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 June 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
(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 June 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, Suite202
Certified Public Accountants and Salt Lake City, Utah 84106
Business Consultants
Telephone 801-486-0096
Fax 801-486-0098
REPORT ON REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Board of Directors
The Zeballos Mining Company
We have reviewed the condensed balance sheet of Zeballos Mining Company
(exploration stage company) as of June 30, 2000 and December 31, 1999 and the
related condensed statements of operations and the condensed statement of cash
flows for the three and six months ended June 30, 2000 and 1999 and the period
March 4, 1999 (date of inception) to June 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.
/s/ "Andersen Andersen and Strong"
Salt Lake City, Utah
July 20, 2000
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INDEX
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Page
PART I. Number
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<S> <C>
ITEM 1. Financial Statements.................................................. 3
Balance Sheet as at June 30, 2000 and December 31, 1999...... 4
Statement of Operations
For the six months ended June 30, 2000, for the
Six months ended June 30, 1999, For the three
months ended June 30, 2000, for
The three months ended June 30, 1999 and for
the period from March 4, 1999 (Date of
Incorporation) to June 30, 2000.................. 5
Statement of Cash Flows
For the six months ended June 30, 2000, for the
Six months ended June 30, 1999 and for the
period From March 4, 1999 (Date of
Incorporation) to June 30,
2000................................................ 6
Notes to the Financial Statements............................ 7
ITEM 2. Plan of Operations.................................................... 10
PART II Signatures............................................................ 11
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PART I - 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 June 30, 2000 and December 31, 1999 and the statement of
operations and statement of cash flow for the three months ended June 30, 2000,
for the three months ended June 30, 1999, for the six months ended June 30,
2000, for the six months ended June 30, 1999 and for the period from March 4,
1999 (date of incorporation) to June 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 June 30, 2000, are not necessarily
indicative of the results that can be expected for the year ending December 31,
2000.
3
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THE ZEBALLOS MINING COMPANY
(EXPLORATION STAGE COMPANY)
BALANCE SHEET
JUNE 30, 2000 AND DECEMBER 31, 1999
(UNAUDITED - PREPARED BY MANAGEMENT)
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<CAPTION>
2000 1999
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<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash $ 223 $ 685
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Total Current Assets $ 223 $ 685
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OTHER ASSETS
Mineral claims - Note 3 -- --
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$ 223 $ 685
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Account payable - related parties $ 9,600 $ 6,000
Accounts payable 3,069 2,250
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Total Current Liabilities 12,669 8,250
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STOCKHOLDERS' EQUITY
Common stock
200,000,000 shares authorized, at $0.001
par value, 11,075,400 shares issued and
outstanding 11,075 11,075
Capital in excess of par value 16,915 11,515
Deficit accumulated during the exploration stage (40,436) (30,155)
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Total Stockholders' Deficiency (12,446) (7,565)
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$ 223 $ 685
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The accompanying notes are an integral part of
these financial statements.
4
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THE ZEBALLOS MINING COMPANY
(EXPLORATION STAGE COMPANY)
STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDED JUNE 30, 2000 AND 1999,
FOR THE SIX MONTHS ENDED JUNE 30,
2000 AND 1999 AND FOR THE PERIOD MARCH 4, 1999
(DATE OF INCEPTION) TO JUNE 30, 2000
(UNAUDITED - PREPARED BY MANAGEMENT)
<TABLE>
THREE THREE SIX SIX
MONTHS MONTHS MONTHS MONTHS FROM
ENDED ENDED ENDED ENDED INCEPTION
JUN 30, JUNE 30, JUNE 30, JUNE 30, TO JUNE 30,
2000 1999 2000 1999 2000
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<S> <C> <C> <C> <C> <C>
REVENUES $ -- $ -- $ -- $ -- $ --
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EXPENSES
Accounting and Audit 1,575 2,550 1,775 2,550 6,575
Bank Charges 30 38 91 120 285
Consulting -- -- -- -- 3,950
Edgar Filing Fees -- -- 391 -- 1,714
Geology Report -- -- -- 1,200 1,200
Incorporation Costs Written Off -- -- -- 670 670
Legal -- -- -- -- 2,500
Management Fees 1,500 1,500 3,000 2,000 8,000
Office 126 488 342 488 1,326
Rent 900 900 1,800 1,200 4,800
Staking Fees -- -- -- 369 3,194
Telephone 300 300 600 400 1,600
Transfer Agent 1,044 -- 2,282 1,200 4,622
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NET LOSS $ (5,475) $ (5,776) $ (10,281) $ (10,197) $ (40,436)
====== ====== ====== ====== ======
NET LOSS PER
BASIC $ -- $ -- $ -- $ --
====== ======= ======== ========
AVERAGE OUTSTANDING
BASIC 11,075,400 10,032,314 11,075,400 10,032,314
========== ========== ========== ==========
</TABLE>
The accompanying notes are an integral part of
these financial statements.
5
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THE ZEBALLOS MINING COMPANY
(Exploration Stage Company)
STATEMENT OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2000, FOR THE
SIX MONTHS ENDED JUNE 30, 1999 AND FOR THE
PERIOD FROM MARCH 4, 1999 (DATE OF INCEPTION) TO JUNE 30, 2000
(UNAUDITED - PREPARED BY MANAGEMENT)
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FOR THE SIX FOR THE SIX FROM INCEPTION
MONTHS ENDED MONTHS ENDED TO
JUNE 30, 2000 JUNE 30, 1999 JUNE 30, 2000
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<S> <C> <C> <C>
CASH FLOWS FROM
Net loss $ (10,281) $ (10,197) $ (40,436)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Change in accounts payable - related Parties 3,600 - 9,600
Change in accounts payable 819 (826) 3,069
Capital contributions - expenses 5,400 3,600 14,400
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Net Cash from Operations (462) (7,423) (13,367)
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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
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Net Increase in Cash (462) 6,167 223
Cash at Beginning of Period 685 - -
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CASH AT END OF PERIOD $ 223 $ 6,167 $ 223
========= ===== =========
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Capital contributions - expenses $14,400
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The accompanying notes are an integral part of
these financial statements.
6
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THE ZEBALLOS MINING COMPANY
(Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
JUNE 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, 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). Since its inception the Company has
completed Regulation D offerings of 11,025,400 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
On June 30, 2000 the Company had a net operating loss carry forward of
$40,436. 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.
7
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THE ZEBALLOS MINING COMPANY
(Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 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 June 30, 1999.
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.
8
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THE ZEBALLOS MINING COMPANY
(Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
JUNE 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. There can be no assurance that the management will be
successful in this effort.
9
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ITEM 2. PLAN OF OPERATION
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The Company has not proceeded with any work on its mineral claim during the last
six months due to weather conditions in the Zeballos mining area of British
Columbia. It is anticipate that consideration will be given to an exploration
program in the summer of 2000.
Liquidity and Capital Resources
The Company does not at this time have sufficient funds to proceed with an
exploration program.
Results of Operations
To date the Company has had no operations.
10
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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
July 18, 2000 /c/ "E. Del Thachuk"
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E. Del Thachuk - President and Director
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