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<head><title>Filed by Ched Corporate Solutions - www.chedcorp.com - 1-888-567-CHED (2433) - Sanborn Resources Ltd. - Form 10-Q</title> </head> <body style="FONT-SIZE:10pt; FONT-FAMILY:Times New Roman; COLOR:#000000; MARGIN-TOP:0px"> <p style=MARGIN:0px align=center><br></p> <p style="MARGIN-BOTTOM:12px; MARGIN-TOP:0px"><br></p> <p style=MARGIN:0px align=center><b>UNITED STATES</b></p> <p style=MARGIN:0px align=center><b>SECURITIES AND EXCHANGE COMMISSION</b></p> <p style=MARGIN:0px align=center><b>Washington, D.C. 20549</b></p> <p style=MARGIN:0px><br></p> <p style="FONT-SIZE:14pt; MARGIN:0px" align=center><b>FORM 10-Q</b></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px align=center>(Mark One)</p> <p style="FONT-FAMILY:Wingdings; MARGIN:0px" align=center><b>x </b><font style="FONT-FAMILY:Times New Roman"><b>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font><font style="FONT-FAMILY:Times New Roman">&nbsp;</font></p> <p style=MARGIN:0px align=center>&nbsp;</p> <p style=MARGIN:0px align=center>For the quarterly period ended <u>September 30, 2014</u></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px align=center><b>OR</b></p> <p style=MARGIN:0px align=center>&nbsp;</p> <p style="FONT-FAMILY:Wingdings; MARGIN:0px" align=center><b>o </b><font style="FONT-FAMILY:Times New Roman"><b>TRANSITIONAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934</b></font></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px align=center>For the transition period from ___________ to _____________</p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px align=center><u>Commission file number 333-177209</u></p> <p style=MARGIN:0px><br></p> <p style="FONT-SIZE:18pt; MARGIN:0px" align=center><b><u>SANBORN RESOURCES LTD.</u></b></p> <p style=MARGIN:0px align=center>(Name of Registrant as specified in its charter)</p> <p style=MARGIN:0px><br></p> <table bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0 align=center> <tr style=FONT-SIZE:0px> <td width=327> <td width=13> <td width=211> <td width=63 /> </tr><tr> <td width=327 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=center><u>Delaware</u></p> <p style=MARGIN:0px align=center>(State or Other Jurisdiction of Incorporation or Organization)</p></td> <td width=13 style=MARGIN-TOP:0px> <p style=MARGIN:0px>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p></td> <td width=211 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px align=center><u>&nbsp;45-2400399</u></p> <p style=MARGIN:0px align=center>&nbsp;(IRS Employer Identification Number)</p></td> <td width=63 style=MARGIN-TOP:0px> <p style=MARGIN:0px>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</p></td></tr></table> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px align=center>777 South Flagler Drive</p> <p style=MARGIN:0px align=center>Suite 800 - West Tower</p> <p style=MARGIN:0px align=center><u>West Palm Beach, FL 33401</u></p> <p style=MARGIN:0px align=center>(Address of principal executive office)</p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px align=center><u>Phone number: (561) 515-6161</u></p> <p style=MARGIN:0px align=center>(Registrant<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#146;</font>s telephone number)</p> <p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px align=center>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&nbsp;<font style=FONT-FAMILY:Wingdings>x</font><font style=FONT-FAMILY:Wingdings> </font>No&nbsp;<font style=FONT-FAMILY:Wingdings>o</font></p> <p style=MARGIN:0px align=center>&nbsp;</p> <p style=MARGIN:0px align=center>Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (&#167;232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes&nbsp;<font style=FONT-FAMILY:Wingdings>x</font> No&nbsp;<font style=FONT-FAMILY:Wingdings>o</font></p> <p style=MARGIN:0px align=center>&nbsp;</p> <p style=MARGIN:0px align=center>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 <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>large accelerated filer<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font>, <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>accelerated filer<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> and <font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#147;</font></font>smaller reporting company<font style="FONT-FAMILY:Arial Unicode MS,Arial"><font style="FONT-FAMILY:Arial Unicode MS,Arial">&#148;</font></font> in Rule 12b-2 of the Exchange Act. (Check one):</p> <p style=MARGIN:0px align=center>&nbsp;</p> <p style=MARGIN:0px align=center><font style=FONT-SIZE:10pt>Large accelerated filer <font face=Wingdings>o</font> Accelerated filer <font face=Wingdings>o</font> Non-accelerated filer <font face=Wingdings>o</font> Smaller reporting company<strong> </strong><font face=Wingdings>x</font></font></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=center><font style=FONT-SIZE:10pt>(Do not check if a smaller reporting company)</font><br></p> <p style="MARGIN-BOTTOM:4px; MARGIN-TOP:0px" align=center>Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes&nbsp;<font style=FONT-FAMILY:Wingdings>x</font><font style=FONT-FAMILY:Wingdings> </font>No&nbsp;<font style=FONT-FAMILY:Wingdings>o</font></p> <p style=MARGIN:0px align=center><br></p> <p style=MARGIN:0px align=center>As of November 17, 2014, 42,674,381 shares of Common Stock, par value $0.0001 per share, were issued and outstanding.</p> <p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px align=center><b><u>TABLE OF CONTENTS</u></b></p> <p style=MARGIN:0px><br></p> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td width=63> <td> <td width=32 /> </tr><tr> <td width=63 style=MARGIN-TOP:0px> <p style=MARGIN:0px><br></p></td> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><br></p></td> <td width=32 style=MARGIN-TOP:0px> <p style=MARGIN:0px><br></p></td></tr> <tr> <td width=63 style=MARGIN-TOP:0px> <p style=MARGIN:0px>&nbsp;</p></td> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px>&nbsp;</p></td> <td width=32 style=MARGIN-TOP:0px> <p style=MARGIN:0px>&nbsp;</p></td></tr> <tr> <td width=591 colspan=2 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px><b>PART I <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#150;</font> FINANCIAL INFORMATION</b></p></td> <td width=32 style="BORDER-BOTTOM:#000000 2px solid; MARGIN-TOP:0px" valign=top> <p style="PADDING-BOTTOM:0px; PADDING-TOP:0px; PADDING-LEFT:0px; MARGIN:0px; PADDING-RIGHT:0px" align=center>Page</p></td></tr> <tr> <td width=63 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td width=32 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px>ITEM 1</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top> <p style=MARGIN:0px>Financial Statements</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px align=center>3</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px>ITEM 2</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top> <p style=MARGIN:0px>Management<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#146;</font>s Discussion and Analysis of Financial Condition and Results of Operations.</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px align=center>4</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px>ITEM 3</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top> <p style=MARGIN:0px>Quantitative and Qualitative Disclosures About Market Risk</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px align=center>6</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px>ITEM 4</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top> <p style=MARGIN:0px>Controls and Procedures</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px align=center>6</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td></tr> <tr> <td width=591 colspan=2 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top> <p style=MARGIN:0px><b>PART II <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#150;</font> OTHER INFORMATION</b></p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style="PADDING-BOTTOM:0px; PADDING-TOP:0px; PADDING-LEFT:0px; MARGIN:0px; PADDING-RIGHT:0px">&nbsp;</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px>ITEM 1</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top> <p style=MARGIN:0px>Legal Proceedings</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px align=center>7</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px>ITEM 1A</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top> <p style=MARGIN:0px>Risk Factors</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px align=center>7</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px>ITEM 2</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top> <p style=MARGIN:0px>Unregistered Sales of Equity Securities and Use of Proceeds</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px align=center>7</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px>ITEM 3</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top> <p style=MARGIN:0px>Defaults Upon Senior Securities</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px align=center>7</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px>ITEM 4</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top> <p style=MARGIN:0px>Mine Safety Disclosures</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px align=center>7</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px>ITEM 5</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top> <p style=MARGIN:0px>Other Information</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px align=center>7</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#ffffff" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td></tr> <tr> <td width=63 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px>ITEM 6</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top> <p style=MARGIN:0px>Exhibits</p></td> <td width=32 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#cceeff" valign=top><p style=MARGIN:0px align=center>7</p></td></tr></table> <p style=MARGIN:0px align=center><br></p> <p style="MARGIN-BOTTOM:11px; MARGIN-TOP:0px"><br></p> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-BOTTOM:7px; FONT-SIZE:12pt; MARGIN-TOP:7px" align=center>&nbsp;</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><br></p></td></tr></table> <p style=MARGIN:0px align=center><b><br>FORWARD LOOKING STATEMENTS</b></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px align=justify>This report contains forward-looking statements regarding our business, financial condition, results of operations and prospects. Words such as <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>expects,<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font> <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>anticipates,<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font> <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>intends,<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font> <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>plans,<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font> <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>believes,<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font> <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>seeks,<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font> <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>estimates<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font> and similar expressions or variations of such words are intended to identify forward-looking statements, but are not deemed to represent an all-inclusive means of identifying forward-looking statements as denoted in this report. Additionally, statements concerning future matters are forward-looking statements.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify>Although forward-looking statements in this report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed under the headings <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>Management<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#146;</font>s Discussion and Analysis of Financial Condition and Results of Operations<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font> in our annual report on Form 10-K, in <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>Management<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#146;</font>s Discussion and Analysis of Financial Condition and Results of Operations<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font> in this Form 10-Q and in other reports that we file with the SEC.&nbsp;&nbsp;You are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this report.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify>We file reports with the SEC. The SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including us. You can also read and copy any materials </p> <p style=MARGIN:0px align=justify><br><br></p> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px" align=justify>we file with the SEC at the SEC<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#146;</font>s Public Reference Room at 100 F Street, NE, Washington, DC 20549. You can obtain additional information about the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify>We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this report, except as required by law. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this quarterly report, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects.</p> <p style="MARGIN-BOTTOM:11px; MARGIN-TOP:0px"><br></p> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-BOTTOM:5px; MARGIN-TOP:5px" align=center>2</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><br></p></td></tr></table> <p style="MARGIN-BOTTOM:11px; MARGIN-TOP:0px"><br></p> <p style=MARGIN:0px align=center><b><br>PART I - FINANCIAL INFORMATION</b></p> <p style=MARGIN:0px><br></p> <p style="FONT-SIZE:11pt; MARGIN:0px"><b>Item 1.</b></p> <p style="FONT-SIZE:11pt; MARGIN:0px; TEXT-INDENT:-2px"><b>Financial Statements.</b></p> <p style="FONT-SIZE:11pt; MARGIN:0px; TEXT-INDENT:-2px">&nbsp;</p> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td> <td width=29 /> </tr><tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:6px><br></p></td> <td width=29 style=MARGIN-TOP:0px> <p style="MARGIN-BOTTOM:5px; MARGIN-TOP:5px" align=center><u>Page</u></p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px>Condensed Balance Sheets as at September 30, 2014 (unaudited) and December 31, 2013</p></td> <td width=29 style=MARGIN-TOP:0px> <p style=MARGIN:0px align=center>F-1</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px>Condensed Statements of Operations for the three months and nine months ended September 30, 2014 and 2013 (unaudited)</p></td> <td width=29 style=MARGIN-TOP:0px> <p style=MARGIN:0px align=center>F-2</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px>Condensed Statements of Cash Flows for the&nbsp;nine months ended September 30, 2014 and 2013 (unaudited)</p></td> <td width=29 style=MARGIN-TOP:0px> <p style=MARGIN:0px align=center>F-3</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px>Notes to Unaudited Condensed Financial Statements</p></td> <td width=29 style=MARGIN-TOP:0px> <p style=MARGIN:0px align=center>F-4</p></td></tr></table> <p style="FONT-SIZE:11pt; MARGIN:0px; TEXT-INDENT:-2px">&nbsp;</p> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-BOTTOM:5px; MARGIN-TOP:5px" align=center>3</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><br></p></td></tr></table> <p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px> <table width=100% bordercolor=transparent style="WIDTH:100%; BORDER-COLLAPSE:collapse" cellpadding=0 cellspacing=0> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=7 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center><strong><font size=2>SANBORN RESOURCES, LTD.</font></strong></p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=7 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center><strong><font size=2>CONDENSED BALANCE SHEETS</font></strong></p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=7 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center><font size=2>(unaudited)</font></p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=left><font size=2>ASSETS</font></p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center><font size=2>September 30</font></p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center><font size=2>December 31</font></p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right> <p align=center><font size=2>2014</font></p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right> <p align=center><font size=2>2013</font></p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Current Assets:</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><strong><font size=2>&nbsp;</font></strong></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Cash and cash equivalents</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 873 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17,094 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Total current assets</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 873 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17,094 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=21 style=HEIGHT:15.75pt> <td height=21 colspan=4 style="BORDER-TOP:0px; HEIGHT:15.75pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Total Assets</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 873 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17,094 </font></td></tr> <tr height=21 style=HEIGHT:15.75pt> <td height=21 style="BORDER-TOP:0px; HEIGHT:15.75pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>LIABILITIES AND STOCKHOLDERS' DEFICIT</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right /> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right /> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right /></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Current Liabilities:</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Accounts payable and accrued expenses</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37,500 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20,539 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><strong><font size=2>&nbsp;</font></strong></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Notes payable - related party</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48,600 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp; </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Total Current Liabilities</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 86,100 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20,539 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Stockholders' Deficit:</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Preferred stock, par value $0.0001 per share, 20,000,000 shares</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><strong><font size=2>&nbsp;</font></strong></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>authorized; no shares issued and outstanding at September 30, 2014</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>and December 31, 2013, respectively</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp; </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp; </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><strong><font size=2>&nbsp;</font></strong></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Common stock, par value $0.0001 per share, 1,000,000,000 shares</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>authorized; 42,674,381 and 42,381,281&nbsp; shares issued and&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><strong><font size=2>&nbsp;</font></strong></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>outstanding as of September 30, 2014 and December 31, 2013, respectively</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,267 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 4,238 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Additional paid-in capital</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 167,026 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 152,488 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><strong><font size=2>&nbsp;</font></strong></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Common stock payable</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 7 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp; </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Accumulated deficit</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (256,527)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (160,171)</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Total stockholders' deficit</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (85,227)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (3,445)</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=21 style=HEIGHT:15.75pt> <td height=21 style="BORDER-TOP:0px; HEIGHT:15.75pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font face=Calibri>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Total Liabilities and Stockholders' Deficit</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 873 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17,094 </font></td></tr></table></p> <p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px> <table width=478 bordercolor=transparent style="WIDTH:359pt; BORDER-COLLAPSE:collapse" cellpadding=0 cellspacing=0 align=center> <tr height=20 style=HEIGHT:15pt> <td width=478 height=20 colspan=5 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; WIDTH:359pt; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center><font size=2>The accompanying notes are an integral part of the unaudited financial statements</font></p></td></tr></table></p> <p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-BOTTOM:5px; MARGIN-TOP:5px" align=center>F-1</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><br></p></td></tr></table></p> <p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px> <table width=603 bordercolor=transparent style="WIDTH:453pt; BORDER-COLLAPSE:collapse" cellpadding=0 cellspacing=0 align=center> <tr height=20 style=HEIGHT:15pt> <td width=603 height=20 colspan=7 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; WIDTH:453pt; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center><strong><font size=2>SANBORN RESOURCES, LTD.</font></strong></p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=7 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center><strong><font size=2>CONDENSED STATEMENT OF OPERATIONS</font></strong></p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=7 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center><font size=2>(unaudited)</font></p></td></tr></table></p> <p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px> <table width=100% bordercolor=transparent style="WIDTH:100%; BORDER-COLLAPSE:collapse" cellpadding=0 cellspacing=0> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=2 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center><font size=2>For the Three Months Ended&nbsp;</font></p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td> <td colspan=2 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center><font size=2>For the&nbsp; Nine Months Ended</font></p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td colspan=2 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center><font size=2>&nbsp;September 30,&nbsp;</font></p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td> <td colspan=2 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center><font size=2>September 30,</font></p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right> <p align=center><font size=2>2014</font></p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right> <p align=center><font size=2>2013</font></p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right> <p align=center><font size=2>2014</font></p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right> <p align=center><font size=2>2013</font></p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Revenue</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Cost of goods sold</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Gross profit</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp; </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp; </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Operating Expenses:</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Professional fees</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 600 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,277 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48,189 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 122,426 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Compensation expense</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37,500 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16,600 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37,500 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 46,600 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Mining concession fees</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17,875 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 140,740 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>General and administrative</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 181 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10,855 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10,667 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 60,496 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td colspan=2 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Total operating expenses</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 38,281 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 50,607 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 96,356 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 370,262 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Net loss from