0001072588-12-000062.txt : 20120507 0001072588-12-000062.hdr.sgml : 20120507 20120504173522 ACCESSION NUMBER: 0001072588-12-000062 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 8 CONFORMED PERIOD OF REPORT: 20120331 FILED AS OF DATE: 20120507 DATE AS OF CHANGE: 20120504 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: 12815439 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 gdhc10q033112.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 MARCH 31, 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 April 27, 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 March 31, 2012 (Unaudited) and December 31, 2011 (Audited) 3 Statements of Operations For the three Month Periods Ended March 31, 2012 and 2011 and the Period from Inception (January 1, 2011) Through March 31, 2012 4 Statements of Cash Flows For the three Month Periods Ended March 31, 2012 and 2011 and the Period from Inception (January 1, 2011) Through March 31, 2012 5 Notes to Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 12 Item 3. Quantitative and Qualitative Disclosures About Market Risk 20 Item 4. Controls and Procedures 20 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 21 Item 5. Other Information 21 Item 6. Exhibits 21 SIGNATURES 22 2
GOLDEN DRAGON HOLDINGS CO. A DEVELOPMENT STAGE COMPANY BALANCE SHEETS MARCH 31, 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 $ 38,618 $ 24,857 Accrued Expenses 4,262 2,700 Related Party Loan 92,629 72,029 --------------- ----------------- Total Current Liabilities 135,509 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 March 31, 2011 and December 31, 2010, 2,384,407 shares issued and outstanding as at March 31, 2011 and December 31, 2010 Additional Paid In Capital 16,874,642 16,874,642 Accumulated Deficit (including $(135,584) and $ (99,661) respectively during the development stage) (17,010,365) (16,974,442) --------------- ----------------- Total Stockholders' (Deficit) (135,484) (99,561) --------------- ----------------- TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) $ 25 $ 25 =============== =================
See Accompanying Notes to Financial Statements. 3
GOLDEN DRAGON HOLDING CO. A DEVELOPMENT STAGE COMPANY STATEMENTS OF OPERATIONS (Unaudited) FROM INCEPTION OF DEVELOPMENT STAGE (JANUARY 1, 2011) FOR THREE MONTHS ENDED THROUGH MARCH 31, MARCH 31, 2012 2011 2012 -------------- --------------- ------------- OPERATING EXPENSES General & Administrative Expenses $ 34,361 $ 15,477 $ 131,463 -------------- --------------- ------------- Total Operating Expenses 34,361 15,477 131,463 -------------- --------------- ------------- OPERATING LOSS (34,361) (15,477) (131,463) Interest and Other Income / (Expenses) Net (1,562) (99) (4,121) -------------- --------------- ------------- Loss before Income Taxes (35,923) (15,576) (135,584) Provision for Income Taxes - - - -------------- --------------- ------------- NET LOSS $ (35,923) $ (15,576) $ (135,584) ============== =============== ============= NET LOSS PER COMMON SHARE Basic & Diluted ($0.02) ($0.01) ============== =============== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic & Diluted 2,384,407 2,384,407 ============== ===============
See Accompanying Notes to Financial Statements. 4
GOLDEN DRAGON HOLDING CO. A DEVELOPMENT STAGE COMPANY STATEMENTS OF CASH FLOWS (Unaudited) FROM INCEPTION OF DEVELOPMENT STAGE (JANUARY 1, 2011) FOR THE THREE MONTHS ENDED THROUGH MARCH 31, MARCH 31, 2012 2011 2012 ------------ ------------- ---------- CASH FLOW PROVIDED BY / (USED IN) OPERATING ACTIVITIES NET PROFIT / (LOSS) $ (35,923) $ (15,576) $ (135,584) ADJUSTMENTS TO RECONCILE NET PROFIT / (LOSS) TO NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES Compensatory loan increases 15,000 15,000 75,000 CHANGES IN OPERATING ASSETS & LIABILITIES Increase / (decrease) in Accounts Payable 13,760 476 38,617 Increase / (decrease) in Accrued Expenses - Related Party 1,563 100 4,263 ------------ ------------- ---------- Total Cash Flow provided by / (used in) Operating Activities (5,600) - (17,704) ------------ ------------- ---------- CASH FLOW FROM INVESTING ACTIVITIES - - - ------------ ------------- ---------- Total Cash Flow provided by / (used in) Investing Activities - - - ------------ ------------- ---------- CASH FLOW FROM FINANCING ACTIVITIES Increase in Related Party Loan 5,600 - 17,629 ------------ ------------- ---------- Total Cash Flow provided by / (used in) Financing Activities 5,600 - 17,629 ------------ ------------- ---------- INCREASE / (DECREASE) IN CASH & CASH EQUIVALENTS $ 0 $ - $ (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 $ 100 $ 25 ============ ============= ========== NON-CASH INVESTING AND FINANCING ACTIVITIES Related party loans $ 15,000 $ 15,000 $ 75,000 ------------ ------------- ---------- SUPPLEMENTAL SCHEDULE OF CASH FLOW INFORMATION Cash paid for interest $ - $ - $ - ============ ============= ========== Cash paid for income tax $ - $ - $ - ============ ============= ==========
See Accompanying Notes to Financial Statements. 5 PART I ITEM 1. FINANCIAL STATEMENTS GOLDEN DRAGON HOLDING CO. A DEVELOPMENT STAGE COMPANY NOTES TO FINANCIAL STATEMENTS MARCH 31, 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 Statement of Financial Accounting Standards ("SFAS") No. 7, "Accounting and Reporting by Development Stage Enterprises" now referred to as 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 months ended March 31, 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 Statement of Financial Accounting Standards ("SFAS") No. 7, "Accounting and Reporting by Development Stage Enterprises" now referred to as 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 months ended March 31, 2012 or 2011 and consequently we recorded no depreciation expense during the three months ended March 31, 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 March 31, 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. 8 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 months ended March 31, 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 months ended March 31, 2012 and 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 months ended March 31, 2012 and 2011 as we had no stock options or warrants outstanding during those periods. Stock-Based Compensation -- We have adopted ASC Topic 718 (formerly SFAS 123R), "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 months ending March 31, 2012 or 2011. 9 Business Segments -- We believe that our activities during the three months ended March 31, 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. 2. GOING CONCERN AND LIQUIDITY: At March 31, 2011, we had cash of $25, no other assets, no operating business or other source of income, outstanding liabilities totaling $135,509 and a stockholders' deficit of $135,484. 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 months ended March 31, 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 $135,484 and reported an accumulated deficit since Inception (January 1, 2011) of $135,584 as at March 31, 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 March 31, 2012 and December 31, 2011, our sole asset was Cash and Cash Equivalents of $25. 4. ACCOUNTS PAYABLE As at March 31, 2012, the balance of accounts payable represents legal fees payable. 5. ACCRUED EXPENSES As at March 31, 2012, the balance of accrued expenses represents interest payable on our related party loan (See Note 6.). 10 6. RELATED PARTY LOAN As at March 31, 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 at March 31, 2011, the principal balance owed was $92,629 with accrued interest of $4,262. Interest is accrued on the loan at 8%. 7. COMMITMENTS: Capital and Operating Leases We had no capital or operating leases outstanding as at March 31, 2012. Litigation No legal proceedings are currently pending or threatened to the best of our knowledge. 8. RELATED PARTY TRANSACTIONS As at March 31, 2012, we owed Mr. Cutler, our sole officer, a director and majority shareholder, $96,891 including accrued interest of $4,262. During the three months ended March 31, 2012, we accrued $15,000 (2011 - $15,000) 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 month periods ended March 31, 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. 11 Recent Issuances No shares of our common stock were issued in the three months ended March 31, 2012 or 2011. Warrants No warrants were issued or outstanding during the three months ended March 31, 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 months ended March 31, 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. Consequently, effective March 31, 2012, we had NOLS of approximately $136,000, which expire in 2031 and 2032. 11. SUBSEQUENT EVENTS We have evaluated subsequent events through April 27, 2012. Other than those set out above, there have been no subsequent events after March 31, 2012 for which disclosure is required. 12 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. 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 13 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. 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. 14 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. 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. 15 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 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. 16 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. 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 March 31, 2012, we had cash of $25, no other assets, no operating business or other source of income, outstanding liabilities totaling $135,509 and a stockholders' deficit of $135,484. 