Financial Statements for 2004
Notice to reader
Balance Sheets
Statement of Operations and Other Comprehensive Income
Statement of Stockholders' Equity (Deficit)
Statement of Cash Flows (Unaudited)
Notes to the Financial Statements
Pegasus Gaming, Corp.
(formerly Grade Point Adverage, Inc.)
(A Development Stage Company)
FINANCIAL STATEMENTS
December 31, 2004
NOTICE TO READER
The accompanying unaudited financial statements have been prepared by the Company in accordance with the instructions for Form 10-K pursuant to the rules and regulations of the Securities and Exchange Commission and, therefore, do not include all information and footnotes necessary for a complete presentation of the financial position, results of operations, cash flows, and stockholders equity in conformity with generally accepted accounting principles. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature.
The unaudited balance sheet of the Company as of December 31, 2004, the unaudited statement of operations and cash flows for the twelve months ended December 31, 2004 and the statement of stockholders equity as at December 31, 2004 are attached hereto and incorporated herein by this reference.
PEGASUS GAMING, CORP.
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PEGASUS GAMING, CORP.
(formerly Grade Point Adverage Inc.)
(A Development Stage Company)
Balance Sheets
| |
|
|
2004 |
|
2003 |
ASSETS |
|
|
|
|
CURRENT ASSETS |
|
|
|
|
| |
Cash |
|
24,925 |
|
0 |
| Total Current Assets |
|
24,925 |
|
0 |
| OTHER ASSETS |
|
|
|
|
| |
Intangibles |
|
0 |
|
0 |
Total Other Assets |
|
0 |
|
0 |
| TOTAL ASSETS |
|
24,925 |
|
0 |
| |
|
|
|
|
|
LIABILITIES AND EQUITY |
|
|
|
|
| CURRENT LIABILITIES |
|
|
|
|
| |
Accounts Payable |
|
26,702 |
|
6,202 |
| |
Note Payable |
|
0 |
|
0 |
| Total Current Liabilities |
|
26,702 |
|
6,202 |
| STOCKHOLDERS' EQUITY |
|
|
|
|
| |
Common Stock, $.001 per value, authorized 1 for 60 Reverse Split December 15, 2004 (adjusted for split) |
|
10,343 |
|
20,600 |
| |
Paid In Capital |
|
66,670 |
|
46,670 |
| |
Subscription Receivable |
|
5,000 |
|
0 |
| |
Deficit Accumulated |
|
(83,790) |
|
(73,472) |
| Total Stockholders' Equity |
|
(1,777) |
|
(6,202) |
| TOTAL LIABILITIES & STOCKHOLDERS' EQUITY |
|
24,925 |
|
0 |
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PEGASUS GAMING, CORP.
(formerly Grade Point Adverage Inc.)
(A Development Stage Company)
Statements of Operations and Other Comprehensive Income
For the tweleve months ended December 31
| |
|
|
2004 |
|
2003 |
| REVENUES |
|
0 |
|
0 |
| |
OPERATING EXPENSES |
|
|
|
|
| |
Management Fees |
|
20,000 |
|
2,000 |
| |
Consulting |
|
500 |
|
0 |
| |
Office Administration |
|
75 |
|
1,977 |
| |
Professional Fees |
|
0 |
|
2,000 |
| |
Registered Agent |
|
0 |
|
225 |
| Total Operating Expenses |
|
20,575 |
|
6,202 |
| OPERATING LOSS |
|
(20,575) |
|
(6,202) |
| OTHER INCOME (EXPENSE) |
|
20,257 |
|
0 |
| LOSS FROM CONTINUING OPERATIONS |
|
(318) |
|
(6,202) |
| BASIC LOSS PER SHARE |
|
|
|
|
| |
Continuing Operations |
|
(0.0000) |
|
(0.0000) |
| Total Loss Per Share |
|
(0.0000) |
|
(0.0000) |
| WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING |
|
10,343,333 |
|
20,600,000 |
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PEGASUS GAMING, CORP.
(formerly Grade Point Adverage Inc.)
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit )
| |
|
Common Stock Shares |
|
Amount |
|
Additional Paid-in Capital |
|
Retained Earnings (Deficit) |
|
TOTAL |
| Inception |
|
0 |
|
$0 |
|
$0 |
|
$0 |
|
$0 |
| |
|
|
|
|
|
|
|
|
|
|
| Stock issued for cash (adjusted for split) |
|
5,000 |
|
$5 |
|
$4,995 |
|
$0 |
|
$5,000 |
| Stock issued for services |
|
2,500 |
|
$3 |
|
($3) |
|
$0 |
|
$0 |
| Value of services provided |
|
0 |
|
$0 |
|
$2,498 |
|
$0 |
|
$2,498 |
| Capital contributed by stockholder |
|
0 |
|
$0 |
|
$3,771 |
|
$0 |
|
$3,771 |
| Net loss for fiscal year 1998 |
|
0 |
|
$0 |
|
$0 |
|
($11,268) |
|
($11,268) |
| Balance at December 31, 1998 |
|
7,500 |
|
$8 |
|
$11,261 |
|
($11,268) |
|
$0 |
| |
|
|
|
|
|
|
|
|
|
|
| Stock issued for Busines Plan |
|
18,600,000 |
|
$18,600 |
|
($18,600) |
|
$0 |
|
$0 |
| Stock issued for services |
|
1,992,500 |
|
$1,993 |
|
($1,993) |
|
$0 |
|
$0 |
| Value of services provided |
|
0 |
|
$0 |
|
$19,925 |
|
$0 |
|
$19,925 |
| Capital contributed by stockholder |
|
0 |
|
$0 |
|
$7,086 |
|
$0 |
|
$7,086 |
| Net loss for fiscal year 1999 |
|
0 |
|
$0 |
|
$0 |
|
($27,011) |
|
($27,011) |
| Balance at December 31, 1999 |
|
20,600,000 |
|
$20,600 |
|
$17,679 |
|
($38,279) |
|
$0 |
| |
|
|
|
|
|
|
|
|
|
|
| Capital contributed by stockholder |
|
0 |
|
$0 |
|
$7,876 |
|
$0 |
|
$7,876 |
| Net loss for fiscal year 2000 |
|
0 |
|
$0 |
|
$0 |
|
($7,876) |
|
($7,876) |
| Balance at December 31, 2000 |
|
20,600,000 |
|
$20,600 |
|
$25,555 |
|
($46,155) |
|
$0 |
| |
|
|
|
|
|
|
|
|
|
|
| Capital contributed by stockholder |
|
0 |
|
$0 |
|
$10,114 |
|
$0 |
|
$10,114 |
| Net loss for fiscal year 2001 |
|
0 |
|
$0 |
|
$0 |
|
($10,114) |
|
($10,114) |
| Balance at December 31, 2001 |
|
20,600,000 |
|
$20,600 |
|
$35,669 |
|
($56,269) |
|
$0 |
| |
|
|
|
|
|
|
|
|
|
|
| Capital contributed by stockholder |
|
0 |
|
$0 |
|
$11,001 |
|
$0 |
|
$11,001 |
| Net loss for fiscal year 2002 |
|
0 |
|
$0 |
|
$0 |
|
($11,001) |
|
($11,001) |
| Balance at December 31, 2002 |
|
20,600,000 |
|
$20,600 |
|
$46,670 |
|
($67,270) |
|
$0 |
| |
|
|
|
|
|
|
|
|
|
|
| Capital contributed by stockholder |
|
0 |
|
$0 |
|
$11,001 |
|
$0 |
|
$11,001 |
| Net loss for fiscal year 2002 |
|
0 |
|
$0 |
|
$0 |
|
($11,001) |
|
($11,001) |
| Balance at December 31, 2002 |
|
20,600,000 |
|
$20,600 |
|
$46,670 |
|
($67,270) |
|
$0 |
| |
|
|
|
|
|
|
|
|
|
|
| Net loss for fiscal year 2003 |
|
0 |
|
$0 |
|
$0 |
|
($6,202) |
|
($6,2021) |
| Balance at December 31, 2003 |
|
20,600,000 |
|
$20,600 |
|
$46,670 |
|
($73,472) |
|
($6,202) |
| |
|
|
|
|
|
|
|
|
|
|
| Capital contributed by stockholder |
|
0 |
|
$0 |
|
$0 |
|
$0 |
|
$0 |
| Share split for 60 old shares for each 1 new share |
|
(20,256,667)
|
|
($20,257) |
|
0 |
|
0 |
|
($20,257) |
| |
|
343,333 |
|
|
|
|
|
|
|
|
| Stock issued for debt settlement (at $0.002/share) |
|
10,000,000 |
|
$10,000 |
|
$10,000 |
|
0 |
|
$20,000 |
Subscriptions, receivable for 5,000,000 shares (at $0.002/share)
To be issued
|
|
5,000,000 |
|
$0 |
|
$10,000 |
|
($5,000) |
|
$5,000 |
| Net loss for fiscal year 2004 |
|
0 |
|
$0 |
|
$0 |
|
($318) |
|
($318) |
| Balance at December 31, 2004 |
|
15,343,333 |
|
$15,343 |
|
$66,670 |
|
($78,790) |
|
($1,777) |
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PEGASUS GAMING, CORP.
(formerly Grade Point Adverage Inc.)