operations</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (38,281)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (50,607)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (96,356)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (370,262)</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Other Expenses</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font face=Calibri>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Other income</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp; </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20,506 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 20,506 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><strong><font size=2>&nbsp;</font></strong></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Interest expense</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp; </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (26,586)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (49,402)</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td colspan=2 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Total other expenses</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp; </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (6,080)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (28,896)</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Net loss from continuing operations before</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font face=Calibri>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font face=Calibri>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font face=Calibri>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font face=Calibri>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font face=Calibri>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>provision for income taxes</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (38,281)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (56,687)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (96,356)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (399,158)</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Provision for income taxes</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Loss from continuing operations</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (38,281)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (56,687)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (96,356)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (399,158)</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Unrealized foreign currency translation income (loss)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; -&nbsp;&nbsp; </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 5,760 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (42,818)</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=21 style=HEIGHT:15.75pt> <td height=21 colspan=4 style="BORDER-TOP:0px; HEIGHT:15.75pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Comprehensive income (loss)</font></td> <td style="BORDER-TOP:windowtext 0.5pt solid; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (38,281)</font></td> <td style="BORDER-TOP:windowtext 0.5pt solid; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (107,614)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:windowtext 0.5pt solid; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (96,356)</font></td> <td style="BORDER-TOP:windowtext 0.5pt solid; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (441,976)</font></td></tr> <tr height=21 style=HEIGHT:15.75pt> <td height=21 colspan=4 style="BORDER-TOP:0px; HEIGHT:15.75pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Basic earnings (loss) per common share:</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (0.0009)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (0.0012)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (0.0023)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (0.0032)</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Weighted Average Number of Common Shares</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=21 style=HEIGHT:15.75pt> <td height=21 style="BORDER-TOP:0px; HEIGHT:15.75pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Outstanding - Basic and Diluted</font></td> <td style="BORDER-TOP:windowtext 0.5pt solid; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42,674,381 </font></td> <td style="BORDER-TOP:windowtext 0.5pt solid; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 88,277,322 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:windowtext 0.5pt solid; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 42,674,381 </font></td> <td style="BORDER-TOP:windowtext 0.5pt solid; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 138,295,788 </font></td></tr></table></p> <p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px> <table width=478 bordercolor=transparent style="WIDTH:359pt; BORDER-COLLAPSE:collapse" cellpadding=0 cellspacing=0 align=center> <tr height=20 style=HEIGHT:15pt> <td width=478 height=20 colspan=5 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; WIDTH:359pt; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center><font size=2>The accompanying notes are an integral part of the unaudited financial statements</font></p></td></tr></table></p> <p style=MARGIN:0px>&nbsp;</p> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-BOTTOM:5px; MARGIN-TOP:5px" align=center>F-2</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><br></p></td></tr></table> <p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px> <table width=100% bordercolor=transparent style="WIDTH:100%; BORDER-COLLAPSE:collapse" cellpadding=0 cellspacing=0> <tr height=20 style=HEIGHT:15pt> <td width=502 height=20 colspan=7 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; WIDTH:377pt; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=7 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2> <p align=center><strong><font size=2>SANBORN RESOURCES, LTD.<br></font></strong><strong>CONDENSED STATEMENTS OF CASH FLOWS</strong></font></p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=7 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center><font size=2>(unaudited)</font></p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center>&nbsp;</p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center><font size=2>Nine months ended&nbsp;</font></p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <p align=center><font size=2>September 30,</font></p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right> <p align=center><font size=2>2014</font></p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center>&nbsp;</p></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right> <p align=center><font size=2>2013</font></p></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>CASH FLOWS FROM OPERATING ACTIVITIES:</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Net loss</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp; (96,356)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$ (399,158)</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Adjustments to reconcile net loss to net cash</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp; provided by (used in) by operating activities:</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Depreciation and amortization</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 3,017 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Shares issued for services</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8,000 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Taxes receivable</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 1,840 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Management fees accrued</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 37,500 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Changes in net assets and liabilities:</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td colspan=2 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Prepaid expenses</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 974 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=2 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Accounts payable and accrued expenses</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (13,965)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 116,293 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Net Cash&nbsp; Used in Operating Activities</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (64,821)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp; (277,034)</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>CASH FLOWS FROM INVESTING ACTIVITIES:</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><strong><font size=2>&nbsp;</font></strong></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Issuance of note receivable</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (10,000)</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Payment received on note receivable</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10,000 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><strong><font size=2>&nbsp;</font></strong></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Cash acquired in acquisition</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 10,678 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Cash used in acquisition</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp; (750,265)</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><strong><font size=2>&nbsp;</font></strong></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Net Cash Used in Investing Activities</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp; (739,587)</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>CASH FLOWS FROM FINANCING ACTIVITIES:</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><strong><font size=2>&nbsp;</font></strong></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Proceeds from notes payable</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;&nbsp; 1,015,000 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2><u>Proceeds from notes payable - related party</u></font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48,600 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><strong><font size=2>&nbsp;</font></strong></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Net Cash Provided by Financing Activities</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 48,600 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp; 1,015,000 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><strong><font size=2>&nbsp;</font></strong></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Effect of Exchange Rate Changes on Cash</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (726)</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Net&nbsp; decrease in Cash</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (16,221)</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (2,346)</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Cash - Beginning of Year</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 17,094 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 0.5pt solid; BORDER-LEFT:0px" align=right><font size=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 2,346 </font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=21 style=HEIGHT:15.75pt> <td height=21 colspan=4 style="BORDER-TOP:0px; HEIGHT:15.75pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Cash - End of Year</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 873 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td></tr> <tr height=21 style=HEIGHT:15.75pt> <td height=21 style="BORDER-TOP:0px; HEIGHT:15.75pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 colspan=4 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><strong><font size=2>Supplemental Disclosure of Cash Flow Information:</font></strong></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Cash paid during the period for:</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;</font></td></tr> <tr height=21 style=HEIGHT:15.75pt> <td height=21 style="BORDER-TOP:0px; HEIGHT:15.75pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=2 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Interest</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td></tr> <tr height=22 style=HEIGHT:16.5pt> <td height=22 style="BORDER-TOP:0px; HEIGHT:16.5pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td colspan=2 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Income taxes</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td></tr> <tr height=21 style=HEIGHT:15.75pt> <td height=21 style="BORDER-TOP:0px; HEIGHT:15.75pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=20 style=HEIGHT:15pt> <td height=20 colspan=5 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=left><strong><font size=2>Supplemental Disclosure of Non-Cash Investing and Financing Activities:</font></strong></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=left><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=left><font