(formerly CINTEL CORP. AND SUBSIDIARY)
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
Note 1 – Basis of Presentation
The accompanying unaudited condensed consolidated financial statements of Chun Can Capital Group (formerly Cintel Corp.) (the
"Company") have been prepared in accordance with U.S. generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, these condensed
consolidated financial statements do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In management's opinion, the accompanying unaudited
condensed consolidated financial statements contain all adjustments (consisting only of normal recurring adjustments), necessary to state fairly the financial information included herein.
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management
to make judgments, estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results may differ materially from these estimates. In addition, any changes in these
estimates or their related assumptions could have a materially adverse effect on the Company's operating results.
Where the functional currency of the Company's foreign subsidiaries is the local currency, all assets and liabilities are
translated into U.S. dollars, using the exchange rate on the consolidated balance sheet date, and revenues and expenses are translated at average rates prevailing during the period. Accounts and transactions denominated in
foreign currencies have been re-measured into functional currencies before translated into U.S. dollars. Foreign currency transaction gains and losses are included as a component of other income and expense. Gains and losses
from foreign currency translation are included as a separate component of comprehensive income.
These unaudited condensed consolidated financial statements include the accounts of Cintel Corp. and its wholly-owned
subsidiary. All intercompany accounts and transactions have been eliminated in consolidation. While the Company believes that the disclosures are adequate to make the information not misleading, these condensed consolidated
financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company's Annual Report on Form 10-K for the year ended December 31, 2011.
The Company's financial statements are presented on a going concern basis, which contemplates the realization of assets and
satisfaction of liabilities in the normal course of business. The Company is a non-operating shell company which has experienced recurring operating losses and has.an accumulated deficit. These conditions raise uncertainty about
the Company's ability to continue as a going concern for a period of one year from the issuance of these financial statements.
The Company's ability to continue as a going concern is contingent upon its ability to secure additional financing, increase
sales of its product and attain profitable operations. It is the intent of management to continue to raise additional funds to sustain operations and to pursue acquisitions of operating companies in order to generate future
profits for the Company. Although the Company plans to pursue additional equity financing, there can be no assurance that the Company will be able to secure financing when needed or obtain such on terms satisfactory to the
Company, if at all.
The accompanying financial statements do not include any adjustments relating to the recoverability and classification of
asset carrying amounts or the amount and classification of liabilities that might result from the outcome of this uncertainty.
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