UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

[X]	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2014
OR
[  ]	TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission File Number: 000-51048

 

ASIA PROPERTIES, INC.

(Exact name of registrant as specified in its charter)

 

Nevada		47-0855301
(State or other jurisdiction of incorporation or organization)		(IRS Employer Identification No.)
119 Commercial Street Suite 190-115, Bellingham Washington 98225		98225
(Address of principal executive offices)		(Zip Code)

 

(360) 392-2841

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X] No [  ]

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filed,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer [  ]	Accelerated filer [  ]
Non-accelerated filer [  ] (Do not check if a smaller reporting company)	Smaller reporting company [X]

  

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act. Yes [  ] No [X]

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date: As of January 5, 2015, the issuer had 50,199,362 shares of common stock outstanding.

 

 

  

ASIA PROPERTIES, INC.

Quarterly Report on Form 10-Q

For the Quarterly Period Ended September 30, 2014

 

FORWARD-LOOKING STATEMENTS

 

This Form 10-Q for the quarterly period ended September 30, 2014 contains forward-looking statements that involve risks and uncertainties. Forward-looking statements in this document include, among others, statements regarding our capital needs, business plans and expectations. Such forward-looking statements involve assumptions, risks and uncertainties regarding, among others, the success of our business plan, availability of funds, government regulations, operating costs, our ability to achieve significant revenues, our business model and products and other factors. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expect”, “plan”, “intend”, “anticipate”, “believe”, “estimate”, “predict”, “potential” or “continue”, the negative of such terms or other comparable terminology. In evaluating these statements, you should consider various factors, including the assumptions, risks and uncertainties set forth in reports and other documents we have filed with or furnished to the SEC. These factors or any of them may cause our actual results to differ materially from any forward-looking statement made in this document. While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding future events, our actual results will likely vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. The forward-looking statements in this document are made as of the date of this document and we do not intend or undertake to update any of the forward-looking statements to conform these statements to actual results, except as required by applicable law, including the securities laws of the United States.

 

  

TABLE OF CONTENTS

 

FORM 10-Q

QUARTER ENDED SEPTEMBER 30, 2014

 

			Page
PART I - FINANCIAL INFORMATION
Item 1. Consolidated Financial Statements (Unaudited)			F-1
	Consolidated Balance Sheets as of September 30, 2014 and December 31, 2013		F-1
	Consolidated Statements of Comprehensive Loss for the three and nine month periods ended September 30, 2014 and 2013 and for the period from inception through September 30, 2013		F-2
	Consolidated Statements of Stockholders’ Deficit for the period from December 31, 2004 through September 30, 2014		F-4
	Consolidated Statements of Cash Flows for the three and nine month periods ended September 30, 2014 and 2013 and for the period from April 6, 1998 (Inception) through September 30, 2014		F-5
	Selected notes to unaudited consolidated financial statements		F-8
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations			4
Item 3. Quantitative and Qualitative Disclosures About Market Risk			5
Item 4. Controls and Procedures			5
PART II - OTHER INFORMATION
Item 1. Legal Proceedings			6
Item 2. Unregistered Sales of Equity Securities and Proceeds			6
Item 3. Default upon Senior securities			6
Item 4. Submission of Matters to a Vote of Security Holders			6
Item 5. Other Information			6
Item 6. Exhibits			6

  

 

PART I - FINANCIAL INFORMATION

 

ITEM 1: CONSOLIDATED FINANCIAL STATEMENTS

 

ASIA PROPERTIES, INC.

(A DEVELOPMENT STAGE COMPANY)

CONSOLIDATED BALANCE SHEETS

AS OF SEPTEMBER 30, 2014 AND DECEMBER 31, 2013

 