size=2>&nbsp;</font></td></tr> <tr height=20 style=HEIGHT:15pt> <td height=20 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px" align=right /> </tr><tr height=21 style=HEIGHT:15.75pt> <td height=21 style="BORDER-TOP:0px; HEIGHT:15.75pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Common stock issued for services</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 8,000 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td></tr> <tr height=22 style=HEIGHT:16.5pt> <td height=22 style="BORDER-TOP:0px; HEIGHT:16.5pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"><font size=2>Common stock issued for conversion of accounts payable</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 6,574 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td></tr> <tr height=22 style=HEIGHT:16.5pt> <td height=22 style="BORDER-TOP:0px; HEIGHT:16.5pt; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td colspan=3 style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>Notes payable assumed in connection with sale of subsidiary</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$ 1,065,000 </font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:0px; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff"><font size=2>&nbsp;</font></td> <td style="BORDER-TOP:0px; BORDER-RIGHT:0px; BORDER-BOTTOM:windowtext 2pt double; BORDER-LEFT:0px; BACKGROUND-COLOR:#ccffff" align=right><font size=2>&nbsp;$&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; - </font></td></tr></table></p> <p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px> <table width=478 bordercolor=transparent style="WIDTH:359pt; BORDER-COLLAPSE:collapse" cellpadding=0 cellspacing=0 align=center> <tr height=20 style=HEIGHT:15pt> <td width=478 height=20 colspan=5 style="BORDER-TOP:0px; HEIGHT:15pt; BORDER-RIGHT:0px; WIDTH:359pt; BORDER-BOTTOM:0px; BORDER-LEFT:0px"> <p align=center><font size=2>The accompanying notes are an integral part of the unaudited financial statements</font></p></td></tr></table></p> <p style=MARGIN:0px><br></p> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-BOTTOM:5px; MARGIN-TOP:5px" align=center>F-3</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><br></p></td></tr></table> <p style=MARGIN:0px>&nbsp;</p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=center><b><font style=FONT-SIZE:10pt>SANBORN RESOURCES, LTD.</font></b></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=center><b><font style=FONT-SIZE:10pt>NOTES TO CONDENSED FINANCIAL STATEMENTS</font></b></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=center><b><font style=FONT-SIZE:10pt>(UNAUDITED)</font></b></p> <p style=MARGIN:0px><font style=FONT-SIZE:10pt><br></font></p> <p style=MARGIN:0px><font style=FONT-SIZE:10pt><br></font></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><b><font style=FONT-SIZE:10pt>NOTE 1 &#150; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</font></b></p> <p style=MARGIN:0px align=justify><br></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><u><font style=FONT-SIZE:10pt>Organization</font></u></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>Sanborn Resources, Ltd., (the &#147;Company&#148;), was incorporated under the laws of the State of Delaware on May 17, 2011. The Company&#146;s business was in the mining field and has discontinued its efforts in the mining and mineral business.</font></p> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:10pt><br></font></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><u><font style=FONT-SIZE:10pt>Basis of presentation</font></u></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>The accompanying unaudited condensed interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information.</font></p> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:10pt><br></font></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>The unaudited interim financial statements should be read in conjunction with the Company&#146;s Annual Report on Form 10-K, which contains the audited financial statements and notes thereto, together with the Plan of Operations for the year ended December 31, 2013.</font></p> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:10pt><br></font></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>Certain information or footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted, pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial reporting.&nbsp;&nbsp;Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows.&nbsp;&nbsp;It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation.&nbsp;&nbsp;The interim results for the six months ended June 30, 2014 are not necessarily indicative of results for the full fiscal year.</font></p> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:10pt><br></font></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><u><font style=FONT-SIZE:10pt>Year end</font></u></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>The Company&#146;s year-end is December 31.</font></p> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:10pt><br></font></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><u><font style=FONT-SIZE:10pt>Use of estimates</font></u></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates.</font></p> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:10pt><br></font></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><u><font style=FONT-SIZE:10pt>Cash and cash equivalents</font></u></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The carrying value of these investments approximates fair value.</font></p> <p style=MARGIN:0px align=justify><font style=FONT-SIZE:10pt><br></font></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><u><font style=FONT-SIZE:10pt>Revenue recognition</font></u></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>We recognize revenue when all of the following conditions are satisfied: (1)&nbsp;there is persuasive evidence of an arrangement; (2)&nbsp;the product or service has been provided to the customer; (3)&nbsp;the amount of fees to be paid by the customer is fixed or determinable; and (4)&nbsp;the collection of our fees is probable.</font></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify>&nbsp;</p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><u><font style=FONT-SIZE:10pt>Stock-based compensation</font></u></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards. &nbsp;This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.</font>&nbsp;</p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify>&nbsp;</p> <p style=MARGIN:0px align=justify> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-BOTTOM:5px; MARGIN-TOP:5px" align=center>F-4</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><br></p></td></tr></table><br><br></p> <p style="FONT-SIZE:11pt; PAGE-BREAK-BEFORE:always; MARGIN:0px" align=center><b><font style=FONT-SIZE:10pt>SANBORN RESOURCES, LTD.</font></b></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=center><b><font style=FONT-SIZE:10pt>NOTES TO CONDENSED FINANCIAL STATEMENTS</font></b></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=center><b><font style=FONT-SIZE:10pt>(UNAUDITED)</font></b></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><b><font style=FONT-SIZE:10pt>NOTE 1 &#150; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</font></b></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><u><font style=FONT-SIZE:10pt>Stock-based compensation (continued)</font></u></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50.</font></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><u><font style=FONT-SIZE:10pt>Fair value of financial instruments</font></u></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2014. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, prepaid expenses, bank overdraft and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand.</font></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>Level 1:<b> </b>The preferred inputs to valuation efforts are &#147;quoted prices in active markets for identical assets or liabilities,&#148; with the caveat that the reporting entity must have access to that market. &nbsp;Information at this level is based on direct observations of transactions involving the same assets and liabilities, not assumptions, and thus offers superior reliability. However, relatively few items, especially physical assets, actually trade in active markets.</font></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>Level 2: FASB acknowledged that active markets for identical assets and liabilities are relatively uncommon and, even when they do exist, they may be too thin to provide reliable information. To deal with this shortage of direct data, the board provided a second level of inputs that can be applied in three situations.</font></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>Level 3: If inputs from levels 1 and 2 are not available, FASB acknowledges that fair value measures of many assets and liabilities are less precise. The board describes Level 3 inputs as &#147;unobservable,&#148; and limits their use by saying they &#147;shall be used to measure fair value to the extent that observable inputs are not available.&#148; This category allows &#147;for situations in which there is little, if any, market activity for the asset or liability at the measurement date&#148;. Earlier in the standard, FASB explains that &#147;observable inputs&#148; are gathered from sources other than the reporting company and that they are expected to reflect assumptions made by market participants.</font></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-BOTTOM:5px; MARGIN-TOP:5px" align=center>F-5</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><br></p></td></tr></table><br><br></p></font> <p style="FONT-SIZE:11pt; PAGE-BREAK-BEFORE:always; MARGIN:0px" align=center><b><font style=FONT-SIZE:10pt>SANBORN RESOURCES, LTD.</font></b></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=center><b><font style=FONT-SIZE:10pt>NOTES TO CONDENSED FINANCIAL STATEMENTS</font></b></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=center><b><font style=FONT-SIZE:10pt>(UNAUDITED)</font></b></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><b><font style=FONT-SIZE:10pt>NOTE 1 &#150; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)</font></b></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><u><font style=FONT-SIZE:10pt>Recent pronouncements</font></u></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>On June 10, 2014, the FASB published Accounting Standards Update No. 2014-10 &#147;ASU No. 2014-10&#148;, Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. ASU No. 2014-10 removes the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The amendments also clarify that the guidance in Topic 275, Risks and Uncertainties, is applicable to entities that have not commenced planned principal operations. ASU No. 2014-10 will be applied retrospectively and will be effective for public business entities in interim and annual periods beginning after December 15, 2014. The requirements will be effective for nonpublic business entities for annual periods beginning after December 15, 2014, and interim and annual periods thereafter. However, both public and nonpublic entities will have additional time to adopt the amendments to ASC 810. Early adoption is permitted in all cases. We have applied ASU No. 2014-10 retrospectively by eliminating the inception to date column in our statements of operations and cash flows.</font></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><b><font style=FONT-SIZE:10pt>NOTE 2 &#150; GOING CONCERN</font></b></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify>&nbsp;</p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. The Company incurred a net loss from continuing operations for the nine months ended September 30, 2014 of $96,356. &nbsp;As of September 30, 2014, the accumulated deficit was $256,527. &nbsp;In addition, the Company&#146;s activities during the nine months ended September 30, 2014 have been financially sustained through equity financing and loans from related parties.</font></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify>&nbsp;</p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital from the sale of common stock and, ultimately, the achievement of significant operating revenues. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.</font></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><b><font style=FONT-SIZE:10pt>NOTE 3 &#150;RELATED PARTY TRASACTIONS</font></b></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>During the nine months ended September 30, 2014, the Company received loans from a shareholder of the Company totaling $48,600. &nbsp;The loan is due in one year and has a stated interest rate of 0% per annum. &nbsp;The Company analyzed the imputed interest on this loan and has determined that it is immaterial and no interest has been recorded.