Golden Oasis New Energy Group, Inc.
Financial Statement (Unaudited)
Three Months Ended March 31, 2013 and 2012
Contents
|
Balance Sheet
|
|
|
5
|
|
|
|
|
|
|
|
|
Statement of Loss
|
|
|
6
|
|
|
|
|
|
|
|
|
Shareholders Equity
|
|
|
7
|
|
|
|
|
|
|
|
|
Cash Flows
|
|
|
8
|
|
|
|
|
|
|
|
|
Notes to Financial Statements
|
|
|
9
|
|
|
|
|
|
|
|
|
Exhibit A
|
|
|
20
|
|
|
Golden Oasis New Energy Group, Inc.
|
|
(A Development Stage Enterprise)
|
|
BALANCE SHEET
|
|
|
|
March 31
|
|
|
June 30
|
|
|
|
|
2013
|
|
|
2012
|
|
|
ASSETS
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
472
|
|
|
$
|
28,924
|
|
|
Inventory
|
|
|
-
|
|
|
|
13,831
|
|
|
Prepaid Rent
|
|
|
-
|
|
|
|
-
|
|
|
Total Current Assets
|
|
$
|
472
|
|
|
$
|
42,755
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
|
$
|
472
|
|
|
$
|
42,755
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES & EQUITY
|
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
|
Account payable
|
|
$
|
3,500
|
|
|
$
|
-
|
|
|
Total current liabilities
|
|
$
|
3,500
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Other current liabilities:
|
|
|
|
|
|
|
|
|
|
Loan from shareholders
|
|
$
|
25,788
|
|
|
$
|
24,213
|
|
|
Sales Tax Payable
|
|
|
-
|
|
|
|
94
|
|
|
Total other current liabilities
|
|
$
|
25,788
|
|
|
$
|
24,307
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
$
|
29,288
|
|
|
$
|
24,307
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity:
|
|
|
|
|
|
|
|
|
|
Common stock, $0.001 par value;
|
|
|
|
|
|
|
|
|
|
500,000,000 shares authorized;
|
|
|
|
|
|
|
|
|
|
6,493,090 shares issued and outstanding.
|
|
$
|
6,494
|
|
|
$
|
6,494
|
|
|
Paid-in capital
|
|
|
112,780
|
|
|
|
112,780
|
|
|
Deficit accumulated during the development stage
|
|
|
(148,090
|
)
|
|
|
(100,826
|
)
|
|
Accumulated other comprehensive income (loss)
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
$
|
(28,816
|
)
|
|
$
|
18,448
|
|
|
TOTAL LIABILITIES & EQUITY
|
|
$
|
472
|
|
|
$
|
42,755
|
|
|
Golden Oasis New Energy Group, Inc.
|
|
(A Development Stage Enterprise)
|
|
STATEMENT OF LOSS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative from
May 10, 2010 (Date
of Inception) Through
March 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
Revenues
|
|
$
|
7,093
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
14,059
|
|
|
Cost of Goods Sold
|
|
$
|
4,423
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
10,131
|
|
|
Gross Profit
|
|
$
|
2,670
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
3,928
|
|
|
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Research and development
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and administrative expenses
|
|
$
|
49,935
|
|
|
$
|
59,486
|
|
|
$
|
5,319
|
|
|
$
|
34,528
|
|
|
$
|
152,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization expenses
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Operating Expenses
|
|
$
|
49,935
|
|
|
$
|
59,486
|
|
|
$
|
5,319
|
|
|
$
|
34,528
|
|
|
$
|
152,100
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Loss
|
|
$
|
(47,265
|
)
|
|
$
|
(59,486
|
)
|
|
$
|
(5,319
|
)
|
|
$
|
(34,528
|
)
|
|
$
|
(148,172
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment income, net
|
|
$
|
1
|
|
|
$
|
9
|
|
|
$
|
-
|
|
|
$
|
3
|
|
|
$
|
82
|
|
|
Interest Expense, net
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
Loss before income taxes
|
|
$
|
(47,264
|
)
|
|
$
|
(59,477
|
)
|
|
$
|
(5,319
|
)
|
|
$
|
(34,525
|
)
|
|
$
|
(148,090
|
)
|
|
Loss tax expense
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
Net loss
|
|
$
|
(47,264
|
)
|
|
$
|
(59,477
|
)
|
|
$
|
(5,319
|
)
|
|
$
|
(34,525
|
)
|
|
$
|
(148,090
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common share- Basics
|
|
$
|
(0.01
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.02
|
)
|
|
Net loss per common share- Diluted
|
|
$
|
0.01
|
|
|
$
|
(0.01
|
)
|
|
$
|
(0.00
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.00
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive loss, net of tax:
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
Comprehensive income (loss)
|
|
$
|
(47,264
|
)
|
|
$
|
(59,477
|
)
|
|
$
|
(5,319
|
)
|
|
$
|
(34,525
|
)
|
|
$
|
(148,090
|
)
|
|
Golden Oasis New Energy Group, Inc.
