Florida
|
20-3217152
|
(State
or other jurisdiction of incorporation
or
organization)
|
(IRS
Employer Identification No.)
|
1600
Lower State Road
Doylestown,
PA
|
18901
|
(215)
491-1075
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(Issuer's
telephone number)
|
Part
I
|
Page
|
3
|
|
5
|
|
6
|
|
6
|
|
Part
II
|
Page
|
7
|
|
8
|
|
11
|
|
25
|
|
25
|
|
25
|
|
Part
III
|
Page
|
26
|
|
|
|
27
|
|
27
|
|
27
|
|
28
|
|
29
|
|
•
Establish
effective marketing channels for our products through a network
of
distributors and retailers in selected
markets.
|
|
•
Support revenue generation in these channels by effectively educating
the
consumer marketplace and promoting the use of atmospheric water
generators
as a means of assuring the delivery of safe, healthy water at low
costs.
|
|
•
We intend to have our manufacturer provide the atmospheric water
generator
line under our WaterPure Pro and Executive brand
labels.
|
Quarter
|
In
the year ending June 30, 2007
|
|||||||
Ended
|
High
|
Low
|
||||||
06/30/07
|
$ |
1.05
|
$ |
0.31
|
||||
03/31/07
|
$ |
1.00
|
$ |
0.51
|
|
Page
|
||
|
F-1
|
||
FINANCIAL
STATEMENTS
|
|
||
|
F-2
|
||
|
F-3
|
||
|
F-4
|
||
|
F-5
|
||
|
F-6
|
2007
|
2006
|
|||||||
ASSETS
|
||||||||
Cash
|
$ |
10,918
|
$ |
53,515
|
||||
Accounts
receivable
|
6,904
|
-
|
||||||
Other
receivables
|
7,000
|
-
|
||||||
Inventories
|
63,642
|
-
|
||||||
Deposit
on inventories
|
-
|
60,789
|
||||||
Other
|
7,035
|
7,955
|
||||||
Total
current assets
|
95,499
|
122,259
|
||||||
Trademark
|
325
|
-
|
||||||
Security
deposit
|
200
|
200
|
||||||
Total
assets
|
$ |
96,024
|
$ |
122,459
|
||||
LIABILITIES
AND STOCKHOLDERS' EQUITY (DEFICIENCY)
|
||||||||
CURRENT
LIABILITES
|
||||||||
Accounts
payable and accrued expenses
|
$ |
36,623
|
$ |
10,000
|
||||
Notes
payable
|
50,000
|
-
|
||||||
Due
to officers
|
13,373
|
-
|
||||||
Due
to stockholders
|
74,350
|
-
|
||||||
Total
current liabilities
|
174,346
|
10,000
|
||||||
Convertible
debt
|
50,000
|
-
|
||||||
STOCKHOLDERS'
EQUITY (DEFICIENCY)
|
||||||||
Common
stock, par value $.0001 per share; 40,000,000 authorized and
21,271,750
shares outstanding
|
2,127
|
-
|
||||||
Additional
paid in capital
|
1,047,143
|
-
|
||||||
Common
stock to be issued
|
-
|
176,820
|
||||||
Deficit
accumulated during the development stage
|
(1,177,592 | ) | (64,361 | ) | ||||
Total
stockholders' equity (deficiency)
|
(128,322 | ) |
112,459
|
|||||
Total
liabilities and stockholders' equity (deficiency)
|
$ |
96,024
|
$ |
122,459
|
July
22, 2005
|
July
22, 2005
|
|||||||||||
Year
|
(inception)
|
(inception)
|
||||||||||
ended
|
through
|
through
|
||||||||||
June
30,
|
June
30,
|
June
30,
|
||||||||||
2007
|
2006
|
2007
|
||||||||||
REVENUES
|
$ |
6,279
|
$ |
-
|
$ |
6,279
|
||||||
COST
OF GOODS SOLD
|
3,411
|
-
|
3,411
|
|||||||||
Gross
profit
|
$ |
2,868
|
$ |
-
|
$ |
2,868
|
||||||
EXPENSES
|
||||||||||||
|
||||||||||||
General
and administrative expenses
|
1,096,034
|
64,361
|
1,160,395
|
|||||||||
|
||||||||||||
LOSS
FROM OPERATIONS
|
(1,093,166 | ) | (64,361 | ) | (1,157,527 | ) | ||||||
|
||||||||||||
Interest
expense
|
20,065
|
-
|
20,065
|
|||||||||
|
||||||||||||
Loss
before provision for income taxes
|
(1,113,231 | ) | (64,361 | ) | (1,177,592 | ) | ||||||
