UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
AMENDED 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, 2000
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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 September 30, 2000
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Common Stock, $0.001 per share 11,075,400
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ANDERSEN ANDERSEN & STRONG, L.C. 941 East 3300 South, Suite 202
CERTIFIED PUBLIC ACCOUNTANTS AND BUSINESS CONSULTANTS Salt Lake City, Utah 84106
Telephone 801 486-0096
Fax 801 486-0098
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REPORT ON REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Board of Directors
The Zeballos Mining Company
We have prepared the balance sheet of The Zeballos Mining Company, Inc.
(Exploration stage company) as of September 30, 2000 and December 31, 1999, the
related statement of operations and the statement of cash flows for the nine
months ended September 30, 2000 and 1999 and the periods March 4, 1999 (date of
inception) to September 30, 2000. These financial statements are the
responsibility of the company's management.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the accompanying financial statements for them to be in conformity
with generally accepted accounting principles.
Andersen Andersen and Strong
Salt Lake City, Utah
November 20, 2000
2
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INDEX
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PAGE
PART 1. NUMBER
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ITEM 1. Financial Statements .............................................. 4
Balance Sheet as at September 30, 2000 and December 31, 1999 ...... 5
Statement of Operations
For the nine months ended September 30, 2000, for
the nine months ended September 30, 1999, for the
three months ended September 30, 2000, for
the three months ended September 30, 1999 and for
the period from March 4, 1999 (Date of
Incorporation) to September 30, 2000 .................. 6
Statement of Cash Flows
For the nine months ended September 30, 2000,
for the nine months ended September 30, 1999
and for the period From March 4, 1999 (Date
of Incorporation) to September 30, 2000................... 7
Notes to the Financial Statements ................................. 8
ITEM 2. Plan of Operations ................................................ 11
PART 11 Signatures......................................................... 12
Financial Data Schedule Worksheet ................................. 13
3
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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 The Zeballos Mining Company (an exploration
stage company) at September 30, 2000 and December 31, 1999 and the statement of
operations and statement of cash flow for the three months ended September 30,
2000, for the three months ended September 30, 1999, for the nine months ended
September 30, 2000, for the nine months ended September 30, 1999 and for the
period from March 4, 1999 (date of incorporation) to September 30, 2000 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, 2000, are not necessarily
indicative of the results that can be expected for the year ending December 31,
2000.
4
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THE ZEBALLOS MINING COMPANY
(EXPLORATION STAGE COMPANY)
BALANCE SHEET
SEPTEMBER 30, 2000 AND DECEMBER 31, 1999
(UNAUDITED - PREPARED BY MANAGEMENT)
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2000 1999
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ASSETS
CURRENT ASSETS
Cash $ 498 $ 685
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Total Current Assets $ 498 $ 685
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OTHER ASSETS
Mineral claims - Note 3 -- --
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$ 498 $ 685
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Account payable - related parties $ 10,800 $ 6,000
Accounts payable 4,068 2,250
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Total Current Liabilities 14,868 8,250
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STOCKHOLDERS' EQUITY
Common stock
200,000,000 shares authorized, at $0.001
par value, 11,075,400 shares issued and
outstanding 11,075 11,075
Capital in excess of par value 19,615 11,515
Deficit accumulated during the exploration stage (45,060) (30,155)
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Total Stockholders' Deficiency (14,370 (7,565)
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$ 498 $ 685
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The accompanying notes are an integral part of these unaudited
financial statements.
5
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THE ZEBALLOS MINING COMPANY
(EXPLORATION STAGE COMPANY)
STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999,
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000 AND 1999 AND
FOR THE PERIOD MARCH 4, 1999
(DATE OF INCEPTION) TO SEPTEMBER 30, 2000
(UNAUDITED - PREPARED BY MANAGEMENT)
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THREE THREE
MONTHS MONTHS FROM
ENDED ENDED NINE MONTHS NINE MONTHS INCEPTION
SEPT 30, SEPT 30, ENDED ENDED TO
2000 1999 SEPT 30, 2000 SEPT 30,2000 SEPT 30, 2000
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REVENUES $ -- $ -- $ -- $ -- --
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EXPENSES
Accounting and audit 950 300 2,725 2,850 7,525
Bank charges 34 28 125 148 319
Consulting -- 2,200 -- 2,200 3,950
Edgar filing fees 391 1,119 782 1,119 2,105
Geology report -- -- -- 1,200 1,200
Incorporation costs written off -- -- -- 2,500 2,500
Legal -- 2,500 -- 2,500 2,500
Management fees 1,500 1,500 4,500 3,500 9,500
Office 511 420 852 908 1,837
Rent 900 900 2,700 2,100 5,700
Staking fees -- -- -- 369 3,194
Telephone 300 300 900 700 1,900
Transfer agent 38 24 2,321 2,364 4,660
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NET LOSS $ (4,624) $ (9,291) $ (14,905) $ (20,628) $ ( 45,060)
============ ============ =========== ============ ==========
NET LOSS PER
COMMON SHARE
Basic $ -- $ -- $ -- $ --
============ ============ =========== ============
AVERAGE
OUTSTANDING
SHARES
Basic 11,075,400 10,489,285 11,075,400 10,489,285
============ ============ =========== ============
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The accompanying notes are an integral part of these unaudited
financial statements.
