x
|
QUARTERLY
REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
1934
for
the quarterly period ended September 30, 2009
|
o
|
TRANSITION
REPORT UNDER SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
for
the transition period from __________ to
__________
|
Nevada
|
26-0768064
|
|
(State
or other jurisdiction of incorporation or
organization)
|
(I.R.S.
Employer Identification No.)
|
|
No.
1 Pingbei Road 2,
Nanping
Science & Technology Industrial Park,
Zhuhai
City, Guangdong Province,
The
People’s Republic of China
|
519060
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Large
accelerated filer
|
o
|
Accelerated
filer
|
o
|
||
Non-accelerated
filer
|
o
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Smaller
reporting
company
|
x
|
PART I - FINANCIAL
INFORMATION
|
||
Item
1. Financial Statements
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1
|
|
Item
2. Management’s Discussion and Analysis of Financial Condition and Results
of Operations
|
11
|
|
Item
3.Quantitative and Qualitative Disclosures About Market
Risk
|
14
|
|
Item
4T. Controls and Procedures
|
14
|
|
PART
II - OTHER INFORMATION
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||
Item
1. Legal Proceedings
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15
|
|
Item
1A. Risk Factors
|
15
|
|
Item
2. Unregistered Sales of Equity Securities and Use of
Proceeds
|
15
|
|
Item
3. Defaults Upon Senior Securities
|
15
|
|
Item
4. Submission of Matters to a Vote of Security Holders
|
15
|
|
Item
5. Other Information
|
15
|
|
Item
6. Exhibits
|
15
|
|
SIGNATURES
|
16
|
September
30, 2009
|
December
31, 2008
|
|||||||
(Unaudited)
|
(Audited)
|
|||||||
ASSETS
|
||||||||
CURRENT
ASSETS:
|
||||||||
Cash
|
$ | 1,477,053 | $ | 259,025 | ||||
Prepaid
expenses and other current assets
|
14,016 | 26,666 | ||||||
TOTAL
CURRENT ASSETS
|
1,491,069 | 285,691 | ||||||
Deposits
for future deliveries of equipment
|
791,113 | - | ||||||
Land
use right, net of accumulated amortization of $8,809 and $0,
respectively
|
414,034 | 423,420 | ||||||
Property
and equipment, net of accumulated depreciation of $1,121 and $0,
respectively
|
739,105 | - | ||||||
TOTAL
ASSETS
|
$ | 3,435,321 | $ | 709,111 | ||||
LIABILITIES
AND STOCKHOLDERS' DEFICIENCY
|
||||||||
CURRENT
LIABILITIES:
|
||||||||
Accounts
payable and accrued expenses
|
$ | 68,390 | $ | 42,450 | ||||
Due
to related parties-current portion
|
3,632,302 | 749,298 | ||||||
TOTAL
CURRENT LIABILITIES
|
3,700,692 | 791,748 | ||||||
Due
to related parties- non-current portion
|
22,485 | 22,485 | ||||||
TOTAL
LIABILITIES
|
3,723,177 | 814,233 | ||||||
STOCKHOLDERS'
DEFICIENCY:
|
||||||||
Preferred
stock, $0.0001 par value,
|
||||||||
10,000,000
shares authorized,
|
||||||||
0
shares issued and outstanding
|
- | - | ||||||
Common
stock, $0.0001 par value,
|
||||||||
90,000,000
shares authorized,
|
||||||||
22,574,974
shares issued and outstanding
|
2,257 | 2,257 | ||||||
Additional
paid-in capital
|
493,092 | 416,273 | ||||||
Accumulated
deficit
|
(792,390 | ) | (503,904 | ) | ||||
Accumulated
other comprehensive income (loss)
|
9,185 | (19,748 | ) | |||||
TOTAL
STOCKHOLDERS' DEFICIENCY
|
(287,856 | ) | (105,122 | ) | ||||
TOTAL
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
|
$ | 3,435,321 | $ | 709,111 |
Three
Months
|
Three
Months
|
Nine
Months
|
Nine
Months
|
|||||||||||||
ended
|
ended
|
ended
|
ended
|
|||||||||||||
September
30,
2009
|
September
30,
2008
|
September
30,
2009
|
September
30,
2008
|
|||||||||||||
SALES
|
$ | 31,609 | $ | - | $ | 691,660 | $ | - | ||||||||
COSTS
AND EXPENSES:
|
||||||||||||||||
Cost
of goods sold
|
29,989 | - | 619,449 | - | ||||||||||||
Selling,
general and administrative expenses
|
120,418 | 157,863 | 282,615 | 361,940 | ||||||||||||
TOTAL
COSTS AND EXPENSES
|
150,407 | 157,863 | 902,064 | 361,940 | ||||||||||||
LOSS
FROM OPERATIONS
|
(118,798 | ) | (157,863 | ) | (210,404 | ) | (361,940 | ) | ||||||||
Interest
expense-net
|
(55,869 | ) | (7,244 | ) | (75,674 | ) | (13,244 | ) | ||||||||
Gain
(loss) on foreign currency transactions
|
11 | - | (2,408 | ) | - | |||||||||||
NET
LOSS
|
(174,656 | ) | (165,107 | ) | (288,486 | ) | (375,184 | ) | ||||||||
OTHER
COMPREHENSIVE INCOME (LOSS):
|
||||||||||||||||
Foreign
currency translation adjustment
|
45 | 8,221 | 28,934 | 13,923 | ||||||||||||
COMPREHENSIVE
LOSS
|
$ | (174,611 | ) | $ | (156,886 | ) | $ | (259,552 | ) | $ | (361,261 | ) | ||||
Loss
