UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-KSB
(x) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES ACT OF
1934 (FEE REQUIRED)
For the fiscal year ended January 31, 2000
(x) TRANSACTION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 (NO FEE REQUIRED) For the transaction period from
____________________ to __________________
Commission File number 0-26309
-----------
CORONADO EXPLORATIONS LTD.
--------------------------------------------------------------------
(Exact name of Company as specified in charter)
Delaware 98-0200471
- -------------------------------------------- ----------------------------
State or other jurisdiction of incorporation (I.R.S. Employee I.D. No.)
or organization
397 Ventura Crescent
North Vancouver, British Columbia, Canada V7N 3G7
- -------------------------------------------- ----------------------------
(Address of principal executive offices) (Zip Code)
Issuer's telephone number, including area code 1-604-985-8940
----------------------------
Securities registered pursuant to section 12 (b) of the Act:
Title of each share Name of each exchange on which registered
None None
- --------------------- -----------------------------------------
Securities registered pursuant to Section 12 (g) of the Act:
None
- -------------------
(Title of Class)
Check whether the Issuer (1) filed all reports required to be filed by section
13 or 15 (d) of the Exchange Act during the past 12 months (or for a shorter
period that the Company was required to file such reports), and (2) has been
subject to such filing requirements for the past 90 days.
(1) Yes [X] No [ ] (2) Yes [X] No [ ]
Check if there is no disclosure of delinquent filers in response to Item 405 of
Regulation S-B is not contained in this form, and no disclosure will be
contained, to the best of the Company's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [ ]
State issuer's revenues for its most recent fiscal year: $ -0-
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State the aggregate market value of the voting stock held by nonaffiliates of
the Company. The aggregate market value shall be computed by reference to the
price at which the stock was sold, or the average bid and asked prices of such
stock, as of a specific date within the past 60 days.
As at January 31, 2000, the aggregate market value of the voting stock held by
nonaffiliates is undeterminable and is considered to be 0.
(THE COMPANY INVOLVED IN BANKRUPTCY PROCEEDINGS DURING THE
LAST FIVE YEARS)
Not applicable
(APPLICABLE ONLY TO CORPORATE COMPANYS)
As of January 31, 2000, the Company has 250,000 shares of common stock issued
and outstanding.
DOCUMENTS INCORPORATED BY REFERENCE
List hereunder the following documents if incorporated by reference and the part
of this Form 10-KSB (eg., Part I, Part II, etc.) into which the documents is
incorporated:
(1) Any annual report to security holders;
(2) Any proxy or other information statement;
(3) Any prospectus filed pursuant to Rule 424 (b) or (c) under the
Securities act of 1933.
NONE
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TABLE OF CONTENTS
<TABLE>
<CAPTION>
Page
-----
<S> <C> <C>
PART 1
ITEM 1. DESCRIPTION OF BUSINESS 4
ITEM 2. DESCRIPTION OF PROPERTY 4
ITEM 3. LEGAL PROCEEDINGS 5
ITEM 4. SUBMISSION OF MATTERS TO VOTE OF SECURITIES HOLDERS 5
PART II
ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS 5
ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION 6
ITEM 7. FINANCIAL STATEMENTS 6
ITEM 8. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE 7
PART III
ITEM 9. DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS, AND
CONTROL PERSONS, COMPLIANCE WITH SECTION 16(a) OF THE
EXCHANGE ACT 7
ITEM 10. EXECUTIVE COMPENSATION 11
ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICAL OWNERS AND MANAGEMENT 12
ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS 13
PART IV
ITEM 13. EXHIBITS 14
</TABLE>
3
<PAGE>
PART 1
ITEM 1. DESCRIPTION OF BUSINESS
HISTORY AND ORGANIZATION
Coronado Explorations Ltd. was incorporated on February 2, 1999. The
Company has no subsidiaries and no affiliated companies. The executive offices
of the Company are located at 397 Ventura Crescent, North Vancouver, British
Columbia, Canada, V7N 3G7.