|
|
(A Development Stage Enterprise)
|
|
STATEMENT OF STOCKHOLDERS EQUITY
|
|
The Period May 10, 2010 ( Date of Inception)
|
|
through March 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
Deficit
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
|
During the
|
|
|
Other
|
|
|
Total
|
|
|
|
|
Common Stock
|
|
|
Paid-in
|
|
|
Development
|
|
|
Comprehensive
|
|
|
Stockholders'
|
|
|
|
|
Shares
|
|
|
Amount
|
|
|
Capital
|
|
|
Stage
|
|
|
Income (Loss)
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stocks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to shareholders @0.005 per
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
share on May 28 2010
|
|
|
5,000,000
|
|
|
$
|
5,000
|
|
|
$
|
20,000
|
|
|
|
|
|
|
|
|
$
|
25,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ended June 30, 2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(2,195
|
)
|
|
|
|
|
$
|
(2,195
|
)
|
|
Balance June 30, 2010
|
|
|
5,000,000
|
|
|
$
|
5,000
|
|
|
$
|
20,000
|
|
|
$
|
(2,195
|
)
|
|
$
|
-
|
|
|
$
|
22,805
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stocks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to shareholders @0.01 per
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
share on December 23, 2010
|
|
|
611,500
|
|
|
$
|
612
|
|
|
$
|
5,503
|
|
|
|
|
|
|
|
|
|
|
$
|
6,115
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stocks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Michael Williams @0.10 per
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
share on March 31, 2011
|
|
|
100,000
|
|
|
$
|
100
|
|
|
$
|
9,900
|
|
|
|
|
|
|
|
|
|
|
$
|
10,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ended June 30, 2011
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(32,041
|
)
|
|
|
|
|
|
$
|
(32,041
|
)
|
|
Balance June 30, 2011
|
|
|
5,711,500
|
|
|
$
|
5,712
|
|
|
$
|
35,403
|
|
|
$
|
(34,236
|
)
|
|
|
-
|
|
|
|
6,879
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stocks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to shareholders @0.10 per
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
share on September 08, 2011
|
|
|
60,000
|
|
|
$
|
60
|
|
|
$
|
5,940
|
|
|
|
|
|
|
|
|
|
|
$
|
6,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stocks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Pivo Associates @0.10 per
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
share on June 13, 2012
|
|
|
50,000
|
|
|
$
|
50
|
|
|
$
|
4,950
|
|
|
|
|
|
|
|
|
|
|
$
|
5,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of common stocks
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Keming Li @0.10 per
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
share on June 13, 2012
|
|
|
671,590
|
|
|
$
|
672
|
|
|
$
|
66,487
|
|
|
|
|
|
|
|
|
|
|
$
|
67,159
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ended June 30, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(66,590
|
)
|
|
|
|
|
|
$
|
(66,590
|
)
|
|
Balance June 30, 2012
|
|
|
6,493,090
|
|
|
$
|
6,494
|
|
|
$
|
112,780
|
|
|
$
|
(100,826
|
)
|
|
$
|
-
|
|
|
$
|
18,448
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss for the period
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ended March 31, 2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
(47,264
|
)
|
|
|
|
|
|
$
|
(47,264
|
)
|
|
Balance March 31, 2013
|
|
|
6,493,090
|
|
|
$
|
6,494
|
|
|
$
|
112,780
|
|
|
$
|
(148,090
|
)
|
|
$
|
-
|
|
|
$
|
(28,816
|
)
|
|
Golden Oasis New Energy Group, Inc.
