Nevada
|
7370
|
26-2007556
|
||
(State or other jurisdiction of
incorporation or organization)
|
(Primary Standard Industrial
Classification Code Number)
|
IRS I.D.
|
2316 S Wentworth Ave
Chicago, IL
|
60616
|
|
(Address of principal executive offices)
|
(Zip Code)
|
Large accelerated filer
|
o
|
Accelerated filer
|
o
|
Non-accelerated filer
|
o
|
Smaller Reporting Company
|
x
|
PART I — FINANCIAL INFORMATION
|
|||||
Item 1.
|
Financial Statements
|
3
|
|||
Item 2.
|
Management’s Discussion and Analysis or Plan of Operation.
|
23
|
|||
Item 3.
|
Quantitative and Qualitative Disclosure about Market Risk
|
32
|
|||
Item 4.
|
Controls and Procedures.
|
32
|
|||
PART II — OTHER INFORMATION
|
|||||
Item 1.
|
Legal Proceedings.
|
33
|
|||
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds.
|
33
|
|||
Item 3.
|
Defaults Upon Senior Securities
|
33
|
|||
Item 4.
|
(Removed and Reserved).
|
33
|
|||
Item 5.
|
Other Information.
|
33
|
|||
Item 6.
|
Exhibits.
|
34
|
Consolidated Balance Sheet
|
5 | |||
Consolidated Statement of Operation
|
6 | |||
Statement of Shareholders Equity
|
7 | |||
Consolidated Statement of Cash Flow
|
8 | |||
Notes to Consolidated Financial Statements
|
9 | |||
Exhibit A
|
22 |
|
HYPERERA, INC
|
||||||||
(A Development Stage Enterprise)
|
||||||||
CONSOLIDATED BALANCE SHEET
|
||||||||
June 30
|
December 31
|
|||||||
2012
|
2011
|
|||||||
(Unaudited)
|
||||||||
ASSETS | ||||||||
Current assets:
|
||||||||
Cash and cash equivalents
|
$ | 213,873 | $ | 113,597 | ||||
Total Current Assets
|
$ | 213,873 | $ | 113,597 | ||||
Other current assets:
|
||||||||
Accrued interest
|
185,880 | 129,663 | ||||||
Loan to Greensaver Corp
|
1,538,462 | 1,538,462 | ||||||
Loan to related supplier
|
8,335 | 315,989 | ||||||
Total Other Current Assets
|
$ | 1,732,677 | $ | 1,984,114 | ||||
Fixed assets
|
||||||||
Furniture & Equipment, Net
|
$ | 34,196 | $ | 33,767 | ||||
Total Fixed Assets
|
$ | 34,196 | $ | 33,767 | ||||
TOTAL ASSETS
|
$ | 1,980,746 | $ | 2,131,478 | ||||
LIABILITIES & EQUITY
|
||||||||
Current liabilities:
|
||||||||
Account payable
|
$ | 8,400 | $ | 3,000 | ||||
Loan from shareholders
|
12,577 | 7,886 | ||||||
Payroll liabilities
|
5,816 | 5,048 | ||||||
Prepaid for stock purchase
|
- | 100,000 | ||||||
Total current liabilities
|
$ | 26,793 | $ | 115,934 | ||||
Stockholders' Equity:
|
||||||||
Common stock, $0.001 par value;
|
||||||||
200,000,000 shares authorized;
|
||||||||
38,204,000 shares issued and outstanding.
