SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 10QSB
Quarterly Report under Section 13 or 15(d) of
the Securities Exchange Act of 1934
For Quarter Ended Commission File Number
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0-30145
September 30, 2006 33-41063-A
JOINTLAND DEVELOPMENT, INC.
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(Exact name of registrant as specified in its charter)
Florida 59-3723328
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State or Other Jurisdiction (I.R.S. Employer
of incorporation or organization) Identification Number)
Unit B, 15th Floor,
China Insurance Bldg
48 Cameron Road
Tsimshatsui, Kowloon, Hong Kong
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(Address of principal Executive Offices Zip Code)
Registrant's telephone number, including area code: 011 852 2824 0008
Indicate by check mark whether the registrant is a shell company (as defined in
Rule 12b-2 of the Exchange Act). Yes [X] No [ ]
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to the filing
requirements for at least the past 90 days.
Yes X No
----- -----
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
1,979,965 as of September 30, 2006
JOINTLAND DEVELOPMENT, INC.
(Formerly Global Assets & Services, Inc.)
(A DEVELOPMENT STAGE COMPANY)
FINANCIAL STATEMENTS
SEPTEMBER 30, 2006
(UNAUDITED)
JOINTLAND DEVELOPMENT, INC.
(Formerly Global Assets and Services, Inc.)
(A Development Stage Company)
Balance Sheets
(Unaudited) Audited
September 30, December 31,
2006 2005
--------------- ----------------
ASSETS:
Current Assets:
Cash $ 38 $ 144
--------------- ----------------
Total Current Assets 38 144
--------------- ----------------
TOTAL ASSETS $ 38 $ 144
=============== ================
LIABILITIES & STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities
Accounts Payable and Accrued Liabilities $ 63,565 $ 50,849
Due to Director - Chen Yurong 6,985 -
Notes Payable - Shareholder 231,915 230,198
--------------- ----------------
Total Current Liabilities 302,465 281,047
--------------- ----------------
Stockholders' Equity (Deficit)
Common Stock, $0.001par value; 100,000,000 shares authorized 1,981 1,981
1,979,965 shares issued and outstanding September 30,
2006 and December 31, 2005 respectively
Additional Paid-Inc Capital 3,480,670 3,480,670
Deficit accumulated during the development stage (3,785,078) (3,763,554)
--------------- ----------------
Total Stockholders' equity (Deficit) (302,427) (280,903)
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 38 $ 144
=============== ================
See Accountants' Review Report
JOINTLAND DEVELOPMENT, INC.
(Formerly Global Assets and Services, Inc.)
(A Devleopment Stage Company)
Statements of Operations
(Unaudited)
Three-Month Period Ended Nine-Month Period Ended
September 30, September 30,
-------------------------------------- -------------------------------------
Revenue 2006 2005 2006 2005
--------------- --------------- -------------- --------------
Revenue $ - $ - $ - $ -
(Less) Cost of Sales
Gross Profit
Doubtful Accounts - - - -
Consulting Fees - - - 17,590
Legal and Accounting 6,200 8,970 21,435 83,849
Advertising - - -
Directors and Officer Fees - - -
Telephone - - -
Transfer Fees - - -
Travel - - 2,527
Rent - - -
Other General Expenses 4 32 89 104
--------------- --------------- --------------- --------------
Total Expenses 6,204 9,002 21,524 104,070
--------------- --------------- --------------- --------------
Net Loss from Operations (6,204) (9,002) (21,524) (104,070)
--------------- --------------- --------------- --------------
Other Revenue/Expense
Interest Expense - - - -
Interest Income - - - -
--------------- --------------- --------------- --------------
Net Loss $ (6,204) $ (9,002) $ (21,524) $(104,070)
=============== =============== =============== ==============
Net Income/Loss per share of common
stock $ (0.00) $ (0.00) $ (0.01) $ (0.05)
=============== =============== =============== ==============
Weighted average number of common
shares outstanding 1,979,965 1,979,965 1,979,965 1,979,965
=============== =============== =============== ==============
See Accountants' Review Report
JOINTLAND DEVELOPMENT, INC.
(Formerly Global Assets and Services, Inc.)
(A Devleopment Stage Company)
Statements of Operations
(Unaudited)
(continued)
May 25, 1988
Inception to
September 30,
----------------
2006
----------------
Revenue
Revenue $ 846,545
(Less) Cost of Sales (336,524)
-----------------
Gross Profit 510,021
Doubtful Accounts 34,469
Consulting Fees 2,189,459
Legal and Accounting 287,823
Advertising 14,542
Directors and Officer Fees 1,409,500
Telephone 30,412
Transfer Fees 150
Travel 21,935
Rent 52,594
Other General Expenses 249,656
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Total Expenses 4,290,540
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Net Loss from Operations (3,780,519)
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Other Revenue/Expense
Interest Expense (8,580)
Interest Income 4,021
-----------------
Net Loss $(3,785,078)
=================
Net Income/Loss per share of common
stock
Weighted average number of common
shares outstanding
See Accountants' Review Report
JOINTLAND DEVELOPMENT, INC.