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. 17 Our unaudited financial statements for the three months ended March 31, 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 $135,484 and reported an accumulated deficit since Inception (January 1, 2011) of $135,584 as at March 31, 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. RESULTS OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2012 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 2011 Revenue During the three months ended March 31, 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 March 31, 2012, we incurred $34,361 in general and administrative expenses compared to $15,477 in the three months ended March 31, 2011, an increase of $18,884. The increase was largely due to the fact that in the three months ended March 31, 2012 we incurred legal and accounting fees which we did not incur in the three months ended March 31, 2011. Interest Expense We recognized an interest expense of $1,562 during the three months ended March 31, 2012, compared to $99 during the three months ended March 31, 2011, an increase of $1,463. 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 March 31, 2012, we recognized a loss before income tax of $35,293 compared to a loss before income tax of $15,576 in the three months ended March 31, 2011, an increase of $19,717 due to the factors discussed above. Provision for Income Taxes No provision for income taxes was required in the three months ended March 31, 2012 or 2011 as we generated tax losses both periods. 18 Net Profit / (Loss) and Comprehensive Profit / (Loss) In the three months ended March 31, 2012, we recognized a net loss of $35,293 compared to net a loss of $15,576 in the three months ended March 31, 2011, an increase of $19,717 due to the factors discussed above. The comprehensive loss was identical to the net loss in both the three months ended March 31, 2012 and 2011. CASH FLOW INFORMATION FOR THE THREE MONTHS ENDED MARCH 31, 2012 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 2011 At March 31, 2012, we had cash of $25, no other assets, no operating business or other source of income, outstanding liabilities totaling $135,509 and a stockholders' deficit of $135,484. 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 months ended March 31, 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 $135,484 and reported an accumulated deficit since Inception (January 1, 2011) of $135,584 as at March 31, 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. During the three months ended March 31, 2012, we did not have a bank account, although we did hold a balance of $100 in cash during the three months ended March 31, 2011 arising from the proceeds on the sale of our subsidiary company, CCAPS. Consequently, there were no movements in cash flow in the three months ended March 31, 2011. Similarly there were no movements in cash flow in the three months ended March 31, 2012 as all our costs we paid for directly by Mr. Cutler, an officer, director and shareholder of the Company. Net cash used in operations for the three months ended March 31, 2012 was $5,600 compared to $0 in the three months ended March 31, 2011, an increase of $5,600. In the three months ended March 31, 2012, our net losses were $35,923, which we partially offset by a $15,000 non-cash item relating to compensatory loan increases and by a net positive movement of $15,324 in our accounts payable and accrued expenses. This does not represent an actual outflow of cash on our part. 19 In the three months ended March 31, 2011, our net losses were $15,576, which were offset by a $15,000 non-cash item relating to compensatory loan increases and by a net positive movement of $576 in our accounts payable and accrued expenses. This does not represent an actual outflow of cash on our part. No cash was provided by, or used in, investing activities during the three months ended March 31, 2012 and 2011. During the three months ended March 31, 2012, the Company received $5,600 from its financing activities by way of loan from a related party compared to $0 in the three months ended March 31, 2011. This increase in the related party during the three months ended March 31, 2012 was a result of the payment of liabilities and expenses on our behalf by a director of the Company. ITEM 3. QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. As a "smaller reporting company" as defined by Item 10 of Regulation S-K, the Company is 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 March 31, 2012, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. 20 PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS We were not subject to any legal proceedings during the three months ended March 31, 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 months ended March 31, 2012. ITEM 3. DEFAULTS UPON SENIOR SECURITIES None. 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. 21 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: May 4, 2012 By: /s/ DAVID J. CUTLER ----------------------------- David J Cutler Chief Executive Officer & Chief Financial Officer 22
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 Company as of, and for, the periods presented in this report; 4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the Company and have: a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision to ensure that material information relating to the 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 the Company's 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; and 5. I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Company's auditors and the audit committee of the Company's board of directors (or persons performing the equivalent functions): a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Company's ability to record, process, summarize and report financial information; and b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company's internal control over financial reporting. Date: May 4, 2012 /s/ David J. Cutler --------------------------------------------- David J. Cutler, Chief Executive Officer and Chief Financial Officer (Principal Executive & Accounting Officer) EX-32 3 ex32-1.txt Exhibit 32.1 CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER 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 accompanying Quarterly Report on Form 10- Q of Golden Dragon Holding Co. for the quarterly ended March 31, 2012, I, David J. Cutler, Principal Executive and Accounting Officer of Concord Ventures, Inc., hereby certifies pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, to my knowledge, that: a) such Quarterly Report on Form 10-Q of Golden Dragon Holding Co. for the quarter ended March 31, 2012, fully complies with the require- ments of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and b) the information contained in such Quarterly Report on Form 10-Q of Golden Dragon Holding Co. for the quarter ended March 31, 2012, fairly presents, in all material respects, the financial condition and results of operations of Golden Dragon Holding Co. Date: May 4, 2012 /s/ David J. Cutler ----------------------------------------- David J. Cutler, Chief Executive Officer and Chief Financial Officer (Principal Executive and 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-20120331.xml false --12-31 Q1 2012 2012-03-31 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: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ASSETS</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> As&nbsp;at&nbsp;March&nbsp;31,&nbsp;2012&nbsp;and&nbsp;&nbsp;December&nbsp;&nbsp;31,&nbsp;&nbsp;2011,&nbsp;&nbsp;our&nbsp;sole&nbsp;asset&nbsp;was&nbsp;Cash&nbsp;and&nbsp;Cash</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Equivalents&nbsp;of&nbsp;$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: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;GOING&nbsp;CONCERN&nbsp;AND&nbsp;LIQUIDITY:</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> At&nbsp;March&nbsp;31,&nbsp;2011,&nbsp;we&nbsp;had&nbsp;cash&nbsp;of&nbsp;$25,&nbsp;no&nbsp;other&nbsp;assets,&nbsp;no&nbsp;operating&nbsp;business&nbsp;or</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> other&nbsp;&nbsp;source&nbsp;&nbsp;of&nbsp;&nbsp;income,&nbsp;&nbsp;outstanding&nbsp;&nbsp;liabilities&nbsp;&nbsp;totaling&nbsp;&nbsp;$135,509&nbsp;&nbsp;and&nbsp;&nbsp;a</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> stockholders&#39;&nbsp;deficit&nbsp;of&nbsp;$135,484.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> In&nbsp;our&nbsp;&nbsp;financial&nbsp;&nbsp;statements&nbsp;&nbsp;for&nbsp;the&nbsp;fiscal&nbsp;years&nbsp;ended&nbsp;&nbsp;December&nbsp;31,&nbsp;2011&nbsp;and</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 2010,&nbsp;the&nbsp;Report&nbsp;of&nbsp;the&nbsp;Independent&nbsp;&nbsp;Registered&nbsp;&nbsp;Public&nbsp;Accounting&nbsp;Firm&nbsp;includes</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> an&nbsp;explanatory&nbsp;&nbsp;paragraph&nbsp;that&nbsp;describes&nbsp;&nbsp;substantial&nbsp;doubt&nbsp;about&nbsp;our&nbsp;ability&nbsp;to</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> continue&nbsp;as&nbsp;a&nbsp;going&nbsp;concern.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Our&nbsp;unaudited&nbsp;financial&nbsp;statements&nbsp;for&nbsp;the&nbsp;three&nbsp;months&nbsp;ended&nbsp;March&nbsp;31,&nbsp;2012&nbsp;and</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 2011&nbsp;have&nbsp;&nbsp;been&nbsp;&nbsp;prepared&nbsp;&nbsp;on&nbsp;a&nbsp;going&nbsp;&nbsp;concern&nbsp;&nbsp;basis,&nbsp;&nbsp;which&nbsp;&nbsp;contemplates&nbsp;&nbsp;the</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> realization&nbsp;of&nbsp;assets&nbsp;and&nbsp;the&nbsp;settlement&nbsp;of&nbsp;liabilities&nbsp;&nbsp;and&nbsp;&nbsp;commitments&nbsp;in&nbsp;the</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> normal&nbsp;course&nbsp;of&nbsp;business.