|
$ | 38,204 | $ | 38,204 | ||||
Paid-in capital
|
$ | 2,344,364 | $ | 2,344,364 | ||||
Deficit accumulated during the development stage
|
(457,354 | ) | (395,763 | ) | ||||
Accumulated other comprehensive gain (loss)
|
28,739 | 28,739 | ||||||
Total stockholders' equity
|
$ | 1,953,953 | $ | 2,015,544 | ||||
TOTAL LIABILITIES & EQUITY
|
$ | 1,980,746 | $ | 2,131,478 |
HYPERERA, INC
|
||||||||||||||||||||
(A Development Stage Enterprise)
|
||||||||||||||||||||
CONSOLIDATED STATEMENT OF LOSS
|
||||||||||||||||||||
|
||||||||||||||||||||
Six Months Ended
June 30 |
Six Months Ended
June 30 |
Three Months Ended
June 30 |
Three Months Ended
June 30 |
Cumulative from
February 19,
2008 (Date
of Inception) Through |
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
June 30, 2012
|
||||||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||||
Revenues
|
$ | - | $ | - | $ | - | $ | - | $ | 228,858 | ||||||||||
Cost of Goods Sold
|
- | - | - | - | 207,998 | |||||||||||||||
Gross Profit
|
$ | - | $ | - | $ | - | $ | - | $ | 20,860 | ||||||||||
Operating expenses:
|
||||||||||||||||||||
Selling, general and administrative expenses
|
138,403 | 130,612 | 80,341 | 58,090 | 676,329 | |||||||||||||||
Depreciation and amortization expenses
|
4,862 | 3,173 | 2,482 | 1,587 | 14,098 | |||||||||||||||
Total Operating Expenses
|
$ | 143,265 | $ | 133,785 | $ | 82,823 | $ | 59,677 | $ | 690,427 | ||||||||||
Operating Loss
|
$ | (143,265 | ) | $ | (133,785 | ) | $ | (82,823 | ) | $ | (59,677 | ) | $ | (669,567 | ) | |||||
Investment income, net
|
$ | 81,676 | $ | 44,989 | $ | 40,831 | $ | 35,502 | $ | 212,215 | ||||||||||
Interest Expense, net
|
2 | - | - | - | 2 | |||||||||||||||
Loss before income taxes
|
(61,591 | ) | (88,796 | ) | (41,992 | ) | (24,175 | ) | (457,354 | ) | ||||||||||
Loss tax expense
|
- | - | - | - | - | |||||||||||||||
Net Loss
|
$ | (61,591 | ) | $ | (88,796 | ) | $ | (41,992 | ) | $ | (24,175 | ) | $ | (457,354 | ) | |||||
Net loss per common share- Basics
|
$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | |||||
Net loss per common share- Diluted
|
$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | |||||
Other comprehensive loss, net of tax:
|
||||||||||||||||||||
Foreign currency translation adjustments
|
- | 5,319 | - | 5,364 | 28,739 | |||||||||||||||
Other comprehensive loss
|
- | 5,319 | - | 5,364 | $ | 28,739 | ||||||||||||||
Comprehensive Loss
|
(61,591 | ) | (83,477 | ) | (41,992 | ) | (18,811 | ) | $ | (428,615 | ) |
HYPERERA, INC
|
||||||||||||||||||||||||
(A Development Stage Enterprise)
|
||||||||||||||||||||||||
STATEMENT OF STOCKHOLDERS EQUITY (Unaudited)
|
||||||||||||||||||||||||
The Period February 19, 2008 ( Date of Inception) through June 30, 2012
|
||||||||||||||||||||||||
Deficit
|
||||||||||||||||||||||||
Accumulated
|
Accumulated
|
|||||||||||||||||||||||
Additional
|
During the
|
Other
|
Total
|
|||||||||||||||||||||
Common Stock
|
Paid-in
|
Development
|
Comprehensive
|
Stockholders'
|
||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Stage