Provision
for income taxes
|
-
|
-
|
-
|
|||||||||
Net
loss
|
$ | (1,113,231 | ) | $ | (64,361 | ) | $ | (1,177,592 | ) | |||
Net
loss per share basic and diluted
|
$ | (0.05 | ) | $ | (0.00 | ) | $ | (0.06 | ) | |||
Weighted
average per common share
|
20,764,873
|
19,200,295
|
19,982,584
|
|||||||||
|
|
Common
stock to be issued
|
|
|
Common
stock issued and outstanding
|
|
|
Additonal
paid in capital
|
|
|
Deficit
Accumulated During the Development Stage
|
|
|
Total
Stockholders' Equity
(Deficiency)
|
|
|||||||||||||
|
|
Shares
|
|
|
Amount
|
|
|
Shares
|
|
|
Amount
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Balance
July 22, 2005 (inception)
|
|
|
-
|
|
|
$
|
-
|
|
|
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock to be issued in connection with Incorporation (July 22,
2005)
|
|
|
4,000,000
|
|
|
|
10,000
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
10,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock to be issued - consulting services
|
|
|
16,150,000
|
|
|
|
40,375
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
40,375
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock to be issued - private placement, net of issuance costs of
$58,255
|
|
|
461,750
|
|
|
|
126,445
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
126,445
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(64,361
|
)
|
|
|
(64,361
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
June 30, 2006
|
|
|
20,611,750
|
|
|
|
176,820
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(64,361
|
)
|
|
|
112,459
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance
of common stock
|
|
|
(20,611,750
|
)
|
|
|
(176,820
|
)
|
|
|
20,611,750
|
|
|
|
2,061
|
|
|
|
174,759
|
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beneficial
conversion discount - convertible debt
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
18,750
|
|
|
|
-
|
|
|
|
18,750
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
stock issued - consulting services
|
|
|
-
|
|
|
|
-
|
|
|
|
660,000
|
|
|
|
66
|
|
|
|
622,334
|
|
|
|
-
|
|
|
|
622,400
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance
of stock options - employee
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
231,300
|
|
|
|
|
|
|
|
231,300
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
loss
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(1,113,231
|
)
|
|
|
(1,113,231
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance
June 30, 2007
|
|
|
-
|
|
|
$
|
-
|
|
|
|
21,271,750
|
|
|
$
|
2,127
|
|
|
$
|
1,047,143
|
|
|
$
|
(1,177,592
|
)
|
|
$
|
(128,322
|
)
|
Fiscal
|
July
22, 2005
|
July
22, 2005
|
||||||||||
Year
|
(inception)
|
(inception)
|
||||||||||
ended
|
through
|
through
|
||||||||||
June
30,
|
June
30,
|
June
30,
|
||||||||||
2007
|
2006
|
2007
|
||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Net
loss
|
$ | (1,113,231 | ) | $ | (64,361 | ) | $ | (1,177,592 | ) | |||
Adjustments
to reconcile net loss to net cash used in operating
|
||||||||||||
activities:
|
||||||||||||
Common
stock issued - consulting services
|
622,400
|
40,375
|
$ |
662,775
|
||||||||
Issuance
of stock options - employee
|
231,300
|
- |
231,300
|
|||||||||
