Commission file number
|
000-53774
|
EARTH DRAGON RESOURCES INC.
|
|||||||||||
(Exact name of small business issuer as specified in its charter)
|
|||||||||||
Nevada
|
N/A
|
||||||||||
(State or other jurisdiction of incorporation or organization)
|
(IRS Employer Identification No.)
|
||||||||||
Azaban Green Terrace St.
3-20-1 Minami Azabu Minato-ku
Tokyo, 106-0047 Japan
|
|||||||||||
(Address of principal executive offices)
|
|||||||||||
81-(0)3-6859-8532
|
|||||||||||
(Issuer’s telephone number)
|
|||||||||||
Not Applicable
|
|||||||||||
(Former name, former address and former fiscal year, if changed since last report)
|
|||||||||||
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 preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
|
|||||||||||
[ X]
|
YES
|
[ ]
|
NO
|
||||||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a small 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
|
||||||||
APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS
Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court.
|
|||||||||||
[ ]
|
YES
|
[ ]
|
NO
|
||||||||
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
|
|||||||||||
[ ]
|
YES
|
[ ]
|
NO
|
||||||||
APPLICABLE ONLY TO CORPORATE ISSUERS
|
|||||||||||
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
|
254,480,000 common shares issued and outstanding as of April 11, 2011.
|
ITEM 1.
|
FINANCIAL STATEMENTS
|
Balance Sheets | ............................................................................................................................................................................................... F-2 |
Statements of Operations | ............................................................................................................................................................................................... F-3 |
Statements of Stockholders' Equity Deficiency | ...............................................................................................................................................................................................F-4 |
Statements of Cash Flows | ............................................................................................................................................................................................... F-5 |
Earth Dragon Resources Inc.
|
||||||||||||
(An Exploration Stage Company)
|
||||||||||||
Balance Sheets
|
||||||||||||
(Expressed in US Dollars)
|
||||||||||||
February 28,
|
May 31,
|
|||||||||||
2011
|
2010
|
|||||||||||
ASSETS
|
(Unaudited)
|
|||||||||||
Current Assets
|
||||||||||||
Cash
|
$
|
40,914
|
$
|
18,700
|
||||||||
Prepaid Expenses
|
15,700
|
-
|
||||||||||
Total Current Assets
|
56,614
|
18,700
|
||||||||||
Mining property acquisition costs, less reserve for
|
||||||||||||
impairment of $6,500
|
-
|
-
|
||||||||||
Total Assets
|
$
|
56,614
|
$
|
18,700
|
||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY) | ||||||||||||
Current Liabilities
|
||||||||||||
Account payable and accrued liabilities
|
$
|
2,264
|
$
|
13,833
|
||||||||
Due to related parties
|
8,839
|
9,395
|
||||||||||
Notes payable
|
341,980
|
-
|
||||||||||
Total current liabilities
|
353,083
|
23,228
|
||||||||||
Stockholders' Equity (Deficiency)
|
||||||||||||
Common stock, $0.0001 par value;
|
||||||||||||
authorized 2,850,000,000 shares, issued and outstanding
|
||||||||||||
254,480,000 and 454,480,000 shares, respectively
|
25,448
|
45,448
|
||||||||||
Additional paid-in capital
|
102,327
|
72,552
|
||||||||||
Deficit accumulated during
|
||||||||||||
the exploration stage
|
(424,244)
|
(122,528)
|
||||||||||
Total stockholders' equity (deficiency)
|
(296,469)
|
(4,528)
|
||||||||||
Total Liabilities and Stockholders' Equity (Deficiency)
|
$
|
56,614
|
$
|
18,700
|
||||||||
See notes to financial statements.
|
Earth Dragon Resources Inc.
|
||||||||||||||||
(An Exploration Stage Company)
|
||||||||||||||||
Statements of Operations
|
||||||||||||||||
(Expressed in US Dollars)
|
||||||||||||||||
(Unaudited)
|
||||||||||||||||
Three months Ended February 28, 2011
|
Three months Ended February 28, 2010
|
Nine months Ended February 28, 2011
|
Nine months Ended February 28, 2010
|
Period October 23, 2007 (Inception) to February 28, 2011
|
||||||||||||
Revenue
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Cost and expenses
|
||||||||||||||||
Impairment of mining property acquisition costs
|
-
|
-
|
-
|
-
|
6,500
|
|||||||||||
Impairment of investment in Tanzania Joint Venture
|
125,000
|
-
|
125,000
|
-
|
125,000
|
|||||||||||
Exploration costs
|
-
|
-
|
400
|
-
|
31,662
|
|||||||||||
Compensation to related parties
|
50,000
|
-
|
84,839
|
-
|
84,839
|
|||||||||||
Other general and administrative expenses
|
82,008
|
3,933
|
91,477
|
9,140
|
176,243
|
|||||||||||
Total Costs and Expenses
|
257,008
|
3,933
|
301,716
|
9,140
|
424,244
|
|||||||||||
Net Loss
|
$
|
(257,008)
|
$
|
(3,933)
|
$
|
(301,716)
|
$
|
(9,140)
|
$
|
(424,244)
|
||||||
Net Loss per share
|
||||||||||||||||
Basic and diluted
|
$
|
(0.00)
|
$
|
(0.00)
|
$
|
(0.00)
|
$
|
(0.00)
|
$
|
(0.00)
|
||||||
Number of common shares used to compute loss per share
|
||||||||||||||||
Basic and Diluted
|
367,813,334
|
454,480,000
|
425,591,112
|
454,480,000
|
388,657,551
|
|||||||||||
See notes to financial statements.
