months ended September 30, 2012 and 2011. During the nine months ended September 30, 2012, we received $8,807 from its financing activities by way of loan from a related party compared to $11,488 in the nine months ended September 30, 2011, a decrease of $2,681. The decrease was a result of the reduced payments of liabilities and expenses on our behalf by one of our director's in the nine months ended September 30, 2012 as compared to the nine months ended September 30, 2011. During the nine months ended September 30, 2012, we accrued $45,000 (2011 - $45,000) of Mr. Cutler's remuneration as payable to Burlingham Corporate Finance, Inc. ("Burlingham") in the form of consulting fees, which appears in the financial statements as a non-compensatory loan. Mr. Cutler is the principal shareholder of Burlingham. 20 ITEM 3. QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. As a "smaller reporting company" as defined by Item 10 of Regulation S-K, we are not required to provide information required by this Item. ITEM 4. CONTROLS AND PROCEDURES Disclosures Controls and Procedures We have adopted and maintain disclosure controls and procedures (as such term is defined in Rules 13a 15(e) under the Securities Exchange Act of 1934, as amended the "Exchange Act")) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act, is recorded, processed, summarized and reported within the time periods required under the SEC's rules and forms and that the information is gathered and communicated to our Chief Executive Officer and Principal Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. As required by SEC Rule 15d-15(b), our Chief Executive Officer and Principal Financial Officer carried out an evaluation under the supervision and with the participation of our management, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 15d-14 as of the end of the period covered by this report. Based on the foregoing evaluation, our Chief Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures are effective in timely alerting them to material information required to be included in our periodic SEC filings and to ensure that information required to be disclosed in our periodic SEC filings is accumulated and communicated to our management, including our Chief Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosure. There was no change in our internal control over financial reporting that occurred during the fiscal quarter ended September 30, 2012, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS We were not subject to any legal proceedings during the three and nine month periods ended September 30, 2012 or 2011 and, to the best of our knowledge, no legal proceedings are pending or threatened. ITEM 2. CHANGES IN SECURITIES There were no changes in our securities in the three and nine month periods ended September 30, 2012 and 2011. ITEM 3. DEFAULTS UPON SENIOR SECURITIES None. 21 ITEM 4. MINE SAFETY DISCLOSURES Not applicable. ITEM 5. OTHER INFORMATION None. ITEM 6. EXHIBITS Exhibits. The following is a complete list of exhibits filed as part of this Form 10-Q. Exhibit numbers correspond to the numbers in the Exhibit Table of Item 601 of Regulation S-K. Exhibit 31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act Exhibit 32.1 Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act. Exhibit 101.INS XBRL Instance Document (1) Exhibit 101.SCH XBRL Taxonomy Extension Schema Document (1) Exhibit 101.CAL XBRL Taxonomy Extension Calculation Linkbase Document (1) Exhibit 101.DEF XBRL Taxonomy Extension Definition Linkbase Document (1) Exhibit 101.LAB XBRL Taxonomy Extension Label Linkbase Document (1) Exhibit 101.PRE XBRL Taxonomy Extension Presentation Linkbase Document (1) (1) Pursuant to Rule 406T of Regulation S-T, this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections. 22 SIGNATURES Pursuant to the requirements of Section 12 of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. GOLDEN DRAGON HOLDING CO. Date: October 16, 2012 By: /s/ DAVID J. CUTLER ----------------------------- David J Cutler Chief Executive Officer, & Chief Financial Officer (Principal Accounting Officer) 23
EX-31 2 ex31-1.txt EXHIBIT 31.1 CERTIFICATION OF PERIODIC REPORT I, David J. Cutler, certify that: 1. I have reviewed this quarterly report on Form 10-Q of Golden Dragon Holding Co.; 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. As the registrant's sole certifying officer, I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)) for the registrant and have: a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's 4th 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. 5. As the registrant's certifying officer, I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a. All significant deficiencies and material weaknesses in the design or operation of internal 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: October 16, 2012 /s/ David J. Cutler ----------------------------- David J. Cutler (Chief Executive Officer and Chief Financial Officer & Principal Accounting Officer) EX-32 3 ex32-1.txt Exhibit 32.1 CERTIFICATION OF DISCLOSURE PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 In connection with the Quarterly Report of Golden Dragon Holding Co. (the "Company") on Form 10-Q for the period ending September 30, 2012 as filed with the Securities and Exchange Commission on the date hereof (the "Report") I, David J. Cutler, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 USC section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge and belief: (1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and (2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. Dated: October 16, 2012 /s/ David J. Cutler --------------------------------------------------------- David J. Cutler (Chief Executive Officer & Chief Financial Officer and Principal Accounting Officer) This certification accompanies the Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended. EX-101.INS 4 gdhc-20120930.xml false --12-31 Q3 2012 2012-09-30 10-Q 0001081938 2384407 Smaller Reporting Company GOLDEN DRAGON HOLDING CO. <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 3. ASSETS</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> As at September 30, 2012 and December 31, 2011, our sole asset was Cash and Cash</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Equivalents of $25.</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Business Segments -- We believe that our activities during the three and nine</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> month periods ended September 30, 2012 and 2011 comprised a single segment.</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Comprehensive Income (Loss) -- Comprehensive income is defined as all changes in</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> stockholders&#39; equity (deficit), exclusive of transactions with owners, such as</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> capital investments. Comprehensive income includes net income or loss, changes</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> in certain assets and liabilities that are reported directly in equity such as</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> translation adjustments on investments in foreign subsidiaries and unrealized</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> gains (losses) on available-for-sale securities. From our inception there were</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> no differences between our comprehensive loss and net loss.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Our comprehensive loss was identical to our net loss for the three and nine</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> month periods ended September 30, 2012 or 2011.</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Deferred Costs and Other -- Offering costs with respect to issue of common</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> stock, warrants or options by us were initially deferred and ultimately offset</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> against the proceeds from these equity transactions if successful or expensed if</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> the proposed equity transaction is unsuccessful. We had no deferred costs and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> other as at September 30, 2012 or 2011.</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Financial Instruments -- The estimated fair values for financial instruments was</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> determined at discrete points in time based on relevant market information.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> These estimates involved uncertainties and could not be determined with</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> precision. The carrying amounts of notes receivable, accounts receivable,</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> accounts payable and accrued liabilities approximated fair value because of the</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> short-term maturities of these instruments. The fair value of notes payable</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> approximated to their carrying value as generally their interest rates reflected</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> our effective annual borrowing rate.</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 2. GOING CONCERN AND LIQUIDITY:</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> At September 30, 2012, we had cash of $25, no other assets, no operating</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> business or other source of income, outstanding liabilities totaling $176,777</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> and a stockholders&#39; deficit of $176,752.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> In our financial statements for the fiscal years ended December 31, 2011 and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 2010, the Report of the Independent Registered Public Accounting Firm includes</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> an explanatory paragraph that describes substantial doubt about our ability to</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> continue as a going concern.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Our unaudited financial statements for the three and nine month periods ended</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> September 30, 2012 and 2011 have been prepared on a going concern basis, which</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> contemplates the realization of assets and the settlement of liabilities and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> commitments in the normal course of business.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> We had a working capital deficit of $176,752 and reported an accumulated deficit</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> since Inception (January 1, 2011) of $176,851 as at September 30, 2012.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> It is our current intention to seek to raise debt and, or, equity financing to</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> fund our ongoing operating expenses and attempt to create value for our</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> shareholders by merging with another entity with experienced management and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> opportunities for growth in return for shares of our common stock. There is no</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> assurance that this series of events will be satisfactorily completed.</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Income (Loss) Per Share -- Income (loss) per share is presented in accordance</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> with Accounting Standards Update ("ASU"), Earning Per Share (Topic 260) which</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> requires the presentation of both basic and diluted earnings per share ("EPS")</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> on the consolidated income statements. Basic EPS would exclude any dilutive</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> effects of options, warrants and convertible securities but does include the</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> restricted shares of common stock issued. Diluted EPS would reflect the</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> potential dilution that would occur if securities of other contracts to issue</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> common stock were exercised or converted to common stock. Basic EPS calculations</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> are determined by dividing net income by the weighted average number of shares</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> of common stock outstanding during the year. Diluted EPS calculations are</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> determined by dividing net income by the weighted average number of common</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> shares and dilutive common share equivalents outstanding.