T
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QUARTERLY
REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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£
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Nevada
|
98-0195748
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification Number)
|
1200
G Street, NW, Suite 800
Washington,
District of Columbia
|
20005
(Zip
Code)
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(Address
of principal executive offices)
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Large
accelerated filer
|
£
|
Accelerated
filer
|
£
|
||
Non-accelerated
filer (Do not check if a smaller reporting company)
|
£
|
Smaller
reporting company
|
T
|
PART
I FINANCIAL INFORMATION
|
||
Item
1.
|
Financial
Statements (Unaudited).
|
|
3
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||
4
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||
5
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||
7
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||
8
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||
Item
2.
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15
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Item 4T.
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20
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PART
II OTHER INFORMATION
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||
Item
1.
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21
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|
Item
2.
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21
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Item
3.
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21
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Item
4.
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21
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Item
5.
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21
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Item
6.
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21
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Certifications
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December 31,
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March 31,
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|||||||
2008
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2008
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|||||||
ASSETS
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||||||||
Current
assets
|
||||||||
Cash
and cash equivalents
|
$ | 1,407,476 | $ | 797,725 | ||||
Other current assets
|
3,023 | - | ||||||
Total
current assets
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1,410,499 | 797,725 | ||||||
Total assets
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$ | 1,410,499 | $ | 797,725 | ||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||
LIABILITIES
|
||||||||
Current
liabilities
|
||||||||
Accounts
payable
|
$ | 36,784 | $ | - | ||||
Accrued
liabilities
|
37,335 | 83,750 | ||||||
Accrued management fees - related party (Note
9)
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- | 162,945 | ||||||
Total current liabilities
|
74,119 | 246,695 | ||||||
Total liabilities
|
74,119 | 246,695 | ||||||
Commitments
and Contingencies (Note 5)
|
||||||||
STOCKHOLDERS'
EQUITY
|
||||||||
Stockholders'
equity
|
||||||||
Preferred
stock: $0.01 par value; 1,000,000 shares authorized, no shares issued and
outstanding
|
- | - | ||||||
Common