(Formerly Global Assets and Services, Inc.)
(A Devleopment Stage Company)
Statements of Cash Flows
(Unaudited)
May 25, 1988
Nine-Month Period Ended (Inception) to
September 30, September 30,
2006 2005 2006
-------------- -------------- -----------------
Cash Flows from Operating Activities
Net Profit (Loss) $ (21,524) $ (95,068) $ (3,785,078)
Stock issued for services - - 2,195,438
Adjustments to reconcile net loss to net cash used
in operating activities
Increase (Decrease) in Accounts Payable 12,716 36,347 63,565
-------------- -------------- -----------------
Net Cash Flows Used by Operating Activities (8,808) (58,721) (1,526,075)
-------------- -------------- -----------------
Cash Flows from Financing Activities
Proceeds from Notes - Shareholders 1,717 551 231,915
Proceeds from Director - Advances 6,985 - 6,985
Issuance of Common Stock for Asset Acquisition - 656,250
Issuance of Common Stock - - 630,963
-------------- -------------- -----------------
Net Cash Flows Provided by Financing Activities 8,702 551 1,526,113
-------------- -------------- -----------------
Net Increase (Decrease) in Cash $ (106) $ (58,170) $ 38
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Cash at Beginning of Period 144 58,879 -
-------------- -------------- -----------------
Cash at End of Period $ 38 $ 709 $ 38
============== ============== =================
Supplemental Disclosure of Cash Flow Informantion
Cash paid for interest $ - $ - $ 8,577
============== ============== =================
Cash paid for income taxes $ - $ - $ -
============== ============== =================
Supplemental Disclosure of Non-Cash Transactions
Common stock issued in exchange for services $ - $ - $ 2,195,438
============== ============== =================
See Accountants' Review Report
JOINTLAND DEVELOPMENT, INC.
(Formerly Global Assets and Services, Inc.)
(A Devleopment Stage Company)
Consolidate Stockholders' Equity (Deficit)
September 30, 2006
(Unaudited)
Deficit
Additional Accum. During
Comon Stock Paid-In the Development
# of Shares Amount Capital Stage Totals
--------------------------- ------------ --------------- ------------
Balance - December 31, 1997 87,955 $ 88 $ 208,875 $ (208,963) $ -
----------- ---------- ------------ --------------- ------------
-
Balance - December 31, 1998 87,955 88 208,875 (208,963) -
----------- ---------- ------------ --------------- ------------
Balance - December 31, 1999 87,955 88 208,875 (208,963) -
----------- ---------- ------------ --------------- ------------
Balance - December 31, 2000 87,955 88 208,875 (208,963) -
----------- ---------- ------------ --------------- ------------
Issuance of stock for services 12/11 68,000 68 3,332 3,400
Loss for year (39,462) (39,462)
----------- ---------- ------------ --------------- ------------
Balance - December 31, 2001 155,955 156 212,207 (248,425) (36,062)
----------- ---------- ------------ --------------- ------------
Issuance of stock for cash 3/28 400 1 1,999 2,000
Issuance of stock for services 3/28 136,000 136 679,864 680,000
Issuance of stock for services 4/2 20,000 20 99,980 100,000
Issuance of stock for services 6/18 10,000 10 49,990 50,000
Issuance of stock for services 7/12 14,200 14 71,023 71,037
Issuance of stock for asset
acquisition 8/12 35,000 35 656,215 656,250
Issuance of stock for services 8/12 11,800 12 58,988 59,000
Issuance of stock for cash 9/18 1,600 1 19,999 20,000
Issuance of stock for services 10/15 98,900 99 494,401 494,500
Loss for year (2,103,229) (2,103,229)
----------- ---------- ------------ --------------- ------------
Balance - December 31, 2002 483,855 484 2,344,666 (2,351,654) (6,504)
----------- ---------- ------------ --------------- ------------
Issuance of stock for services 1/15 55,500 55 254,945 255,000
Issuance of stock for services 3/11 52,600 53 254,947 255,000
Issuance of stock for services 4/20 2,000 2 9,998 10,000
Issuance of stock for services 5/28 36,000 36 179,964 180,000
Loss for year (746,134) (746,134)
----------- ---------- ------------ --------------- ------------
Balance - December 31, 2003 629,955 630 3,044,520 (3,097,788) (52,638)
----------- ---------- ------------ --------------- ------------
Issuance of stock for cash 1,000,000 1,000 249,000 250,000
Issuance of stock for services 150,000 150 37,350 37,500
Issuance of stock for services 10 1 1
Issuance of stock for cash 200,000 200 149,800 150,000
Loss for year (556,182) (556,182)
----------- ---------- ------------ --------------- ------------
Balance - December 31, 2004 1,979,965 1,981 3,480,670 (3,653,970) (171,319)
----------- ---------- ------------ --------------- ------------
Loss for year (109,584) (109,584)
----------- ---------- ------------ --------------- ------------
Balance - December 31, 2005 1,979,965 1,981 3,480,670 (3,763,554) (280,903)
----------- ---------- ------------ --------------- ------------
Los for Period (21,524) (21,524)
----------- ---------- ------------ --------------- ------------
Balance - September 30, 2006 1,979,965 $ 1,981 $3,480,670 $ (3,785,078) $ (302,427)
=========== ========== ============ =============== ============
See Accountants' Review Report
JOINTLAND DEVELOPMENT, INC.
