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 September 30, 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 October 20, 2004, Suncrest Global Energy Corp. 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.......................................................... 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 period ended September 30, 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 three month
period ended September 30, 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
September 30, 2004
3
SUNCREST GLOBAL ENERGY CORP.
(A Development Stage Company)
Balance Sheets
ASSETS
September 30, June 30,
2004 2004
------------- -------------
(Unaudited)
Current Assets
Cash $ 7,688 $ 9,390
Restricted Cash - -
------------- -------------
Total Current Assets 7,688 9,390
Property, Plant and Equipment, net 464,230 464,230
------------- -------------
Total Assets $ 471,918 $ 473,620
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts Payable $ 44,104 $ 44,099
Accrued Expenses 54,071 49,416
Notes Payable 188,697 188,697
------------- -------------
Total Current Liabilities 286,872 282,212
------------- -------------
Total Liabilities 286,872 282,212
------------- -------------
STOCKHOLDERS' EQUITY
Preferred Stock, Authorized 5,000,000
Shares, $.01 Par Value, Issued and
Outstanding 0 Shares - -
Common Stock, Authorized 70,000,000 Shares,
$.001 Par Value, Issued and Outstanding
39,050,000 Shares 39,050 39,050
Additional Paid-in Capital 461,380 461,380
Deficit Accumulated During the Development Stage (315,384) (309,022)
------------- -------------
Total Stockholders' Equity (deficit) 185,046 191,408
------------- -------------
Total Liabilities and Stockholders' Equity $ 471,918 $ 473,620
============= =============
4
SUNCREST GLOBAL ENERGY CORP.
(Formerly Galaxy Specialties, Inc.)
(A Development Stage Company)
Statement of Operations
(Unaudited)
For the For the From
three months three months Inception on
ended ended July 9, 1996
September 30, September 30, to Sept. 30,
2004 2003 2004
------------- ------------- -------------
REVENUES $ - $ - $ -
Cost of Sales - - -
------------- ------------- -------------
Gross Profit (Loss) - - -
------------- ------------- -------------
OPERATING EXPENSES
Engineering & Consulting - - 46,269
General & Administrative 1,607 44,378 219,099
------------- ------------- -------------
Total Operating Expenses 1,607 44,378 265,368
------------- ------------- -------------
Net Operating Income (Loss) (1,607) (44,437) (265,368)
------------- ------------- -------------
Other Income (Expense)
Interest Expense (4,755) (4,453) (49,216)
------------- ------------- -------------
Total Other Income (Expense) (4,755) (4,453) (49,216)
Income Tax Expense - - (800)
------------- ------------- -------------
Net Income (Loss) $ (6,362) $ (48,831) $ (315,384)
============= ============= =============
NET LOSS PER SHARE $ - $ - $ (0.02)
============= ============= =============
WEIGHTED AVERAGE SHARES
OUTSTANDING 39,050,000 38,050,000 15,989,650
============= ============= =============
5
SUNCREST GLOBAL ENERGY CORP.
(A Development Stage Company)
Statement of Cash Flows
(Unaudited)
From
Inception on
For the three months ended July 9, 1996
September 30, Through
2004 2003 Sept. 30, 2004
-------------- ------------- --------------
Cash Flows from Operating Activities
Net Income (Loss) $ (6,362) $ (48,831) $ (315,384)
Adjustments to Reconcile Net Loss
to Net Cash Provided by Operations:
Stock issued for services - - 10,000
Change in Operating Assets
and Liabilities:
(Increase) Decrease in:
Accounts Receivable - - -
Inventory - - -
Increase (Decrease) in:
Accounts Payable & Accrued Expenses 4,654 4,450 70,168
-------------- ------------- --------------
Net Cash Provided (Used) by
Operating Activities (1,708) (44,381) (235,216)
-------------- ------------- --------------
Cash Flows from Investing Activities - - -
-------------- ------------- --------------
Cash Flows from Financing Activities:
Proceeds from Issuance of Common Stock - - 6,800
Proceeds from Notes Payable - 27,000 281,098
Principal Payments on Notes Payable - - (45,000)
-------------- ------------- --------------
Net Cash Provided (Used) by
Financing Activities - 27,000 242,898
-------------- ------------- --------------
Increase (Decrease) in Cash (1,708) (17,381) (7,682)
Cash and Cash Equivalents at
Beginning of Period 9,390 40,225 -
-------------- ------------- --------------
Cash and Cash Equivalents at
End of Period $ 7,682 $ 22,844 $ 7,682
============== ============= ==============
Supplemental Cash Flow Information:
Cash Paid For:
Interest $ - $ - $ -
Income Taxes $ - $ - $ 800
Non-Cash Investing and Financing Activities:
Assets Contributed by Shareholder $ - $ - $ 498,430
Stock Issued fo Notes Payable $ - $ - $ 13,200
6
Suncrest Global Energy Corp.
(A Development Stage Company)
Notes to the Financial Statements
September 30, 2004
GENERAL
Suncrest Global Energy Corp. (the Company) has elected to omit substantially
all footnotes to the financial statements for the three months ended September
30, 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, 2004.
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.
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 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 the location is
unattractive to large refiners because there is limited output volume, limited
feed stock and the area presents problems for large refinery equipment.
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 three month period ended September 30, 2004, we had $7,688
cash on hand and total assets of $471,918, which include property, plant and
equipment. Our total current liabilities were $286,872 at September 30, 2004,
and primarily consist of $188,697 notes payable to third parties and $54,071
accrued expenses.
During the 2004 fiscal year, 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.
Historically we have relied on advances from related parties to cover our
administrative, legal and accounting expenses. 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 also 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 annual report on Form 10-KSB,
filed September 27, 2004, remain accurate.
8
PART II: OTHER INFORMATION
ITEM 6. EXHIBITS
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)
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: November 11, 2004 By: _________________________________________
John W. Peters
President, Principal Executive Officer,
Principal Financial Officer, and Director