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IN THE MOOD BLUES

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Last Post: 5/10/2012 6:51:31 PM - Followers: 2 - Board type: Free - Posts Today: 0

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A safe Haven and discussion thread for investors who want to gripe and openly discuss or question
about what is affecting their stock by either internal or external forces.

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http://www.otcmarkets.com/financialReportViewer?symbol=CAVR&id=78571


...have the rights associated with them defined. One million shares of the 11,000,000 shares of preferred stock have been designated as Series A Preferred Stock. One million shares of the Series A Preferred have been issued. The rights for the Series A Preferred Stock are defined in a Certificate of Designation the Company filed with the Nevada Secretary of State on April 24, 2009. A summary of those rights is as follows:

(i) Dividend Rights. The Series A Preferred Stock is not entitled to receive dividends.

(ii) Voting Rights. The Holders of Series A Preferred Stock shall be entitled to vote with the Common Stock as if their shares were converted into shares of Common Stock at a ratio of 1000 shares of Common Stock for each one full share of Series A Preferred Stock (the "Voting Rate"). The Holders of shares of the Series A Preferred shall be entitled to vote on all matters on which the Common Stock shall be entitled to vote.

(iii) Conversion Rights. The Series A Preferred Stock can be converted by a resolution of the Board of Directors of the Corporation. Upon conversion, each share of Series A Preferred Stock will automatically be converted into one hundred (100) shares of Common Stock of the Corporation on the date of such occurrence. In addition to the shares of Common Stock a Holder will receive in the event of a conversion of the Series A Preferred Stock, the Holders of Series A Preferred Stock shall be entitled to receive, out of the assets of the Corporation, cash in an amount equal to $10.00 for each one (1) share of Series A Preferred Stock (as adjusted for stock splits, combinations, reorganizations and the like) held by such Holder.

(iv) Liquidation Preference. In the event of any liquidation, dissolution or winding up of the affairs of the Corporation, either voluntarily or involuntarily, the entire remaining assets, if any, of the Corporation available for distribution to stockholders shall be distributed to the holders of Common Stock pro rata, treating each share of Series A Preferred Stock as if it were a single share of Common Stock.

Number of shares or total amount of the securities outstanding for each class of securities authorized

The Company is authorized to issue common shares.
 
Period Ended       Authorized         Outstanding        Tradeable          Beneficial         Shareholders
                                                                                                          Shareholders            of Record
 
06/30/2010           200,000,000         91,436,398        31,318,447                *                     191
12/31/2010           200,000,000       140,436,398        32,468,447                                       198
06/30/2011           200,000,000       177,975,851        63,307,878                *                     198
12/31/2011           300,000,000       249,367,273      128,059,700                *                     194


*The company has ordered the NOBO list for disclosure

The Company is authorized to issue preferred shares.

Period                  Authorized         Outstanding        Tradeable             Beneficial      Shareholders
Ended                                                                                                    Shareholders       of Record
06/30/10              10,000,000                           0               0                                                   0
06/30/10                1,000,000             1,000,000               0                                                   2
12/31/10              10,000,000                           0               0                                                   0
12/31/12                1,000,000             1,000,000               0                                                   2      should read 12/31/11

3
 

                                      Item III. FINANCIAL STATEMENTS.

                                                                                  CAVU RESOURCES, INC.

                                                          CONDENSED CONSOLIDATED BALANCE SHEETS
                                                        AS OF DECEMBER 31, 2011 AND DECEMBER 31, 2010
 

                                                                                                                                                                      2011                                     2010           

ASSETS                                                                                                                                                  (Unaudited)                         (Unaudited)      

Current Assets
Cash                                                                                                                                                           $ 260,518                                 60,857      
Accounts Receivable                                                                                                                                    134,731                            1,118,282      
Deposits                                                                                                                                                            1,000                                          0      
Notes Receivable (Note 4)                                                                                                                         3,551,450                               388,874      
Total Current Assets                                                                                                                                  3,947,699                            1,568,013      
Oil and Gas Leases,                                                                                                                                   1,180,417                            1,222,000      
Equipment & Vehicles, Net of Accumulated Depreciation of $166,415                                                                                      
(Note 5)                                                                                                                                                         978,765                             2,363,550     
Other Assets (Note 5)                                                                                                                                   812,469                                722,452      