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Basic and diluted EPS were identical for the three and nine month periods ended</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> September 30, 2012 and 2011 as we had no stock options or warrants outstanding</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> during those periods.</p> <!--EndFragment--></div> </div> 3 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 6. RELATED PARTY LOAN</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> As at September 30, 2011, the related party loan represents a loan made to us by</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Mr. David J. Cutler, our sole officer, a director and majority shareholder. The</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> loan is repayable on demand and as at September 30, 2012, the principal balance</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> owed was $125,837 with accrued interest of $8,533.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Interest is accrued on the loan at 8%.</p> <!--EndFragment--></div> </div> 25000 1000 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Stock-Based Compensation -- We have adopted ASC Topic 718, "Accounting for</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Stock-Based Compensation," which establishes a fair value method of accounting</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> for stock-based compensation plans. In accordance with guidance now incorporated</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> in ASC Topic 718, the cost of stock options and warrants issued to employees and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> non-employees is measured on the grant date based on the fair value. The fair</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> value is determined using the Black-Scholes option pricing model. The resulting</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> amount is charged to expense on the straight-line basis over the period in which</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> we expect to receive the benefit, which is generally the vesting period. The</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> fair value of stock warrants was determined at the date of grant using the</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Black-Scholes option pricing model. The Black-Scholes option model requires</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> management to make various estimates and assumptions, including expected term,</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> expected volatility, risk-free rate, and dividend yield.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> No stock based compensation was issued or outstanding during the three and nine</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> month periods ending September 30, 2012 or 2011.</p> <!--EndFragment--></div> </div> 2384407 2384407 2384407 2384407 -176752 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 5. ACCRUED EXPENSES</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> As at September 30, 2012, the balance of accrued expenses represents interest</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> payable on our related party loan (See Note 6.).</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 4. ACCOUNTS PAYABLE</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> As at September 30, 2012, the balance of accounts payable represents legal and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> accounting fees payable.</p> <!--EndFragment--></div> </div> 42407 24857 8533 2700 16874642 16874642 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Advertising costs -- Advertising costs are expensed as incurred. No advertising</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> costs were incurred during the three and nine month periods ended September 30,</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 2012 or 2011.</p> <!--EndFragment--></div> </div> 25 25 25 25 25 25 100 5 -95 -75 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Cash and Cash Equivalents -- Cash and cash equivalents consist of cash and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> highly liquid debt instruments with original maturities of less than three</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> months.</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 7. COMMITMENTS:</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Capital and Operating Leases</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> We had no capital or operating leases outstanding as at September 30, 2012.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Litigation</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> No legal proceedings are currently pending or threatened to the best of our</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> knowledge.</p> <!--EndFragment--></div> </div> 0.0001 0.0001 100000000 100000000 2384407 2384407 2384407 2384407 239 239 -176851 -99661 125837 72029 -0.01 -0.03 -0.03 -0.01 20972 71358 76491 25807 168460 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Impairment of Long-Lived and Intangible Assets -- In the event that facts and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> circumstances indicated that the cost of long-lived and intangible assets may be</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> impaired, an evaluation of recoverability was performed. If an evaluation was</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> required, the estimated future undiscounted cash flows associated with the asset</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> were compared to the asset&#39;s carrying amount to determine if a write-down to</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> market value or discounted cash flow value was required.</p> <!--EndFragment--></div> </div> -23290 -77191 -77805 -26556 -176851 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 10. INCOME TAXES</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> We have had losses since our Inception (January 1, 2011), and therefore have not</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> been subject to federal or state income taxes since our Inception.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Following our reorganization into a holding company structure and the sales of</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> our subsidiary company, CCAPS, we disposed of the majority of our brought</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> forward net operating losses ("NOLS.")</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Consequently, effective September 30, 2012, we had NOLS of approximately</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> $177,000, which expire in 2031 and 2032.</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Income Taxes -- We account for income taxes under the liability method, which</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> requires recognition of deferred tax assets and liabilities for the expected</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> future tax consequences of events that have been included in the financial</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> statements or tax returns. Under this method, deferred tax assets and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> liabilities are determined based on the difference between the financial</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> statements and tax bases of assets and liabilities using enacted tax rates in</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> effect for the year in which the differences are expected to reverse.</p> <!--EndFragment--></div> </div> 17551 19766 42407 5833 1456 8533 8533 25 25 176777 99586 8807 11488 20836 -8807 -11583 -20911 -23290 -77191 -77805 -26556 -176851 -2318 -5833 -1314 -749 -8391 45000 45000 90000 20972 71358 76491 25807 168460 -20972 -71358 -76491 -25807 -168460 177000 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES:</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Nature of Operations</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Business</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Golden Dragon Holding Co. ("Golden Dragon," "We" or "Us") is a publicly quoted</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> shell company seeking to create value for our shareholders by merging with</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> another entity with experienced management and opportunities for growth in</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> return for shares of our common stock. No potential merger candidate has been</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> identified at this time.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> We are a development stage enterprise in accordance with Accounting Codification</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Standard (ACS) 915 "Development Stage Entities." We have been in the development</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> stage since Inception (January 1, 2011).</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> History</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Golden Dragon was incorporated in the State of Delaware in April 2010 as a</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> wholly owned subsidiary of Concord Ventures, Inc. ("Concord"). Concord was a</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> publicly quoted shell company with no assets, no operating business or other</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> source of income and liabilities in excess of $590,000.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Merger of Concord</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> In order for Concord to re-domicile in the State of Delaware from the State of</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Colorado, on September 29, 2010, Concord entered into an Agreement and Plan of</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Merger ("the Merger Agreement") with one of its wholly owned subsidiary</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> companies, CCVG, Inc. ("CCVG"). Under the terms of the Merger Agreement, Concord</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> shares of common stock converted automatically to CCVG shares, without change or</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> necessity to reissue. Also under the Merger Agreement, CCVG became the surviving</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> company domiciled in Delaware.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Reorganization into a Holding Company Structure</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Effective December 31, 2010, pursuant to the Delaware Holding Company formation</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> statute, under Delaware General Corporate Law (DGCL) Section 251(g), CCVG</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> completed an Agreement and Plan of Merger and Reorganization into a Holding</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Company ("the Reorganization") with CCAPS, Inc. ("CCAPS") and Golden Dragon,</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> both wholly-owned subsidiaries of CCVG. The Reorganization provided for the</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> merger of CCVG with and into CCAPS, with CCAPS being the surviving corporation</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> in that merger. Contemporaneously with CCVG&#39;s merger with and into CCAPS, the</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> shareholders of CCVG were converted into shareholders of Golden Dragon on a one</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> share for one share basis.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> As a result of this reorganization into a Holding Company structure, Golden</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Dragon became the surviving publicly quoted parent holding company with CCAPS,</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> the surviving corporation of the merger between CCVG and CCAPS, becoming the</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> sole remaining wholly-owned subsidiary of Golden Dragon.