|
|
(A Development Stage Enterprise)
|
|
STATEMENT OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative from
May 10, 2010 (Date
of Inception) Through
March 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
(Unaudited)
|
|
|
Operating Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(47,264
|
)
|
|
$
|
(59,477
|
)
|
|
$
|
(5,319
|
)
|
|
$
|
(34,525
|
)
|
|
$
|
(148,090
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjustments to reconcile net income to net cash provided by
|
|
|
|
|
|
|
Operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash portion of share based legal fee expense
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
15,000
|
|
|
Inventory Asset
|
|
|
13,831
|
|
|
|
(18,297
|
)
|
|
|
19,030
|
|
|
|
(18,297
|
)
|
|
|
-
|
|
|
Account Payable
|
|
|
3,500
|
|
|
|
|
|
|
|
(21,000
|
)
|
|
|
|
|
|
|
3,500
|
|
|
Prepaid Rent
|
|
|
-
|
|
|
|
580
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
Sales Tax Payable
|
|
|
(94
|
)
|
|
|
-
|
|
|
|
(94
|
)
|
|
|
-
|
|
|
|
-
|
|
|
Net cash provided by operating activities
|
|
$
|
(30,027
|
)
|
|
$
|
(77,194
|
)
|
|
$
|
(7,383
|
)
|
|
$
|
(52,822
|
)
|
|
$
|
(129,590
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by investing activities
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loan from shareholders
|
|
$
|
1,575
|
|
|
$
|
67,159
|
|
|
$
|
(13,530
|
)
|
|
$
|
20,869
|
|
|
$
|
25,788
|
|
|
Proceeds from issuance of common stock
|
|
|
-
|
|
|
|
6,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
104,274
|
|
|
Net cash provided by financing activities
|
|
$
|
1,575
|
|
|
$
|
73,159
|
|
|
$
|
(13,530
|
)
|
|
$
|
20,869
|
|
|
$
|
130,062
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net increase (decrease) in cash and cash equivalents
|
|
$
|
(28,452
|
)
|
|
$
|
(4,035
|
)
|
|
$
|
(20,913
|
)
|
|
$
|
(31,953
|
)
|
|
$
|
472
|
|
|
Cash and cash equivalents at beginning of the period
|
|
$
|
28,924
|
|
|
$
|
6,299
|
|
|
$
|
21,385
|
|
|
$
|
34,217
|
|
|
$
|
-
|
|
|
Cash and cash equivalents at end of the period
|
|
$
|
472
|
|
|
$
|
2,264
|
|
|
$
|
472
|
|
|
$
|
2,264
|
|
|
$
|
472
|
|
GOLDEN OASIS NEW ENERGY GROUP, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE A- BUSINESS DESCRIPTION
Golden Oasis New Energy Group, Inc. (the “Company”), incorporated under the laws of Nevada on May 10, 2010 with registered address at 1955 Baring Blvd, Sparks, NV 89434. Golden Oasis New Energy Group, Inc. wholly owned branch located in the State of Illinois and its principal office is at 1000 E. Armstrong Street, Morris, IL 60445.
The Company was previously engaged in selling the lithium-ion batteries and related power supplies that mainly are used in mobile and consumer electronics products, such as readers, DVD players, digital cameras and digital video recorders, communications products, electric-power bikes and mopeds, miner's lamps, electric-power tools, electric-power sources for instruments and meters and other similar electrical equipment that can run on batteries.
On February 6, 2013, pursuant to an Agreement between Mr. Keming Li, former
CEO/President and Director of Golden Oasis New Energy Group Inc., a Nevada corporation (the “Issuer”), Ms. Guoling Jin, former Treasury and Director of Golden Oasis New Energy Group Inc, and Ms. Madison Li (the stockholder), of Golden Oasis New Energy Group Inc, and Mr. Jian Li (the “Purchaser”), Mr. Jian Li became the principal stockholder and Chief Executive Officer and Tzongshyan George Sheu the Vice-president and Chief Financial Officer of the Company.
In connection with this change of control, we discontinued our current business. It is anticipated we will acquire First America Metal Corporation of business and what business does, a business owned primarily by Mr. Jian Li, in the next few months depending upon completion of audit of the First America Metal Corporation and preparation of required filing on Form 8-K.
Going Concern and Plan of Operation
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 profit from operations to date. These conditions raise substantial doubt about its ability to continue as a going concern. These financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
GOLDEN OASIS NEW ENERGY GROUP INC.
