Delaware
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98-0552470
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(State
of incorporation)
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(I.R.S.
Employer Identification
No.)
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Large
accelerated filer
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¨
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Accelerated
filer
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¨
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Non-accelerated
filer
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¨
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Smaller
reporting company
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x
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Page
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PART
I
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Item
1. Financial Statements
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F-1
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Item
2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
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3
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Item
3 Quantitative and Qualitative Disclosures About Market
Risk
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5
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Item
4 Controls and Procedures
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5
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PART
II
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Item
1. Legal Proceedings
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6
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Item
IA. Risk Factors
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6
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Item
2. Unregistered Sales of Equity Securities and Use of
Proceeds
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6
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Item
3. Defaults Upon Senior Securities
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6
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Item
4. Submission of Matters to a Vote of Security Holders
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6
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Item
5. Other Information
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7
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Item
6. Exhibits
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7
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Financial
Statements-
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Balance
Sheets as of September 30, 2009 and December 31, 2008
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F-2
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Statements of Operations for the
Three Months and Nine Months Ended
September
30, 2009 and 2008, and Cumulative from Inception
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F-3
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Statement of Stockholders’ Equity
for the Period from Inception
Through
September 30, 2009
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F-4
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Statements
of Cash Flows for the Nine Months Ended September 30, 2009 and
2008,
and
Cumulative from Inception
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F-5
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Notes
to Financial Statements
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F-6
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As of
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As of
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|||||||
September 30,
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December 31,
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|||||||
2009
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2008
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|||||||
(Unaudited)
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(Audited)
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|||||||
ASSETS
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||||||||
Current
Assets:
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||||||||
Cash
and cash equivalents
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$ | - | $ | 643 | ||||
Total
current assets
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- | 643 | ||||||
Other
Assets:
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||||||||
Acquired
technology, net of $305,555 and $55,556 amortization,
respectively
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4,694,445 | 4,944,444 | ||||||
Patent
pending
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60,000 | 60,000 | ||||||
Total
other assets
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4,754,445 | 5,004,444 | ||||||
Total
Assets
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$ | 4,754,445 | $ | 5,005,087 | ||||
LIABILITIES AND STOCKHOLDERS'
EQUITY
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||||||||
Current
Liabilities:
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||||||||
Accounts
payable and accrued liabilities
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$ | 10,225 | $ | 10,061 | ||||
Acquired
technology obligation
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900,000 | 1,000,000 | ||||||
Loans
from related parties - Directors and stockholders
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48,783 | 4,959 | ||||||
Total
current liabilities
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959,008 | 1,015,020 | ||||||
Total
liabilities
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959,008 | 1,015,020 | ||||||
Commitments
and Contingencies
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||||||||
Stockholders'
Equity
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||||||||
Common
stock, par value $.0001 per share, 200,000,000 shares authorized;
78,640,000 and 73,890,000 issued and outstanding,
respectively
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7,864 | 7,389 | ||||||
Additional
paid-in capital
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4,496,422 | 4,151,111 | ||||||
Discount
on common stock
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(2,800 | ) | (2,800 | ) | ||||
(Deficit)
accumulated during the development stage
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(706,049 | ) | (165,633 | ) | ||||
Total
stockholders' equity
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3,795,437 | 3,990,067 | ||||||
Total
Liabilities and Stockholders' Equity
