0001504412-13-000301.txt : 20130802 0001504412-13-000301.hdr.sgml : 20130802 20130802124318 ACCESSION NUMBER: 0001504412-13-000301 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 11 CONFORMED PERIOD OF REPORT: 20130630 FILED AS OF DATE: 20130802 DATE AS OF CHANGE: 20130802 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BullsNBears.com, Inc. CENTRAL INDEX KEY: 0001543272 STANDARD INDUSTRIAL CLASSIFICATION: FOOD & KINDRED PRODUCTS [2000] IRS NUMBER: 452282672 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-54616 FILM NUMBER: 131005619 BUSINESS ADDRESS: STREET 1: 4731 W. ATLANTIC AVE. STREET 2: SUITE 7 CITY: DELRAY BEACH STATE: FL ZIP: 33445 BUSINESS PHONE: 561.265.5657 MAIL ADDRESS: STREET 1: 4731 W. ATLANTIC AVE. STREET 2: SUITE 7 CITY: DELRAY BEACH STATE: FL ZIP: 33445 FORMER COMPANY: FORMER CONFORMED NAME: Spicy Gourmet Manufacturing, Inc. DATE OF NAME CHANGE: 20120227 10-Q 1 bullsnbears10q630_10q.htm FORM 10Q Converted by EDGARwiz





UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

[bullsnbears10q630_10q001.jpg]


FORM 10-Q


[X]

QUARTERLY REPORT UNDER TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2013

OR

[   ]

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


Commission File Number 000-54616

 

BullsnBears.com, Inc.

(Exact name of registrant as specified in its charter)

 

Delaware

45-2282672

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)


4731 W. ATLANTIC AVE. SUITE B-7 DELRAY BEACH, FL

33445

(Address of principal executive offices)

(Zip Code)


(561) 265-5657

(Registrant's telephone number, including area code)


Indicate by check mark whether the issuer (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act 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 last 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 [X]     NO [   ]


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  


 

Large Accelerated Filer

[   ]

 

Accelerated Filer

[   ]

 

Non-accelerated Filer

[   ]

 

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 [   ]     NO [X]


APPLICABLE ONLY TO CORPORATE ISSUERS:


As of August 1, 2013, there were 11,680,000 shares of the registrant’s $0.0001 par value common stock issued and outstanding.








TABLE OF CONTENTS 

Page

 

 

PART I.  FINANCIAL INFORMATION

 

  

 

ITEM 1.

FINANCIAL STATEMENTS

3

 

 

 

 

Balance Sheets

4

 

Statements of Operations

5

 

Statements of Cash Flows

6

 

Notes to the Unaudited Financial Statements

7

 

 

 

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS.

10

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

12

ITEM 4.

CONTROLS AND PROCEDURES.

12

  

 

PART II.  OTHER INFORMATION

 

  

 

ITEM 1.

LEGAL PROCEEDINGS.

13

ITEM 1A.

RISK FACTORS.

13

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.

13

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.

13

ITEM 4.

MINE SAFETY DISCLOSURES.

13

ITEM 5.

OTHER INFORMATION.

13

ITEM 6.

EXHIBITS.

14


Special Note Regarding Forward-Looking Statements


Various statements in this report contain or may contain forward-looking statements that are subject to known and unknown risks, uncertainties and other factors which may cause actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. These forward-looking statements were based on various factors and were derived from utilizing numerous assumptions and other factors that could cause our actual results to differ materially from those in the forward-looking statements. These factors include, but are not limited to:


our recent exit from shell status, lack of profitable operations and risk we will ever generate revenues or profits,

need for additional capital,

our ability to continue as a going concern,

the development stage of our business,

our inability to manage our growth,

potential infringement of third party intellectual property rights,

our common stock is quoted on the OTC Markets,

anti-takeover aspects of our certificate of incorporation and bylaws and the ability of our Board to issue preferred stock without stockholder consent,

the application of penny stock rules to trading in our common stock,

convertible notes held by our Chairman, and

the dilutive impact of outstanding convertible notes and warrants.




2





Most of these factors are difficult to predict accurately and are generally beyond our control. You should consider the areas of risk described in connection with any forward-looking statements that may be made herein. Readers are cautioned not to place undue reliance on these forward-looking statements and readers should carefully review this report, our Annual Report on Form 10-K for the year ended December 31, 2012, as amended, and our other filings with the Securities and Exchange Commission in their entirety. Except for our ongoing obligations to disclose material information under the Federal securities laws, we undertake no obligation to release publicly any revisions to any forward-looking statements, to report events or to report the occurrence of unanticipated events. These forward-looking statements speak only as of the date of this report, and you should not rely on these statements without also considering the risks and uncertainties associated with these statements and our business.


OTHER PERTINENT INFORMATION


We maintain our web site at www.bullsnbears.com. Information on this web site is not a part of this report.


Unless specifically set forth to the contrary, when used in this report the terms “BullsNBears,” the “Company,” "we", "us", "our" and similar terms refer to BullsNBears.com, Inc., a Delaware corporation formerly known as Spicy Gourmet Manufacturing, Inc. In addition, the “second quarter of 2013” refers to the three months ended June 30, 2013, the “second quarter of 2012” refers to the three months ended June 30, 2012, “2013” refers to the year ending December 31, 2013, and “2012” refers to the year ended December 31, 2012.







3





PART I - FINANCIAL INFORMATION


ITEM 1.

FINANCIAL STATEMENTS.


BULLSNBEARS.COM, INC.

 (A Development Stage Company)

Balance Sheets


          

 

June 30,

 2013

 

December 31, 2012

ASSETS

(Unaudited)

 

 

 


Current assets

 

 

 

 

 

     Cash

$

20,038

 

$

10,673

     Other current assets

 

1,571

 

 

96

     

 

 

 

 

 

          Total Current Assets

 

21,609

 

 

10,769

 

 

 

 

 

 

Property and equipment, net of accumulated depreciation of $4,494 and $932

 

22,825

 

 

20,023

Intangible asset, net of accumulated amortization of $21,250 and $6,250

 

128,750

 

 

143,750

 

 

 

 

 

 

TOTAL ASSETS

$

173,184

 

$

174,542


      LIABILITIES AND STOCKHOLDERS' EQUITY


Current Liabilities:

 

 

 

 

 

     Accounts payable and accrued liabilities

$

20,963

 

$

21,536

     Accounts payable – related party

 

117,789

 

 

87,932

     Note payable – related party

 

10,000

 

 

150,000

     Convertible notes payable - related party

 

21,716

 

 

51,924

     Accrued interest payable - related party

 

1,440

 

 

2,138

     Convertible notes payable

 

688,000

 

 

-

     Accrued interest payable

 

29,749

 

 

-

 

 

 

 

 

 

          Total Current Liabilities

 

889,657

 

 

313,530

 

 

 

 

 

 

STOCKHOLDERS' EQUITY (DEFICIT)

 

 

 

 

 

    

Preferred stock; $0.0001 par value, 20,000,000 shares authorized, no shares issued or outstanding

 



-

 

 



-

Common stock; $0.0001 par value, 100,000,000 shares authorized,

11,680,000 and 11,680,000 shares issued and outstanding, respectively

 


1,168

 

 


1,168

Additional paid-in capital

 

218,458

 

 

218,458

Deficit accumulated during the development stage

 

(936,099)

 

 

(358,614)

 

 

 

 

 

 

            Total Stockholders' Equity (Deficit)

 

(716,473)

 

 

(138,988)

 

 

 

 

 

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

$

173,184

 

$

174,542





The accompanying notes are an integral part of these unaudited financial statements.



4





BULLSNBEARS.COM, INC.

