x
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QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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£
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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Nevada
(State
or other jurisdiction of
incorporation
or organization)
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98-0195748
(I.R.S.
Employer
Identification
Number)
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1200
G Street, NW, Suite 800, Washington,
District
of Columbia
(Address
of principal executive offices)
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20005
(Zip
Code)
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Large
accelerated filer o
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Accelerated
filer o
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Non-accelerated
filer o
(Do not check if a smaller reporting company)
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Smaller
reporting company T
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PART
I FINANCIAL INFORMATION
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Item
1. Financial Statements (Unaudited).
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3
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4
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5
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7
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8
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14
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17
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PART
II OTHER INFORMATION
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18
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18
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18
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18
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18
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18
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(Expressed
in U.S. Dollars)
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September 30,
2008
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March 31,
2008
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||||||
ASSETS
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||||||||
Current
assets
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||||||||
Cash
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$ | 1,524,264 | $ | 797,725 | ||||
Other
current assets
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3,451 | - | ||||||
Total
current assets
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1,527,715 | 797,725 | ||||||
Total
assets
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$ | 1,527,715 | $ | 797,725 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
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||||||||
LIABILITIES
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||||||||
Current
liabilities
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||||||||
Accounts
payable
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$ | 25,517 | $ | - | ||||
Accrued
liabilities
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31,085 | 83,750 | ||||||
Accrued
management fees - related party (Note 9)
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- | 162,945 | ||||||
Total
current liabilities
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56,602 | 246,695 | ||||||
Total
liabilities
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$ | 56,602 | $ | 246,695 | ||||
Committments
and Contingencies (Note 5)
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||||||||
STOCKHOLDERS'
EQUITY
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||||||||
Stockholders'
Equity
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||||||||
Preferred
stock: $0.01 par value; Authorized: 1,000,000 shares
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||||||||
Issued
and outstanding: None
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$ | - | $ | - | ||||
Common
stock: $0.001 par value; Authorized: 100,000,000 shares
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||||||||
42,249,166 and
36,932,500 shares issued and outstanding
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42,249 | 36,933 | ||||||
Additional
paid-in capital
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4,479,688 | 1,353,596 | ||||||
Common
stock issuable
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- | 1,259,000 | ||||||
Deficit
accumulated during the development stage
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(3,050,824 | ) | (2,098,499 | ) | ||||
Total
stockholders' equity
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1,471,113 | 551,030 | ||||||
Total
liabilities and stockholders' equity
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$ | 1,527,715 | $ | 797,725 |
From
Inception
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||||||||||||||||||||
Three
months ended September 30,
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Six
months ended September 30,
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(November 6, 1998) to September 30, |
||||||||||||||||||
(Expressed
in U.S. Dollars)
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2008
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2007
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2008
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2007
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2008
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Revenue
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$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Operating
expenses
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||||||||||||||||||||
Depreciation
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- | 40 | 595 | 219 | 6,268 | |||||||||||||||
General
and administrative
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107,202 | 6,649 | 179,474 | 11,863 | 544,197 | |||||||||||||||
Investor
relations
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177,800 | - | 541,500 | - | 768,500 | |||||||||||||||
Director,
management and consulting fees - related party (note 9)
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4,758 | - | 5,200 | 2,200 | 221,468 | |||||||||||||||
Rent
(Note 9)
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8,556 | 1,978 | 10,621 | 3,874 | 53,813 | |||||||||||||||
Research
and development
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39,899 | - | 69,734 | - | 159,239 | |||||||||||||||
Salaries
and benefits
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132,195 | - | 151,044 | - | 1,086,047 | |||||||||||||||
Website
fees - related party
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- | - | - | - | 48,050 | |||||||||||||||
Write
off of oil, gas and mineral leases