stock: $0.001 par value; 100,000,000 shares authorized, 42,249,166 and
36,932,500 shares issued and outstanding
|
42,249 | 36,933 | ||||||
Additional
paid-in capital
|
4,489,164 | 1,353,596 | ||||||
Common
stock issuable
|
- | 1,259,000 | ||||||
Deficit accumulated during the development
stage
|
(3,195,033 | ) | (2,098,499 | ) | ||||
Total stockholders' equity
|
1,336,380 | 551,030 | ||||||
Total liabilities and stockholders'
equity
|
$ | 1,410,499 | $ | 797,725 |
Three
Months Ended December 31,
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Nine
Months Ended December 31,
|
From
Inception (November 6, 1998) to December 31,
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||||||||||||||||||
2008
|
2007
|
2008
|
2007
|
2008
|
||||||||||||||||
Revenue
|
$ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||
Operating
expenses
|
||||||||||||||||||||
Investor
relations
|
5,700 | 227,000 | 547,200 | 227,000 | 774,200 | |||||||||||||||
Director
fees - related party
|
15,726 | 2,500 | 20,926 | 4,700 | 237,194 | |||||||||||||||
Research
and development
|
35,480 | 29,835 | 105,214 | 29,835 | 194,719 | |||||||||||||||
Professional
fees
|
39,718 | 5,142 | 107,142 | 14,719 | 204,428 | |||||||||||||||
Salaries
and benefits
|
27,940 | - | 178,984 | - | 1,113,987 | |||||||||||||||
Website
fees - related party
|
- | - | - | - | 48,050 | |||||||||||||||
Write
off of oil, gas and mineral leases
|
- | - | - | - | 112,000 | |||||||||||||||
Other operating expenses
|
21,833 | 5,799 | 145,099 | 12,178 | 461,401 | |||||||||||||||
Total
operating expenses
|
146,397 | 270,276 | 1,104,565 | 288,432 | 3,145,979 | |||||||||||||||
Operating
loss
|
(146,397 | ) | (270,276 | ) | (1,104,565 | ) | (288,432 | ) | (3,145,979 | ) | ||||||||||
Other
income (expense)
|
||||||||||||||||||||
Interest
income
|
2,188 | 1,961 | 17,769 | 2,337 | 34,712 | |||||||||||||||
Interest
expense
|
- | (8,813 | ) | (195 | ) | (12,812 | ) | (77,480 | ) | |||||||||||
Loss
on disposal of fixed assets
|
- | - | (9,800 | ) | - | (9,800 | ) | |||||||||||||
Foreign exchange gain
(loss)
|
- | (80 | ) | 257 | 69 | 3,514 | ||||||||||||||
Total
other income (expense)
|
2,188 | (6,932 | ) | 8,031 | (10,406 | ) | (49,054 | ) | ||||||||||||
Net loss
|
$ | (144,209 | ) | $ | (277,208 | ) | $ | (1,096,534 | ) | $ | (298,838 | ) | $ | (3,195,033 | ) | |||||
Net loss per share -
basic and
diluted
|
$ | (0.00 | ) | $ | (0.01 | ) | (0.03 | ) | $ | (0.01 | ) | |||||||||
Weighted average number of
common shares
outstanding - basic and
diluted
|
42,249,166 | 36,932,500 | 41,633,772 | 36,932,500 |
Common
Stock
|
Additional
|
Common
Stock
|
Deficit
Accumulated During the Development
|
Total Stockholders'
|
||||||||||||||||||||
Shares
|
Amount
|
Paid-in Capital
|
Issuable
|
Stage
|
Equity (Deficit)
|
|||||||||||||||||||
Inception,
November 6, 1998
|
- | $ | - | $ | - | $ | - | $ | - | $ | - | |||||||||||||
Common
stock issued at $0.001 per share to a related party for management
services
|
20,000,000 | 20,000 | (15,000 | ) | - | - | 5,000 | |||||||||||||||||
Common
stock issued for cash at $0.25 per share fiscal year ended March 31,
1999
|
1,360,000 | 1,360 | 83,640 | - | - | 85,000 | ||||||||||||||||||
Loss,
inception (November 6, 1998) to March 31, 1999
|
- | - | - | - | (7,470 | ) | (7,470 | ) | ||||||||||||||||
Balance,
March 31, 1999
|
21,360,000 | 21,360 | 68,640 | - | (7,470 | ) | 82,530 | |||||||||||||||||
Loss,
year ended March 31, 2000
|
- | - | - | - | (16,185 | ) | (16,185 | ) | ||||||||||||||||
Balance,
March 31, 2000
|
