MONTANA
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82-0369233
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(State
or other jurisdiction of incorporation)
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(IRS
Employer Identification Number)
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2500
City West Boulevard, Suite 300, Houston, Texas
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77042
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(Address
of principal executive offices)
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(Zip
Code)
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Large
accelerated filer
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o
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Accelerated
filer
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o
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Non-accelerated
filer
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o
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Smaller
reporting company
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x
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(Do
not check if smaller reporting company
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Page
No.
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Item
1.
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Financial
Statements
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Consolidated
Balance Sheets – September 30, 2009 (Unaudited) and December 31,
2008
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3
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Unaudited
Consolidated Statements of Operations-Three and Nine Months
Ended September 30, 2009 and 2008
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4
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Unaudited
Consolidated Statement of Changes in Stockholders’ Deficit – Period Ended
September 30, 2009
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5
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Unaudited
Consolidated Statements of Cash Flows - Nine Months Ended September 30,
2009 and 2008
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6
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Notes
to Unaudited Consolidated Financial Statements
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7
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Item
2.
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Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
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10
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Item
3.
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Quantitative
and Qualitative Disclosures About Market Risks
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12
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Item
4T.
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Controls
and Procedures
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12
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PART
II OTHER INFORMATION
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||
Item
1.
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Legal
Proceedings
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12
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Item
2.
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Unregistered
Sales of Equity Securities and Use of Proceeds
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12
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Item
3.
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Defaults
Upon Senior Securities
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13
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Item
4.
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Submission
of Matters to a Vote of Security Holders
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13
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Item
5.
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Other
Information
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13
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Item
6.
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Exhibits
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13
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Signatures
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17
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September
30,
2009
(Unaudited) |
December
31,
2008
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|||||||
ASSETS
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||||||||
Cash
in bank
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$
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162,212
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$
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30,228
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||||
Accounts
receivable
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91,581
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81,472
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||||||
Note
receivable – current portion
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61,921
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60,094
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||||||
Prepaid
assets
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264
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5,702
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||||||
Total
current assets
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315,978
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177,496
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||||||
Fixed
assets, net of accumulated depreciation of $25,824 and $26,758,
respectively
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35,201
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62,793
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||||||
Goodwill
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1,559,240
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1,559,240
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||||||
Notes
receivable – long term
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840,300
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847,096
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||||||
Other
assets
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375,208
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375,208
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||||||
Total
non-current assets
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2,809,949
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2,844,337
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||||||
TOTAL
ASSETS
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$
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3,125,927
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$
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3,021,833
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||||
LIABILITIES
AND STOCKHOLDERS’ DEFICIT
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||||||||
Accounts
payable
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$
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605,287
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$
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702,753
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||||
Accrued
liabilities
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222,019
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133,521
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||||||
Accrued
liabilities – related party
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1,008,472
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766,214
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||||||
Notes
payable – current portion
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291,399
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397,751
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||||||
Interest
payable
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472,500
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360,000
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||||||
Deferred
gain - current portion
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391,272
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391,278
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||||||
Total
current liabilities
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2,990,949
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2,751,517
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||||||
Deferred
gain – long term
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1,173,842
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1,467,295
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||||||
Notes
payable – long term
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1,524,496
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1,554,813
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||||||
TOTAL
LIABILITIES
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5,689,287
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5,773,625
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||||||
STOCKHOLDERS’
DEFICIT
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||||||||
Preferred
stock, $0.001 par value, 20,000,000 shares authorized,
no
shares outstanding
|
-
|
-
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||||||
Capital
stock, $0.001 par value, 500,000,000 shares authorized,
93,260,579
and 83,260,579 shares issued and outstanding at
September
30, 2009 and December 31, 2008, respectively
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93,260
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83,260
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||||||
Additional
paid in capital
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13,527,242
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13,306,247
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||||||
Retained
deficit
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(16,183,862
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)
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(16,141,299
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)
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||||
Total
stockholders’ deficit
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(2,563,360
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)
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(2,751,792
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)
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||||
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|
|||||||
TOTAL
LIABILITIES AND STOCKHOLDERS’ DEFICIT
|
$
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3,125,927
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$
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3,021,833
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ADINO
ENERGY CORPORATION
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|||||||
Consolidated
Statements of Operations
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|||||||
FOR
THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2009 AND
2008
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|||||||
(Unaudited)
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Three
months ended
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Nine
months ended
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|||||||||||||||
September
30,
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September
30,
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September
30,
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September
30,
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|||||||||||||
2009
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2008
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2009
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2008
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|||||||||||||
(Restated)
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(Restated)
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|||||||||||||||
REVENUES
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||||||||||||||||
Revenues
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$ | 533,998 | $ | 494,059 | $ | 1,524,985 | $ | 1,504,499 | ||||||||
OPERATING
EXPENSES
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||||||||||||||||
Cost
of product sales
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100,374 | 89,787 | 355,868 | 297,844 | ||||||||||||
Terminal
management
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99,990 | 107,500 | 300,990 | 318,500 | ||||||||||||
General
and administrative
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129,245 | 36,868 | 396,034 | 110,771 | ||||||||||||
Legal
and professional
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36,992 | 114,569 | 129,102 | 235,284 | ||||||||||||
Consulting
fees
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127,058 | 171,725 | 599,239 | 393,727 | ||||||||||||
Repairs
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419 | 65 | 602 | 5,994 | ||||||||||||
Depreciation
expense
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2,542 | 59,967 | 9,629 | 179,445 | ||||||||||||
Operating
supplies
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4,406 | 3,407 | 7,656 | 8,264 | ||||||||||||
Total
operating expenses
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501,026 | 583,888 | 1,799,120 | 1,549,829 | ||||||||||||
OPERATING
INCOME (LOSS)
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32,972 | (89,829 | ) | (274,135 | ) | (45,330 | ) | |||||||||
OTHER
INCOME AND EXPENSES
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||||||||||||||||
Interest
income
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16,923 | 18,894 | 49,141 | 56,698 | ||||||||||||
Interest
expense
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(42,391 | ) | (190,517 | ) | (124,828 | ) | (493,478 | ) | ||||||||
Gain
(loss) from stock valuation
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- | (279,212 | ) | - | (64,072 | ) | ||||||||||
Gain
from lawsuit / lease settlement
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97,819 | 24,673 | 301,355 | 74,019 | ||||||||||||
Other
income
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3,700 | - | 5,904 | - | ||||||||||||
Total
other income and expense
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76,051 | (426,162 | ) | 231,572 | (426,833 | ) | ||||||||||
NET
INCOME (LOSS)
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$ | 109,023 | $ | (515,991 | ) | $ | (42,563 | ) | $ | (472,163 | ) | |||||
Net
income (loss) per share, basic and fully diluted
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$ | 0.00 | $ | (0.01 | ) | $ | (0.00 | ) | $ | (0.01 | ) | |||||
Weighted
average shares outstanding
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93,260,579 | 72,777,010 | 89,879,627 | 60,647,489 |
ADINO
ENERGY CORPORATION
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||||||||
Consolidated
Statement of Changes in Stockholders' Equity (Deficit)
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||||||||
FOR
THE PERIOD ENDED SEPTEMBER 30, 2009
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||||||||
(Unaudited)
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Additional
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||||||||||||||||||||
Paid
in
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Retained
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|||||||||||||||||||
Shares
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Amount
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Capital
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Deficit
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Total
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||||||||||||||||
Balance
December 31, 2008
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83,260,579 | $ | 83,260 | $ | 13,306,247 | $ | (16,141,299 | ) | $ | (2,751,792 | ) | |||||||||
Shares
issued for services - officers
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3,500,000 | 3,500 | 49,000 | - | 52,500 | |||||||||||||||
Shares
issued for services
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1,000,000 | 1,000 | 18,000 | - | 19,000 | |||||||||||||||
Options
issued for services
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- | - | 21,995 | - | 21,995 | |||||||||||||||
Shares
issued for lawsuit settlement
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5,500,000 | 5,500 | 132,000 | - | 137,500 | |||||||||||||||
Net
loss
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- | - | - | (42,563 | ) | (42,563 | ) | |||||||||||||
Balance
September 30, 2009
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93,260,579 | $ | 93,260 | $ | 13,527,242 | $ | (16,183,862 | ) | $ | (2,563,360 | ) |
ADINO
ENERGY CORPORATION
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||||||
Consolidated
Statements of Cash Flows
|
||||||
FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 2009 AND 2008
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||||||
(Unaudited)
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Nine
Months
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Nine
Months
|
|||||||
Ended
|
Ended
|
|||||||
September
30, 2009
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September
30, 2008
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|||||||
(Restated)
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||||||||
CASH
FLOWS FROM OPERATING ACTIVITIES:
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||||||||
Net
loss
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$ | (42,563 | ) | $ | (472,163 | ) | ||
Adjustments
to reconcile net loss to net cash provided by operating
activities:
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||||||||
Depreciation
and amortization
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9,629 | 179,445 | ||||||
Options
issued for services
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21,995 | 39,003 | ||||||
Stock
based compensation
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52,500 | - | ||||||
Shares
issued for services
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19,000 | - | ||||||
Amortization
of note receivable discount
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(39,876 | ) | - | |||||
Change
in stock payable valuation
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- | 64,072 | ||||||
Gain
from lawsuit / lease settlement
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(301,355 | ) | (74,019 | ) | ||||
Gain
on asset disposal
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(2,204 | ) | - | |||||
Change
in operating assets and liabilities:
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||||||||
Accounts
receivable
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(10,109 | ) | (87,949 | ) | ||||
Inventory
|
- | (5,913 | ) | |||||
Other
assets
|
5,438 | (55,228 | ) | |||||
Accounts
payable and accrued liabilities
|
391,186 | 218,936 | ||||||
Lease
obligation
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- | 216,737 | ||||||
Net
cash provided by operating activities
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103,641 | 22,921 | ||||||
CASH
FLOWS FROM INVESTING ACTIVITIES:
|
||||||||
Purchases
of equipment
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(10,264 | ) | (58,640 | ) | ||||
Principal
payments on note receivable
|
44,845 | - | ||||||
Net
cash provided by (used in) investing activities
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34,581 | (58,640 | ) | |||||
CASH
FLOWS FROM FINANCING ACTIVITIES:
|
||||||||
Borrowings
on note payable-related party
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- | 10,500 | ||||||
Principal
payments on note payable
|
(6,238 | ) | (13,270 | ) | ||||
Net
cash used in financing activities
|
(6,238 | ) | (2,770 | ) | ||||
Net
change in cash and cash equivalents
|
131,984 | (38,489 | ) | |||||
Cash
and cash equivalents, beginning of period
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30,228 | 91,264 | ||||||
Cash
and cash equivalents, end of period
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$ | 162,212 | $ | 52,775 | ||||
Cash
paid for:
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||||||||
Interest
|
$ | 12,378 | $ | 14,148 | ||||
Income
taxes
|
- | - |
September
30, 2009
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December
31, 2008
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|||||||
Sundlun,
net of unamortized discount
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$
|
621,095
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$
|
581,219
|
||||
Fuel
Streamers
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281,126
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325,971
|
||||||
Total
notes receivable
|
902,221
|
907,190
|
||||||
Less: current
portion
|
(61,921
|
)
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(60,094
|
)
|
||||
Total
long-term notes receivable
|
$
|
840,300
|
$
|
847,096
|
September
30, 2009
|
December
31, 2008
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|||||||
Accrued
accounting and legal fees
|
127,467
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126,362
|
||||||
Accrued
property taxes and other
|
17,794
|
-
|
||||||
Due
to officers
|
19,500
|
-
|
||||||
Customer
deposit
|
35,000
|
-
|
||||||
Deferred
lease liability
|
22,258
|
7,159
|
||||||
Total
accrued liabilities
|
$
|
222,019
|
$
|
133,521
|
||||
|
|
|||||||
Accrued
salaries-related party
|
$
|
1,008,472
|
$
|
766,214
|
Three
Months
|
Three
Months
|
Nine
Months
|
Nine
Months
|
|||||||||||||||||||||||||||||
Ended
|
Ended
|
Ended
|
Ended
|
|||||||||||||||||||||||||||||
September
30,
2009 |
%
|
September
30,
2008 |
%
|
September
30,
2009 |
%
|
September
30,
2008 |
%
|
|||||||||||||||||||||||||
Customer
A
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$ | 53,550 | 9 | $ | 53,550 | 10 | $ | 160,650 | 10 | $ | 189,780 | 11 | ||||||||||||||||||||
Customer
B
|
$ | 48,906 | 9 | $ | 159,269 | 30 | $ | 308,103 | 20 | $ | 561,243 | 33 | ||||||||||||||||||||
Customer
C
|
$ | 219,744 | 39 | $ | 200,412 | 37 | $ | 545,693 | 35 | $ | 517,637 | 31 | ||||||||||||||||||||
Customer
D
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$ | 116,023 | 20 | $ | 115,811 | 22 | $ | 347,325 | 22 | $ | 401,227 | 24 | ||||||||||||||||||||
Customer
E
|
$ | 90,000 | 16 | $ | - | - | $ | 90,000 | 6 | $ | - | - |
3.1
|
Articles
of Incorporation (incorporated by reference to our Form 10-K filed on
March 18, 2009)
|
3.2
|
By-Laws
of Golden Maple Mining and Leaching Company, Inc. (now Adino Energy
Corporation) (incorporated by reference to our Form 10-K filed on March
18, 2009)
|
10.1
|
Contract
with Metropolitan Transit Authority of Harris County, Texas (incorporated
by reference to our Form 10-K filed on March 18,
2009)
|
10.2
|
Lease
with Lone Star Fuel Storage and Transfer, LLC (incorporated by reference
to our Form 10-K filed on March 18,
2009)
|
10.3
|
Terminal
Management Agreement with Summit Terminaling LLC (incorporated by
reference to our Form 10-Q filed on May 15,
2009)
|
10.4
|
Resolution
of the Board of Directors of February 20, 2009* (incorporated by reference
to our Form 10-Q filed on August 7,
2009)
|
10.5
|
Resolution
of the Board of Directors of March 26, 2009* (incorporated by reference to
our Form 10-Q filed on August 7,
2009)
|
14
|
Code
of Business Conduct and Ethics (incorporated by reference to our Form 10-K
filed on March 18, 2009)
|
31.1
|
Certification of Chief Executive Officer pursuant to Rule
15d-14(a) of the Exchange Act
|
31.2
|
Certification
of Chief Financial Officer pursuant to Rule 15d-14(a) of the Exchange
Act
|
32.1
|
Certification
of Chief Executive Officer 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 Chief Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
ADINO ENERGY CORPORATION | |||
|
By:
|
/s/ Timothy G. Byrd, Sr. | |
Timothy G. Byrd, Sr. | |||
Chief Executive Officer, Chief FinancialOfficer, and Director | |||