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 0-26709
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THE ZEBALLOS MINING COMPANY
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(Exact name of registrant as specified in charter)
Nevada 98-0201259
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
34 - 3387 King George Highway
Surrey, BC, Canada V4P 1B7
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(Address of principal executive offices) (Zip Code)
604-538-5995
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Registrant's telephone number, including area code
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(Former name, address, and fiscal year, if changed since last report)
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 24, 1999
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Common Stock, $0.001 per share 11,075,400
<PAGE>
INDEX
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<CAPTION>
Page
Number
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PART 1.
<S> <C> <C>
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
and for the period from March 4, 1999 (Date
of Incorporation) to September 30, 1999...................... 5
Statement of Changes in Shareholders' Equity
For the period from March 4, 1999 (Date
of Incorporation) to September 30, 1999...................... 6
Statement of Cash Flows
For the three months ended September 30, 1999
and for the period from March 4, 1999 (Date
of Incorporation) to September 30, 1999...................... 7
Notes to the Financial Statements................................... 8
ITEM 2. Plan of Operations........................................................... 11
PART 11 Signatures................................................................... 12
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2
<PAGE>
PART 1 - FINANCIAL INFORMATION
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ITEM 1. FINANCIAL STATEMENTS
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The accompanying balance sheet of The Zeballos Mining Company (an exploration
stage company) at September 30, 1999 and the statement of operations and
statement of cash flow for the three months ended September 30, 1999 and for the
period from March 4, 1999 (date of incorporation) to September 30, 1999 and the
statement of stockholders' equity for the period from March 4, 1999 (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 December 31,
1999.
3
<PAGE>
THE ZEBALLOS MINING COMPANY
(An Exploration Stage Company)
BALANCE SHEET
September 30, 1999
(Unaudited - Prepared by Management)
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<S> <C>
ASSETS
CURRENT ASSETS
Bank $ -
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$ -
===========
LIABILITIES
Bank overdraft 13
Accounts payable and accrued liabilities $ 725
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738
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STOCKHOLDERS' EQUITY
Common stock
200,000,000 shares authorized, at $0.001 par
value, 11,075,400 shares issued and outstanding 11,075
Capital in excess of par value 8,815
Deficit accumulated during the development stage (20,628)
-----------
Total Stockholders' Equity (738)
$ -
===========
</TABLE>
The accompanying notes are an integral part of
these unaudited financial statements.
4
<PAGE>
THE ZEBALLOS MINING COMPANY
(An Exploration Stage Company)
STATEMENT OF OPERATIONS
For the three months ended September 30, 1999 and for period from
March 4, 1999 (Date of Inception) to September 30, 1999
(Unaudited - Prepared by Management)
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<CAPTION>
For the Three From Inception
Months Ended To
September 30, 1999 September 30, 1999
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<S> <C> <C>
SALES $ - $ -
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GENERAL AND ADMINISTRATIVE EXPENSES:
Accounting and audit 300 2,850
Bank charges and interest 28 148
Consulting 2,200 2,200
Edgar filing fees 1,119 1,119
Geology report - 1,200
Incorporation costs written off - 670
Legal 2,500 2,500
Management fees 1,500 3,500
Office expenses 420 908
Rent 900 2,100
Staking fees - 369
Telephone 300 700
Transfer agent's fees 24 2,364
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NET LOSS $ 9,291 $ 20,628
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NET LOSS PER COMMON SHARE
Basic $ 0.0008 $ 0.002
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AVERAGE OUTSTANDING SHARES
Basic 11,075,400 10,492,063
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</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
5
<PAGE>
THE ZEBALLOS MINING COMPANY
(An Exploration Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the period from March 4, 1999 (Date of Inception)
to September 30, 1999
(Unaudited - Prepared by Management)
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<CAPTION>
Common Stock Capital in
--------------------- Excess of Accumulated
Shares Amount Par Value Deficit
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<S> <C> <C> <C> <C>
Balance March 4, 1999 (date of inception) - $ - $ - $ -
Issuance of common shares for cash at
$0.001 - March 14, 1999 5,050,000 5,050 - -
Issuance of common shares for cash at
$0.001- March 16, 1999 6,000,000 6,000 - -
Issuance of common shares for cash at
$0.10 - March 27, 1999 25,400 25 2,515 -
Capital contributions - expenses 6,300
Net operating loss for the period from
March 4, 1999 to September 30, 1999 - - - (20,628)
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Balance September 30, 1999 11,075,400 $ 11,075 $ 8,815 $ (20,628)
========== =========== ========== ==========
</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
6
<PAGE>
THE ZEBALLOS MINING COMPANY
(An Exploration Stage Company)
STATEMENT OF CASH FLOWS
For the three months ended September 30, 1999 and for the period from
March 4, 1999 (Date of Inception) to September 30, 1999
(Unaudited - Prepared by Management)
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<CAPTION>
For the Three From Inception
Months Ended To
September 30, 1999 September 30, 1999
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<S> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss $ (9,291) $ (20,628)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Increase in accounts payable 411 725
Capital contributions - expens 2,700 6,300
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Net Cash from Operations (6,180) (13,603)
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CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of common stock - 13,590
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Net Increase (Decrease) in Cash (6,180) (13)
Cash at Beginning of Period 6,167 -
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CASH AT END OF PERIOD $ (13) $ (13)
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</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
7
<PAGE>
THE ZEBALLOS MINING COMPANY
(An Exploration 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
March 4, 1999 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. A mineral claim, with unknown reserves, has been
acquired. The Company has not established the existence of a
commercially minable ore deposit and therefore has not reached the
development stage and is considered to be in the exploration stage (see
Note 3).