|
Income (Loss)
|
Equity
|
|||||||||||||||||||
Balance, December 31, 2008
|
27,939,000 | $ | 27,939 | $ | 230,231 | $ | (51,611 | ) | $ | (311 | ) | $ | 206,248 | |||||||||||
Balance, December 31, 2009
|
27,999,000 | $ | 27,999 | $ | 242,171 | $ | (90,244 | ) | $ | (453 | ) | $ | 179,473 | |||||||||||
Balance, December 31, 2010
|
35,984,000 | $ | 35,984 | $ | 1,831,186 | $ | (281,478 | ) | $ | 22,561 | $ | 1,608,253 | ||||||||||||
Issuance of common stocks
|
||||||||||||||||||||||||
to shareholders @0.2 per
|
||||||||||||||||||||||||
share on January 1, 2011
|
50,000 | $ | 50 | $ | 9,950 | $ | 10,000 | |||||||||||||||||
Issuance of common stocks
|
||||||||||||||||||||||||
to shareholders @0.2153 per
|
||||||||||||||||||||||||
share on March 31, 2011
|
1,660,000 | $ | 1,660 | $ | 355,738 | $ | 357,398 | |||||||||||||||||
Issuance of common stocks
|
||||||||||||||||||||||||
to shareholders @0.30 per
|
||||||||||||||||||||||||
share on May 1, 2011
|
210,000 | $ | 210 | $ | 62,790 | $ | 63,000 | |||||||||||||||||
Issuance of common stocks
|
||||||||||||||||||||||||
to shareholders @0.20 per share
|
||||||||||||||||||||||||
on June 30, 2011
|
200,000 | $ | 200 | $ | 39,800 | $ | 40,000 | |||||||||||||||||
Issuance of common stocks
|
||||||||||||||||||||||||
to shareholders @0.45 per share
|
||||||||||||||||||||||||
on July 1, 2011
|
100,000 | $ | 100 | $ | 44,900 | $ | 45,000 | |||||||||||||||||
Adjustment for Rate Exchange
|
$ | 6,178 | $ | 6,178 | ||||||||||||||||||||
Net loss for the period
|
||||||||||||||||||||||||
ended December 31, 2011
|
|
|
|
$ | (114,285 | ) |
|
$ | (114,285 | ) | ||||||||||||||
Balance, December 31, 2011
|
38,204,000 | $ | 38,204 | $ | 2,344,364 | (395,763 | ) | $ | 28,739 | 2,015,544 | ||||||||||||||
Net loss for the period
|
||||||||||||||||||||||||
ended June 30, 2012
|
|
|
|
$ | (61,591 | ) |
|
$ | (61,591 | ) | ||||||||||||||
Balance, June 30 , 2012
|
38,204,000 | $ | 38,204 | $ | 2,344,364 | $ | (457,354 | ) | $ | 28,739 | $ | 1,953,953 |
HYPERERA, INC
|
||||||||||||||||||||
(A Development Stage Enterprise)
|
||||||||||||||||||||
CONSOLIDATED STATEMENT OF CASH FLOWS
|
||||||||||||||||||||
Six Months Ended
June 30 |
Six Months Ended
June 30 |
Three Months Ended
June 30 |
Three Months Ended
June 30 |
Cumulative from
February 19,
2008
(Date of Inception) Through
|
||||||||||||||||
2012
|
2011
|
2012
|
2011
|
June 30, 2012
|
||||||||||||||||
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
(Unaudited)
|
||||||||||||||||
Operating Activities:
|
||||||||||||||||||||
Net Loss
|
$ | (61,591 | ) | $ | (88,796 | ) | $ | (41,992 | ) | $ | (24,175 | ) | $ | (457,354 | ) | |||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||||||||||
Non-cash portion of share based legal fee expense
|
- | - | - | - | 4,170 | |||||||||||||||
Non-cash portion of share based consulting fee expense
|
- | - | - | - | 20,000 | |||||||||||||||
Depreciation
|
4,862 | 3,173 | 2,482 | 1,587 | 14,097 | |||||||||||||||
Loans Greensaver Corp
|