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> We&nbsp;had&nbsp;a&nbsp;working&nbsp;capital&nbsp;deficit&nbsp;of&nbsp;$135,484&nbsp;and&nbsp;reported&nbsp;an&nbsp;accumulated&nbsp;deficit</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> since&nbsp;Inception&nbsp;(January&nbsp;1,&nbsp;2011)&nbsp;of&nbsp;$135,584&nbsp;as&nbsp;at&nbsp;March&nbsp;31,&nbsp;2012.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> It&nbsp;is&nbsp;our&nbsp;current&nbsp;&nbsp;intention&nbsp;to&nbsp;seek&nbsp;to&nbsp;raise&nbsp;debt&nbsp;and,&nbsp;or,&nbsp;equity&nbsp;&nbsp;financing&nbsp;to</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> fund&nbsp;our&nbsp;&nbsp;ongoing&nbsp;&nbsp;operating&nbsp;&nbsp;expenses&nbsp;&nbsp;and&nbsp;&nbsp;attempt&nbsp;&nbsp;to&nbsp;&nbsp;create&nbsp;&nbsp;value&nbsp;&nbsp;for&nbsp;our</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> shareholders&nbsp;&nbsp;by&nbsp;merging&nbsp;with&nbsp;another&nbsp;&nbsp;entity&nbsp;with&nbsp;&nbsp;experienced&nbsp;&nbsp;management&nbsp;&nbsp;and</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> opportunities&nbsp;&nbsp;for&nbsp;growth&nbsp;in&nbsp;return&nbsp;for&nbsp;shares&nbsp;of&nbsp;our&nbsp;common&nbsp;stock.&nbsp;&nbsp;There&nbsp;is&nbsp;no</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> assurance&nbsp;that&nbsp;this&nbsp;series&nbsp;of&nbsp;events&nbsp;will&nbsp;be&nbsp;satisfactorily&nbsp;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: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;RELATED&nbsp;PARTY&nbsp;LOAN</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> As&nbsp;at&nbsp;March&nbsp;31,&nbsp;2011,&nbsp;the&nbsp;related&nbsp;party&nbsp;loan&nbsp;represents&nbsp;a&nbsp;loan&nbsp;made&nbsp;to&nbsp;us&nbsp;by&nbsp;Mr.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> David&nbsp;J.&nbsp;Cutler,&nbsp;our&nbsp;sole&nbsp;officer,&nbsp;a&nbsp;director&nbsp;and&nbsp;majority&nbsp;shareholder.&nbsp;The&nbsp;loan</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> is&nbsp;&nbsp;repayable&nbsp;on&nbsp;demand&nbsp;and&nbsp;at&nbsp;March&nbsp;31,&nbsp;2011,&nbsp;&nbsp;the&nbsp;&nbsp;principal&nbsp;&nbsp;balance&nbsp;owed&nbsp;was</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> $92,629&nbsp;with&nbsp;accrued&nbsp;interest&nbsp;of&nbsp;$4,262.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Interest&nbsp;is&nbsp;accrued&nbsp;on&nbsp;the&nbsp;loan&nbsp;at&nbsp;8%.</p> <!--EndFragment--></div> </div> 2384407 2384407 <!--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: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ACCRUED&nbsp;EXPENSES</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> As&nbsp;at&nbsp;March&nbsp;31,&nbsp;&nbsp;2012,&nbsp;&nbsp;the&nbsp;&nbsp;balance&nbsp;of&nbsp;&nbsp;accrued&nbsp;&nbsp;expenses&nbsp;&nbsp;represents&nbsp;&nbsp;interest</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> payable&nbsp;on&nbsp;our&nbsp;related&nbsp;party&nbsp;loan&nbsp;(See&nbsp;Note&nbsp;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: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ACCOUNTS&nbsp;PAYABLE</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> As&nbsp;at&nbsp;March&nbsp;31,&nbsp;&nbsp;2012,&nbsp;&nbsp;the&nbsp;balance&nbsp;of&nbsp;accounts&nbsp;&nbsp;payable&nbsp;&nbsp;represents&nbsp;&nbsp;legal&nbsp;fees</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> payable.</p> <!--EndFragment--></div> </div> 38618 24857 4262 2700 16874642 16874642 25 25 25 25 25 25 100 100 0 -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: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COMMITMENTS:</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Capital&nbsp;and&nbsp;Operating&nbsp;Leases</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> We&nbsp;had&nbsp;no&nbsp;capital&nbsp;or&nbsp;operating&nbsp;leases&nbsp;outstanding&nbsp;as&nbsp;at&nbsp;March&nbsp;31,&nbsp;2012.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Litigation</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> No&nbsp;legal&nbsp;&nbsp;proceedings&nbsp;&nbsp;are&nbsp;&nbsp;currently&nbsp;&nbsp;pending&nbsp;or&nbsp;&nbsp;threatened&nbsp;to&nbsp;the&nbsp;best&nbsp;of&nbsp;our</p> <p style="MARGIN: 0in 0in 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 135584 99661 92629 72029 -0.02 -0.01 34361 15477 131463 -35923 -15576 -135584 <!--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: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;INCOME&nbsp;TAXES</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> We&nbsp;have&nbsp;had&nbsp;losses&nbsp;since&nbsp;our&nbsp;Inception&nbsp;(January&nbsp;1,&nbsp;2011),&nbsp;and&nbsp;therefore&nbsp;have&nbsp;not</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> been&nbsp;subject&nbsp;to&nbsp;federal&nbsp;or&nbsp;state&nbsp;income&nbsp;taxes&nbsp;since&nbsp;our&nbsp;Inception.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Following&nbsp;our&nbsp;&nbsp;reorganization&nbsp;&nbsp;into&nbsp;a&nbsp;holding&nbsp;company&nbsp;structure&nbsp;and&nbsp;the&nbsp;sales&nbsp;of</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> our&nbsp;&nbsp;subsidiary&nbsp;&nbsp;company,&nbsp;&nbsp;CCAPS,&nbsp;&nbsp;we&nbsp;&nbsp;disposed&nbsp;&nbsp;of&nbsp;the&nbsp;&nbsp;majority&nbsp;of&nbsp;our&nbsp;brought</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> forward&nbsp;net&nbsp;operating&nbsp;losses.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Consequently,&nbsp;&nbsp;effective&nbsp;March&nbsp;31,&nbsp;2012,&nbsp;we&nbsp;had&nbsp;NOLS&nbsp;of&nbsp;approximately&nbsp;&nbsp;$136,000,</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> which&nbsp;expire&nbsp;in&nbsp;2031&nbsp;and&nbsp;2032.</p> <!--EndFragment--></div> </div> 13760 476 38617 1563 100 4263 25 25 135509 99586 5600 17629 -5600 -17704 -35923 -15576 -135584 -1562 -99 -4121 15000 15000 75000 34361 15477 131463 -34361 -15477 -131463 <!--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: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NATURE&nbsp;OF&nbsp;OPERATIONS&nbsp;AND&nbsp;SIGNIFICANT&nbsp;ACCOUNTING&nbsp;POLICIES:</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Nature&nbsp;of&nbsp;Operations</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Business</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Golden&nbsp;Dragon&nbsp;Holding&nbsp;Co.&nbsp;("Golden&nbsp;&nbsp;Dragon",&nbsp;&nbsp;"We"&nbsp;or&nbsp;"Us")&nbsp;is&nbsp;a&nbsp;publicly&nbsp;quoted</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> shell&nbsp;&nbsp;company&nbsp;&nbsp;seeking&nbsp;to&nbsp;create&nbsp;&nbsp;value&nbsp;for&nbsp;our&nbsp;&nbsp;shareholders&nbsp;&nbsp;by&nbsp;merging&nbsp;&nbsp;with</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> another&nbsp;&nbsp;entity&nbsp;with&nbsp;&nbsp;experienced&nbsp;&nbsp;management&nbsp;&nbsp;and&nbsp;&nbsp;opportunities&nbsp;&nbsp;for&nbsp;growth&nbsp;in</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> return&nbsp;for&nbsp;shares&nbsp;of&nbsp;our&nbsp;common&nbsp;stock.&nbsp;&nbsp;No&nbsp;potential&nbsp;&nbsp;merger&nbsp;&nbsp;candidate&nbsp;has&nbsp;been</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> identified&nbsp;at&nbsp;this&nbsp;time.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> We&nbsp;are&nbsp;a&nbsp;development&nbsp;&nbsp;stage&nbsp;enterprise&nbsp;in&nbsp;accordance&nbsp;with&nbsp;Statement&nbsp;of&nbsp;Financial</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Accounting&nbsp;&nbsp;Standards&nbsp;&nbsp;("SFAS")&nbsp;No.&nbsp;7,&nbsp;&nbsp;"Accounting&nbsp;and&nbsp;Reporting&nbsp;by&nbsp;Development</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Stage&nbsp;Enterprises"&nbsp;now&nbsp;referred&nbsp;to&nbsp;as&nbsp;ACS&nbsp;915&nbsp;"Development&nbsp;&nbsp;Stage&nbsp;Entities".&nbsp;&nbsp;We</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> have&nbsp;been&nbsp;in&nbsp;the&nbsp;development&nbsp;stage&nbsp;since&nbsp;Inception&nbsp;(January&nbsp;1,&nbsp;2011).</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> History</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Golden&nbsp;&nbsp;Dragon&nbsp;&nbsp;was&nbsp;&nbsp;incorporated&nbsp;&nbsp;in&nbsp;the&nbsp;State&nbsp;of&nbsp;&nbsp;Delaware&nbsp;&nbsp;in&nbsp;April&nbsp;2010&nbsp;as&nbsp;a</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> wholly&nbsp;owned&nbsp;subsidiary&nbsp;of&nbsp;Concord&nbsp;&nbsp;Ventures,&nbsp;&nbsp;Inc.&nbsp;&nbsp;("Concord").&nbsp;&nbsp;Concord&nbsp;was&nbsp;a</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> publicly&nbsp;&nbsp;quoted&nbsp;shell&nbsp;&nbsp;company&nbsp;with&nbsp;no&nbsp;assets,&nbsp;&nbsp;no&nbsp;operating&nbsp;&nbsp;business&nbsp;or&nbsp;other</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> source&nbsp;of&nbsp;income&nbsp;and&nbsp;liabilities&nbsp;in&nbsp;excess&nbsp;of&nbsp;$590,000.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Merger&nbsp;of&nbsp;Concord</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;In&nbsp;order&nbsp;for&nbsp;Concord&nbsp;to&nbsp;&nbsp;re-domicile&nbsp;in&nbsp;the&nbsp;State&nbsp;of&nbsp;Delaware&nbsp;from&nbsp;the&nbsp;State&nbsp;of</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Colorado,&nbsp;&nbsp;on&nbsp;September&nbsp;29,&nbsp;2010,&nbsp;&nbsp;Concord&nbsp;entered&nbsp;into&nbsp;an&nbsp;Agreement&nbsp;and&nbsp;Plan&nbsp;of</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Merger&nbsp;&nbsp;("the&nbsp;&nbsp;Merger&nbsp;&nbsp;Agreement")&nbsp;&nbsp;with&nbsp;&nbsp;one&nbsp;of&nbsp;&nbsp;its&nbsp;&nbsp;wholly&nbsp;&nbsp;owned&nbsp;&nbsp;subsidiary</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> companies,&nbsp;CCVG,&nbsp;Inc.