China Expert Technology (CXTI) 10QSB 2002 Q2 Quarterly report (small business)

UNITED STATES

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 QUARTER ENDED

JUNE 30, 2002

Commission File Number 000-30644

LEOPARD CAPITAL, INC.
(Exact name of registrant as specified in its charter)

Nevada, USA	98-0348086
(State or other Jurisdiction	(IRS Employer Identification No.)
of Incorporation or Organization)

1574 Gulf Road  #1505, Point Roberts, WA  98281
(Address of principal executive offices

(604) 879-9001
(Registrant's telephone number)

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 past 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes /x/ No / /

As of June 30, 2002, there were 5,495,826 shares of voting common stock, $.001 par value, of Leopard Capital, Inc. issued and outstanding.

Transitional Small Business Disclosure Format (check one): Yes / / No /x/

Table of Contents

PART I

Item 1.  Financial Statements

LEOPARD CAPITAL, INC.
FINANCIAL STATEMENTS
JUNE 30, 2002
(Unaudited)
Balance Sheets As Of June 30, 2002 And December 31, 2001		F-1
Statements Of Operations For The Quarter and Six Months Ended June 30, 2002
	And 2001 And From Inception Through June 30, 2002	F-2
Statement Of Shareholders' Deficit From Inception Through June 30, 2002		F-3 to F-5
Statements Of Cash Flows For The Six Months Ended June 30, 2002
	And 2001 And From Inception Through June 30, 2002	F-6
Condensed Notes To June 30, 2002 Financial Statements		F-7

F-1
LEOPARD CAPITAL, INC.
(A Development Stage Company)
BALANCE SHEETS JUNE 30, 2002 AND DECEMBER 31, 2001
(Unaudited)
	Jun. 30, 2002	Dec. 31, 2001
	(Unaudited)
ASSETS	$0	$0
LIABILITIES AND SHAREHOLDERS' DEFICIT
LIABILITIES
CURRENT
Accounts Payable	$8,259	$0
Advances payable to former subsidiary	0	0
LONG TERM
Advances from shareholders	0	0
Total liabilities	0	0
SHAREHOLDERS' DEFICIT
Share capital (Note 2)	1,280,579	1,280,579
Deficit accumulated during the development stage	(1,288,838)	(1,280,579)
Total shareholders' deficit	(8,259)	0
Total liabilities and shareholders' deficit	$0	$0
(See accompanying notes)

F-2

LEOPARD CAPITAL, INC.

(A Development Stage Company)

STATEMENT OF OPERATIONS FOR THE QUARTER & SIX MONTHS ENDED JUNE 30, 2002 AND 2001

AND FROM INCEPTION ON JUNE 18, 1990 THROUGH JUNE 30, 2002

 (Unaudited)

		Three	Three	Six	Six
		Months	Months	Months	Months
	Cumulative	Ended	Ended	Ended	Ended
	Total Since	Jun.  30,	Jun.  30,	Jun.  30,	Jun.  30,
	Inception	2002	2001	2002	2001
	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)	(Unaudited)
STATEMENT OF SHAREHOLDERS' DEFICIT
Exploration and development	$19,885	$0	$0	$0	$0
Write off of investment in joint venture	60,463	0	0	0	0
Write off of development and property costs	442,529	0	0	0	0
Total exploration and development expenses	522,877	0	0	0	0
MARKETING EXPENSES
Advertising	2,637	0	0	0	0
Courier and postage	7,383	0	0	0	0
Meetings	1,357	0	0	0	0
Printing	19,056	0	0	0	0
Promotion and entertainment	16,454	0	0	0	0
Services	58,525	0	0	0	0
Telephone and fax	22,438	0	0	0	0
Travel	41,305	0	0	0	0
Total marketing expenses	169,155	0	0	0	0
ADMINISTRATIVE EXPENSES
Accounting and audit fees	49,505	4,074	4,877	4,074	4,877
Automobile	2,689	0	0	0	0
Bank charges and interest	2,185	0	0	0	0
Computer servicing	9,830	0	0	0	0
Incorporation expenses written off	6,794	0	0	0	0
Insurance	836	0	0	0	0
Interest on long term debt	11,991	0	0	0	0
Legal	148,911	3,386	0	3,386	0
Management and consulting fees	160,906	0	6,000	0	12,000
Meals and entertainment	28	0	0	0	0
Office supplies and service	69,420	0	2,395	0	3,022
Rent	9,021	0	0	0	0
SEC filing fees	10,981	0	0	0	0
Telephone and fax	7,036	0	0	0	0
Transfer agent fees	5,030	799	374	799	374
Travel	33,990	0	0	0	0
U.S. financial services	28,339	0	0	0	0
Wages and benefits	25,930	0	0	0	0
Total administrative expenses	583,422	8,259	13,646	8,259	20,273
LOSS BEFORE OTHER INCOME (LOSS)	(1,275,454)	(8,259)	(13,646)	(8,259)	(20,273)
OTHER INCOME (LOSS)
Interest income	798	0	0	0	0
Loss on disposal of capital assets	(11,923)	0	0	0	0
Loss on cash settlements of accounts payable	(2,259)	0	0	0	0
NET PROFIT (LOSS)	($1,288,838)	($8,259)	($13,646)	($8,259)	($20,273)
(See accompanying notes)