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> The Reorganization has been accounted for so as to reflect the fact that both</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> CCVG and Golden Dragon were under common control at the date of the</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Reorganization, similar to a reverse acquisition of CCVG and its subsidiary</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> company, CCAPS, by Golden Dragon.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Sale of CCAPS</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> On December 31, 2010, Golden Dragon entered into a Share Purchase Agreement with</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> an unrelated third party. Under the terms of the Share Purchase Agreement,</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Golden Dragon sold 100% of the issued and outstanding shares of its sole</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> remaining wholly owned subsidiary, CCAPS for $100 cash consideration, subject to</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> its debts, and issued 25,000 restricted shares of Golden Dragon common stock,</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> valued at $1,000, to CCAPS pursuant to the terms of the Share Purchase</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Agreement. At the time of the sale, CCAPS had no ongoing operations or assets</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> and outstanding liabilities of approximately $678,000.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Following the merger of CCVG with and into CCAPS, CCAPS, as the surviving</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> corporation in that merger, retained all outstanding liabilities of CCVG in the</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> divestiture.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> As a result of the sale of 100% of the issued and outstanding shares of CCAPS,</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Golden Dragon, the surviving publicly quoted holding company, will no longer</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> consolidate the liabilities of CCAPS or CCVG.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Basis of Presentation:</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> The accompanying unaudited financial statements of Golden Dragon have been</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> prepared in accordance with generally accepted accounting principles for interim</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> financial information and with the instructions to Form 10-Q and Article 10 of</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Regulation S-X. Accordingly, they do not include all of the information and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> footnotes required by generally accepted accounting principles for complete</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> financial statements. In our opinion the financial statements include all</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> adjustments (consisting of normal recurring accruals) necessary in order to make</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> the financial statements not misleading. Operating results for the three and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> nine months ended September 30, 2012 are not necessarily indicative of the</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> results that may be expected for the year ended December 31, 2012. For more</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> complete financial information, these unaudited financial statements should be</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> read in conjunction with the audited financial statements for the year ended</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> December 31, 2011 included in our Form 10-K filed with the SEC.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Significant Accounting Policies:</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Development Stage Company - We are a development stage enterprise in accordance</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> with ACS 915 "Development Stage Entities." We have been in the development stage</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> since Inception (January 1, 2011). Among the disclosures required as a</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> development stage company are that our financial statements are identified as</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> those of a development stage company, and that the statements of operations,</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> stockholders&#39; deficit and cash flows disclose activity since the date of our</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Inception (January 1, 2011) as a development stage company.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Use of Estimates -- The preparation of our consolidated financial statements in</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> conformity with generally accepted accounting principles requires management to</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> make estimates and assumptions that affect the amounts reported in these</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> financial statements and accompanying notes. Actual results could differ from</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> those estimates. Due to uncertainties inherent in the estimation process, it is</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> possible that these estimates could be materially revised within the next year.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Cash and Cash Equivalents -- Cash and cash equivalents consist of cash and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> highly liquid debt instruments with original maturities of less than three</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> months.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Property and Equipment -- We owned no property and equipment during the three</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> and nine month periods ended September 30, 2012 or 2011 and consequently we</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> recorded no depreciation expense during the three and nine month periods ended</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> September 30, 2012 or 2011.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Deferred Costs and Other -- Offering costs with respect to issue of common</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> stock, warrants or options by us were initially deferred and ultimately offset</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> against the proceeds from these equity transactions if successful or expensed if</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> the proposed equity transaction is unsuccessful. We had no deferred costs and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> other as at September 30, 2012 or 2011.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Impairment of Long-Lived and Intangible Assets -- In the event that facts and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> circumstances indicated that the cost of long-lived and intangible assets may be</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> impaired, an evaluation of recoverability was performed. If an evaluation was</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> required, the estimated future undiscounted cash flows associated with the asset</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> were compared to the asset&#39;s carrying amount to determine if a write-down to</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> market value or discounted cash flow value was required.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Financial Instruments -- The estimated fair values for financial instruments was</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> determined at discrete points in time based on relevant market information.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> These estimates involved uncertainties and could not be determined with</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> precision. The carrying amounts of notes receivable, accounts receivable,</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> accounts payable and accrued liabilities approximated fair value because of the</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> short-term maturities of these instruments. The fair value of notes payable</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> approximated to their carrying value as generally their interest rates reflected</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> our effective annual borrowing rate.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Income Taxes -- We account for income taxes under the liability method, which</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> requires recognition of deferred tax assets and liabilities for the expected</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> future tax consequences of events that have been included in the financial</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> statements or tax returns. Under this method, deferred tax assets and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> liabilities are determined based on the difference between the financial</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> statements and tax bases of assets and liabilities using enacted tax rates in</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> effect for the year in which the differences are expected to reverse.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Advertising costs -- Advertising costs are expensed as incurred. No advertising</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> costs were incurred during the three and nine month periods ended September 30,</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 2012 or 2011.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Comprehensive Income (Loss) -- Comprehensive income is defined as all changes in</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> stockholders&#39; equity (deficit), exclusive of transactions with owners, such as</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> capital investments. Comprehensive income includes net income or loss, changes</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> in certain assets and liabilities that are reported directly in equity such as</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> translation adjustments on investments in foreign subsidiaries and unrealized</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> gains (losses) on available-for-sale securities. From our inception there were</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> no differences between our comprehensive loss and net loss.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Our comprehensive loss was identical to our net loss for the three and nine</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> month periods ended September 30, 2012 or 2011.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Income (Loss) Per Share -- Income (loss) per share is presented in accordance</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> with Accounting Standards Update ("ASU"), Earning Per Share (Topic 260) which</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> requires the presentation of both basic and diluted earnings per share ("EPS")</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> on the consolidated income statements. Basic EPS would exclude any dilutive</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> effects of options, warrants and convertible securities but does include the</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> restricted shares of common stock issued. Diluted EPS would reflect the</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> potential dilution that would occur if securities of other contracts to issue</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> common stock were exercised or converted to common stock. Basic EPS calculations</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> are determined by dividing net income by the weighted average number of shares</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> of common stock outstanding during the year. Diluted EPS calculations are</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> determined by dividing net income by the weighted average number of common</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> shares and dilutive common share equivalents outstanding.