&nbsp;("CCVG").&nbsp;Under&nbsp;the&nbsp;terms&nbsp;of&nbsp;the&nbsp;Merger&nbsp;Agreement,&nbsp;Concord</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> shares&nbsp;of&nbsp;common&nbsp;stock&nbsp;converted&nbsp;automatically&nbsp;to&nbsp;CCVG&nbsp;shares,&nbsp;without&nbsp;change&nbsp;or</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> necessity&nbsp;to&nbsp;reissue.&nbsp;Also&nbsp;under&nbsp;the&nbsp;Merger&nbsp;Agreement,&nbsp;CCVG&nbsp;became&nbsp;the&nbsp;surviving</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> company&nbsp;domiciled&nbsp;in&nbsp;Delaware.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Reorganization&nbsp;into&nbsp;a&nbsp;Holding&nbsp;Company&nbsp;Structure</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Effective&nbsp;December&nbsp;31,&nbsp;2010,&nbsp;&nbsp;pursuant&nbsp;to&nbsp;the&nbsp;Delaware&nbsp;Holding&nbsp;Company&nbsp;formation</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> statute,&nbsp;&nbsp;under&nbsp;&nbsp;Delaware&nbsp;&nbsp;General&nbsp;&nbsp;Corporate&nbsp;Law&nbsp;(DGCL)&nbsp;&nbsp;Section&nbsp;&nbsp;251(g),&nbsp;&nbsp;CCVG</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> completed&nbsp;&nbsp;an&nbsp;&nbsp;Agreement&nbsp;&nbsp;and&nbsp;Plan&nbsp;of&nbsp;Merger&nbsp;and&nbsp;&nbsp;Reorganization&nbsp;&nbsp;into&nbsp;a&nbsp;Holding</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Company&nbsp;("the&nbsp;&nbsp;Reorganization")&nbsp;&nbsp;with&nbsp;CCAPS,&nbsp;&nbsp;Inc.&nbsp;&nbsp;("CCAPS")&nbsp;and&nbsp;Golden&nbsp;Dragon,</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> both&nbsp;&nbsp;wholly-owned&nbsp;&nbsp;subsidiaries&nbsp;&nbsp;of&nbsp;CCVG.&nbsp;The&nbsp;&nbsp;Reorganization&nbsp;&nbsp;provided&nbsp;for&nbsp;the</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> merger&nbsp;of&nbsp;CCVG&nbsp;with&nbsp;and&nbsp;into&nbsp;CCAPS,&nbsp;&nbsp;with&nbsp;CCAPS&nbsp;being&nbsp;the&nbsp;surviving&nbsp;&nbsp;corporation</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> in&nbsp;that&nbsp;merger.&nbsp;&nbsp;Contemporaneously&nbsp;&nbsp;with&nbsp;CCVG&#39;s&nbsp;merger&nbsp;with&nbsp;and&nbsp;into&nbsp;CCAPS,&nbsp;&nbsp;the</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> shareholders&nbsp;of&nbsp;CCVG&nbsp;were&nbsp;converted&nbsp;into&nbsp;&nbsp;shareholders&nbsp;of&nbsp;Golden&nbsp;Dragon&nbsp;on&nbsp;a&nbsp;one</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> share&nbsp;for&nbsp;one&nbsp;share&nbsp;basis.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> As&nbsp;a&nbsp;result&nbsp;of&nbsp;this&nbsp;&nbsp;reorganization&nbsp;&nbsp;into&nbsp;a&nbsp;Holding&nbsp;&nbsp;Company&nbsp;&nbsp;structure,&nbsp;&nbsp;Golden</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Dragon&nbsp;became&nbsp;the&nbsp;surviving&nbsp;&nbsp;publicly&nbsp;&nbsp;quoted&nbsp;parent&nbsp;holding&nbsp;company&nbsp;with&nbsp;CCAPS,</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> the&nbsp;surviving&nbsp;&nbsp;corporation&nbsp;&nbsp;of&nbsp;the&nbsp;merger&nbsp;&nbsp;between&nbsp;CCVG&nbsp;and&nbsp;CCAPS,&nbsp;&nbsp;becoming&nbsp;the</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> sole&nbsp;remaining&nbsp;wholly-owned&nbsp;subsidiary&nbsp;of&nbsp;Golden&nbsp;Dragon.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> The&nbsp;&nbsp;Reorganization&nbsp;&nbsp;has&nbsp;been&nbsp;&nbsp;accounted&nbsp;for&nbsp;so&nbsp;as&nbsp;to&nbsp;reflect&nbsp;the&nbsp;fact&nbsp;that&nbsp;both</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> CCVG&nbsp;&nbsp;and&nbsp;&nbsp;Golden&nbsp;&nbsp;Dragon&nbsp;&nbsp;were&nbsp;&nbsp;under&nbsp;&nbsp;common&nbsp;&nbsp;&nbsp;control&nbsp;&nbsp;at&nbsp;&nbsp;the&nbsp;&nbsp;date&nbsp;&nbsp;of&nbsp;&nbsp;the</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Reorganization,&nbsp;&nbsp;similar&nbsp;&nbsp;to&nbsp;a&nbsp;reverse&nbsp;&nbsp;acquisition&nbsp;&nbsp;of&nbsp;CCVG&nbsp;and&nbsp;its&nbsp;&nbsp;subsidiary</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> company,&nbsp;CCAPS,&nbsp;by&nbsp;Golden&nbsp;Dragon.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Sale&nbsp;of&nbsp;CCAPS</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> On&nbsp;December&nbsp;31,&nbsp;2010,&nbsp;Golden&nbsp;Dragon&nbsp;entered&nbsp;into&nbsp;a&nbsp;Share&nbsp;Purchase&nbsp;Agreement&nbsp;with</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> an&nbsp;&nbsp;unrelated&nbsp;&nbsp;third&nbsp;&nbsp;party.&nbsp;&nbsp;Under&nbsp;the&nbsp;terms&nbsp;of&nbsp;the&nbsp;Share&nbsp;&nbsp;Purchase&nbsp;&nbsp;Agreement,</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Golden&nbsp;&nbsp;Dragon&nbsp;&nbsp;sold&nbsp;&nbsp;100%&nbsp;of&nbsp;the&nbsp;&nbsp;issued&nbsp;&nbsp;and&nbsp;&nbsp;outstanding&nbsp;&nbsp;shares&nbsp;&nbsp;of&nbsp;its&nbsp;sole</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> remaining&nbsp;wholly&nbsp;owned&nbsp;subsidiary,&nbsp;CCAPS&nbsp;for&nbsp;$100&nbsp;cash&nbsp;consideration,&nbsp;subject&nbsp;to</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> its&nbsp;debts,&nbsp;&nbsp;and&nbsp;issued&nbsp;25,000&nbsp;&nbsp;restricted&nbsp;&nbsp;shares&nbsp;of&nbsp;Golden&nbsp;Dragon&nbsp;common&nbsp;stock,</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> valued&nbsp;&nbsp;at&nbsp;&nbsp;$1,000,&nbsp;&nbsp;to&nbsp;&nbsp;CCAPS&nbsp;&nbsp;pursuant&nbsp;&nbsp;to&nbsp;the&nbsp;&nbsp;terms&nbsp;&nbsp;of&nbsp;the&nbsp;&nbsp;Share&nbsp;&nbsp;Purchase</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Agreement.&nbsp;&nbsp;At&nbsp;the&nbsp;time&nbsp;of&nbsp;the&nbsp;sale,&nbsp;&nbsp;CCAPS&nbsp;had&nbsp;no&nbsp;ongoing&nbsp;&nbsp;operations&nbsp;or&nbsp;assets</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> and&nbsp;outstanding&nbsp;liabilities&nbsp;of&nbsp;approximately&nbsp;$678,000.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Following&nbsp;&nbsp;the&nbsp;&nbsp;merger&nbsp;&nbsp;of&nbsp;CCVG&nbsp;with&nbsp;and&nbsp;into&nbsp;&nbsp;CCAPS,&nbsp;&nbsp;CCAPS,&nbsp;&nbsp;as&nbsp;the&nbsp;&nbsp;surviving</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> corporation&nbsp;in&nbsp;that&nbsp;merger,&nbsp;&nbsp;retained&nbsp;all&nbsp;outstanding&nbsp;liabilities&nbsp;of&nbsp;CCVG&nbsp;in&nbsp;the</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> divestiture.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> As&nbsp;a&nbsp;result&nbsp;of&nbsp;the&nbsp;sale&nbsp;of&nbsp;100%&nbsp;of&nbsp;the&nbsp;issued&nbsp;and&nbsp;&nbsp;outstanding&nbsp;&nbsp;shares&nbsp;of&nbsp;CCAPS,</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Golden&nbsp;Dragon,&nbsp;&nbsp;the&nbsp;surviving&nbsp;&nbsp;publicly&nbsp;quoted&nbsp;holding&nbsp;&nbsp;company,&nbsp;&nbsp;will&nbsp;no&nbsp;longer</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> consolidate&nbsp;the&nbsp;liabilities&nbsp;of&nbsp;CCAPS&nbsp;or&nbsp;CCVG.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Basis&nbsp;of&nbsp;Presentation:</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> The&nbsp;&nbsp;accompanying&nbsp;&nbsp;unaudited&nbsp;&nbsp;financial&nbsp;&nbsp;statements&nbsp;&nbsp;of&nbsp;Golden&nbsp;&nbsp;Dragon&nbsp;have&nbsp;been</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> prepared&nbsp;in&nbsp;accordance&nbsp;with&nbsp;generally&nbsp;accepted&nbsp;accounting&nbsp;principles&nbsp;for&nbsp;interim</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> financial&nbsp;&nbsp;information&nbsp;and&nbsp;with&nbsp;the&nbsp;&nbsp;instructions&nbsp;to&nbsp;Form&nbsp;10-Q&nbsp;and&nbsp;Article&nbsp;10&nbsp;of</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Regulation&nbsp;&nbsp;S-X.&nbsp;&nbsp;Accordingly,&nbsp;&nbsp;they&nbsp;do&nbsp;not&nbsp;include&nbsp;all&nbsp;of&nbsp;the&nbsp;&nbsp;information&nbsp;&nbsp;and</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> footnotes&nbsp;&nbsp;required&nbsp;by&nbsp;generally&nbsp;&nbsp;accepted&nbsp;&nbsp;accounting&nbsp;&nbsp;principles&nbsp;&nbsp;for&nbsp;complete</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> financial&nbsp;&nbsp;statements.&nbsp;&nbsp;In&nbsp;our&nbsp;&nbsp;opinion&nbsp;&nbsp;the&nbsp;&nbsp;financial&nbsp;&nbsp;statements&nbsp;&nbsp;include&nbsp;all</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> adjustments&nbsp;(consisting&nbsp;of&nbsp;normal&nbsp;recurring&nbsp;accruals)&nbsp;necessary&nbsp;in&nbsp;order&nbsp;to&nbsp;make</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> the&nbsp;financial&nbsp;statements&nbsp;not&nbsp;misleading.&nbsp;&nbsp;Operating&nbsp;results&nbsp;for&nbsp;the&nbsp;three&nbsp;months</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> ended&nbsp;March&nbsp;31,&nbsp;2012&nbsp;are&nbsp;not&nbsp;&nbsp;necessarily&nbsp;&nbsp;indicative&nbsp;of&nbsp;the&nbsp;results&nbsp;that&nbsp;may&nbsp;be</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> expected&nbsp;&nbsp;for&nbsp;the&nbsp;year&nbsp;ended&nbsp;&nbsp;December&nbsp;&nbsp;31,&nbsp;2012.&nbsp;&nbsp;For&nbsp;more&nbsp;&nbsp;complete&nbsp;&nbsp;financial</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> information,&nbsp;&nbsp;these&nbsp;unaudited&nbsp;financial&nbsp;statements&nbsp;should&nbsp;be&nbsp;read&nbsp;in&nbsp;conjunction</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> with&nbsp;the&nbsp;&nbsp;audited&nbsp;&nbsp;financial&nbsp;&nbsp;statements&nbsp;&nbsp;for&nbsp;the&nbsp;year&nbsp;ended&nbsp;&nbsp;December&nbsp;&nbsp;31,&nbsp;2011</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> included&nbsp;in&nbsp;our&nbsp;Form&nbsp;10-K&nbsp;filed&nbsp;with&nbsp;the&nbsp;SEC.