UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C.
20549
FORM 10
Amendment No.
2
GENERAL FORM FOR
REGISTRATION OF SECURITIES
Pursuant to Section
12(b) or (g) of The Securities Exchange Act of 1934
PURTHANOL RESOURCES
LIMITED
(Exact name of registrant
as specified in its charter)
| |
Delaware |
|
98-022951 |
|
| |
(State or other jurisdiction
of incorporation or organization) |
|
(I.R.S. Employer Identification
No.) |
|
2711 Centreville
Rd Suite 400
Wilmington,
Delaware 19808
(Address of principal
executive offices)
(866) 351-4141
Registrant’s
telephone number, including area code
Securities to be registered
under Section 12(b) of the Act: None
Securities to be registered
under Section 12(g) of the Exchange Act:
| |
Title
of each class to be
so registered |
|
Name
of Exchange on which each
class is to be registered |
|
| |
|
|
|
|
| |
Common
Stock, $.001 |
|
N/A |
|
| |
|
|
|
|
Indicate by check mark whether
the registrant is a large accelerated filer, 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. (Check one):
| Large accelerated filer [ ] |
Accelerated filer [ ] |
| |
|
| Non-accelerated filer [ ] |
Smaller reporting company [X] |
| (Do
not check if a smaller reporting company) |
|
EXPLANATORY
NOTE
This registration
statement on Form 10 (the “Registration Statement”) is being filed by Purthanol Resources Limited (the “Company”
or “Registrant”) in order to register common stock of the Company voluntarily pursuant to Section 12(g) under the Securities
Exchange Act of 1934, as amended (the “Exchange Act.”) The Company is not required to file this Registration Statement pursuant
to the Securities Act of 1933, as amended (the “Securities Act.”)
Once this registration
statement is deemed effective, we will be subject to the requirements of Regulation 13A under the Exchange Act, which will require us
to file annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, and we will be required to comply
with all other obligations of the Exchange Act applicable to issuers filing registration statements pursuant to Section 12(g) of the
Exchange Act. The registration statement, including exhibits, may be inspected without charge at the SEC’s principal office in
Washington, D.C., and copies of all or any part thereof may be obtained from the Public Reference Section, Securities and Exchange Commission,
100 F Street, NW, Washington, D.C. 20549 upon payment of the prescribed fees. You may obtain information on the operation of the Public
Reference Room by calling the SEC at l.800.SEC.0330. The SEC maintains a Website that contains reports, proxy and information statements
and other information regarding registrants that file electronically with it. The address of the SEC’s Website is http://sec.report.
INFORMATION
REQUIRED IN REGISTRATION STATEMENT
Item 1. Description of Business
Our Company
Purthanol Resources
Limited, a Delaware corporation (“Purthanol”, the “Company, “we”, “us” or “our”)
is a public shell company seeking to create value for its 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
do not propose to restrict our search for a business opportunity to any industry or geographical area and may, therefore, engage in essentially
any business in any industry. We have unrestricted discretion in seeking and participating in a business opportunity, subject to the
availability of such opportunities, economic conditions, and other factors.
The
selection of a business opportunity in which to participate is complex and risky. Additionally, we have only limited resources and may
find it difficult to locate good opportunities. There can be no assurance that we will be able to identify and acquire any business opportunity
which will ultimately prove to be beneficial to us and our shareholders. We will select any potential business opportunity based on our
management’s best business judgment
Our
activities are subject to several significant risks, which arise primarily as a result of the fact that we have no specific business
and may acquire or participate in a business opportunity based on the decision of management, which potentially could act without the
consent, vote, or approval of our shareholders. The risks faced by us are further increased because of its lack of resources and our
inability to provide a prospective business opportunity with significant capital.
History of the
Company
We were organized
and incorporated in the State of Delaware on November 2, 1998, under the name Sword Comp-Soft Corp. as an (ASP) Application Service Provider,
specializing in the E-Healthcare sector, which said business was sold in 2003.
Following the Company’s
attempts to enter the vehicle tracking business were unsuccessful, the Company entered into a provisional agreement with Advance Fluid
Technologies, Inc., a Delaware Corporation via a letter of Intent, to acquire assets from the latter corporation, pursuant to entering
the bottled water, more specifically the oxygenated bottled water market.
On August 26, 2005,
the Company finalized this agreement with Advanced Fluid Technologies to purchase their to be patented oxygenation unit and all technical
know-how, intellectual properties, methodologies and all information pertaining to the following: the fixation of the oxygen molecule
to water or any other fluid and/or to the building and maintenance of the oxygenation unit. Furthermore, all trademarks for the name
AquaBoost Oxygenated Water, currently no longer in force in the U.S., Canada, and Mexico and the right to use and register said name
globally, were transferred to the Company are worthless. Also, included was a distribution contract between Advanced Fluid Technologies
and ImporTadora Comercializadora Maple S.A. of Mexico, which Advanced Fluid transferred to the Company which has been rendered null.
On April 4, 2006,
we filed a Certificate of Amendment in the state of Delaware changing our name to Global Biotech Corp. (“Global”).
On August 15, 2007,
Global acquired from Advanced Fluid Technologies Inc. a Delaware corporation, assets pursuant to entering the bottled water, more specifically
the oxygenated bottled water, market. The corporation has abandoned this business segment however, the Company ceased all operations
on November 30, 2015. The Company is now concentrating its efforts on future unspecified acquisitions.
On October 22, 2013,
the Company filed a Certificate of Amendment with the state of Delaware changing its name to Purthanol Resources Limited.
Item 1A. Risk
Factors.
Risks Related
to Our Company
We are a recently
re-organized development stage company but have not yet commenced operations in our business. We expect to incur operating losses for
the foreseeable future.
We were incorporated
on November 2, 1998, and ceased all operations November 30, 2015, to date have been involved primarily in re-organization activities.
We have not yet commenced further business operations. Further, we have not yet fully developed our business plan, or our management
team. Accordingly, we have no way to evaluate the likelihood that our business will be successful. Since inception we have earned $944,811
in revenues and has an accumulated deficit of $4,167,325.
The likelihood
of future success must be considered in light of the problems, expenses, difficulties, complications, and delays encountered in connection
with the operations that we may to undertake in the future. These potential problems include, but are not limited to, unanticipated problems
relating to the market acceptance of acquisition of business or assets we have yet to acquire, developing relationship with suppliers,
distribution and challenges, and additional costs and expenses that may exceed current estimates. Prior to time that we are ready to
market and distribute a prospective product line, we anticipate that the Company will incur increased operating expenses without realizing
any revenues. We expect to incur significant losses into the foreseeable future. We recognize that if the effectiveness of our business
plan is not forthcoming, we will not be able to continue business operations. There is no operating history upon which to base any assumption
as to the likelihood that we will prove successful, and it is doubtful that we will generate any operating revenues or ever achieve profitable
operations. If we are unsuccessful in addressing these risks, our yet to be determined acquisition of business or assets and subsequent
business operations will most likely fail.
We have
incurred net losses since our inception and expect losses to continue.
We have not
been profitable since our inception. Since our inception on November 2, 1998, to November 30, 2020, we had an accumulated deficit of
($4,167,325. There is a risk that we may never bring our yet to be determined acquisition of business or assets and subsequent business
operations to the marketplace. In addition, there is no guarantee and that our subsequent operations will be profitable in the future,
and you could lose your entire investment.
We may
not be able to continue as a going concern if we do not obtain additional financing.
Our independent
accountant’s audit report states that there is substantial doubt about our ability to continue as a going concern. We have incurred
only losses since our inception raising substantial doubt about our ability to continue as a going concern. Therefore, our ability to
continue as a going concern is highly dependent upon obtaining additional financing for our planned operations. There can be no assurance
that we will be able to raise any additional funds, or we are able to raise additional funds, that such funds will be in the amounts
required or on terms favourable to us.
Our current
president and chief executive officer has other business interests.
Leonard Stella,
our President and Chief Executive Officer, currently devotes approximately eight hours per week providing management services to us.
While he presently possesses adequate time to attend to our interest, it is possible that the demands on him from other obligations could
increase, with the result that he would no longer be able to devote sufficient time to the management of our business. The loss of Mr.
Stella to our company could negatively impact our business development.
We have
requirements for and there is an uncertainty of access to additional capital.
We will continue
to incur development costs to fund the acquisition of business or assets and plan to operate any subsequent business operations from
working capital, equity subscriptions and shareholders’ loans. Ultimately, our ability to continue our business operations depends
in part on our ability to obtain financing through, debt financing, equity financing, or commence operations and generate revenues or
some combination of these or other means. There can be no assurance that we will be able to obtain any such financing.
We have
no cash flow from operations and depend on equity financing and shareholder loans for our operations.
We have no
current operations do not generate any cash flow. Our current operating funds are less than necessary to complete our intended plan of
operations real and/or intangible property. We will need additional funds. Our failure to obtain such additional financing could result
in delay or indefinite postponement of further of any subsequent operations which would have a material adverse effect on our business.
We lack
an operating history.
We were incorporated
on November 2, 1998, and we have ceased operations on November 30, 2015. Since November 30, 2015, we have no operating history upon which
an evaluation of our future success or failure can be made.
We expect
to incur losses in the future.
Until the
acquisition of business or assets and subsequent business operations, we expect to incur operating losses in future periods because we
will be incurring expenses and not generating revenues. We cannot guarantee that we will be successful in generating revenues in the
future. Failure to generate revenues will cause us to go out of business.
Our operating
results may prove unpredictable.
Our operating
results are likely to fluctuate significantly in the future due to a variety of factors, many of which we have no control over. Factors
that may cause our operating results to fluctuate significantly include: our ability to generate enough working capital from future equity
sales; the level of commercial acceptance by the public of any services/products we may develop; fluctuations in the demands of any products;
the amount and timing operating costs and capital expenditures relating to expansion of subsequent business, operations, infrastructure,
and general economic conditions. If realized, any of these factors could have a material effect on our business, financial condition,
and operating results.
Risks associated
with this Registration Statement
Our stock
will be a penny stock. Trading of our stock may be restricted by the SEC’s penny stock regulations and FINRA’s sales practice
requirements, which may limit a stockholder’s ability to buy and sell our stock.
Our common
stock will be subject to the “Penny Stock” Rules of the SEC, which will make transactions in our common stock cumbersome
and may reduce the value of an investment in our common stock. We are not registered on any market or public stock exchange. There is
presently no demand for our common stock and to public market exists for the shares being offered in this prospectus. We plan to contact
a market maker immediately following the completion of the offering and apply to have our shares of common stock quoted on the OTC Markets
Pink (“OTC”). The OTC is a quotation service that displays real-time quotes, last sale prices and volume information in the
over-the-counter securities. The OTC is not an issuer listing service, market or exchange. Although the OTC does not have any listing
requirements per say, to be eligible for quotation on the OTC, issuers must remain correct in their filings with the SEC or applicable
regulatory authority. Market makers are not permitted to begin quotation of a security whose issue does not meet the filing requirements.
Securities already quoted on the OTC that become delinquent in their required filings may be removed following a 30-to-60-day grace period
if they do not make their required filings during that time. As of the date of this filing, there have been no discussions or understandings
between the Company and anyone acting on our behalf, with any market maker regarding participation in a future trading market four our
securities.
The Company’s
management could issue additional shares.
The Company
has 260,000,000 authorized common shares, of which 244,038,890 are currently issued and outstanding. The Company’s management could,
without the consent of the existing shareholders, issue substantially more shares, causing a further dilution in the equity portion of
the Company’s current shareholders. Additionally, large share issuances would generally have a negative impact on the Company’s
share price.
We do not
anticipate paying dividends.
We do not
anticipate paying dividends on our common stock in the foreseeable future, but plan rather to retain earnings, if any for the operation,
growth, and expansion of our subsequent business. Because the Company does not anticipate paying cash dividends in the foreseeable future
which may lower expected returns for investors, and as such our stockholders will not be able to receive a return on their investment
unless they sell their shares of common stock.
Risks Related
to Investing in Our Company
We lack
an operating history.
We were incorporated
on November 2, 1998, and we have ceased operations on November 30, 2015. Since November 30, 2015, we have no operating history upon which
an evaluation of our future success or failure can be made. Our ability to achieve and maintain profitability and positive cash flow
is dependent upon the Company is a development stage emerging growth company that seeks to becoming a multi-industry technology-based
enterprise primarily through merger and acquisition of business assets and through subsequent business operations, our ability to attract
customers and to generate revenues through our sales.
We expect
to incur losses in the future.
Based upon
current plans, we expect to incur operating losses in future periods because we will be incurring expenses and not generating revenues.
We cannot guarantee that we will be successful in generating revenues in the future. Failure to generate revenues will cause us to go
out of business.
Our operating
results may prove unpredictable.
Our operating
results are likely to fluctuate significantly in the future due to a variety of factors, many of which we have no control over. Factors
that may cause our operating results to fluctuate significantly include: our ability to generate enough working capital from future equity
sales; the level of commercial acceptance by the public of our services/products; fluctuations in the demands of products; the amount
and timing operating costs and capital expenditures relating to expansion of our subsequent business, operations, infrastructure, and
general economic conditions. If realized, any of these factors could have a material effect on our business, financial condition, and
operating results.
Item 2.
Financial Information.
Management’s
Discussion and Analysis of Financial Condition and Results of Operation.
Fiscal Year
Ended November 30, 2020, compared to Year Ended November 30, 2019
We did not
earn any revenues for the years ended November 30, 2020, and November 30, 2019.
Expenses for
the year ended November 30, 2020, totaled $134,028 consisting primarily of Depreciation of $50,000, Administration fess of $50,000, Brokerage
fees of $2,028 and Regulatory expense of $32,000 resulting in a net loss of $134,028. Expenses for the Year ended November 30, 2019,
totaled $81,195 consisting primarily of Depreciation of $29,167, Administration fess of $50,000, Brokerage fees of $2,028 and Regulatory
expense of $NIL resulting in a net loss of $81,195
Capital
Resources and Liquidity
Since our
director may be unwilling or unable to loan or advance us additional capital, we believe that if we do not raise additional capital over
the next 12 months following the filing of this registration statement, we may be required to suspend or cease the implementation of
our business plans. If we are unable to raise additional funds, there is substantial doubt as to our ability to continue as a going concern.
As of November
30, 2020, we had $170,833 of assets compared to $220,833 of assets as of November 30, 2019. As of November 30, 2020, we had $1,071,405
of liabilities compared to $987,377 of liabilities as of November 30, 2019. We anticipate that our current cash and cash equivalents
and cash generated from financing activities will be insufficient to satisfy our liquidity requirements for the next 12 months. To date,
the Company has incurred operating losses of $4,167,325.
The Company
requires additional funding to meet its ongoing obligations and to fund anticipated operating losses. We agree with our auditors that
our auditor has expressed substantial doubt about our ability to continue as a going concern. The ability of the Company to continue
as a going concern is dependent on raising capital to fund its initial business plan and ultimately to attain profitable operations.
These financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts
or amounts and classification of liabilities that might result from this uncertainty.
We expect
to incur marketing, professional, and administrative expenses as well expenses associated with maintaining our filings with the Commission.
We will require additional funds during this time and will seek to raise the necessary additional capital. If we are unable to obtain
additional financing, we may be required to reduce the scope of our business development activities, which could harm our business plans,
financial condition and operating results. Additional funding may not be available on favorable terms, if at all. The Company intends
to continue to fund its business by way of equity or debt financing and advances from related parties. Any inability to raise capital
as needed would have a material adverse effect on our business, financial condition and results of operations.
If we cannot
raise additional funds, we will have to cease business operations. As a result, investors in the Company’s common stock would lose
all their investment.
Off Balance
Sheet Arrangement
There are
no off-balance sheet arrangements currently contemplated by management or in place that are reasonably likely to have a current or future
effect on the business, financial condition, changes in financial condition, revenue, or expenses, result of operations, liquidity, capital
expenditures and/or capital resources.
Recent
Accounting Standards
The Company
has implemented all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe
that there are any other new accounting standards that have been issued that might have a material impact on its financial position or
results of operations.
Item 3.
Properties.
The Company
neither rents nor owns any properties. The Company utilizes the office space of its management at no cost. Management estimates such
amounts to be immaterial. The Company currently has no policy with respect to investments or interests in real estate, real estate mortgages
or securities of, or interests in, persons primarily engaged in real estate activities.
Item 4.
Security Ownership of Certain Beneficial Owners and Management.
The following
table sets forth information regarding the number of shares of Common Stock beneficially owned on November 30, 2020, by each person who
is known by the Company to beneficially own 5% or more of the Company’s Common Stock, each of the Company’s directors and
executive officers, and all of the Company’s directors and executive officers, as a group: On November 30, 2020, we had 244,038,890
shares of common stock outstanding.
| Name of Beneficial Owner | |
Common Shares Owned | |
Options Exercisable | |
Common Shares Beneficially owned | |
Percentage of Class (3) |
| Leonard Stella (1) | |
| 2,441,724 | | |
| 0 | | |
| 2,441,724 | | |
| 1.001 | % |
| PURTHANOL INTERNATIONAL(2) | |
| 70,000,000 | | |
| 0 | | |
| 70,000,000 | | |
| 28.684 | % |
| AMBROSIA ROSEDALE CAPITAL LIMITED(3) | |
| 20,000,000 | | |
| 0 | | |
| 20,000,000 | | |
| 8.195 | % |
| All officers and Directors as a group (1 person) | |
| 2,441,724 | | |
| 0 | | |
| 2,441,724 | | |
| 1.001 | % |
| Greater than 5% Shareholders | |
| 90,000,000 | | |
| 0 | | |
| 0 | | |
| 36.879 | % |
| |
(1) |
Leonard Stella is Chief Executive Officer, Chief Financial
Officer, Secretary and Sole Director of the Company. |
| |
(2) |
Louis Pharand has sole voting and dispositive power
over the shares. |
| |
(3) |
Jean Marie Rancour has sole voting and dispositive
power over the shares. |
This
table is based upon information derived from our stock records. We believe that each of the shareholders named in this table has sole
or shared voting and investment power with respect to the shares indicated as beneficially owned; except as set forth above, applicable
percentages are based upon 244,038,890 shares of common stock outstanding as of the date of this registration statement on Form 10.
Item
5. Directors and Executive Officers.
(a)
Identification of Directors and Executive Officers.
Our
officers and directors and additional information concerning them are as follows:
| Name |
Age |
|
Position(s) |
Leonard Stells |
60 |
|
President, Secretary/ Treasurer, Chief
Financial Officer and Chairman of the Board of Directors. |
The
person named above has held his offices/positions since August 11, 2020 and is expected to hold his offices/positions at least until
the next annual meeting of our stockholders.
Business
Experience
CURRENT POSITION
- Chief Executive Officer, Purthanol Resources Ltd. since February 2014.
2/2014-PRESENT
PREVIOUS POSITION
Chief
Executive Officer, Global Biotech Corp
Real
Estate Broker license: between 1980 – 1989 and Director and Founder of Trans-Immobilia in Canada and Director and Founder Transaction
Realty in New York, USA I was an Assistant and technician to the Director of Personnel at Mount Sinai Hospital in Ste-Agath Quebec for
a one-year period between 1984 and 1985. Between 1989 and 1997 owned
several restaurants in and around the city of Montreal Quebec. In 1998 until 2012 Mr. Stella was the Founder and Chief Executive Officer
of Millenia Hope Inc. (“Millenia”) – Public Pharmaceutical Company – which produced an anti-malarial product
– homologated in 18 countries in Africa – produced phyto-chemicals for L’Oreal France, Sederma France, Pierre Fabre
Laboratories (France) and Synomex USA. Mr. Stella was also the Chief
Operating Officer
and founder of Sword Comp Soft of a public company in 1998 to 2003 an IT Company that dealt with the compression of data and information.
Business
Development Officer from 2004 to 2012 of Global Biotech Corp – produces the following products Aquaboost, Pet Boost, and Femtra.
Global Biotech Corp.
In
2006 Millenia discovered a compound for HIV - CCR5 and RNash enzyme for preventing the body to give entrance and cleave the AIDS virus
to human DNA. Millenia was given a grant of 4.6 million dollars with National Institute of Health (NIH) USA along with Rudger and Pittsburgh
University.
In
2008 to 2010 Millenia was granted an anti-parasitical compound from the NIH to continue the development of anti-parasitical drugs this
project was not funded.
In
2006 to 2012 Mr. Stella was Director and Officer of Pharmateck International Ltd – Distributers of Aquaboost the only water in
North America with a DIN (Drug Identification Number) and just acquired 6 NPN (Natural Product Numbers) for nutraceutical health products
– sold the process and the NPNs.
In
2009 to 2012 I was a Director and Officer of Genesis Biopharma a partner of Millenia Hope Pharmaceutical Inc. which had a peptide compound
licensed by the University of Sherbrooke, in Phase 1A for Pain Neuropathy stemming from complicated Diabetes and Prostate Cancer with
Health Canada.
Education
1984
- Bachelor of Arts - McGill University, Montreal Canada
1986
– Graduate Diploma in Business Administration - Concordia University, Montreal Canada
b)
Significant Employees. None.
(c)
Family Relationships. None.
(d)
Involvement in Certain Legal Proceedings.
No
officer, director, or persons nominated for such positions, promoter or significant employee has been involved in the last ten years
in any of the following:
• Any
bankruptcy petition filed by or against any business of which such person was a general partner or executive officer either at the time
of the bankruptcy or within two years prior to that time.
• Any
conviction in a criminal proceeding or being subject to a pending criminal proceeding (excluding traffic violations and other minor offenses);
• Being
subject to any order, judgment, or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently
or temporarily enjoining, barring, suspending or otherwise limiting his involvement in any type of business, securities or banking activities;
and
• Being
found by a court of competent jurisdiction (in a civil action), the Commission or the Commodity Futures Trading Commission to have violated
a federal or state securities or commodities law, and the judgment has not been reversed, suspended, or vacated.
(e)
The Board of Directors acts as the Audit Committee and the Board has no separate committees. The Company has no qualified financial expert
currently because it has not been able to hire a qualified candidate. Further, the Company believes that it has inadequate financial
resources currently to hire such an expert. The Company intends to continue to search for a qualified individual for hire.
(f)
Code of Ethics. We do not currently have a code of ethics
Item
6. Executive Compensation.
No
officer or director has received any compensation from the Company since the inception of the Company. Until the Company acquires additional
capital, it is not anticipated that any officer or director will receive compensation from the Company other than reimbursement for out-of-pocket
expenses incurred on behalf of the Company. Our officer and director intend to devote very limited time to our affairs.
The
Company has no stock option, retirement, pension, or profit-sharing programs for the benefit of directors, officers or other employees,
but our sole officer and director may recommend adoption of one or more such programs in the future.
There
are no understandings or agreements regarding compensation our management will receive after a business combination that is required
to be disclosed.
The
Company does not have a standing compensation committee or a committee performing similar functions, since the Board of Directors has
determined not to compensate the officer and director until such time that the Company completes a reverse merger or business combination.
Item
7. Certain Relationships and Related Transactions, and Director Independence.
Corporate
Governance and Director Independence.
The
Company has not:
• established
its own definition for determining whether its directors and nominees for directors are “independent” nor has it adopted
any other standard of independence employed by any national securities exchange or inter-dealer quotation system, though our current
director would not be deemed to be “independent” under any applicable definition given that he is an officer of the Company;
nor
• established
any committees of the board of directors.
Given
the nature of the Company’s business, its limited stockholder base and the current composition of management, the board of directors
does not believe that the Company requires any corporate governance committees at this time. The board of directors takes the position
that management of a target business will establish committees that will be suitable for its operations after the Company consummates
a business combination.
As
of the date hereof, the entire board serves as the Company’s audit committee.
Conflicts
of Interest
At
the present time, the company does not foresee any direct conflict between Mr. Stella’s’ other business interests and his
involvement in Purthanol Resources Limited
Item
8. Legal Proceedings.
None
Item
9. Market Price of and Dividends on the Company’s Common Equity and Related Stockholder Matters.
(a) Market
Information.
Our
Common Stock is quoted on the OTC Markets Group, Inc.'s PINK tier under the symbol "PURT." On September 24, 2021, the closing
bid price of our Common Stock was $0.0019 per share. As of the date of this prospectus, none of the other securities that we may offer
by this prospectus is listed on any national securities exchange or automated quotation system.
We
cannot assure you that a trading market for our common stock will ever develop. The Company has not registered its class of common stock
for resale under the blue sky laws of any state and current management does not anticipate doing so. The holders of shares of common
stock, and persons who may desire to purchase shares of our common stock in any trading market that might develop in the future, should
be aware that significant state blue sky law restrictions may exist which could limit the ability of stockholders to sell their shares
and limit potential purchasers from acquiring our common stock.
The
Company is not obligated by contract or otherwise to issue any securities and there are no outstanding securities which are convertible
into or exchangeable for shares of our common stock, furthermore, there are currently no outstanding warrants on any of our securities.
All outstanding shares of our common stock are “restricted securities,” as that term is defined under Rule 144 promulgated
under the Securities Act of 1933, because they were issued in a private transaction not involving a public offering. Accordingly, none
of the outstanding shares of our common stock may be resold, transferred, pledged as collateral or otherwise disposed of unless such
transaction is registered under the Securities Act of 1933 or an exemption from registration is available. In connection with any transfer
of shares of our common stock other than pursuant to an effective registration statement under the Securities Act of 1933, the Company
may require the holder to provide to the Company an opinion of counsel to the effect that such transfer does not require registration
of such transferred shares under the Securities Act of 1933.
Rule
144 is not available for the resale of securities initially issued by companies that are, or previously were, shell companies, like us,
unless the following conditions are met:
• the
issuer of the securities that was formerly a shell company has ceased to be a shell company.
• the
issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934.
• the
issuer of the securities has filed all Exchange Act reports and material required to be filed, as applicable, during the preceding 12
months (or such shorter period that the issuer was required to file such reports and materials), other than Current Reports on Form 8-K;
and
• at
least one year has elapsed from the time that the issuer filed current comprehensive disclosure with the SEC reflecting its status as
an entity that is not a shell company.
Neither
the Company nor its officer and director have any present plan, proposal, arrangement, understanding or intention of selling any unissued
or outstanding shares of common stock in the public market after a business combination. Nevertheless, if a substantial number of shares
of our common stock were to be sold in any public market that may develop for our securities subsequent to a business combination, such
sales may adversely affect the price for the sale of the Company’s common stock securities in any such trading market. We cannot
predict what effect, if any, market
sales of currently restricted shares of common stock or the availability of such shares for sale will have on the market prices prevailing
from time to time, if any.
(b)
Holders.
As
of October 26, 2021, the Company had 323 shareholders of record.
(c)
Dividends.
The
Company has not paid any cash dividends to date and does not anticipate or contemplate paying dividends in the foreseeable future. It
is the present intention of management to utilize all available funds for the development of the Company’s business.
(d)
Securities Authorized for Issuance under Equity Compensation Plans.
None.
Item
10. Recent Sales of Unregistered Securities.
None
Item
11. Description of Registrant’s Securities to be Registered.
Capital
Stock
We
are authorized to issue 260,000,000 shares of common stock, par value $0.001 per share. As of November 30, 2020, 244,038,890 shares of
Common Stock are issued and outstanding.
All
of our shares of common stock have equal rights and privileges with respect to voting, liquidation and dividend rights. Each share of
common stock entitles the holder thereof (a) to one non-cumulative vote for each share held of record on all matters submitted to a vote
of the stockholders; (b) to participate equally and to receive any and all such dividends as may be declared by the board of directors;
and (c) to participate pro rata in any distribution of assets available for distribution upon liquidation. Holders of our common stock
have no pre-emptive rights to acquire additional shares of common stock or any other securities. Our common stock is not subject to redemption
and carries no subscription or conversion rights.
Our
certificate of incorporation also provides that the board of directors has the flexibility to set new classes, series, and other terms
and conditions of the preferred shares. Preferred shares may be issued from time to time in one or more series in the discretion of the
board of directors. The board has the authority to establish the number of shares to be included in each such series, and to fix the
designation, powers, preferences and rights of the shares of each such series and the qualifications, limitations and restrictions thereof.
Our
certificate of incorporation also provides that the board of directors may issue common shares and such may be issued without further
stockholder approval and for such purposes as the board deems in the best interest of our company including future stock splits and split-ups,
stock dividends, equity financings and issuances for acquisitions and business combinations. In addition, such authorized but unissued
common shares could be used by the board of directors for defensive purposes against a hostile takeover attempt, including (by way of
example) the private placement of shares or the granting of options to purchase shares to persons or entities sympathetic to, or contractually
bound to support, management. We have no such present arrangement or understanding with any person. Further, the common and preferred
shares may be reserved for issuance upon exercise of stock purchase rights designed to deter hostile takeovers, commonly known as a ‘‘poison
pill.’’
Common
Stock
The
holders of common stock are entitled to one vote per share. The Company’s Certificate of Incorporation does not provide for cumulative
voting. The holders of common stock are entitled to receive rateably such dividends, if any, as may be declared by the Board of Directors
out of legally available funds. However, the current policy of the Board of Directors is to retain earnings, if any, for the operation
and expansion of the Company. Upon liquidation, dissolution or winding-up of the Company, the holders of common stock are entitled to
share rateably in all assets of the Company which are legally available for distribution, after payment of or provision for all liabilities
and the liquidation preference of any outstanding Preferred Stock. The holders of common stock have no pre-emptive, subscription, redemption,
or conversion rights. All issued and outstanding shares of common stock are, and the common stock reserved for issuance upon conversion
of the Preferred Stock and exercise of the Warrants will be, when issued, fully paid and non-assessable.
Preferred
Stock
The
Company is authorized to issue 80,000,000 shares of preferred stock, $.001 par value, with such designations, rights and preferences
as may be determined from time to time by the Board of Directors, of which no preferred shares have been designated nor issued.
Trading
Information
The
Company’s common stock is traded in the over-the-counter market and is quoted on the OTC Bulletin Board under the symbol ‘‘PURT.’’
The trading market for the common stock has been extremely limited and sporadic.
The
following table sets forth for the respective periods indicated the prices of our common stock in this market as reported and summarized
by the National Quotation Bureau. Such prices are based on inter-dealer bid and asked prices, without markup, markdown, commissions,
or adjustments and may not represent actual transactions. During the fiscal years ended November 30, 2020, and during 2021, the company’s
common stock had a trading history as follows:
| Fiscal
Year 2019 |
Hi |
Low |
| |
|
|
| March
29, 2019 |
$.003 |
$.003 |
| June
28, 2019 |
$.0021 |
$.0021 |
| September
30, 2019 |
$.0024 |
$.0024 |
| November
29, 2019 |
$.0024 |
$.0024 |
| |
|
|
| Fiscal
Year 2020 |
|
|
| |
|
|
| March
31, 2020 |
$.025 |
$.004 |
| June
30, 2020 |
$.0063 |
$.0063 |
| September
30, 2020 |
$.0050 |
$.0025 |
| November
30, 2020 |
$.0035 |
$.0035 |
| |
|
|
| Fiscal
Year 2021 |
|
|
| |
|
|
| March
31, 2021 |
$.75 |
$.75 |
| June
30, 2021 |
$.0050 |
$.0049 |
| September
24, 2021 |
$.0019 |
$.0019 |
Last Reported
Price
On October
26, 2021, the last reported bid price of our shares of common stock reported on the Pink Sheets was $0.0019 per share.
The Company
anticipates that it will apply to list the common stock on the American Stock Exchange or the NASDAQ SmallCap Market. No assurance can
be given that the Company will satisfy the initial listing requirements, or that its shares of common stock will ever be listed on those
trading markets.
Transfer
Agent
The Transfer
Agent for shares of the Company’s securities is Pacific Stock Transfer Company, located at 6725 Via Austi Pkwy #300, Las Vegas,
Nevada 87119.
Anti-Takeover
Effect of Delaware Law, Certain By-Law Provisions
Certain provisions
of our by-laws are intended to strengthen our Board’s position in the event of a hostile takeover attempt. These by-law provisions
have the following effects:
• they
provide that only business brought before an annual meeting by our Board or by a stockholder who complies with the procedures set forth
in the by-laws may be transacted at an annual meeting of stockholders; and
• they
provide for advance notice or certain stockholder actions, such as the nomination of directors and stockholder proposals.
We are subject
to the provisions of Section 203 of the DGCL, an anti-takeover law. In general, Section 203 prohibits a publicly held Delaware corporation
from engaging in a ‘‘business combination’’ with an ‘‘interested stockholder’’ for a
period of three years after the date of the transaction in which the person became an interested stockholder, unless the business combination
is approved in a prescribed manner. For purposes of Section 203, a ‘‘business combination’’ includes a merger,
asset sale or other transaction resulting in a financial benefit to the interested stockholder, and an ‘‘interested stockholder’’
is a person who, together with affiliates and associates, owns, or within three years prior, did own, 15% or more of the voting stock.
Item 12.
Indemnification of Directors and Officers.
As permitted
by the provisions of the Delaware General Corporation Law (the ‘‘DGCL’’), we have the power to indemnify any
person made a party to an action, suit or proceeding by reason of the fact that they are or were a director, officer, employee or agent
of ours, against expenses, judgments, fines and amounts paid in settlement actually and reasonably incurred by them in connection with
any such action, suit or proceeding if they acted in good faith and in a manner which they reasonably believed to be in, or not opposed
to, our best interest and, in any criminal action or proceeding, they had no reasonable cause to believe their conduct was unlawful.
Termination of any action, suit or proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent,
does not, of itself, create a presumption that the person did not act in good faith and in a manner which they reasonably believed to
be in or not opposed to our best interests, and, in any criminal action or proceeding, they had no reasonable cause to believe their
conduct was unlawful.
We must indemnify
a director, officer, employee or agent who is successful, on the merits or otherwise, in the defense of any action, suit or proceeding,
or in defense of any claim, issue, or matter in the proceeding, to which they are a party because they are or were a director, officer,
employee or agent, against expenses actually and reasonably incurred by them in connection with the defense.
We may provide
to pay the expenses of officers and directors incurred in defending a civil or criminal action, suit or proceeding as the expenses are
incurred and in advance of the final disposition of the action, suit or proceeding, upon receipt of an undertaking by or on behalf of
the director or officer to repay the amount if it is ultimately determined by a court of competent jurisdiction that they are not entitled
to be indemnified.
The DGCL also
permits a corporation to purchase and maintain liability insurance or make other financial arrangements on behalf of any person who is
or was
| |
· |
a
director, officer, employee or agent of ours, |
| |
· |
or
is or was serving at the request of the corporation as a director, officer, employee or agent of another corporation, partnership,
joint venture, trust or other enterprises. |
Such coverage
may be for any liability asserted against them and liability and expenses incurred by them in their capacity as a director, officer,
employee or agent, or arising out of their status as such, whether or not the corporation has the authority to indemnify them against
such liability and expenses.
Insofar as
indemnification for liabilities arising under the Securities Act, as amended, may be permitted to officers, directors or persons controlling
our company pursuant to the foregoing provisions, we have been informed that in the opinion of the SEC such indemnification is against
public policy as expressed in such Act and is therefore unenforceable.
Item 13. Financial Statements and Supplementary
Data.
We set forth below a list of our audited
financial statements included in this Registration Statement on Form 10.
(i) Balance Sheet as
of November 30, 2021, and November 30, 2020
(ii) Statement of Operations
for the years ending November 30, 2021, and November 30, 2020
(iii) Statement of Changes in Stockholders’
Equity (Deficit) for the years ending November 30, 2021, and November 30, 2020
(iv) Statement of Cashflows
for the years ending November 30, 2021, and November 30, 2020
(v) Notes to Financial
Statement
REPORT OF
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of Purthanol Resources
Limited.
Opinion on the Financial Statements
We have audited the accompanying balance sheets
of Purthanol Resources Limited (the “Company”) as of November 30, 2021 and 2020, the related statements of operations, stockholders’
deficit, and cash flows for the years then ended, and the related notes (collectively referred to as the “financial statements”).
In our opinion, the financial statements present fairly, in all material respects, the financial position of the Company as of November
30, 2021 and 2020, and the results of its operations and its cash flows for the years then ended, in conformity with accounting principles
generally accepted in the United States.
Going Concern Matter
The accompanying financial statements have been
prepared assuming that the Company will continue as a going concern. As discussed in Note 2 to the financial statements, the Company has
no revenue, suffered recurring losses from operations and has a net capital deficiency that raises substantial doubt about its ability
to continue as a going concern. Management’s plans regarding these matters are also described in Note 2 to the financial statements.
The financial statements do not include any adjustments that might result from the outcome of this uncertainty.
Basis for Opinion
These financial statements are the responsibility
of the Company’s management. Our responsibility is to express an opinion on the Company’s financial statements based on our
audit. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”)
and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable
rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audit in accordance with the
standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement, whether due to error or fraud. The Company is not required to have, nor were we engaged
to perform, an audit of its internal control over financial reporting. As part of our audit, we are required to obtain an understanding
of internal control over financial reporting, but not for the purpose of expressing an opinion on the effectiveness of the Company’s
internal control over financial reporting. Accordingly, we express no such opinion.
Our audit included performing procedures to
assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond
to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
Our audit also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating
the overall presentation of the financial statements. We believe that our audit provides a reasonable basis for our opinion.
Critical Audit Matters
Critical audit matters are matters arising from
the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and
that (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging,
subjective, or complex judgments. We determined that there are no critical audit matters.
/s/ TAAD LLP
TAAD LLP
We have served as the Company’s auditor since 2021
Diamond Bar, California
February 25, 2022
PURTHANOL
RESOURCES LIMITED
BALANCE SHEETS
| |
|
As of November 30, |
| |
|
2021 |
|
2020 |
| ASSETS |
|
|
|
|
| NON-CURRENT ASSETS: |
|
|
|
|
|
|
|
|
| Property, plant and equipment, net (Note 2) |
|
$ |
120,833 |
|
|
$ |
170,833 |
|
| Total Non-current Assets |
|
|
120,833 |
|
|
|
170,833 |
|
| Total Assets |
|
$ |
120,833 |
|
|
$ |
170,833 |
|
| |
|
|
|
|
|
|
|
|
| LIABILITIES AND SHAREHOLDERS' (DEFICIT) |
|
|
|
|
|
|
|
|
| CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
| Accounts payable and accrued liabilities |
|
$ |
40,449 |
|
|
$ |
38,421 |
|
| Due to related party (Note 3) |
|
|
832,984 |
|
|
|
782,984 |
|
| Shares to be issued (Note 5) |
|
|
250,000 |
|
|
|
250,000 |
|
| Total Current Liabilities |
|
|
1,123,433, |
|
|
|
1,071,405 |
|
| Total Liabilities |
|
$ |
1,123,433, |
|
|
$ |
1,071,405 |
|
| |
|
|
|
|
|
|
|
|
| SHAREHOLDER'S DEFICIT: |
|
|
|
|
|
|
|
|
| Preferred shares (Note 7), $0.0001 par value authorized |
|
|
|
|
|
|
|
|
| 80,000,000 shares; no shares issued and outstanding at |
|
|
|
|
|
|
|
|
| November 30, 2021 and November 30, 2020. |
|
|
- |
|
|
|
- |
|
| Common shares (Note 7), $0.0001 par value authorized 260,000,000 shares: issued and outstanding 244,038,890 at November 30, 2021 and November 30, 2020. |
|
|
24,403 |
|
|
|
24,403 |
|
| Additional paid in capital |
|
|
3,325,233 |
|
|
|
3,296,079 |
|
| Accumulated deficit |
|
|
(4,352,236 |
) |
|
|
(4,221,054 |
) |
| Total Shareholders' Deficit |
|
|
(1,002,600 |
) |
|
|
(900,572 |
) |
| Total Liabilities and Shareholders' Deficit |
|
$ |
120,833 |
|
|
$ |
170,833 |
|
PURTHANOL RESOURCES LIMITED
STATEMENT OF OPERATIONS
| |
|
For the Years Ended November 30, |
| |
|
2021 |
|
2020 |
| OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
| Depreciation |
|
$ |
50,000 |
|
|
$ |
50,000 |
|
| Administrative fees |
|
|
50,000 |
|
|
|
50,000 |
|
| Brokerage fees |
|
|
2,028 |
|
|
|
2,028 |
|
| Regulatory expense |
|
|
--- |
|
|
|
32,000 |
|
| Total Operating Expenses |
|
|
102,028 |
|
|
|
134,028 |
|
| LOSS FROM OPERATIONS |
|
|
(102,028 |
) |
|
|
(134,028 |
) |
| |
|
|
|
|
|
|
|
|
| OTHER INCOME (EXPENSE): |
|
|
|
|
|
|
|
|
| Interest expense |
|
|
(29,154 |
) |
|
|
(27,751 |
) |
| Total Other Income (Expense) |
|
|
(29,154 |
) |
|
|
(27,751 |
) |
| |
|
|
|
|
|
|
|
|
| NET LOSS BEFORE TAXES |
|
|
(131,182 |
) |
|
|
(161,779 |
) |
| INCOME TAX EXPENSE |
|
|
— |
|
|
|
— |
|
| NET LOSS |
|
$ |
(131,182 |
) |
|
$ |
(161,779 |
) |
| Basic and diluted weighted average common shares outstanding |
|
|
244,038,890 |
|
|
|
244,038,890 |
|
| Basic and diluted (loss) per common share |
|
$ |
(0.00 |
) |
|
$ |
(0.00 |
) |
PURTHANOL RESOURCES LIMITED
STATEMENT OF SHAREHOLDERS' EQUITY (DEFICIT)
FOR THE YEARS ENDED NOVEMBER 30, 2021 and 2020
| |
Common Stock |
|
|
Additional Paid in Capital |
|
|
|
Accumulated Deficit |
|
|
|
|
|
| |
Shares |
|
Amount |
|
|
|
|
|
|
|
|
Total |
|
| Balance as of December 1, 2018 |
244,038,890 |
|
$ |
24,403 |
|
$ |
3,242,350 |
|
|
$ |
(3,952,102 |
) |
|
$ |
(685,349 |
) |
| Imputed interest |
|
|
|
|
|
|
25,978 |
|
|
|
|
|
|
|
25,978 |
|
| Net loss |
|
|
|
|
|
|
|
|
|
|
(107,173 |
) |
|
|
(107,173 |
) |
| Balance as of November 30, 2020 |
244,038,890 |
|
|
24,403 |
|
|
3,268,328 |
|
|
|
(4,059,275 |
) |
|
|
(766,544 |
) |
| Imputed interest |
|
|
|
|
|
|
27,751 |
|
|
|
|
|
|
|
27,751 |
|
| Net loss |
|
|
|
|
|
|
|
|
|
|
(161,779 |
) |
|
|
(161,779 |
) |
| Balance as of November 30, 2021 |
244,038,890 |
|
$ |
24,403 |
|
$ |
3,296,079 |
|
|
$ |
(4,221,054 |
) |
|
$ |
(900,572 |
) |
| Imputed interest |
|
|
|
|
|
|
29,154 |
|
|
|
|
|
|
|
29,154 |
|
| Net loss |
|
|
|
|
|
|
|
|
|
|
(131,182 |
) |
|
|
(131,182) |
|
| Balance as of November 30, 2021 |
244,038,890 |
|
$ |
24,403 |
|
$ |
3,325,233 |
|
|
$ |
(4,352,236 |
) |
|
$ |
(1,002,600) |
|
PURTHANOL RESOURCES LIMITED
STATEMENT OF CASH FLOWS
| |
|
For the Years Ended November 30, |
| |
|
2021 |
|
2020 |
| CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
|
| Net income (loss) for the year |
|
$ |
(131,182 |
) |
|
$ |
(161,779 |
) |
| Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
|
|
| Interest expense |
|
|
29,154 |
|
|
|
27,751 |
|
| Depreciation |
|
|
50,000 |
|
|
|
50,000 |
|
| Changes in operating assets/liabilities: |
|
|
|
|
|
|
|
|
| Accounts payable and accrued liabilities |
|
|
2,028 |
|
|
|
34,028 |
|
| Net cash used in operating activities |
|
|
(50,000 |
) |
|
|
(50,000) |
|
| |
|
|
|
|
|
|
|
|
| CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
|
| Due to related parties |
|
|
50,000 |
|
|
|
50,000 |
|
| Net Cash Provided by Financing Activities |
|
|
50,000 |
|
|
|
50,000 |
|
| |
|
|
|
|
|
|
|
|
| NET INCREASE (DECREASE) IN CASH RESOURCES |
|
|
— |
|
|
|
— |
|
| CASH - Beginning of Year |
|
|
— |
|
|
|
— |
|
| CASH - End of Year |
|
$ |
— |
|
|
$ |
— |
|
| SUPLEMENTAL CASHFLOW DISCLOSURE |
|
|
|
|
|
|
|
|
| CASH paid for interest |
|
|
— |
|
|
|
— |
|
| CASH paid for income taxes |
|
$ |
— |
|
|
$ |
— |
|
| |
|
|
|
|
|
|
|
|
PURTHANOL
RESOURCES LIMITED
NOTES THE
FINANCIAL
STATEMENTS
FOR THE YEAR
ENDED NOVEMBER
30, 2021
NOTE 1 – NATURE OF OPERATIONS
PURTHANOL
RESOURCES
LIMITED (formerly
GLOBAL BIOTECH
CORP.) (the
``Company``) was
incorporated
in the State
of Delaware
on November
2, 1998, to be an
Application
Service provider
in the E-Health
sector. On March 5, 2003, this business
was sold,
market, unsuccessfully.
On February 25, 2005, it
discontinued
its vehicle
tracking business.
On August 15, 2007,
the Company entered
the oxygenated
beverage market. Global’s
current mission
is to produce Bio-
fuel alternatives,
via the acquisition
of the Purthanol
process in Sept.
2013 and the acquisition
of Biocardel
Quebec in Dec
2013. The Company
changed name
form Global Biotech
Corp. to Purthanol
Resources Limited
on September
30, 2013. This
company
has not been
operating
and has been inactive
since 2015.
NOTE 2 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Basis of Presentation
The Company's
policy is to use the accrual method of
accounting to prepare and
present financial statements,
which conforms
to US generally
accepted accounting
principles
("GAAP').
The company
has elected
a November
30 year- end.
b. Cash and Cash
Equivalents
The Company
considers
all highly
liquid
investments
with original
maturities
of three months
or less and
bank indebtedness
to be cash and cash equivalents.
Highly liquid
investments
are valued at quoted
market
c. Use of Estimates
The preparation
of financial statements
in conformity
with accounting
principles generally
accepted in the United
States of America
requires management
to make
certain estimates
and assumptions
that affect the reported
amounts of assets
and liabilities
and disclosure
of contingent
assets and
liabilities
at the date of the financial
statements
and the reported
amounts
of revenue and
expenses
during the periods
presented. Actual results
could
differ
from those estimates.
Significant
estimates made
by management
are, among others, reliability
of long-lived
assets and useful
life of fixed asset. Management reviews
its estimates on a quarterly
basis and, where
necessary,
makes adjustments
prospectively.
d. Property, Plant and Equipment
Property, plant and equipment are recorded
at cost less accumulated depreciation and any impairment. The cost of an asset comprises its purchase price and any directly attributable
costs of bringing the asset to its present working condition and location for its intended use. Repairs and maintenance costs are normally
expensed as incurred.
When assets are retired or disposed of,
the cost and accumulated depreciation are removed from the accounts, and any resulting gains or losses are included in the statement of
income (loss) in the reporting period of disposition.
Depreciation is calculated on a straight-line
basis over the estimated useful life of the assets.
e. Going Concern
The Company's
financial statements
have been presented
on the basis that it
is a going
concern, which contemplates
the realization
of assets and the satisfaction
of liabilities
in the normal
course of business.
The Company's
management
intends to raise
additional
operating funds
through operations,
and debt
or equity offerings.
Management
has yet to decide
what type of offering
the Company will
use or how
much capital
the Company
will raise. There
is no guarantee
that the Company will
be able to raise any capital
through any type
of offerings.
f. Fair Value
of Financial
Instruments
ASC 820,
Fair Value
Measurements
and Disclosures
, defines fair value
as the price that would
be received from selling
an asset or paid
to transfer a liability
in an orderly transaction
between
market participants
at the measurement
date. In determining fair value
for assets and liabilities
required or permitted
to be recorded at fair
value, the Company considers
the principal
or most advantageous
market
in which it
would
transact, and it
considers assumptions
that market participants
would use when
pricing the
asset or liability.
Fair Value
Hierarchy
ASC 820
establishes
a fair value hierarchy
that requires an entity
to maximize
the use of observable
inputs and minimize
the use of unobservable inputs
when measuring
fair value. A financial
instrument’s
categorization within
the fair
value hierarchy
is based
upon the
lowest
level of input
that is significant
to the fair value
measurement.
ASC 820 establishes
three levels
of inputs
that may be
used to measure
fair value:
Level
1 applies to assets
and liabilities
for which there are quoted
prices in
active markets
for identical
assets or liabilities.
Valuations
are based on
quoted prices
that are readily
and regularly available
in an active market and do not entail
a significant
degree of judgment.
Level
2 applies to assets
and liabilities
for which there
are other than Level
1 observable inputs
such as quoted prices for similar
assets or liabilities
in active markets,
quoted prices for identical
assets or
liabilities
in markets with
insufficient
volume or infrequent
transactions
(less active markets),
or model-derived
valuations
in which
significant
inputs
are observable
or can be derived principally
from,
or corroborated
by, observable market
data.
Level 2 instruments
require more management
judgment and
subjectivity
as compared to Level
1 instruments.
For instance:
• Determining
which instruments
are most similar
to the instrument
being priced
requires management
to identify
a sample of similar
securities based
on the coupon rates,
maturity,
issuer,
credit rating
and instrument
type, and subjectively
select an individual
security or multiple
securities that are
deemed
most similar to
the security being
priced; and
• Determining
whether a market
is considered
active requires
management
judgment.
Level
3 applies to assets
and liabilities
for which
there are unobservable
inputs to the
valuation
methodology
that are significant
to the measurement
of the fair value
of the Company
believes
the fair value of its
financial
instruments
reported in
the consolidated
balance
sheets consisting
of accounts payable
and accrued expenses
approximate
their carrying values
due to the relatively short maturity
of these instruments.
g. Earning
(Loss) Per Share
The Company
computes net income
(loss) per share
in accordance
with
ASC 260,
Earnings per
Share. ASC 260 specifies
the computation,
presentation and disclosure
requirements
for earnings (loss)
per share for
entities with publicly
held common
stock. The Company has
adopted the provisions
of ASC 260
effective November
2, 1998 (inception).
Basic
net earnings
(loss) per share
amounts are computed by dividing
the net earnings (loss) by the weighted
average number of
common shares outstanding.
Diluted earnings
(loss) per share are the same
as basic earnings (loss)
per share due to
the lack of dilutive
items in the Company.
h. Income
Taxes
We account for income taxes in accordance with ASC
740 - Income Taxes, which requires us to provide a net deferred tax asset/liability equal to the expected future tax benefit/expense
of temporary reporting differences between book and tax accounting methods and any available operating loss or tax credit carry forwards.
Tax law and rate changes are reflected in income in the period such changes are enacted. We record a valuation allowance to reduce the
deferred tax assets to the amount that is more likely than not to be realized. We include interest and penalties related to income taxes,
including unrecognized tax benefits, within the provision for income taxes.
Our income tax returns are based on calculations and
assumptions that are subject to examination by the Internal Revenue Service and other tax authorities. In addition, the calculation of
our tax liabilities involves dealing with uncertainties in the application of complex tax regulations. We recognize liabilities for uncertain
tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight
of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of
related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than
50% likely of being realized upon settlement. While we believe we have appropriate support for the positions taken on our tax returns,
we regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income
taxes. We continually assess the likelihood and amount of potential adjustments and adjust the income tax provision, income taxes payable
and deferred taxes in the period in which the facts that give rise to a revision become known.
i. Long-lived
Assets
We follow ASC 360-10-15-3, Impairment or
Disposal of Long-lived Assets, which established a “primary asset” approach to determine the cash flow estimation period for
a group of assets and liabilities that represents the unit of accounting for a long-lived asset to be held and used. Long-lived
assets to be held and used are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of
an asset may not be recoverable. The carrying amount of a long-lived asset is not recoverable if it exceeds the sum of the undiscounted
cash flows expected to result from the use and eventual disposition of the asset. Long-lived assets to be disposed of are reported at
the lower of carrying amount or fair value less cost to sell.
RECENT
ACCOUNTING
PRONOUNCEMENTS
The Company
has implemented
all new accounting
pronouncements
that are in effect and that may
impact
its financial
statements
and does not
believe that there are any
other new accounting
pronouncements
that have been issued that
might have a material
impact
on its financial
position or results
of operations.
NOTE 3 - PROPERTY,
PLANT AND
EQUIPMENT
Property, plant,
and equipment
are stated
at cost less accumulated
depreciation.
Depreciation
is recorded at
rates designed
to amortize
the cost of capital
assets over their
estimated
useful lives
at 5 years straight line.
On May 1, 2019, the Company purchased fixed asset equipment from Lux Biologics
Limited for $250,000 of company’s common stock at $0.04 per share or 6,250,000 common shares even if the fair market value is lower
than $0.04 on the issuance date. The equipment is a gel capsule machine used to make soft gel for the nutraceutical and pharmaceutical
products for human and animal consumption.
Depreciation expense respectively is $50,000 and $50,000 for 2021 and 2020.
| |
|
|
|
Book |
|
Book |
| |
|
Accumulated |
|
Value |
|
Value |
| Cost |
|
Depreciation |
|
2021 |
|
2020 |
|
Equipment - 5 year straight-line basis |
|
$ |
250,000 |
|
|
$ |
129,167 |
|
|
$ |
120,833 |
|
|
$ |
170,833 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NOTE 4 - DUE TO RELATED
PARTY
The amounts due
to the related
party are $832,984 and $782,984 respectively
for 2021 and
2020 which represent
annual unpaid
management
accumulated fees
of $50,000
owed to the
CEO. The amount due to related party bears no interest, is unsecured and is repayable on demand. The Company recorded imputed interest
of $29,154 and $27,751 for the years ended November 30, 2021 and 2020, respectively.
NOTE 5 SHARES TO BE ISSUED
On May 1, 2019, the Company purchase a fixed asset
equipment from Lux Biologics Limited for $250,000 of company’s common stock at $0.04 per share. The equipment is a gel capsule machine
used to make soft gel for the nutraceutical and pharmaceutical products for human and animal consumption. Shares have not been issued
to Lux Biologics Limited as it awaits that Purthanol gets relisted on the OTCQX and it will be issues by end of March 31, 2022.
NOTE 6 INCOME TAXES
Our Company has not filed any
federal income tax returns and we are currently not subject to state income tax filing requirements. As of November 30, 2021, we have
net operating loss carry forwards, on a book basis, of $4,352,233 which may be available to reduce various future years' federal taxable
income. Future tax benefits which may result from these losses have not been recognized in these financial statements, as their realization
is determined not likely to occur and accordingly, we have recorded a valuation allowance for the deferred tax asset relating to the net
operating loss carry forwards.
The following table presents the
current income tax provision for federal and state income taxes for the years ended November 30, 2021 and 2020:
| Current tax provisions: |
|
|
2021 |
|
|
|
2020 |
|
| Federal |
|
$ |
— |
|
|
$ |
— |
|
| State |
|
$ |
— |
|
|
$ |
— |
|
| Total provision for income taxes |
|
$ |
— |
|
|
$ |
— |
|
Reconciliations of the U.S. federal statutory rate to the actual tax rate
for the years ended November 30, 2021 and 2020:
| |
|
2021 |
|
2020 |
| US federal statutory income tax rate |
|
|
21.00 |
% |
|
|
21.00 |
% |
| Increase in valuation reserve |
|
|
-21.00 |
% |
|
|
-21.00 |
% |
| Total provision for income taxes |
|
|
0.00 |
% |
|
|
0.00 |
% |
The components of our deferred tax assets as of November 30, 2021 and 2020
consisted of the following:
| |
|
2021 |
|
2020 |
| Net operating losses carry forwards |
|
$ |
4,352,236 |
|
|
$ |
4,221,054 |
|
| Less: valuation allowance |
|
$ |
(4,352,236 |
) |
|
$ |
(4,221,054 |
) |
| Net deferred tax assets |
|
$ |
— |
|
|
$ |
— |
|
During the year ended November
30, 2021, the valuation reserve increased $131,182 compared to an increase of $161,779 during the year ended and November 30, 2020. In
assessing the recovery of the deferred tax assets, management considers whether it is more likely than not that our Company will not realize
some portion or all of the deferred tax assets. The ultimate realization of deferred tax assets is dependent upon the generation of future
taxable income in the periods in which those temporary differences become deductible. Management considers the scheduled reversals of
future deferred tax assets, projected future taxable income, and tax planning strategies in making this assessment. As a result, management
determined, as of November 30, 2021, that it was more likely than not the deferred tax assets would not be realized.
As noted above, we have not filed
any federal tax returns, but we plan on bringing our tax filings current as soon as is practical.
NOTE 7 – STATEDCAPITAL
Authorized:
260,000,000 authorized
voting common
shares and 80,000,000 preferred
shares authorized: 244,038,890
Common voting
shares issued as of November
30, 2021, 2020, respectively. No preferred shares issued and outstanding.
NOTE 8 - SUBSEQUENT
EVENT
No events have occurred subsequent to the balance sheet date and through
the date of this filing that would require adjustment to or disclosure in the financial statements.
Item 14. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure.
There are not and have not been any disagreements
between the Company and its accountants on any matter of accounting principles, practices, or financial statement disclosure.
Item 15. Financial Statements and Exhibits.
(a) Financial Statements.
The financial statements and related notes
are included as part of this Form 10 registration statement.
Exhibits and Financial Statement Schedules.
Description of Exhibits
Exhibit 3.1
Certificate of Amendment changing the Company name
to Purthanol Resources Limited October 23, 2013.
Exhibit 3.2 Bylaws of Purthanol Resources – formerly
known as Sword Comp-Soft Corp. are included in the articles of incorporation
Exhibit 23.1 Consent of independent registered public accounting
firm dated February 11, 2022, regarding the use in this Registration Statement of their report of the auditors and financial statements
of Purthanol Resources Limited
SIGNATURES
Pursuant to the requirements of Section 12 of the Securities Exchange Act
of 1934, the registrant has duly caused this registration statement to be signed on its behalf by the undersigned, thereunto duly authorized.
Dated: February 25, 2022
PURTHANOL RESOURCES LIMITED
/s/ Leonard Stella
Leonard Stella
President and Director
Principal Executive Officer
Principal Financial Officer
Principal Accounting Officer
Purthanol Resources (CE) (USOTC:PURT)
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