The accompanying notes are an integral
part of these unaudited financial statements.
The accompanying
notes are an integral part of these unaudited financial statements.
The accompanying
notes are an integral part of these unaudited financial statements.
NOTES
TO FINANCIAL STATEMENTS
MARCH
31,
2018
(UNAUDITED)
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
Flagship Global Corporation was incorporated
in the State of Nevada, United States of America, on October 17, 2007 under the name Nevada Legacy Enterprises Corporation. Our
fiscal year end is December 31. On February 4, 2010, we changed our name to NL One Corporation. On June 27, 2016, we changed our
name to Flagship Global Corporation.
The accompanying unaudited interim financial
statements of the Company have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission,
or the SEC, including the instructions to Form 10-Q and Regulation SX. In the opinion of the management of the Company, all adjustments,
which are of a normal recurring nature, necessary for a fair statement of the financial position as of March 31, 2018, and the
results of operations and cash flows for the three month periods ended March 31, 2018 and 2017. Results for the interim periods
presented are not necessarily indicative of the results that might be expected for the entire fiscal year ending December 31, 2018.
When used in these notes, the terms "Company", "we", "us" or "our" mean the Company. Certain
information and note disclosure normally included in financial statements prepared in accordance with generally accepted accounting
principles in the United States of America has been omitted from these interim financial statements pursuant to such accounting
principles and, accordingly, they do not include all the information and notes necessary for comprehensive interim financial statements
and should be read in conjunction with our audited financial statements for the year ended December 31, 2017.
NOTE 2 - GOING CONCERN
The Company's interim unaudited financial
statements are prepared using accounting principles generally accepted in the United States of America applicable to a going concern
that contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has not
established any source of revenue to cover its operating costs. These conditions raise substantial doubt about the Company's ability
to continue as a going concern. Company will engage in very limited activities without incurring any liabilities that must be satisfied
in cash until a source of funding is secured. The Company will offer noncash consideration and seek equity lines as a means of
financing its operations. If the Company is unable to obtain revenue producing contracts or financing or if the revenue or financing
it does obtain is insufficient to cover any operating losses it may incur, it may substantially curtail or terminate its operations
or seek other business opportunities through strategic alliances, acquisitions or other arrangements that may dilute the interests
of existing stockholders.
The financial statements do not include any
adjustments that might be necessary if the Company is unable to continue as a going concern.
NOTE 3 - SHORT TERM BORROWINGS
For the three months ended March 31, 2018
and 2017, operating expenses in the amount of $17,730 and $9,670 were paid on behalf of the Company by two individuals and four
individuals, respectively. The total amount due to these individuals was $53,801 and $36,071 as of March 31, 2018 and December
31, 2017, respectively. These loans are noninterest bearing, unsecured, and due on demand.
NOTE 4 - RELATED PARTY TRANSACTIONS
For the three months ended March
31, 2018 and 2017, Frontier Limited, LLC, a company owned by our former shareholder, Thomas DeNunzio, provided consulting services
in the amount of $3,500 and $3,500, respectively. As of March 31, 2018 and December 31, 2017, the total amount due to Frontier
Limited, LLC was $3,500 and $3,500, respectively.
For the three months ended March 31, 2018, the Company
utilized the home office space of the sold officer and director Gary Richard Brown at no charge.
NOTE 5 – SUBSEQUENT EVENTS
On March 23, 2018, the Company signed an agreement
that superseded all prior agreements to purchase a 57.5% interest in GEM Holdings Limited ("GEM"). GEM is in the business
of currently mining high grade metallurgical coal in Virginia. Pursuant to the agreement, the Company will issue an aggregate of
101,759,583 new shares of common stock to the shareholders of GEM in consideration for the acquisition of the initial interest
in GEM. On May 10, 2018, the Company completed the transaction with the shares unissued. The shares have not been issued as of
the filing date.
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