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Significant&nbsp;Accounting&nbsp;Policies:</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Development&nbsp;&nbsp;Stage&nbsp;Company&nbsp;-&nbsp;We&nbsp;are&nbsp;a&nbsp;development&nbsp;stage&nbsp;enterprise&nbsp;in&nbsp;accordance</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> with&nbsp;Statement&nbsp;of&nbsp;Financial&nbsp;Accounting&nbsp;Standards&nbsp;("SFAS")&nbsp;No.&nbsp;7,&nbsp;"Accounting&nbsp;and</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Reporting&nbsp;&nbsp;by&nbsp;&nbsp;Development&nbsp;&nbsp;Stage&nbsp;&nbsp;Enterprises"&nbsp;&nbsp;now&nbsp;&nbsp;referred&nbsp;&nbsp;to&nbsp;&nbsp;as&nbsp;&nbsp;ACS&nbsp;&nbsp;915</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> "Development&nbsp;&nbsp;Stage&nbsp;&nbsp;Entities".&nbsp;&nbsp;We&nbsp;have&nbsp;&nbsp;been&nbsp;in&nbsp;the&nbsp;&nbsp;development&nbsp;&nbsp;stage&nbsp;&nbsp;since</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Inception&nbsp;&nbsp;(January&nbsp;1,&nbsp;2011).&nbsp;&nbsp;Among&nbsp;the&nbsp;&nbsp;disclosures&nbsp;&nbsp;required&nbsp;as&nbsp;a&nbsp;development</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> stage&nbsp;company&nbsp;are&nbsp;that&nbsp;our&nbsp;&nbsp;financial&nbsp;&nbsp;statements&nbsp;&nbsp;are&nbsp;&nbsp;identified&nbsp;as&nbsp;those&nbsp;of&nbsp;a</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> development&nbsp;stage&nbsp;company,&nbsp;and&nbsp;that&nbsp;the&nbsp;statements&nbsp;of&nbsp;operations,&nbsp;&nbsp;stockholders&#39;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> deficit&nbsp;&nbsp;and&nbsp;cash&nbsp;&nbsp;flows&nbsp;&nbsp;disclose&nbsp;&nbsp;activity&nbsp;&nbsp;since&nbsp;&nbsp;the&nbsp;&nbsp;date&nbsp;of&nbsp;our&nbsp;&nbsp;Inception</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> (January&nbsp;1,&nbsp;2011)&nbsp;as&nbsp;a&nbsp;development&nbsp;stage&nbsp;company.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Use&nbsp;of&nbsp;Estimates&nbsp;--&nbsp;The&nbsp;preparation&nbsp;of&nbsp;our&nbsp;consolidated&nbsp;&nbsp;financial&nbsp;statements&nbsp;in</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> conformity&nbsp;with&nbsp;generally&nbsp;accepted&nbsp;accounting&nbsp;&nbsp;principles&nbsp;requires&nbsp;management&nbsp;to</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> make&nbsp;&nbsp;estimates&nbsp;&nbsp;and&nbsp;&nbsp;assumptions&nbsp;&nbsp;that&nbsp;&nbsp;affect&nbsp;the&nbsp;&nbsp;amounts&nbsp;&nbsp;reported&nbsp;&nbsp;in&nbsp;these</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> financial&nbsp;&nbsp;statements&nbsp;and&nbsp;accompanying&nbsp;&nbsp;notes.&nbsp;&nbsp;Actual&nbsp;results&nbsp;could&nbsp;differ&nbsp;from</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> those&nbsp;estimates.&nbsp;&nbsp;Due&nbsp;to&nbsp;uncertainties&nbsp;inherent&nbsp;in&nbsp;the&nbsp;estimation&nbsp;process,&nbsp;it&nbsp;is</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> possible&nbsp;that&nbsp;these&nbsp;estimates&nbsp;could&nbsp;be&nbsp;materially&nbsp;revised&nbsp;within&nbsp;the&nbsp;next&nbsp;year.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Cash&nbsp;and&nbsp;Cash&nbsp;&nbsp;Equivalents&nbsp;&nbsp;--&nbsp;Cash&nbsp;and&nbsp;&nbsp;cash&nbsp;&nbsp;equivalents&nbsp;&nbsp;consist&nbsp;&nbsp;of&nbsp;cash&nbsp;and</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> highly&nbsp;&nbsp;liquid&nbsp;debt&nbsp;&nbsp;instruments&nbsp;&nbsp;with&nbsp;&nbsp;original&nbsp;&nbsp;maturities&nbsp;&nbsp;of&nbsp;less&nbsp;than&nbsp;three</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> months.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Property&nbsp;and&nbsp;&nbsp;Equipment&nbsp;--&nbsp;We&nbsp;owned&nbsp;no&nbsp;property&nbsp;and&nbsp;&nbsp;equipment&nbsp;&nbsp;during&nbsp;the&nbsp;three</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> months&nbsp;ended&nbsp;March&nbsp;31,&nbsp;2012&nbsp;or&nbsp;2011&nbsp;and&nbsp;consequently&nbsp;we&nbsp;recorded&nbsp;no&nbsp;depreciation</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> expense&nbsp;during&nbsp;the&nbsp;three&nbsp;months&nbsp;ended&nbsp;March&nbsp;31,&nbsp;2012&nbsp;or&nbsp;2011.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Deferred&nbsp;&nbsp;Costs&nbsp;and&nbsp;Other&nbsp;--&nbsp;&nbsp;Offering&nbsp;&nbsp;costs&nbsp;&nbsp;with&nbsp;&nbsp;respect&nbsp;&nbsp;to&nbsp;issue&nbsp;of&nbsp;common</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> stock,&nbsp;&nbsp;warrants&nbsp;or&nbsp;options&nbsp;by&nbsp;us&nbsp;were&nbsp;initially&nbsp;&nbsp;deferred&nbsp;and&nbsp;ultimately&nbsp;offset</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> against&nbsp;the&nbsp;proceeds&nbsp;from&nbsp;these&nbsp;equity&nbsp;transactions&nbsp;if&nbsp;successful&nbsp;or&nbsp;expensed&nbsp;if</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> the&nbsp;proposed&nbsp;equity&nbsp;&nbsp;transaction&nbsp;is&nbsp;&nbsp;unsuccessful.&nbsp;&nbsp;We&nbsp;had&nbsp;no&nbsp;deferred&nbsp;costs&nbsp;and</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> other&nbsp;as&nbsp;at&nbsp;March&nbsp;31,&nbsp;2012&nbsp;or&nbsp;2011.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Impairment&nbsp;of&nbsp;Long-Lived&nbsp;&nbsp;and&nbsp;&nbsp;Intangible&nbsp;&nbsp;Assets&nbsp;--&nbsp;In&nbsp;the&nbsp;event&nbsp;that&nbsp;facts&nbsp;and</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> circumstances&nbsp;indicated&nbsp;that&nbsp;the&nbsp;cost&nbsp;of&nbsp;long-lived&nbsp;and&nbsp;intangible&nbsp;assets&nbsp;may&nbsp;be</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> impaired,&nbsp;&nbsp;an&nbsp;evaluation&nbsp;of&nbsp;recoverability&nbsp;&nbsp;was&nbsp;performed.&nbsp;&nbsp;If&nbsp;an&nbsp;evaluation&nbsp;was</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> required,&nbsp;the&nbsp;estimated&nbsp;future&nbsp;undiscounted&nbsp;cash&nbsp;flows&nbsp;associated&nbsp;with&nbsp;the&nbsp;asset</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> were&nbsp;&nbsp;compared&nbsp;to&nbsp;the&nbsp;asset&#39;s&nbsp;&nbsp;carrying&nbsp;&nbsp;amount&nbsp;to&nbsp;determine&nbsp;if&nbsp;a&nbsp;write-down&nbsp;&nbsp;to</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> market&nbsp;value&nbsp;or&nbsp;discounted&nbsp;cash&nbsp;flow&nbsp;value&nbsp;was&nbsp;required.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Financial&nbsp;Instruments&nbsp;--&nbsp;The&nbsp;estimated&nbsp;fair&nbsp;values&nbsp;for&nbsp;financial&nbsp;instruments&nbsp;was</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> determined&nbsp;&nbsp;at&nbsp;&nbsp;discrete&nbsp;&nbsp;points&nbsp;in&nbsp;time&nbsp;based&nbsp;on&nbsp;relevant&nbsp;&nbsp;market&nbsp;&nbsp;information.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> These&nbsp;&nbsp;estimates&nbsp;&nbsp;involved&nbsp;&nbsp;uncertainties&nbsp;&nbsp;and&nbsp;&nbsp;could&nbsp;&nbsp;not&nbsp;&nbsp;be&nbsp;&nbsp;determined&nbsp;&nbsp;with</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> precision.&nbsp;&nbsp;The&nbsp;&nbsp;carrying&nbsp;&nbsp;amounts&nbsp;&nbsp;of&nbsp;notes&nbsp;&nbsp;receivable,&nbsp;&nbsp;accounts&nbsp;&nbsp;receivable,</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> accounts&nbsp;payable&nbsp;and&nbsp;accrued&nbsp;liabilities&nbsp;&nbsp;approximated&nbsp;fair&nbsp;value&nbsp;because&nbsp;of&nbsp;the</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> short-term&nbsp;&nbsp;maturities&nbsp;&nbsp;of&nbsp;these&nbsp;&nbsp;instruments.&nbsp;&nbsp;The&nbsp;fair&nbsp;value&nbsp;of&nbsp;notes&nbsp;&nbsp;payable</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> approximated&nbsp;to&nbsp;their&nbsp;carrying&nbsp;value&nbsp;as&nbsp;generally&nbsp;their&nbsp;interest&nbsp;rates&nbsp;reflected</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> our&nbsp;effective&nbsp;annual&nbsp;borrowing&nbsp;rate.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Income&nbsp;Taxes&nbsp;--&nbsp;We&nbsp;account&nbsp;for&nbsp;income&nbsp;taxes&nbsp;under&nbsp;the&nbsp;&nbsp;liability&nbsp;&nbsp;method,&nbsp;&nbsp;which</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> requires&nbsp;&nbsp;recognition&nbsp;&nbsp;of&nbsp;deferred&nbsp;tax&nbsp;assets&nbsp;and&nbsp;&nbsp;liabilities&nbsp;&nbsp;for&nbsp;the&nbsp;expected</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> future&nbsp;tax&nbsp;&nbsp;consequences&nbsp;&nbsp;of&nbsp;events&nbsp;&nbsp;that&nbsp;have&nbsp;been&nbsp;&nbsp;included&nbsp;&nbsp;in&nbsp;the&nbsp;&nbsp;financial</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> statements&nbsp;&nbsp;or&nbsp;&nbsp;tax&nbsp;&nbsp;returns.&nbsp;&nbsp;Under&nbsp;&nbsp;this&nbsp;&nbsp;method,&nbsp;&nbsp;&nbsp;deferred&nbsp;&nbsp;tax&nbsp;&nbsp;assets&nbsp;&nbsp;and</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> liabilities&nbsp;&nbsp;are&nbsp;&nbsp;determined&nbsp;&nbsp;based&nbsp;&nbsp;on&nbsp;the&nbsp;&nbsp;difference&nbsp;&nbsp;between&nbsp;&nbsp;the&nbsp;&nbsp;financial</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> statements&nbsp;&nbsp;and&nbsp;tax&nbsp;bases&nbsp;of&nbsp;assets&nbsp;and&nbsp;&nbsp;liabilities&nbsp;&nbsp;using&nbsp;enacted&nbsp;tax&nbsp;rates&nbsp;in</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> effect&nbsp;for&nbsp;the&nbsp;year&nbsp;in&nbsp;which&nbsp;the&nbsp;differences&nbsp;are&nbsp;expected&nbsp;to&nbsp;reverse.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Advertising&nbsp;costs&nbsp;--&nbsp;Advertising&nbsp;costs&nbsp;are&nbsp;expensed&nbsp;as&nbsp;incurred.&nbsp;&nbsp;No&nbsp;advertising</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> costs&nbsp;were&nbsp;incurred&nbsp;during&nbsp;the&nbsp;three&nbsp;months&nbsp;ended&nbsp;March&nbsp;31,&nbsp;2012&nbsp;or&nbsp;2011.