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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549 Page 1 of 7 Sequentially
FORM 10-Q Numbered Document
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended July 31, 1997
[ ] 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.)
45110 Club Drive, Suite B, Indian Hills, California 92210
(Address of Principal Executive Offices) (Zip Code)
(619) 360-1042
(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 1,018,379
Title of Class Number of Shares outstanding
at April 30, 1997
No Exhibits included.
<PAGE>
GAENSEL GOLD MINES, INC. & SUBSIDIARY
(A Company in the Development Stage)
BALANCE SHEET
July 31, April
30
ASSETS 1997 1997
CURRENT ASSETS
Cash and Equivalents$ 10,048 $ 18,876
Stock Subscription Receivable800 800
Prepaid Rent 1,997 1,997
Deposits 30,000
-
-------- --------
Total Current Assets $ 42,845 $ 21,673
OTHER ASSETS
Property & Equipment - Net 136,564 155,957
Intangibles 1 1
Organization Costs - Net 466 -
-------- --------
Total Other Assets 137,031 155,598
-------- --------
TOTAL ASSETS $ 179,876 $ 177,631
======== =======
LIABILITIES & STOCKHOLDERSAE EQUITY <DEFICIT>
CURRENT LIABILITIES
Accounts Payable $ 7,635 $ 7,635
Accrued Expenses 4,732 3,000
Advamces Related Parties 12,861 -
-------- --------
TOTAL LIABILITIES $ 25,228 $ 10,635
STOCKHOLDERSAE EQUITY
Common Stock 1,018 1,018
Additional paid in capital 560,862 560,862
<Deficit> accumulated during
development stage < 407,232> < 394,884>
<PAGE>
TOTAL STOCKHOLDERAES _______ ________
TOTAL EQUITY 154,648 166,996
TOTAL LIABILITIES AND
STOCKHOLDERSAEEQUITY $ 179,876 $ 177,631
========= =========
See accompanying Notes to Financial Statements
- - 2 -
GAENSEL GOLD MINES, INC. & SUBSIDINARY
(A Company in the Development Stage)
STATEMENT OF 0PERATIONS
For Three Months Ended For Nine Months Ended
July 31, July 31,
1997 1996 1997 1996
--------------------- -------------------
REVENUES $ - - $ - -
------- -------- -------- --------
COSTS AND EXPENSES
Selling, General and
Administrative 20,745 - 32,662 100,000
------- -------- -------- --------
INCOME <LOSS> FROM
OPERATIONS $< 20,745> - $ < 32,662> <100,000>
NON OPERATING
INCOME - - -
-
INTEREST INCOME
<EXPENSE> - - -
-
NON OPERATING
<EXPENSE> - - -
<PAGE>
-
------- -------- --------
- --------
NET INCOME <LOSS>
ACCUMULATED DURING
DEVELOPMENT STAGE $< 20,745> - $< 32,662> <100,000>
====== ======= =======
=======
Income <Loss> Per Share $< 0.02> - $ < 0.03> $ <0.05>
====== ======= =======
=======
Weighted Average Number
of Shares 1,018,379 1,018,379 1,018,379
2,072,925 ====== ======= =======
=======
Shares Outstanding1,018,379 2,079,925 1,018,379 2,072,925
======= ======= =======
=======
See accompanying Notes to Financial Statements
- - 3 -
GAENSEL GOLD MINES, INC. & SUBSIDIARY
(A Company in the Development Stage)
STATEMENT OF CASH FLOWS
For the Nine Months For the Three Month Ended
July 31, July 31, July 31, July
31,
1997 1997 1997
1997__
Net Income<Loss>$<100,000> <304,530> <100,000> < 20,745>
Adjustments -
shares issued for services 100,000 - 100,000 -
-------- ------- --------
- -------
Increase in Other Assets - < 466> - <
466>
Depreciation - 19,393 -
19,393
Increase in Accrued Expenses - 4,732 -
1,732
Increase in Prepaid Rent - < 1,997> -
<PAGE>
-
Increase in Stock Subscription
Receivable - < 800> -
-
Increase in Advances from
Related Parties - 12,861 -
12,861
Increase in Deposits - < 30,000> - <
30,000>
-------- ------- -------
- -------
CASH <USED> BY
OPERATING ACTIVITIES - <300,807> - < 17,225>
CASH <USED> IN INVESTING
ACTIVITIES; ACQUISITION
PROPERTY & EQUIPMENT - <155,957> - -
-------- ------- -------
- -------
SUB TOTAL - <456.764> - <
17,225>
CASH FLOW FROM FINANCING
ACTIVITIES; ISSUANCE OF
COMMON STOCK - 466,236* -
8,397*
-------- ------- -------
- -------
INCREASE<DECREASE>
IN CASH - 9,472 -
< 8,828>
BEGINNING CASH BALANCE - 576 -
18,876
-------- ------- -------
- -------
ENDING CASH BALANCE $ - 10,048 -
10,048
======= ====== =======
=======
*Corrections to prior Quarter 4/30/97
See accompanying Note to Financial Statements
- - 4 -
<PAGE>
GAENSEL GOLD MINES, INC. & SUBSIDIARY
(A Company in the Development Stage)
NOTES TO CONDENSED FINANCIAL STATEMENTS
(UNAUDITED)
JULY 31, 1997
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
July 31, 1997, the results of operation for the three and nine months ended July
31, 1997 and 1996, and the cash flows for the three and nine months ended July
31, 1997 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 disclosure 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, 1996 included in the
CompanyAEs Form 10-K and the prior Quarterly 10Qs filed for the periods ending
January 31, and April 30, 1997.
The results of operations for the three and nine months ended July 31,
1997, are not necessarily indicative of the results of operations to be expected
for the full fiscal year ending October 31, 1997.
2. ShareholderAEs Equity
The Company effected a 1-for-10 reverse stock split in February, 1997
and issued 800,000 additional shares to aqcuire Lifeline Medical Information
Systems, Inc. (oLifelineo). For further information, refer to the financial
statements and footnotes thereto for the prior quarter ending April 30, 1997
included in the CompanyAEs form 10Q.
Item 2. MANAGEMENTAES DISCUSSION AND ANANLSIS OF RESULTS OF
OPERATIONS AND
FINANCIAL CONDITION.
<PAGE>
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
Itwm 3. DEFAULTS UPON SENIOR SECURITIES
None
Item 4. SUBMISSION OF MATTER TO A VOTE OF SECURITY HOLDERS
See Item 2.
- -5-
Item 5. OTHER INFORMATION
None
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
None
<PAGE>
- -6-
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 the
undersigned thereto duly authorized.
Date: September 15, 1997 By: /s/ Dempsey K. Mork
Dempsey K. Mork
President (chief
financial officer)
and accounting
officer and duly authorized officer)