TOTAL ASSETS                                                                                                                                   $ 6,919,350                              5,876,015     


                                                     LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT)

Current Liabilities
Accounts Payable                                                                                                                                     $ 851,898                              1,467,159
Related Party Payable (Note 6)                                                                                                                     83,722                                 250,000
Promissory Notes (Note 6)                                                                                                                       2,197,984                              2,588,000
                                                                                                                                                                   3,133,604                              4,305,159

TOTAL LIABILITIES                                                                                                                          3,133,604                              4,305,159

Commitments & Contingencies (Note 10)

Shareholders' Equity (Deficit) (Note 8)
   Common Stock, $0.0001 par value; 300,000,000 shares authorized, and
   249,367,273 shares issued and shares outstanding at December 31, 2011 and
   177,975,852 shares outstanding December 31, 2010, respectively.                                                         24,938                                     14,436
Additional Paid-in Capital                                                                                                                      2,636,588                                2,369,149
Deferred Stock Based Compensation                                                                                                                   0                                              0
Shares to be Issued                                                                                                                                               0                                               0
Accumulated Earnings (Deficit) (See Note 10)                                                                                      1,124,220                                  (812,729)
Total Shareholders' Equity                                                                                                                      3,785,746                                 1,570,856

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT)                                            $ 6,919,350                                5,876,015


NOTE 2 - BASIS OF PRESENTATION

In the opinion of management, the accompanying balance sheets and related ANNUAL statements of income, cash
flows, and stockholders' equity include all adjustments, consisting only of normal recurring items, necessary for their fair
presentation in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP").
Preparing financial statements requires management to make estimates and assumptions that affect the reported amounts of
assets, liabilities, revenue and expenses. Actual results and outcomes may differ from management's estimates and
assumptions.
ANNUAL results are not necessarily indicative of results for a full year. The information included in these
ANNUAL financial statements should be read in conjunction with information included in the annual financial statements.
These financial statements include the results of operations for the Company and the Company's wholly owned
subsidiaries, CAVU Resources, Inc., 5 months of operations of Envirotek Fuel Systems, Inc. as it was sold June 1, 2011. Its
minority owned subsidiary CAVU Energy Services, Inc. (formerly FILO Quip Resources, LLC), was restructured as per the
Proxy vote of September 16, 2011 with approximately 60% of the company dividend out to the existing shareholders of
CAVU Resources, Inc., and its minority owned subsidiary Proxity Electronic Commerce, LLC and Cyber Aerospace, LLC
from January 1, 2011 through December 31, 2011. None of these company's results are in these financial reports, except for
profits and or dividends paid and reported thru K-1 and or 1099 reports. All intercompany balances have been eliminated in
consolidation

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Marketable Securities

The Company's short-term investments are classified as available-for-sale at the respective balance sheet dates.
The Company accounts for its investments at fair value in accordance with SFAS 115. The investments classified as
available-for-sale are recorded at fair value based upon quoted market prices, and any material temporary difference
between the cost and fair value of an investment is presented as a separate component of accumulated other comprehensive
income (loss.) Unrealized losses are charged against "Other income (expense)" when a decline in fair value is determined to
be other than-temporary.

  Revenue Recognition

The Company records revenues when the following fundamental criteria are met: (i) persuasive evidence of an arrangement exists, (ii) delivery has occurred or services have been rendered, (iii) the price to the customer is fixed or determinable and (iv) collection of the resulting receivable is reasonably assured. Revenues are recorded in accordance with Staff Accounting Bulletin ("SAB") No. 104, as issued by the United States Securities and Exchange Commission ("SAB 104"), the Company is still contemplating various business plans but anticipates recognizing revenues in 2010 and 2011. The Company negotiates contracts with its customers, which may include revenue arrangements with multiple deliverables, as outlined by Emerging Issues Task Force No. 00-21 ("EITF 00-21"). The Company's accounting policies are defined such that each deliverable under a contract is accounted for separately. Historically, the Company has not enteredinto contracts with its customers that provided for multiple deliverables.