</font></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br><br></p></font> <p style="FONT-SIZE:11pt; PAGE-BREAK-BEFORE:always; MARGIN:0px" align=center><b><font style=FONT-SIZE:10pt>SANBORN RESOURCES, LTD.</font></b></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=center><b><font style=FONT-SIZE:10pt>NOTES TO CONDENSED FINANCIAL STATEMENTS</font></b></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=center><b><font style=FONT-SIZE:10pt>(UNAUDITED)</font></b></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><b><font style=FONT-SIZE:10pt>NOTE 4 &#150; STOCKHOLDERS&#146; EQUITY</font></b></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify>&nbsp;</p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>The Company is authorized to issue 20,000,000 shares of its $0.0001 par value preferred stock and 1,000,000,000 shares of its $0.0001 par value common stock.</font></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><b><u><font style=FONT-SIZE:10pt>Common stock</font></u></b></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>In January 2014, the Company issued 93,100 shares of common stock in exchange for the settlement of accounts payable totaling $3,724.</font></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>In January 2014, the Company issued 200,000 shares of common stock in exchange for legal services totaling $8,000.</font></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><font style=FONT-SIZE:10pt>In June 2014, the Company agreed to issue 71,250 shares of common stock in exchange for the settlement of accounts payable totaling $2,850. </font></p><font style=FONT-SIZE:10pt> <p style=MARGIN:0px align=justify><br></p></font> <p style="FONT-SIZE:11pt; MARGIN:0px" align=justify><b><font style=FONT-SIZE:10pt>NOTE 5 &#150; SUBSEQUENT EVENTS</font></b></p> <p style="MARGIN-BOTTOM:6px; FONT-SIZE:12pt; MARGIN-TOP:6px" align=justify><font style=FONT-SIZE:10pt>The Company has evaluated subsequent events through the date the financial statements were issued and has not identified any reportable events. </font></p> <p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px>&nbsp;</p> <p style="MARGIN-BOTTOM:11px; MARGIN-TOP:0px"><br></p> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-BOTTOM:5px; MARGIN-TOP:5px" align=center>F-6</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><br></p></td></tr></table> <p style="FONT-SIZE:11pt; MARGIN:0px">&nbsp;</p> <p style="FONT-SIZE:11pt; MARGIN:0px"><b><font style=FONT-SIZE:10pt>Item 2.</font></b></p> <p style="MARGIN-BOTTOM:10px; FONT-SIZE:11pt; MARGIN-TOP:0px; TEXT-INDENT:-2px"><b><font style=FONT-SIZE:10pt>Management<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#146;</font>s Discussion and Analysis of Financial Condition and Results of Operations.</font></b></p> <p style=MARGIN:0px align=justify><i>The following plan of operation provides information which management believes is relevant to an assessment and understanding of our results of operations and financial condition. The discussion should be read along with our financial statements and notes thereto. This section includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements.&nbsp;These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our predictions.</i></p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><b>Our Business and Recent Events</b><br></p> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px" align=justify>Sanborn Resources, Ltd. was incorporated under the laws of the State of Delaware on May 17, 2011.&nbsp;&nbsp;&nbsp;</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify>On March 4, 2013, we filed an Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to, among other things, (1) effect a one hundred for one (100:1) forward split of our&nbsp;&nbsp;common stock, (2) change the name of the Company to <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>Sanborn Resources, Ltd.<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font> from <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>Universal Tech Corp.<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font> and (iii) change our authorized stock to one billion (1,000,000,000) shares of common stock, par value $0.0001 per share, and twenty million (20,000,000) shares of preferred stock, par value $0.0001 per share. &nbsp;In May of 2013, we cancelled 199,750,000 shares of our common stock owned by James Davidson.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><i>Additional Equity Raises</i></p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify>As of September 30, 2014, we had $873 in cash. &nbsp;As a result, we are investigating alternative business opportunities.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify>During the nine months ended September 30, 2014, the Company received loans from a shareholder of the Company totaling $48,600. &nbsp;The loans are due in one year and have a stated interest rate of 0% per annum. &nbsp;The Company analyzed the <font style=FONT-SIZE:11pt>imputed interest </font>on this loan and has determined that it is immaterial and no interest has been recorded.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><b>Critical Accounting Policies and Estimates</b></p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify>While our significant accounting policies are more fully described in Note 1 to our financial statements for the nine months ended September 30, 2014, we believe that the following accounting policies are the most critical to aid you in fully understanding and evaluating this management discussion and analysis.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify>Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We continually evaluate our estimates, including those related to bad debts, recovery of long-lived assets, income taxes, and the valuation of equity transactions. We base our estimates on historical experience and on various other assumptions that we believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues, expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of the financial statements.</p> <p style=MARGIN:0px><br></p> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-BOTTOM:5px; MARGIN-TOP:5px" align=center>4</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><br></p></td></tr></table><b> <p style=MARGIN:0px align=justify><br>Results of Operations</b></p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify>Our business began on May 17, 2011. We are still in our development stage and have not generated revenues to date in connection with our current mining business.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><i>For the Three and Nine months ended September 30, 2014 and 2013</i></p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify>For the nine months ended September 30, 2014, operating expenses were $96,356, as compared to $370,962 for the nine months ended September 30, 2013. For the three months ended September 30, 2014, operating expenses were $38,281 as compared to $50,607 for the three months ended September 30, 2013. The decrease in operating expenses for the three and nine month periods were primarily attributable to the disposition of the subsidiary and the change in the Company<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#146;</font>s business plan.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify>For the&nbsp;nine months ended&nbsp;September 30, 2014 and 2013, we incurred a net loss of $96,356 and $399,158, respectively.&nbsp; For the&nbsp;three months ended&nbsp;September 30, 2014 and 2013, we incurred a net loss of $38,281 and $56,687, respectively.&nbsp; Our cumulative net loss during the period from May 17, 2011 (inception) through September 30, 2014 was $256,527.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><b>Liquidity and Capital Resources</b></p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify>As of September 30, 2014, our current assets were $873 and our current liabilities were $86,100, resulting in a working capital deficit of $85,227.&nbsp;We have been funding our operations through a related party.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><b>Operating Activities</b><br></p> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px" align=justify>For the nine months ended&nbsp;September 30, 2014, net cash flows used in operating activities was $64,821 and was primarily attributable to our net loss of $96,356 adjusted for the add back by total changes in assets and liabilities of $45,500 due to a decrease in accounts payable of $13,965, stock issued for services of $8,000 and accrued management fees of $37,500. &nbsp;For the nine months ended September 30, 2013, net cash flows provided by operating activities was $277,034 and was primarily attributable to our net loss of $399,158 add back by total changes in assets and liabilities of $122,124.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><b>Investing Activities</b></p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify>Net cash flows used in investing activities were $0 for the nine months ended September 30, 2014. &nbsp;For the nine months ended September 30, 2013 we used $750,265 less $10,678 of a note payable to acquire an acquisition which was subsequently disposed of, in December 2013.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><b>Financing Activities</b></p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify>Net cash flows provided by financing activities were $48,600 for the nine months ended&nbsp;September 30, 2014 resulting from&nbsp;proceeds from notes payable. &nbsp;For the nine months ended&nbsp;September 30, 2013, net cash provided by financing activities was $1,015,000 which was received from proceeds from notes payable.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify>We anticipate that depending on market conditions and our plan of operations, we may incur operating losses in the foreseeable future. Therefore, our auditors have raised substantial doubt about our ability to continue as a going concern in their audit opinion for the year ended December 31, 2013.&nbsp;We estimate that based on current plans and assumptions, that our available cash is insufficient to satisfy our cash requirements for the next 12 months. We presently have no other alternative source of working capital. We may not have sufficient working capital to provide working capital necessary for our ongoing operations and obligations for the next 12 months.&nbsp;As of September 30, 2014, we had $873 available in cash.</p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify><b>Contractual Obligations</b></p> <p style=MARGIN:0px align=justify><br></p> <p style=MARGIN:0px align=justify>We have no off-balance sheet arrangements.</p> <p style=MARGIN:0px align=justify>&nbsp;</p> <p style=MARGIN:0px align=justify><b>Off-Balance Sheet Arrangements</b></p> <p style=MARGIN:0px align=justify><br></p> <p style="MARGIN-BOTTOM:13px; MARGIN-TOP:0px" align=justify><font style=BACKGROUND-COLOR:#ffffff>We have no off-balance sheet arrangements.</font></p> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-BOTTOM:5px; MARGIN-TOP:5px" align=center>5</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><br></p></td></tr></table> <p style=MARGIN:0px><br></p> <p style="FONT-SIZE:11pt; MARGIN:0px"><b><font style=FONT-SIZE:10pt>Item 3. Quantitative and Qualitative Disclosures About Market Risk.</font></b></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px>Not required for smaller reporting companies.</p> <p style=MARGIN:0px><br></p> <p style="FONT-SIZE:11pt; MARGIN:0px"><b><font style=FONT-SIZE:10pt>Item 4. Controls and Procedures</font></b></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><b>Evaluation of Disclosure Controls and Procedures</b></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px>Our disclosure controls and procedures are designed to ensure that information required to be disclosed in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the United States Securities and Exchange Commission. Our principal executive officer and principal financial officer have reviewed the effectiveness of our <font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#147;</font>disclosure controls and procedures<font style="FONT-FAMILY:Arial Unicode MS,Times New Roman">&#148;</font> (as defined in the Securities Exchange Act of 1934 Rules 13a-14(c) and 15d-14(c)) as of the end of the period covered by this report and have concluded that the disclosure controls and procedures are not effective to ensure that material information relating to the Company is recorded, processed, summarized, and reported in a timely manner.</p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><b>Changes in Internal Controls</b></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px>There have been no changes in the Company's internal control over financial reporting during the last quarterly period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.