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
19 #311
Palm
Harbor, FL
|
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)
|
Large
accelerated filer o
|
Non-accelerated
filer o
|
Accelerated
filer o (do not
check if smaller reporting company)
|
Smaller
reporting company x
|
PART
I - FINANCIAL INFORMATION
|
||
Item
1.
|
Unaudited
financial statements
|
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of Operation or
Plan of Operation
|
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
|
Item
4T.
|
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
|
Financial
Statements:
|
|
Balance
Sheets March 31, 2009 (unaudited) and December 31, 2008
(audited)
|
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 Financial Statements (unaudited)
|
F-5
through F-11
|
March
31,
2009
(unaudited)
|
December
31, 2008
(audited)
|
|||||||
ASSETS
|
||||||||
CURRENT
ASSETS
|
||||||||
Cash
|
$ | 17,403 | $ | 160 | ||||
Accounts
Receivable
|
2,973 | 2,398 | ||||||
Inventory,
at cost
|
4,221 | 4,860 | ||||||
Total
Current Assets
|
24,597 | 7,418 | ||||||
Intangible
Assets
|
708,772 | 720,889 | ||||||
TOTAL
ASSETS
|
$ | 733,369 | $ | 728,307 | ||||
LIABILITIES
AND STOCKHOLDER'S DEFICIT
|
||||||||
CURRENT
LIABILITIES
|
||||||||
Accounts
Payable
|
$ | 62,340 | $ | 109,739 | ||||
Accrued
Expenses
|
3,000 | 15,000 | ||||||
Due
to Affiliate
|
10,000 | 10,000 | ||||||
Note
Payable to Related Party
|
196,481 | 89,978 | ||||||
TOTAL
LIABILITIES
|
271,821 | 224,717 | ||||||
STOCKHOLDERS'
EQUITY
|
||||||||
Preferred
Stock: Par $0.001; 900,000,000 authorized; 2,000 issued and
outstanding
|
2 | 2 | ||||||
Common
Stock: Par $0.001; 900,000,000 authorized; 102,163,833 issued and
outstanding
|
101,164 | 99,445 | ||||||
Additional
Paid-In Capital
|
2,003,984 | 1,892,373 | ||||||
Deferred
Compensation
|
(83,333 | ) | (88,333 | ) | ||||
Accumulated
Deficit
|
(1,560,269 | ) | (1,399,897 | ) | ||||
TOTAL
STOCKHOLDERS' EQUITY
|
461,548 | 503,590 | ||||||
TOTAL
LIABILITIES AND EQUITY
|
$ | 733,369 | $ | 728,307 |
MagneGas
Corporation.
|
(A
Development Stage Enterprise)
|
STATEMENTS
OF OPERATIONS
|
For
the three months ended March 31, 2009 and 2008
|
And
for the period December 9, 2005 (date of inception) to March 31,
2009
|
(unaudited)
|
Three
months ended
|
(inception)
to
|
|||||||||||
Mar
31, '09
|
Mar
31, '08
|
Mar
31, '09
|
||||||||||
REVENUE
|
$ | 1,466 | $ | 782 | $ | 13,691 | ||||||
COST
OF GOODS
|
1,259 | 725 | 11,607 | |||||||||
GROSS
PROFIT
|
207 | 57 | 2,085 | |||||||||
OPERATING
EXPENSES:
|
||||||||||||
Advertising
|
10,375 | 1,500 | 18,378 | |||||||||
Selling,
other
|
5,068 | 9,158 | 36,364 | |||||||||
Professional
- technical
|
2,626 | 8,184 | 90,321 | |||||||||
Professional
- legal and accounting
|
1,089 | 44,009 | 330,903 | |||||||||
Rent
and overhead
|
20,060 | 8,364 | 66,111 | |||||||||
Office
and administration
|
971 | 6,957 | 22,662 | |||||||||
Investor
Relations
|
4,050 | - | 8,465 | |||||||||
Stock-based
compensation
|
102,720 | 145,000 | 960,887 | |||||||||
Research
and development
|
- | - | 3,391 | |||||||||
Total
Operating Expenses
|
146,959 | 223,172 | 1,537,482 | |||||||||
OPERATING
LOSS
|
(146,752 | ) | (223,115 | ) | (1,535,397 | ) | ||||||
OTHER
(INCOME) EXPENSE:
|
||||||||||||
Interest
expense
|
1,503 | 210 | 3,194 | |||||||||
Depreciation
and Amortization
|
12,117 | 260 | 18,921 | |||||||||
Sale
of Asset(s)
|
- | - | 2,757 | |||||||||
Total
Other (Income) Expenses
|
13,620 | 470 | 24,872 | |||||||||
NET
LOSS
|
$ | (160,372 | ) | $ | (223,585 | ) | $ | (1,560,269 | ) | |||
Loss
per share, basic and diluted
|
$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.04 | ) | |||
Basic
and diluted weighted average number of common shares
|
99,723,613 | 67,760,654 | 42,476,633 | |||||||||
MagneGas
Corporation
(A
Development Stage Enterprise)
STATEMENT
OF CHANGES IN STOCKHOLDERS’ EQUITY
For
