NEVADA
|
3999
|
98-0195748
|
(State
or Other Jurisdiction of Incorporation or
Organization)
|
(Primary
Standard Industrial Classification Code)
|
(I.R.S.
Employer Identification Number)
|
1200
G Street, NW Suite 800 Washington
District
of Columbia 20005
Telephone:
(800) 676-1006
|
Charles
Bell, President and Chief Executive Officer
1200
G Street, NW Suite 800 Washington
District
of Columbia 20005
Telephone:
(800) 676-1006
|
(Address
and telephone of registrant's executive office)
|
(Name,
address and telephone number of agent for
service)
|
Title
of each
class
of securities to be registered
|
Amount
to be
Registered
|
Proposed
maximum
offering
price
per
share
|
Proposed
maximum
aggregate
offering
price
|
Amount
of
registration
Fee
|
||||||||||||
Common
Stock, $0.001 par value(1)
|
5,799,999
|
$
|
0.25
|
(2)
|
$
|
1,450,000
|
$
|
57
|
||||||||
Common
Stock, $0.001 par value, issuable upon exercise of Series B Non redeemable
warrants (3)
|
2,883,334
|
$
|
0.60
|
$
|
1,730,000
|
$
|
67
|
|||||||||
Total
(4)
|
8,683,333
|
$
|
3,180,000
|
$
|
124
|
(5)
|
Page
|
|
3
|
|
7
|
|
17
|
|
18
|
|
19
|
|
19
|
|
19
|
|
23
|
|
31
|
|
35
|
|
40
|
|
42
|
|
43
|
|
44
|
|
46
|
|
49
|
|
50
|
|
50
|
|
51
|
|
51
|
|
51
|
|
51
|
|
52
|
|
F1-F24
|
Consolidated
Statements of Operations Data:
|
For
the Nine Months Ended December 31 , 2008
|
For
the Nine Months Ended December 31 , 2007
|
For
the Year Ended
March 31,
2008
|
For
the Year Ended
March 31,
2007
|
||||||||||||
Revenue
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
||||||||
Loss
from operations
|
$
|
(1,104,565
|
)
|
$
|
(288,432
|
)
|
$
|
(385,141
|
)
|
$
|
(218,985
|
)
|
||||
Net
loss available to common stockholders
|
$
|
(1,096,534
|
)
|
$
|
(298,838
|
)
|
$
|
(411,934
|
)
|
$
|
(224,862
|
)
|
||||
Basic
and diluted net loss per share
|
$
|
(0.03
|
)
|
$
|
(0.01
|
)
|
$
|
(0.01
|
)
|
$
|
(0.01
|
)
|
||||
Weighted
average number of common shares outstanding used in basic and diluted net
loss per share calculation
|
41,633,772
|
36,932,500
|
36,949,788
|
36,932,500
|
Consolidated
Balance Sheet Data:
|
December
31,
2008
|
December
31, 2007
|
March 31,
2008
|
March 31,
2007
|
March 31,
2006
|
|||||||||||||||
Cash
and cash equivalents
|
$
|
1,407,476
|
$
|
38,432
|
$
|
797,725
|
$
|
23,531
|
$
|
70,149
|
||||||||||
Working
Capital (deficiency)
|
$
|
1,336,380
|
$
|
(594,874
|
)
|
$
|
551,030
|
$
|
(296,255
|
)
|
$
|
(238,551
|
)
|
|||||||
Total
assets
|
$
|
1,410,499
|
$
|
38,432
|
$
|
797,725
|
$
|
23,777
|
$
|
184,325
|
||||||||||
Total
liabilities
|
$
|
74,119
|
$
|
633,306
|
$
|
246,695
|
$
|
319,813
|
$
|
309,942
|
||||||||||
Total
stockholders’ equity (deficit)
|
$
|
1,336,380,
|
$
|
(594,874
|
)
|
$
|
551,030
|
$
|
(296,036
|
)
|
$
|
(125,617
|
)
|
|
·
|
competition;
|
|
·
|
need
for acceptance of products;
|
|
·
|
ability
to continue to develop and extend brand
identity;
|
|
·
|
ability
to anticipate and adapt to a competitive
market;
|
|
·
|
ability
to effectively manage rapidly expanding
operations;
|
|
·
|
amount
and timing of operating costs and capital expenditures relating to
expansion of our business, operations, and infrastructure;
and
|
|
·
|
dependence
upon key personnel.
|
FISCAL
YEAR ENDING MARCH 31, 2009
|
HIGH
|
LOW
|
||||||
January
1, 2009 to March 31, 2009
|
$
|
0.30
|
0.11
|
|||||
October
1, 2008 to December 31, 2008
|
$
|
1.01
|
0.15
|
|||||
July
1 to September 30, 2008
|
$
|
2.08
|
$
|
0.55
|
||||
April
1 to June 30, 2008
|
$
|
2.30
|
$
|
0.75
|
FISCAL
YEAR ENDED MARCH 31, 2008
|
HIGH
|
LOW
|
||||||
January
1 to March 31, 2008
|
$
|
1.55
|
$
|
0.35
|
||||
October
1 to December 31, 2007
|
$
|
2.35
|
$
|
0.75
|
||||
July
1 to September 30, 2007
|
$
|
2.00
|
$
|
0.55
|
||||
April
1 to June 30, 2007
|
$
|
0.73
|
$
|
0.45
|
FISCAL
YEAR ENDED MARCH 31, 2007
|
HIGH
|
LOW
|
||||||
January
1 to March 31, 2007
|
$
|
0.51
|
$
|
0.51
|
||||
October
1 to December 31, 2006
|
$
|
0.75
|
$
|
0.35
|
||||
July
1 to September 30, 2006
|
$
|
0.50
|
$
|
0.35
|
||||
April
1 to June 30, 2006
|
$
|
0.65
|
$
|
0.35
|
|
·
|
We
would not be able to pay our debts as they become due in the usual course
of business; or
|
|
·
|
Our
total assets would be less than the sum of our total liabilities plus the
amount that would be needed to satisfy the rights of stockholders who have
preferential rights superior to those receiving the
distribution.