		(Unaudited) September 30, 2014				December 31, 2013
Assets
Current
Cash		$	777			$	5,475
Total Current Assets			777				5,475
Total Assets		$	777			$	5,475
Liabilities and Stockholders’ Deficit
Current liabilities
Accounts payable and accrued liabilities			29,489				34,038
Notes payable (note 6)			2,500				12,500
Line of Credit (note 5)			48,267				49,340
Short Term Loans (note 3)			-				2,765
Due to Related Party (note 4)			1,243,385				1,172,279
Total Current liabilities		$	1,323,641			$	1,270,922
Commitments and contingencies
Stockholders’ Deficit
Common stock, $0.001 par value, 1,000,000,000 shares Authorized 42,829,632 issued and outstanding on Sept 30, 2014 and 41,921,362 on December 31, 2013			16,556				15,648
Additional paid in capital			3,335,772				3,291,280
Donated Capital			345,000				345,000
Deficit accumulated during the development stage			(5,020,192	)			(4,917,375	)
			(1,322,864	)			(1,265,447	)
Total Liabilities and Stockholders’ Deficit		$	777			$	5,475

 

See accompanying notes to the consolidated financial statements.

 

 

ASIA PROPERTIES, INC.
(A DEVELOPMENT STAGE COMPANY)

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

 

		For The Three Months Ended September 30, 2014				For The Three Months Ended September 30, 2013
Operating expenses
General and administrative		$	7,854			$	9,395
Management fees			15,000				15,000
Professional fees			1,471				1,429
Consulting			25,000				171,500
Total operating expenses			49,325				197,324
Loss from operations			(49,325	)			(197,324	)
Net loss		$	(49,325	)		$	(197,324	)

 

See accompanying notes to the consolidated financial statements.

 

 

ASIA PROPERTIES, INC.

(A DEVELOPMENT STAGE COMPANY)

UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

AND FROM INCEPTION ON APRIL 6, 1998 THROUGH SEPTEMBER 30, 2014

 

		Note				For the Nine Months Ended September 30, 2014				For the Nine Months Ended September 30, 2013				Cumulative for The Period from April 6, 1998 (Inception) Through September 30, 2014
Revenue						$	-			$	-			$	(46,432	)
Operating expenses
General and administrative expenses							18,783				34,362				1,962,425
Commissions							-				-				42,000
Management fees							45,000				45,000				1,388,614
Professional fees							14,034				4,258				846,137
Consulting fees							25,000				173,194				411,261
Total operating expenses							102,817				256,814				4,650,437
Loss from operations							(102,817	)			(256,814	)			(4,696,869	)
Interest income							-				-				3,294
Gain on disposal of subsidiary							-				-				27,120
Gain on settlement of debt							-				-				178,307
Income taxes recovered							-				-				595
Write-off of investments in mining claims															(525,000	)
Write-down of property and equipment							-				-				(7,639	)
Net comprehensive loss						$	(102,817	)		$	(256,814	)		$	(5,020,192	)
Weighted average number of shares:
Basic and diluted							42,829,362				41,921,362
Net loss per share – Basic and diluted						$	(0.002	)		$	(0.0061	)

 

See accompanying notes to the consolidated financial statements.

 

 

ASIA PROPERTIES, INC.

(A DEVELOPMENT STAGE COMPANY)

UNAUDITED STATEMENTS OF STOCKHOLDERS’ DEFICIT

FROM DECEMBER 31, 2004 THROUGH SEPTEMBER 30, 2014

 

