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EX-32 - Zhong Ya International Ltdwesternluc10q093011ex321.htm
EX-31 - Zhong Ya International Ltdwesternluc10q093011ex311.htm

 



                             UNITED STATES

    SECURITIES AND EXCHANGE COMMISSION

                                Washington, D.C. 20549

FORM 1O-Q

     QUARTERLY REPORT PURSUANT TO SECTIONS 13 OR 15 (d) OF THE

                          SECURITIES AND EXCHANGE ACT OF 1934

                                        For the three month period ended September 30, 2011

                                                 Commission file number: 333-152950



Western Lucrative Enterprises, Inc.

(Exact Name of Registrant as Specified in its Charter)

             Iowa                      26-3045445

______________________       _______________

                                                            (State or Other Jurisdiction of            (IRS Employer

Incorporation or Organization)         Identification No.)


73726 Alessandro Drive, Suite 103

Palm Desert, CA 92260

(Address of Principal Executive Offices)


 

Registrant's telephone number, including area code: (760) 776-8899

Securities registered pursuant to Section 12(b) of the Act: None

                                                               Common Stock, $0.001 par value

                                                                               (Title of class)

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined by Rule 405 of the Securities Act.

Yes  *   No S

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.

Yes   *     No  S

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  S   No *

Indicate by check whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  S     No *

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-Q or any amendment to this Form 10-Q.  S

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check one):

               Large Accelerated Filer *                                                                                   Accelerated Filer *


               Non-accelerated filer *                                                                                                              Smaller reporting company S



Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  S    No *



As of December 31, 2010, there was no active trading market for the issuer's common stock, $.001 par value and therefore the value of shares held by affiliates cannot be ascertained.


The number of shares outstanding of the issuer's common stock, $.001 par value, as of September 30, 2011 was 8,505,000 shares.



DOCUMENTS INCORPORATED BY REFERENCE


None.



0



Western Lucrative Enterprises, Inc.

Form 10-Q Quarterly Report

Table of Contents                                       





PART I – FINANCIAL INFORMATION


Item 1.       Financial Statements                                                                                                                                                   4

Item 2.       Management’s Discussion and Analysis of Financial Condition and Results of Operations                                    9                                

Item 3.       Quantitative and Qualitative Disclosures about Market Risk                                                                                   10                          

Item 4.       Controls and Procedures                                                                                                                                            10


PART II – OTHER INFORMATION


Item 1.      Legal Proceedings                                                                                                                                                       11

Item 1A.   Risk Factors                                                                                                                                                                 11

Item 2.      Sales of Unregistered Securities and Use of Proceeds                                                                                                11

Item 3       Defaults Upon Senior Securities                                                                                     .                                           11

Item 4.      Removed and Reserved                                                                                                                                              11

Item 5.      Other Information                                                                                                                                                       12

Item 6.      Exhibits                                                                                                                                                                       13















                                                                         PART 1


ITEM 1.         FINANCIAL STATEMENTS


Financial Statements for the 3 month period ended September 30, 2011 have been prepared by the Management Group of Western Lucrative Enterprises, Inc.





WESTERN LUCRATIVE ENTERPRISES, INC.


(A Development Stage Enterprise)


Unaudited Financial Statements



For the Three Months Ended September 30, 2011, the Nine months Ended September 30, 2011, and the Period of July 14, 2008   (Inception) to September 30, 2011.
























 











Western Lucrative Enterprises, Inc.

