UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-QSB [X] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2004 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No.000-31355 SUNCREST GLOBAL ENERGY CORP. (Name of small business issuer in its charter) NEVADA 81-0438093 (State of incorporation) (I.R.S. Employer Identification No.) 3353 South Main, #584, Salt Lake City, Utah 84115 (Address of principal executive offices) (Zip code) Issuer's telephone number: (702) 946-6760 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 preceding 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 [ ] As of May 5, 2004, the Registrant had a total of 39,050,000 shares of common stock issued and outstanding. Transitional small business disclosure format: Yes [ ] No [X] TABLE OF CONTENTS PART I: FINANCIAL INFORMATION Item 1. Financial Statements.............................................2 Item 2. Plan of Operations...............................................8 Item 3. Controls and Procedures..........................................8 PART II: OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K.................................9 Signatures................................................................9 _______________________________ PART I: FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS The financial information set forth below with respect to our statements of operations for the three month and nine month periods ended March 31, 2004 and 2003 are unaudited. This financial information, in the opinion of management, includes all adjustments consisting of normal recurring entries necessary for the fair presentation of such data. The results of operations for the nine month period ended March 31, 2004, are not necessarily indicative of results to be expected for any subsequent period. 2 Suncrest Global Energy Corp. (Formerly Galaxy Specialties, Inc.) (A Development Stage Company) Financial Statements March 31, 2004 3 SUNCREST GLOBAL ENERGY CORP. (A Development Stage Company) Balance Sheets ASSETS March 31 June 30, 2004 2003 ------------- ------------- (Unaudited) Current Assets Cash $ 11,655 $ 25,225 Restricted Cash - 15,000 ------------- ------------- Total Current Assets 11,655 40,225 Property, Plant and Equipment, net 464,230 464,230 ------------- ------------- Total Assets $ 475,885 $ 504,455 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts Payable $ 44,101 $ 44,113 Accrued Expenses 44,879 30,671 Notes Payable 188,697 161,697 ------------- ------------- Total Current Liabilities 277,677 236,481 ------------- ------------- Total Liabilities 277,677 236,481 ------------- ------------- STOCKHOLDERS' EQUITY Preferred Stock, Authorized 5,000,00 Shares, $.01 Par Value, Issued and Outstanding 0 Shares - - Common Stock, $.001 par value; 70,000,000 shares authorized; 39,050,000 and 38,050,000 shares issued and outstanding respectively 39,050 38,050 Additional Paid-in Capital 461,380 452,380 Deficit Accumulated During the Development Stage (302,222) (222,456) ------------- ------------- Total Stockholders' Equity 198,208 267,974 ------------- ------------- Total Liabilities and Stockholders' Equity $ 475,885 $ 504,455 ============= ============= 4
SUNCREST GLOBAL ENERGY CORP. (Formerly Galaxy Specialties, Inc.) (A Development Stage Company) Statement of Operations (Unaudited) From Inception on For the three For the three For the nine For the nine July 6, months ended months ended months ended months ended 1996 to March 31, March 31, March 31, March 31, March 31, 2004 2003 2004 2003 2004 -------------- ------------- ------------- ------------- ------------- REVENUES $ - $ - $ - $ - $ - Cost of Sales - - - - - -------------- ------------- ------------- ------------- ------------- Gross Profit (Loss) - - - - - -------------- ------------- ------------- ------------- ------------- OPERATING EXPENSES General & Administrative 8,142 9 65,558 18,142 256,743 -------------- ------------- ------------- ------------- ------------- Total Operating Expenses 8,142 9 65,558 18,142 256,743 -------------- ------------- ------------- ------------- ------------- Net Operating Income (Loss) (8,142) (9) (65,558) (18,142) (256,743) Other Income (Expense) Interest Expense (5,000) (3,557) (14,208) (15,703) (44,779) -------------- ------------- ------------- ------------- ------------- Total Other Income (Expense) (5,000) (3,557) (14,208) (15,703) (44,779) Income Tax Expense - - - - (700) -------------- ------------- ------------- ------------- ------------- Net Income (Loss) $ (13,142) $ (3,566) $ (79,766) $ (33,845) $ (302,222) ============== ============= ============= ============= ============= NET LOSS PER SHARE $ - $ - $ - $ - $ (.02) ============== ============= ============= ============= ============= WEIGHTED AVERAGE SHARES OUTSTANDING 39,050,000 20,000,000 38,494,444 20,000,000 15,506,989 ============== ============= ============= ============= ============= 5
SUNCREST GLOBAL ENERGY CORP. (A Development Stage Company) Statement of Cash Flows (Unaudited) From Inception on For the nine months ended July 9, 1996 March 31, Through 2004 2003 March 31, 2004 ------------- ------------- -------------- Cash Flows from Operating Activities: Net Income (Loss) $ (79,766) $ (33,845) $ (302,222) Adjustments to Reconcile net Loss to Net Cash Provided by Operations: Stock Issued for Services 10,000 - 10,000 Change in Operating Assets and Liabilities: - - - (Increase) Decrease in: Accounts Receivable - - - Inventory - - - Increase (Decrease) in: Accounts Payable & Accrued Expenses 14,196 14,487 60,979 ------------- ------------- -------------- Net Cash Provided (Used) by Operating Activities (55,570) (19,358) (231,243) ------------- ------------- -------------- Net Cash Provided (Used) by Investing Activities - - - ------------- ------------- -------------- Cash Flows from Financing Activities: Proceeds from Issuance of Common Stock - - 6,800 Proceeds from Notes Payable 27,000 55,000 281,098 Principal Payments on Notes Payable - (35,000) (45,000) ------------- ------------- -------------- Net Cash Provided (Used) by Financing Activities 27,000 20,000 242,898 ------------- ------------- -------------- Increase (Decrease) in Cash (28,570) 642 11,655 Cash and Cash Equivalents at Beginning of Period 40,225 1,064 - ------------- ------------- -------------- Cash and Cash Equivalents at End of Period $ 11,655 $ 1,706 $ 11,655 ============= ============= ============== Supplemental Cash Flow Information: Cash Paid For: Interest $ - $ - $ - Income Taxes $ - $ - $ 700 Non-Cash Investing and Financing Activities: Assets Contributed by Shareholder $ - $ - $ 498,430 Stock Issued for Notes Payable $ - $ - $ 13,200 6
