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 April 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 0-26309
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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, 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 April 30, 2000
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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 April 30, 2000
(with comparative figures as at January 31, 2000).... 4
Statement of Operations
For the three months ended April 30, 2000, for
the three months ended April 30, 1999 and
for the period from February 2, 1999 (Date
of Incorporation) to April 30, 2000................. 5
Statement of Changes in Shareholders' Equity
For the period from February 2, 1999 (Date of
Incorporation) to April 30, 2000.................... 6
Statement of Cash Flows
For the three months ended April 30, 2000, for
the three months ended April 30, 1999 and
for the period from February 2, 1999 (Date
of Incorporation) to April 30, 2000................. 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 April 30, 2000 (with comparative figures as at January 31,
2000) and the statement of operations and statement of cash flows for the three
months ended April 30, 2000, for the three months ended April 30, 1999 and for
the period from February 2, 1999 (date of incorporation) to April 30, 2000 and
the statement of stockholders' equity for the period from February 2, 1999 (date
of incorporation) to April 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 April 30, 2000, are not necessarily
indicative of the results that can be expected for the year ending January 31,
2001.
3
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CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
BALANCE SHEET
April 30, 2000 and January 31, 2000
(Unaudited - Prepared by Management)
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<CAPTION>
APRIL 30 JANUARY 31
2000 2000
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<S> <C> <C>
ASSETS
CURRENT ASSETS
Bank $ -- $ 1,179
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$ -- $ 1,179
======== =========
LIABILITIES
Bank overdraft 1,653 --
Accounts payable and accrued liabilities 1,075 3,242
Due to a director 11,711 9,211
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14,439 12,453
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STOCKHOLDERS' EQUITY
Common stock
25,000,000 shares authorized, at $0.001 par
value, 250,000 shares issued and outstanding 250 250
Capital in excess of par value 15,750 13,050
Deficit accumulated during the exploration stage (30,439) (24,574)
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Total Stockholders' Equity (14,439) (11,274)
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$ -- $ 1,179
========= =========
</TABLE>
The accompanying notes are an integral part of these unaudited financial
statements.
4
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CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
STATEMENT OF OPERATIONS
For the three months ended April 30, 2000,
for the three months ended April 30, 1999
And for the period from February 2, 1999 (Date of Inception) to
April 30, 2000
(Unaudited - Prepared by Management)
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<CAPTION>
THREE MONTHS THREE MONTHS FROM INCEPTION
ENDED ENDED TO
APRIL 30, 2000 APRIL 30, 1999 APRIL 30, 2000
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<S> <C> <C> <C>
SALES $ -- $ -- $ --
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GENERAL AND
ADMINISTRATIVE EXPENSES:
Accounting and audit 1,125 1,500 5,675
Annual fee -- -- 125
Bank charges and interest 21 15 118
Edgar filing fees -- -- 3,465
Franchise tax 100 -- 100
Geological report 500 1,270 2,270
Incorporation costs -- 519 519
Management fees 1,500 1,500 7,500
Office expenses 219 30 854
Rent 900 900 4,500
Staking costs -- 348 348
Telephone 300 300 1,500
Transfer agent's fees 1,200 1,200 3,465
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NET LOSS $ 5,865 $ 7,582 $ 30,439
======== ========= ========
NET LOSS PER COMMON SHARE
Basic $ 0.02 $ 0.09
======= ========
AVERAGE OUTSTANDING SHARES
Basic 250,000 88,068
======= ========
</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
April 30, 2000
(Unaudited - Prepared by Management)
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<CAPTION>
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 contribution - expenses -- -- 13,500
Net operating loss for the period from
February 2, 1999 to April 30, 2000 -- -- -- --
-------- -------- ----------- -----------
BALANCE APRIL 30, 2000 250,000 $ 250 $ 15,750 $(30,439)
======== ======== =========== ===========
</TABLE>
The accompanying notes are an integral part of these unaudited financial
statements.
6
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CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
STATEMENT OF CASH FLOWS
For the three months ended April 30, 2000,
for the three months ended April 30, 1999
And for the period from February 2, 1999 (Date of Inception) to April 30, 2000
(Unaudited - Prepared by Management)
<TABLE>
<CAPTION>
FOR THE THREE FOR THE THREE FROM INCEPTION
MONTHS ENDED MONTHS ENDED TO
APRIL 30, 2000 APRIL 30, 1999 APRIL 30, 2000
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<S> <C> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss $ (5,865) $ (7,582) $ (30,439)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Increase in accounts payable (2,167) 1,570 1,075
Increase in due to a director 2,500 6,475 11,711
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Net Cash from Operations (5,532) 463 (17,653)
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CASH FLOWS FROM FINANCING
ACTIVITIES:
Capital contribution - expenses 2,700 2,700 13,500
Proceeds from issuance of common stock -- 2,500 2,500
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2,700 5,200 16,000
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Net Increase in Cash (2,832) 5,663 (1,653)
Cash at Beginning of Year 1,179 -- --
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CASH AT END OF YEAR $ (1,653) $ 5,663 $ (1,653)
========== =========== =========
</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
April 30, 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 April 30, 2000, the Company had a net operating loss carry forward of
$30,439. 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
undeterminable since the Company has no operations. The net operating loss
will expire in 2021.
Base 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.
8
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CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
April 30, 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, prepaid
expenses and deferred offering costs are considered by management to be
their standard 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.
9
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CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
April 30, 2000
(Unaudited - Prepared by Management)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Comprehensive Income
The Company adopted Statement of Financial Accounting Standards 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.
4. RELATED PARTY TRANSACTIONS
Related parties acquired 61% of the common shares issued for cash.
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
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.
10
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ITEM 2. PLAN OF OPERATIONS
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The Company has not undertaken an exploration program on its property but
anticipates once the snow has melted in the Bralorne mining area that management
will consider an exploration program. The basic exploration program that
management is considering is one where a geochemcial grid will be established
over part of the property and subsequently soil samples will be taken at
specific intervals to determine the mineralization and location of any ore body.
This program will occur during the latter part of the summer of 2000.
Liquidity and Capital Resources
The Company does not have sufficient funds to undertaken an exploration program
in the late summer of 2000. The funds will have to be obtained either by
advances from its directors, bank lending or an issuance of the Company's common
stock. At present the directors have not decided as to how they intend to raise
the required funding. An estimate as to the funds required to explore the
mineral claim is approximately $25,000.
Results of Operations
Today the Company has not had any operating results.
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)
June 13, 2000 /s/ "Mary Hethey"
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Date Mary Hethey - President
June 13, 2000 /s/ "Carsten Mide"
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Date Carsten Mide - Director
12