 (A Development Stage Company)

 Statements of Operations

(Unaudited)

 

For the Three Months Ended

June 30,

 

For the Six Months Ended

June 30,

 

December 30, 2010

(Inception) to June 30,

2013

 

 

 

 

 

 

 

2013

 

2012

 

2013

 

2012

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

REVENUES

$

-

 

$

-

 

$

-

 

$

-

 

$

-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 


9,343

 

 


-

 

 


18,562

 

 


-

 

 


25,744

General and administrative

 

220,041

 

 

-

 

 

527,092

 

 

4,000

 

 

711,878

Warrant re-pricing expense

 

-

 

 

-

 

 

-

 

 

-

 

 

164,508

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Operating Expenses

 

229,384

 

 

-

 

 

545,654

 

 

4,000

 

 

902,130

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OPERATING LOSS

 

(229,384)

 

 

-

 

 

(545,654)

 

 

(4,000)

 

 

(902,130)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

(15,096)

 

 

-

 

 

(31,831)

 

 

-

 

 

(33,969)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET LOSS

$

(244,480)

 

$

-

 

$

(577,485)

 

$

(4,000)

 

$

(936,099)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC NET LOSS PER COMMON SHARE


$


(0.02)

 


$


-

 


$


(0.05)

 


$


(0.00)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BASIC WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING




11,680,000

 







11,680,000

 

 




11,680,000

 




11,680,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited financial statements.



5





BULLSNBEARS.COM, INC.  

(A Development Stage Company)

 Statements of Cash Flows

(Unaudited)


 

 

 

 

 

 

 

 

 

December 30, 2010

(Inception) to June 30, 2013

 

 

 

 

 

 

 

For the Six Months Ended

June 30,

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

2012

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

Net loss

$

(577,485)

 

$

(4,000)

 

$

(936,099)

Items to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

18,562

 

 

-

 

 

25,744

Warrant re-pricing expense

 

-

 

 

-

 

 

164,508

Common stock issued for settlement

 

-

 

 

-

 

 

118

Changes in operating assets and liabilities

 

 

 

 

 

 

 

 

(Increase) decrease in other assets

 

(1,475)

 

 

-

 

 

(1,571)

Increase in accounts payable and accrued liabilities

 

29,176

 

 

-

 

 

50,712

Increase (decrease) in related party accounts payable and accrued interest

 


29,159

 

 


-

 

 


119,229

Net Cash Used in Operating Activities

 

(502,063)

 

 

(4,000)

 

 

(577,359)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

Purchase of equipment

 

(6,364)

 

 

-

 

 

(6,364)

Net Cash Used in Investing Activities

 

(6,364)

 

 

-

 

 

(6,364)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

Proceeds from convertible note payable, related party

 

-

 

 

-

 

 

30,969

Payments on convertible notes payable, related party

 

(180,208)

 

 

-

 

 

(180,208)

Proceeds from notes payable, related party

 

25,000

 

 

 

 

 

25,000

Payments on notes payable, related party

 

(15,000)

 

 

 

 

 

(15,000)

Proceeds from convertible notes payable

 

688,000

 

 

-

 

 

688,000

Common stock issued for cash

 

-

 

 

-

 

 

55,000

Net Cash Provided by Financing Activities

 

517,792

 

 

-

 

 

603,761

      

 

 

 

 

 

 

 

 

INCREASE (DECREASE) IN CASH

 

9,365

 

 

(4,000)

 

 

20,038

 

 

 

 

 

 

 

 

 

CASH AT BEGINNING OF PERIOD

 

10,673

 

 

5,000

 

 

-

 

 

 

 

 

 

 

 

 

CASH AT END OF PERIOD

$

20,038

 

$

1,000

 

$

20,038

 

 

 

 

 

 

 

 

 

CASH PAID FOR:

 

 

 

 

 

 

 

 

   Interest

$

2,780

 

$

-

 

$

2,780

   Income taxes

$

-

 

$

-

 

$

-

 

 

 

 

 

 

 

 

 

NON-CASH FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Note payable issued for intangible assets

$

-

 

$

-

 

$

150,000

Related party convertible note payable issued for fixed assets

$

-

 

$

-

 

$

20,955

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited financial statements.



6





BULLSNBEARS.COM, INC.

 (A Development Stage Company)

Notes to the Unaudited Financial Statements


1.

Nature of Operations and Continuance of Business


The unaudited interim financial statements included herein have been prepared by BullsnBears.com, Inc. (the “Company”) in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (the “SEC”). We suggest that these interim financial statements be read in conjunction with the audited financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2012, as amended, as filed with the SEC. We believe that all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein and that the disclosures made are adequate to make the information not misleading.  The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.  Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year as reported in Form 10-K have been omitted.


2.

Going Concern


These financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. During the period from inception through June 30, 2013, the Company has generated no revenues and has an accumulated deficit of $936,099. The continuation of the Company as a going concern is dependent upon the continued financial support from its management, its ability to identify future investment opportunities and obtain the necessary debt or equity financing and generating profits from the Company’s future operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern.  These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.


3.

Related Party Transactions


Notes and Convertible Notes Payable


On October 20, 2012, in accordance with an Asset Purchase Agreement, the Company and a current officer and director of the Company entered into a one year, 6% Promissory Note for $150,000, prior to him joining the Company.  Accrued interest on the Promissory Note totaled $1,775 at December 31, 2012.  During the six months ended June 30, 2013, the Company repaid the note and a total of $2,405 in accrued interest.

 

On October 31, 2012, the Company and an officer and director of the Company entered into a one year, 10% Senior Convertible Note for office equipment totaling $20,955 and supplies totaling $761, or a total of $21,716. The principal amount of the Senior Convertible Note can be convertible, at the sole option of the holder and in whole or in part, into shares of common stock of the Company at a conversion price to be determined by the Board of Directors of the Company at or prior to the maturity date.  The Senior Convertible Note and the payment of the principal thereof and interest thereon shall at all times and in all respects constitute the Senior Indebtedness of the Company and shall not be junior or subordinate in right of payment to any other indebtedness of the Company.  Accrued interest on the Senior Convertible Note totaled $1,440 and $363 at June 30, 2013 and December 31, 2012, respectively.


On December 31, 2012, the Company and an officer and director of the Company entered into a one-year, 10% Senior Convertible Note for cash advances totaling $20,700 and expenses paid on behalf of the company totaling $9,508, or a total of $30,208.    During the six months ended June 30, 2013, the Company repaid the note and a total of $375 in accrued interest.


During May and June 2013, the Company borrowed $10,000 and $15,000, respectively, in short-term loans from an officer and director of the Company.  At June 30, 2013, $10,000 of the short-term loans were outstanding, which was subsequently repaid in July 2013.





7





BULLSNBEARS.COM, INC.

 (A Development Stage Company)

Notes to the Unaudited Financial Statements


3.

Related Party Transactions (Continued)


Office Space


The Company pays an officer $3,114 per month for rent of office space on a month-to-month basis.  At June 30, 2013 and December 31, 2012, The Company owed the officer $0 and $9,432 in past due rent which is included in accounts payable, related party.


Consulting Expense


The Company owes an officer $117,789 for consulting expense which is included in accounts payable, related party.


4.

Convertible Promissory Notes Payable


During January through June 30, 2013, the Company issued twenty eight Convertible Promissory Notes (the “Notes”) for cash totaling $688,000.  The Notes bear interest at 10% per annum, are unsecured and due in one from the date of issuance.  At the maturity date, the holders of the Notes have the right to convert the unpaid principal and accrued interest into shares of common stock of the Company at a price of $1.00 per share.  Accrued interest on the Notes was $29,749 at June 30, 2013.


5.

Common Stock Warrants


On December 30, 2010, pursuant to the Chapter 11 Plan of Reorganization confirmed by the U.S. Bankruptcy Court (the Court) in the matter of Spicy Gourmet Organics, Inc. ("SGO"), the Court ordered the distribution of warrants to purchase common stock of the Company to all administrative creditors of SGO.   The creditors received five warrants in the company for each $0.05 of SGO's administrative debt held, or an aggregate of 5,000,000 warrants consisting of 1,000,000 "A Warrants" each convertible into one share of common stock at an exercise price of $3.00; 1,000,000 "B Warrants" each convertible into one share of common stock at an exercise price of $4.00; 1,000,000 "C Warrants" each convertible into one share of common stock at an exercise price of $5.00; 1,000,000 "D Warrants" each convertible into one share of common stock at an exercise price of $6.00; and 1,000,000 "E Warrants" each convertible into one share of common stock at an exercise price of $7.00. All warrants are exercisable at any time prior to November 19, 2015.


