x
|
QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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o
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TRANSITION
REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE
ACT
|
|
|
|
PUDA
COAL, INC.
|
||
(Exact
name of registrant as specified in its charter)
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||
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|
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Florida
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65-1129912
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(State
or other jurisdiction of incorporation or organization)
|
|
(IRS
Employer Identification No.)
|
426
Xuefu Street, Taiyuan, Shanxi Province, The People’s Republic of
China
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030006
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|
(Address
of principal executive offices)
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(Zip
Code)
|
011
86 351 228 1302
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||
(Registrant’s
telephone number, including area code)
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Large
accelerated filer o
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Accelerated
filer o
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|
Non-accelerated
filer x (Do not check if
a smaller reporting company)
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Smaller reporting company o |
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Page
|
|||
PART
I. FINANCIAL INFORMATION
|
||||
|
||||
Item
1. Financial Statements
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||||
|
||||
Consolidated
Balance Sheets as of March 31, 2008 (unaudited) and December 31,
2007
|
2-3
|
|||
Unaudited
Consolidated Statements of Operations for the three months ended
March 31,
2008 and 2007
|
4-5
|
|||
|
||||
Unaudited
Consolidated Statements of Cash Flows for the three months
ended March 31, 2008 and 2007
|
6
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|||
|
||||
Notes
to Unaudited Consolidated Financial Statements
|
7-30
|
|||
|
||||
Item
2. Management’s Discussion and Analysis of Financial Condition and Results
of Operations
|
31-36
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|||
|
||||
Item
3. Quantitative and Qualitative Disclosures about Market Risk
|
36-37
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|||
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||||
Item
4T. Controls and Procedures
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37-38
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|||
|
||||
PART
II. OTHER INFORMATION
|
||||
|
||||
Item
1. Legal Proceedings
|
39
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|||
|
||||
Item
1A. Risk Factors
|
39-40
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|||
|
||||
Item
2. Unregistered Sales of Equity Securities and Use of Proceeds
|
40
|
|||
|
||||
Item
3. Defaults upon Senior Securities
|
40
|
|||
|
||||
Item
4. Submission of Matters to a Vote of Security Holders
|
40
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|||
|
||||
Item
5. Other Information
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40
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|||
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||||
Item
6. Exhibits
|
41
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|||
|
||||
Signatures
|
42