NOTE 3 - GOING CONCERN

The Company's financial statements have been prepared on a going concern basis, which contemplates continuity of operations, realization of assets and liquidation of liabilities in the normal course of business. The Company had net earnings of $1,124,143 during the twelve months ended December 31, 2011. (This does not match page F-2)This is first profitable year the company hashad since inception and the ability of the Company to operate as a going concern depends upon its ability to obtain outside sources of working capital in the near future. Management is aware of these requirements and is undertaking specific measures to address these liquidity concerns. Notwithstanding the foregoing, there can be no assurance that the Company will be successful in obtaining financing, that it will have sufficient funds to execute its business plan or that it will generate positive operating results. The financial statements do not include any adjustments relating to the recoverability and classification of asset carrying amounts or the amount and classification of liabilities that might result should the Company be unable to continue as a going concern.


NOTE 4 - NOTE RECEIVABLE

In June of 2011 the Company sold its operating subsidiary Envirotek Fuel Systems, Inc. for $2,500,000 with a down payment of $300,000 and a note of $2,200,000. The Company has recently restructured this note with interest and penalties and expects to start receiving $100,000 a month until paid or until the buyers are able to recapitalize their company. The company also sold the 6.2 acres of land, the building, the rights and all of the processing equipment for the saltwater disposal facility to be built in Pauls Valley Oklahoma for $1,500,000. The company expects to be paid for this purchase by the fourth quarter of 2012.

NOTE 5 - DRILLING EQUIPMENT

Property and equipment consisted of the following:

                                                                                                   DECEMBER 31, 2011                         DECEMBER 31, 2010

Drilling Equipment and Automobiles........                 $ 761,467                                   $2,626,166
Less: Accumulated Depreciation .........                                     (111,026)                                     (262,616)
...................................................                                  $ 650,441                                   $2,363,550  (sold the Landrover and the Mercedes)
 

8


23. On December 15, 2009 and January 20, 2010, the company has received $50,000 each respectfully for a total of $100,000 of a $5,000,000 private placement being offered by CAVU Resources One, LP (the Partnership) is seeking aggregate capital contributions (Capital Contributions) of $5,000,000 million from the sale of 100 units (the Units) of the Partnership. Each Unit will consist of one interest in the Partnership and 50,000 shares of restricted common stock of CAVU Resources Inc., a Nevada corporation. The price per Unit is $50,000, payable in full in cash at the time of subscription. This offering will not break escrow unless the minimum amount of $50,000 has been raised. (was raised as per 1st sentence) The offering period is November 15, 2009 through December 31, 2010. (was amended to extend thru December 31, 2011 as in final sentence) The Partnership will be managed by CAVU Resources, Inc. (the General Partner).

Now here's the kicker:

The profits will be pay out 100% to the Limited partner until theinvestment is returned, than all future profits will be split 75% to the Limited Partner and 25% to the General partner. The General Partner will receive a 5% management fee. The partnership was amended to extend thru December 31, 2011.


Now jump to item 26


24. On January 8, 2010 the Company entered into a note with Ayuda Funding Group, LLC in the amount of $385,000 at 15% interest, the note became due in April of 2010, this retired the original note made by Ayuda for $100,000.In connection with this new note the Company agreed to pay a royalty on it oil and gas lease owned by Envirotek Fuel Systems, Inc. in the amount of 7.5% of its net revenue or a minimum of $7,500 a month. The Company negotiated a forbearance agreement with Ayuda in February, 2011 and the company had agreed to make payments of $75,000 starting in March. The Companys renegotiated this loan and has been making lump sum payments and will continue to do so until this debt is satisfied.


25. On January 8, 2010 the Company settled the outstanding note against the Envirotek Fuel Systems, Inc. purchase for $250,000.

 

26. On January 15, 2010 the company received $95,000 as a fee from the sale of units of its $5,000,000 506 Red D Private Placement for CAVU Resources One, LP. The company issued 100,000 shares at a value of $5,000as part of this transaction this company has now merged with FILO Quip Resources, Inc. recently renamed CAVU Energy Services, Inc.
 

27. On January 7, 2009, before the acquisition on April 24, 2009, the Company entered into five and three year leases with Verilease Finance, Inc. for drilling and oil field equipment in the amount of $800,000 and $285,362, respectively. The monthly payments for these leases began on June 15, 2009 and were for interest-only amount of $5,846 in total. As of November 15, 2009, the monthly payments for each lease will be for $17,812 and $4,100 respectively. The Company has proposed a purchase of the equipment leased canceling these terms and is negotiating a settlement. The equipment was sold and the lease was settled for $344,700.00with payments of $25,000 a month beginning May 15, 2011.