</p> <p style=MARGIN:0px><br></p> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-BOTTOM:5px; MARGIN-TOP:5px" align=center>6</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><br></p></td></tr></table> <p style="FONT-SIZE:11pt; MARGIN:0px" align=center>&nbsp;</p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=center><b><font style=FONT-SIZE:10pt>PART II</font></b></p> <p style="FONT-SIZE:11pt; MARGIN:0px" align=center><b><font style=FONT-SIZE:10pt>OTHER INFORMATION</font></b></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><b>Item 1.</b></p> <p style="MARGIN:0px; TEXT-INDENT:-2px"><b>Legal Proceedings</b></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px>None.</p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><b>Item 2.</b></p> <p style="MARGIN:0px; TEXT-INDENT:-2px"><b>Unregistered Sales of Equity Securities and Use of Proceeds</b></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px>None.</p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><b>Item 3.</b></p> <p style="MARGIN:0px; TEXT-INDENT:-2px"><b>Defaults upon Senior Securities</b></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px>None</p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><b>Item 4.</b></p> <p style="MARGIN:0px; TEXT-INDENT:-2px"><b>Mine Safety Disclosures</b></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px>Not applicable.</p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><b>Item 5.</b></p> <p style="MARGIN:0px; TEXT-INDENT:-2px"><b>Other Information</b></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px>None.</p> <p style=MARGIN:0px>&nbsp;</p> <p style=MARGIN:0px><b>Item 6.</b></p> <p style="MARGIN:0px; TEXT-INDENT:-2px"><b>Exhibits</b></p> <p style=MARGIN:0px><br></p> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td width=96> <td width=24> <td /> </tr><tr> <td width=96 style="BORDER-BOTTOM:#000000 2px solid; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px>Exhibit Number</p></td> <td width=24 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td style="BORDER-BOTTOM:#000000 2px solid; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px>Description</p></td></tr> <tr> <td width=96 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#daeef3" valign=top><p style=MARGIN:0px>31</p></td> <td width=24 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#daeef3" valign=top><p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#daeef3" valign=top> <p style=MARGIN:0px>Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002</p></td></tr> <tr> <td width=96 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>32</p></td> <td width=24 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002</p></td></tr> <tr> <td width=96 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#daeef3" valign=top><p style=MARGIN:0px>101.INS*</p></td> <td width=24 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#daeef3" valign=top><p style=MARGIN:0px>&nbsp;</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#daeef3" valign=top> <p style="FONT-SIZE:11pt; MARGIN:0px">XBRL Instance</p></td></tr> <tr> <td width=96 style=MARGIN-TOP:0px valign=top> <p style="FONT-SIZE:11pt; MARGIN:0px">101.SCH*</p></td> <td width=24 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;</p></td> <td style=MARGIN-TOP:0px valign=top> <p style="FONT-SIZE:11pt; MARGIN:0px">XBRL Taxonomy Extension Schema</p></td></tr> <tr> <td width=96 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#daeef3" valign=top><p style="FONT-SIZE:11pt; MARGIN:0px">101.CAL*</p></td> <td width=24 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#daeef3" valign=top><p style=MARGIN:0px>&nbsp;</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#daeef3" valign=top> <p style="FONT-SIZE:11pt; MARGIN:0px">XBRL Taxonomy Extension Calculations</p></td></tr> <tr> <td width=96 style=MARGIN-TOP:0px valign=top> <p style="FONT-SIZE:11pt; MARGIN:0px">101.DEF*</p></td> <td width=24 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;</p></td> <td style=MARGIN-TOP:0px valign=top> <p style="FONT-SIZE:11pt; MARGIN:0px">XBRL Taxonomy Extension Definitions</p></td></tr> <tr> <td width=96 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#daeef3" valign=top><p style="FONT-SIZE:11pt; MARGIN:0px">101.LAB*</p></td> <td width=24 style="MARGIN-TOP:0px; BACKGROUND-COLOR:#daeef3" valign=top><p style=MARGIN:0px>&nbsp;</p></td> <td style="MARGIN-TOP:0px; BACKGROUND-COLOR:#daeef3" valign=top> <p style="FONT-SIZE:11pt; MARGIN:0px">XBRL Taxonomy Extension Labels</p></td></tr> <tr> <td width=96 style=MARGIN-TOP:0px valign=top> <p style="FONT-SIZE:11pt; MARGIN:0px">101.PRE*</p></td> <td width=24 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;</p></td> <td style=MARGIN-TOP:0px valign=top> <p style="FONT-SIZE:11pt; MARGIN:0px">XBRL Taxonomy Extension Presentation</p></td></tr></table> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px>* &nbsp;XBRL Information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.</p> <p style=MARGIN:0px>&nbsp;</p> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-BOTTOM:5px; MARGIN-TOP:5px" align=center>7</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><br></p></td></tr></table> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px align=center><b>SIGNATURES</b></p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br><br></p> <p style="PAGE-BREAK-BEFORE:always; MARGIN:0px; TEXT-INDENT:48px">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this quarterly report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.</p> <p style=MARGIN:0px><br></p> <p style=MARGIN:0px><br></p> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td> <td width=23> <td width=63> <td width=1> <td width=199> <td width=1> <td width=1> <td width=27> <td width=1> <td width=1 /> </tr><tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px>&nbsp;</p></td> <td width=87 colspan=3 style=MARGIN-TOP:0px> <p style=MARGIN:0px>&nbsp;</p></td> <td width=200 colspan=2 style=MARGIN-TOP:0px> <p style=MARGIN:0px>&nbsp;</p></td> <td width=29 colspan=3 style=MARGIN-TOP:0px> <p style=MARGIN:0px>&nbsp;</p></td> <td colspan=3 style=MARGIN-TOP:0px> <p style="PADDING-BOTTOM:0px; PADDING-TOP:0px; PADDING-LEFT:0px; MARGIN:0px; PADDING-RIGHT:0px">&nbsp;</p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td width=288 colspan=6 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>SANBORN RESOURCES LTD.</p></td> <td width=29 colspan=3 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;</p></td> <td width=23 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;</p></td> <td width=264 colspan=4 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;</p></td> <td width=29 colspan=3 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;</p></td> <td colspan=3 style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; PADDING-TOP:0px; PADDING-LEFT:0px; MARGIN:0px; PADDING-RIGHT:0px">&nbsp;</p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td width=23 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td width=264 colspan=4 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td width=29 colspan=3 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td colspan=3 style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; PADDING-TOP:0px; PADDING-LEFT:0px; MARGIN:0px; PADDING-RIGHT:0px">&nbsp;</p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>Date: November 19, 2014</p></td> <td width=23 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>By:&nbsp;</p></td> <td width=264 colspan=4 style="BORDER-BOTTOM:#000000 1px solid; MARGIN-TOP:0px" valign=top> <p style=MARGIN:0px>/s/ <i>Kristian Andresen</i></p></td> <td width=29 colspan=3 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;&nbsp;</p></td> <td colspan=3 style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; PADDING-TOP:0px; PADDING-LEFT:0px; MARGIN:0px; PADDING-RIGHT:0px">&nbsp;</p></td></tr> <tr> <td style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;</p></td> <td width=23 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;</p></td> <td width=264 colspan=4 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>Name: Kristian Andresen</p> <p style=MARGIN:0px>Chief Executive Officer and Chief Financial Officer (Principal Executive Officer and Principal Financial and Accounting Officer)<font style=FONT-SIZE:9pt>&nbsp;</font></p></td> <td width=29 colspan=3 style=MARGIN-TOP:0px valign=top> <p style=MARGIN:0px>&nbsp;</p></td> <td colspan=3 style=MARGIN-TOP:0px valign=top> <p style="PADDING-BOTTOM:0px; PADDING-TOP:0px; PADDING-LEFT:0px; MARGIN:0px; PADDING-RIGHT:0px">&nbsp;</p></td></tr></table> <p style=MARGIN:0px>&nbsp;</p> <p style="MARGIN-BOTTOM:11px; MARGIN-TOP:0px"><br></p> <table width=100% bordercolor=transparent style="FONT-SIZE:10pt; MARGIN-TOP:0px" cellpadding=0 cellspacing=0> <tr style=FONT-SIZE:0px> <td /> </tr><tr> <td style="BORDER-BOTTOM:#000000 3px solid; MARGIN-TOP:0px"> <p style="MARGIN-BOTTOM:5px; MARGIN-TOP:5px" align=center>8</p></td></tr> <tr> <td style=MARGIN-TOP:0px> <p style=MARGIN:0px><br></p></td></tr></table> <p style="MARGIN-BOTTOM:16px; MARGIN-TOP:0px">&nbsp;</p></body>
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Filed by Ched Corporate Solutions - www.chedcorp.com - 1-888-567-CHED (2433) - Sanborn Resources Ltd. - Form 10-Q
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended
September 30, 2014
OR
o
TRANSITIONAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ___________ to _____________
Commission file number 333-177209
SANBORN RESOURCES LTD.
(Name of Registrant as specified in its charter)
Delaware
(State or Other Jurisdiction of Incorporation or Organization)
45-2400399
(IRS Employer Identification Number)
777 South Flagler Drive
Suite 800 - West Tower
West Palm Beach, FL 33401
(Address of principal executive office)
Phone number: (561) 515-6161
(Registrant
'
s 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
o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes
x
No
o
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
o
Accelerated filer
o
Non-accelerated filer
o
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
x
No
o
As of November 17, 2014, 42,674,381 shares of Common Stock, par value $0.0001 per share, were issued and outstanding.
TABLE OF CONTENTS
PART I
–
FINANCIAL INFORMATION
Page
ITEM 1
Financial Statements
3
ITEM 2
Management
'
s Discussion and Analysis of Financial Condition and Results of Operations.
4
ITEM 3
Quantitative and Qualitative Disclosures About Market Risk
6
ITEM 4
Controls and Procedures
6
PART II
–
OTHER INFORMATION
ITEM 1
Legal Proceedings
7
ITEM 1A
Risk Factors
7
ITEM 2
Unregistered Sales of Equity Securities and Use of Proceeds
7
ITEM 3
Defaults Upon Senior Securities
7
ITEM 4
Mine Safety Disclosures
7
ITEM 5
Other Information
7
ITEM 6
Exhibits
7
FORWARD LOOKING STATEMENTS
This report contains forward-looking statements regarding our business, financial condition, results of operations and prospects. Words such as
"
expects,
"
"
anticipates,
"
"
intends,
"
"
plans,
"
"
believes,
"
"
seeks,
"
"
estimates
"
and similar expressions or variations of such words are intended to identify forward-looking statements, but are not deemed to represent an all-inclusive means of identifying forward-looking statements as denoted in this report. Additionally, statements concerning future matters are forward-looking statements.
Although forward-looking statements in this report reflect the good faith judgment of our management, such statements can only be based on facts and factors currently known by us. Consequently, forward-looking statements are inherently subject to risks and uncertainties and actual results and outcomes may differ materially from the results and outcomes discussed in or anticipated by the forward-looking statements. Factors that could cause or contribute to such differences in results and outcomes include, without limitation, those specifically addressed under the headings
"
Management
'
s Discussion and Analysis of Financial Condition and Results of Operations
"
in our annual report on Form 10-K, in
"
Management
'
s Discussion and Analysis of Financial Condition and Results of Operations
"
in this Form 10-Q and in other reports that we file with the SEC.  You are urged not to place undue reliance on these forward-looking statements, which speak only as of the date of this report.
We file reports with the SEC. The SEC maintains a website (www.sec.gov) that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC, including us. You can also read and copy any materials
we file with the SEC at the SEC
'
s Public Reference Room at 100 F Street, NE, Washington, DC 20549. You can obtain additional information about the operation of the Public Reference Room by calling the SEC at 1-800-SEC-0330.
We undertake no obligation to revise or update any forward-looking statements in order to reflect any event or circumstance that may arise after the date of this report, except as required by law. Readers are urged to carefully review and consider the various disclosures made throughout the entirety of this quarterly report, which are designed to advise interested parties of the risks and factors that may affect our business, financial condition, results of operations and prospects.