21,360,000 | 21,360 | 68,640 | - | (23,655 | ) | 66,345 | |||||||||||||||||
Loss,
year ended March 31, 2001
|
- | - | - | - | (171,793 | ) | (171,793 | ) | ||||||||||||||||
Balance,
March 31, 2001
|
21,360,000 | 21,360 | 68,640 | - | (195,448 | ) | (105,448 | ) | ||||||||||||||||
Common
stock issued for cash at $0.10 per share, October 17, 2001
|
10,000,000 | 10,000 | 240,000 | - | - | 250,000 | ||||||||||||||||||
Loss,
year ended March 31, 2002
|
- | - | - | - | (144,541 | ) | (144,541 | ) | ||||||||||||||||
Balance,
March 31, 2002
|
31,360,000 | 31,360 | 308,640 | - | (339,989 | ) | 11 | |||||||||||||||||
Common
stock issued to a related party for services rendered at $0.08 per share,
August 5, 2002
|
2,402,500 | 2,403 | 45,647 | - | - | 48,050 | ||||||||||||||||||
Common
stock issued to a related party for services rendered at $0.08 per share,
August 5, 2002
|
1,200,000 | 1,200 | 22,800 | - | - | 24,000 | ||||||||||||||||||
Cancellation
of previously issued common stock, February 4, 2003
|
(1,200,000 | ) | (1,200 | ) | (22,800 | ) | - | - | (24,000 | ) | ||||||||||||||
Loss,
year ended March 31, 2003
|
- | - | - | - | (149,933 | ) | (149,933 | ) | ||||||||||||||||
Balance,
March 31, 2003
|
33,762,500 | 33,763 | 354,287 | - | (489,922 | ) | (101,872 | ) | ||||||||||||||||
Loss,
year ended March 31, 2004
|
- | - | - | - | (70,132 | ) | (70,132 | ) | ||||||||||||||||
Balance,
March 31, 2004
|
33,762,500 | 33,763 | 354,287 | - | (560,054 | ) | (172,004 | ) | ||||||||||||||||
Loss,
year ended March 31, 2005
|
- | - | - | - | (59,494 | ) | (59,494 | ) | ||||||||||||||||
Common
Stock
|
Additional
|
Common
Stock
|
Deficit
Accumulated During the Development
|
Total
Stockholders'
|
||||||||||||||||||||
Shares
|
Amount
|
Paid-in Capital
|
Issuable
|
Stage
|
Equity (Deficit)
|
|||||||||||||||||||
Balance,
March 31, 2005
|
33,762,500 | 33,763 | 354,287 | - | (619,548 | ) | (231,498 | ) | ||||||||||||||||
Common
stock issued upon exercise of warrants, at $0.05 per
share, June 9, 2005& June 30, 2005
|
3,120,000 | 3,120 | 152,880 | - | - | 156,000 | ||||||||||||||||||
Common
stock issued upon exercise of stock option, at $0.13 per share, October 7,
2005
|
50,000 | 50 | 6,450 | - | - | 6,500 | ||||||||||||||||||
Stock
based compensation expense
|
- | - | 785,536 | - | - | 785,536 | ||||||||||||||||||
Loss,
year ended March 31, 2006
|
- | - | - | - | (842,155 | ) | (842,155 | ) | ||||||||||||||||
Balance,
March 31, 2006
|
36,932,500 | 36,933 | 1,299,153 | - | (1,461,703 | ) | (125,617 | ) | ||||||||||||||||
Stock
based compensation expense
|
- | - | 54,443 | - | - | 54,443 | ||||||||||||||||||
Loss,
year ended March 31, 2007
|
- | - | - | - | (224,862 | ) | (224,862 | ) | ||||||||||||||||
Balance,
March 31, 2007
|
36,932,500 | 36,933 | 1,353,596 | - | (1,686,565 | ) | (296,036 | ) | ||||||||||||||||
Common
stock issuable in March 2008
|
- | - | - | 1,259,000 | - | 1,259,000 | ||||||||||||||||||
Loss,
year ended March 31, 2008
|
- | - | - | - | (411,934 | ) | (411,934 | ) | ||||||||||||||||
Balance,
March 31, 2008
|
36,932,500 | 36,933 | 1,353,596 | 1,259,000 | (2,098,499 | ) | 551,030 | |||||||||||||||||
Common
stock and warrants issued for cash and placement fees in April 2008,
net
|
4,100,000 | 4,100 | 2,395,900 | (1,259,000 | ) | - | 1,141,000 | |||||||||||||||||
Stock
based compensation expense
|
- | - | 10,884 | - | - | 10,884 | ||||||||||||||||||
Common
stock issued upon exercise of warrants, at $0.60 per share in May
2008
|
1,216,666 | 1,216 | 728,784 | - | - | 730,000 | ||||||||||||||||||