During October 2012, the Company agreed to reduce the exercise price of the outstanding warrants to $0.25 per share.  As a result, the reduction of exercise price was considered a modification in accordance with ASC 718, whereby the difference in the fair value of the warrants measured immediate preceding and at the modification date of $164,508 was recognized as expense upon modification.


The fair value of the warrants was computed using the Black-Scholes pricing model with the following assumptions:


Expected Term

3 years

Expected volatility

 255.30%

Risk free interest rate

 0.39%

Expected dividend yield

0.00%


The following table summarizes the outstanding warrants and associated activity for the six months ended June 30, 2012 and the year ended December 31, 2012:








8






BULLSNBEARS.COM, INC.

 (A Development Stage Company)

Notes to the Unaudited Financial Statements


5.

Common Stock Warrants (Continued)


 

 



Number of Warrants Outstanding

 

 



Weighted Average Price

 

Weighted Average Remaining Contractual Life

Balance, December 31, 2012

 

5,000,000

 

$

0.25

 

2.89

Granted

 

-

 

 

-

 

-

Exercised

 

-

 

 

-

 

-

Expired

 

-

 

 

-

 

-

Balance, June 30, 2013

 

5,000,000

 

$

0.25

 

2.39


The aggregate intrinsic value of the above warrants as of June 30, 2013 and December 31, 2012 was $9,350,000 and $13,750,000 based on a quoted market price of the Company’s common stock of $1.87 and $3.00 per share, respectively.




9





ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.


FORWARD-LOOKING STATEMENTS


This Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) contains forward-looking statements that involve known and unknown risks, significant uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed, or implied, by those forward-looking statements.  You can identify forward-looking statements by the use of the words may, will, should, could, expects, plans, anticipates, believes, estimates, predicts, intends, potential, proposed, or continue or the negative of those terms.  These statements are only predictions. In evaluating these statements, you should consider various factors which may cause our actual results to differ materially from any forward-looking statements.  Although we believe that the exceptions reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.  Therefore, actual results may differ materially and adversely from those expressed in any forward-looking statements.  We undertake no obligation to revise or update publicly any forward-looking statements for any reason.


OVERVIEW


Prior to our acquisition in October 2012, of the URL domain names and websites of bullsnbears.com and bullnbearsinfo.com we were a “shell company” as that term is defined in Federal securities laws. We are now a development stage company that is in the process of developing a financial networking portal to fill the gap we believe that currently exists between the financial community and investors. We expect that the financial social media network will provide information and business gathering place for investors, public and private companies, brokers, Securities and Exchange Commission attorneys and accounting firms, all in one location. We expect to generate revenue predominantly through advertising, subscription and e-commerce activities.


Following the closing of the acquisition of these assets, during the fourth quarter of 2012 we commenced the design and development of the system, and these efforts continued during the first six months of 2013. In order to provide the funds necessary to fully implement our business model and properly capitalize our company through the first stages of our business development plan and satisfy our obligations as they become due, we will need to raise approximately $4,100,000.  We expect to use those funds to provide funds for general operating capital, including funds necessary to hire and compensate executive and other employees, as well as for IT development, including staffing, support and equipment, advertising and marketing, expansion of business operations, and general working capital. Although we have received approximately $588,000 in net proceeds from the sale of our one-year 10% convertible promissory notes during the first six months of 2013, we used $523,000 of these proceeds for the payment of our operating expenses and to satisfy related party debt obligations and we are using the proceeds for general working capital. We do not have any firm commitments to provide the capital which is necessary to fund the development of our company and there are no assurances we will be successful in raising the necessary capital. In that event, our ability to fully implement our business model and begin generating revenues from our operations would be in jeopardy.


GOING CONCERN


We have incurred net losses of $936,099 since inception through June 30, 2013. The report of our independent registered public accounting firm on our financial statements for the period of inception (December 30, 2010) through December 31, 2012 contains an explanatory paragraph regarding our ability to continue as a going concern based upon our loss from operations and working capital deficit. These factors, among others, raise substantial doubt about our ability to continue as a going concern. Our financial statements do not include any adjustments that might result from the outcome of this uncertainty. There are no assurances we will be successful in our efforts to generate revenues or report profitable operations or to continue as a going concern, in which event investors would lose their entire investment in our company.



10






RESULTS OF OPERATIONS


We did not generate any revenues during any period presented in the unaudited financial statements included in this report. During the second quarter of 2013 and the six months ended June 30, 2013, our operating expenses included non-cash depreciation and amortization related to the value of the URL domain names and websites we purchased in October 2012 and general and administrative expenses. During the second quarter of 2012 and the six months ended June 30, 2012, we were still considered a “shell company” and our operating expenses were limited general and administrative expenses. Although we expect our operating expenses to significantly increase during the balance of 2013, we are unable at this time to quantify the amount of the expected increase.


Liquidity and Capital Resources


Working Capital


  

 

June 30,

 

December 31,

  

 

2013

 

2012

Current Assets

$

21,609

$

10,769

Current Liabilities

 

(889,657)

 

(313,530)

Working Capital (Deficit)

$

(868,048)

$

(302,761)


Cash Flows


  

 

Six months ended

 

Six months ended

  

 

June 30, 2013

 

June 30, 2012

Cash Flows Used in Operating Activities

$

(502,063)

$

(4,000)

Cash Flows Used in Investing Activities

 

(6,364)

 

-

Cash Flows Provided by Financing Activities

 

517,792

 

-

Net Increase (Decrease) in Cash During Period

$

9,365

$

(4,000)


Balance Sheet


As at June 30, 2013, the Company’s assets are mainly comprised of cash balances in the Company’s bank account and URL domain names and websites purchased during October 2012.


The Company’s total current liabilities increased approximately 184% at June 30, 2013 compared with December 31, 2012.  The increase in total liabilities is mainly attributed to the issuance of twenty eight convertible promissory notes totaling $688,000, partially offset by the repayment of $197,988 of related party debt and accrued interest during the Six months ended June 30, 2013.   


As at June 30, 2013, the Company had a cash balance of $20,038 and a working capital deficit of $868,048 compared with a cash balance of $10,673 and working capital deficit of $302,761 at December 31, 2012.  The increase in working capital deficit is mainly due to the proceeds of the convertible promissory notes, partially offset by the repayment of related party debt and accrued interest during the six months ended June 30, 2013.   


We do not have any external sources of working capital. Our working capital is not sufficient to fund our operations for the next 12 months and satisfy our obligations as they become due. In addition, we have $688,000 principal amount 10% convertible promissory notes, which mature between January 2014 and December 2014. While these notes are convertible at the option of the holders into shares of our common stock at a price of $1.00 per share, there is presently an extremely market for our common stock and there are no assurances these note holders will seek to convert these obligations. We do not have the funds necessary to



11





satisfy these notes. As described earlier in this report, we also need to raise significant capital to provide funds to implement our business model and pay our operating expenses. If we are not successful in raising the necessary capital, we may be required to curtail some or all of our operations.


Cash Flows from Operating Activities


During the six months ended June 30, 2013, the Company used $502,063 of cash flow from operating activities compared with use of $4,000 of cash flow during the six months ended June 30, 2012.  The increase in the use of cash flow for operating activities is mainly due an increase in net loss related to the commencement of initial operations.


Cash Flows from Investing Activity


During the six months ended June 30, 2013, the Company used $6,364 of cash flow from investing activities compared with the use of $0 of cash flow during the six months ended June 30, 2012.  The increase in the use of cash flow for investing activities is mainly due to the purchase of office and computer equipment related to the commencement of operating activities.  


Cash Flows from Financing Activities


During the six months ended June 30, 2013, the Company received $517,792 of cash flow from financing activities.  During the six months ended June 30, 2012, the Company did not receive any cash from financing activities.  The increase in cash provided by financing activities is mainly due to the issuance of twenty eight convertible promissory notes totaling $688,000, partially offset by the repayment of $197,988 of related party debt and accrued interest during the six months ended June 30, 2013.   


Off-Balance Sheet Arrangements


We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.


Future Financings


We will continue to rely on the issuance of debt and equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to existing stockholders. There is no assurance that we will achieve any additional sales of the equity securities or arrange for debt or other financing to fund planned acquisitions and exploration activities.


ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.