per common share -basic and diluted
|
$ | (0.01 | ) | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | ||||
Weighted
average number of shares outstanding
|
||||||||||||||||
-basic
and diluted
|
22,574,974 | 20,962,408 | 22,574,974 | 20,659,672 |
COMMON
|
ADDITIONAL
|
OTHER
|
||||||||||||||||||||||
STOCK
|
PAID-IN
|
ACCUMULATED
|
COMPREHENSIVE
|
|||||||||||||||||||||
SHARES
|
AMOUNT
|
CAPITAL
|
DEFICIT
|
INCOME
|
TOTAL
|
|||||||||||||||||||
BALANCE
- DECEMBER 31, 2008
|
22,574,974 | $ | 2,257 | $ | 416,273 | $ | (503,904 | ) | $ | (19,748 | ) | $ | (105,122 | ) | ||||||||||
Imputed
interest on loans from related parties
|
- | - | 76,819 | - | - | 76,819 | ||||||||||||||||||
Foreign
currency translation adjustment
|
- | - | - | - | 28,933 | 28,933 | ||||||||||||||||||
Net
loss
|
- | - | - | (288,486 | ) | - | (288,486 | ) | ||||||||||||||||
BALANCE
- September 30, 2009
|
22,574,974 | $ | 2,257 | $ | 493,092 | $ | (792,390 | ) | $ | 9,185 | $ | (287,856 | ) |
Nine
Months
|
Nine
Months
|
|||||||
Ended
|
Ended
|
|||||||
September 30, 2009
|
September 30, 2008
|
|||||||
OPERATING
ACTIVITIES:
|
||||||||
Net
loss
|
$ | (288,486 | ) | $ | (375,184 | ) | ||
Adjustments
to reconcile net loss to net
|
||||||||
cash
used in operating activities:
|
||||||||
Imputed
interest on loans from related parties
|
76,819 | 13,244 | ||||||
Stock
issued for services
|
- | 9,424 | ||||||
Depreciation
of property and equipment
|
1,121 | - | ||||||
Amortization
of land use right
|
8,809 | - | ||||||
Changes
in operating assets and liabilities:
|
||||||||
Prepaid
expenses and other current assets
|
12,650 | (4,998 | ) | |||||
Accounts
payable and accrued expenses
|
25,940 | (11,594 | ) | |||||
NET
CASH USED IN OPERATING ACTIVITIES
|
(163,147 | ) | (369,108 | ) | ||||
INVESTING
ACTIVITIES:
|
||||||||
Deposits
for future deliveries of equipment
|
(791,113 | ) | - | |||||
Property
and equipment additions
|
(740,226 | ) | - | |||||
NET
CASH USED IN INVESTING ACTIVITIES
|
(1,531,339 | ) | - | |||||
FINANCING
ACTIVITIES:
|
||||||||
Sale
of common stock
|
- | 3,000 | ||||||
Loans
from related parties
|
2,883,004 | 416,818 | ||||||
NET
CASH PROVIDED BY FINANCING ACTIVITIES
|
2,883,004 | 419,818 | ||||||
EFFECT
OF EXCHANGE RATE CHANGES ON CASH
|
29,510 | 13,923 | ||||||
INCREASE
IN CASH
|
1,218,028 | 64,633 | ||||||
CASH
- BEGINNING OF PERIOD
|
259,025 | 91,184 | ||||||
CASH
- END OF PERIOD
|
$ | 1,477,053 | $ | 155,817 | ||||
Supplemental
disclosures of cash flow information:
|
||||||||
Interest
paid
|
$ | - | $ | - | ||||
Income
taxes paid
|
$ | - | $ | - |
Building
construction in progress
|
$ | 439,330 | ||
Production
equipment
|
263,700 | |||
Office
equipment
|
6,060 | |||
Automobile
|
31,136 | |||
Total
|
740,226 | |||
Less
accumulated depreciation
|
1,121 | |||
Property
and equipment- net
|
$ | 739,105 |
September
30,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Due
to Company’s chairman and chief executive officer, non-interest
bearing, due on demand (interest imputed at 5%)
|
$ | 1,635,059 | $ | 698,836 | ||||
Due
to Zhuhai Yuemao Laser Facility Engineering Co., Ltd. (“ Yuemao
Laser”) , a PRC company controlled by the Company’s chairman and chief
executive officer, non-interest bearing, due on demand (interest
imputed at 5%)
|
1,997,243 | 50,462 | ||||||
Due
to Company’s chairman and chief executive officer pursuant to loan
agreement dated November 2, 2008, interest at 5%, due November 1,
2013
|
22,485 | 22,485 | ||||||
Total
|
3,654,787 | 771,783 | ||||||
Current
portion
|
(3,632,302 | ) | (749,298 | ) | ||||
Non-current
portion
|
$ | 22,485 | $ | 22,485 |
Exhibit No.
|
|
Title of Document
|
31.1
|
Certification
of Principal Executive Officer pursuant to Rule 13a-14 and Rule 15d-14(a),
promulgated under the Securities and Exchange Act of 1934, as
amended
|
|
31.2
|
Certification
of Principal Financial Officer pursuant to Rule 13a-14 and Rule 15d 14(a),
promulgated under the Securities and Exchange Act of 1934, as
amended
|
|
32.1
|
Certification
pursuant to Section 906 of Sarbanes Oxley Act of 2002 (Chief Executive
Officer)
|
|
32.2
|
Certification
pursuant to Section 906 of Sarbanes Oxley Act of 2002 (Chief Financial
Officer)
|
Universal Solar Technology,
Inc.
|
|||
Date:
November 13, 2009
|
By:
|
/s/
Wensheng Chen
|
|
Wensheng
Chen
|
|||
Chief
Executive Officer
|
|||
By:
|
/s/
Ling Chen
|
||
Ling
Chen
Chief
Financial Officer
(Principal
Financial and Accounting
Officer)
|