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SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
FORM 10-QSB
Quarterly Report pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
For the quarterly period ended September 30, 2000
SILVER KEY MINING COMPANY, INC.
-----------------------------
(Name of Small Business Issuer in its charter)
Idaho 82-0513245
---------------------------------- -------------------
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification No.)
802 Pine Street
Clark Fork, Idaho 83811
--------------------------------------- ----------
(Address of principal executive offices) (Zip code)
Issuer's telephone number: (208) 263-8179
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), and (2) has been subject to such
filing requirements for the past 90 days.
( ) Yes ( x ) No
Common Stock
--------------------
(Title of Class)
<PAGE>
INDEX
Page
Number
PART I. FINANCIAL INFORMATION
Item I. Financial Statements
Balance Sheets, December 31, 1999 and
September 30, 2000 3
Statements of Operations, Three Months
Ended September 30, 1999 and Three Months
Ended September 30, 2000 and for the Nine
Months ended September 30, 1999 and Nine Months
ended September 30, 2000.
From June 25, 1971 (Date of Inception)
through September 30, 2000 4
Statements of Stockholders' Equity,
From June 25, 1971 (Date of Inception)
through September 30, 2000 6
Statements of Cash Flows, Three Months
Ended September 30, 1999 and Three Months
Ended September 30, 2000 and for the Nine
Months ended September 30, 1999 and Nine Months
ended September 30, 2000.
From June 25, 1971 (Date of Inception)
through September 30, 2000 8
Notes to Financial Statements 9
PART II. OTHER INFORMATION
Item 1. Index to Exhibits 10
a. Reports on Form 8-K
b. Signatures
c. Exhibit 27 - Financial Data Schedule
<PAGE>
PART I: Financial Information
Item 1: Financial Statements
SILVER KEY MINING COMPANY
(A Development Stage Company)
FINANCIAL STATEMENTS
September 31, 2000 and December 31, 1999
C O N T E N T S
Independent Auditors' Report 3
Balance Sheets 4
Statements of Operations 5
Statements of Stockholders' Equity (Deficit) 6
Statements of Cash Flows 8
Notes to the Financial Statements 10
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Board of Directors
Silver Key Mining Company
Clark Fork, Idaho
We have reviewed the accompanying balance sheet of Silver Key Mining Company
as of September 30, 2000 and the related statements of operations, stockholders'
equity and cash flows for the periods ended September 30, 2000 and 1999. These
financial statements are the responsibility of the Company's management.
We conducted our reviews 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, which will
be performed for the full year with the objective of expressing an opinion
regarding the financial statements taken as a whole. Accordingly, we do not
express such an opinion.
Based on our reviews, we are not aware of any material modifications that
should be made to the accompanying condensed financial statements referred to
above for them to be in conformity with accounting principles generally
accepted in the United States.
We have previously audited, in accordance with auditing standards generally
accepted in the United States, the balance sheet of Silver Key Mining Company
as of December 31, 1999, and the related statements of operations,
stockholders' equity and cash flows for the year then ended (not presented
herein) and in our report dated October 27, 2000, we expressed an unqualified
opinion on those financial statements.
HJ & Associates, LLC
Salt Lake City, Utah
October 27, 2000
<PAGE>
SILVER KEY MINING COMPANY
(A Development Stage Company)
Balance Sheets
<TABLE>
ASSETS
September 30, December 31,
2000 1999
------------- -------------
CURRENT ASSETS
<S> <C> <C>
Cash $ - $ -
------------- -------------
Total Current Assets - -
------------- -------------
OTHER ASSETS
Mining claims (Note 1) - -
------------- -------------
TOTAL ASSETS $ - $ -
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
LIABILITIES
Accounts payable $ - $ 1,500
------------- -------------
Total Current Liabilities - 1,500
------------- -------------
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock; $0.05 par value; authorized 10,000,000
shares; 5,126,010 issued and outstanding 256,300 256,300
Additional paid-in capital (deficit) (167,531) (172,086)
Deficit accumulated during the development stage (88,769) (85,714)
------------- -------------
Total Stockholders' Equity (Deficit) - (1,500)
------------- -------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ - $ -
============= =============
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
SILVER KEY MINING COMPANY
(A Development Stage Company)
Statements of Operations
<TABLE>
From
Inception on
June 25,
For the Three Months Ended For the Nine Months Ended 1971 Through
September 30, September 30, September 30
2000 1999 2000 1999 2000
------------- ------------- ------------- ------------- -------------
<S> <C> <C> <C> <C> <C>
REVENUES $ - $ - $ - $ - $ -
EXPENSES 550 - 3,055 1,627 (88,769)
------------- ------------- ------------- ------------- -------------
NET LOSS $ (550) $ - (3,055) (1,627) $ (88,769)
============= ============= ============= ============= ==============
BASIC NET LOSS PER SHARE $ (0.00) $ (0.00) $ (0.00) $ (0.00)
============= ============= ============= =============
The accompanying notes are an integral part of these financial statements.