NOTES TO FINANCIAL STATEMENTS
NOTE B – SIGNIFICANT ACCOUNTING POLICIES
Development Stage Company
The Company is considered to be in the development stage as defined FASB ASC Topic 915, “
Development Stage Entities
”. The Company has devoted substantially all of its efforts to the corporate formation, the raising of capital and attempting to raise sales.
Basis of accounting
The financial statements reflect the assets, revenues and expenditures of the Company on the accrual basis of accounting.
The Company’s fiscal year end is June 30.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles in the United States of America requires management to make estimates and assumptions that affect certain amounts reported in the financial statements and disclosures. Accordingly, actual results could differ from those estimates.
Cash and Cash Equivalents
The Company considers all highly-liquid investments with an original maturity of three months or less when purchased to be cash equivalents. As of March 31, 2013, cash and cash equivalents are $472.
Property, Plant, and Equipment Depreciation
Property, plant, and equipment are stated at cost. Depreciation is being provided principally by straight line methods over the estimated useful lives of the assets. As of March 31, 2013, there were no fixed assets in the Company’s balance sheets.
Comprehensive Income
The company’s comprehensive income is comprised of net income, unrealized gains and losses on marketable securities classified foreign currency translation adjustments, and unrealized gains and losses on derivative financial instruments related to foreign currency hedging.
GOLDEN OASIS NEW ENERGY GROUP, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
Stock-Based Compensation
The Company accounts for stock issued for services using the fair value method. In accordance with FASB ASC Topic 718, “Compensation - Stock Compensation”, the measurement date of shares issued for services is the date at which the counterparty’s performance is complete.
On March 31, 2011, 100,000 shares were issued to Michael Williams for legal services of $10,000 at $0.10 per share.
On June 13, 2012, 50,000 shares were issued to Pivo Associates for services of $5,000 at $0.10 per share.
Basic and Diluted Net Loss per Common Share
The Company computes per share amounts in accordance with FASB ASC Topic 260, “Earnings per Share”. ASC 260 requires presentation of basic and diluted EPS.
Basic EPS is computed by dividing the income (loss) available to Common Shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS is based on the weighted-average number of shares of common stock and common stock equivalents outstanding during the periods.
As of March 31, 2013, the Company only issued one type of shares, i.e., common shares only. There are no other type of securities were issued. Accordingly, the diluted and basic net loss per common share is the same.
Inventory
There was no inventory as of March 31, 2013.
Revenue Recognition
In accordance with the FASB Accounting Standards Codification (ASC) 605-15-25 “Revenue Recognition for Sales of Product”, the Company recognizes revenue when it is realized or realizable and earned. The revenue from the product sales transaction shall be recognized at time of sale if the following conditions are met:
GOLDEN OASIS NEW ENERGY GROUP, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue Recognition (Continued)
|
·
|
The seller's price to the buyer is substantially fixed or determinable at the date of sale.
|
|
·
|
The buyer has paid the seller, or the buyer is obligated to pay the seller and the obligation is not contingent on resale of the product.
|
|
·
|
The buyer's obligation to the seller would not be changed in the event of theft or physical destruction or damage of the product.
|
|
·
|
The buyer acquiring the product for resale has economic substance apart from that provided by the seller.
|
|
·
|
The seller does not have significant obligations for future performance to directly bring about resale of the product by the buyer.
|
|
·
|
The amount of future returns can be reasonably estimated.
|
In accordance with paragraph 4-14 of FASB ASC 605-45, "Reporting Revenues Gross as a Principal versus Net as an Agent", the Company will recognize revenues on a gross basis. ASC 605-45, paragraph 4-14 discusses whether revenues and cost of goods sold to arrive at gross profit and their corresponding assets and liabilities should be recorded at gross or net. The following indicators of gross revenue recognition will be applicable in the Company:
|
·
|
Acts as principal in the transaction, Entity Is the Primary Obligor in the Arrangement. The Company will purchase the products from supplier(s) and will responsible for the acceptability of the products, store the products in our warehouse as inventory. The current leased property is a warehouse with office suite. For whole purchase and selling cycle, the Company acts as principal and primary obligator throughout the whole purchase to selling transaction.
|
|
·
|
Has risk and rewards of ownership, such as general inventory risk, risk of loss for collection, delivery and returns. Based on the signed distribution agreement, the supplier ship the products FOB at shipping point, after shipping, the Company will take care of the products loss, and after receiving the products the Company will store all products in leased warehouse and incur risk of loss inventory. After selling to customers, the Company is also responsible for risk of loss for delivery, return, and collection of receivable.