We are a smaller reporting company as defined by Rule 12b-2 of the Securities Exchange Act of 1934 (the “Exchange Act”) and are not required to provide the information under this item.


ITEM 4.

CONTROLS AND PROCEDURES.


Evaluation of disclosure controls and procedures


Our management, with the participation of our chief executive who also serves as our chief financial officer, evaluated the effectiveness of our disclosure controls and procedures as defined in Rule 13a-15(e) under the Exchange Act as of the end of the period covered by this Quarterly Report on Form 10-Q.  In designing and evaluating the disclosure controls and procedures, our management recognized that any controls and procedures,



12





no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.  In addition, the design of disclosure controls and procedures must reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.  The design of any disclosure controls and procedures also is based in part upon certain assumptions about the likelihood of future events and there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions.


Based on that evaluation, our chief executive officer who also serves as our chief financial officer concluded that, as of June 30, 2013, our disclosure controls and procedures were, subject to the limitations noted above, effective to provide reasonable assurance that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in Securities and Exchange Commission rules, regulations and forms, and that such information is accumulated and communicated to our management, including our chief executive officer who also serves as our chief financial officer, as appropriate, to allow timely decisions regarding required disclosure.


Changes in internal control over financial reporting


Our chief executive officer who also serves as our chief financial officer put measures into place during the period ended June 30, 2013 to significantly change our internal controls over financial reporting, including adding additional layers of review of financial information and disclosures and segregation of duties that he believes provides sufficient internal controls to prevent or detect a material misstatement in its financial statements.


PART II - OTHER INFORMATION


ITEM 1.

LEGAL PROCEEDINGS.


None.


ITEM 1A.

RISK FACTORS.


We are a smaller reporting company as defined by Rule 12b-2 of the Exchange Act and are not required to provide the information under this item.


ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.


None.


ITEM 3.

DEFAULTS UPON SENIOR SECURITIES.


None.


ITEM 4.

MINE SAFETY DISCLOSURES.


Not applicable to our company’s operations.


ITEM 5.

OTHER INFORMATION.


Between May 13, 2013 and June 30, 2013 , we issued and sold to seven accredited investors a total of an additional $110,000 principal amount of our one year 10% convertible promissory notes in a private offering exempt from registration under the Securities Act of 1933 in reliance on an exemption provided by Section 4(2)



13





and Regulation D of that act. We received gross proceeds of $110,000. We are using the net proceeds for working capital.


The notes bear interest at the rate of 10% per annum, accrued and paid on the six-month anniversary of the date of issuance, and at the maturity date. At the maturity date, the holder of a note has the right to convert the unpaid principal and accrued interest due under the note into shares of our common stock at a conversion price of $1.00 per share.


During May 2013 and June 2013, the Company borrowed $10,000 and $10,000, respectively, in short-term loans from Mr. Palladino, our Chief Executive Officer.  The loans were due on demand and did not accrue interest.  At June 30, 2013, $15,000 of the short-term loans were outstanding, which was subsequently repaid in July 2013.


ITEM 6.

EXHIBITS.


  

  

Incorporated by reference

  

Exhibit

Document Description

Form

Date

Number

Filed herewith

31.1

Rule 13a-14(a)/ 15d-14(a) Certification of Chief Executive Officer

 

 

 

ü

31.2

Rule 13a-14(a)/ 15d-14(a) Certification of Chief Financial Officer

 

 

 

ü

32.1

Section 1350 Certification of Chief Executive Officer and Chief Financial Officer

 

 

 

ü

101.INS

XBRL Instance Document**

 

 

 

ü

101.PRE

XBRL Taxonomy Extension Presentation Linkbase **

 

 

 

ü

101.LAE

XBRL Taxonomy Extension Label Linkbase **

 

 

 

ü

101.DEF

XBRL Taxonomy Extension Definition Linkbase **

 

 

 

ü

101.SCH

XBRL Taxonomy Extension Schema **

 

 

 

ü


**

Pursuant to Rule 406T of Regulation S-T, these interactive data files are deemed “furnished” and not “filed” or part of a report for purposes of Sections 11 or 12 of the Securities Act of 1933, or deemed “furnished” and not “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, and otherwise are not subject to liability under these sections.


SIGNATURES


Pursuant to the requirements of the Securities Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized on this 2nd day of August, 2013.


 

BullsnBears.com, Inc.

  

(the “Registrant”)

  

 

 

 

BY:

/s/ James M. Palladino

 

 

James M. Palladino, Chief Executive Officer, Chief Financial Officer

 

 

 





14






EXHIBIT INDEX


Exhibit

Document Description

31.1

Rule 13a-14(a)/ 15d-14(a) Certification of Chief Executive Officer

31.2

Rule 13a-14(a)/ 15d-14(a) Certification of Chief Financial Officer

32.1

Section 1350 Certification of Chief Executive Officer and Chief Financial Officer

101.INS

XBRL Instance Document**

101.PRE

XBRL Taxonomy Extension Presentation Linkbase **

101.LAE

XBRL Taxonomy Extension Label Linkbase **

101.DEF

XBRL Taxonomy Extension Definition Linkbase **

101.SCH

XBRL Taxonomy Extension Schema **





15



EX-31.1 2 exhibit311_ex31z1.htm EXHIBIT 31.1 Converted by EDGARwiz

EXHIBIT 31.1


Rule 13a-14(a)/15d-14(a) Certification


I, James M. Palladino certify that:


1.

I have reviewed this report on Form 10-Q for the period ended June 30, 2013 of BullsnBears.com, Inc.;


2.

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


3.

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


4.

The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:




(a)

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


(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


(d)

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


5.

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



(a)

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


(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.




Dated:  August 2, 2013


/s/James M. Palladino

James M. Palladino, Chief Executive Officer, principal executive officer






EX-31.2 3 exhibit312_ex31z2.htm EXHIBIT 31.2 Converted by EDGARwiz

EXHIBIT 31.2


Rule 13a-14(a)/15d-14(a) Certification


I, James M. Palladino, certify that:


1.

I have reviewed this report on Form 10-Q for the period ended June 30, 2013 of BullsnBears.com, Inc.;


2.

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


3.

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


4.

The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:




(a)

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


(b)

Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

(c)

Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


(d)

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


5.

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



(a)

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


(b)

Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.




Dated: August 2, 2013


/s/James M. Palladino

James M. Palladino, Chief Financial Officer, principal financial and accounting officer

 





0


EX-32.1 4 exhibit321_ex32z1.htm EXHIBIT 32.1 Converted by EDGARwiz

EXHIBIT 32.1


Section 1350 Certification


In connection with the Quarterly Report of BullsnBears.com, Inc. (the Company) on Form 10-Q for the period ended June 30, 2013 as filed with the Securities and Exchange Commission (the Report), I, James M. Palladino, Chief Executive Officer and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. SS. 1350, as adopted pursuant to SS. 906 of the Sarbanes-Oxley Act of 2002, that:

 

1.

The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and

 

2.

The information contained in the Report fairly presents, in all material respects, the financial conditions and results of operations of the Company.