The Company's articles of incorporation currently provide that the Company
is authorized to issue 25,000,000 shares of common stock, par value $0.001 per
share. As at January 31, 2000 there were 250,000 shares outstanding.
The Company is engaged in the exploration of mineral properties. No ore
body has been discovered and no substantial exploration has been done on its
mineral claim. The Company is purely an exploration company. There is no
assurance that any ore body will ever be found and that the Company will have
sufficient funds to undertake the exploration work required to identify an ore
body.
Management anticipates that the Company's shares will be qualified on the
system of the National Association of Securities Dealers, Inc. ("NASD") known as
the Bulletin Board.
The Company has no revenue to date from the development of its mineral
property, and its ability to effect its plans for the future will depend on the
availability of financing. Such financing will be required to develop the
Company's mineral property to a stage where a decision can be made by management
as to whether an ore body exists and can be successfully brought into
production. The Company anticipates obtaining such funds from its directors and
officers, financial institutions or by way of the sale of its capital stock in
the future, but there can be no assurance that the Company will be successful in
obtaining additional capital for exploration activities from the sale of its
capital stock or in otherwise raising substantial capital.
In addition to exploring and developing its mineral property, the Company
plans to seek out additional mineral properties either by way of purchase,
staking or joint venturing of other mineral properties.
ITEM 2. DESCRIPTION OF PROPERTIES
EXPLORATION AND DEVELOPMENT OF THE CORONADO MINERAL PROPERTY
The Company staked certain mineral claims known as the "Coronado" claim
near Goldbridge, British Columbia, Canada. The claim was staked on February 24,
1999 when the previous owners allowed the claim to lapse. The claim covers 20
metric units located within the Bridge River Gold Camp near the historic
Bralorne-Pioneer Mine. The Bralorne-Pioneer Property represents the largest
single gold producer in British Columbia, having produced over 4,000,000 ounces
(130,000 kg) of gold from ore averaging 0.53 oz/ton during the period 1932-1971.
Avino Mines and Resources Ltd. and Bralorne-Pioneer Gold Mines Ltd. are
considering
4
<PAGE>
reactivating the mine that has near surface reserves (above 800 level) of
432,500 tones grading 10.63 g/tonne Au.
Location, Access and Physiology of the Coronado Claim
The Coronado claim is located approximately 180 kilometres north of
Vancouver and four kilometres southeast of the town of Gold Bridge in
southwestern British Columbia. The geographical centre of the claim is given by
the U.T.M. coordinates 516550E, 5631700N (Lat. 50(degree)50'20"N, Long.
122(degree)45'50"W) on N.T.S. map sheet 92J/15. The town of Gold Bridge can be
accessed by all weather gravel road (highway #40B) from Lillooet or via the
Hurley River forestry road from Pemberton. Access to the north end of the claim
is by four wheel drive vehicle up Steep Creek to the headwaters above 6,500 feet
elevation. Helicopters are available from bases in the towns of Pemberton or
Lillooet.
The claim is situated at the northwest end of the Bendor Range within the
Coast Mountains where steep northwest facing slopes range from 5,000 to 8,500
feet in elevation. Sub-alpine scrub alder and hemlock trees grow at lower
elevations in the northwest corner of the claim and rock exposure is good along
peaks and ridges in the south half of the claim. The winters are cold with
generally high snowfall accumulations and summers are hot and dry.
ITEM 3. LEGAL PROCEEDINGS
There are no legal proceedings to which the Company is a party or to which its
property is subject, nor to the best of management's knowledge are any material
legal proceedings contemplated.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITIES HOLDERS
No matters were submitted to a vote of shareholders of the Company during the
fiscal year ended January 31, 2000.
PART II
ITEM 5. MARKET FOR COMMON EQUITY AND RELATED STOCKHOLDER MATTERS
During the past year there has been no established trading market for the
Company's common stock. Since its inception, the Company has not paid any
dividends on its common stock, and the Company does not anticipate that it will
pay dividends in the
5
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foreseeable future. As at January 31, 2000 the Company had 36 shareholders; two
of these shareholders are officers and directors of the Company.