28.On January 15, 2009, before the merger on April 24, 2009, CAVU Resources, Inc.entered into a convertible demand promissory note with Energy Group of America, Inc. for $400,000, in connection with the purchase of drilling equipment. The convertible demand promissory note is due in full on September 12, 2009 and carries interest at an annualized rate of 8%. Energy Group of America, Inc. was also granted conversion rights to convert negotiated amounts of the convertible demand promissory note at any time and at a negotiated conversion price per share of the Company's common stock. On December 14, 2009, February 2, 2010 and June 24, 2010, Energy Group of America, Inc. elected to convert a portion of its debt into shares of the Company's common stock. In October 2010, Energy Group agreed to settle the outstanding balance $393,559.28 and cancel any outstanding an agreement for $150,000. The company has continued to make payment reducing this debt.


29. On January 28, 2010 the Company entered into an agreement to purchase the Alexander oil and gas lease and a pipeline in Pecos Texas for $2,400,000.       This agreement has expired.


30.On January 21, 2010 and February 5, 2010 the entered into a convertible debenture agreement with Tripod Group, LLC, they advanced $55,000 and $51,250 respectively to the Company. In March 2010, a private group of investors purchased the 12,266,668 shares held as security shares from Tripod and paid the notes in full.


31.On February 2, 2010 the Company sold to a private investor 1,000,000 common shares for $20,000. ($.02)


32.On February 16, 2011 the company entered into a consulting agreement with Resources Unlimited NW, LLC, to provide Michael Sheikh as the CFO of the company. Mr. Sheikh was paid 2,000,000 shares of common stock valued at $20,000. ($.01)


33.In June of 2009, a consultant engaged by CAVU Resources, Inc. entered into an agreement with Cade Drilling, LLC to drill a well in Colorado. Unknown to the management of CAVU at the time, the well was drilled and the funds advanced to the consultant to pay for the services were only partially applied. The well was completed and the Drilling contractor and associated suppliers that were owed funds filed an action in Colorado against Company. The Company was not notified in a timely fashion and a default judgment was entered against the Company on March 2, 2010. The Company has begun negotiations to settle this claim and believes terms favorable to the Company will be agreed to. (Have we REALLY been negotiating since March 2 two years ago????)


34. On March 19, 2010 the Company sold to a private investor 1,000,000 common shares for $50,000 ($.05)


35.On April 22, 2010 the Company amended its Article to reduce the number of shares authorized from 600,000,000 to 200,000,000.


36.On May 24, 2010 the Company entered into an agreement to sell 50% of its Chisholm lease and entered into a non interest bearing note and mortgaged against its 30 acre facility in Tulsa, Oklahoma for $250,000 with GT Energy, LLC for the  completion for the Chisholm Lease purchase. G T Energy was issued 250,000 and 2,000,000 shares of the Company's common stock as part of the transaction additional consideration was $41,250.00. The Company will be paid $1,100,000 as additional consideration from the production revenue.  (ITEM 22, PG 17- THIS 30-ACREAGE he bought from his own holdings for $100,000.00 Dec 31, 2009)
 

        ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

A safe Haven and discussion thread for investors who want to gripe and openly discuss or question
about what is affecting their stock by either internal or external forces.
PostSubject
#130  Sticky Note good pennystock spam/scam article: http://www.fool.com/investing/general/2012/04 johnsyn 04/22/12 11:11:56 AM
#110  Sticky Note FRIDAY'S FROM 4-5 PM is IHUB HAPPY HOUR. johnsyn 04/20/12 04:44:29 PM
#90  Sticky Note THIS link: http://seekingalpha.com/article/248039-withholding-tax-rates-by-cou johnsyn 04/20/12 02:31:05 PM
#190   gonna play that big board gas stock next week Moody blues 04/27/12 01:55:22 PM
#189   No big deal... I tossed a few bucks MyBad 04/27/12 01:44:44 PM
#188   OK, fine. LOL. But you haven't sold me johnsyn 04/27/12 01:38:27 PM
#186   no, they seem to think no one but johnsyn 04/27/12 12:13:59 PM
#185   LMAO, not sure I dodged them, MyBad, but johnsyn 04/27/12 12:06:31 PM
#184   are they setting this up for another run? Moody blues 04/27/12 12:04:20 PM
#183   Busy, yes! It's been: Johnsyn dodgin' bullets all MyBad 04/27/12 11:51:47 AM
#182   and to think you were just joking around, johnsyn 04/27/12 11:46:10 AM
#181   board sure is busy today Moody blues 04/27/12 11:42:13 AM
#180   ...and many of them were already. Your belief johnsyn 04/27/12 11:38:51 AM
#179   to be attacked over each and every error jmurfk 04/27/12 11:33:27 AM
#178   to be attacked over each and every error johnsyn 04/27/12 11:29:11 AM
#177   Oh man, the twists you post. jmurfk 04/27/12 11:24:38 AM
#176   This board will even have more mods, if johnsyn 04/27/12 11:19:23 AM
#174   stretching the truth there. Lots of companies file johnsyn 04/27/12 11:11:02 AM
#172   jmurfk, I don't see you slamming The Rainmaker johnsyn 04/27/12 11:00:59 AM
#171   billy has come through on everything he has carm 04/27/12 10:53:33 AM
#170   Oh *SNAP* J.... there they go again! lol! MyBad 04/27/12 10:51:23 AM
#169   It's just too bad the pps didn't hold, johnsyn 04/27/12 10:38:19 AM
#168   And if I believe he missed on this jmurfk 04/27/12 10:30:23 AM
#167   I stated I didn't know what his track johnsyn 04/27/12 10:26:01 AM
#165   He has a firm called Robinson & something, johnsyn 04/27/12 07:19:09 AM
#164   Wow, well, I guess that does pose a jaws123 04/26/12 08:56:00 PM
#160   financials looked terrible, written poorly (to confuse deliberately?), johnsyn 04/26/12 07:18:36 PM
#159   I suspect that CAVR should be progressing and jaws123 04/26/12 07:40:49 AM
#158   back from gym, yes posted on CAVR board. Willy 04/25/12 01:40:54 PM
#157   Ahhh, the "not complete" limit. Thanks for e-mailing johnsyn 04/25/12 10:33:40 AM
#156   From OTC Markets re CAVR Warning sign. Willy 04/25/12 09:52:14 AM
#155   My Blessed favorite HK is going on the johnsyn 04/25/12 09:26:41 AM
#154   good theory, hope you got some sleep.LOL. johnsyn 04/25/12 09:25:42 AM
#153   Here's my theory on the Warning Sign: Willy 04/25/12 02:24:46 AM
#152   I'm also confused by the fact that Cavu johnsyn 04/24/12 03:50:38 PM
#151   wouldn't surprise me Moody blues 04/24/12 03:39:25 PM
#150   New theory on YIELD sign- page 23 "d) johnsyn 04/24/12 03:32:01 PM
#149   .I know what you mean. It just keeps johnsyn 04/24/12 03:22:20 PM
#148   where all those guys who said removing the Moody blues 04/24/12 02:54:21 PM
#147   Finally took back up financials, page 3 had johnsyn 04/24/12 02:30:16 PM
#146   It was based on vendor candy, that does johnsyn 04/24/12 02:28:27 PM
#145   we already spiked below that to 0.006 on friday Moody blues 04/23/12 01:54:58 PM
#144   You know, I agree with the other poster. jaws123 04/23/12 01:42:05 PM
#143   i can understand that they ignore me lol Moody blues 04/23/12 12:20:08 PM
#142   that's what I keep finding on Google, not johnsyn 04/23/12 10:05:54 AM
#141   If it is not gone today then I Willy 04/23/12 10:02:22 AM
#140   http://www.smartinvestingdaily.com/articles/smart-investing-021811.html johnsyn 04/23/12 09:56:14 AM
#139   wonder why CAVR can't get rid of that YIELD? johnsyn 04/23/12 09:51:44 AM
#138   nasdaq.com seems to freak out 1st time trying johnsyn 04/23/12 09:02:27 AM
#137   The Dow Jones is down 133 points this johnsyn 04/23/12 08:45:53 AM
#136   some of those may cite the finra figures johnsyn 04/23/12 08:37:36 AM
#135   Good morning Johnsyn, MyBad 04/23/12 12:43:57 AM
#134   the numbers are the same as on regsho, Moody blues 04/22/12 06:22:06 PM
PostSubject