(Formerly Global Assets & Services, Inc.)
(A Development Stage Company)
Notes to Financial Statements
September 30, 2006
(Unaudited)
Note 1 - Presentation of Interim Information:
-----------------------------------
In the opinion of the management of Jointland Development, Inc., the
accompanying unaudited financial statements include all normal adjustments
considered necessary to present fairly the financial position as of September
30, 2006 and the results of operations for the three and six-months ended
September 30, 2006 and 2005, and for the period May 25, 1988 (inception) through
September 30, 2006, and the related cash flows for the six-months ended
September 30, 2006 and 2005, and the period May 25, 1988 (inception) through
September 30, 2006. Interim results are not necessarily indicative of results
for a full year.
The financial statements and notes are presented as permitted by Form 10-QSB,
and do not contain certain information included in the Company's audited
financial statements and notes for the fiscal year ended December 31, 2005.
Note 2 - Going Concern:
-------------
The Company's financial statements have been presented on the basis that it is a
going concern, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business. The Company's current
liabilities exceed current assets by $296,223 and the Company's accumulated
deficit is $3.778,874 at September 30, 2006.
The Company is in the development stage and has not earned any revenue from
operations. The Company's ability to continue as a going concern is dependent
upon its ability to develop additional sources of capital or locate a merger
candidate and ultimately, achieve profitable operations. The accompanying
financial statements do not include any adjustments that might result from the
outcome of these uncertainties. Management is seeking new capital to revitalize
the Company.
Note 3 - Due to Director:
---------------
The Director (Chen Yurong) is due the amount of 6,985 for advances made to the
Company to pay for Company operational expenses. The amount is unsecured,
interest free and has no fixed terms of repayment.
Note 4 - Notes Payable - Related Party:
-----------------------------
A shareholder is due the amount of $231,915 for advances made to the Company to
pay for Company expenses. The amount is unsecured, interest free and has no
fixed term of repayment.
F-6
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
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OF OPERATIONS
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CAUTIONARY AND FORWARD LOOKING STATEMENTS
In addition to statements of historical fact, this Form 10-QSB contains
forward-looking statements. The presentation of future aspects of Jointland
Development, Inc. ("Jointland Development, Inc.," the "Company" or "issuer")
found in these statements is subject to a number of risks and uncertainties that
could cause actual results to differ materially from those reflected in such
statements. Readers are cautioned not to place undue reliance on these
forward-looking statements, which reflect management's analysis only as of the
date hereof. Without limiting the generality of the foregoing, words such as
"may," "will," "expect," "believe," "anticipate," "intend," or "could" or the
negative variations thereof or comparable terminology are intended to identify
forward-looking statements.
These forward-looking statements are subject to numerous assumptions, risks and
uncertainties that may cause Jointland Development, Inc.'s actual results to be
materially different from any future results expressed or implied by Jointland
Development, Inc. in those statements. Important facts that could prevent
Jointland Development, Inc. from achieving any stated goals include, but are not
limited to, the following:
Some of these risks might include, but are not limited to, the following:
(a) volatility or decline of the Company's stock price;
(b) potential fluctuation in quarterly results;
(c) failure of the Company to earn revenues or profits;
(d) inadequate capital to continue or expand its business, inability
to raise additional capital or financing to implement its
business plans;
(e) failure to commercialize its technology or to make sales;
(f) rapid and significant changes in markets;
(g) litigation with or legal claims and allegations by outside
parties; and
(h) insufficient revenues to cover operating costs.
There is no assurance that the Company will be profitable, the Company may not
be able to successfully develop, manage or market its products and services, the
Company may not be able to attract or retain qualified executives and technology
personnel, the Company's products and services may become obsolete, government
regulation may hinder the Company's business, additional dilution in outstanding
stock ownership may be incurred due to the issuance of more shares, warrants and
stock options, or the exercise of warrants and stock options, and other risks
inherent in the Company's businesses.
The Company undertakes no obligation to publicly revise these forward-looking
statements to reflect events or circumstances that arise after the date hereof.