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Basic and diluted EPS were identical for the three and nine month periods ended</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> September 30, 2012 and 2011 as we had no stock options or warrants outstanding</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> during those periods.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Stock-Based Compensation -- We have adopted ASC Topic 718, "Accounting for</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Stock-Based Compensation," which establishes a fair value method of accounting</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> for stock-based compensation plans. In accordance with guidance now incorporated</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> in ASC Topic 718, the cost of stock options and warrants issued to employees and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> non-employees is measured on the grant date based on the fair value. The fair</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> value is determined using the Black-Scholes option pricing model. The resulting</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> amount is charged to expense on the straight-line basis over the period in which</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> we expect to receive the benefit, which is generally the vesting period. The</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> fair value of stock warrants was determined at the date of grant using the</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Black-Scholes option pricing model. The Black-Scholes option model requires</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> management to make various estimates and assumptions, including expected term,</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> expected volatility, risk-free rate, and dividend yield.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> No stock based compensation was issued or outstanding during the three and nine</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> month periods ending September 30, 2012 or 2011.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Business Segments -- We believe that our activities during the three and nine</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> month periods ended September 30, 2012 and 2011 comprised a single segment.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Recently Issued Accounting Pronouncements-- We have reviewed all recently</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> issued, but not yet effective, accounting pronouncements and do not believe the</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> future adoption of any such pronouncements may be expected to cause a material</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> impact on our financial condition or the results of our operations.</p> <!--EndFragment--></div> </div> 45000 45000 105000 0.0001 0.0001 10000000 10000000 0 0 0 0 8807 11488 20836 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Property and Equipment -- We owned no property and equipment during the three</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> and nine month periods ended September 30, 2012 or 2011 and consequently we</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> recorded no depreciation expense during the three and nine month periods ended</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> September 30, 2012 or 2011.</p> <!--EndFragment--></div> </div> 125837 45000 45000 0.08 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 8. RELATED PARTY TRANSACTIONS</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> As at September 30, 2012, we owed Mr. Cutler, our sole officer, a director and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> majority shareholder, a principal balance of $125,837 with accrued interest of</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> $8,533.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> During the nine months ended September 30, 2012, we accrued $45,000 (2011 -</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> $45,000) of Mr. Cutler&#39;s remuneration as payable to Burlingham Corporate</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Finance, Inc. ("Burlingham") in the form of consulting fees. Mr. Cutler is the</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> principal shareholder of Burlingham.</p> <!--EndFragment--></div> </div> -17051633 -16974442 100 1 75000 -176752 -99561 <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 9. STOCKHOLDERS&#39; DEFICIT:</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Preferred Stock</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> We were authorized, without further action by the shareholders, to issue</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 10,000,000 shares of one or more series of preferred stock at a par value of</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> $0.0001, all of which is nonvoting. The Board of Directors may, without</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> shareholder approval, determine the dividend rates, redemption prices,</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> preferences on liquidation or dissolution, conversion rights, voting rights and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> any other preferences.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> No shares of preferred stock were issued or outstanding during the three and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> nine month periods ended September 30, 2012 and 2011.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Common Stock</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> We were authorized to issue 100,000,000 shares of common stock, par value</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> $0.0001 per share.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> On April 29, 2008, we held our annual meeting of stockholders at which meeting</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> the majority of stockholders approved, an up to 3 for 1 reverse split of our</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> shares of common stock. No such reverse split has been effected as yet.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Recent Issuances</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> No shares of our common stock were issued in the three and nine month periods</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> ended September 30, 2012 or 2011.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Warrants</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> No warrants were issued or outstanding during the three and nine month periods</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> ended September 30, 2012 or 2011.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Stock Options</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Effective March 19, 1999, we adopted a stock option plan (the "Plan"). The Plan</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> provides for grants of incentive stock options, nonqualified stock options and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> restricted stock to designated employees, officers, directors, advisors and</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> independent contractors. The Plan authorized the issuance of up to 75,000 shares</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> of Class A Common Stock. Under the Plan, the exercise price per share of a</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> non-qualified stock option must be equal to at least 50% of the fair market</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> value of the common stock at the grant date, and the exercise price per share of</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> an incentive stock option must equal the fair market value of the common stock</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> at the grant date.</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> No stock options were issued or outstanding during the three and nine month</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> periods ended September 30, 2012 or 2011.</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 11. SUBSEQUENT EVENTS</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> We have evaluated subsequent events through October 31, 2012. Other than those</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> set out above, there have been no subsequent events after September 30, 2012 for</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> which disclosure is required.</p> <!--EndFragment--></div> </div> <!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <div> <div><!--StartFragment--> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Use of Estimates -- The preparation of our consolidated financial statements in</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> conformity with generally accepted accounting principles requires management to</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> make estimates and assumptions that affect the amounts reported in these</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> financial statements and accompanying notes. Actual results could differ from</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> those estimates. Due to uncertainties inherent in the estimation process, it is</p> <p style="MARGIN: 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> possible that these estimates could be materially revised within the next year.</p> <!--EndFragment--></div> </div> xbrli:shares xbrli:pure ISO4217:USD ISO4217:USD xbrli:shares 0001081938 2012-07-01 2012-09-30 0001081938 2012-01-01 2012-09-30 0001081938 2011-07-01 2011-09-30 0001081938 2011-01-01 2012-09-30 0001081938 2011-01-01 2011-09-30 0001081938 us-gaap:SubsidiariesMember 2010-12-01 2010-12-31 0001081938 2012-09-30 0001081938 2011-12-31 0001081938 2011-09-30 0001081938 us-gaap:SubsidiariesMember 2010-12-31 0001081938 2010-12-31 0001081938 2008-04-29 EX-101.SCH 5 gdhc-20120930.xsd 105 - Disclosure - ACCRUED EXPENSES link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 104 - Disclosure - ACCOUNTS PAYABLE link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 40301 - Disclosure - ASSETS (Details) link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 103 - Disclosure - ASSETS link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 002 - Statement - BALANCE SHEETS link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 003 - Statement - BALANCE SHEETS (Parenthetical) link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 107 - Disclosure - COMMITMENTS link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 001 - Document - Document and Entity Information link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 102 - Disclosure - GOING CONCERN AND LIQUIDITY link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 40201 - Disclosure - GOING CONCERN AND LIQUIDITY (Details) link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 110 - Disclosure - INCOME TAXES link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 41001 - Disclosure - INCOME TAXES (Details) link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 201 - Disclosure - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Policy) link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 40101 - Disclosure - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Details) link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 101 - Disclosure - NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 40601 - Disclosure - RELATED PARTY LOAN (Details) link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 40801 - Disclosure - RELATED PARTY TRANSACTION (Details) link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 106 - Disclosure - RELATED PARTY LOAN link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 108 - Disclosure - RELATED PARTY TRANSACTIONS link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 005 - Statement - STATEMENTS OF CASH FLOWS link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 004 - Statement - STATEMENTS OF OPERATIONS link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 109 - Disclosure - STOCKHOLDERS' DEFICIT link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 40901 - Disclosure - STOCKHOLDERS' DEFICIT (Details) link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink 111 - Disclosure - SUBSEQUENT EVENTS link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink EX-101.CAL 6 gdhc-20120930_cal.xml EX-101.LAB 7 gdhc-20120930_lab.xml Amendment Flag Current Fiscal Year End Date Document and Entity Information [Abstract] Document and Entity Information [Abstract]. 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ACCOUNTS PAYABLE
9 Months Ended
Sep. 30, 2012
ACCOUNTS PAYABLE [Abstract]  
ACCOUNTS PAYABLE

