Florida
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33-0961490
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(State
or Other Jurisdiction of incorporation or organization)
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(IRS Employer I.D. No.)
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TABLE OF CONTENTS |
Page
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PART I. FINANCIAL
INFORMATION
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Item 1. Financial Statements
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3
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Consolidated Balance Sheets as of December 31, 2008 (Unaudited) and September 30, 2008 |
3
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Consolidated Statements of Operations for the three months ended December 31, 2008 and 2007 (Unaudited) |
4
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Consolidated Statements of Cash Flows for the three months ended December 31, 2008 and 2007 (Unaudited) |
5
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Notes to Condensed Consolidated Financial Statements |
6-7
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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operation |
8-12
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Item 3. Quantitative and Qualitative Disclosures About Market Risks |
13
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Item
4. Evaluation of Controls and Procedures
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13
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PART
II. OTHER INFORMATION
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Item 1. Legal Proceedings |
16
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Item 1A. Risk Factors |
16
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds |
16
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Item 3. Defaults Upon Senior Securities |
16
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Item 4. Submission of Matters to a Vote of Security Holders |
16
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Item 5. Other Information |
16
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Item 6. Exhibits |
16
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Signatures 17 |
December 31,
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September 30,
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|||||||
2008
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2008
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|||||||
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(Unaudited)
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||||||
ASSETS | ||||||||
CURRENT
ASSETS
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||||||||
Cash
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$ | 100,711 | $ | 99,087 | ||||
Prepaid financial consulting
expenses
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148,559 | 207,415 | ||||||
Other Current
assets
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6,567 | 6,937 | ||||||
Total Current
Assets
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255,837 | 313,439 | ||||||
PROPERTY
AND EQUIPMENT, NET OF ACCUMULATED DEPRECIATION
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4,219,547 | 4,259,786 | ||||||
Total Assets
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$ | 4,475,384 | $ | 4,573,225 | ||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
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||||||||
CURRENT
LIABILITIES
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||||||||
Accounts payable
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$ | 325,824 | $ | 427,335 | ||||
Due to affiliated company
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594,235 | 447,308 | ||||||
Accrued expenses
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15,294 | 41,207 | ||||||
Total Current
Liabilities
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935,353 | 915,850 | ||||||
LONG-TERM DEBT | 375,552 | 374,528 | ||||||
STOCKHOLDERS’
EQUITY
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||||||||
Common Stock, $0.001 par value,
100,000,000 shares Authorized, 20,050,000
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20,050 | 20,050 | ||||||
shares issued and
outstanding
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||||||||
Additional paid-in
capital
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3,757,900 | 3,751,900 | ||||||
Accumulated
deficit
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(1,374,284 | ) | (1,261,133 | ) | ||||
Accumulated other comprehensive
income
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760,813 | 772,030 | ||||||
Total Stockholders’
Equity
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3,164,479 | 3,282,847 | ||||||
Total Liabilities and
Stockholders' Equity
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$ | 4,475,384 | $ | 4,573,225 | ||||
The accompanying notes are an integral
part of these consolidated financial
statements.
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THREE MONTHS ENDED | ||||||||
DECEMBER 31, | ||||||||
2008 | 2007 | |||||||
SALES
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$ | - | $ | - | ||||
COSTS
OF GOODS SOLD
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- | - | ||||||
GROSS
PROFIT
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- | - | ||||||
COSTS
AND EXPENSES (INCOME):
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||||||||
General
and administrative expenses
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102,464 | 104,433 | ||||||
Other
income
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- | (33,882 | ) | |||||
Interest expense | 10,687 | 877 | ||||||
TOTAL
COSTS AND EXPENSES (INCOME)
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113,151 | 71,428 | ||||||
NET
LOSS
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(113,151 | ) | (71,428 | ) | ||||
OTHER COMPREHENSIVE INCOME (LOSS): | ||||||||
Foreign currency translation adjustment | (11,217 | ) | 91,889 | |||||
COMPREHENSIVE INCOME (LOSS) | $ | (124,368 | ) | $ | (20,461 | ) | ||
BASIC
AND DILUTED EARNINGS PER COMMON
SHARE
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$ | (0.01 | ) | $ | (0.00 | ) | ||
WEIGHTED
AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING
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20,050,000 | 20,050,000 | ||||||
The accompanying notes are an integral
part of these consolidated financial
statements.
