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, 2005 [ ] 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 [ ] Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [X] As of October 25, 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 month periods ended September 30, 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 three month period ended September 30, 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 September 30, 2005 3 SUNCREST GLOBAL ENERGY CORP. A Development Stage Company) Balance Sheets ASSETS September 30, June 30, 2005 2005 ------------- ------------- (Unaudited) Current Assets Cash $ 3,249 $ 8,981 Restricted Cash - - ------------- ------------- Total Current Assets 3,249 8,981 Property, Plant and Equipment, net 464,230 464,230 ------------- ------------- Total Assets $ 467,479 $ 473,211 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts Payable 50,700 43,700 Accrued Expenses 73,164 68,336 Advance Sale Deposit - 10,000 Notes Payable 188,697 188,697 ------------- ------------- Total Current Liabilities 312,561 310,733 ------------- ------------- Total Liabilities 312,561 310,733 ------------- ------------- 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 (345,512) (337,952) ------------- ------------- Total Stockholders' Equity (deficit) 154,918 162,478 ------------- ------------- Total Liabilities and Stockholders' Equity $ 467,479 $ 473,211 ============= ============= 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, 2005 2004 2005 ------------- ------------- ------------- REVENUES $ - $ - $ - Cost of Sales - - - ------------- ------------- ------------- Gross Profit (Loss) - - - ------------- ------------- ------------- OPERATING EXPENSES Engineering & Consulting - - 46,269 General & Administrative 2,732 1,607 225,379 ------------- ------------- ------------- Total Operating Expenses 2,732 1,607 271,648 ------------- ------------- ------------- Net Operating Income (Loss) (2,732) (1,607) (271,648) Other Income (Expense) Interest Expense (4,828) (4,755) (73,064) ------------- ------------- ------------- Total Other Income (Expense) (4,828) (4,755) (73,064) Income Tax Expense - - (800) ------------- ------------- ------------- Net Income (Loss) $ (7,560) $ (6,362) $ (345,512) ============= ============= ============= NET LOSS PER SHARE $ - $ - $ (0.02) ============= ============= ============= WEIGHTED AVERAGE SHARES OUTSTANDING 39,050,000 39,050,000 19,116,825 ============= ============= ============= 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 2005 2004 Sept. 30, 2005 -------------- ------------- -------------- Cash Flows from Operating Activities Net Income (Loss) $ (7,560) $ (6,362) $ (345,512) 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 11,828 4,654 95,863 -------------- ------------- -------------- Net Cash Provided (Used) by Operating Activities 4,268 (1,708) (239,649) -------------- ------------- -------------- Cash Flows from Investing Activities Advance Sale Deposit (10,000) - - -------------- ------------- -------------- Net Cash Provided (Used) by Investing Activities (10,000) - - -------------- ------------- -------------- Cash Flows from Financing Activities: Proceeds from Issuance of Common Stock - - 6,800 Proceeds from Notes Payable - - 281,098 Principal Payments on Notes Payable - - (45,000) -------------- ------------- -------------- Net Cash Provided (Used) by Financing Activities - - 242,898 -------------- ------------- -------------- Increase (Decrease) in Cash (5,732) (1,708) 3,249 Cash and Cash Equivalents at Beginning of Period 8,981 9,330 - -------------- ------------- -------------- Cash and Cash Equivalents at End of Period $ 3,249 $ 7,682 $ 3,249 ============== ============= ============== 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, 2005 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, 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, 2005. 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 three month period ended September 30, 2005, we had $3,249 cash on hand and total assets of $467,479, which include property, plant and equipment of $464,230. Our total current liabilities were $312,561 at September 30, 2005, and consist of $188,697 notes payable to third parties, $73,164 accrued expenses and $50,700 accounts payable. Our business plan is to develop a manufacturing and marketing plan to sell a turnkey mini oil refinery or waste oil refinery to prospective customers. We have entered into an agreement to sell our mini oil refinery prototype, land and assets related to the property located in Green River, Utah. However, the agreement provides for a closing date of June 2006 and we cannot assure you that the sale will be consummated. Therefore, we intend to continue to focus our efforts on the development of the mini oil refinery proprietary process and operations. If the sale is closed, then management believes that we will rely on the proceeds from the sale of our mini refinery to fund operations and continue the development of a marketing plan to sell our proprietary process for mini oil refineries to customers. If the agreement does not close, then we anticipate that we will raise funds to continue development of the mini oil refinery proprietary process. Management anticipates that the sale of our mini refinery in 2006 will provide proceeds for five years after the closing that we may use for further development of our proprietary process and marketing plan. For the short term we likely will rely on loans or advances from other parties to fund our operations. We may repay these loans 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 evaluated the effectiveness of our disclosure controls and procedures as of the end of the period covered by this report. Based on that evaluation, he concluded that our disclosure controls and procedures were effective. Our President also determined that there were no changes made in our internal controls over financial reporting during the first quarter of 2006 that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting. 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: November 8, 2005 By: _______________________________________ John W. Peters President, Principal Executive Officer, Principal Financial Officer, and Director 9