F-3
LEOPARD CAPITAL, INC.
(A Development Stage Company)
STATEMENT OF SHAREHOLDERS' DEFICIT
FROM INCEPTION ON JUNE 18, 1990 THROUGH JUNE 30, 2002
(Unaudited)
					Deficit
					Accumulated
		Common Stock		Additional	During The
	Per			Paid-up	Development
Voting Common Stock	Share	Shares	Par Value	Capital	Stage
Issuance of stock to officers, directors and
other individuals, for an amount equal to
part of the organization costs,
on April 10, 1991	$0.1000	30,000	$300	$2,700
Reorganization of capital reducing the par
value from $.01 / share to $.001 / share			(270)	270
Net loss, year ended December 31, 1994
Balance, December 31, 1992, 1993 & 1994		30,000	30	2,970
Issuance of stock to investment banker,
controlled by a director for services
rendered and valued at the billed amount
for the services	0.5000	12,000	12	5,988
Issuance of common stock to public for cash	0.5000	8,000	8	3,992
Net loss, year ended December 31, 1995
Balance, December 31, 1995		50,000	50	12,950
Issuance of common stock pursuant to stock
options of which 1,220 shares were issued
to an affiliate of the issuer for cash	0.0100	50,000	50	450
Balance prior to stock split		100,000	100	13,400
Stock split effective April, 1996		300,000	300	(300)
Balance after stock split		400,000	400	13,100
Stock issued for acquisition of Dakota
Mining & Exploration, Ltd. ("Dakota")
valued at the net book value of Dakota
at the date of acquisition	0.0069	10,000,000	10,000	59,488
Recognition of deficit accumulated during
the development stage by Dakota up to
the date of acquisition				78,064	($78,064)
Issue of shares to H J S Financial Services,
Inc. for services rendered valued at the
market value of the shares when issued	1.2815	24,000	24	30,732
Issuance of common stock to repay
advances to Canadian Northern Lites, Inc.
made by former directors and valued at the
net book value of those advances which
was less than the market value of the shares	0.1502	4,000,000	4,000	596,822
Net loss, year ended December 31, 1996					(460,106)
Balance at December 31, 1996		14,424,000	$14,424	$778,206	($538,170)
(See accompanying notes)

