10-Q 1 x11623010q.htm
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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Form 10-Q

(Mark One)

 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2023
  or
     

 

o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from       to  
         

 

Commission File Number 333-188152

 

ZHEN DING RESOURCES INC.
(Exact name of registrant as specified in its charter)

 

Delaware   11-3350926
(State or other jurisdiction of incorporation or organization)   (IRS Employer Identification No.)

 

Suite 1113900 Place De JavaSecond FloorBrossardQuebecCanada J4Y 9C4
(Address of principal executive offices) (Zip Code)

 

438-882-4148
(Registrant’s telephone number, including area code)
 
Suite 205, 353 St. Nicolas, Montreal, Quebec, Canada H2Y 2P1
(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

  x  YES o  NO

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 

  x  YES o  NO

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a small reporting company or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer o Accelerated filer o
Non-accelerated filer o Smaller reporting company x
    Emerging growth company o

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  o

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act) 

  o  YES x  NO

APPLICABLE ONLY TO ISSUERS INVOLVED IN BANKRUPTCY
PROCEEDINGS DURING THE PRECEDING FIVE YEARS

 

Check whether the registrant has filed all documents and reports required to be filed by Sections 12, 13 or 15(d) of the Exchange Act after the distribution of securities under a plan confirmed by a court. 

  o  YES o  NO

APPLICABLE ONLY TO CORPORATE ISSUERS

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

110,737,348 common shares issued and outstanding as of November 16, 2023

 

 

 

   
 

 

ZHEN DING RESOURCES INC.

 

FORM 10-Q

 

TABLE OF CONTENTS

 

Contents

 

PART I - FINANCIAL INFORMATION 3
Item 1.  Unaudited Consolidated Financial Statements 3
Item 2.  Management’s Discussion and Analysis of Financial Condition and Results of Operations 14
Item 3.  Quantitative and Qualitative Disclosures About Market Risk 22
Item 4.  Controls and Procedures 22
PART II - OTHER INFORMATION 22
Item 1. Legal Proceedings 22
Item 1A. Risk Factors 22
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 22
Item 3. Defaults Upon Senior Securities 23
Item 4. Mine Safety Disclosures 23
Item 5. Other Information 23
Item 6. Exhibits 23
SIGNATURES 24

 

   

 

PART I - FINANCIAL INFORMATION

 

Item 1.Unaudited Financial Statements

 

Our unaudited interim financial statements for the nine month period ended September 30, 2023 form part of this quarterly report. They are stated in United States Dollars (US$) and are prepared in accordance with Generally Accepted Accounting Principles in the United States.

 

 3 

 

Zhen Ding Resources Inc.

Condensed Consolidated Balance Sheets

As of September 30, 2023 and December 31, 2022

 

           
   September 30,   December 31, 
  

2023

(Unaudited)

  

2022

(Audited)

 
Assets          
           
Current Assets:          
Cash and cash equivalents  $8,377   $13,708 
Total current assets  $

8,377

   $13,708 
           
Liabilities and Stockholders’ Deficit          
           
Current Liabilities:          
Accounts payable and accrued liabilities  $464,779   $400,755 
Accounts payable and accrued liabilities-related parties   5,540,967    5,555,132 
Deferred revenue   124,299    131,462 
Due to related parties   734,000    776,295 
Short-term debt   154,500    154,500 
Short-term debt-related parties   3,190,468    3,311,209 
Total current liabilities   10,209,013    10,329,353 
           
Stockholders’ deficit          
Common stock, 150,000,000 authorized, $0.0001 par
value, 110,737,348 and 110,411,348 shares issued and outstanding, respectively
   11,074    11,041 
Additional paid-in capital   14,365,129    13,687,082 
Subscriptions receivable   (5,431)   (5,431)
Accumulated other comprehensive income   944,794    557,392 
Accumulated deficit   (22,348,858)   (21,345,909)
Total deficit attributable to Zhen Ding Resources Inc.   (7,033,292)   (7,095,825)
Non-controlling interests   (3,167,344)   (3,219,820)
           
Total Stockholders’ deficit   (10,200,636)   (10,315,645)
           
Total liabilities and Stockholders’ deficit  $

8,377

   $13,708 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 4 

 

Zhen Ding Resources Inc.

Condensed Consolidated Statements of Operations and Comprehensive Loss

For the three and nine months ended September 30, 2023 and 2022

(Unaudited)

 

                     
   Three months ended   Nine months ended 
   September 30, 2023   September 30, 2022   September 30, 2023   September 30, 2022 
Operating expenses:                    
General and administrative   

694,114

    17,945    

734,025

    66,939 
Gain on sale of assets   -    6    -    (267)
                     
Total operating expenses   

694,114

    17,951    

734,025

    66,672 
                     
                     
Operating loss   (694,114)   (17,951)   (734,025)   (66,672)
                     
Other expenses                    
Interest expenses   122,195    125,421    375,384    391,168 
Other income   1    2    (42)   (112)
                     
Total expenses   (816,310)   (143,374)   (1,109,367)   (457,728)
                     
Net loss   (816,310)   (143,374)   (1,109,367)   (457,728)
                     
Loss attributable to non-controlling interests   34,502    36,121    106,418    112,903 
                     
Net loss attributable to Zhen Ding
Resources Inc.
  $(781,808)  $(107,253)  $(1,002,949)  $(344,825)
                     
Basic and diluted loss per common share  $(0.01)  $(0.00)  $(0.01)  $(0.00)
                     
Basic and diluted weighted average number
of common shares outstanding
   110,546,000    110,411,348    110,456,725    110,411,348 
                     
Comprehensive loss:                    
Net loss  $(816,310)  $(143,374)  $(1,109,367)  $(457,728)
Other comprehensive income (loss):                    
Foreign currency translation adjustments   56,854    584,091    546,296    1,087,137 
Total comprehensive income (loss)   (759,456)   440,717    

(563,071

)   629,409 
Comprehensive income (loss) attributable to non-controlling interest   17,446    (139,111)   52,476   (213,248)
Comprehensive income (loss) attributable to Zhen Ding Resources Inc.  $(742,010)  $301,606   $

(510,595

)  $416,161 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 5 

 

Zhen Ding Resources Inc.

