Planet Resource Recovery, Inc. (A Development Stage Company) Balance
Shared by: pge12085
Planet Resource Recovery, Inc. (A Development Stage Company) Balance Sheet As of March 31, 2007 and December 31, 2006 As of As of March 31, December 31, 2007 2006 Assets Current assets Cash & marketable securities 55,932 - Inventory 8,198 - Total current assets 64,129 - Property & equipment 231,903 - Goodwill 71,179 - Total assets $ 367,211 $ - Liabilities Current liabilities Accounts payable $ 48,755 $ - Non-current liabilities Note payable - shareholders 619,242 364,708 Note payable - other 38,340 0 Total non-current liabilities 657,582 364,708 Total liabilities $ 706,337 $ 364,708 Shareholders' Equity Preferred Stock, 10% Cumulative, Non-voting, $ - $ - 10,000,000 Shares auhtorized and none issued Common stock 450,000,000 shares authorized at No Par Value, $ 173,394 $ 98,808 78,945,259 issued and outstanding at March 31, 2007; 150,292,274 issued and outstanding at December 31, 2006 Additional paid in capital 1,479,618 1,434,635 Retained earnings/(deficit) (1,992,138) (1,898,151) Total stockholders' equity $ (339,126) $ (364,708) Total Liabilities & Stockholders' Equity $ 367,211 $ - (See Accountant's Compilation Report) Planet Resource Recovery, Inc. (A Development Stage Company) Statement of Operations For the Quarter Ended March 31, 2007, and the Year Ended December 31, 2006 Quarter Ended Year Ended March 31, December 31, 2007 2006 Revenue Licensing fees $ 20,000 $ - Expenses Advertising 7,030 Automobile 339 Consulting fees 1,145 250,000 Contract labor 65,044 Dues & subscriptions 857 Licenses & permits 1,779 Meals & entertainment 363 Miscellaneous 79 Postage & delivery 830 Professional fees 3,515 29,782 Rent 8,689 Repairs & maintenance 88 Supplies 595 Telephone 1,278 Travel 3,495 Transfer agent fees 12,629 Utilities 2,308 Interest 3,924 8,900 Total Expenses $ 113,987 $ 288,682 Net income/(loss) $ (93,987) $ (288,682) (See Accountant's Compilation Report) Planet Resource Recovery, Inc. (A Development Stage Company) Statement of Shareholders' Equity From January 1, 2006 to March 31, 2007 Total Preferred Stock Common Stock Additional Accumulated Stockholder's Shares Amount Shares Amount Paid-in Capital Deficit Equity/(Deficit) Ending (Deficit) Balance January 1, 2006 - $ - 69,026,384 $ 69,026 $ 1,434,635 $ (1,609,469) $ (105,808) Reverse (1 share for 50) Split, January 3, 2006 1,380,930 $ - Adjusted for fractional shares Issuance of Common Stock for Services 5,000,000 $ 1,000 $ 1,000 Issuance of Common to Officers & Directors for services rendered 143,911,344 $ 28,782 $ 28,782 Net loss for Period $ (288,682) $ (288,682) Balance - December 31, 2006 - $ - 150,292,274 $ 98,808 $ 1,434,635 $ (1,898,151) $ (364,708) Issuance of Common Stock to Shareholders of 74,469,102 $ 74,469 $ 74,469 Planet Resource Recovery Corporation Cancellation of shares previously issued (142,911,344) to Officers & Directors Common shares purchased 117,000 $ 117 $ 44,983 $ 45,100 Net loss for Period $ (93,987) $ (93,987) Balance - March 31, 2007 - $ - 81,967,032 $ 173,394 $ 1,479,618 $ (1,992,138) $ (339,126) (See Accountant's Compilation Report) Planet Resource Recovery, Inc. (A Development Stage Company) Statement of Cash Flows For the Quarter Ended March 31, 2007, and the Year Ended December 31, 2006 Quarter Ended Year Ended March 31, December 31, 2007 2006 Cash flows from Operating Activities Net loss $ (93,987) $ (288,682) Adjustments to reconcile net income to net cash provided by operating activities (Increase) in Inventory (8,198) Increase in accounts payable 48,755 Increase in note payable to shareholder 258,900 Net Cash Used by Operating Activities (53,430) (29,782) Cash Flows From Investing Activities Acquisition of equipment (231,903) Net Cash Used by Investing Activities (231,903) 0 Cash flows from Financing Activities Capital contributions 48,390 29,782 Proceeds from notes due to Shareholders 254,534 Proceeds from notes due to Others 38,340 Net Cash Used by Financing Activities 341,264 29,782 Net Increase/(Decrease) In Cash 55,932 0 Cash at Beginning of Period 0 0 Cash at End of Period 55,932 0 (See Accountant's Compilation Report) Planet Resource Recovery, Inc. and subsidiary (a development stage company) Notes to Consolidated Interim Financial Statements 1. Summary of Significant Accounting Policies Basis of Presentation Planet Resource Recovery, Inc. (the Company) formerly named American Biodiesel Fuels Corp., a Nevada corporation, was formed on September 19, 1996. The accompanying financial statements and related footnotes of the Company are presented in U.S. dollars and have been prepared in accordance with accounting principles generally accepted in the United States of America. The Company is in the development stage and, to date, the Company's principal activities have included raising capital through common stock issuances and debt financing to fund research and development activities and construction of its production facility. The Company's fiscal year-end is December 31. On February 15, 2007, the Company, as American Biodiesel Fuels Corp. issued 74,469,102 shares in exchange for the assets and liabilities of Planet Resource Recovery, Inc., a private Nevada corporation. The accompanying financial statements do not reflect the operations of the subsidiary company through December 31, 2006. They do reflect the operations of the subsidiary company for the three months ended March 31, 2007. Subsequent to the issuance of stock in exchange for the assets and liabilities of the private company, American Biodiesel Fuels Corp. changed its name to Planet Resource Recovery, Inc. These interim consolidated financial statements have been prepared for the quarter ended March 31, 2007 and the year ended December 31, 2006, based upon the principles of Accounting Principles Board (APB) #28, "Interim Financial Reporting". The interim period financial information presented in these financial statements are unaudited and include all known accruals and adjustments that, in the opinion of management, are necessary for a fair presentation of the financial position of the Company and its results of operations and cash flows for such periods. All such adjustments are of a normal and recurring nature. Results of operation for the interim periods presented are not necessarily indicative of operating results for the full year or any future periods. Use of Certain Significant Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of certain assets and liabilities and disclosures of contingent assets and liabilities at the date of the financial statements and the related reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Management believes that its estimates are reasonable. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash and cash equivalents include cash on hand, demand deposits with banks, and all highly liquid investments with original maturities of three months or less. The Company's cash, cash equivalents, and short-term investments are subject to potential credit risk. The Company's cash management and investment policies restrict investments to low-risk, highly liquid securities. Fair Value of Financial Instruments The Company's financial instruments consist of cash and cash equivalents, receivables, payables, and debt. The Company believes that the carrying values of cash and cash equivalents, receivables and payables on the accompanying consolidated balance sheet approximate their fair values due to the short-term maturity of these financial instruments. Property and Equipment Property and equipment are valued at historical cost. Additions and improvements to the assets under construction are capitalized. Property and equipment consist primarily of the production facility. Since the production facility has not produced significant commercial quantities, no depreciation is being applied to the equipment as of March 31, 2007. Equipment and facilities will be depreciated using the straight-line method over the estimated remaining useful lives as of the in-service date or date of materially significant quantities of the product. Estimated useful lives of the Company's equipment are expected to range from three five years. Scheduled maintenance of equipment and overhauls will be performed on the basis of number of hours operated in accordance with the Company's preventative maintenance program. Repair and maintenance costs will generally be charged to expense as incurred; however, overhauls related to large-scale maintenance projects will be deferred when incurred and amortized over the estimated useful life. Impairment of Long-Lived Assets In compliance with Statement of Financial Accounting Standards (SFAS) No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, the recoverability of the carrying values of property and equipment will be assessed at a minimum annually or whenever, in management's judgment, events or changes in circumstances indicate that the carrying value of such assets may not be recoverable based on estimated future cash flows. If this assessment indicates that the carrying value will not be recoverable, as determined based on undiscounted cash flows over the remaining useful lives, an impairment loss will be recognized. The impairment loss will equal the excess of the carrying value over the fair value of the asset. The fair value of the asset will be based on prices of similar assets, if available, or discounted cash flows. Income Taxes The Company follows the liability method of accounting for income taxes in accordance with SFAS No. 109, Accounting for Income Taxes. Under this method, deferred income taxes are recorded based upon the differences between the financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the underlying assets or liabilities are recovered or settled. Due to the nature of the operations to date, the Company has recognized no deferred tax asset or liability. Receivables and Concentration of Credit Risk, Concentration of Suppliers Based on the nature of its potential customer base, the Company does not believe that it will have any significant concentrations of credit risk other than its concentration in the oil and gas industry. The Company will evaluate the creditworthiness of its customers' financial condition. Allowances for Doubtful Accounts The Company will maintain allowances for doubtful accounts for estimated losses resulting from the inability of the Company's customers to make required payments. If a trade receivable is deemed to be uncollectible, such receivable will be charged off against the allowance for doubtful accounts. The Company will consider the following factors when determining if collection of revenue is reasonably assured: customer creditworthiness, past transaction history with the customer, current economic industry trends, and changes in customer payment terms. If the Company has no previous experience with the customer, the Company will typically obtain reports from various credit organizations to ensure that the customer has a history of paying its creditors. The Company may also request financial information, including financial statements or other documents, to ensure that the customer has the means of making payment. If these factors do not indicate collection is reasonably assured, the Company would require a prepayment or other arrangement to support revenue recognition and recording of a trade receivable. Insurance Prepaid insurance is amortized over the terms of the Company's insurance policies. 2. Commitments and Contingencies Rental expense for the Company's office lease was $5,000, for the year ended December 31, 2006 and $7,500 for the three months ended March 31, 2007. Minimum annual lease payments under this lease for the years ending 2007, 2008 and 2009 are $30,000 per year. 3. Restricted Stock Outstanding shares include restricted stock issued and outstanding. Restricted stock issuances are registered with the Company's stock registrar and these shares include voting and dividend rights. 4. Related Party Transaction The Chief Executive Officer of the company has made cash contributions to the Company in exchange for a note payable at a fixed interest rate of 7.5%. The balance due on the note was $619,242 and $364,708 as of March 31, 2007, and December 31, 2006 respectively.