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$ | 4,754,445 | $ | 5,005,087 |
Three Months Ended
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Nine Months Ended
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Cumulative
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||||||||||||||||||
September 30,
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September 30,
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From
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||||||||||||||||||
2009
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2008
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2009
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2008
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Inception
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||||||||||||||||
(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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(Unaudited)
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||||||||||||||||
Revenues
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$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Expenses:
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||||||||||||||||||||
General
and administrative-
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||||||||||||||||||||
Professional
fees
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5,231 | 7,713 | 20,754 | 36,533 | 71,038 | |||||||||||||||
Investor
relations
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1,206 | - | 1,206 | - | 1,206 | |||||||||||||||
Legal
- incorporation
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- | - | - | - | 2,200 | |||||||||||||||
Consulting
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159,804 | 13,500 | 260,804 | 27,000 | 287,804 | |||||||||||||||
Travel
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1,551 | 8,794 | 1,551 | 12,159 | 17,890 | |||||||||||||||
Amortization
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83,333 | - | 249,999 | - | 305,555 | |||||||||||||||
Rent
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- | - | - | - | 4,520 | |||||||||||||||
Other
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1,105 | 1,306 | 6,102 | 5,433 | 15,686 | |||||||||||||||
Total
general and administrative expenses
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252,230 | 31,313 | 540,416 | 81,125 | 705,899 | |||||||||||||||
(Loss)
from Operations
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(252,230 | ) | (31,313 | ) | (540,416 | ) | (81,125 | ) | (705,899 | ) | ||||||||||
Other
Income (Expense)
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- | (2,920 | ) | - | (151 | ) | (151 | ) | ||||||||||||
Provision
for income taxes
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- | - | - | - | - | |||||||||||||||
Net
(Loss)
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$ | (252,230 | ) | $ | (34,233 | ) | $ | (540,416 | ) | $ | (81,276 | ) | $ | (706,050 | ) | |||||
(Loss)
Per Common Share:
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||||||||||||||||||||
(Loss)
per common share - Basic and Diluted
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$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.00 | ) | ||||||||
Weighted
Average Number of Common Shares Outstanding - Basic and
Diluted
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77,140,000 | 64,673,913 | 75,582,308 | 47,317,518 |
(Deficit)
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||||||||||||||||||||||||
Accumulated
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||||||||||||||||||||||||
Additional
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Discount on
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During the
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||||||||||||||||||||||
Common stock
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Paid-in
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Common
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Development
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|||||||||||||||||||||
Shares
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Amount
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Capital
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Stock
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Stage
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Totals
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|||||||||||||||||||
Balance
- September 17, 2007
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- | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Common
stock issued for cash
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35,000,000 | 3,500 | - | (2,800 | ) | - | 700 | |||||||||||||||||
Net
(loss) for the period
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- | - | - | - | (5,118 | ) | (5,118 | ) | ||||||||||||||||
Balance
- December 31, 2007
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35,000,000 | 3,500 | - | (2,800 | ) | (5,118 | ) | (4,418 | ) | |||||||||||||||
Issuance
of common stock
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15,000,000 | 1,500 | 64,700 | - | - | 66,200 | ||||||||||||||||||
Issuance
of common stock
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15,000,000 | 1,500 | 87,300 | - | - | 88,800 | ||||||||||||||||||
Common
stock issued for acquired technology
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8,890,000 | 889 | 3,999,111 | - | - | 4,000,000 | ||||||||||||||||||
Net
(loss) for the year
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- | - | - | - | (160,515 | ) | (160,515 | ) | ||||||||||||||||
Balance
- December 31, 2008
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73,890,000 | 7,389 | 4,151,111 | (2,800 | ) | (165,633 | ) | 3,990,067 | ||||||||||||||||
Issuance
of common stock
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3,125,000 | 313 | 203,473 | - | - | 203,786 | ||||||||||||||||||
Common
stock issued as compensation
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125,000 | 13 | 21,988 | - | - | 22,000 | ||||||||||||||||||
Issuance
of common stock
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1,500,000 | 150 | 119,850 | - | - | 120,000 | ||||||||||||||||||
Net
(loss) for the period
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- | - | - | - | (540,416 | ) | (540,416 | ) | ||||||||||||||||
Balance
- September 30, 2009
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78,640,000 | $ | 7,864 | $ | 4,496,422 | $ | (2,800 | ) | $ | (706,049 | ) | $ | 3,795,437 |
Nine Months Ended
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Cumulative
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|||||||||||
September 30,
