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| GLTV.OB > SEC Filings for GLTV.OB > Form 10-K on 14-Jul-2009 | All Recent SEC Filings |
14-Jul-2009
Annual Report
PLAN OF OPERATION
We are currently in the process of reorganizing our business and are seeking and evaluating alternative business opportunities, particularly in reforestation and carbon credit trading areas. As a result, we are unable to provide an accurate estimate of our financial requirements for the next twelve months. However, as at March 31, 2009, we currently have a working capital deficit of $82,255 and will need substantial financing in the near term in order to meet our current obligations as they become due and to meet our ongoing reporting obligations under the Securities and Exchange Act (the "Exchange Act"). In addition, if our management is successful in identifying a suitable business opportunity for us to pursue, we will likely need significantly more financing in order to pursue the new business opportunity. Currently, we do not have any financial arrangements in place and there is no assurance that we will be able to obtain sufficient financing on terms acceptable to us, if at all.
RESULTS OF OPERATIONS
Summary of Year End Results
Year Ended Year Ended Percentage
March 31, 2009 March 31, 2008 Increase / (Decrease)
Revenue $ - $ - n/a
Expenses (50,990 ) (71,779 ) (29.0 )%
Net Loss $ (50,990 ) $ (71,779 ) (29.0 )%
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Revenue
We have not earned any revenues to date and we do not anticipate earning revenues in the near future. We have no business operations and are presently seeking alternative business opportunities.
Operating Expenses
Our operating expenses for the years ended March 31, 2009 and 2008 are outlined
in the table below:
Year Year Percentage
Ended Ended
March March Increase /
31, 2009 31, 2008 (Decrease)
Accounting $ 18,820 $ 17,380 8.3%
Bank Charges 574 228 151.8%
Consulting - 1,750 (100)%
Exploration and Development - 2,485 (100)%
Interest - 4,096 (100)%
Legal 15,639 26,382 (40.7)%
Office Administration 9,000 10,500 (14.3)%
Regulatory Expenses 3,904 5,893 (33.8)%
Rent 2,400 2,400 n/a
Telephone 653 347 88.2%
Travel and Entertainment - 318 (100)%
Total Expenses $ 50,990 $ 71,779 (29.0)%
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The decreases in expenses are primarily a result of the decrease in consulting, legal and office and administration expenses.
Accounting and legal expenses primarily relate to costs in connection with meeting our reporting requirements under the Securities Exchange Act of 1934 (the "Exchange Act").
Office administrative expenses consist of management consultant fees of $750 per month paid to Mr. Thomson for his services.
LIQUIDITY AND CAPITAL RESOURCES
Working Capital
Percentage
At March At March Increase /
31, 2009 31, 2008 (Decrease)
Current Assets $ 6,338 $ 3,278 93.3%
Current Liabilities (88,593 ) (34,543 ) 156.5%
Working Capital Surplus (Deficit) $ (82,255 ) $ (31,265 ) 163.1%
Cash Flows
Year Ended Year Ended
March 31, 2009 March 31, 2008
Cash Flows used in Operating Activities $ (35,740 ) $ (69,792 )
Cash Flows used in Investing Activities - -
Cash Flows from Financing Activities 39,000 49,000
Net Increase in Cash During Period $ 3,260 $ (20,792 )
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The increase in our working capital deficit at March 31, 2009 from our year ended March 31, 2008 is primarily due to: (i) an increase in accounts payable due to our lack of capital to meet our ongoing operating costs; and (ii) the fact that our sole source of financing was in the form of short term loans totaling $39,000 from stockholders. These loans are non-interest bearing and due on demand.
Since our inception, we have used our common stock to raise money for our property acquisition, for corporate expenses and to repay outstanding indebtedness. We have not attained profitable operations and our ability to pursue any future plan of operation is dependent upon our ability to obtain financing. For these reasons, our auditors stated in their report to our audited financial statements included in this Annual Report for the year ended March 31, 2009 that there is substantial doubt that we will be able to continue as a going concern.
On June 2, 2009, our sole director approved a private placement offering of up to 5,000,000 units at a price of $0.02 US per unit, with each unit consisting of one share of our common stock and one share purchase warrant. Each share purchase warrant entitles the holder to purchase an additional share of our common stock at a price of $0.05 US per share exercisable for a period of two years from the date the units are issued. The private placement offering will be made to persons who are not "U.S. Persons" as defined in Regulation S. There is no assurance that the private placement offering or any part of it will be completed.
We anticipate continuing to rely on equity sales of our common shares in order to continue to fund our business operations. Issuances of additional shares will result in dilution to our existing shareholders. There is no assurance that we will achieve any additional sales of our equity securities or arrange for debt or other financing to fund our business.
OFF-BALANCE SHEET ARRANGEMENTS
We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.
CRITICAL ACCOUNTING POLICIES
The preparation of financial statements in conformity with generally accepted accounting principles requires our management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Our management routinely makes judgments and estimates about the effects of matters that are inherently uncertain.
We have identified certain accounting policies, described below, that are most important to the portrayal of our current financial condition and results of operations. Our significant accounting policies are disclosed in the notes to our audited financial statements included in this Annual Report on Form 10-K.
Pro Forma Compensation Expense
We account for options and restricted stock granted to employees and directors in accordance with the fair value method of SFAS No. 123, Accounting for Stock-Based Compensation ("SFAS No. 123"), as amended by SFAS No. 148, Accounting for Stock-Based Compensation Transition and Disclosure an amendment of FASB Statement No. 123 and related interpretations. As such, compensation expense is recorded on stock option and restricted stock grants based on the fair value of the options or restricted stock granted, which is estimated on the date of grant using the Black-Scholes option-pricing model for stock options granted, and is recognized on a straight-line basis over the vesting period. No stock options have been issued by us.
Use of Estimates
Management uses estimates and assumptions in preparing our financial statements in accordance with generally accepted accounting principles. Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and expenses.
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