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Comprehensive&nbsp;Income&nbsp;(Loss)&nbsp;--&nbsp;Comprehensive&nbsp;income&nbsp;is&nbsp;defined&nbsp;as&nbsp;all&nbsp;changes&nbsp;in</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> stockholders&#39;&nbsp;&nbsp;equity&nbsp;(deficit),&nbsp;&nbsp;exclusive&nbsp;of&nbsp;transactions&nbsp;with&nbsp;owners,&nbsp;such&nbsp;as</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> capital&nbsp;&nbsp;investments.&nbsp;&nbsp;Comprehensive&nbsp;income&nbsp;includes&nbsp;net&nbsp;income&nbsp;or&nbsp;loss,&nbsp;changes</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> in&nbsp;certain&nbsp;assets&nbsp;and&nbsp;liabilities&nbsp;&nbsp;that&nbsp;are&nbsp;reported&nbsp;&nbsp;directly&nbsp;in&nbsp;equity&nbsp;such&nbsp;as</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> translation&nbsp;&nbsp;adjustments&nbsp;on&nbsp;investments&nbsp;in&nbsp;foreign&nbsp;&nbsp;subsidiaries&nbsp;&nbsp;and&nbsp;unrealized</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> gains&nbsp;(losses)&nbsp;on&nbsp;available-for-sale&nbsp;&nbsp;securities.&nbsp;&nbsp;From&nbsp;our&nbsp;inception&nbsp;there&nbsp;were</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> no&nbsp;differences&nbsp;between&nbsp;our&nbsp;comprehensive&nbsp;loss&nbsp;and&nbsp;net&nbsp;loss.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Our&nbsp;comprehensive&nbsp;&nbsp;loss&nbsp;was&nbsp;identical&nbsp;to&nbsp;our&nbsp;net&nbsp;loss&nbsp;for&nbsp;the&nbsp;three&nbsp;months&nbsp;ended</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> March&nbsp;31,&nbsp;2012&nbsp;and&nbsp;2011.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Income&nbsp;&nbsp;(Loss)&nbsp;Per&nbsp;Share&nbsp;--&nbsp;Income&nbsp;&nbsp;(loss)&nbsp;per&nbsp;share&nbsp;is&nbsp;presented&nbsp;in&nbsp;&nbsp;accordance</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> with&nbsp;Accounting&nbsp;&nbsp;Standards&nbsp;&nbsp;Update&nbsp;("ASU"),&nbsp;&nbsp;Earning&nbsp;Per&nbsp;Share&nbsp;(Topic&nbsp;260)&nbsp;which</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> requires&nbsp;the&nbsp;&nbsp;presentation&nbsp;of&nbsp;both&nbsp;basic&nbsp;and&nbsp;diluted&nbsp;&nbsp;earnings&nbsp;per&nbsp;share&nbsp;("EPS")</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> on&nbsp;the&nbsp;&nbsp;consolidated&nbsp;&nbsp;income&nbsp;&nbsp;statements.&nbsp;&nbsp;Basic&nbsp;EPS&nbsp;would&nbsp;&nbsp;exclude&nbsp;any&nbsp;dilutive</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> effects&nbsp;of&nbsp;options,&nbsp;&nbsp;warrants&nbsp;and&nbsp;&nbsp;convertible&nbsp;&nbsp;securities&nbsp;&nbsp;but&nbsp;does&nbsp;include&nbsp;the</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> restricted&nbsp;&nbsp;shares&nbsp;&nbsp;of&nbsp;common&nbsp;&nbsp;stock&nbsp;&nbsp;issued.&nbsp;&nbsp;Diluted&nbsp;&nbsp;EPS&nbsp;&nbsp;would&nbsp;&nbsp;reflect&nbsp;&nbsp;the</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> potential&nbsp;&nbsp;dilution&nbsp;that&nbsp;would&nbsp;occur&nbsp;if&nbsp;&nbsp;securities&nbsp;of&nbsp;other&nbsp;&nbsp;contracts&nbsp;to&nbsp;issue</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> common&nbsp;stock&nbsp;were&nbsp;exercised&nbsp;or&nbsp;converted&nbsp;to&nbsp;common&nbsp;stock.&nbsp;Basic&nbsp;EPS&nbsp;calculations</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> are&nbsp;&nbsp;determined&nbsp;by&nbsp;dividing&nbsp;net&nbsp;income&nbsp;by&nbsp;the&nbsp;weighted&nbsp;&nbsp;average&nbsp;number&nbsp;of&nbsp;shares</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> of&nbsp;common&nbsp;&nbsp;stock&nbsp;&nbsp;outstanding&nbsp;&nbsp;during&nbsp;the&nbsp;year.&nbsp;&nbsp;Diluted&nbsp;&nbsp;EPS&nbsp;&nbsp;calculations&nbsp;&nbsp;are</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> determined&nbsp;&nbsp;by&nbsp;&nbsp;dividing&nbsp;&nbsp;net&nbsp;income&nbsp;by&nbsp;the&nbsp;&nbsp;weighted&nbsp;&nbsp;average&nbsp;&nbsp;number&nbsp;of&nbsp;common</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> shares&nbsp;and&nbsp;dilutive&nbsp;common&nbsp;share&nbsp;equivalents&nbsp;outstanding.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Basic&nbsp;and&nbsp;diluted&nbsp;EPS&nbsp;were&nbsp;&nbsp;identical&nbsp;&nbsp;for&nbsp;the&nbsp;three&nbsp;months&nbsp;ended&nbsp;March&nbsp;31,&nbsp;2012</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> and&nbsp;&nbsp;2011&nbsp;as&nbsp;we&nbsp;had&nbsp;no&nbsp;&nbsp;stock&nbsp;&nbsp;options&nbsp;&nbsp;or&nbsp;&nbsp;warrants&nbsp;&nbsp;outstanding&nbsp;&nbsp;during&nbsp;&nbsp;those</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> periods.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Stock-Based&nbsp;&nbsp;Compensation&nbsp;--&nbsp;We&nbsp;have&nbsp;adopted&nbsp;ASC&nbsp;Topic&nbsp;718&nbsp;(formerly&nbsp;SFAS&nbsp;123R),</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> "Accounting&nbsp;for&nbsp;Stock-Based&nbsp;Compensation",&nbsp;which&nbsp;establishes&nbsp;a&nbsp;fair&nbsp;value&nbsp;method</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> of&nbsp;accounting&nbsp;for&nbsp;&nbsp;stock-based&nbsp;&nbsp;compensation&nbsp;&nbsp;plans.&nbsp;In&nbsp;accordance&nbsp;with&nbsp;guidance</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> now&nbsp;incorporated&nbsp;in&nbsp;ASC&nbsp;Topic&nbsp;718,&nbsp;the&nbsp;cost&nbsp;of&nbsp;stock&nbsp;options&nbsp;and&nbsp;warrants&nbsp;issued</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> to&nbsp;employees&nbsp;and&nbsp;&nbsp;non-employees&nbsp;&nbsp;is&nbsp;measured&nbsp;on&nbsp;the&nbsp;grant&nbsp;date&nbsp;based&nbsp;on&nbsp;the&nbsp;fair</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> value.&nbsp;&nbsp;The&nbsp;fair&nbsp;value&nbsp;is&nbsp;&nbsp;determined&nbsp;&nbsp;using&nbsp;the&nbsp;&nbsp;Black-Scholes&nbsp;&nbsp;option&nbsp;&nbsp;pricing</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> model.&nbsp;&nbsp;The&nbsp;resulting&nbsp;&nbsp;amount&nbsp;is&nbsp;charged&nbsp;to&nbsp;expense&nbsp;on&nbsp;the&nbsp;&nbsp;straight-line&nbsp;&nbsp;basis</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> over&nbsp;the&nbsp;period&nbsp;in&nbsp;which&nbsp;we&nbsp;expect&nbsp;to&nbsp;receive&nbsp;the&nbsp;&nbsp;benefit,&nbsp;&nbsp;which&nbsp;is&nbsp;&nbsp;generally</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> the&nbsp;vesting&nbsp;period.&nbsp;&nbsp;The&nbsp;fair&nbsp;value&nbsp;of&nbsp;stock&nbsp;warrants&nbsp;was&nbsp;determined&nbsp;at&nbsp;the&nbsp;date</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> of&nbsp;grant&nbsp;using&nbsp;the&nbsp;Black-Scholes&nbsp;&nbsp;option&nbsp;pricing&nbsp;model.&nbsp;The&nbsp;Black-Scholes&nbsp;option</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> model&nbsp;requires&nbsp;&nbsp;management&nbsp;to&nbsp;make&nbsp;various&nbsp;estimates&nbsp;and&nbsp;assumptions,&nbsp;&nbsp;including</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> expected&nbsp;term,&nbsp;expected&nbsp;volatility,&nbsp;risk-free&nbsp;rate,&nbsp;and&nbsp;dividend&nbsp;yield.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> No&nbsp;stock&nbsp;based&nbsp;&nbsp;compensation&nbsp;&nbsp;was&nbsp;issued&nbsp;or&nbsp;outstanding&nbsp;&nbsp;during&nbsp;the&nbsp;three&nbsp;months</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> ending&nbsp;March&nbsp;31,&nbsp;2012&nbsp;or&nbsp;2011.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Business&nbsp;&nbsp;Segments&nbsp;--&nbsp;We&nbsp;believe&nbsp;&nbsp;that&nbsp;our&nbsp;&nbsp;activities&nbsp;&nbsp;during&nbsp;the&nbsp;three&nbsp;&nbsp;months</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> ended&nbsp;March&nbsp;31,&nbsp;2012&nbsp;and&nbsp;2011&nbsp;comprised&nbsp;a&nbsp;single&nbsp;segment.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Recently&nbsp;&nbsp;Issued&nbsp;&nbsp;Accounting&nbsp;&nbsp;Pronouncements--&nbsp;&nbsp;We&nbsp;have&nbsp;&nbsp;reviewed&nbsp;&nbsp;all&nbsp;&nbsp;recently</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> issued,&nbsp;but&nbsp;not&nbsp;yet&nbsp;effective,&nbsp;&nbsp;accounting&nbsp;pronouncements&nbsp;and&nbsp;do&nbsp;not&nbsp;believe&nbsp;the</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> future&nbsp;adoption&nbsp;of&nbsp;any&nbsp;such&nbsp;&nbsp;pronouncements&nbsp;&nbsp;may&nbsp;be&nbsp;expected&nbsp;to&nbsp;cause&nbsp;a&nbsp;material</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> impact&nbsp;on&nbsp;our&nbsp;financial&nbsp;condition&nbsp;or&nbsp;the&nbsp;results&nbsp;of&nbsp;our&nbsp;operations.</p> <!--EndFragment--></div> </div> 15000 15000 75000 0.0001 0.0001 10000000 10000000 0 0 0 0 5600 17629 <!--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: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 8.&nbsp;&nbsp;&nbsp;RELATED&nbsp;PARTY&nbsp;TRANSACTIONS</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> As&nbsp;at&nbsp;March&nbsp;31,&nbsp;&nbsp;2012,&nbsp;&nbsp;we&nbsp;owed&nbsp;Mr.&nbsp;&nbsp;Cutler,&nbsp;&nbsp;our&nbsp;sole&nbsp;&nbsp;officer,&nbsp;&nbsp;a&nbsp;director&nbsp;and</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> majority&nbsp;shareholder,&nbsp;$96,891&nbsp;including&nbsp;accrued&nbsp;interest&nbsp;of&nbsp;$4,262.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> During&nbsp;&nbsp;the&nbsp;three&nbsp;&nbsp;months&nbsp;&nbsp;ended&nbsp;&nbsp;March&nbsp;31,&nbsp;&nbsp;2012,&nbsp;&nbsp;we&nbsp;accrued&nbsp;&nbsp;$15,000&nbsp;&nbsp;(2011&nbsp;-</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> $15,000)&nbsp;&nbsp;of&nbsp;Mr.&nbsp;&nbsp;Cutler&#39;s&nbsp;&nbsp;remuneration&nbsp;&nbsp;as&nbsp;&nbsp;payable&nbsp;&nbsp;to&nbsp;&nbsp;Burlingham&nbsp;&nbsp;Corporate</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Finance,&nbsp;&nbsp;Inc.&nbsp;&nbsp;("Burlingham")&nbsp;in&nbsp;the&nbsp;form&nbsp;of&nbsp;consulting&nbsp;fees.&nbsp;Mr.