F-4
LEOPARD CAPITAL, INC.
(A Development Stage Company)
STATEMENT OF SHAREHOLDERS' DEFICIT
FROM INCEPTION ON JUNE 18, 1990 THROUGH JUNE 30, 2002
(Unaudited)
					Deficit
					Accumulated
		Common Stock		Additional	During The
	Per			Paid-up	Development
Voting Common Stock (Continued)	Share	Shares	Par Value	Capital	Stage
Balance at December 31, 1996		14,424,000	$14,424	$778,206	($538,170)
Issuance of common stock for services to
former legal counsel valued at the billed
value for the services rendered	$0.1745	570,000	570	98,911
Fair value of donated accounting services
provided by a former director				2,000
Net loss, year ended December 31, 1997					(521,159)
Balance at December 31, 1997		14,994,000	14,994	879,117	(1,059,329)
Issuance of common stock to former directors
to repay amounts advanced by them to
the Company and the shares are valued at
the value of the amount owing to them	0.1249	667,000	667	82,672
Issuance of common stock to an arm's
length supplier to repay the amount owing
and shares valued at the fair value of
the shares issued	0.0598	50,000	50	2,942
Issuance of common stock to a company
controlled by a current director to repay an
amount owing and valued at the market
value of the shares issued	0.0100	1,500,000	1,500	13,500
Net loss, year ended December 31, 1998					(118,524)
Balance at December 31, 1998		17,211,000	17,211	978,231	(1,177,853)
Net loss, year ended December 31, 1999					(58,216)
Balance at December 31, 1999		17,211,000	17,211	978,231	(1,236,069)
Cancellation of shares in consideration for
the release by the Company of its 20%
joint venture interest	0.0000	(2,080,000)	(2,080)	2,079
Issuance of common stock to a company
controlled by a current director to repay an
amount owing and valued at the market
value of the shares issued	0.0050	4,000,000	4,000	16,000
Balance prior to reverse stock split		19,131,000	19,131	996,310
Reverse stock split effective December 1, 2000		(18,365,760)	(18,366)	18,366
Balance after reverse stock split		765,240	765	1,014,676
Cost amount of shares of subsidiary
that were distributed to the shareholders				(1)
Reversal of prior year management fees
charged by a related party				36,995
Recognition of the loss in net assets
created by the spin-off of the former
subsidiary				(657)
Net loss, year ended December 31, 2000					(23,587)
Balance of voting common stock as at
December 31, 2000		765,240	$765	$1,051,013	($1,259,656)
(See accompanying notes)

F-5
LEOPARD CAPITAL, INC.
(A Development Stage Company)
STATEMENT OF SHAREHOLDERS' DEFICIT
FROM INCEPTION ON JUNE 18, 1990 THROUGH JUNE 30, 2002
(Unaudited)
					Deficit
					Accumulated
		Common Stock		Additional	During The
	Per			Paid-up	Development
Voting Common Stock (Continued)	Share	Shares	Par Value	Capital	Stage
Balance at December 31, 2000		765,240	$765	$1,051,013	($1,259,656)
Conversion of non-voting common stock to
voting common stock		1,600,000	$1,600	101,978
Issuance of common stock to a company
controlled by a current director to repay an
amount owing and valued at the amount
of the debt repaid	$0.0400	3,000,000	3,000	117,000
Issuance of common stock to a company
controlled by a current director to repay an
amount owing and valued at the amount
of the debt repaid	0.0400	114,337	114	4,459
Issuance of common stock to a company
controlled by a current director to repay an
amount owing and valued at the amount
of the debt repaid	0.0400	16,249	16	634
Net loss, year ended December 31, 2001					(20, 923)
Balance, December 31, 2001		5,495,826	$5,495	$1,275,084	($1,280,579)
Net loss, three months ended March 31, 2002					0
Balance, March 31, 2002		5,495,826	$5,495	$1,275,084	($1,280,579)
Net loss, six months ended June 30, 2002					(8,259)
Balance, June 30, 2002		5,495,826	$5,495	$1,275,084	($1,288,838)
Non-voting Common Stock
Issuance of non-voting common stock
to the president and companies controlled
by him to reduce debts owing by the
Company and its subsidiary to those
parties	$0.0025	40,000,000	$40,000	$60,000
Reverse stock split effective December 1, 2000		(38,400,000)	(38,400)	38,400
Balance after reverse stock split		1,600,000	1,600	98,400
Reversal of prior year management fees
charged by a related party				3,643
Recognition of the loss in net assets
created by the spin-off of the former
subsidiary				(65)
Balance of non-voting common stock as at
December 31, 2000		1,600,000	1,600	101,978
Conversion of non-voting common stock to
voting common stock		(1,600,000)	($1,600)	($101,978)
Balance of non-voting common stock as at
December 31, 2001		0	$0	$0
Balance of non-voting common stock as at
March 31, 2002		0	$0	$0
Balance of non-voting common stock as at
June 30, 2002		0	$0	$0
(See accompanying notes)