the three months ended March 31, 2009 and for each of the years
from
December
9, 2005 (date of inception) to March 31, 2009
|
|||||||||||||||||||||||||||
Preferred
|
Common
|
Additional
Paid in
|
Prepaid
Consulting Services Paid with Common
|
Accumulated
Deficit During Development
|
Total
|
||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Stock
|
Stage
|
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
|
2,500
|
2,500
|
|||||||||||||||||||||||||
Recapitalization:
Issuance
of preferred stock to founders, valued at par, April 2,
2007
|
2,000
|
2
|
(2)
|
|
-
|
||||||||||||||||||||||
Recapitalization:
Issuance
of common stock to founders, valued at par, May 12, 2007
|
67,052,000
|
67,052
|
(67,052)
|
|
-
|
||||||||||||||||||||||
Issuance
of stock for services, valued at $1 per share, May 12,
2007
|
245,000
|
245
|
244,755
|
245,000
|
|||||||||||||||||||||||
Stock
issued for cash:
|
|||||||||||||||||||||||||||
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
|
|||||||||||||||||||||||
October
11, 2007; $1 per share
|
60,500
|
61
|
60,439
|
60,500
|
|||||||||||||||||||||||
Issuance
of stock for services, valued at $1 per share, October 11,
2007
|
85,000
|
85
|
84,915
|
85,000
|
|||||||||||||||||||||||
Net
loss, through December 31, 2007
|
(420,621
|
)
|
(420,621
|
||||||||||||||||||||||||
Balance
at December 31, 2007
|
2,000
|
$
|
2
|
67,639,500
|
$
|
67,640
|
$
|
422,458
|
-
|
$
|
(422,471
|
)
|
$
|
67,629
|
|||||||||||||
Issuance
of stock for license, valued at $1 per share, February 15,
2008
|
100,000
|
100
|
99,900
|
100,000
|
|||||||||||||||||||||||
Issuance
of stock in execution of five year consulting agreement, valued at $1 per
share, May 31, 2008
|
100,000
|
100
|
99,900
|
(100,000
|
)
|
-
|
|||||||||||||||||||||
Amortization
of prepaid consulting services paid with common stock, December 31,
2008
|
11,667
|
11,667
|
|||||||||||||||||||||||||
Issuance
of stock for services:
|
|||||||||||||||||||||||||||
February
15, 2008, valued at $1 per share
|
145,000
|
145
|
144,855
|
145,000
|
|||||||||||||||||||||||
July
28, 2009, valued at $1 per share
|
400,000
|
400
|
399,600
|
400,000
|
|||||||||||||||||||||||
October
3, 2008 valued at $.02 per share
|
595,000
|
595
|
22,855
|
23,450
|
|||||||||||||||||||||||
October
21, 2008 valued at $.02 per share
|
15,000
|
15
|
285
|
300
|
|||||||||||||||||||||||
Stock
issued for cash:
|
|||||||||||||||||||||||||||
November
4, 2008 valued at $.15 per share
|
105,000
|
105
|
15,645
|
15,750
|
|||||||||||||||||||||||
December
3, 2008 valued at $.06 per share
|
283,333
|
283
|
16,717
|
17,000
|
|||||||||||||||||||||||
Issued
stock for patent:
|
|||||||||||||||||||||||||||
December
28, 2008 valued at $.021 per share
|
30,000,000
|
30,000
|
597,000
|
627,000
|
|||||||||||||||||||||||
Stock
issued for cash:
|
|||||||||||||||||||||||||||
May
31, 2008; $1 per share
|
12,000
|
12
|
11,988
|
12,000
|
|||||||||||||||||||||||
September
4, 2008; $1 per share
|
50,000
|
50
|
49,950
|
50,000
|
|||||||||||||||||||||||
Net
loss, through December 31, 2008
|
(977,426
|
)
|
(977,426
|
||||||||||||||||||||||||
Waiver
of related party expense
|
11,220
|
11,220
|
|||||||||||||||||||||||||
Balance
at December 31, 2008
|
2,000
|
$
|
2
|
99,444,833
|
$
|
99,445
|
$
|
1,892,373
|
$
|
(88,333)
|
$
|
(1,399,897
|
)
|
$
|
503,590
|
||||||||||||
Compensation
recognized under consulting agreement dated May 31, 2008
|
5,000
|
5,000
|
|||||||||||||||||||||||||
Waiver
of related party expense (unaudited)
|
5,610
|
5,610
|
|||||||||||||||||||||||||
Stock
issued for cash:
|
|||||||||||||||||||||||||||
March
17, 2009 ($.05 per share)
|
200,000
|
200
|
9,800
|
10,000
|
|||||||||||||||||||||||
Issuance
of stock for services, valued at fair market value:
|
|||||||||||||||||||||||||||
January
21, 2009 ($.04 per share)
|
199,000
|
199
|
7,761
|
7,960
|
|||||||||||||||||||||||
March
26, 2009 ($.068 per share)
