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 0-30142
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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)
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 June 30, 2000
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Common Stock, $0.001 per share 11,025,000
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ANDERSEN ANDERSEN & STRONG, L.C. 941 East 3300 South, Suite202
-------------------------------- Salt Lake City, Utah 84106
Certified Public Accountants and Business Consultants
Telephone 801-486-0096
Fax 801-486-0098
REPORT ON REVIEW BY INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
The Board of Directors
Zeb Oro Exploration Inc.
We have reviewed the condensed balance sheet of Zeb Oro Exploration Inc.
(exploration stage company) as of June 30, 2000, March 31, 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
2
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INDEX
<TABLE>
<CAPTION>
Page
PART 1. Number
------
<S> <C>
ITEM 1. Financial Statements (unaudited)............................................ 3
Balance Sheet as at June 30, 2000 and
December 31, 1999....................................................... 4
Statement of Operations
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............................ 5
Statement of Changes in Shareholders' Equity
For the period from March 4, 1999 (Date of
Incorporation) to June 30, 2000............................ 6
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............................ 7
Notes to the Financial Statements................................. 8
ITEM 2. Plan of Operations......................................................... 11
PART 11 Signatures................................................................. 12
</TABLE>
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 Zeb Oro Explorations Inc. (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 and for the six
months ended June 30, 2000 and June 30, 1999 and for the period from March 4,
1999 (date of incorporation) to June 30, 2000 and the statement of stockholders'
equity 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.
4
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ZEB ORO EXPLORATIONS INC.
(Exploration Stage Company)
BALANCE SHEET
June 30, 2000 and December 31, 1999
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
JUNE 30, DECEMBER 31,
2000 1999
---- ----
<S> <C> <C>
ASSETS
CURRENT ASSETS
Bank $ 1,066 $ 340
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$ 1,066 $ 340
====== ========
LIABILITIES
Accounts payable and accrued liabilities $ 3,324 $ 2,300
Due to director 10,540 6,540
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13,864 8,840
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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 11,025
Capital in excess of par value 16,875 11,475
Deficit accumulated during the development stage (40,698) (31,000)
------- --------
Total Stockholders' Equity (12,798) (8,500)
------- --------
$ 1,066 $ 340
======= ========
</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
5
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ZEB ORO EXPLORATIONS INC.
(Exploration Stage Company)
STATEMENT OF OPERATIONS
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 period from
March 4, 1999 (Date of Inception) to June 30, 2000
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
FOR THE FOR THE FOR THE FOR THE
THREE THREE SIX SIX FROM
MONTHS MONTHS MONTHS MONTHS INCEPTION
ENDED ENDED ENDED ENDED TO
JUNE 30, JUNE 30, JUNE 30, JUNE 30, JUNE 30,
2000 1999 2000 1999 2000
---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C>
SALES $ -- $ -- $ -- $ -- $ --
----------- --------- ---------- --------- --------
GENERAL AND
ADMINISTRATIVE
EXPENSES:
Accounting and audit 950 250 2,025 2,250 7,075
Bank charges and interest 29 39 98 109 259
Consulting -- 3,000 -- 3,000 4,300
Edgar filing fees -- 794 408 794 3,922
Geology report -- -- -- 1,200 1,775
Incorporation costs
written off
-- -- -- 670 670
Management fees 1,500 1,500 3,000 2,000 8,000
Office expenses 199 508 323 508 1,386
Rent 900 900 1,800 1,200 4,800
Staking fees -- -- -- 368 3,172
Telephone 300 300 600 400 1,600
Transfer agent's fees -- 1,095 1,444 2,296 3,739
----------- ------- ---------- --------- ---------
NET LOSS $ (3,878) $ (10,386) $ (9,698) $ (14,795) $ (40,698)
=========== ======= ========== ========= ========
NET LOSS PER
COMMON SHARE
Basic $ -- $ -- $ -- $ --
========== ========= ========== =========
AVERAGE
OUTSTANDING SHARES
Basic 11,025,000 9,986,229 11,025,000 9,986,229
========== ========= ========== =========
</TABLE>
The accompanying notes are an integral part
of these unaudited financial statements.
6
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ZEB ORO EXPLORATIONS INC.
(Exploration Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the period from March 4, 1999 (Date of Inception)
to June 30, 2000
(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 14,400
Net operating loss for the period from
March 4, 1999 to June 30, 2000 -- -- -- (40,698)
BALANCE JUNE 30, 2000 11,025,000 $ 11,025 $ 16,875 $ (40,698)
========== ======= ======== ========
</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
7
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ZEB ORO EXPLORATIONS INC.
(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)
<TABLE>
<CAPTION>
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
OPERATING ACTIVITIES:
Net loss $ (9,698) $ (14,795) $ (40,698)
Adjustments to reconcile net loss to net cash
Increase in accounts payable 1,024 834 3,324
Increase in due to a director 4,000 -- 10,540
Capital contributions - expenses 5,400 3,600 14,400
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Net Cash from Operations 726 (10,361) (12,434)
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CASH FLOWS FROM FINANCING
Proceeds from issuance of common stock -- 13,500 13,500
---------- -------- -------
Net Increase (Decrease) in Cash 726 3,139 1,066
Cash at Beginning of Period 340 -- --
---------- -------- -------
CASH AT END OF PERIOD $ 1,066 $ 3,139 $ 1,066
========== ======== =======
SCHEDUKE OF NONCASH OPERATING ACTIVITIES
Capital contributions - expenses $ 14,400
=======
</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
8
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ZEB ORO EXPLORATIONS INC.
(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. 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 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
On June 30, 2000 the Company had a net operating loss carry forward of
$40,698. 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 doubtful since the Company has no operations. The loss carry forward
will expire in 2020.
Earnings (Loss) per Share
Earnings (loss) per share amounts are computed based on the weighted
average number of shares actually outstanding.
Comprehensive Income
The Company adopted Statement of Financial Accounting Standards No.
130. The adoption of the standard had no impact on the total
stockholder's equity.
9
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ZEB ORO EXPLORATIONS INC.
(Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 30, 2000
(Unaudited - Prepared by Management)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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.
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 Instruments
The carrying amount of financial instruments, including cash and
accounts payable,, 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.
10
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ZEB ORO EXPLORATIONS INC.
(Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
June 30, 2000
(Unaudited - Prepared by Management)
3. ACQUISITION OF MINERAL CLAIM
The Company has acquired one 15 unit metric 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, 2001.
The claims may be retained by the Company by making a yearly lease
payment in the amount of CDN $3,000 on February 25, 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 for the
coming year.
11
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ITEM 2. PLAN OF OPERATIONS
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The Company has not yet proceeded to its mineral claim to undertake a soil
sampling program on the geochemical grid it outlined in October of last year. No
decision has been made to date by the directors of the Company as to what date
to commence the sampling program. The general feeling by the directors is that
the fire assays from the soil samples will concentrate on precious metals rather
than commercial metals.
Liquidity and Capital Resources
The Company has not yet decided on the method of raising funds in order to
undertake its soil sampling program on its mineral claims.
Results of Operations
To date the Company has had no operations.
12
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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)
July 21, 2000 /c/ "Steven Bruce"
-------------------------------------
Steven Bruce - President and Director
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