Nevada
|
000-19061
|
87-0403330
|
(State or Other Jurisdiction
|
(Commission
|
(I.R.S. Employer
|
of Incorporation)
|
File Number)
|
Identification No.)
|
Large accelerated filer
|
¨
|
Accelerated filer
|
¨
|
|||
Non-accelerated filer
|
¨
|
Smaller reporting company
|
x
|
PART I — FINANCIAL INFORMATION
|
3
|
|
Item 1. Financial Statements
|
3
|
|
Consolidated Balance Sheet as of December 31, 2010 and December 31, 2009 (unaudited)
|
3
|
|
Consolidated Statements of Operations for the Three Months and Quarter Ended December 31, 2010 and December 31, 2009 and from Inception, May 1989 through December 31, 2010 (unaudited)
|
4
|
|
Consolidated Statements of Cash Flows for the Three Months Ended December 31, 2010 and December 31, 2009 and from Inception, May 1989 through December 31, 2010 (unaudited)
|
5
|
|
Consolidated Statements of Changes in Shareholders’ Equity from Inception, May 1989 through December 31, 2010
|
6
|
|
Notes to Consolidated Financial Statements (unaudited)
|
11
|
|
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
17
|
|
Item 3. Quantitative and Qualitative Disclosures About Market Risk
|
19
|
|
Item 4T. Controls and Procedures
|
19
|
|
PART II — OTHER INFORMATION
|
20
|
|
Item 1. Legal Proceedings
|
20
|
|
Item 1A. Risk Factors
|
20
|
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
|
20
|
|
Item 3. Defaults Upon Senior Securities
|
20
|
|
Item 4. Submission of Matters to a Vote of Security Holders
|
20
|
|
Item 5. Other Information
|
20
|
Unaudited
|
||||||||
|
31-Dec-10
|
30-Sep-10
|
||||||
ASSETS | ||||||||
Current assets:
|
||||||||
Cash
|
$
|
390,460
|
$
|
354,019
|
||||
Total current assets
|
$
|
390,460
|
$
|
354,019
|
||||
Other assets:
|
||||||||
Equipment- net
|
100
|
376
|
||||||
Total assets
|
$
|
390,560
|
$
|
354,395
|
||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||
Current liabilities:
|
||||||||
Accounts payable & accrued expenses
|
$
|
14,707
|
$
|
25,298
|
||||
Gold bullion loan
|
3,245,135
|
3,016,841
|
||||||
Convertible debenture payable
|
700,000
|
700,000
|
||||||
Subscriptions payable
|
0
|
0
|
||||||
Total current liabilities
|
$
|
3,959,842
|
$
|
3,742,139
|
||||
Due to officer
|
27,114
|
40,170
|
||||||
Shareholders' equity:
|
||||||||
Series A preferred stock, one share convertible to eight shares of common; par value $0.001, 10,000,000 shares authorized, 5,056,250 shares issued and outstanding at September 30, 2010 and 4,056,250 at December 31, 2010
|
4,304
|
5,365
|
||||||
Series B preferred stock, one share convertible to two shares of common; 10% cumulative stated dividend, stated value $0.50, 50,000,000 shares authorized, 141,687 outstanding at September 30, 2010 and December 31, 2010, stated value; $0.50