Loss,
nine months ended December 31, 2008
|
- | - | - | - | (1,096,534 | ) | (1,096,534 | ) | ||||||||||||||||
Balance, December 31, 2008
|
42,249,166 | $ | 42,249 | $ | 4,489,164 | $ | - | $ | (3,195,033 | ) | $ | 1,336,380 |
Nine
Months Ended December 31,
|
From
Inception (November 6, 1998) to December 31,
|
|||||||||||
2008
|
2007
|
2008
|
||||||||||
Cash
flows from operating activities
|
||||||||||||
Net
loss
|
$ | (1,096,534 | ) | $ | (298,838 | ) | $ | (3,195,033 | ) | |||
Adjustments
to reconcile net loss to net cash used in operating
activities:
|
||||||||||||
Depreciation
|
595 | 219 | 6,268 | |||||||||
Common
stock issued for services
|
- | - | 53,050 | |||||||||
Stock
based compensation expense
|
10,884 | - | 850,863 | |||||||||
Loss
on disposal of fixed assets
|
9,800 | - | 9,800 | |||||||||
Write
off of oil, gas and mineral leases
|
- | - | 112,000 | |||||||||
Change
in operating assets and liabilities:
|
||||||||||||
Decrease
(increase) in other current assets
|
(3,023 | ) | 27 | (3,023 | ) | |||||||
Increase
(decrease) in accounts payable
|
36,784 | (169 | ) | 36,784 | ||||||||
Increase
(decrease) in accrued liabilities
|
(46,415 | ) | 850 | 37,335 | ||||||||
Decrease
in accrued management fees -related party
|
(162,945 | ) | - | - | ||||||||
Increase in accrued interest -related
party
|
- | 12,812 | - | |||||||||
Net cash used in operating
activities
|
(1,250,854 | ) | (285,099 | ) | (2,091,956 | ) | ||||||
Cash
flows from investing activities
|
||||||||||||
Purchase
of property and equipment
|
(10,395 | ) | - | (16,068 | ) | |||||||
Purchase of oil, gas and mineral
leases
|
- | - | (112,000 | ) | ||||||||
Net cash used in investing
activities
|
(10,395 | ) | - | (128,068 | ) | |||||||
Cash
flows from financing activities
|
||||||||||||
Proceeds
from issuance of common stock and warrants
|
1,871,000 | - | 3,627,500 | |||||||||
Proceeds
from loans from related party
|
- | 300,000 | 510,000 | |||||||||
Repayment of loans from related
party
|
- | - | (510,000 | ) | ||||||||
Net cash provided by financing
activities
|
1,871,000 | 300,000 | 3,627,500 | |||||||||
Increase
in cash and cash equivalents
|
609,751 | 14,901 | 1,407,476 | |||||||||
Cash
and cash equivalents at beginning of period
|
797,725 | 23,531 | - | |||||||||
Cash and cash equivalents at end of
period
|
$ | 1,407,476 | $ | 38,432 | $ | 1,407,476 | ||||||
Supplemental
disclosure of cash flow information:
|
||||||||||||
Interest
paid in cash
|
$ | 195 | $ | - | $ | 77,480 | ||||||
Income tax paid in cash
|
$ | - | $ | - | $ | - | ||||||
Non-cash
investing and financing activities:
|
||||||||||||
Issuance of common stock and warrants as
commission
|
$ | 60,000 | $ | - | $ | 60,000 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
December 31,
|
December 31,
|
|||||||||||||||
2008
|
2007
|
2008
|
2007
|
|||||||||||||
Numerator
- net loss
|
$ | (144,209 | ) | $ | (277,208 | ) | $ | (1,096,534 | ) | $ | (298,838 | ) | ||||
Denominator
- weighted average number of common shares outstanding
|
42,249,166 | 36,932,500 | 41,633,772 | 36,932,500 | ||||||||||||
Basic
and diluted net loss per common share
|
$ | (0.00 | ) | $ | (0.01 | ) | $ | (0.03 | ) | $ | (0.01 | ) |
Number
of Options
|
Weighted
Average Exercise
Price
|
Weighted
Average Remaining Contractual
Term
|
Aggregate
Intrinsic Value
|
||||||||||
Outstanding
at March 31, 2008
|
7,950,000 | $ | 0.13 | ||||||||||
Granted
|
150,000 | 0.69 | |||||||||||
Outstanding
at December 31, 2008
|
8,100,000 | $ | 0.14 |
6.50
