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 SECURITES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1999
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( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
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Commission File number 0-25493
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ACCORD VENTURES INC.
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(Exact name of registrant as specified in charter)
Nevada 98-019-9141
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(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
Suite 1 - 1224 Avenue Road
Toronto, Ontario, Canada M5N 2G6
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(Address of principal executive offices) (Zip Code)
1 - 416-703-5888
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Registrant's telephone number, including area code
(Former name, address, and fiscal year, if changed since last report)
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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 ( ) has been
subject to filing requirements for the past 90 days. Yes [X] 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 last practicable date.
Class Outstanding as of October 6, 1999
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Common Stock, $0.001 per share 9,680,000
<PAGE>
INDEX
Page
PART 1.
Number
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ITEM 1. Financial Statements (unaudited)................................. 3
Balance Sheet as at September 30, 1999 .......................... 4
Statement of Operations
For the three months ended September 30, 1999, for
the three months ended September 30, 1998 and for
the period from September 15, 1998 (Date of
Incorporation) to September 30, 1999........................ 5
Statement of Changes in Shareholders' Equity
For the period from September 15, 1998 (Date of
Incorporation) to September 30, 1999........................ 6
Statement of Cash Flows
For the three months ended September 30, 1999, for the
three months ended September 30, 1998 and for the period
from September 15, 1998 (Date of
Incorporation) To September 30, 1999........................ 7
Notes to the Financial Statements................................ 8
ITEM 2. Plan of Operations............................................... 11
PART 11 Signatures....................................................... 12
2
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PART 1 - FINANCIAL INFORMATION
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ITEM 1. FINANCIAL STATEMENTS
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The accompanying balance sheet of Accord Ventures Inc. (a development stage
company) at September 30, 1999 and the statement of operations and statement of
cash flow for the three months ended September 30, 1999, for the three months
ended September 30, 1998 and for the period from September 15, 1998 (date of
incorporation) to September 30, 1999 and the statement of stockholders' equity
for the period from September 15, 1998 (date of incorporation) to September 30,
1999 have been prepared by the Company's management and they do not include all
information and notes to the financial statements necessary for a complete
presentation of the financial position, results of operations, cash flows, and
stockholders' equity in conformity with generally accepted accounting
principles. 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, 1999, are not necessarily
indicative of the results that can be expected for the year ending June 30,
2000.
3
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ACCORD VENTURES INC.
(A Development Stage Company)
BALANCE SHEET
September 30, 1999
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
SEPTEMBER 30, JUNE 30,
1999 1999
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<S> <C> <C>
ASSETS
CURRENT ASSETS
Bank $ 32 $ 3,267
OTHER ASSETS
Mineral lease - Note 3 -- --
-------- --------
$ 32 $ 3,267
======== ========
LIABILITIES
Accounts payable - related party $ 3,000 $ 3,000
Accounts payable and accrued liabilities 800 3,006
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3,800 6,006
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STOCKHOLDERS' EQUITY
Common stock
200,000,000 shares authorized, at $0.001 par
value, 9,680,000 shares issued and outstanding 9,680 9,680
Capital in excess of par value 40,070 40,070
Deficit accumulated during the development stage (53,518) (52,489)
-------- --------
Total Stockholders' Equity (3,768) (2,739)
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$ 32 $ 3,267
======== ========
</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
4
<PAGE>
ACCORD VENTURES INC.