|
63,498
|
63,498
|
||||||
Common stock B: $.001 par value, authorized 250,000,000 shares, issued and outstanding, 5,000,000 shares at September 30, 2010 and 5,060,500 at December 31, 2010
|
5,060
|
5,060
|
||||||
Common stock A: $.01 par value, authorized 550,000,000 shares authorized, issued and outstanding, 135,955,389 shares at September 30, 2010 and 153,819,222 at December 31, 2010
|
$
|
1,538,193
|
$
|
1,359,555
|
||||
Additional paid in capital
|
12,978,748
|
12,870,994
|
||||||
Accumulated deficit - exploration stage
|
(18,186,199
|
)
|
(17,732,386
|
)
|
||||
Total shareholders' deficit
|
(3,669,258
|
)
|
(3,501,837
|
)
|
||||
Total Liabilities & Shareholders' Deficit
|
$
|
390,560
|
$
|
354,395
|
Unaudited
|
Unaudited
|
Inception
|
||||||||||
31-Dec-10
|
31-Dec-09
|
to Date
|
||||||||||
General and administrative expenses:
|
||||||||||||
Consulting
|
$
|
158,722
|
$
|
64,109
|
$
|
7,556,625
|
||||||
Administration
|
58,763
|
49,941
|
6,296,397
|
|||||||||
License expense
|
0
|
0
|
247,559
|
|||||||||
Professional fees
|
8,034
|
6,883
|
722,167
|
|||||||||
Total general & administrative expenses
|
225,519
|
120,933
|
14,822,748
|
|||||||||
Net loss from operations
|
$
|
(225,519
|
)
|
$
|
(120,933
|
)
|
$
|
(14,822,748
|
)
|
|||
Other income (expenses):
|
||||||||||||
Interest income
|
0
|
0
|
7,908
|
|||||||||
Interest expense
|
0
|
(35,006
|
)
|
(1,048,562
|
)
|
|||||||
Gain (loss) on unhedged derivative
|
(228,294
|
)
|
(336,094
|
)
|
(2,322,797
|
)
|
||||||
Net loss before provision for income taxes
|
$
|
(453,813
|
)
|
$
|
(492,033
|
)
|
$
|
(18,186,199
|
)
|
|||
Provision for income taxes
|
0
|
0
|
0
|
|||||||||
Net loss
|
$
|
(453,813
|
)
|
$
|
(492,033
|
)
|
$
|
(18,186,199
|
)
|
|||
Basic & fully diluted net loss per common share
|
$
|
(0.00
|
)
|
$
|
(0.01
|
)
|
||||||
Weighted average of common shares outstanding:
|
||||||||||||
Basic & fully diluted
|
144,875,885
|
76,043,451
|
Unaudited
|
Unaudited
|
Inception
|
||||||||||
31-Dec-10
|
31-Dec-09
|
to Date
|
||||||||||
Operating Activities:
|
||||||||||||
Net loss
|
$
|
(453,813
|
)
|
$
|
(492,033
|
)
|
$
|
(18,186,199
|
)
|
|||
Adjustments to reconcile net income items not requiring the use of cash:
|
||||||||||||
Consulting fees
|
53,512
|
7,159
|
4,940,975
|
|||||||||
Depreciation expense
|
276
|
277
|
17,455
|
|||||||||
Interest expense
|
0
|
35,006
|
984,989
|
|||||||||
Impairment expense
|
0
|
0
|
3,049,465
|
|||||||||
Loss on unhedged underlying derivative
|
228,294
|
336,094
|
2,322,797
|
|||||||||
Changes in other operating assets and liabilities :
|
||||||||||||
Accounts payable and accrued expenses