ITEM 6. MANAGEMENT'S DISCUSSION AND ANALYSIS OR PLAN OF OPERATION
OVERVIEW
The Company was incorporated on February 2, 1999 under the laws of the State of
Delaware. The Company's articles of incorporation currently provide that the
Company is authorized to issue 25,000,000 shares of common stock, par value
$0.001 per share. As at January 31, 2000 there were 250,000 shares outstanding.
The Company is engaged in the exploration stage. There is no assurance that
reserves exist in its mineral claim until further exploration work has been done
and economic evaluation based on such work concludes economic feasibility.
Liquidity and Capital Resources
As at January 31, 2000, the Company had $1,179 of assets, and $12,453 of
liabilities, including cash or cash equivalents amounting to $1,179. The
liabilities of $12,453 are amounts of $3,242 accrued for audit and accounting
and for Edgar filing fees and the amount of $9,211 due to a director.
The Company has no contractual obligations for either lease premises, employment
agreements or work commitments on the Coronado claim and has made no commitments
to acquire any asset of any nature.
Results of Operations
Since inception the Company has purchased the Coronado.
ITEM 7. FINANCIAL STATEMENTS
The financial statements of the Company are included following the signature
page to this Form 10-KSB.
6
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ITEM 8. CHANGES IN AND DISAGREEMENT WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
From inception to date, the Company's principal accountant is Andersen Andersen
& Strong, L.C. of Salt Lake City, Utah. The firm's report for the period from
inception to January 31, 2000 did not contain any adverse opinion or disclaimer,
nor were there any disagreements between management and the Company's
accountants.
PART 111
ITEM 9. DIRECTORS AND EXECUTIVE OFFICERS, PROMOTERS, AND
CONTROL PERSONS; COMPLIANCE WITH SECTION 16 (a) OF THE
EXCHANGE ACT
The following table sets forth as of January 31, 2000, the name, age, and
position of each of the executive officers and directors and the term of office
of each director of the Company.
<TABLE>
<CAPTION>
Term as
Director
Name Age Position Held Since
------ ----- ----------------- ----------
<S> <C> <C> <C>
Mary Hethey 50 President and Director 1999
Carsten Mide 55 Director 1999
Stacey Bligh 27 Secretary-Treasurer --
</TABLE>
Each director of the Company serves for a term of one year and until his
successor is elected at the Company's annual shareholders' meeting and is
qualified, subject to removal by the Company's shareholders. Each officer
serves, at the pleasure of the board of directors, for a term of one year and
until his successor is elected at the annual general meeting of the board of
directors and is qualified.
Set forth below is certain biographical information regarding each of the
Company's executive officers and directors.
MARY HETHEY is the Company's founder and has been its President since
inception. She was born in Galt, Ontario, Canada. She was educated at the
University of Toronto where she obtained a Bachelor of Arts degree in honors
Economics. Subsequent to graduation she was employed with Burroughs Business
Machines as a computer programmer during 1974 and 1975 in Vancouver, British
Columbia. Subsequently she
7
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became a student in accounting and articled with Clarkson Gordon (1975-1978) and
Collins Barrow (1978-1980). In 1979 she obtained her degree as a Chartered
Accountant. During the last ten years she was employed as follows:
<TABLE>
<CAPTION>
Type of Years of
Name of Company Business Employment Position Location
--------------- ---------- ------------ ---------- ------------
<S> <C> <C> <C> <C>
North Shore Credit Union Bankers 1997 - 1998 Accountant Vancouver, Canada
Self-employed accountant Consulting 1993 - 1997 Accountant Vancouver, Canada
Harvey Hill, Chartered Professional 1990 - 1993 Accountant West Vancouver, Canada
Accountant Accountant
</TABLE>
Mrs. Hethey was the Secretary Treasurer of Goldking Resources Inc., a
company listed on the OTC Bulletin Board but is no longer in that position. Nine
years ago she was a director and officer of Arthurian Resources Inc. and a
director of Creative Products Inc.; both companies formerly listed on the
Vancouver Stock Exchange.