Condensed Consolidated Statements of Cash Flows

For the nine months ended September 30, 2023 and 2022

(Unaudited) 

 

           
   September 30,   September 30, 
   2023   2022 
Cash flows from operating activities          
Net loss  $(1,109,367)  $(457,728)
Adjustments to reconcile net loss to net cash used in operating activities          
Stock based compensation   

678,080

    - 

Changes in assets and liabilities

          
Accounts payable and accrued liabilities   

80,397

    (44,914)
Accounts payable and accrued liabilities-related parties   

285,377

    406,333 
Net cash used in operating activities   (65,513)   (96,309)
           
Cash flows from financing activities          
Proceeds from borrowings on short-term debt – related parties   

53,850

    40,103 
Net cash provided by financing activities   

53,850

    40,103 
           
Foreign currency translation   

6,332

   37,136 
           
Net change in cash   (5,331)   (19,070)
           
Cash and cash equivalents - beginning of the period   13,708    29,782 
           
Cash and cash equivalents - end of the period  $8,377   $10,712 
           
Supplemental cash flow information:          
Cash paid for interest  $-   $- 
Cash paid for income tax  $-   $- 

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 6 

 

Zhen Ding Resources Inc.

Condensed Consolidated Statement of Stockholders’ Deficit

For the nine months ended September, 2023 and 2022

(Unaudited)

                                         
   Common Stock   Additional Paid
in
   Subscriptions   Accumulated
Other
Comprehensive
   Accumulated   Non-
controlling
   Total
Stockholders'
 
   Shares   Par   Capital   Receivable   Income   Deficit   Interest   Deficit 
                                 
Balances, December 31, 2022  $110,411,348    11,041   $13,687,082   $(5,431)  $557,392   $(21,345,909)  $(3,219,820)  $(10,315,645)
Stock based compensation   

326,000

    33    

678,047

    -    -    -    -    

678,080

 
Foreign currency translation
adjustment
   -    -    -    -    387,402    -    158,894    546,296 
Net loss   -    -    -    -    -    (1,002,949)   (106,418)   (1,109,367)
                                         
Balances, September 30, 2023  $110,737,348    11,074   $

14,365,129

   $(5,431)  $944,794   $(22,348,858)  $(3,167,344)  $(10,200,636)

 

 

 

   Common Stock   Additional Paid
in
   Subscriptions   Accumulated
Other
Comprehensive
   Accumulated   Non-
controlling
   Total
Stockholders'
 
   Shares   Par   Capital   Receivable   Income   Deficit   Interest   Deficit 
                                 
Balances, December 31, 2021  $110,411,348    11,041   $13,687,082   $(5,431)  $7,272   $(20,910,525)  $(3,307,682)  $(10,518,243)
Foreign currency translation
adjustment
   -    -    -    -    760,986    -    326,151    1,087,137 
Net loss  $-    -    -    -    -    (344,825)   (112,903)   (457,728)
                                         
Balances, September 30, 2022   110,411,348    11,041   $13,687,082   $(5,431)  $768,258   $(21,255,350)  $(3,094,434)  $(9,888,834)

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 7 

 

Zhen Ding Resources Inc.

Condensed Consolidated Statement of Stockholders’ Deficit

For the three months ended September 30, 2023 and 2022

(Unaudited)

 

   Common Stock   Additional Paid
in
   Subscriptions   Accumulated
Other
Comprehensive
   Accumulated   Non-
controlling
   Total
Stockholders'
 
   Shares   Par   Capital   Receivable   Income   Deficit   Interest   Deficit 
                                 
Balances, June 30, 2023  $110,411,348    11,041   $13,687,082   $(5,431)  $904,996   $(21,567,050)  $(3,149,898)  $(10,119,260)
Stock based compensation   

326,000

    33    

678,047

    -    -    -    -    

678,080

 
Foreign currency translation
adjustment
   -    -    -    -    39,798    -    17,056    56,854 
Net loss  $-    -    -    -    -    (781,808)   (34,502)   (816,310)
                                         
Balances, September 30, 2023   110,737,348    11,074   $

14,365,129

   $(5,431)  $944,794   $(22,348,858)  $(3,167,344)  $(10,200,636)

 

 

 

   Common Stock   Additional Paid
in
   Subscriptions   Accumulated
Other
Comprehensive
   Accumulated   Non-
controlling
   Total
Stockholders'
 
   Shares   Par   Capital   Receivable   Income   Deficit   Interest   Deficit 
                                 
Balances, June 30, 2022  $110,411,348    11,041   $13,687,082   $(5,431)  $359,399   $(21,148,097)  $(3,233,545)  $(10,329,551)
Foreign currency translation
adjustment
   -    -    -    -    408,859    -    175,232    584,091 
Net loss   -    -    -    -    -    (107,253)   (36,121)   (143,374)
                                         
Balances, September 30, 2022  $110,411,348    11,041   $13,687,082   $(5,431)  $768,258   $(21,255,350)  $(3,094,434)  $(9,888,834)

 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.

 

 8 

 

Zhen Ding Resources Inc.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

 

Note 1.  Description of Business

 

Zhen Ding Resources Inc. (formerly Robotech Inc.) (the “Company”, “Zhen Ding DE”, or “ZDRI”) was incorporated in the State of Delaware in September 1996 and began its business activities in the development and marketing of specialized technological equipment. In early 2010, the business direction of our Company was changed to seek opportunities to focus particularly on searching for companies engaged in the mining of gold, silver and copper.

 

The Company indirectly owns 70% of a Chinese Joint Venture entity, Zhen Ding Mining Co. Ltd. (“Zhen Ding JV” or “JXZD”). This indirect ownership is through a 100% ownership of a California company Z&W, Zhen Ding Corporation (“Z&W CA”).

 

Our Company, through Z&W CA, participates in a joint venture with Jing Xian Xinzhou Gold Co., Ltd. (“Xinzhou Gold”), a company organized under the laws of the People’s Republic of China (“PRC”). The joint venture company, JXZD, is 70% held by our Company through Z&W CA who has the mineral exploration, mineral mining and gold mining rights to a property located in the southwestern part of Anhui province in China, near the town of Jing Xian. Xinzhou Gold, the other 30% partner of JXZD is the actual named owner of the various licenses used by JXZD and transferred all rights emanating from these licenses as part of the joint venture agreement between Z&W CA and Xinzhou Gold. Our Company’s primary activity, through JXZD, is ore processing and production in China.