years
|
$ | 318,000 | |||||||
Exercisable
at December 31, 2008
|
7,950,000 | $ | 0.13 |
6.44
years
|
$ | 318,000 | |||||||
Available
for grant at December 31, 2008
|
11,850,000 |
Stock Options Outstanding
|
Stock Options Exercisable
|
|||||||||||||||||||||||
Exercise
Prices
|
Number
of Options Outstanding
|
Weighted
Average Exercise Price
|
Weighted
Average Remaining Contractual Life
(Years)
|
Number
of Options Exercisable
|
Weighted
Average Exercise Price
|
Weighted
Average Remaining Contractual Life
(Years)
|
||||||||||||||||||
$ 0.13
|
7,950,000 | $ | 0.13 | 6.44 | 7,950,000 | $ | 0.13 | 6.44 | ||||||||||||||||
0.40
|
50,000 | 0.40 | 9.79 | - | - | - | ||||||||||||||||||
0.83
|
100,000 | 0.83 | 9.70 | - | - | - | ||||||||||||||||||
$ 0.13 -
$ 0.83
|
8,100,000 | $ | 0.14 | 6.50 | 7,950,000 | $ | 0.13 | 6.44 |
Risk-free
interest rate
|
2.13%
|
Expected
life
|
2.0
years
|
Expected
volatility
|
107.9%
|
Dividend
per share
|
$0.00
|
Number
of Warrants
Outstanding
|
Weighted Average Exercise Price
|
|||||||
Outstanding
at March 31, 2008
|
6,880,000 | $ | 0.05 | |||||
Issued
|
4,100,000 | 0.60 | ||||||
Expired
|
(6,880,000 | ) | 0.05 | |||||
Exercised
|
(1,216,666 | ) | 0.60 | |||||
Outstanding
at December 31, 2008
|
2,883,334 | $ | 0.60 |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||||||||||
December 31,
|
Percentage
|
December 31,
|
Percentage
|
|||||||||||||||||||||
2008
|
2007
|
Change
|
2008
|
2007
|
Change
|
|||||||||||||||||||
Operating
expenses
|
||||||||||||||||||||||||
Investor
relations
|
$ | 5,700 | $ | 227,000 | (97 | )% | $ | 547,200 | $ | 227,000 | 141 | % | ||||||||||||
Director
fees - related party
|
15,726 | 2,500 | 529 | 20,926 | 4,700 | 345 | ||||||||||||||||||
Research
and development
|
35,480 | 29,835 | 19 | 105,214 | 29,835 | 253 | ||||||||||||||||||
Professional
fees
|
39,718 | 5,142 | 672 | 107,142 | 14,719 | 628 | ||||||||||||||||||
Salaries
and benefits
|
27,940 | - | * | 178,984 | - | * | ||||||||||||||||||
Website
fees - related party
|
- | - | * | - | - | * | ||||||||||||||||||
Write
off of oil, gas and mineral leases
|
- | - | * | - | - | * | ||||||||||||||||||
Other
operating expenses
|
21,833 | 5,799 | 276 | 145,099 | 12,178 | 1,091 | ||||||||||||||||||
Total
operating expenses
|
$ | 146,397 | $ | 270,276 | (46 | )% | $ | 1,104,565 | $ | 288,432 | 283 | % |
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||||||||||
December 31,
|
Percentage
|
December 31,
|
Percentage
|
|||||||||||||||||||||
2008
|
2007
|
Change
|
2008
|
2007
|
Change
|
|||||||||||||||||||
Other
income (expense)
|
||||||||||||||||||||||||
Interest
income
|
$ | 2,188 | $ | 1,961 | 12 | % | $ | 17,769 | $ | 2,337 | 660 | % | ||||||||||||
Interest
expense
|
- | (8,813 | ) | * | (195 | ) | (12,812 | ) | (98 | ) | ||||||||||||||
Loss
on disposal of fixed assets
|
- | - | * | (9,800 | ) | - | * | |||||||||||||||||
Foreign
exchange gain (loss)
|
- | (80 | ) | * | 257 | 69 | 272 | |||||||||||||||||
Total
other income (expense)
|
$ | 2,188 | $ | (6,932 | ) | * | % | $ | 8,031 | $ | (10,406 | ) | * | % |
Certification
of the Chief Executive Officer and Chief Financial Officer pursuant to
Rule 13a-14(a)
|
Certification
by the Chief Executive Officer and Chief Financial Officer pursuant to 18
U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act
of 2002
|
International Energy,
Inc.
|
|
(Registrant)
|
Signature
|
Title
|
Date
|
/s/
Charles
Bell
|
President,
Chief Executive Officer,
|
|
Charles
Bell
|
Chief
Financial Officer, Director
|
February
12,
2009
|