										Additional
		Common Stock								Paid In				Donated
		Number of				Amount				Capital				Capital				Deficit				Total
		shares				$				$				$				$				$
Balance December 31, 2004			30,076,112				7,519				1,729,509				270,000				(2,064,981	)			(57,953	)
Issued for services at $0.26 per share			40,000				40				10,360				-				-				10,400
Issued for services at $0.50 per share			160,000				50				24,950				-				-				25,000
Issued for properties at $0.50 per share			200,000				600				299,400				-				-				300,000
Issued for properties at $1.45 per share			2,400,000				45				159,955				-				-				160,000
Issued for properties at $2.55 per share			180,000				350				899,650				-				-				900,000
Issued for cash at $0.50 per share			1,400,000				1,050				523,950				-				-				525,000
Finders fee paid			4,200,000				-				(25,000	)							-				(25,000	)
Donated capital			-				-				-				60,000				-				60,000
Net loss for the year			-				-				-				-				(247,792	)			(247,792	)
Balance, December 31, 2005			38,616,112				9,654				3,622,774				330,000				(2,312,773	)			1,649,655
Option exercised for cash at $1.00 per share			160,000				40				39,960				-				-				40,000
Issued for cash at $1.00			420,000				105				104,895				-				-				105,000
Donated capital			-				-				-				15,000				-				15,000
Net loss for the year			-				-				-				-				(252,278	)			(252,278	)
Balance December 31, 2006			39,196,112				9,799				3,767,629				345,000				(2,565,051	)			1,557,377
Issued for cash at $1.00			220,000				55				54,945				-				-				55,000
Finders fee paid			11,000				3				2,747				-				-				2,750
4 for 1 split on 16 April							-				-				-				-				-
Net loss for the year			-				-				-				-				(298,260	)			(298,260	)
Balance December 31, 2007			39,115,112				9,857				3,825,321				345,000				(2,863,311	)			1,316,867
Issued for cash at $0.20			225,000				225				44,775				-				-				45,000
Finders fee paid			11,250				11				2,239				-				-				2,250
Cancelled due to unsuccessful transfer of property rights			(3,940,000	)			(985	)			(1,323,460	)			-				-				(1,324,445	)
Net loss for the year			-				-				-				-				(513,977	)			(513,977	)
Balance December 31, 2008			35,411,362				9,108				2,548,875				345,000				(3,377,288	)			(474,305	)
Cancelled due to unsuccessful transfer of property rights			(40,000	)			(10	)			(35,545	)			-				-				(35,555	)
Net loss for the period			-				-				-				-				(114,528	)			(114,528	)
Balance December 31, 2009			35,371,362				9,098				2,513,330				345,000				(3,491,816	)			(624,388	)
Issued for services			350,000				350				52,150				-				-				52,500
Net loss for the period			-				-				-				-				(179,258	)			(179,258	)
Balance December 31, 2010			35,721,362				9,448				2,565,480				345,000				(3,671,074	)			(751,146	)
Net loss for the period			-				-				-				-				(32,957	)			(32,957	)
Issued for properties at $0.05 per share			500,000				500				24,500				-				-				25,000
Issued for properties at $0.245 per share			2,000,000				2,000				488,000				-				-				490,000
Issued for commission at $0.21 per share			200,000				200				41,800				-				-				42,000
Net comprehensive loss for the year			-				-				-				-				(244,512	)			(244,512	)
Balance December 31, 2011			38,421,362				12,148				3,119,780				345,000				(3,915,587	)			(438,659	)
Net comprehensive loss for the year			-				-				-								(190,792	)			(190,792	)
Balance December 31, 2012			38,421,362				12,148				3,119,780				345,000				(4,106,380	)			(629,452	)
Issued for debt settlement and services at $0.05 per share			3,500,000				3,500				171,500				-				-				175,000
Net comprehensive loss for the year			-				-				-				-				(810,995	)			(810,995	)
Balance December 31, 2013			41,921,362				15,648				3,291,280				345,000				(4,917,375	)			(1,265,447	)
Net comprehensive loss for the quarter			-				-				-				-				(25,830	)			(25,830	)
Balance March 31, 2014			41,921,362				15,648				3,291,280				345,000				(4,943,205	)			(1,291,277	)
Net comprehensive loss for the quarter			-				-				-				-				(27,662	)			(27,662	)
Balance June 30, 2014			41,921,362				15,648				3,291,280				345,000				(4,970,867	)			(1,318,939	)
Net comprehensive loss for the quarter			-				-				-				-				(49,325	)			(49,325	)
Issued for debt settlement and services at $0.05 per share			908,000				908				44,492				-				-				45,400
Balance September 30, 2014			42,829,362				16,556				3,335,772				345,000				(5,020,192	)			(1,322,864	)

 

See accompanying notes to the consolidated financial statements.