|
Earth Dragon Resources Inc.
|
|||||||||||||
(An Exploration Stage Company)
|
|||||||||||||
Statements of Stockholders' Equity (Deficiency)
|
|||||||||||||
For the period October 23, 2007 (Inception) to February 28, 2011
|
|||||||||||||
(Expressed in US Dollars)
|
|||||||||||||
Common Stock, $0.0001 Par Value
|
Additional Paid-in Capital
|
Deficit Accumulated During the Exploration Stage
|
Total Stockholders' Equity (Deficiency)
|
||||||||||
Shares
|
Amount | ||||||||||||
Common stock issued for cash
|
|||||||||||||
on January 31, 2008 at $0.0000526 per share
|
380,000,000
|
$
|
38,000
|
$
|
(18,000)
|
$
|
-
|
$
|
20,000
|
||||
Net loss for the period October 23,
|
|||||||||||||
2007 (inception) to May 31, 2008
|
-
|
-
|
-
|
(14,392)
|
(14,392)
|
||||||||
Balance, May 31, 2008
|
380,000,000
|
38,000
|
(18,000)
|
(14,392)
|
5,608
|
||||||||
Common stock sold on
|
|||||||||||||
January 31, 2009 at $0.0013158 per share
|
74,480,000
|
7,448
|
90,552
|
-
|
98,000
|
||||||||
Net loss
|
-
|
-
|
-
|
(84,167)
|
(84,167)
|
||||||||
Balance, May 31, 2009
|
454,480,000
|
45,448
|
72,552
|
(98,559)
|
19,441
|
||||||||
Net loss
|
(23,969)
|
(23,969)
|
|||||||||||
Balance, May 31, 2010
|
454,480,000
|
45,448
|
72,552
|
(122,528)
|
(4,528)
|
||||||||
Unaudited:
|
|||||||||||||
Forgiveness of due to related party by
|
|||||||||||||
Yuan Kun Deng, Chief Executive Officer
|
|||||||||||||
of the Company from October 23, 2007
|
|||||||||||||
(inception) to September 21, 2010
|
-
|
-
|
9,775
|
-
|
9,775
|
||||||||
Cancellation on January 21, 2011 of
|
|||||||||||||
common stock issued on January 31, 2008
|
|||||||||||||
to Yuan Kun Deng, Chief Executive
|
|||||||||||||
Officer of the Company from October 23,
|
|||||||||||||
2007 (inception) to September 21, 2010
|
(200,000,000)
|
(20,000)
|
20,000
|
-
|
-
|
||||||||
Net loss for the nine months
|
|||||||||||||
ended February 28, 2011
|
-
|
-
|
-
|
(301,716)
|
(301,716)
|
||||||||
Balance, February 28, 2011
|
254,480,000
|
$
|
25,448
|
$
|
102,327
|
$
|
(424,244)
|
$
|
(296,469)
|
||||
See notes to financial statements.
|
Earth Dragon Resources Inc.