|
Number
of options
|
Weighted
average exercise price
|
Weighted
average remaining contractual terms
|
Aggregate
intrinsic value
|
||||||||||
Outstanding
at March 31, 2008
|
7,950,000
|
0.13
|
|||||||||||
Granted
|
150,000
|
0.69
|
|||||||||||
Outstanding
at December 31, 2008
|
8,100,000
|
0.14
|
6.50
years
|
$
|
318,000
|
||||||||
Exercisable
at December 31, 2008
|
7,950,000
|
$
|
0.13
|
6.44
years
|
$
|
318,000
|
|||||||
Available
for grant at December 31, 2008
|
11,850,000
|
Options
Outstanding
|
Options
Exercisable
|
||||||||||||||||||||||||||
Range
of Exercise Prices
|
Number
Outstanding
|
Weighted
Average
Exercise
Price
|
Weighted
Average Remaining Contractual Life (Years)
|
Number
Exercisable
|
Weighted
Average
Exercise
Price
|
Weighted
Average Remaining Contractual Life (Years)
|
|||||||||||||||||||||
$ | 0.13 | 7,950,000 | $ | 0.13 | 6.44 | 7,950,000 | $ | 0.13 | 6.44 | ||||||||||||||||||
0.40 | 50,000 | $ | 0.40 | 9.79 | - | - | - | ||||||||||||||||||||
0.83 | 100,000 | 0.83 | 9.70 | - | - | - | |||||||||||||||||||||
$ | 0.13 - $0.83 | 8,100,000 | $ | 0.14 | 6.50 | 7,950,000 | $ | 0.13 | 6.4 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||||||||||
December 31,
|
Percentage
|
December 31,
|
Percentage
|
|||||||||||||||||||||
2008
|
2007
|
Change
|
2008
|
2007
|
Change
|
|||||||||||||||||||
Operating
expenses
|
||||||||||||||||||||||||
Investor
relations
|
$
|
5,700
|
$
|
227,000
|
(97
|
)%
|
$
|
547,200
|
$
|
227,000
|
141
|
%
|
||||||||||||
Director
fees - related party
|
15,726
|
2,500
|
529
|
20,926
|
4,700
|
345
|
||||||||||||||||||
Research
and development
|
35,480
|
29,835
|
19
|
105,214
|
29,835
|
253
|
||||||||||||||||||
Professional
fees
|
39,718
|
5,142
|
672
|
107,142
|
14,719
|
628
|
||||||||||||||||||
Salaries
and benefits
|
27,940
|
-
|
*
|
178,984
|
-
|
*
|
||||||||||||||||||
Other
operating expenses
|
21,833
|
5,799
|
276
|
145,099
|
12,178
|
1,091
|
||||||||||||||||||
Total
operating expenses
|
$
|
146,397
|
$
|
270,276
|
(46
|
)%
|
$
|
1,104,565
|
$
|
288,432
|
283
|
%
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||||||||||
December 31,
|
Percentage
|
December 31,
|
Percentage
|
|||||||||||||||||||||
2008
|
2007
|
Change
|
2008
|
2007
|
Change
|
|||||||||||||||||||
Other
income (expense)
|
||||||||||||||||||||||||
Interest
income
|
$
|
2,188
|
$
|
1,961
|
12
|
%
|
$
|
17,769
|
$
|
2,337
|
660
|
%
|
||||||||||||
Interest
expense
|
-
|
(8,813
|
)
|
*
|
(195
|
)
|
(12,812
|
)
|
(98
|
)
|
||||||||||||||
Loss
on disposal of fixed assets
|
-
|
-
|
*
|
(9,800
|
)
|
-
|
*
|
|||||||||||||||||
Foreign
exchange gain (loss)
|
-
|
(80
|
)
|
*
|
257
|
69
|
272
|
|||||||||||||||||
Total
other income (expense)
|
$
|
2,188
|
$
|
(6,932
|
)
|
*
|
%
|
$
|
8,031
|
$
|
(10,406
|
)
|
*
|
%
|
|
·
|
high
oil prices;
|
|
·
|
depleting
fossil oil reserves;
|
|
·
|
growing
concerns about increased levels of atmospheric carbon dioxide;
and
|
|
·
|
a
growing concern over the use of potential food supplies as a source of
biomass.
|
|
·
|
Chevron
Corporation – has research alliances with Texas A&M University, the
Colorado Center for Biorefining and Biofuel, University of California,
Davis and the Georgia Institute of Technology, all focused on various
aspects of cellulosic biofuel production and
conversion.
|
|
·
|
PetroSun
Inc. – was scheduled to begin operating The Rio Hondo, Texas algae farm in
Spring 2008, and has allocated 20 acres to researching and developing an
algal JP8 jet fuel.
|
|
·
|
Pacific
BioDiesel Technologies- has experience with constructing and operating
biodiesel plants, as well as producing and marketing fuels. The
company is engaged in biodiesel fuel services research and development for
the production of American Society for Testing and Materials-quality
biodiesel from multiple feedstocks.
|
|
·
|
Royal
Dutch Shell PLC – has engaged in a joint venture to develop biofuels with
HR Biopetroleum using algae in an effort to develop sustainable
fuel. The newly formed joint venture company, Cellana, is
constructing a demonstration facility on the Kona coast of Hawaii
Island.
|
|
·
|
Solix
Biofuels – is pursuing a closed algae growth system for the production of
biofuel and has already developed early first and second generation
prototypes.
|
|
·
|
significantly
greater name recognition;
|
|
·
|
established
distribution networks;
|
|
·
|
more
advanced technologies and product
development;
|
|
·
|
additional
lines of products, and the ability to offer rebates, higher discounts or
incentives to gain a competitive
advantage;
|
|
·
|
greater
experience in conducting research and development, manufacturing,
obtaining regulatory approval for products, and marketing approved
products; and
|
|
·
|
greater
financial and human resources for product development, sales and
marketing, and patent litigation.
|
Name(1)
|
Age
|
Position
|
Held
Position Since
|
Charles
Bell
|
40
|
President
and Chief Executive Officer,, Interim Chief Financial Officer,
and Director,
|
October
15, 2008
|
Derek
J. Cooper (1)
|
31
|
Director
|
January
21, 2005
|
Joanne
Stephenson
|
50
|
Director
|
September
12, 2008
|
Jatinder
S. Bhogal
|
41
|
Director
|
October
10, 2008
|
|
·
|
Compensation
should consist of a combination of cash and equity awards that are
designed to fairly pay the directors for work required on behalf of a
company of the size and scope of International Energy,
Inc.;
|
|
·
|
Compensation
should align the directors’ interests with the long-term interests of
stockholders; and
|
|
·
|
Compensation
should assist with attracting and retaining qualified
directors.
|
|
·
|
the
subject of any bankruptcy petition filed by or against any business of
which such person was a general partner or executive officer either at the
time of the bankruptcy or within two years prior to that
time;
|
|
·
|
convicted
in a criminal proceeding or is subject to a pending criminal proceeding
(excluding traffic violations and other minor
offenses);
|
|
·
|
subject
to any order, judgment, or decree, not subsequently reversed, suspended or
vacated, of any court of competent jurisdiction, permanently or
temporarily enjoining, barring, suspending or otherwise limiting his
involvement in any type of business, securities or banking activities;
or
|
|
·
|
found
by a court of competent jurisdiction (in a civil action), the Commission
or the Commodity Futures Trading Commission to have violated a federal or
state securities or commodities
law.
|
Name
|
Age
|
Position
|
Held
Position Since
|
Rakesh
Shankar, PhD, MA
|
55
|
Advisory
Board Member
|
April
2008
|
Anastasios
Melis, PhD
|
61
|
Advisory
Board Member
|
May
2008
|
Name
and Principal Position
|
Year
|
Salary
|
Bonus
|
Other
|
Options Granted
|
Securities
Underlying All Other Compensation
|
Total
|
|||||||||||||||||||||
Derek
Cooper
|
2008
|
$
|
0
|
$
|
0
|
$
|
4,700
|
0
|
$
|
0
|
$
|
4,700
|
||||||||||||||||
President,
CEO,
|
2007
|
$
|
0
|
$
|
0
|
$
|
4,500
|
0
|
$
|
0
|
$
|
4,500
|
||||||||||||||||
Director
(1)
|
2006
|
$
|
0
|
$
|
0
|
$
|
4,200
|
0
|
$
|
0
|
$
|
4,200
|
||||||||||||||||
Harmel
S. Rayat
|
2008
|
$
|
0
|
$
|
0
|
$
|
0
|
0
|
$
|
0
|
$
|
0
|
||||||||||||||||
Secretary,
Treasurer,
|
2007
|
$
|
0
|
$
|
0
|
$
|
3,300
|
0
|
$
|
0
|
$
|
3,300
|
||||||||||||||||
Director(2)
|
2006
|
$
|
0
|
$
|
0
|
$
|
3,600
|
0
|
$
|
0
|
$
|
3,600
|
||||||||||||||||
Rakesh
Shankar (3)
|
2008
|
$
|
0
|
$
|
0
|
$
|
0
|
0
|
$
|
0
|
$
|
0
|
||||||||||||||||
Director
|
2007
|
$
|
0
|
$
|
0
|
$
|
1,100
|
0
|
$
|
0
|
$
|
1,100
|
||||||||||||||||
2006
|
$
|
0
|
$
|
0
|
$
|
0
|
0
|
$
|
0
|
$
|
0
|
|
·
|
each
person (or group of affiliated persons) who is known by us to beneficially
own 5% or more of our common stock;
|
|
·
|
each
of our directors;
|
|
·
|
each
of our named executive officers;
and
|
|
·
|
all
of our directors and executive officers as a
group.
