Since we are considered a “shell company” under applicable securities laws, we did not generate any revenues during the fiscal years ended December 31, 2011 or 2010. We anticipate that we will incur substantial losses for the foreseeable future and our ability to generate any revenues during the next 12 months is uncertain.
During the fiscal year ended December 31, 2011 we incurred total expenses of $172,807, including $127,086 in general and administrative expenses and $45,721 in consulting fees. During the fiscal year ended December 31, 2010 we incurred total expenses of $33,302, including $31,834 in general and administrative expenses and $1,468 in interest expenses. Our general and administrative expenses consisted primarily of 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.
During the fiscal year ended December 31, 2011 we incurred a net loss of $172,807 and a net loss per share of $0.01. During the fiscal year ended December 31, 2010 we incurred a net loss of $33,302 and a net loss per share of $0.09.
Liquidity is the ability of a company to generate funds to support its current and future operations, satisfy its obligations and otherwise operate on an ongoing basis. As of December 31, 2011 we had $41,787 in cash and total assets, $9,999 in current liabilities, a working capital surplus of $31,788 and an accumulated deficit of $3,300,513.
During the fiscal year ended December 31, 2011 we spent $226,947 on operating activities and our accounts payable and accrued expenses decreased by $12,353. During the fiscal year ended December 31, 2010 we spent $30,174 on operating activities, and our accounts payable and accrued expenses increased by $3,128. The majority of our spending on operating activities during these years was attributable to our net loss for the periods.
During the fiscal year ended December 31, 2011 we received $226,788 from financing activities, including $249,100 from the sale of 47,000,000 shares of our common stock and $8,021 due to our majority stockholder, as offset by the payment of $30,033 and notes payable. During the fiscal year ended December 31, 2010 we received $30,333 from financing activities, all of which was in the form of proceeds from notes payable.
Our financial statements for the fiscal year ended December 31, 2011 have been prepared on a going concern basis and contain an explanatory paragraph in Note 2 of the notes to our audited financial statements which identifies issues that raise substantial doubt about our ability to continue as a going concern. Our financial statements do not include any adjustments that might result from the outcome of this uncertainty.
No interest was paid during the years ended December 31, 2011 and 2010. No income taxes were paid in any period presented.
The Company has not taken a tax position that, if challenged, would have a material effect on the financial statements for the years ended December 31 2011 and 2010, or during the prior three years applicable under FASB ASC 740. The Company did not recognize any adjustment to the liability for uncertain tax position and therefore did not record any adjustment to the beginning balance of accumulated deficit on the balance sheet.
During the period from April 18, 2010 to August 24, 2010, the Company either received cash or had expenses paid on its behalf by an unrelated third party investor in the amount of $30,333. The notes payable were due on demand and bear interest at the rate of 18% per year. The notes were paid in April, 2011.