Mrs. Hethey has had experience in mining companies having performed
accounting and auditing services for them as well as being a director of
Arthurian Resources Inc., a company which had a mineral property in Ontario.
CARSTEN MIDE has been in the property development business for the past
thirty three years and in residential home building for the past 28 years. His
is currently a director and officer of several private companies as follows:
<TABLE>
<CAPTION>
Number of
Business of Executive Years being Jurisdiction of
Name of Company the Company Position Involved Incorporation
- ------------------- ------------- ----------- ----------- ----------------
<S> <C> <C> <C> <C>
Mide Developments Ltd. Property President 33 British Columbia,
development and Director Canada
Mide Holdings Ltd. Residential home President 28 British Columbia,
construction and Director Canada
Dunbarton Properties Ltd. Property President 10 British Columbia,
development and Director Canada
Zarcan Minerals Inc. (*) Mineral Vice-President 1.5 British Columbia,
exploration and Director Canada
</TABLE>
8
<PAGE>
<TABLE>
<S> <C> <C> <C> <C>
Alta Sierra Resources Mineral President 1.5 Alberta, Canada
Inc. exploration and Director
Anyox Resources Inc. Mineral President 1 Nevada
exploration and Director
Five Star International Mineral President 1.5 Alberta, Canada
Resources Inc. exploration and Director
</TABLE>
(*) Zarcan Minerals Inc. is listed on the CDNX Exchange in Canada.
Mr. Mide has not been involved in any public company either in Canada or
the United States and has not been a director or officer of any OTC Bulletin
Board company to date other than Anyox Resources which trades under the symbol
ANYX on the OTC Bulletin Board. As noted above, Mr. Mide has had experience in
mining and has been a director of several mining companies during the past
several years.
STACEY BLIGH has been the Secretary Treasurer of the Company since its
inception. She graduated from Edward Milne Secondary School in 1990 with the
Dogwood Diploma after having achieved the Honor Roll Status for four consequent
years before obtaining a position with Westport Design Centre where her
responsibilities were preparing bid sheets for large development projects, job
costing and co-coordinating activities with various departments. In 1992 she
attended the University of Victoria for two years where she majored in Biology.
Subsequent to leaving university Ms. Bligh became an assistant appraiser for
D.R. Coell & Associates in Victoria, British Columbia where her duties comprised
proof reading all residential property appraisals and ensuring the legal matters
were attended to. In 1995 she moved to Whistler, British Columbia and worked for
Re/Max completing all closing documentation for real estate projects.
Subsequently she was employed by Whistler Resort Association where she was
responsible for food and beverage accounting and supervising all staff at
functions involving cash sales. Presently Ms. Bligh is employed by her personal
wholly-owned company undertaking administrative work for various other
companies.
There are no family relationships between the directors, executive officers
or with any person under consideration for nomination as a director or
appointment as an executive officer of the Registrant.
To the knowledge of management, during the past five years, no present or former
director, executive officer or person nominated to become a director or an
executive officer of the Company:
(1) filed a petition under the federal bankruptcy laws or any state insolvency
law, nor had a receiver, fiscal agent or similar officer appointed by the
court for the business or property of such person, or any partnership in
which he was a general partner at or within two years before the time of
such filings;
9
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(2) was convicted in a criminal proceeding or named subject of a pending
criminal proceeding (excluding traffic violations and other minor
offenses);
(3) was the subject of any order, judgment or decree, not subsequently
reversed, suspended or vacated, of any court of competent jurisdiction,
permanently or temporarily enjoining him from or otherwise limiting, the
following activities:
(i) acting as a futures commission merchant, introducing broker, commodity
trading advisor, commodity pool operator, floor broker, leverage
transaction merchant, associated person of any of the foregoing, or as
an investment advisor, underwriter, broker or dealer in securities, or
as an affiliate person, director or employee of any investment
company, or engaging in or continuing any conduct or practice in
connection with such activity;
(ii) engaging in any type of business practice; or
(iii) engaging in any activities in connection with the purchase or sale of
any security or commodity or in connection with any violation of
federal or state securities laws or federal commodities laws;
(4) was the subject of any order, judgment, or decree, not subsequently
reversed, suspended, or vacated, of any federal or state authority barring,
suspending or otherwise limiting for more than 60 days the right of such
person to engage in any activity described above under this Item, or to be
associated with persons engaged in any such activities;
(5) was found by a court of competent jurisdiction in a civil action or by the
Securities and Exchange Commission to have violated any federal or state
securities law, and the judgment in such civil action or finding by the
Securities and Exchange Commission has not been subsequently reversed,
suspended, or vacated.