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
For the twelve Months ended December 31
| |
|
|
2004 |
|
2003 |
| CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
| Net gain (loss) |
|
($318) |
|
($6,202) |
| Adjustments to reconcile loss to net cash used by operating activities: |
|
|
|
|
| |
Depreciation and amortization |
|
0 |
|
0 |
| |
Common stock issued for services |
|
0 |
|
0 |
| Changes in operating assets and liabilities: |
|
|
|
|
| |
(Increase)/Decrease in account receivable related party |
|
0 |
|
0 |
| |
Increase/(Decrease) in accounts payable |
|
20,500 |
|
6,202 |
| |
Increase/(Decrease) in accrued expenses |
|
0 |
|
0 |
| Net cash used by operating activities |
|
20,500 |
|
6,202 |
| CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
| |
Equipment purchase |
|
0 |
|
0 |
| Net cash used by investing activities |
|
0 |
|
0 |
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
| |
Proceeds from common stock |
|
0 |
|
0 |
| |
Proceeds from subscription receivable |
|
25,000 |
|
0 |
| |
Stock rollback loss(gain) |
|
(20,257) |
|
0 |
| Net cash provided by financing activities |
|
4,743 |
|
0 |
| INCREASE (DECREASE) IN CASH |
|
24,925 |
|
0 |
| CASH AT BEGINNING OF PERIOD |
|
0 |
|
0 |
| CASH AT END OF PERIOD |
|
24,925 |
|
0 |
| CASH PAID FOR: |
|
|
|
|
| |
Interest |
|
0 |
|
0 |
| |
Income taxes |
|
0 |
|
0 |
| NON-CASH INVESTING AND FINANCING ACTIVITIES |
|
|
|
|
| |
Common stock issued for services |
|
20,000 |
|
0 |
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PEGASUS GAMING, CORP.
(formerly Grade Point Adverage Inc.)
(A Development Stage Company)
Notes to the Financial Statements
December 31, 2004
NOTE 1 - BASIS OF FINANCIAL STATEMENT PRESENTATION
The accompanying unaudited financial statements have been prepared by the Company. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted in accordance with such rules and regulations.
NOTE 2 - GOING CONCERN
The Company's financial statements are prepared using generally accepted accounting principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business. However, the Company does not have significant cash or other material assets, nor does it have an established source of revenues sufficient to cover its operating costs and to allow it to continue as a going concern.
The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
NOTE 3- MATERIAL EVENTS
In October, 2004 the company accepted share subscriptions for 12,500,000 shares from qualified purchasers, valued at $0.002 per share totaling $25,000. 5,000,000 shares were issued November 2004 and the remaining 7,500,000 will be issued in January 2005.
The company completed a reverse split of its common shares of sixty old shares for one new share in December 2004.
NOTE 4- SUBSEQUENT EVENTS
ITEM 1.
In November 2004 the company signed a letter of intent to acquire the licensing rights to the Chimera 2 software applications and platform to license internet casino operators located in Europe and Africa . The acquisition price for the licensing was $2,000,000 US. Payment for the acquisition will comprise of $1,000,000 US of company common stock issued under Rule 144 and 4 quarterly payments of $250,000 each for the balance, such payments to be commenced 30 days after completion of a company website and the completion of design and acceptance of a branded suite of internet gaming applications and the platform therefore. It is expected that a closing date for these transactions would be in the 2 nd quarter of 2005.
In December 2004 the company underwent a name change to Pegasus Gaming Corp., to more accurately reflect the nature of future business operations.
ITEM 2: MANAGEMENT DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Going Concern and Ability of the Company to Continue
The Company has net operating loss carry forwards of $(83,790 ) since inception through December 31, 2004.
The Company's consolidated financial statements are prepared using generally accepted accounting principles applicable to a going concern that contemplates the realization of assets and liquidation of liabilities in the normal course of business.
The Company has not established revenues sufficient to cover its operating costs and allow it to continue as a going concern. Management believes that the Company will soon be able to generate revenues sufficient to cover its operating costs.
In the interim, the Company intends to raise additional capital through private placements of its common stock.
Liquidity and Capital Resources
As of December 31, 2004 the Company has $24,925 in total current assets comprised entirely of cash in bank. There is $26,702 in current liabilities. These liabilities are comprised of ($26,702) in accounts payable.
This is compared to current assets of $0 and current liabilities of $6,202 as of December 31, 2003 (prior year).
Management realizes that there is a severe impairment in liquidity. The Company is involved in a best efforts financing in order to increase the Company's liquidity and capital resources.
Results of Operations
For the fiscal year ending December 31, 2004 the Company had a net loss of $318 comprised of a gain of $20,257 due to a stock reorganization and costs and office administration costs, and consulting fees, compared to a net loss of $6,202 for the same period the year before.
The Company had revenues of $0 for the fiscal year ended December 31, 2004 compared to $0 for the same period last year.
Sale of Common Capital Stock
In 2004 the Company sold Twelve Million Five Hundred Thousand shares for cash for proceeds of $25,000
All financial statements and the notes thereto have been prepared by company management and present fairly in all material respects the financial position of the Company and the results of its operations and cash flows for the period presented, in conformity with accounting principles generally accepted in the United States, consistently applied. As these statements are not audited, the reader should exercise caution in making any business decisions as the statements may not reflect information contained in audited financial statements.
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