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From
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|||||||||||
2009
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2008
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Inception
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||||||||||
(Unaudited)
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(Unaudited)
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(Unaudited)
|
||||||||||
Operating
Activities:
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||||||||||||
Net
(loss)
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$ | (540,416 | ) | $ | (81,276 | ) | $ | (706,050 | ) | |||
Common
stock issued as compensation
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22,000 | - | 22,000 | |||||||||
Adjustments
to reconcile net (loss) to net cash (used in) operating
activities:
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||||||||||||
Amortization
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249,999 | - | 305,555 | |||||||||
Changes
in net assets and liabilities-
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||||||||||||
Accounts
payable and accrued liabilities
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164 | 2,000 | 10,226 | |||||||||
Net
Cash Used in Operating Activities
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(268,253 | ) | (79,276 | ) | (368,269 | ) | ||||||
Investing
Activities:
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||||||||||||
Advances
to officers
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- | (8,700 | ) | - | ||||||||
Acquisition
and costs of intangible assets
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- | (30,000 | ) | (60,000 | ) | |||||||
Net
Cash Used in Investing Activities
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- | (38,700 | ) | (60,000 | ) | |||||||
Financing
Activities:
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||||||||||||
Issuance
of common stock
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323,786 | 155,000 | 479,486 | |||||||||
Payment
of obligation for acquired technology
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(100,000 | ) | - | (100,000 | ) | |||||||
Loans
from related parties - directors and stockholders
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43,824 | (39,300 | ) | 48,783 | ||||||||
Net
Cash Provided by Financing Activities
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267,610 | 115,700 | 428,269 | |||||||||
Net
(Decrease) Increase in Cash
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(643 | ) | (2,276 | ) | - | |||||||
Cash
- Beginning of Period
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643 | 5,882 | - | |||||||||
Cash
- End of Period
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$ | - | $ | 3,606 | $ | - | ||||||
Supplemental
disclosure of cash flow information:
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||||||||||||
Cash
paid during the period for:
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||||||||||||
Interest
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$ | - | $ | - | $ | - | ||||||
Income
taxes
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$ | - | $ | - | $ | - | ||||||
Supplemental
schedule of noncash investing and financing activities:
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Issuance
of common stock for acquired technology
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$ | - | $ | - | $ | 4,000,000 | ||||||
Obligation
payable for acquired technology
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$ | - | $ | - | $ | 1,000,000 |
2009
|
2008
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|||||||
Current
Tax Provision:
|
||||||||
Federal-
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||||||||
Taxable
income
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$ | - | $ | - | ||||
Total
current tax provision
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$ | - | $ | - | ||||
Deferred
Tax Provision:
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||||||||
Federal-
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||||||||
Loss
carryforwards
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$ | 124,296 | $ | 18,693 | ||||
Change
in valuation allowance
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(124,296 | ) | (18,693 | ) | ||||
Total
deferred tax provision
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$ | - | $ | - |
2009
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2008
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Loss
carryforwards
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$ | 162,391 | $ | 38,096 | ||||
Less
- Valuation allowance
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(162,391 | ) | (38,096 | ) | ||||
Total
net deferred tax assets
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$ | - | $ | - |
31.1
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Certification
of Principal Executive Officer pursuant to Section 302 of the
Sarbanes-Oxley Act (filed herewith)
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31.2
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Certification
Principal Financial and Accounting Officer pursuant to Section
302 of the Sarbanes-Oxley Act (filed herewith)
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32.1
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Certification
of Principal Executive Officer pursuant to Section 906 of the
Sarbanes-Oxley (filed herewith)
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32.2
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Certification
of Principal Financial and Accounting Officer pursuant
to Section 906 of the Sarbanes-Oxley (filed
herewith)
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Date November
11, 2009
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ADAMA
TECHNOLOGIES CORPORATION
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By:
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/s/
Aviram Malik
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Name:
Aviram Malik
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Title:
Chief Executive Officer, President and Director (Principal
Executive
Officer)
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Date:
November 11, 2009
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By:
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/s/ Asher Zwebner
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Name: Asher
Zwebner
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Title:
Chief Financial Officer (Principal Financial and
Accounting
Officer)
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