(6) was found by a court of competent jurisdiction in a civil action or by the
Commodity Futures Trading Commission to have violated any federal
commodities law, and the judgment in such civil action or finding by the
Commodity Futures Trading Commission has not been subsequently reversed,
suspended or vacated.
COMPLIANCE WITH SECTION 16 (A) OF THE EXCHANGE ACT
The Company knows of no director, officer, beneficial owner of more than ten
percent of any class of equity securities of the Company registered pursuant to
Section 12 ("Reporting Person") that failed to file any reports required to be
furnished pursuant to
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Section 16(a). Other than those disclosed below, the Company knows of no
Reporting Person that failed to file the required reports during the most recent
fiscal year.
The following table sets forth as at January 31, 2000, the name and position of
each Reporting Person that failed to file on a timely basis any reports required
pursuant to Section 16 (a) during the most recent fiscal year.
<TABLE>
<CAPTION>
Name Position Report to be Filed
- ------ ---------- ----------------------
<S> <C> <C>
Mary Hethey President and Director Form 3
Carsten Mide Director Form 3
Stacey Bligh Secretary-Treasurer Form 3
</TABLE>
ITEM 10. EXECUTIVE COMPENSATION
CASH COMPENSATION
There was no cash compensation paid to any director or executive officer of the
Company during the fiscal year ended January 31, 2000.
BONUSES AND DEFERRED COMPENSATION
None
COMPENSATION PURSUANT TO PLANS
None
PENSION TABLE
None
OTHER COMPENSATION
None
COMPENSATION OF DIRECTORS
None
11
<PAGE>
TERMINATION OF EMPLOYMENT
There are no compensatory plans or arrangements, including payments to be
received from the Company, with respect to any person named in Cash
Consideration set out above which would in any way result in payments to any
such person because of his resignation, retirement, or other termination of such
person's employment with the Company or its subsidiaries, or any change in
control of the Company, or a change in the person's responsibilities following a
change in control of the Company.
ITEM 11. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS
AND MANAGEMENT
The following table sets forth as at January 31, 2000, the name and address and
the number of shares of the Company's common stock, with a par value of $0.001
per share, held of record or beneficially by each person who held of record, or
was known by the Company to own beneficially, more than 5% of the issued and
outstanding shares of the Company's common stock, and the name and shareholdings
of each director and of all officers and directors as a group.
<TABLE>
<CAPTION>
Name and Address Amount
of Beneficial Nature of of Beneficial Percent
Owner Ownership (1) Ownership of Class
---------------- --------------- ---------------- ----------
<S> <C> <C> <C>
MARY HETHEY Direct 20,000 8.0%
397 Ventura Crescent
North Vancouver, B.C.
Canada, V7N 3G7
All Officers and Directors Direct 20,000 8.0%
as a Group ( 3 persons )
</TABLE>
(1) All shares owned directly are owned beneficially and of record, and such
shareholder has sole voting, investment and dispositive power, unless
otherwise noted.
