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 October 31, 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 0-26309
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CORONADO EXPLORATIONS LTD.
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(Exact name of registrant as specified in charter)
Delaware 98-0200471
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
397 Ventura Crescent
North Vancouver, BC, Canada V7N 3G7
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(Address of principal executive offices) (Zip Code)
604-985-8940
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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 November 12, 1999
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Common Stock, $0.001 per share 250,000
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INDEX
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Page
Number
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PART 1.
ITEM 1. Financial Statements (unaudited)......................................... 3
Balance Sheet as at October 31, 1999 .................................... 4
Statement of Operations
For the three months ended October 31, 1999 and
for the period from February 2, 1999 (Date of
Incorporation) to October 31, 1999.................................. 5
Statement of Changes in Shareholders' Equity
For the period from February 2, 1999 (Date of
Incorporation) to October 31, 1999.................................. 6
Statement of Cash Flows
For the three months ended October 31, 1999 and
for the period from February 2, 1999 (Date of
Incorporation) to October 31, 1999.................................. 7
Notes to the Financial Statements........................................ 8
ITEM 2. Plan of Operations....................................................... 11
PART 11 Signatures............................................................... 12
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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 Coronado Explorations Ltd. (an exploration
stage company) at October 31, 1999 and the statement of operations and statement
of cash flow for the three months ended October 31, 1999 and for the period from
February 2, 1999 (date of incorporation) to October 31, 1999 and the statement
of stockholders' equity for the period from February 2, 1999 (date of
incorporation) to October 31, 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 October 31, 1999, are not necessarily
indicative of the results that can be expected for the year ending January 31,
2000.
3
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CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
BALANCE SHEET
October 31, 1999
(Unaudited - Prepared by Management)
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<CAPTION>
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ASSETS
CURRENT ASSETS
Bank $ 385
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$ 385
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LIABILITIES
Accounts payable and accrued liabilities $ 1,550
Accounts payable - related party 6,211
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7,761
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STOCKHOLDERS' EQUITY
Common stock
25,000,000 shares authorized, at $0.001 par
value, 250,000 shares issued and outstanding 250
Capital in excess of par value 10,350
Deficit accumulated during the exploration stage (17,976)
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Total Stockholders' Equity (7,376)
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$ 385
==========
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The accompanying notes are an integral part of these
unaudited financial statements.
<PAGE>
CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
STATEMENT OF OPERATIONS
For the three months ended October 31, 1999 and for period from
February 2, 1999 (Date of Inception) to October 31, 1999
(Unaudited - Prepared by Management)
FOR THE THREE FROM INCEPTION
MONTHS ENDED TO
OCTOBER 31, 1999 OCTOBER 31, 1999
---------------- ----------------
SALES $ -- $ --
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GENERAL AND ADMINISTRATIVE EXPENSES:
Accounting and audit 600 2,600
Annual fee 125 125
Bank charges and interest 19 59
Edgar filing fees 1,125 1,969
Geology report 500 1,770
Incorporation costs written off -- 519
Management fees 1,500 4,500
Office expenses -- 221
Rent 900 2,700
Staking fees -- 348
Telephone 300 900
Transfer agent's fees -- 2,265
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NET LOSS $ 5,069 $ 17,976
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NET LOSS PER COMMON SHARE
Basic $ 0.02 $ 0.09
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AVERAGE OUTSTANDING SHARES
Basic 250,000 196,168
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The accompanying notes are an integral part of these
unaudited financial statements.
5
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CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the period from February 2, 1999 (Date of Inception)
to October 31, 1999
(Unaudited - Prepared by Management)
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CAPITAL IN
COMMON STOCK EXCESS OF ACCUMULATED
SHARES AMOUNT PAR VALUE DEFICIT
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<S> <C> <C> <C> <C>
BALANCE FEBRUARY 2, 1999 (date of inception) -- $ -- $ -- $ --
Issuance of common shares for cash at
$0.01 - March 31, 1999 250,000 250 2,250 --
Capital contributions - expenses 8,100
Net operating loss for the period from
February 2, 1999 to October 31, 1999 -- -- -- (17,976)
BALANCE OCTOBER 31, 1999 250,000 $ 250 $ 10,350 $(17,976)
======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
6
<PAGE>
CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
STATEMENT OF CASH FLOWS
For the three months ended October 31, 1999 and for the period from
February 2, 1999 (Date of Inception) to October 31, 1999
(Unaudited - Prepared by Management)
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<CAPTION>
FOR THE THREE FROM INCEPTION
MONTHS ENDED TO
OCTOBER 31, 1999 OCTOBER 31, 1999
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<S> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss $ (5,069) $ (17,976)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Increase in accounts payable 1,550 1,550
Increase in accounts - related party -- 6,211
Capital contributions - expenses 2,700 8,100
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Net Cash from Operations (819) (2,115)
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CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of common stock -- 2,500
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Net Increase in Cash (819) 385
Cash at Beginning of Period 1,204 --
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CASH AT END OF PERIOD $ 385 $ 385
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</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
7
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CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
October 31, 1999
(Unaudited - Prepared by Management)
1. ORGANIZATION
The Company was incorporated under the laws of the State of Delaware on
February 2, 1999 with the authorized common shares of 25,000,000 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 250,000 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 January 31, 2000 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
period ending January 31, 2000, 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.
8
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CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
October 31, 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
Environmental requirements related to the mineral claims acquired (Note
3) are unknown and therefore an estimate of any future cost cannot be
made.
Financial Instrument
The carrying amount of financial instrument, being cash, 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.
9
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CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
October 31, 1999
(Unaudited - Prepared by Management)
3. ACQUISTION OF MINERAL CLAIMS
The Company has acquired mineral claims located in the Bralorne Mining
area of British Columbia with an expiration date of February 26, 2000.
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 61% 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 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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It is anticipated before the winter arrives at the Coronado mineral claim the
Company will be able to undertake a small exploration program comprising of a
geochemical grid which subsequently can be sampled in the spring of the year
2000. There is no guarantee that the Company will be able to access the property
but anticipates doing so at the present time.
Liquidity and Capital Resources
At the present time the Company does not have sufficient working capital on hand
to undertake any exploration program unless it is financed by the directors and
officers themselves. Management realizes that to be successful in its future
exploration program it will have to obtained additional funding. The areas of
consideration for the additional funding will either be institutional borrowing
or through the issuance of its common shares. No consideration has been given to
the form of financing at the present time.
Results of Operations
The Company has had no operations and therefore no results can be given at this
time.
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.
CORONADO EXPLORATIONS LTD.
(Registrant)
November 12, 1999 /s/ "Mary Hethey"
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Date Mary Hethey - President and Director
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