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U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT
OF 1934
For the quarterly period ended: September 30, 1999
[ ] TRANSITION REPORT UNDER SECTION 13 OR 15(D) OF THE EXCHANGE ACT OF 1934
Commission File Number: 0-27019
Uintah Mountain Copper Company
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(Exact name of small business issuer as specified in its charter)
Utah 87-0369205
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(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
2319 North Hillside Drive, Wellington, Utah 84542
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(Address of principal executive offices) (Zip Code)
(801) 328-2011
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(Issuer telephone number)
Check whether the Issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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 [ ] Yes [X] No [ ]
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of
common equity, as of the latest practicable date: 12,150,985 shares of its
$0.10 par value common stock as of November 10, 2000.
Transitional Small Business Disclosure Format (check one) Yes [ ] No [X]
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PART I-FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
UINTAH MOUNTAIN COPPER COMPANY
(A DEVELOPMENT STAGE COMPANY)
Condensed Balance Sheets
Unaudited Audited
September 30, December 31,
2000 1999
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ASSETS
CURRENT ASSETS
Cash $ 1,482 $ 124
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TOTAL CURRENT ASSETS 1,482 124
EQUIPMENT:
Furniture and fixtures 4,460 4,460
Vehicles 2,900 2,900
Leasehold improvements 1,160 1,160
Less: Accumulated Depreciation (8,520) (8,288)
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- 232
OTHER ASSETS
Mine development 106,594 80,846
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TOTAL ASSETS $ 108,076 $ 81,202
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 37,558 $ 42,538
Accrued expenses 10,288 -
Accrued salaries 542,550 516,300
Income taxes payable - 100
Notes payable - related entities 1,883 2,307
Accrued interest 287,876 240,776
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TOTAL CURRENT LIABILITIES 880,155 802,021
NOTES PAYABLE - RELATED ENTITIES 282,663 256,649
STOCKHOLDERS' EQUITY (DEFICIT)
Common stock, par value $.10
Authorized 30,000,000 shares
12,150,985 and 12,075,985 1,215,098 1,207,598
issued and outstanding, respectively
Additional paid-in-capital 265,018 257,518
Deficit accumulated in the development
stage (2,534,858) (2,442,584)
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TOTAL STOCKHOLDERS' EQUITY (DEFICIT) (1,054,742) (977,468)
TOTAL LIABILITIES AND EQUITY $ 108,076 $ 81,202
========== ==========
The accompanying notes are an integral part of the financial statements.
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UINTAH MOUNTAIN COPPER COMPANY
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF OPERATIONS
(Unaudited)
<TABLE>
<CAPTION>
From Inception
Three Months Three Months Nine Months Nine Months on January 28,
Ended Ended Ended Ended 1946 through
September 30, September 30, September 30, September 30, September 30,
2000 1999 2000 1999 2000
------------- ------------- ------------- ------------ --------------
<S> <C> <C> <C> <C> <C>
REVENUE
Sales $ - $ - $ - $ - $ -
Cost of sales - - - - -
------------- ------------- ------------- ------------- --------------
GROSS PROFIT - - - - -
EXPENSES
Depreciation 132 203 232 609 8,520
General and administrative 11,667 25,959 44,843 51,214 2,237,722
------------- ------------- ------------ ------------- --------------
OPERATING LOSS (11,799) (26,162) (45,075) (51,823) (2,246,242)
OTHER INCOME (EXPENSES)
Interest income 1 1 1 1 581
Interest expense (15,700) (14,305) (47,100) (43,305) (288,297)
------------ ------------ ------------ ------------ ------------
(15,699) (14,304) (47,099) (43,304) (287,716)
Loss before income taxes (27,498) (40,466) (92,174) (95,127) (2,533,958)
Income taxes - - 100 - 900
------------ ------------ ------------ ------------ ------------
NET LOSS $ (27,498) $ (40,466) $ (92,274) $ (95,127) $ (2,534,858)
============ ============ ============ ============ ============
Net loss per share:
Basic/Diluted Nil Nil Nil Nil
Weighted average shares
outstanding:
Basic/Diluted 12,150,985 12,075,985 12,124,981 12,075,985
</TABLE>
The accompanying notes are an integral part of the financial statements.
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UINTAH MOUNTAIN COPPER COMPANY
(A DEVELOPMENT STAGE COMPANY)
STATEMENTS OF CASH FLOWS
(Unaudited)
From Inception
on January 28,
1946 through
September 30,
2000 1999 2000
----------- ----------- ------------
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss $ (92,274) $ (95,127) $ (2,534,858)
Adjustments to reconcile net
earnings to net cash flows
used by operating activities:
Depreciation 232 609 8,520
Changes in operating assets
and liabilities:
Increase in deferred charges (25,748) (2,688) (106,594)
(Decrease)increase in accounts payable (4,980) - 37,558
Decrease in income taxes payable (100) - -
(Decrease) increase in accrued expenses 10,288 (1,354) 10,288
Increase in accrued salaries 26,250 26,250 542,550
Increase in accrued interest 47,100 43,305 287,876
Net cash flows used by ----------- ----------- ------------
operating activities (39,232) (29,005) (1,754,660)
----------- ----------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property and equipment - - (8,520)
----------- ----------- ------------
Net cash used by investing
activities - - (8,520)
----------- ----------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES
Common stock issued for cash 15,000 - 1,402,756
Proceeds from notes payable -
related entities 25,590 29,028 361,906
----------- ----------- ------------
Net cash flows from financing
activities 40,590 29,028 1,764,662
----------- ----------- ------------
NET INCREASE IN CASH
AND CASH EQUIVALENTS 1,358 23 1,482
CASH AND CASH EQUIVALENTS
AT THE BEGINNING OF THE PERIOD 124 112 -
CASH AND CASH EQUIVALENTS ----------- ----------- ------------
AT THE END OF THE PERIOD $ 1,482 $ 135 $ 1,482
=========== =========== ============
The accompanying notes are an integral part of the financial statements.
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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
General
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Uintah Mountain Copper Company, a Utah corporation, (the "Company") was
formed on January 30, 1946. The Company has been developing mining claims,
known as, the Sunshine Quartz/Hematite Claims located in the Ashley National
Forest of Duchesne County, Utah. The mining claims consist of 30 unpatented
load claims. Principal ore found on the 30 unpatented load claims is a
high-grade hematite (iron oxide) ore. The Company has been developing these
claims with the intent of marketing the unique ore in the specialty natural
pigments market.
The first five claims, namely the Sunshine Quartz Mine Nos. 1-5 were
located in 1936 and placed in the Company's ownership when the Company was
incorporated. Thirty-one additional claims, namely Hematite Nos. 1-31 were
located in 1977. In 1989, all claims were reclaimed by the Company. Eight
claims (Hematite 10, 11, 12, 13, 14, 25 & 26) were dropped in 1993 due to new
federal filing requirements and a geologic re-evaluation of the properties.
In 1995, Hematite Nos. 25 and 26 were re-filed. All claims have been legally
filed with Duchesne County, State of Utah, and the Bureau of Land Management.
Net profit royalties of 10% are due to Mid American Minerals, Inc., a Utah
corporation. (See certain transaction).
Through the end of 1997, the Company held special use permits for a
5-acre mill and mining camp site and a 6.5-mile access road to, and on, the
claims. As of 1998, the use of these facilities has been made part of the
Company's approved continuing Plan of Operation on file with U.S. Forest
Service, ("Forest Service") so that annual permitting will no longer be
required. The present Plan of Operation for development activities at this
site has been on file with the Forest Service since 1996 and is currently
active.
The Company's prior activity has been focused on the development and
exploration of its mining claims, as well as, the testing of the ore samples
and refinement of the samples into potential products. This activity has been
time consuming particularly since the Company's mine is located in a region of
Utah that is not accessible, at this time, during the winter months. This
allows the Company only a limited operating window after the snow melts and
before the first snow falls.
The Company has completed its initial exploratory drilling and laboratory
testing programs on its claims and is ready, pending financing, to commence
the mining and milling of ore. The Company still needs financing to complete
the mill and provide initial working capital to fund mining operations until
revenue is produced from the mined ore. The Company estimates that it will
need $1,500,000 to complete the mill and provide initial working capital.