4. ACCOUNTS PAYABLE

 

As at September 30, 2012, the balance of accounts payable represents legal and

accounting fees payable.

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ASSETS
9 Months Ended
Sep. 30, 2012
ASSETS [Abstract]  
ASSETS

3. ASSETS

 

As at September 30, 2012 and December 31, 2011, our sole asset was Cash and Cash

Equivalents of $25.

XML 14 R2.htm IDEA: XBRL DOCUMENT v2.4.0.6
BALANCE SHEETS (USD $)
Sep. 30, 2012
Dec. 31, 2011
CURRENT ASSETS    
Cash and Cash Equivalents $ 25 $ 25
Total Current Assets 25 25
TOTAL ASSETS 25 25
CURRENT LIABILITIES    
Accounts Payable 42,407 24,857
Accrued Expenses 8,533 2,700
Related Party Loan 125,837 72,029
Total Current Liabilities 176,777 99,586
COMMITMENTS AND CONTINGENCIES (Note. 7)      
STOCKHOLDERS' DEFICIT    
Preferred Stock; $0.0001 par value, 10,000,000 shares authorized no shares issued and outstanding      
Class A Common Stock; $0.0001 par value, 100,000,000, shares authorized as at June 30, 2012 and December 31, 2011, 2,384,407 shares issued and outstanding as at June 30, 2012 and December 31, 2011 239 239
Additional Paid In Capital 16,874,642 16,874,642
Accumulated Deficit (including $(153,562) and $ (99,661) respectively during the development stage) (17,051,633) (16,974,442)
Total Stockholders' (Deficit) (176,752) (99,561)
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) $ 25 $ 25
XML 15 R6.htm IDEA: XBRL DOCUMENT v2.4.0.6
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES
9 Months Ended
Sep. 30, 2012
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES

1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES:

 

Nature of Operations

 

Business

 

Golden Dragon Holding Co. ("Golden Dragon," "We" or "Us") is a publicly quoted

shell company seeking to create value for our shareholders by merging with

another entity with experienced management and opportunities for growth in

return for shares of our common stock. No potential merger candidate has been

identified at this time.

 

We are a development stage enterprise in accordance with Accounting Codification

Standard (ACS) 915 "Development Stage Entities." We have been in the development

stage since Inception (January 1, 2011).

 

History

 

Golden Dragon was incorporated in the State of Delaware in April 2010 as a

wholly owned subsidiary of Concord Ventures, Inc. ("Concord"). Concord was a

publicly quoted shell company with no assets, no operating business or other

source of income and liabilities in excess of $590,000.

 

Merger of Concord

 

In order for Concord to re-domicile in the State of Delaware from the State of

Colorado, on September 29, 2010, Concord entered into an Agreement and Plan of

Merger ("the Merger Agreement") with one of its wholly owned subsidiary

companies, CCVG, Inc. ("CCVG"). Under the terms of the Merger Agreement, Concord

shares of common stock converted automatically to CCVG shares, without change or

necessity to reissue. Also under the Merger Agreement, CCVG became the surviving

company domiciled in Delaware.

 

Reorganization into a Holding Company Structure

 

Effective December 31, 2010, pursuant to the Delaware Holding Company formation

statute, under Delaware General Corporate Law (DGCL) Section 251(g), CCVG

completed an Agreement and Plan of Merger and Reorganization into a Holding

Company ("the Reorganization") with CCAPS, Inc. ("CCAPS") and Golden Dragon,

both wholly-owned subsidiaries of CCVG. The Reorganization provided for the

merger of CCVG with and into CCAPS, with CCAPS being the surviving corporation

in that merger. Contemporaneously with CCVG's merger with and into CCAPS, the

shareholders of CCVG were converted into shareholders of Golden Dragon on a one

share for one share basis.

 

As a result of this reorganization into a Holding Company structure, Golden

Dragon became the surviving publicly quoted parent holding company with CCAPS,

the surviving corporation of the merger between CCVG and CCAPS, becoming the

sole remaining wholly-owned subsidiary of Golden Dragon.

 

The Reorganization has been accounted for so as to reflect the fact that both

CCVG and Golden Dragon were under common control at the date of the

Reorganization, similar to a reverse acquisition of CCVG and its subsidiary

company, CCAPS, by Golden Dragon.

 

Sale of CCAPS

 

On December 31, 2010, Golden Dragon entered into a Share Purchase Agreement with

an unrelated third party. Under the terms of the Share Purchase Agreement,

Golden Dragon sold 100% of the issued and outstanding shares of its sole

remaining wholly owned subsidiary, CCAPS for $100 cash consideration, subject to

its debts, and issued 25,000 restricted shares of Golden Dragon common stock,

valued at $1,000, to CCAPS pursuant to the terms of the Share Purchase

Agreement. At the time of the sale, CCAPS had no ongoing operations or assets

and outstanding liabilities of approximately $678,000.

 

Following the merger of CCVG with and into CCAPS, CCAPS, as the surviving

corporation in that merger, retained all outstanding liabilities of CCVG in the

divestiture.

 

As a result of the sale of 100% of the issued and outstanding shares of CCAPS,

Golden Dragon, the surviving publicly quoted holding company, will no longer

consolidate the liabilities of CCAPS or CCVG.

 

Basis of Presentation:

 

The accompanying unaudited financial statements of Golden Dragon have been

prepared in accordance with generally accepted accounting principles for interim

financial information and with the instructions to Form 10-Q and Article 10 of

Regulation S-X. Accordingly, they do not include all of the information and

footnotes required by generally accepted accounting principles for complete

financial statements. In our opinion the financial statements include all

adjustments (consisting of normal recurring accruals) necessary in order to make

the financial statements not misleading. Operating results for the three and

nine months ended September 30, 2012 are not necessarily indicative of the

results that may be expected for the year ended December 31, 2012. For more

complete financial information, these unaudited financial statements should be

read in conjunction with the audited financial statements for the year ended

December 31, 2011 included in our Form 10-K filed with the SEC.

 

Significant Accounting Policies:

 

Development Stage Company - We are a development stage enterprise in accordance

with ACS 915 "Development Stage Entities." We have been in the development stage

since Inception (January 1, 2011). Among the disclosures required as a

development stage company are that our financial statements are identified as

those of a development stage company, and that the statements of operations,

stockholders' deficit and cash flows disclose activity since the date of our

Inception (January 1, 2011) as a development stage company.

 

Use of Estimates -- The preparation of our consolidated financial statements in

conformity with generally accepted accounting principles requires management to

make estimates and assumptions that affect the amounts reported in these

financial statements and accompanying notes. Actual results could differ from

those estimates. Due to uncertainties inherent in the estimation process, it is

possible that these estimates could be materially revised within the next year.

 

Cash and Cash Equivalents -- Cash and cash equivalents consist of cash and

highly liquid debt instruments with original maturities of less than three

months.

 

Property and Equipment -- We owned no property and equipment during the three

and nine month periods ended September 30, 2012 or 2011 and consequently we

recorded no depreciation expense during the three and nine month periods ended

September 30, 2012 or 2011.

 

Deferred Costs and Other -- Offering costs with respect to issue of common

stock, warrants or options by us were initially deferred and ultimately offset

against the proceeds from these equity transactions if successful or expensed if

the proposed equity transaction is unsuccessful. We had no deferred costs and

other as at September 30, 2012 or 2011.