The Company has completed a Regulation D offering of 6,025,400 shares
of its capital stock for cash.
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
The Company has elected a fiscal year ending December 31, 1999 and has
not completed an operating period and therefore has not filed an income
tax return. However, the Company may incur an operating loss for the
period ending December 31, 1999 which will be available for carryover
and applied against future taxable income resulting in a tax benefit.
The potential tax benefit from any loss carry forward has been fully
offset by a valuation reserve because the use of any future tax benefit
is doubtful since the Company has no operations.
8
<PAGE>
THE ZEBALLOS MINING COMPANY
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
September 30, 1999
(Unaudited - Prepared by Management)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
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.
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.
Capitalization of Mineral Claim Costs
Cost of acquisition, exploration, carrying, and retained 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 mining equipment are capitalized and depreciated over their useful
life.
Environmental Requirements
Environmental requirements related to the mineral claims acquired (Note
3) are unknown and therefore an estimate of any future cost cannot be
made.
Financial Instrument
The carrying amount of financial instruments, being cash, is considered
by management to be its standard fair value.
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>
THE ZEBALLOS MINING COMPANY
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
September 30, 1999
(Unaudited - Prepared by Management)
3. ACQUISITION OF MINERAL CLAIM
The Company has acquired one 18 unit metric mineral claim known as the
Zeb Au Claim located in the Zeballos mining camp near the town of
Zeballos about 300 kilometres northwest of Victoria, British Columbia
with an expiration date of March 1, 2000.
The claims may be retained by the Company by making a yearly lease
payment in the amount of CDN $1,800 on March 1, 2000 and CDN $3,600 on
March 1, 2001.
The claims have not been proven to have a commercial minable ore
reserve and therefore all costs for exploration and retaining the
properties have been expensed.
4. RELATED PARTY TRANSACTIONS
Related parties acquired 45% of the common stock issued.
The officers and directors of the Company are involved in other
business activities and they may, in the future, become involved in
additional business ventures which also may require their attention. If
a specific business opportunity becomes available, such persons may
face a conflict in selecting between the Company and their other
business interests. The Company has formulated no policy for the
resolution of such conflicts.
5. GOING CONCERN
The Company will need additional working capital to be successful in
its planned activities and 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 in the
future.
Management recognizes that, if it is unable to raise additional
capital, the Company cannot be successful in its efforts.
10
<PAGE>
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ITEM 2. PLAN OF OPERATIONS
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The Company has commenced an exploration program on the Zeb Au Claim in the
Zeballos mining camp which should be completed by the middle of November 1999.
Presently the exploration program consists of establishing a geochemical grid
over part of the claim which will be used for soil and rock sampling in the
spring of the year 2000. With the possibility of snow in during the latter part
of November, the exploration program will have to be terminated until the
spring.
Liquidity and Capital Resources
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The Company did not have sufficient funds on hand to pay for the present
exploration program and was advanced the money by one of the directors. The work
done on the Zeb Au claim will keep the claim in good standing for another year.
It is anticipated the exploration program will be filed with the Gold
Commissioner's office in the early part of December and applied against
assessment work for the forthcoming year.
Results of Operations
- ---------------------
There are no operations at this time.
11
<PAGE>
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.
THE ZEBALLOS MINING COMPANY
(Registrant)
October 24, 1999 /c/ "Stacey Bligh"
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Date Stacey Bligh - Secretary-Treasurer
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