x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
MagneGas
Corporation
|
|
(Exact
name of issuer as specified in its charter)
|
|
Delaware
|
26-0250418
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
35246
US Highway 19 North, #311
Palm
Harbor, Florida
|
34684
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Registrant’s
telephone number, including area code: (727)
934-9593
|
|
Securities
registered under Section 12(b) of the Exchange Act:
|
None.
|
Securities
registered under Section 12(g) of the Exchange Act:
|
Common
stock, par value $0.001 per share.
|
(Title
of class)
|
Item
1
|
Description
of Business
|
1
|
Item
2
|
Description
of Property
|
1
|
Item
3
|
Legal
Proceedings
|
1
|
Item
4
|
Submission
of Matters to a Vote of Security Holders
|
1
|
Item
5
|
Market
for Common Equity and Related Stockholder Matters
|
2
|
Item
6
|
Management’s
Discussion and Analysis or Plan of Operation
|
2
|
Item
7
|
Financial
Statements
|
F
|
Item
8
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
7
|
Item
8A
|
Controls
and Procedures
|
7
|
Item
8B
|
Other
Information
|
7
|
Item
9
|
Directors
and Executive Officers of the Registrant
|
8
|
Item
10
|
Executive
Compensation
|
9
|
Item
11
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
11
|
Item
12
|
Certain
Relationships and Related Transactions
|
11
|
Item
13
|
Exhibits
|
12
|
Item
14
|
Principal
Accountant and Fees and Services
|
12
|
Financial
Statements:
|
|
Report
of Independent Registered Public Accounting Firm Pender Newkirk &
Company, LLP
|
F-1
|
Report of Independent Registered Public Accounting Firm Gately & Associates, LLC |
F-2
|
Balance
Sheet
|
F-3
|
Statements
of Operations
|
F-4
|
Statements
of Changes in Stockholders’ Equity
|
F-5
|
Statements
of Cash Flows
|
F-6
|
Notes
to Audited Financial Statements
|
F-7
through F-12
|
MagneGas
Corporation
|
||||
(A
Development Stage Enterprise)
|
||||
BALANCE
SHEET
|
||||
As
of December 31, 2007
|
||||
ASSETS
|
||||
Current
Assets:
|
||||
Cash
|
$
|
76,232
|
||
Prepaid
Expense
|
2,000
|
|||
Total
current assets
|
78,232
|
|||
Equipment,
net of accumulated depreciation of $173
|
5,027
|
|||
TOTAL
ASSETS
|
$
|
83,259
|
||
LIABILITIES
AND STOCKHOLDERS’ EQUITY
|
||||
CURRENT
LIABILITIES
|
||||
Accrued Expense
|
$
|
5,630
|
||
Due
to Affiliate
|
10,000
|
|||
Total
Current Liabilities
|
$
|
15,630
|
||
STOCKHOLDERS’
EQUITY
|
||||
Preferred
Stock - Par value $0.001;
|
||||
Authorized: 10,000,000
|
||||
2,000 issued and outstanding
|
$
|
2
|
||
Common
Stock - Par value $0.001;
|
||||
Authorized: 100,000,000
|
||||
Issued and Outstanding: 67,639,500
|
67,640
|
|||
Additional
Paid-In Capital
|
422,458
|
|||
Accumulated
Deficit during development stage
|
$
|
(422,471
|
)
|
|
Total
Stockholders’ Equity
|
67,629
|
|||
TOTAL
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
$
|
83,259
|
||
MagneGas
Corporation.