|
Name
and Address of Beneficial Owner
|
Number
of Shares of Common Stock Beneficially Owned (1)
|
Percentage
Beneficially Owned (1)
|
||||||
Charles
Bell
|
0
|
0
|
%
|
|||||
Derek
Cooper
|
0
|
0
|
%
|
|||||
Joanne
Stephenson
|
0
|
0
|
%
|
|||||
Jatinder
S. Bhogal
|
0
|
0
|
%
|
|||||
Frank
Fabio
670
Broadway
Massapequa,
NY 11758
|
0
|
0
|
%
|
|||||
1420525
Alberta Ltd
216-1628
West 1st
Avenue
Vancouver,
BC V6J 1G1(2)
|
16,379,167
|
39
|
%
|
|||||
All
directors and executive officers as a group (5 persons)
|
0
|
0
|
%
|
Name
of Selling Stockholders (1)
|
No.
of Shares Beneficially Owned Prior to the Offering(2)
|
Percentage
of Issued and Outstanding Shares Owned Prior to the
Offering
|
Number
of Shares To Be Sold In This Offering
|
Percentage
of Shares To Be Owned After the Offering
|
||||||||||||
Michael
and Betsy Brauser Tenants by Entirety
|
2,000,000
|
4.73
|
%
|
2,000,000
|
0
|
%
|
||||||||||
Edwin
W. Colman Children’s Trust(3)
|
666,666
|
1.58
|
%
|
666,666
|
0
|
%
|
||||||||||
HUG
Funding LLC(4)
|
833,334
|
1.97
|
%
|
833,334
|
0
|
%
|
||||||||||
GRQ
Consultants Defined Benefit Pension Plan(5)
|
1,666,666
|
3.95
|
%
|
1,666,666
|
0
|
%
|
||||||||||
Jeffrey
McLaughlin
|
63,334
|
0.15
|
%
|
63,334
|
0
|
%
|
||||||||||
Continental
American Resources, Inc.(6)
|
240,000
|
0.57
|
%
|
240,000
|
0
|
%
|
||||||||||
Alpha
Capital Anstalt (7)(12)
|
333,333
|
0.79
|
%
|
333,333
|
0
|
%
|
||||||||||
Ellis
International Ltd. (8)(12)
|
166,667
|
0.39
|
%
|
166,667
|
0
|
%
|
||||||||||
Momona
Capital LLC (9)(12)
|
83,333
|
0.20
|
%
|
83,333
|
0
|
%
|
||||||||||
Palladium
Capital Advisors, LLC(10)
|
100,000
|
0.24
|
%
|
100,000
|
0
|
%
|
||||||||||
Frances
Petryshen
|
30,000
|
0.07
|
%
|
30,000
|
0
|
%
|
||||||||||
Whalehaven
Capital Fund Limited(11)
|
2,500,000
|
4.90
|
%
|
2,500,000
|
0
|
%
|
||||||||||
Total
|
8,683,333
|
19.54
|
%
|
8,683,333
|
0
|
%
|
Selling
Security Holder
|
Market
Price per Share of Common Stock on April 17, 2008
|
Aggregate
Number of Shares Acquired
|
Combined
Market Price of Shares
|
Aggregate
Purchase Price of Shares
|
Total
Possible Discount to Market Price
|
|||||||||||||||
HUG
Funding LLC
|
$
|
1.70
|
416,667
|
$
|
708,334
|
$
|
250,000
|
$
|
458,334
|
|||||||||||
Frances
Petryshen
|
$
|
1.70
|
15,000
|
$
|
25,500
|
$
|
9,000
|
$
|
16,500
|
|||||||||||
Jeffrey
McLaughlin
|
$
|
1.70
|
31,667
|
$
|
53,834
|
$
|
19,000
|
$
|
34,834
|
|||||||||||
Edwin
W. Colman Children’s Trust
|
$
|
1.70
|
333,333
|
$
|
566,666
|
$
|
200,000
|
$
|
366,666
|
|||||||||||
Michael
and Betsy Brauser Tenants by Entirety
|
$
|
1.70
|
1,000,000
|
$
|
1,700,000
|
$
|
600,000
|
$
|
1,100,000
|
|||||||||||
Whalehaven
Capital Fund Limited
|
$
|
1.70
|
1,250,000
|
$
|
2,125,000
|
$
|
750,000
|
$
|
1,375,000
|
|||||||||||
Continental
American Resources, Inc.
|
$
|
1.70
|
120,000
|
$
|
204,000
|
$
|
72,000
|
$
|
132,000
|
|||||||||||
GRQ
Consultants Defined Benefit Pension Plan
|
$
|
1.70
|
833,333
|
$
|
1,416,666
|
$
|
500,000
|
$
|
916,666
|
Selling
Security Holder
|
Market
Price per Share of Common Stock on
April 17, 2008
|
Exercise
price of Series B Warrants
|
Aggregate
Shares Underlying Warrants
|
Combined
Market Price of Shares Underlying Warrants
|
Aggregate
Price of Shares Underlying Warrants
|
Total
Possible Discount to Market Price
|
||||||||||||||||||
HUG
Funding LLC
|
$
|
1.70
|
$
|
0.60
|
416,667
|
$
|
708,334
|
$
|
250,000
|
$
|
458,334
|
|||||||||||||
Frances
Petryshen
|
$
|
1.70
|
$
|
0.60
|
15,000
|
$
|
25,500
|
$
|
9,000
|
$
|
16,500
|
|||||||||||||
Jeffrey
McLaughlin
|
$
|
1.70
|
$
|
0.60
|
31,667
|
$
|
53,834
|
$
|
19,000
|
$
|
34,834
|
|||||||||||||
Edwin
W. Colman Children’s Trust
|
$
|
1.70
|
$
|
0.60
|
333,333
|
$
|
566,666
|
$
|
200,000
|
$
|
366,666
|
|||||||||||||
Michael
and Betsy Brauser Tenants by Entirety
|
$
|
1.70
|
$
|
0.60
|
1,000,000
|
$
|
1,700,000
|
$
|
600,000
|
$
|
1,100,000
|
|||||||||||||
Whalehaven
Capital Fund Limited
|
$
|
1.70
|
$
|
0.60
|
1,250,000
|
$
|
2,125,000
|
$
|
750,000
|
$
|
1,375,000
|
|||||||||||||
Continental
American Resources, Inc.
|
$
|
1.70
|
$
|
0.60
|
120,000
|
$
|
204,000
|
$
|
72,000
|
$
|
132,000
|
|||||||||||||
GRQ
Consultants Defined Benefit Pension Plan
|
$
|
1.70
|
$
|
0.60
|
833,333
|
$
|
1,416,666
|
$
|
500,000
|
$
|
916,666
|
|
·
|
ordinary
brokerage transactions and transactions in which the broker-dealer
solicits purchasers;
|
|
·
|
block
trades in which the broker-dealer will attempt to sell the shares as agent
but may position and resell a portion of the block as principal to
facilitate the transaction;
|
|
·
|
purchases
by a broker-dealer as principal and resale by the broker-dealer for its
account;
|
|
·
|
an
exchange distribution in accordance with the rules of the applicable
exchange;
|
|
·
|
privately
negotiated transactions;
|
|
·
|
settlement
of short sales entered into after the effective date of the registration
statement of which this prospectus is a
part;
|
|
·
|
broker-dealers
may agree with the Selling Stockholders to sell a specified number of such
shares at a stipulated price per
share;
|
|
·
|
through
the writing or settlement of options or other hedging transactions,
whether through an options exchange or
otherwise;
|
|
·
|
a
combination of any such methods of sale;
or
|
|
·
|
any
other method permitted pursuant to applicable
law.
|
|
·
|
any
breach of their duty of loyalty to the corporation or its
shareholders;
|
|
·
|
acts
or omissions not in good faith or which involve intentional misconduct or
a knowing violation of law
|
|
·
|
unlawful
payments of dividends or unlawful stock repurchases or redemptions;
or
|
|
·
|
any
transaction from which the director derived an improper personal
benefit.
