XOTC:GDHC Quarterly Report 10-Q Filing - 3/31/2012

Effective Date 3/31/2012

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UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10Q (Mark One) [ X ] QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2012 [ ] TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE EXCHANGE ACT For the transition period from __________ to ___________ Commission file number: 000-27055 GOLDEN DRAGON HOLDING CO. -------------------------------------- (Exact name of registrant as specified in its charter) DELAWARE 24-4635140 (State of Incorporation) (IRS Employer ID Number) 2460 WEST 26TH AVENUE, SUITE 380-C, DENVER, COLORADO 80211 (Address of principal executive offices) 303-704-4623 (Registrant's Telephone number) 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 past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to the filing requirements for the past 90 days. Yes [X] No [ ] Indicate by check mark 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 (ss.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 [ ] No [ ] Indicate by check mark whether the registrant is a large accelerated file, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] (Do not check if a smaller reporting company) Smaller reporting company [X] Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [X] No [ ] Indicate the number of share outstanding of each of the issuer's classes of common stock, as of the latest practicable date. As of April 27, 2012, there were 2,384,407 shares of the registrant's common stock, $0.0001 par value, issued and outstanding. <PAGE> GOLDEN DRAGON HOLDING CO. INDEX PART I - FINANCIAL INFORMATION Item 1. Financial Statements (Unaudited) Page ---- Balance Sheets As of March 31, 2012 (Unaudited) and December 31, 2011 (Audited) 3 Statements of Operations For the three Month Periods Ended March 31, 2012 and 2011 and the Period from Inception (January 1, 2011) Through March 31, 2012 4 Statements of Cash Flows For the three Month Periods Ended March 31, 2012 and 2011 and the Period from Inception (January 1, 2011) Through March 31, 2012 5 Notes to Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 12 Item 3. Quantitative and Qualitative Disclosures About Market Risk 20 Item 4. Controls and Procedures 20 PART II - OTHER INFORMATION Item 1. Legal Proceedings 21 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 21 Item 3. Defaults Upon Senior Securities 21 Item 4. Mine Safety Disclosures 21 Item 5. Other Information 21 Item 6. Exhibits 21 SIGNATURES 22 2 <PAGE> GOLDEN DRAGON HOLDINGS CO. A DEVELOPMENT STAGE COMPANY BALANCE SHEETS MARCH 31, DECEMBER 31, 2012 2011 --------------- ----------------- (Unaudited) (Audited) ASSETS <S> <C> <C> CURRENT ASSETS Cash and Cash Equivalents $ 25 $ 25 --------------- ----------------- Total Current Assets 25 25 --------------- ----------------- TOTAL ASSETS $ 25 $ 25 =============== ================= LIABILITIES & STOCKHOLDERS' (DEFICIT) CURRENT LIABILITIES Accounts Payable $ 38,618 $ 24,857 Accrued Expenses 4,262 2,700 Related Party Loan 92,629 72,029 --------------- ----------------- Total Current Liabilities 135,509 99,586 --------------- ----------------- COMMITMENTS AND CONTINGENCIES (Note. 7) STOCKHOLDERS' DEFICIT Preferred Stock; $0.0001 par value, 10,000,000 shares authorized - - no shares issued and outstanding Class A Common Stock; $0.0001 par value, 100,000,000, 239 239 shares authorized as at March 31, 2011 and December 31, 2010, 2,384,407 shares issued and outstanding as at March 31, 2011 and December 31, 2010 Additional Paid In Capital 16,874,642 16,874,642 Accumulated Deficit (including $(135,584) and $ (99,661) respectively during the development stage) (17,010,365) (16,974,442) --------------- ----------------- Total Stockholders' (Deficit) (135,484) (99,561) --------------- ----------------- TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) $ 25 $ 25 =============== ================= See Accompanying Notes to Financial Statements. 3 <PAGE> GOLDEN DRAGON HOLDING CO. A DEVELOPMENT STAGE COMPANY STATEMENTS OF OPERATIONS (Unaudited) FROM INCEPTION OF DEVELOPMENT STAGE (JANUARY 1, 2011) FOR THREE MONTHS ENDED THROUGH MARCH 31, MARCH 31, 2012 2011 2012 -------------- --------------- ------------- <S> <C> <C> <C> OPERATING EXPENSES General & Administrative Expenses $ 34,361 $ 15,477 $ 131,463 -------------- --------------- ------------- Total Operating Expenses 34,361 15,477 131,463 -------------- --------------- ------------- OPERATING LOSS (34,361) (15,477) (131,463) Interest and Other Income / (Expenses) Net (1,562) (99) (4,121) -------------- --------------- ------------- Loss before Income Taxes (35,923) (15,576) (135,584) Provision for Income Taxes - - - -------------- --------------- ------------- NET LOSS $ (35,923) $ (15,576) $ (135,584) ============== =============== ============= NET LOSS PER COMMON SHARE Basic & Diluted ($0.02) ($0.01) ============== =============== WEIGHTED AVERAGE COMMON SHARES OUTSTANDING Basic & Diluted 2,384,407 2,384,407 ============== =============== See Accompanying Notes to Financial Statements. 4 <PAGE> GOLDEN DRAGON HOLDING CO. A DEVELOPMENT STAGE COMPANY STATEMENTS OF CASH FLOWS (Unaudited) FROM INCEPTION OF DEVELOPMENT STAGE (JANUARY 1, 2011) FOR THE THREE MONTHS ENDED THROUGH MARCH 31, MARCH 31, 2012 2011 2012 ------------ ------------- ---------- <S> <C> <C> <C> CASH FLOW PROVIDED BY / (USED IN) OPERATING ACTIVITIES NET PROFIT / (LOSS) $ (35,923) $ (15,576) $ (135,584) ADJUSTMENTS TO RECONCILE NET PROFIT / (LOSS) TO NET CASH PROVIDED BY / (USED IN) OPERATING ACTIVITIES Compensatory loan increases 15,000 15,000 75,000 CHANGES IN OPERATING ASSETS & LIABILITIES Increase / (decrease) in Accounts Payable 13,760 476 38,617 Increase / (decrease) in Accrued Expenses - Related Party 1,563 100 4,263 ------------ ------------- ---------- Total Cash Flow provided by / (used in) Operating Activities (5,600) - (17,704) ------------ ------------- ---------- CASH FLOW FROM INVESTING ACTIVITIES - - - ------------ ------------- ---------- Total Cash Flow provided by / (used in) Investing Activities - - - ------------ ------------- ---------- CASH FLOW FROM FINANCING ACTIVITIES Increase in Related Party Loan 5,600 - 17,629 ------------ ------------- ---------- Total Cash Flow provided by / (used in) Financing Activities 5,600 - 17,629 ------------ ------------- ---------- INCREASE / (DECREASE) IN CASH & CASH EQUIVALENTS $ 0 $ - $ (75) ============ ============= ========== Cash and Cash Equivalents at the beginning of the period $ 25 $ 100 $ 100 ============ ============= ========== Cash and Cash Equivalents at the end of the period $ 25 $ 100 $ 25 ============ ============= ========== NON-CASH INVESTING AND FINANCING ACTIVITIES Related party loans $ 15,000 $ 15,000 $ 75,000 ------------ ------------- ---------- SUPPLEMENTAL SCHEDULE OF CASH FLOW INFORMATION Cash paid for interest $ - $ - $ - ============ ============= ========== Cash paid for income tax $ - $ - $ - ============ ============= ========== See Accompanying Notes to Financial Statements. 