(A Development Stage Company)
STATEMENT OF OPERATIONS
For the three months ended September 30, 1999, for the three months ended
September 30, 1998 and for period from September 15, 1998
(Date of Inception) to September 30, 1999
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
FOR THE THREE FOR THE THREE FROM INCEPTION
MONTHS ENDED MONTHS ENDED TO
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1999 1998 1999
---- ---- ----
<S> <C> <C> <C>
SALES $ -- $ -- $ --
---------- ---------- ----------
GENERAL AND ADMINISTRATIVE EXPENSES:
Accounting and audit -- -- 7,550
Bank charges and interest 22 8 219
Consulting -- -- 2,339
Filing fees - Edgar system 424 -- 2,436
Geological report -- 496 1,655
Incorporation costs written-off -- 670 670
Legal -- -- 2,500
Mineral lease -- -- 25,000
Office expenses 284 -- 2,425
Promotion and entertainment -- 500 2,881
Transfer agent's fees -- 1,200 3,098
Travel -- -- 2,745
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NET LOSS $ 730 $ 2,874 $ 53,518
========== ========== ==========
NET LOSS PER COMMON SHARE
Basic $ 0.0001 $ 0.001 $ 0.006
========== ========== ==========
AVERAGE OUTSTANDING SHARES
Basic 9,680,000 3,945,833 9,329,659
========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
5
<PAGE>
ACCORD VENTURES INC.
(A Development Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the period from September 15, 1998 (Date of Inception)
to September 30, 1999
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
CAPITAL IN
COMMON STOCK EXCESS OF ACCUMULATED
SHARES AMOUNT PAR VALUE DEFICIT
------ ------ --------- -------
<S> <C> <C> <C> <C>
BALANCE SEPTEMBER 15, 1998 (date of inception) -- $ -- $ -- $ --
Issuance of common shares for cash at
$0.0015 - September 21, 1998 4,500,000 4,500 2,250 --
Issuance of common shares for cash at
$0.002 - September 22, 1998 5,000,000 5,000 5,000 --
Issuance of common shares for cash at
$0.10 - October 1, 1998 30,000 30 2,970 --
Issuance of common shares for cash at
$0.20 - October 15, 1998 150,000 150 29,850 --
Net operating loss for the period from
September 15, 1998 to September 30, 1999 -- -- -- (53,518)
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BALANCE SEPTEMBER 30, 1999 9,680,000 $ 9,680 $ 40,070 $ (53,518)
========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
6
<PAGE>
ACCORD VENTURES INC.
(A Development Stage Company)
STATEMENT OF CASH FLOWS
For the three months ended September 30, 1999, for the three months ended
September 30, 1998 and for the period from September 15, 1998
(Date of Inception) to September 30, 1999
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
FOR THE THREE FOR THE THREE FROM INCEPTION
MONTHS ENDED MONTHS ENDED TO
SEPTEMBER 30, SEPTEMBER 30, SEPTEMBER 30,
1999 1998 1999
---- ---- ----
<S> <C> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss $ (730) $ (2,874) $(53,518)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Increase in accounts payable - related party -- -- 3,000
Increase in accounts payable (2,505) -- 800
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Net Cash from Operations (3,235) (2,874) (49,718)
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CASH FLOWS FROM INVESTING
ACTIVITIES:
Mineral lease -- --
-------- -------- --------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of common stock -- 17,900 49,750
-------- -------- --------
Net Increase in Cash (3,235) 32
Cash at Beginning of Period 3,267 -- --
-------- -------- --------
CASH AT END OF PERIOD $ 32 $ 15,026 $ 32
======== ======== ========
</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
7
<PAGE>
ACCORD VENTURES INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
September 30, 1999
(Unaudited - Prepared by Management)
1. ORGANIZATION
The Company was incorporated under the laws of the State of Nevada on
September 15, 1998 with the authorized common shares of 200,000,000
shares at $0.001 par value.
The Company was organized for the purpose of acquiring and developing
mineral properties.
The Company is in the development stage.
Since its inception the Company has completed three Regulation D
offerings of 5,180,000 shares of its capital stock.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Accounting Methods
The Company recognizes income and expenses based on the accrual method
of accounting.
Dividend Policy
The Company has not yet adopted a policy regarding payment of
dividends.
Income Taxes
On September 30, 1999, the Company had a net loss carry forward of
$53,518. The tax benefit from the loss carry forward has been fully
offset by a valuation reserve because the use of the future tax benefit
is undeterminable since the Company has no operations. The net
operating loss will expire in 2019.