|
||||||||||||
(An Exploration Stage Company)
|
||||||||||||
Statements of Cash Flows
|
||||||||||||
(Expressed in US Dollars)
|
||||||||||||
(Unaudited)
|
||||||||||||
Nine months Ended
February 28, 2011
|
Nine months Ended
February 28, 2010
|
Period October 23, 2007 (Inception) to
February 28, 2011
|
||||||||||
Cash Flows from Operating Activities
|
||||||||||||
Net loss
|
$
|
(301,716)
|
$
|
(9,140)
|
$
|
(424,244)
|
||||||
Adjustments to reconcile net loss to net cash
|
||||||||||||
used for operating activities:
|
||||||||||||
Impairment of mining property acquisition costs
|
-
|
-
|
6,500
|
|||||||||
Impairment of investment in Tanzania Joint Venture
|
125,000
|
-
|
125,000
|
|||||||||
Changes in operating assets and liabilities:
|
||||||||||||
Prepaid expenses
|
(15,700)
|
-
|
(15,700)
|
|||||||||
Accounts payable and accrued liabilities
|
(7,023)
|
(6,221)
|
4,244
|
|||||||||
Due to related party
|
33,839
|
-
|
33,839
|
|||||||||
Net cash provided by (used for) operating activities
|
(165,600)
|
(15,361)
|
(270,361)
|
|||||||||
Cash Flows from Investing Activities
|
||||||||||||
Mineral property acquisition
|
-
|
-
|
(6,500)
|
|||||||||
Investment in Tanzania Joint Venture
|
(125,000)
|
-
|
(125,000)
|
|||||||||
Net cash provided by (used for) investing activities
|
(125,000)
|
-
|
(131,500)
|
|||||||||
Cash Flows from Financing Activities
|
||||||||||||
Proceeds from sale of common stock
|
-
|
-
|
118,000
|
|||||||||
Due to related party
|
(2,186)
|
3,899
|
9,775
|
|||||||||
Notes Payable
|
315,000
|
-
|
315,000
|
|||||||||
Net cash provided by (used for) financing activities
|
312,814
|
3,899
|
442,775
|
|||||||||
Increase (decrease) in cash
|
22,214
|
(11,462)
|
40,914
|
|||||||||
Cash, beginning of period
|
18,700
|
30,398
|
-
|
|||||||||
Cash, end of period
|
$
|
40,914
|
$
|
18,936
|
$
|
40,914
|
||||||
Supplemental Disclosures of Cash Flow Information:
|
||||||||||||
Interest paid
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Income taxes paid
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Schedule of non-cash financing activities:
|
||||||||||||
Issuance of Promissory Note to Irish Son Limited
|
||||||||||||
("ISL") in exchange for ISL's payment of
|
||||||||||||
company liabilities (Accounts payable and
|
||||||||||||
accrued liabilities- $1,980, Due to related party-
|
||||||||||||
$25,000)
|
$
|
26,980
|
$
|
-
|
$
|
26,980
|
||||||
Increase in due to related party (Yuan Kun Deng,
|
||||||||||||
Chief Executive Officer of the Company from
|
||||||||||||
October 23, 2007 (inception) to September 21, 2010)
|
||||||||||||
as a result of Mr. Deng's payment of Company liabilities
|
$
|
2,566
|
$
|
-
|
$
|
2,566
|
||||||
Forgiveness of due to related party by Yuan Kun Deng,
|
||||||||||||
Chief Executive Officer of the Company from
|
||||||||||||
October 23, 2007 (inception) to September 21, 2010
|
$
|
9,775
|
$
|
-
|
$
|
9,775
|
||||||
See notes to financial statements.
|
February 28, 2011
|
May 31, 2010
|
|||||
Compensation and expenses due Thomas Herdman
|
||||||
(“ Herdman”), chief executive officer of the
|
||||||
Company since September 21, 2010
|
$
|
6,339
|
$
|
-
|
Compensation due Date Jiriicho (“ Jiriicho”),
|
||||||
director of the Company since
|
||||||
February 1, 2011
|
2,500
|
-
|
||||
Amount due Yuan Kun Deng (“Deng”),
|
||||||
chief executive officer of the Company from
|
||||||
October 23, 2007 (inception) to September 21, 2010,
|
||||||
non-interest bearing, due on demand
|
-
|
9,395
|
||||
Totals
|
$
|
8,839
|
$
|
9,395
|
February 28, 2011
|
May 31, 2010
|
|||||
Promissory note dated February 28, 2011 issued to
|
||||||
MED Venture Ltd. for cash advances on January
|
||||||
24, 2011 and February 22, 2011, interest at 12%,
|
||||||
due February 27, 2012, unsecured
|
$
|
315,000
|
$
|
-
|
||
Promissory note dated November 30, 2010 issued to
|
||||||
Irish Son Limited (“ISL”) in exchange for ISL’s
|
payments of certain Company liabilities (see
|
||||||
Note 5), interest at 6%, due on demand, unsecured
|
26,980
|
-
|
||||
Totals
|
$
|
341,980
|
$
|
-
|
Period from
|
||||||
For the nine months ended
|
October 23, 2007
|
|||||
February 28,
|
(Date of Inception) to
|
|||||
2011
|
2010
|
February 28, 2011
|
||||
Expected tax at 35%
|
$
|
(105,601)
|
$
|
(3,199)
|
$
|
(148,485)
|
Increase in valuation allowance
|
105,601
|
3,199
|
148,485
|
|||
Income tax provision
|
$
|
-
|
$
|
-
|
$
|
-
|
February 28, 2011
|
May 31, 2010
|
|||||
Net operating loss carryforward
|
$
|
148,485
|
$