- | (1,538,461 | ) | - | (1,538,461 | ) | (1,538,462 | ) | ||||||||||||
Loans to related supplier
|
307,654 | 717,905 | 306,116 | 1,465,405 | (8,335 | ) | ||||||||||||||
Accrued interest receivable
|
(56,217 | ) | (44,652 | ) | (15,398 | ) | (35,379 | ) | (185,880 | ) | ||||||||||
Account payable
|
5,400 | 600 | 6,600 | 600 | 8,400 | |||||||||||||||
Payroll liabilities
|
768 | 3,799 | 768 | (392 | ) | 5,816 | ||||||||||||||
Loan from shareholders
|
4,691 | 6,901 | 4,691 | 6,901 | 12,577 | |||||||||||||||
Net cash provided by operating activities
|
$ | 205,567 | $ | (939,531 | ) | $ | 263,267 | $ | (123,914 | ) | $ | (2,124,971 | ) | |||||||
Investing Activities:
|
||||||||||||||||||||
Purchase Furniture & Equipment
|
(5,291 | ) | (1,191 | ) | (3,819 | ) | - | (48,293 | ) | |||||||||||
Net cash provided by investing activities
|
$ | (5,291 | ) | $ | (1,191 | ) | $ | (3,819 | ) | $ | - | $ | (48,293 | ) | ||||||
Financing Activities:
|
||||||||||||||||||||
Proceeds from issuance of common stock
|
- | 430,398 | - | 63,000 | 2,358,398 | |||||||||||||||
Prepaid for stock purchase
|
(100,000 | ) | - | (100,000 | ) | - | - | |||||||||||||
Net cash provided by financing activities
|
$ | (100,000 | ) | $ | 430,398 | $ | (100,000 | ) | $ | 63,000 | $ | 2,358,398 | ||||||||
Effect of Exchange Rate on Cash
|
$ | - | $ | 5,319 | $ | - | $ | 5,364 | $ | 28,739 | ||||||||||
Net increase (decrease) in cash and cash equivalents
|
$ | 100,276 | $ | (505,005 | ) | $ | 159,448 | $ | (55,550 | ) | $ | 213,873 | ||||||||
Cash and cash equivalents at beginning of the period
|
$ | 113,597 | $ | 589,696 | $ | 54,425 | $ | 140,241 | $ | - | ||||||||||
Cash and cash equivalents at end of the period
|
$ | 213,873 | $ | 84,691 | $ | 213,873 | $ | 84,691 | $ | 213,873 | ||||||||||
Supplemental schedule of non-cash investing and financing activities:
|
||||||||||||||||||||
Common stock issued pursuant to stock subscription receivable
|
$ | - | $ | 40,000.00 | $ | - | $ | 40,000.00 | $ | - |
a.
|
Persuasive evidence of an arrangement exists (paragraphs 985-605-25-15 through 25-17).
|
b.
|
Delivery has occurred (paragraphs 985-605-25-18 through 25-29).
|
c.
|
The vendor’s fee is fixed or determinable (see paragraphs 985-605-25-30 through 25-40).
|
d.
|
Collectability is probable (paragraphs 985-605-25-13 through 25-14 and 985-605-25-30 through 25-40).
|
(1)
|
Sales of Hardware
|
(2)
|
Sales of Software
|
·
|
Persuasive evidence of an arrangement exists
|
·
|
Delivery has occurred
|
·
|
The vendor’s fee is fixed or determinable
|
·
|
Collectability is probable.
|
(3)
|
Multiple-element Arrangement for Sales of Hardware, Software and CIS:
|
·
|
Acts as principal in the transaction.
|
·
|
Has risk and rewards of ownership, such as risk of loss for collection, delivery and returns, and
|
·
|
Takes title to the products,
|
·
|
Flexibility in pricing
|
·
|
Assumes credit risk;
|
·
|
The company can change the products or perform part of the service, and the Company customizes the supplier’s software based on customer’s needs.
