x
|
QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
o
|
TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Delaware
|
26-0250418
|
(State or other jurisdiction
of
incorporation or
organization)
|
(I.R.S. Employer Identification
No.)
|
35246 US
Highway 19 North,
#311
Palm Harbor, Florida
|
34684
|
(Address of principal executive
offices)
|
(Zip
Code)
|
(Former name,
former address, if changed since last report)
|
Tel: (727)
934-9593
|
(Issuer’s telephone
number)
|
PART I - FINANCIAL
INFORMATION
|
|
Item 1. Unaudited financial
statements
|
|
Item 2. Management’s
Discussion and Analysis or Plan of Operation
|
|
Item 3. Controls and
Procedures
|
|
PART II -OTHER
INFORMATION
|
|
Item 1. Legal
Proceedings.
|
|
Item 2. Unregistered Sales
of Equity Securities and Use of Proceeds.
|
|
Item 3. Defaults Upon Senior
Securities.
|
|
Item 4. Submission of
Matters to a Vote of Security Holders.
|
|
Item 5. Other
Information.
|
|
Item 6.
Exhibits
|
|
SIGNATURES
|
·
|
Part I, Item
1: Unaudited Financial
Statements
|
·
|
Part I, Item
2: Management's Discussion and Analysis of Financial
Condition and Results of
Operations;
|
·
|
Part II, Item
6: Exhibits and Reports of Form
8-K
|
Financial
Statements:
|
|
Balance Sheet
(unaudited)
|
F-1
|
Statements of Operations
(unaudited)
|
F-2
|
Statements of Changes in
Stockholders’ Equity (unaudited)
|
F-3
|
Statements of Cash Flows
(unaudited)
|
F-4
|
Notes to Unaudited Financial
Statements (unaudited)
|
F-5 through
F-9
|
MagneGas
Corporation
|
||||
(A Development Stage Enterprise)
|
||||
BALANCE
SHEET
|
||||
As of September 30,
2007
|
||||
(unaudited)
|
||||
RESTATED
|
||||
ASSETS
|
||||
Current
Assets:
|
||||
Cash
|
$ | 78,295 | ||
Prepaid
Expenses
|
2,000 | |||
Total
current assets
|
80,295 | |||
TOTAL
ASSETS
|
$ | 80,295 | ||
LIABILITIES AND STOCKHOLDERS’
EQUITY
|
||||
CURRENT
LIABILITIES
|
||||
Accrued
Expense
|
$ | 4,000 | ||
Advance from Related
Party
|
2,000 | |||
TOTAL CURRENT
LIABILITIES
|
$ | 6,000 | ||
STOCKHOLDERS’
EQUITY
|
||||
Preferred Stock - Par value
$0.001;
|
||||
Authorized:
10,000,000
|
||||
2,000 issued and
outstanding
|
$ | 2 | ||
Common Stock - Par value
$0.001;
|
||||
Authorized:
100,000,000
|
||||
Issued and
Outstanding: 67,494,000
|
67,494 | |||
Additional Paid-In
Capital
|
277,104 | |||
Accumulated Deficit during
development stage
|
$ | (270,305 | ) | |
Total Stockholders’
Equity
|
74,295 | |||
TOTAL LIABILITIES AND
STOCKHOLDERS’ EQUITY
|
$ | 80,295 | ||
MagneGas
Corporation.