(A Development Stage Enterprise)

Balance Sheets

       
  

   September 30              December 31

  

2011

 

2010

ASSETS

       

Current assets

     
 

Cash

$

                 -

 

$

                -

Total current assets

 

                 -

 

 

                -

       

Total assets

$

                 -

 

$

                -

       

LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY

       

Current liabilities

     
 

Accounts payable

$     

          19,451          

 

$

              251

 

Accrued interest

 

                278

 

 

               90

Total current liabilities

 

           19,729

 

 

               341

       

Long term liabilities

     
 

Related party loan

 

    10,000

  

          10,000

 

Beneficial conversion feature

 

           (279)

 

 

             (504)

Total long term liabilities

 

      9,721

          

 

          9,496    

       

Total liabilities

 

    29,450

 

  

          9,837       

       

Stockholders' (Deficit) Equity

     
 

Common stock, $.001 par value; 750,000,000 shares authorized, 8,505,000 shares issued and outstanding at September 30, 2011 and December 31, 2010

 

      8,505

  

           8,505

 

Additional paid in capital

 

   56,889

  

         56,889

 

Deficit accumulated during the development stage

 

       (94,844)

 

 

        (75,231)

Total stockholders' (deficit) equity

 

     (29,450)

 

 

          (9,837)

       

Total liabilities and stockholders' (deficit) equity

$

                 -

 

$

                 -

       

See accompanying notes to financial statements






Western Lucrative Enterprises, Inc.

(A Development Stage Enterprise)

Statement of Operations


              

For the period from July 11, 2008 (inception) to September 30, 2011

              
  

Three months ended September 30,

 

Nine months ended September 30,

 
  

2011

 

2010

 

2011

 

2010

 
  

(Unaudited)

  

(Unaudited)

 

(Unaudited)

  

(Unaudited)

   

Revenue

$

                 -

 

 $

              -

 

 $

                -

 

 $

              -

 

 $

                     -

                

Expenses

              
 

General & administrative

 

               960

  

        6,902

  

        3,850

  

        6,902

  

             36,122

 

Professional fees

 

            3,425

 

 

      42,750

 

 

      15,350

 

 

      42,750

 

 

             58,106

Total expenses

 

            4,385

  

      49,652

  

      19,200

  

      49,652

  

             94,228

                

Other income / (expense)

              
 

Interest expense

 

            (138)

 

 

           (28)

 

 

         (413)

 

 

          (28)

 

 

                (617)

Total other income / (expense)

 

            (138)

  

           (28)

  

         (413)

  

          (28)

  

                 (617)

                

Net loss

$

         (4,523)

 

 $

   (49,680)

 

 $

   (19,613)

 

 $

  (49,680)

 

 $

           (94,845)

                

Basic and diluted loss per common share

$

         (0.001)

 

 $

     (0.006)

 

 $

  (0.002)

 

 $

    (0.006)

   
                

Weighted average shares outstanding

 

     8,505,000

 

 

  8,505,000

 

 

    8,505,000

 

 

  8,505,000

   
                

See accompanying notes to financial statements


























Western Lucrative Enterprises, Inc.

(A Development Stage Enterprise)

Statements of Cash Flows

         

For the period from July 14, 2008 (inception) to September 30, 2011

         
         
   

Nine months ended September 30,

 
   

2011

 

2010

 
   

(Unaudited)

  

(Unaudited)

   

Cash flows from operating activities

        
 

Net loss

$

        (19,613)

 

  $

     (49,680)

 

 $

           (94,845)

 

Adjustments to reconcile net loss to net cash used in operating activities:

      
  

Issuance of common stock in exchange for services

 

                  -

  

       39,652

  

            39,652

 

                                        

Non-cash interest – beneficial conversion feature

 

              226

 

        

               -

  

                 337

 

Changes in operating assets and liabilities:

        
  

Accounts payable

 

         19,200

      

 

       (2,755)

  

            16,451

  

Accrued interest

 

              187

 

 

             28

 

 

                 280

Net cash used in operating activities

 

                  -

  

     (12,755)

  

           (38,125)

           

Net cash from investing activities

 

                  -

 

 

               -

 

 

                    -

           

Cash flows from financing activities

        
  

Proceeds from related party loan

 

                  -

  

        10,000

  

            10,000

  

Proceeds from issuance of stock

 

                  -

 

 

                -

 

 

            28,125

Net cash provided by financing activities

 

                  -

  

        10,000

  

            38,125

           
  

Net increase in cash

 