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|||
|
||||
Certifications
|
Consolidated
Balance Sheets as of March 31, 2008 (unaudited) and December 31,
2007
|
2-3
|
Unaudited
Consolidated Statements of Operations for the three months ended
March 31,
2008 and 2007
|
4-5
|
Unaudited
Consolidated Statements of Cash Flows for the three months ended
March 31,
2008 and 2007
|
6
|
Notes
to Unaudited Consolidated Financial Statements
|
7-30
|
Note(s)
|
|
March
31, 2008
|
|
December
31, 2007
|
|
|||||
|
|
|
|
(Unaudited)
|
|
|||||
ASSETS
|
||||||||||
CURRENT
ASSETS
|
||||||||||
Cash
and cash equivalents
|
19
|
$
|
32,286
|
$
|
16,381
|
|||||
Restricted
cash
|
3,
19
|
233
|
233
|
|||||||
Accounts
receivable, net
|
4
|
8,463
|
8,137
|
|||||||
Other
receivables
|
||||||||||
-
Related parties
|
5
|
4
|
4
|
|||||||
- Third
parties
|
-
|
6
|
||||||||
Advances
to suppliers
|
||||||||||
-
Related parties
|
5
|
742
|
685
|
|||||||
-
Third parties
|
1,644
|
1,363
|
||||||||
Inventories
|
6
|
28,639
|
35,953
|
|||||||
Total
current assets
|
72,011
|
62,762
|
||||||||
PROPERTY,
PLANT AND EQUIPMENT, NET
|
7
|
14,617
|
15,018
|
|||||||
INTANGIBLE
ASSETS, NET
|
8
|
3,463
|
3,484
|
|||||||
TOTAL
ASSETS
|
$
|
90,091
|
$
|
81,264
|
||||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||||||||
CURRENT
LIABILITIES
|
||||||||||
Current
portion of long-term debt
|
||||||||||
-
Related party
|
5,
9
|
$
|
1,300
|
$
|
1,300
|
|||||
Accounts
payable
|
||||||||||
-
Related parties
|
5
|
223
|
182
|
|||||||
-
Third parties
|
3,406
|
2,140
|
||||||||
Other
payables
|
||||||||||
-
Related parties
|
1,
5
|
1,891
|
1,851
|
|||||||
-
Third parties
|
3,438
|
2,916
|
||||||||
Accrued
expenses
|
1,448
|
1,350
|
||||||||
Income
taxes payable
|
1,638
|
2,223
|
||||||||
VAT
payable
|
2,484
|
1,379
|
||||||||
Distribution
payable
|
1,142
|
1,096
|
||||||||
Convertible
notes
|
10
|
1,975
|
1,841
|
|||||||
Derivative
conversion feature
|
10,
20
|
1,100
|
1,100
|
|||||||
Penalty
payable
|
10
|
2,104
|
1,725
|
|||||||
Total
current liabilities
|
22,149
|
19,103
|
||||||||
LONG-TERM
LIABILITIES
|
||||||||||
Long-term
debt
|
||||||||||
-
Related party
|
5,
9
|
8,775
|
9,100
|
|||||||
Derivative
warrants
|
10,
20
|
4,116
|
4,480
|
|||||||
Total
long-term liabilities
|
12,891
|
13,580
|
Note(s)
|
|
March
31,2008
|
|
December
31, 2007
|
|
|||||
|
|
|
|
(Unaudited)
|
|
|||||
COMMITMENTS
AND CONTINGENCIES
|
11
|
|||||||||
STOCKHOLDERS’
EQUITY
|
||||||||||
Preferred
stock, authorized 5,000,000 shares, par
value
$0.01, issued and outstanding None
|
-
|
-
|
||||||||
Common
stock, authorized 150,000,000 shares,
par
value $0.001, issued and outstanding
105,252,176
(2007: 105,252,176)
|
105
|
105
|
||||||||
Paid-in
capital
|
28,304
|
28,304
|
||||||||
Statutory
surplus reserve fund
|
1,366
|
1,366
|
||||||||
Retained
earnings
|
19,102
|
14,807
|
||||||||
Accumulated
other comprehensive income
|
6,174
|
3,999
|
||||||||
Total
stockholders’ equity
|
55,051
|
48,581
|
||||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’
EQUITY
|
$
|
90,091
|
$
|
81,264
|
Three
months ended March 31,
|
||||||||||
Note(s)
|
2008
|
2007
|
||||||||
NET
REVENUE
|
$
|
50,598
|
$
|
37,415
|
||||||
COST
OF REVENUE
|
(43,145
|
)
|
(29,910
|
)
|
||||||
GROSS
PROFIT
|
7,453
|
7,505
|
||||||||
OPERATING
EXPENSES
|
||||||||||
Selling
expenses
|
754
|
842
|
||||||||
General
and administrative expenses
|
477
|
352
|
||||||||
TOTAL
OPERATING EXPENSES
|
1,231
|
1,194
|
||||||||
INCOME
FROM OPERATIONS
|
6,222
|