|
GOLDEN OASIS NEW ENERGY GROUP, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
Revenue Recognition (Continued)
|
·
|
Takes title to the products. The Company will take title to the products before customers order them. The Company will retail its purchased products to general public through e-commerce or online selling. All customer orders and its shipments to customers will be responsible of the Company, not supplier(s).
|
|
·
|
Flexibility in pricing. The retail price to customers will be responsible of the Company according to the market competitions.
|
|
·
|
Assumes credit risk. The Company will assume collection and receivable risks.
|
|
·
|
The company can change the products or perform part of the service, and the Company is involved in the determination of products or service specifications based on customer’s needs. At the beginning of the Company’s development stage, the Company will not change the products. After the products purchased by the Company and stored in warehouse, the Company will display our products on our website or through e-bay, the interested customers will click the specific product items to complete purchase orders. After the development stage, the Company will develop its own design and will customize the products according to customers’ request.
|
Though the Company signed a one-year term distribution agreement with ZHEJIANG UNITED POWER ENERGY CO., LTD, the Company can have alternatives to choose other more competitive suppliers if it is necessary. Accordingly, all gross revenue indicators are positive to support the Company is a gross revenue report entity.
All the indicators of net revenue reporting (ASC 605-45, paragraph 16-23) will not be applicable in the Company.
Revenues are recognized from product sales upon shipment, which is the point in time when risk of loss is transferred to the customer, net of estimated returns and allowances.
The Company had zero revenue for the fiscal quarter ended at March 31, 2013.
GOLDEN OASIS NEW ENERGY GROUP, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
Cost of Goods Sold
The Company’s purchase cost is primarily from supplier, ZHEJIANG UNITED POWER ENERGY CO., LTD.
Cost of Goods Sold included the purchase cost of the product sold, freight and shipping expense, custom fees, and merchant account fees.
For the fiscal quarter ended March 31, 2013, zero Cost of Goods Sold was recorded.
Operating Leases
After February 6, 2013, the Company moved to the new address located at 1000 E. Armstrong St., Morris, IL 60450. There was no lease signed between the Company and the property owner, Jian Li, who is also the majority shareholder of the Company. Prior to the closing date of February 6, 2013, the monthly rent payment of $600 was paid up to January 31, 2013.
Operating Expense
Operating expense consist of selling, general and administrative expenses.
For the quarter ended March 31, 2013 and 2012, the Company incurred $5,319 and $34,528 operating expenses respectively, and $152,100 of operation expenses incurred for the period of May 10,2010 date of inception to December 31, 2012.
Detail as showed at Exhibit A at the end of the financial notes.
Professional Fees
Professional fees consist of accounting and auditing fees, legal fees, SEC filling fees, and other professional fees.
For the quarter ended March 31, 2013 and 2012, the Company incurred $4,458 and $ 29,654 respectively, and $121,543 of professional fees expense incurred for the period of May 10, 2010 date of inception to December 31, 2012.
GOLDEN OASIS NEW ENERGY GROUP, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE B - SIGNIFICANT ACCOUNTING POLICIES (Continued)
Professional Fees (Continued)
Detail was shown below:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative from
May 10, 2010 (Date
of Inception) Through
March 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
Professional Fees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accounting & Auditing Fees
|
|
$
|
21,000
|
|
|
$
|
15,000
|
|
|
$
|
1,000
|
|
|
$
|
10,000
|
|
|
$
|
36,000
|
|
|
Legal expenses
|
|
$
|
9,600
|
|
|
$
|
23,600
|
|
|
$
|
600
|
|
|
$
|
12,000
|
|
|
$
|
57,099
|
|
|
SEC filling fees
|
|
$
|
5,941
|
|
|
$
|
2,306
|
|
|
$
|
2,703
|
|
|
$
|
137
|
|
|
$
|
8,272
|
|
|
Transfer Agent Service
|
|
$
|
155
|
|
|
|
|
|
|
$
|
155
|
|
|
|
|
|
|
$
|
155
|
|
|
Professional Fees - Other
|
|
$
|
7,500
|
|
|
$
|
7,542
|
|
|
|
|
|
|
$
|
7,517
|
|
|
$
|
20,017
|
|
|
Total Professional Fees
|
|
$
|
44,196
|
|
|
$
|
48,448
|
|
|
$
|
4,458
|
|
|
$
|
29,654
|
|
|
$
|
121,543
|
|
Income Tax
Income taxes are provided for tax effects of transactions reported in the financial statements and consist of taxes currently due plus deferred taxes. Deferred taxes are recognized for differences between the basis of assets and liabilities for financial statement and income tax purposes. The differences in asset and liability basis relate primarily to organization and start-up costs (use of different methods and periods to calculate deduction). Deferred taxes are also recognized for operating losses and tax credits that are available to offset future income taxes. The deferred tax assets and/or liabilities represent the future tax return consequences of those differences, which will either be taxable or deductible when the assets and liabilities are recovered or settled. The components of the deferred tax asset and liability are classified as current and concurrent based on their characteristics. Valuation allowances are provided for deferred tax assets based on management’s projection of the sufficiency of future taxable income to realize the assets.