 

Impairment of Long-Lived and Intangible Assets -- In the event that facts and

circumstances indicated that the cost of long-lived and intangible assets may be

impaired, an evaluation of recoverability was performed. If an evaluation was

required, the estimated future undiscounted cash flows associated with the asset

were compared to the asset's carrying amount to determine if a write-down to

market value or discounted cash flow value was required.

 

Financial Instruments -- The estimated fair values for financial instruments was

determined at discrete points in time based on relevant market information.

These estimates involved uncertainties and could not be determined with

precision. The carrying amounts of notes receivable, accounts receivable,

accounts payable and accrued liabilities approximated fair value because of the

short-term maturities of these instruments. The fair value of notes payable

approximated to their carrying value as generally their interest rates reflected

our effective annual borrowing rate.

 

Income Taxes -- We account for income taxes under the liability method, which

requires recognition of deferred tax assets and liabilities for the expected

future tax consequences of events that have been included in the financial

statements or tax returns. Under this method, deferred tax assets and

liabilities are determined based on the difference between the financial

statements and tax bases of assets and liabilities using enacted tax rates in

effect for the year in which the differences are expected to reverse.

 

Advertising costs -- Advertising costs are expensed as incurred. No advertising

costs were incurred during the three and nine month periods ended September 30,

2012 or 2011.

 

Comprehensive Income (Loss) -- Comprehensive income is defined as all changes in

stockholders' equity (deficit), exclusive of transactions with owners, such as

capital investments. Comprehensive income includes net income or loss, changes

in certain assets and liabilities that are reported directly in equity such as

translation adjustments on investments in foreign subsidiaries and unrealized

gains (losses) on available-for-sale securities. From our inception there were

no differences between our comprehensive loss and net loss.

 

Our comprehensive loss was identical to our net loss for the three and nine

month periods ended September 30, 2012 or 2011.

 

Income (Loss) Per Share -- Income (loss) per share is presented in accordance

with Accounting Standards Update ("ASU"), Earning Per Share (Topic 260) which

requires the presentation of both basic and diluted earnings per share ("EPS")

on the consolidated income statements. Basic EPS would exclude any dilutive

effects of options, warrants and convertible securities but does include the

restricted shares of common stock issued. Diluted EPS would reflect the

potential dilution that would occur if securities of other contracts to issue

common stock were exercised or converted to common stock. Basic EPS calculations

are determined by dividing net income by the weighted average number of shares

of common stock outstanding during the year. Diluted EPS calculations are

determined by dividing net income by the weighted average number of common

shares and dilutive common share equivalents outstanding.

 

Basic and diluted EPS were identical for the three and nine month periods ended

September 30, 2012 and 2011 as we had no stock options or warrants outstanding

during those periods.

 

Stock-Based Compensation -- We have adopted ASC Topic 718, "Accounting for

Stock-Based Compensation," which establishes a fair value method of accounting

for stock-based compensation plans. In accordance with guidance now incorporated

in ASC Topic 718, the cost of stock options and warrants issued to employees and

non-employees is measured on the grant date based on the fair value. The fair

value is determined using the Black-Scholes option pricing model. The resulting

amount is charged to expense on the straight-line basis over the period in which

we expect to receive the benefit, which is generally the vesting period. The

fair value of stock warrants was determined at the date of grant using the

Black-Scholes option pricing model. The Black-Scholes option model requires

management to make various estimates and assumptions, including expected term,

expected volatility, risk-free rate, and dividend yield.

 

No stock based compensation was issued or outstanding during the three and nine

month periods ending September 30, 2012 or 2011.

 

Business Segments -- We believe that our activities during the three and nine

month periods ended September 30, 2012 and 2011 comprised a single segment.

 

Recently Issued Accounting Pronouncements-- We have reviewed all recently

issued, but not yet effective, accounting pronouncements and do not believe the

future adoption of any such pronouncements may be expected to cause a material

impact on our financial condition or the results of our operations.

XML 16 R22.htm IDEA: XBRL DOCUMENT v2.4.0.6
RELATED PARTY TRANSACTION (Details) (USD $)
9 Months Ended
Sep. 30, 2012
Sep. 30, 2011
RELATED PARTY TRANSACTIONS [Abstract]    
Principal amount of loan at end of current fiscal quarter $ 125,837  
Interest expense, related parties 8,533  
Management and consulting fees - related parties $ 45,000 $ 45,000
XML 17 R24.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES (Details) (USD $)
Sep. 30, 2012
INCOME TAXES [Abstract]  
Operating Loss Carryforwards $ 177,000
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XML 19 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
GOING CONCERN AND LIQUIDITY
9 Months Ended
Sep. 30, 2012
GOING CONCERN AND LIQUIDITY [Abstract]  
GOING CONCERN AND LIQUIDITY

2. GOING CONCERN AND LIQUIDITY:

 

At September 30, 2012, we had cash of $25, no other assets, no operating

business or other source of income, outstanding liabilities totaling $176,777

and a stockholders' deficit of $176,752.

 

In our financial statements for the fiscal years ended December 31, 2011 and

2010, the Report of the Independent Registered Public Accounting Firm includes

an explanatory paragraph that describes substantial doubt about our ability to

continue as a going concern.

 

Our unaudited financial statements for the three and nine month periods ended

September 30, 2012 and 2011 have been prepared on a going concern basis, which

contemplates the realization of assets and the settlement of liabilities and

commitments in the normal course of business.

 

We had a working capital deficit of $176,752 and reported an accumulated deficit

since Inception (January 1, 2011) of $176,851 as at September 30, 2012.

 

It is our current intention to seek to raise debt and, or, equity financing to

fund our ongoing operating expenses and attempt to create value for our

shareholders by merging with another entity with experienced management and

opportunities for growth in return for shares of our common stock. There is no

assurance that this series of events will be satisfactorily completed.

XML 20 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
BALANCE SHEETS (Parenthetical) (USD $)
Sep. 30, 2012
Dec. 31, 2011
BALANCE SHEETS [Abstract]    
Preferred Stock, par value per share $ 0.0001 $ 0.0001
Preferred Stock, shares authorized 10,000,000 10,000,000
Preferred Stock, shares issued 0 0
Preferred Stock, shares outstanding 0 0
Class A Common Stock, par value per share $ 0.0001 $ 0.0001
Class A Common Stock, shares authorized 100,000,000 100,000,000
Class A Common Stock, shares issued 2,384,407 2,384,407
Class A Common Stock, shares outstanding 2,384,407 2,384,407
Deficit accumulated during the development stage $ 176,851 $ 99,661
XML 21 R17.htm IDEA: XBRL DOCUMENT v2.4.0.6
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Policy)
9 Months Ended
Sep. 30, 2012
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES [Abstract]  
Use of Estimates:

Use of Estimates -- The preparation of our consolidated financial statements in

conformity with generally accepted accounting principles requires management to

make estimates and assumptions that affect the amounts reported in these

financial statements and accompanying notes. Actual results could differ from

those estimates. Due to uncertainties inherent in the estimation process, it is

possible that these estimates could be materially revised within the next year.

Cash and Cash Equivalents

Cash and Cash Equivalents -- Cash and cash equivalents consist of cash and

highly liquid debt instruments with original maturities of less than three

months.

Property and Equipment

Property and Equipment -- We owned no property and equipment during the three

and nine month periods ended September 30, 2012 or 2011 and consequently we

recorded no depreciation expense during the three and nine month periods ended

September 30, 2012 or 2011.

Deferred Cost and Other

Deferred Costs and Other -- Offering costs with respect to issue of common

stock, warrants or options by us were initially deferred and ultimately offset

against the proceeds from these equity transactions if successful or expensed if

the proposed equity transaction is unsuccessful. We had no deferred costs and

other as at September 30, 2012 or 2011.

Impairment of Long-Lived and Intangible Assets

Impairment of Long-Lived and Intangible Assets -- In the event that facts and

circumstances indicated that the cost of long-lived and intangible assets may be

impaired, an evaluation of recoverability was performed. If an evaluation was

required, the estimated future undiscounted cash flows associated with the asset

were compared to the asset's carrying amount to determine if a write-down to

market value or discounted cash flow value was required.

Income Taxes

Income Taxes -- We account for income taxes under the liability method, which

requires recognition of deferred tax assets and liabilities for the expected

future tax consequences of events that have been included in the financial

statements or tax returns. Under this method, deferred tax assets and

liabilities are determined based on the difference between the financial

statements and tax bases of assets and liabilities using enacted tax rates in

effect for the year in which the differences are expected to reverse.

Financial Instruments

Financial Instruments -- The estimated fair values for financial instruments was

determined at discrete points in time based on relevant market information.

These estimates involved uncertainties and could not be determined with

precision. The carrying amounts of notes receivable, accounts receivable,

accounts payable and accrued liabilities approximated fair value because of the

short-term maturities of these instruments. The fair value of notes payable

approximated to their carrying value as generally their interest rates reflected

our effective annual borrowing rate.

Advertising Costs

Advertising costs -- Advertising costs are expensed as incurred. No advertising

costs were incurred during the three and nine month periods ended September 30,

2012 or 2011.

Comprehensive Income (Loss)

Comprehensive Income (Loss) -- Comprehensive income is defined as all changes in

stockholders' equity (deficit), exclusive of transactions with owners, such as

capital investments. Comprehensive income includes net income or loss, changes

in certain assets and liabilities that are reported directly in equity such as

translation adjustments on investments in foreign subsidiaries and unrealized

gains (losses) on available-for-sale securities. From our inception there were

no differences between our comprehensive loss and net loss.

 

Our comprehensive loss was identical to our net loss for the three and nine

month periods ended September 30, 2012 or 2011.

Income (Loss) Per Share

Income (Loss) Per Share -- Income (loss) per share is presented in accordance

with Accounting Standards Update ("ASU"), Earning Per Share (Topic 260) which

requires the presentation of both basic and diluted earnings per share ("EPS")

on the consolidated income statements. Basic EPS would exclude any dilutive

effects of options, warrants and convertible securities but does include the

restricted shares of common stock issued. Diluted EPS would reflect the

potential dilution that would occur if securities of other contracts to issue

common stock were exercised or converted to common stock. Basic EPS calculations

are determined by dividing net income by the weighted average number of shares

of common stock outstanding during the year. Diluted EPS calculations are

determined by dividing net income by the weighted average number of common

shares and dilutive common share equivalents outstanding.

 

Basic and diluted EPS were identical for the three and nine month periods ended

September 30, 2012 and 2011 as we had no stock options or warrants outstanding

during those periods.

Stock Based Compensation

Stock-Based Compensation -- We have adopted ASC Topic 718, "Accounting for

Stock-Based Compensation," which establishes a fair value method of accounting

for stock-based compensation plans. In accordance with guidance now incorporated

in ASC Topic 718, the cost of stock options and warrants issued to employees and

non-employees is measured on the grant date based on the fair value. The fair

value is determined using the Black-Scholes option pricing model. The resulting

amount is charged to expense on the straight-line basis over the period in which

we expect to receive the benefit, which is generally the vesting period. The

fair value of stock warrants was determined at the date of grant using the

Black-Scholes option pricing model. The Black-Scholes option model requires

management to make various estimates and assumptions, including expected term,

expected volatility, risk-free rate, and dividend yield.

 

No stock based compensation was issued or outstanding during the three and nine

month periods ending September 30, 2012 or 2011.

Business Segments

Business Segments -- We believe that our activities during the three and nine

month periods ended September 30, 2012 and 2011 comprised a single segment.

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Document and Entity Information
9 Months Ended
Sep. 30, 2012
Document and Entity Information [Abstract]  
Document Type 10-Q
Amendment Flag false
Document Period End Date Sep. 30, 2012
Entity Registrant Name GOLDEN DRAGON HOLDING CO.
Entity Central Index Key 0001081938
Current Fiscal Year End Date --12-31
Document Fiscal Year Focus 2012
Document Fiscal Period Focus Q3
Entity Filer Category Smaller Reporting Company
Entity Common Stock, Shares Outstanding 2,384,407

XML 24 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES (Details) (CCAPS [Member], USD $)
1 Months Ended
Dec. 31, 2010
CCAPS [Member]
 
Nature of Operations [Line Items]  
Ownership percentage sold 100.00%
Consideration received from sale of stock $ 100
Restricted stock issued 25,000
Restricted stock issued, value $ 1,000
XML 25 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
STATEMENTS OF OPERATIONS (USD $)
3 Months Ended 9 Months Ended 21 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
OPERATING EXPENSES          
General & Administrative Expenses $ 20,972 $ 25,807 $ 71,358 $ 76,491 $ 168,460
Total Operating Expenses 20,972 25,807 71,358 76,491 168,460
OPERATING LOSS (20,972) (25,807) (71,358) (76,491) (168,460)
Interest and Other Income / (Expenses) Net (2,318) (749) (5,833) (1,314) (8,391)
Loss before Income Taxes (23,290) (26,556) (77,191) (77,805) (176,851)
Provision for Income Taxes               
NET LOSS $ (23,290) $ (26,556) $ (77,191) $ (77,805) $ (176,851)
NET LOSS PER COMMON SHARE          
Basic & Diluted $ (0.01) $ (0.01) $ (0.03) $ (0.03)  
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING          
Basic & Diluted 2,384,407 2,384,407 2,384,407 2,384,407  
XML 26 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
COMMITMENTS
9 Months Ended
Sep. 30, 2012
COMMITMENTS [Abstract]  
COMMITMENTS

7. COMMITMENTS:

 

Capital and Operating Leases

 

We had no capital or operating leases outstanding as at September 30, 2012.

 

Litigation

 

No legal proceedings are currently pending or threatened to the best of our

knowledge.

XML 27 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
RELATED PARTY LOAN
9 Months Ended
Sep. 30, 2012
RELATED PARTY LOAN [Abstract]  
RELATED PARTY LOAN

6. RELATED PARTY LOAN

 

As at September 30, 2011, the related party loan represents a loan made to us by

Mr. David J. Cutler, our sole officer, a director and majority shareholder. The

loan is repayable on demand and as at September 30, 2012, the principal balance

owed was $125,837 with accrued interest of $8,533.

 

Interest is accrued on the loan at 8%.

