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 SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended June 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 0-30142
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ZEB ORO EXPLORATIONS INC.
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(Exact name of registrant as specified in charter)
Nevada 98-0205944
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
825 - 1200 West 73rd Avenue
Vancouver, BC, Canada V6P 6G5
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(Address of principal executive offices) (Zip Code)
1 - 604 - 267-1100
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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 6, 1999
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Common Stock, $0.001 per share 11,025,000
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INDEX
Page
PART 1. Number
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ITEM 1. Financial Statements (unaudited).......................... 3
Balance Sheet as at June 30, 1999......................... 4
Statement of Operations
For the three months ended June 30, 1999 and for
the period from March 4, 1999 (Date of
Incorporation) to June 30, 1999..................... 5
Statement of Changes in Shareholders' Equity
For the period from March 4, 1999 (Date of
Incorporation) to June 30, 1999..................... 6
Statement of Cash Flows
For the three months ended June 30, 1999 and for
the period from March 4, 1999 (Date of
Incorporation) to June 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 Zeb Oro Explorations Inc. (an exploration
stage company) at June 30, 1999 and the statement of operations and statement of
cash flow for the three months ended June 30, 1999 and for the period from March
4, 1999 (date of incorporation) to June 30, 1999 and the statement of
stockholders' equity for the period from March 4, 1999 (date of incorporation)
to June 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 June 30, 1999, are not necessarily
indicative of the results that can be expected for the year ending December 31,
1999.
3
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ZEB ORO EXPLORATIONS INC.
(An Exploration Stage Company)
BALANCE SHEET
June 30, 1999
(Unaudited - Prepared by Management)
ASSETS
CURRENT ASSETS
Bank $ 3,139
OTHER ASSETS
Mining claim - Note 3 --
--------
$ 3,139
========
LIABILITIES
Accounts payable and accrued liabilities $ 834
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STOCKHOLDERS' EQUITY
Common stock
200,000,000 shares authorized, at $0.001 par
value, 11,025,000 shares issued and outstanding 11,025
Capital in excess of par value 6,075
Deficit accumulated during the development stage (14,795)
--------
Total Stockholders' Equity 2,305
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$ 3,139
========
The accompanying notes are an integral part of these
unaudited financial statements.
4
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ZEB ORO EXPLORATIONS INC.
(An Exploration Stage Company)
STATEMENT OF OPERATIONS
For the three months ended June 30, 1999 and for period from
March 4, 1999 (Date of Inception) to June 30, 1999
(Unaudited - Prepared by Management)
FOR THE THREE FROM INCEPTION
MONTHS ENDED TO
JUNE 30, 1999 JUNE 30, 1999
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SALES $ -- $ --
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GENERAL AND ADMINISTRATIVE EXPENSES:
Accounting and audit 2,250 2,250
Bank charges and interest 39 109
Consulting 3,000 3,000
Filing fees - Edgar system 794 794
Geological report -- 1,200
Incorporation costs written-off -- 670
Management fees 1,500 2,000
Office expenses 508 508
Rent 900 1,200
Staking costs -- 368
Telephone 300 400
Transfer agent's fees 1,095 2,296
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NET LOSS $ 10,386 $ 14,795
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NET LOSS PER COMMON SHARE
Basic $ 0.001 $ 0.001
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AVERAGE OUTSTANDING SHARES
Basic 11,025,000 9,986,229
============ =============
The accompanying notes are an integral part of these
unaudited financial statements.
5
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ZEB ORO EXPLORATIONS INC.
(An Exploration Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the period from March 4, 1999 (Date of Inception)
to June 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 MARCH 4, 1999 (date of inception) -- $ -- $ -- $ --
Issuance of common shares for cash at
$0.001 - March 14, 1999 5,000,000 5,000 -- --
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 25,000 25 2,475 --
Capital contributions - expenses 3,600
Net operating loss for the period from
March 4, 1999 to June 30, 1999 -- -- -- (14,795)
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BALANCE JUNE 30, 1999 11,025,000 $11,025 $ 6,075 $ (14,795)
========== ======= ======== =========
</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
6
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ZEB ORO EXPLORATIONS INC.
(An Exploration Stage Company)
STATEMENT OF CASH FLOWS
For the three months ended June 30, 1999 and for the period from
March 4, 1999 (Date of Inception) to June 30, 1999
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
FOR THE THREE FROM INCEPTION
MONTHS ENDED TO
JUNE 30, 1999 JUNE 30, 1999
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<S> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss $ (10,386) $ (14,795)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Decrease in accounts receivable 90
Increase in accounts payable 834 834
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Net Cash from Operations (9,462) (13,961)
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CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of common stock -- 13,500
Capital contributions 2,700 3,600
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2,700 17,100
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Net Increase in Cash (6,762) 3,139
Cash at Beginning of Period 9,901 --
CASH AT END OF PERIOD $ 3,139 $ 3,139
========= ===========
</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
7
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ZEB ORO EXPLORATIONS INC.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 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. As at the date of the balance sheet a mineral
property, 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
11,025,000 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 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 year
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.
Any loss carry forward from the year ended December 31, 1999 will
expire in the year 2019.
8
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ZEB ORO EXPLORATIONS INC.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 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. Cost 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
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.
Financial Instruments
The carrying amounts of financial instruments, including cash, prepaid
expenses and deferred offering costs are considered by management to be
their standard 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
9
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ZEB ORO EXPLORATIONS INC.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 30, 1999
(Unaudited - Prepared by Management)
Estimates and Assumptions - continued
reported revenues and expenses. Actual results could vary from the
estimates that were assumed in preparing these financial statements.
3. MINING CLAIMS
The Company has acquired one 15 unit mineral claim known as the Zeb Oro
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 February 25, 2000. The costs of staking and filing
have been expensed.
4. RELATED PARTY TRANSACTIONS
Related parties acquired 45% of the common shares issued for cash.
5. GOING CONCERN
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
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ITEM 2. PLAN OF OPERATIONS
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Exploration on the Zeb Oro Mineral Claim
Management has not performed any exploration to date on the Zeb Oro mineral
claim located in the Zeballos mining camp near the town of Zeballos about 300
kilometres northwest of Victoria, British Columbia.
Management anticipates undertaking a work program on the Zeb Oro claims in the
early spring of the year 2000.
Liquidity and Capital Resources
The Company has very limited financial resources at this time and does not have
sufficient funds to do an exploration program in the spring of the year 2000. In
addition the Company will require funds to meet its financial obligations to the
transfer agent, auditors and other professions the Company will employ during
the forthcoming winter. It has approximately $3,000 available to meet some of
these obligations but this might not be sufficient funds to meet all its
obligations.
The Company will have to consider obtaining advances from its officers or
directors, seeking debt financing from institutional lenders or issuing its
common stock to raise the required working capital. The Company has not yet
considered which method it will use to meet its future obligations.
Results of Operations
There have been no operations during the current period under review.
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.
ZEB ORO EXPLORATIONS INC.
(Registrant)
October 6, 1999 /s/ "Steven Bruce"
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Date Steven Bruce - President and Director
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