` 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, 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
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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, British Columbia, Canada V7N 3G7
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(Address of principal executive offices) (Zip Code)
1-604-985-8940
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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 July 31, 2000
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Common Stock, $0.001 per share 250,000
<PAGE>
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
Coronado Explorations LTD
We have reviewed the condensed balance sheet of Coronado Explorations LTD
(exploration stage company) as of July 31, 2000 and January 31, 2000 and the
related condensed statements of operations and the condensed statement of cash
flows for the three and six months ended July 31, 2000 and 1999 and the period
February 2, 1999 (date of inception) to July 31, 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
September 15, 2000
2
<PAGE>
INDEX
<TABLE>
<CAPTION>
Page
PART 1. Number
------
<S> <C>
ITEM 1. Financial Statements (unaudited).............................................. 4
Balance Sheet as at July 31, 2000
(with comparative figures as at January 31,
2000)................................................................ 5
Statement of Operations
For the three months ended July 31, 2000,
for the three Months ended July 31, 1999,
for the six months ended July 31, 2000, for
the six months ended July 31, 1999 And for
the period from February 2, 1999 (Date of
Incorporation) to July 31, 2000...................................... 6
Statement of Changes in Shareholders' Equity
For the period from February 2, 1999 (Date of
Incorporation) to July 31, 2000.................................... 7
Statement of Cash Flows
For the six months ended July 31, 2000, for the
six months ended July 31, 1999 and for the
period from February 2, 1999 (Date of
Incorporation) to July 31, 2000...................................... 8
Notes to the Financial Statements............................................. 9
ITEM 2. Plan of Operations............................................................ 12
PART 11 Signatures.................................................................... 13
</TABLE>
3
<PAGE>
PART 1 - FINANCIAL INFORMATION
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ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
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The accompanying balance sheet of Coronado Explorations Ltd. (an exploration
stage company) at July 31, 2000 (with comparative figures as at January 31,
2000) and the statement of operations and statement of cash flows for the three
months ended July 31, 2000 and 1999 and for the period from February 2, 1999
(date of incorporation) to July 31, 2000 and the statement of stockholders'
equity for the period from February 2, 1999 (date of incorporation) to July 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 July 31, 2000, are not necessarily
indicative of the results that can be expected for the year ending January 31,
2001.
4
<PAGE>
CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
BALANCE SHEET
July 31, 2000 and January 31, 2000
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
JULY 31 JANUARY 31
2000 2000
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<S> <C> <C>
ASSETS
CURRENT ASSETS
Bank $ 15 $ 1,179
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$ 15 $ 1,179
======== =========
LIABILITIES
Accounts payable and accrued liabilities 1,700 3,242
Due to a director 13,711 9,211
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15,411 12,453
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STOCKHOLDERS' EQUITY
Common stock
25,000,000 shares authorized, at $0.001 par
value, 250,000 shares issued and outstanding 250 250
Capital in excess of par value 18,450 13,050
Deficit accumulated during the exploration stage (34,096) (24,574)
-------- ---------
Total Stockholders' Equity (Deficiency) (15,396) (11,274)
-------- ---------
$ 15 $ 1,179
======== =========
</TABLE>
The accompanying notes are an integral part of these unaudited financial
statements.
5
<PAGE>
CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
STATEMENT OF OPERATIONS
For the three months ended July 31, 2000,
for the three months ended July 31, 1999,
For the six months ended July 31, 2000,
for the six months ended July 31, 1999
And for the period from February 2, 1999 (Date of Inception) to
July 31, 2000
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
SIX SIX
THREE MONTHS THREE MONTHS MONTHS MONTHS FROM
ENDED ENDED ENDED ENDED INCEPTION
JULY 31, JULY 31, JULY 31, JULY 31, TO
2000 1999 2000 1999 JULY 31, 2000
---- ---- ---- ---- -------------
<S> <C> <C> <C> <C> <C>
SALES $ -- $ -- $ -- $ -- $ --
----- ------ ----- ----- --------
GENERAL AND ADMINISTRATIVE
EXPENSES:
Accounting and audit 825 500 1,950 2,000 6,500
Annual fee -- -- -- -- 125
Bank charges and interest 41 25 62 40 159
Edgar filing fees -- 844 -- 844 3,465
Franchise tax -- -- 100 -- 100
Geological report -- -- 500 1,270 2,270
Incorporation costs -- -- -- 519 519
Management fees 1,500 1,500 3,000 3,000 9,000
Office expenses 91 191 310 221 945
Rent 900 900 1,800 1,800 5,400
Staking costs -- -- -- 348 348
Telephone 300 300 600 600 1,800
Transfer agent's fees -- 1,065 1,200 2,265 3,465
----- ------ ----- ----- --------
NET LOSS $3,657 $ 5,325 $9,522 $12,907 $ 34,096
===== ====== ===== ====== ========
NET LOSS PER COMMON SHARE
Basic $ 0.01 $ 0.02 $ 0.03 $ 0.07
===== ====== ===== ======
AVERAGE OUTSTANDING SHARES
Basic 250,000 250,000 250,000 170,833
======= ======= ======= =======
</TABLE>
The accompanying notes are an integral part of these unaudited financial
statements.