&nbsp;Cutler&nbsp;is&nbsp;the</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> principal&nbsp;shareholder&nbsp;of&nbsp;Burlingham.</p> <!--EndFragment--></div> </div> -17010365 -16974442 -135484 -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: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;STOCKHOLDERS&#39;&nbsp;DEFICIT:</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Preferred&nbsp;Stock</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> We&nbsp;were&nbsp;&nbsp;authorized,&nbsp;&nbsp;without&nbsp;&nbsp;further&nbsp;&nbsp;action&nbsp;&nbsp;by&nbsp;the&nbsp;&nbsp;shareholders,&nbsp;&nbsp;to&nbsp;&nbsp;issue</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 10,000,000&nbsp;&nbsp;shares&nbsp;of&nbsp;one&nbsp;or&nbsp;more&nbsp;&nbsp;series&nbsp;of&nbsp;&nbsp;preferred&nbsp;&nbsp;stock&nbsp;at&nbsp;a&nbsp;par&nbsp;value&nbsp;of</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> $0.0001,&nbsp;&nbsp;all&nbsp;of&nbsp;&nbsp;which&nbsp;&nbsp;is&nbsp;&nbsp;nonvoting.&nbsp;&nbsp;The&nbsp;&nbsp;Board&nbsp;of&nbsp;&nbsp;Directors&nbsp;&nbsp;may,&nbsp;&nbsp;without</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> shareholder&nbsp;&nbsp;&nbsp;approval,&nbsp;&nbsp;&nbsp;determine&nbsp;&nbsp;the&nbsp;&nbsp;dividend&nbsp;&nbsp;rates,&nbsp;&nbsp;&nbsp;redemption&nbsp;&nbsp;prices,</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> preferences&nbsp;on&nbsp;liquidation&nbsp;or&nbsp;dissolution,&nbsp;&nbsp;conversion&nbsp;rights,&nbsp;voting&nbsp;rights&nbsp;and</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> any&nbsp;other&nbsp;preferences.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> No&nbsp;shares&nbsp;of&nbsp;preferred&nbsp;&nbsp;stock&nbsp;were&nbsp;issued&nbsp;or&nbsp;outstanding&nbsp;&nbsp;during&nbsp;the&nbsp;three&nbsp;month</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> periods&nbsp;ended&nbsp;March&nbsp;31,&nbsp;2012&nbsp;and&nbsp;2011.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Common&nbsp;Stock</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> We&nbsp;were&nbsp;&nbsp;authorized&nbsp;&nbsp;to&nbsp;issue&nbsp;&nbsp;100,000,000&nbsp;&nbsp;shares&nbsp;&nbsp;of&nbsp;common&nbsp;&nbsp;stock,&nbsp;&nbsp;par&nbsp;value</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> $0.0001&nbsp;per&nbsp;share.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> On&nbsp;April&nbsp;29,&nbsp;2008,&nbsp;we&nbsp;held&nbsp;our&nbsp;annual&nbsp;meeting&nbsp;of&nbsp;&nbsp;stockholders&nbsp;&nbsp;at&nbsp;which&nbsp;meeting</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> the&nbsp;majority&nbsp;of&nbsp;&nbsp;stockholders&nbsp;&nbsp;approved,&nbsp;&nbsp;an&nbsp;up&nbsp;to&nbsp;3&nbsp;for&nbsp;1&nbsp;reverse&nbsp;&nbsp;split&nbsp;of&nbsp;our</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> shares&nbsp;of&nbsp;common&nbsp;stock.&nbsp;No&nbsp;such&nbsp;reverse&nbsp;split&nbsp;has&nbsp;been&nbsp;effected&nbsp;as&nbsp;yet.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Recent&nbsp;Issuances</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> No&nbsp;shares&nbsp;of&nbsp;our&nbsp;common&nbsp;&nbsp;stock&nbsp;were&nbsp;issued&nbsp;in&nbsp;the&nbsp;three&nbsp;&nbsp;months&nbsp;&nbsp;ended&nbsp;March&nbsp;31,</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 2012&nbsp;or&nbsp;2011.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Warrants</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> No&nbsp;warrants&nbsp;were&nbsp;issued&nbsp;or&nbsp;&nbsp;outstanding&nbsp;&nbsp;during&nbsp;the&nbsp;three&nbsp;months&nbsp;ended&nbsp;March&nbsp;31,</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 2012&nbsp;or&nbsp;2011.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Stock&nbsp;Options</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> Effective&nbsp;March&nbsp;19,&nbsp;1999,&nbsp;we&nbsp;adopted&nbsp;a&nbsp;stock&nbsp;option&nbsp;plan&nbsp;(the&nbsp;"Plan").&nbsp;&nbsp;The&nbsp;Plan</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> provides&nbsp;for&nbsp;grants&nbsp;of&nbsp;incentive&nbsp;stock&nbsp;options,&nbsp;&nbsp;nonqualified&nbsp;&nbsp;stock&nbsp;options&nbsp;and</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> restricted&nbsp;&nbsp;stock&nbsp;to&nbsp;designated&nbsp;&nbsp;employees,&nbsp;&nbsp;officers,&nbsp;&nbsp;directors,&nbsp;&nbsp;advisors&nbsp;and</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> independent&nbsp;contractors.&nbsp;The&nbsp;Plan&nbsp;authorized&nbsp;the&nbsp;issuance&nbsp;of&nbsp;up&nbsp;to&nbsp;75,000&nbsp;shares</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> of&nbsp;Class&nbsp;A&nbsp;Common&nbsp;&nbsp;Stock.&nbsp;&nbsp;Under&nbsp;the&nbsp;&nbsp;Plan,&nbsp;&nbsp;the&nbsp;&nbsp;exercise&nbsp;&nbsp;price&nbsp;per&nbsp;share&nbsp;of&nbsp;a</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> non-qualified&nbsp;&nbsp;stock&nbsp;&nbsp;option&nbsp;&nbsp;must&nbsp;be&nbsp;equal&nbsp;to&nbsp;at&nbsp;least&nbsp;&nbsp;50%&nbsp;of&nbsp;the&nbsp;fair&nbsp;&nbsp;market</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> value&nbsp;of&nbsp;the&nbsp;common&nbsp;stock&nbsp;at&nbsp;the&nbsp;grant&nbsp;date,&nbsp;and&nbsp;the&nbsp;exercise&nbsp;price&nbsp;per&nbsp;share&nbsp;of</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> an&nbsp;&nbsp;incentive&nbsp;&nbsp;stock&nbsp;option&nbsp;must&nbsp;equal&nbsp;the&nbsp;fair&nbsp;market&nbsp;value&nbsp;of&nbsp;the&nbsp;common&nbsp;stock</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> at&nbsp;the&nbsp;grant&nbsp;date.</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> No&nbsp;stock&nbsp;options&nbsp;were&nbsp;issued&nbsp;or&nbsp;outstanding&nbsp;&nbsp;during&nbsp;the&nbsp;three&nbsp;months&nbsp;ended&nbsp;March</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 31,&nbsp;2012&nbsp;or&nbsp;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: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> 11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SUBSEQUENT&nbsp;EVENTS</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> &nbsp;</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> We&nbsp;have&nbsp;evaluated&nbsp;subsequent&nbsp;events&nbsp;through&nbsp;April&nbsp;27,&nbsp;2012.&nbsp;Other&nbsp;than&nbsp;those&nbsp;set</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> out&nbsp;above,&nbsp;&nbsp;there&nbsp;have&nbsp;been&nbsp;no&nbsp;subsequent&nbsp;&nbsp;events&nbsp;after&nbsp;March&nbsp;31,&nbsp;2012&nbsp;for&nbsp;which</p> <p style="MARGIN: 0in 0in 0pt; FONT-FAMILY: Courier New; FONT-SIZE: 10pt"> disclosure&nbsp;is&nbsp;required.</p> <!--EndFragment--></div> </div> xbrli:shares ISO4217:USD ISO4217:USD xbrli:shares 0001081938 2012-01-01 2012-03-31 0001081938 2011-01-01 2012-03-31 0001081938 2011-01-01 2011-03-31 0001081938 2012-04-27 0001081938 2012-03-31 0001081938 2011-12-31 0001081938 2011-03-31 0001081938 2010-12-31 EX-101.SCH 5 gdhc-20120331.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 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 110 - Disclosure - INCOME TAXES 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 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 111 - Disclosure - SUBSEQUENT EVENTS link:calculationLink link:definitionLink link:presentationLink link:labelLink link:referenceLink EX-101.CAL 6 gdhc-20120331_cal.xml EX-101.LAB 7 gdhc-20120331_lab.xml Amendment Flag Current Fiscal Year End Date Document and Entity Information [Abstract] Document and Entity Information [Abstract]. 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Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] ADJUSTMENTS TO RECONCILE NET PROFIT / (LOSS) TO NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES Cash and Cash Equivalents at the beginning of the period Cash and Cash Equivalents at the end of the period Cash and Cash Equivalents, Period Increase (Decrease) INCREASE / (DECREASE) IN CASH & CASH EQUIVALENTS Income Taxes Paid Cash paid for income tax Increase (Decrease) in Accounts Payable Increase / (decrease) in Accounts Payable Increase (Decrease) in Accrued Liabilities Increase / (decrease) in Accrued Expenses - Related Party Increase (Decrease) in Operating Capital [Abstract] CHANGES IN OPERATING ASSETS & LIABILITIES Increase in Related Party Loan Interest Paid Cash paid for interest Net Cash Provided by (Used in) Financing Activities Total Cash Flow provided by / (used in) Financing Activities Net Cash Provided by (Used in) Financing Activities [Abstract] CASH FLOW FROM FINANCING ACTIVITIES Net Cash Provided by (Used in) Investing Activities Total Cash Flow provided by / (used in) Investing Activities Net Cash Provided by (Used in) Investing Activities [Abstract] CASH FLOW FROM INVESTING ACTIVITIES Net Cash Provided by (Used in) Operating Activities Total Cash Flow provided by / (used in) Operating Activities Net Cash Provided by (Used in) Operating Activities [Abstract] CASH FLOW PROVIDED BY / (USED IN) OPERATING ACTIVITIES Net Income (Loss) Attributable to Parent NET PROFIT / (LOSS) Noncash Investing and Financing Items [Abstract] NON-CASH INVESTING AND FINANCING ACTIVITIES Notes Issued Related party loans Other Noncash Expense Compensatory loan increases Proceeds from (Repayments of) Related Party Debt STATEMENTS OF CASH FLOWS [Abstract] Supplemental Cash Flow Information [Abstract] SUPPLEMENTAL SCHEDULE OF CASH FLOW INFORMATION NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Text Block] NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES GOING CONCERN AND LIQUIDITY [Abstract] GOING CONCERN AND LIQUIDITY [Abstract]. 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ACCOUNTS PAYABLE
3 Months Ended
Mar. 31, 2012
ACCOUNTS PAYABLE [Abstract]  
ACCOUNTS PAYABLE