|
UNAUDITED
FINANCIAL STATEMENTS
|
||
UNAUDITED
INTERIM CONSOLIDATED BALANCE SHEET AS OF DECEMBER 31, 2008
(UNAUDITED)
|
F-1
|
|
UNAUDITED
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND NINE
MONTHS ENDED DECEMBER 31, 2008 AND 2007(UNAUDITED)
|
F-2
|
|
UNAUDITED
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT) FROM INCEPTION
(NOVEMBER 6, 1998) TO DECEMBER 31, 2008(UNAUDITED)
|
F-3
|
|
UNAUDITED
INTERIM CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED
DECEMBER 31, 2008 AND 2007(UNAUDITED)
|
F-6
|
|
NOTES
TO INTERIM CONSOLIDATED FINANCIAL STATEMENTS (DECEMBER 31, 2008)
(UNAUDITED)
|
F-7
|
|
AUDITED
FINANCIAL STATEMENTS
|
||
REPORT
OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
|
F-13
|
|
CONSOLIDATED
BALANCE SHEETS AS OF MARCH 31, 2008 AND 2007
|
F-14
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS FOR YEARS ENDED MARCH 31, 2008 AND 2007 AND FROM
INCEPTION (NOVEMBER 6, 1998) TO MARCH 31, 2008
|
F-15
|
|
CONSOLIDATED
STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (DEFICIENCY) FROM INCEPTION
(NOVEMBER 6, 1998) TO MARCH 31, 2008
|
F-16
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS FOR THE YEARS ENDEDF-20 MARCH 31, 2008 AND 2007
AND FROM INCEPTION (NOVEMBER 6, 1998) TO MARCH 31,
2008
|
F-17
|
|
NOTES
TO THE CONSOLIDATED FINANCIAL STATEMENTS
|
F-18
|
December 31,
|
March 31,
|
|||||||
2008
|
2008
|
|||||||
ASSETS
|
||||||||
Current
assets
|
||||||||
Cash
and cash equivalents
|
$
|
1,407,476
|
$
|
797,725
|
||||
Other
current assets
|
3,023
|
-
|
||||||
Total
current assets
|
1,410,499
|
797,725
|
||||||
Total
assets
|
$
|
1,410,499
|
$
|
797,725
|
||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
LIABILITIES
|
||||||||
Current
liabilities
|
||||||||
Accounts
payable
|
$
|
36,784
|
$
|
-
|
||||
Accrued
liabilities
|
37,335
|
83,750
|
||||||
Accrued
management fees - related party (Note 9)
|
-
|
162,945
|
||||||
Total
current liabilities
|
74,119
|
246,695
|
||||||
Total
liabilities
|
74,119
|
246,695
|
||||||
Commitments
and Contingencies (Note 5)
|
||||||||
STOCKHOLDERS'
EQUITY
|
||||||||
Stockholders'
equity
|
||||||||
Preferred
stock: $0.01 par value; 1,000,000 shares authorized, no shares issued and
outstanding
|
-
|
-
|
||||||
Common
stock: $0.001 par value; 100,000,000 shares authorized, 42,249,166 and
36,932,500 shares issued and outstanding
|
42,249
|
36,933
|
||||||
Additional
paid-in capital
|
4,489,164
|
1,353,596
|
||||||
Common
stock issuable
|
-
|
1,259,000
|
||||||
Deficit
accumulated during the development stage
|
(3,195,033
|
)
|
(2,098,499
|
)
|
||||
Total
stockholders' equity
|
1,336,380
|
551,030
|
||||||
Total
liabilities and stockholders' equity
|
$
|
1,410,499
|
$
|
797,725
|
Three
Months Ended December 31,
|
Nine
Months Ended December 31,
|
From
Inception (November 6, 1998) to December 31,
|
|||||||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
|||||||||||||||
Revenue
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||||
Operating
expenses
|
|||||||||||||||||||
Investor
relations
|
5,700
|
227,000
|
547,200
|
227,000
|
774,200
|
||||||||||||||
Director
fees - related party
|
15,726
|
2,500
|
20,926
|
4,700
|
237,194
|
||||||||||||||
Research
and development
|
35,480
|
29,835
|
105,214
|
29,835
|
194,719
|
||||||||||||||
Professional
fees
|
39,718
|
5,142
|
107,142
|
14,719
|
204,428
|
||||||||||||||
Salaries
and benefits
|
27,940
|
-
|
178,984
|
-
|
1,113,987
|
||||||||||||||
Website
fees - related party
|
-
|
-
|
-
|
-
|
48,050
|
||||||||||||||
Write
off of oil, gas and mineral leases
|
-
|
-
|
-
|
-
|
112,000
|
||||||||||||||
Other
operating expenses
|
21,833
|
5,799
|
145,099
|
12,178
|
461,401
|
||||||||||||||
Total
operating expenses
|
146,397
|
270,276
|
1,104,565
|
288,432
|
3,145,979
|
||||||||||||||
Operating
loss
|
(146,397
|
)
|
(270,276
|
)
|
(1,104,565
|
)
|
(288,432
|
)
|
(3,145,979
|
)
|
|||||||||
Other
income (expense)
|
|||||||||||||||||||
Interest
income
|
2,188
|
1,961
|
17,769
|
2,337
|
34,712
|
||||||||||||||
Interest
expense
|
-
|
(8,813
|
)
|
(195
|
)
|
(12,812
|
)
|
(77,480
|
)
|
||||||||||
Loss
on disposal of fixed assets
|
-
|
-
|
(9,800
|
)
|
-
|
(9,800
|
|||||||||||||
Foreign
exchange gain (loss)
|
-
|
(80
|
)
|
257
|
69
|
3,514
|
|||||||||||||
Total
other income (expense)
|
2,188
|
(6,932
|
)
|
8,031
|
(10,406
|
)
|
(49,054
|
)
|
|||||||||||
Net
loss
|
$
|
(144,209
|
)
|
$
|
(277,208
|
)
|
$
|
(1,096,534
|
)
|
$
|
(298,838
|
)
|
$
|
(3,195,033
|
)
|
||||
Net loss per share -
basic and diluted
|
$
|
(0.00
|
)
|
$
|
(0.01
|
)
|
(0.03
|
)
|
$
|
(0.01
|
)
|
||||||||
Weighted average number of
common shares outstanding - basic and
diluted
|
42,249,166
|
36,932,500
|
41,633,772
|
36,932,500
|
Common
Stock
|
Additional
|
Common
Stock
|
Deficit
Accumulated During the Development
|
Total Stockholders'
|
|||||||||||||||||||
Shares
|
Amount
|
Paid-in Capital
|
Issuable
|
Stage
|
Equity
(Deficit)
|
||||||||||||||||||
Inception,
November 6, 1998
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||
Common
stock issued at $0.001 per share to a related party for management
services
|
20,000,000
|
20,000
|
(15,000
|
)
|
-
|
-
|
5,000
|
||||||||||||||||
Common
stock issued for cash at $0.25 per share fiscal year ended March 31,
1999
|
1,360,000
|
1,360
|
83,640
|
-
|
-
|
85,000
|
|||||||||||||||||
Loss,
inception (November 6, 1998) to March 31, 1999
|
-
|
-
|
-
|
-
|
(7,470
|
)
|
(7,470
|
)
|
|||||||||||||||
Balance,
March 31, 1999
|
21,360,000
|
21,360
|
68,640
|
-
|
(7,470
|
)
|
82,530
|
||||||||||||||||
Loss,
year ended March 31, 2000
|
-
|
-
|
-
|
-
|
(16,185
|
)
|
(16,185
|
)
|
|||||||||||||||
Balance,
March 31, 2000
|
21,360,000
|
21,360
|
68,640
|
-
|
(23,655
|
)
|
66,345
|
||||||||||||||||
Loss,
year ended March 31, 2001
|
-
|
-
|
-
