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, 2005
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 9, 2005, 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 and nine month periods ended March 31, 2005 and 2004
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 six
month period ended March 31, 2005 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, 2005
3
SUNCREST GLOBAL ENERGY CORP.
(A Development Stage Company)
Balance Sheets
ASSETS
------
March 31 December 31
2005 2004
------------- -------------
(Unaudited)
Current Assets
Cash $ 10,672 $ 9,390
------------- -------------
Total Current Assets 10,672 9,390
Property, Plant and Equipment, net 464,230 464,230
------------- -------------
Total Assets $ 474,902 $ 473,620
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current Liabilities
Accounts Payable $ 44,112 $ 44,099
Accrued Expenses 63,581 49,416
Notes Payable 198,697 188,697
------------- -------------
Total Current Liabilities 306,390 282,212
------------- -------------
Total Liabilities 306,390 282,212
------------- -------------
STOCKHOLDERS' EQUITY
Preferred Stock, Authorized 5,000,000
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 39,050
Additional Paid-in Capital 461,380 461,380
Deficit Accumulated During the Development Stage (331,918) (309,022)
------------- -------------
Total Stockholders' Equity 168,512 191,408
------------- -------------
Total Liabilities and Stockholders' Equity $ 474,902 $ 473,620
============= =============
4
SUNCREST GLOBAL ENERGY CORP.
(Formerly Galaxy Specialties, Inc.)
(A Development Stage Company)
Statements of Operations
(Unaudited)
For the For the For the For the From
three months three months nine months nine months Inception on
ended ended ended ended July 9, 1996
March 31, March 31, March 31, March 31, to March 31,
2005 2004 2005 2004 2005
-------------- ------------- -------------- ------------- -------------
REVENUES $ - $ - $ - $ - $ -
Cost of Sales - - - - -
-------------- ------------- -------------- ------------- -------------
Gross Profit (Loss) - - - - -
-------------- ------------- -------------- ------------- -------------
OPERATING EXPENSES
Engineering & Consulting - - - - 46,269
General & Administrative 1,847 8,142 8,632 65,558 221,368
-------------- ------------- -------------- ------------- -------------
Total Operating Expenses 1,847 8,142 8,632 65,558 267,637
-------------- ------------- -------------- ------------- -------------
Net Operating Income (Loss) (1,847) (8,142) (8,632) (65,558) (267,637)
Other Income (Expense)
Interest Expense (4,755) (5,000) (14,265) (14,208) (63,481)
-------------- ------------- -------------- ------------- -------------
Total Other Income (Expense) (4,755) (5,000) (14,265) (14,208) (63,481)
Income Tax Expense - - - - (800)
-------------- ------------- -------------- ------------- -------------
Net Income (Loss) $ (6,602) $ (13,142) $ (22,897) $ (79,766) $ (331,918)
============== ============= ============== ============= =============
NET LOSS PER SHARE $ - $ - $ - $ - $ (0.02)
============== ============= ============== ============= =============
WEIGHTED AVERAGE SHARES
OUTSTANDING 39,050,000 39,050,000 39,050,000 38,494,444 17,972,247
============== ============= ============== ============= =============
5
SUNCREST GLOBAL ENERGY CORP.
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
From
Inception on
For the nine ended July 9,
March 31, 1996 Through
----------------------------- March 31,
2005 2004 2005
--------------- ------------- ---------------
Cash Flows from Operating Activities:
Net Income (Loss) $ (22,897) $ (79,766) $ (331,918)
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 14,179 14,196 79,692
--------------- ------------- ---------------
Net Cash Provided (Used) by Operating Activities (8,718) (55,570) (242,226)
--------------- ------------- ---------------
Net Cash Provided (Used) by Investing Activities - - -
--------------- ------------- ---------------
Cash Flows from Financing Activities:
Proceeds from Issuance of Common Stock - - 6,800
Proceeds from Notes Payable 10,000 27,000 291,098
Principal Payments on Notes Payable - - (45,000)
--------------- ------------- ---------------
Net Cash Provided (Used) by Financing Activities 10,000 27,000 252,898
--------------- ------------- ---------------
Increase (Decrease) in Cash 1,282 (28,570) 10,672
Cash and Cash Equivalents at Beginning of Period 9,390 40,225 -
--------------- ------------- ---------------
Cash and Cash Equivalents at End of Period $ 10,672 $ 11,655 $ 10,672
=============== ============= ===============
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
Suncrest Global Energy Corp.
(A Development Stage Company)
Notes to the Financial Statements
March 31, 2005
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,
2005 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.
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
The Securities and Exchange Commission ("SEC") encourages companies to
disclose forward-looking information so that investors can better understand
future prospects and make informed investment decisions. This report contains
these types of statements. Words such as "may," "will," "expect," "believe,"
"anticipate," "estimate," "project," or "continue" or comparable terminology
used in connection with any discussion of future operating results or
financial performance identify forward-looking statements. You are cautioned
not to place undue reliance on the forward-looking statements, which speak
only as of the date of this report. All forward-looking statements reflect
our present expectation of future events and are subject to a number of
important factors and uncertainties that could cause actual results to differ
materially from those described in the forward-looking statements.
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, 2005, we had $10,672 cash
on hand and total assets of $474,902, which include property, plant and
equipment of $464,230. Our total current liabilities were $306,390 at March
31, 2005, and consist of $198,697 notes payable to third parties, $63,581
accrued expenses and $44,112 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 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.
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 from the registration requirements 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, thereunto duly
authorized.
SUNCREST GLOBAL ENERGY CORP.
/s/ John W. Peters
Date: May 12, 2005 By: _______________________________________
John W. Peters
President, Principal Executive Officer,
Principal Financial Officer, and Director
9