During the fiscal year ended December 31, 2013 we incurred total expenses of $28,808, all of which were general and administrative expenses. During the fiscal year ended December 31, 2012 we incurred total expenses of $97,147, including $91,237 in general and administrative expenses and $5,910 in consulting fees paid to evaluate certain business opportunities we were considering. 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, 2013 we incurred a net loss of $28,808 and a net loss per share of $0.00. During the fiscal year ended December 31, 2012 we incurred a net loss of $91,147 and a net loss per share of $0.00.
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, 2013 we had $1,669 in total assets, the entire amount consisting of a trust account balance on deposit with our professional advisors, $95,836 in total liabilities, a working capital deficit of $94,167 and an accumulated deficit of $3,426,468.
During the fiscal year ended December 31, 2013 we received $31,774 from financing activities, all of which was in the form of shareholder loans. During the fiscal year ended December 31, 2012 we received $49,958 from financing activities, all of which was also in the form of shareholder loans.
Our financial statements for the fiscal year ended December 31, 2013 have been prepared on a going concern basis and contain an explanatory paragraph in Note 2 of the notes to such 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.
We have no significant off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to stockholders.
We have audited the accompanying balance sheets of CNK Global Inc. as of December 31, 2013 and 2012, and the related statements of operations, changes in stockholders’ equity (deficit) and cash flows for the years then ended. These financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
The accompanying financial statements have been prepared assuming that the entity will continue as a going concern. As discussed in Note 2 to the financial statements, the Company’s lack of cash, losses, negative working capital, and shareholders’ deficit raise substantial doubt about its ability to continue as a going concern. Management’s plans in regard to these matters are also described in Note 2. The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
The accompanying financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America. In the opinion of management all adjustments considered necessary for a fair presentation have been included. As a result of the discontinuation and dissolution of the Company’s subsidiary, the Company currently has no operations and is considered a “shell company” under Federal securities laws. The Company intends to acquire assets or shares of an entity actively engaged in a business generating revenues in exchange for the Company’s securities. Prior to April 16, 2012, the Company’s name was American Life Holding Company, Inc. On April 16, 2012 the name was changed to CNK Global Inc.
The Company accounts for income taxes under Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740 “Income Taxes”. Under the asset and liability method of FASB ASC 740, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Under FASB ASC 740, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period the enactment occurs. A valuation allowance is provided for certain deferred tax assets if it is more likely than not that the Company will not realize tax assets through future operations.
Basic income per share is calculated as income available to common shareholders divided by the weighted average number of common shares outstanding during the period. Diluted income per share is calculated using the “if converted” method for convertible securities and the “treasury stock” method for options and warrants. For the years ended December 31, 2013 and 2012, all securities convertible into common shares were anti-dilutive.
The following methods and assumptions were used to estimate the fair value of financial instruments for which it is practicable to estimate value. Cash in trust account is carried at cost, which is a reasonable estimate of fair value.
Income tax benefit (expense) attributable to income (loss) before income taxes differed from the amounts computed by applying the United States of America federal tax rate of 34% to income (loss) before income taxes as a result of the following:
Deferred taxes are determined between the financial statement and tax bases of assets and liabilities as measured by the enacted tax rates, which are expected to be in effect when these differences reverse.
Management continuously estimates the realizability of its deferred tax assets based on its assessment of the sufficiency of future revenue streams. Due to the “shell” status of the Company, future revenue streams are uncertain. Additionally, the IRS imposes limitations on the use of loss carry-forwards if the Company incurs a change in control.
The Company has not complied with United States (U.S.) Federal and State tax compliance requirements as it relates to filing Federal and State tax returns, Federal Report of Foreign Bank and Financial Accounts and the Information Return of a 25% Foreign-Owned U.S. Corporation for the years ending December 31, 2013, 2012 and 2011. Penalties for non-compliance may be material.
There are no other known tax positions that, if challenged, would have a material effect on the financial statements for the years ended December 31, 2013 and 2012, 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.
The Company’s authorized capital stock consists of 100,000,000 shares of common stock, $.001 par value per share, of which 47,391,449 shares are issued and outstanding and 5,000,000 shares of preferred stock, $.001 par value per share, of which no shares are designated.