|
-
|
(171,793
|
)
|
(171,793
|
)
|
|||||||||||||||
Balance,
March 31, 2001
|
21,360,000
|
21,360
|
68,640
|
-
|
(195,448
|
)
|
(105,448
|
)
|
|||||||||||||||
Common
stock issued for cash at $0.10 per share, October 17,
2001
|
10,000,000
|
10,000
|
240,000
|
-
|
-
|
250,000
|
|||||||||||||||||
Loss,
year ended March 31, 2002
|
-
|
-
|
-
|
-
|
(144,541
|
)
|
(144,541
|
)
|
Common
Stock
|
Additional
|
Common
Stock
|
Deficit
Accumulated During the Development
|
Total
Stockholders'
|
||||||||||||||||||||
Shares
|
Amount
|
Paid-in
Capital
|
Issuable
|
Stage
|
Equity
(Deficit)
|
|||||||||||||||||||
Balance,
March 31, 2002
|
31,360,000 | 31,360 | 308,640 | - | (339,989 | ) | 11 | |||||||||||||||||
Common
stock issued to a related party for services rendered at $0.08 per share,
August 5, 2002
|
2,402,500 | 2,403 | 45,647 | - | - | 48,050 | ||||||||||||||||||
Common
stock issued to a related party for services rendered at $0.08 per share,
August 5, 2002
|
1,200,000 | 1,200 | 22,800 | - | - | 24,000 | ||||||||||||||||||
Cancellation
of previously issued common stock, February 4, 2003
|
(1,200,000 | ) | (1,200 | ) | (22,800 | ) | - | - | (24,000 | ) | ||||||||||||||
Loss,
year ended March 31, 2003
|
- | - | - | - | (149,933 | ) | (149,933 | ) | ||||||||||||||||
Balance,
March 31, 2003
|
33,762,500 | 33,763 | 354,287 | - | (489,922 | ) | (101,872 | ) | ||||||||||||||||
Loss,
year ended March 31, 2004
|
- | - | - | - | (70,132 | ) | (70,132 | ) | ||||||||||||||||
Balance,
March 31, 2004
|
33,762,500 | 33,763 | 354,287 | - | (560,054 | ) | (172,004 | ) | ||||||||||||||||
Loss,
year ended March 31, 2005
|
- | - | - | - | (59,494 | ) | (59,494 | ) |
Common
Stock
|
Additional
|
Common
Stock
|
Deficit
Accumulated During the Development
|
Total
Stockholders'
|
||||||||||||||||||||
Shares
|
Amount
|
Paid-in
Capital
|
Issuable
|
Stage
|
Equity
(Deficit)
|
|||||||||||||||||||
Balance,
March 31, 2005
|
33,762,500
|
33,763
|
354,287
|
-
|
(619,548
|
)
|
(231,498
|
) | ||||||||||||||||
Common
stock issued upon exercise of warrants, at $0.05 per
share, June 9, 2005& June 30, 2005
|
3,120,000
|
3,120
|
152,880
|
-
|
-
|
156,000
|
||||||||||||||||||
Common
stock issued upon exercise of stock option, at $0.13 per share, October 7,
2005
|
50,000
|
50
|
6,450
|
-
|
-
|
6,500
|
||||||||||||||||||
Stock
based compensation expense
|
-
|
-
|
785,536
|
-
|
-
|
785,536
|
||||||||||||||||||
Loss,
year ended March 31, 2006
|
-
|
-
|
-
|
-
|
(842,155
|
)
|
(842,155
|
) | ||||||||||||||||
|
||||||||||||||||||||||||
Balance,
March 31, 2006
|
36,932,500
|
36,933
|
1,299,153
|
-
|
(1,461,703
|
)
|
(125,617
|
) | ||||||||||||||||
Stock
based compensation expense
|
-
|
-
|
54,443
|
-
|
-
|
54,443
|
||||||||||||||||||
Loss,
year ended March 31, 2007
|
-
|
-
|
-
|
-
|
(224,862
|
)
|
(224,862
|
) | ||||||||||||||||
Balance,
March 31, 2007
|
36,932,500
|
36,933
|
1,353,596
|
-
|
(1,686,565
|
)
|
(296,036
|
) | ||||||||||||||||
Common
stock issuable in March 2008
|
-
|
-
|
-
|
1,259,000
|
-
|
1,259,000
|
||||||||||||||||||
Loss,
year ended March 31, 2008
|
-
|
-
|
-
|
-
|
(411,934
|
)
|
(411,934
|
) | ||||||||||||||||
Balance,
March 31, 2008
|
36,932,500
|
36,933
|
1,353,596
|
1,259,000
|
(2,098,499
|
)
|
551,030
|
|||||||||||||||||
Common
stock and warrants issued for cash and placement fees in April 2008,
net
|
4,100,000
|
4,100
|
2,395,900
|
(1,259,000
|
)
|
-
|
1,141,000
|
|||||||||||||||||
Stock
based compensation expense
|
-
|
-
|
10,884
|
-
|
-
|
10,884
|
||||||||||||||||||
Common
stock issued upon exercise of warrants, at $0.60 per share in May
2008
|
1,216,666
|
1,216
|
728,784
|
-
|
-
|
730,000
|
||||||||||||||||||
Loss,
nine months ended December 31, 2008
|
-
|
-
|
-
|
-
|
(1,096,534
|
)
|
(1,096,534
|
)
|
||||||||||||||||
Balance,
December 31, 2008
|
42,249,166
|
$
|
42,249
|
$
|
4,489,164
|
$
|
-
|
$
|
(3,195,033
|
)
|
$
|
1,336,380
|
Nine
Months Ended December 31,
|
From
Inception (November 6, 1998) to December 31,
|
|||||||||||
2008
|
2007
|
2008
|
||||||||||
Cash
flows from operating activities
|
||||||||||||
Net
loss
|
$
|
(1,096,534
|
)
|
$
|
(298,838
|
)
|
$
|
(3,195,033
|
)
|
|||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||||||
Depreciation
|
595
|
219
|
6,268
|
|||||||||
Common
stock issued for services
|
-
|
-
|
53,050
|
|||||||||
Stock
based compensation expense
|
10,884
|
-
|
850,863
|
|||||||||
Loss
on disposal of fixed assets
|
9,800
|
-
|
9,800
|
|||||||||
Write
off of oil, gas and mineral leases
|
-
|
-
|
112,000
|
|||||||||
Change
in operating assets and liabilities:
|
||||||||||||
Decrease
(increase) in other current assets
|
(3,023
|
)
|
27
|
(3,023
|
)
|
|||||||
Increase
(decrease) in accounts payable
|
36,784
|
(169
|
)
|
36,784
|
||||||||
Increase
(decrease) in accrued liabilities
|
(46,415
|
)
|
850
|
37,335
|
||||||||
Decrease
in accrued management fees -related party
|
(162,945
|
)
|
-
|
-
|
||||||||
Increase
in accrued interest -related party
|
-
|
12,812
|
-
|
|||||||||
Net
cash used in operating activities
|
(1,250,854
|
)
|
(285,099
|
)
|
(2,091,956
|
)
|
||||||
Cash
flows from investing activities
|
||||||||||||
Purchase
of property and equipment
|
(10,395
|
)
|
-
|
(16,068
|
)
|
|||||||
Purchase
of oil, gas and mineral leases
|
-
|
-
|
(112,000
|
)
|
||||||||
Net
cash used in investing activities
|
(10,395
|
)
|
-
|
(128,068
|
)
|
|||||||
Cash
flows from financing activities
|
||||||||||||
Proceeds
from issuance of common stock and warrants
|
1,871,000
|
-
|
3,627,500
|
|||||||||
Proceeds
from loans from related party
|
-
|
300,000
|
510,000
|
|||||||||
Repayment
of loans from related party
|
-
|
-
|
(510,000
|
)
|
||||||||
Net
cash provided by financing activities
|
1,871,000
|
300,000
|
3,627,500
|
|||||||||
Increase
in cash and cash equivalents