4.       ACCOUNTS PAYABLE

 

As at March 31,  2012,  the balance of accounts  payable  represents  legal fees

payable.

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ASSETS
3 Months Ended
Mar. 31, 2012
ASSETS [Abstract]  
ASSETS

3.        ASSETS

 

As at March 31, 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 $)
Mar. 31, 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 38,618 24,857
Accrued Expenses 4,262 2,700
Related Party Loan 92,629 72,029
Total Current Liabilities 135,509 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 March 31, 2011 and December 31, 2010, 2,384,407 shares issued and outstanding as at March 31, 2011 and December 31, 2010 239 239
Additional Paid In Capital 16,874,642 16,874,642
Accumulated Deficit (including $(135,584) and $ (99,661) respectively during the development stage) (17,010,365) (16,974,442)
Total Stockholders' (Deficit) (135,484) (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
3 Months Ended
Mar. 31, 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 Statement of Financial

Accounting  Standards  ("SFAS") No. 7,  "Accounting and Reporting by Development

Stage Enterprises" now referred to as 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 months

ended March 31, 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 Statement of Financial Accounting Standards ("SFAS") No. 7, "Accounting and

Reporting  by  Development  Stage  Enterprises"  now  referred  to  as  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

months ended March 31, 2012 or 2011 and consequently we recorded no depreciation

expense during the three months ended March 31, 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 March 31, 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 months ended March 31, 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 months ended

March 31, 2012 and 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 months ended March 31, 2012

and  2011 as we had no  stock  options  or  warrants  outstanding  during  those

periods.

 

Stock-Based  Compensation -- We have adopted ASC Topic 718 (formerly SFAS 123R),

"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 months

ending March 31, 2012 or 2011.

 

Business  Segments -- We believe  that our  activities  during the three  months

ended March 31, 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.

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XML 17 R7.htm IDEA: XBRL DOCUMENT v2.4.0.6
GOING CONCERN AND LIQUIDITY
3 Months Ended
Mar. 31, 2012
GOING CONCERN AND LIQUIDITY [Abstract]  
GOING CONCERN AND LIQUIDITY

2.       GOING CONCERN AND LIQUIDITY:

 

At March 31, 2011, we had cash of $25, no other assets, no operating business or

other  source  of  income,  outstanding  liabilities  totaling  $135,509  and  a

stockholders' deficit of $135,484.

 

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 months ended March 31, 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 $135,484 and reported an accumulated deficit

since Inception (January 1, 2011) of $135,584 as at March 31, 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 18 R3.htm IDEA: XBRL DOCUMENT v2.4.0.6
BALANCE SHEETS (Parenthetical) (USD $)
Mar. 31, 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 $ (135,584) $ (99,661)
XML 19 R1.htm IDEA: XBRL DOCUMENT v2.4.0.6
Document and Entity Information
3 Months Ended
Mar. 31, 2012
Apr. 27, 2012
Document and Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 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 Q1  
Entity Filer Category Smaller Reporting Company  
Entity Common Stock, Shares Outstanding   2,384,407
XML 20 R4.htm IDEA: XBRL DOCUMENT v2.4.0.6
STATEMENTS OF OPERATIONS (USD $)
3 Months Ended 15 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Mar. 31, 2012
OPERATING EXPENSES      
General & Administrative Expenses $ 34,361 $ 15,477 $ 131,463
Total Operating Expenses 34,361 15,477 131,463
OPERATING LOSS (34,361) (15,477) (131,463)
Interest and Other Income / (Expenses) Net (1,562) (99) (4,121)
Loss before Income Taxes (35,923) (15,576) (135,584)
Provision for Income Taxes         
NET LOSS $ (35,923) $ (15,576) $ (135,584)
NET LOSS PER COMMON SHARE      
Basic & Diluted $ (0.02) $ (0.01)  
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING      
Basic & Diluted 2,384,407 2,384,407  
XML 21 R12.htm IDEA: XBRL DOCUMENT v2.4.0.6
COMMITMENTS
3 Months Ended
Mar. 31, 2012
COMMITMENTS [Abstract]  
COMMITMENTS

7.       COMMITMENTS:

 

Capital and Operating Leases

 

We had no capital or operating leases outstanding as at March 31, 2012.

 

Litigation

 

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

knowledge.

XML 22 R11.htm IDEA: XBRL DOCUMENT v2.4.0.6
RELATED PARTY LOAN
3 Months Ended
Mar. 31, 2012
RELATED PARTY LOAN [Abstract]  
RELATED PARTY LOAN

6.        RELATED PARTY LOAN

 

As at March 31, 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 at March 31, 2011,  the  principal  balance owed was

$92,629 with accrued interest of $4,262.

 

Interest is accrued on the loan at 8%.

XML 23 R15.htm IDEA: XBRL DOCUMENT v2.4.0.6
INCOME TAXES
3 Months Ended
Mar. 31, 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.

 

Consequently,  effective March 31, 2012, we had NOLS of approximately  $136,000,

which expire in 2031 and 2032.

XML 24 R13.htm IDEA: XBRL DOCUMENT v2.4.0.6
RELATED PARTY TRANSACTIONS
3 Months Ended
Mar. 31, 2012
RELATED PARTY TRANSACTIONS [Abstract]  
RELATED PARTY TRANSACTIONS

8.   RELATED PARTY TRANSACTIONS

 

As at March 31,  2012,  we owed Mr.  Cutler,  our sole  officer,  a director and

majority shareholder, $96,891 including accrued interest of $4,262.

 

During  the three  months  ended  March 31,  2012,  we accrued  $15,000  (2011 -

$15,000)  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 25 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
STOCKHOLDERS' DEFICIT
3 Months Ended
Mar. 31, 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 month

periods ended March 31, 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  months  ended March 31,

2012 or 2011.

 

Warrants

 

No warrants were issued or  outstanding  during the three months ended March 31,

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 months ended March

31, 2012 or 2011.

XML 26 R16.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2012
SUBSEQUENT EVENTS [Abstract]  
SUBSEQUENT EVENTS

11.      SUBSEQUENT EVENTS

 

We have evaluated subsequent events through April 27, 2012. Other than those set

out above,  there have been no subsequent  events after March 31, 2012 for which

disclosure is required.

XML 27 R5.htm IDEA: XBRL DOCUMENT v2.4.0.6
STATEMENTS OF CASH FLOWS (USD $)
3 Months Ended 15 Months Ended
Mar. 31, 2012
Mar. 31, 2011
Mar. 31, 2012
CASH FLOW PROVIDED BY / (USED IN) OPERATING ACTIVITIES      
NET PROFIT / (LOSS) $ (35,923) $ (15,576) $ (135,584)
ADJUSTMENTS TO RECONCILE NET PROFIT / (LOSS) TO NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES      
Compensatory loan increases 15,000 15,000 75,000
CHANGES IN OPERATING ASSETS & LIABILITIES      
Increase / (decrease) in Accounts Payable 13,760 476 38,617
Increase / (decrease) in Accrued Expenses - Related Party 1,563 100 4,263
Total Cash Flow provided by / (used in) Operating Activities (5,600)    (17,704)
CASH FLOW FROM INVESTING ACTIVITIES      
Total Cash Flow provided by / (used in) Investing Activities         
CASH FLOW FROM FINANCING ACTIVITIES      
Increase in Related Party Loan 5,600    17,629
Total Cash Flow provided by / (used in) Financing Activities 5,600    17,629
INCREASE / (DECREASE) IN CASH & CASH EQUIVALENTS 0    (75)
Cash and Cash Equivalents at the beginning of the period 25 100 100
Cash and Cash Equivalents at the end of the period 25 100 25
NON-CASH INVESTING AND FINANCING ACTIVITIES      
Related party loans 15,000 15,000 75,000
SUPPLEMENTAL SCHEDULE OF CASH FLOW INFORMATION      
Cash paid for interest         
Cash paid for income tax         
XML 28 R10.htm IDEA: XBRL DOCUMENT v2.4.0.6
ACCRUED EXPENSES
3 Months Ended
Mar. 31, 2012
ACCRUED EXPENSES [Abstract]  
ACCRUED EXPENSES

5.       ACCRUED EXPENSES

 

As at March 31,  2012,  the  balance of  accrued  expenses  represents  interest

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

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