Annual report pursuant to Section 13 and 15(d)

Long-term investment

v2.4.0.8
Long-term investment
12 Months Ended
Dec. 31, 2012
Notes to Financial Statements  
Note 5. Long-term investment

 

    December 31,     December 31,  
    2012     2011  
    (Restated)     (Restated)  
    $     $  
Shares of Common Stock in China Wood Inc.     -       5,065,838  
Less: Excess of fair value of purchase consideration over assets purchased     -       (2,798,586)  
Impairment loss     -       (2,267,252 )
Net value     -       -  

 

On June 29, 2011, and on August 29, 2011, Viking Investments, LLC, a company controlled and managed by the Company’s Chairman, Chief Executive Officer and President, Tom Simeo, incorporated under the laws of The Federation of St. Kitts and Nevis, (“Viking Nevis”) sold 100,000 and 466,813 shares respectively of China Wood, Inc., publicly listed in the United States with the ticker “CNWD”, (the “China Wood Shares”) owned by Viking Nevis, in exchange for 1,912,000 and 12,569,420 newly issued restricted shares of the Company respectively.

 

As stated in Note 2, the Company, in valuing of the China Wood Shares, had initially relied upon Viking Nevis’s Guaranty and Repurchase Agreement, to value the China Wood Shares at $4.00/share in its financial statements for the year ended December 31, 2011.  During the three month period ended June 30, 2013, the Company restated its financial statements as of December 31, 2011, and all financial statements subsequent to that date, to record the China Wood Shares at carrying value on the transaction date, and such value was fully impaired as of December 31, 2011.