 

In 2017, the Company shut down its mineral processing plant in China due to insufficient working capital. The Company had limited operations and plans to resume selling processed ore concentrate as soon as possible to provide Zhen Ding JV the cash flow needed to keep its plant operating and to maintain a viable work force for future expansion.

 

Note 2. Summary of Significant Accounting Policies

 

The summary of significant accounting policies presented below is designed to assist in understanding the Company’s financial statements. Such financial statements and accompanying notes are the representations of the Company’s management, which is responsible for the integrity and objectivity. These accounting policies conform to accounting principles generally accepted in the United States of America (“U.S. GAAP”) in all material respects and have been consistently applied in preparing the accompanying financial statements.

 

Basis of Presentation and Principles of Consolidation

 

These unaudited condensed consolidated financial statements have been prepared in accordance with rules and regulations of the Securities and Exchange Commission (“SEC”) and generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information and with the instructions to Regulation S-X. Accordingly, the unaudited condensed consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, the Company has included all adjustments considered necessary for a fair presentation and such adjustments are of a normal recurring nature. These unaudited condensed consolidated financial statements should be read in conjunction with the condensed consolidated financial statements for the year ended December 31, 2022 and notes thereto. The results of operations for the nine months ended September 30, 2023, are not necessarily indicative of the results to be expected for the full fiscal year ended December 31, 2023

 

The condensed consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries Z&W CA and its majority owned subsidiary JXZD. All inter-company transactions and balances were eliminated. The portion of the income applicable to non-controlling interests in subsidiary undertakings is reflected in the condensed consolidated statements of operations.

 

Reclassifications

 

Certain prior year amounts have been reclassified to conform to the current period presentation. These reclassifications had no impact on net earnings (loss) or and financial position.

 

Use of Estimates and Assumptions

 

The Company prepares its financial statements in conformity with U.S. GAAP, which requires management to make 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 revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

 9 

 

Foreign Currency Adjustments

 

Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the year. Any translation adjustments are reflected as a separate component of stockholders’ equity (deficit) and have no effect on current earnings. Gains and losses resulting from foreign currency transactions are included in current results of operations. During the periods ended September 30, 2023 and 2022, the Company had aggregate foreign currency translation gains (loss) of $546,296 and $1,087,137, respectively.

 

Income Taxes

 

An asset and liability approach is used for financial accounting and reporting for income taxes. Deferred income taxes arise from temporary differences between income tax and financial reporting and principally relate to recognition of revenue and expenses in different periods for financial and tax accounting purposes and are measured using currently enacted tax rates and laws. In addition, a deferred tax asset can be generated by net operating loss carry forwards. If it is more likely than not that some portion or all of a deferred tax asset will not be realized, a valuation allowance is recognized. The Company has tax losses that may be applied against future taxable income. The potential tax benefit arising from these loss carryforwards are offset by a valuation allowance due to uncertainty of profitable operations in the future.

 

The Company follows the FASB guidance for how uncertain tax positions should be recognized, measured and presented in the financial statements. This requires the evaluation of tax positions taken or expected be taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained “when challenged” or “when examined” by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense and liability in the current year. Management has evaluated the Company’s tax positions and concluded that the Company has taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance as of September 30, 2023. The Company is not currently under audit by any tax jurisdiction.

 

Stock-Based Compensation

 

We account for stock-based compensation under the fair value method which requires all such compensation to employees, including the grant of employee stock options, to be calculated based on its fair value at the measurement date (generally the grant date), and recognized in the condensed consolidated statement of operations over the requisite service period.

 

Fair Values of Financial Instruments

 

Management believes that the carrying amounts of the Company’s financial instruments, consisting primarily of cash, due to related parties, short term debt and short term debt – related parties, approximated their fair values as of September 30, 2023 and December 31, 2022, due to their short-term nature.

 

Non-controlling Interests

 

Non-controlling interests in the Company’s subsidiaries are reported as a component of equity, separate from the parent’s equity. Purchase or sale of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the minority interest are included in our condensed consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, if any, will be reported at fair value with any gain or loss recognized in earnings.

 

 Basic and Diluted Earnings (Loss) Per Common Share

 

The basic net loss per common share is computed by dividing the net loss by the weighted average number of common shares outstanding. Diluted net loss per common share is computed by dividing the net loss adjusted on an “as converted” basis, by the weighted average number of common shares outstanding plus potential dilutive securities. For all periods presented, there were no potentially dilutive securities outstanding. 

 

 

 10 

 

Recently Issued Accounting Pronouncements

 

In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with “Conversion and Other Options” and ASC subtopic 815-40 “Hedging—Contracts in Entity’s Own Equity”. The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting; and, (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The Company adopted January 1, 2022and there is no impact on the condensed consolidated financial statements.

 

In March 2022, the FASB issued ASU 2022-02, ASC Subtopic 326 “Credit Losses”: Troubled Debt Restructurings and Vintage Disclosures. Since the issuance of Accounting Standards Update No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, the Board has provided resources to monitor and assist stakeholders with the implementation of Topic 326. Post-Implementation Review (PIR) activities have included forming a Credit Losses Transition Resource Group, conducting outreach with stakeholders of all types, developing educational materials and staff question-and-answer guidance, conducting educational workshops, and performing an archival review of financial reports. ASU No. 2022-02 is effective for annual and interim periods beginning after December 15, 2022. The Company does not expect the standard to have a significant impact on its financial statements.

 

The Company has considered all other recently issued accounting pronouncements and does not believe the adoption of such pronouncements will have a material impact on its condensed consolidated financial statements.

 

Note 3. Going Concern

 

These financial statements have been prepared on a going concern basis, which implies the Company will continue to meet its obligations and continue its operations for the next twelve months. As of September 30, 2023, the Company had accumulated losses of $22,348,858 since inception and had a working capital deficit of $10,200,636. These factors raise substantial doubt regarding the Company’s ability to continue as a going concern. The continuation of the Company as a going concern is dependent upon financial support from its stockholders, the ability of the Company to obtain necessary equity financing to continue operations, and the attainment of profitable operations. Realization value may be substantially different from carrying values as shown and these financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.