|
609,751
|
14,901
|
1,407,476
|
|||||||||
Cash
and cash equivalents at beginning of period
|
797,725
|
23,531
|
-
|
|||||||||
Cash
and cash equivalents at end of period
|
$
|
1,407,476
|
$
|
38,432
|
$
|
1,407,476
|
||||||
Supplemental
disclosure of cash flow information:
|
||||||||||||
Interest
paid in cash
|
$
|
195
|
$
|
-
|
$
|
77,480
|
||||||
Income
tax paid in cash
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Non-cash
investing and financing activities:
|
||||||||||||
Issuance
of common stock and warrants as commission
|
$
|
60,000
|
$
|
-
|
$
|
60,000
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Numerator
- net loss
|
$
|
(144,209
|
)
|
$
|
(277,208
|
)
|
$
|
(1,096,534
|
)
|
$
|
(298,838
|
)
|
||||
Denominator
- weighted average number of common shares outstanding
|
42,249,166
|
36,932,500
|
41,633,772
|
36,932,500
|
||||||||||||
Basic
and diluted net loss per common share
|
$
|
(0.00
|
)
|
$
|
(0.01
|
)
|
$
|
(0.03
|
)
|
$
|
(0.01
|
)
|
Number
of Options
|
Weighted
Average Exercise Price
|
Weighted
Average Remaining Contractual Term
|
Aggregate
Intrinsic Value
|
||||||||||
Outstanding
at March 31, 2008
|
7,950,000
|
$
|
0.13
|
||||||||||
Granted
|
150,000
|
0.69
|
|||||||||||
Outstanding
at December 31, 2008
|
8,100,000
|
$
|
0.14
|
6.50
years
|
$
|
318,000
|
|||||||
Exercisable
at December 31, 2008
|
7,950,000
|
$
|
0.13
|
6.44
years
|
$
|
318,000
|
|||||||
Available
for grant at December 31, 2008
|
11,850,000
|
Stock
Options Outstanding
|
Stock
Options Exercisable
|
|||||||||||||||||||||||
Exercise
Prices
|
Number
of Options Outstanding
|
Weighted
Average Exercise Price
|
Weighted
Average Remaining Contractual Life (Years)
|
Number
of Options Exercisable
|
Weighted
Average Exercise Price
|
Weighted
Average Remaining Contractual Life (Years)
|
||||||||||||||||||
$ 0.13
|
7,950,000
|
$
|
0.13
|
6.44
|
7,950,000
|
$
|
0.13
|
6.44
|
||||||||||||||||
0.40
|
50,000
|
0.40
|
9.79
|
-
|
-
|
-
|
||||||||||||||||||
0.83
|
100,000
|
0.83
|
9.70
|
-
|
-
|
-
|
||||||||||||||||||
$ 0.13
- $ 0.83
|
8,100,000
|
$
|
0.14
|
6.50
|
7,950,000
|
$
|
0.13
|
6.44
|
Risk-free
interest rate
|
2.13 | % | ||
Expected
life
|
2.0
years
|
|||
Expected
volatility
|
107.9 | % | ||
Dividend
per share
|
$ | 0.00 |
Number
of Warrants Outstanding
|
Weighted
Average Exercise Price
|
|||||||
Outstanding
at March 31, 2008
|
6,880,000
|
$
|
0.05
|
|||||
Issued
|
4,100,000
|
0.60
|
||||||
Expired
|
(6,880,000
|
)
|
0.05
|
|||||
Exercised
|
(1,216,666
|
)
|
0.60
|
|||||
Outstanding
at December 31, 2008
|
2,883,334
|
$
|
0.60
|
(Expressed
in U.S. Dollars)
|
2008
|
2007
|
||||||
ASSETS
|
||||||||
Current
assets
|
||||||||
Cash
|
$
|
797,725
|
$
|
23,531
|
||||
Prepaid
expenses
|
-
|
27
|
||||||
Total
current assets
|
797,725
|
23,558
|
||||||
Computer
equipment, net
|
-
|
219
|
||||||
Total
assets
|
$
|
797,725
|
$
|
23,777
|
||||
LIABILITIES
|
||||||||
Current
|
||||||||
Accounts
payable and accrued liabilities
|
$
|
83,750
|
$
|
2,999
|
||||
Accrued
management fees - related party
|
162,945
|
162,945
|
||||||
Accrued
interest - related party
|
-
|
43,869
|
||||||
Notes
payable - related party
|
-
|
110,000
|
||||||
Total
liabilities
|
246,695
|
319,813
|
||||||
Committments
and Contingencies (Note 4)
|
||||||||
STOCKHOLDERS'
EQUITY (DEFICIENCY)
|
||||||||
Stockholders'
Deficiency
|
||||||||
Preferred
stock: $0.01 par value; Authorized: 1,000,000 shares Issued and
outstanding: None
|
-
|
-
|
||||||
Common
stock: $0.001 par value; Authorized: 100,000,000 shares Issued and
outstanding: 36,932,500 shares
|
11,611
|
11,611
|
||||||
Additional
paid-in capital
|
1,378,918
|
1,378,918
|
||||||
Common
stock issuable
|
1,259,000
|
-
|
||||||
Deficit
accumulated during the development stage
|
(2,098,499
|
)
|
(1,686,565
|
)
|
||||
Total
stockholders' equity (deficiency)
|
551,030
|
(296,036
|
)
|
|||||
Total
liabilities and stockholders' equity (deficiency)
|
$
|
797,725
|
$
|
23,777
|
From
Inception (November 6, 1998) to March 31,
|
||||||||||||
(Expressed
in U.S. Dollars)
|
2008
|
2007
|
2008
|
|||||||||
Revenue
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Expenses
|
||||||||||||
Depreciation
|
219
|
716
|
5,673
|
|||||||||
General
and administrative
|
55,578
|
35,504
|
361,466
|
|||||||||
Investor
relations
|
227,000
|
-
|
227,000
|
|||||||||
Management
and consulting fees - related party (Note 8)
|
4,700
|
8,900
|
216,268
|
|||||||||
Rent
- related party
|
8,139
|
7,422
|
43,192
|
|||||||||
Research
and development
|
89,505
|
-
|
89,505
|
|||||||||
Salaries
and benefits
|
-
|
-
|
95,024
|
|||||||||
Stock
based compensation
|
-
|
54,443
|
839,979
|
|||||||||
Website
fees - related party
|
-
|
-
|
48,050
|
|||||||||
Write
off of oil, gas and mineral leases
|
-
|
112,000
|
112,000
|
|||||||||
385,141
|
218,985
|
2,038,157
|
||||||||||
Operating
Loss
|
(385,141
|
)
|
(218,985
|
)
|
(2,038,157
|
)
|
||||||
Other
income (expenses)
|
||||||||||||
Interest
income
|
2,893
|
2,098
|
16,943
|
|||||||||
Interest
expense
|
(29,686
|
)
|
(7,975
|
)
|
(77,285
|
)
|
||||||
(26,793
|
)
|
(5,877
|
)
|
(60,342
|
)
|
|||||||
Net
loss available to common shareholders
|
$
|
(411,934
|
)
|
$
|
(224,862
|
)
|
$
|
(2,098,499
|
)
|
|||
Loss per share - basic
and diluted
|
$
|
(0.01
|
)
|
$
|
(0.01
|
)
|
||||||
Weighted average number of
common shares outstanding - basic and diluted
|
36,949,788
|
36,932,500
|
Common
Stock
|
Additional
|
Common
stock
|
Deficit
accumulated
during
development
|
Total
Stockholders' equity
|
||||||||||||||||||||
(Expressed
in U.S. Dollars)
|
Shares
|
Amount
|
paid-in
capital
|
issuable
|
stage
|
(deficiency)
|
||||||||||||||||||
Inception,
November 6, 1998
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
|||||||||||||
Common
stock issued at $0.001 per share to a related party for management
services
|
20,000,000
|
5,000
|
-
|
-
|
-
|
5,000
|
||||||||||||||||||
Common
stock issued for cash at $0.25 per share fiscal year ended March 31,
1999
|
1,360,000
|
340
|
84,660
|
-
|
-
|
85,000
|
||||||||||||||||||
Loss,
inception (November 6, 1998) to March 31, 1999
|
-
|
-
|
-
|
(7,470
|
)
|
(7,470
|
)
|
|||||||||||||||||
Balance,
March 31, 1999
|
21,360,000
|
5,340
|
84,660
|
-
|
(7,470
|
)
|
82,530
|
|||||||||||||||||
Loss,
year ended March 31, 2000
|
-
|
-
|
-
|
-
|
(16,185
|
)
|
(16,185
|
)
|
||||||||||||||||
Balance,
March 31, 2000
|
21,360,000
|
5,340
|
84,660
|
-
|
(23,655
|
)
|
66,345
|
|||||||||||||||||
Loss,
year ended March 31, 2001
|
-
|
-
|
-
|
-
|
(171,793
|
)
|
(171,793
|
)
|
||||||||||||||||
Balance,
March 31, 2001
|
21,360,000
|
5,340
|
84,660
|
-
|
(195,448
|
)
|
(105,448
|
)
|
||||||||||||||||
Common
stock issued for cash at $0.10 per share, October 17, 2001
|
10,000,000
|
2,500
|
247,500
|
-
|
-
|
250,000
|
||||||||||||||||||
Loss,
year ended March 31, 2002
|
-
|
-
|
-
|
-
|
(144,541
|
)
|
(144,541
|
)
|
||||||||||||||||
Balance,
March 31, 2002
|
31,360,000
|
7,840
|
332,160
|
-
|
(339,989
|
)
|
11
|
|||||||||||||||||
Common
stock issued to a related party for services rendered at $0.08 per share,
August 5, 2002
|
2,402,500
|
601
|
47,449
|
-
|
-
|
48,050
|
||||||||||||||||||
Common
stock issued to a related party for services rendered at $0.08 per share,
August 5, 2002
|
1,200,000
|
300
|
23,700
|
-
|
-
|
24,000
|
||||||||||||||||||
Cancellation
of previously issued common stock, February 4, 2003
|
(1,200,000
|
)
|
(300
|
)
|
(23,700
|
)
|
-
|
-
|
(24,000
|
)
|
||||||||||||||
Loss,
year ended March 31, 2003
|
-
|
-
|
-
|
-
|
(149,933
|
)
|
(149,933
|
)
|
||||||||||||||||
Balance,
March 31, 2003
|
33,762,500
|
8,441
|
379,609
|
-
|
(489,922
|
)
|
(101,872
|
)
|
||||||||||||||||
Loss,
year ended March 31, 2004
|
-
|
-
|
-
|
-
|
(70,132
|
)
|
(70,132
|
)
|
||||||||||||||||
Balance,
March 31, 2004
|
33,762,500
|
8,441
|
379,609
|
-
|
(560,054
|
)
|
(172,004
|
)
|
||||||||||||||||
Loss,
year ended March 31, 2005
|
-
|
-
|
-
|
-
|
(59,494
|
)
|
(59,494
|
)
|
||||||||||||||||
-
|
||||||||||||||||||||||||
Balance,
March 31, 2005
|
33,762,500
|
8,441
|
379,609
|
-
|
(619,548
|
)
|
(231,498
|
)
|
||||||||||||||||
Common
stock issued upon exercise of warrants, at $0.05 per
share, June 9, 2005 & June 30 2005.
|
3,120,000
|
3,120
|
152,880
|
-
|
-
|
156,000
|
||||||||||||||||||
Common
stock issued upon exercised of stock option, at $0.13 per
share, October 7, 2005
|
50,000
|
50
|
6,450
|
-
|
-
|
6,500
|
||||||||||||||||||
Stock
based compensation expense
|
-
|
-
|
785,536
|
-
|
-
|
785,536
|
||||||||||||||||||
Loss,
year ended March 31, 2006
|
-
|
-
|
-
|
-
|
(842,155
|
)
|
(842,155
|
)
|
||||||||||||||||
Balance,
March 31, 2006
|
36,932,500
|
11,611
|
1,324,475
|
-
|
(1,461,703
|
)
|
(125,617
|
)
|
||||||||||||||||
Stock
based compensation expense
|
-
|
-
|
54,443
|
-
|
54,443
|
|||||||||||||||||||
Loss,
year ended March 31, 2007
|
-
|
-
|
-
|
-
|
(224,862
|
)
|
(224,862
|
)
|
||||||||||||||||
Balance,
March 31, 2007
|
36,932,500
|
11,611
|
1,378,918
|
-
|
(1,686,565
|
)
|
(296,036
|
)
|
||||||||||||||||
Common
stock issuable in March 2008
|
-
|
-
|
-
|
1,259,000
|
-
|
1,259,000
|
||||||||||||||||||
Loss,
year ended March 31, 2008
|
-
|
-
|
-
|
-
|
(411,934
|
)
|
(411,934
|
)
|
||||||||||||||||
Balance,
March 31, 2008
|
36,932,500
|
$
|
11,611
|
$
|
1,378,918
|
$
|
1,259,000
|
$
|
(2,098,499
|
)
|
$
|
551,030
|
From
Inception
|
||||||||||||
(November
6, 1998)
|
||||||||||||
to
March 31,
|
||||||||||||
(Expressed
in U.S. Dollars)
|
2008
|
2007
|
2008
|
|||||||||
Cash
flows from operating activities
|
||||||||||||
Net
Loss
|
$
|
(411,934
|
)
|
$
|
(224,862
|
)
|
$
|
(2,098,499
|
)
|
|||
Reconciliation
of net loss to net cash from operating activities:
|
||||||||||||
Depreciation
|
219
|
716
|
5,673
|
|||||||||
Common
stock issued for services
|
-
|
-
|
53,050
|
|||||||||
Stock
based compensation expenses
|
-
|
54,443
|
839,979
|
|||||||||
Write
off of oil, gas and mineral leases
|
-
|
112,000
|
112,000
|
|||||||||
Change
in non-cash working capital items:
|
||||||||||||
Decrease
(increase) in prepaid expenses
|
27
|
1,215
|
-
|
|||||||||
Increase
(decrease) in accounts payable and accrued liabilities
|
80,751
|
1,896
|
83,750
|
|||||||||
Increase
(decrease) in accrued management fees -related party
|
-
|
-
|
162,945
|
|||||||||
Increase
(decrease) in accrued interest -related party
|
(43,869
|
)
|
7,974
|
-
|
||||||||
Net
cash flow used in operating activities
|
(374,806
|
)
|
(46,618
|
)
|
(841,102
|
)
|
||||||
Cash
flows from investing activities
|
||||||||||||
Purchase
of property and equipment
|
-
|
-
|
(5,673
|
)
|
||||||||
Purchase
of oil, gas and mineral leases
|
-
|
-
|
(112,000
|
)
|
||||||||
Net
cash flow used in investing activities
|
-
|
-
|
(117,673
|
)
|
||||||||
Cash
flows from financing activities
|
||||||||||||
Common
stock issuable
|
1,259,000
|
-
|
1,259,000
|
|||||||||
Proceed
from issuance of common stock
|
-
|
-
|
497,500
|
|||||||||
Proceed
from loans from related party
|
400,000
|
510,000
|
||||||||||
Repayment
of loans from related party
|
(510,000
|
)
|
-
|
(510,000
|
)
|
|||||||
Net
cash flow provided by financing activities
|
1,149,000
|
-
|
1,756,500
|
|||||||||
Increase
(decrease) in cash
|
774,194
|
(46,618
|
)
|
797,725
|
||||||||
Cash, beginning of
period
|
23,531
|
70,149
|
-
|
|||||||||
Cash, end of
period
|
$
|
797,725
|
$
|
23,531
|
$
|
797,725
|
||||||
Supplemental
disclosure of cash flow information:
|
||||||||||||
Interest
paid in cash
|
$
|
73,555
|
$
|
-
|
$
|
77,286
|
||||||
Income
tax paid in cash
|
$
|
-
|
$
|
-
|
$
|
-
|
Note
1.