|
||||||||||||||||||||
(A Development Stage Enterprise)
|
||||||||||||||||||||
STATEMENT OF
OPERATIONS
|
||||||||||||||||||||
For the Three and Nine months
ended September 30, 2007 and 2006
|
||||||||||||||||||||
And for the period December 9,
2005 (date of inception) to September 30, 2007
|
||||||||||||||||||||
(unaudited)
|
||||||||||||||||||||
Date of Inception
through
September 30,
2008
RESTATED
|
||||||||||||||||||||
Three months
September
30,
|
Nine months
September
30,
|
|||||||||||||||||||
2007
RESTATED
|
2006
|
2007
RESTATED
|
2006
|
|||||||||||||||||
REVENUE
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||
COST OF
SERVICES
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
GROSS PROFIT OR
(LOSS)
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
GENERAL AND ADMINISTRATIVE
EXPENSES
|
10,768
|
250
|
268,455
|
800
|
270,305
|
|||||||||||||||
NET
LOSS
|
$
|
(10,768
|
)
|
$
|
(250
|
)
|
$
|
(268,455
|
)
|
$
|
(800
|
)
|
$
|
(270,305
|
)
|
|||||
Loss per share, basic and
diluted
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
$
|
(0.01
|
)
|
$
|
(0.01
|
)
|
$
|
(0.02
|
)
|
|||||
Basic and diluted weighted
average number of common shares
|
67,439,286
|
100,000
|
36,257,864
|
100,000
|
16,756,662
|
|||||||||||||||
MagneGas
Corporation
|
|||||||||||||||||||||||||||
(A Development Stage Enterprise)
|
|||||||||||||||||||||||||||
STATEMENT OF CHANGES IN
STOCKHOLDERS’ EQUITY
|
|||||||||||||||||||||||||||
For the period December 9, 2005
(date of inception) to September 30, 2007
|
|||||||||||||||||||||||||||
RESTATED
|
|||||||||||||||||||||||||||
Accumulated
Deficit During
Development
Stage
|
|||||||||||||||||||||||||||
Additional
|
|||||||||||||||||||||||||||
Preferred
|
Common
|
Paid in
|
Total
|
||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Equity
|
||||||||||||||||||||||
Stock issued on acceptance of
incorporation expenses, December 9,
2005
|
100,000
|
$
|
100
|
$
|
100
|
||||||||||||||||||||||
Net
loss
|
(400
|
)
|
(400
|
)
|
|||||||||||||||||||||||
Balance at December 31,
2005
|
-
|
-
|
100,000
|
100
|
-
|
(400
|
)
|
(300
|
)
|
||||||||||||||||||
Net
loss
|
(1,450
|
)
|
(1,450
|
)
|
|||||||||||||||||||||||
Balance at December 31,
2006
|
-
|
-
|
100,000
|
100
|
-
|
(1,850
|
)
|
(1,750
|
)
|
||||||||||||||||||
Acquisition of controlling
interest, payment of liabilities (unaudited)
|
2,500
|
2,500
|
|||||||||||||||||||||||||
Issuance of preferred stock to
founders, valued at par, April 2, 2007
(unaudited)
|
2,000
|
2
|
(2
|
)
|
-
|
||||||||||||||||||||||
Issuance of common stock to
founders, valued at par, May 12, 2007
(unaudited)
|
67,052,000
|
67,052
|
(67,052
|
)
|
-
|
||||||||||||||||||||||
Issuance of stock for services,
valued at $1 per share, May 12, 2007
(unaudited)
|
245,000
|
245
|
244,755
|
245,000
|
|||||||||||||||||||||||
Stock issued for cash
(unaudited):
|
|||||||||||||||||||||||||||
June 12, 2007;
$1 per share
|
30,000
|
30
|
29,970
|
30,000
|
|||||||||||||||||||||||
August 28, 2007;
$1 per share
|
13,000
|
13
|
12,987
|
13,000
|
|||||||||||||||||||||||
September 17,2007;
$1 per share
|
54,000
|
54
|
53,946
|
54,000
|
|||||||||||||||||||||||
Net loss, through September
30, 2007 (unaudited)
|
(
268,455
|
)
|
(268,455