6,311
|
||||||||
INTEREST
INCOME
|
27
|
25
|
||||||||
INTEREST
EXPENSE
|
12
|
(201
|
)
|
(489
|
)
|
|||||
DEBT
FINANCING COSTS
|
13
|
(513
|
)
|
(767
|
)
|
|||||
DERIVATIVE
UNREALIZED FAIR VALUE GAIN
|
14
|
364
|
868
|
|||||||
INCOME
BEFORE INCOME TAXES
|
5,899
|
5,948
|
||||||||
INCOME
TAXES
|
15
|
(1,604
|
)
|
(2,101
|
)
|
|||||
NET
INCOME
|
4,295
|
3,847
|
||||||||
OTHER
COMPREHENSIVE INCOME
|
||||||||||
Foreign
currency translation adjustment
|
2,175
|
400
|
||||||||
COMPREHENSIVE
INCOME
|
$
|
6,470
|
$
|
4,247
|
||||||
NET
INCOME
|
4,295
|
3,847
|
||||||||
LESS:
DIVIDENDS
|
||||||||||
Option
holder preference dividend
|
-
|
(2,717
|
)
|
|||||||
Common
dividend
|
-
|
-
|
||||||||
UNDISTRIBUTED
EARNINGS
|
$
|
4,295
|
$
|
1,130
|
Three
months ended March 31,
|
||||||||||
Note(s)
|
2008
|
2007
|
||||||||
BASIC
EARNINGS PER SHARE
|
||||||||||
-
Option holder preference
|
$
|
0.00
|
$
|
0.04
|
||||||
-
Other common holders
|
0.04
|
0.00
|
||||||||
$
|
0.04
|
$
|
0.04
|
|||||||
DILUTED
EARNINGS PER SHARE
|
||||||||||
-
Option holder preference
|
$
|
0.00
|
$
|
0.04
|
||||||
-
Other common holders
|
0.04
|
0.00
|
||||||||
|
$
|
0.04
|
$
|
0.04
|
||||||
WEIGHTED
AVERAGE NUMBER OF SHARES
OUTSTANDING-BASIC
|
16
|
105,252,176
|
94,085,190
|
|||||||
-DILUTED
|
16
|
113,298,354
|
109,277,096
|
Three
months ended March 31,
|
||||||||||
Notes
|
2008
|
2007
|
||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||
Net
income
|
$
|
4,295
|
$
|
3,847
|
||||||
Adjustments
to reconcile net income to net cash provided by
operating
activities
|
||||||||||
Amortization
of land-use rights
|
21
|
20
|
||||||||
Depreciation
|
401
|
245
|
||||||||
Allowance
for doubtful debts
|
-
|
1
|
||||||||
Amortization
of debt issue costs
|
-
|
6
|
||||||||
Amortization
of discount on convertible notes and warrants
|
134
|
386
|
||||||||
Derivative
unrealized fair value gain
|
(364
|
)
|
(868
|
)
|
||||||
Discount
on converted shares and exercised warrants
|
-
|
232
|
||||||||
Stock
compensation
|
12
|
-
|
||||||||
Changes
in operating assets and liabilities:
|
||||||||||
Decrease/(increase)
in accounts receivable
|
13
|
(409
|
)
|
|||||||
Decrease
in other receivables
|
6
|
2
|
||||||||
Increase/(decrease)
in advances to suppliers
|
(247
|
)
|
45
|
|||||||
Decrease/(increase)
in inventories
|
8,633
|
(1,692
|
)
|
|||||||
Increase
in accounts payable
|
1,186
|
366
|
||||||||
Increase/(decrease)
in accrued expenses
|
36
|
(87
|
)
|
|||||||
Increase
in other payables
|
427
|
574
|
||||||||
Decrease
in income tax payable
|
(664
|
)
|
(403
|
)
|
||||||
Increase/(decrease)
in VAT payable
|
1,026
|
(212
|
)
|
|||||||
Increase
in penalty payable
|
379
|
375
|
||||||||
Net
cash provided by operating activities
|
15,294
|
2,428
|
||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||
Exercise
of warrants
|
-
|
120
|
||||||||
Repayment
of long-term debt
|
(325
|
)
|
(325
|
)
|
||||||
Net
cash used in financing activities
|
(325
|
)
|
(205
|
)
|
||||||
Effect
of exchange rate changes on cash
|
936
|
255
|
||||||||
Net
increase in cash and cash equivalents
|
15,905
|
2,478
|
||||||||
Cash
and cash equivalents at beginning of period
|
16,381
|
24,943
|
||||||||
Cash
and cash equivalents at end of period
|
$
|
32,286
|
$
|
27,421
|
||||||
Supplementary
cash flow information
|
17
|
·
|
Puda
Coal, Inc.: Mr. Ming Zhao (approximately 50%); Mr. Yao Zhao (approximately
13%) held directly.
|
·
|
Puda
Investment Holding Limited: Mr. Ming Zhao (approximately 50%); Mr.