Readers should carefully review the factors described in other documents the
Company files from time to time with the Securities and Exchange Commission,
including the Quarterly Reports on Form 10-QSB and Annual Reports on Form 10-KSB
filed by the Company and any Current Reports on Form 8-K filed by the Company.
RESULTS OF OPERATIONS FOR QUARTER ENDED SEPTEMBER 30, 2006 COMPARED TO THE
QUARTER ENDED SEPTEMBER 30, 2005
The Company had no revenues in the quarter in 2005 or 2004. The Company incurred
expenses and legal and accounting fees for the period in 2006 of $6,204
compared to $9,002 in 2005. The Company recorded a net loss in the quarter in
2006 of ($6,204) and a loss of ($9,002) in 2005. The greater loss in 2005 was
due to consulting fees. The net loss per share was nominal in the period in 2006
and in 2005. The largest component of the operating expenses in 2006 in the
quarter were $6,200 in legal and accounting fees.
RESULTS OF OPERATIONS FOR THE NINE MONTH PERIOD ENDED SEPTEMBER 30, 2006
COMPARED TO THE SIX MONTH PERIOD ENDED SEPTEMBER 30, 2005
The Company had no revenues in the nine month period in 2006 or 2005. The
Company incurred a total of $21,524 in expenses in the period in 2006 compared
to $104,070 in the same period in 2005. In 2006, the Company incurred $21,435
for legal and accounting compared to $83,894 in legal and accounting and $17,590
in consulting in 2005. The Company incurred a loss of ($21,524) in the period in
2006 compared to a loss of ($104,070) in the period in 2005. The net loss per
share was ($.01) in 2006 and ($.05) in 2005.
The Company expects the trend of losses to continue at the present rate until it
can generate revenues.
NEED FOR ADDITIONAL FINANCING
The Company believes it has insufficient capital to meet its short-term cash
needs, including the costs of compliance with the continuing reporting
requirements of the Securities Exchange Act of 1934. As the if losses continue
it may have to seek loans or equity placements to cover longer term cash needs
to continue operations and expansion.
No commitments to provide additional funds have been made by management or other
stockholders. Accordingly, there can be no assurance that any additional funds
will be available to the Company to allow it to cover operations expenses.
If future revenue declines, or operations are unprofitable, it will be forced to
develop another line of business, or to finance its operations through the sale
of assets it has, or enter into the sale of stock for additional capital, none
of which may be feasible when needed. The Company has no specific management
ability, nor financial resources or plans to enter any other business as of this
date.
The effects of inflation have not had a material impact on its operation, nor is
it expected to in the immediate future.
LIQUIDITY AND CAPITAL RESOURCES
The Company had minimal cash capital at the end of the period, which is
insufficient for any significant operations. The Company will need to either
borrow or make private placements of stock in order to fund operations. No
assurance exists as to the ability to achieve loans, or make private placements
of stock. The Company is seeking capital sources for investment, but there is no
assurance sources can be found.
Going Concern
The Company's financial statements have been presented on the basis that it is a
going concern, which contemplates the realization of assets and the satisfaction
of liabilities in the normal course of business.
The Company is in the development stage and has not earned any revenue from
operations. The Company's ability to continue as a going concern is dependent
upon its ability to develop additional sources of capital or locate a merger
candidate and ultimately, achieve profitable operations. The accompanying
financial statements do not include any adjustments that might result from the
outcome of these uncertainties. Management is seeking new capital to revitalize
the Company.
ITEM 3. CONTROLS AND PROCEEDURES
The management of the Company has evaluated the effectiveness of the issuer's
disclosure controls and procedures as of the end of the period of the report
(evaluation date) and have concluded that the disclosure controls internal
controls and procedures are adequate and effective based upon their evaluation
as of the evaluation date.
There were no changes in the small business issuer's internal controls over
financial reporting identified in connection with the Company evaluation
required by paragraph (3) of Rule 13a-15 or Rule 15d-15 under the Exchange Act
that occurred during the small business issuer's fourth fiscal quarter that has
materially affected or is reasonably likely to materially affect the small
business issuer's internal control over financial reporting.
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
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The Company is not a party to any legal proceedings, nor does
management believe that any such proceedings are contemplated.
ITEM 2. CHANGES IN SECURITIES
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None
ITEM 3. DEFAULT UPON SENIOR SECURITIES
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None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
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None
ITEM 5. OTHER INFORMATION
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None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
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A. Reports on Form 8-K:
None
B. Exhibits
31 Sarbanes Oxley Certification
32 Sarbanes Oxley Certification
JOINTLAND DEVELOPMENT, INC.
(A Development Stage Company)
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
JOINTLAND DEVELOPMENT, INC.
Date: November 15, 2006 /s/ Kexi Xu
-----------------------------------
Kexi Xu, President