|
(10,591
|
)
|
0
|
14,707
|
||||||||
Net cash used by operations
|
$
|
(182,322
|
)
|
$
|
(113,497
|
)
|
$
|
(6,855,811
|
)
|
|||
Investing activities:
|
||||||||||||
Purchase of office equipment
|
$
|
0
|
$
|
0
|
$
|
(17,555
|
)
|
|||||
Net cash used by investing activities
|
0
|
0
|
(17,555
|
)
|
||||||||
Financing activities:
|
||||||||||||
Issuance of common stock
|
$
|
232,880
|
$
|
105,780
|
$
|
5,458,825
|
||||||
Issuance of preferred stock
|
0
|
0
|
68,863
|
|||||||||
Issuance of common B stock
|
0
|
0
|
5,060
|
|||||||||
Issuance of gold bullion note
|
0
|
0
|
648,282
|
|||||||||
Capital contributed by shareholder
|
0
|
0
|
356,743
|
|||||||||
Subscriptions received (transferred to common stock)
|
(1,061
|
)
|
11,470
|
(1,061
|
)
|
|||||||
Issuance of convertible notes
|
0
|
0
|
700,000
|
|||||||||
Advances received (paid) shareholder
|
(13,056
|
)
|
8,656
|
27,114
|
||||||||
Net cash provided by financing activities
|
218,763
|
125,906
|
7,263,826
|
|||||||||
Net increase (decrease) in cash during the period
|
$
|
36,441
|
$
|
12,409
|
$
|
390,460
|
||||||
Cash balance at beginning of the fiscal year
|
354,019
|
18,527
|
0
|
|||||||||
Cash balance at December 31st
|
$
|
390,460
|
$
|
30,936
|
$
|
390,460
|
||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Interest paid during the year
|
$
|
0
|
$
|
0
|
$
|
0
|
||||||
Income taxes paid during the year
|
$
|
0
|
$
|
0
|
$
|
0
|
Common
|
Common
|
Paid in
|
Accumulated
|
Stock
|
||||||||||||||||||||
Shares
|
Par Value
|
Capital
|
Deficit
|
Total
|
Price *
|
|||||||||||||||||||
Inception
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
|||||||||||||||
Issuance of common stock
|
84,688
|
847
|
1,185,153
|
1,186,000
|
$
|
0.07
|
||||||||||||||||||
Net income fiscal 1990
|
520,000
|
520,000
|
||||||||||||||||||||||
Balance at September 30, 1990-unaudited
|
84,688
|
$
|
847
|
$
|
1,185,153
|
$
|
520,000
|
$
|
1,706,000
|
|||||||||||||||
Net income fiscal 1991
|
1,108,000
|
1,108,000
|
||||||||||||||||||||||
Balance at September 30, 1991-unaudited
|
84,688
|
$
|
847
|
$
|
1,185,153
|
$
|
1,628,000
|
$
|
2,814,000
|
|||||||||||||||
Issuance of common stock
|
472
|
5
|
32,411
|
32,416
|
$
|
0.22
|
||||||||||||||||||
Net income fiscal 1992
|
466,000
|
466,000
|
||||||||||||||||||||||
Balance at September 30, 1992-unaudited
|
85,160
|
$
|
852
|
$
|
1,217,564
|
$
|
2,094,000
|
$
|
3,312,416
|
|||||||||||||||
Net loss fiscal 1993
|
(3,116,767
|
)
|
(3,116,767
|
)
|
||||||||||||||||||||
Balance at September 30, 1993-unaudited
|
85,160
|
$
|
852
|
$
|
1,217,564
|
$
|
(1,022,767
|
)
|
$
|
195,649
|
||||||||||||||
Net loss fiscal 1994
|
(63,388
|
)
|
(63,388
|
)
|
