Arcis Resources Corp

CIK:0001465130|SEC Filings

Discontinued Operations

3 Months Ended

Sep. 30, 2011

Discontinued Operations and Disposal Groups

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 9- Discontinued Operations

Effective with the date of acquisition, July 15, 2011, the Company terminated the operations of American Plant Services, its newly-acquired wholly-owned subsidiary. It was determined that the operation could not be operated profitably due to the constraints imposed by its debt load. The results of operations for the wholly-owned subsidiary, American Plant Services, are reported as a discontinued operation and the accompanying consolidated financial statements have been reclassified for the three months and nine months ended September 30, 2011, to report the assets, liabilities and operating results of this business.

The following are the summarized results of discontinued operations for the wholly-owned subsidiary, American Plant Services, for the three and nine month periods ending September 30, 2011:

	Three Months Ended September 30, 2011			Nine Months Ended September 30, 2011

Total net revenue	$	311,356		$	311,356

Total costs and expenses		672,452			672,452

Loss from discontinued operations	$	(361,096	)	$	(361,096	)

The major classes of assets and liabilities of the discontinued operation on the balance sheet are as follows:

	September 30, 2011

Assets of discontinued operation
Current Assets
Cash	$	117,007
Accounts receivable		255,250
Total current assets		372,257

Non-current assets
Property & equipment, net		5,164,623
Other Assets		59,572
Total non-current assets		5,224,195

Total Assets	$	5,596,452

Liabilities of discontinued operation
Current liabilities
Accounts payable	$	1,476,089
Note payable		849,651
Short-term debt		4,333,645
Total current liabilities		6,659,385

Total Liabilities	$	6,659,385

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	9 Months Ended
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	Sep. 30, 2011	Sep. 30, 2010
Net (Loss)	$ (869,488)	$ (87,905)
Net cash provided by discontinued operations	361,096
Depreciation and amortization	8,981
Compensation expense for options	90
Stock issued for services	2,700
(Increase)/Decrease in accounts receivable	12,334
(Increase)/Decrease in prepaid expense	6,694	100
(Increase)/Decrease in other current assets	1,751
Increase/(Decrease) in accounts payable and accrued expenses	270,695	30,713
Increase/(Decrease) in payable to/from related party	181,345
Increase/(Decrease) in other current liabilities	(114,512)
Increase/(Decrease) in notes payable	(2,810)	43,660
Net cash (used in) operating activities	(141,124)	(13,432)
Net cash provided (used in) investing activities	181,345
Proceeds from issuance of common stock subscription agreement	50,000	40,000
Proceeds from convertible debt	150,000
Net cash provided by financing activities	200,000	40,000
NET INCREASE (DECREASE) IN CASH	39,836	26,568
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	4,386	13,921
CASH AND CASH EQUIVALENTS - END OF PERIOD	47,470	40,489
Cash paid for interest
Cash paid for income taxes

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)	Sep. 30, 2011	Dec. 31, 2010
Cash	$ 47,470	$ 4,386
Accounts receivable	22,368
Receivable due from related party		29,400
Prepaid expenses		6,694
Current assets of discontinued operations	372,258
Total current Assets	442,096	40,480
Machinery and equipment	137,675
Trucks and automobiles	17,013
Machinery, equipment and vehicles, net	154,688
Less: Accumulated Depreciation	(35,538)
Property and equipment, net	119,150
Patents, net of accumulated amortization of $9,405	60,430
Intangible Assets	1,304,454
Non-current assets of discontinued operations	5,224,194
Total other assets	6,589,078
TOTAL ASSETS	7,150,324	40,480
Accounts Payable and accrued expenses	(35,538)
Promissory note payable	119,150
Convertible debt	150,000
Current portion of long-term debt	15,277
Notes Payable to related parties	514,995
Payable to related party	157,545	5,600
Capital Stock to be issued	50,000	108,700
Current liabilities from discontinued operations	6,659,385
Other current liabilities	22,365
Total current liabilities	7,932,371	182,674
Long-term debt, less current portion	35,583
Other long-term liabilities	31,514
Total long-term liabilities	67,097
TOTAL LIABILITIES	7,999,468	182,674
Common stock, par value $.001 per share; 200,000,000 shares authorized, and 29,046,000 shares issued and outstanding at September 30,2011, and 18,815,000 shares issued and outstanding at December 31, 2010.	29,046	18,815
Additional paid-in capital	185,435	33,128
(Accumulated deficit)	(1,063,625)	(194,137)
Total stockholders' equity (deficit)	(849,144)	(142,194)
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)	$ 7,150,324	$ 40,480