SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 Page 1 of 7
FORM 10-QSB
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended January 31, 1996
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934 for the transition period from __________________
to __________________
Commission File Number 0-12825
GAENSEL GOLD MINES, INC.
(Exact Name of Registrant as specified in its Charter)
Nevada 84-0916272
(State or other Jurisdiction of I.R.S. Employer Identi-
Incorporation or Organization fication No.)
74900 Highway 111, Suite 121, Indian Hills, California 92210
(Address of Principal Executive Offices) (Zip Code)
(619) 836-3350
(Registrant's Telephone Number, including Area Code)
Indicate by check mark whether the Registrant (i) 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 (of for such shorter period that the
Registrant was required to file such reports) and (ii) has been subject to such
filing requirements for the past 90 days.
Yes X No
Indicate the number of shares outstanding of each of the issuer's
classes of Common Stock, as of the latest practicable date.
Common Stock 7,212,500
Title of Class Number of Shares outstanding
at January 31, 1996
No Exhibits included.
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GAENSEL GOLD MINES, INC.
(A Company in the Development Stage)
BALANCE SHEETS
<TABLE>
<CAPTION>
ASSETS
January 31, October 31,
1996 1995
<S> <C> <C>
ASSETS - Cash $ 76 $ 76
$ 76 $ 76
======== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)
CURRENT LIABILITIES - Accounts payable $ 15,351 $ 15,351
STOCKHOLDERS' EQUITY
Common stock 721 721
Additional paid in capital 3,367,015 3,367,051
Deficit accumulated during development stage 3,381,583 (3,381,583)
--------- ----------
TOTAL STOCKHOLDERS' EQUITY (DEFICIENCY) (15,275) (15,275)
--------- --------
$ 76 $ 76
======== ========
See accompanying Notes to Financial Statements
</TABLE>
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GAENSEL GOLD MINES, INC.
(A Company in the Development Stage)
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
CUMULATIVE
FROM INCEPTION
FOR THE THREE FOR THE THREE (SEPT.13, 1981)
MONTHS ENDED MONTHS ENDED TO
JANUARY 31, 1995 JANUARY 31, 1996 JANUARY 31, 1996
---------------- ---------------- ----------------
<S> <C> <C>
REVENUES $ -0- $ -0- $ 43,145
COSTS AND EXPENSES
Loss From Operations 4,359 3,304,655
Non Operating Income 168,303
Interest (expense) 25,204
Non Operating Expense (159,695)
NET LOSS ACCUMULATED DURING
THE DEVELOPMENT STAGE $ (4,359) $ $ (3,381,583)
LOSS PER COMMON SHARE $ nil $ nil $ nil
</TABLE>
See accompanying Notes to Financial Statements
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GAENSEL GOLD MINES, INC.
(A Company in the Development Stage)
<TABLE>
<CAPTION>
STATEMENTS OF CASH FLOWS
FOR THE THREE FOR THE THREE
MONTHS ENDED MONTHS ENDED
January 31, 1995 January 31, 1996
---------------- ----------------
<S> <C> <C>
Net Loss 1,257
CASH USED BY OPERATING ACTIVITIES 1,257 -0-
Cash flows from financing activities
Issuance of Common Stock 250
INCREASE (DECREASE) IN CASH (1,007) -0-
CASH BALANCE - BEGINNING 1,007 76
CASH BALANCE - ENDING $ -0- $ 76
See accompanying Notes to Financial Statements
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</TABLE>
GAENSEL GOLD MINES, INC.
(A Company in the Development Stage)
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
January 31, 1996
1. General
The accompanying financial statements are unaudited, but in the opinion
of the management of the Company, contain all adjustments, consisting of only
normal recurring accruals, necessary to present fairly the financial position at
January 31, 1996, the results of operations for the three months ended January
31, 1995 and 1996, and the cash flows for the three months ended January 31,
1995 and 1996. Certain information and footnote disclosures normally included in
financial statements that have been prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant to the
rules and regulations of the Securities and Exchange Commission, although
management of the Company believes that the disclosures in these financial
statements are adequate to make the information presented therein not
misleading. For further information, refer to the financial statements and
footnotes thereto for the fiscal year ended October 31, 1995 included in the
Company's Form 10-K.
The results of operations for the three months ended January 31, 1996,
are not necessarily indicative of the results of operations to be expected for
the full fiscal year ending October 31, 1996.
2. Subsequent Event
The Company recorded the issuance of 2,000,000 shares of Common Stock
subsequent to the quarter in payment of accrued investment banking fees in the
amount of $100,000. These fees related to an acquisition of a Taiwanese video
store chain which did not close. Investment banking services were rendered in
January 1995 and the shares were not deemed issued until subsequent to the end
of fiscal 1995. A 1-for-100 reverse stock split was reflected in the stock
transfer agent records and on the public trading market on or about February 26,
1996.
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND
FINANCIAL CONDITION
The Company has not commenced operations and has no working capital.
PART II. OTHER INFORMATION
Item 1. LEGAL PROCEEDINGS
None
Item 2. CHANGES IN SECURITIES
None
Item 3. DEFAULTS UPON SENIOR SECURITIES
None
Item 4. SUBMISSION OF MATTER TO A VOTE OF SECURITY HOLDERS
See Item 2.
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Item 5. OTHER INFORMATION
In April 1995 Timothy Gibson and Thomas H. Wolfe executed resignations
from the board of directors of the Company and executed resolutions appointing
Dempsey K. Mork and Randall Baker as officers and directors. Although they had
ceased to be officers and directors after their resignation, Wolfe and Gibson
continued to act as officers and directors in some capacities until January 31,
1996. Subsequently, the Board of Directors ratified certain actions of Messrs.
Gibson and Wolfe by these persons.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
None
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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.
Date: February 6, 1996 By: /s/ Dempsey K. Mork
-------------------------- --------------------
Dempsey K. Mork
President (chief
financial officer
and accounting
officer and duly
authorized officer)
7
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