MAJIC WHEELS CORP

CIK:0001406568|SEC Filings

STATEMENTS OF OPERATIONS (USD $)	2 Months Ended	4 Months Ended		7 Months Ended	9 Months Ended
STATEMENTS OF OPERATIONS (USD $)	Feb. 29, 2012	Sep. 30, 2012	Sep. 30, 2011	Sep. 30, 2012	Sep. 30, 2011
Income Statement [Abstract]
Service revenues	$ 82,945	$ 217,128	$ 139,344	$ 516,057	$ 423,223
Operating Expenses:
Cost of services	34,768	128,130	56,703	244,967	191,028
Salaries & Benefits	19,737	266,251	40,821	492,698	112,543
Professional fees	20	7,530	11,491	48,284	15,991
Depreciation expense	24,224	42,386	36,337	115,478	109,010
Loss on disposal of equipment					2,007
Selling, general and administrative expenses	27,880	92,381	56,243	310,690	155,567
Total operating expenses	106,629	536,678	201,595	1,212,117	586,146
Loss from Operations	(23,684)	(319,550)	(62,251)	(696,060)	(162,923)
Other income (expense)
Interest expense, net		(182,945)	(46,337)	(295,624)	(135,476)
Loss on disposal of equipment
Gain (loss) on derivative liability		139,819		(387,438)
Total other income (expenses), net		(43,216)	(46,337)	(683,062)	(135,476)
Net Loss	$ (23,684)	$ (362,676)	$ (108,588)	$ (1,379,122)	$ (298,399)
Net Loss per Share (Basic and Diluted):		$ 0		$ (0.01)
Weighted Average Number of Common Shares Outstanding (Basic and Diluted)		359,693,526		269,107,910

STATEMENTS OF CASH FLOWS (USD $)	2 Months Ended	7 Months Ended	9 Months Ended
STATEMENTS OF CASH FLOWS (USD $)	Feb. 29, 2012	Sep. 30, 2012	Sep. 30, 2011
Cash flows from operating activities
Net (loss)	$ (23,684)	$ (1,379,122)	$ (298,399)
Adjustments to reconcile net (loss) to net cash (used in) operating activities:
Depreciation	24,224	115,478	109,010
Loss on disposal of equipment			2,007
Amortization of debt discount		127,696
Loss on derivative		387,438
Franchise fees		75,000
Stock based compensation		37,100
Change in operating assets and liabilities:
Accounts receivable	(1,854)	(45,896)	34,302
Related party receivable	(5,197)	(14,203)
Prepaid expenses			663
Accounts payable and Accrued Liabilities	(40,621)	616,437	152,599
Related party payable		0	1,374
Deferred Revenue	14,735		(12,893)
Net Cash Used in Operating Activities	(32,397)	(80,072)	(11,337)
Cash flows from investing activities:
Purchase of equipment		(8,500)
Proceeds from the sale of equipment			200
Cash provided by (used in) investing activities		(8,500)	200
Cash flows from financing activities:
Bank overdraft		(5,598)	(3,612)
Net proceeds from promissory notes	39,297	131,006	19,942
Net proceeds from related party debt	2,700		10,612
Repayments of promissory notes		(27,903)
Repayments of related party debt		(2,700)
Repayments of capital lease			(12,123)
Cash provided by Financing Activities	41,997	94,805	14,819
Net Increase (Decrease) in Cash	9,600	6,233	3,682
Cash - Beginning of Period	725	2,072	124
Cash - End of Period	10,325	8,305	3,806
Supplemental Disclosure of Cash Flow Information:
Cash paid during the period for:Interest			363
Cash paid during the period for:Income taxes
Non cash activities
Common stock issued for conversion of convertible notes		40,684
Common stock issued for settlement of accrued compensation		93,146
Preferred stock issued for settlement of accrued compensation		205,124
Reclassification from nonconvertible to convertible notes		1,011,201
Reclassification from accrued interest to convertible notes		18,562
Debt issued for purchase of fixed assets		122,633
Debt discount resulting from recognition of derivative		1,059,513
Settlement of derivative liabilities		$ 185,463

BALANCE SHEETS (USD $)	Sep. 30, 2012	Dec. 31, 2011
ASSETS
Cash	$ 8,305	$ 725
Accounts receivable, net	52,986	31,558
Due from related parties	14,203
Total Current Assets	75,494	32,283
Restricted cash		15,034
Property and equipment, net of accumulated depreciation of $115,478 and $443,734, respectively	853,174	484,208
Total Assets	928,668	531,525
Current Liabilities:
Bank overdraft	847
Accounts payable	30,778	12,584
Accrued liabilities	1,234,406	662,879
Deferred revenue		37,535
Loans payable, current	359,468	1,096,140
Convertible debt, current, net of unamortized discount of $83,270 and $0, respectively	28,512
Derivative Liability	2,873,501
Capital leases payable, current		30,582
Total current liabilities	4,527,512	1,839,720
Promissory notes	49,636	11,365
Convertible debt, net of unamortized discount of $919,324 and $0 respective	108,918
Total liabilities	4,686,066	1,851,085
Stockholders' (Deficit):
Preferred stock, $.0001 per share, 10,000,000 shares authorized; 500,000 shares issued and outstanding	50
Common stock, $.0001 per share, 5,000,000,000 shares authorized; 516,062,628 shares issued and outstanding	51,606
Additional paid-in capital	753,184	15,629
Accumulated deficit	(4,562,238)	(1,335,189)
Total stockholders' (deficit)	(3,757,398)	(1,319,560)
Total Liabilities and Stockholders' (Deficit)	$ 928,668	$ 531,525