x
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QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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¨
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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Delaware
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45-0582098
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(State
or other jurisdiction of incorporation)
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(I.R.S.
Employer Identification No.)
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Large
accelerated filer ¨
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Accelerated
filer ¨
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Non-accelerated
filer ¨
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Smaller
reporting company x
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|||
(Do
not check if a smaller
Reporting
company)
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PAGE
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PART
I - FINANCIAL INFORMATION
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Item
1.
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Financial
Statements
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3
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Item
2.
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Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
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11
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Item
3.
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Quantitative
and Qualitative Disclosures About Market Risk
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14
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Item
4T.
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Controls
and Procedures
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14
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PART
II - OTHER INFORMATION
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Item
1.
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Legal
Proceedings
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15
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Item
1A.
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Risk
Factors
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15
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Item
2.
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Unregistered
Sales of Equity Securities and Use of Proceeds
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16
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Item
3.
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Defaults
Upon Senior Securities
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16
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Item
4.
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Submission
of Matter to a Vote of Security Holders
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16
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Item
5.
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Other
Information
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16
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Item
6.
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Exhibits
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16
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SIGNATURES
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18
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PAGE
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Consolidated
Balance Sheets as of June 30, 2009 (Unaudited)
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and
December 31, 2008 (Audited)
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4
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Unaudited
Consolidated Statements of Operations for the three and
six
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Month
periods ended June 30, 2009 and June 30, 2008 and the
period
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from
March 15, 2007 (Inception) to June 30, 2009
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5
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Unaudited
Consolidated Statements of Cash Flows for the six month
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periods
ended June 30, 2009 and June 30, 2008 and for the period
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from
March 15, 2007 (Inception) to June 30, 2009
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6
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Notes
to Unaudited Consolidated Financial Statements
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7
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June 30, 2009
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December 31, 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
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$ | - | $ | 15,056 | ||||
TOTAL
CURRENT ASSETS
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- | 15,056 | ||||||
Capitalized
film costs
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1,271,611 | 1,271,611 | ||||||
TOTAL
ASSETS
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$ | 1,271,611 | $ | 1,301,723 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
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CURRENT
LIABILITIES:
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Accounts
payable and accrued expenses
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$ | 21,898 | $ | 11,532 | ||||
Loan
payable-stockholder
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40,000 | 40,000 | ||||||
Compensation
payable
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355,462 | 355,462 | ||||||
TOTAL
CURRENT LIABILITIES
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417,360 | 406,994 | ||||||
Convertible
debenture
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45,539 | - | ||||||
Notes
payable
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218,973 | 208,422 | ||||||
TOTAL
LIABILITIES
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681,872 | 615,416 | ||||||
STOCKHOLDERS'
EQUITY:
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Preferred
stock, $.001 par value,
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10,000,000
shares authorized; none issued
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- | - | ||||||
Common
stock, $.001 par value,
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300,000,000
shares authorized; 20,629,000 issued and
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outstanding
at June 30, 2009 and December 31, 2008
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20,629 | 20,629 | ||||||
Additional
paid in capital
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903,771 | 903,771 | ||||||
Deficit
accumulated in the development stage
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(334,661 | ) | (253,149 | ) | ||||
TOTAL
STOCKHOLDERS' EQUITY
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589,739 | 671,251 | ||||||
TOTAL
LIABILITIES AND
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STOCKHOLDERS'
EQUITY
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$ | 1,271,611 | $ | 1,286,666 |
March
15, 2007
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(Inception)
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Three Months Ended
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Six Months Ended
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to
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June 30, 2009
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June 30, 2008
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June 30, 2009
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June 30, 2008
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June 30, 2009
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Revenues
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$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Operating
expenses:
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General
and administrative
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22,495 | 15,758 | 80,976 | 43,093 | 338,148 | |||||||||||||||
Total
operating expenses
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22,495 | 15,758 | 80,976 | 43,093 | 338,148 | |||||||||||||||
Net
loss before other income
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(22,495 | ) | (15,758 | ) | (80,976 | ) | (43,093 | ) | (338,148 | ) | ||||||||||
Other
income (expense):
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Interest
expense
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(539 | ) | - | (539 | ) | - | (539 | ) | ||||||||||||
Interest
income
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- | - | 3 | 2,242 | 4,026 | |||||||||||||||
Net
loss
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$ | (23,034 | ) | $ | (15,758 | ) | $ | (81,512 | ) | $ | (40,851 | ) | $ | (334,661 | ) | |||||
Basic
earnings per share
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$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | ||||||||
Weighted
average number of
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common
shares outstanding -
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basic
and diluted
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20,629,000 | 20,200,429 | 20,629,000 | 20,118,010 |
Inception
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Six Months
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Six Months
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(March 15, 2007)
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Ended
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Ended
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to
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June 30, 2009
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June 30, 2008
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June 30, 2009
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CASH
FLOWS FROM OPERATING ACTIVITIES:
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Net
loss
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$ | (81,512 | ) | $ | (40,851 | ) | $ | (334,661 | ) | |||
Adjustments
to reconcile net loss to
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net
cash used in operating activities:
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Increase
in film costs
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- | (54,704 | ) | (1,276,220 | ) | |||||||
Increase
in capitalized interest
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- | 4,609 | 33,694 | |||||||||
Increase
(decrease) in accounts payable and accrued expenses
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10,366 | (500 | ) | 21,898 | ||||||||
Officer
stock compensation
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- | - | 11,500 | |||||||||
Increase
in compensation payable
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- | - | 355,462 | |||||||||
NET
CASH USED IN OPERATING ACTIVITIES
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(71,146 | ) | (91,446 | ) | (1,188,327 | ) | ||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
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Proceeds
from loans payable
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- | - | 160,000 | |||||||||
Proceeds
from loan payable-shareholder
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- | - | 40,000 | |||||||||
Increase
in note payable accrued interest
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10,551 | 4,839 | 29,888 | |||||||||
Proceeds
from convertible debenture
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45,000 | - | 45,000 | |||||||||
Increase
in convertible debenture accrued interest
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539 | - | 539 | |||||||||
Proceeds
from issuance of common stock
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- | 60,000 | 912,900 | |||||||||
NET
CASH PROVIDED BY FINANCING ACTIVITIES
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56,090 | 64,839 | 1,188,327 | |||||||||
DECREASE
IN CASH
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(15,056 | ) | (26,607 | ) | - | |||||||
CASH-BEGINNING
OF PERIOD
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15,056 | 75,768 | - | |||||||||
CASH-END
OF PERIOD
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$ | - | $ | 49,161 | $ | - | ||||||
CASH
PAID FOR:
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Interest
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$ | - | $ | - | ||||||||
Income
taxes
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$ | - | $ | - |
ITEM
2.
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MANAGEMENT’S
DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
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ITEM
3.
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QUANTITATIVE
AND QUALITATIVE DISCLOSURES ABOUT MARKET
RISK
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ITEM
4T.
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CONTROLS
AND PROCEDURES
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ITEM
1.
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LEGAL
PROCEEDINGS
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ITEM
1A.
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RISK
FACTORS
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ITEM
2.
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UNREGISTERED
SALES OF EQUITY SECURITIES AND USE OF
PROCEEDS
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ITEM
3.
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DEFAULTS
UPON SENIOR SECURITIES
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ITEM
4.
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SUBMISSION
OF MATTERS TO A VOTE OF SECURITY
HOLDERS
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ITEM
5.
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OTHER
INFORMATION
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ITEM
6.
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EXHIBITS.
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•
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should
not in all instances be treated as categorical statements of fact, but
rather as a way of allocating the risk to one of the parties if those
statements prove to be inaccurate;
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•
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have
been qualified by disclosures that were made to the other party in
connection with the negotiation of the applicable agreement, which
disclosures are not necessarily reflected in the
agreement;
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•
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may
apply standards of materiality in a way that is different from what may be
viewed as material to you or other investors;
and
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•
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were
made only as of the date of the applicable agreement or such other date or
dates as may be specified in the agreement and are subject to more recent
developments.
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Exhibit No.
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Description
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31.1
/ 31.2
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Certification
of Principal Executive and Financial Officer pursuant to Section 302 the
Sarbanes-Oxley Act of 2002
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32.1
/ 32.2
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Certification
of Principal Executive and Financial Officer pursuant to 18 U.S.C. Section
1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
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EASTERN
RESOURCES, INC.
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By:
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/s/Thomas H. Hanna, Jr.
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Thomas
H. Hanna, Jr., Principal Executive and
Financial Officer |