News 
Market Data 
Discover
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Here's my theory on the Warning Sign:
Here is the box that pops up when you click on the Warning Symbol. I am assuming since CAVR has not submitted disclosures on time nor has Billy submitted quarterly reports, is why the symbol is still there. I have check some other pennies and those that have submitted all their reports on time do not have the Warning.
I have emailed Pinksheets and asked them why the Warning is there. Will let you know if I hear anything.
|
Followers
|
2
|
Posters
|
|
|
Posts (Today)
|
0
|
Posts (Total)
|
447
|
|
Created
|
04/18/12
|
Type
|
Free
|
| Moderator johnsyn | |||
| Assistants Willy Moody blues | |||
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
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 has ordered the NOBO list for disclosure
The Company is authorized to issue preferred shares.
3
Item III. FINANCIAL STATEMENTS.
CAVU RESOURCES, INC.
2011 2010
ASSETS (Unaudited) (Unaudited)
TOTAL ASSETS $ 6,919,350 5,876,015
LIABILITIES & SHAREHOLDERS' EQUITY (DEFICIT)
TOTAL LIABILITIES 3,133,604 4,305,159
Commitments & Contingencies (Note 10)
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY (DEFICIT) $ 6,919,350 5,876,015
NOTE 2 - BASIS OF PRESENTATION
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Marketable Securities
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
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)
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