|
)
|
|||||||||||||||||||||||
Balance at September 30,
2007 (unaudited)
|
2,000
|
$
|
2
|
67,494,000
|
$
|
67,494
|
$
|
277,104
|
$
|
(270,305
|
)
|
$
|
74,295
|
||||||||||||||
MagneGas
Corporation
|
||||||||||||
(A Development Stage Enterprise)
|
||||||||||||
STATEMENTS OF CASH
FLOWS
|
||||||||||||
For the Nine months ended
September 30, 2007 and 2006,
|
||||||||||||
And for the period December 9,
2005 (date of inception) to September 30, 2007
|
||||||||||||
(unaudited)
|
||||||||||||
9 months
|
Inception to
Date
|
|||||||||||
09/30/07
RESTATED
|
09/30/06
|
09/30/07
RESTATED
|
||||||||||
CASH FLOWS FROM OPERATING
ACTIVITIES
|
||||||||||||
Net
loss
|
$
|
(268,455
|
)
|
$
|
(800
|
)
|
$
|
(270,305
|
)
|
|||
Adjustments to reconcile net
loss to cash used in operating activities:
|
||||||||||||
Stock
compensation
|
245,000
|
245,100
|
||||||||||
Changes in operating
assets:
|
||||||||||||
Increase in
Prepaid Expenses
|
(2,000
|
)
|
(2,000
|
)
|
||||||||
Increase in
Accrued Expenses
|
2,250
|
800
|
4,000
|
|||||||||
Total adjustments to net
loss
|
245,250
|
800
|
247,100
|
|||||||||
Net cash (used in) operating
activities
|
(23,205
|
)
|
-
|
(23,205
|
)
|
|||||||
CASH FLOWS FROM INVESTING
ACTIVITIES
|
||||||||||||
Acquisition of reporting
entity
|
-
|
-
|
-
|
|||||||||
Net cash flows (used in)
investing activities
|
-
|
-
|
-
|
|||||||||
CASH FLOWS FROM
FINANCING ACTIVITIES
|
||||||||||||
Advance from Related
Party
|
2,000
|
-
|
2,000
|
|||||||||
Capital contribution;
liability payment at acquisition
|
2,500
|
2,500
|
||||||||||
Proceeds from issuance of
common stock
|
97,000
|
-
|
97,000
|
|||||||||
Net cash flows provided by
investing activities
|
101,500
|
-
|
101,500
|
|||||||||
Net increase in
cash
|
78,295
|
-
|
78,295
|
|||||||||
Cash - beginning
balance
|
||||||||||||
CASH BALANCE - END OF
PERIOD
|
$
|
78,295
|
$
|
-
|
$
|
78,295
|
||||||
MagneGas
Corporation
|
||||||||
(A Development Stage Enterprise)
|
||||||||
BALANCE
SHEET
|
||||||||
As of September 30,
2007
|
||||||||
(unaudited)
|
||||||||
As
Reported
|
Adjustments
|
|||||||
ASSETS
|
||||||||
Current
Assets:
|
||||||||
Cash
|
$ | 78,295 | $ | - | ||||
Prepaid
Expense
|
2,000 | |||||||
Total Current
Assets
|
80,295 | - | ||||||
Goodwill
|
30,000 | (30,000 | ) | |||||
TOTAL
ASSETS
|
$ | 110,295 | $ | (30,000 | ) | |||
LIABILITIES AND
STOCKHOLDER'S EQUITY
|
||||||||
Current
Liabilities:
|
||||||||
Accrued
Expenses
|
$ | 4,000 | $ | - | ||||
Advance from Related
Party
|
2,000 | |||||||
TOTAL
LIABILITIES
|
6,000 | - | ||||||
STOCKHOLDERS'
EQUITY
|
||||||||
Preferred Stock - Par value
$0.001;
|
||||||||
Authorized:
10,000,000
|
||||||||
2,000 issued and
outstanding
|
2 | |||||||
Common Stock - Par value
$0.001;
|
||||||||
Authorized:
100,000,000
|
||||||||
Issued and Outstanding:
67,494,000
|
67,494 | |||||||
Additional Paid-In
Capital
|
304,504 | (27,400 | ) | |||||
Accumulated Deficit during
development stage
|
(267,705 | ) | (2,600 | ) | ||||
TOTAL STOCKHOLDERS'
EQUITY
|
104,295 | (30,000 | ) | |||||
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
$ | 110,295 | $ | (30,000 | ) |
MagneGas
Corporation
|
||||||||||||
(A Development Stage Enterprise)
|
||||||||||||
STATEMENT OF
OPERATIONS
|
||||||||||||
