UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
 
FORM 10-QSB
 
(x)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: September 30, 2006

(  )
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from _______________ to _______________
 
Commission File number              0-11695            
 
APEX RESOURCES GROUP, INC.
(Exact name of registrant as specified in charter)

UTAH
87-0403828
(State or other jurisdiction of incorporation or organization)
(I.R.S. Employer Identification No.)
   
299 S. Main Street, Suite 1300, Salt Lake City, Utah
84111
(Address of principal executive offices)
(Zip Code
   
(801) 534-4450
Registrant’s telephone number, including area code

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) Yes [x]  No [ ] and (2) has been subject to such filing requirements for the past 90 days. Yes [x]  No [ ]

State the number of shares outstanding of each of the registrant’s classes of common equity, as of the latest practicable date.

Common stock, par value $.001; 92,625,212 shares outstanding as of November 10, 2006.



 

INDEX

   
Page
Number
     
PART I.
  
3
     
ITEM 1.
Financial Statements (unaudited)
3
     
 
Balance Sheet
September 30, 2006, and June 30, 2006
4
     
 
Statements of Operations
Three Months Ended September 30, 2006 and 2005 and the Period from inception (January 27, 1984) to September 30, 2006
5
     
 
Statement of Cash Flows
Three Months Ended September 30, 2006 and 2005 and the Period from Inception (January 27, 1984) to September 30, 2006
6
     
 
Notes to Financial Statements
7
     
ITEM 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
12
     
ITEM 3.
Controls and Procedures
16
     
PART II
  
17
     
ITEM 6.
Exhibits
18
     
 
Signatures
18

 
 
 

 
2

PART I - FINANCIAL INFORMATION



This filing contains certain forward-looking statements. For this purpose any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Without limiting the foregoing, words such as “may,” “will,” “expect,” “believe,” anticipate,” “estimate” or “continue” or comparable terminology are intended to identify forward-looking statements. These statements by their nature involve substantial risks and uncertainty, and actual results may differ materially depending on a variety of factors, many of which are not within the Company’s control. These factors include but are not limited to economic conditions generally and in the industries in which the Company and its customers participate; competition within the Company’s industry, including competition from much larger competitors; technological advances which could render the Company’s products less competitive or obsolete; and changes in laws and regulation that effect the Company.

ITEM 1. FINANCIAL STATEMENTS

The accompanying balance sheet of Apex Resources Group, Inc., (development stage company) at September 30, 2006 and June 30, 2005, the statements of operations for the three months ended September 30, 2006 and 2005 and the period from inception (January 27, 1984) to September 30, 2006 and statements of cash flows for the three months ended September, 2006 and 2005 and the period from inception (January 27, 1984) to September 30, 2006, have been prepared by the Company’s management in conformity with accounting principles generally accepted in the United States of America. In the opinion of management, all adjustments considered necessary for a fair presentation of the results of operations and financial position have been included and all such adjustments are of a normal recurring nature.

Operating results for the quarter ended September 30, 2006, are not necessarily indicative of the results that can be expected for the year ending June 30, 2007.
 
 
 
 

 

3
 
APEX RESOURCES GROUP, INC.
(DEVELOPMENT STAGE COMPANY)
BALANCE SHEET

   
September 30, 2006
  
June 30,
2006
  
CURRENT ASSETS
          
Cash
    
43,036
    
6,775
  
Total Current Assets
    
43,036
    
6,775
  
               
PROPERTY AND EQUIPMENT - net of accumulated
              
Depreciation
    
114,511
    
167,005
  
               
OTHER ASSETS
              
Accounts receivable - affiliates
    
59,010
    
70,210
  
Oil leases
    
67,913
    
67,913
  
Available for sale securities
    
2,428
    
2,428
  
Land
   
89,845
    
92,679
  
     
219,196
    
233,230
  
               
Total Assets
    
376,743
    
407,010
  
               
LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
              
               
CURRENT LIABILITIES
              
Accounts payable
    
86,096
    
74,718
  
Note Payable - Land
    
-
    
-
  
Accounts payable - related parties
    
313,694
    
807,686
  
Total Current Liabilities
    
399,790
    
882,404
  
               
STOCKHOLDERS' (DEFICIT) EQUITY
              
               
Common stock 400,000,000 shares authorized, at $.001 par value; 98,559,753 issued and outstanding
    
98,560
    
92,625
  
Capital in excess of par value
    
11,456,182
    
10,983,235
  
Less stock subscriptions receivable
    
(2,427,000
)
  
(2,427,000
)
Deficit accumulated during the development stage
    
(9,150,789
)
  
(9,124,254
)
Total Stockholders' (Deficit) Equity
    
(23,047
)
  
(475,394
)
               
TOTAL LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY
    
376,743
    
407,010
  

See accompanying notes to the financial statements


4
 
APEX RESOURCES GROUP, INC.
(DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS

   
September 30,
  
Jan. 27, 1984 (date of inception of development stage) to September 30,
 
   
2006
  
2005
  
2006
  
               
REVENUES
              
Other non-operating income
  
$
650
  
$
2,497
  
$
368,793
  
                     
EXPENSES
                    
Exploration, development and administrative - Note 7
    
71,313
    
118,497
    
10,735,563
  
Depreciation
    
5,328
    
6,000
    
177,430
  
                     
Total operating expenses
   
76,641
    
124,497
    
10,912,993
  
                     
NET (LOSS) - before other income (expense)
    
(75,991
)
  
(122,000
)
  
(10,544,200
)
                     
Gain on sale of assets
    
50,028
    
-
    
1,420,337
  
Loss on land foreclosure
    
-
    
-
    
(1,744
)
Interest expense
    
(572
)
  
-
    
(25,182
)
                     
NET (LOSS)
    
(26,535
)
  
(122,000
)
  
(9,150,789
)
                     
Basic net (loss) per common share
  
$
(0.00
)
$
(0.00
)
      
                     
Weighted average shares outstanding
    
104,844,195
   
92,625,212