12
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ITEM 12. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
TRANSACTIONS WITH MANAGEMENT AND OTHERS
Except as indicated below, there were no material transactions, or series of
similar transactions, since inception of the Company and during its current
fiscal period, or any currently proposed transactions, or series of similar
transactions, to which the Company was or is to be a party, in which the amount
involved exceeds $60,000, and in which any director or executive officer, or any
security holder who is known by the Company to own of record or beneficially
more than 5% of any class of the Company's common stock, or any member of the
immediate family of any of the foregoing persons, has an interest.
INDEBTEDNESS OF MANAGEMENT
There were no material transactions, or series of similar transactions, since
the beginning of the Company's last fiscal year, or any currently proposed
transactions, or series of similar transactions, to which the Company was or is
to be a part, in which the amount involved exceeded $60,000 and in which any
director or executive officer, or any security holder who is known to the
Company to own of record or beneficially more than 5% of the common shares of
the Company's capital stock, or any member of the immediate family of any of the
foregoing persons, has an interest.
TRANSACTIONS WITH PROMOTERS
The Company does not have promoters and has no transactions with any promoters.
13
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PART IV
ITEM 13. EXHIBITS AND REPORTS
(a) (1) FINANCIAL STATEMENTS.
The following financial statements are included in this report:
<TABLE>
<CAPTION>
Title of Document Page
- -------------------- ----
<S> <C>
Report of Andersen, Andersen & Strong, Certified Public Accountants 16
Balance Sheet as at January 31, 2000 17
Statement of Operations for the period from February 2, 1999 (Date of
Inception) to January 31, 2000 18
Statement in Changes in Stockholders' Equity for the period from February 2,
1999 (Date of Inception) to January 31, 2000 19
Statement of Cash Flows for the period from February 2, 1999 (Date of
Inception) to January 31, 2000 20
Notes to the Financial Statements 21
</TABLE>
(a) (2) FINANCIAL STATEMENT SCHEDULES
The following financial statement schedules are included as part of this report:
None.
(a) (3) EXHIBITS
The following exhibits are included as part of this report by reference:
None.
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<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
this report has been signed below by the following persons on behalf of the
Company and in its capacities and on the date indicated:
CORONADO EXPLORATIONS LTD.
Date: May 2, 2000 By: /s/ "Mary Hethey"
---------------------------------
Mary Hethey, President and Director
Date: May 2, 2000 By: /s/ "Carsten Mide"
---------------------------------
Carsten Mide, Director
15
<PAGE>
ANDERSEN ANDERSEN & STRONG, L.C. 941 East 3300 South, Suite 220
Certified Public Accountants and Business Salt Lake City, Utah, 84106
Consultants Board Telephone 801-486-0096
Member SEC Practice Section of the AICPA Fax 801-486-0098
Board of Directors
Coronado Explorations Ltd.
Vancouver B. C. Canada
REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS
We have audited the accompanying balance sheet of Coronado Explorations Ltd.
(exploration stage company) at January 31, 2000, and the statement of
operations, stockholders' equity, and cash flows for the period February 2, 1999
(date of inception) to January 31, 2000. These financial statements are the
responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management as well as evaluating the overall balance sheet presentation. We
believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the financial position of Coronado Explorations Ltd. at
January 31, 2000, and the results of operations, and cash flows for the period
from February 2, 1999 (date of inception) to January 31, 2000, in conformity
with generally accepted accounting principles.
The accompanying financial statements have been prepared assuming that the
Company will continue as a going concern. The Company is in the exploration
stage and will need additional working capital for its planned activity, which
raises substantial doubt about its ability to continue as a going concern.
Management's plans in regard to these matters are described in Note 5. These
financial statements do not include any adjustments that might result from the
outcome of this uncertainty.
Salt Lake City, Utah /s/ "Andersen Andersen & Strong"
May 2, 2000
16
<PAGE>
CORONADO EXPLORATIONS LTD.