2
PART I - FINANCIAL INFORMATION
Item 1.
Financial Statements.
Page
Condensed Balance Sheets as at September 30, 2014 (unaudited) and December 31, 2013
F-1
Condensed Statements of Operations for the three months and nine months ended September 30, 2014 and 2013 (unaudited)
F-2
Condensed Statements of Cash Flows for the nine months ended September 30, 2014 and 2013 (unaudited)
F-3
Notes to Unaudited Condensed Financial Statements
F-4
3
SANBORN RESOURCES, LTD.
CONDENSED BALANCE SHEETS
(unaudited)
ASSETS
September 30
December 31
2014
2013
Current Assets:
Cash and cash equivalents
$                  873
$             17,094
Total current assets
873
17,094
Total Assets
$                  873
$             17,094
LIABILITIES AND STOCKHOLDERS' DEFICIT
Current Liabilities:
Accounts payable and accrued expenses
$             37,500
$             20,539
Notes payable - related party
48,600
-
Total Current Liabilities
86,100
20,539
Stockholders' Deficit:
Preferred stock, par value $0.0001 per share, 20,000,000 shares
authorized; no shares issued and outstanding at September 30, 2014
and December 31, 2013, respectively
-
-
Common stock, par value $0.0001 per share, 1,000,000,000 shares
authorized; 42,674,381 and 42,381,281  shares issued and
outstanding as of September 30, 2014 and December 31, 2013, respectively
4,267
4,238
Additional paid-in capital
167,026
152,488
Common stock payable
7
-
Accumulated deficit
(256,527)
(160,171)
Total stockholders' deficit
(85,227)
(3,445)
Total Liabilities and Stockholders' Deficit
$                  873
$             17,094
The accompanying notes are an integral part of the unaudited financial statements
F-1
SANBORN RESOURCES, LTD.
CONDENSED STATEMENT OF OPERATIONS
(unaudited)
For the Three Months Ended
For the  Nine Months Ended
September 30,
September 30,
2014
2013
2014
2013
Revenue
$                         -
$                         -
$                         -
$                         -
Cost of goods sold
-
-
-
-
Gross profit
-
-
-
-
Operating Expenses:
Professional fees
600
5,277
48,189
122,426
Compensation expense
37,500
16,600
37,500
46,600
Mining concession fees
-
17,875
-
140,740
General and administrative
181
10,855
10,667
60,496
Total operating expenses
38,281
50,607
96,356
370,262
Net loss from operations
(38,281)
(50,607)
(96,356)
(370,262)
Other Expenses
Other income
-
20,506
-
20,506
Interest expense
-
(26,586)
-
(49,402)
Total other expenses
-
(6,080)
-
(28,896)
Net loss from continuing operations before
provision for income taxes
(38,281)
(56,687)
(96,356)
(399,158)
Provision for income taxes
-
-
-
-
Loss from continuing operations
(38,281)
(56,687)
(96,356)
(399,158)
Unrealized foreign currency translation income (loss)
-
5,760
-
(42,818)
Comprehensive income (loss)
$             (38,281)
$           (107,614)
$             (96,356)
$           (441,976)
Basic earnings (loss) per common share:
(0.0009)
(0.0012)
$             (0.0023)
$             (0.0032)
Weighted Average Number of Common Shares
Outstanding - Basic and Diluted
42,674,381
88,277,322
42,674,381
138,295,788
The accompanying notes are an integral part of the unaudited financial statements
F-2
SANBORN RESOURCES, LTD.
CONDENSED STATEMENTS OF CASH FLOWS
(unaudited)
Nine months ended
September 30,
2014
2013
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss
$    (96,356)
$ (399,158)
Adjustments to reconcile net loss to net cash
provided by (used in) by operating activities:
Depreciation and amortization
-
3,017
Shares issued for services
8,000
-
Taxes receivable
-
1,840
Management fees accrued
37,500
-
Changes in net assets and liabilities:
Prepaid expenses
-
974
Accounts payable and accrued expenses
(13,965)
116,293
Net Cash  Used in Operating Activities
(64,821)
(277,034)
CASH FLOWS FROM INVESTING ACTIVITIES:
Issuance of note receivable
-
(10,000)
Payment received on note receivable
-
10,000
Cash acquired in acquisition
-
10,678
Cash used in acquisition
-
(750,265)
Net Cash Used in Investing Activities
-
(739,587)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable
-
1,015,000
Proceeds from notes payable - related party
48,600
-
Net Cash Provided by Financing Activities
48,600
1,015,000
Effect of Exchange Rate Changes on Cash
-
(726)
Net  decrease in Cash
(16,221)
(2,346)
Cash - Beginning of Year
17,094
2,346
Cash - End of Year
$           873
$              -
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:
Interest
$                -
$              -
Income taxes
$                -
$              -
Supplemental Disclosure of Non-Cash Investing and Financing Activities:
Common stock issued for services
$        8,000
$              -
Common stock issued for conversion of accounts payable
$        6,574
$              -
Notes payable assumed in connection with sale of subsidiary
$ 1,065,000
$              -
The accompanying notes are an integral part of the unaudited financial statements
F-3
SANBORN RESOURCES, LTD.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Organization
Sanborn Resources, Ltd., (the "Company"), was incorporated under the laws of the State of Delaware on May 17, 2011. The Company's business was in the mining field and has discontinued its efforts in the mining and mineral business.
Basis of presentation
The accompanying unaudited condensed interim financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information.
The unaudited interim financial statements should be read in conjunction with the Company's Annual Report on Form 10-K, which contains the audited financial statements and notes thereto, together with the Plan of Operations for the year ended December 31, 2013.
Certain information or footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted, pursuant to the rules and regulations of the Securities and Exchange Commission for interim financial reporting.  Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows.  It is management's opinion, however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation.  The interim results for the six months ended June 30, 2014 are not necessarily indicative of results for the full fiscal year.
Year end
The Company's year-end is December 31.
Use of estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ significantly from those estimates.
Cash and cash equivalents
For the purpose of the statements of cash flows, all highly liquid investments with an original maturity of three months or less are considered to be cash equivalents. The carrying value of these investments approximates fair value.
Revenue recognition
We recognize revenue when all of the following conditions are satisfied: (1) there is persuasive evidence of an arrangement; (2) the product or service has been provided to the customer; (3) the amount of fees to be paid by the customer is fixed or determinable; and (4) the collection of our fees is probable.
Stock-based compensation
The Company records stock based compensation in accordance with the guidance in ASC Topic 505 and 718 which requires the Company to recognize expenses related to the fair value of its employee stock option awards.  This eliminates accounting for share-based compensation transactions using the intrinsic value and requires instead that such transactions be accounted for using a fair-value-based method. The Company recognizes the cost of all share-based awards on a graded vesting basis over the vesting period of the award.
F-4
SANBORN RESOURCES, LTD.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Stock-based compensation (continued)
The Company accounts for equity instruments issued in exchange for the receipt of goods or services from other than employees in accordance with FASB ASC 718-10 and the conclusions reached by the FASB ASC 505-50. Costs are measured at the estimated fair market value of the consideration received or the estimated fair value of the equity instruments issued, whichever is more reliably measurable. The value of equity instruments issued for consideration other than employee services is determined on the earliest of a performance commitment or completion of performance by the provider of goods or services as defined by FASB ASC 505-50.
Fair value of financial instruments
Fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management as of June 30, 2014. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, prepaid expenses, bank overdraft and accounts payable. Fair values were assumed to approximate carrying values for cash and payables because they are short term in nature and their carrying amounts approximate fair values or they are payable on demand.
Level 1:
The preferred inputs to valuation efforts are "quoted prices in active markets for identical assets or liabilities," with the caveat that the reporting entity must have access to that market.  Information at this level is based on direct observations of transactions involving the same assets and liabilities, not assumptions, and thus offers superior reliability. However, relatively few items, especially physical assets, actually trade in active markets.
Level 2: FASB acknowledged that active markets for identical assets and liabilities are relatively uncommon and, even when they do exist, they may be too thin to provide reliable information. To deal with this shortage of direct data, the board provided a second level of inputs that can be applied in three situations.
Level 3: If inputs from levels 1 and 2 are not available, FASB acknowledges that fair value measures of many assets and liabilities are less precise. The board describes Level 3 inputs as "unobservable," and limits their use by saying they "shall be used to measure fair value to the extent that observable inputs are not available." This category allows "for situations in which there is little, if any, market activity for the asset or liability at the measurement date". Earlier in the standard, FASB explains that "observable inputs" are gathered from sources other than the reporting company and that they are expected to reflect assumptions made by market participants.
