` 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, 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 October 31, 2000
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Common Stock, $0.001 per share 25,000,000
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ANDERSEN ANDERSEN & STRONG, L.C. 941 East 3300 South, Suite 202
CERTIFIED PUBLIC ACCOUNTANTS AND Salt Lake City, Utah 84106
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 balance sheets of Coronado Explorations Ltd. (exploration
stage company) as of October 31, 2000 and January 31, 2000 and the related
statements of operations and the statements of cash flows for the three and nine
months ended October 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.
Andersen Andersen and Strong
Salt Lake City, Utah
December 20, 2000
2
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INDEX
Page
PART 1. Number
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<S> <C>
ITEM 1. Financial Statements (unaudited)....................................................... 3
Balance Sheet as at October 31, 2000
(with comparative figures as at January 31,
2000)............................................................... 4
Statement of Operations
For the three months ended October 31, 2000, for the three
months ended October 31, 1999, for the nine months ended
October 31, 2000, for the nine months ended October 31, 1999
and for the period from February 2, 1999 (Date of
Incorporation) to October 31, 2000............................... 5
Statement of Cash Flows
For the nine months ended October 31, 2000, for the
nine months ended October 31, 1999 and for the period from
February 2, 1999 (Date of Incorporation) to October 31, 2000........ 6
Notes to the Financial Statements............................................ 7
ITEM 2. Plan of Operations.................................................................... 10
PART 11 Signatures............................................................................ 11
Financial Data Worksheet.....................................................
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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 October 31, 2000 (with comparative figures as at January 31,
2000) and the statement of operations for the three months ended October 31,
2000 and 1999, for the nine months ended October 31, 2000 and 1999 and for the
period from February 2, 1999 (date of incorporation) to October 31, 2000 and the
statement of cash flows for the nine months ended October 31, 2000 and 1999 and
for the period from February 2, 1999 (date of incorporation) to October 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 and cash flows 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, 2000, are not necessarily
indicative of the results that can be expected for the year ending January 31,
2001.
4
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CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
BALANCE SHEET
October 31, 2000 and January 31, 2000
(Unaudited - Prepared by Management)
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<CAPTION>
OCTOBER 31 JANUARY 31
2000 2000
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<S> <C> <C>
ASSETS
CURRENT ASSETS
Bank $ 11 $ 1,179
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$ 11 $ 1,179
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LIABILITIES
Accounts payable and accrued liabilities 3,487 3,242
Due to a director - related party 14,961 9,211
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18,448 12,453
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STOCKHOLDERS' EQUITY
Common stock
100,000,000 shares authorized, at $0.001 par
value, 25,000,000 shares issued and outstanding 25,000 25,000
Capital in excess of par value - deficit - note 1 (3,600) (11,700)
Deficit accumulated during the exploration stage (39,837) (24,574)
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Total Stockholders' Deficiency (18,437) (11,274)
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$ 11 $ 1,179
======== ========
The accompanying notes are an integral part of these unaudited financial statements.
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CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
STATEMENT OF OPERATIONS
For the three months ended October 31, 2000, for the three months ended
October 31, 1999, for the nine months ended October 31, 2000,
for the nine months ended October 31, 1999
and for the period from February 2, 1999 (Date of Inception) to
October 31, 2000
(Unaudited - Prepared by Management)
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<CAPTION>
Three Three Nine Nine From
Months Months Months Months Inception
Ended Ended Ended Ended To
October 31, October 31, October 31, October 31, October 31,
2000 1999 2000 1999 2000
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<S> <C> <C> <C> <C> <C>
SALES $ -- $ -- $ -- $ -- $ --
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GENERAL AND ADMINISTRATIVE EXPENSES:
Accounting and audit 950 600 2,900 2,600 7,450
Annual fee -- 125 -- 125 125
Bank charges and interest 31 19 94 59 190
Edgar filing fees 877 1,125 877 1,969 4,342
Franchise tax -- -- 100 -- 100
Geological report -- 500 500 1,770 2,270
Incorporation costs -- -- -- 519 519
Management fees 1,500 1,500 4,500 4,500 10,500
News releases 500 -- 500 -- 500
Office expenses 142 -- 452 221 1,088
Rent 900 900 2,700 2,700 6,300
Staking costs -- -- -- 348 348
Telephone 300 300 900 900 2,100
Transfer agent's fees 540 -- 1,740 2,265 4,005
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NET LOSS $ 5,740 $ 5,069 $ 15,263 $ 17,976 $39,837
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NET LOSS PER COMMON SHARE
Basic $ -- $ -- $ -- $ --
=========== =========== =========== ===========
AVERAGE OUTSTANDING SHARES
Basic 25,000,000 25,000,000 25,000,000 19,616,800
=========== =========== =========== ==========
The accompanying notes are an integral part of these unaudited financial statements.
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CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
STATEMENT OF CASH FLOWS
For the nine months ended October 31, 2000, for the nine
months ended October 31, 1999 and for the period from
February 2, 1999 (Date of Inception) to October 31, 2000
(Unaudited - Prepared by Management)
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<CAPTION>
FOR THE NINE FOR THE NINE FROM INCEPTION
MONTHS ENDED MONTHS ENDED TO
OCTOBER 31, OCTOBER 31, OCTOBER 31,
2000 1999 2000
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<S> <C> <C> <C>
CASH FLOWS FROM
OPERATING ACTIVITIES:
Net loss $ (15,263) $ (17,976) $ (39,837)
Adjustments to reconcile net loss to net cash
Increase in accounts payable 245 1,550 3,487
Increase in due to a director 5,750 6,211 14,961
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Net Cash (Deficiency) from Operations (9,268) (10,215) (21,389)
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CASH FLOWS FROM FINANCING
ACTIVITIES:
Capital contribution - expenses 8,100 8,100 18,900
Proceeds from issuance of common stock -- 2,500 2,500
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8,100 10,600 21,400
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Net Increase (Decrease) in Cash (1,168) 385 11
Cash at Beginning of Period 1,179 -- --
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CASH AT END OF PERIOD $ 11 $ 385 $ 11
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The accompanying notes are an integral part of these unaudited financial statements.
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CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
October 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 100,000,000
shares (previous authorized capital was 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 25,000,000
shares of its capital stock for cash. During the current quarter the
shareholders approved a 100 to 1 forward split of the issued and
outstanding share capital. This forward split resulted in an additional
24,750,000 shares being issued to the shareholders of record.
This report has been prepared showing after stock split shares with a
par value of $.001 from inception.
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 October 31, 2000, the Company had a net operating loss carry forward
of $39,837. 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.
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CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
October 31, 2000
(Unaudited - Prepared by Management)
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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.
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.
9
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CORONADO EXPLORATIONS LTD.
(An Exploration Stage Company)
NOTES TO FINANCIAL STATEMENTS
October 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.
10
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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. No new project has been identified and no
agreements have been entered into by the Company.
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 decided to forward split the shares on the basis of one hundred
new shares for each old share owned by a shareholder. This resulted in the
issued share capital being increased 24,750,000 common shares to 25,000,000.
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.
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)
December 15, 2000 /s/ "Mary M. Hethey"
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Date Mary M. Hethey - Director and President
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