Amortization
of beneficial conversion discount
|
18,750
|
- |
18,750
|
|||||||||
Changes
in operating assets and liabilities
|
||||||||||||
(Increase)/Decrease
in:
|
||||||||||||
Accounts
receivable
|
(6,904 | ) | - | (6,904 | ) | |||||||
Other
receivables
|
(7,000 | ) | - | (7,000 | ) | |||||||
Inventories
|
(2,853 | ) | (60,789 | ) | (63,642 | ) | ||||||
Other
|
920
|
(7,955 | ) | (7,035 | ) | |||||||
Security
deposits
|
-
|
(200 | ) | (200 | ) | |||||||
Increase/(Decrease)
in:
|
||||||||||||
Accounts
payable and accrued expenses
|
26,623
|
10,000
|
36,623
|
|||||||||
|
||||||||||||
Net
cash used in operating activities
|
(229,995 | ) | (82,930 | ) | (312,925 | ) | ||||||
|
||||||||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Trademark
|
(325 | ) |
-
|
(325 | ) | |||||||
Net
cash used in investing activities
|
(325 | ) |
-
|
(325 | ) | |||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Net
proceeds from private placement
|
-
|
126,445
|
126,445
|
|||||||||
Proceeds
from sale of founders shares
|
-
|
10,000
|
10,000
|
|||||||||
Proceeds
from notes payable
|
50,000
|
-
|
50,000
|
|||||||||
Advances
from officers
|
13,373
|
-
|
13,373
|
|||||||||
Advances
from stockholders
|
74,350
|
-
|
74,350
|
|||||||||
Proceeds
from convertible debt
|
50,000
|
-
|
50,000
|
|||||||||
|
||||||||||||
Net
cash provided by financing activities
|
187,723
|
136,445
|
324,168
|
|||||||||
|
||||||||||||
NET
(DECREASE)/INCREASE IN CASH
|
(42,597 | ) |
53,515
|
10,918
|
||||||||
CASH,
beginning of period
|
53,515
|
-
|
-
|
|||||||||
CASH,
end of period
|
$ |
10,918
|
$ |
53,515
|
$ |
10,918
|
2007
|
|
2006
|
||||||
Advances
from officers
|
$ |
13,373
|
$ |
0
|
||||
Advances
from stockholders
|
$ |
74,350
|
$ |
0
|
2007
|
|
2006
|
||||||
Convertible
debentures described above
|
$ |
50,000
|
$ |
-
|
||||
Less:
unamortized discount
|
-
|
- | ||||||
Convertible
debt
|
$ |
50,000
|
$ |
-
|
Options
|
|
Weighted
Average Exercise Price
|
||||||
Outstanding
as of July 22, 2005 (inception)
|
-
|
$ |
-
|
|||||
Granted
|
125,000
|
0.0025
|
||||||
Exercised
|
-
|
-
|
||||||
Forfeited
|
-
|
-
|
||||||
Expired
|
-
|
-
|
||||||
Outstanding
as of June 30, 2006
|
125,000
|
$ |
0.0025
|
|||||
Granted
|
500,000
|
0.55
|
||||||
Exercised
|
-
|
-
|
||||||
Forfeited
|
-
|
-
|
||||||
Expired
|
-
|
-
|
||||||
Outstanding
as of June 30, 2007
|
625,000
|
$ |
0.44
|
2007
|
||||
Risk-free
interest rate
|
4.91 | % | ||
Expected
option life
|
5
years
|
|||
Dividend
yield
|
0 | % | ||
Volatility
|
120 | % | ||
Exercise
price
|
$ |
0.55
|
·
|
The
risk free interest rate for the period within the contractual life
of the
option is based on the 5-year U.S Treasury yield at the time of
the
grant
|
·
|
The
expected term of the options granted represents the period of time
that
the options granted are expected to be
outstanding
|
·
|
Historically,
the Company has not paid a dividend on its common shares and does
not
expect to do so in the future
|
·
|
The
volatility assumption represents an expectation of the volatility
of the
price of the underlying shares for the expected term of the option,
considering factors such as historical stock price and stock volatility
of
other companies within the
industry.
