China Wi-Max Communications, Inc.

CIK:0001434667|SEC Filings

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (USD $)	3 Months Ended		6 Months Ended		60 Months Ended
	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011
Operating expenses:
General and administrative expense	$ (200,136)	$ (432,991)	$ (397,134)	$ (2,127,441)	$ (8,550,468)
Operating loss	(200,136)	(432,991)	(397,134)	(2,127,441)	(8,550,468)
Other expense:
Interest expense	(80,817)	(165,085)	(169,194)	(258,266)	(2,320,715)
Gain (loss) on derivatives	(2,464)		44,384		(168,407)
Nonoperating Income (Expense), Total	(83,281)	(165,085)	(124,810)	(258,266)	(2,489,122)
Net loss	(283,417)	(598,076)	(521,944)	(2,385,707)	(11,039,590)
Net loss attributable to the noncontrolling interest	(1,819)	(4,265)	(6,489)	(19,856)	(43,595)
Net loss attributable to China Wi-Max	(281,598)	(593,811)	(515,455)	(2,365,851)	(10,995,995)
Foreign currency translation gain (loss)	6,337	(1,123)	10,047	911	63,572
Comprehensive loss	$ (277,080)	$ (599,199)	$ (511,897)	$ (2,384,796)	$ (10,976,018)
Basic and diluted net loss per share attributable to China W-Max common shareholders	$ (0.01)	$ (0.04)	$ (0.01)	$ (0.15)
Weighted average number of common shares outstanding	46,632,106	16,373,938	44,544,035	15,601,408

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	6 Months Ended		60 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Jun. 30, 2011	Jun. 30, 2010	Jun. 30, 2011
Cash flows from operating activities:
Net loss	$ (521,944)	$ (2,385,707)	$ (11,039,590)
Adjustments to reconcile net loss to net cash used in operating activities:
Stock based compensation	35,399	1,533,089	3,233,831
Amortization of debt issue costs	89,993	34,498	159,469
Contributed services	60,000		60,000
(Gain)/loss on derivative	(44,384)		168,407
Impairment loss	42,188		173,438
Depreciation	14,531	13,851	78,085
Amortization	12,022		37,671
Changes in operating assets and liabilities:
(Increase)/decrease in prepaid expenses	(306)	22,076	(2,501)
Decrease in other assets			38,139
Increase in accounts payable	125,622	298,915	1,290,449
Increase in accrued interest	71,702	181,768	2,107,468
Net cash used in operating activities	(115,177)	(301,510)	(3,695,134)
Cash flows from investing activities:
Purchase of property and equipment			(521,329)
Purchase of intangible assets			(364,195)
Net cash used in investing activities			(885,524)
Cash flows from financing activities:
Proceeds from issuance of notes payable and warrants	133,500	268,500	4,634,744
Debt repayment	(18,500)		(63,500)
Proceeds from issuance of common stock			9,055
Debt issue costs			(5,270)
Net cash provided by financing activities	115,000	268,500	4,575,029
Effect of exchange rate changes on cash	213	(1,206)	7,487
Net increase(decrease) in cash	36	(34,216)	1,858
Cash, beginning of period	1,822	34,524
Cash, end of period	1,858	308	1,858
Supplemental disclosure of non-cash investing and financing activities:
Convertible notes and interest converted to common stock	$ 895,903	$ 69,914	$ 5,476,843

CONSOLIDATED BALANCE SHEETS (USD $)	Jun. 30, 2011	Dec. 31, 2010
Current assets:
Cash	$ 1,858	$ 1,822
Prepaid expenses	2,499	2,193
Total current assets	4,357	4,015
Property and equipment, net	499,328	504,026
Intangible assets, net	120,218	174,428
Assets, Noncurrent, Total	619,546	678,454
Total assets	623,903	682,469
Current liabilities:
Accounts payable	1,290,449	1,164,827
Accrued interest	257,787	365,920
Notes payable, net of discount of $59,565 (2011), $42,474 (2010)	1,068,936	1,329,526
Derivative liabilities	133,544	428,414
Total liabilities (all current)	2,750,716	3,288,687
China Wi-Max shareholders' deficit:
Common stock; $.001 par value; 100,000,000 shares authorized; 52,248,927 and 37,813,042 shares issued and outstanding as of June 30, 2011 and December 31, 2010, respectively	52,249	37,813
Additional paid-in capital	8,796,955	7,820,089
Accumulated other comprehensive income	63,572	53,525
Deficit accumulated during the development stage	(10,995,994)	(10,480,539)
Total China Wi-Max shareholders' deficit	(2,083,218)	(2,569,112)
Noncontrolling interest	(43,595)	(37,106)
Total deficit	(2,126,813)	(2,606,218)
Total liabilities and deficit	$ 623,903	$ 682,469