Yao
Zhao (approximately 13%) held indirectly through
Puda.
|
·
|
Shanxi
Putai Resources Limited: Mr. Ming Zhao (approximately 50%); Mr. Yao
Zhao
(approximately 13%) held indirectly through Puda and
BVI.
|
·
|
Shanxi
Puda Coal Group Co., Ltd.: Mr. Ming Zhao (8%); Mr. Yao Zhao (2%)
held
directly, Mr. Ming Zhao (approximately 45%); Mr. Yao Zhao (approximately
11.7%) held indirectly through Puda, BVI and
Putai.
|
Buildings
and facility
|
20
years
|
||
Machinery
and equipment
|
10
years
|
||
10
years
|
|||
Office
equipment and others
|
10
years
|
March
31,
2008
|
December
31,
2007
|
||||||
$’000
|
$’000
|
||||||
Balance,
beginning of period
|
$
|
48
|
$
|
44
|
|||
Additions
|
2
|
4
|
|||||
Balance,
end of period
|
$
|
50
|
$
|
48
|
March
31,
2008
|
December
31, 2007
|
||||||
$’000
|
$’000
|
||||||
Other
receivable from Ming Zhao, CEO, director and major
shareholder
of Puda
|
$
|
4
|
$
|
4
|
Advance
to Shanxi Liulin Jucai Coal Industry Co., Limited
(“Jucai
Coal”), a related company with a common owner
|
$
|
742
|
$
|
685
|
|||
Accounts
payable to Jucai Coal
|
$
|
223
|
$
|
182
|
Other
payable to Shanxi Puda Resources Group Limited
(“Resources
Group”), a related company with common owners
|
$
|
774
|
$
|
743
|
|||
Other
payable to Yao Zhao, manager and shareholder of Puda
|
224
|
215
|
|||||
Other
payable to Ming Zhao and Yao Zhao
|
893
|
893
|
|||||
$
|
1,891
|
$
|
1,851
|
Loan
payable to Resources Group
|
|||||||
-current
portion
|
$
|
1,300
|
$
|
1,300
|
|||
-long-term
portion
|
8,775
|
9,100
|
|||||
$
|
10,075
|
$
|
10,400
|
March
31,
2008
|
December
31,
2007
|
||||||
$’000
|
$’000
|
||||||
Raw
materials
|
$
|
18,661
|
$
|
24,252
|
|||
Finished
goods
|
9,978
|
11,701
|
|||||
Total
|
$
|
28,639
|
$
|
35,953
|
March
31, 2008
|
December
31, 2007
|
||||||
$’000
|
$’000
|
||||||
Cost:
|
|||||||
Buildings
and facilities
|
$
|
3,344
|
$
|
3,344
|
|||
Machinery
equipment
|
13,611
|
13,611
|
|||||
Motor
vehicles
|
104
|
104
|
|||||
Office
equipment and others
|
30
|
30
|
|||||
17,089
|
17,089
|
||||||
Accumulated
depreciation:
|
|||||||
Buildings
and facilities
|
297
|
255
|
|||||
Machinery
equipment
|
2,169
|
1,814
|
|||||
Motor
vehicles
|
5
|
2
|
|||||
Office
equipment and others
|
1
|
-
|
|||||
2,472
|
2,071
|
||||||
Carrying
value:
|
|||||||
Buildings
and facilities
|
3,047
|
3,089
|
|||||
Machinery
equipment
|
11,442
|
11,797
|
|||||
Motor
vehicles
|
99
|
102
|
|||||
Office
equipment and others
|
29
|
30
|
|||||
$
|
14,617
|
$
|
15,018
|
Land-use
rights
|
|||||||
March
31,
2008
|
December
31,
2007
|
||||||
$’000
|
$’000
|
||||||
Cost
|
$
|
3,634
|
$
|
3,634
|
|||
Accumulated
amortization
|
171
|
150
|
|||||
Carrying
value
|
$
|
3,463
|
$
|
3,484
|
March
31,
2008
|
December
31,
2007
|
||||||
$’000
|
$’000
|
||||||
Conveyance
loan
|
$
|
10,075
|
$
|
10,400
|
|||
Less:
current portion
|
(1,300
|
)
|
(1,300
|