(unaudited)
|
||||||||||||
For the Three Months Ended September 30,
2007
|
||||||||||||
As
Reported
|
Adjustments
|
Restated
|
||||||||||
Revenue
|
$ | - | $ | - | $ | - | ||||||
Cost of
Services
|
- | - | - | |||||||||
Gross Profit or
(Loss)
|
- | - | - | |||||||||
General and Administrative
Expesens
|
10,768 | 10,768 | ||||||||||
Net Loss
|
$ | (10,768 | ) | $ | - | $ | (10,768 | ) | ||||
Loss per share, basic and
diluted
|
$ | (0.00 | ) | $ | (0.00 | ) | ||||||
Basic and diluted weighted average
number
|
||||||||||||
of common
shares
|
67,439,286 | 67,439,286 | ||||||||||
MagneGas
Corporation
|
||||||||||||
(A Development Stage Enterprise)
|
||||||||||||
STATEMENT OF
OPERATIONS
|
||||||||||||
(unaudited)
|
||||||||||||
For the Nine Months Ended September 30,
2007
|
||||||||||||
As
Reported
|
Adjustments
|
Restated
|
||||||||||
Revenue
|
$ | - | $ | - | $ | - | ||||||
Cost of
Services
|
- | - | - | |||||||||
Gross Profit or
(Loss)
|
- | - | - | |||||||||
General and Administrative
Expesens
|
268,455 | 268,455 | ||||||||||
Net Loss
|
$ | (268,455 | ) | $ | - | $ | (268,455 | ) | ||||
Loss per share, basic and
diluted
|
$ | (0.01 | ) | $ | (0.01 | ) | ||||||
Basic and diluted weighted average
number
|
||||||||||||
number of common
shares
|
36,257,864 | 36,257,864 | ||||||||||
MagneGas
Corporation
|
||||||||||||
(A Development Stage Enterprise)
|
||||||||||||
STATEMENT OF
OPERATIONS
|
||||||||||||
(unaudited)
|
||||||||||||
December 9, 2005 (date of
inception)
|
||||||||||||
through September 30, 2007
|
||||||||||||
As
Reported
|
Adjustments
|
Restated
|
||||||||||
Revenue
|
$ | - | $ | - | $ | - | ||||||
Cost of
Services
|
- | - | - | |||||||||
Gross Profit or
(Loss)
|
- | - | - | |||||||||
General and Administrative
Expesens
|
270,305 | 270,305 | ||||||||||
Net Loss
|
$ | (270,305 | ) | $ | - | $ | (270,305 | ) | ||||
Loss per share, basic and
diluted
|
$ | (0.02 | ) | $ | (0.02 | ) | ||||||
Basic and diluted weighted average
number
|
||||||||||||
number of common
shares
|
16,756,662 | 16,756,662 | ||||||||||
MagneGas
Corporation
|
||||||||||||
(A Development Stage Enterprise)
|
||||||||||||
STATEMENTS OF CASH
FLOWS
|
||||||||||||
(unaudited)
|
||||||||||||
For
the Nine Months Ended September 30, 2007
|
||||||||||||
As
Reported
|
Adjustments
|
Restated
|
||||||||||
CASH FLOWS FROM OPERATING
ACTIVITIES
|
||||||||||||
Net loss
|
$ | (268,455 | ) | $ | - | $ | (268,455 | ) | ||||
Adjustments
to reconcile net loss to cash used in operating activities
|
||||||||||||
Stock
compensation
|
245,000 | 245,000 | ||||||||||
Changes in operating
assets:
|
||||||||||||
Increase
in Prepaid Expenses
|
(2,000 | ) | (2,000 | ) | ||||||||
Increase in Accrued Expenses
|
2,250 | 2,250 | ||||||||||
Total adjustments to net
loss
|
245,250 | - | 245,250 | |||||||||
Net cash (used in) operating
activities
|
(23,205 | ) | - | (23,205 | ) | |||||||
CASH FLOWS FROM INVESTING
ACTIVITIES
|
||||||||||||
Net cash flows (used in) investing
activities
|
- | - | - | |||||||||
CASH FLOWS FROM FINANCING
ACTIVITIES
|
||||||||||||
Advance from Related
Party
|
2,000 | 2,000 | ||||||||||
Capital contributions; liability
payment at acquisition
|
2,500 | 2,500 | ||||||||||
Proceeds from capital
