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 July 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 October 4, 1999
- ----------------------------------- ----------------------------------
Common Stock, $0.001 per share 250,000
<PAGE>
INDEX
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<CAPTION>
Page
PART 1. Number
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<S> <C> <C>
ITEM 1. Financial Statements (unaudited)............................................. 3
Balance Sheet as at July 31, 1999................................... 4
Statement of Operations
For the three months ended July 31, 1999 and for
the period from February 2, 1999 (Date of
Incorporation) to July 31, 1999.............................. 5
Statement of Changes in Shareholders' Equity
For the period from February 2, 1999 (Date of
Incorporation) to July 31, 1999.................................. 6
Statement of Cash Flows
For the three months ended July 31, 1999 and for
the period from February 2, 1999 (Date of
Incorporation) to July 31, 1999............................. 7
Notes to the Financial Statements................................... 8
ITEM 2. Plan of Operations........................................................... 11
PART 11 Signatures................................................................... 12
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2
<PAGE>
PART 1 - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The accompanying balance sheet of Coronado Explorations Ltd. (an exploration
stage company) at July 31, 1999 and the statement of operations and statement of
cash flow for the three months ended July 31, 1999 and for the period from
February 2, 1999 (date of incorporation) to July 31, 1999 and the statement of
stockholders' equity for the period from February 2, 1999 (date of
incorporation) to July 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 July 31, 1999, are not necessarily
indicative of the results that can be expected for the year ending January 31,
2000.
3
<PAGE>
CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
BALANCE SHEET
July 31, 1999
(Unaudited - Prepared by Management)
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<S> <C>
ASSETS
CURRENT ASSETS
Bank $ 1,204
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$ 1,204
=========
LIABILITIES
Accounts payable - related party $ 6,211
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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 7,650
Deficit accumulated during the exploration stage (12,907)
---------
Total Stockholders' Equity (5,007)
---------
$ 1,204
=========
</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
4
<PAGE>
CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
STATEMENT OF OPERATIONS
For the three months ended July 31, 1999 and for period from
February 2, 1999 (Date of Inception) to July 31, 1999
(Unaudited - Prepared by Management)
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<CAPTION>
FOR THE THREE FROM INCEPTION
MONTHS ENDED TO
JULY 31, 1999 JULY 31, 1999
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<S> <C> <C>
SALES $ - $ -
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GENERAL AND ADMINISTRATIVE EXPENSES:
Accounting and audit 500 2,000
Bank charges and interest 25 40
Edgar filing fees 844 844
Geology report - 1,270
Incorporation costs written off - 519
Management fees 1,500 3,000
Office expenses 191 221
Rent 900 1,800
Staking fees - 348
Telephone 300 600
Transfer agent's fees 1,065 2,265
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NET LOSS $ 5,325 $ 12,907
========= ========
NET LOSS PER COMMON SHARE
Basic $ 0.02 $ 0.10
========= ========
AVERAGE OUTSTANDING SHARES
Basic 250,000 177,746
========= ========
</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
5
<PAGE>
CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the period from February 2, 1999 (Date of Inception)
to July 31, 1999
(Unaudited - Prepared by Management)
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<CAPTION>
CAPITAL IN
COMMON STOCK EXCESS OF ACCUMULATED
SHARES AMOUNT PAR VALUE DEFICIT
------ ------ --------- -------
<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 5,400
Net operating loss for the period from
February 2, 1999 to July 31, 1999 - - - (12,907)
- - - -
------- ----------- --------- ----------
BALANCE JULY 31, 1999 250,000 $ 250 $ 7,650 $ (12,907)
======= =========== ========= ==========
</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 July 31, 1999 and for the period from
February 2, 1999 (Date of Inception) to July 31, 1999
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
FOR THE THREE FROM INCEPTION
MONTHS ENDED TO
JULY 31, 1999 JULY 31, 1999
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<S> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss $ (5,325) $ (12,907)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Increase in accounts payable (1,570) -
Increase in accounts - related party (264) 6,211
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Net Cash from Operations (7,159) (6,696)
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CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of common stock - 2,500
Capital contributions 2,700 5,400
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2,700 7,900
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Net Increase in Cash (4,459) 1,204
Cash at Beginning of Period 5,663 -
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CASH AT END OF PERIOD $ 1,204 $ 1,204
========== =========
</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
7
<PAGE>
CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
July 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
<PAGE>
CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
July 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
<PAGE>
CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
July 31, 1999
(Unaudited - Prepared by Management)
3. ACQUISITION OF MINERAL CLAIM
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
<PAGE>
ITEM 2. PLAN OF OPERATIONS
The Company will explore the Coronado claims in the Bralorne Mining area during
the latter part of 1999 by engaging the services of a team of workers to prepare
a geochemical grid for subsequent sampling. This work will be carried out during
the month of October.
There are no plans to date for the Company to acquire other mineral claims but
in the future consideration will be given to the seeking out other mineral
claims of merit.
Liquidity and Capital Resources
The Company will need additional working capital to finance its activities on
the Coronado claims. The exploration work which will take place in October will
be paid for by advances from the officers and directors of the Company. It is
estimated that approximately $5,000 might be required to complete the
geochemical grid program.
Results of Operations
There are no operations at this time and it is doubtful whether it will have any
revenues for a number of years.
11
<PAGE>
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)
October 4, 1999 /c/ "Mary Hethey"
- -------------------------------- ------------------------------------
Date Mary Hethey - President and Director
12