Dated: August 2, 2013


/s/James M. Palladino

James M. Palladino, Chief Executive Officer, Chief Financial Officer, principal executive officer and principal financial and accounting officer


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





0


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(the &#147;Company&#148;) in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (the &#147;SEC&#148;). We suggest that these interim financial statements be read in conjunction with the audited financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2012, as amended, as filed with the SEC. We believe that all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein and that the disclosures made are adequate to make the information not misleading.&nbsp;&nbsp;The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.&nbsp;&nbsp;Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year as reported in Form 10-K have been omitted.</p> <!--egx--> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify;text-indent:-31.5pt;text-autospace:none'><b>Going Concern</b></p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify;text-autospace:none'>These financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. During the period from inception through June 30, 2013, the Company has generated no revenues and has an accumulated deficit of $936,099. The continuation of the Company as a going concern is dependent upon the continued financial support from its management, its ability to identify future investment opportunities and obtain the necessary debt or equity financing and generating profits from the Company&#146;s future operations. These factors raise substantial doubt regarding the Company&#146;s ability to continue as a going concern.&nbsp;&nbsp;These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.</p> <!--egx--> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify;text-indent:-31.5pt;text-autospace:none'><b>Related Party Transactions</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Notes and Convertible Notes Payable</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>On October 20, 2012, in accordance with an Asset Purchase Agreement, the Company and a current officer and director of the Company entered into a one year, 6% Promissory Note for $150,000, prior to him joining the Company. &#160;Accrued interest on the Promissory Note totaled $1,775 at December 31, 2012.<font style='letter-spacing:-.1pt'>&#160; During the six months ended June 30, 2013, the Company repaid the note and a total of $2,405 in accrued interest.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>On October 31, 2012, the Company and an officer and director of the Company entered into a one year, 10% Senior Convertible Note for office equipment totaling $20,955 and supplies totaling $761, or a total of $21,716. <font style='letter-spacing:-.1pt'>The principal amount of the Senior Convertible Note can be convertible, at the sole option of the holder and in whole or in part, into shares of common stock of the Company at a conversion price to be determined by the Board of Directors of the Company at or prior to the maturity date.</font>&#160; <font style='letter-spacing:-.1pt'>The Senior Convertible Note and the payment of the principal thereof and interest thereon shall at all times and in all respects constitute the Senior Indebtedness of the Company and shall not be junior or subordinate in right of payment to any other indebtedness of the Company.&#160; </font>Accrued interest on the <font style='letter-spacing:-.1pt'>Senior Convertible Note</font> totaled $1,440 and $363 at June 30, 2013 and December 31, 2012, respectively.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>On December 31, 2012, the Company and an officer and director of the Company entered into a one-year, 10% Senior Convertible Note for cash advances totaling $20,700 and expenses paid on behalf of the company totaling $9,508, or a total of $30,208.&#160; <font style='letter-spacing:-.1pt'>&#160;&#160;During the six months ended June 30, 2013, the Company repaid the note and a total of $375 in accrued interest.</font></p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'><font style='letter-spacing:-.1pt'>During May and June 2013, the Company borrowed $10,000 and $15,000, respectively, in short-term loans from an officer and director of the Company.&#160; At June 30, 2013, $10,000 of the short-term loans were outstanding, which was subsequently repaid in July 2013. </font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify;text-indent:-31.5pt;text-autospace:none'><b>3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Related Party Transactions (Continued)</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Office Space</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>The Company pays an officer $3,114 per month for rent of office space on a month-to-month basis.&#160; At June 30, 2013 and December 31, 2012, The Company owed the officer $0 and $9,432 in past due rent which is included in accounts payable, related party.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Consulting Expense</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>The Company owes an officer $117,789 for consulting expense which is included in accounts payable, related party.</p> <!--egx--> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'><b>Convertible Promissory Notes Payable </b></p> <p style='margin:0in;margin-bottom:.0001pt;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify;text-autospace:none'>During January through June 30, 2013, the Company issued twenty eight Convertible Promissory Notes (the &#147;Notes&#148;) for cash totaling $688,000.&#160; The Notes bear interest at 10% per annum, are unsecured and due in one from the date of issuance.&#160; At the maturity date, the holders of the Notes have the right to convert the unpaid principal and accrued interest into shares of common stock of the Company at a price of $1.00 per share.&#160; Accrued interest on the Notes was $29,749 at June 30, 2013.</p> <!--egx--> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'><b>Common Stock Warrants</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>On December 30, 2010, pursuant to the Chapter 11 Plan of Reorganization confirmed by the U.S. Bankruptcy Court (the Court) in the matter of Spicy Gourmet Organics, Inc. (&quot;SGO&quot;), the Court ordered the distribution of warrants to purchase common stock of the Company to all administrative creditors of SGO. &#160;&#160;The creditors received five warrants in the company for each $0.05 of SGO's administrative debt held, or an aggregate of 5,000,000 warrants consisting of 1,000,000 &quot;A Warrants&quot; each convertible into one share of common stock at an exercise price of $3.00; 1,000,000 &quot;B Warrants&quot; each convertible into one share of common stock at an exercise price of $4.00; 1,000,000 &quot;C Warrants&quot; each convertible into one share of common stock at an exercise price of $5.00; 1,000,000 &quot;D Warrants&quot; each convertible into one share of common stock at an exercise price of $6.00; and 1,000,000 &quot;E Warrants&quot; each convertible into one share of common stock at an exercise price of $7.00. All warrants are exercisable at any time prior to November 19, 2015. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>During October 2012, the Company agreed to reduce the exercise price of the outstanding warrants to $0.25 per share.&#160; As a result, the reduction of exercise price was considered a modification in accordance with ASC 718, whereby the difference in the fair value of the warrants measured immediate preceding and at the modification date of $164,508 was recognized as expense upon modification.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>The fair value of the warrants was computed using the Black-Scholes pricing model with the following assumptions:</p> <table border="0" cellspacing="0" cellpadding="0" width="50%" style='text-indent:-33.85pt;margin-left:.5in;border-collapse:collapse'> <tr align="left"> <td width="73%" valign="top" style='width:73.62%;background:#DAEEF3;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Expected Term</p> </td> <td width="26%" valign="top" style='width:26.38%;background:#DAEEF3;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>3 years</p> </td> </tr> <tr align="left"> <td width="73%" valign="top" style='width:73.62%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Expected volatility</p> </td> <td width="26%" valign="top" style='width:26.38%;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;255.30%</p> </td> </tr> <tr align="left"> <td width="73%" valign="top" style='width:73.62%;background:#DAEEF3;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Risk free interest rate</p> </td> <td width="26%" valign="top" style='width:26.38%;background:#DAEEF3;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;0.39%</p> </td> </tr> <tr align="left"> <td width="73%" valign="top" style='width:73.62%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Expected dividend yield</p> </td> <td width="26%" valign="top" style='width:26.38%;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.00%</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>The following table summarizes the outstanding warrants and associated activity for the six months ended June 30, 2012 and the year ended December 31, 2012:</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'><b>5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Common Stock Warrants (Continued)</b></p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>&nbsp;</p> <table border="1" cellspacing="0" cellpadding="0" width="565" style='text-indent:-33.85pt;margin-left:36.9pt;border-collapse:collapse;border:none'> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:-5.4pt;text-align:center'>Number of Warrants Outstanding </p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt;text-align:center'>&nbsp;</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Weighted Average Price</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Weighted Average Remaining Contractual Life</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>Balance, December 31, 2012</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,000,000</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>$</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.25</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2.89</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Granted</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>&nbsp;</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Exercised</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>&nbsp;</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Expired</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>&nbsp;</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>Balance, June 30, 2013</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,000,000</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>$</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.25</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2.39</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>The aggregate intrinsic value of the above warrants as of June 30, 2013 and December 31, 2012 was $9,350,000 and $13,750,000 based on a quoted market price of the Company&#146;s common stock of $1.87 and $3.00 per share, respectively.</p> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>The fair value of the warrants was computed using the Black-Scholes pricing model with the following assumptions:</p> <table border="0" cellspacing="0" cellpadding="0" width="50%" style='text-indent:-33.85pt;margin-left:.5in;border-collapse:collapse'> <tr align="left"> <td width="73%" valign="top" style='width:73.62%;background:#DAEEF3;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Expected Term</p> </td> <td width="26%" valign="top" style='width:26.38%;background:#DAEEF3;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>3 years</p> </td> </tr> <tr align="left"> <td width="73%" valign="top" style='width:73.62%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Expected volatility</p> </td> <td width="26%" valign="top" style='width:26.38%;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;255.30%</p> </td> </tr> <tr align="left"> <td width="73%" valign="top" style='width:73.62%;background:#DAEEF3;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Risk free interest rate</p> </td> <td width="26%" valign="top" style='width:26.38%;background:#DAEEF3;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;0.39%</p> </td> </tr> <tr align="left"> <td width="73%" valign="top" style='width:73.62%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Expected dividend yield</p> </td> <td width="26%" valign="top" style='width:26.38%;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.00%</p> </td> </tr> </table> <!--egx--><p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>&nbsp;</p> <table border="1" cellspacing="0" cellpadding="0" width="565" style='text-indent:-33.85pt;margin-left:36.9pt;border-collapse:collapse;border:none'> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:-5.4pt;text-align:center'>Number of Warrants Outstanding </p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt;text-align:center'>&nbsp;</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Weighted Average Price</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Weighted Average Remaining Contractual Life</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>Balance, December 31, 2012</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,000,000</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>$</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.25</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2.89</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Granted</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>&nbsp;</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Exercised</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>&nbsp;</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Expired</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>&nbsp;</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>Balance, June 30, 2013</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,000,000</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>$</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.25</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2.39</p> </td> </tr> </table> 10-Q 2013-06-30 false BullsNBears.com, Inc. 0001543272 --12-31 11680000 1680000 Smaller Reporting Company Yes No No 2013 Q2 3114 0 9432 117789 688000 0.1000 29749 5000000 0.25 2.39 0001543272 2013-01-01 2013-06-30 0001543272 2013-08-01 0001543272 2013-06-30 0001543272 2012-12-31 0001543272 2013-04-01 2013-06-30 0001543272 2012-04-01 2012-06-30 0001543272 2012-01-01 2012-06-30 0001543272 2010-12-30 2013-06-30 0001543272 2011-12-31 0001543272 2012-06-30 iso4217:USD shares iso4217:USD shares pure EX-101.CAL 6 bnbi-20130630_cal.xml XBRL 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Related Party Transactionstruefalsefalse1false falsefalseD130101_130630http://www.sec.gov/CIK0001543272duration2013-01-01T00:00:002013-06-30T00:00:001true 1us-gaap_DisclosureTextBlockAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2us-gaap_RelatedPartyTransactionsDisclosureTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify;text-indent:-31.5pt;text-autospace:none'><b>Related Party Transactions</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Notes and Convertible Notes Payable</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>On October 20, 2012, in accordance with an Asset Purchase Agreement, the Company and a current officer and director of the Company entered into a one year, 6% Promissory Note for $150,000, prior to him joining the Company. &#160;Accrued interest on the Promissory Note totaled $1,775 at December 31, 2012.<font style='letter-spacing:-.1pt'>&#160; During the six months ended June 30, 2013, the Company repaid the note and a total of $2,405 in accrued interest.</font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>On October 31, 2012, the Company and an officer and director of the Company entered into a one year, 10% Senior Convertible Note for office equipment totaling $20,955 and supplies totaling $761, or a total of $21,716. <font style='letter-spacing:-.1pt'>The principal amount of the Senior Convertible Note can be convertible, at the sole option of the holder and in whole or in part, into shares of common stock of the Company at a conversion price to be determined by the Board of Directors of the Company at or prior to the maturity date.</font>&#160; <font style='letter-spacing:-.1pt'>The Senior Convertible Note and the payment of the principal thereof and interest thereon shall at all times and in all respects constitute the Senior Indebtedness of the Company and shall not be junior or subordinate in right of payment to any other indebtedness of the Company.&#160; </font>Accrued interest on the <font style='letter-spacing:-.1pt'>Senior Convertible Note</font> totaled $1,440 and $363 at June 30, 2013 and December 31, 2012, respectively.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>On December 31, 2012, the Company and an officer and director of the Company entered into a one-year, 10% Senior Convertible Note for cash advances totaling $20,700 and expenses paid on behalf of the company totaling $9,508, or a total of $30,208.&#160; <font style='letter-spacing:-.1pt'>&#160;&#160;During the six months ended June 30, 2013, the Company repaid the note and a total of $375 in accrued interest.</font></p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'><font style='letter-spacing:-.1pt'>During May and June 2013, the Company borrowed $10,000 and $15,000, respectively, in short-term loans from an officer and director of the Company.&#160; At June 30, 2013, $10,000 of the short-term loans were outstanding, which was subsequently repaid in July 2013. </font></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; </p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify;text-indent:-31.5pt;text-autospace:none'><b>3.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Related Party Transactions (Continued)</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; <u>Office Space</u></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>The Company pays an officer $3,114 per month for rent of office space on a month-to-month basis.&#160; 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Statement of Income (USD $)
3 Months Ended 6 Months Ended 30 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Income Statement          
Revenues $ 0 $ 0 $ 0 $ 0 $ 0
Cost of Revenue 0 0 0 0 0
Gross Profit 0 0 0 0 0
DepreciationAndAmortization 9,343   18,562   25,744
General and Administrative Expense 220,041   527,092 4,000 711,878
Other General Expense         164,508
Operating Expenses 229,384 0 545,654 4,000 902,130
Operating Income (Loss) (229,384) 0 (545,654) (4,000) (902,130)
Nonoperating Income (Expense) 0 0 0 0 0
Interest Expense 15,096   31,831   33,969
Interest and Debt Expense 15,096 0 31,831 0 33,969
Income (Loss) from Continuing Operations before Income Taxes, Extraordinary Items, Noncontrolling Interest (244,480) 0 (577,485) (4,000) (936,099)
Income Tax Expense (Benefit) 0 0 0 0 0
Income (Loss) from Continuing Operations, Including Portion Attributable to Noncontrolling Interest (244,480) 0 (577,485) (4,000) (936,099)
Income (Loss) from Discontinued Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest 0 0 0 0 0
Net Income (Loss) Attributable to Parent $ (244,480) $ 0 $ (577,485) $ (4,000) $ (936,099)
Earnings Per Share, Basic $ (0.02)   $ (0.05) $ 0.00  
Weighted Average Number of Shares Outstanding, Basic 11,680,000 11,680,000 11,680,000 11,680,000  
Earnings Per Share, Diluted $ (0.02)   $ (0.05) $ 0.00  
Weighted Average Number of Shares Outstanding, Diluted 11,680,000 11,680,000 11,680,000 11,680,000  
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5. Common Stock Warrants
6 Months Ended
Jun. 30, 2013
Notes  
5. Common Stock Warrants