(Exploration Stage Company)
BALANCE SHEET
January 31, 2000
<TABLE>
<S> <C>
ASSETS
CURRENT ASSETS
Cash $ 1,179
------
Total Current Assets 1,179
------
OTHER ASSETS
Mineral claims - Note 3 --
------
$ 1,179
======
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable - related party 9,211
Accounts payable 3,242
------
12,453
------
STOCKHOLDERS' EQUITY
Common stock
25,000,000 shares authorized, at $0.001 par
value, 250,000 shares issued and outstanding 2,500
Capital in excess of par value 13,050
Deficit accumulated during the exploration stage (24,574)
--------
Total Stockholders' Equity (11,274)
---------
$ 1,179
=========
</TABLE>
The accompanying notes are an integral part of these unaudited
financial statements.
17
<PAGE>
CORONADO EXPLORATIONS LTD.
(Exploration Stage Company)
STATEMENT OF OPERATIONS
For the Period February 2, 1999
(Date of Inception) to January 31, 2000
<TABLE>
<S> <C>
REVENUES $ --
EXPENSES
NET LOSS $ (24,574)
=========
NET LOSS PER COMMON SHARE
Basic $ (.12)
=========
AVERAGE OUTSTANDING SHARES
Basic 210,800
=========
</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
18
<PAGE>
CORONADO EXPLORATIONS LTD.
(Exploration Stage Company)
STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
For the Period February 2, 1999 (Date of Inception)
to January 31, 2000
<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
$.01 - March 31, 1999 250,000 250 2,250 --
Capital contributions by related
Parties - expenses -- -- 10,800 --
Net operating loss for the period February 2, 1999
to January 31, 2000 -- -- -- (24,574)
. .
------- ------- --------- ---------
BALANCE JANUARY 31, 2000 250,000 $ 250 $ 13,050 $ (24,574)
======= ======= ========= =========
</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
19
<PAGE>
CORONADO EXPLORATIONS LTD.
(Exploration Stage Company)
STATEMENT OF CASH FLOWS
For the Period February 2, 1999
(Date of Inception) to January 31, 2000
<TABLE>
<S> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss $ (24,574)
Adjustments to reconcile net loss to net cash
provided by operating activities:
Changes in accounts payable 3,242
Capital contributions - expenses 10,800
---------
Net Cash Used from Operations (10,532)
---------
CASH FLOWS FROM INVESTING
ACTIVITIES --
---------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from loan - related party 9,211
Proceeds from issuance of common stock 2,500
---------
Net Increase in Cash 1,179
Cash at Beginning of Period --
---------
CASH AT END OF PERIOD $ 1,179
=========
SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES
Capital contributions - expenses $ 10,800
=========
</TABLE>
The accompanying notes are an integral part of these
unaudited financial statements.
20
<PAGE>
CORONADO EXPLORATIONS LTD.
(Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
1. ORGANIZATION
The Company was incorporated under the laws of the State of Delaware on
February 2, 1999 with the authorized common stock of 1,500 shares with no
par value and on April 12, 1999 the authorized common stock was increased
to 25,000,000 shares with a par value of $0.001.
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 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
On January 31, 2000 the Company has a net operating loss available for
carryover against future profits of $24,574 which result in a tax benefit
of $3,686 however the tax benefit from the loss carry forward has been
fully offset by a valuation reserve because the use of tax benefit is
doubtful since the Company has no operations.
The loss carryforward will expire in the year 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.
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CORONADO EXPLORATIONS LTD.
(Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
Capitalization of Mineral Claim Costs
Cost of acquisition, exploration, carrying and retained unproven
properities 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.
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, mineral
claims, and account payable 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.
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 on February 29, 1999.
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.
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CORONADO EXPLORATIONS LTD.
(Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
3. PURCHASE OF MINERAL LEASES
The Company has acquired mineral claims known as the Coronado claims
located in the Bralorne Mining area of British Columbia with an expiration
date of February 24, 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 claims may be retained by the Company by making yearly lease payments
in the amount of $4,000 Cn each year.
4. RELATED PARTY TRANSACTIONS
Related parties have 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 claims 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.
There can be no assurance that management will be successful in this
effort.
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