Loss per Share
Loss per share amounts are computed based on the weighted average
number of shares actually outstanding using the treasury stock method
in accordance with FABS Statement No. 128.
8
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ACCORD VENTURES INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
September 30, 1999
(Unaudited - Prepared by Management)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Cash and Cash Equivalents
The Company considers all highly liquid instruments purchased with a
maturity, at the time of purchase, of less than three months, to be
cash equivalents.
Amortization of Capitalized Mining Claim Costs
Costs of acquisition, exploration, carrying, and retaining unproven
properties are expensed as incurred. Costs incurred in proving and
developing a property ready for production are capitalized and
amortized over the life of the mineral deposit or over a shorter period
if the property is shown to have an impairment in value. Expenditures
for mine equipment are capitalized and depreciated over their useful
lives.
Environmental Requirements
At the report date environmental requirements related to the mineral
claims acquired (note 3) are unknown and therefore an estimate of any
future costs cannot be made.
Financial Instruments
The carrying amounts of financial instruments, including cash, and
accounts payable, are considered by management to be their estimated
fair values. These values are not necessarily indicative of the amounts
that the Company could realize in a current market exchange.
Estimates and Assumptions
Management uses estimates and assumptions in preparing financial
statements in accordance with generally accepted accounting principles.
Those estimates and assumptions affect the reported amounts of the
assets and liabilities, the disclosure of contingent assets and
liabilities, and the reported revenues and expenses. Actual results
could vary from the estimates that were assumed in preparing these
financial statements.
9
<PAGE>
ACCORD VENTURES INC.
(A Development Stage Company)
NOTES TO FINANCIAL STATEMENTS
September 30, 1999
(Unaudited - Prepared by Management)
3. PURCHASE OF A MINERAL LEASE
The Company acquired a 16 unit metric lease for $25,000, located in
Semple Township in the Porcupine Mining District of Ontario, Canada.
The claims have not been proven to have a commercially minable ore
reserve and therefore all costs for exploration and retaining the
properties have been expensed.
The claims may be retained by the Company only upon a yearly payment,
or an equal amount of assessment work, of $6,400cn which is due
starting September 24, 2000. The payment for September 24, 1999 has
been paid.
4. RELATED PARTY TRANSACTIONS
Related parties acquired 47% of the common shares issued for cash.
A related party has loaned the Company $3,000. The amount does not
carry a due date or interest.
5. GOING CONCERN
The Company will need additional working capital to be successful in
its planned activity and therefore continuation of the Company as a
going concern is dependent upon obtaining additional working capital
and the management of the Company has developed a strategy, which it
believes will accomplish this objective through additional equity
funding, and long term financing, which will enable the Company to
operate for the coming year.
10
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ITEM 2. PLAN OF OPERATIONS
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The Company's management will concentrate its efforts on the Semple Township
property in Timmins, Ontario during 1999. It is the intention of management to
investigate other mineral properties in the future but no effort has been made
to date to identify or to negotiate the terms for acquiring additional mineral
properties. Continuation of the Company as a going concern is dependent upon
obtaining additional working capital either from advances from its officers
and/or directors, bank financing or by way of an issuance of its capital stock.
Until financing has been arranged it is the intention of the directors and
officers of the Company to pay for future expenses of the Company as short term
loans.
Liquidity and Capital Resources
The Company will need additional working capital to finance its activities on
the Semple mineral claims.
Results of Operations
The Company has had no operations during this reporting period.
11
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SIGNATURES
Pursuant to the requirements 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.
ACCORD VENTURES INC.
(Registrant)
October 7, 1999 /s/ "Allan Wilson"
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Date Allan Wilson - President and Director
October 7, 1999 /s/ "David Zosiak"
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Date David Zosiak - Secretary Treasurer and
Director