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- | - | - | - | 112,000 | |||||||||||||||
Total
operating expenses
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470,410 | 8,667 | 958,168 | 18,156 | 2,999,582 | |||||||||||||||
Operating
Loss
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(470,410 | ) | (8,667 | ) | (958,168 | ) | (18,156 | ) | (2,999,582 | ) | ||||||||||
Other
income (expense)
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||||||||||||||||||||
Interest
income
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6,703 | 153 | 15,581 | 376 | 32,524 | |||||||||||||||
Interest
expense
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(194 | ) | (2,011 | ) | (195 | ) | (3,999 | ) | (77,480 | ) | ||||||||||
Loss
on disposal of fixed assets
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(9,800 | ) | - | (9,800 | ) | - | (9,800 | ) | ||||||||||||
Foreign
exchange gain (loss)
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1,386 | (114 | ) | 257 | 149 | 3,514 | ||||||||||||||
Total
other income (expense)
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(1,905 | ) | (1,972 | ) | 5,843 | (3,474 | ) | (51,242 | ) | |||||||||||
Net
loss available to common stockholders
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$ | (472,315 | ) | $ | (10,639 | ) | $ | (952,325 | ) | $ | (21,630 | ) | $ | (3,050,824 | ) | |||||
Loss per share - basic
and diluted
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$ | (0.01 | ) | $ | (0.00 | ) | (0.02 | ) | $ | (0.00 | ) | |||||||||
Weighted average number of
common shares outstanding - basic and diluted
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42,249,166 | 36,932,500 | 41,324,394 | 36,932,500 |
Common
Stock
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Additional
paid-in
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Common
stock
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Deficit
accumulated
during
development
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Total
stockholders'
equity
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||||||||||||||||||||
(Expressed
in U.S. Dollars)
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Shares
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Amount
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capital
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issuable
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stage
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(deficit)
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Inception,
November 6, 1998
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- | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Common
stock issued at $0.001 per share to a related party for management
services
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20,000,000 | 20,000 | (15,000 | ) | - | - | 5,000 | |||||||||||||||||
Common
stock issued for cash at $0.25 per share fiscal year ended March 31,
1999
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1,360,000 | 1,360 | 83,640 | - | - | 85,000 | ||||||||||||||||||
Loss,
inception (November 6, 1998)to March 31, 1999
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- | - | - | - | (7,470 | ) | (7,470 | ) | ||||||||||||||||
Balance,
March 31, 1999
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21,360,000 | 21,360 | 68,640 | - | (7,470 | ) | 82,530 | |||||||||||||||||
Loss,
year ended March 31, 2000
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- | - | - | - | (16,185 | ) | (16,185 | ) | ||||||||||||||||
Balance,
March 31, 2000
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21,360,000 | 21,360 | 68,640 | - | (23,655 | ) | 66,345 | |||||||||||||||||
Loss,
year ended March 31, 2001
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- | - | - | - | (171,793 | ) | (171,793 | ) | ||||||||||||||||
Balance,
March 31, 2001
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21,360,000 | 21,360 | 68,640 | - | (195,448 | ) | (105,448 | ) | ||||||||||||||||
Common
stock issued for cash at $0.10 per share, October 17,
2001
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10,000,000 | 10,000 | 240,000 | - | - | 250,000 | ||||||||||||||||||
Loss,
year ended March 31, 2002
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- | - | - | - | (144,541 | ) | (144,541 | ) | ||||||||||||||||
Balance,
March 31, 2002
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31,360,000 | 31,360 | 308,640 | - | (339,989 | ) | 11 | |||||||||||||||||
Common
stock issued to a related party for services rendered at $0.08 per share,
August 5, 2002
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2,402,500 | 2,403 | 45,647 | - | - | 48,050 | ||||||||||||||||||
Common
stock issued to a related party for services rendered at $0.08 per share,
August 5, 2002
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1,200,000 | 1,200 | 22,800 | - | - | 24,000 | ||||||||||||||||||
Cancellation
of previously issued common stock, February 4, 2003
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(1,200,000 | ) | (1,200 | ) | (22,800 | ) | - | - | (24,000 | ) | ||||||||||||||
Loss,
year ended March 31, 2003
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- | - | - | - | (149,933 | ) | (149,933 | ) | ||||||||||||||||
Balance,
March 31, 2003
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33,762,500 | 33,763 | 354,287 | - | (489,922 | ) | (101,872 | ) | ||||||||||||||||
Loss,
year ended March 31, 2004
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- | - | - | - | (70,132 | ) | (70,132 | ) | ||||||||||||||||
Balance,
March 31, 2004
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33,762,500 | 33,763 | 354,287 | - | (560,054 | ) | (172,004 | ) |
Common
Stock
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Additional
paid-in
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Common
stock
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Deficit
accumulated
during
development
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Total
stockholders'
equity
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||||||||||||||||||||
(Expressed
in U.S. Dollars)
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Shares
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Amount
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capital
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issuable
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stage
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(deficit)
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||||||||||||||||||
Loss,
year ended March 31, 2005
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- | - | - | - | (59,494 | ) | (59,494 | ) | ||||||||||||||||
- | ||||||||||||||||||||||||
Balance,
March 31, 2005
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33,762,500 | 33,763 | 354,287 | - | (619,548 | ) | (231,498 | ) | ||||||||||||||||
Common
stock issued upon exercised of warrants, at $0.05 per share, June 9, 2005
& June 30, 2005.