Common Stock Warrants

 

On December 30, 2010, pursuant to the Chapter 11 Plan of Reorganization confirmed by the U.S. Bankruptcy Court (the Court) in the matter of Spicy Gourmet Organics, Inc. ("SGO"), the Court ordered the distribution of warrants to purchase common stock of the Company to all administrative creditors of SGO.   The creditors received five warrants in the company for each $0.05 of SGO's administrative debt held, or an aggregate of 5,000,000 warrants consisting of 1,000,000 "A Warrants" each convertible into one share of common stock at an exercise price of $3.00; 1,000,000 "B Warrants" each convertible into one share of common stock at an exercise price of $4.00; 1,000,000 "C Warrants" each convertible into one share of common stock at an exercise price of $5.00; 1,000,000 "D Warrants" each convertible into one share of common stock at an exercise price of $6.00; and 1,000,000 "E Warrants" each convertible into one share of common stock at an exercise price of $7.00. All warrants are exercisable at any time prior to November 19, 2015.

 

During October 2012, the Company agreed to reduce the exercise price of the outstanding warrants to $0.25 per share.  As a result, the reduction of exercise price was considered a modification in accordance with ASC 718, whereby the difference in the fair value of the warrants measured immediate preceding and at the modification date of $164,508 was recognized as expense upon modification.

 

The fair value of the warrants was computed using the Black-Scholes pricing model with the following assumptions:

Expected Term

3 years

Expected volatility

 255.30%

Risk free interest rate

 0.39%

Expected dividend yield

0.00%

 

The following table summarizes the outstanding warrants and associated activity for the six months ended June 30, 2012 and the year ended December 31, 2012:

 

 

 

5.           Common Stock Warrants (Continued)

 

 

 

 

 

Number of Warrants Outstanding

 

 

 

 

Weighted Average Price

 

Weighted Average Remaining Contractual Life

Balance, December 31, 2012

 

5,000,000

 

$

0.25

 

2.89

Granted

 

-

 

 

-

 

-

Exercised

 

-

 

 

-

 

-

Expired

 

-

 

 

-

 

-

Balance, June 30, 2013

 

5,000,000

 

$

0.25

 

2.39

 

The aggregate intrinsic value of the above warrants as of June 30, 2013 and December 31, 2012 was $9,350,000 and $13,750,000 based on a quoted market price of the Company’s common stock of $1.87 and $3.00 per share, respectively.