||||||||||||||||||||
Balance at September 30, 1994-unaudited
|
85,160
|
$
|
852
|
$
|
1,217,564
|
$
|
(1,086,155
|
)
|
$
|
132,261
|
||||||||||||||
Net income fiscal 1995
|
(132,261
|
)
|
(132,261
|
)
|
||||||||||||||||||||
Balance at September 30, 1995-unaudited
|
85,160
|
$
|
852
|
$
|
1,217,564
|
$
|
(1,218,416
|
)
|
$
|
0
|
||||||||||||||
Net loss fiscal 1996
|
0
|
0
|
||||||||||||||||||||||
Balance at September 30, 1996-unaudited
|
85,160
|
$
|
852
|
$
|
1,217,564
|
$
|
(1,218,416
|
)
|
$
|
0
|
Common
|
Common
|
Paid in
|
Accumulated
|
Stock
|
||||||||||||||||||||
Shares
|
Par Value
|
Capital
|
Deficit
|
Total
|
Price *
|
|||||||||||||||||||
Stock issued for mining claim
|
150,000
|
1,500
|
598,500
|
600,000
|
$
|
0.20
|
||||||||||||||||||
Issuance of common stock
|
50,000
|
500
|
59,874
|
60,374
|
$
|
0.06
|
||||||||||||||||||
Stock issued for services
|
14,878
|
149
|
29,608
|
29,757
|
$
|
0.10
|
||||||||||||||||||
Net loss fiscal 1997
|
(90,131
|
)
|
(90,131
|
)
|
||||||||||||||||||||
Balance at September 30, 1997-unaudited
|
300,038
|
$
|
3,001
|
$
|
1,905,546
|
$
|
(1,308,547
|
)
|
$
|
600,000
|
||||||||||||||
Capital contributed by shareholder
|
58,668
|
58,668
|
||||||||||||||||||||||
Net loss fiscal 1998
|
(58,668
|
)
|
(58,668
|
)
|
||||||||||||||||||||
Balance at September 30, 1998-unaudited
|
300,038
|
$
|
3,001
|
$
|
1,964,214
|
$
|
(1,367,215
|
)
|
$
|
600,000
|
||||||||||||||
Capital contributed by shareholder
|
28,654
|
28,654
|
||||||||||||||||||||||
Net income fiscal 1999
|
(26,705
|
)
|
(26,705
|
)
|
||||||||||||||||||||
Balance at September 30, 1999-unaudited
|
300,038
|
$
|
3,001
|
$
|
1,992,868
|
$
|
(1,393,920
|
)
|
$
|
601,949
|
||||||||||||||
Capital contributed by shareholder
|
22,750
|
22,750
|
||||||||||||||||||||||
Net loss fiscal 2000
|
(624,699
|
)
|
(624,699
|
)
|
||||||||||||||||||||
Balance at September 30, 2000-unaudited
|
300,038
|
$
|
3,001
|
$
|
2,015,618
|
$
|
(2,018,619
|
)
|
$
|
0
|
Common
|
Common
|
Paid in
|
Accumulated
|
Stock
|
||||||||||||||||||||
Shares
|
Par Value
|
Capital
|
Deficit
|
Total
|
Price *
|
|||||||||||||||||||
Issuance of common stock
|
103,535
|
1,035
|
611,943
|
612,978
|
$
|
0.15
|
||||||||||||||||||
Issued stock for compensation
|
50,000
|
500
|
19,571
|
20,071
|
$
|
0.04
|
||||||||||||||||||
Capital contributed by shareholder
|
21,719
|
21,719
|
||||||||||||||||||||||
Net loss fiscal 2001
|
(654,768
|
)
|
(654,768
|
)
|
||||||||||||||||||||
Balance at September 30, 2001-unaudited
|
453,573
|
$
|
4,536
|
$
|
2,668,851
|
$
|
(2,673,387
|
)
|
$
|
0
|
||||||||||||||
Issued stock to purchase mining claim
|
24,200,000
|
242,000
|
2,207,466
|
2,449,466
|
$
|
0.10
|