)
|
|||
Long-term
portion
|
$
|
8,775
|
$
|
9,100
|
March
31, 2008
|
||||
Year
|
$’000
|
|||
2008
|
$
|
1,300
|
||
2009
|
1,300
|
|||
2010
|
1,300
|
|||
2011
|
1,300
|
|||
2012
|
1,300
|
|||
Thereafter
|
3,575
|
|||
$
|
10,075
|
March
31, 2008
|
December
31, 2007
|
||||||
|
$000
|
$000
|
|||||
Convertible
notes:
|
|||||||
Gross
amount issued
|
$
|
12,500
|
$
|
12,500
|
|||
Less:
amount converted in 2005
|
(850
|
)
|
(850
|
)
|
|||
Less:
amount converted in 2006
|
(6,750
|
)
|
(6,750
|
)
|
|||
Less:
amount converted in 2007
|
(2,660
|
)
|
(2,660
|
)
|
|||
Less:
unamortized discount on conversion feature
|
(265
|
)
|
(366
|
)
|
|||
Less:
unamortized discount on note warrants
|
-
|
(33
|
)
|
||||
|
$
|
1,975
|
$
|
1,841
|
|||
|
|||||||
Derivative
conversion feature:
|
|||||||
Amount
allocated to conversion feature
|
$
|
6,137
|
$
|
6,137
|
|||
Less:
amount transferred to equity upon conversion in 2005
|
(417
|
)
|
(417
|
)
|
|||
Less:
amount transferred to equity upon conversion in 2006
|
(3,314
|
)
|
(3,314
|
)
|
|||
Less:
amount transferred to equity upon conversion in 2007
|
(1,306
|
)
|
(1,306
|
)
|
|||
|
$
|
1,100
|
$
|
1,100
|
|||
|
|||||||
Derivative
warrants:
|
|||||||
Amount
allocated to investor warrants
|
$
|
6,363
|
$
|
6,363
|
|||
Placement
agent warrants
|
5,625
|
5,625
|
|||||
Less:
amount transferred to equity upon exercise of note warrants
in
2006
|
(789
|
)
|
(789
|
)
|
|||
Less:
amount transferred to equity upon exercise of placement
agent
warrants in 2006
|
(882
|
)
|
(882
|
)
|
|||
Less:
amount transferred to equity upon exercise of note warrants
in
2007
|
(1,527
|
)
|
(1,527
|
)
|
|||
Less:
amount transferred to equity upon exercise of placement
agent
warrants in 2007
|
(2,716
|
)
|
(2,716
|
)
|
|||
Less:
change in fair value in 2005
|
(700
|
)
|
(700
|
)
|
|||
Less:
change in fair value in 2006
|
(1,237
|
)
|
(1,237
|
)
|
|||
Add:
change in fair value in 2007
|
343
|
343
|
|||||
Less:
change in fair value in 2008
|
(364
|
)
|
-
|
||||
|
$
|
4,116
|
$
|
4,480
|
Three
months ended March 31,
|
|||||||
2008
|
2007
|
||||||
$’000
|
$’000
|
||||||
Current
period provision
|
$
|
1,604
|
$
|
2,101
|
Three
months ended December 31,
|
|||||||
2008
|
2007
|
||||||
$’000
|
$’000
|
||||||
Income
before income taxes
|
$
|
5,899
|
$
|
5,948
|
|||
Income
tax on pretax income at statutory rate
|
2,005
|
2,022
|
|||||
Tax
effect of expenses that are not deductible
in
determining taxable profits
|
250
|
376
|
|||||
Tax
effect of income that is not taxable in
determining
taxable profits
|
(124
|
)
|
(295
|
)
|
|||
Effect
of different tax rates of subsidiary operating
in
other jurisdictions
|
(562
|
)
|
(63
|
)
|
|||
Change
in valuation allowance
|
35
|
61
|
|||||
Income
tax at effective rate
|
$
|
1,604
|
$
|
2,101
|
March
31, 2008
|
December
31, 2007
|
||||||
$’000
|
$’000
|
||||||
Net