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3,120,000 | 3,120 | 152,880 | - | - | 156,000 | ||||||||||||||||||
Common
stock issued upon exercised of stock option, at $0.13 per
share, October 7, 2005
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50,000 | 50 | 6,450 | - | - | 6,500 | ||||||||||||||||||
Stock
based compensation expense
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- | - | 785,536 | - | - | 785,536 | ||||||||||||||||||
Loss,
year ended March 31, 2006
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- | - | - | - | (842,155 | ) | (842,155 | ) | ||||||||||||||||
Balance,
March 31, 2006
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36,932,500 | 36,933 | 1,299,153 | - | (1,461,703 | ) | (125,617 | ) | ||||||||||||||||
Stock
based compensation expense
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- | - | 54,443 | - | - | 54,443 | ||||||||||||||||||
Loss,
year ended March 31, 2007
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- | - | - | - | (224,862 | ) | (224,862 | ) | ||||||||||||||||
Balance,
March 31, 2007
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36,932,500 | 36,933 | 1,353,596 | - | (1,686,565 | ) | (296,036 | ) | ||||||||||||||||
Common
stock issuable in March 2008
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- | - | - | 1,259,000 | - | 1,259,000 | ||||||||||||||||||
Loss,
year ended March 31, 2008
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- | - | - | - | (411,934 | ) | (411,934 | ) | ||||||||||||||||
Balance,
March 31, 2008
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36,932,500 | 36,933 | 1,353,596 | 1,259,000 | (2,098,499 | ) | 551,030 | |||||||||||||||||
Common
stock and warrants issued for cash and placement fees in
April 2008
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4,100,000 | 4,100 | 2,395,900 | (1,259,000 | ) | - | 1,141,000 | |||||||||||||||||
Stock
based compensation expense
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- | - | 1,408 | - | - | 1,408 | ||||||||||||||||||
Common
stock issued upon exercise of warrants at $0.60 per share in
May 2008
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1,216,666 | 1,216 | 728,784 | - | - | 730,000 | ||||||||||||||||||
Loss,
six months ended September 30, 2008
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- | - | - | - | (952,325 | ) | (952,325 | ) | ||||||||||||||||
Balance,
September 30, 2008
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42,249,166 | $ | 42,249 | $ | 4,479,688 | $ | - | $ | (3,050,824 | ) | $ | 1,471,113 |
From Inception
(November 6,
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||||||||||||
Six
months ended September 30,
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1998)
to September 30,
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|||||||||||
(Expressed
in U.S. Dollars)
|
2008
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2007
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2008
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|||||||||
Cash
flows from operating activities
|
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Net
Loss
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$ | (952,325 | ) | $ | (21,630 | ) | $ | (3,050,824 | ) | |||
Reconciliation
of net loss to net cash used in operating activities:
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||||||||||||
Depreciation
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595 | 219 | 6,268 | |||||||||
Common
stock issued for services
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- | - | 53,050 | |||||||||
Stock
based compensation expense
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1,408 | - | 841,387 | |||||||||
Loss
on sale of fixed assets
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9,800 | - | 9,800 | |||||||||
Write
off of oil, gas and mineral leases
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- | - | 112,000 | |||||||||
Change
in non-cash working capital items:
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||||||||||||
Decrease
(increase) in other current assets
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(3,451 | ) | 27 | (3,451 | ) | |||||||
Increase
in accounts payable
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25,517 | 456 | 25,517 | |||||||||
Increase
(decrease) in accrued liabilities
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(52,665 | ) | (150 | ) | 31,085 | |||||||
Increase
in accrued management fees -related party
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- | - | 162,945 | |||||||||
Increase
in accrued interest -related party
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- | 3,998 | - | |||||||||
Net
cash used in operating activities
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(971,121 | ) | (17,080 | ) | (1,812,223 | ) | ||||||
Cash
flows from investing activities
|
||||||||||||
Purchase
of property and equipment
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(10,395 | ) | - | (16,068 | ) | |||||||