 

Note 4. Short-Term Debt

 

The following table represents the details of the short-term debts at September 30, 2023 and December 31, 2022:

 

                 
Issuance date  Maturity   Interest Rate  09.30.2023   12.31.2022 
October 2, 2019  October 1, 2020   1% per month  $10,000   $10,000 
January 15, 2020  January 15, 2021   1% per month   22,000    22,000 
April 16, 2020  April 15, 2021   1% per month   13,500    13,500 
July 2, 2020  July 1, 2021   1% per month   18,500    18,500 
October 23, 2020  October 22, 2021   1% per month   6,500    6,500 
January 5, 2021  January 15, 2022   1% per month   22,500    22,500 
March 10, 2021  March 10, 2022   1% per month   20,000    20,000 
July 13, 2021  July 13,2022   1% per month   16,500    16,500 
December 14, 2021  December 14, 2022   1% per month   25,000    25,000 
          $154,500   $154,500 

 

According to the loan agreements, there is not any additional interest and penalty for the loans passing maturity date.

 

During the nine months ended September 30, 2023 and 2022, the Company recorded interest expense of $375,384 and $391,168, respectively and is included in interest expense in the condensed consolidated statements of operations. For the three months ended September 30, 2023 and 2022, the Company recorded interest expense of $122,195 and $125,421 respectively.

 

 11 

 

Note 5. Related Party Transactions

 

Accounts payable

 

As of September 30, 2023 and December 31, 2022, the Company had payables of $734,000 and $776,295, respectively, to Xinzhou Gold. These payables bear no interest, are unsecured and are due on demand.

 

Short-term debt

 

As of September 30, 2023 and December 31, 2022, the Company had short-term debts to related parties of $3,190,468 and $3,311,209, respectively. The details of the loans are described as below.

 

 At September 30, 2023:

 

                   
Name  Relationship to the Company  Amount   Interest Rate   Start Date  Maturity
Short-term debt                   
Wei De Gang  CEO & Legal person of JXZD  $2,437,651    15%  May 31, 2011  May 31, 2014
Zhao Yan Ling  Former office manager of JXZD, wife of Zhou Zhi Bin   14,396    15%  January 1, 2011  December 31, 2013
Zhou Zhi Bin  Former CEO & Legal person of JXZD   6,855    15%  January 1, 2011  December 31, 2013
Tang Yong Hong  Manager of JXZD   295,508    15%  February 28, 2015  February 28, 2016
Yan Chun Yan  Accountant of JXZD   8,226    15%  August 31, 2014  August 31, 2015
Victor Sun  Shareholder of ZDRI   50,282        January 1, 2011  On Demand
Victor Sun  Shareholder of ZDRI   12,000    15%  April 25, 2022  May 2, 2023
Victor Sun  Shareholder of ZDRI   13,000    15%  May 2, 2022  May 2, 2023
Victor Sun  Shareholder of ZDRI   12,000    15%  July 12, 2022  July 12, 2023
Victor Sun  Shareholder of ZDRI   12,500    15%  December 6, 2022  December 05, 2023
Victor Sun  Shareholder of ZDRI   13,500    15%  January 11, 2023  January 11, 2024
Victor Sun  Shareholder of ZDRI   14,500    15%  April 03, 2023  April 03, 2024
Victor Sun  Shareholder of ZDRI   13,850    15%  June 07, 2023  June 06, 2024
Victor Sun  Shareholder of ZDRI   12,000    15%  July 10, 2023  July 10, 2024
                    
Current portion of long-term debt                
Zhou Qiang  Office manager of JXZD   274,200    15%  December 18, 2012  December 18, 2015
Total     $3,190,468            

 

At December 31, 2022:

 

Name  Relationship to the Company  Amount   Interest Rate   Start Date  Maturity
Short-term debt                   
Wei De Gang  CEO & Legal person of JXZD  $2,578,114    15%  May 31, 2011  May 31, 2014
Zhao Yan Ling  Former office manager of JXZD, wife of Zhou Zhi Bin   15,225    15%  January 1, 2011  December 31, 2013
Zhou Zhi Bin  Former CEO & Legal person of JXZD   7,250    15%  January 1, 2011  December 31, 2013
Tang Yong Hong  Manager of JXZD   312,536    15%  February 28, 2015  February 28, 2016
Yan Chun Yan  Accountant of JXZD   8,302    15%  August 31, 2014  August 31, 2015
Victor Sun  Shareholder of ZDRI   50,282        January 1, 2011  On Demand
Victor Sun  Shareholder of ZDRI   12,000    15%  April 25, 2022  May 2, 2023
Victor Sun  Shareholder of ZDRI   13,000    15%  May 2, 2022  May 2, 2023
Victor Sun  Shareholder of ZDRI   12,000    15%  July 12, 2022  July 12, 2023
Victor Sun  Shareholder of ZDRI   12,500    15%  December 6, 2022  December 5, 2023
                    
Current portion of long-term debt                
Zhou Qiang  Office manager of JXZD   290,000    15%  December 18, 2012  December 18, 2015
Total     $3,311,209            

 

 12 

 

As of September 30, 2023 and December 31, 2022, the Company had accrued interest payable to the related parties of $5,540,967 and $5,555,132, respectively. For the periods ended September 30, 2023 and 2022, the Company recorded interest expense of $375,384 and $391,168, respectively. The Company has received no demands for repayment of matured debt instruments.

 

Note 6. Accounts Payable and Accrued Liabilities

 

As of September 30, 2023 and December 31, 2022, the Company had accounts payable of $179,964 and $184,684 respectively. As of September 30, 2023 and December 31, 2022 the Company had accrued liabilities of $284,815 and $216,072.

 

Note 7. Issuance of Common Stock

 

On August 23, 2023 the Company issued 326,000 common shares for discretionary bonuses during the three months ended September 30, 2023.

 

Note 8. Deferred Revenues

 

As of September 30, 2023 and December 31, 2022, the Company had deferred revenue of $124,299 and $131,462 related to receipts of payment for unprocessed ore from Xinzhou Gold Co. Ltd, respectively, related to advances that the Company received from its customers. The Company has received no demands for repayment of deferred revenues.

  

Note 9. Contingencies

 

Concentration of Credit Risk

Substantially all of the Company’s bank accounts are in banks located in The People’s Republic of China and are not covered by protection similar to that provided by the FDIC on funds held in United States banks.