|
1,320,000
|
1,320
|
88,840
|
89,760
|
|||||||||||||||||||||||
Net
loss through March 31, 2009 (unaudited)
|
(160,372
|
) |
(160,372
|
) | |||||||||||||||||||||||
Balance
at December 31, 2008
|
2,000
|
$
|
2
|
101,163,833
|
$
|
101,164
|
$
|
2,003,984
|
$
|
(83,333)
|
$
|
(1,560,269
|
)
|
$
|
461,548
|
Three
Months
|
Inception
to
|
|||||||||||
Mar
31, '09
|
Mar
31, '08
|
Mar
31, '09
|
||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||
Net
loss
|
$ | (160,372 | ) | $ | (223,585 | ) | $ | (1,560,269 | ) | |||
Adjustments
to reconcile net loss to cash used in operating
activities:
|
||||||||||||
Depreciation
and amortization
|
12,117 | 260 | 18,921 | |||||||||
Stock
compensation
|
102,720 | 145,000 | 1,045,987 | |||||||||
Waiver
of related party expenses
|
5,610 | - | 16,830 | |||||||||
Loss
on sale of asset
|
- | - | 2,757 | |||||||||
Changes
in operating assets:
|
||||||||||||
Accounts
Receivable
|
(575 | ) | (787 | ) | (2,973 | ) | ||||||
Inventory
|
639 | (4,221 | ) | |||||||||
Accounts
Payable
|
(47,399 | ) | 5,834 | 62,340 | ||||||||
Accrued
Expenses
|
(12,000 | ) | 28,141 | 3,000 | ||||||||
Total
adjustments to net income
|
61,112 | 178,448 | 1,142,641 | |||||||||
Net
cash (used in) operating activities
|
(99,260 | ) | (45,137 | ) | (417,628 | ) | ||||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||
Acquisition
of equipment
|
- | (5,200 | ) | |||||||||
Proceeds
from sale of asset
|
- | 1,750 | ||||||||||
Net
cash flows (used in) investing activities
|
- | - | (3,450 | ) | ||||||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||
Capital
contribution; pay down of liabilities at acquisition
|
2,500 | |||||||||||
Advance
from affiliate
|
10,000 | |||||||||||
Proceeds
from note payable to related party
|
105,000 | 30,210 | 193,287 | |||||||||
Interest
accrued on affiliate notes and advances
|
1,503 | 3,194 | ||||||||||
Proceeds
from issuance of common stock
|
10,000 | 229,500 | ||||||||||
Net
cash flows provided by investing activities
|
116,503 | 30,210 | 438,481 | |||||||||
Net
increase (decrease) in cash
|
17,243 | (14,927 | ) | 17,403 | ||||||||
Cash
- beginning balance
|
160 | 76,232 | - | |||||||||
CASH
BALANCE - END OF PERIOD
|
$ | 17,403 | $ | 61,305 | $ | 17,403 |
Supplemental
disclosure of cash flow information and non cash investing and financing
activities:
|
|
|
|
|||||||||
Interest
paid
|
$ | - | $ | - | $ | - | ||||||
Taxes
paid
|
$ | - | $ | - | $ | - |
|
March
31,
2009
|
December
31, 2008
|
||||||
Equipment
|
$
|
-
|
$
|
5,200
|
||||
Less
accumulated depreciation
|
-
|
173
|
||||||
Property
and equipment, net
|
$
|
-
|
$
|
5,027
|
1.
|
12.5%
equity shares of Jeruz Magnegas Pvt, Limited in the existing issued and
paid up capital of Jeruz Magnegas Pvt.
Limited;
|
2.
|
5%
royalties on sales of Magnegas equipment made by Jeruz Magnegas Pvt.
Limited.
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of Operation or
Plan of Operation.
|
Selected Historical Data
|
||||||||
March
31,
|
December
31,
|
|||||||
2009
|
2008
|
|||||||
Total
Assets
|
$ | 733,369 | $ | 728,307 | ||||
Total
Liabilities
|
271,821 | 224,717 | ||||||
Total
Stockholders' Equity
|
461,548 | 503,590 | ||||||
Net
Working Capital
|
(247,224 | ) | (217,299 | ) | ||||
As of March 31,
|
||||||||
2009
|
2008
|
|||||||
Revenues
|
1,466 | 782 | ||||||
Operating
Expenses
|
146,959 | 223,172 | ||||||
Net
Loss
|
(160,372 | ) | (223,585 | ) |
Item
3.
|
Quantitative
and Qualitative Disclosures About Market
Risk.
|
Item
4T.
|
Controls
and Procedures.
|
(a)
|
During
the quarter ending March 31, 2009, the Company did not file any Form
8Ks.
|
|
(b)
|
Exhibits
|
|
Exhibit
Number
|
Exhibit
Title
|
|
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.
|
MagneGas
Corporation
|
||||
By:
|
/s/ Dr. Ruggero Maria Santilli
|
|||
Dr. Ruggero Maria Santilli
|
||||
Chief
Executive Officer
|
||||
Dated:
|
May
14, 2009
|