XML 28 R23.htm IDEA: XBRL DOCUMENT v2.4.0.6
STOCKHOLDERS' DEFICIT (Details) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Apr. 29, 2008
STOCKHOLDERS' DEFICIT [Abstract]      
Preferred Stock, shares authorized 10,000,000 10,000,000  
Preferred Stock, par value per share $ 0.0001 $ 0.0001  
Class A Common Stock, shares authorized 100,000,000 100,000,000  
Class A Common Stock, par value per share $ 0.0001 $ 0.0001  
Ratio of reverse split     3
Stock option plan, Class A common stock, shares authorized 75,000    
XML 29 R19.htm IDEA: XBRL DOCUMENT v2.4.0.6
GOING CONCERN AND LIQUIDITY (Details) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Sep. 30, 2011
Dec. 31, 2010
GOING CONCERN AND LIQUIDITY [Abstract]        
Cash and Cash Equivalents $ 25 $ 25 $ 5 $ 100
Liabilities 176,777 99,586    
Stockholders' deficit (176,752) (99,561)    
Working capital (176,752)      
Deficit accumulated during the development stage $ (176,851) $ (99,661)    
XML 30 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES
9 Months Ended
Sep. 30, 2012
INCOME TAXES [Abstract]  
INCOME TAXES

10. INCOME TAXES

 

We have had losses since our Inception (January 1, 2011), and therefore have not

been subject to federal or state income taxes since our Inception.

 

Following our reorganization into a holding company structure and the sales of

our subsidiary company, CCAPS, we disposed of the majority of our brought

forward net operating losses ("NOLS.")

 

Consequently, effective September 30, 2012, we had NOLS of approximately

$177,000, which expire in 2031 and 2032.

XML 31 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
RELATED PARTY TRANSACTIONS
9 Months Ended
Sep. 30, 2012
RELATED PARTY TRANSACTIONS [Abstract]  
RELATED PARTY TRANSACTIONS

8. RELATED PARTY TRANSACTIONS

 

As at September 30, 2012, we owed Mr. Cutler, our sole officer, a director and

majority shareholder, a principal balance of $125,837 with accrued interest of

$8,533.

 

During the nine months ended September 30, 2012, we accrued $45,000 (2011 -

$45,000) of Mr. Cutler's remuneration as payable to Burlingham Corporate

Finance, Inc. ("Burlingham") in the form of consulting fees. Mr. Cutler is the

principal shareholder of Burlingham.

XML 32 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
STOCKHOLDERS' DEFICIT
9 Months Ended
Sep. 30, 2012
STOCKHOLDERS' DEFICIT [Abstract]  
STOCKHOLDERS' DEFICIT

9. STOCKHOLDERS' DEFICIT:

 

Preferred Stock

 

We were authorized, without further action by the shareholders, to issue

10,000,000 shares of one or more series of preferred stock at a par value of

$0.0001, all of which is nonvoting. The Board of Directors may, without

shareholder approval, determine the dividend rates, redemption prices,

preferences on liquidation or dissolution, conversion rights, voting rights and

any other preferences.

 

No shares of preferred stock were issued or outstanding during the three and

nine month periods ended September 30, 2012 and 2011.

 

Common Stock

 

We were authorized to issue 100,000,000 shares of common stock, par value

$0.0001 per share.

 

On April 29, 2008, we held our annual meeting of stockholders at which meeting

the majority of stockholders approved, an up to 3 for 1 reverse split of our

shares of common stock. No such reverse split has been effected as yet.

 

Recent Issuances

 

No shares of our common stock were issued in the three and nine month periods

ended September 30, 2012 or 2011.

 

Warrants

 

No warrants were issued or outstanding during the three and nine month periods

ended September 30, 2012 or 2011.

 

Stock Options

 

Effective March 19, 1999, we adopted a stock option plan (the "Plan"). The Plan

provides for grants of incentive stock options, nonqualified stock options and

restricted stock to designated employees, officers, directors, advisors and

independent contractors. The Plan authorized the issuance of up to 75,000 shares

of Class A Common Stock. Under the Plan, the exercise price per share of a

non-qualified stock option must be equal to at least 50% of the fair market

value of the common stock at the grant date, and the exercise price per share of

an incentive stock option must equal the fair market value of the common stock

at the grant date.

 

No stock options were issued or outstanding during the three and nine month

periods ended September 30, 2012 or 2011.

XML 33 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUBSEQUENT EVENTS
9 Months Ended
Sep. 30, 2012
SUBSEQUENT EVENTS [Abstract]  
SUBSEQUENT EVENTS

11. SUBSEQUENT EVENTS

 

We have evaluated subsequent events through October 31, 2012. Other than those

set out above, there have been no subsequent events after September 30, 2012 for

which disclosure is required.

XML 34 R21.htm IDEA: XBRL DOCUMENT v2.4.0.6
RELATED PARTY LOAN (Details) (USD $)
9 Months Ended
Sep. 30, 2012
RELATED PARTY TRANSACTIONS [Abstract]  
Principal amount of loan at end of current fiscal quarter $ 125,837
Interest expense, related parties $ 8,533
Stated interest rate on related party debt 8.00%
XML 35 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
STATEMENTS OF CASH FLOWS (USD $)
9 Months Ended 21 Months Ended
Sep. 30, 2012
Sep. 30, 2011
Sep. 30, 2012
CASH FLOW PROVIDED BY / (USED IN) OPERATING ACTIVITIES      
NET PROFIT / (LOSS) $ (77,191) $ (77,805) $ (176,851)
ADJUSTMENTS TO RECONCILE NET PROFIT / (LOSS) TO NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES      
Compensatory loan increases 45,000 45,000 105,000
CHANGES IN OPERATING ASSETS & LIABILITIES      
Increase / (decrease) in Accounts Payable 17,551 19,766 42,407
Increase / (decrease) in Accrued Expenses - Related Party 5,833 1,456 8,533
Total Cash Flow provided by / (used in) Operating Activities (8,807) (11,583) (20,911)
CASH FLOW FROM INVESTING ACTIVITIES      
Total Cash Flow provided by / (used in) Investing Activities         
CASH FLOW FROM FINANCING ACTIVITIES      
Increase in Related Party Loan 8,807 11,488 20,836
Total Cash Flow provided by / (used in) Financing Activities 8,807 11,488 20,836
INCREASE / (DECREASE) IN CASH & CASH EQUIVALENTS    (95) (75)
Cash and Cash Equivalents at the beginning of the period 25 100 100
Cash and Cash Equivalents at the end of the period 25 5 25
NON-CASH INVESTING AND FINANCING ACTIVITIES      
Related party loans 45,000 45,000 90,000
SUPPLEMENTAL SCHEDULE OF CASH FLOW INFORMATION      
Cash paid for interest         
Cash paid for income tax         
XML 36 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
ACCRUED EXPENSES
9 Months Ended
Sep. 30, 2012
ACCRUED EXPENSES [Abstract]  
ACCRUED EXPENSES

5. ACCRUED EXPENSES

 

As at September 30, 2012, the balance of accrued expenses represents interest

payable on our related party loan (See Note 6.).

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ASSETS (Details) (USD $)
Sep. 30, 2012
Dec. 31, 2011
Sep. 30, 2011
Dec. 31, 2010
ASSETS [Abstract]        
Cash and Cash Equivalents $ 25 $ 25 $ 5 $ 100