 

Note 10. COVID-19

 

On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency in response to a new strain of a coronavirus (the “COVID-19 outbreak”). In March 2020, the WHO classified the COVID-19 outbreak as a pandemic based on the rapid increase in exposure globally. The full impact of the COVID-19 outbreak continues to evolve as of the date of this report .Management is actively monitoring the global situation and its effects on the Company’s industry, financial condition, liquidity, and operations. Given the daily evolution of the COVID-19 outbreak and the global responses to curb its spread, the Company is not able to estimate the effects of the COVID-19 outbreak on its results of operations, financial condition, or liquidity for fiscal year 2020.However, if the pandemic continues, it may have a material adverse effect on the Company’s results of future operations, financial position, and liquidity in fiscal year 2023.

 

Note 11. Subsequent Events

 

The Company does not have any events subsequent to September 30, 2023 through November 16, 2023, the date the financial statements were issued for disclosure consideration.

 

 13 

 

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

FORWARD LOOKING STATEMENTS

 

This quarterly report contains forward-looking statements. These statements relate to future events or our future financial performance. In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

 

Our unaudited financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles. The following discussion should be read in conjunction with our financial statements and the related notes that appear elsewhere in this quarterly report. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those discussed below and elsewhere in this quarterly report.

 

Our financial statements are stated in United States Dollars (US$) and are prepared in accordance with United States Generally Accepted Accounting Principles.

 

In this quarterly report, unless otherwise specified, all dollar amounts are expressed in United States dollars and all references to “common shares” refer to the common shares in our capital stock.

 

As used in this quarterly report, the terms “we”, “us”, “our” and “our company” mean Zhen Ding Resources Inc., unless otherwise indicated.

 

General Overview

 

We are engaged in seeking business partnership opportunities with companies that are in the field of exploration and extraction of precious and/or base metals, primarily in China, which are in need of funding and improved management.  We would provide the necessary management expertise and assist in financing efforts of these mining operations.  In exchange, we would acquire metal ores produced by these mines, process the ores in our ore milling plant, and sell the ore concentrates to metal refineries.  Our only operating company is Zhen Ding JV, which engages in the processing of metal ore and the selling of ore concentrates of gold, silver, lead, zinc and copper at purity levels ranging from 65% to 80%.  Zhen Ding JV purchases metal ore in rock form from its joint venture partner, Xinzhou Gold, which has rights to explore and mine ore from a property located in the southwestern part of Anhui province in China.

 

Our Corporate History and Structure

 

Our principal office is located at Suite 111, 3900 Place De Java, Second Floor, Brossard, Quebec, Canada J4Y 9C4.  The offices, located in a suburb of Montreal, are leased by verbal agreement, on a month-to-month basis, from Immeubles Wing Kei Inc. at $500 per month, due and payable at each calendar quarter end. The occupancy began October 15, 2018.

 

 14 

 

Our operational offices are located at:  Zhen Ding Mining Co. Ltd., Wuxi County, Town of Langqiao, Jing Xian, Anhui Province, China, Tel: 86-6270-9018.

 

We were incorporated in September 1996 as Robotech Inc., and began our business in the development and marketing of specialized technological equipment. At that time we estimated that we would require approximately $6,000,000 to realize our plans. Through the year of 2003, we had not reached our financing goals and therefore abandoned that particular business plan. Since that time, we have been seeking suitable candidates for acquisition.

 

In the previous decade there was been a worldwide recovery in the price and interest in precious metals, minerals and industrial commodities. Such interest was fueled to a large degree by the economic awakening of the two most populous nations, China and India, and further bolstered by a sharp decline in the US dollar. A particular beneficiary of this revival was the market prices of gold, silver and copper. Thus, in early 2010, the business direction of our company changed to seek to profit from this revival, and we began to focus our acquisition search in that industry, particularly on companies engaged in the mining of gold, silver and copper.

 

In January 2012, our Board of Directors, with authorization from a majority of our shareholders, made an offer to the shareholders of Zhen Ding Resources Inc., a Nevada corporation (“Zhen Ding NV”), to acquire, at the very least, the majority of their common shares, and, if available, up to 100% ownership.

 

Zhen Ding NV through its wholly owned subsidiary, Z&W Zhen Ding Corporation, a California corporation (“Zhen Ding CA”), has been engaged in a joint venture with Jing Xian Xinzhou Gold Co., Ltd. (“Xinzhou Gold”), a company organized under the laws of the People’s Republic of China (“PRC”). The joint venture company, Zhen Ding Mining Co. Ltd. (“Zhen Ding JV”) is 70% held by Zhen Ding NV through Zhen Ding CA.  It is a common practice in China to append the name of the town or city where an enterprise is located to its legally incorporated name. Thus many documents referencing Zhen Ding JV may refer to it as Jing Xian Zhen Ding Mining Co. Ltd. Zhen Ding JV engages in the processing of metal ore and the selling of ore concentrates of gold, silver, lead, zinc and copper at purity levels ranging from 65% to 80%.  Zhen Ding JV purchases metal ore in rock form from Xinzhou Gold.

On March 8, 2012, we changed our name from Robotech, Inc. to Zhen Ding Resources Inc., in anticipation of the acquisition of Zhen Ding NV. Our trading symbol, RBTK, however remained unchanged.

 

During 2012, a total of 50,746,358 shares of the issued and outstanding common stock of Zhen Ding NV were tendered to our company. On August 13, 2013, an additional 13,100,000 shares were tendered to us. Thus, as of August 13, 2013 the shareholders of Zhen Ding NV had tendered 100% of the issued and outstanding shares of common stock, representing 100% of the issued and outstanding equity of Zhen Ding NV to us.

 

On October 23, 2013, we issued 122,440 shares of our common stock, on a one-for-one basis, to the tendering shareholders of Zhen Ding NV making Zhen Ding NV a wholly owned subsidiary of our company.

 

On October 28, 2013, we dissolved Zhen Ding NV by merging it with and into Zhen Ding DE.  As a result, Zhen Ding CA became a wholly-owned subsidiary of Zhen Ding DE.  Zhen Ding CA continues to exist as an intermediate holding company with no operations of its own, but which in turn owns our 70% interest in Zhen Ding JV.

 

 15 

 

The following illustrates our corporate and share ownership structure:

 

 

 

 16 

 

Our Current Business

 

Background and Historical Business

 

We conduct our operations exclusively through Zhen Ding JV, our majority-owned joint venture company. However, we continue to look for other attractive potential acquisition targets in the mining industry.