|
Name
|
Title
|
Share QTY
|
Amount
|
Date
|
% of Common Share*
|
||||||||||||
Zhi Yong Li
|
Chairman
|
10,000,000 | $ | 10,000.00 |
2/19/2008
|
26.18 | % | ||||||||||
Wei Wu
|
President
|
5,000,000 | $ | 5,000.00 |
2/19/2008
|
13.09 | % | ||||||||||
Hui Tao Zhou
|
Director
|
5,000,000 | $ | 5,000.00 |
2/19/2008
|
13.09 | % | ||||||||||
Jian Wu Zhang
|
Director
|
100,000 | $ | 3,000.00 |
3/31/2008
|
0.26 | % | ||||||||||
Ming Liu
|
Director
|
100,000 | $ | 3,000.00 |
3/31/2008
|
0.26 | % | ||||||||||
Hong Tao Bai
|
Vice-President
|
100,000 | $ | 3,000.00 |
3/31/2008
|
0.26 | % | ||||||||||
Nan Su
|
CTO
|
100,000 | $ | 3,000.00 |
3/31/2008
|
0.26 | % | ||||||||||
Simon Bai
|
CFO
|
0.00 | % | ||||||||||||||
Total
|
20,400,000 | $ | 32,000.00 | 53.40 | % |
Six Months Ended
|
Six Months Ended
|
Three Months Ended
|
Three Months Ended
|
Cumulative from
February 19, 2008 (Dateof Inception) |
|||||||||||||||||
June 30
|
June 30
|
June 30
|
June 30
|
Through
|
|||||||||||||||||
2012
|
2011
|
2012
|
2011
|
June 30, 2012
|
|||||||||||||||||
Expense | |||||||||||||||||||||
Bank Service Charges
|
435 | 178 | 217 | 27 | 2,802 | ||||||||||||||||
Dues & Subscriptions
|
- | - | - | - | 110 | ||||||||||||||||
License & Registration
|
- | 26 | - | 26 | 12,344 | ||||||||||||||||
Meals and Entertainment
|
1,820 | 2,287 | - | 1,102 | 14,811 | ||||||||||||||||
Computer and Internet Expenses
|
- | - | - | - | 154 | ||||||||||||||||
Meeting & Conference
|
- | 824 | - | 824 | 3,857 | ||||||||||||||||
Vehicle and Vessel Usage Tax
|
- | - | - | - | 74 | ||||||||||||||||
Telephone Expense
|
- | 157 | - | 45 | 1,213 | ||||||||||||||||
Office Supplies
|
2,321 | 30,132 | 362 | 7,675 | 30,901 | ||||||||||||||||
Utilities
|
2,371 | 4,157 | 1,069 | 1,757 | 9,661 | ||||||||||||||||
Auto
|
5,665 | 1,552 | 1,127 | 610 | 14,370 | ||||||||||||||||
Depreciation
|
4,862 | 3,173 | 2,482 | 1,587 | 14,097 | ||||||||||||||||
Employees Welfare Expense
|
923 | - | 462 | - | 923 | ||||||||||||||||
Gift and promotion Expense
|
5,173 | - | - | - | 5,173 | ||||||||||||||||
Insurance
|
1,606 | 3,342 | 1,083 | 1,807 | 7,090 | ||||||||||||||||
Bank interest
|
31 | - | (0 | ) | - | 31 | |||||||||||||||
Purchase of Bank Note
|
- | 7 | - | - | 7 | ||||||||||||||||
Small tools and equipment
|
150 | - | - | - | 150 | ||||||||||||||||
Supplies
|
- | 1,307 | - | 1,206 | 1,307 | ||||||||||||||||
Postage
|
825 | 621 | 23 | 303 | 1,977 | ||||||||||||||||
Payroll Expenses
|
31,486 | 52,132 | 16,343 | 24,304 | 130,152 | ||||||||||||||||
Professional Fees
|
59,272 | 5,772 | 47,404 | 2,907 | 252,965 | ||||||||||||||||
Rent Expense
|
21,274 | 19,444 | 11,374 | 9,901 | 130,404 | ||||||||||||||||
Tax-China Operation
|
- | - | 1,300 | ||||||||||||||||||
Travel Expense
|
5,053 | 8,674 | 877 | 5,596 | 54,555 | ||||||||||||||||
Total Expense | 143,265 | 133,785 | 82,823 | 59,677 | 690,427 |
·
|
Ultrasonic and microwave catalysis reactor: The add-on technology for this reactor was developed by our Company and we intend in the future to apply for intellectual property rights protection. Based upon our internal testing, we believe that it is different from other microwave catalytic reactors through the scientific coupling of ultrasound and microwave, an increase in the peak microwave power and treatment performance was achieved at significantly reduced energy consumption. We intend to manufacture this equipment ourselves. We have not sold any of this equipment and we no inventory of this equipment for sale.
|
·
|
Three-dimensional, pulse electric flocculation reactor: The add-on technology for this reactor was developed by our Company and we intend in the future to apply for intellectual property rights protection. Based upon our internal testing, we believe that it is different from other electric flocculation reactors in that it provides maximized electrode surface area and minimized polar distance, reducing energy consumption. We intend to manufacture this equipment ourselves. We have not sold any of this equipment and we no inventory of this equipment for sale.