||||||||||||||||||
Issued shares to employees
|
267,500
|
2,675
|
(2,675
|
)
|
0
|
|||||||||||||||||||
Capital contributed by shareholders
|
143,480
|
143,480
|
||||||||||||||||||||||
Net loss for the fiscal year
|
(2,591,671
|
)
|
(2,591,671
|
)
|
||||||||||||||||||||
Balance at September 30, 2002-unaudited
|
24,921,073
|
$
|
249,211
|
$
|
5,017,122
|
$
|
(5,265,058
|
)
|
$
|
1,275
|
||||||||||||||
Issued stock for services
|
872,000
|
8,720
|
264,064
|
272,784
|
$
|
0.31
|
||||||||||||||||||
Beneficial conversion feature
|
3,767
|
3,767
|
||||||||||||||||||||||
Capital contributed by shareholders
|
81,472
|
81,472
|
||||||||||||||||||||||
Net loss for the fiscal year
|
(865,287
|
)
|
(865,287
|
)
|
||||||||||||||||||||
Balance at September 30, 2003
|
25,793,073
|
$
|
257,931
|
$
|
5,366,425
|
$
|
(6,130,345
|
)
|
$
|
(505,989
|
)
|
Common
|
Common
|
Paid in
|
Accumulated
|
Stock
|
||||||||||||||||||||
Shares
|
Par Value
|
Capital
|
Deficit
|
Total
|
Price *
|
|||||||||||||||||||
Issuance of common stock
|
550,000
|
5,500
|
206,500
|
212,000
|
$
|
0.39
|
||||||||||||||||||
Issued stock to pay bills
|
1,069,945
|
10,699
|
460,077
|
470,776
|
$
|
0.44
|
||||||||||||||||||
Issued stock for services
|
2,118,444
|
21,184
|
652,714
|
673,898
|
$
|
0.32
|
||||||||||||||||||
Net loss for the fiscal year
|
(964,108
|
)
|
(964,108
|
)
|
||||||||||||||||||||
Balance at September 30, 2004
|
29,531,462
|
$
|
295,314
|
$
|
6,685,716
|
$
|
(7,094,453
|
)
|
$
|
(113,423
|
)
|
|||||||||||||
Issuance of common stock
|
150,000
|
1,500
|
46,500
|
48,000
|
$
|
0.32
|
||||||||||||||||||
Issued stock for services
|
2,840,000
|
28,400
|
331,600
|
360,000
|
$
|
0.13
|
||||||||||||||||||
Issued stock to pay debt
|
400,000
|
4,000
|
50,000
|
54,000
|
$
|
0.14
|
||||||||||||||||||
Issuance of warrants
|
1,817
|
1,817
|
||||||||||||||||||||||
Net loss for the fiscal year
|
(628,337
|
)
|
(628,337
|
)
|
||||||||||||||||||||
Balance at September 30, 2005
|
32,921,462
|
$
|
329,214
|
$
|
7,115,633
|
$
|
(7,722,790
|
)
|
$
|
(277,943
|
)
|
|||||||||||||
Issued stock for services
|
885,000
|
8,850
|
70,800
|
79,650
|
$
|
0.09
|
||||||||||||||||||
Net loss for the period
|
(837,551
|
)
|
(837,551
|
)
|
||||||||||||||||||||
Balance at September 30, 2006
|
33,806,462
|
$
|
338,064
|
$
|
7,186,433
|
$
|
(8,560,341
|
)
|
$
|
(1,035,844
|
)
|
|||||||||||||
Issued stock for services
|
50,000
|
500
|
4,500
|
5,000
|
$
|
0.10
|
||||||||||||||||||
Issuance of convertible debt
|
648,098
|
648,098
|
||||||||||||||||||||||
Net loss for the fiscal year
|
(3,176,745
|
)
|
(3,176,745
|
)
|
||||||||||||||||||||
Balance at September 30, 2007
|
33,856,462
|
338,564
|
7,839,031
|