5 <PAGE> PART I ITEM 1. FINANCIAL STATEMENTS GOLDEN DRAGON HOLDING CO. A DEVELOPMENT STAGE COMPANY NOTES TO FINANCIAL STATEMENTS MARCH 31, 2012 (UNAUDITED) 1. NATURE OF OPERATIONS AND SIGNIFICANT ACCOUNTING POLICIES: Nature of Operations Business Golden Dragon Holding Co. ("Golden Dragon", "We" or "Us") is a publicly quoted shell company seeking to create value for our shareholders by merging with another entity with experienced management and opportunities for growth in return for shares of our common stock. No potential merger candidate has been identified at this time. We are a development stage enterprise in accordance with Statement of Financial Accounting Standards ("SFAS") No. 7, "Accounting and Reporting by Development Stage Enterprises" now referred to as ACS 915 "Development Stage Entities". We have been in the development stage since Inception (January 1, 2011). History Golden Dragon was incorporated in the State of Delaware in April 2010 as a wholly owned subsidiary of Concord Ventures, Inc. ("Concord"). Concord was a publicly quoted shell company with no assets, no operating business or other source of income and liabilities in excess of $590,000. Merger of Concord In order for Concord to re-domicile in the State of Delaware from the State of Colorado, on September 29, 2010, Concord entered into an Agreement and Plan of Merger ("the Merger Agreement") with one of its wholly owned subsidiary companies, CCVG, Inc. ("CCVG"). Under the terms of the Merger Agreement, Concord shares of common stock converted automatically to CCVG shares, without change or necessity to reissue. Also under the Merger Agreement, CCVG became the surviving company domiciled in Delaware. Reorganization into a Holding Company Structure Effective December 31, 2010, pursuant to the Delaware Holding Company formation statute, under Delaware General Corporate Law (DGCL) Section 251(g), CCVG completed an Agreement and Plan of Merger and Reorganization into a Holding Company ("the Reorganization") with CCAPS, Inc. ("CCAPS") and Golden Dragon, both wholly-owned subsidiaries of CCVG. The Reorganization provided for the merger of CCVG with and into CCAPS, with CCAPS being the surviving corporation in that merger. Contemporaneously with CCVG's merger with and into CCAPS, the shareholders of CCVG were converted into shareholders of Golden Dragon on a one share for one share basis. 6 <PAGE> As a result of this reorganization into a Holding Company structure, Golden Dragon became the surviving publicly quoted parent holding company with CCAPS, the surviving corporation of the merger between CCVG and CCAPS, becoming the sole remaining wholly-owned subsidiary of Golden Dragon. The Reorganization has been accounted for so as to reflect the fact that both CCVG and Golden Dragon were under common control at the date of the Reorganization, similar to a reverse acquisition of CCVG and its subsidiary company, CCAPS, by Golden Dragon. Sale of CCAPS On December 31, 2010, Golden Dragon entered into a Share Purchase Agreement with an unrelated third party. Under the terms of the Share Purchase Agreement, Golden Dragon sold 100% of the issued and outstanding shares of its sole remaining wholly owned subsidiary, CCAPS for $100 cash consideration, subject to its debts, and issued 25,000 restricted shares of Golden Dragon common stock, valued at $1,000, to CCAPS pursuant to the terms of the Share Purchase Agreement. At the time of the sale, CCAPS had no ongoing operations or assets and outstanding liabilities of approximately $678,000. Following the merger of CCVG with and into CCAPS, CCAPS, as the surviving corporation in that merger, retained all outstanding liabilities of CCVG in the divestiture. As a result of the sale of 100% of the issued and outstanding shares of CCAPS, Golden Dragon, the surviving publicly quoted holding company, will no longer consolidate the liabilities of CCAPS or CCVG. Basis of Presentation: The accompanying unaudited financial statements of Golden Dragon have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In our opinion the financial statements include all adjustments (consisting of normal recurring accruals) necessary in order to make the financial statements not misleading. Operating results for the three months ended March 31, 2012 are not necessarily indicative of the results that may be expected for the year ended December 31, 2012. For more complete financial information, these unaudited financial statements should be read in conjunction with the audited financial statements for the year ended December 31, 2011 included in our Form 10-K filed with the SEC. 7 <PAGE> Significant Accounting Policies: Development Stage Company - We are a development stage enterprise in accordance with Statement of Financial Accounting Standards ("SFAS") No. 7, "Accounting and Reporting by Development Stage Enterprises" now referred to as ACS 915 "Development Stage Entities". We have been in the development stage since Inception (January 1, 2011). Among the disclosures required as a development stage company are that our financial statements are identified as those of a development stage company, and that the statements of operations, stockholders' deficit and cash flows disclose activity since the date of our Inception (January 1, 2011) as a development stage company. Use of Estimates -- The preparation of our consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in these financial statements and accompanying notes. Actual results could differ from those estimates. Due to uncertainties inherent in the estimation process, it is possible that these estimates could be materially revised within the next year. Cash and Cash Equivalents -- Cash and cash equivalents consist of cash and highly liquid debt instruments with original maturities of less than three months. Property and Equipment -- We owned no property and equipment during the three months ended March 31, 2012 or 2011 and consequently we recorded no depreciation expense during the three months ended March 31, 2012 or 2011. Deferred Costs and Other -- Offering costs with respect to issue of common stock, warrants or options by us were initially deferred and ultimately offset against the proceeds from these equity transactions if successful or expensed if the proposed equity transaction is unsuccessful. We had no deferred costs and other as at March 31, 2012 or 2011. Impairment of Long-Lived and Intangible Assets -- In the event that facts and circumstances indicated that the cost of long-lived and intangible assets may be impaired, an evaluation of recoverability was performed. If an evaluation was required, the estimated future undiscounted cash flows associated with the asset were compared to the asset's carrying amount to determine if a write-down to market value or discounted cash flow value was required. Financial Instruments -- The estimated fair values for financial instruments was determined at discrete points in time based on relevant market information. These estimates involved uncertainties and could not be determined with precision. The carrying amounts of notes receivable, accounts receivable, accounts payable and accrued liabilities approximated fair value because of the short-term maturities of these instruments. The fair value of notes payable approximated to their carrying value as generally their interest rates reflected our effective annual borrowing rate. 8 <PAGE> Income Taxes -- We account for income taxes under the liability method, which requires recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements or tax returns. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial statements and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Advertising costs -- Advertising costs are expensed as incurred. No advertising costs were incurred during the three months ended March 31, 2012 or 2011. Comprehensive Income (Loss) -- Comprehensive income is defined as all changes in stockholders' equity (deficit), exclusive of transactions with owners, such as capital investments. Comprehensive income includes net income or loss, changes in certain assets and liabilities that are reported directly in equity such as translation adjustments on investments in foreign subsidiaries and unrealized gains (losses) on available-for-sale securities. From our inception there were no differences between our comprehensive loss and net loss. Our comprehensive loss was identical to our net loss for the three months ended March 31, 2012 and 2011. Income (Loss) Per Share -- Income (loss) per share is presented in accordance with Accounting Standards Update ("ASU"), Earning Per Share (Topic 260) which requires the presentation of both basic and diluted earnings per share ("EPS") on the consolidated income statements. Basic EPS would exclude any dilutive effects of options, warrants and convertible securities but does include the restricted shares of common stock issued. Diluted EPS would reflect the potential dilution that would occur if securities of other contracts to issue common stock were exercised or converted to common stock. Basic EPS calculations are determined by dividing net income by the weighted average number of shares of common stock outstanding during the year. Diluted EPS calculations are determined by dividing net income by the weighted average number of common shares and dilutive common share equivalents outstanding. Basic and diluted EPS were identical for the three months ended March 31, 2012 and 2011 as we had no stock options or warrants outstanding during those periods. Stock-Based Compensation -- We have adopted ASC Topic 718 (formerly SFAS 123R), "Accounting for Stock-Based Compensation", which establishes a fair value method of accounting for stock-based compensation plans. In accordance with guidance now incorporated in ASC Topic 718, the cost of stock options and warrants issued to employees and non-employees is measured on the grant date based on the fair value. The fair value is determined using the Black-Scholes option pricing model. The resulting amount is charged to expense on the straight-line basis over the period in which we expect to receive the benefit, which is generally the vesting period. The fair value of stock warrants was determined at the date of grant using the Black-Scholes option pricing model. The Black-Scholes option model requires management to make various estimates and assumptions, including expected term, expected volatility, risk-free rate, and dividend yield. No stock based compensation was issued or outstanding during the three months ending March 31, 2012 or 2011. 9 <PAGE> Business Segments -- We believe that our activities during the three months ended March 31, 2012 and 2011 comprised a single segment. Recently Issued Accounting Pronouncements-- We have reviewed all recently issued, but not yet effective, accounting pronouncements and do not believe the future adoption of any such pronouncements may be expected to cause a material impact on our financial condition or the results of our operations. 2. GOING CONCERN AND LIQUIDITY: At March 31, 2011, we had cash of $25, no other assets, no operating business or other source of income, outstanding liabilities totaling $135,509 and a stockholders' deficit of $135,484. In our financial statements for the fiscal years ended December 31, 2011 and 2010, the Report of the Independent Registered Public Accounting Firm includes an explanatory paragraph that describes substantial doubt about our ability to continue as a going concern. Our unaudited financial statements for the three months ended March 31, 2012 and 2011 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. We had a working capital deficit of $135,484 and reported an accumulated deficit since Inception (January 1, 2011) of $135,584 as at March 31, 2012. It is our current intention to seek to raise debt and, or, equity financing to fund our ongoing operating expenses and attempt to create value for our shareholders by merging with another entity with experienced management and opportunities for growth in return for shares of our common stock. There is no assurance that this series of events will be satisfactorily completed. 3. ASSETS As at March 31, 2012 and December 31, 2011, our sole asset was Cash and Cash Equivalents of $25. 4. ACCOUNTS PAYABLE As at March 31, 2012, the balance of accounts payable represents legal fees payable. 5. ACCRUED EXPENSES As at March 31, 2012, the balance of accrued expenses represents interest payable on our related party loan (See Note 6.). 10 <PAGE> 6. RELATED PARTY LOAN As at March 31, 2011, the related party loan represents a loan made to us by Mr. David J. Cutler, our sole officer, a director and majority shareholder. The loan is repayable on demand and at March 31, 2011, the principal balance owed was $92,629 with accrued interest of $4,262. Interest is accrued on the loan at 8%. 7. COMMITMENTS: Capital and Operating Leases We had no capital or operating leases outstanding as at March 31, 2012. Litigation No legal proceedings are currently pending or threatened to the best of our knowledge. 8. RELATED PARTY TRANSACTIONS As at March 31, 2012, we owed Mr. Cutler, our sole officer, a director and majority shareholder, $96,891 including accrued interest of $4,262. During the three months ended March 31, 2012, we accrued $15,000 (2011 - $15,000) of Mr. Cutler's remuneration as payable to Burlingham Corporate Finance, Inc. ("Burlingham") in the form of consulting fees. Mr. Cutler is the principal shareholder of Burlingham. 9. STOCKHOLDERS' DEFICIT: Preferred Stock We were authorized, without further action by the shareholders, to issue 10,000,000 shares of one or more series of preferred stock at a par value of $0.0001, all of which is nonvoting. The Board of Directors may, without shareholder approval, determine the dividend rates, redemption prices, preferences on liquidation or dissolution, conversion rights, voting rights and any other preferences. No shares of preferred stock were issued or outstanding during the three month periods ended March 31, 2012 and 2011. Common Stock We were authorized to issue 100,000,000 shares of common stock, par value $0.0001 per share. On April 29, 2008, we held our annual meeting of stockholders at which meeting the majority of stockholders approved, an up to 3 for 1 reverse split of our shares of common stock. No such reverse split has been effected as yet. 11 <PAGE> Recent Issuances No shares of our common stock were issued in the three months ended March 31, 2012 or 2011. Warrants No warrants were issued or outstanding during the three months ended March 31, 2012 or 2011. Stock Options Effective March 19, 1999, we adopted a stock option plan (the "Plan"). The Plan provides for grants of incentive stock options, nonqualified stock options and restricted stock to designated employees, officers, directors, advisors and independent contractors. The Plan authorized the issuance of up to 75,000 shares of Class A Common Stock. Under the Plan, the exercise price per share of a non-qualified stock option must be equal to at least 50% of the fair market value of the common stock at the grant date, and the exercise price per share of an incentive stock option must equal the fair market value of the common stock at the grant date. No stock options were issued or outstanding during the three months ended March 31, 2012 or 2011. 10. INCOME TAXES We have had losses since our Inception (January 1, 2011), and therefore have not been subject to federal or state income taxes since our Inception. Following our reorganization into a holding company structure and the sales of our subsidiary company, CCAPS, we disposed of the majority of our brought forward net operating losses. Consequently, effective March 31, 2012, we had NOLS of approximately $136,000, which expire in 2031 and 2032. 11. SUBSEQUENT EVENTS We have evaluated subsequent events through April 27, 2012. Other than those set out above, there have been no subsequent events after March 31, 2012 for which disclosure is required. 12 <PAGE> ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following discussion should be read in conjunction with the consolidated financial statements and notes thereto and the other financial information included elsewhere in this report. This discussion contains forward-looking statements that involve risks and uncertainties. We believe that our expectations are based on reasonable assumptions within the bounds of our knowledge of our business and operations: there can be no assurance that actual results will not differ materially from our expectations. Such forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated, including but not limited to, our ability to raise debt and, or, equity to fund our ongoing operating expenses and to create value for our shareholders by merging with another entity with experienced management and opportunities for growth in return for shares of our common stock. You are urged to carefully consider these factors, as well as other information contained in this Annual Report on Form 10-K and in our other periodic reports and documents filed with the SEC. OVERVIEW Golden Dragon Holding Co. ("Golden Dragon") is a publicly quoted shell company seeking to create value for our shareholders by merging with another entity with experienced management and opportunities for growth in return for shares of our common stock. No such potential merger candidate has been identified at that time of this filing. History Golden Dragon was incorporated in the State of Delaware in April 2010 as a wholly owned subsidiary of Concord Ventures, Inc. ("Concord"). Concord was a publicly quoted shell company with no assets, no operating business or other source of income and liabilities in excess of $590,000. Merger of Concord In order for Concord to re-domicile in the state of Delaware from the state of Colorado, on September 29, 2010, Concord entered into an Agreement and Plan of Merger ("the Merger Agreement") with one of its wholly owned subsidiary companies, CCVG, Inc. ("CCVG"). Under the terms of the Merger Agreement, Concord shares of common stock converted automatically to CCVG shares, without change or necessity to reissue. Also under the Merger Agreement, CCVG became the surviving company domiciled in Delaware. Reorganization into a Holding Company Structure Effective December 31, 2010, pursuant to the Delaware Holding Company formation statute, under Delaware General Corporate Law (DGCL) Section 251(g), CCVG completed an Agreement and Plan of Merger and Reorganization into a Holding Company ("the Reorganization") with CCAPS, Inc. ("CCAPS") and Golden Dragon, both wholly-owned subsidiaries of CCVG. The Reorganization provided for the merger of CCVG with and into CCAPS, with CCAPS being the surviving corporation 13 <PAGE> in that merger. Contemporaneously with CCVG's merger with and into CCAPS, the shareholders of CCVG were converted into shareholders of Golden Dragon on a one share for one share basis. As a result of this reorganization into a Holding Company structure, Golden Dragon became the surviving publicly quoted parent holding company with CCAPS, the surviving corporation of the merger between CCVG and CCAPS, becoming the sole remaining wholly-owned subsidiary of Golden Dragon. The Reorganization has been accounted for so as to reflect the fact that both CCVG and Golden Dragon were under common control at the date of the Reorganization, similar to a reverse acquisition of CCVG and its subsidiary company, CCAPS, by Golden Dragon. Sale of CCAPS On December 31, 2010, Golden Dragon entered into a Share Purchase Agreement with an unrelated third party. Under the terms of the Share Purchase Agreement, Golden Dragon sold 100% of the issued and outstanding shares of its sole remaining wholly owned subsidiary, CCAPS for $100 cash consideration, subject to its debts, and issued 25,000 restricted shares of Golden Dragon common stock, valued at $1,000, to CCAPS pursuant to the terms of the Share Purchase Agreement. At the time of the sale, CCAPS had no ongoing operations or assets and outstanding liabilities of approximately $678,000. Following the merger of CCVG with and into CCAPS, CCAPS, as the surviving corporation in that merger, retained all outstanding liabilities of CCVG in the divestiture. As a result of the sale of 100% of the issued and outstanding shares of CCAPS, Golden Dragon, the surviving publicly quoted holding company, will no longer consolidate the liabilities of CCAPS or CCVG. PLAN OF OPERATIONS General Business Plan Our plan of operations is to raise debt and, or, equity to meet our ongoing operating expenses and attempt to merge with another entity with experienced management and opportunities for growth in return for shares of our common stock to create value for our shareholders. There can be no assurance that we will successfully complete these transactions. In particular there is no assurance that any such business will be located or that any stockholder will realize any return on their shares after such a transaction. Any merger or acquisition completed by us can be expected to have a significant dilutive effect on the percentage of shares held by our current stockholders. We believe we are an insignificant participant among the firms which engage in the acquisition of business opportunities. There are many established venture capital and financial concerns that have significantly greater financial and personnel resources and technical expertise than we have. In view of our limited financial resources and limited management availability, we will continue to be at a significant competitive disadvantage compared to our competitors. 14 <PAGE> We intend to seek, investigate and, if such investigation warrants, acquire an interest in business opportunities presented to us by persons or firms which desire to seek the advantages of an issuer who has complied with the Securities Act of 1934 (the "1934 Act"). We will not restrict our search to any specific business, industry or geographical location, and we may participate in business ventures of virtually any nature. This discussion of our proposed business is purposefully general and is not meant to be restrictive of our unlimited discretion to search for and enter into potential business opportunities. We anticipate that we may be able to participate in only one potential business venture because of our lack of financial resources. We may seek a business opportunity with entities which have recently commenced operations, or that desire to utilize the public marketplace in order to raise additional capital in order to expand into new products or markets, to develop a new product or service, or for other corporate purposes. We may acquire assets and establish wholly owned subsidiaries in various businesses or acquire existing businesses as subsidiaries. We expect that the selection of a business opportunity will be complex. Due to general economic conditions, rapid technological advances being made in some industries and shortages of available capital, we believe that there are numerous firms seeking the benefits of an issuer who has complied with the 1934 Act. Such benefits may include facilitating or improving the terms on which additional equity financing may be sought, providing liquidity for incentive stock options or similar benefits to key employees, providing liquidity (subject to restrictions of applicable statutes) for all stockholders and other factors. Potentially, available business opportunities may occur in many different industries and at various stages of development, all of which will make the task of comparative investigation and analysis of such business opportunities extremely difficult and complex. We have, and will continue to have, essentially no assets to provide the owners of business opportunities. However, we will be able to offer owners of acquisition candidates the opportunity to acquire a controlling ownership interest in an issuer who has complied with the 1934 Act without incurring the cost and time required to conduct an initial public offering. The analysis of new business opportunities will be undertaken by, or under the supervision of, our Board of Directors. We intend to concentrate on identifying preliminary prospective business opportunities which may be brought to our attention through present associations of our director, professional advisors or by our stockholders. In analyzing prospective business opportunities, we will consider such matters as (i) available technical, financial and managerial resources; (ii) working capital and other financial requirements; (iii) history of operations, if any, and prospects for the future; (iv) nature of present and expected competition; (v) quality, experience and depth of management services; (vi) potential for further research, development or exploration; (vii) specific risk factors not now foreseeable but that may be anticipated to impact the proposed activities of the company; (viii) potential for growth or expansion; (ix) potential for profit; (x) public recognition and acceptance of products, services or trades; (xi) name identification; and (xii) other factors that we consider relevant. As part of our investigation of the business opportunity, we expect to meet personally with management and key personnel. To the extent possible, we intend to utilize written reports and personal investigation to evaluate the above factors. We will not acquire or merge with any company for which audited financial statements cannot be obtained within a reasonable period of time after closing of the proposed transaction. 15 <PAGE> Acquisition Opportunities In implementing a structure for a particular business acquisition, we may become a party to a merger, consolidation, reorganization, joint venture, or licensing agreement with another company or entity. We may also acquire stock or assets of an existing business. Upon consummation of a transaction, it is probable that our present management and stockholders will no longer be in control of us. In addition, our sole director may, as part of the terms of the acquisition transaction, resign and be replaced by new directors without a vote of our stockholders, or sell his stock in us. Any such sale will only be made in compliance with the securities laws of the United States and any applicable state. It is anticipated that any securities issued in any such reorganization would be issued in reliance upon exemption from registration under application federal and state securities laws. In some circumstances, as a negotiated element of the transaction, we may agree to register all or a part of such securities immediately after the transaction is consummated or at specified times thereafter. If such registration occurs, it will be undertaken by the surviving entity after it has successfully consummated a merger or acquisition and is no longer considered an inactive company. The issuance of substantial additional securities and their potential sale into any trading market which may develop in our securities may have a depressive effect on the value of our securities in the future. There is no assurance that such a trading market will develop. While the actual terms of a transaction cannot be predicted, it is expected that the parties to any business transaction will find it desirable to avoid the creation of a taxable event and thereby structure the business transaction in a so-called "tax-free" reorganization under Sections 368(a)(1) or 351 of the Internal Revenue Code (the "Code"). In order to obtain tax-free treatment under the Code, it may be necessary for the owner of the acquired business to own 80% or more of the voting stock of the surviving entity. In such event, our stockholders would retain less than 20% of the issued and outstanding shares of the surviving entity. This would result in significant dilution in the equity of our stockholders. As part of our investigation, we expect to meet personally with management and key personnel, visit and inspect material facilities, obtain independent analysis of verification of certain information provided, check references of management and key personnel, and take other reasonable investigative measures, to the extent of our limited financial resources and management expertise. The manner in which we participate in an opportunity will depend on the nature of the opportunity, the respective needs and desires of both parties, and the management of the opportunity. With respect to any merger or acquisition, and depending upon, among other things, the target company's assets and liabilities, our stockholders will in all likelihood hold a substantially lesser percentage ownership interest in us following any merger or acquisition. The percentage ownership may be subject to significant reduction in the event we acquire a target company with assets and expectations of growth. Any merger or acquisition can be expected to have a significant dilutive effect on the percentage of shares held by our stockholders. 16 <PAGE> We will participate in a business opportunity only after the negotiation and execution of appropriate written business agreements. Although the terms of such agreements cannot be predicted, generally we anticipate that such agreements will (i) require specific representations and warranties by all of the parties; (ii) specify certain events of default; (iii) detail the terms of closing and the conditions which must be satisfied by each of the parties prior to and after such closing; (iv) outline the manner of bearing costs, including costs associated with the Company's attorneys and accountants; (v) set forth remedies on defaults; and (vi) include miscellaneous other terms. As stated above, we will not acquire or merge with any entity which cannot provide independent audited financial statements within a reasonable period of time after closing of the proposed transaction. If such audited financial statements are not available at closing, or within time parameters necessary to insure our compliance within the requirements of the 1934 Act, or if the audited financial statements provided do not conform to the representations made by that business to be acquired, the definitive closing documents will provide that the proposed transaction will be voidable, at the discretion of our present management. If such transaction is voided, the definitive closing documents will also contain a provision providing for reimbursement for our costs associated with the proposed transaction. Competition We believe we are an insignificant participant among the firms which engage in the acquisition of business opportunities. There are many established venture capital and financial concerns that have significantly greater financial and personnel resources and technical expertise than we have. In view of our limited financial resources and limited management availability, we will continue to be at a significant competitive disadvantage compared to our competitors. Investment Company Act 1940 Although we will be subject to regulation under the Securities Act of 1933, as amended, and the 1934 Act, we believe we will not be subject to regulation under the Investment Company Act of 1940 (the "1940 Act") insofar as we will not be engaged in the business of investing or trading in securities. In the event we engage in business combinations that result in us holding passive investment interests in a number of entities, we could be subject to regulation under the 1940 Act. In such event, we would be required to register as an investment company and incur significant registration and compliance costs. We have obtained no formal determination from the SEC as to our status under the 1940 Act and, consequently, any violation of the 1940 Act would subject us to material adverse consequences. We believe that, currently, we are exempt under Regulation 3a-2 of the 1940 Act. Liquidity and Capital Resources At March 31, 2012, we had cash of $25, no other assets, no operating business or other source of income, outstanding liabilities totaling $135,509 and a stockholders' deficit of $135,484. In our financial statements for the fiscal years ended December 31, 2011 and 2010, the Report of the Independent Registered Public Accounting Firm includes an explanatory paragraph that describes substantial doubt about our ability to continue as a going concern. 17 <PAGE> Our unaudited financial statements for the three months ended March 31, 2012 and 2011 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. We had a working capital deficit of $135,484 and reported an accumulated deficit since Inception (January 1, 2011) of $135,584 as at March 31, 2012. It is our current intention to seek to raise debt and, or, equity financing to fund our ongoing operating expenses and attempt to create value for our shareholders by merging with another entity with experienced management and opportunities for growth in return for shares of our common stock. There is no assurance that this series of events will be satisfactorily completed. RESULTS OF OPERATIONS THREE MONTHS ENDED MARCH 31, 2012 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 2011 Revenue During the three months ended March 31, 2012 and 2011, we did not recognize any revenues and do not anticipate having revenue generating activities in the near future. General and Administrative Expenses During the three months ended March 31, 2012, we incurred $34,361 in general and administrative expenses compared to $15,477 in the three months ended March 31, 2011, an increase of $18,884. The increase was largely due to the fact that in the three months ended March 31, 2012 we incurred legal and accounting fees which we did not incur in the three months ended March 31, 2011. Interest Expense We recognized an interest expense of $1,562 during the three months ended March 31, 2012, compared to $99 during the three months ended March 31, 2011, an increase of $1,463. This interest expense relates to the interest accrued on the loans made to us by one of our directors. The increase in the amount of interest between the two periods reflects the increase in the average principal balance of the loans made to us by our director between the two periods . Profit / (Loss) before Income Tax In the three months ended March 31, 2012, we recognized a loss before income tax of $35,293 compared to a loss before income tax of $15,576 in the three months ended March 31, 2011, an increase of $19,717 due to the factors discussed above. Provision for Income Taxes No provision for income taxes was required in the three months ended March 31, 2012 or 2011 as we generated tax losses both periods. 18 <PAGE> Net Profit / (Loss) and Comprehensive Profit / (Loss) In the three months ended March 31, 2012, we recognized a net loss of $35,293 compared to net a loss of $15,576 in the three months ended March 31, 2011, an increase of $19,717 due to the factors discussed above. The comprehensive loss was identical to the net loss in both the three months ended March 31, 2012 and 2011. CASH FLOW INFORMATION FOR THE THREE MONTHS ENDED MARCH 31, 2012 COMPARED TO THE THREE MONTHS ENDED MARCH 31, 2011 At March 31, 2012, we had cash of $25, no other assets, no operating business or other source of income, outstanding liabilities totaling $135,509 and a stockholders' deficit of $135,484. In our financial statements for the fiscal years ended December 31, 2011 and 2010, the Report of the Independent Registered Public Accounting Firm includes an explanatory paragraph that describes substantial doubt about our ability to continue as a going concern. Our unaudited financial statements for the three months ended March 31, 2012 and 2011 have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. We had a working capital deficit of $135,484 and reported an accumulated deficit since Inception (January 1, 2011) of $135,584 as at March 31, 2012. It is our current intention to seek to raise debt and, or, equity financing to fund our ongoing operating expenses and attempt to create value for our shareholders by merging with another entity with experienced management and opportunities for growth in return for shares of our common stock. There is no assurance that this series of events will be satisfactorily completed. During the three months ended March 31, 2012, we did not have a bank account, although we did hold a balance of $100 in cash during the three months ended March 31, 2011 arising from the proceeds on the sale of our subsidiary company, CCAPS. Consequently, there were no movements in cash flow in the three months ended March 31, 2011. Similarly there were no movements in cash flow in the three months ended March 31, 2012 as all our costs we paid for directly by Mr. Cutler, an officer, director and shareholder of the Company. Net cash used in operations for the three months ended March 31, 2012 was $5,600 compared to $0 in the three months ended March 31, 2011, an increase of $5,600. In the three months ended March 31, 2012, our net losses were $35,923, which we partially offset by a $15,000 non-cash item relating to compensatory loan increases and by a net positive movement of $15,324 in our accounts payable and accrued expenses. This does not represent an actual outflow of cash on our part. 19 <PAGE> In the three months ended March 31, 2011, our net losses were $15,576, which were offset by a $15,000 non-cash item relating to compensatory loan increases and by a net positive movement of $576 in our accounts payable and accrued expenses. This does not represent an actual outflow of cash on our part. No cash was provided by, or used in, investing activities during the three months ended March 31, 2012 and 2011. During the three months ended March 31, 2012, the Company received $5,600 from its financing activities by way of loan from a related party compared to $0 in the three months ended March 31, 2011. This increase in the related party during the three months ended March 31, 2012 was a result of the payment of liabilities and expenses on our behalf by a director of the Company. ITEM 3. QUANTATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK. As a "smaller reporting company" as defined by Item 10 of Regulation S-K, the Company is not required to provide information required by this Item. ITEM 4. CONTROLS AND PROCEDURES Disclosures Controls and Procedures We have adopted and maintain disclosure controls and procedures (as such term is defined in Rules 13a 15(e) under the Securities Exchange Act of 1934, as amended the "Exchange Act")) that are designed to ensure that information required to be disclosed in our reports under the Exchange Act, is recorded, processed, summarized and reported within the time periods required under the SEC's rules and forms and that the information is gathered and communicated to our Chief Executive Officer and Principal Financial Officer, as appropriate, to allow for timely decisions regarding required disclosure. As required by SEC Rule 15d-15(b), our Chief Executive Officer and Principal Financial Officer carried out an evaluation under the supervision and with the participation of our management, of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rule 15d-14 as of the end of the period covered by this report. Based on the foregoing evaluation, our Chief Executive Officer and Principal Financial Officer have concluded that our disclosure controls and procedures are effective in timely alerting them to material information required to be included in our periodic SEC filings and to ensure that information required to be disclosed in our periodic SEC filings is accumulated and communicated to our management, including our Chief Executive Officer and Principal Financial Officer, to allow timely decisions regarding required disclosure. There was no change in our internal control over financial reporting that occurred during the fiscal quarter ended March 31, 2012, that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. 20 <PAGE> PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS We were not subject to any legal proceedings during the three months ended March 31, 2012 or 2011 and, to the best of our knowledge, no legal proceedings are pending or threatened. ITEM 2. CHANGES IN SECURITIES There were no changes in our securities in the three months ended March 31, 2012. ITEM 3. DEFAULTS UPON SENIOR SECURITIES None. ITEM 4. MINE SAFETY DISCLOSURES Not applicable. ITEM 5. OTHER INFORMATION None. ITEM 6. EXHIBITS Exhibits. The following is a complete list of exhibits filed as part of this Form 10-Q. Exhibit numbers correspond to the numbers in the Exhibit Table of Item 601 of Regulation S-K. Exhibit 31.1 Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act Exhibit 32.1 Certification of Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act. Exhibit 101.INS XBRL Instance Document(1) Exhibit 101.SCH XBRL Taxonomy Extension Schema Document(1) Exhibit 101.CAL XBRL Taxonomy Extension Calculation Linkbase Document(1) Exhibit 101.DEF XBRL Taxonomy Extension Definition Linkbase Document(1) Exhibit 101.LAB XBRL Taxonomy Extension Label Linkbase Document(1) Exhibit 101.PRE XBRL Taxonomy Extension Presentation Linkbase Document(1) (1) Pursuant to Rule 406T of Regulation S-T, this interactive data file is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act of 1933, is deemed not filed for purposes of section 18 of the Securities Exchange Act of 1934, and otherwise is not subject to liability under these sections. 21 <PAGE> SIGNATURES Pursuant to the requirements of Section 12 of the Securities and Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. GOLDEN DRAGON HOLDING CO. Date: May 4, 2012 By: /s/ DAVID J. CUTLER ----------------------------- David J Cutler Chief Executive Officer & Chief Financial Officer 22

XOTC:GDHC Quarterly Report 10-Q Filling

XOTC:GDHC Stock - Get Quarterly Report SEC Filing of XOTC:GDHC stocks, including company profile, shares outstanding, strategy, business segments, operations, officers, consolidated financial statements, financial notes and ownership information.

XOTC:GDHC Quarterly Report 10-Q Filing - 3/31/2012
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