|
·
|
This vortex current magnetic catalytic reactor technology was developed by our Company and we intend in the future to apply for intellectual property rights protection. Based upon our internal testing, we believe that through a unique design by coupling the use of magnetic field effect, the friction effect and the electric field effect, this reactor provides improved the oxidative degradation rate of soluble COD at reduced power consumption and treatment cost. We intend to manufacture this equipment ourselves. We have not sold any of this equipment and we no inventory of this equipment for sale.
|
·
|
This is manufactured by Krebs Engineers and we only intend to order on a purchase order basis as we do not have a contract with them. A high-speed vortex current generator is placed at the top of the central tube of the "cyclone HCR deep well biofilter reactor" with an inlet pipe at the center of the vortex generator. Great suction force (vacuum) will be generated when wastewater vortex at high-speed, and the inhaled air will be cut into ultramicro bubbles swirling down along the central tube with the advantages of a jet aeration, deep well aeration, and Swirl-Mixing aeration coming together. The center tube and outer reaction zone are filled with "bioreactor balls" to create a microbial growth environment for slow
proliferation microorganisms such as nitrifying bacteria and nitrification microorganisms for optimization and concentration of variant dominant bacterial to form an efficient microbial membrane.
|
·
|
This Inorganic micro-filtration membrane filter was developed by our Company and we intend in the future to apply for intellectual property rights protection. It uses the design of axis, radial two-way reciprocating folding inorganic ultrafiltration membrane, micro-filtration membrane and vortex current water intake invented by our company, and based upon our internal testing, we believe it has characteristics such as acid resistance, alkali resistance, high temperature resistance, high pressure resistance, resistance to organic solvent and resistance to high turbidity, easy installation as well as easy combination. The filter overcome the tolerance limitations of organic film towards acid, alkaline, organic solvent,
free chlorine and turbidity, which greatly improved its service lifetime; contradictions of the accuracy and throughput is effectively resolved through the maximization of the filtration area within unit space. We intend to manufacture this equipment ourselves. We have not sold any of this equipment and we no inventory of this equipment for sale.
|
·
|
Emission standards for odor pollutants
|
·
|
Urban Regional Environmental Noise Standard
|
·
|
Standard for construction and Acceptance
|
·
|
Standard for construction design of water supply
|
·
|
Water supply and drainage design manual
|
At June 30
|
At June 30
|
At December 31
|
||||||||||
2012
|
2011
|
2011
|
||||||||||
Current Ratio*
|
77.55 | 119.37 | 18.09 | |||||||||
Cash
|
$ | 213,873 | $ | 84,691 | $ | 113,597 | ||||||
Working Capital***
|
$ | 1,705,884 | $ | 1,887,316 | $ | 1,981,777 | ||||||
Total Assets
|
$ | 1,980,746 | $ | 2,012,029 | $ | 2,131,478 | ||||||
Total Liabilities
|
$ | 26,793 | $ | 16,856 | $ | 115,934 | ||||||
Total Equity
|
$ | 1,953,953 | $ | 1,910,984 | $ | 2,015,544.00 | ||||||
Total Debt/Equity**
|
0.01 | 0.01 | 0.06 |
Exhibit No.
|
Document Description
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10.1
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Agreement between Hyperera Technology(Beijing) Co., Ltd, our subsidiary, and Bazhou Development Zone Yingyuan Mechanical Processing Factory
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31.1
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CERTIFICATION of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.
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31.2
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CERTIFICATION of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.
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32.1 *
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CERTIFICATION of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002
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32.2 *
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CERTIFICATION of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002
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Exhibit 101
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Interactive data files formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Cash Flows, and (iv) the Notes to the Consolidated Financial Statements.**
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101.INS
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XBRL Instance Document**
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101.SCH
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XBRL Taxonomy Extension Schema Document**
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document**
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document**
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101.LAB
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XBRL Taxonomy Extension Label Linkbase Document**
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document**
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Title
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Name
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Date
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Signature
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Principal Executive Officer
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Zhi Yong Li
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August 6, 2012
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/s/ Zhi Yong Li
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SIGNATURE
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NAME
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TITLE
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DATE
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/s/ Zhi Yong Li
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Zhi Yong Li
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Principal Executive Officer and Director
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August 6, 2012
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/s/ Simon Bai
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Simon Bai
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Principal Financial Officer and
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August 6, 2012
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Principal Accounting Officer
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Exhibit No.
