FACT CORP

CIK:0000707674|SEC Filings

Statements of Operations (Unaudited) (USD $)	3 Months Ended		9 Months Ended
Statements of Operations (Unaudited) (USD $)	Sep. 30, 2011	Sep. 30, 2010	Sep. 30, 2011	Sep. 30, 2010
Revenue:
Net sales	$ 759,423	$ 180,566	$ 1,682,006	$ 557,527
Rental income		4,134		47,198
Total revenue	759,423	184,700	1,682,006	604,725
Cost of sales	616,091	134,659	1,371,896	439,599
Gross profit	143,332	50,041	310,110	165,126
Operating expenses:
Professional fees	16,000	12,114	58,642	31,349
Depreciation	63,384	62,337	187,903	187,010
Marketing and advertising expense	22,840	68,341	104,133	80,375
Research and development expense		10,944		45,478
General and administrative	179,887	176,635	593,670	491,664
Total operating expense	282,111	330,371	944,348	835,876
Loss from operations	(138,779)	(280,330)	(634,238)	(670,750)
Gain on debt forgiveness	124,673		127,915	12,276
Loss on debt settlement	(969,230)		(969,230)
Interest expense	(53,745)	(44,934)	(196,580)	(127,569)
Net loss	(1,037,081)	(325,264)	(1,672,133)	(786,043)
Per common share data, basic and diluted:
Net loss	$ 0.03	$ 0.02	$ 0.07	$ 0.04
Weighted average number of Class A common shares outstanding, basic and diluted	37,176,512	18,796,328	25,286,267	18,794,021
Comprehensive income(loss):
Net loss	(1,037,081)	(325,264)	(1,672,133)	(786,043)
Foreign currency translation adjustments	1,117	(1,930)	(5,220)	(2,343)
Total comprehensive income	$ (1,035,964)	$ (327,194)	$ (1,677,353)	$ (788,386)

Statements of Cash Flows (Unaudited) (USD $)	9 Months Ended
Statements of Cash Flows (Unaudited) (USD $)	Sep. 30, 2011	Sep. 30, 2010
Cash flows from operating activities:
Net loss	$ (1,672,133)	$ (786,043)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	187,903	187,010
Amortization of discounts and premiums	56,506	16,337
Accrued interest	102,872	103,342
Loss on debt settlement	969,230
Gain on debt forgiveness	(127,915)
Shares issued for consulting services	153,278
Stock-based compensation	4,172	58,582
Changes in operating assets and liabilities:
Accounts receivable	77,616	51,137
Inventory	(50,233)	(136,528)
Prepaid expenses and other current assets	(65,410)	(4,618)
Customer deposits	54,717
Accounts payable and accrued liabilities	284,959	298,475
Net cash used in operating activities	(24,438)	(212,306)
Cash flows from investing activities:
Purchase of vehicle	(91,279)
Net cash used in investing activities:	(91,279)
Cash flows from financing activities:
Additions to short-term loan from related parties		48,147
Additions to short-term loans	188,274	257,862
Repayments of short-term loans	(201,875)
Proceeds from issuance of unit private placements		22,500
Reduction to acquisition cost payable	(166,071)	(128,554)
Net cash provided (used) by financing activities	(179,672)	199,955
Effect of foreign exchange on transactions	3,608	(1,216)
Net increase (decrease) in cash	(291,781)	(13,567)
Cash at beginning of year	323,198	45,736
Cash and cash equivalents at end of year	31,417	32,169
Supplemental disclosure of cash flow information:
Interest paid	27,279
Income taxes paid (refund)
Supplemental schedule of non-cash financing:
Common stock issued for debt settlement for convertible notes with accrued interest	1,508,208
Common stock issued for debt settlement for short term loan with accrued interest	451,145
Common stock issued for debt settlement for short term loan, related parties with accrued interest	74,329
Common stock issued for debt settlement for accounts payable	29,072
Common stock issued for debt settlement for advances from related parties	844,936
Total	$ 2,907,690

Balance Sheets (Unaudited) (USD $)	Sep. 30, 2011	Dec. 31, 2010
Current Assets
Cash	$ 31,417	$ 323,198
Accounts receivable	124,174	200,371
Inventory	129,278	79,045
Prepaid expense	56,542	1,695
Total Current Assets	341,411	604,309
Vehicle, net of depreciation	90,154
Intellectual property	314,097	500,875
Total Assets	745,662	1,105,184
Current Liabilities
Accounts payable and accrued liabilities	491,488	576,563
Advances from related parties	228,102	853,715
Customer deposits	54,717
Short-term loans from related parties	45,837	67,559
Short-term loans	96,820	387,538
Current portion of long-term debt and other long-term obligations	269,034	219,620
Total current liabilities	1,185,998	2,104,995
Long-term debt, net of discount	45,034	140,617
Convertible notes payable, net of discount	311,943	1,579,113
Other long-term obligations	901,280	1,115,469
Total Liabilities	2,444,255	4,940,194
Class A Common stock; no par value per share; Shares authorized: 100,000,000; 61,537,789 and 19,238,912 shares issued and outstanding as at September 30, 2011 and December 31, 2010 respectively	27,549,076	23,317,356
Additional paid in capital	581,839	999,789
Accumulated other comprehensive income	91,535	96,755
Accumulated deficit	(29,921,043)	(28,248,910)
Total Stockholders Deficiency	(1,698,593)	(3,835,010)
Total Liabilities and Stockholders Deficiency	$ 745,662	$ 1,105,184