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 December 31, 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 February 6, 2006, 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 Operation.................................................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 six month periods ended December 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 December 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 December 31, 2005 3 SUNCREST GLOBAL ENERGY CORP. (A Development Stage Company) Balance Sheets ASSETS December 31 June 30, 2005 2005 ------------- ------------- (Unaudited) Current Assets Cash $ 1,720 $ 8,981 ------------- ------------- Total Current Assets 1,720 8,981 Property, Plant and Equipment, net 464,230 464,230 ------------- ------------- Total Assets $ 465,950 $ 473,211 ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities Accounts Payable $ 51,100 $ 43,700 Accrued Expenses 77,919 68,336 Advance Deposit - 10,000 Notes Payable 188,697 188,697 ------------- ------------- Total Current Liabilities 317,716 310,733 ------------- ------------- Total Liabilities 317,716 310,733 ------------- ------------- STOCKHOLDERS' EQUITY Preferred Stock, Authorized 5,000,00 Shares, $.01 Par Value, Issued and Outstanding 0 Shares - - Common Stock, Authorized 70,000,000 Shares, $.001 par Value, Issue and Outstanding 39,050,000 Shares 39,050 39,050 Additional Paid-in Capital 461,380 461,380 Deficit Accumulated During the Development Stage (352,196) (337,952) ------------- ------------- Total Stockholders' Equity 148,234 162,478 ------------- ------------- Total Liabilities and Stockholders' Equity $ 465,950 $ 473,211 ============= ============= 4
SUNCREST GLOBAL ENERGY CORP. (Formerly Galaxy Specialties, Inc.) (A Development Stage Company) Statement of Operations (Unaudited) For the For the For the For the From three months three months six months six months Inception on ended ended ended ended July 9, 1996 December 31, December 31, December 31, December 31, to Dec. 31, 2005 2004 2005 2004 2005 ------------- ------------- ------------- ------------- ------------- REVENUES $ - $ - $ - $ - $ - Cost of Sales - - - - - ------------- ------------- ------------- ------------- ------------- Gross Profit (Loss) - - - - - ------------- ------------- ------------- ------------- ------------- OPERATING EXPENSES Engineering & Consulting - - - - 46,269 General & Administrative 1,929 5,177 4,661 6,784 227,308 ------------- ------------- ------------- ------------- ------------- Total Operating Expenses 1,929 5,177 4,661 6,784 273,577 ------------- ------------- ------------- ------------- ------------- Net Operating Income (Loss) (1,929) (5,177) (4,661) (6,784) (273,577) Other Income (Expense) Interest Expense (4,755) (4,755) (9,583) (9,510) (77,819) ------------- ------------- ------------- ------------- ------------- Total Other Income (Expense) (4,755) (4,755) (9,583) (9,510) (77,819) Income Tax Expense - - - - (800) ------------- ------------- ------------- ------------- ------------- Net Income (Loss) $ (6,684) $ (9,932) $ (14,244) $ (16,294) $ (352,196) ============= ============= ============= ============= ============= NET LOSS PER SHARE $ - $ - $ - $ - $ (0.02) ============= ============= ============= ============= ============= WEIGHTED AVERAGE SHARES OUTSTANDING 39,050,000 39,050,000 39,050,000 39,050,000 19,676,267 ============= ============= ============= ============= ============= 5
SUNCREST GLOBAL ENERGY CORP. (A Development Stage Company) Statement of Cash Flows (Unaudited) From Inception on For the six months ended July 9, 1996 December 31, Through 2005 2004 December 31, 2005 -------------- -------------- ----------------- Cash Flows from Operating Activities: Net Income (Loss) $ (14,244) $ (16,294) $ (352,196) 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 11,983 9,411 96,018 -------------- -------------- --------------- Net Cash Provided (Used) by Operating Activities (2,261) (6,883) (246,178) -------------- -------------- --------------- Cash Flows from Investing Activities: Advance Sale Deposit (10,000) - - -------------- -------------- --------------- Net Cash Provided (Used) by Investing Activities (10,000) - - -------------- -------------- --------------- Cash Flows from Financing Activities: Cash from Advance 5,000 - 5,000 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 5,000 - 247,898 -------------- -------------- --------------- Increase (Decrease) in Cash (7,261) (6,883) 1,720 Cash and Cash Equivalents at Beginning of Period 8,981 9,390 - -------------- -------------- --------------- Cash and Cash Equivalents at End of Period $ 1,720 $ 2,507 $ 1,720 ============== ============== =============== 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 for Notes Payable $ - $ - $ 13,200 6
Suncrest Global Energy Corp. (A Development Stage Company) Notes to the Financial Statements December 31, 2005 GENERAL Suncrest Global Energy Corp. (the Company) has elected to omit substantially all footnotes to the financial statements for the six months ended December 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, 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 Executive Overview 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. Our mini oil refinery proprietary process relies on a scaled down, low cost refining and recycling process which processes crude oil or can be used to recycle waste oils. The mini refinery performs the oil refining process on a small scale, using a small catalyst cracker. A catalyst cracker is the mechanism used to break down hydrogen-carbon atoms in feed stock, like crude oil and recycled waste oil, and convert the feed stock into higher value products, such as gasoline and diesel fuel. We own a mini oil refinery prototype located in Green River, Utah. We are negotiating a potential sale of our mini refinery; however, 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 sale does not close, then we anticipate that we will need to raise funds to continue development of our business plan. 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 six month period ended December 31, 2005, we had $1,720 cash on hand and total assets of $465,950, which include property, plant and equipment of $464,230. Our total current liabilities were $317,716 at December 31, 2005, and consist of $188,697 notes payable to third parties, $77,919 accrued expenses and $51,100 accounts payable. Accordingly, we cannot satisfy our cash requirements and liabilities and will need to raise additional capital to further develop our business plan. Any additional capital will be used to bring our prototype mini refinery to operational status and to develop our marketing plan for our turn-key mini refinery. We have historically relied on advances from third parties to cover cash shortfalls and we have issued common stock to pay for services rendered. For the next twelve months we expect to rely on loans or advances from third parties to fund our operations. We may repay these loans and advancements with cash, if available, or we may convert them into common stock. If the sale of our mini refinery closes, then we will rely on the proceeds from that sale to continue development of our business plan. ITEM 3. CONTROLS AND PROCEDURES Our President, who acts in the capacity of principal executive officer and principal financial officer, has evaluated the 8 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 second quarter of our 2006 fiscal year that have materially affected, or are reasonably likely to materially affect our internal control over financial reporting. 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: February 13, 2006 By: _________________________________________ John W. Peters President, Principal Executive Officer, Principal Financial Officer, and Director 9