 

 

ASIA PROPERTIES, INC.
(A DEVELOPMENT STAGE COMPANY)

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOW

FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

 

		For The Three Months Ended September 30, 2014				For The Three Months Ended September 30, 2013
Cash flows used in operating activities
Net loss		$	(49,325	)		$	(197,324	)
Adjustments to reconcile net loss to net cash used in operating activities
Amortized property rights			-				-
Cancellation of shares issued for property rights			-				-
Deferred assets amortized			-				-
Depreciation			-				-
Donated management services			-				-
Gain on settlement of debt			-				-
Investment written off			-				-
Property rights written off			-				-
Write-off of investments in mining claims
Shares issued for debt			20,400
Shares issued for investments acquired			-				-
Shares issued for services received			25,000				171,500
Additional paid-in-capital realized on shares issued			-				-
Write down of investment to net realizable value			-				-
Write down of property and equipment			-				-
Changes in operating assets and liabilities
Increase in payable and accrued liabilities			(16,450	)			4,461
Net cash used in operating activities		$	(20,375	)		$	(21,363	)
Cash flow used in investing activities
Property rights acquired for resale
Investments in mining claims acquired
Increase in deferred assets
Purchase of property and equipment
Purchase of investment
Net cash used in investing activities		$	-			$	-
Cash flows from financing activities
Issuance of stock			-				-
Increase/ (decrease) in short term loans			-				(2,503	)
Increase in due to related parties			21,225				25,958
Additions to long term loans			(622	)			(18	)
(Payments) advances made on long term loan
Net cash (used in) provided by financing activities		$	20,603			$	23,437
Net increase/ (decrease) in cash		$	228			$	2,074
Cash, beginning of period		$	549			$	471
Cash, end of period		$	777			$	2,545

 

See accompanying notes to the consolidated financial statements.

 

 

ASIA PROPERTIES, INC.

(A DEVELOPMENT STAGE COMPANY)

UNAUDITED STATEMENT OF CASH FLOWS

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

AND FROM INCEPTION ON APRIL 6, 1998 THROUGH SEPTEMBER 30, 2014

 

		For The Nine Months Ended September 30, 2014				For The Nine Months Ended September 30, 2013				Cumulative For The Period From April 6, 1998 (Inception) Through September 30, 2014
Cash flows used in operating activities
Net loss		$	(102,817	)		$	(256,814	)		$	(5,020,192	)
Adjustments to reconcile net loss to net cash used in operating activities
Amortized property rights			-				-				97,310
Cancellation of shares issued for property rights			-				-				(1,360,000	)
Deferred assets amortized			-				-				12,507
Depreciation			-				-				12,599
Donated management services			-				-				345,000
Gain on settlement of debt			-				-				(178,307	)
Investment written off			-				-				20,000
Property rights written off			-				-				1,637,900
Write-off of investments in mining claims			-				-				525,000
Shares issued for debt			20,400				-				20,400
Shares issued for investments acquired			-				-				2,500
Shares issued for services received			25,000				171,500				953,326
Additional paid-in-capital realized on shares issued			-				-				606,450
Write down of investment to net realizable value			-				-				37,400
Write down of property and equipment			-				-				7,639
Changes in operating assets and liabilities
Increase in payables and accruals			(14,549	)			(23,985	)			467,799
Net cash (used) in operating activities		$	(71,966	)		$	(109,299	)		$	(1,812,669	)

 

See accompanying notes to the consolidated financial statements.

 

 

ASIA PROPERTIES, INC.

(A DEVELOPMENT STAGE COMPANY)

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOW (Continued)

FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2014 AND 2013

AND FROM INCEPTION ON APRIL 6, 1998 THROUGH SEPTEMBER 30, 2014

 

		For the Nine Months Ended September 30, 2014				For the Nine Months Ended September 30, 2013				Cumulative For the period from April 6, 1998 (Inception) through September 30, 2014
Cash flow used in investing activities
Property rights acquired for resale			-				-				(375,209	)
Investment in mining claims acquired											(652,000	)
Increase in deferred assets			-				-				(12,507	)
Purchase of property and equipment			-				-				(20,238	)
Purchase of investment											(20,000	)
Net cash used in investing activities		$	-			$	-			$	(1,079,954	)
Cash flows from financing activities
Issuance of stock			-				-				1,406,600
(Decrease) in short term loans			(2,765	)			7,059				(11,599	)
Increase in due to related parties			71,106				101,938				1,437,928
Additions to long term loans			(1,073	)			(45	)			7,486
(Payments) advances made on long term loan			-								52,985
Net cash provided by (used in) financing activities		$	67,268			$	108,952			$	2,893,400
Net increase/ (decrease) in cash		$	(4,698	)		$	(347	)		$	777
Cash, beginning of period		$	5,475			$	2,892
Cash, end of period		$	777			$	2,545			$	777

 

See accompanying notes to the financial statements.

