UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
[X] | Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934: For the quarterly period ended June 30, 2011 |
or
[ ] | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934: For the transition period from _______ to _________ |
Commission file number: 000-10965
ASHERXINO CORPORATION
(Exact name of registrant as specified in its charter)
Delaware | 93-0962072 |
(State or other jurisdiction of incorporation or organization) | (IRS Employer Identification No.) |
5847 San Felipe Street, 17th Floor
Houston, TX 77002
(Address of principal executive offices, including zip code)
713-413-3345
(registrant's principal executive office telephone number)
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 such filing requirements for the past 90 days. Yes [X] No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer [ ] Accelerated filer [ ]
Non-accelerated filer [ ] Smaller reporting company [X]
(Do not check if a smaller reporting company)
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) YES [ ] NO??[X]
APPLICABLE ONLY TO CORPORATE ISSUERS
As of September 15, 2011, 161,582,542 shares of common stock, $0.01 par value, were outstanding.
EXPLANATORY NOTE
The accompanying financial statements and other information included in this Form 10-Q has not been reviewed by our Independent Registered Public Accounting Firm
Table of Contents
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Part I. Financial Information | |
Item 1. Financial Statements | |
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Consolidated Balance Sheets at June 30, 2011 and December 31, 2010 (unaudited) | F-1 |
Consolidated Statements of Expenses for the Three and Six Months Ended June 30, 2011 and 2010 and the Cumulative Period from January 1, 2009 through June 30, 2011 (unaudited) | F-2 |
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Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2011 and 2010 and the Cumulative Period from January 1, 2009 through June 30, 2011 (unaudited) | F-3 |
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Notes to Consolidated Financial Statements (unaudited) | F-4 |
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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations | 5 |
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Item 4T. Controls and Procedures | 8 |
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Part II. Other Information | |
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Item 1. Legal Proceedings | 9 |
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Item 1A. Risk Factors | 9 |
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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 9 |
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Item 6. Exhibits | 9 |
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Signatures | 10 |
Part I Financial Information
Item 1. Financial Statements
ASHERXINO CORPORATION
(An Exploration Stage Company)
CONSOLIDATED BALANCE SHEETS
(Unaudited)
| September 30, | | December 31, | |
| | | | | | | 2011 | | 2010 | |
ASSETS | | | | |
| | | | | | | | | | |
CURRENT ASSET | | | | | | | | | |
Cash | | | | | | | $ 7 | | $ 37,289 | |
| Total current assets | | | | | 7 | | 37,289 | |
| | | | | | | | | | |
OIL and GAS PROPERTIES (full cost method) | | | | | | | |
Unevaluated | | | | | | 53,750 | | 53,750 | |
| | | | | | | | | | |
TOTAL ASSETS | | | | | | $ 53,757 | | $ 91,039 | |
| | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' DEFICIT | | | | |
| | | | | | | | | | |
CURRENT LIABILITIES | | | | | | | | |
Accounts payable and accrued liabilities | | | | 67,321 | | 251,507 | |
Related party payable | | | | | | 1,795 | | 71,924 | |
Advances payable | | | | | | 2,500 | | - | |
Note payable - net of discount | | | | | 35,000 | | 28,758 | |
| Total current liabilities | | | | 376,616 | | 352,189 | |
| | | | | | | | | | |
STOCKHOLDERS' DEFICIT | | | | | | | | |
Common stock, $0.001 par value, 300,000,000 shares authorized, | | | | | |
161,582, 542 and 160,082,542 shares issued and outstanding, respectively | 1,602,700 | | 1,600,825 | |
Additional paid-in capital | | | | | 10,148,196 | | 10,131,321 | |
Deficit accumulated during exploration stage | | | | (9,420,587) | | (9,420,587) | |
Deficit accumulated after entering the development stage | | (2,674,079) | | (2,572,709) | |
| | | | | | | | | | |
| Total stockholders' deficit | | | | (343,770) | | (261,150) | |
| | | | | | | | | | |
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) | | $ 32,846 | | $ 91,039 | |
The accompanying notes are an integral part of these financial statements.
ASHERXINO CORPORATION
(An Exploration Stage Company)
CONSOLIDATED STATEMENTS OF EXPENSES
(Unaudited)
| | | | | | | | | | | | January 1, 2009 |
| | | | Six Months | | Six Months | | Nine Months | | Nine Months | | (Inception) |
| | | | Ended | | Ended | | Ended | | Ended | | Through |
| | | | September 30, 2011 | | September 30, 2010 | | September 30, 2011 | | September 30, 2010 | | September 30, 2011 |
| | | | | | | | | | | | |
OPERATING EXPENSES | | | | | | | | | | | |
Professional fees | | | 17,850 | | 31,139 | | 35,081 | | 31,139 | | 242,353 |
Consulting | | | | - | | 13,500 | | 23,750 | | 13,500 | | 2,008,962 |
Travel | | | | 2,592 | | 8,099 | | 10,698 | | 8,099 | | 111,729 |
General and administrative | | | 2,226 | | 52,738 | | 22,622 | | 52,738 | | 257,423 |
TOTAL OPERATING EXPENSES | | 22,668 | | 105,476 | | 92,151 | | 105,476 | | 2,620,467 |
| | | | | | | | | | | | |
NET LOSS BEFORE OTHER EXPENSE | | (22,668) | | (56,481) | | (92,151) | | (56,481) | | (2,620,467) |
OTHER INCOME (EXPENSE) | | | | | | | | | | |
Net realized loss from sale of trading securities | | - | | - | | - | | - | | (1,958) |
Loss on derivative warrant liability | | - | | - | | - | | - | | (20,250) |
Interest expense | | | (4,396) | | (3,743) | | (9,219) | | (3,743) | | (31,404) |
Total other expense | | | (4,396) | | (3,743) | | (9,219) | | |