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 March 31, 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 March 31, 2000
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Common Stock, $0.001 per share 11,075,400
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INDEX
Page
PART 1. Number
------
ITEM 1. Financial Statements......................................... 3
Balance Sheet as at March 31, 2000........................... 4
Statement of Operations
For the three months ended March 31, 2000, for
The three months ended March 31, 1999 and
for the period from March 4, 1999 (Date of
Incorporation) to March 31, 2000................. 5
Statement of Cash Flows
For the three months ended March 31, 2000, for
The three months ended March 31, 1999 and
for the period from March 4, 1999 (Date of
Incorporation) to March 31, 2000................. 6
Notes to the Financial Statements............................ 7
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 The Zeballos Mining Company (an exploration
stage company) at March 31, 2000 and the statement of operations and statement
of cash flow for the three months ended March 31, 2000, for the three months
ended March 31, 1999 and for the period from March 4, 1999 (date of
incorporation) to March 31, 2000 and the statement of stockholders' equity for
the period from March 4, 1999 (date of incorporation) to March 31, 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 March 31, 2000, are not necessarily
indicative of the results that can be expected for the year ending December 31,
2000.
3
<PAGE>
THE ZEBALLOS MINING COMPANY
(Exploration Stage Company)
BALANCE SHEET
March 31, 2000 and December 31, 1999
<TABLE>
<CAPTION>
Mar 31 Dec 31
2000 1999
---------------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash $ 9 $ 685
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Total Current Assets $ 9 $ 685
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OTHER ASSETS
Mineral claims - Note 3 - -
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$ 9 $ 685
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Account payable - related parties $ 7,600 $ 6,000
Accounts payable 2,080 2,250
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Total Current Liabilities 9,680 8,250
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STOCKHOLDERS' EQUITY
Common stock
200,000,000 shares authorized, at $0.001
par value, 11,075,400 shares issued and
outstanding 11,075 11,075
Capital in excess of par value 14,215 11,515
Deficit accumulated during the exploration stage (34,961) (30,155)
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Total Stockholders' Deficiency (9,671) (7,565)
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$ 9 $ 685
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</TABLE>
The accompanying notes are an integral part of these financial statements.
4
<PAGE>
<TABLE>
<CAPTION>
THE ZEBALLOS MINING COMPANY
(Exploration Stage Company)
STATEMENT OF OPERATIONS
For the three Months Ended March 31, 2000 and 1999
And for the Period March 4, 1999
(Date of Inception) to March 31, 2000-05-16
Three Months
Mar 31 Mar 31 Mar 4/99 to
2000 1999 Mar 31, 2000
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<S> <C> <C> <C>
REVENUES $ - $ - $ -
EXPENSES 4,806 4,421 34,961
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NET LOSS $ 4,806 $4,421 $ (34,961)
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NET LOSS PER COMMON SHARE
Basic $ - $ - $ -
----- ----- ----
AVERAGE OUTSTANDING SHARES
Basic 11,075,400 6,679,535 11,075,400
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The accompanying notes are an integral part of these financial statements.
</TABLE>
5
<PAGE>
<TABLE>
<CAPTION>
THE ZEBALLOS MINING COMPANY
(An Exploration Stage Company)
STATEMENT OF CASH FLOWS
For the three months Ended March 31, 2000, for the three months
March 31, 1999 And for the period from
March 4, 1999 (Date of Inception) to March 31, 2000
For the Three For the Three From Inception
Months Ended Months Ended To
March 31, 2000 March 31, 1999 March 31, 2000
-------------- -------------- --------------
<S> <C> <C> <C>
CASH FLOWS FROM
Net loss $ (4,806) $ (4,421) $ (34,961)
Adjustments to reconcile net loss to net cash
provided by operating activities
Change in accounts payable 1,430 - 9,680
Capital contributions - expenses 2,700 900 11,700
----- --- ------
Net Cash from Operations (676) (3,521) (13,581)
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CASH FLOWS FROM INVESTING
ACTIVITIES - - -
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CASH FLOWS FROM FINANCING
ACTIVITIES
Proceeds from issuance of common stock - 13,540 13,590
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Net Increase in Cash (676) 10,019 9
Cash at Beginning of Period 685 - -
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CASH AT END OF PERIOD $ 9 $ 10,019 $ 9
======= ======= =======
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Capital contributions - expenses $ 11,700
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The accompanying notes are an integral part of these financial statements.
</TABLE>
6
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THE ZEBALLOS MINING COMPANY
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
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
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The Company recognizes income and expenses based on the accrual method
of accounting.
Dividend Policy
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The Company has not yet adopted a policy regarding payment of
dividends.
Income Taxes
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On March 31, 2000 the Company had a net operating loss carry forward of
$34,961. 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.
Basic and Diluted Net Income(Loss) Per Share
--------------------------------------------
Basic net income (loss) per share amounts are computed based on the
weighted average number of shares actually outstanding. Diluted net
income (loss) per share amounts are computed using the weighted average
number of common shares and common equivalent shares outstanding as if
shares had been issued on the exercise of the preferred share rights
unless the exercise becomes antidilutive and then only the basic per
share amounts are shown in the report.
7
<PAGE>
THE ZEBALLOS MINING COMPANY
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS (Continued)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Continued
Amortization of Capitalized Mineral Claims Costs
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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
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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
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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
<PAGE>
THE ZEBALLOS MINING COMPANY
( Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS (Continued)
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