Plan of Operation
-----------------
The Company intends to continue to perform development work, marketing
activities and claim support operations and pending funding will commence
construction on a mill. The Company does not anticipate extensive mining
operations until additional funding can be arranged. Consequently, no revenue
is anticipated until the summer of 2001, at the earliest.
The Company has relied on its officers and directors to perform work and
testing on the mine. When needed, the officers and directors have provided
funds to offset the cost of exploratory drilling and laboratory testing. The
Company has also relied on the limited sale of its securities to fund
operations. It is anticipated that the officers and directors of the Company
will continue to provide the work and funding support to continue with claim
maintenance and exploratory drilling. The officers and directors do not have
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the funds to provide the $1,500,000 needed to construct a mill and commence
full scale mining operations. The Company intends to seek, initially,
traditional banking arrangements to fund the mill construction. If the
Company is unable to obtain debt financing, the Company will investigate
selling its securities to raise the capital needed to fund the mill and mining
operations.
The Company is hopeful that it will be able to have the mill completed by
the summer of 2001 and commence development/mining operations. If the Company
is unable to keep to this time schedule, it is possible that revenues could
not be received by the end of 2001. The Company has sent out samples of its
potential product to multiple users of high quality pigments and received
positive responses from potential buyers. The buyers can not make any
definitive commitments, at this time, until the Company has the funds to
complete the mill and can provide a time table for the delivery of product.
Liquidity and Capital Resources
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As of September 30, 2000, the Company had a negative working capital
deficit of $878,673. Current Assets were only $1,482 requiring the officers
and directors of the Company to continue to use their own funds to keep the
Company operating. The current liabilities of the Company at September 30,
2000, were $880,155, which primarily consist of accrued salaries to the
officers of the Company of $542,550 and interest on related parties notes of
$287,876. The Company's financial position has not changed significantly from
prior quarters other than current assets continue to decline as funds are
needed to pay operating expenses.
All of the officers and directors have agreed to allow the Company to
continue to accrue their salaries until sufficient revenue is produced to pay
ongoing salaries, as well as, back salaries. Additionally, the notes payable
are to the same officers and directors who have agreed to delay the payment of
the notes and related interest until sufficient revenue is produced to allow
for such payments. Even with these understandings among the officers and
directors, the Company still does not have enough funds to pay existing
obligations and in addition to those amounts owed related parties, the Company
must pay approximately $47,846 in current liabilities to third parties.
The Company's management believes the Company will be able to continue in
business but will not be able to generate revenue until it is able to raise
additional capital to fund the mill construction and initial working capital
need. Management estimates that it will require $1,500,000 in additional
capital to move the Company into a position to generate revenue. The Company
will initially seek capital from traditional debt financing. If debt
financing is unavailable, the Company will probably try to sell its securities
in private transactions to generate the required funds. If the Company has to
sell its securities, current shareholders would probably suffer substantial
dilution, given the Company's current financial conditions. There also can be
no assurance that the Company will be able to obtain the needed capital and
may not generate any future revenue.
Results of Operations
---------------------
The Company has not generated any revenue since its inception in 1946.
All activities have been focused on the obtaining of claims, developing the
claims and in preparing the claims to commence mining operations. The
Company's funding constraints have slowed progress on developing the mining
operations and significant efforts did not commence until 1994. The Company
is hopeful that with a capital infusion, it will be able to commence mining
operations.
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The Company continues to incur expenses to keep the mining site open,
comply with environmental regulations and complete studies on the iron ore.
For the nine months ended September 30, 2000, the Company incurred $44,843 in
general and administrative expense and had an operating loss of $45,075 with a
net loss of $92,274 with interest expenses of $47,100. For the three months
ended September 30, 2000, the Company had a net loss of $27,498 which was
lower then the $40,466 net loss for the three months ended September 30, 1999.
This reduction was due to less activity for the quarter as the Company focused
on trying to obtain debt financing rather than operate the mine.
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 MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits.
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None
(b) Reports on From 8-K.
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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.
Uintah Mountain Copper Company
Dated: November 14, 2000 By:/S/Pamela Kandaris-Cha
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Pamela Kandaris-Cha, Principal
Accounting and Chief Financial Officer
