MDCE — what changed in the latest 10-Q

Text added vs the prior filing · source: 10-Q · 2012-11-19

• As a result of the foregoing for the nine months ended September 30, 2012, net loss increased to a loss of $2,426,610, compared to a net loss of $1,466,092 during the nine months ended September 30, 2011. Net loss from inception (February 27, 2007) through September 30, 2012 was $6,777,835.

• As of September 30, 2012, we had cash on hand of $742. We believe that cash on hand, as of the date of this report, will not be sufficient to fund operations, working capital needs and other short-term cash requirements.

• We entered into a security sale agreement, dated July 17, 2012 with a private accredited investor, for the purchase of $15,000 of our common stock for a purchase price of $0.00035 per share. The agreement provides, among other things, that we will register the shares on a Form S-1 registration state…

• On July 19, 2012, we issued a convertible promissory note to Nicholas J. Morano, LLC, a Texas limited liability company (“Morano”), in the principal amount of $29,500. The Note matures on January 21, 2013, and accrues interest at 10% per annum. The Note contains default events which, if triggered, w…

• On July 23, 2012, we provided formal notice to terminate the $10 million reserve equity financing agreement entered into on April 27, 2012 with AGS Capital Group, LLC (“AGS”). AGS did not render any services to us or purchase any shares of our common stock pursuant to the terms in the financing agre…

Text removed vs the prior filing · source: 10-Q · 2012-08-17

• As of June 30, 2012, we had cash on hand of $379. We believe that cash on hand, as of the date of this report, will not be sufficient to fund operations, working capital needs and other short-term cash requirements.

• On May 29, 2012, we issued an (i) Amended and Restated 10% Convertible Debenture to Light Hammer, LLC, a New Jersey limited liability company (“LH”), in the principal amount of $65,000 and (ii) Amended and Restated 10% Convertible Debenture to Nicholas J. Morano, LLC, a Texas limited liability compa…

• On June 12, 2012, we entered into a loan agreement with our Hong Kong joint venture partner, Ocean Wise International Industrial Limited (“Ocean Wise”) in which Ocean Wise agreed to loan us $285,645 to be used for joint venture costs for the Shenzhen Phase 1 and 2 license. The loan accrues interest …

• To date, our limited cash resources have been used to pay for our office and administrative expenses in Beijing, our license application fees in both Dongguan and Shenzhen, China, and legal, accounting and professional services required to prepare and file our reports with the U.S. Securities and Ex…

• Our outstanding liabilities at June 30, 2012 consisted of $453,896 in accounts payable and accrued liabilities, $5,745 in convertible notes, $276,422 in derivative liabilities from convertible notes, $360,518 in related party debts, $80,974 in loans payable, and $285,645 in loan from related party.

Text added vs the prior filing · source: 10-Q · 2012-11-19

• Under the supervision and with the participation of our management, including the Principal Executive Officer and Principal Financial Officer, we have evaluated the effectiveness of our disclosure controls and procedures as required by Exchange Act Rule 13a-15(b) as of the end of the period covered …

• There were no changes in our internal control over financial reporting during the quarter ended September 30, 2012 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Text removed vs the prior filing · source: 10-Q · 2012-08-17

• Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of our disclosure controls and procedures, as such term is defined under Rule 13a-15(e) and Rule 15d-15(e) promulgated under the S…

• Therefore, our internal controls over financial reporting were not effective as of June 30, 2012 based on the material weaknesses described below:

• • we lacked proper procedures in place to track and record expenses;

• • we lacked competent financial management personnel with appropriate accounting knowledge and training;

• • we relied on an outside consultant to prepare our financial statements;