|
|
2007
|
2006
|
||||||
Current
(benefit) provision: federal
|
$ |
-
|
$ |
-
|
||||
Current
provision: state
|
-
|
-
|
||||||
Total
current provision
|
-
|
-
|
||||||
|
||||||||
Deferred
provision: federal
|
—
|
—
|
||||||
Deferred
provision: state
|
—
|
—
|
||||||
Total
deferred provision
|
—
|
—
|
||||||
|
||||||||
Total
provision (benefit) for income taxes from continuing
operations
|
$ |
-
|
$ |
-
|
||||
|
|
2007
|
2006
|
||||||
Net
deferred tax assets:
|
|
|
||||||
Net
operating loss carryforwards
|
$ |
378,000
|
$ |
64,000
|
||||
Less
valuation allowance
|
(378,000 | ) | (64,000 | ) | ||||
|
||||||||
Total
net deferred tax assets
|
$ |
-
|
$ |
-
|
||||
|
|
2007
|
2006
|
||||||
Federal
Statutory Rate
|
35 | % | 35 | % | ||||
Other
|
(7 | )% | - | |||||
Valuation
allowance
|
(28 | )% | (35 | )% | ||||
Effective
income tax (benefit) provision rate from continuing
operations
|
-
|
-
|
Name
|
Age
|
Position
|
||
Paul
S. Lipschutz
|
61
|
President,
CEO and Director
|
||
Robert
F. Orr
|
41
|
CFO
and Director
|
||
Brian
Lee Allen
|
43
|
Chief
Operating Officer
|
Name
and
Address of
Beneficial
Owner
|
Amount
and
Nature
of
Beneficial
Ownership
|
Percent
of
Class
|
||||||||||
Paul
S. Lipschutz
41
Lambert Lane, Lambertville, NJ
|
12,805,000
|
(1 | ) | 60.2 | % | |||||||
Robert
F. Orr
504
Catharine Street, Philadelphia, PA
|
0
|
(2 | ) | 0.0 | % | |||||||
Brian
Lee Allen
Ft.
Lauderdale, FL
|
0
|
0.0 | % | |||||||||
All
officers and directors as a group (2 persons)
|
12,805,000
|
60.2 | % |
(1)
|
Paul
Lipschutz owns 60.2% of our to be issued and outstanding common
stock and
has the effective power to elect all members of the Board of Directors
and
to control the vote of substantially all of the matters relating
to the
Company.
|
(2)
|
Robert
Orr has a 25% ownership interest in each of two partnerships, which
each
own 5,000 shares of the Company’s common
stock.
|
Designation of
Exhibit
as Set
Forth in Item 601
of
Regulation S-B
|
Description
|
|
3.1
|
Articles
of incorporation
|
|
3.2
|
Bylaws
|
|
3.3
|
Articles
of Amendment to Articles of Incorporation
|
|
4.1
|
Copy
of common stock certificate
|
|
5.1
10.1
|
Opinion
of Mark Perry, Esq.
Employment
Contract Agreement dated July 1, 2006
|
|
14.1
|
Code
of Ethics
|
|
23.1
|
Consent
of Carlin, Charron & Rosen, LLP
|
|
23.2
|
Consent
of Mark Perry, Esq.(included in Exhibit 5.1)
|
1.
|
Audit
Fees - the aggregate fees billed for the fiscal year ended June
30, 2007
for the audit of the Company’s financial statements, review of the interim
financial statements and services provided in connection with regulatory
filings totaled $37,789.
|
2.
|
Audit-Related
Fees - there were no audit related fees billed during the years
ended June
30, 2007.
|
3.
|
Tax
Fees – there were no tax related fees billed during the years ended June
30, 2007
|
WaterPure International, Inc. | |||
Date:
September
26, 2007
|
By:
|
/s/ Paul S. Lipschutz | |
Paul S. Lipschutz | |||
Chief Executive Officer, Director | |||
Date:
September
26, 2007
|
By:
|
/s/ Paul S. Lipschutz | |
Paul S. Lipschutz | |||
Chief Executive
Officer, Director
(Principal Executive Officer)
|
|||
Date:
September
26, 2007
|
By:
|
/s/ Robert F. Orr | |
Robert F. Orr | |||
Chief Financial
and
Accounting
Officer,
Director
(Principal
Financial and Accounting Officer)
|
|||