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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 June 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) 266-1464
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.
( x ) Yes ( ) No
Common Stock
--------------------
(Title of Class)
<PAGE>
INDEX
Page
Number
PART I. FINANCIAL INFORMATION
Item I. Financial Statements
Balance Sheets, December 31, 1999 and
June 30, 2000 4
Statements of Operations, Three Months
Ended June 30, 1999 and Three Months
Ended June 30, 2000 and Six Months
Ended June 30, 1999 and Six Months
Ended June 30, 2000 and
From June 25, 1971 (Date of Inception)
through June 30, 2000 5
Statements of Stockholders' Equity,
From June 25, 1971 (Date of Inception)
through June 30, 2000 6
Statements of Cash Flows, Three Months
Ended June 30, 1999 and Three Months
Ended June 30, 2000 and for the Six Months
Ended June 30, 1999 and Six Months Ended
June 30, 2000 and From June 25, 1971
(Date of Inception) through June 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>
INDEPENDENT ACCOUNTANTS' REVIEW REPORT
To the Board of Directors
Silver Key Mining Company
(A Development Stage Company)
Clark Fork, Idaho
We have reviewed the accompanying balance sheet of Silver Key Mining Company
(a development stage company) as of June 30, 2000 and the related statements
of operations, stockholders' equity (deficit) and cash flows for the three
months and six months ended June 30, 2000 and 1999. 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, 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 review, 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
(a development stage 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 May 15, 2000, we
expressed an unqualified opinion on those financial statements.
HJ & Associates, LLC
Salt Lake City, Utah
July 28, 2000
<PAGE>
SILVER KEY MINING COMPANY
(A Development Stage Company)
Balance Sheets
ASSETS
<TABLE>
June 30, December 31,
2000 1999
--------------- ----------------
(Unaudited)
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 $ 2,335 $ 1,500
--------------- ----------------
Total Current Liabilities 2,335 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) (170,416 ) (172,086)
Deficit accumulated during the development stage (88,219) (85,714)
--------------- ----------------
Total Stockholders' Equity (Deficit) (2335) (1,500)
TOTAL LIABILITIES AND STOCKHOLDERS' --------------- ----------------
EQUITY (DEFICIT $ - $ -
=============== ================
</TABLE>
<PAGE>
SILVER KEY MINING COMPANY
(A Development Stage Company)
Statements of Operations
(Unaudited)
<TABLE>
From
Inception on
For the For the June 25,
Three Months Ended Six Months Ended 1971 trough
June 30, June 30, June 30,
--------------------------------------- ---------------
<S> <C> <C> <C> <C> <C>-
2000 1999 2000 1999 2000
---------------------------------------------------------------------
REVENUES $ - $ - $ -
EXENSES 2,335 - 2,505 1,627 88,219
--------- -------- -------- --------- -----------
NET LOSS $(2,335) $ - $(2,505) $(1,627) $(88,219)
======== ======== ======== ======== ==========
BASIC NET LOSS PER SHARE $ (0.00) $ (0.00) $ (0.00) $ (0.00)
======== ======== ======== ========
</TABLE>
<PAGE>
SILVER KEY MINING COMPANY
(A Development Stage Company)
Statements of Stockholders' Equity (Deficit)
From Inception on June 25, 1971 through June 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 25,000 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 June 30, 2000
<TABLE>
Deficit
Additional Accumulated
Paid-in During the
Common Stock Capital Development
----------------
Shares Amount (Deficit) Stage
--------- --------- ---------- ----------
<S> <C> <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) - - 1,670 -
Net loss for the six months
ended June 30, 2000 (unaudited) - - - (2,505)
----------- ----------- ----------- ----------
Balance, June 30, 2000 (unaudited) 5,126,010 $ 256,300 $(170,416) $(88,219)
=========== =========== =========== ==========
</TABLE>
<PAGE>
SILVER KEY MINING COMPANY
(A Development Stage Company)
Statements of Cash Flows
(Unaudited)
<TABLE>
From
Inception on
For the For the June 25,
Three Months Ended Six Months Ended 1971 trough
June 30, June 30, June 30,
--------------------------------------- ---------------
<S> <C> <C> <C> <C> <C>
2000 1999 2000 1999 2000
---------------------------------------------------------------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net (loss) $(2,335) $ - $(2,505) $(1,627) $(88,219)
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 665 - 835 (1,000) 2,335
-------- -------- -------- -------- ---------
Net Cash Used by Operating Activities (1,670) - (1,670) (2,627) (4,584)
-------- -------- -------- -------- ---------
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 1,670 - 1,670 2,627 4,584
-------- -------- -------- -------- ---------
Net Cash Provided by Financing
Activities 1,670 - 1,670 2,627 7,296
-------- -------- -------- -------- ---------
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>
<PAGE>
SILVER KEY MINING COMPANY
(A Development Stage Company)
Notes to the Financial Statements
June 30, 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>
For the For the
Three Months Ended Six Months Ended
June 30, June 30
<S> <C> <C> <C> <C>
2000 1999 2000 1999
-------- -------- -------- --------
Numerator - loss $(2,335) $ - $(2,505) $(1,627)
Denominator - weighted
average number of
shares outstanding 5,126,010 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
offset by a valuation allowance for the same amount.
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.
<PAGE>
SILVER KEY MINING COMPANY
(A Development Stage Company)
Notes to the Financial Statements
June 30, 2000 and December 31, 1999
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
intends to seek a merger with an existing, operating company. In the interim,
it 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 June 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.
SILVER KEY MINING COMPANY
(Registrant)
Date: August 1, 2000 /s/ Dale F. Miller
------------------------------
Dale F. Miller, President
<PAGE>