Purchase
of oil, gas and mineral leases
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- | - | (112,000 | ) | ||||||||
Net
cash used in investing activities
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(10,395 | ) | - | (128,068 | ) | |||||||
Cash
flows from financing activities
|
||||||||||||
Proceed
from issuance of common stock and warrants
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1,871,000 | - | 3,627,500 | |||||||||
Repayment
of accrued management fees
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(162,945 | ) | (162,945 | ) | ||||||||
Proceed
from loans from related party
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- | 510,000 | ||||||||||
Repayment
of loans from related party
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- | - | (510,000 | ) | ||||||||
Net
cash provided by financing activities
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1,708,055 | - | 3,464,555 | |||||||||
Increase
(decrease) in cash
|
726,539 | (17,080 | ) | 1,524,264 | ||||||||
Cash, beginning of
period
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797,725 | 23,531 | - | |||||||||
Cash, end of
period
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$ | 1,524,264 | $ | 6,451 | $ | 1,524,264 | ||||||
Supplemental
disclosure of cash flow information:
|
||||||||||||
Interest
paid in cash
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$ | 195 | $ | - | $ | 77,481 | ||||||
Income
tax paid in cash
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$ | - | $ | - | $ | - | ||||||
Non-cash
Investing and Financing Activities:
|
||||||||||||
Issuance
of common stock and warrants as commission
|
$ | 60,000 | $ | - | $ | 60,000 |
Three
months ended
September 30,
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Six
months ended
September 30,
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|||||||||||||||
2008
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2007
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2008
|
2007
|
|||||||||||||
Numerator
- net loss available to common stockholders
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$ | (472,315 | ) | $ | (10,639 | ) | $ | (952,325 | ) | $ | 21,630 | |||||
|
||||||||||||||||
Denominator
- weighted average number of common shares outstanding
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42,249,166 | 36,932,500 | 41,324,394 | 36,932,500 | ||||||||||||
Basic
and diluted loss per common share
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$ | (0.01 | ) | $ | (0.00 | ) | $ | (0.02 | ) | $ | 0.00 |
Number
of
options
|
Weighted
average
exercise
price
|
Remaining
contractual
terms
|
Aggregate
intrinsic
value
|
||||||||||
Outstanding
at March 31, 2007
|
7,950,000 | $ | 0.13 | ||||||||||
Granted
|
- | ||||||||||||
Outstanding
at March 31, 2008
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7,950,000 | 0.13 | |||||||||||
Granted
|
100,000 | 0.83 | |||||||||||
Outstanding
at September 30, 2008
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8,050,000 | 0.14 |
6.74
years
|
$ | 3,736,500 | ||||||||
Exercisable
at September 30, 2008
|
7,950,000 | $ | 0.13 |
6.70
years
|
$ | 3,736,500 | |||||||
Available
for grant at September 30, 2008
|
11,900,000 |
Options
Outstanding
|
Options
Exercisable
|
|||||||||||||||||||||||||
Range
of
Exercise
Prices
|
Number
Outstanding
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Life
(Years)
|
Number
Exercisable
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Life
(Years)
|
||||||||||||||||||||
$ | 0.13 | 7,950,000 | $ | 0.13 | 6.70 | 7,950,000 | $ | 0.13 | 6.70 | |||||||||||||||||
0.83 | 100,000 | 0.83 | 9.95 | - | - | - | ||||||||||||||||||||
$ | 0.13 - $0.83 | 8,050,000 | $ | 0.14 | 6.74 | 7,950,000 | $ | 0.13 | 6.70 |
Number
of
Warrants
outstanding
|
Weighted
average
exercise
price
|
|||||||
Balance,
March 31, 2007 and 2008
|
6,880,000 | $ | 0.05 | |||||
Issued
|
4,100,000 | 0.60 | ||||||
Exercised
|
(1,216,666 | ) | 0.60 | |||||
Balance,
September 30, 2008
|
9,763,334 | 0.21 |
Risk-free
interest rate
|
2.13%
|
Expected
life
|
2.0
years
|
Expected
volatility
|
107.9%
|
Dividend
per share
|
$0.00
|
Legal
Proceedings
|
Unregistered
Sales of Equity Securities and Use of
Proceeds
|
Item
3.
|
Defaults
Upon Senior
Securities
|
Submission
of Matters to a Vote of Security
Holders
|
Other
Information
|
Exhibits
|
Certification
of the Chief Financial Officer pursuant to Rule
13a-14(a)
|
Certification
by the Chief Executive Officer pursuant to 18 U.S.C. 1350 as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
Certification
by the Chief Financial Officer pursuant to 18 U.S.C. 1350 as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
International Energy,
Inc.
|
|
(Registrant)
|
Signature
|
Title
|
Date
|
/s/
Charles
Bell
|
Chief
Executive Officer,
|
|
Charles
Bell
|
President,
Director
|
November
6, 2008
|
/s/ Frank Fabio
|
Chief
Financial Officer,
|
|
Frank
Fabio
|
Secretary,
Treasurer
|
November
6,
2008
|