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Document Description
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10.1
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Agreement between Hyperera Technology(Beijing) Co., Ltd, our subsidiary, and Bazhou Development Zone Yingyuan Mechanical Processing Factory
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31.1
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CERTIFICATION of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.
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31.2
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CERTIFICATION of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002.
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32.1 *
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CERTIFICATION of CEO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002
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32.2 *
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CERTIFICATION of CFO PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEYACT OF 2002
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Exhibit 101
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Interactive data files formatted in XBRL (eXtensible Business Reporting Language): (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Operations, (iii) the Consolidated Statements of Cash Flows, and (iv) the Notes to the Consolidated Financial Statements.**
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101.INS
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XBRL Instance Document**
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101.SCH
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XBRL Taxonomy Extension Schema Document**
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101.CAL
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XBRL Taxonomy Extension Calculation Linkbase Document**
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101.DEF
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XBRL Taxonomy Extension Definition Linkbase Document**
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101.LAB
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XBRL Taxonomy Extension Label Linkbase Document**
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101.PRE
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XBRL Taxonomy Extension Presentation Linkbase Document**
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Hyperera, Inc.
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Dated: August 6, 2012
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By:
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/s/ Zhi Yong Li
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Zhi Yong Li
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Chief Executive Officer
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Hyperera, Inc. | |||
Dated: August 6, 2012
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By:
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/s/ Simon Bai
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Simon Bai
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Chief Financial Officer
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Hyperera, Inc.
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Dated: August 6, 2012
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By:
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/s/ Zhi Yong Li
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Zhi Yong Li
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Chief Executive Officer
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Hyperera, Inc. | |||
Dated: August 6, 2012
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By:
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/s/ Simon Bai
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Simon Bai
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Chief Financial Officer
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RELATED PARTY TRANSACTIONS
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6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2012
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Notes to Financial Statements | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Note C. RELATED PARTY TRANSACTIONS | Common Shares Issued to Executive and Non-Executive Officers and Directors
As of June 30, 2012, total 20,400,000 shares were issued to officers and directors were not changed. But, the total outstanding shares were changed to 38,204,000; the percentage of common shares issued to executive and non-executive officers and directors have been changed accordingly. Please see the Table below for details:
* The percentage was based on the total outstanding shares of 38,204,000 as of June 30, 2012.
Loans from Shareholders
On March 2, 2008, founder of the Company, Mr. Zhiyong Li opened a bank account at Chicago branch with CitiBank. Mr. Zhiyong Li loaned $500.00 to the Company to open the bank account, and the same amount have returned back to him on March, 2009. In the year of 2009, the Companys founder and CEO, Mr. Zhiyong Li have loaned $53,631 to Beijing subsidiary, Hyperera Technology (Beijing) Co. Ltd for operating and administrating expenses.
In 2010, the Company repaid the loan balance to Mr. Li Zhiyong. As of December 31, 2010, there was travel related expense of $985 paid by Mr. Li Zhiyong, which was accounted as loans from shareholders.
From January to December 31, 2011, Mr. Zhiyong Li advanced additional amount of $6,901 to the Company. As of December 31, 2011, the balance of Loans from Shareholder is $7,886. The loans would be repaid as request without interest.
From January to June 30, 2012, Mr. Zhiyong Li advanced additional amount of $ 4,691 to the Company.
Therefore, as of June 30, 2012, the balance of loan from Shareholder is $12,577. The loans would be repaid as request without interest.
Loans to Related Party Supplier- Beijing Chaoran
From October to December 2010, the Company advanced short-term loans of $995,836 as of December 31, 2010 to related party supplier, Beijing Chaoran. The interest rate was agreed at annual rate of 3.0%, the accrued interest receivables were $3,127. The repayment terms were demanded as request by the Company.
From January to March 31, 2011, the Company advanced additional short-term loans of $747,500 to related party supplier, Beijing Chaoran. The interest rate was estimated at annual rate of 3%, the accrued interest receivables were $9,273.