(11,737,086
|
)
|
(3,559,491
|
)
|
Common
|
Common
|
Paid in
|
Accumulated
|
Stock
|
||||||||||||||||||||
Shares
|
Par Value
|
Capital
|
Deficit
|
Total
|
Price *
|
|||||||||||||||||||
Issuance of common stock
|
10,011,879
|
100,119
|
638,559
|
738,678
|
$
|
0.07
|
||||||||||||||||||
Issued stock for services
|
9,517,664
|
95,177
|
2,447,473
|
2,542,650
|
$
|
0.27
|
||||||||||||||||||
Conversion of debentures
|
7,200,000
|
72,000
|
828,000
|
900,000
|
$
|
0.13
|
||||||||||||||||||
Conversion of preferred stock
|
26,626
|
266
|
6,401
|
6,667
|
$
|
0.25
|
||||||||||||||||||
Issuance of convertible debt
|
56,000
|
56,000
|
||||||||||||||||||||||
Net loss for the fiscal period- as restated
|
(2,498,879
|
)
|
(2,498,879
|
)
|
||||||||||||||||||||
Balance at September 30, 2008
|
60,612,631
|
606,126
|
11,815,464
|
(14,235,965
|
)
|
(1,814,375
|
)
|
|||||||||||||||||
Issuance of common stock
|
12,261,765
|
122,618
|
304,845
|
427,463
|
$
|
0.03
|
||||||||||||||||||
Issued stock for services
|
845,064
|
8,451
|
53,939
|
62,390
|
$
|
0.07
|
||||||||||||||||||
Issued stock to settle lawsuit
|
200,000
|
2,000
|
10,000
|
12,000
|
$
|
0.06
|
||||||||||||||||||
Conversion of Preferred A
|
400,000
|
4,000
|
(3,933
|
)
|
67
|
|||||||||||||||||||
Issuance of convertible debt
|
3,000
|
3,000
|
||||||||||||||||||||||
Net loss for the year
|
(1,293,237
|
)
|
(1,293,237
|
)
|
||||||||||||||||||||
Balance at September 30, 2009
|
74,319,460
|
743,195
|
12,183,315
|
(15,529,202
|
)
|
(2,602,692
|
)
|
|||||||||||||||||
Issuance of common stock
|
31,680,388
|
316,804
|
426,690
|
743,494
|
$
|
0.02
|
||||||||||||||||||
Issued stock & warrants for services
|
8,778,566
|
87,786
|
214,884
|
302,670
|
$
|
0.03
|
||||||||||||||||||
Exercise of warrants
|
11,776,975
|
117,770
|
140,105
|
257,875
|
$
|
0.02
|
||||||||||||||||||
Converted preferred A
|
9,400,000
|
94,000
|
(94,000
|
)
|
0
|
|||||||||||||||||||
Net loss for the year
|
(2,203,184
|
)
|
(2,203,184
|
)
|
||||||||||||||||||||
Balance at September 30, 2010
|
135,955,389
|
1,359,555
|
12,870,994
|
(17,732,386
|
)
|
(3,501,837
|
)
|
|||||||||||||||||
Issuance of common stock
|
9,101,333
|
91,013
|
141,867
|
232,880
|
$
|
0.03
|
||||||||||||||||||
Issued shares & warrants for services
|
762,500
|
7,625
|
45,887
|
53,512
|
$
|
0.07
|
||||||||||||||||||
Converted preferred A
|
8,000,000
|
80,000
|
(80,000
|
)
|
0
|
|||||||||||||||||||
Net loss for the period
|
(453,813
|
)
|
(453,813
|
)
|
||||||||||||||||||||
Balance at December 31, 2010
|
153,819,222
|
$
|
1,538,193
|
$
|
12,978,748
|
$
|
(18,186,199
|
)
|
$
|
(3,669,258
|
)
|
1.
|
Organization of the Company and Significant Accounting Principles
|
2.