</TABLE>
<PAGE>
SILVER KEY MINING COMPANY
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)
From Inception on June 25, 1971 through September 30, 2000
<TABLE>
Deficit
Additional Accumulated
Paid-in During the
Common Stock Capital Development
Shares Amount (Deficit) Stage
----------------------------------------------------
<S> <C> <C> <C> <C>
Balance at inception on June 25, 1971 - $ - $ - $ -
1972 - shares issued for mining rights
at $0.05 per share 1,000,000 50,000 - -
1976 - shares issued for cash at
$0.05 per share 25 1,250 - -
1976 - shares issued for drilling
services at $0.05 per share 125,000 6,250 - -
1977 - shares issued for drilling
services at $0.05 per share 130,860 6,543 - -
1977 - shares issued for cash at
$0.05 per share 29,240 1,462 - -
1981 - shares issued for geological
services at $0.05 per share 18,460 923 - -
1983 - shares issued for geological,
legal and administrative services
at $0.05 per share 257,800 12,890 - -
1992 - shares issued for mining rights
at predecessor cost (Note 4) 3,500,000 175,000 (175,000) -
Contributed capital for expenses - - 287 -
Net loss from inception on June 25,
1971 through December 31, 1995 - - - (81,558)
----------- ----------- ----------- ----------
Balance, December 31, 1995 5,086,360 254,318 (174,713)
(81,558)
Net loss for the year ended
December 31, 1996 - - - -
----------- ----------- ----------- -----------
Balance, December 31, 1996 5,086,360 $ 254,318 $ (174,713) $
(81,558)
----------- ----------- ----------- -----------
</TABLE>
<PAGE>
SILVER KEY MINING COMPANY
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit) (Continued)
From Inception on June 25, 1971 through September 30, 2000
<TABLE>
Deficit
Additional Accumulated
Paid-in During the
Common Stock Capital Development
Shares Amount (Deficit) Stage
------------------------------------------------------
<S> <C> <C> <C>
Balance, December 31, 1996 5,086,360 $ 254,318 $ (174,713) $ (81,558)
Net loss for the year ended
December 31, 1997 - - - (30)
----------- ----------- ----------- ----------
Balance, December 31, 1997 5,086,360 254,318 (174,713) (81,588)
Common stock issued for services
at $0.05 per share 39,650 1,982 - -
Net loss for the year ended
December 31, 1998 - - - (999)
----------- ----------- ----------- ----------
Balance, December 31, 1998 5,126,010 256,300 (174,713) (82,587)
Capital contributed for expense - - 2,627 -
Net loss for the year ended
December 31, 1999 - - - (3,127)
----------- ----------- ----------- -----------
Balance, December 31, 1999 5,126,010 256,300 (172,086) (85,714)
Capital contributed for expense
(unaudited) - - 4,555 -
Net loss for the nine months
ended September 30, 2000 - - - (170)
(unaudited ----------- ----------- ----------- -----------
Balance, September 30, 2000 5,126,010 $ 256,300 $ (167,531) $(88,769)
=========== =========== =========== ===========
</TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
SILVER KEY MINING COMPANY
(A Development Stage Company)
Statements of Cash Flows
<TABLE>
From
Inception on
June 25,
For the Three Months Ended For the Nine Months Ended 1971 Through
September 30, September 30, September 30
2000 1999 2000 1999 2000
------------ ------------ ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net (loss) $ (550) $ - $ (3,055) $ (1,627) $ (88,769)
Adjustments to reconcile net loss to net
cash provided by operating activities:
Disposal of assets for services - - - - 71,818
Stock issued for services - - - - 9,482
Increase (decrease) in accounts payable (2,335) - (1,500) (1,000) -
------------ ------------ ------------ ------------ -----------
Net Cash Provided by Operating Activities (2,885) - (4,555) (2,627) (7,469)
------------ ------------ ------------ ------------ -----------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Cash used for drilling costs - - - - (2,712)
------------ ------------ ------------- ------------ ------------
Net Cash (Used) by Investing Activities - - - - (2,712)
------------ ------------ ------------- ------------ ------------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Issuance of common stock for cash - - - - 2,712
Contributed capital 2,885 - 4,555 2,627 7,469
------------ ------------ ------------- ------------ ------------
Net Cash Provided (Used) by
Financing Activities 2,885 - 4,555 2,627 10,181
------------ ------------ ------------- ------------ ------------
INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS - - - - -
CASH AND CASH EQUIVALENTS
AT BEGINNING OF PERIOD - - - - -
------------ ------------ ------------- ------------ ------------
CASH AND CASH EQUIVALENTS
AT END OF PERIOD $ - $ - $ - $ - $ -
============ ============ ============= ============ ============
Cash Paid For:
Interest $ - $ - $ - $ - $ -
Taxes $ - $ - $ - $ - $ -
NON CASH FINANCING ACTIVITIES
Common stock issued for mining
rights at predecessor cost $ - $ - $ - $ - $ -
/TABLE>
The accompanying notes are an integral part of these financial statements.