 

Our joint venture, Zhen Ding JV, is equipped to process ore mined by our joint venture partner Xinzhou Gold when in operation.  During operation, Zhen Ding JV purchases the ore in rock form from Xinzhou Gold and processes the ore into our final product, which is a gold, silver, lead, zinc and copper ore concentrate. We estimate that our processed product is 65% to 80% pure. The product is then sold to refineries, which further purify and separate the concentrate.  Zhen Ding JV also arranges all exploration, mining process and operations, and financial and administrative support for Xinzhou Gold’s mine, known as the Wuxi Gold Mine.

 

We have historically purchased all of our raw material from Xinzhou Gold for our ore processing operation, and have relied solely on Xinzhou Gold for our supply of ores. The veins most recently excavated by Xinzhou Gold in the permitted areas of our mines are very low grade and, as such, the production was minimal. The higher yielding and therefore more profitable veins in the area of our processing plant run outside Xinzhou Gold’s former mining area boundaries. Xinzhou Gold applied for an extension of the permitted mining area, however, the application was rejected by the government in December 2016 due to Xinzhou Gold’s insufficient working capital.

 

At the beginning of fiscal 2015, we idled our mineral processing plant due to an overall downturn in the demand and market prices for our concentrates. This downturn coincided with an overall economic recession in China and downturn in the global commodities market during fiscal 2015 through 2016. Our plant has subsequently remained idle, and Xinzhou Gold’s prospecting and mining licenses have lapsed.

 

Due to our continued inability to raise sufficient financing to expand Xinzhou Gold’s mining permit, Xinzhou Gold elected to reapply for a new drilling permit based on a scaled-down drilling plan. The resulting new permit application, which was submitted to the Anhui Province Land & Resources Bureau for approval on March 8, 2017, sought renewed permission to continue drilling in the areas directly adjacent to our concentration plant. That application was subsequently rejected due to environmental concerns regarding wastewater runoff onto nearby agricultural lands. Accordingly, during the last six months of fiscal 2019, the Company was primarily devoted to refining its environmental impact compliance proposal and design in consultation with government officials. A new proposal and design for a tailing pond treatment facility was submitted to the environmental protection authorities on June 30, 2019.

 

During the fall of 2019, the Zhen Ding JV received feedback from the Land & Resource Bureau regarding its June 30, 2019 proposal and design submission. The authorities requested certain improvements to the tailing pond and wastewater treatment facility on the proposed drilling site as a condition of granting any new drilling permit. Zhen Ding JV subsequently retained a new environmental expert to re-design the tailing pond treatment facility. The new design would employ automated pumping systems to optimize water transfer while lowering both cost and risk. The design affords immediate control of pressure and flowrate, as well as real-time monitoring of pump speed, flowrate, inlet/outlet water pressures, water temperature, engine performance, and engine fuel level. The improved water treatment design report was submitted to the government in December 2019 with an estimated budget of approximately $1.75 million over two years. The Company expected a ruling on the new proposal in March 2020, however the ruling was delayed due to COVID-19 containment measures in Anhui province which resulted in reduced staffing and operations across all levels of the public service. More recently, the Company was advised that no ruling would be provided on the proposal without additional 3rd party geo-technical research to support the viability of the Company’s design. The estimated cost of such additional research is $500,000.

 

Recent Activities

 

Since December 2022, our joint venture has partnered with the Guangzhou Institute of Geophysical Chemistry, a branch of the Chinese Academy of Sciences, and the 217 Institute of Geology in Anhui Province to carry out preliminary prospecting, research, and planning activities in preparation for an application to renew mining and processing permits. Students and faculty of the Chinese Academy of Sciences provide theoretical support and analysis, while the 271 Nuclear Engineering Company has carried out exploration project mapping and design. Xinzhou Gold has also engaged environmental consultants to laisse with The Environmental Protection Bureau of Jingxian County, Anhui Province regarding the renewal of our environmental licenses and permits.

   

Financing and Restructuring Efforts

 

During fiscal 2019 our management entered into negotiations with various related party lenders regarding a possible restructuring or conversion of related party debt. Effective December 14, 2020, we issued an aggregate of 46,442,550 shares of our common stock to ten lenders at the price of $0.02 per share in consideration for the cancellation of $928,851 of interest bearing debt payable on demand to the lenders in respect of cash advances made by them to the Company.

 

 17 

 

Since idling our mineral processing plant, we have intermittently sought an investment of between $3,000,000 and $4,000,000, which we believe is required to resume our ore extraction and refinery activities. However, as at the date of this report we have not successfully secured any financing commitment. Due to the gradual recovery in global commodities markets during the fall of 2023, including the market for precious metals, we intend to resume our search to identify sources of equity financing required to complete permitting and resumption of our mineral extraction and refining operations. Meanwhile, our management has continued to identify and evaluate businesses opportunities and other strategic transactions with a view to diversifying our business and creating shareholder value.

 

Results of Operations

 

Three Months Ended September 30, 2023 compared to the Three Months Ended September 30, 2022

 

We had a net loss of $816,310 from operations for the three month period ended September 30, 2023, compared to net loss of $143,374 from operations for the three month period ended September 30, 2022, due to issuance of stock based compensation during the period.  

 

The following table summarizes key items of comparison and their related increase (decrease) for the three month periods ended September 30, 2023 and 2022:

 

   Three Months
Ended
September 30,
2023
   Three Months
Ended
September 30,
2022
  

Percentage Increase
(Decrease) From
Three Month Period
Ended
September 30, 2022 to

Three Month Period
Ended September 30,
2023

 
General and administrative  $

694,114

   $17,945    (3,102)%
Gain on sale of assets   -    6    - 
Other (Income) Expense   1    2    (50)%
Interest expense   122,195    125,421    (2.57)%
Net loss  $816,310   $143,374    (386)%

 

Nine Months Ended September 30, 2023 compared to the Nine Months Ended September, 2022

 

We did not earn any revenues in the nine months ended September 30, 2023 or September 30, 2022. Our lack of revenue was due to the continued idling of our mineral processing operations and our inability to secure a renewed permit or financing to resume our mining activities.

 

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We had a net loss of $1,109,367 for the nine month period ended September 30, 2023, which was 142% more than the net loss of $457,728 for the nine month period ended September 30, 2022.  The change in our results over the two periods is a result of stock based compensation issued in the period.