operating loss carryforwards
|
$
|
1,628
|
$
|
1,580
|
|||
Less:
Valuation allowance
|
(1,628
|
)
|
(1,580
|
)
|
|||
Net
|
$
|
-
|
$
|
-
|
Three
months ended March 31,
|
|||||||
2008
|
2007
|
||||||
Basic
weighted average number of shares
|
105,252,176
|
94,085,190
|
|||||
Options
outstanding, after adjusting for 10 to 1
Reverse
split
|
-
|
756
|
|||||
Assumed
conversion of notes
|
253,585
|
4,280,387
|
|||||
Assumed
exercise of warrants
|
-
|
10,307,638
|
|||||
Issuance
of penalty shares
|
7,792,593
|
603,125
|
|||||
Diluted
weighted average number of shares
|
113,298,354
|
109,277,096
|
Three
months ended March 31,
|
|||||||
2008
|
2007
|
||||||
$’000
|
$’000
|
||||||
Cash
paid during the period for:
|
|||||||
Interest
|
$
|
201
|
$
|
257
|
|||
Income
taxes
|
$
|
2,269
|
$
|
2,504
|
|||
Major
non-cash transactions:
|
|||||||
Notes
converted into common shares
|
$
|
-
|
$
|
825
|
Number
of
options
granted
|
After
adjusting for the 10 to 1 reverse stock split
|
Exercise
price
|
Expiry
date
|
Estimated
Fair
value
|
||||
$’000
|
||||||||
150,000
|
15,000
(i)
|
$
1
|
October
20, 2008
|
0
|
||||
(i)
|
granted
in 2003 to former directors/officers in consideration of services
rendered.
|
Number
of options
|
Weighted
average exercise price
|
||||||
Options
outstanding at December 31, 2007 (after
adjusting
for the 10 to 1 reverse stock split)
|
15,000
|
$
|
1
|
||||
Granted
|
-
|
-
|
|||||
Exercised
|
-
|
-
|
|||||
Forfeited
|
-
|
-
|
|||||
Expired
|
-
|
-
|
|||||
Options
outstanding at March 31, 2008
|
15,000
|
$
|
1
|
Three
months ended March 31,
|
|||||||||||||
Customers |
2008
|
2007
|
|||||||||||
$’000
|
%
|
$’000
|
%
|
||||||||||
Customer
A
|
$
|
-
|
-
|
$
|
6,910
|
18
|
Customers
|
March
31, 2008
|
December
31, 2007
|
|||||||||||
$’000
|
%
|
$’000
|
%
|
||||||||||
Customer
A
|
$
|
972
|
11
|
$
|
961
|
12
|
|||||||
Customer
B
|
$
|
904
|
11
|
$
|
878
|
11
|
|||||||
Customer
C
|
$
|
935
|
11
|
$
|
865
|
11
|
|||||||
Customer
D
|
$
|
-
|
-
|
$
|
849
|
10
|
|||||||
Customer
E
|
$
|
997
|
12
|
$
|
-
|
-
|
Fair
Value Measurement as of March 31, 2008
|
|||||||||||||
Description
|
Total
|
Level
1
|
Level
2
|
Level
3
|
|||||||||
$’000
|
$’000
|
$’000
|
$’000
|
||||||||||
Derivative
conversion feature
|
$
|
1,100
|
$
|
-
|
$
|
1,100
|
$
|
-
|
|||||
Derivative
warrants
|
4,116
|
-
|
4,116
|
-
|
|||||||||
Total
|
$
|
5,216
|
$
|
-
|
$
|
5,216
|
$
|
-
|
|
March
31, 2008
|
|||
ASSETS
|
|
|||
CURRENT
ASSETS
|
|
|||
Restricted
cash
|
$
|
233
|
||
|
||||
Total
current assets
|
233
|
|||
|
||||
INVESTMENTS
IN SUBSIDIARIES
|
54,441
|
|||
|
||||
TOTAL
ASSETS
|
$
|
54,674
|
||
|
||||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||
CURRENT
LIABILITIES
|
||||
Bank
overdrafts
|
$
|
71
|
||
Other
payables
|
1,886
|
|||
Accrued
expenses
|
141
|
|||
Convertible
notes
|
1,975
|
|||
Derivative
conversion feature
|
1,100
|
|||
Penalty