F-5
SANBORN RESOURCES, LTD.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Recent pronouncements
On June 10, 2014, the FASB published Accounting Standards Update No. 2014-10 "ASU No. 2014-10", Development Stage Entities (Topic 915): Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Topic 810, Consolidation. ASU No. 2014-10 removes the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. GAAP. In addition, the amendments eliminate the requirements for development stage entities to (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The amendments also clarify that the guidance in Topic 275, Risks and Uncertainties, is applicable to entities that have not commenced planned principal operations. ASU No. 2014-10 will be applied retrospectively and will be effective for public business entities in interim and annual periods beginning after December 15, 2014. The requirements will be effective for nonpublic business entities for annual periods beginning after December 15, 2014, and interim and annual periods thereafter. However, both public and nonpublic entities will have additional time to adopt the amendments to ASC 810. Early adoption is permitted in all cases. We have applied ASU No. 2014-10 retrospectively by eliminating the inception to date column in our statements of operations and cash flows.
NOTE 2 – GOING CONCERN
The accompanying financial statements have been prepared assuming that the Company will continue as a going concern, which contemplates the recoverability of assets and the satisfaction of liabilities in the normal course of business. The Company incurred a net loss from continuing operations for the nine months ended September 30, 2014 of $96,356.  As of September 30, 2014, the accumulated deficit was $256,527.  In addition, the Company's activities during the nine months ended September 30, 2014 have been financially sustained through equity financing and loans from related parties.
The ability of the Company to continue as a going concern is dependent upon its ability to raise additional capital from the sale of common stock and, ultimately, the achievement of significant operating revenues. These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts, or amounts and classification of liabilities that might result from this uncertainty.
NOTE 3 –RELATED PARTY TRASACTIONS
During the nine months ended September 30, 2014, the Company received loans from a shareholder of the Company totaling $48,600.  The loan is due in one year and has a stated interest rate of 0% per annum.  The Company analyzed the imputed interest on this loan and has determined that it is immaterial and no interest has been recorded.
SANBORN RESOURCES, LTD.
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 4 – STOCKHOLDERS' EQUITY
The Company is authorized to issue 20,000,000 shares of its $0.0001 par value preferred stock and 1,000,000,000 shares of its $0.0001 par value common stock.
Common stock
In January 2014, the Company issued 93,100 shares of common stock in exchange for the settlement of accounts payable totaling $3,724.
In January 2014, the Company issued 200,000 shares of common stock in exchange for legal services totaling $8,000.
In June 2014, the Company agreed to issue 71,250 shares of common stock in exchange for the settlement of accounts payable totaling $2,850.
NOTE 5 – SUBSEQUENT EVENTS
The Company has evaluated subsequent events through the date the financial statements were issued and has not identified any reportable events.
F-6
Item 2.
Management
'
s Discussion and Analysis of Financial Condition and Results of Operations.
The following plan of operation provides information which management believes is relevant to an assessment and understanding of our results of operations and financial condition. The discussion should be read along with our financial statements and notes thereto. This section includes a number of forward-looking statements that reflect our current views with respect to future events and financial performance. Forward-looking statements are often identified by words like believe, expect, estimate, anticipate, intend, project and similar expressions, or words which, by their nature, refer to future events. You should not place undue certainty on these forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our predictions.
Our Business and Recent Events
Sanborn Resources, Ltd. was incorporated under the laws of the State of Delaware on May 17, 2011.
On March 4, 2013, we filed an Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware to, among other things, (1) effect a one hundred for one (100:1) forward split of our  common stock, (2) change the name of the Company to
"
Sanborn Resources, Ltd.
"
from
"
Universal Tech Corp.
"
and (iii) change our authorized stock to one billion (1,000,000,000) shares of common stock, par value $0.0001 per share, and twenty million (20,000,000) shares of preferred stock, par value $0.0001 per share.  In May of 2013, we cancelled 199,750,000 shares of our common stock owned by James Davidson.
Additional Equity Raises
As of September 30, 2014, we had $873 in cash.  As a result, we are investigating alternative business opportunities.
During the nine months ended September 30, 2014, the Company received loans from a shareholder of the Company totaling $48,600.  The loans are due in one year and have a stated interest rate of 0% per annum.  The Company analyzed the
imputed interest
on this loan and has determined that it is immaterial and no interest has been recorded.
Critical Accounting Policies and Estimates
While our significant accounting policies are more fully described in Note 1 to our financial statements for the nine months ended September 30, 2014, we believe that the following accounting policies are the most critical to aid you in fully understanding and evaluating this management discussion and analysis.
Our consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. The preparation of these consolidated financial statements requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. We continually evaluate our estimates, including those related to bad debts, recovery of long-lived assets, income taxes, and the valuation of equity transactions. We base our estimates on historical experience and on various other assumptions that we believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Any future changes to these estimates and assumptions could cause a material change to our reported amounts of revenues, expenses, assets and liabilities. Actual results may differ from these estimates under different assumptions or conditions. We believe the following critical accounting policies affect our more significant judgments and estimates used in the preparation of the financial statements.
4
Results of Operations
Our business began on May 17, 2011. We are still in our development stage and have not generated revenues to date in connection with our current mining business.
For the Three and Nine months ended September 30, 2014 and 2013
For the nine months ended September 30, 2014, operating expenses were $96,356, as compared to $370,962 for the nine months ended September 30, 2013. For the three months ended September 30, 2014, operating expenses were $38,281 as compared to $50,607 for the three months ended September 30, 2013. The decrease in operating expenses for the three and nine month periods were primarily attributable to the disposition of the subsidiary and the change in the Company
'
s business plan.
For the nine months ended September 30, 2014 and 2013, we incurred a net loss of $96,356 and $399,158, respectively.  For the three months ended September 30, 2014 and 2013, we incurred a net loss of $38,281 and $56,687, respectively.  Our cumulative net loss during the period from May 17, 2011 (inception) through September 30, 2014 was $256,527.
Liquidity and Capital Resources
As of September 30, 2014, our current assets were $873 and our current liabilities were $86,100, resulting in a working capital deficit of $85,227. We have been funding our operations through a related party.
Operating Activities
For the nine months ended September 30, 2014, net cash flows used in operating activities was $64,821 and was primarily attributable to our net loss of $96,356 adjusted for the add back by total changes in assets and liabilities of $45,500 due to a decrease in accounts payable of $13,965, stock issued for services of $8,000 and accrued management fees of $37,500.  For the nine months ended September 30, 2013, net cash flows provided by operating activities was $277,034 and was primarily attributable to our net loss of $399,158 add back by total changes in assets and liabilities of $122,124.
Investing Activities
Net cash flows used in investing activities were $0 for the nine months ended September 30, 2014.  For the nine months ended September 30, 2013 we used $750,265 less $10,678 of a note payable to acquire an acquisition which was subsequently disposed of, in December 2013.
Financing Activities
Net cash flows provided by financing activities were $48,600 for the nine months ended September 30, 2014 resulting from proceeds from notes payable.  For the nine months ended September 30, 2013, net cash provided by financing activities was $1,015,000 which was received from proceeds from notes payable.
We anticipate that depending on market conditions and our plan of operations, we may incur operating losses in the foreseeable future. Therefore, our auditors have raised substantial doubt about our ability to continue as a going concern in their audit opinion for the year ended December 31, 2013. We estimate that based on current plans and assumptions, that our available cash is insufficient to satisfy our cash requirements for the next 12 months. We presently have no other alternative source of working capital. We may not have sufficient working capital to provide working capital necessary for our ongoing operations and obligations for the next 12 months. As of September 30, 2014, we had $873 available in cash.
Contractual Obligations
We have no off-balance sheet arrangements.
Off-Balance Sheet Arrangements
We have no off-balance sheet arrangements.
5
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Not required for smaller reporting companies.
Item 4. Controls and Procedures
Evaluation of Disclosure Controls and Procedures
Our disclosure controls and procedures are designed to ensure that information required to be disclosed in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the United States Securities and Exchange Commission. Our principal executive officer and principal financial officer have reviewed the effectiveness of our
"
disclosure controls and procedures
"
(as defined in the Securities Exchange Act of 1934 Rules 13a-14(c) and 15d-14(c)) as of the end of the period covered by this report and have concluded that the disclosure controls and procedures are not effective to ensure that material information relating to the Company is recorded, processed, summarized, and reported in a timely manner.
Changes in Internal Controls
There have been no changes in the Company's internal control over financial reporting during the last quarterly period covered by this report that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.
6
PART II
OTHER INFORMATION
Item 1.
Legal Proceedings
None.
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
None.
Item 3.
Defaults upon Senior Securities
None
Item 4.
Mine Safety Disclosures
Not applicable.
Item 5.
Other Information
None.
Item 6.
Exhibits
Exhibit Number
Description
31
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32
Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS*
XBRL Instance
101.SCH*
XBRL Taxonomy Extension Schema
101.CAL*
XBRL Taxonomy Extension Calculations
101.DEF*
XBRL Taxonomy Extension Definitions
101.LAB*
XBRL Taxonomy Extension Labels
101.PRE*
XBRL Taxonomy Extension Presentation
*  XBRL Information is furnished and not filed or a part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.
7
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this quarterly report on Form 10-Q to be signed on its behalf by the undersigned thereunto duly authorized.
SANBORN RESOURCES LTD.
Date: November 19, 2014
By:
/s/
Kristian Andresen
Name: Kristian Andresen
Chief Executive Officer and Chief Financial Officer (Principal Executive Officer and Principal Financial and Accounting Officer)
8