Recent Accounting Pronouncements
The following pronouncements have become effective during the period covered by these financial statements or will become effective after the end of the period covered by these financial statements:
|
Pronouncement
|
|
Issued
|
|
Title
|
|
ASC 855
|
|
May 2009
|
|
Subsequent Events
|
|
ASC 105
|
|
June 2009
|
|
The
FASB Accounting Standards Codification
and the Hierarchy of Generally Accepted Accounting Principles—a replacement of FASB Statement No. 162
|
|
ASC 820
|
|
August 2009
|
|
Fair Value Measurements and Disclosures – Measuring Liabilities at Fair Value
|
|
ASC 260
|
|
September 2009
|
|
Earnings per Share – Amendments to Section 260-10-S99
|
|
ASC 820
|
|
September 2009
|
|
Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent)
|
|
ASC 605
|
|
October 2009
|
|
Revenue Recognition (Topic 605): Multiple-Deliverable Revenue Arrangements – a consensus of the FASB Emerging Issues Task Force
|
|
ASC 470
|
|
October 2009
|
|
Accounting for Own-Share Lending Arrangements in Contemplation of Convertible Debt Issuance or Other Financing – a consensus of the FASB Emerging Issues Task Force
|
|
ASC 860
|
|
December 2009
|
|
Transfers and Servicing (Topic 860): Accounting for Transfers of Financial Assets
|
|
ASC 505
|
|
January 2010
|
|
Accounting for Distributions to Shareholders with Components of Stock and Cash – a consensus of the FASB Emerging Issues Task Force
|
|
ASC 810
|
|
January 2010
|
|
Consolidation (Topic 810): Accounting and Reporting for Decreases in Ownership of a Subsidiary – a Scope Clarification
|
|
ASC 718
|
|
January 2010
|
|
Compensation – Stock Compensation (Topic 718): Escrowed Share Arrangements and the Presumption of Compensation
|
|
ASC 820
|
|
January 2010
|
|
Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements
|
|
ASC 810
|
|
February 2010
|
|
Consolidation (Topic 810): Amendments for Certain Investment Funds
|
|
ASC 815
|
|
March 2010
|
|
Derivatives and Hedging (Topic 815): Scope Exception Related to Embedded Credit Derivatives
|
|
ASC 310
Receivables (Topic 310): Disclosures about the Credit Quality of Financing Receivables and the Allowance for Credit Losses
|
|
July 2010
|
|
For public entities, the disclosures as of the end of a reporting period are
effective for interim and annual reporting periods ending on or after December 15, 2010. The disclosures about activity that occurs during a reporting period are effective for interim and annual reporting periods beginning on or after December
15, 2010.
For nonpublic entities, the disclosures are effective for annual reporting periods ending on or after December 15, 2011.
|
Management does not anticipate that the new accounting pronouncements listed above will have a material impact on our financial statements.
GOLDEN OASIS NEW ENERGY GROUP, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE C – RELATED PARTY TRANSACTIONS
Loans to Officer/Shareholder
As of June 30, 2010, there was an amount of $9,350 loans from Officer for setting up the company. And the same amount has been returned to the Officer in March 2011.
From the period of July 1 2011 to March 2012, the company’s officer Keming Li additional loan $ 67,159 to Golden Oasis New Energy Group Inc without interest without written agreement. The payment term is on demand.
From the period of April 1 2012 to June 30 2012, the company’s officer Keming Li additional loan $ 24,213 to Golden Oasis New Energy Group Inc without interest without written agreement. The payment term is on demand.