payable
|
2,104
|
|||
|
||||
Total
current liabilities
|
7,277
|
|||
|
||||
LONG-TERM
LIABILITIES
|
||||
Derivative
warrants
|
4,116
|
|||
|
||||
STOCKHOLDERS’
EQUITY
|
||||
Preferred
stock, authorized 5,000,000 shares, par
value
$0.01, issued and outstanding None
|
-
|
|||
Common
stock, authorized 150,000,000 shares, par
value
$0.001, issued and outstanding 105,252,176 shares
|
105
|
|||
Paid-in
capital
|
68,652
|
|||
Accumulated
deficit
|
(25,476
|
)
|
||
|
||||
Total
stockholders’ equity
|
43,281
|
|||
|
||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
54,674
|
Three
months ended
March
31,
2008
|
||||
Revenue:
|
$
|
-
|
||
Share
of earnings from investment in subsidiaries
|
6,819
|
|||
Total
revenue
|
6,819
|
|||
General
and administrative expenses
|
(155
|
)
|
||
Income
from operations
|
6,664
|
|||
Interest
expense
|
(45
|
)
|
||
Debt
financing costs
|
(513
|
)
|
||
Derivative
unrealized fair value gain
|
364
|
|||
Net
income
|
$
|
6,470
|
Three
months ended
March
31, 2008
|
||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||
Net
income
|
$
|
6,470
|
||
Adjustments
to reconcile net loss to net cash used in
operating
activities
|
||||
Share
of earnings from investment in subsidiaries
|
(6,819
|
)
|
||
Amortization
of discount on convertible notes and warrants
|
134
|
|||
Derivative
unrealized fair value gain
|
(364
|
)
|
||
Stock
compensation expense
|
12
|
|||
Changes
in operating assets and liabilities:
|
||||
Advance
from subsidiary
|
130
|
|||
Decrease
in accrued expenses
|
(67
|
)
|
||
Increase
in penalty payable
|
379
|
|||
Net
cash used in operating activities
|
(125
|
)
|
||
Net
decrease in cash and cash equivalents
|
(125
|
)
|
||
Cash
and cash equivalents at beginning of period
|
54
|
|||
Cash
and cash equivalents-bank overdrafts at end of period
|
$
|
71
|
||
|
|
|
|
(a)
|
Exhibits
|
|
|
|
|
31.1*
|
Certification
of Mr. Ming Zhao pursuant to Rule 13a-14(a) or 15d-14(a) under the
Securities Exchange Act of 1934, as amended.
|
|
|
|
|
31.2*
|
Certification
of Ms. Xia Jin pursuant to Rule 13a-14(a) or 15d-14(a) under the
Securities Exchange Act of 1934, as amended.
|
|
|
|
|
32.1*
|
Certification
of Chief Executive Officer and Chief Financial Officer of Puda Coal,
pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section
906 of
the Sarbanes-Oxley Act of 2002.
|
PUDA
COAL, INC.
|
||
|
|
|
By: |
/s/
Ming Zhao
|
|
Ming
Zhao
|
||
Chief
Executive Officer
|
|
|
|
Date:
May 15, 2008
|
/s/
Ming Zhao
|
|
|
Ming
Zhao
Chief
Executive Officer
(principal
executive officer of Puda Coal,
Inc.)
|
|
|
|
Date:
May 15, 2008
|
/s/
Xia Jin
|
|
|
Xia
Jin
Chief
Financial Officer
(principal
financial officer of Puda Coal, Inc.)
|
|
|
|
Date:
May 15, 2008
|
/s/
Ming Zhao
|
|
|
Zhao
Ming
Chief
Executive Officer
|
|
|
|
|
Date:
May 15, 2008
|
/s/
Xia Jin
|
|
|
Xia
Jin
Chief
Financial Officer
|