                  -

  

       (2,755)

  

                    -

  

Cash at beginning of period

 

                  -

 

 

        2,755

 

 

                    -

  

Cash at end of period

$

                  -

 

$

               -

 

$

                    -

           

Supplemental disclosure of non-cash investing and financing activities:

      
 

Issuance of common stock for professional and consulting services

$

                  -

 

 $

      39,652

 

 $

            40,452

           

Supplemental Cash Flow Information:

        
 

Cash paid for interest

$

                  -

 

 $

               -

 

 $

                    -

 

Cash paid for income taxes

$

                  -

 

 $

               -

 

 $

                    -

           

See accompanying notes to financial statements

WESTERN LUCRATIVE ENTERPRISES, INC.

(A Development Stage Company)

Notes to Financial Statements

For the Three Months Ended September 30, 2011, the Nine Months ended September 30, 2011 and for the period of July 14, 2008 (inception) to September 30, 2011



NOTE 1 – CONDENSED FINANCIAL STATEMENTS

The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at September 30, 2011, and for all periods presented herein, have been made.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s December 31, 2010 audited financial statements. The results of operations for the periods ended September 30, 2011 and 2010 are not necessarily indicative of the operating results for the full years.


NOTE 2 - GOING CONCERN

The Company's financial statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern, which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The ability of the Company to continue as a going concern is dependent on the Company obtaining adequate capital to fund operating losses until it becomes profitable. If the Company is unable to obtain adequate capital, it could be forced to cease operations.

In order to continue as a going concern, the Company will need, among other things, additional capital resources. Management’s plan is to obtain such resources for the Company by obtaining capital from management and significant shareholders sufficient to meet its minimal operating expenses and seeking equity and/or debt financing. However management cannot provide any assurances that the Company will be successful in accomplishing any of its plans.

The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plan described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that may be necessary if the Company is unable to continue as a going concern.  


NOTE 3 – SHAREHOLDERS’ EQUITY


No additional common shares were issued for any reason during the three months ended September 30, 2011.



NOTE 4 – RELATED PARTY TRANSACTIONS


A convertible note of $10,000 was issued on August 20, 2010 by the Company to Millenium Group, Inc. (“Millenium”), a California corporation. The owner of Millenium, Jonathan Mork, is a son of Dempsey Mork, who is the beneficial owner of MCC profit Sharing Plan which holds more than 5% of the common shares from the Company. The note is payable in two years and a 5% interest will be charged at maturity unless earlier converted. Interest is to be accrued for each quarter to show the comprehensive amount owed. As of September 30, 2011, the accrued interest amounts to $278. The note is convertible at the



WESTERN LUCRATIVE ENTERPRISES, INC.

(A Development Stage Company)

Notes to Financial Statements

For the Three Months Ended September 30, 2011, the Nine Months ended September 30, 2011

and for the period of July 14, 2008 (inception) to September 30, 2011


holder’s option into 4% of the Company’s fully diluted common shares at the time of conversion, with anti-dilution protection (not adjusted for splits or new issuances).

The NET note payable amount stands at $9,721 as of September 30, 2011 due to the deduction of the “beneficial conversion feature”, a more detailed description of which can be found in the foot notes to the financial statements of December 31, 2010.




NOTE 5 – SUBSEQUENT EVENTS


Management has reviewed material subsequent events in accordance with FASB ASC 855 “Subsequent Events”.  No additional disclosure is required.





ITEM 2.     MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.


Certain statements in this report and elsewhere (such as in other filings by the Company with the Securities and Exchange Commission ("SEC"), press releases, presentations by the Company of its management and oral statements) may constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," and "should," and variations of these words and similar expressions, are intended to identify these forward-looking statements. Actual results may materially differ from any forward-looking statements. Factors that might cause or contribute to such differences include, among others, competitive pressures and constantly changing technology and market acceptance of the Company's products and services. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements, which may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

Western Lucrative Enterprises, Inc. was incorporated on July 14, 2008. As of the date of this document, we have generated no revenues and substantial expenses. This resulted in a net loss of $94,845 since inception, which is attributable to

general and administrative expenses.