On June 13, 2012, the Company exchanged $ 67,159 in debt owed to Keming Li for 671,590 shares of common stock at fair market value of $ 0.10 per share.
From the period of July 1 2012 to December 31 2012, the company’s officer Keming Li additional loan $15,104 to Golden Oasis New Energy Group Inc without interest without written agreement. The payment term is on demand.
On February 6, 2013, Mr. Keming Li sold his shares to Mr. Jian Li, and Mr. Jian Li advanced $3,000 to the Company, and Mr. Jian Li became the loan holder for all the prior loans advanced by Mr. Keming Li. As of March 31, 2013, the total loans from shareholder is $25,788.
Common Shares Issued to Executive and Non-Executive Officers and Directors
As of March 31, 2013 total 5,387,925 shares were issued to officers and directors. Please see the Table below for details:
|
Name
|
|
Title
|
|
Share QTY
|
|
Date
|
|
% of Common Share
|
|
|
Jian LI
|
|
CEO & President
|
|
|
5,387,925
|
|
2/6/2013
|
|
|
82.98
|
%
|
|
Total
|
|
|
|
|
5,387,925
|
|
|
|
|
82.98
|
%
|
____________
*The percentage of common shares was based on the total outstanding shares of 6,493,090 as of March 31, 2013.
GOLDEN OASIS NEW ENERGY GROUP, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE D – SHAREHOLDERS’ EQUITY
Common Stock
Under the Company’s Articles of Incorporation dated May 10, 2010, the Company is authorized to issue 500,000,000 shares of capital stock with a par value of $0.001.
On May 10, 2010, the Company was incorporated in the State of Nevada.
On May 10, 2010, three founders of the Company, Keming Li, Guoling Jin, and Madison Li purchased 5,000,000 shares at $0.005 per share. The proceeds of $ 25,000 were received.
On December 23, 2010, additional 611,500 common shares were issued at $0.01 per share to 31shareholders. The proceeds of $ 6115.00 were received.
On March 31, 2011, 100,000 shares were issued to Michael Williams for legal services at 0.10 per share.
On September 8, 2011, 60,000 common shares were issued at $0.10 per share to six non-affiliated shareholders. The proceeds of $6,000.00 were received.
On June 13, 2012, the Company exchanged $ 67,159 in debt owed to Keming Li for 671,590 shares of common stock at fair market value of $ 0.10 per share. On June 13, 2012, 50,000 shares were issued to Pivo Associates for services at 0.10 per share.
On February 6, 2013, Mr. Keming Li, Ms. Guolin Jin, Ms Madison Li together sold total 5,387,925 shares to Mr. Jian Li. Therefore, as of March 31, 2012, the total 6,493,090 shares were issued and outstanding.
NOTE E– GOING CONCERN
The Company is currently in the development stage and their activities consist solely of corporate formation, raising capital, and attempting to sell products to generate revenues.
There is no guarantee that the Company will be able to raise enough capital or generate revenues to sustain its operations and carry out its business plan. These conditions raise substantial doubt about the Company’s ability to continue as a going concern.
GOLDEN OASIS NEW ENERGY GROUP, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE E – GOING CONCERN (Continued)
The financial statements do not include any adjustments relating to the carrying amounts of recorded assets or the carrying amounts and classification of recorded liabilities that may be required should the Company be unable to continue as a going concern.
As of December 31, 2012 the cash and cash equivalent balance was $ 21,384 and there is cumulative loss of $ 142,771 for the cumulative period from May 10, 2010 (Date of Inception) to December 31, 2012.
The Company’s lack of operating history and financial resources raise substantial doubt about its ability to continue as a going concern. The financial statements do not include adjustments that might result from the outcome of this uncertainty and if the Company is unable to generate significant revenue or secure financing, then the Company may be required to cease or curtail its operations.
NOTE F – CHANGES IN CONTROL OF REGISTRANT
On February 6, 2013, pursuant to an Agreement between Mr. Keming Li, CEO/President and Director of Golden Oasis New Energy Group Inc a Nevada corporation (the “Issuer”), Ms. Guoling Jin, Treasury and Director of Golden Oasis New Energy Group Inc, and Ms. Madison Li (the stockholder), of Golden Oasis New Energy Group Inc, and Mr. Jian Li (the “Purchaser”), Mr. Jian Li became the principal stockholder and Chief Executive Officer and Tzongshyan George Sheu the Vice-president and Chief Financial Officer of the Company.