|
Organization
and Nature of Operations
|
Note
2.
|
Going
Concern Uncertainties
|
Note
3.
|
Summary
of Significant Accounting Policies
|
Note
4.
|
Research
Agreement
|
Note
5.
|
Capital
Stock
|
Note
6.
|
Stock
Options
|
Weighted
|
Remaining
|
Aggregate
|
|||||||||||
Number
of
|
average
|
contractual
|
instrinsic
|
||||||||||
options
|
exercise
price
|
terms
(years)
|
value
|
||||||||||
Outstanding
at March 31, 2006
|
7,950,000
|
$
|
0.13
|
||||||||||
Granted
|
-
|
||||||||||||
Outstanding
at March 31, 2007
|
7,950,000
|
||||||||||||
Granted
|
-
|
||||||||||||
Outstanding
at March 31, 2008
|
7,950,000
|
0.13
|
7.20
years
|
$
|
6,121,500
|
||||||||
Exercisable
at March 31, 2008
|
7,950,000
|
$
|
0.13
|
7.20
years
|
$
|
6,121,500
|
|||||||
Available
for grant at March 31, 2008
|
12,000,000
|
Fair
value
|
||||||||
Shares
|
per
share
|
|||||||
Unvested
at March 31, 2006
|
2,666,667
|
$
|
0.11
|
|||||
Vested
|
(2,666,667
|
)
|
0.11
|
|||||
Unvested
at March 31, 2007 and 2008
|
-
|
Outstanding
|
Exercisable
|
||||||
Weighted
|
Weighted
|
||||||
Weighted
|
Average
|
Weighted
|
Average
|
||||
Range
of
|
Average
|
Remaining
|
Average
|
Remaining
|
|||
Exercise
|
Number
|
Exercise
|
Contractual
|
Number
|
Exercise
|
Contractual
|
|
Prices
|
Outstanding
|
Price
|
Life
(Years)
|
Exercisable
|
Price
|
Life
(Years)
|
|
$0.13
|
7,950,000
|
$0.13
|
7.20
|
7,950,000
|
$0.13
|
7.20
|
Note
7.
|
Warrants
|
Number
of
|
Weighted
average
|
|||||||
warrants
|
exercise
price
|
|||||||
Balance,
March 31, 2008 and 2007
|
6,880,000
|
$
|
0.05
|
Note
8.
|
Related
Party Transactions
|
Note
9.
|
Income
Taxes
|
2008
|
2007
|
|||||||
Deferred
tax assets:
|
||||||||
Net
operating loss carryforwards
|
$
|
394,201
|
$
|
264,237
|
||||
Stock
based compensation
|
283,808
|
283,808
|
||||||
Accrued
interest payable
|
-
|
16,184
|
||||||
Valuation
allowance
|
(678,009
|
)
|
(564,229
|
)
|
||||
$
|
-
|
$
|
-
|
2008
|
2007
|
|||||||
Statutory
federal income tax rate
|
-34.00
|
%
|
-34.00
|
%
|
||||
Valuation
allowance
|
34.00
|
%
|
34.00
|
%
|
||||
Effective
income tax rate
|
0.00
|
%
|
0.00
|
%
|
Note
10.
|
Segment
Information
|
Note
11.
|
Termination
of Oil and Gas Joint Venture
|
Note
12.
|
Subsequent
Events
|
Item
13.
|
Other
Expenses of Issuance and
Distribution.
|
SEC
Registration Fee
|
$ 361*
|
Accounting
Fees and Expenses
|
10,000
|
Legal
Fees and Expenses
|
35,000
|
Printing
Expenses
|
1,000
|
Transfer
Agent Fees
|
1,000
|
Miscellaneous
Fees and Expenses
|
2,639
|
Total
|
$ 50,000
|
Item
14.
|
Indemnification
of Officers and Directors.
|
Item
15.
|
Recent
Sales of Unregistered Securities.
|
Item 16.
|
Exhibits.
|
Exhibit
|
No.
|
Description
of Exhibit
|
3.1
|
Articles
of Incorporation. *
|
3.2
|
By
Laws. *
|
4.1
|
Securities
Purchase Agreement dated April 17, 2008 by and among International Energy,
Inc. and Purchasers named therein and who are signatories
thereto.*
|
4.2
|
Form
of Registration Rights Agreement April 17, 2008 by and among International
Energy, Inc. and entities named therein and who are signatories thereto.
*
|
4.3
|
Form
of Series B Warrant. *
|
4.4
|
Placement
Agent Agreement with Palladium Capital Advisors, LLC.
*
|
5.0
|
Opinion
of Sierchio & Company LLP regarding the legality of the
securities being registered.
|
10.1
|
Research
Agreement with The Regents of the University of California dated September
17, 2007. *
|
10.2
|
Promissory
Note issued to Harmel Rayat dated October 16, 2007.
*
|
10.3
|
Employment
Agreement dated July 29, 2008 with Gregory
O’Reilly.*
|
10.4
|
Agreement
dated October 15, 2008 terminating the July 28, 2008 employment agreement
with Gregory O’Reilly.*
|
10.5
|
Employment
Agreement dated October 15, 2008 with Charles
Bell.*
|
23.1
|
Consent
of Sierchio & Company LLP (included in Exhibit 5.0
hereto).*
|
23.2
|
Consent
of Peterson Sullivan, LLP dated April 17,
2009.
|
99.1
|
Power
of Attorney.*
|
Item
17.
|
Undertakings.
|
International
Energy, Inc.
|
||
By:
|
/s/
Charles Bell
|
|
Name:
|
Charles
Bell
|
|
Title:
|
Chief
Executive Officer, President, and Director
|
|
|
||
Name:
|
Joanne
Stephenson
|
|
Title:
|
Director
|
|
By:
|
/s/
Charles Bell
|
|
Charles
Bell, Attorney in Fact
|
||
Name:
|
Derek
J. Cooper
|
|
Title:
|
Director
|
|
By:
|
/s/
Charles Bell
|
|
Charles
Bell, Attorney in Fact
|
||
/
|
||
Name:
|
Jatinder
S. Bhogal
|
|
Title:
|
Director
|
|
By:
|
/s/
Charles Bell
|
|
Charles
Bell, Attorney in Fact
|
Exhibit
No.
|
Description
of Exhibit
|
|
3.1
|
Articles
of Incorporation.*
|
|
3.2
|
By
Laws.*
|
|
4.1
|
Securities
Purchase Agreement dated April 17, 2008 by and among International Energy,
Inc. and Purchasers named therein and who are signatories
thereto.*
|
|
4.2
|
Form
of Registration Rights Agreement April 17, 2008 by and among International
Energy, Inc. and entities named therein and who are signatories thereto.
*
|
|
4.3
|
Form
of Series B Warrant. *
|
|
4.4
|
Placement
Agent Agreement with Palladium Capital Advisors, LLC. *
|
|
5.0
|
Opinion
of Sierchio & Company, LLP regarding the legality of the securities
being registered.*
|
|
10.1
|
Research
Agreement with The Regents of the University of California dated September
17, 2007. *
|
|
10.2
|
Promissory
Note issued to Harmel Rayat dated October 16, 2007. *
|
|
10.3
|
Agreement
dated October 15, 2008 terminating the July 28, 2008 employment agreement
with Gregory O’Reilly.*
|
|
10.4
|
Agreement
dated October 15, 2008 terminating the July 29, 2008 employment agreement
with Gregory O’Reilly.*
|
|
10.5
|
Employment
Agreement dated October 15, 2008 with Charles Bell.*
|
|
23.1
|
Consent
of Sierchio & Company, LLP (included in Exhibit 5.0
hereto).*
|
|
Consent
of Peterson Sullivan, LLP dated April 17,
2009.
|
||
99.1
|
Power
of Attorney *
|
|
*
Previously
Filed
|