News!! But not that great of news:
NOTE 3 –GOING CONCERN
As reflected in the accompanying financial statements, the Company had a deficit accumulated during the
development stage of $4,875,262 at December 31, 2012 and had a net loss of $416,368 for the year ended December
31, 2012.
Management intends to raise additional funds now that it has merged thru a private placement or thru the public
process. Management believes that the actions presently being taken to further implement its business plan will
enable the Company to continue as a going concern. While the Company believes in the viability to raise additional
funds, there can be no assurances to that effect. The ability of the Company to continue as a going concern is
dependent upon the Company’s ability to further implement its business plan and generate funds
The financial statements do not include any adjustments that might be necessary if the Company is unable to
continue as a going concern.
NOTE 4 – RELATED PARTY TRANSACTIONS
Conversion of debt from Majority Shareholder and President
The Company has substantially funded operations through loans provided by its majority stockholder and president.
Proceeds from loans were used to fund business operating costs such as salaries, legal fees, rents, transportation
expenses, and other business related expenses. The Company accrues an annual salary of $104,200 to its President.
The related party debt owed to the President accrues interest at 10%. On April 30, 2012, as disclosed in Note 6, the
Company issued 350,000,000 shares of common stock to cancel related party debt to its majority stockholder in the
amount of $1,882,672. For the year ended December 31, 2012 and 2011, the Company accrued interest on the
majority stockholder debt in the amount of $40,427 and $97,971 respectively.
Related party debt
The Company has borrowed funds from a shareholder and relative of the Company's President. As of December 31,
2012 and December 31, 2011, the amount due to this related party amounted to $122,330 and $118,474,
respectively. These loans are payable upon demand and have no stated interest rate.
F-10
NOTE 5 – NOTES PAYABLE
A summary of other liabilities is as follows:
December 31,
2012
December 31,
2011
Legal settlement due to Compassionate Health Care Health Services, Inc. - Due on
demand and currently in default.
$ 70,000 $ 70,000
Loan payable to Inmed Diagnostics, Inc. - Due on demand, no stated interest rate. 10,000 8,000
Loan payable shareholders 112,750 140,300
Total $ 192,750 $ 218,300
NOTE 6 – STOCKHOLDERS' DEFICIT
Reverse Stock Split
On January 31, 2012 the Company declared a reverse stock split of its common stock. The formula provided that for
every 80 issued and outstanding shares of common stock of the Company are automatically reverse split into 1 share
of common stock. The reverse stock split was effective February 20, 2012 for holders of record as of that date. Any
resulting share ownership interest of fractional shares was rounded up to the first integer in such a manner that all
rounding was done to the next single share. The reverse stock split was effective March 22, 2012 for holders of
record as of that date. As a result of the stock split there were 2,939,687 shares issued and outstanding. The financial
statements have been adjusted to record the reverse stock split for all periods presented.
Common Stock
During January 2011, the Company issued 10,700,000 shares in exchange for $10,700 of related party debt.
On April 30, 2012, the Company issued 350,000,000 shares of common stock to the Company's Chief Executive
Officer and President in exchange for all the amounts due to him through March 31, 2012 or approximately
$1,882,672. In addition, the Company issued 110,000,000 to satisfy loans in the amount of $10,000.
On August 27, 2012, the Company increased the authorized common shares that the Company may issue from
500,000,000 to 800,000,000.
On September 30, 2012, the Company has issued 44,977,449 shares of common stock to consultants for services.
The Company valued the shares at the market price of $0.002 per share. As a result, the Company recorded a stock
compensation expense of $99,454.
NOTE 7 – COMMITMENTS AND CONTINGENCIES
From time to time, the Company may become involved in various lawsuits and legal proceedings, which arise in the
ordinary course of business. However, litigation is subject to inherent uncertainties, and an adverse result in these or
other matters may arise from time to time that may harm its business. The Company is currently not aware of any
suchlegal proceedings or claims, other than those accrued for and disclosed in Note 5, that they believe will have,
individually or in the aggregate, a material adverse effect on its business, financial condition or operating results.