Since incorporation, we have financed our operations primarily through financing and through the increase in accounts payable, payments made by others for the company and by settlement of the payable amounts with shares of common stock of the Company.

To date we have not implemented our planned principal operations.


We do not expect to conduct any research and development.


We do not own any plant or equipment.


Our management does not anticipate any significant changes in the number of employees in the next 12 months.  Currently, we believe the services provided by our officers and directors are sufficient at this time.

We have not paid for expenses on behalf of any director. Additionally, we believe that this practice will not materially change.

In 2010, we engaged Millennium Group, Inc to assist the Company with new business strategies and options. Millennium Group is a consulting services firm owned and managed by Jonathan Mork, 47. A pension plan of which his father, Dempsey Mork, is a beneficiary owns more than 5% of our stock. We issued to Millennium Group a $10,000 convertible note as a non-refundable retainer to Millennium Group.  We also agreed to pay $400,000 to Millennium if it is able to introduce a major acquisition to the Company.   The note is due and payable to Millennium in two years, and bears a 5% interest rate which shall accrue annually and be payable at maturity. At Millennium’s election, this note and any accrued interest can be retired at any earlier time by conversion into common shares. The note is convertible into 4.0% of the Company’s fully diluted common shares at the time of conversion, with full anti-dilution protection (not adjusted for splits or new issuances). The Company has also agreed that any shares issued under this note will have piggyback registration rights. The Board of Directors of the Company has approved and ratified the terms of this note.



ITEM 3.       QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.

As a smaller reporting company, as defined in Rule 12b-2 of the Exchange Act, we are not required to provide the information required by this item.



ITEM 4.      CONTROLS AND PROCEDURES.

Our management, with the participation of our president and chief financial officer, carried out an evaluation of the

effectiveness of our "disclosure controls and procedures" (as defined in the Exchange Act Rules 13a-15(e) and 15d-15

(e) as of the end of the period covered by this report (the "Evaluation Date"). Based upon that evaluation, the president

and chief financial officer concluded that as of the Evaluation Date, our disclosure controls and procedures are sufficiently

effective to ensure that information required to be disclosed by us in the reports that we file or submit under the

Exchange Act (i) is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules

and forms and (ii) is accumulated and communicated to our management, including our president and chief financial

officer, as appropriate to allow timely decisions regarding required disclosure.

  

There were no changes in our internal controls over financial reporting that occurred during the last fiscal quarter covered by this report that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

                                                                                       

                                                                                      PART II


ITEM 1.                               LEGAL PROCEEDINGS


None.


ITEM 1A.                            RISK FACTORS                               


As a smaller reporting company, as defined in Rule 12b-2 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we are not required to provide the information required by this item.



ITEM 2.                              SALES OF UNREGISTERED SECURITIES AND USE OF PROCEEDS.

None.



ITEM 3.                              DEFAULTS UPON SENIOR SECURITIES.


None.


ITEM 4.                               REMOVED AND RESERVED


ITEM 5.           OTHER INFORMATION.

None.


ITEM 6.           EXHIBITS.

Exhibits Incorporated by Reference or Filed with this Report.

             Exhibit No.                                                                  Description


                      31.1         Chief Executive and Financial Officer Certification pursuant to section 302 of the Sarbanes-Ox1ey

                                Act of 2002.


32.1          Chief Executive and Financial Officer Certification pursuant to section 906 of the Sarbanes-Oxley Act

                               of 2002.


.




                                                                SIGNATURES


In accordance with Section 13 or 15(d) of the Exchange Act of 1934, the registrant has caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Western Lucrative Enterprises, Inc.

Date: November 4, 2011

By: /s/ Neville Pearson

Neville Pearson, President

                                                                            (Principal Financial and

                                                                                            Accounting Officer and duly

 Authorized officer.


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