|
||||||||||||
(A
Development Stage Enterprise)
|
||||||||||||
STATEMENT
OF OPERATIONS
|
||||||||||||
For
the Years ended December 31, 2007 and 2006
|
||||||||||||
And
for the period December 9, 2005 (date of inception) to December 31,
2007
|
||||||||||||
Inception
to
|
||||||||||||
2007
|
2006
|
12/31/07
|
||||||||||
REVENUE
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
COST
OF SERVICES
|
-
|
-
|
-
|
|||||||||
GROSS
PROFIT OR (LOSS)
|
-
|
-
|
-
|
|||||||||
GENERAL
AND ADMINISTRATIVE EXPENSES
|
420,621
|
1,450
|
|
422,471
|
||||||||
NET
LOSS
|
$
|
(420,621
|
)
|
$
|
(1,450
|
)
|
$
|
(422,471
|
)
|
|||
Loss
per share, basic and diluted
|
$
|
(0.01
|
)
|
$
|
(0.01
|
)
|
$
|
(0.02
|
)
|
|||
Basic
and diluted weighted average number of common shares
outstanding
|
44,165,700
|
100,000
|
22,980,692
|
|||||||||
MagneGas
Corporation
|
||||||||||||||||||||||||||||
(A
Development Stage Enterprise)
|
||||||||||||||||||||||||||||
STATEMENT
OF CHANGES IN STOCKHOLDERS’ EQUITY
|
||||||||||||||||||||||||||||
For
the period December 9, 2005 (date of inception) to December 31,
2007
|
||||||||||||||||||||||||||||
Accumulated
|
||||||||||||||||||||||||||||
Additional
|
Deficit
During
|
|||||||||||||||||||||||||||
Preferred
|
Common
|
Paid
in
|
Development
|
Total
|
||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Stage
|
Equity
|
||||||||||||||||||||||
Stock
issued on acceptance of incorporation expenses,December 9,
2005
|
100,000
|
$
|
100
|
$
|
100
|
|||||||||||||||||||||||
Net
loss
|
(400
|
)
|
(400
|
)
|
||||||||||||||||||||||||
Balance
at December 31, 2005
|
-
|
-
|
100,000
|
100
|
-
|
(400
|
)
|
(300
|
)
|
|||||||||||||||||||
Net
loss
|
(1,450
|
)
|
(1,450
|
)
|
||||||||||||||||||||||||
Balance
at December 31, 2006
|
-
|
-
|
100,000
|
100
|
-
|
(1,850
|
)
|
(1,750
|
)
|
|||||||||||||||||||
Acquisition
of controlling interest, payment of liabilities
|
2,500
|
2,500
|
||||||||||||||||||||||||||
Issuance
of preferred stock to founders, valued at par, April 2,
2007
|
2,000
|
2
|
(2
|
)
|
-
|
|||||||||||||||||||||||
Issuance
of common stock to founders, valued at par, May 12, 2007
|
67,052,000
|
67,052
|
(67,052
|
)
|
-
|
|||||||||||||||||||||||
Issuance
of stock for services, valued at $1 per share, May 12,
2007
|
245,000
|
245
|
244,755
|
245,000
|
||||||||||||||||||||||||
Stock
issued for cash:
|
||||||||||||||||||||||||||||
June 12, 2007; $1 per share
|
30,000
|
30
|
29,970
|
30,000
|
||||||||||||||||||||||||
August
28, 2007; $1 per share
|
13,000
|
13
|
12,987
|
13,000
|
||||||||||||||||||||||||
September 17,2007; $1 per share
|
54,000
|
54
|
53,946
|
54,000
|
||||||||||||||||||||||||
October
11, 2007; $1 per share
|
60,500
|
61
|
60,439
|
60,500
|
||||||||||||||||||||||||
Issuance
of stock for services, valued at $1 per share, October 11,
2007
|
85,000
|
85
|
84,915
|
85,000
|
||||||||||||||||||||||||
Net
loss, through December 31, 2007
|
(420,621
|
)
|
(420,621
|
)
|
||||||||||||||||||||||||
Balance
at December 31, 2007
|
2,000
|
$
|
2
|
67,639,500
|
$
|
67,640
|
$
|
422,458
|
$
|
(422,471
|
)
|
$
|
67,629
|
|||||||||||||||
MagneGas
Corporation
|
||||||||||||
(A
Development Stage Enterprise)
|
||||||||||||
STATEMENTS
OF CASH FLOWS
|
||||||||||||
For
the Years Ended December 31, 2007 and 2006,
|
||||||||||||
And
for the period December 9, 2005 (date of inception) to December 31,
2007
|
||||||||||||
Inception
to Date
|
||||||||||||
2007
|
2006
|
12/31/07
|