Suncrest Global Energy Corp. (A Development Stage Company) Notes to the Financial Statements March 31, 2004 GENERAL Suncrest Global Energy Corp. (the Company) has elected to omit substantially all footnotes to the financial statements for the nine months ended March 31, 2004 since there have been no material changes (other than indicated in other footnotes) to the information previously reported by the Company in their Annual Report filed on the Form 10-KSB for the twelve months ended June 30, 2003. UNAUDITED INFORMATION The information furnished herein was taken from the books and records of the Company without audit. However, such information reflects all adjustments which are, in the opinion of management, necessary to properly reflect the results of the interim period presented. The information presented is not necessarily indicative of the results from operations expected for the full fiscal year. COMMON STOCK During December, 2003, the Company issued 1,000,000 shares of common stock for services rendered valued at $10,000 (or $.01 per share). 7 In this quarterly report references to "Suncrest Global," "we," "us," and "our" refer to Suncrest Global Energy Corp. FORWARD LOOKING STATEMENTS This quarterly report contains certain forward-looking statements and any statements contained in this quarterly report that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as "may," "expect," "believe," "anticipate," "estimate" or "continue" or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainties, and actual results may differ materially depending on a variety of factors, many of which are not within Suncrest Global's control. These factors include but are not limited to economic conditions generally and in the industries in which Suncrest Global may participate, competition within Suncrest Global's chosen industry, and failure by Suncrest Global to successfully develop business relationships. ITEM 2. PLAN OF OPERATION We are a development stage company, have not recorded revenues in the past two fiscal years and have suffered losses since our inception. Our auditors have expressed doubt that we can continue as a going concern if we do not obtain financing. At the nine month period ended March 31, 2004), we had $11,655 cash on hand and total assets of $475,885 which include property, plant and equipment. Our total current liabilities were $277,677 at March 31, 2004, and primarily consist of $188,697 notes payable to third parties, $44, 879 accrued expenses and $44,101 accounts payable. We own a mini oil refinery located in Green River, Utah that we are in the process of restoring to operational status. A mini refinery uses a scaled down, low cost refining and recycling process which processes crude oil or recycles waste oils. Our business plan is to restore our mini refinery's operations, then develop a manufacturing and marketing plan to sell a turnkey mini refinery or waste oil refinery to prospective customers. We have identified a market segment for our mini refinery where limited output volume, limited feed stock and the limitations of large refinery equipment make the location unattractive to large refiners. Historically we have relied on advances from related parties to cover our administrative, legal and accounting expenses. During the nine month period ended March 31, 2004, we borrowed $27,000 from related parties to continue the restoration of our mini refinery. However, as of the date of this filing the mini refinery is not operational. Management intends to use any future funding to complete the restoration of the mini refinery; but if we are unable to obtain funds on acceptable terms, then we might be forced to delay or abandon some or all of our business plan. Management believes advances and loans will provide funds for our operations in the short term. For the long term, we anticipate future funding will be a combination of revenues from the mini refinery, once it is operational, and loans or advances from related parties. We may repay these loans, costs of services and advancements with cash, if available, or we may convert them into common stock. Additional capital may also be provided by private placements of our common stock. We expect that any private placement of stock will be issued pursuant to exemptions provided by federal and state securities laws. The purchasers and manner of issuance will be determined according to our financial needs and the available exemptions. We also note that if we issue more shares of our common stock our shareholders may experience dilution in the value per share of their common stock. ITEM 3. CONTROLS AND PROCEDURES Our President, who acts in the capacity of principal executive officer and principal financial officer, has concluded that the disclosures related to the effectiveness of our disclosure controls and procedures and our internal control over financial reporting made in our reports for the 2004 fiscal year remain accurate. 8 PART II: OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K Part I Exhibits 31.1 Principal Executive Officer Certification 31.2 Principal Financial Officer Certification 32.1 Section 1350 Certification Part II Exhibits 2.1 Agreement and Plan of Reorganization between Suncrest Global and Coyote Oil, dated June 10, 2003 (Incorporated by reference to exhibit 2.1 of Form 8-K, as amended, filed June 16, 2003) 3.1 Restated Articles of Incorporation (Incorporated by reference to exhibit 3.1 of Form 10-KSB, filed October 15, 2003) 3.2 Restated bylaws of Suncrest Global (Incorporated by reference to exhibit 3.2 of Form 10-KSB, filed October 15, 2003) Reports on Form 8-K On February 13, 2004, we filed a current report on Form 8-K, dated February 9, 2004, under Item 4 related to a change of our independent auditor. We amended this report on March 16, 2004. SIGNATURES In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned who is duly authorized. SUNCREST GLOBAL ENERGY CORP. /S/ John W. Peters Date: May 13, 2004 By: _______________________________________ John W. Peters President, Principal Executive and Financial Officer and Director