contributions
|
97,000 | 97,000 | ||||||||||
Net cash flows provided by
investing activities
|
101,500 | - | 101,500 | |||||||||
Net increase in
cash
|
78,295 | - | 78,295 | |||||||||
Cash - beginning
balance
|
- | - | ||||||||||
CASH BALANCE - END OF
PERIOD
|
$ | 78,295 | $ | - | $ | 78,295 | ||||||
Supplemental disclosure of cash
flow information and non cash
|
||||||||||||
investing
and financing activities:
|
||||||||||||
MagneGas
Corporation
|
||||||||||||
(A Development Stage Enterprise)
|
||||||||||||
STATEMENTS OF CASH
FLOWS
|
||||||||||||
(unaudited)
|
||||||||||||
December 9, 2005 (date of
inception)
|
||||||||||||
through
September 30, 2007
|
||||||||||||
As
Reported
|
Adjustments
|
Restated
|
||||||||||
CASH FLOWS FROM OPERATING
ACTIVITIES
|
||||||||||||
Net loss
|
$ | (270,305 | ) | $ | - | $ | (270,305 | ) | ||||
Adjustments
to reconcile net loss to cash used in operating activities
|
||||||||||||
Stock
compensation
|
245,100 | 245,100 | ||||||||||
Changes in operating
assets:
|
||||||||||||
Increase
in Prepaid Expenses
|
(2,000 | ) | (2,000 | ) | ||||||||
Increase in Accrued Expenses
|
4,000 | 4,000 | ||||||||||
Total adjustments to net
loss
|
247,100 | - | 247,100 | |||||||||
Net cash (used in) operating
activities
|
(23,205 | ) | - | (23,205 | ) | |||||||
CASH FLOWS FROM INVESTING
ACTIVITIES
|
||||||||||||
Net cash flows (used in) investing
activities
|
- | - | - | |||||||||
CASH FLOWS FROM FINANCING
ACTIVITIES
|
||||||||||||
Advance from Related
Party
|
2,000 | 2,000 | ||||||||||
Capital contributions; liability
payment at acquisition
|
2,500 | 2,500 | ||||||||||
Proceeds from capital
contributions
|
97,000 | 97,000 | ||||||||||
Net cash flows provided by
investing activities
|
101,500 | - | 101,500 | |||||||||
Net increase in
cash
|
78,295 | - | 78,295 | |||||||||
Cash - beginning
balance
|
- | - | ||||||||||
CASH BALANCE - END OF
PERIOD
|
$ | 78,295 | $ | - | $ | 78,295 | ||||||
Supplemental disclosure of cash
flow information and non cash
|
||||||||||||
investing
and financing activities:
|
||||||||||||
(a)
|
Reports on Form 8-K and
Form 8K-A - 8K Change in Auditor,
etc.
|
||
|
(b)
|
Exhibits
|
|
Exhibit
Number
|
Exhibit
Title
|
||
3.1
|
Certificate of
Incorporation*
|
||
3.2
|
By-Laws
*
|
||
31.1
|
Certification of Dr. Ruggero Santilli pursuant to 18 U.S.C. Section
1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
||
31.2
|
Certification of Luisa Ingargiola, pursuant to 18 U.S.C. Section
1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
||
32.1
|
Certification of Dr. Rugerro Maria Santilli pursuant to 18 U.S.C. Section
1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
||
32.2
|
Certification of Luisa Ingargiola, pursuant to 18 U.S.C. Section
1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
||
*Incorporated by reference to
Exhibit 3.2 to our registration statement on Form 10-SB filed on April 3,
2006 (File no: 000-51883)
|
MagneGas
Corporation
|
|
By:
|
/s/Dr. Ruggero Maria Santilli
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Dr. Ruggero Maria Santilli
Chief Executive
Officer
|
|
Dated:
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September 19,
2008
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