||||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||||||||||
Net
loss
|
$
|
(420,621
|
)
|
$
|
(1,450
|
)
|
$
|
(422,471
|
)
|
|||
Adjustments
to reconcile net loss to cash used in operating
activities:
|
||||||||||||
Stock
compensation
|
330,000
|
330,100
|
||||||||||
Depreciation
|
173
|
173
|
||||||||||
Changes
in operating assets:
|
||||||||||||
Increase in
Prepaid Expenses
|
(2,000
|
)
|
(2,000
|
)
|
||||||||
Increase
in Accrued Expenses
|
3,880
|
1,450
|
5,630
|
|||||||||
Total
adjustments to net income
|
332,053
|
1,450
|
333,903
|
|||||||||
Net
cash used in operating activities
|
(88,568
|
)
|
-
|
(88,568
|
)
|
|||||||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||||||||||
Acquisition
of equipment
|
(5,200
|
)
|
-
|
(5,200
|
)
|
|||||||
Net
cash flows used in investing activities
|
(5,200
|
)
|
-
|
(5,200
|
)
|
|||||||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||||||||||
Advance from affiliate
|
10,000
|
10,000
|
||||||||||
Capital
contribution; liability payment at acquisition
|
2,500
|
-
|
2,500
|
|||||||||
Proceeds
from issuance of common stock
|
157,500
|
-
|
157,500
|
|||||||||
Net
cash flows provided by investing activities
|
170,000
|
-
|
170,000
|
|||||||||
Net
increase in cash
|
76,232
|
-
|
76,232
|
|||||||||
Cash
- beginning balance
|
||||||||||||
CASH
BALANCE - END OF PERIOD
|
$
|
76,232
|
$
|
-
|
$
|
76,232
|
||||||
12/31/2007
|
12/31/2006
|
|||||||
Equipment
|
$ | 5,200 | $ | - | ||||
Less
accumulated depreciation and amortization
|
173 | - | ||||||
Property
and equipment, net
|
$ | 5,027 | $ | - |
from
inception
|
||||||||||||
12/31/2007
|
12/31/2006
|
12/31/2007
|
||||||||||
Income
tax provision (benefit) at statutory rate
|
$
|
(143,000
|
)
|
$
|
-
|
$
|
(143,000
|
)
|
||||
Stock
Compensation,
not deductible
|
112,200
|
112,200
|
||||||||||
State
income tax expense (benefit), net of federal benefit
|
(3,300
|
)
|
(3,300
|
)
|
||||||||
Valuation
Allowance
|
34,100
|
34,100
|
||||||||||
$
|
-
|
$
|
-
|
$
|
-
|
|||||||
Net
deferred tax assets and liabilities were comprised of the
following:
|
||||||||||||
Deferred
tax asset (liability):
|
||||||||||||
Capitalized
start-up costs
|
$
|
34,100
|
||||||||||
Valuation
Allowance
|
(34,100
|
)
|
||||||||||
$
|
-
|
|||||||||||
NAME
|
AGE
|
POSITION
|
Dr. Ruggero Maria Santilli
|
72
|
Chairman
Of the Board, Chief Executive Officer
|
Bo Linton
|
37
|
President,
Director
|
Luisa Ingargiola
|
40
|
Chief
Financial Officer, Secretary, Director
|
Carla Santilli
|
67
|
Director
|
Annual
Compensation
|
|||||||||
Name
and Principal Position
|
Year
|
Salary
|
Bonus
|
Stock
Awards
($)
|
Option
Awards
($)
|
Non-Equity Incentive Plan
Compensation ($)
|
Non-Qualified
Deferred Compensation Earnings
($)
|
All
Other Compensation
($)
|
Totals
($)
|
Dr. Ruggero Maria Santilli,
Chairman of the Board(1)
|
|||||||||
2007
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
|
Bo Linton,
President (2)
|
2007
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
Michael Raleigh,
Former President, CEO, CFO, Chairman of the Board, and Secretary (3)
|
2006
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
2007
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
|
Luisa Ingargiola,
CFO (4)
|
2007
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
Carla Santilli,
Director
|
2007
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
$0
|
(1)
|
Dr. Santilli
was appointed as CEO and Chairman of the Board on April 2,
2007.
|
(2)
|
Bo Linton
was appointed as President on April 2, 2007.
|
(3)
|
Mr. Raleigh
served as President and CEO from December 9, 2005 until Mr. Linton’s
and Dr. Santilli’s appointment on April 2, 2007.
|
(4)
|
Luisa Ingargiola
was appointed CFO and Director on May 4,
2007.
|
Title
of Class
|
Name
and Address
of
Beneficial Owner
|
Amount
and Nature
of
Beneficial Owner
|
Percent
of Class
|
Common
Stock
|
Global
Alpha LLC
90
Eastwinds Ct
Palm
Harbor, FL 34683
|
31,000,000
|
46%
|
Common
Stock
|
Global
Beta LLC
90
Eastwinds Ct
Palm
Harbor, FL 34683
|
10,000,000
|
15%
|
Common
Stock
|
Eric
Gregory Holdings, Inc.
502
East John Street
Carson
City, NV 89706
|
10,000,000
|
15%
|
Common
Stock
|
Luisa Ingargiola (1)
4826
Blue Jay Circle
Palm
Harbor FL 34683
|
51,130,000
|
76%
|
Common
Stock
|
Dr. Ruggero Maria Santilli (2)
90
Eastwinds Ct
Palm
Harbor FL 34683
|
130,000
|
*%
|
Common
Stock
|
Carla Santilli (3)
90
Eastwinds Ct
Palm
Harbor FL 34683
|
130,000
|
*%
|
Common
Stock
|
Bo Linton (4)
520
The Village #411
Redondo
Beach, CA. 90277
|
10,000,000
|
15%
|
Common
Stock
|
All
executive officers and directors as a group (4 in number)
|
64,130,000
|
95%
|
(1)
|
Luisa
Ingargiola and Ermanno Santilli’s shares shares are held as
follows: as sole members of Global Alpha LLC, they beneficially own
31,000,000 shares, as sole members of Global Beta they beneficially owns
10,000,000 shares, as shareholders of Clean Energies Tech Co. they
beneficially own 130,000 shares and Luisa Ingargiola owns 10,000,000
shares individually.
|
(2)
|
Dr. Santilli
beneficially owns 130,000 shares as a shareholder of Clean Energies Tech
Co.
|
(3)
|
Carla Santilli
beneficially owns 130,000 shares as a shareholder of Clean Energies Tech
Co.
|
(4)
|
Bo Linton
beneficially owns 10,000,000 shares as the principal of Eric Gregory
Holdings, Inc.
|
(a)
|
Reports on Form 8-K and Form 8K-A - 8K Change in Auditor,
etc.
|
||
|
(b)
|
Exhibits
|
|
Exhibit
Number
|
Exhibit
Title
|
||
3.1
|
Certificate
of Incorporation*
|
||
3.2
|
By-Laws
*
|
||
10.1
|
Licensing
Agreement Addendum
|
||
14
|
Code
of Ethics **
|
||
31.1
|
Certification
of Dr. Ruggero Santilli pursuant to 18 U.S.C. Section 1350 as
adopted pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
||
31.2
|
Certification
of Luisa Ingargiola, pursuant to 18 U.S.C. Section 1350 as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
||
32.1
|
Certification
of Dr. Ruggero Maria Santilli pursuant to 18 U.S.C. Section
1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|
||
32.2
|
Certification
of Luisa Ingargiola, pursuant to 18 U.S.C. Section 1350 as adopted
pursuant to Section 302 of the Sarbanes-Oxley Act of
2002.
|
||
*Incorporated
by reference to Exhibit 3.2 to our registration statement on Form 10-SB
filed on April 3, 2006 (File no: 000-51883)
|
|||
** Incorporated by reference to original Form 10-KSB filed on March 31, 2008 (File no: 000-51883) |
2007
|
$
|
24,761
|
||
2006
|
$
|
1,450
|
||
2005
|
$
|
400
|
MagneGas
Corporation
|
|
By:
|
/s/Dr. Ruggero Maria Santilli
|
Dr. Ruggero Maria Santilli
Chief
Executive Officer
|
|
Dated:
|
August
11, 2008
|