 

The following table summarizes key items of comparison and their related increase (decrease) for the nine month periods ended September 30, 2023 and 2022:

 

   Nine Months
Ended
September 30,
2023
   Nine Months
Ended
September 30,
2022
  

Percentage Increase
(Decrease) From
Nine Month Period
Ended
September 30, 2022 to
Nine Month Period
Ended

September 30, 2023

 
General and administrative  $

734,025

   $66,939    

997

%
Other (Income) Expense   (42)   (112)   62.5%
Interest expense   375,384    391,168    (4.04)%
Net loss  $1,109,367   $457,728    142%

 

 Liquidity and Capital Resources

 

Our balance sheet as of September 30, 2023 reflects current assets of $8,377 and a working capital deficit of $10,200,636. Our current assets consisted entirely of cash. We have insufficient working capital to carry out our stated plan of operation for the next twelve months.

 

Working Capital

 

   At
September 30,
2023
   At
December 31,
2022
 
Current assets  $

8,377

   $13,708 
Current liabilities   10,209,013    10,329,353 
Working capital (deficit)  $(10,200,636)  $(10,315,645)

 

As of September 30, 2023, we had an accumulated deficit of $22,348,858 since our inception. We anticipate generating losses and, therefore, may be unable to continue operations further in the future.

 

Cash Flows

 

   Nine Months Ended 
   September 30, 
   2023   2022 

Net cash (used in) operating activities

  $

(65,513

)  $(96,309)

Net cash provided by financing activities

   

53,850

    40,103 
Foreign currency translation   6,332   37,136 
Net change in cash during period  $(5,331)  $(19,070)

 

Operating Activities

 

Net cash used in operating activities during the nine months ended September 30, 2023 was $65,513, a 32% decrease from the $96,309 net cash outflow during the nine months ended September 30, 2022. The decrease was a result of stock based compensation expense an increase in accounts payable and accrued liabilities owed to related parties and non-related parties. During the nine months ended September 30, 2023 we had no sales and did not purchase any raw materials.

 

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Financing Activities

 

Cash provided by financing activities during the nine months ended September 30, 2023 was $53,850, which was a 34.28% increase from the $40,103 in cash provided by financing activities during the nine months ended September 30, 2022. The increase in cash provided was a result of an increase in related party loans during the fiscal 2023.

 

Plan of Operation

 

Our operating plan for the 12 months beginning October 1, 2023 is as follows:

  

Our operating plan for the balance of fiscal 2023 is to seek an investment of approximately US$3,350,000, which we believe is required to restart our mineral processing plant in China and extend Xinzhou Gold’s mining permit, which would allow us to resume our ore extraction and refinery activities, although we have not secured any financing commitment thus far.

  

The funds raised would be used to:

 

1.upgrade tailings pond and water treatment facility;
2.extend and expand permitted mining area of Xinzhou Gold to access higher concentrate ore veins;
3.resume ore exploration and extraction activities;
4.re-start the mill;
5.re-test the mill;
6.develop expansion plans for our plant capacity;
7.drill additional holes near the concentration plant; and
8.undertake at least three deep drill holes in the permitted area to re-commence greater milling operations as soon as possible.

 

This will involve re-testing the plant equipment and re-hiring all personnel that was laid off as a result of the mining halt. We will reactively seek partnerships with mining enterprises primarily active in the gold, silver and/or copper fields and subject to the general parameters described earlier to increase our supply of raw material. In addition, we will look for a partner in the natural resources field in order to enhance our future capability to access necessary funding and seek other businesses opportunities and other strategic transactions with a view toward diversifying our business and attracting new investment.

 

In order to execute our business plan over the next twelve months we expect to expend funds as follows:

 

Estimated Net Expenditures During the Next Twelve Months

 

    $  
Restart mill and mining related operations     3,000,000  
General, Administrative Expenses     100,000  
Consulting & Permit Fees     150,000  
Misc     100,000  
         
         
Total     3,350,000  

 

In light of our nominal cash resources, we expect that we will be required to raise approximately $3,500,000 in order to execute our proposed business plan during fiscal 2023.  In the event that we are unable to raise sufficient funds to carry out our planned investment in drilling equipment and our planned exploration program, we anticipate that we will require a minimum of $350,000 to maintain our current business operations without engaging in any significant exploration activities or investment. We have suffered recurring losses from operations. The continuation of our company is dependent upon our company attaining and maintaining profitable operations and raising additional capital as needed.

 

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The continuation of our business is dependent upon obtaining further financing, a successful program of exploration and/or development, and, finally, achieving a profitable level of operations. The issuance of additional equity securities by us could result in a significant dilution in the equity interests of our current stockholders. Obtaining commercial loans, assuming those loans would be available, will increase our liabilities and future cash commitments.

 

There are no assurances that we will be able to obtain further funds required for our continued operations. As noted herein, we are pursuing various financing alternatives to meet our immediate and long-term financial requirements. There can be no assurance that additional financing will be available to us when needed or, if available, that it can be obtained on commercially reasonable terms. If we are not able to obtain the additional financing on a timely basis, we will be unable to conduct our operations as planned, and we will not be able to meet our other obligations as they become due. In such event, we will be forced to scale down or perhaps even cease our operations. We are not aware of any known trends, demands, commitments, events or uncertainties that will result in or that are reasonably likely to result in our liquidity increasing or decreasing in any material way.

 

Future Financings

 

We anticipate continuing to rely on equity sales of our common stock in order to continue to fund our business operations. Issuances of additional shares will result in dilution to our existing stockholders. There is no assurance that we will achieve any additional sales of our equity securities or arrange for debt or other financing to fund our planned business activities.

  

We presently do not have any arrangements for additional financing for the expansion of our exploration operations, and no potential lines of credit or sources of financing are currently available for the purpose of proceeding with our plan of operations.

 

Off-Balance Sheet Arrangements

 

We have no off-balance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, and capital expenditures or capital resources that are material to stockholders.

 

Critical Accounting Policies

 

Use of Estimates and Assumptions

 

The Company prepares its financial statements in conformity with U.S. GAAP, which requires management to make 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 revenues and expenses during the reporting period. Actual results could differ from those estimates.

 

Foreign Currency Adjustments

 

Assets and liabilities recorded in foreign currencies are translated at the exchange rate on the balance sheet date. Revenue and expenses are translated at average rates of exchange prevailing during the year. Any translation adjustments are reflected as a separate component of stockholders’ equity (deficit) and have no effect on current earnings. Gains and losses resulting from foreign currency transactions are included in current results of operations. During the periods ended September 30, 2023 and 2022, the Company had aggregate foreign currency translation gains (loss) of $546,296 and $1,087,137, respectively.