As a result, a change of control of the Company has taken place, February 6, 2013, whereby said shareholder Mr. Jian Li now owns 5,387,925 of the Company's common stock out of a total of 6,493,090 total common stock outstanding.
Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers; Compensatory Arrangements of Certain Officers.
(a) On February 6, 2013 Mr. Keming Li and Ms. GUOLING JIN, presented to the Board of the Company a letter of resignation whereby they resigned from their positions as officers and directors with the Company, effective at 11:59 A.M. on February 6, 2013. Their resignation was not the result of any disagreements with the Company on any matters relating to the Company’s operations, policies or practices.
GOLDEN OASIS NEW ENERGY GROUP, INC.
NOTES TO FINANCIAL STATEMENTS
NOTE F – CHANGES IN CONTROL OF REGISTRANT (Continued)
Departure of Directors or Principal Officers; Election of Directors; Appointment of Principal Officers; Compensatory Arrangements of Certain Officers. (Continued)
(b) On February 6, 2013, the stockholders of the Company holding a majority in interest of the Company’s voting equity, approved by written consent and the members of the board of directors (the “Board”) of the Company approved by unanimous written consent, (i) the acceptance of resignation of Mr. Keming Li and Ms. GUOLING JIN from their positions as officers and directors of the Company, and (ii) the appointment of Mr. Jain Li as Chief Executive Officer and Director and Mr. Tzongshyan George Sheu as Secretary and Director of the Company.
Golden Oasis New Energy Group, Inc
Exhibit A Operating Expense Details
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cumulative from
May 10, 2010 (Date
of Inception) Through
March 31,
|
|
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
2012
|
|
|
2013
|
|
|
Expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Advertising and Promotion
|
|
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
100
|
|
|
Automobile expense
|
|
|
|
|
$
|
7
|
|
|
$
|
-
|
|
|
$
|
7
|
|
|
$
|
7
|
|
|
Bank Service Charges
|
|
$
|
273
|
|
|
$
|
150
|
|
|
$
|
28
|
|
|
$
|
70
|
|
|
$
|
627
|
|
|
Business Licenses and Permits
|
|
$
|
307
|
|
|
$
|
-
|
|
|
|
|
|
|
$
|
-
|
|
|
$
|
881
|
|
|
Computer and Internet Expense
|
|
|
|
|
|
$
|
419
|
|
|
|
|
|
|
$
|
202
|
|
|
$
|
971
|
|
|
Consulting Fee
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Custom Fees
|
|
|
|
|
|
$
|
300
|
|
|
|
|
|
|
$
|
300
|
|
|
|
|
|
|
Garbage Expense
|
|
$
|
115
|
|
|
$
|
511
|
|
|
|
|
|
|
$
|
115
|
|
|
$
|
1,044
|
|
|
Postage and Delivery
|
|
$
|
276
|
|
|
$
|
-
|
|
|
$
|
25
|
|
|
$
|
-
|
|
|
$
|
491
|
|
|
Professional Fees
|
|
$
|
44,196
|
|
|
$
|
48,448
|
|
|
$
|
4,458
|
|
|
$
|
29,654
|
|
|
$
|
121,543
|
|
|
Registration & License
|
|
$
|
125
|
|
|
|
|
|
|
$
|
125
|
|
|
|
|
|
|
$
|
125
|
|
|
Rent Expenses
|
|
$
|
4,394
|
|
|
$
|
6,854
|
|
|
$
|
600
|
|
|
$
|
2,091
|
|
|
$
|
20,883
|
|
|
Sales Tax Expenses
|
|
|
|
|
|
$
|
-
|
|
|
$
|
83
|
|
|
$
|
-
|
|
|
$
|
94
|
|
|
Utilities
|
|
$
|
166
|
|
|
$
|
1,047
|
|
|
|
|
|
|
$
|
339
|
|
|
$
|
3,500
|
|
|
Website Expense
|
|
$
|
83
|
|
|
$
|
1,750
|
|
|
|
|
|
|
$
|
1,750
|
|
|
$
|
1,834
|
|
|
Total Expense
|
|
$
|
49,935
|
|
|
$
|
59,486
|
|
|
$
|
5,319
|
|
|
$
|
34,528
|
|
|
$
|
152,100
|
|