<PAGE>
SILVER KEY MINING COMPANY
(A Development Stage Company)
Notes to the Financial Statements
September 31, 2000 and December 31, 1999
NOTE 1 - ORGANIZATION AND DESCRIPTION OF BUSINESS
Silver Key Mining Company (the Company) was incorporated in the State
of Idaho on June 25, 1971. The Company was incorporated for the
purpose of taking ownership of the mineral rights in, on and under
about 63 acres of patented land in the Greater Coeur d'Alene Mining
Region, Idaho. During 1976, a core hole was drilled with no
significant results, and no operations have ensued since then. In
1992, the property was returned to the incorporators for services
rendered and new mining claims were acquired in Bonner County, Idaho.
The Company has not yet begun any significant operations and is
considered a development stage company.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Accounting Method
The Company's financial statements are prepared using the accrual
method of accounting. The Company has adopted a calendar year end.
b. Basic Loss Per Share
The computation of basic loss per share of common stock is based on
the weighted average number of shares outstanding at the date of
the financial statements.
</TABLE>
<TABLE>
<S> <C> <C> <C> <C>
For the For the
Three Months Ended Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Numerator - loss $ (550) $ - $ (3,055) $ (1,627)
Denominator - weighted
average number of
shares outstanding 5,126,01 5,126,010 5,126,010 5,126,010
---------- ----------- ---------- ----------
Loss per share $ (0.00) $ (0.00) $ (0.00) $ (0.00)
=========== ============= =========== ===========
</TABLE>
c. Provision for Taxes
The Company has a net operating loss carryover of approximately
$85,000 as of December 31, 1999 which expires in 2019. The
potential tax benefit has been offset by a valuation allowance for
the same amount.
<PAGE>
d. Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
e. Mining Claims
The Company's mining claims are inactive. The claims are recorded
at the predecessor cost to the shareholder who transferred them to
the Company of $-0-.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Unaudited Financial Statements
The accompanying unaudited financial statements include all of the
adjustments which, in the opinion of management, are necessary for a
fair presentation. Such adjustments are of a normal recurring nature.
NOTE 3 - GOING CONCERN
The Company's financial statements are prepared using generally
accepted accounting principles applicable to a going concern
which contemplates the realization of assets and liquidation of
liabilities in the normal course of business. The Company has not
established revenues sufficient to cover its operating costs and allow
it to continue as a going concern. Management is actively seeking
a merger with an existing, operating company. In the interim,
management has committed to meeting the Company's minimal operating
expenses.
PART II. OTHER INFORMATION
Item 1. Exhibits and reports on Form 8-K
a. Reports on Form 8-K
b. Signatures
c. Exhibit 27 - Financial Data Schedule
(a) There have been no reports on Form 8-K for the three months
ending September 30, 2000.
(b) Signatures
Pursuant to the requirements of Section 12 of the Securities Exchange Act
of 1934, the Registrant has duly caused this Registration Statement to be signed
on its behalf by the undersigned, thereunto duly authorized.
<PAGE>
SILVER KEY MINING COMPANY
(Registrant)
Date: November 2, 2000 /s/ Dale F. Miller
------------------------------
Dale F. Miller, President