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||||||||
THREE MONTHS ENDED DECEMBER 31, | ||||||||
2008 | 2007 | |||||||
OPERATING ACTIVITIES: | ||||||||
Net
loss
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$ | (113,151 | ) | $ | (71,428 | ) | ||
Adjustments
to reconcile net loss
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||||||||
to
net cash provided by (used in) operating activities:
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||||||||
Depreciation
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32,069 | 33,497 | ||||||
Imputed interest | 6,000 | - | ||||||
Prepaid financial consulting expenses | 59,423 | 55,535 | ||||||
Changes
in operating assets and liabilities:
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Other
current assets
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389 | 2,532 | ||||||
Accounts
payable
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(102,679 | ) | (164,811 | ) | ||||
Accrued
expenses
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(26,027 | ) | (23,704 | ) | ||||
NET
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES
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(143,976 | ) | (168,379 | ) | ||||
FINANCING ACTIVITIES:
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||||||||
Loans
from affiliated company
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145,704 | (154,888 | ) | |||||
NET
CASH PROVIDED BY FINANCING ACTIVITIES
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145,704 | (154,888 | ) | |||||
EFFECT
OF EXCHANGE RATE ON CASH
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(1,775 | ) | (22 | ) | ||||
DECREASE
IN CASH
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(47 | ) | (13,513 | ) | ||||
CASH –
BEGINNING OF PERIOD
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100,758 | 114,271 | ||||||
CASH –
END OF PERIOD
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$ | 100,711 | $ | 100,758 | ||||
Supplemental
disclosures of cash flow information:
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Cash
paid during the period for:
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Interest
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$ | 15,635 | $ | 13,710 | ||||
Non-cash
operating activities:
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||||||||
Transfer
accounts payable to affiliated company
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$ | - | $ | 6,132 |
The accompanying notes are an integral
part of these consolidated financial
statements.
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Three
months ended December 31st
(using current year exchange rates)
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2009
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$ | - | ||
2010
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$ | 34,180 | ||
2011
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34,180 | |||
2012
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34,180 | |||
2013
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34,180 | |||
Thereafter
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239,260 | |||
$ | 375,980 |
December
31, 2008
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December
31, 2007
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|||||||
Sales
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$ | - | $ | - | ||||
Cost
of Goods Sold
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- | - | ||||||
General
and Administrative Expenses
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102,464 | 104,433 | ||||||
Net
Loss
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$ | (113,151 | ) | $ | (71,428 | ) |
31-Dec-08
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30-Sep-08
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Increase
(Decrease)
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Percent
(Decrease)
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|||||||||||||
Cash
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$ | 100,711 | $ | 99,087 | $ | 1,624 | 2 | % | ||||||||
Accounts
Receivable
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$ | - | $ | - | $ | - | ||||||||||
Inventories
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$ | - | $ | - | $ | - | ||||||||||
Prepaid
expenses
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$ | 148,559 | $ | 207,415 | $ | (58,856 | ) | -28 | % | |||||||
Accounts
Payable
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$ | 325,824 | $ | 427,335 | $ | (101,511 | ) | -24 | % | |||||||
Due
to Affiliated Company
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$ | 594,235 | $ | 447,308 | $ | 146,927 | 33 | % |
31
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Rule
13a-14(a) Certification
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32
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Rule
13a-14(b) Certification
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China
Agro Sciences Corp.
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Dated: February
17, 2009
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By: | /s/ Zhengquan Wang | |
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Zhengquan
Wang
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President,
Director,
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Chief
Executive Officer,
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Chief
Financial Officer,
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Principal
Accounting Officer
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