On April 15, 2011, Beijing Chaoran returned the loan amount of $1,538,462 to the Company; the Company signed a loan agreement with un-related party Greensaver Corporation to advance loan amount of $1,538,462 at annual interest rate of 10%. The loan term is for short-term 6 months with renewable term of six months.
As of December 31, 2011, the balance of loan amount to Related Party Supplier-Beijing Chaoran is $ 315,989, and the interest incomes from Beijng Chaoran were based on annual interest rate of 3%.
As of March 31, 2012, the balance of loan amount to Related Party Supplier-Beijing Chaoran is $ 314,451, and the interest incomes from Beijng Chaoran were based on annual interest rate of 3%. As of March 31, 2012, the Company has $ 23,064 accrued interest receivable from Beijing Chaoran.
In the period of April to June 30, 2012, the Related Party Supplier-Beijing Chaoran returned $ 306,116 to the Company. At June 30, 2012, the Company has $ 25,422 accrued interest receivable from Beijing Chaoran, and in the same day, Beijing Chaoran paid the full amount of $ 25,422 accrued interest receivable to the Company. As of June 30, 2012, the balance of loan amount to Related Party Supplier-Beijing Chaoran is $ 8,335, and the interest incomes from Beijng Chaoran were based on annual interest rate of 3%.
Cost of Goods Sold
The Companys purchase cost is primarily from supplier, Beijing Chaoran Chuangshi Technology Co., Ltd (Beijing Chaoran), owned 100% by Mr.Liancheng Li, the father of Mr. Zhiyong Li. The management believes that the purchase price for the parts will be market price.
The products the Company will sell are provided by Beijing Chaoran Chuangshi Technology Co., Ltd. Beijing Chaoran was established in 2002 specializing in management information system applied in power industry. The Company signed a two-year software license and distribution agreement with Beijing Chaoran on March 1, 2009.
Under the terms of the agreement Beijing Chaoran authorizes Hyperera to be its exclusive sales and service agent for suegery anesthesia clinic management software and ICU management system product lines. The product lines shall include the products that Beijing Chaoran developed before the agreement signed and the products that will be developed solely by Beijing Chaoran during the term of the agreement. Beijing Chaoran is the exclusive supplier of the products Hyperera sells. The management of Hyperera, Inc. believes that the purchase price for the system and software from Hyperera will be market price. Hyperera, Inc. and Beijing Chaoran are two totally separated entities, i.e., Hyperara, Inc. is a USA corporation and will fully comply with USA regulations and USA general accepted accounting principles; Beijing Chaoran is a Chinese company and it will comply with Chinese legal systems. Hyperera, Inc. and Beijing Chaoran will operate independently. Beijing Chaoran, as a Chinese local company, will record their software and hardware costs based on the Chinese accounting regulations rulings. But, when Hyperera, Inc. purchases the software and hardware and the services from Beijing Chaoran, Hyperera, Inc. will assume the product and service liabilities with customers, and Hyperera, Inc. record the actual costs paid to Beijing Chaoran as long as the products or services been delivered to Hyperera, Inc. by Beijing Chaoran.
The management of Beijing Chaoran disclosed to Hyperera, Inc. that Beijing Chaoran adopted the cost plus pricing policies with market adjustment, negotiable with customers. Beijing Chaoran adopted the cost plus system for all the products for all customers including the product, surgery anesthesia clinic management software and ICU management system exclusively distributed by Hyperera, Inc. Specifically, the selling price for Beijing Chaoran is determined by total actual cost of direct materials (hardware), direct labor, and allocated overhead, plus 5-10% of total cost.
In March 1, 2009, the Company placed order to purchase the three hardware parts through Beijing Chaoran, the total cost of the hardware purchase is $207,998.00, the amount of $59,998 and $ 148,000 was prepaid on March 9 and 18, 2009 respectively.
And the prepaid amount of $59,998 became cost of good sold as of December 31, 2009, and the prepaid amount of $148,000 became cost of good sold as of March 31, 2010.
For the three months ended June 30, 2012 and 2011, there was no cost of goods sold incurred. |