6
<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, 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 FEBRUARY 2, 1999 (DATE OF INCEPTION) -- $ -- $ -- $ --
Issuance of common shares for cash at
$0.01 - March 31, 1999 250,000 250 2,250 --
Capital contribution - expenses -- -- 16,200
Net operating loss for the period from
February 2, 1999 to July 31, 2000 -- -- -- (34,096)
------- ------ -------- -----------
BALANCE JULY 31, 2000 250,000 $ 250 $ 18,450 $ (34,096)
======= ====== ======== ===========
</TABLE>
The accompanying notes are an integral part of these unaudited financial
statements.
7
<PAGE>
CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
STATEMENT OF CASH FLOWS
For the three months ended July 31, 2000,
for the three months ended July 31, 1999
And for the period from February 2, 1999 (Date of Inception) to July 31, 2000
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
FOR THE THREE FOR THE THREE FROM INCEPTION
MONTHS ENDED MONTHS ENDED TO
JULY 31, 2000 JULY 31, 1999 JULY 31, 2000
------------- ------------- -------------
<S> <C> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss $ (9,522) $ (12,907) $ (34,096)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Increase in accounts payable (1,542) (1,570) 1,700
Increase in due to a director 4,500 (264) 13,711
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Net Cash (Deficiency) from Operations (6,564) (14,741) (18,685)
------- --------- ---------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Capital contribution - expenses 5,400 15,695 16,200
Proceeds from issuance of common stock -- 250 2,500
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5,400 15,945 18,700
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Net Increase (Decrease) in Cash (1,164) 1,204 15
Cash at Beginning of Period 1,179 -- --
------- --------- ---------
CASH AT END OF PERIOD $ 15 $ 1,204 $ 15
======= ========= =========
</TABLE>
The accompanying notes are an integral part of these unaudited financial
statements.
8
<PAGE>
CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
July 31, 2000
(Unaudited - Prepared by Management)
1. ORGANIZATION
The Company was incorporated under the laws of the State of Nevada 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. At the report date mineral claims, with unknown
reserves, had 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 two Regulation D offerings 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
At July 31, 2000, the Company had a net operating loss carry forward of
$34,096. The tax benefit from the loss carry forward has been 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.
9
<PAGE>
CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
July 31, 2000
(Unaudited - Prepared by Management)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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 and carrying 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
At the report date environmental requirements related to the mineral leases
acquired (Note 3) are unknown and therefore any estimate of any future cost
cannot be made.
Financial Instruments
The carrying amounts of financial instruments, including cash 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. Actual results could vary from the
estimates that were assumed in preparing these financial statements.
10
<PAGE>
CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
July 31, 2000
(Unaudited - Prepared by Management)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Comprehensive Income
The Company adopted Statement of Financial Accounting Standard No. 130. The
adoption of this standard had no impact on the total stockholder's equity.
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.
3. PURCHASE OF MINERAL LEASES
The Company has acquired mineral claims located in the Bralorne Mining area
of British Columbia with an expiration date of February 26, 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.
The cost of maintaining the claims in good standing for a further year is
$2,800.
4. RELATED PARTY TRANSACTIONS
Related parties acquired 61% of the common shares issued for cash.
5. GOING CONCERN
The Company will need additional working capital to be successful in its
efforts to develop the mineral lease acquired and therefore 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.
11
<PAGE>
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ITEM 2. PLAN OF OPERATIONS
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The management of the Company is considering seeking another project due to the
current market price of mineral.
At the first Annual General Meeting held on August 2, 2000 the shareholders
approved the following:
1. The forward splitting of the common shares on the basis of a maximum of a
hundred new shares for one hold share or at whatever number the directors,
at their sole discretion, deem appropriate.
2. Approval for the directors, at their sole discretion, to seek out and enter
into negotiations for a new project for the Company.
The directors have not decided upon the exact number of shares to be split under
the forward split of the share capital.
To date the Company has not entered into any negotiation for a new project for
the Company although the directors have considered several. Once a decision has
been made the directors will advise the shareholders accordingly.
Liquidity and Capital Resources
The Company, at the present time, does not have the capital resources to develop
its mineral property and until mineral prices strengthen it does not intend to
develop the mineral claims. There are not adequate funds in the Company to
undertake any exploration activities. The only methods of obtaining funds are
for the directors to advance loans personally to the Company, guarantee a bank
loan or issue common shares. None of these methods have been considered to date.
Results of Operations
The Company has had no operations during the current period.
12
<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)
September 15, 2000 /s/ "Carsten Mide"
------------------------------- ------------------------------
Date Carsten Mide - Director
13