|
Going Concern
|
Carrying value of loan
|
$
|
936,758
|
||
Fair value of loan
|
3,245,135
|
|||
Life to date loss on unhedged underlying derivative
|
$
|
(2,308,377
|
)
|
31-Dec-10
|
30-Sep-10
|
|||||||
Net convertible debt payable
|
$
|
700,000
|
$
|
700,000
|
2010
|
2009
|
|||||||
Dividend yield
|
0.00
|
%
|
0.00
|
%
|
||||
Risk free interest rate
|
1.00
|
%
|
0.50
|
%
|
||||
Volatility
|
25.00
|
%
|
39.00
|
%
|
Wgtd Avg
|
Wgtd Years
|
|||||||||||
Amount
|
Exercise Price
|
to Maturity
|
||||||||||
Outstanding at September 30, 2009
|
9,491,303
|
$
|
0.33
|
0.54
|
||||||||
Issues
|
104,684,063
|
|||||||||||
Exercises
|
(11,776,975
|
)
|
||||||||||
Expired
|
(1,818,907
|
)
|
||||||||||
Outstanding at September 30, 2010
|
100,579,484
|
$
|
0.06
|
1.42
|
||||||||
Issues
|
29,264,999
|
|||||||||||
Exercises
|
(650,000
|
)
|
||||||||||
Expired
|
(1,850,000
|
)
|
||||||||||
Outstanding at December 31, 2010
|
127,344,483
|
$
|
0.08
|
1.22
|
Provision for income taxes is comprised of the following:
|
||||||||
31-Dec-10
|
31-Dec-09
|
|||||||
Net loss before provision for income taxes
|
$
|
(453,813
|
)
|
$
|
(492,033
|
)
|
||
Current tax expense:
|
||||||||
Federal
|
$
|
0
|
$
|
0
|
||||
State
|
0
|
0
|
||||||
Total
|
$
|
0
|
$
|
0
|
||||
Less deferred tax benefit:
|
||||||||
Tax loss carryforwards
|
2,456,010
|
(2,421,827
|
)
|
|||||
Allowance for recoverability
|
(2,456,010
|
)
|
2,421,827
|
|||||
Provision for income taxes
|
$
|
0
|
$
|
0
|
||||
A reconciliation of provision for income taxes at the statutory rate to provision for income taxes at the Company's effective tax rate is as follows:
|
||||||||
Statutory U.S. federal rate
|
34
|
%
|
34
|
%
|
||||
Statutory state and local income tax
|
10
|
%
|
10
|
%
|
||||
Less allowance for tax recoverability
|
-44
|
%
|
-44
|
%
|
||||
Effective rate
|
0
|
%
|
0
|
%
|
||||
Deferred income taxes are comprised of the following:
|
||||||||
Tax loss carryforwards
|
$
|
2,456,010
|
$
|
2,421,827
|
||||
Allowance for recoverability
|
(2,456,010
|
)
|
(2,421,827
|
)
|
||||
Deferred tax benefit
|
$
|
0
|
$
|
0
|
31-Dec-10
|
31-Dec-09
|
|||||||
Net loss before cumulative preferred dividend
|
$
|
(453,813
|
)
|
$
|
(492,033
|
)
|
||
Cumulative dividend preferred payable
|
(42,380
|
)
|
(37,081
|
)
|
||||
Net loss to common shareholders
|
$
|
(496,193
|
)
|
$
|
(529,114
|
)
|
||
Weighted average
|
144,875,885
|
76,043,451
|
||||||
Basic & fully diluted net loss per common share
|
$
|
(0.00
|
)
|
$
|
(0.01
|
)
|
31.1
|
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32.1
|
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
USCORP
|
|
By: /s/ ROBERT DULTZ
|
|
Robert Dultz
|
|
Chairman, Chief Executive Officer and Acting Chief Financial
Officer
Dated: April 22, 2011
|
31.1
|
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
32.1
|
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
USCORP
|
|
By: /s/ ROBERT DULTZ
|
|
Robert Dultz
|
|
Chairman, Chief Executive Officer and Acting Chief Financial Officer
Dated: April 22, 2011
|
1.
|
I have reviewed this Quarterly Report on Form 10-Q (the "Report") of USCORP (the "Registrant");
|
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, any 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.
|
I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and I 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 provided;
|
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;
|
d)
|
disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter (the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
5.
|
I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s auditors and the audit committee of Registrant’s board of directors (or persons performing the equivalent function);
|
a)
|
all significant deficiencies in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial reporting.
|
Date: April 22, 2011
|
By:
|
/s/ Robert Dultz
|
Robert Dultz,
Chief Executive Officer and Acting Chief Financial Officer
|
(1)
|
The Quarterly Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and result of operations of the Registrant.
|
||
Date: April 22, 2011
|
By:
|
/s/ Robert Dultz
|
|
Robert Dultz
Chief Executive Officer and Acting Chief Financial Officer
|