 

 

Asia Properties, Inc.

(A Development Stage Company)

Notes to the Financial Statements

September 30, 2014

 

1. Basis of Presentation

 

The accompanying unaudited interim consolidated financial statements of Asia Properties, Inc. (the “Company” or “Asia Properties”), have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules of the Securities and Exchange Commission, and should be read in conjunction with the audited financial statements and notes thereto contained in Asia Properties’ Annual Report filed with the SEC on Form 10-K. In the opinion of management, all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of financial position and the results of operations for the interim periods presented have been reflected herein. The results of operations for interim periods are not necessarily indicative of the results to be expected for the full year. Notes to the financial statements which would substantially duplicate the disclosure contained in the audited financial statements for fiscal 2013 as reported in the form 10-K have been omitted.

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of Asia Properties Inc. and its 100% owned subsidiary, Asia Properties (HK) Limited that was registered in Hong Kong on November 7, 2007, after elimination of all significant inter-company accounts and transactions.

 

2. Going Concern

 

Planned principal activities have begun but Asia Properties has not generated significant revenues to date. The Company had a net loss of $102,817 and had a negative working capital ($1,322,864) and stockholders’ deficit of $1,322,864 at September 30, 2014. These matters raise substantial doubt about Asia Properties’ ability to continue as a going concern. Continuation of Asia Properties’ existence depends upon its ability to obtain additional capital. Management’s plans in regards to this matter include receiving continued financial support from directors and raising additional equity financing in 2013. These financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

3. Short-term Loan

 

In February 2008, the Company secured financing from Capital One in the amount of $100,000. The loan requires the Company to repay $1,739 on a monthly basis. Interest is charged at the annual prime rate plus 3.25%. As of September 30, 2014, the Capital One Loan has been paid in full (2013 - $2,765). The short term loan is secured personally by the sole director and officer of the Company.

 

4. Due to related party

 

During the quarter ended September 30, 2014, the Company accrued management fees of $15,000 (2013 - $15,000) to the Chief Executive Officer (“CEO”) and sole director of the Company. As of September 30, 2014, the Company owed its CEO $1,243,385 (2013 - $1,172,279) for expense reimbursements and accrued management fees, which are reflected as due to related party on the balance sheet. These advances are unsecured, non-interest bearing and payable upon demand.

 

5. Line of Credit

 

In February 2007, the Company was approved for a revolving credit facility at Wells Fargo for a maximum business line amount of $50,000. Interest is charged at 12.75% annually. As at September 30, 2014, the balance amounted to $48,267 (2013 - $49,340). The line of credit is secured personally by the sole director and officer of the Company.

 

 

Asia Properties, Inc.

(A Development Stage Company)

Notes to the Financial Statements

September 30, 2014

 

6. Notes payable

 

The Company issued demand promissory notes to two individuals during 2011 and 2012. The original principal of $16,000 is payable upon demand. Interest is accrued at 2% per month. During the year ended December 31, 2013, $3,500 of the demand promissory notes were transferred to an arm’s length party and settled by the issuance of common stock. During the quarter ended September 30, 2014, $10,000 of the demand promissory note was settled by the issuance of common stock. As at September 30, 2014, the notes payable balance is $2,500 (2013- $12,500).

