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 March 28, 2013 we had not entered into any lease agreements regarding it.
Since we are considered a “shell company” under applicable securities laws, we did not generate any revenues during the fiscal years ended December 31, 2012 or 2011. 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, 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. 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. 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.
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, 2012 we had $430 in total assets, the entire amount consisting of a trust account balance on deposit with our professional advisors, $65,789 in total liabilities, a working capital deficit of $65,359 and an accumulated deficit of $3,397,660.
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. During the fiscal year ended December 31, 2011 we spent $226,947 on operating activities and our trust account balance and accounts payable and accrued expenses increased by $41,787 and $12,353, respectively. 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.
During the fiscal year ended December 31, 2012 we received $49,958 from financing activities, all of which was in the form of shareholder loans. During the fiscal year ended December 31, 2011 we received $226,788 from financing activities, including $249,100 from the sale of our common stock and $8,021 from our majority stockholder, as offset to some extent by our spending of $30,333 on notes payable.
During the fiscal year ended December 31, 2012 our cash position did not change as a result of our operating and financing activities. However, our professional advisors held $430 in trust on our behalf as of the end of that period.
Our ability to continue as a going concern is dependent on our ability to identify and close a business combination with an operating entity. We have not yet identified any such opportunities, and we cannot assure you that we will be able to identify any appropriate business opportunities, or, if identified, that we will be able to close a transaction which is beneficial to our shareholders. In addition, it is possible that if we enter into a business combination the structure of the transaction will not require the approval of our shareholders, and our shareholders may be forced to rely entirely upon the judgment of our management in structuring a transaction which provides some benefit to them.
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of CNK Global Inc. (formerly American Life Holding Company, Inc.) as of December 31, 2012 and 2011, and the results of its operations and its cash flows for the years then ended in accordance with accounting principles generally accepted in the United States of America.
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. The 2012 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 considers cash on hand, deposits in banks, certificates of deposit and investments with original maturities of three months or less to be cash and cash equivalents.
The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position, or cash flow.
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 year ending December 31, 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, 2012 and 2011, 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.
This represents advances by the majority stockholder to pay for certain professional fees and administrative expenses on behalf of the Company.
Information regarding the warrants for the years ended December 31, 2012 and 2011 is as follows: