FLORIDA
|
65-1139235
|
|
(State
or other jurisdiction of incorporation
|
(IRS
Employer Identification No.)
|
|
or
organization)
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Large
accelerated filer ¨
|
Accelerated
filer ¨
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Non-accelerated
filer (Do not check if a smaller reporting company) ¨
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PART
I. FINANCIAL INFORMATION
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4
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|
Item
1. Consolidated Condensed Financial Statements and Notes - Quarter Ended
June 30, 2009
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4
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|
Item
2. Management's Discussion and Analysis or Plan of Operation
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5
|
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Item
3. Controls and Procedures
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9
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PART
II. OTHER INFORMATION
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||
Item
1. Legal Proceedings
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10
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Item
2. Unregistered Sales of Equity Securities and Use of Proceeds
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10
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Item
3. Default Upon Senior Securities
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10
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Item
4. Submission of Matters to a Vote of Security Holders
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10
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Item
5. Other Information
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10
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Item
6. Exhibits and Reports on Form 8-K
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10
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Signatures
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11
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PAGE
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F-1
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CONDENSED
CONSOLIDATED BALANCE SHEETS AS OF JUNE 30, 2009 (UNAUDITED) AND DECEMBER
31, 2008
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||
PAGE
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F-2
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CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS FOR THE THREE
AND SIX MONTHS ENDED JUNE 30, 2009 AND 2008 AND FOR THE PERIOD FROM MAY
28, 2003 (INCEPTION) TO JUNE 30, 2009 (UNAUDITED)
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||
PAGES
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F-3 – F-5
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CONDENSED
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (DEFICIT) FOR THE PERIOD
FROM MAY 28, 2003 (INCEPTION) TO JUNE 30, 2009
(UNAUDITED)
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||
PAGES
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F-6 – F-7
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CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30,
2009 AND 2008 AND FOR THE PERIOD FROM MAY 28, 2003 (INCEPTION) TO
JUNE 30, 2009 (UNAUDITED)
|
||
PAGES
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F-8 - F-18
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|
NOTES
TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
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As of
|
As
of
|
|||||||
June 30,
|
December 31,
|
|||||||
2009
|
2008
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|||||||
(Unaudited)
|
||||||||
ASSETS
|
||||||||
CURRENT
ASSETS
|
||||||||
Cash
|
$ | 35,542 | $ | 1,196 | ||||
Total
Current Assets
|
35,542 | 1,196 | ||||||
Property
& equipment, net
|
1,000 | 1,000 | ||||||
Patent
costs, net
|
82,872 | - | ||||||
TOTAL
ASSETS
|
$ | 119,414 | $ | 2,196 | ||||
LIABILITIES AND STOCKHOLDERS'
DEFICIT
|
||||||||
CURRENT
LIABILITIES
|
||||||||
Accounts
payable and accrued expenses
|
$ | 49,657 | $ | 77,060 | ||||
Loans
payable and accrued interest - related parties
|
539,857 | 312,209 | ||||||
Liabilities
held for sale - discontinued operations
|
255,387 | 253,434 | ||||||
Total
Liabilities
|
844,901 | 642,703 | ||||||
COMMITMENTS
AND CONTINGENCIES
|
||||||||
STOCKHOLDERS'
DEFICIT
|
||||||||
Attributable
to Odyssey Oil & Energy, Inc.:
|
||||||||
Preferred
stock, $.0001 par value, 20,000,000 shares authorized, none issued and
outstanding
|
- | - | ||||||
Common
stock, $.0001 par value, 650,000,000 shares authorized, 292,565,500 and
143,742,500 shares issued and outstanding, respectively
|
29,256 | 14,375 | ||||||
Additional
paid-in capital
|
82,090,549 | 26,786,251 | ||||||
Accumulated
deficit during development stage
|
(81,706,743 | ) | (27,127,703 | ) | ||||
Accumulated
other comprehensive income
|
2,004 | 3,434 | ||||||
Total
|
415,066 | (323,643 | ) | |||||
Non-controlling
interest
|
(1,140,553 | ) | (316,864 | ) | ||||
Total
Stockholders' Deficit
|
(725,487 | ) | (640,507 | ) | ||||
TOTAL LIABILITIES AND STOCKHOLDERS'
DEFICIT
|
$ | 119,414 | $ | 2,196 |
For
the
|
||||||||||||||||||||
Period
From
|
||||||||||||||||||||
For
the Three
|
For
the Three
|
For
the Six
|
For
the Six
|
May
28,2003
|
||||||||||||||||
Months Ended
|
Months Ended
|
Months Ended
|
Months Ended
|
(Inception)
|
||||||||||||||||
June
30, 2009
|
June
30, 2008
|
June
30, 2009
|
June
30, 2008
|
to June 30, 2009
|
||||||||||||||||
REVENUE
|
$ | - | $ | - | $ | - | $ | - | $ | 26,695 | ||||||||||
OPERATING
EXPENSES
|
||||||||||||||||||||
Drilling
costs and expenses
|
- | - | - | - | 51,886 | |||||||||||||||
General
and administrative
|
2,486,460 | 14,962 | 2,502,818 | 20,529 | 2,437,870 | |||||||||||||||
Professional
fees
|
(5,548 | ) | 5,610 | 7,061 | 19,199 | 142,991 | ||||||||||||||
Amortization
|
- | - | - | - | 33,400 | |||||||||||||||
Impairment
of investment in oil and gas leases
|
- | - | - | - | 247,931 | |||||||||||||||
Impairment
of bio-fuels plant development contract
|
15,000,000 | 21,717,235 | 15,000,000 | 21,717,235 | 36,717,235 | |||||||||||||||
Impairment
of Hybrid Battery Technology license
|
37,878,422 | - | 37,878,422 | - | 37,878,422 | |||||||||||||||
Total
Operating Expenses
|
55,359,334 | 21,737,807 | 55,388,301 | 21,756,963 | 77,509,735 | |||||||||||||||
LOSS
FROM CONTINUING OPERATIONS
|
(55,359,334 | ) | (21,737,807 | ) | (55,388,301 | ) | (21,756,963 | ) | (77,483,040 | ) | ||||||||||
OTHER
INCOME (EXPENSE)
|
||||||||||||||||||||
Interest
income
|
- | - | 1 | - | 2,794 | |||||||||||||||
Interest
expense
|
(6,876 | ) | (5,211 | ) | (13,207 | ) | (10,049 | ) | (58,544 | ) | ||||||||||
Total
Other Income (Expense)
|
(6,876 | ) | (5,211 | ) | (13,206 | ) | (10,049 | ) | (55,750 | ) | ||||||||||
LOSS
FROM CONTINUING OPERATIONS BEFORE
|
||||||||||||||||||||
INCOME
TAXES
|
(55,366,210 | ) | (21,743,018 | ) | (55,401,507 | ) | (21,767,012 | ) | (77,538,790 | ) | ||||||||||
Provision
for Income Taxes
|
- | - | - | - | - | |||||||||||||||
LOSS
FROM CONTINUING OPERATIONS
|
(55,366,210 | ) | (21,743,018 | ) | (55,401,507 | ) | (21,767,012 | ) | (77,538,790 | ) | ||||||||||
LOSS
FROM DISCONTINUED OPERATIONS
|
- | (92,308 | ) | (504 | ) | (185,983 | ) | (8,736,516 | ) | |||||||||||
NET
LOSS
|
(55,366,210 | ) | (21,835,326 | ) | (55,402,011 | ) | (21,952,995 | ) | (86,275,306 | ) | ||||||||||
NET
LOSS ATTRIBUTABLE TO NON-CONTROLLING
|
||||||||||||||||||||
INTEREST
|
822,971 | - | 822,971 | - | 822,971 | |||||||||||||||
NET
LOSS ATTRIBUTABLE TO ODYSSEY OIL & ENERGY
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(54,543,239 | ) | (21,835,326 | ) | (54,579,040 | ) | (21,952,995 | ) | (85,452,335 | ) | ||||||||||
OTHER
COMPREHENSIVE INCOME
|
||||||||||||||||||||
Foreign
currency translation gain (loss)
|
(1,962 | ) | (89 | ) | (1,430 | ) | 49 | 2,004 | ||||||||||||
COMPREHENSIVE
LOSS
|
$ | (54,545,201 | ) | $ | (21,835,415 | ) | $ | (54,580,470 | ) | $ | (21,952,946 | ) | $ | (85,450,331 | ) | |||||
LOSS
PER COMMON SHARE - BASIC AND DILUTED
|
||||||||||||||||||||
Continuing
operations
|
$ | (0.25 | ) | $ | (0.19 | ) | $ | (0.30 | ) | $ | (0.22 | ) | ||||||||
Discontinued
operations
|
- | - | - | - | ||||||||||||||||
Weighted
average number of shares outstanding during the period - Basic and
Diluted
|
216,599,071 | 114,127,115 | 180,372,047 | 100,204,615 |
|
Accumulated
|
Accumulated
|
||||||||||||||||||||||||||||||||||
Additional
|
Deficit
During
|
Other
|
Deferred
|
|||||||||||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Paid-In
|
Development
|
Comprehensive
|
Stock
|
|||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Stage
|
Income
|
Compensation
|
Total
|
||||||||||||||||||||||||||||
Common
stock issued to founders for cash ($.03 per
share)
|
- | $ | - | 7,500 | $ | 1 | $ | 249 | $ | - | $ | - | $ | - | $ | 250 | ||||||||||||||||||||
Common
stock issued for license ($.03
per share
|
- | - | 49,500,000 | 4,950 | 1,645,050 | - | - | - | 1,650,000 | |||||||||||||||||||||||||||
Common
stock issued to officer as compensation ($.03
per share)
|
- | - | 21,375,000 | 2,138 | 710,362 | - | - | - | 712,500 | |||||||||||||||||||||||||||
Common
stock issued for cash ($.03
per share)
|
- | - | 2,400,000 | 240 | 79,760 | - | - | - | 80,000 | |||||||||||||||||||||||||||
Common
stock issued for cash ($.15
per share)
|
- | - | 833,334 | 83 | 124,917 | - | - | - | 125,000 | |||||||||||||||||||||||||||
- | - | |||||||||||||||||||||||||||||||||||
Common
stock issued to consultant for services ($.03
per share)
|
- | - | 24,600,000 | 2,460 | 817,540 | - | - | - | 820,000 | |||||||||||||||||||||||||||
Net
loss for the period from May 28, 2003 (inception) to December 31,
2003
|
- | - | - | - | - | (1,737,805 | ) | - | - | (1,737,805 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2003
|
- | - | 98,715,834 | 9,872 | 3,377,878 | (1,737,805 | ) | - | - | 1,649,945 | ||||||||||||||||||||||||||
Common
stock issued for cash ($.15
per share)
|
- | - | 2,016,693 | 202 | 302,301 | - | - | - | 302,503 | |||||||||||||||||||||||||||
Net
loss, 2004
|
- | - | - | - | - | (551,203 | ) | - | - | (551,203 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2004
|
- | - | 100,732,527 | 10,074 | 3,680,179 | (2,289,008 | ) | - | - | 1,401,245 | ||||||||||||||||||||||||||
Common
stock issued in reverse merger
|
- | - | 33,292,500 | 3,329 | (3,329 | ) | - | - | - | - | ||||||||||||||||||||||||||
Common
stock issued to consultant for services ($.01
per share)
|
- | - | 15,000,000 | 1,500 | 148,500 | - | - | - | 150,000 | |||||||||||||||||||||||||||
Common
stock cancelled related to license rights ($.01
per share)
|
- | - | (49,500,000 | ) | (4,950 | ) | (490,050 | ) | - | - | - | (495,000 | ) | |||||||||||||||||||||||
In-kind
contribution
|
- | - | - | - | 12,000 | - | - | - | 12,000 | |||||||||||||||||||||||||||
Warrants
issued for non-exclusive license
|
- | - | - | - | 143,238 | - | - | - | 143,238 | |||||||||||||||||||||||||||
Net
loss, 2005
|
- | - | - | - | - | (1,696,989 | ) | - | - | (1,696,989 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2005
|
- | - | 99,525,027 | 9,953 | 3,490,538 | (3,985,997 | ) | - | - | (485,506 | ) |
Accumulated
|
Accumulated
|
|||||||||||||||||||||||||||||||||||
Additional
|
Deficit
During
|
Other
|
Deferred
|
|||||||||||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Paid-In
|
Development
|
Comprehensive
|
Stock
|
|||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Stage
|
Income
|
Compensation
|
Total
|
||||||||||||||||||||||||||||
In-kind
contribution
|
- | - | - | - | 12,000 | - | - | - | 12,000 | |||||||||||||||||||||||||||
Common
stock cancelled in connection with exchange of ownership in
CardioBioMedical Corporation to its original stockholders
|
- | - | (66,232,527 | ) | (6,623 | ) | (3,211,742 | ) | 3,745,592 | - | - | 527,227 | ||||||||||||||||||||||||
Common
stock issued to purchase investment in oil and gas leases
($.003 per share)
|
- | - | 60,000,000 | 6,000 | 159,000 | - | - | - | 165,000 | |||||||||||||||||||||||||||
Net
loss, 2006
|
- | - | - | - | - | (140,836 | ) | - | - | (140,836 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2006
|
- | - | 93,292,500 | 9,330 | 449,796 | (381,241 | ) | - | - | 77,885 | ||||||||||||||||||||||||||
In-kind
contribution
|
- | - | - | - | 12,000 | - | - | - | 12,000 | |||||||||||||||||||||||||||
Common
shares issued to acquire 100% of outstanding common shares of
Uranium Acquisition Corp., Inc.
|
- | - | 15,000,000 | 1,500 | 4,248,500 | - | - | - | 4,250,000 | |||||||||||||||||||||||||||
Net
loss, 2007
|
- | - | - | - | - | (4,635,418 | ) | - | - | (4,635,418 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2007
|
- | - | 108,292,500 | 10,830 | 4,710,296 | (5,016,659 | ) | - | - | (295,533 | ) | |||||||||||||||||||||||||
In-kind
contribution
|
- | - | - | - | 12,000 | - | - | - | 12,000 | |||||||||||||||||||||||||||
Common
stock issued to consultant for services ($.82 per
share)
|
- | - | 450,000 | 45 | 367,455 | - | - | - | 367,500 | |||||||||||||||||||||||||||
Common
shares issued to acquire 100% of outstanding common shares of
ALG Bio Oils Ltd.
|
- | - | 35,000,000 | 3,500 | 21,696,500 | - | - | - | 21,700,000 | |||||||||||||||||||||||||||
Other
comprehensive income
|
- | - | - | - | - | - | 3,434 | - | 3,434 | |||||||||||||||||||||||||||
Net
loss, 2008
|
- | - | - | - | - | (22,111,044 | ) | - | - | (22,111,044 | ) | |||||||||||||||||||||||||
Balance,
December 31, 2008
|
- | - | 143,742,500 | 14,375 | 26,786,251 | (27,127,703 | ) | 3,434 | - | (323,643 | ) |
Accumulated
|
Accumulated
|
|||||||||||||||||||||||||||||||||||
Additional
|
Deficit
During
|
Other
|
Deferred
|
|||||||||||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Paid-In
|
Development
|
Comprehensive
|
Stock
|
|||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Stage
|
Income
|
Compensation
|
Total
|
||||||||||||||||||||||||||||
In-kind
contribution
|
- | - | - | - | 6,000 | - | - | - | 6,000 | |||||||||||||||||||||||||||
Additional
common shares issued in connection with acquisition of ALG Bio Oils Ltd.
($.20 per share)
|
- | - | 75,000,000 | 7,500 | 14,992,500 | - | - | - | 15,000,000 | |||||||||||||||||||||||||||
Common
shares issued to acquire 51% of outstanding common shares of
H-Power (Pty) Ltd. ($.58 per share)
|
- | - | 65,000,000 | 6,500 | 37,693,500 | - | - | - | 37,700,000 | |||||||||||||||||||||||||||
Common
stock issued to consultant of ALG Bio Oils Ltd. for services ($.58 per
share)
|
- | - | 1,356,500 | 135 | 786,635 | - | - | - | 786,770 | |||||||||||||||||||||||||||
Common
stock issued to consultant of H-Power (Pty) Ltd. for services ($.27 per
share)
|
- | - | 6,200,000 | 620 | 1,673,380 | - | - | - | 1,674,000 | |||||||||||||||||||||||||||
Common
stock issued for cash ($.12 per share)
|
- | - | 1,266,500 | 126 | 152,283 | - | - | - | 152,409 | |||||||||||||||||||||||||||
Other
comprehensive income
|
- | - | - | - | - | - | (1,430 | ) | - | (1,430 | ) | |||||||||||||||||||||||||
Net
loss, six months ended June 30, 2009
|
- | - | - | - | - | (54,579,040 | ) | - | - | (54,579,040 | ) | |||||||||||||||||||||||||
Balance,
June 30, 2009
|
- | $ | - | 292,565,500 | $ | 29,256 | $ | 82,090,549 | $ | (81,706,743 | ) | $ | 2,004 | $ | - | $ | 415,066 |
For
the
|
||||||||||||
Period
From
|
||||||||||||
For
the Six
|
For
the Six
|
May
28,2003
|
||||||||||
Months
Ended
|
Months
Ended
|
(Inception)
|
||||||||||
June 30, 2009
|
June 30, 2008
|
to June 30, 2009
|
||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
|
||||||||||||
Loss
from continuing operations
|
$ | (54,578,536 | ) | $ | (21,952,995 | ) | $ | (76,715,819 | ) | |||
Loss
from discontinued operations
|
(504 | ) | - | (8,736,516 | ) | |||||||
Net
loss
|
(54,579,040 | ) | (21,952,995 | ) | (85,452,335 | ) | ||||||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||||||
In-kind
contributions
|
6,000 | 6,000 | 39,000 | |||||||||
Stock
issued for services
|
2,460,770 | 183,750 | 3,051,927 | |||||||||
Amortization
|
- | - | 33,400 | |||||||||
Impairment
of investment in oil and gas leases
|
- | - | 247,931 | |||||||||
Impairment
of bio-fuels plant development contract
|
15,000,000 | 21,717,235 | 36,717,235 | |||||||||
Impairment
of Hybrid Battery Technology license
|
37,877,520 | 37,877,520 | ||||||||||
Acquisition
costs
|
- | - | 8,245,592 | |||||||||
Non-controlling
interest
|
(822,971 | ) | - | (1,140,360 | ) | |||||||
Changes
in operating assets and liabilities:
|
||||||||||||
Increase
(decrease) in accounts payable and accrued expenses
|
(14,197 | ) | 7,386 | 357,138 | ||||||||
Cash
flows from operating activities in continuing operations
|
(71,918 | ) | (38,624 | ) | (22,952 | ) | ||||||
Cash
flows from operating activities in discontinued operations
|
1,953 | - | (188,712 | ) | ||||||||
Net
Cash Used In Operating Activities
|
(69,965 | ) | (38,624 | ) | (211,664 | ) | ||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||||||
Purchase
of property and equipment
|
- | - | (116,331 | ) | ||||||||
Purchase
of website
|
- | - | (1,000 | ) | ||||||||
Patent
costs
|
(82,872 | ) | - | (82,872 | ) | |||||||
Acquisition
of ALG Bio Oils Ltd. net of cash purchased
|
- | 180 | 180 | |||||||||
Acquisition
of H-Power (Pty) Ltd. net of cash purchased
|
16 | - | 16 | |||||||||
Cash
flows from investing activities in continuing
|
||||||||||||
operations
|
(82,856 | ) | 180 | (200,007 | ) | |||||||
Cash
flows from investing activities in discontinued operations
|
- | - | - | |||||||||
Net
Cash Provided By (Used In) Investing Activities
|
(82,856 | ) | 180 | (200,007 | ) | |||||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||||||
Proceeds
on sale of common stock
|
152,410 | - | 152,410 | |||||||||
Proceeds
from loan payable
|
- | - | 12,236 | |||||||||
Repayment
of stockholder's loans
|
- | - | (12,730 | ) | ||||||||
Proceeds
from loans payable - related parties
|
48,456 | 40,967 | 292,916 | |||||||||
Repayment
of from loans payable - related parties
|
(16,990 | ) | - | (4,869 | ) | |||||||
Cash
flows from financing activities in continuing operations
|
183,876 | 40,967 | 436,677 | |||||||||
Cash
flows from financing activities in discontinued operations
|
- | - | 3,286 | |||||||||
Net
Cash Provided By Financing Activities
|
183,876 | 40,967 | 439,963 | |||||||||
EFFECT
ON EXCHANGE RATE ON CASH
|
3,291 | 49 | 7,250 | |||||||||