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Common Stock Warrants: Schedule of Common Stock Outstanding Roll Forward (Tables)truefalsefalse1false falsefalseD130101_130630http://www.sec.gov/CIK0001543272duration2013-01-01T00:00:002013-06-30T00:00:001true 1us-gaap_TableTextBlockSupplementAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2us-gaap_ScheduleOfCommonStockOutstandingRollForwardTableTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--><p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>&nbsp;</p> <table border="1" cellspacing="0" cellpadding="0" width="565" style='text-indent:-33.85pt;margin-left:36.9pt;border-collapse:collapse;border:none'> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:-5.4pt;text-align:center'>Number of Warrants Outstanding </p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt;text-align:center'>&nbsp;</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Weighted Average Price</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Weighted Average Remaining Contractual Life</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>Balance, December 31, 2012</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,000,000</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>$</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.25</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2.89</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Granted</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>&nbsp;</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Exercised</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>&nbsp;</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Expired</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>&nbsp;</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>Balance, June 30, 2013</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,000,000</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>$</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.25</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2.39</p> </td> </tr> </table>falsefalsefalsenonnum:textBlockItemTypenaTabular disclosure of the change in common stock outstanding.No definition available.false0false5. 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Nature of Operations and Continuance of Business
6 Months Ended
Jun. 30, 2013
Notes  
Nature of Operations and Continuance of Business

1.                Nature of Operations and Continuance of Business

 

The unaudited interim financial statements included herein have been prepared by BullsnBears.com, Inc. (the “Company”) in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission (the “SEC”). We suggest that these interim financial statements be read in conjunction with the audited financial statements and notes thereto included in our Form 10-K for the year ended December 31, 2012, as amended, as filed with the SEC. We believe that all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein and that the disclosures made are adequate to make the information not misleading.  The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year.  Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for the most recent fiscal year as reported in Form 10-K have been omitted.

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3. Related Party Transactions
6 Months Ended
Jun. 30, 2013
Notes  
3. Related Party Transactions

Related Party Transactions

 

              Notes and Convertible Notes Payable

 

On October 20, 2012, in accordance with an Asset Purchase Agreement, the Company and a current officer and director of the Company entered into a one year, 6% Promissory Note for $150,000, prior to him joining the Company.  Accrued interest on the Promissory Note totaled $1,775 at December 31, 2012.  During the six months ended June 30, 2013, the Company repaid the note and a total of $2,405 in accrued interest.

             

On October 31, 2012, the Company and an officer and director of the Company entered into a one year, 10% Senior Convertible Note for office equipment totaling $20,955 and supplies totaling $761, or a total of $21,716. The principal amount of the Senior Convertible Note can be convertible, at the sole option of the holder and in whole or in part, into shares of common stock of the Company at a conversion price to be determined by the Board of Directors of the Company at or prior to the maturity date.  The Senior Convertible Note and the payment of the principal thereof and interest thereon shall at all times and in all respects constitute the Senior Indebtedness of the Company and shall not be junior or subordinate in right of payment to any other indebtedness of the Company.  Accrued interest on the Senior Convertible Note totaled $1,440 and $363 at June 30, 2013 and December 31, 2012, respectively.

 

On December 31, 2012, the Company and an officer and director of the Company entered into a one-year, 10% Senior Convertible Note for cash advances totaling $20,700 and expenses paid on behalf of the company totaling $9,508, or a total of $30,208.    During the six months ended June 30, 2013, the Company repaid the note and a total of $375 in accrued interest.

 

During May and June 2013, the Company borrowed $10,000 and $15,000, respectively, in short-term loans from an officer and director of the Company.  At June 30, 2013, $10,000 of the short-term loans were outstanding, which was subsequently repaid in July 2013.

 

             

3.           Related Party Transactions (Continued)

 

              Office Space

 

The Company pays an officer $3,114 per month for rent of office space on a month-to-month basis.  At June 30, 2013 and December 31, 2012, The Company owed the officer $0 and $9,432 in past due rent which is included in accounts payable, related party.

 

              Consulting Expense

 

The Company owes an officer $117,789 for consulting expense which is included in accounts payable, related party.

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5. Common Stock Warrants: Fair Value of Warrants (Tables)
6 Months Ended
Jun. 30, 2013
Tables/Schedules  
Fair Value of Warrants

The fair value of the warrants was computed using the Black-Scholes pricing model with the following assumptions:

Expected Term

3 years

Expected volatility

 255.30%

Risk free interest rate

 0.39%

Expected dividend yield

0.00%

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4. Convertible Promissory Notes Payable
6 Months Ended
Jun. 30, 2013
Notes  
4. Convertible Promissory Notes Payable

Convertible Promissory Notes Payable

 

During January through June 30, 2013, the Company issued twenty eight Convertible Promissory Notes (the “Notes”) for cash totaling $688,000.  The Notes bear interest at 10% per annum, are unsecured and due in one from the date of issuance.  At the maturity date, the holders of the Notes have the right to convert the unpaid principal and accrued interest into shares of common stock of the Company at a price of $1.00 per share.  Accrued interest on the Notes was $29,749 at June 30, 2013.

