We currently operate without charge out of space located at 16 Okin Dong Cheongro Gu, Seoul, South Korea, donated by Deukgyun Oh, our officer and director. This space is sufficient for our foreseeable needs, and as of April 2, 2014 we had not entered into any lease agreements regarding it.
The following discussion should be read in conjunction with our audited financial statements, including the notes thereto, appearing elsewhere in this annual report. The discussions of results, causes and trends should not be construed to imply any conclusion that these results or trends will necessarily continue into the future.
Our net loss during each of the foregoing years was entirely attributable to our operating expenses for those years.
During the fiscal year ended December 31, 2013 we spent $31,774 on operating activities, our trust account balance increased by $1,239 and our accounts payable and accrued expenses decreased by $1,727. During the fiscal year ended December 31, 2012 we spent $49,958 on operating activities, our trust account balance decreased by $41,357 and our accounts payable and accrued expenses increased by $5,832. The majority of our spending on operating activities during these years was attributable to costs associated with our reporting obligations under applicable securities laws and our search for a suitable candidate for a business combination.
We did not incur any expenditures on investing activities during the fiscal years ended December 31, 2013 or 2012.
During the fiscal year ended December 31, 2013 our cash position did not change as a result of our operating and financing activities. However, our professional advisors held $1,669 in trust on our behalf as of the end of that period.
Our plans for the next 12 months are uncertain due to our current financial condition. However, based on our expenses for the past two fiscal years we anticipate that we will spend approximately $40,000 on general and administrative expenses. Our general and administrative expenses for the year will consist primarily fees for audit, legal, transfer agent and edgarization services, all of which are associated with our reporting requirements under applicable securities laws, and fees associated with our search for a suitable candidate for a business combination.
If our operations and cash flow improve, management believes that we can continue to operate. However, no assurance can be given that management’s actions will result in profitable operations or an improvement in our liquidity situation. The threat of our ability to continue as a going concern will cease to exist only when our revenues have reached a level able to sustain our business operations.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of CNK Global Inc. as of December 31, 2013 and 2012, and the results of its operations and its cash flows for the years then ended in conformity with U.S. generally accepted accounting principles.
The Company’s financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not yet identified ongoing operations and is considered a “shell” company. The lack of cash, losses, negative working capital, and shareholders’ deficit raise substantial doubt about its ability to continue as a going concern.
The trust account consists of funds that have been deposited into the corporate attorney’s escrow account to be used for the benefit of paying certain professional fees the Company may incur. These funds have been contributed by the stockholders and have been accounted for as Due to Stockholder.
There was no interest or taxes paid during the years ended December 31, 2013 and 2012.