 

7. Common Stock

 

The following table summarizes common stock issuances for the years ended as of December 31, 2012 and 2013, and to the period ended September 30, 2014:

 

						Number of Shares				Common Stock Amount
Balance as of December 31, 2012							38,421,362			$	12,148
Issued 3,500,000 shares for the settlement of debt and services			a				3,500,000				3,500
Balance as of December 31, 2013							41,921,362			$	15,648
Issued 408,000 shares for the settlement of debt			b				408,000				408
Issued 500,000 shares for the settlement of services			c				500,000				500
Balance as of September 30, 2014							42,829,362			$	16,556

 

a)	On September 26, 2013, the Company issued 3,500,000 shares valued at $175,000, based on the current market price of $0.05, to settle a debt of $3,500 (See Note 7) and for consulting fees of $171,500, which have been charged to the consolidated statement of comprehensive loss.
b)	On August 25, 2014, the Company issued 408,000 common shares at $0.05 to settle a debt of $14,000 and accrued interest of $6,400.
c)	On August 27, 2014, the Company issued 500,000 common shares for services rendered to consultant.

 

8. Commitments and Contingencies

 

The Company has a monthly office rental of $77 in Hong Kong.

 

The Company rents an office in Bellingham, Washington, which costs $100 per month on a month to month basis.

 

 

Asia Properties, Inc.

(A Development Stage Company)

Notes to the Financial Statements

September 30, 2014

 

9. Subsequent Events

 

On December 29, 2014, the Company issued 370,000 restricted common shares to settle $18,5000 of debt.

 

On January 1, 2015, the Company issued 6,800,000 restricted common shares to settle $340,000 of debt owed to the director and officer of the Company.

 

On January 1, 2015, the Company issued 200,000 restricted common shares for services rendered.

 

On January 6, 2015, the Company entered into a Purchase and Sale Agreement (“PSA”) to acquire 100% of the shares of Asia Innovation Technology Limited (“AITL”). Pursuant to the PSA, the Company will issue 950-million restricted common shares of the Company to AITL. Please see January 6, 2015 8K filing for addition details.

 

 

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operation.

 

Asia Properties, Inc. was originally established to seek opportunities to invest in real estate and develop resorts in South East Asia. The Company has on July 1, 2011 restructured itself into a junior mining exploration company.

 

At the moment, it intends to deploy Asian based capital to develop and acquire mining assets in North America and other favorable mining jurisdictions.

 

The Company is highly leveraged and expects to be able to capitalize on suitable possibilities when identified.

 

Limited Operating History; Need for Additional Capital

 

There is no historical financial information about us upon which to base an evaluation of our performance. We have no revenue generating assets. We cannot guarantee we will be successful in our business operations. Our business is subject to risks inherent in the establishment of a new business enterprise, including limited capital resources and possible cost overruns due to price and cost increases in services.

 

We will require additional financing to cover our costs that we expect to incur over the next twelve months. We believe debt financing will not be an alternative for funding our operations, as we do not have tangible assets to secure any debt financing. We anticipate that additional funding will be in the form of equity financing from the sale of our common stock. However, we cannot provide any assurance that we will be able to raise sufficient funding from the sale of our common stock to fund our plan of operations. In the absence of such financing, we will not be able to continue and our business plan will fail.

 

Results of Operations

 

Revenues

 

We have not generated any revenues from our operations during the nine-month period ended September 30, 2014 or during last two years.

 

Expenses

 

During the three month period ended September 30, 2014, the Company incurred general and administrative expenses of $7,854 (2013 - $9,395), management fees of $15,000 (2013 - $15,000), professional fees of $1,471 (2013 – $1,428), and consulting fees of $25,000 (2012 - $171,500).

 

We incurred general and administrative expenses of $18,783 for the nine-month period ended September 30, 2014, as compared to $34,362 for the same period in 2013 a decrease of $15,579 or 55%.

 

Our management fees remained the same at $45,000 for the nine-months ended September 30, 2014 and 2013.

 

We incur consulting fees of $25,000 (2013- $173,194) and professional fees of $14,033 (2013 – 4,258) during the nine-month period ended September 30, 2014.

 

Liquidity and Capital Resources

 

As at September 30, 2014, the Company had cash and cash equivalents of $777 (2013 - $5,475).

 

Cash Used in Operating Activities

 

Net cash outflow from operating activities in the three months ended September 30, 2014 was $20,375 (2013 - $21,363). Net cash used in operating activities in the nine-month period ended September 30, 2014 was $71,966 (2013 - $109,299).

 

 

Cash Used in Investing Activities

 

No funds were used in investing activities for the three-month period ended September 30, 2014 (2013 -nil). Again, no funds were used in investing activities for the nine-month period ended September 30, 2014 (2013 - nil).