F-6
LEOPARD CAPITAL, INC.
(A Development Stage Company)
STATEMENT OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2002 AND 2001
AND FROM INCEPTION ON JUNE 18, 1990 THROUGH JUNE 30, 2002
(Unaudited)
		For The Six	For The Six
	Cumulative	Months	Months
	Total Since	Ending	Ending
	Inception	Jun. 30, 2002	Jun. 30, 2001
	(Unaudited)	(Unaudited)	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	($1,288,838)	($8,259)	($20,273)
Items not involving an outlay of cash
Non-cash accounting services of a former director	2,000	0	0
Loss on disposal of capital assets	11,923	0	0
Write off of incorporation costs	794	0	0
Write off of investment in joint venture	60,463	0	0
Write off of development and property costs	442,529	0	0
Loss on cash settlements of accounts payable	2,260	0	0
Change in working capital items
Canadian goods and services tax receivable	(1,500)	0	0
Accounts payable increase before part of the
balance was settled by issuing shares	224,464	8,259	0
Net cash (used in) received from operating activities	(545,905)	0	(20,273)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of common stock	151,502	0	0
Stock issued on exercise of stock options	500	0	0
Loan from shareholder	14,016	0	0
Advances from former subsidiary	4,300	0	0
Advances from shareholders before part of the
balance was settled by issuing shares	866,457	0	20,273
Net cash from financing activities	1,036,775	0	20,273
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of capital assets	(11,949)	0	0
Proceeds from disposal of fixed assets	26	0	0
Incorporation costs	(794)	0	0
Mineral property payments	(478,153)	0	0
Net cash (used in) received from investing activities	(490,870)	0	0
NET DECREASE IN CASH	0	0	0
CASH AT BEGINNING OF YEAR	0	0	0
FOREIGN CURRENCY TRANSLATION GAIN	0	0	0
CASH AT END OF YEAR	$0	$0	$0
(See accompanying notes)

F-7
LEOPARD CAPITAL, INC.
(A Development Stage Company)
CONDENSED NOTES TO JUNE 30, 2002 FINANCIAL STATEMENTS
(Unaudited)
1.	BASIS OF FINANCIAL STATEMENT PRESENTATION
	The financial statements have been prepared by LEOPARD CAPITAL, INC. without audit and
	pursuant to the rules and regulations of the Securities and Exchange Commission.  The information
	furnished in the financial statements include normal recurring adjustments and reflects all
	adjustments, which are, in the opinion of management, necessary for a fair presentation of such
	financial statements.  Certain information and footnote disclosures normally included in financial
	statements prepared in accordance with generally accepted accounting principles have been
	condensed or omitted pursuant to such rules and regulations.  The Company believes that the
	information presented is not misleading.  These condensed financial statements should be read in
	conjunction with the financial statements and the accompanying notes included in the Company's
	Form 10-KSB for the fiscal year ended December 31, 2001.  The results of operations for the period
	ended June 30, 2002 are not necessarily indicative of operating results for the fiscal year.
2.	SHARE CAPITAL
	(a)	Authorized Share Capital
		The Company's authorized capital is 200,000,000 shares of common stock with $0.001 par value.
		As of June 30, 2002, there were 5,495,826 common voting shares issued and outstanding.
		There are no warrants or options outstanding.
	(b)	Issued and Outstanding
				# of Shares		Paid Up Capital
				Jun. 30, 2002	Jun. 30, 2001	Jun. 30, 2002	Jun. 30, 2001
		Voting common shares
			Par value			$5,495	$5,479
			Additional paid-up capital			1,275,084	1,274,450
			Total	5,495,826	5,479,577	1,280,579	1,279,929
		Non-voting common shares
			Par value			0	0
			Additional paid-up capital			0	0
			Total	0	0	0	0
		Total		5,495,826	5,479,577	$1,280,579	$1,279,929
	(c)	Net Loss Per Share
						Jun. 30, 2002	Jun. 30, 2001
		Net loss				($8,259)	($20,273)
		Weighted number of common shares issued				5,487,636	2,474,829
			Net loss per share			$0.00	($0.01)