XML 26 R10.xml IDEA: 5. Common Stock Warrants 2.4.0.8000100 - Disclosure - 5. Common Stock Warrantstruefalsefalse1false falsefalseD130101_130630http://www.sec.gov/CIK0001543272duration2013-01-01T00:00:002013-06-30T00:00:001true 1us-gaap_DisclosureTextBlockAbstractus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00falsefalsefalsexbrli:stringItemTypestringfalse02false 2us-gaap_ScheduleOfStockholdersEquityNoteWarrantsOrRightsTextBlockus-gaap_truenadurationfalsefalsefalsefalsefalsefalsefalsefalse1falsefalsefalse00<!--egx--> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'><b>Common Stock Warrants</b></p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>On December 30, 2010, pursuant to the Chapter 11 Plan of Reorganization confirmed by the U.S. Bankruptcy Court (the Court) in the matter of Spicy Gourmet Organics, Inc. (&quot;SGO&quot;), the Court ordered the distribution of warrants to purchase common stock of the Company to all administrative creditors of SGO. &#160;&#160;The creditors received five warrants in the company for each $0.05 of SGO's administrative debt held, or an aggregate of 5,000,000 warrants consisting of 1,000,000 &quot;A Warrants&quot; each convertible into one share of common stock at an exercise price of $3.00; 1,000,000 &quot;B Warrants&quot; each convertible into one share of common stock at an exercise price of $4.00; 1,000,000 &quot;C Warrants&quot; each convertible into one share of common stock at an exercise price of $5.00; 1,000,000 &quot;D Warrants&quot; each convertible into one share of common stock at an exercise price of $6.00; and 1,000,000 &quot;E Warrants&quot; each convertible into one share of common stock at an exercise price of $7.00. All warrants are exercisable at any time prior to November 19, 2015. </p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>During October 2012, the Company agreed to reduce the exercise price of the outstanding warrants to $0.25 per share.&#160; As a result, the reduction of exercise price was considered a modification in accordance with ASC 718, whereby the difference in the fair value of the warrants measured immediate preceding and at the modification date of $164,508 was recognized as expense upon modification.</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>The fair value of the warrants was computed using the Black-Scholes pricing model with the following assumptions:</p> <table border="0" cellspacing="0" cellpadding="0" width="50%" style='text-indent:-33.85pt;margin-left:.5in;border-collapse:collapse'> <tr align="left"> <td width="73%" valign="top" style='width:73.62%;background:#DAEEF3;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Expected Term</p> </td> <td width="26%" valign="top" style='width:26.38%;background:#DAEEF3;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>3 years</p> </td> </tr> <tr align="left"> <td width="73%" valign="top" style='width:73.62%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Expected volatility</p> </td> <td width="26%" valign="top" style='width:26.38%;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;255.30%</p> </td> </tr> <tr align="left"> <td width="73%" valign="top" style='width:73.62%;background:#DAEEF3;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Risk free interest rate</p> </td> <td width="26%" valign="top" style='width:26.38%;background:#DAEEF3;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>&nbsp;0.39%</p> </td> </tr> <tr align="left"> <td width="73%" valign="top" style='width:73.62%;padding:0'> <p style='margin:0in;margin-bottom:.0001pt'>Expected dividend yield</p> </td> <td width="26%" valign="top" style='width:26.38%;padding:0'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.00%</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>The following table summarizes the outstanding warrants and associated activity for the six months ended June 30, 2012 and the year ended December 31, 2012:</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;text-align:justify;text-autospace:none'><b>5.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160; Common Stock Warrants (Continued)</b></p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>&nbsp;</p> <table border="1" cellspacing="0" cellpadding="0" width="565" style='text-indent:-33.85pt;margin-left:36.9pt;border-collapse:collapse;border:none'> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-right:-5.4pt;text-align:center'>Number of Warrants Outstanding </p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt;text-align:center'>&nbsp;</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Weighted Average Price</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="center" style='margin:0in;margin-bottom:.0001pt;text-align:center'>Weighted Average Remaining Contractual Life</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>Balance, December 31, 2012</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,000,000</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>$</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.25</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2.89</p> </td> </tr> <tr align="left"> <td width="217" valign="top" 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valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>&nbsp;</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:9.0pt'>Expired</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>&nbsp;</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-bottom:solid windowtext 1.0pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>-</p> </td> </tr> <tr align="left"> <td width="217" valign="top" style='width:162.9pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>Balance, June 30, 2013</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="114" valign="top" style='width:85.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>5,000,000</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt;margin-left:-5.25pt'>$</p> </td> <td width="78" valign="top" style='width:58.5pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>0.25</p> </td> <td width="18" valign="top" style='width:13.5pt;border:none;padding:0in 5.4pt 0in 5.4pt'> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> </td> <td width="84" valign="top" style='width:63.0pt;border:none;border-bottom:double windowtext 1.5pt;padding:0in 5.4pt 0in 5.4pt'> <p align="right" style='margin:0in;margin-bottom:.0001pt;text-align:right'>2.39</p> </td> </tr> </table> <p style='margin:0in;margin-bottom:.0001pt'>&nbsp;</p> <p style='margin:0in;margin-bottom:.0001pt;margin-left:31.5pt;text-align:justify'>The aggregate intrinsic value of the above warrants as of June 30, 2013 and December 31, 2012 was $9,350,000 and $13,750,000 based on a quoted market price of the Company&#146;s common stock of $1.87 and $3.00 per share, respectively.</p>falsefalsefalsenonnum:textBlockItemTypenaTabular disclosure of warrants or rights issued. 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Statement of Financial Position - Parenthetical (USD $)
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Dec. 31, 2012
Balance Sheets    
Preferred Stock, Par Value $ 0.0001 $ 0.0001
Preferred Stock, Shares Authorized 20,000,000 20,000,000
Common Stock, Par Value $ 0.0001 $ 0.0001
Common Stock, Shares Authorized 100,000,000 100,000,000
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4. Convertible Promissory Notes Payable (Details) (USD $)
Jun. 30, 2013
Details  
Convertible Promisory Notes $ 688,000
Convertible Promisory Notes Interest Rate 10.00%
Convertible Promisory Notes Accrued Interest $ 29,749
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Statement of Cash Flows (USD $)
6 Months Ended 30 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Jun. 30, 2013
Statement of Cash Flows      
Net Income (Loss) Attributable to Parent $ (577,485) $ (4,000) $ (936,099)
Depreciation 18,562   25,744
Issuance of Stock and Warrants for Services or Claims     118
Adjustment of Warrants Granted for Services     164,508
Increase (Decrease) in Accounts Payable and Accrued Liabilities 29,176   50,712
Increase (Decrease) in Other Operating Assets and Liabilities, Net (1,475)   (1,571)
IncreaseDecreaseInAccountsPayableRelatedParties 29,159   119,229
Adjustments to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities 75,422   358,740
Net Cash Provided by (Used in) Operating Activities (502,063) (4,000) (577,359)
Proceeds from Sale of Property, Plant, and Equipment (6,364)   (6,364)
Net Cash Provided by (Used in) Investing Activities (6,364)   (6,364)
Proceeds from (Repayments of) Notes Payable 517,792   517,792
Proceeds from (Repayments of) Related Party Debt     30,969
Proceeds from Issuance of Common Stock     55,000
Net Cash Provided by (Used in) Financing Activities 517,792   603,761
Cash and Cash Equivalents, Period Increase (Decrease) 9,365 (4,000) 20,038
Cash and Cash Equivalents, at Carrying Value 10,673 5,000  
Cash and Cash Equivalents, at Carrying Value $ 20,038 $ 1,000 $ 20,038
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Statement of Financial Position (USD $)
Jun. 30, 2013
Dec. 31, 2012
Balance Sheets    
Cash and Cash Equivalents, at Carrying Value $ 20,038 $ 10,673
Other Assets, Current 1,571 96
Assets, Current 21,609 10,769
PropertyPlantAndEquipmentNet 22,825 20,023
Finite-Lived Intangible Assets, Net 128,750 143,750
Assets, Noncurrent 151,575 163,773
Assets 173,184 174,542
Accrued Liabilities, Current 1,440 2,138
AccountsPayableAndAccruedLiabilities 20,963 21,536
AccountsPayableRelatedPartiesCurrent 117,789 87,932
NotesPayableRelatedPartiesCurrent 10,000 150,000
Convertible Notes payable related party 21,716 51,924
ConvertibleNotesPayable 688,000  
DepositLiabilitiesAccruedInterest 29,749  
Liabilities, Current 889,657 313,530
Liabilities 889,657 313,530
Common Stock, Value, Issued 1,168 1,168
AdditionalPaidInCapital 218,458 218,458
Accumulated Other Comprehensive Income (Loss), Net of Tax (936,099) (358,614)
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest (716,473) (138,988)
Liabilities and Equity $ 173,184 $ 174,542
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3. Related Party Transactions (Details) (USD $)
Jun. 30, 2013
Dec. 31, 2012
Details    
Monthly rent paid to officer $ 3,114  
Due to Officer for Rent 0 9,432
Due to Offficer for Consulting Expens $ 117,789  
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5. Common Stock Warrants: Schedule of Common Stock Outstanding Roll Forward (Tables)
6 Months Ended
Jun. 30, 2013
Tables/Schedules  
Schedule of Common Stock Outstanding Roll Forward

 

 

 

 

 

Number of Warrants Outstanding

 

 

 

 

Weighted Average Price

 

Weighted Average Remaining Contractual Life

Balance, December 31, 2012

 

5,000,000

 

$

0.25

 

2.89

Granted

 

-

 

 

-

 

-

Exercised

 

-

 

 

-

 

-

Expired

 

-

 

 

-

 

-

Balance, June 30, 2013

 

5,000,000

 

$

0.25

 

2.39

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2. Going Concern
6 Months Ended
Jun. 30, 2013
Notes  
2. Going Concern

Going Concern

 

These financial statements have been prepared on a going concern basis, which implies that the Company will continue to realize its assets and discharge its liabilities in the normal course of business. During the period from inception through June 30, 2013, the Company has generated no revenues and has an accumulated deficit of $936,099. The continuation of the Company as a going concern is dependent upon the continued financial support from its management, its ability to identify future investment opportunities and obtain the necessary debt or equity financing and generating profits from the Company’s future operations. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern.  These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

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5. Common Stock Warrants: Schedule of Common Stock Outstanding Roll Forward (Details) (USD $)
Jun. 30, 2013
Details  
Number of Warrents Outstanding 5,000,000
Weighted Average Price $ 0.25
Weighted Average Remaining Contractual Life 2.39
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Document and Entity Information (USD $)
6 Months Ended
Jun. 30, 2013
Aug. 01, 2013
Document and Entity Information:    
Entity Registrant Name BullsNBears.com, Inc.  
Document Type 10-Q  
Document Period End Date Jun. 30, 2013  
Amendment Flag false  
Entity Central Index Key 0001543272  
Current Fiscal Year End Date --12-31  
Entity Common Stock, Shares Outstanding   11,680,000
Entity Public Float   $ 1,680,000
Entity Filer Category Smaller Reporting Company  
Entity Current Reporting Status Yes  
Entity Voluntary Filers No  
Entity Well-known Seasoned Issuer No  
Document Fiscal Year Focus 2013  
Document Fiscal Period Focus Q2  
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