CAM Group, Inc.

We had net loss of $79,478 and $135,042 for the three months ended March 31, 2015 and 2014, respectively, primarily attributable to expenses incurred for daily operations since no revenues were generated during the periods.

During the three months ended March 31, 2015, the Company had interest income of $50,015 in connection with a loan advance to a related party. The loan advance to the related party was due on January 14, 2015 with interest at a rate of 4% per annum, which was collected in full during the second quarter of 2015. 

Cash flows provided by operating activities were $1,566,319 for the three months ended March 31, 2015, compared to cash flows of $114,410 used in operating activities for the same period ended March 31, 2014. Positive cash flows from operations during the three months ended March 31, 2015 were due primarily to the collection of accounts receivable in amount of $1,641,999, which was related to the fertilizer sales to the third party in 2014. Negative cash flows from operations in the first quarter of 2014 were due primarily to the net loss of $135,042, partially offset by the increase in accounts payable and accrued expenses of $14,828.

Cash flows used in investing activities were $49,910 and $5,171,512 during the three months ended March 31, 2015 and 2014, respectively. There was a loan advance to Parko (Hong Kong) Limited (“Parko”), Hebei AMP’s business affiliate for $5,171,512 during the three months ended March 31, 2014, which was due on January 14, 2015 with interest at a rate of 4% per annum. Negative cash flow of $49,910 during the three months ended March 31, 2015 was due to the interest receivable in connection with Parko loan advance. Both principal and accrued interest receivable of this loan was collected in full during the second quarter of 2015.

Cash flows provided by financing activities were $117,979 and $105,535 during the three months ended March 31, 2015 and 2014, respectively. Positive cash flows from financing activities during the three months ended March 31, 2015 were due primarily to proceeds from the shareholder loan and related party’s loan in amount of $111,717 and $6,262, respectively, which were $103,526 and $2,009, respectively, during the three months ended March 31, 2014. Both shareholder loan and related party’s loan bear zero interest and due on demand.