Item 2. Management's Discussion and Analysis or Plan of Operation

The Company has minimal cash and has not yet developed any producing mines. The Company has no history of earnings, and due to the nature of its business, there can be no assurance that the Company will be profitable. Since the Company has been a development stage company since inception and has not generated revenues, the Company operates with minimal overhead.  The Company will need to raise additional funds, either in the form of an advance or an equity investment by the Company's President; or in the form of equity investment by outside investors, or some combination of each.

The letter of intent to acquire International Global Positioning ("IGP") expired on April 15, 2002 and is no longer in effect, as IGP was unable to satisfy the due diligence requirements set forth in the letter.

Management is focused on the immediate task of improving the Company's ability to attract equity capital.

Liquidity and Capital Resources

The Company's cash position was $0 at June 30, 2002, compared to $0 at December 31, 2001.

The Company had a negative working capital position of ($8,259) at June 30, 2002, compared to $0 at December 31, 2001.

Results of Operation

The Company had no revenue for the quarter and six-month period ended June 30, 2002 compared to no revenue for the quarter and six-month period ended June 30, 2001.

The Company recorded a net loss of ($8,259) for the quarter ended June 30, 2002 and a net loss of ($8,259) for the six-month period ended June 30, 2002, compared to a net loss of ($13,646) for the quarter ended June 30, 2001 and a net loss of ($20,273) for the six-month period ended June 30, 2001.

The Company incurred administrative expenses of $8,259 for the quarter ended June 30, 2002 and administrative expenses of $8,259 for the six-month period ended June 30, 2002, compared to $13,646 for the quarter ended June 30, 2001 and $20,273 for the six-month period ended June 30, 2001.

Forward-Looking Statements

From time-to-time, the Company or its representatives may have made or may make forward-looking statements, orally or in writing. Such forward-looking statements may be included in, but not limited to, press releases, oral statements made with the approval of an authorized executive officer or in various filings made by the Company with the Securities and Exchange Commission or other regulatory agencies. Words or phrases "will likely result", "are expected to", "will continue", " is anticipated", "estimate", "project or projected", or similar expressions are intended to identify "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Reform Act").

The Company wishes to ensure that such statements are accompanied by meaningful cautionary statements, so as to maximize to the fullest extent possible the protections of the safe harbor established in the Reform Act. Accordingly, such statements are qualified in their entirety by reference to and are accompanied by the following discussion of certain important factors that could cause actual results to differ materially from such forward-looking statements.

The risks identified here are not inclusive. Furthermore, reference is also made to other sections of this Statement that include additional factors that could adversely impact the Company's business and financial performance. Also, the Company operates in a very competitive and rapidly changing environment. New risk factors emerge from time to time and it is not possible for management to predict all such risk factors, nor can it assess the impact of all such risk factors on the Company's business or the extent to which any factor or combination of factors may cause actual results to differ significantly from those contained in any forward-looking statements. Accordingly, forward-looking statements should not be relied upon as a prediction of actual results.

Description of Property

None.

Description of Securities

The Company's authorized capital is 200,000,000 shares of common stock with $0.001 par value. As of June 30, 2002, there were 5,495,826 common voting shares issued and outstanding.

Debt Securities to be Registered

Not applicable.

American Depository Receipts

Not applicable

Other Securities to be Registered

Not applicable.

PART II

Item 1.  Legal Proceedings

The Company knows of no material, active or pending legal proceedings against them; nor is the Company involved as a plaintiff in any material proceeding or pending litigation.

Item 5.  Other Information

None

Item 6.  Exhibits and Reports on Form 8-K

(A) Exhibits 27 Financial Data Schedule - Not included.

(B) The Company did not file any reports on Form 8-K during the three month period ended June 30, 2002.

Signatures

In accordance with Section 13 or 15(d) of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Leopard Capital, Inc.
(Registrant)

By /s/ T.G. Cook
T.G. Cook, President

Date July 26, 2002