 

Non-controlling Interests

 

Non-controlling interests in the Company’s subsidiaries are reported as a component of equity, separate from the Company’s equity. Purchase or sale of equity interests that do not result in a change of control are accounted for as equity transactions. Results of operations attributable to the minority interest are included in our condensed consolidated results of operations and, upon loss of control, the interest sold, as well as interest retained, if any, will be reported at fair value with any gain or loss recognized in earnings.

 

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Revenue Recognition

 

Revenue is recognized when products are shipped, title and risk of loss is passed to the customers and collection is reasonably assured. Payments received prior to the satisfaction of above criteria are deferred.

 

Item 3.Quantitative and Qualitative Disclosures About Market Risk

 

As a “smaller reporting company”, we are not required to provide the information required by this Item.

 

Item 4.Controls and Procedures

 

Management’s Report on Disclosure Controls and Procedures

 

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in our reports filed under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and that such information is accumulated and communicated to our management, including our president (our principal executive officer) and our chief financial officer (our principal financial officer and principal accounting officer) to allow for timely decisions regarding required disclosure.

  

As of the end of the quarter covered by this report, we carried out an evaluation, under the supervision and with the participation of our president (our principal executive officer) and our chief financial officer (our principal financial officer and principal accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures. Based on the foregoing, our management concluded that our internal controls are not effective due to us having material weaknesses in our control environment and financial reporting process due to lack of a functioning audit committee, a majority of independent members and a majority of outside directors on our Board of Directors, resulting in ineffective oversight in the establishment and monitoring of required internal control and procedures.

 

Changes in Internal Control Over Financial Reporting

 

During the period covered by this report there were no changes in our internal control over financial reporting that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

 

PART II - OTHER INFORMATION

 

Item 1.Legal Proceedings

 

We know of no material, existing or pending legal proceedings against our company, nor are we involved as a plaintiff in any material proceeding or pending litigation. There are no proceedings in which any of our directors, executive officers or affiliates, or any registered or beneficial stockholder, is an adverse party or has a material interest adverse to our interest.

 

Item 1A.Risk Factors

 

As a “smaller reporting company”, we are not required to provide the information required by this Item.

 

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds

 

None.

 

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Item 3.Defaults Upon Senior Securities

 

None.

 

Item 4.Mine Safety Disclosures

 

Not applicable.

 

Item 5.Other Information

 

None.

 

Item 6.Exhibits

 

Exhibit 
Number
  Description
(3)   Articles of Incorporation and Bylaws
3.1   Articles of Incorporation filed with the Secretary of State of the State of Delaware on September 6, 1996 (Incorporated by reference to our Registration Statement on Form S-1 filed January 6, 2014)
3.2   Bylaws (Incorporated by reference to our Registration Statement on Form S-1 filed January 6, 2014)
3.3   Certificate of Amendment of Certificate of Incorporation filed with the Secretary of State of the State of Delaware on November 4, 1996 (Incorporated by reference to our Registration Statement on Form S-1 filed January 6, 2014)
3.4   Certificate of Amendment of Certificate of Incorporation filed with the Secretary of State of the State of Delaware on February 28, 2012 (Incorporated by reference to our Registration Statement on Form S-1 filed January 6, 2014)
3.5   Certificate of Amendment of Certificate of Incorporation filed with the Secretary of State of the State of Delaware on March 20, 2012 (Incorporated by reference to our Registration Statement on Form S-1 filed January 6, 2014)
3.6   Certificate of Ownership and Merger filed with the Secretary of State of the State of Delaware on October 28, 2013 (Incorporated by reference to our Registration Statement on Form S-1 filed January 6, 2014)
(10)   Material Contracts
10.1   The Contract for Sino-Foreign Equity Joint Venture dated as of November 12, 2004 by and between Zhen Ding Corporation and Jing Xiang Xin Zhou Gold Co. Ltd. (Incorporated by reference to our Registration Statement on Form S-1 filed January 6, 2014)
10.2   Articles of Association for Zhen Ding JV dated as of October 12, 2006 by and between Z&W Zhen Ding Corporation and Jing Xiang Xin Zhou Gold Co. Ltd. (Incorporated by reference to our Registration Statement on Form S-1/A filed on February 13, 2015)
10.3   Supply Contract of Gold Concentrate Fines dated July 20, 2012 between Zhen Ding Mining Co., Ltd. and Yantai Jin Ao Metallurgical Co. Ltd. (Incorporated by reference to our Registration Statement on Form S-1/A filed on February 13, 2015)
10.4   Mining License No. C3400002009114110049341 dated November 5, 2014 in favor of Jing Xiang Xin Zhou Gold Co. Ltd.  (Incorporated by reference to our Registration Statement on Form S-1/A filed on February 13, 2015)
10.5   Gold Mining License No. (2005) 042 in favor of Jing Xiang Xin Zhou Gold Co. Ltd. (Incorporated by reference to our Registration Statement on Form S-1/A filed on February 13, 2015)
10.6   Form of Loan Agreements between Wen Mei Tu and Zhen Ding Resources Inc. (Incorporated by reference to our Registration Statement on Form S-1/A filed on February 13, 2015)
10.7   Business License Registration No. 3425004000003061(1-1) dated November 17, 2014 in favor of Zhen Ding Mining Co. Ltd.  (Incorporated by reference to our Registration Statement on Form S-1/A filed June 9, 2015)
(31)   Rule 13a-14 (d)/15d-14d) Certifications
31.1*   Section 302 Certification by the Principal Executive Officer
(32)   Section 1350 Certifications
32.1*   Section 906 Certification by the Principal Executive Officer
101*   Interactive Data File
101.INS   XBRL Instance Document
101.SCH   XBRL Taxonomy Extension Schema Document
101.CAL   XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF   XBRL Taxonomy Extension Definition Linkbase Document
101.LAB   XBRL Taxonomy Extension Label Linkbase Document
101.PRE   XBRL Taxonomy Extension Presentation Linkbase Document

 

*Filed herewith.

 

 23 

 

SIGNATURES

 

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  ZHEN DING RESOURCES INC.
  (Registrant)
   
   
Dated: November 16, 2023 /s/Victor Sun
  Victor Sun
  President, Treasurer, Secretary and Director
  (Principal Executive Officer, Principal Financial Officer
and Principal Accounting Officer)

 

 

24