6
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THE ZEBALLOS MINING COMPANY
(AN EXPLORATION STAGE COMPANY)
STATEMENT OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2000, FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND
FOR THE PERIOD FROM MARCH 4, 1999 (DATE OF INCEPTION) TO SEPTEMBER 30, 2000
(UNAUDITED - PREPARED BY MANAGEMENT)
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For the Nine For the Nine From Inception
Months Ended Months Ended To
Sept 30, 2000 Sept 30, 1999 Sept 30, 2000
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CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss $(14,905) $(20,628) $(45,060)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Change in accounts payable - related
parties 4,800 -- 10,800
Change in accounts payable 1,818 725 4,068
Capital contributions - expenses 8,100 6,326 17,100
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Net Cash from Operations (187) (13,577) (13,092)
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CASH FLOWS FROM INVESTING
ACTIVITIES: -- -- --
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CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of common stock -- 13,590 13,590
Net Increase in Cash (187) 13 498
Cash at Beginning of Period 685 -- --
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CASH AT END OF PERIOD $ 498 $ 13 $ 498
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SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Capital contributions - expenses $ 17,100
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The accompanying notes are an integral part of these unaudited
financial statements.
7
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THE ZEBALLOS MINING COMPANY
(AN EXPLORATION STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2000
(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. At the report date mineral claims, with unknown
reserves, had 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). Since its inception the Company has
completed Regulation D offerings of 11,075,400 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
On September 30, 2000 the Company had a net operating loss carry
forward of $45,060. 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 2021.
Earnings (Loss) Per Share
Earnings (loss) per share amounts are computed based on the weighted
average number of shares actually outstanding.
8
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THE ZEBALLOS MINING COMPANY
(AN EXPLORATION STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
(UNAUDITED - PREPARED BY MANAGEMENT)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
Amortization of Capitalized Mineral Claims Costs
Costs of acquisition, exploration, carrying, and retaining unproven
properties are expensed as incurred. Costs incurred in proving and
developing a commercially minable ore reserve 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 will be 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 cost cannot be made.
Comprehensive Income
The Company adopted Statement of Financial Accounting Standard No. 130.
The adoption of this standard had no impact on the total stockholder's
equity on September 30, 2000.
Recent Accounting Pronouncements
The Company does not expect that the adoption of other recent
accounting pronouncements will have a material impact on its financial
statements.
Financial Instruments
The carrying amounts of financial instruments, including cash, mineral
claims, and accounts payable are considered by management to be their
estimated fair values.
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.
9
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THE ZEBALLOS MINING COMPANY
(EXPLORATION STAGE COMPANY)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
SEPTEMBER 30, 2000
(UNAUDITED - PREPARED BY MANAGEMENT)
3. 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.
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 by completion of yearly
assessment work of $1,800Cn or by a payment of $1,800Cn. The next
assessment work is due in March 2001.
4. RELATED PARTY TRANSACTIONS
Related parties acquired 45% of the common stock issued.
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 for the
coming year.
10
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ITEM 2. PLAN OF OPERATION
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During the summer months the Company did not do any exploration work on its
mineral claims located in the Zeballos mining camp on Vancouver Island. With the
winter months approaching it is extremely unlikely that any work will be done on
the claims until the spring of 2001.
Liquidity and Capital Resources
The Company has not raised any additional capital since its original "seed
stock" issuance to its shareholders. All funding of the Company, need to meet
current accounts payable obligations, is provided by its directors and officers.
Results of Operations
To date the Company has had no operations.
11
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Company has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
THE ZEBALLOS MINING COMPANY
November 22, 2000 /s/ "E. Del Thachuk"
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E. Del Thachuk - President and Director
November 22, 2000 /s/ "Stacey Bligh"
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Stacey Bligh - Secretary Treasurer
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