|
42,885
|
||
Valuation allowances
|
(148,485)
|
(42,885)
|
||||
Net deferred income tax assets
|
$
|
-
|
$
|
-
|
Three months Ended
February 28
2011
($)
|
Three months Ended
February 28
2010
($)
|
|||
Revenue
|
-
|
-
|
||
Operating Expenses
|
257,008
|
3,933
|
||
Net Income (Loss)
|
(257,008)
|
(3,933)
|
Three Months Ended
|
||||||
February 28
|
||||||
2011
|
2010
|
|||||
Impairment of mining property acquisition costs
|
$
|
-
|
$
|
-
|
||
Impairment of investment in Tanzania Joint Venture
|
$
|
125,000
|
$
|
-
|
||
Exploration costs
|
$
|
-
|
$
|
-
|
||
Compensation to related party
|
$
|
50,000
|
$
|
-
|
||
Other general and administrative expenses
|
$
|
82,008
|
$
|
3,933
|
Nine months Ended
February 28
2011
($)
|
Nine months Ended
February 28
2010
($)
|
|||
Revenue
|
-
|
-
|
||
Operating Expenses
|
301,716
|
9,140
|
||
Net Income (Loss)
|
(301,716)
|
(9,140)
|
Nine Months Ended
|
||||||
February 28
|
||||||
2011
|
2010
|
|||||
Impairment of mining property acquisition costs
|
$
|
-
|
$
|
-
|
||
Impairment of investment in Tanzania Joint Venture
|
$
|
125,000
|
$
|
-
|
||
Exploration costs
|
$
|
400
|
$
|
-
|
||
Compensation to related party
|
$
|
84,839
|
$
|
-
|
||
Other general and administrative expenses
|
$
|
91,477
|
$
|
9,140
|
Cash Flows
|
||||
Nine Months Ended
|
Nine Months Ended
|
|||
February 28, 2011
|
February 28, 2010
|
|||
Net Cash provided by (Used in) Operating Activities
|
$
|
(165,600)
|
$
|
(15,361)
|
Net Cash Provided by (Used In) Investing Activities
|
$
|
125,000
|
$
|
-
|
Net Cash Provided by Financing Activities
|
$
|
312,814
|
$
|
3,899
|
Cash increase (decrease) during the period
|
$
|
22,214
|
$
|
(11,462)
|
1.
|
90-180 days - Surveying, Trenching and Sampling. We will survey the claim. Surveying will cost up to $5,000. Trenching and sampling will cost up to $7,500. Trenching will used to accumulate samples from the surface and just below the surface. Our activities will be subcontracted to non-affiliated third parties. Time to conduct trenching and sampling - 90 days.
|
2.
|
180-210 days- Have an independent third party analyze the samples from the trenching to determine if mineralized material is below the ground. If mineralized material is found, we will attempt to define the ore body. We estimate that it will cost $3,000 to analyze the samples and will take 30 days. Delivery of the samples to the independent third party is necessary to carry out this milestone.
|
3.
|
210-370 days – If mineralized material is found, specific drilling targets will be established. We estimate this would cost $1,200. Subsequently, a process of permitting, contracting and hosting a drilling rig on site (including posting reclamation bond and all necessary government permits) which we estimate will cost $35,000 for mobilization/demobilization and $12,500 – 25,000 per drill hold, depending upon terrain and depth.
|
ITEM 3.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
ITEM 4.
|
CONTROLS AND PROCEDURES.
|
ITEM 1A.
|
RISK FACTORS
|
ITEM 5.
|
OTHER INFORMATION
|
ITEM 6.
|
EXHIBITS.
|
Exhibit No.
|
Document Description
|
31.1
|
Certification of Principal Executive Officer and Principal Financial Officer pursuant Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
Certification of Chief Executive Officer and Chief Financial Officer pursuant Section 906 of the Sarbanes-Oxley Act of 2002.
|
EARTH DRAGON RESOURCES INC.
|
|
Date: April 14, 2011
|
/s/ Thomas William Herdman
|
Thomas William Herdman
|
|
President, Secretary, Treasurer and Director
(Principal Executive Officer, Principal Financial and
|
|
Principal Accounting Officer)
|
|
a)
|
designed such disclosure controls and procedures 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 quarterly report is being prepared;
|
b)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within ninety (90) days prior to the filing date of this quarterly report (the "Evaluation Date"); and
|
c)
|
presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;
|
a)
|
all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and
|
a)
|
designed such disclosure controls and procedures 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 quarterly report is being prepared;
|
b)
|
evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within ninety (90) days prior to the filing date of this quarterly report (the "Evaluation Date"); and
|
c)
|
presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date;
|
a)
|
all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and
|