 

Cash from Financing Activities

 

For the three-month period ended September 30, 2014, the Company received $20,603 (2013 - $23,437 cash outflow) in financing activities, specifically, advances from related parties. In the nine month period ended September 30, 2014, the Company has $67,268 cash inflow (2013 - $108,952 cash inflow) in financing activities. We have funded our business to date primarily from sales of our common stock and related party advances. There is no assurance that we will be able to achieve further sales of our common stock or any other form of additional financing.

 

Going Concern

 

We are a development stage company. A development stage company’s management devotes most of its activities to developing a market for its products and services. Planned principal activities have begun, but we have not generated revenues to date.

 

Future Financing

 

We anticipate continuing to rely on equity sales of our common stock in order to continue to fund our business operations. Issuances of additional shares will result in dilution to our existing shareholders. There is no assurance that we will achieve any additional sales of our equity securities or arrange for debt or other financing to fund our planned operations.

 

Off-Balance Sheet Arrangements

 

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to stockholders.

 

Item 3. Quantitative and Qualitative Disclosures About Market Risk.

 

Not applicable.

 

Item 4. Controls and Procedures.

 

Disclosure Controls and Procedures

 

We maintain disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended) that are designed to ensure that information required to be disclosed by us in reports we file or submit under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and that such information is accumulated and communicated to management, including the our Chief Executive Officer (as our chief executive officer and chief financial officer), to allow timely decisions regarding required disclosures. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily is required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures. As of the end of the period covered by this report, and under the supervision and with the participation of management, including our Chief Executive Officer, who is responsible for establishing and maintaining adequate internal control over financial reporting as such term is defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act, such persons conducted an evaluation of the effectiveness of the design and operation of these disclosure controls and procedures. Based on this evaluation and subject to the foregoing, our Chief Executive Officer concluded that these controls are not effective because there are material weaknesses in our internal controls over financial reporting. A material weakness is a deficiency, or a combination of control deficiencies, in internal control over reporting such that there is a reasonable possibility that that a material misstatement our annual or interim financial statements will not be prevented or detected on a timely basis.

 

Changes in Internal Control Over Financial Reporting

 

During the period covered by this report, there have not been any changes in the internal controls that have materially affected or are reasonably likely to materially affect, the our internal control over financial reporting. However, please note the discussion above.

 

 

PART II - OTHER INFORMATION

 

Item 1. Legal Proceedings.

 

We are not presently a party to any legal proceedings and, to our knowledge, no such proceedings are threatened or pending.

 

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.

 

On September 26, 2013, the Company issued 3,500,000 common shares with a fair value of $175,000 to settle a debt of $3,500 and for consulting fees of $171,500.

 

Item 3. Defaults Upon Senior Securities.

 

None.

 

Item 4. Submission of Matters to a Vote of Security Holders.

 

No matters were submitted to our security holders for a vote during the nine months ended September 30, 2013.

 

Item 5. Other Information.

 

None.

 

Item 6. Exhibits.

 

The following exhibits are attached hereto:

 

Exhibit No.		Description of Exhibit
31.1		Certification of Principal Executive Officer pursuant to Rule 13a-15(e) and 15d-15(e), promulgated under the Securities and Exchange Act of 1934, as amended, filed herewith
31.2		Certification of Principal Financial Officer pursuant to Rule 13a-15(e) and 15d-15(e), promulgated under the Securities and Exchange Act of 1934, as amended, filed herewith
32.1		Certification of Principal Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith
32.2		Certification of Principal Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, filed herewith

 

101.INS		XBRL Instance Document*
101.SCH		XBRL Taxonomy Extension Schema Document*
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document*
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document*
101.LAB		XBRL Taxonomy Extension Label Linkbase Document*
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document*

 

* Filed herewith.

 

  

SIGNATURES

 

In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

ASIA PROPERTIES, INC.

 

By:	/s/ Daniel McKinney
	Daniel Mckinney
	Chief Executive Officer
	(Principal Executive Officer and Principal Financial Officer)

 

Date: January 15, 2015