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 April 30, 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 ficatation
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 2,072,125
Title of Class Number of Shares outstanding
at April 30, 1996
No Exhibits included.
<PAGE>
GAENSEL GOLD MINES, INC.
(A Company in the Development Stage)
<TABLE>
<CAPTION>
BALANCE SHEETS
ASSETS
April 30, 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 207 7
Additional paid in capital 3,468,099 3,366,301
Deficit accumulated during development stage 3,481,583 (3,381,583)
--------- ----------
TOTAL STOCKHOLDERS' EQUITY (DEFICIENCY) (15,275) (15,275)
--------- --------
$ 76 $ 76
======== ========
</TABLE>
See accompanying Notes to Financial Statements
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<PAGE>
GAENSEL GOLD MINES, INC.
(A Company in the Development Stage)
<TABLE>
<CAPTION>
STATEMENTS OF OPERATIONS
CUMULATIVE
FROM INCEPTION
FOR THE SIX FOR THE SIX FOR THE THREE FOR THE THREE (SEPT.13, 1981)
MONTHS ENDED MONTHS ENDED MONTHS ENDED MONTHS ENDED TO
APRIL 30, 1995 APRIL 30, 1996 APRIL 30, 1995 APRIL 30, 1996 APRIL 30, 1996
-------------- -------------- -------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
REVENUES $ -0- $ -0- $ -0- $ -0- $ 43,145
COSTS AND EXPENSES
Loss From Operations 5,314 100,000 955 100,000 3,404,655
Non Operating Income 168,303
Interest (expense) 25,204
Non Operating Expense (159,695)
NET LOSS ACCUMULATED DURING
THE DEVELOPMENT STAGE $ (5,314) $ (100,000) $ (955) $ (100,000) $ (3,481,583)
LOSS PER COMMON SHARE $ nil $ nil $ nil $ nil $ nil
</TABLE>
See accompanying Notes to Financial Statements
-3-
<PAGE>
GAENSEL GOLD MINES, INC.
(A Company in the Development Stage)
<TABLE>
<CAPTION>
STATEMENTS OF CASH FLOWS
FOR THE SIX FOR THE SIX FOR THE THREE FOR THE THREE
MONTHS ENDED MONTHS ENDED MONTHS ENDED MONTHS ENDED
APRIL 30, 1995 APRIL 30, 1996 APRIL 30, 1995 APRIL 30, 1996
-------------- -------------- -------------- --------------
<S> <C> <C> <C> <C>
Net Loss (1,681) (100,000) (955) (100,000)
Adjustment - shares issued for services 100,000 100,000
CASH USED BY OPERATING ACTIVITIES -0- (955) -0-
Cash flows from financing activities
Issuance of Common Stock 750 24
INCREASE (DECREASE) IN CASH (931) (931) -0-
CASH BALANCE - BEGINNING 1,007 1,007 76
CASH BALANCE - ENDING $ 76 $ $ 76 $ 76
</TABLE>
See accompanying Notes to Financial Statements
-4-
<PAGE>
GAENSEL GOLD MINES, INC.
(A Company in the Development Stage)
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
April 30, 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
April 30, 1996, the results of operations for the three and six months ended
April 30, 1995 and 1996, and the cash flows for the three and six months ended
April 30, 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 and six months ended April 30,
1996, are not necessarily indicative of the results of operations to be expected
for the full fiscal year ending October 31, 1996.
2. Stockholder's Equity
The Company recorded the issuance of 2,000,000 shares of Common Stock
in 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 April 1995 and
the shares were not deemed issued until subsequent to the end of fiscal 1995.
All share numbers reflect a 1-for-100 reverse stock split, which 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.
5
<PAGE>
Item 5. OTHER INFORMATION
None.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
None
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<PAGE>
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: May 7, 1996 By: /s/ Dempsey K. Mork
-------------------------- --------------------
Dempsey K. Mork
President (chief financial officer
and accounting officer and duly
authorized officer)
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